Document k6VVJmavjZkr8Q97JdzOBV5dE

(578) MINUTES of the eighty-fifth meeting of the Directors of the Manufacturing Chemists' Association, Inc., held at the Union Club, New York City, on January 13, 1959, at 11:00 a.m. (EST). There were present: Messrs. Alternates: Henry Bower John T. Connor R. L. Cunningham Lee V. Dauler Dap-id H. Dawson William P. Drake C. B. Edwards Raymond F. Evans J. Robert Fisher Joseph Fistere Fred C. Foy D. S. Frederick John L. Gillis John E. Hull Harry B. McClure Glen B. Miller Thomas S. Nichols S. B. Penick, Jr. Mark E. Putnam Hans Stauffer George R. Vila M. F. Crass, Jr. William P. Gage (for Marlin G. Geiger) John A. Hill (for Charles S. Munson) R. W. Hooker (for R. L. Murray) Donald Williams (for Mark E. Putnam) General Counsel: Marx Leva - Fowler, Leva, Hawes & Symington Present by Invitation: J. H. Foulger (Luncheon Only) - E. I, du Pont de Nemours & Go., Inc, Harry Krehbiel - Catalin Corporation of America O. V, Tracy - Esso Standard Oil Company James F. King - MCA In calling the meeting to order at 11:00 a,m,, Chairman McClure welcomed the alternates and guests who were present and invited them to enter actively into the discussion. Mr. McClure briefly discussed the November 25, 1958, Semi-Annual Meeting in general terms and then referred to the MCA profile article which appeared in the December 10, 1958, issue of Chemical Week Magazine. Anew staff member, Mr. James F. King, Assistant to the President for Government Relations, was introduced. I. MINUTES OF NOVEMBER 24, 1958, MEETING. The Minutes of this meeting were duly approved as submitted to the members CMA 067595 (579) II. REPORT OF THE EXECUTIVE COMMITTEE. Mr. Connor stated that several items had been discussed at the Executive Committee meeting held earlier that day and that they would be taken up in their respective places on the Directors' agenda. m. REPORT OF THE TREASURER. (a) Financial Report, June - December 1958. The financial report for the seven months ending December 31, 1958, was reviewed in detail. ON MOTION duly made and seconded, it was VOTED: That the report be accepted and placed on file. (b) Definition of "Chemical Sales.11 The Treasurer transmitted a recom mendation from the Finance Committee that the phrase "lime and magnesia" appearing in the exempt Products of Mining Operations category of the Chemical Sales Definition be changed to "limestone." ON MOTION duly made and seconded, it was VOTED: That the recommended change be approved. IV. BOARD OF DIRECTORS. (a) Membership Committee. In Mr. Thomas' absence, the Secretary reported that applications had been received from Mississippi Lime Company, Alton, Illinois and National Aluminate Corporation, Chicago, Illinois and that, in the opinion of the Membership Committee, the applicants are qualified for membership under the Association's By-Laws, ON MOTION duly made and seconded, it was VOTED: That both applications be approved, subject to the 30-day notification to members provided under Article IJI, Section 4, of the By-Laws. *4 (b) Finance Committee. Mr. Dauler reported that a meeting of the Association's Finance Committee had been held the previous evening and that matters discussed had included policy on surpluses, investment program, and 1959-60 budget and financing (preliminary). He stated that the questionnaire, requesting 1958 chemical sales from member firms for fee purposes would be dispatched earlier this year, approximately February 15, and urged those present to speed returns from their respective companies. JCMA 06759$ (580) A budget for fiscal 1959-60 will be prepared and presented to the Directors for consideration at the April 14, 1959, meeting. ON MOTION duly made and seconded, it was I VOTED: That the report be accepted and placed on file. (c) Policy Study Committee. Dr. Frederick reported that a meeting of his Committee had been held during December, at which time the matter of functional divisions had been discussed. A second meeting, which had been called for January 12, was cancelled because of the inability of all members to attend. A comprehensive outline of Committee organization, structure, and activity has been prepared for the Committee by the staff, and this will be considered at a meeting to be held on February 9. A full report will be made to the Directors the next day. (d) Resignation of H. Greville Smith. The Chairman reported receipt of Mr. H. Greville Smith's resignation from the Board of Directors, effective December 31, 1958. ON MOTION duly made and seconded, it was VOTED: That the resignation be accepted with regret. (e) Report of the Nominating Committee. On behalf of his Committee, Mr. Edwards presented the nomination of Mr. W, T. D, Ross, Vice President, Canadian Industries Limited, to fill the unexpired term of Mr. Smith, ending May 31, 1959. ON MOTION duly made and seconded, it was unanimously VOTED: That the nomination be approved and that Mr. Ross be 'declared elected to the Board of Directors for the term indicated. Mr. Ross was then appointed to the Membership Committee to fill Mr. Smith's unexpired term for the balance of this fiscal year. (f) 1959 Spring Regional Directors Meeting. Those present discussed the timing and location of the 1959 Spring Regional Directors Meeting. It was agreed that the meeting should be held at Houston, Texas, and that the Secretary should contact officials of the Texas Chemical Council in order to discuss joint aspects of the meeting, as well as preferred date. The meeting will be held during either March or April, depending upon the factors involved. (g) Trade Policy Advisory Committee. Mr. Tracy reported that two meetings of his Committee had been held since the November 1958 Directors meeting and that a considerable amount of pertinent information had been accumulated by the staff and filed with the Committee. In accordance with the directive outlined in the CMA 067597 I (581) Minutes of the S ptember 9. 