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1126 MINUTES of the one hundred seventy-first meeting of the Directors of the Manufacturing Chemists' Association, Inc. , held in the Board Room of the American Iron and Steel Institute located on the 38th floor of the Socony Mobil Building, New York City, on Monday, November 20, 1967 at 4:00 p. m. (EST). There were present: F. Leonard Bryant Allan B. Clow David H. Dawson George H. Decker George S. Dillon Earle S. Ebers Louis K. Eilers Irb H. Fooshee Carl A. Gerstacker Maurice F. Granville Kenneth H. Hannan Alexander Lewis, Jr. John O. Logan W. Kenneth Menke Max A. Minnig Charles S. Munson Joseph A. Neubauer Jack M. Pope W. T. D. Ross Edward R. Rowley Charles H. Rybolt Charles W. Smith Henry A. Thouron Jesse Werner John E. Wood, III James R. Carnes Alternates: Chester M. Brown (for Irb H. Fooshee) J. E. Burrell (for Joseph A. Neubauer) Bland B. Button (for Thomas M. Ware) John W. Clinton (for W. Kenneth Menke) John L. Gillis (for John L. Christian) Elmer F. Hinner (for Henry A. Thouron) Frank A. Hopkins (for Earle S, Ebers) James A.. Hughes (for Raymond F. Evans) Harry D. McNeeley (for Louis K. Eilers) D. C. Phinney (for E. E. Chipman) Frank J. Pizzitola (for John W. Brooks) Derek Richardson (for Charles W. Smith) Robert C. Swain (for Allan B. Clow) Nels E. Sylvander (for Charles H. Rybolt) William Wishnick (for Max A. Minnig) General Counsel: Marx Leva Present by invitation: Frank H. Carman, MCA John T. Connor, Allied Chemical Corporation Thomas L. Cubbage, Phillips Petroleum Company Lee V. Dauler, Neville Chemical Company Harold W. Fisher, Standard Oil Company of New Jersey J. Robert Fisher, Ashland Oil fk Refining Company Ralph K. Gottshall, Atlas Chemical Industries, Inc. Ernest Hart CMA 068775 2- - 1127 John A. Hill, A ir Reduction Company Kenneth H. Klipstein James G. Morton, MCA Thomas S. Nichols, Olin Mathieson Chemical Corp. D. C. Oskin, FMC Corporation Donald D. Pascal, National Starch and Chemical Corp. S. B. Penick, Jr. , S. B. Penick & Company P. C. Reilly, Reilly Tar & Chemical Corporation Robert B. Semple, Wyandotte Chemicals Corporation Allan E. Settle, MCA Hans Stauffer, Stauffer Chemical Company Joseph R. Stevens, J. T. Baker Chemical Company Harry B. Warner, The B. F. Goodrich Company I. OPENING REMARKS. In calling the meeting to order, Chairman Logan welcomed past Directors, alternates and guests and, at his request, those present stood and introduced themselves. H. MINUTES OF OCTOBER 10, 1967 MEETING. The Minutes of the previous meeting of the Board of Directors were duly approved as submitted to the members. III. REPORT OF THE SECRETARY-TREASURER. Financial Report -- June 1-October 31, 1967. The financial report for the five months ending October 31, 1967 was summarized by the SecretaryTreasurer , ON MOTION, duly made and seconded, it was VOTED: That the report be accepted and placed on file. !V. BOARD OF DIRECTORS. (a) 1967 Semi-Annual Meeting. Mr. Logan called on the SecretaryTreasurer for a final report on the 17th Semi-Annual Meeting scheduled for the next day. Overall registration for the meeting approximated 1130 from 154 companies. Those present were handed a .copy of the printed program and attendance list. CMA 068776 3- - 1128 (b) 1^68 Regional Meetings. March 11-14. - - San Francisco and Pebble Beach, California, Mr. T. G. Hughes has been appointed Chairman of the West Coast Arrangements Committee. It is expected that the Executive Committee and Board Meetings will be held in Pebble Beach on Wednesday morning, March 13; Mr, Hughes has been requested to outline the other aspects of the program at the December Board Meeting. April 8-9. -- Washington, D. C. At noon on April 8, a joint luncheon meeting of the Executive and Finance Committees will be held at the Madison to discuss budget and finances for fiscal 1968-69. That evening, the annual reception for Mem bers of Congress and government officials will be held at the Army-Navy Club. At 8:30 a. m. the following day, the Directors will meet at the Madison for break fast and the regular business meeting. 