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REPORT OF THE TECHNICAL COMMITTEE TO THE MEMBERSHIP SEPTEMBER 8, 1972 The eighty-ninth meeting of the Technical Committee was held on August 2, 3 and k, 1972 in Niagara Falls, New York. The meeting was attended by eleven representatives from six companies and five Association staff members. Mr. Irwin Benjamin, Chief, Building Fire and Safety Section of the National Bureau of Standards, was a guest at luncheon on August 2. He described, in generalities, present and projected fire research at MBS. The consensus of the committee was that the talk was quite disturbing in that most of the programs appear to be geared to fire and smoke detection and extinguishment with very little emphasis on containment. These programs will seriously affect the gypsum industry if containment gives way to detection and extinguishment in building codes. In essence, a structure could be built of match sticks and straw if sufficient detection means and sprinklers or other extinguishing devices were provided. The only program involving noncombustibility mentioned by Mr. Benjamin was the one on which our industry research associate is engaged (definition of noncombustibi1ity and methods to de termine noncombustibility of building materials). Hopefully, some of the programs will be influenced by our research associate to benefit, rather than downgrade, the use of gypsum. SGP 0029277 - 9- A progress report was given by Mr. J. L. Houser, gypsum industry research associate at the national Bureau of Standards, on his first two months in this position. Most of his time has been spent familiarizing himself with MBS procedures and personnel and developing rapport with the people involved in the fire safety programs. This is extremely important if he is to influence these programs. The committee pointed out that a close relation ship between Mr. Houser and his advisory task group is essential on technical matters. His first project just underway is to evaluate the heat release by colorimeter of a large sampling of a variety of building materials. GYPSUM LATH AND PLASTER It was reported to the committee that ASTM Committee C-ll on Gypsum is being reorganized with a new scope, by-laws and sub committee structure to enable it to handle application specifications. This reorganization is the result of our decision to submit appli cation standards to the American Society for Testing and Materials (ASTM) rather than continue work with the American national Standards Institute (ANSI). SGP 0029278 -3- Revision of the Manual of Gypsum Lathing and Plastering has been completed and submitted to the staff for final correction and review. This manual cannot be published until new photographs are obtained to be sure no violations of OSHA safety requirements are shown. It has been determined that the National Fire Protection Association (NFPA) will not revise the National Electrical Code to allow less than 1/2" of plaster over electric heating cable without a recognized national standard for such application. Therefore, an ASTM "use" specification is being developed. In the meantime, individual manufacturers will need to obtain separate approvals as exceptions to the code. Draft of a new veneer plaster manual was reviewed and returned to task group for revision. An attempt is being made by some members of the plastering industry to organize a new ASTM committee to promulgate all specifi cations pertaining to interior and exterior lathing and plastering. This would include both product and system specifications. An organizational meeting was held at ASTM headquarters on July 17. The formation of this committee was sanctioned by the ASTM Board of Directors. The Technical Committee is strongly opposed to this new committee. It is our belief that ASTM Committee C-ll is completely SGP 0029279 k- - capable of developing any specifications needed for gypsum materials and systems. A letter has been written to ASTM head quarters in opposition to the inclusion of gypsum in its scope. Several members of Committee C-ll who are influential with ASTM have been contacted to add their support to our objections. Hopefully, formation of this committee can be modified to eliminate gypsum from its scope and to prevent duplication of work rightfully belonging in ASTM C-ll. GYPSUM WALLBOARD, BACKING BOARD AND SHEATHING The proposed ASTM standard for the installation of steel framing members to receive screw attached gypsum board (based on ANSI A97.2) passed C-ll letter ballot. Negative votes were resolved, revisions were made and the specification was submitted to main committee letter ballot. It is anticipated that the standard will be approved for publication immediately after the January meeting of C-ll. This is the first application specification that has been transferred from ANSI to ASTM by the gypsum industry. Since there have been no major problems en countered with this standard, the remaining ANSI standards will be submitted to ASTM as soon as possible. SGP 0029280 - 5- The application specification for fire