Document g2kN0qNvym3w3N6Q46VjM4jD9

AGENDA MEETING OF THE MCA BOARD OF DIRECTORS 10:00 a.m. , Tuesday, October 8, 1974 The Madison, Washington, D. C. I. Opening Remarks and Introduction of Guests II. Minutes of Meeting of September 10, 1974, Including Financial Statement for Three Months Ended August 31, 1974 III. Business Items: (a) Approval of Director's Alternate David H. Bradford, Jr, (for Frederick L. Bissinger) (b) Proposed Financial Support of National Academy of Sciences Symposium on Specifications for Food Ingredients (c) December Meetings of Board of Directors and Executive Committee (d) Appointment of Committee Members (Attachment) (Attachment) IV. Report of Director of Government Relations V. Reports of Committees: (a) Government Relations Committee Everett H. (Ev) Bellows, Chairman (b) Technical Information Retrieval Committee Robert H. (Bob) Blaker, Chairman (c) Economic Policy Review Committee Fletcher L. (Fletch) Byrom, Chairman VI. Report of the President Next Meeting of the Eoard of Directors - 3:00 p. m. , Monday, November 25, 1974, Pinnacle Club (Rooms A, B and C), located on the top floor of the Mobil Building, 150 East 42nd Street, New York City CMA 070616 1483 MINUTES of the two hundred thirty-fourth meeting of the Board of Directors of the Manufacturing Chemists' Association, Inc. , held at The Madison, Washington, D. C, , Tuesday, October 8, 1974, at 10:00 a.m. Directors Edward R. Kane, Chairman Jack B. St. Clair. Vice Chairman James G. Affleck Warren M. Anderson Frederick L. Bissinger Harry W. Buchanan E. E. Chipman Thomas C. Dabovich William J. Driver J. Morris Evans James M. Gill John R. Hall John W. Hanley Harry T. Marks Harry D. McNeeley Adolph Monsaroff H. Barclay Morley Donald D. Pascal Albert J. Royce, Jr. Harvey J. Taufen Harold E. Thayer John F. Welch, Jr. Alternates: David H. Bradford (for Frederick L. Bissinger) Werner C. Brown (for Harvey J. Taufen) James C. E. Fuller (for James H. Gardner) Robert C. Hyndman (for Thomas C. Dabovich) Howard H. Irvin (for Thomas S. Farmer) James E. Magoffin (for Harry D. McNeeley) Harold S. Mickley (for H. Barclay Morley) W. C. Roher (for Z. D. Bonner) General Counsel: Lloyd Symington Secretary-Treasurer: George E. Best By invitation: Bruce M. Barackman, MCA Everett H. Bellows, Olin Corporation Robert H. Blaker, E. I. du Pont de Nemours Fletcher L. Byrom, Koppers Company, Inc. William J. Canavan, Olin Corporation Hugh M. Robinson, MCA William M. Stover, MCA David C. Williams, MCA Company Chairman Kane opened the meeting by calling for self-introduction of those present in turn. 1 4 k* i CMA070ai7^ 1484 I. MINUTES OF SEPTEMBER 10, 1974, MEETING Minutes of the September 10th Board meeting, as distributed, including the financial statement for three months ended August 31, 1974, were duly approved. II. REPORT OF THE SECRETARY-TREASURER Exhibit A, attached. m. BUSINESS ITEMS (a) Approval of Director's Alternate David H. Bradford, Jr. , was duly approved as the designated Alternate for Frederick L. Bissinger. (b) Financial Support of National Academy of Sciences Symposium on Specifications for Food Ingredients The proposal for sup port was distributed in advance with the tentative agenda. Chairman Kane reported a favorable recommendation from the Executive Committe. ON MOTION, duly made and seconded, it was, VOTED: That $2,000 be contributed in support of the NAS Symposium on Speci fications for Food Ingredients, and the MCA budget be amended therefor. (c) December Meetings of Board of Directors and Executive Committee In anticipation of lack of need for the Board to meet so soon after the November 25th meeting, Chairman Kane announced cancellation of the meeting scheduled for December 10, 1974, with the understanding that the Executive Committee will meet then if circumstances require it. (d) Appointment of Committee Members approved as listed in Exhibit B, attached. Appointments were (e) Data Bank on Chemical Toxicology At Chairman Kane's request, Mr. St. Clair reported briefly on the consideration currently being given by a subcommittee of the Executive Committee -- Mr. St. Clair, chair man, and Messrs. Affleck, Anderson, Barnes, and Hanley --to the develop ment of a centralized source of information on the toxicology and related properties of chemicals. One idea put forward by a group of chemical com panies is te creation of a chemical industry institute on toxicology. The subcommittee is evaluating various concepts, including what role MCA might have, and will submit recommendations in the near future. CMA 070618 1485 I VI. REPORT BY DIRECTOR OF GOVERNMENT RELATIONS Mr. Stover's report is attached as Exhibit C. In his oral re marks, Mr. Stover amplified on the arrangements for the Chemical Forum luncheons, today and on November 11. V. REPORTS OF COMMITTEES Reports presented by the following committee chairmen are at tached as indicated; Mr. Everett H. Bellows Government Relations Committee Exhibit D Mr. Robert H. Blaker Technical Information Retrieval Committee Exhibit E Mr. Fletcher L, Byrom Economic Policy Review Committee Exhibit F VI. REPORT OF THE PRESIDENT Mr. Driver's report is attached as Exhibit G. Mr. Driver commented on the scheduled October 10th meeting with Commerce Secretary Dent and Federal Energy Administrator Sawhill to which the chief executives of some 30 chemical companies have been invited. The purpose is to discuss a voluntary approach to energy conservation, hop ing to arrive at a goal for percentage reduction of energy use over the period of 1972 to 1980. Prospectively, MCA may serve as the vehicle for collection of data through which progress would be monitored. This is one of a series of meetings with various branches of industry. Discussion brought forth the comment that meeting environmental regulatory requirements tends to con sume additional energy, which perhaps should be recognized as an offset to the other energy saving. Mr. Driver mentioned as well a recent visit with Mr. Glenn Schweitzer of EPA who told of conferring with other government agencies regarding regulation of toxic chemicals, even in the absence of enactment of the Toxic Substances Control Act now pending. First attention will be di rected to a selection from among the 50 top-volume chemicals. In refereh.ee to litigation on EPA's effluent guidelines, Mr. Driver reported the recent decision of the District Court in Roanoke to the effect that judicial review of the guidelines should occur in the Court of Appeals, and that MCA member companies have been informed of this de cision. This jurisdictional question is also raised in companion litigation CMA 070619 k 1486 now pending in the U. S. Court of Appeals for the Fourth Circuit; appeal from the District Court opinion also will be taken to that court. Finally, Mr. Driver spoke of the General Accounting Office's issuance of a report highly critical of the administration of the Occupational Safety and Health Act by the Department of Labor. Certified correct: Edward R. Kane Chairman of the Board George E. Best Secretary-Treasurer CMA 070620 EXHIBIT A REPORT OF THE SECRETARY-TREASURER October 8. 1974 Dollar amounts rounded from tabular details ($000) INCOME & EXPENSE June 1 , 1974 - Sept. 30, 1974 - 4 Months (337.) Income - Membership Fees - Other $2,015 133 $2,148 Expense - Operations - Projects $ 584 95 679 Percent of Total Budget 101.5627. 45.0857. 94.2527. 29.3647. 22.0937. 28.0707. ASSETS (As of Sept. 30. 