96th Annual Meeting. - - White Sulphur Springs, West Virginia This meeting will again be held at The Greenbrier on Thurs day through Saturday, June 6-8. Executive Committee and Board Meetings will be held on the afternoon and evening of June 5. Other Meetings for 1968-69. The location of Regional Meetings in the Fall of 1968 and Spring of 1969 will, in keeping with past practice, be determined next spring. Houston, Wilmington, Detroit, and Cleveland have been suggested as pos-sible sites and it would be appropriate to consider these cities along with others between now and next spring when this subject will be before the Board for decision. (c) Resignation and Replacement of Board Member. Chairman Dawson of the Nominating Committee reported that Thomas M. Ware had resigned as a Director of the Association on CMA 068777 4- - 1129 October 11, 1967 and, on behalf of the Committee, nominated Nelson C. White, President, International Minerals & Chemical Corporation, to fill the vacancy created by Mr. Ware's resignation until the next Annual Meeting of the Association. A second to the nomination not being required, it was VOTED: That Nelson C. White be elected a Director of the Association until the next Annual Meeting. (d) Appointment of Alternates. The Chairman advised that the following Directors had requested the appointment of alternates: Board Member Alternate and Company Jack M. Pope Edward R. Rowley D. C. Oskin, FMC Corporation Henry J. Whitson, National Lead Company (e) Water Resources Committee -- Amended Rules of Organization and Procedure. General Decker presented the proposed revision of the Rules of Organization and Procedure of the Water Resources Committee, attached hereto as Exhibit A, to provide for a limitation on the number and rotation of members, ON MOTION, duly made and seconded, it was VOTED: That the Rules of Organization and Procedure of the Water Resources Committee be revised as proposed, (f) Mechanical Technical Committee Recommendation for Support of USA Standards Institute. Chairman Gerstacker of the Executive Committee reported that, at its meeting earlier in the day, that Committee had approved the recommendation of the Mechanical Technical Committee that the attention of the Board of Directors be invited to the fact that, because of inadequate support, voluntary standardization activity in this country is in jeopardy of being replaced by government standards which would not be in the best interest of the chemical industry. The MTC recommends that MCA member com panies vigorously support the voluntary standards system by acquainting them selves with the objectives and program of the USA Standards Institute, by requesting membership therein and by encouraging qualified personnel to participate in its work (this would not involve standardization of chemical products). CMA 068778 5- - 1130 Following discussion, ON MOTION, duly made and seconded, it was VOTED: That the recommendation of the Mechanical Technical Committee be approved. V. COMMITTEE APPOINTMENTS, The following committee appointments were approved: (a) Air duality Committee. J. Harold Yeager, Mallinckrodt Chemical Works " (b) Education Activities Committee. Gerald E. Ottoson, Allied Chemical Corporation, replacing Thornley B. Wood (c) Labels and Precautionary Information Committee. David E. Brown, Mallinckrodt Chemical Works, replacing Chester L. French (d) Public Relations Committee. Aubrey O. Cookman, Universal Oil Products Company Jack F. Gow, General Aniline & Film Corporation, replacing J. Robert Bonnar (e) Safety and Fire Protection Committee. W. S. Wood, Sun Oil Company (f) Transportation Equipment Committee. T. H. Arnott, E. I. du Pont de Nemours & Company, replacing B. H. LaMotte Paul Mount, International Minerals & Chemical Corporation Robert E. Wilson, Stauffer Chemical Company, replacing Robert J. Carey VI. STAFF REPORT. General Decker presented a report of developments in the Associa tion's program of projects and activities since the last meeting, copy appended as Exhibit B. In connection with Ambassador Roth's letter of November 14 concern ing the MCA position on elimination of ASP, as mentioned in the Staff Report, CMA 068779 6- - 1131 General Decker reported that, at its meeting earlier in the day, the Executive Committee had recommended that he make a brief reply to Ambassador Roth in order to negate any impression of acquiescence in the Ambassador's position pending legislative hearings on the matter. P General Decker also reported that the survey of water and air pollution control and solid waste disposal facilities was still lagging behind the results obtained in a similar survey in 1962. Mr. Granville, Board liaison member with the Environmental Health Advisory Committee, reported upon the deep concern expressed by that committee at its meeting on November 