1958, Directors meeting, Mr. Tracy summarized Com mittee conclusions to date as follows: (1) The Committee unanimously endorses MCA policy as set forth in the Association's letter and memorandum of August 14, 1958, to Secretary Weeks; but believes that because of the difficulty in differentiating between chemical know-how made available in other countries recognizing property rights, and know-how not made freely available, that both categories be treated similarly in our recommendation to th Government to disapprove the supplying of chemical know-how and plant facilities to Russia. (2) As of the present, there has been little or no progress in negotiations covering sale of technical information or processes in the fields originally outlined, and under present conditions it appears unlikely that any domestic firm will reach satisfactory terms. Mr. Tracy reported two instances, however, wherein British firms have reached such agreement. (3) With reference to extent of trade in chemical commodities, this has been relatively small in recent years as differentiated from capital goods, such as machine tools. It is believed that sale of such products should be up to individual companies on a free enterprise basis and such sales permitted provided export licenses can be obtained. (4) The Committee recommends close industry cooperation with Government officials involved in negotiations affecting trade relations, especially in areas covered by the Departments of State and Commerce. Foreign government con tacts on the part of industry itself are not recommended. (5) Private investment in under-developed countries is recommended, provided adequate guarantees with respect to know-how and integrity of ownership are provided. Here it is suggested that the Department of State negotiate treaties to con summate this protection with new legislation as may be required. (6) The Committee urges that the U. S. Government discuss and recommend to other Free World Countries that they adopt a policy similar to that espoused by MCA for U. S. Governmental policy with respect to sale of chemical plants and know-how to Russia and its satellite countries. Following Mr. Tracy's presentation, the matter was discussed by those present. It was suggested and agreed to that in developing its case, the Association should include a reasonable number of case histories of'product development setting forth the number of man-years of technical effort expended in each case. Reference was then made to a questionnaire received quite recently by a number of member firms from Chemical & Engineering News Magazine on the subject of trade with the Soviet Union, The questionnaire form was read and briefly discussed. Those present requested General Hull to contact the editor of G&EN, Dr. Walter J. Murphy, in order to determine purpose of the survey and to bring him up to date on the Association's position. General Hull then briefly discussed his recent conversations with Secretary of Commerce Lewis L. Strauss and U. S. Ambassador to Russia Llewellyn E. Thompson, Jr., with reference to this over-all matter. CMa 067598 (582) ON MOTION duly made and seconded, it was unanimously VOTED: That the Board of Directors accepts and approves the Committee Report; that Mr. Tracy be requested to summarize it in writing and transmit it to the MCA President; that letters then be sent by General Hull to the Secretaries of the State Department and Commerce Department, transmitting copies of the Report; that Association representatives discuss the subject with other trade associations and labor organizations; that other appropriate steps for widespread dissemination of our point of view be explored from a public relations standpoint; and that copies of all communications be transmitted to Executive Contacts of member firms in order to keep them advised. (h) General Hull's Forthcoming Trip. General Hull stated that he would leave the country late this month in connection with a trip to the Far East, arranged by the Administration in conjunction with its Mutual Assistance Program, He will be away from the office approximately five weeks. V. COMMITTEE APPOINTMENTS. The following committee appointments were approved: (a) Chemical Packaging Committee. J. C. Roberts, The Firestone Tire & Rubber Company, replacing A. D. Miller, (b) Food Additives Committee. Raymond D. McMurray, Hoffmann-La Roche Inc. (c) Government Liaison Technical Committee on Metals. Graham B. Brown, U. S. Industrial Chemicals Co. (d) Hydrogen Peroxide Technical Committee. Ralph B. Elliott, E. I. du Pont de Nemours & Co., Inc., replacing A. T. Hawkinson, (e) Nuclear Committee. T, C. Runion, W. R. Grace & Co. VI. STAFF REPORT AND MISCELLANEOUS ITEMS. (a) Public Relations and Education. Those present were handed copies of a public relations activity report covering the month of December. Reference was made to the Association's annual year-end statement on the chemical indstry and to the speech which General Hull will deliver before the