19741 Cash Investments Miscellaneous $ 135 3,172 6 $3,313 CMA 070621 CMA 070622 MANUFACTURING CHEMISTS ASSOCIATION S I A i LMLN V OF FIN \N(,1 VS. I'OSI I SON September 30, 1974 BALANCE SHEET Assets Cash ,r National Savings 6t Trust - Conanerical Account National Savings 6 Trust - Payroll Account $ 126,483 6,000 Imprest Funds 2.800 $ 135,283 Investments Bank Certificates of Deposit Bank Repurchase Agreements 0, S. Government Securities U. S. Government Agency Securities Corporate Securities $ 800,000 50,000 714,682 i ,302,359 305.300 3,172,341 Deposits U, S,, Government Printing Office American Airlines $ 200 425 625 Account Receivable Travel Advances OCITA \ Furniture & Equipment $ 1,133 1,492 2,625 ______ 2,158 $3,313,032 INCOME & EXPENSE INCOME Membership Dues & Entrance Fees Income from Investments Publication Sales (l)Meeting & Special Funds (Schedule I (d)) Miscellaneous Total Income EXPENSE Management Technical - General Technical - Chemtrec Public Relations Government Relations Information Service Office Administration Total Expense *(2) Income less Expense Liabilities D. C. Use Tax Liabilities & Fund Balances $ 162 Be serve Deferred Compensation 95,139 Fund Balances Restricted (Schedule I (e)) Unrestricted - From Previous Fiscal Years - Current Fiscal Year $1,311,801 1,469,254 $ 436,676 2,781,055 3,217,731 $3,313,032 FOOTNOTES: *(1) Net Income on Completed Projects *(2) Total General Program Expense Fiscal Year 1974-75 Budget Program Expense {above) Expenditures from Project Funds carried over from previous Fiscal Year (Schedule I (c)) $2,014,620 56,592 27,806 48,957 387 $2,148,362 $ 119,713 226,262 48,368 128,266 78,346 21,107 57,046 $ 679,108 $1,469,254 $ 679,108 2,115 $ 681,223 'A' SCHEDULE I RESTRICTED FUNDS & MEETING ADVANCES September 30, 1974 Ai Carry-Over of Budgeted Funds GR-1 Economic Study Non-Budgeted Funds & Meetings Meetings, Workshops & Symposia Tank Car Mileage Compensation Odor Threshold Determination Fund Vinyl Chloride Research - Inhalation Vinyl Chloride Research - Epidemiological Vinyl Chloride Research - Dow Studies Phosgene Safety Research Fluorocarbons Research Phthalate Esters Research 4 Loss Data Bank Project Patents Monitor f Total - fron-Budgeted Funds & Meetings Ba lance June lt 1974 (a) $ 13,584 Receipts (b) $ Current Fiscal Year Expenditures (c) $ 2,115 Transfers To Income Cd) $ Balance September 30, 1974 (e) $ 11,469 $ 63,974 24,348 126,564 11,361 22,142 17,890 10,922 $277,201 $ 21,344 - 75,050 7,000 - 16,000 2,760 $122,154 $ 36,815 - 100 1,000 - 442 - 11 - $ 38,368 $ 48,957 - $ 48,957 $ (454) 24,348 - 126,464 10,361 , 75,050 1 28,700 17,890 10,911 16,000 2,760 $312,030 CMA 070623 Plastics Group Financial Package Total $ 92,318 $383,103 $ 58,770 $180,924 $ 37,911 $ 78,394 $ $ 48,957 $113,177 $436,676 SCHEDULE II BUDGET PROGRAM EXPENSE September 30, _Emp*loyees ,( A. ct.ual . J ^Authorized MANAGEMENT EXPENSE 10 BUDGET 10 ________________ TECHNICAL GENERAL CHEMTREC EXPENSE BUDGET EXPENSE BUDGET 18 7 19 7 PUBLIC RELATIONS GOV'T RELATIONS EXPENSE 12 BUDGET EXPENSE 8 12 BUDGET 9 INFO SERVICE OFFICE EXPENSE 3 BUDGET EXPENSE 11 3 ADMIN BUDGET n TOTAL TO DATE 4 MONTHS EXPENSE BUDGET 69 71 OPERATING EXPENSE Salaries & Related Expense Retirement Plan $ 84,614 $ 85,866 $114,558 $119,582 $ 35,543 $ 36,413 $ 67,610 $ 67,476 $ 47,520 $ 50,563 $ 16,676 $ 17,146 $ 40,835 $ 44,220 $ 407,356 $ 421,266 - 14,600 - 16,433 - 3,500 - 5,467 - 5,033 - 4,533 1,267 - 50,833 Hosp. Ins. A Health Plan 577 871 1,291 2,025 144 216 930 1,297 469 865 216 359 794 967 4,421 6,620 Legal Fees & Expense 14,194 8,833 657 2,000 -_ - - 9,348 6,000 -- - 24,199 16,833 Consultants&Investment Serv, - 833 -- -- -- -- -- - - 833 Audit Rent & Premises Expense Taxes & Insurance Supplies A Gen. Office Exp. Furniture & Equipment Printing Telephone & Telegraph Postage Travel & Entertainment Meeting Expense 2,000 5,169 2,106 2,196 - 2,964 1,628 1,026 1,411 1,017 833 4,526 3,055 2,167 333 867 1,627 1,000 2,333 3,600 9,425 3,961 6,270 - _ 4,112 8,521 6,354 115 _ 8,297 5,632 5,600 500 333 4,183 7,500 8,667 300 _ 2,838 1,75a 1,018 - _ 6,371 245 426 - 2,237 8,407 1,067 483 6,371 333 917 - - 6,209 3,046 3,358 - 1,786 2,684 10,254 6,040 42 - 5,523 3,505 3,150 63 1,250 2,980 13,000 8,333 116 - 4,355 1,991 2,054 - 555 1,866 2,230 4,020 26 - 3,811 2,609 2,333 634 233 2,273 2,500 3,333 1,167 . 2,125 841 198 - _ 473 179 116 - _ 1,852 951 250 33 472 284 367 - _ 7,112 2,600 2,635 1,365 1,897 (221) - 6,201 3,663 2,333 67 400 1,640 533 67 2,000 37,233 16,303 17,729 - 6,670 19,031 22,232 18,369 1,200 833 32,447 27,822 16,900 2,133 3,083 19,546 25,150 24,017 5,183 Periodicals, Books, etc. Organizational Memberships Contingency 113 150 550 as3 150 1,667 336 1,115 * 533 868 - 23 117 - 33 -- 593 517 3,097 2,833 100 333 815 1,108 -- -- 279 467 4 15 -- 4 33 4,445 4,650 25 27 2,609 3,267 - 150 1,667 Operating Expense Totals $119,713 $134,044 $156,715 $182,453 $ 48,368 $ 60,094 $102,652 $113,030 $ 78,346 $ 85,295 $ 21,107 $ 26,729 $ 57,046 $ 61,438 $ 583,*>47 $ 663,083 PROJECTS Technical Air Quality Water Resources Hul11-Coamit tee-Transports tIon \ HuIti-Committee-Publications Trade Advisor $ $ 1,667 15,350 15,333 814 900 13,383 24,000 40,000 43,333 i $ - $ 1,667 15,350 15,333 814 900 13,383 24,000 40,000 43,333 Public Relations Coantunlty Relations Consumer Information Environmental Quality Internal Publications Media Relations Academic - Industry Study College 6 Hi School Teacher' Awards Education Exhibits Education Publications $ 3,133 $ 6,417 3,139 8,333 7,747 12,100 1,789 13,666 4,357 5,900 30 250 1,323 4,767 302 1,333 3,794 5,000 3,133 3,139 7,747 1,789 4,357 30 1,323 302 3,794 6,417 8,333 12,100 13,666 5,900 250 4,767 1,333 5,000 Information Service Chemical Statistics Series $ - $ 383 - 383 Project Totals $ $ - $ 69,547 $ 85,233 $ $ $ 25,614 $ 57,766 $ -$ $ - $ 383 $ - $ $ 95,161 $ 143,382 COMBINED TOTALS $119,713 $134,044 $226,262 $267,686 $ 48,368 $ 60,094 $128,266 $170,796 $ 78,346 $ 85,295 $ 21,107 $ 27,112 $ 57,046 $ 61,438 $ 679,108 $ 806,465 CMA 070624 EXHIBIT B COMMITTEE MEMBER APPOINTMENTS (a) Industrial Relations Advisory Committee Donald G. Raider, Exxon Chemical Company U.S, A. (b) International Trade Committee George D. Heaton, Shell Chemical Company (c) Occupational Health Committee John Bolton, Stauffer Chemical Company R. D. Fulwiler, The Procter & Gamble Company James W. Hammond, Exxon Chemical, U. S. A. Stanton C. Kelton, Rohm and Haas Company Edward J. Kerfoot, BASF Wyandotte Corporation (d) Safety and Fire Protection Committee Russell L. Miller, Monsanto Company Herman Waltemate, B. F. Goodrich Chemical Company (f) Water Resources Committee A. J. Diglio, Air Products and Chemicals, Inc. John H. Mahon, Calgon Corporation MCA BD - 10/8/74 CMA 070625 EXHIBIT C REPORT BY THE DIRECTOR OF GOVERNMENT RELATIONS WILLIAM M. STOVER OCTOBER 8, 1974 ECONOMIC TROUBLES WILL AFFECT POLLUTION ABATEMENT PROGRAMS Environmentalist groups are genuinely concerned that the nation's current economic problems will result in a major slowdown of pollution abatement programs. They see a prolonged economic slump as seriously weakening public support for continued expenditures for environmental control. To many in the environmental movement there are signs that pocketbook issues are already getting higher priority. President Ford, for example, has recently sought to defer spending of some $9 billion in grants to states for waste treatment plant con struction. The Federal Water Pollution Control Act authorizes $18 billion for this purpose, only half of which has been allotted, and the President now contends that spending the remainder would be in flationary. (As a follow-on to its impoundment battles with President Nixon, Congress last July enacted a new law requiring the President to furnish notification of his intent to defer or rescind spending. In