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October 14, 1953 (190) MINUTES of the thirty-second meeting of Directors of the Manufacturing Chemists' Association, Inc., held at The Union Club, Park Avenue and 69th Street, New York, New York, on October 13, 1953, at 11:00 A. M. (EST). There were present: Messrs. E. T. Asplundh George B. Beitzel Howard S. Bunn Stanley Crossland F. J. Emmerich William C. Foster R. L. Hockley J. R, Hoover J. J. Kerrigan M. F. Crass, Jr. John E. McKeenCharles S. Munson Thomas S. Nichols Ernest W. Reid Dan M. Rugg R. B. Semple Kenneth C. Towe Rothe Weigel J. Albert Woods Alternates: W. H. Ward (for Walter Dannenbaum) Present by Invitation: Ernest Hart, Food Machinery & Chemical Corp. Fred G. Singer, E. I. du Pont de Nemours 8t Co, Richard McCurdy, Shell Chemical Corporation Marx Leva, Fowler, Leva, Hawes St Symington I. MINUTES OF MEETING The minutes of the September 8, 1953 meeting were duly approved as sent to the members. H. TREASURER'S REPORT (a) Cash Report. The cash report of the Association for the period September 1, 1953 to September 30, 1953, was reviewed, and On Motion duly made and seconded, it was VOTED: That the report be accepted and placed on file. The Treasurer reported that a substantial portion of the Association's surplus had been invested in short term government securities in such manner that certain notes would come due on the 15th of each month, thereby replenishing the Treasury at stated intervals. A budget report was presented showing that, for the first four months of the fiscal year, the Association was operating well within budgetary limits; In view of increased staff and miscellaneous expenses which have accrued as of CMA 067109 (191) September 1, 1953 and which will be continuous, an amended budget will be necessary and this will be prepared and submitted to the Board within the near future. (b) Membership Fees. It was reported that all Association members with the exception of one had remitted their membership fees. Payment from this one member has been delayed because of curtailed operations, but it is expected that the member will be retained under active status. HI. SECRETARY'S REPORT (a) 1954 Chemical Industry Pollution Abatement Conference. Arrange ments have been finalized for this Conference to be held April 21, 22 and 23, 1954 at the Shamrock Hotel, Houston, Texas. It will be jointly sponsored by MCA, the Texas Chemical Council, and the Southern Association of Science and Industry. The Program Committee met in Washington on October 9 and has agreed on the three-day program. (b) U, S. Department of Commerce. A brief report was made on MCA staff contacts with the new Business and Defense Services Administration, during which recommendations were made on a positive program for the Chemical and Rubber Division. Members were presented with a tentative outline of this program supplied by Mr. N. E. Hathaway, Division Director. (c) Proposed Industry Advisory Council. A summary of the Commerce Department's proposed Industry Advisory Council organization was presented as a matter of information. The Council organization has not yet received full government clearance and proposals have not yet been made to the affected industries, of which the chemical industry will be one. (d) Tank Car Mileage Allowance. The Traffic Committee has appointed a study group to prepare evidence justifying the chemical industry's contention that an increased allowance should be granted to private shippers who operate high pressure and other specialized types of equipment. Other shipper groups are cooperating with MCA in this study in order that a broadly based presentation may be made to the railroads at the proper time. IV. PRESIDENT'S REPORT. (a) Public Relations. Mr. Foster discussed the meeting of the Public Relations Advisory Committee held on October 6, 1953. He stated that the Committee had accorded general acceptance to his recommendation that the Association sever the Hill and Knowlton affiliation as of November 1, 1953, and that a letter to this effect had been dispatched to Hill and Knowlton and an acknowledgment received. A resolution of appreciation to Hill and Knowlton which had been adopted by the Committee and submitted to H & K was read to the full Board. CMA 067110 (192) Mr. Foster then stated that consideration had been given to the main tenance of some type of New York City facility in order to handle press and other inquiries at that end, and that under consideration were several possibilities, in cluding a direct tie line, an answering service, a line tapped into a member's office, and maintenance of a skeleton office staff. It was the consensus that a tie line would probably be the most practical answer since this could also be used for routine Association calls to New York City. Although several prospects have been interviewed, a public relations staff director has not been retained. The Association is now handling P. R. staff work with the aid of a research assistant and the part-time services of a Washington public relations expert formerly associated with Mr. Foster. Prompt steps will be taken to transfer from New York to Washington those facilities which are the property of the Association, including the Information Service files. A request on the part of Mr. John Hill that the Association recompense Messrs. Hill and Goss for staff services hitherto not billed was considered and the consensus was that it should be met although no legal obligation was seen to exist. With reference to staff projects, Mr. Foster displayed facsimile of a sample issue of the Chemical News Magazine which will bear a January-February, 1954 date-line. Copies will be ready for distribution at the Mid-Year Meeting. It is planned to issue this publication