barrier gypsum board has passed C-ll subcommittee letter ballot and has been submitted to main committee letter ballot. The Technical Committee established the limits for performance characteristics of gypsum wal1 board. ASTM Standard 036 has been revised accordingly and has been submitted to sub committee letter ballot. This revision will eliminate board weights and replace them with meaningful performance criteria such as (1) nail pull resistance; (2) core, end and edge hardness; and (3) deflection under humid conditions. When this revision is approved, other pertinent board standards (backing board, veneer base, sheathing, etc.) will be similarly revised. The present test method specified in ASTM for differentiation between regular and type X gypsum board is inadequate with considerable variation in results between labora tories. This is an extremely important method in that the only other way to distinguish between fire rated and non-fire rated board is in a full scale fire test. Modifications of the present method as well as a new method have been proposed. Round robin testing is being conducted and it is anticipated that revisions to the ASTM procedure will be finalized at the next Technical Committee meeting. SGP 0029281 -6- Work is progressing in specifications for (1) rehabilitation; (2) gypsum board for exterior use as a substrate for texture type finishes; (3) predecorated gypsum board; and (4) shaft walls. Drafts of these proposed specifi cations will be submitted to the Technical Committee by the respective task groups prior to the next meeting. At the request of the Board of Directors, a task group, consisting of members of the Technical and Building Code Committees, was assigned to review requirements and suggest revisions to National Fire Protection Association 90A to allow the use of gypsum board in air conditioning and ventilating ducts. Revisions have been proposed to NFPA but no action has been taken as of this writing. Even though NFPA may approve the requested revisions to the code, the consensus of the Technical Committee is that a test (ASTM C-411) for surface temperature resistance will be required for approval of gypsum board products to comply with the code revisions. Facilities for running this test have been located and it can be conducted for an estimated cost of $750 which needs to be approved by the Board of Directors. Small scale tests run in one of the company laboratories indicate that gypsum board would pass this test. SGP 0029282 - 7- It was reported that ANSI Committee A-l7 on Safety Code for Elevators, Dumbwaiters, Escalators and Moving Walks, is involved in shaft wall considerations. Request will be made to A-17 for membership of one of the Technical Committee members to report on and contribute to the work of A-17. SOUND Since sound testing of assemblies to bring the Design Data - Fire Resistance manual up-to-date cannot be completed in time to be included in the current revision of the manual, final decision on specific assemblies to be tested under this program was delayed until the next meeting. FIRE TESTS The ASTM standard for fire barrier gypsum board has been approved by the Society and given the designation C-707-72T and will appear in the next issue of ASTM Standards. The written portion of the Design Data - Fire Resistance manual was reviewed and finalized. In reviewing the assemblies, it became evident that details from some of the reports were needed. Therefore, the staff will revise the manual as discussed at the meeting and submit a copy to each committee member for review and comment in ample time to meet the printing deadline. SGP 0029283 -3- The double wall Design 5~1 Hr. fire test to obtain a 2 hour rating with separately loaded wall sections was conducted at the National Gypsum Company Laboratory on August 1 and was witnessed by the Technical and Building Code Committees. The assembly failed under load in 1 hour 5^ minutes. The type X wall board from four member companies performed as well as any board the committee has seen tested. Therefore, it appears there is no way to pass this test with Design 5-1 Hr. walls and the new lumber size (1-1/2" x 3-1/2" studs) and this program will be dropped. There is still concern regarding some of the present fire ratings with the new lumber sizes. It is understood that a UL decision has not yet been reached regarding the current ratings with smaller dimension lumber. It was agreed that this is a lumber industry problem and should be handled by them, but our industry should certainly keep advised since several of our floor-ceiling ratings could be in jeopardy. The California State Fire Marshal Corridor Tests were conducted in July. The gypsum product performance was excellent, as expected. A further report will be given at the semiannual meeting. SGP 0029284 -9~ The current ASTM Standard for Gypsum Wallboard (C-36) specifies a maximum flame spread of 15. It has been found that gypsum wallboard does not always meet this requirement for any of a number of reasons (results range from 10 to 20 in most cases). Since all member companies certify compliance with C~36> the Technical Committee recommended that the flame spread be changed to 25 maximum in the next revision of C-36. A gypsum wallboard racking test conducted at the Illinois Institute of Technology last March 31 showed that performance of 1700 lbs/MSF 1/2" board was essentially equal in racking strength to the heavier weight board tested in 1956. Therefore, results of the 1956 series of tests appears valid for today's board weights and further testing is not contemplated at this time. SGP 0029285 REPORT OF THE BUILDING CODE COMMITTEE TO THE MEMBERSHIP SEPTEMBER 8. 