Document mq1xRvXXexRdLgvOVOpLLREJQ

FUICTIOK ilA.TERIA.LS STANDARDS v.'STITUTF., IWC. , E. 210 ROUTE 4, PA.RA.'tUS, II.J. 07652 MINUTES OF ANNUAL MEETING of tiie FRICTION MATERIALS STANDARDS INSTITUTE, INC. Wednesday and Thursday, June 26, and 27, 1974, 8:30 A. M. at Hilton Head Inn, Hilton Head Island, South Carolina MEMBERS PRESENT REPRESENTATIVES Abex Corporation Auto Friction Corporation Bendix Corporation Friction Materials Division Brassbestos Manufacturing Corp. Carlisle Corporation Molded Materials Division Gatl;e Corporation General Motors Corporation Delco-Horaine Division Haremont Corporation Grizzly Brake Division ". X. Porter Co. . Thermoid Division daybestoa-IZan'iattan, Inc. Royal Industries Brake Products S. K. Wellman Corp. Wheeling Brake Block Mfg. Co. World Bestos Company, Division of Firestone Tire & Rubber Company R. Cutler Stuart Comins F. E. Messier VI. Simon E. R. Zacharias F. T. Gatke R. E. Kettering J. W. Greenen E. L. Werner D. E. Got D. Ogilvie J. E. Clegg L. Burgess the L. E. May (Proxy for Mr. Kick) OTHERS PRESENT Bendix Corporation Automotive Aftermarket Operations J. H. Kelly W. J. Cooney Heavy Vehicle Systems Group R. Elliott iV. Kaiser Gatke Corporation H. Boyle General Motors Corporation Delco-IIoraine Division J. Hovocka Iiaremont Corporation Grizzly Brake Division D. Carlson VI. Knight A. Laus ii. K. Porter Co. Thermoid Division J. C. Black "aybestos-Manhattan, Inc. R. R. Moalli Royal Industries Brake Products W. K. Sleeth C. Jewell S. K. Wellman Corporation G. A. Carrigan Wheeling Brake Block Mfg. Co. G. Stratton World Bestos Company, Division of the Firestone Tire & Rubber Company Friction Materials Standards Inst. R. J. Alleman 1i_7i W. Drislane Stickles, Kennedy & Van Steenburgh E. K. Kennedy FMSI 04195 -0169 Minutes of Annual Meeting -2- June 26 & 27, 1974 HOT PRESENT Chrysler Corporation - Chemical Division Forcee Manufacturing Corporation Lasco Drake Products Corp., Ltd. Reddaway Manufacturing Co., Inc. Thiokol Chemical Corporation Mr. Gatke, President, called the Meeting to order at 8:30 A.M. MINUTES OF PREVIOUS MEETING The Minutes of the Meeting held June 27 and 28, 1973 had been distributed. Mo reading was requested nor were any corrections made thereto. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the minutes of the Meeting held June 27 and 23, 1373 be accepted as distributed. PRSSIDEHT'S REPORT Hr. F. T. Gatke, President, opened the meeting with a report on the Institute's progress during the past fiscal year. See EXHIBIT 1. Mr. Gatke reviewed the activities of the Institute during the past year including such items as the honoring of A1 Daly, membership changes, committee activity, the timeliness of the Technical Catalogs, publication of the Clutch Facings Catalog and the booklet concerning the Institute, and start-up of the Institute Pension Plan. Upon completion of the President's report, upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the President's Report be accepted as read. TREASURER'S REPORT Mr. A. A. Laus, Treasurer, read the Treasurer's Rveport which included the following Exhibits: EXHIBIT 3.1 - Balance Sheet projected to June 30, 1974. EXHIBIT 3.2 - Income Statement for the 1973-74 fiscal year, EXHIBIT 3.3 - Retirement Fund - H. G. Duschek. EXHIBIT 3.4 - Twelve Year Financial Highlights. Hr. Laus pointed out that the Treasurer's Report was made up during the first week of June 1974 and that final June 39, 1974 figures had to be estimated based on the anticipated June expenses and year-end accruals. Among the highlights. Hr. Laus pointed out that an excess of income over expenses of about $10,009 was projected for 1973-74, with over $3,000 of this due to the Interest Income which is not used in developing the budget. Over FMSI 04196 Minutes of Annual Meeting -3- June 26 & 27, 1974 $110,900 was now invested in Savings Banks and Time Deposits. The Treasurer emphasised the conservative inventory valuation of $1 and the fact that the Institute had reserved $1,000 against Fees Receivable of $2,175 projected at June 30, 1974. It was concluded that the Institute is in healthy financial condition. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the Treasurer's Report he accepted as read. BRAKE PERFORMANCE STUDY COMMITTEE REPORT Hr. u. E. Nelson, Chairman of this Committee prepared and delivered his report at the Director's Meeting. However, he had to leave on June 25, 1974. In his place, Mr. Drislane read Hr. Nelson's report. See EXHIBIT 7. Among the Items covered in Hr. Nelson's report were the Quality Control Sub-Committee, a tour of brake lining facilities by NETSA personnel, the Committee Meetings during the year, a meeting in Washington with NHTSA personnel, and by the Chairman for a Truck Safety Equipment Institute meeting with A-AJWA. Covered at the Committee meetings were items such as Docket 1-4, the Replacement Brake Lining Standard, a possible quality control test for FMVSS 121 materials, a VESC proposed regulation on Wear Warning Devices, and the status of both FI5VSS 105a and FHVSS 121. During Hr. Nelson's report he referred to a work sheet describing changes to FHVSS 121. This had been distributed to the Committee. It was recommended at the Board Meeting that this work sheet be distributed to all Members. It was suggested further that a similar work sheet for FKVSS 105a be distributed to the Members. The Secretary was directed to make this distribution. Hr. Nelson's report mentioned the problems with a proposed regulation from Minnesota. This had been reviewed by the Committee tfho felt the proposal was rather far out. Hr. Nelson intends follow-up on these proposed regulations. Upon motion duly made, seconded and unanimously passed it was RESOLVED: To accept the Report of the Brake Performance Study Committee as read. THE IHfttBEESHIF COiJIITTEF. REPORT Hr. E. L. Cutler reoorted on the activities of the Membership Committee during the 1373-74 fiscal year. See EXHIBIT 2. In summary, this report showed the following changes in membership: July 1, 1973 June 30, 1974 Change Active Members Regional Licensees 22 20 -2 11 12 +1 8 7 -1 FMSI 04197 Minutes of Annual Meeting -4- June 26 & 27, 1974 Mr. Cutler pointed out that Auto Specialties resigned in late June D73. We then lost Scandura and standee. Chrysler Corporation has resigned as of June 30, 1C'74, sc the Active Members will number 19 as of July 1, 1974. Regional Member and Licensee changes were also discussed in the Chairman's report. A question came up at the Board Meeting concerning Dnn Blocks (Manufactured by Small A .arks of Great Britain). It was stated that DOM Blocks were being marketed in the United States using the copyrighted FHSI Numbers. There was no additional information on this usage. Additional information, and in particular, examples of Small & Parks use of the copyrighted FHSI Numbers for marketing in the United States will be sought. It was pointed out that if Members see Non-members using the copyrighted FHSI Lumbers in the field (price lists, catalogs, cartons, etc.) that they should notify the Institute Office. There have been several occasions over the past few years--particularly with foreign manufacturers--that such information has resulted in additional Institute Membership, vrith the copyright user then sharing in the costs of operation of the Institute. The Secretary advised that an apnlication for Regional Membership had been received along with a check for the annual fee from Industries Tecnicas Autonotrices de Puebla, S.A. (of Mexico). Tills application had been received shortly before this June Meeting. Industrias Tecnicas is a manufacturer of brake linings in commercial quantities. The application had been reviewed by the Membership Committee which recommended its acceptance. The Board of Directors voted to accept this application at its Meeting on June 25, 1974. Upon motion duly made, seconded and unanimously passed, it was RESOLVED; That the application for Regional Membership filed by Industrias Tecnicas Automotrices de Puebla, S.A. (Mexico) be accepted. Upon count of Delegates (or Alternates) and Proxies, it was found that 14 Members bad voted for acceptance of this application. Our Constitution required 15 (75% of 29 Members) affirmative for acceptance. Upon advice of Legal Counsel, additional votes of those Abesent Members would be solicited by mail. (MOTE: In early July 1974, additional affirmative mail ballots had been received to admit Industrias Tecnicas into Regional Member ship) . There were no other items concerning Membership brought to the attention of the Meeting. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the Report of the Membership Committee be accepted as read. INVESTMENT ADVISORY COMMITTEE Mr. ", Simon, Chairman of the Investment Advisory Committee, submitted his Report. See EEUIBIT 4. In sumtnarv the Institute had approximately $10,000 in savings accounts and $109,000 in Time Deposits ranging in interest from 6% to 7-1/2%. The most FMSI 04198 r Minutes of Annual 'Meeting -5- June 26 & 27, 1974 1 recently purchased Time Deposits were at the 7-1/2% rate. Maturities are j set so that one may be redet.ied about every 6 or 12 months. I At their Meeting on June 25, 1974, the Hoard of Directors recommended that ; higher yielding Treasury bills and notes be considered when the next Time- i Deposit matures in November 1974. Upon motion duly made, seconded, and unanimously passed, it was RESOLVED: That the Deport of the Investment Advisory Commitee be accepted as read. ' BUDGET COMMITTEE DEPORT Mr. Dave Govt, Chairman of the Budget Commitee, presented the Proposed Budget for 1974-75. See EXHIBIT 5. The 1974-75 expense budget recommendation amounts to $74,050, as compared to $74,130 for fiscal 1973-74. However, as actual expenditures are running about $3,800 under the 1973-74 budget, the proposed budget is almost $4,000 over projected expenses for 1973-74. The main budget item is Salaries at $38,000 for 1S74-75. There are no items in the budget which are significantly different from that in the prior year's budget. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: To accept the Budget Committee Report as read. THE FEE FORMULA COMMITTEE REPORT Hr. A. A. Laus, Chairman, read this Report. See EXHIBIT 6. Essentially, the Fee Formula Committee is recommending that the formula for the 1974-75 fiscal year be the same as that used for the 1973-74 fiscal year. This fee formula gives the following: Active Members - Basic Fee - Category Fee $1,050 650 Regional Members - Associations - Individual Firms 2,200 1,300 Regional Members (U.3. Copyright) - Same as Active Member. Categories determined as categories exported to U.S. using FI IS I copyright. Licensees - 500 Mr. Laus mentioned that this fee formula would be the same for 1974-75 as it had been in the past three year3 for Active Members and as it has been in the past four years for Regional Members and Licensees. In addition, it was stated that this Fee Formula had been held constant while services had been increased (the BRAKE 3L0CK CATALOG, the CLUTCH FACIL1GS listing, naw Committee activites, etc.) Upon motion duly made, seconded and unanimously passed it was FMSI04199 r ?'inutes of Annual Meeting -o- June 26 h 27, 1974 RESOLVED: That the Fee Formula as recommended by the Fee Formula Committee be accepted for the 1974-75 Fiscal Year. Upon motion duly made, seconded and unanimously passed, it was EESOLVEu: That the report of the Fee Formula Committee be accepted as read. LEGISLATIVE ACTIVITY COIMITTEE REPORT No report was rendered by the Legislative Activity Committee. It was pointed out that this Committee's work was quite important in the 1960's when the various States were working on legislation--Massachusetts, New York, Pennsylvania, etc. However, follow-up work in this area has moved to the Brake Performance Study Committee. A motion was made to discontinue the activities of this committee. A point of order was raised that this was not necessary, as the President has the right to establish or disband committees. The President indicated that the. Legislative Activity Committee would be discontinued. PUBLIC RELATIONS CO:IMITTEE REPORT Hr. William Simon, Chairman of the Public Relations Committee, reported on the Committee's activities for the 1973-74 fiscal year. Among items released to the press were announcements on last year's Annual Meeting and the Election of Officers, and awards to Messrs. I'oalli, "Nelson and Greenen. At the Directors Meeting it was suggested that the Committee assemble copies of press releases and photographs in album form to show at the Annual Meetings. The Committee Chairman indicated that this would be done. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: To accept the Report of the Public Relations Committee as read. INSTITUTE DEVELOPMENT COMMITTEE No report was received from the Chairman of this Committee. The Committee had received no assignments during 1973-74. At the 3card Meeting on June 25, 1974, the Institute Development Committee was assigned work to look over the overall organization of the Institute and to make recommendations to the Board of Directors concerning the size, responsibility and scope of the Institute. FMSI 04200 Minutes of Manual V'eeting -7- June 25 5= 27, 13 74 QUALITY 0 ;;:T: QL GUb-CJlIi'ITTXE /.SPOkT The Secretary read the report of the Quality Control Sub-Cor.nittee Chairman, John Easton. Uefer to EhHIBIl 7.1. The Committee had several changes during the year ar.d held two meetings. It appears that the Committee make-up is stabilized. Six areas have been singled out for emphasis : Testing, Bonding, Identification, Test