order to require that the funds be spent, either house of Congress must enact a resolution to that effect.) There are other signs. Transportation Secretary Brinegar re cently endorsed in principle the thinking of leaders in the transpor tation industry that environmental control laws need re-examination in light of the economic situation and the energy crunch. Some labor spokesmen are also taking a new, hard look at environ mental programs. A senior vice president of the United Transport Union, George Lechner, recently was quoted as saying "environmental goals should be secondary .to human needs during these hard times". CMA 070626 2 Other signals are coming from Capitol Hill. A bill was recent] approved by the House Appropriations Committee halting EPA authority to raise the price of urban parking as a means of discouraging com muters from driving to work. The bill also orders EPA to avoid actions that might result in raising the cost of food or electric power, such as banning pesticides or requiring emission clean-up by electric power companies. The erosion of public support for environmental programs has drawn a direct response from both Environmental Protection Agency Ad ministrator Russell B. Train and Russell W. Peterson, Chairman of th< Council on Environmental Quality. In an October 4 speech to a New York audience, Mr. Train affirmed that environmental clean-up cannot be blamed for rising inflationary pressures. He urged that abatemenl spending be continued since its benefits far outweigh costs. He cit< one study predicting that environmental spending would produce an annual inflation rate of only about 3/10 of one percent for the 1973 to 1978 period. Train also made reference to other statistics whi'ch he claimed demonstrated that the environmental program was responsib; for less than 0.5 percent of the 17 percent increase m the wholesale price index for the year ending last March. CEQ Chairman Peterson emerged from a recent meeting with Preside Ford expressing confidence that the President will be "an effective leader in finding the appropriate balance between economic and en vironmental concerns". Peterson also referred to CEQ's "half and half plan" which is aimed at supplying half of the nation's energy requirements from new sources and the other half from conservation efforts. He emphasized that CEQ has made strong efforts to collect and develop specific data on the economic impact of pollution control He stressed the importance of his personal meeting, and that of Ad ministrator Train, with President Ford, He said that such a face-toface exchange never took place with former President Nixon, and that he considers himself Mr. Ford's adviser on environmental issues withi the White House. Peterson also made reference to the keen interest exhibited by Vice President-designate Rockefeller, and was confident that the former New York Governor would continue to have an impact in environmental policy. It is becoming increasingly clear that re-examination of environ mental programs will be a key issue in the 94th Congress. The nation economic posture, as well as the strengths and weaknesses of the laws themselves, will have important effects on the outcome. CMA 070627 3 trwKRGY RESEARCH AND DEVELOPMENT ADMINISTRATION TO BE CREATED Both the House and Senate have passed bills dealing with research and development activities in the energy field. The bills are pres ently in conference and despite a somewhat confusing legislative sit uation it is likely that some form of new law will be enacted this yea presently, the conferees face two major questions: (1) determining the exact shape of the new consolidated agency which will direct energ r&D; and (2) the establishment of basic policy to assure that ERDA follows Congressional wishes and avoids domination by nuclear interest It appears likely that the conferees will recommend a new Energy Research and Development Administration to take over all of the Atomic Energy Commission's functions, with the exception of licensing and reg lation of nuclear power. ERDA would also take over energy R&D functio from other agencies such as the Interior Department's Office of Coal Research, the fossil fuel programs of the Bureau of Mines, and others Licensing and regulation of nuclear power would be handled separately by another new agency. The source of confusion in the policy area is the fact that both House and Senate have also passed separate bills establishing a $20 billion, ten-year program for ERDA. These bills, too, are awaiting conference action. It now appears likely that the measures will emerg from conference as two separate bills, one establishing ERDA, and the second setting forth policy determinations. The ERDA Administrator will be directed to give priority to energy conservation and the de velopment of a wide range of energy sources under detailed program guidelines. Various forms of Federal assistance will probably be authorized, including contracts, grants, loans, Federal purchases for price supports of products from demonstration plants, incentives to inventors, and joint Federal-industry corporations. ELECTION REFORM LAW NEARS ENACTMENT A sweeping election reform law is moving toward the President s desk after House and Senate conferees dropped the bill's most contro versial provision, one which would have financed Congressional campaig from the public treasury. The bill is aimed at reducing the influence of big money contributors and provides a new system of government sub sidies up to $20 million for each major party Presidential candidate. CMA 070628 > i V I 1 4 of sales on salaries and services represented in corporate information- retrieval facilities, libraries, special information services, etc. This probably means that in aggregate the chemical industry spends in excess of $50 million on corporate information-retrieval facilities. Cur questionnaire also shows that the people invqlved in this work , have usually administratively reported to various divisions or admin istrative site managers or service managers scattered throughout the corporation, and there is rarely any small group or individual who can speak for the corporation as a whole. This leads, we believe; to ! j a situation where a large information retrieval service which requires ( back-up use of computers and trained analysts is usually too expensive a project to be seriously considered by the corporate representative contacted by the vendor of such a service. Usually, it appears, there is no mechanism within most companies for librarians, heads of infor mation services in research or in legal departments or whatever, to get together and decide what is best for the corporation--or no mechanism to figure out how to share the cost of a large service, once purchased, through the various groups which might be interested within the corporation. The net result is that the vendor finds it difficult to sell enough copies of this product in order to make money, and con sequently, if this situation maintains, vendors will not in the future seriously consider developing significant information services for sale. There may be no easy solution to this problem, but I believe the matter seriously merits your consideration. It certainly follows that if vendors of significant information services are unable to make sufficient money to stay in business by selling subscriptions to their services to a reasonable number of chemical companies, the chemical industry will end up the loser. It will be deprived of improvements of information retrieval techniques which could in this way be acquired at reasonable prices but