1972 The summer meeting of the Building Code Committee was held August 1 in Niagara Falls, New York. In recent years, we have seen an increase in the active participation by building code representatives of the member companies representing a large per centage of the industry production with distribution in all markets of the country. To those who have followed the activities of the Building Code Committee with the agenda, minutes and report to the member ship, it should be obvious that this committee's work continues to increase and building code fees grow as a cost factor to the individual companies and to the Association. Many years ago, lower population, less competition from new materials and assemblies, and with building codes largely confined to major metropolitan areas, the work of this committee seemed unnecessary and actually was discontinued for several years. Today, with the great increase in population, the mush rooming suburbs, the increase in new materials with more combusti ble characteristics than gypsum products, building codes have be come more sophisticated. Since regulations concerning public safety involving fire resistive requirements have increased and protection from unwanted sound became a requirement, the activity of the com mittee has become most important. SGP 0029286 -2- Not the least of the problems is the increase in the amount of fees charged for code approval, the increased number of communities having such charges and the growing trend to charge for periodic review. In this regard, it had been proposed that the membership might be interested in a statistical analysis of the cost to the member companies of building code activity. It seems obvious to some of us closely concerned with this type work that the only way to control such expense is to increase the Association activity in representing the member companies in gaining industry approvals and reduce or eliminate the manufacturer's code work. A simple way to develop actual cost figures is through reports by all members to a confidential agent. This requires your approval implemented by a direct charge to your company staff to carry out the assignment, requesting the report at a specific time. The committee generally considers code problems in its meetings under four categories and this report will follow that plan. For widest impact, the most important activity through which the Building Code Committee and the Association staff working on building codes can effectively help is through the four model build ing code groups. The International Conference of Building Officials with its Uniform Building Code probably affects the largest number SGP 0029287 -3- of communities in the country. Generally, gypsum interests have been successfully protected and promoted through the UBC but there are areas still needing attention. The major item at the moment is obtaining official acceptance of the Fire Resistance Design Data manual. To this avail, the Building Code Committee is holding a special meeting in Kansas City in mid-September during the annual business meeting of ICBO. It is hoped that by showing a strong backing of the Association through the committee's direct involve ment, the Fire Resistance manual will be officially adopted and included in the 1973 edition of the Uniform Building Code. Gypsum products have generally been favorably covered as a group in the Southern Building Code, l/e continue to support this group by sponsoring one issue of the Southern Building magazine, having various member company representatives prepare articles to be included in the issue devoted to gypsum. Your assistance in this matter is solicited in approving advertising by your company in the April "Gypsum Issue." This magazine not only is the official pub lication going to the building officials in the area generally east of the Mississippi and south of the Mason-Dixon line, but also is the official magazine of the American Institute of Architects in the southeastern part of the country. In addition, the Associa tion distributes reprints of our issue to both the ICBO and BOCA memberships. The Building Officials and Code Administrators, Interna tional, with their BOCA Code appear to be moving in a direction to SGP 0029288 -4- give other than building officials the right to vote on code changes during their code hearing meetings. Generally, all of the model building code groups have restricted building material manufacturers and