Limits, Verification of Design Level and deporting of Field Problems. At the Directors meeting a comment was made that riveted attachment should be included as well as bonded. The Secretary indicated that this would be relayed to the Committee Chairman, but that he believed the Chairman's intention was to include riveted as well as bonded. Upon motion duly made, seconded and unanimously passed, it was TJESDLVED: That the report of the Quality Control Cub-Committee be accepted as read. Al-TdUAL MT-ETIUG COM'ITTEE PEPPET lit. F. TJ. Barton, Chairman of this Committee, could not be present as he had recently been called to Jury Service. Ur. Burgess read the Chairman's deport. See EXHIBIT 13. This report pointed out the difficulties in obtaining space at Hilton Head, and advocated selection of sites which had been contacted in advance. With this as background, the Committee recommended five sites in Florida, all of which had space blocked for the June 1175 Meeting. After reviewing this report and literature from the Florida locations, the wOard of directors had recommended the Innisbrool. Golf and Country Club. Before site selection, one member wished to consider changing, the date of the Meeting. It was stated that our Meeting cannot conflict with Fleet VJeek, as many members who participate in Institute affairs must attend Fleet Meek. `.'embers were not certain as to which week in 1375 was Fleet 'leek, A suggestion was made to have it before Fleet "eek--in the 1st or 2nd week of June. Comments indicated that this was not popular based on family graduations that normally are in early June. A suggestion for early .'lay did not receive support. Generally, the last week ir. June appeared to again present the least conflict. The lumbers reviewed literature and engaged in discussion relative to site selection. Dne Member indicated we should have ready access to a major airport. The chair stated that it would entertain a motion on selection of the site and date for the June 1375 sleeting. 3r. motion duly made, seconded and unanimously passed, it was RESDLVED- That the next Annual Membership Meeting be held at the Innisbrook Golf and Country Club Tarpon Springs, Florida on June 23-26, 1375. FMSI 04201 r I'iiiutes of Annual Keating -8- June 26 27, 1374 Upon notion duly made, seconded and unanimously passed, it was 23S0LV22: That the report of the Annual asetin?. Committee be accepted as read. HISTORICAL SAXES PROGRAM The Secretary reported on the status of the Historial Sales Program and participation by the 1 lumbers. In summary 13 of the 20 members participated in 137 3-74. See. Exhibit 10. T,ith Chrysler*s resignation as of June 30, 1374 participation will be 15 of IS. Two of those not reportin'* are primarily involved with industrial applications. The Board of Directors had resolved at their meeting to continue tha historical sales program for the 1974-75 year without change. DATA 3^r. f TECHNICAL COKiSCTTEr REPORT Hr. Don Koalli, Chairman of the data Tool; A Technical Committee reported on his Committee's activities during the east year. See EXHIBIT 3. Among items covered in the report were the Institute's publishing the ,Aster List of CLUTCH PACIUGC, "orh on the Industrial 17,000 Series, the Ketric System, Printing Contracts for Catalogs, Assignments of Shoe and Lining .^umbers; Foreign Car Drake Shoes, Disc Brake Shoe Drilling Variations and the Drum Brake Lining Consolidation Program. Comments -were made relative to having Helm, Inc., or another mailer, take shipments of the Catalogs from the printer and then mail, as directed, by the 1 .embers. This might be advantageous to the ' 'embers. bookkeeping problems might arise if handled directly, such as Company A purchasing 1,000 copies, and ordering out specific shipments of 1,200. It would be necessary, if handled by FKSI, to control the shipments out of Helm. Shipment from the printer to a mailer may not be the solution to the "problem". Printers do not like the Institute's Catalogs being ordered by 20-30 different accounts with the collection problems inherent with these different accounts. It is not the shipping problem, host printers accent the idea of shipments to several points. If the service to Hein were to be put in, it was suggested that the Members handle it directly. The Institute will gather r.ore data on this from Helm and from printers. -dcrofiche systems were discussed. It was stated that our Catalogs could be simply put on microfiche from the present hard copy. There has been no demand