on a bi-monthly basis beginning with the first of the year. The re-written Chemicals in Foods publication entitled "Your Food and Chemical Research" has been approved for issuance by the Chemicals in Foods and Public Relations Advisory Committees, following final consultation with the American Medical Association. (b) Subcommittee Activities. The Public Relations Advisory Committee has appointed task subcommittees to aid in Personnel Selection, Tariff, Chemicals in Foods, and the Mid-Year Meeting. The Tariff Subcommittee met with the Inter national Trade and Tariff Committee on October 9, to assist in re-drafting the statement on tariff policy. (c) Miscellaneous. Invitations have been accepted by the President to address several groups within the near future including: (1) Chemical Market Re search Association, and (2) the Chemical Engineering Medal Award Dinner. A third speech will be made at the Midyear Meeting, A number of Technical Committee meetings have been attended and major visits have been made to the headquarters of several member firms. A trip will be made to California during the week of October 26, at which time a luncheon of west coast chemical repre sentatives has been arranged. The President will attend the meeting of the Business Advisory Council as an active member of this group. A brief report was made on the status of the Institute for Effective Competition. CMA 067111 (193) (d) Office Space. Decision has not yet been made re.new quarters. Discussions are continuing with several realtors in Washington. (e) Publications. Mr. Edward Crane, President of D. Van Nostrand & Company called to discuss distribution of Williams Haynes' "History of the Chemical Industry". It was agreed that the Association could not actively undertake purchase and distribution of this six-volume work, but that assistance, if any, would have to come from individual chemical manufacturers. The publisher also expressed interest in possible cooperative volumes on air pollution and water pollution abatement following completion of the current project with MCA entitled "A Guide to Safety in the Chemical Laboratory, " V, MEMBERSHIP DIRECTORY Members were presented with a copy of the newly printed list of Officers, Directors, Committees and Members, Copies of this list have been distributed to all member executives and technical committee personnel. VI. BOARD OF DIRECTORS (a) Report on Alternates. The Chairman advised that the following Board members had requested appointment of alternates: Member Alternate, Position, Company H. S. Bunn Harry B. McClure, Exec. Vice Pres. Carbide and Carbon Chemicals Co. Carl A. Gerstacker Leiand I. Doan, President, Dow Chemical Company On Motion duly made and seconded, it was VOTED: That the appointments be approved. (b) Membership Committee Report. Mr. Hockley reported that a meeting of the Membership Committee was held in Washington on October 1 and that an agenda of the subjects discussed, together with supplemental material, was in each Director's folder. The minutes of the foregoing meeting were then read following which individual items were discussed as follows: (1) Membership Policy. Following request of the Committee that a statement of policy b? ennunciated for committee guidance, it was the sense of those present that theCommittee should undertake an active recruitment program with the assistance of individual Board members and the Association's staff. CMA067112 (194) (2) Active Membership Prospects. Following consideration of a list of approximately forty non-member chemical manufacturing firms with whom the Association has had active correspondence during the past six months, it was agreed that each Director would note on his copy of the list those companies with whom he has active contacts and whom he would be willing to approach for, possible membership. These marked lists will then be turned over to the Member ship Committee for screening and specific assignments will be confirmed in writing. (3) Recently Resigned Members. A list of eight firms who have resigned from Association membership during the past five years was considered. It was agreed that the same practice should be followed in this case as in the case of Item (2) above. (4) Canadian memberships. A list of sixteen Canadian corporations engaged in the manufacturing of chemicals was considered. The Secretary reported that one of these firms. Consolidated Mining and Smelting Company of Canada, Ltd. , had already applied for membership and that certain other Canadian executives had the matter under active consideration. It was agreed by those present that (1) eligible Canadian firms should be admitted with the same status as American chemical manufacturers, (2) Board representation be provided, and (3) for at least the first year, membership to Canadian firms be extended on the basis of the minimum fee classification, i. e. $600, pending completion of organizational effort and determination of financial policy. Mr. Hockley reported that, following discussion with a Canadian executive, steps would be taken by the latter to attempt formation of some type of association within Canada with active MCA affiliation. The possi bilities include (1) individual MCA memberships, or (2) MCA affiliation through a group status. (5) Allied Trade Associations. The possibility of ultimate consoli dation of MCA with allied trade associations was briefly discussed. Further in formation is being obtained and advice of counsel will be sought. (6) Associate Memberships. Consensus of those present indicated that it would be unwise at this time to receive into membership non-chemical individ uals and groups such as equipment manufacturers, investment houses, educators and consultants. (7) Small Manufacturers. It was pointed out