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(520) MINUTES of the seventy-eighth meeting of the Directors of the Manufacturing Chemists' Association, Inc., held at Del Monte Lodge, Pebble Beach, California, on March 26, 1958, at 10:30 a.m. (PST). There were present: Messrs. Peter Colefax Lee V. Dauler C. B. Edwards D. S. Frederick Ernest Hart John A. Hill John E. Hull Harry B. McClure John E. McKeen George L. Parkhurst S. B. Penick, Jr. Mark E. Putnam Kenneth C. Towe Robert I. Wishnick M. F. Crass, Jr. Alternates: Bert Cremers (for Robert B. Semple) I John F. Daley (for David H. Dawson) Earle S. Ebers (for George R. Vila) T. G.. Hughes (for George L. Parkhurst) William H. McConnell (for Raymond F. Evans) William H. McLean (for John T. Connor) Max A, Minnig (for Robert I. Wishnick) Charles S. Munson (for John A. Hill) Carl F. Prutton (for Ernest Hart) P. C. Reilly (for C. B. Edwards) W. T. D. Ross (for H. Greville Smith) General Counsel: Henry H. Fowler - Fowler, Leva, Hawes & Symington Present by Invitation: Attached to these Minutes as Exhibit "A" is a list of registrants for the over-all three-day program. Many of these attended the Directors Meeting, with total attendance approximating 70. 4 In calling the meeting to order at 10:30 a. m., Chairman Hart welcomed the Directors, alternates, and guests to this second West Coast Regional Meeting. H referred to the importance of the chemical industry on the Pacific Coast and urged that similar meetings be held at least every two years. He invited those present to ask questions and to enter actively into the discussion. Attendees then introduced themselves and mentioned their company affiliations. Mr. Hart then stated that he would receive a resolution of appreciation to the Stauffer Chemical Company for the reception and dinner accorded those present in San Francisco on the evening of March 24. The motion was made, seconded, and unanimously voted. CMA 067521 (521) A second motion was made, seconded, and unanimously voted, expressing the appreciation of those present to the West Coast Committee for arranging all meeting details, including facilities, transportation and entertainment. The Com mittee consisted of Messrs. Mart, Hughes, and Parkhurst, assisted by Messrs. Dawson and Campbell. I. THE MCA PROGRAM -- A REVIEW. General Hull presented a ten-minute report covering current MCA opera tions and program. A copy of the report is attached to these Minutes as Exhibit "B. " II. MINUTES OF FEBRUARY 11, 1958, MEETING. The Minutes of the February 11, 1958, meeting were duly approved as sub mitted to the members. III. REPORT OF THE EXECUTIVE COMMITTEE. Chairman McClure stated that a breakfast meeting of the Executive Com mittee had taken place that day and that a number of the items discussed would be taken up in their respective places on the Board agenda. IV. REPORT OF THE TREASURER. (a) Financial Report, June 1957 - February 1958. The financial report for the nine months ending February 28, 1958, was reviewed in detail. ON MOTION duly made and seconded, it was VOTED: That the report be accepted and placed on file. (b) Financing for Fiscal 1958-59. The Treasurer statedthai, in accordance with Association policy, letters had been sent on March 19, 1958, to all Executive Contacts, requesting chemical sales data for calendar 1957, such data to be utilized in setting membership fees for the fiscal year beginning June 1, 1958. He urged prompt submittal of the requested data. (c) Budget for Fiscal 1958-59. It was reported that staff budget recom mendations had been prepared and would be presented to the Finance Committee at its forthcoming meeting on April 7. V. BOARD OF DIRECTORS. (a.) Appointment of Alternates. The Chairman advised that the following Board members have requested the appointment of alternates: Board Member Glen B. Miller Thomas S. Nichols Alternate and Company Harry S. Ferguson, Allied Chemical & Dye Corporation Edward Block, Olin Mathieson Chemical Corporation cMA 067522 (522) ON MOTION duly made and seconded, it was VOTED: That the appointments be approved. (b) Report of the Finance Committee. Chairman Dauler of the Finance Committee presented for Board consideration two amendments to the definition of chemical sales, to be utilized by members in establishing totals for submittal to the Association for computation of the membership fee structure for the next fiscal year. The amendments follow; 4. Primary Metals. Examples: Aluminum, cadmium, copper, iron and steel, lead, magnesium, nickel, and zinc. Other metals, including calcium, chromium, columbium, lithium, manganese, sodium, tantalum, titanium, vanadium, zirconium, ferroalloys, etc. , are considered to be chemicals and are not in the excluded group. (Reworded paragraph. ) 9. Products of Mixing, Mechanical Forming, or Coating Operations. ********** e. Formulated detergents (manufactured or synthetic components are considered to be chemicals and are not in the excluded group). (New subparagraph. ) ON MOTION duly made and seconded, it was VOTED: That the amendments be approved. (c) Report of the Policy Study Committee. For the benefit of those present, Chairman Frederick reviewed the assignment of his Committee in studying policy with reference to current and future organization and program. He stated that the next meeting of his Committee would be held in New York City on the afternoon of April 7. A report will be made to the Board of Directors the next day. (d) Study Committee -- Proposal of ASA Chemical Industry Advisory Board. For the benefit of those present, Chairman C. F. Prutton reviewed the assignment of his Committee, relating to the proposal of the Chemical Industry Advisory Board of the American Standards Association that it assume the status of a Chemical Standards Board within ASA, and that its scope be enlarged to permit it to consider official requests from the U. S. Government for product standards. The study is under way, and progress reports will be made from time to time. (e) Membership Committee. It was reported that applications had been received from Ansul Chemical Company and The Vickers Petroleum Co., Inc., and that, in the opinion of the Membership Committee, both are qualified for membership |mder the Association's By-Laws. CMA 067523 ON MOTION duly made and seconded, it was (523) VOTED: That the applications be approved subject to the 30-day notification to members provided under Article HI, Section 4, of the By-Laws. The application of Dixie Chemical Company, Houston, Texas, was deferred at the recommendation of the Membership Committee, pending further study concerning the applicant's eligibility under the By-Laws. On the recommendation of the Member ship Committee that the definition of "chemical manufacturer" be clarified and made more definitive, it was agreed that this matter should be referred to the Policy Study Committee for consideration and recommendation. Chairman Wishnick reported that an inquiry concerning the eligibility of Chemical Process Company, Redwood City, California, had been considered and that, in the opinion of the Committee, the firm is qualified for membership under the eligibility requirements of the By-Laws. Further report will be made if and when an application is received. (f) Report of the Program Committee. Chairman Penick reviewed arrange ments and program for the 86th Annual Meeting of the Association, to be held at The Greenbrier, White Sulphur Springs, West Virginia, on June 12 - 14, 1958. He stated that this year the reception and cocktail party previously given by member firms would be an Association-sponsored affair and that an increase in the registration fee would be levied to underwrite the additional costs involved. Those present were reminded of the Secretary's letter dated March 21, consisting of formal notice of meeting, program details, and accompanying room reservation and transportation forms. The Secretary reported that the Association would have full use of the hotel and its many facilities during the entire period of the meeting and urged member firms to return reservation forms promptly. (g) October 1958 Regional Directors Meeting. The Association has received an invitation from Atlas Powder Company; E. I. du Pont de Nemours & Co., Inc. ; and Hercules Powder Company, Inc., to hold its October 1958 Regional Direc tors Meeting in Wilmington, Delaware. ON MOTION duly made and seconded, it was VOTED: That the invitation be accepted. VI. COMMITTEE APPOINTMENTS. The following Committee appointments were approved: (a) Patent Committee. Robert W. Ball, E. I. du Pont de Nemours & Co., Inc., as Chairman, replacing Donald C. Harrison, Union Carbide Corporation. CMA 067524 (524) (b) Public Relations Advisory Committee. Dr. Sydney Steele, Atlas Powder Company, replacing George Loft. (e) Traffic Committee. Confirmation of Carl P, Greeley, National Distillers and Chemical Corporation, as Chairman, replacing C. H. Wager, Shell Chemical Corporation. VH. STAFF REPORT AND MISCELLANEOUS ITEMS. (a) Public Relations and Education. Those present were handed copies of a public relations activity report for the period February - March 1958. This was amplified by General Hull in brief remarks, including reference to Chemical Progress Week, which will be held during the period April 14 - 18. General Hull also spoke briefly on the Association's Education Program and stated that a budget for the fiscal year beginning June 1, 1958, was in the course of preparation and would be reported upon later. The Chairman then called upon Mr, Roger W. Gunder to describe activities of the newly organized Chemical Industry Activity Committees in the West Coast Area. Mr. Gunder reported that organization had been completed following