for this yet. However, putting the Catalog on microfiche can be done if required. It was stated that microfiche use will he increasing as readers are installed. However, Catalogs in book form will be around for a long time. There were 45,0C copies of the BLAKE BLOCK IDEHTIFICATIO.i CATALOG printed after this Catalog was first published in P72. There are no more copies on hand. The Committee has recommended publishing a new brake block catalog in 13 75 to bring in the natty blocks released since 1372. FWSl 04202 r Minutes of Annual Meeting -9- June 25 5 27, 1974 Relative to that section or the report on disc brake shoe number assign ments, the Chairman advisee that the hoard of Directors had returned the problem of disc brake shoe drilling pattern identification to the Committee. Tne Committee had recommended use of the lining-shoe assembly number (for example 779-D-36, or 779A-D-35) to indicate drilling patterns for the shoe. The Directors felt there should be some suffix or number identifica tion to indicate the disc brake shoe drilling (possibly D-36, D-36A, etc.). The Committee will re-study this problem. However, where the shoe drilling variation is strictly by the replacement market--not for 0.5. purposes--such changes will not be considered for number or suffix assignment. A question that arose at the Director's Meeting concerned heavy duty shoes. It had been indicated that block numbers (such as 4515) were being used to identify heavy air brake shoes. It was suggested that Aiinco be invited to send someone to the next meeting of the kata Book and Technical Committee for their irnput on both heavy shoes and on disc brake shoe numbering. Mr. Uoalli pointed out the stability of Catalog prices over these past years as evidenced by a review of the twelve year financial summary EXHIBIT 3.4. Upon motion duly xaade, seconded and unanimously passed, it was ABSOLVED; That the report of the Data Book and Technical Committee be accepted as read. ASBESTOS STUDY CCEtUITTKE REPORT A timely report was not received for the Asbestos Study Committee. (In early July a report was received which is shown as EXHIBIT 14.) The Secretary discussed several items with the Committee Chairman prior to the meeting and it was recommended that these items be brought to the attention of the Board. The EPA recently published a report on waste water effluents as conducted by Sverdrup and Parcel. Host of the Members and Mon-members in the friction materials business were included in this report. The Secretary had requested copies from EPA and intends to distribute copies to the Membership after receipt from the EPA. As regards the SPA Emissions Standard, the EPA is considering a change from its work practices oriented `no visible emissions" standard towards numerical standards. This is currently difficult with the lack of reliable equipment for measuring airborne asbestos concentrations. The Secretary pointed out that in any OSHA revisions of the standard for asbestos in the worlc-place, the pressure is towards stricter standards. Dr, Selikoff, for example, has stated that the only safe concentration is zero fiber per cc. The present 5 fibers per cc and the future 2 fibers per cc are realistic for friction material manufacturers and the industry should plan on these limits being no less strict in the future. Still further, in any re-xrriting of the standards there is apparently a movement towards work practices and possibly away from the numerical standards. FMSI 04203 r Minutes of Annual Meeting -10- June 26 6 27, 1974 Upon motion duly made, seconded and unanimously passed, It was RESOLVED: That the Secretary's comments be accepted as the Asbestos Study Committee report in lieu of a formal report. OTHMF, AUTOMOTIVE ASSOCIATIONS At the Board of Directors Meeting on June 25, 1974, the Institute's relationships with various other automotive organizations were discussed, resolutions were passed by the Board which specifically rejected proposed relationships with these organizations. The Motor & Equipment ' lanuf acturers Association (MBMA) had suggested that economies of operation might exist if the FIISI came under their umbrella and administered their Brake Parts Manufacturers Council. The Ignition Manufacturers Institute had made preliminary inquiries as to whether Mr. Drislane might administer their Insitute. The Asbestos Information Association, U/A had requested that the FMSI be considered an "affiliated association", ''hUe the Directors indicated a high regard for all these associations, formal association was turned down. BOARD OF DIRECTORS REPORT At the Board of Directos Meeting on June 27, 1973, the following resolutions were passed: 1. That the budget of $74,230 for the fiscal year starting July 1, 1973 be accepted. 