that, although practically all of the large and medium-sized domestic chemical producers are now members of MCA, and many small companies are members also, there are still a substantial number of eligible small manufacturers who have not joined the Associ ation. It was agreed that it would be desirable for the Association to have a strong representation of small producers, but that all applications, regardless of the size of the applicant, should continue to be reviewed from the standpoint of general policy and eligibility. In order to facilitate small memberships, it was the consensus that a new minimum fee classification of $300 be established. The Membership Committee plans to hold its next meeting in advance of the November 10 Board meeting. CMA067113 (195) (c) Appointment of Board Committees, Personnel of Board Committees were nominated by Chairman Munson as follows: Nominating Committee Kenneth C. Towe, Chairman R. L, Murray Robert B. Semple Pension Committee Charles S. Munson, Chairman Kenneth C. Towe F. J. Emmerich SOCMA Liaison Committee H. R. Huston, Chairman Felix N, Williams R, L, Murray W. C. Foster On motion duly made and seconded, it was VOTED: That the nominations be confirmed. VH. COMMITTEES. (a) Plastics Committee. The appointment of Mr. George C. Miller, Bakelite Company, replacing Mr. H. S. Bunn of Union Carbide and Carbon Corporation, as a member of the Committee, was approved. Statement of Principles for the Plastics Industry. The Secretary read a proposed statement of principles prepared by a special task committee and adopted unanimously by the Plastics Committee with the assent of the majority of member Plastics representatives. Following approval by the Board, it is the intention of the Plastics Committee to present the statement to the Society of the Plastics Industry as well as to the organizations now representing fabricators and processors of plastics materials. The statement as read to the Board of Directors, was as follows: "STATEMENT OF PRINCIPLES BY THE PLASTICS INDUSTRY "Plastic materials challenge industry with new concepts of design, engineering, construction, processibility, and usefulness. "The properties of plastic materials, when correctly used, open up great new areas of service to industry and the public. "Improper use can do irreparable damage to the plastics industry, to both manufacturers and processors of the material. "Therefore, we as manufacturers and processors of plastic materi als reaffirm the principles upon which the healthy growth of a great industry depends and pledge ourselves to: CMA067114 "I. Understand thoroughly the properties and limitations of all plastic materials handled by us; {196) "II. Apply the correct plastic materials to all industrial end uses, designing'and engineering them for maximum value, perform ance and safety; "III. Use great care to select the correct plastic materials for all consumer items, designing and engineering them to insure value, satisfaction, safety and pleasure to all users; "IV. Sell plastic materials, and all industrial and consumer items made therefrom, on the merits of the materials, applications, and design, and free of extravagant, insupportable claims, "All to the end that plastic materials already available, and others that may come, will bring to industry and public alike all the benefits, economies, and satisfactions inherent in these versatile engineering and construction materials. " Following discussion by counsel and Board members on the use of the word "pledge" in the fourth paragraph of the statement, it was agreed that the statement be approved subject to deletion of the word "pledge", with substitute terminology making it clear that the statement of principles represents an individual company undertaking, to be worked out by counsel and the Plastics Committee. (This was subsequently done, at a meeting between counsel and the Plastics Committee later the same day. ) The fourth paragraph of the statement was; changed to read as follows: "Therefore, we as manufacturers and processors of plastic materials reaffirm our adherence to the principles upon which the healthy growth of a great industry depends and undertake to:" (b) Public Relations Advisory Committee. The appointment of Mr. Colin C. Campbell, Rohm & Haas Company, replacing Mr. John R. Schact, as a member of the Committee, was approved. The appointment of Mr. C. Stewart Hoagland, Interchemicals Corporation, replacing Mr. Henry L. Young, as a member of the Committee, was approved. (c) Research Advisory Committee. The appointment of Dr. Paul L. Salzberg, E. I. du Pont de Nemours & Co. , succeeding Dr. Cole Coolidge, as a member of the Committee, was approved. (d) Tank Car Committee. The appointment of Mr. Byran H. LaMotte, E. I. du Pont de Nemours Co. , replacing Mr. H. J. Gronemeyer, as a member of the Committee, was approved. CMA067115 (197) r (e) Statistical Committee. The appointment of Messrs. R. C. McCurdy, Shell Chemical Corporation; Melvin E. Clark, Frontier Chemical Company; Edward Dunn, Allied Chemical and Dye Corporation; Alan S. Evans, Jr., Pittsburg Coke and Chemical Company; Russell Hopkinson, Mathieson Chemical Corporation; K. H. Klipstein, Coles Chemical Division, American Cyanamid Co. ; William B. Plummer, Indoil Chemical Company; and F. J. Zugehoer, E. 1. du Pont de Nemours & Co. , were approved as members of the Committee. Mr. R. C. McCurdy was designated Chairman. (f) Water Pollution Abatement Committee. The appointment of Mr. Carl E. Geuther, E. I, du Pont de Nemours h Co. , as a member of the Committee, was approved. VIII. MISCELLANEOUS. (a) 1953 Mid-Year Meeting - November 24, 1953. The Chairman, Mr. Semple, reported that all arrangements had been concluded for the November 24 meeting and briefly outlined both