other non-building official membership from voting on code changes. Such members are permitted to submit proposed changes and also to speak on changes and other matters but never to vote. The fourth model code, the National Building Code, is sponsored by stock fire insurance companies and continues to re ceive our attention. However, this code is written by engineers in the employ of the American Insurance Association and it is more difficult to sway them than is the case with the other three model code groups, where all changes are considered in a general meeting with open discussion before being voted on. There is continual agitation for a single national build ing code from several directions. me model code organizations have grouped together and already have developed a One- and TwoFamily Dwelling Code which is being widely promoted and generally accepted by such groups as the National Association of Home Builders. The group which developed this standard is holding further meetings and considering developing a national model code for multiple dwellings, institutions and commercial buildings. They meet during each of the model code groups1 annual meeting as well as at other times. This is an important reason for the Association staff to attend model code groups' meetings and promote good will towards our industry. SGP 0029289 -5- The Building Code Committee has no recommendation for specific projects requiring expenditures of funds. The committee urges your support of the general budget items covering the build ing code expenses which include Association activities at model code group meetings. The second area of general concern is state building codes. A group referred to as the National Conference of States on Building Codes and Standards continue in an effort to bring about a uniformity in building codes which would basically be the same in all states. Some states already have regulations or special laws which affect our products. One of the most important of these has been the State of California where, through the State Fire Marshal's office, industry has been forced to maintain special approvals at considerable expense iri the past. It appears that within a year or two this may be solved when the state updates the adoption of the Uniform Building Code which hopefully will include our Fire Resistance manual. The State of Texas has a law that could ultimately be costly to us. Although not yet mandatory, it could require all tests, including fire, sound and structural, of materials being sold in Texas, be tested in Texas. The law has been passed but thus far has not been implemented by appropriating money or giving more specific directions to some of the schools which would set up and run the test facilities. SGP 0029290 North Carolina, again through the State Fire Marshal's Department, continues to present problems by refusing to accept fire tests other than those of Underwriters' Laboratories. The Federal Government, under a growing number of laws, continues to pose major questions in the building code field. One of the latest is a bill concerning health, food and drugs which has been passed and is now a law. In this bill, concerned with consumer protection, it appears that standards developed by manu facturers or by a group of people including manufacturers may not be acceptable. One interpretation of the wording would infer that even ASTM and ANSI standards would not be acceptable. However, there is a provision which automatically accepts OSHA standards. If gypsum standards were accepted by the Department of Labor under the Occupational Health Act, they would be acceptable under this new law. Therefore, at the recommendation of the Building Code Committee, the staff is investigating how ASTM and other standards could be presented and accepted under OSHA. In the next general category, "City Building Codes," major cities generally do not follow a model code and continue to restrict the fullest use of gypsum products. These include New York, Chicago, Los Angeles and San Francisco. When the new building code was adopted in New York City, gypsum wallboard assemblies were penaliEed to the extent that it was necessary to have specific approval by the city's Board of SGP 0029291 -7- Standards and Appeals for fire resistive and other characteristics. There is some indication this may finally change and efforts are being made to have our Fire Resistance manual adopted by the New York Building Department under the Building Code, as distinguished from the Board of Standards and Appeals approval. The City of Chicago is one of the leaders in the problem concerning the full use of gypsum wallboard in high rise buildings by objecting to its use in vertical air duct systems. The Chicago Building Department was also one of the leaders and is very active in studying the problem of fire in high rise office buildings, which has led to a great deal of discussion of "trade offs" under which the building department may reduce fire resistive requirements by an hour to compensate the building owner who will be