16 that the incomplete coverage obtained in the current survey will not only be embar rassing but highly damaging to the chemical industry since it is likely to be taken, rightly or wrongly, as reflection of shame about shoddy performance. Chairman Logan announced that he had asked General Decker to give him a list of member companies which have not responded to the survey in order that further communications to them may be considered. There being no further business to come before the Committee, it was unanimously resolved to adjourn. Tames R. Carnes Secretary-Treasurer APPROVED: John O. Logan Chairman CMA 068780 I Exhibit A PROPOSAL FOR REVISION ubject: Water Resources Committee's Rules of Organization and Procedure urpose: To provide for limitation and rotation of membership etails: (Parenthetical text to be deleted; underscored text to be added) III MEMBERSHIP All members of The Committee shall be full-time personnel of indus;rial organizations which are members of the Manufacturing Chemists Association, except for the Secretary., who shall be a full-time staff employee of the Association designated to serve as the Board's adminis trative representative on The Committee. Members shall be appointed by ,the Board from member companies interested in such representation, and should be persons whose usual duties are closely allied with water re source and industrial waste'problems, to assure a substantial interest in The Committee's work. The nomination of each proposed committee mem ber to the Board for appointment shall include his name, company affili ation, and his major area of activity within his company. (Such nomi nations, and recommendations as to replacements, additions, or change in numbers on The Committee, shall be made to the Board by current members of The Committee.) The Committee roster shall not, exceed 35 members. If there are additional qualified applicants, up to six members shall be replaced an nually. The Chairman. Vice Chairman, and standing subcommittee chairmen shall be exempt from such membership rotation so long as they hold office, and shall be constituted as a membership review board. In this capacity, they shall have authority to approve or disapprove the Secretary's rec,, ommendations as to which members should be replaced. Meeting attendance .snd current participation in The Committee's program shall be prime factors in the development of such recommendations. Members rotated off The Committee shall become eligible for reappointment after a two-year . interval. -Comments: , This revision is recommended by formal action of the Water Resources Committee taken at its meeting on October 3-4, 1967. Present membership is 28, so the objective is to be prepared in relation to future expansion. The proposed revision has been reviewed and cleared by staff counsel and general counsel. November 2, 1967 CMA 068781 Exhibit B STAFF REPORT November 20, 1967 Presented by General G. H. Decker My report on Association activities will highlight a few of the events of importance that have occurred since the October meeting. Some of them are covered in more detail in the General Bulletin which you have probably seen. On the Federal legislative front we think that prospects for a tax surcharge have all but vanished for this year, but talk still persists in the Senate. Senate Majority Leader Mike Mansfield recently declared that a tax increase is necessary and indicated legislation was still possible before ad journment. Minoirty Leader Everett Dirksen a few days ago proposed a $4 billion tax increase contingent upon a $4 billion reduction in Federal expendi tures. As you know, tax legislation must originate in the House. Chairman Mills of the Ways and Means Committee apparently has no intention of bringing a tax bill out of committee this year. There is a good probability that one will be enacted early next year. It is noteworthy that the U. S. Chamber of Com merce, following a national survey, has now taken a dollar-for-dollar position on the proposed tax surcharge --a dollar reduction in expenditures for a dollar increase in taxes. MCA first proposed this formula when Leonard Bryant, Chairman of the Board of Hooker Corporation, testified on behalf of the Asso ciation before the House Ways and Means Committee last August. The Air Quality Act of 1967, S. 780, has been passed by the Congress and sent to the White House for signature. MCA had a key part influencing this legislation while under