the holding of several meetings and that a public relations and educational program was now being evolved which should be of definite assistance to the chemical industry in that area. (b) Federal Legislation. (1) International Trade and Tariff. General Hull reported that Mr. R. F. Hansen, Chairman of the MCA International Trade and Tariff Committee, had appeared before the House Ways and Means Committee on March 11 to present MCA recommendations con cerning extension of the Trade Agreements Act. Mr. C. E. Hobbs, MCA Staff Counsel, appeared before the Senate Finance Committee on March 26 to recommend enactment of the House-passed Anti dumping Bill. The Association may be called upon to present its views at this Session of Congress with reference to the Organiza tion for Trade Cooperation (OTC). (2) Chemicals in Foods. With reference to food additives legislation, the Commissioner of the Food and Drug Administration is tenta tively scheduled to appear on April 15 or 16 before a subcommittee of the House Interstate and Foreign Commerce Committee. The Association's stand was presented at hearings held last fall. Following the FDA presentation, the legislative picture will be clarified somewhat and the way may be opened for further con ferences between industry and Government on over-all policy. CMA 067525 (525) (3) S. 11, to Amend the Robinaon-Patman Act. With reference to Senate Bill 11, involving "good-faith" defense under the RobinsonPatman Act, it appears unlikely that this legislation will be enacted this year. (c) MCA Metals Activity. The Secretary reported that Dr. Raymond C. * Johnson, a chemist and metallurgist with extensive industry experience, had been engaged as a staff member, effective April 1. Dr. Johnson will handle all staff activity in connection with the metals program, in addition to other staff work to be assigned. The next meeting of Member Metals Producers will be held on the vening of June 12 in conjunction with the 86th Annual Meeting of the Association. Meanwhile, the tentative program, previously approved by the Board, will be implemented and j formalized. (d) Plant Safety. I i (1) Certificates of Achievement. Following a canvass of member firms, it was announced that 397 Certificates of Achievement i would be award to 47 member companies. Each Certificate represents a plant which operated throughout calendar 1957 without \ a lost-time injury. During 1956, 355 Certificates were awarded to 45 member firms. I- (2) Frequency and Severity Rates. The Secretary briefly reviewed the Industrial Injury Experience Report for the year 1957. He noted that, while the frequency rate of 3. 01 injuries per million man-hours of exposure compared favorably with that for the pre vious year, the severity rate of 551 days lost per million man-hours of exposure compared most unfavorably with the 490 figure of last year. It was pointed out, however, that over a five-year period the most substantial improvement in both frequency and severity rates had been registered by the small and medium-sized firms -- firms which in the past have had much higher injury rates than the larger companies. i (e) Motor Carrier Transportation. It was reported that within a short time the Association will appear before the Senate interstate and Foreign Commerce Committee to oppose S. 1490. This bill is similar to H. R. 5664, opposed by MCA last year, and would require the registration of all private carriers with the ICC and make them subject to all of the requirements now in force on common and contract carriers in interstate commerce. Our opposition is based upon an opinion that the new requirements would not add to safety and would result in needless expense and paperwork. (f) Fire Insurance Committee. On recommendation of the General Safety Committee and staff, it was ON MOTION duly made and seconded CMA 067526 (526) VOTED: That the ad hoc Fire Insurance Committee, already appointed by the Board of Directors at its March 12, 1957, meeting, be given permanent status as a technical committee of MCA with the following tentative program: (1) Collect and disseminate knowledge of chemical industry insurance practices; (2) Provide an advisory or consulting service covering all fields of insurance as applicable to MCA members; (3) Provide factual information for use of individual companies in their insurance negotiations; and (4) Be of particular assistance to small companies which do not employ a trained insurance manager. (g) Reconstitution of Patent Committee. The Secretary reported that the Patent Committee, which has been interested primarily in legislative matters over its approximately 20-year tenure, had recently met and voted to expand its activities to include information services to the Association membership. A new Chairman has been appointed (See Item VI(b) of these Minutes), and in due course the Committee