which would be prohibitively expensive for each of the companies to develop individually, or, for that matter, for MCA as a trade association to undertake the develop ment. l MCA BD- 10/8/74 5 - A six-member enforcement commission is established, consisting of two members appointed by the Senate, two by the House and two by the President, all to be full-time members and subject to confirmation by the House and Senate MOVEMBER 11 CHEMICAL FORUM FEATURES NOTED VOTING ANALYST On Monday, November 11, six days after the Congressional elections, the MCA Chemical Forum will be addressed by one of the nation's leading authorities on voting patterns and trends, Mr. Richard M. Scammon. presently a voting analysis consultant to NBC, Mr,, Scammon is a former Director of the Census and now heads the Elections Research Center in Washington, D. C. He has written and edited a number of authoritative works on the voting process and political trends in the U. S., the I most well-known being "The Real Majority", which he co-authored in 1970. In 1958, Scammon was Chairman of the U. S,, Delegation observing elections in the USSR, and in 1963 he headed the President's Commis sion on Registration and Voting Participation. He was also U. S. member of the OAS Technical Electoral Mission to the Dominican Republic, and later headed the U. S. Select Commission on Western Hemisphere Im migration. In 1973, Mr. Scammon was a member of the U. S. delegation to the General Assembly of the United Nations. His November 11 appearance as our guest will provide an excellent opportunity for Mr. Scammon to offer his analysis of Congressional election results, including his view of how the newly-chosen legisla tors will affect decisions made in Washington in 1975. The Chemical Forum begins at noon in The Madison Hotel, 15th and M Streets, N. W., Washington, D. C. Guests are welcome. i s 3 ? CMA 070630 EXHIBIT D MCA Government Relations Committee Report to the Board of Directors October 8, 1974 Everett H. Bellows, Chairman I. Organization for 1974-75 Completed in August A. Executive Committee and eight strategy subcommittee assign ments for 1974-75. Chairmen of strategy subcommittees will also serve as liaison representatives to the technical or function committees in the assigned area. Additionally, we have designated seven liaison representatives to MCA committees where no parallel strategy subcommittee was needed. B. Five Chemical Forums have been set for the year and speakers arranged for the first two. II. Program Highlights A. Legislative: Members of the Government Relations Committee will be closely concerned with these continuing issues which will carry over into the 94th Congress: 1. Toxic Substances. This legislation has been locked in conference for the past year. Senator Mansfield has stated publicly that no further action will be taken in tljis session. 2. Solid Waste Management. Although Senator Randolph (D.-w.Va.) wants a comprehensive bill, there will not be time to complete it in this session. We must make every effort in '75 to limit governmental intervention into manufacturing processes. CMA 070631 2 3. Clean Air Act. Corrective amendments are badly needed, particularly on the subject of nondegradation, but Senator Muskie has steadfastly opposed any changes. (Our best hope is that Muskie will drop his position on the Public Works Committee now that he has become Chairman of the newly established Budget Committee in the Senate.) 4. Federal Water Pollution Control Act. Here again corrective measures are badly needed, particularly in the area of EPA's jurisdiction over hazardous substances and in the provision for extremely punitive damages if spills occur in navigable waters. Probably no adequate action will be possible before the National Commission on Water Quality reports in October, '75. 5. Extension of Controls on Petroleum. An extension of four to six months beyond February '75 is almost cer tain; the problem will be to foreclose extension for a much longer period of time. 6. Additionally, there will be both direct and indirect legislative efforts to restrict or control multina tional corporations, foreign source income, and alleged industrial concentration. Symptomatic of these Con gressional attitudes and assumptions is this quote from the Joint Economic Committee's Interim Report on inflation: After listing world-wide factors, the report goes on to say, "However, even these extra ordinary factors do not explain why wholesale indus trial prices have risen at an annual rate of 35 percent in the past three months; why iron and steelprices are up 44 percent in the past year, nonferrous metals 45 percent, industrial chemicals 62 percent . . . (this) appears to be unexplainable except in terms of the ability of concentrated industries to resist competitive forces and to achieve a target return on investment in good times and bad." For the remainder of this Session, the Congressional leadership hopes to settle three issues: The Trade Bill, so-called Tax Reform and National Health Insurance. My personal judgement is that only the Trade Bill will pass and this too is "chancy;" more probably all three will be back on the agenda in 1975. CMA 070632 B. Regulatory: Lacking corrective legislation, we will be especially concerned with: 1. EPA's regulatory and standard-setting actions under the Water Pollution Control Act: designation of hazardous substances (Section 307), the setting of penalties for spills (Section 311) and in general the arbitrary and inflexible character of effluent standards. 2. OSHA's elaboration of health and safety standards, notably at the moment with regard to Vinyl Chloride. Summary Comment on the Washington Scene For the Chemical Industry, as for any business group, the key to effectiveness in working with the Congress is an understanding of the Committee system and a recognition that to get realistic and practicable law we have to provide hard facts and case his tories to senior Committee members and to the staff of those Committees. Unfortunately, the number of Committee Chairmen who hold at least moderately conservative views is declining - which means we must work harder at presenting demonstrably convincing testi mony. Arguments based on philosophical positions will have little effect. CMA 070633 EXHIBIT E REPORT TO THE BOARD OF DIRECTORS OF MANUFACTURING CHEMISTS ASSOCIATION BY DR. ROBERT H. BLAKER, CHAIRMAN TECHNICAL INFORMATION RETRIEVAL COMMITTEE OCTOBER 8, 1974 The Technical Information Retrieval Committee came into existence just two years ago. As the first Chairman of this new Committee, I would like to review for you our activities. The basic purposes of this Committee, as approved by the Board of Directors, are to analyze services offered by suppliers of technical information and to suggest improvements, to encourage research and development in the area of information retrieval, and to act as a forum for interchange of information relative to re trieval for similar groups in this country and abroad. We have established working relationships with the major suppliers of information of interest to our Committee. We have working sub committees with responsibility of working with the U.S. Patent Office; Chemical Abstracts Service of the American Chemical Society; Derwent Publications Ltd., London; and IFI/Plenum Data Corporation. The management of each of these organizations expressed interest in working with our subcommittees. In addition, we have established a technical subcommittee to do a limited amount of research in the area of infor mation retrieval. The major accomplishments we can point to thus far