2. To accept the recommendation of the outgoing Board that the annual rate for the Active Members for the fiscal year starting July 1, 1973 be a basic rate of $1,050 and $650 for each category in which engaged; for the individual Regional Member $1,300; for trade groups holding Regional Membership $2,200 and Licensees $500. 3. That the necessary committee be authorized to review the Constitution and By-Laws as regards the rights of the different membership classes, the fee structure, copyright authorization, and similar problems. 4. That Mr. Allan E. Daly be honored for his contributions to the Institute by the award of an appropriate plaque. 5. To approve all actions of the Committees, of the Staff and of the Officers for the fiscal year ending June 30, 1973. During the year, the Board of Directors accepted the resignation of Standco as an Active Member. The Directors terminated the Membership of Galfer African Co, (Regional Member), Cadillac Steel Products Co. and Grinnell stamping Co. (Licensees). FMSI 04204 ; | f; j ; : Ii i ; i j Minutes of Annual Meeting -11- June 26 A 27, 1974 The Board of Directors recommended for regional Membership, Francisco Stedile, S.A. , and Jurld Herke, Cmbli. They voted Wisconsin. Gasket into Licensee Membership. At the Board Meeting on June 25, 1974, The Board approved the reports of the Officers and Committee Chairman--the same reports read to the Annual Member ship Committee. In addition they recommended that Industrias Tecnicas Automotrices de Puebla, S.A. be admitted to Regional Membership. The Board voted to continue the historical sales program for 1974-75. There were no capital expenditures approved for 1974-75. A contribution of $2,400 was voted to be transferred to the savings account for Hiss Duschelc's retirement fund. Mr. Drislane's salary was increased. The Board took no action as regards affiliation or association with other automotive trade associations. The minutes of the Board of Directors Meetings are available to the Delegates and Alternates on request. At the conclusions of this report. A suggestion was made that the report on the Board of Directors activities be made prior to the Committee Reports to the Members. In some cases Committee Reports had been delivered on which suggestions, changes or other action had been taken by the Board, These actions were not known until after the formal presentation of the individual committee report. This suggestion was considered constructive, and in future years it will be planned to make a report on the Board of Directors activities to the Membership prior to the Committee Deports. THE DOMINATING COi PUTTEE REPORT Hr. Simon, Chairman, reported that there were four 3oard of Directors terms which were expiring this year; J. W. Greenen, Haremont Corporation F. T. Gatke, Gatke Corporation F. E. Ttessier, Bendix Corporation E. R. Zacharias, Carlisle Corporation After due consideration and in accordance with the requirements of the Institute's Constitution, the Chairman presented the following candidates for election to the Board of Directors; J. U. Greenen, Haremont Corporation F. E. Messier, Bendix Corporation E. E. Zacharias, Carlisle Corporation J. E. Clegg, S. K. Wellman Corporation Other nominations were called for but none vrere made. Upon motion duly made, seconded and unanimously passed, it was RESOLVED; That nominations be closed. The Secretary was directed to cast one vote for the election of the four nominees to the Board of Directors. The Secretary advised that the ballots FMSI 04205 T Minutes of Annual Meeting -12- June 26 & 21. 197-4 had been cast. Mr. Simon advised that with the election of these candidates, and the three Directors whose terras have not expired, the Board now consists of the required seven Members. In a response to a question, the Chairman indicated that the Board now consisted of these four Directors, plus the following three whose terms are due to expire on June 30, 1975: D. E. Gov/, '.laybestos-Manhattan, Inc. P.. L. Cutler, Abex Corporation II. Simon, Brassbestos Manufacturing Corporation ***** There being no other business brought to the attention of the Membership, on motion duly made, seconded and unanimously passed, it was RESOLVED: To adjourn. The Meeting was adjourned at 11:00 A Mi. E. W. Drislane Secretary FMSf 04206