will be expanded somewhat and a membership rotational system provided. / (h) MCA Labeling Conference. Those present were reminded of the 1958 Precautionary Labeling Conference, which will be held in Houston, Texas on April 30 under the joint sponsorship of MCA and the Texas Chemical Council. Ten technical papers are scheduled for delivery, in addition to a question-and-answer session, and Texas officials will be present to discuss the new State labeling law which has been patterned after MCA principles. Approximately 250 registrants are expected. (i) International Labor Organization. Mr. Crass presented a brief report on the 5th ILO Chemical Industries Committee meeting, held in Geneva, Switzerland, on February 10 - 21, 1958. Attending this tripartite meeting were representatives of 21 nations. U. S. employer delegates were Messrs. Crass and E. W. Dwyer, with Dr. J. H. Foulger and Mr. H. W. Stull as advisers. A detailed report of the meeting, dealing with agenda, resolutions, and recommendations and conclusions of the U. S. employer delegation, has been sent to members of the Board of Directors and other interested parties. Copies of this report will be transmitted to other MCA member representatives upon request. Following brief concluding remarks, Chairman Hart called upon Messrs. Albert Campbell and William Dawson of the local arrangements committee to make announcements. There being no further business to come before the meeting, it was unanimously resolved to adjourn. Minutes =Approved by Counsel, but Subject to Approval by the Chairman 2 Attachments M. F. Crass, Jr. Secretary CMA 067527 Exhibit "A" Registrants for MCA Board of Directors Meeting and Related Events Del Monte Lodge, Pebble Beach, California -- March 25-27, 1958 Alexander, R. E. U. S. Industrial Chemicals Co. Dibble, W. J. United States Borax & Chemical Corp. Anderson, E. E. Metal St Thermit C orporation Doan, Leiand A. The Dow Chemical Company Andrews, O. W. Columbia-Southern Chemical Corporation Ebers, Earle S. United States Rubber Company Antonio, A. L. The General Tire & Rubber Company Edwards, C. B. Reilly Tar & Chemical Corporation Baldwin, C. W. United States Steel Corporation Ehrhart, G. W. Productol Company Brasfield, T. W. United States Rubber Company Etter, H. P. Air Reduction Company, Inc. Chappie, BennettS., Jr. United States Steel Corporation Ferguson, Harry S. Allied Chemical fe Dye Corporation Chipman, E. E. Productol Company Fistere, Joseph Mallinckrodt Chemical Works Chiswell, Edgar B. California Chemical Company Fowler, Henry H. Fowler, Leva, Hawes & Symington Colefax, Peter American Potash & Chemical Corporation Frederick, D. S. Rohm & Haas Company Crass, M. F. , Jr. MCA Cremers, Bert Wyandotte Chemicals Corporation Daley, John F. E. I. du Pont de Nemours & Co., Inc. Dauler, Lee V. Neville Chemical Company Davies, Paul L. Food Machinery and Chemical Corporation Day, C. A. Richfield Oil Corporation Geiler, Raymond L, A. R. Maas Chemical Co., Division of Victor Chemical Works Gill, James M. Ethyl Corporation Gunder, R. W. Stauffer Chemical Company Gunther, J. D. Air Reduction Company, Inc. Hart, Ernest Food Machinery and Chemical Corporation (OVER) -2- Hill, John A. Air Reduction Company, Inc. Hooker, Horace W., Jr. Hooker Electrochemical Company Nielsen, Malcolm K. Chas. Pfizer & Co., Inc. O'Connor, C. J. Reichhold Chemicals, Inc. Hughes, T. G. Oronite Chemical Company Oostermeyer, Jan ' Food Machinery and Chemical Corporation | Hull, John E. MCA Jopke, K. L>. Rohm & Haas Company Parkhurst, George L. California Chemical Company Penick, S. B., Jr. S. B. Penick & Company Kilbourne, W. Grant J. R. Simplot Co. Prutton, Carl F. Food Machinery and Chemical Corporation ^ Kircher, John E. Continental Oil Company Putnam, Mark E, The Dow Chemical Company Marsh, W. P. , Jr. U. S. Industrial Chemicals Co. Reilly, P. C. Reilly Tar & Chemical Corporation j | McClure, Harry B. Union Carbide Corporation Reineck, Edward A. )- The Quaker Oats Company, Chemicals Divisio McConnell, William H. Diamond Alkali Company Ross, W. T. D. Canadian Industries Limited j McKeen, John E. i Chas. Pfizer & Co., Inc. McLean, William H. Merck & Co. , Inc. Rucker, C. N. Union Carbide Chemicals Company Shanaman, Fred Pennsalt Chemicals Corporation I ! J J Meiklejohn, R. M. Allied Chemical & Dye Corporation Stephens, Norman C. j The Quaker Oats Company, Chemicals Divis>| Minnig, Max A. Witco Chemical Company Stull, P. B. Hercules Powder Company, Inc. | Mohr, A. W. Thomas, R. W, ! California Spray-Chemical Corporation Phillips Petroleum Company Morrisroe, John Pilot California Company Munson, Charles S. Air Reduction Company, Inc, Thurmond, C. D. Richfield Oil Corporation Wishnick, Robert I. Witco Chemical Company 9( CMA 067529 Exhibit "B" Remarks by General John E. Hull, USA (Retired) Regional Board.of Directors' Meeting Manufacturing