are as follows: We have been instrumental in convincing IFI/Plenum Data-Corporation to offer a greatly improved method of computer retrieval of information from U.S. patents. We were also instrumental in Derwent Publications' decision to make significant improvements in its procedures for indexing the infor mation contained in non-U.S. chemical patents. Currently, we are involved in a project to monitor the Derwent coverage of Japanese chemical patents, because it has come to our attention that Derwent is apparently not covering all of the significant chemical^patents which are currently issuing in Japan. Since we could not get a clear statement from Derwent of its'plans in this area, the CMA 070634 2- - Committee is underwriting the cost of having a Japanese documentation firm monitor the Derwent coverage for a period of six months. The information so gained will be used in future negotiations with Derwent,] Our Subcommittee for Relations with Chemical Abstracts Service has been acting as a forum to funnel constructive suggestions concerning abstracting of chemical articles accumulated from member companies to Columbus for consideration. In addition, we have undertaken one major project which is to convince Chemical Abstracts Service to make available in this country in hard copy or on microfilm all of the articles which are cited by its services. Currently, libraries spend a significant amount of time attempting to locate a small percentage of articles cited, because in some cases, the full text of the article is not available in this country. Our technical subcommittee has been working with the Classification Section of the U.S. Patent Office and suggesting improvements in the way polymer patents are classified. The Committee is gratified in that it has apparently made some impact on the bureaucracy of the U.S. Patent Office. We have quite recently established a new subcommittee to work with the major vendors of on-line computer-retrieval services: System Development Corporation, Lockheed, and Tymshare Inc. We have established a working relationship with the Patent Docu mentation Group located in Switzerland. This organization is an association of seventeen European chemical companies incorporated under the laws of Switzerland with purposes similar to the charter of our Committee. We are currently exchanging information with PDG relative to the completeness of Derwent coverage of non-U.S. patents. Our contribution will be the information relative to Derwent coverage of Japanese patents mentioned earlier. Our immediate plans for the future are to continue to strengthen our working subcommittees in making constructive suggestions to the vendors of information services. We feel - strongly that this is the best way the Amferican chemical industry can successfully cope with "the information explosion." I would say that the information ex plosion is not so much explosion in the amount of valuable information as it is in the great proliferation of documents, some of which con tain valuable information. Our Committee feels strongly that it is desirable for individual chemical companies to be able to buy retrieval services rather than to create services*.- each on its own account. CMA 070635 For the remainder of my time this morning, I would like to discuss with you a major problem which faces vendors of large information retrieval services. The problem is basically this: Many companies appear to be reluctant to purchase subscriptions to new and improved information-retrieval services when the cost is more than a few thousand dollars. Let me give you an example: Our Committee and its immediate predecessor, the Ad Hoc Committee which was established in 1971, were instrumental in convincing IFI/ Plenum Data Corporation to spend several hundred thousand dollars to improve its methods for retrieving the information from U.S. chemical patents. The idea behind our action was that it would make sense for chemical companies to be able to buy subscriptions thereby sharing the cost of building a large system, rather than for each company to set up its own system for retrieving this information; or, alternatively, for the Manufacturing chemists Association to set up a Patent Data Bank (which was a proposal discussed by the Executive Committee in March, 1970, which led to the Ad Hoc Committee and, subsequently, to the formation of this Committee). Thus far, IFI/Plenum Data Corpor ation has been able to sell only five subscriptions to MCA-member companies. The subscription price is $25,000 for a system providing access to approximately 350,000 U.S. chemical patents issued since 1950, with an annual update cost of approximately $20,000 to cover the annual updating of the file for the 20,000-25,000 patents. Fortunately, IFI/Plenum has been able to sell sufficient subscriptions to the petro leum and pharmaceutical companies to gain sufficient income to keep their system going. Currently, they have fourteen subscribers, five of which, as I stated earlier, are from chemical companies. The question of why the chemical companies have not purchased this file, which at current prices would cost about $6 million to reproduce, for a subscription of $25,000 has been a subject of considerable discussion in our Committee. I think you may be interested in our conclusion: Generally, technical information facilities in most companies are so decentralized that there is rarely one individual or a group who can speak for the entire corporation. Our Committee has conducted a survey and determined, among other things, that the average company represented on our Committee spends on the general order of .10 percent CMA 070636 4 of sales on salaries and services represented in corporate informati0J retrieval facilities, libraries, special information services, etc. 1 This probably means that in aggregate the chemical industry spends in excess of $50 million on corporate information-retrieval facility Cur questionnaire also shows that the people involved in this work have usually administratively reported to various divisions or admin* istrative site managers or service managers scattered throughout the corporation, and there is rarely any small group or individual who can speak for the corporation as a whole. This leads, we believe to a situation where a large information retrieval service which requires back-up use of computers and trained analysts is usually too expensive a project to be seriously considered by the corporate representative contacted by the vendor of such a service. Usually, it appears, there is no mechanism within most companies for librarians, heads of infor mation services in research or in legal departments or whatever, to get together and decide what is best for the corporation--or no mechanism to figure out how to share the cost of a large service, once purchased, through the various groups which might be interested within the corporation. The net result is that the vendor finds it difficult to sell enough copies of this product in order to make money, and con sequently, if this situation maintains, vendors will not in the future seriously consider developing significant information services for sale. There may be no easy solution to this problem, but I believe the matter seriously merits your consideration. It certainly follows that if vendors of significant information services are unable to make sufficient money to stay in business by selling subscriptions to their services to a reasonable number of chemical companies, the chemical industry will end up the loser. It will be deprived of improvements of information retrieval techniques