the general and panel programs. The first announcement of the meeting was made and registration blanks were sent to members on October 5. (b) The Tariff - Proposed Association Policy Statement. In view of basic comments made on the first policy statement draft considerecTat the September 1 8 Board meeting, the Task Group of the International Trade and Tariff Committee met , subsequently to redraft the statement which was then carefully reviewed by the full I Committee at a meeting held in Washington on October 9. Present at this meeting, in i addition to the full Committee, were Messrs. Foster, Leva, and a subcommittee of l the Public Relations Advisory Committee. On the evening of October 9, the Washington office reproduced the re-drafted statement of U. S. Import Tariff Policy, supplemented by a 13-page committee draft report and sent copies to Board members at their homes. A majority of those present had, therefore, read the statement prior to the Board meeting. The Chairman called on Mr, Fred Singer, Chairman of the International Trade and Tariff Committee, who briefly discussed preparation of the statement and report. He stated that announcement had been made that the Randall Commission would hold no hearings, but that written statements would be accepted from responsible groups. Staffing of the Commission has not yet been completed, competent staff members are needed, and an appeal to MCA members through the General Bulletin for loan of such experts might be desirable. (This was approved by the Board). Mr. Singer stated further that the papers under consideration which were prepared for consideration by the Board were not necessarily suited for submittal to the Commission and that his Committee would meet again to prepare a more detailed document for this purpose. Each member present was then given an opportunity to present his views n the statement and supplementary report. Consensus was that the current draft represented a substantial improvement over the original draft, being less vague and CMA 067116 (198) more substantive in detail. While a majority of those present expressed their con currence and satisfaction with the draft as a working document to date, individual comments stressed the following points: (1) that the tariff is only one segment of the booad subject of foreign trade and should be so treated statements (2) that great care should be exercised in the wording of positive (3) that the public relations factor is of great importance and the draft should be further reviewed with that consideration in mind, (4) that more detail be inserted relative to other factors, such as anti-dumping legislation and the importance of workable administrative procedure under such legislation. Si, `h 1.1 S-' f., It was agreed that final decision^be deferred until the November^meeting and that in the meantime a Board Committee consisting of Messrs. Williams, Gerstacker, Bunn, McKeen, Ward and Leva (W. C. Foster ex-officio) be designated to meet with Mr. Singer's Task Group, prepare a final redraft in view f the foregoing, and have this in Board members' hands for study as promptly as possible. Mr. Ward was designated as Chairman of this group. ' (c) National Labor Relations Group. On October 7, Mr. Marx Leva represented the Association in oral argument before the National Labor Relations Board in connection with the American Potash and Chemical Corporation case involving craft union severance in the basic chemical industry. A printed brief consisting of 57 pages supplemented by exhibits and affidavits from member firms was filed with the Board at the time of the hearing. The Association's appearance as amicus curiae re sulted from invitation previously extended by the Board. Mr. Leva briefly reviewed his statement and explained that copies of the printed brief and transcript of oral argument had been transmitted to member executives, including those industrial relations experts from member firms who had assisted counsel in preparation for the hearing. Reports from member representatives who attended the hearing were unanimous in indicating that presentation was admirably done, of high quality, and very well received. (d) Rotation of Board Meetings. It was agreed that the April 13, 1954 meeting of the Board of Directors be held at Pittsburgh, Pa. and that the executive contacts of members located in the general Pittsburgh area be invited to attend both the meeting and the luncheon. Those present discussed a suggestion whereby a selected group of member executive contacts, particularly from the greater New York area, be invited to attend periodic Board meetings held in New York City. No decision was reached and the subject will be discussed further at the November 10 meeting. It was agreed that a schedule should be set up whereby the chairmen of the technical and functional committees would be invited to attend stated Board luncheons to briefly describe their committee programs. CMA067117 (199) (s) Retirement Flan, Counsel reported that U. S Treasury Department approval had been obtained on the Association's amended retirement plan approved by the Board of Direc tors at the April 1953 meeting, (f) U, S. Savings Bond Program. Mr. Ward briefly reviewed the U. S. Treasury Department's proposal for chemical industry sponsorship of U. S. Savings Bonds to chemical employees under the "Invest in America" program. It was agreed that, while the Association, as such, could not sponsor such a program, the members of the Board felt that it was highly desirable and recommended that it be handled by individual firms with their own employees. There being no further business to come before the meeting, it was unanimously resolved to adjourn. Approved: Charles S. Munson Chairman M. F. Crass, Jr. Secretary CM^7'18