Chemists' Association, Inc. Pebble Beach, California -- March 26, 1958 The principal purpose of holding occasional MCA Board m tings In places other than New Tork Is to provide chemleal Industry executives in various parts of the country with mfirst hand vi w of what this Association is doing, the areas we ere working in, and the activities we are conducting on behalf of the ch mical industry. At the same time, these trips provide the Board m mbers, and I am sure my colleagues will agree with me, with added p rspective. For example, being here makes it easier to appreciate the growth of the chemical industry on the Test Coast. Facts such as th s ...in the last decade chemical employment here has increased 60 p r cent. In eight years up to 1956 the dollar value of West Coast chemical products more than doubled and is now in excess of ^^30 million. Chemicals now rank seventh among West Coast manufac turing industries. | That the West Coast chemical industry is a rapidly growing . on is attested by the MCA annual chemical construction survey re leased a few months ago. This survey showed an estimated total I investm nt of nearly a quarter of a billion dollars ($234.7 million) in n w chemical facilities completed, under construction or definitely plann d in 1957. When the last of the projects covered by our study i comes on stream sometime in 1960 some 90 projects will have been compl ted in 61 different West Coast communities. Incidentally, California ranked fifth nationally in the construction survey. With that little orientation--which was more for my associ ates and myself than for our West Coast visitors--I'd like to tell you how much I enjoy the opportunity of returning to Pebble Beach and how pleased we are to have so many of you here today. , I never miss an opportunity to explain what MCA does and how w operate and, of course, this is an ideal opportunity for me. Principally, we operate through committees made up of industry specialists, plus a staff secretary. In all, there are 23 committ s working in widely diverse areas from precautionary labeling to public relations. Speaking of public r lations, one of th bigg st st ps w have tak n in th last year was to launch what is known as the (over) CMA 067530 j Chemical Industry Activity Committee Program, Many of you, such as Ray Geiler and Roger Gunder, are acquainted with, and active in, th Program, Mr. Gunder will speak about this later in the meeting. Essentially, the CIAC, a logical outgrowth of Chemical Progress We k, is a year-round, local level community relations and education pro gram. By speeches, publicity, and work with schools and similar opinion moulding groups, it is our hope first to establish more firmly in the minds of the American public the significance of ch mistry and the chemical industry and secondly, by continuing this work year round, steadily build up our industry as a good place in which to work, a good industrial neighbor, a valuable member of the community and a vital segment of the economy. I am happy to report to you that CIAC, while still very much an infant, is both husky and growing. When I left Washington we had over 800 names on our roster as designated CIAC representatives. There is at least one in every state in the Union. Eighteen states and 20 additional major areas are organized with programs underway. Included in this list, by the way, are Los Angeles, San Francisco, Tacoma, Seattle, and Eastern Contra Costa County. Our education materials for use at the junior and senior high school levels are continuing to be well received. To date, 17,000 junior and senior high schools have participated in the Program, in cluding 1,165 schools in the three West Coast states. In addition to direct work with schools and cooperation via the CIAC Program, we are also beginning a cooperative arrangement with the American Association for the Advancement of Science, the American Chemical Society, and the American Institute of Chemical Engineers that should make our materials distribution and contact effort even more effective. I mentioned earlier that we work through committees. I've described some of the recant efforts done in cooperation with th Public Relations Advisory Committee and the Education Advisory Committee. I would like now to move into the technical side of our work. I think it is safe to say that In many organizations the technical specialists are often the unsung heroes. This happens, 1 believ , because it is often difficult to translate the specialists' achi v ments into terms of reference which the layman can grasp. We did a little study of the work of three of our committees, the Mechanical Technical Committee, the Chemical Packaging Committee, and the traffic Committee. Some of the recent projects ox these committees show ither actual or prospectiv savings to this Industry of an estimated (mor ) CMA 067531 -3- $28 