which could in this way be acquired at reasonable prices but which would be prohibitively expensive for each of the companies to develop individually, or, for that matter, for MCA as a trade association to undertake the develop ment. MCA BD- 10/8/74 C^A 070637 EXHIBIT F MCA Economic Policy Review Committee Report to the Board of Directors October 8, 1974 Fletcher L. Byrom, Chairman The Economic Policy Review Committee is one of the newer MCA committees, having been established in January 1972. Its activities during the past year and its continuing concerns are as follows: 1. The Energy Problem Pursuant to the instructions of the MCA Board of Directors at its November 1973 meeting, a task force of the Committee pre pared a statement on "The Energy Crisis and the Chemical Industry." It was adopted by MCA, issued in December 1973, and widely dis tributed. Subsequently, the Committee recommended that "MCA sup port measures which operate to expand the supply of essential fuels and feedstocks, both short and long-term, and oppose leg islative and governmental price and other restraints which tend to restrict such supply, again both in the short and the long term." The Committee also recommended that "MCA oppose legisla tive and governmental measures which tend to impair the profit ability of industry." Both recommendations were adopted by the MCA Board of Directors at its June 1974 meeting and have functioned as guidelines for the MCA staff ever since. MCA has cooperated with the Federal Energy Administration in its activities, particularly its planning for Project Inde pendence. MCA President William J. Driver is testifying at the Project Independence hearing on energy conservation at San Francisco, October 9. 2. Wage-Price Policy When this Committee last reported to the Board of Directors on November 19, 1973, the wage-price control program of the Nixon Administration was still in force. MCA had presented a petition to Cost of Living Council Director Dr. John Dunlop urging the termination of wage-price controls or, failing that, the exemption of the chemical industry from them. Subsequently, and as a follow-up to the petition, MCA leaders met with top officials of the Cost of Living Council to further explore the possibilities. As a result of this and subsequent MCA contacts with Council officials, a substantial portion of the CMA 070638 2 industry was de-control led at the end of January 191A.'-1 Other por tions of the*industry were subsequently de-controlled, and all wage and price controls expired at the end of April,. The Congress was at that time unwilling, in view of the opposition both of the business community and of organized labor, to extend them in any form, however ( limited. The onset of double-digit inflation has, however, had an impact upon public opinion and upon Congressional and Administration at titudes. As one of his first actions, President Ford asked for and received from Congress the establishment of a Council on Wage and Price Stability. The Council has no enforcement authority, and the President has declared his firm opposition to any revival of wage and price controls. The Economic Policy Review Committee will continue to monitor developments in this area, and - - when appropriate - make recommendations for action in the public interest and in the interest of our industry. 3. International Economic Policy A continuing concern of the Committee, and of its task force on international economic policy, has been the defense of multi national corporations against the attacks being made upon them in a wide range of national and international forums. Of these, the most important appear to be the United Nations, the International Labor Organization (ILO), and the Senate Subcommittee on Multinational Corporations, chaired by Senator Church. t * Under the aegis of the United Nations, a "Group of Eminent Persons", including two Americans (Senator Jacob Javits and Mr. J. Irwin Miller), held hearings in New York and Geneva, and pub lished a report in June 1974 entitled "The Impact of Multinational Corporations on Development and on International Relations." In detail and in spirit, this report was considered by the American business community to be both unrealistic and unsympathetic to legitimate business interests. in August 1974 the UN Economic and Social Council approved the report "in principle" and also approved/ as recommended in the report, the establishment in the UN of an information and research center on multinational corporations. The Committee will monitor further developments in this area. j * , The International Labor Organization is currently engaged in a study of the social impact of multinational corporations. Developments in this area are being monitored by the MCA Indus trial Relations Advisory Committee, largely through the U. S. Chamber of Commerce, which represents the American business [ CMA 07065 3 community at the ILO. Senator Church's Subcommittee has "focussed so far on the roles of the ITT in Chile and of the oil companies in the Middle East. However, its interests are much broader, and we must be prepared for future Subcommittee initiatives more directly af fecting multinational chemical companies. As its contribution to public education, the Committee pre pared and MCA published a pamphlet, "Multinational Chemical Com panies - a Positive Economic Force for the Nation." It has been widely distributed (reaching, for example, all Senators and Congressmen) and well received. 4. The Hart Industrial Reorganization Bill (S. 1167) Senator Hart's Industrial Reorganization bill is intended to facilitate the splitting of companies in a number of named industries into smaller units, provided that certain arbitrary measures indicate the existence of economic concentration in the given industry. The chemical industry is one of those listed as possible targets. The Committee Secretary has monitored the hearings held so far by Senator Hart, which to date have covered the automobile industry (especially General Motors), A.T&T., I.B.M., and certain aspects of the oil industry. MCA has engaged an economic consultant, Professor Steven Lustgarten of Baruch College, City University of New York, to prepare the chemical industry's case. Professor Lustgarten is making good progress with his study, and is expected to complete it by the end of the year. 5. Federal Land Use Policy Legislation The Committee has been monitoring the progress of land use policy legislation in the Congress, without so far recommending a position to MCA. The legislation has died in this Congress, but is expected to be revived next year. CMA 070640 EXHIBIT G STAFF REPORT by William J. Driver October 8, 1974 The House Ways and Means Committee resumed consideration of tax reform legislation when the House returned from its Labor Day recess on September 11. The committee chairman, Rep. Wilbur Mills (D-Ark.), has stated that he hopes to get a tax reform bill passed by the House in time to permit the Senate to act on it this year. However, Senate Finance Committee Chairman Russell B. Long (D-La.) has said that he does not believe there would be enough time in the remainder of the 93rd Congress to get the bill through the Senate. He indicated that his committee would want to take a close look at any Housepassed tax reform bill and would not be pushed into rubberstamping any such measure. On the basis of tentative decisions reached earlier by the Ways and Means Committee, the tax reform measure would reduce tax receipts from individuals by about two billion dollars by increasing standard deductions and increasing low income allowances