consideration by the Congress. Special problems were, encountered in the House, including a proposed amendment to set national emission standards on manufacturing plants and other fixed facilities. One feature of the bill with which we were concerned was a provision that would vest in the Secretary of Health, Education, and Welfare what would amount to licensing power for fuel additives. This and other points at issue were satis factorily resolved in line with the MCA position. m *v I believe most of you are aware of the letter written to the Special Representative for Trade Negotiations in refutation of an allegation he made in CMA 068782 2 a public appearance in Detroit. He declared "The recent stand against ASP' s repeal by the Manufacturing Chemists' Association was taken hastily and without due consideration of the interests of every stockholder who owns a share in the American chemical industry". This letter was brought to the attention of key members of the House and Senate and produced an interesting comment from Senator Dirksen: "It seems to me that our Special Represen. s tative for Trade Negotiations has not only acted hastily, but has been making some rather reckless accusations in defense of his actions at Geneva and also in condemning certain proposals now pending before the Senate Finance Committee". Last Thursday I received a reply to my letter from Ambassador Roth, declaring he still stands by his remark. The less than two week period which he claims MCA was able to spend in studying the ASP agreement struck Mr. Roth "as wholly inadequate time to come to any deliberate and thoughtful conclusion about its impact". For this and other reasons, he said his im pression had been reinforced "that the chemical industry has, as in the past, continued to approach the issue of ASP in a dogmatic way". 1 sfc # # ^ # :}: if. * & if: i|; j{c & %. ij: MCA was joined by the Synthetic Organic Chemical Manufacturers Association in a message to the Senate Finance Committee urging that any legislation enacted in connection with import quotas should be broad enough to deal with injury or threat of injury from chemical imports as well as other specific commodities for which import quotas were being considered. It now appears that no action will be taken during this session of Congress on the vast majority of Quota bills that have been introduced. MCA has filed a statement on the exposure draft of the Accounting Principles Board opposing the proposed requirement that a company amortize the investment credit over the useful life of the acquired property on which the tax benefit was claimed. The proposal would cause many American companie* to change their method of accounting forthe investment tax credit. A recent study indicated that 80% of American industry treats the credit as a reduction of tax expense under the flow-through method of accounting. MCA advocated continuation of the choice of methods permitted by the Accounting Principle8 Board Option No. 4 that is currently in use. This permits a company to deduct the tax benefit in a single year or amortize it over the useful life of the property. * .n CMA 068783 :int ^ ;ning also oth, hich ir. ast, v lgh other now re -g ortize ich the -ipanies ecent uction cated iples o : of 3 MCA views on the Kennedy Round GATT Negotiations, the supple mental package relating to the elimination of ASP, and other aspects of foreign trade policy were submitted to the Senate Finance Committee on November 1. This statement will be included in a compendium of papers serving as a base for legislative oversight review by the Finance Committee. Executive Contacts have been furnished copies of MCA's statement. % # # # # & & si: :Jj # * s[; sj; s;: )!?>}: s}: Despite two appeals (July 5 and September 19), it now appears that fewer member companies will contribute data to MCA's survey on control of air and water pollution and solid waste disposal than five years ago. In re sponse to a questionnaire mailed last January 13, 91 companies have reported on 850 plants. This compares with returns from 138 companies on 898 plants in 1962. To allow time for a few companies to complete their forms, we propose to close out the survey December 31. Considerable time will be needed for tabulation and analysis, and further extension will greatly lessen the data's value. *##* * ***** * Association comments on the proposed revision of FDA Food Additives Procedural Regulations were filed November 