million each and every year. I realize that is a rather dramatic statement and I'd like to amplify it a bit. In 1956 the Traffic Committee was successful in negotiating an increase in the United States and Canadian tank car mileage allowance rates from three to four cents per mile. This increase compensated chemical fleet opera tors about $4 million annually. The Committee has kept up this work and, in cooperation with other groups, is about to go after another one cent per mile increase. Most of us are familiar with the conventional, full 18-gauge, y, \ tight-head, 55-gallon drum. Our Chemical Packaging Committee, at an investment of $20,000 for testing and evaluation, is ready to re commend to the Rail and Motor Classification Committee the use of drums with 20-gauge bodies and 18-gauge heads for multiple-trip ser- vic for nondangerous commodities. If the petition is successful, e and we believe it will be, companies shipping in these drums will save about $8 million a year on the original cost and reuse of the n w drum versus the old. One of the problems which has been facing the chemical industry is the great number of types, styles and kinds of centrifugal pumps in use in the industry with the resultant high initial and maintenance costs. After two years of work by MCA's Mechanical Technical Committee in cooperation with the American Standards Association and the Hy draulics Institute, standards for centrifugal pumps will be promulgated shortly. Greater interchangeability, lower replacement parts inven tories, and other economies are calculated at a $7 million a year saving to the chemical industry. Upcoming standardization projects of this same Committee working through the American Standards Association--this time on heat exchangers and certain classes of process tanks--may see added annual savings of $9.1 million per year. And those I've mentioned are just some of the projects. i The Association also sponsors a certain amount of research work. Our project on physical properties at Carnegie Institute of Technology is now in its fourth year. That project may be expanded to include a study on spectral properties. Our plastics research project, now in its twelfth year at MIT, has been so successful that our Plastics Committee is considering transfer of a major portion of the funds to another institute to set up a similar program. Still in the field of plastics we have recently added a new staff function in the field of plastics in building. The work here is to encourage the acceptance of plastics as a building material by architects and engineers and to work with building code officials in efforts to modernize codes to include plastics materials. (over ) CMA 067532 4 In a brief period of time I can't begin to detail all the activities of your Association. I've discussed a little of the work of some of our technical and functional committees. In the last few months we published a new edition of "A Rational Approach to Air Pollution Legislation"...Our water pollu tion group has established a speakers' bureau and has scheduled its next pollution abatement workshop for May--this will be the eighth in a series...The Labels and Precautionary Information Committee sponsored a Precautionary Labeling Conference in New York last fail--about 225 attended. The papers were so well received the Committee proposed another one. This will be held April 30th in Houston...Legislatively, we are quite active. This session witnesses have appeared before Congress on food additives legisla tion, on extension of the Trade Agreements Act and in connection with the proposed tax changes...We are actively opposing S. 11 which, as you know, would curtail the "good faith" provision of the Robinson-Patman Act. These and other legislative matters are regularly reported in MCA's Federal Legislative Bulletin. This Bulletin is one of nine periodicals of the Association, not counting our publication, "Chemical News." Last year I reported that we won the Annual Association Award of the National Safety Council. We won it again this year---that makes four years in a row. Our Information Service handles many hundreds of requests each year from members, press, public, and Government. We are active in the field of industrial relations and recently broadened the scope of the Association to include companies primarily concerned in the manufacture of special metals such as zirconium, titanium, and lithium. That in a nutshell is some indication of what MCA is doing on behalf of the industry. The scope and extent of our work has broadened and increased considerably over the past few years. The only thing I can add is that we will continue to do our best to make sure that the Manufacturing Chemists' Association giv s its membership the best service possible in the fields in which we represent the chemical industry. Thank you. CMA 067533