and by miscellaneous deductions To partially offset this revenue loss, corporate taxes would be increased by a total of about $300 million by ending certain business deductions, limiting foreign income tax exclusion, altering tax laws related to "preference income" and restricting the use of the Domestic International Sales Corporation to exports of manufactured products that are not in^short supply. The committee has completed its review of tentative decisions and is expected to take final action in early October. It is expected that the bill will include provisions of an energy tax bill approved by the committee last spring. *** CMA 070641 STAFF REPORT October 8, 1974 pag-e two The progress of the Trade Reform Act of 1973, H. R. 10710, through the Congress appears snagged once again on the issue in Title IV of granting credits and most-favored-nation trade treatment to the Communist nations. Senator Henry Jackson (D-Wash.), in his amendment to Title IV, ties liberalized trade with the Soviets to their emigration policies, and his supporters are now faced with finding some suitable form of assurances from the Soviets so that they can accept the bill without the amendment. Discussions between the Administration and the Jackson group have centered on a possible exchange of correspondence between Senator Jackson and Secretary of State Henry Kissinger without the correspondence being released to the general public. Some advocates of the Jackson amendment question the adequacy of this procedure. How to meet their objections without forcing the Soviets into public admissions is as yet undecided, and Senator Long, Finance Committee Chairman, does not intend to push the legislation so long as this controversy continues. * ** Congress is expected to continue working on solid waste legislation during the remaining weeks of the 93rd Congress. On August 5, the House passed a simple two-year extension of the Solid Waste Disposal Act of 1965. The measure called for a continuation of existing authorizations for EPA demonstration programs in waste management, disposal and resource recovery. On the Senate side, the Public Works Committee is giving serious consideration to substantive revisions of solid waste- law. Following several days of hearings, in which MCA companies took an active role, the committee staff is now drafting legislation. Chairman Jennings Randolph (D-W.Va.) has shown a keen interest in this subject, but most observers doubt that comprehensive amendments to the law can be enacted this year. Any formal action by the committee must be regarded as significant, however, since it would tend to establish a precedent. ** CMA 070642 STAFF REPORT October 8, 1974 page three I will testify on Project Independence at a hearing being held by the Federal Energy Administration October 7-10 in San Francisco. The subject is energy conservation, and MCA is setting forth what the chemical industry is doing in this regard and its recommendations for energy conservation generally. The San Frar^isco hearing is one of a series being held throughout -i-he country to assist the Federal Energy Administration in drawing a blueprint for Project Independence. *** Recent weeks have produced no significant movement toward enactment of the toxic substances control bill, which remains in conference. The conferees last met on August 19 without scheduling further meetings. Staff members of the committees have met twice, however, and discussed the key points of disagreement: premarket screening and the relationship of a new law to existing environmental laws. In both of these areas, MCA continues to favor the more selective and carefully drawn approach of the House bill. With the post-election Congressional session providing additional working time, the possibility still remains that an agreement can be reached and a toxic substances control act can be enacted this year. * ** On September 2 President Ford signed Public Law 93-406, the "Employee Retirement Income Security Act," a pension reform measure approved by the House and Senate in late August just before- the Labor Day Congressional recess. The law is one of the most complex pieces of legislation to emerge from the Congress and will affect the vast majority of company pension plans. While this law does not require companies to establish pension plans, if a firm does operate one, or is planning to establish one, it will have to follow specific federal standards. Generally, all employees 25 and over with one year of service will be eligible to participate in a company plan. The employer can choose one of three alternative vesting formulas that guarantee an employee at least part of his pension benefits after he has served for a certain period of time, whether or not he continues to work for the CMA 070643 STAFF REPORT October 8, 1974 page four company until retirement. \ To ensure that pension funds will contain enough money to pay out benefits, P.L. 93-406 specifies minimum funding standards and establishes a federally run pension .plan termination insurance corporation to guarantee payment of benefits in the event of a bankruptcy. Under the new law, pension plans generally may not provide annual benefits which exceed the lesser of $75,000 or 100 percent of the employee's average pav in his best three years. The new law requires the administrator of a pension plan to file detailed reports on various aspects of the plan with the Secretary of Labor, the Secretary of the Treasury and the Pension Benefit Guaranty Corporation. reporting requirements are expected to be particularly burdensome to small companies. The *** The loss data bank, which was authorized as a pilot project by the Board in June, is about to begin operation. The McDonnell Douglas Automation Company, retained to conduct the computer analysis, is ready to receive data on the loss incidents experienced by the seven participating MCA member companies. Inquiry forms are now in the hands of the participants for use as incidents occur. Fire, explosion and natural disaster incidents incurring losses of more than $5,000 and occurring on or after September 1, 1974, be analyzed. Reports summarizing the findings will be prepared and disseminated quarterly. will *** On the recommendation of the International Trade Committee, an Intercommittee Task Group on Multinational Company Operations is being formed, with representatives from the following MCA committees: Economic Policy Review, Government Relations, International Trade, Legal Advisory, Public Relations and Tax Policy. The function of the group is to keep close watch over all activities, domestic or foreign, having potential impact on the international corporate subsidiaries of United States companies. The group will develop recommendations CMA 070644 STAFF REPORT October 8, 1974 page five for actions by MCA and see to their execution if approved. The group will function for a period of two years, or longer if conditions warrant. * * * Fluorocarbons -- used primarily as aerosol propellants and refrigerants -- have come under increasing scientific study and have been cited as a possible threat to the atmosDhere. At a recent American Chemical Society national meeting, Dr. F. Sherwood Rowland, of the University of California, Irvine, theorized that if fluorocarbons continue to collect in the atmosphere at present levels, in 50 years the ozone level in the stratosphere would be lessened by 10 percent, posing the possibility of more ultraviolet radiation and a great increase in skin cancer and that other effects, such as biological and climatic, cannot yet be calculated. Dr. John Swinnerton