annual meeting of the National School Boards Association in San Francisco on January 26. CMA 067599 (583) A report was made on the plan for community education on safety, jointly drafted by the General Safety and Public Relations Advisory Committees,which will be carried out on a community level by the Chemical Industry Activity Committ es. Also handed Directors were copies of a progress report on status of th aid-to-education program as of January ?. Copies of the company aid-to-education report were mailed to all Executive Contacts on December 1, 1958. A progress report was made on the film production program. (b) Legislation. A brief report was made on the legislative outlook. Senator Kefauver has reintroduced S. 11 to eliminate the good faith defense against charges of price discrimination -- in essentially its original form. Introduced by Chairman Boggs, of the House Ways and Means Com mittee, was H. R. 5, to amend the Internal Revenue Code of 1954 to encourage private investment abroad and thereby promote American industry and reduce Government expenditures for foreign economic assistance. (c) Safety. The Secretary reported that members had been circularized concerning plants operating calendar 1958 without a lost-time injury in order that th nec ssary Certificates of Achievement could be prepared and presented. On injury frequency, the rate for ten months of 1958 is still under three injuries per million man hours of exposure, and it is hoped that the current year will set a record in this respect. A chemical safety data sheet on Phosphorus Pentasulfide has been issued and plans laid to issue brief "Safety Guides" for subjects not covered by chemical safety data sheets. Consideration is now being given to the production of a film on safety in the chemical laboratory in conjunction with the Public Relations Department. (d) Workshop Program. Reports were made on recent and pending work shops, conferences, and symposia sponsored by the Association relating to insurance, pollution abatement, and transportation. (e) Plastics Research, It was reported that an MCA sponsored fundamental research project has been instituted at Case Institute of Technology. This project will utilize a portion of the funds previously expended under the original plastics research project at Massachusetts Institute of Technology, which will continue on a limited basis. (f) Reactive Metals. The ad hoc Government Liaison Technical Committee on Metals has recently conferred with Government officials on methods of storing strategic ores and minerals to prevent deterioration. The Committee will meet shortly with the Under Secretary of Agriculture to discuss the barter program whereby agricultural surpluses are exchanged for strategic minerals. (g) Nuclear Energy. The Committ e meets in Washington this week with repres ntativ s of the Atomic Energy Commission to discuss matters raised during the Nuclear Panel at the 8th Semi-Annual Meeting. CMA 067600 (h) Precautionary Labeling. A model hazardous substances labeling bill has been agreed to by four associations -- MCA, National Paint! Varnish & Lacquer Association, American Petroleum Institute, and Chemical Specialties Manufacturers Association. Copies of this bill have been distributed widely to states who have expressed an interest in the subject, to interested members of Congress, and to the technical pr ss. The bill relates only to household products and to those used in institutions, such as hotels, colleges, universities, and hospitals. It does not cover industrial products. It is believed that this bill can be accepted as a satisfactory compromise as related to the more stringent American Medical Association proposal. (i) Sulfur Code. The staff, with the assistance of an industry subcommittee, has rewritten and brought up to date revision of the National Fire Protection Associa tion's Code concerning sulfur dust explosions and fire hazards. This will be presented to the NFPA annual meeting on January 21 by the Secretary. (j) Transportation. The Association has made arrangements to appear, with counsel, before the Interstate Commerce Commission to support the stand of rail roads and member shippers with respect to "piggyback" transportation and rates. Following conclusion of the luncheon. Dr. John H, Foulger discussed the proposed expansion of activities of the Medical Advisory Committee, of which he is the Chairman. He presented the following suggested Terms of Reference: 1. Advise the Board of Directors from time to time regarding any health hazards (real or potential) to workers of the chemical industry and to consumers of the industry's products. 2. Advise and collaborate with other committees or the staff of MCA on any matters pertaining to the health of employees and consumers. 3. Exchange professional information of a medical nature concerning health problems peculiar to the chemical industry. 4. Assemble data referable to health problems unique to the industry. 5. Assist or guide member companies in the establishment or revision of existing health services. ON MOTION duly made and seconded, it was VOTED: That thtf Terms of Reference and enlargment of activities of the Medical Advisory Committee, as set forth, be approved, subject to clearance by Association counsel. CMA 067601 (585) There being no further business to come before the meeting, it was unanimouslyresolved to adjourn. M. F. Crass, Jr. Secret ary APPROVED: Harry B, McClure Chairman CMA 067602