3. Rapid or automatic acceptance was urged for most food additives in packaging materials in small quantities. Deletion of a section relating to confidentiality of certain data and analytical methods was recommended. Sixty-five attended the November 9 Workshop on Water Pollution Control, held in Atlanta, The next one, in Cleveland in late January, will be devoted principally to program developments on Lake Erie. The Air Quality Workshop held in San Francisco, October 26 during Clearner Air Week, was marked by high quality papers and lively participation of those attending. Excellent news media coverage of both the Atlanta and San Fran cisco workshops was stimulated by our Public Relations representatives. As in all past instances, capacity registration has already been reached for the next Technical Seminar on Water Pollution Control at Vanderbilt University, Nashville, December 4-8. Reservations are now being taken for the seminar at the University of California (Berkeley) Jan uary 22-26, and for three others in the current series. CMA 068784 4 An interim report received from the Ad Hoc Committee on r Economic Assistance to Industry for Pollution Control will be considered at the December meeting of the Executive Committee. The report recommends postponing resolution of an Association position on economic incentives until after Federal studies on this subject have been released in January. %* 5[( ift # # jji Sis 5|i X' ^ 5,. iji 5S # Iji The Ad Hoc Task Group on the Photoreactivity of Trichloroethylene met in Pasadena, California October 23, and also visited the SRI project. Although delays in equipment delivery have slowed up the program, it now appears that progress on an acceptable schedule will be made. The Organic Solvents Sales Inventory conducted by MCA on request of New York City air pollution control officials, is being closed. The returns, received from over 80 members, including almost all of the larger organiza tions with substantial solvent sales, will be submitted to New York City officials shortly. *% #* MCA and many of its members participated in Cleaner Air Week the last week in October. Specially prepared Association packets and TV kits on air pollution control were provided to community relations personnel throughout the industry and our environmental health publication, PILOT, called attention to the event. Distribution of that monthly has grown steadily, the November issue going to more than 3, 000 individuals in both the U. S. and Canada. The increasing number of technical queries to PILOT regarding solution of industry pollution problems indicates the two-way function this publication can perform. .u -j, -i- v -,s The first two books in the "Chemistry in Action Series", a major project undertaken by the Education Activities Committee in cooperation with Doubleday & Company, are now off the press. Flyers describing the under taking and the initial volumes, one on chemical engineering and the other on silicon compounds, have been sent to key industry personneL Paperback copies of the volumes themselves will be put in Executive Contacts' hands. It is our hope that every company will order copies, at special discount prices, for distribution to students, teachers, industry employees and science-minded citizens in their plant areas. Successful sales will help to assure continuation of this activity, so important to our industry and education. CMA 068785 it -ids til iylent quest urns, iza- 5 Copies of the 1967-68 edition of f'An Industry Helps Our Schools, " the booklet which presents a bird's-eye picture of our total aid-to-education effort, have been sent with a request form to the directors of science in American schools and to the industry's community relations personnel. Among the listings are a new pamphlet "Chemistry Projects and Science Fairs, " a guide to students entering chemically-oriented exhibits in these events, and a timely manual entitled "Scientific Experiments in Environ mental Pollution. " At the close of this month we will mail the announcements and nomina tion forms for the 1968 College Chemistry Teacher Award Program to all US and Canadian institutions offering baccalaureate degrees in chemistry or chemical engineering. Our other educational award program, administered by the CICs for teachers in secondary schools, will be conducted next year by a record number of Councils. # # * * * 5,'= * * S|i #**%$** eek _nel dily, . and .ajor with ,er- on V S. CMA 068786