of the Naval Research Laboratory stated that measurements taken by NRL scientists aboard ships and aircraft have shown that fluorocarbons are present around the globe, not only over populated and industrialized countries, but also over remote areas. MCA announced in August that it is planning extensions of three fluorocarbon research projects it administers on behalf of a group of fluorocarbon manufacturers. The project researchers thus far conclude that there are no indications of chemical changes taking place in the common fluorocarbons at lower altitudes or no experimental evidence of harmful environmental effects. ** * MCA has endorsed the "three zone" concept of air quality in its comments to EPA on the August 27 proposals for rules to prevent "significant deterioration of air quality" in presently clean air regions. The "three zone"* concept provides that regions to be preserved as recreational or.primitive areas be given special protection _(Zone I), and that areas required for the exploitation of essential natural resources be permitted greater latitude in allowable industrial emissions than CMA 070645 STAFF REPORT October 8, 1974 page six would be the case for other clean areas to which these factors are not applicable (Zone III). Zone II areas fall in between, where no special considerations are involved. The intention in these areas is neither to restrict growth entirely, nor to permit contamination up to levels set by federal ambient air quality standards. The rights, of the states to decide which areas would be classified as Zones I, II or III are specifically protected. In a September 24th letter to EPA's Office of Air Quality Planning and Standards, I stated, however, that the proposed rules are deficient in that they mandate the administrator initially to classify all areas as Zone II, thereby limiting the states to reclassifying selected areas as Zones I or III. I asked that the states be accorded the right of initial designation of area classifications, and that they be required to do so for only those regions that, in fact, now have air of quality better than that required to meet federal standards. I also noted that proposed administrative procedures, even for Zone III areas, are too cumbersome and unnecessarily restrictive for urban and industrialized regions. Additionally, the letter offered clarifying language changes, including some to ensure that entire regions need not be penalized for contaminant concentration transients that are insignificant in either extent of area involved or duration. *** MCA has reiterated its position to EPA that it is absolutely necessary to retain flexibility in any variance clause to'"be included in effluent guidelines. The statement came in answer to an invitation of EPA for comments after complaints to EPA that proposed regulations defining effluent levels do not sufficiently account for significant variations within each industrial category. In the comments submitted September 26, MCA further emphasized that chemical manufacturing complexes present variables that cannot properly be taken into account in any rational assignment of a finite number for nationwide uniform application. *** CMA 070646 STAFF REPORT October 8, 1974 page seven EPA on September 20 published proposed rules for 11 additional product subcategories in the plastics and synthetics industry. The proposed effluent limitations and guidelines for existing sources and standards of performance and pretreatment standards for new sources are open for public comments received by October 21. Phase 2 regulations for the organic chemicals and inorganic chemicals manufacturing are expected to be published by mid-October. * it * MCA filed comments September 25 on two dockets of the DOT Hazardous Materials Regulations Board. HM-103 proposes a Hazard Information (HI) System based on the Transportation Hazard Information (THI) System that MCA presented to DOT on December 18, 1968. MCA supported adoption of the HI System and recommended modifying a number of proposed amendments to the implementing regulations. HM-112 is a proposed consolidation of the regulations for the transportation of hazardous materials by air, water rail and highway. MCA has advocated consolidation since DOT was established in 1967 and supported adoption of the present proposal. Both dockets HM-103 and HM-112 contain a large number of specific proposals, some of which are controversial and should be further considered. Therefore MCA recommended certain of these specific proposals be withdrawn and made subject to a separate proceeding. These actions will not interfere with implementation of the basic proposals of these dockets. *** MCA is opposing regulations dealing with the transportation of hazardous materials proposed by two Illinois agencies. CMA 070647 k m STAFF REPORT October 8, 1974 page eight The Illinois EPA has proposed regulations governing the transportation and storage of toxic materials in and through Illinois. Dwight E. Long, manager of transportation, Velsicol Chemical Corporation, appeared September 24 at a hearing in Moline on behalf of MCA to suggest that the regulations concerning storage be separated from those dealing with transportation. Regarding transportation, all hazardous substances are regulated at the federal level and MCA supports uniform national regulations wherever possible. MCA also suggested that the proposal to regulate all materials on the HEW toxic substances list unnecessarily broadens the scope of the materials to be regulated. A more limited and definitive definition of toxic substances was suggested. In addition, MCA pointed out that the regulations as proposed contain no appeal procedures nor any assurance that confidentiality will be protected. MCA has continued to oppose provisions of the Illinois Commerce Commission that would impose extremely restrictive and disruptive regulations on all rail transport of hazardous materials in the state. Companies in Illinois rely on the transportation of many materials classified as hazardous for their energy and raw material needs, and industries both in and outside Illinois would be affected by the provisions of the Commission's General Order No. 200. MCA urged the Commission to abandon the proceeding and instead initiate a review of existing federal regulations. Conditions in Illinois do not differ substantially from those found in adjacent states and it would, therefore, be more appropriate to consider this subject in a national forum. *** MCA's Chemical Transportation Emergency Center (CHEMTREC) completed three years September 5. The number of calls coming into CHEMTREC has continued to grow, with a sharp increase coming in the past few months. There were 2,501 calls in June, July and August compared to 1,826 for the previous three months. CMA 070648 STAFF REPORT October 8, 1974 page nine In its three years of operation, CHEMTREC has received a total of 19,671 calls, of which 3,563 were chemical emergencies. Of the emergency calls, 2,844 fell into the transportation category. Rail and highway accidents accounted almost equally for the great majority of the calls, 1,220 and 1,180 respectively. *** At the invitation of the River Parishes, La., Chemical Industry Council, Victor H. Peterson, MCA's vice president and director of public relations and education, and John E. Slavick, publications specialist, attended the September meeting of the council. The purpose of the visit was to discuss the potential assistance MCA can give to local chemical industry councils around the country and to foster the cross-feeding of program ideas among them. *** CMA 070649