required by the building regulations to put in a sprinkler system. These matters are far from settled and the staff and various members of the Building Code Committee continue to watch them very carefully. The general theme of our arguments is that fire resistance built into the building stays there and is active during the fire while problems may develop in a sprinkler system that reduce or eliminate its value when needed. Further, gypsum has been used successfully for fire resistance for years. The City of Los Angeles has adopted a sound ordinance and is requiring current up-to-date tests. Although our Fire Re sistance manual is not a part of their building code, the city ordinance references our manual as a source for acceptable sound SGP 0029292 -8- test information. Every salesman in this jurisdiction should be familiar with our manual. This is presenting difficulties due to the lack of sound test data, primarily with lath and plaster assem blies and even in some wallboard installations. Furthermore, there are specific requirements on fire tests for shaft wall assemblies that have given all gypsum manufacturers problems in gaining full approval by Los Angeles. The City of San Francisco is perhaps the most difficult building department in the country to get approval of 2-hour or longer fire resistive assemblies. They refuse to accept fire test data with an interpretation extending the height beyond the test panel height. What this amounts to is a height limitation of 10' since that is the maximum height that can be fire tested. Elsewhere, 141 and 16' high partitions are normally acceptable. Furthermore, San Francisco has enforced a "fall off" criteria which is over and above the standard requirements of the ASTM E 119 Fire Test. This means an assembly can pass the requirements of E 119 for a 1-, 2-, or 3-hour rating and yet not be approved in the City of San Fran cisco since part of the side exposed to the fire fell off the assembly to a greater amount than they deem safe. The final category of concern to the committee is "materials." One of the two main problems in obtaining wider acceptance of the use of the Association Fire Resistance manua1 is the matter of prod uct identification. It is most desirable to have the products -if** identified with the applicable ASTM standard for the product in- SGP 0029293 -9- volved, indicating it is made in conformance with the appropriate ASTM standard. Some manufacturers are marking end bundling tape with the proper designation. Recently, BOCA has included in their regulations the requirement that any products approved must be properly identified as noted above. The other problem giving some difficulty in gaining full acceptance of the Fire Resistance manual is the many types of fire-rated board. The fact that some companies list many formulations for fire-rated board under one assembly shown in Underwriters' 1972 Fire Resistance Index deters the acceptance of the Fire Resistance manual in building departments acquainted with the UL book. The Building Code Committee recommends each member review carefully with their marketing and technical people the need to continue these many designations. A report was given by Mr. Houser, the NBS Research Associate sponsored by the Gypsum Association. The committee feels his orienta tion and progress to date has been excellent. For the time being, Mr. Houser has not been able to devote much time to building code matters. We look forward to the time when he can spend more time on codes. In conclusion, the Building Code Committee is carefully studying the growing number of regulations affecting the use of gypsum products as well as the increasing number of agencies, particularly governmental, that are becoming a factor. As a group, we are con- SGP 0029294 10 - cerned with permissive regulations affecting the use of new and old building materials which can reduce the amount of gypsum products sold per unit. Respectfully submitted, 6.e. C. E. Abbey, Chairman /+ SGP 0029295 REPORT OF THE TRAFFIC COMMITTEE TO THE MEMBERSHIP SEPTEMBER 8, 1972 The Traffic Committee will hold their fall meeting in the Buffalo, New York area on September 13, 14, 1972, jointly with the Materials Handling Committee. CONCEALED DAMAGE LIABILITY X-263 On February 24, 1972 the I.C.C. served its long awaited decision in Ex Parte 263 - Rules, Regulations and Practices of Regulated Carriers with respect to the Processing of Loss and Damage Claims. Rules were originally put into effect by the carriers in August 1969, but there were so many complaints by shippers that the Commission instituted an investigation. These complaints were aimed at the rules set by the carriers to limit liability for concealed loss and damage. Briefly, in its decision the Commission declared that carrier rules restricting their liability for concealed loss or damage are unlawful. Further, the Commission was quite critical of the carriers for refusing to pay claims, failing to handle claims expeditiously, and not cooperating among themselves to avoid claim liability. The Commission adopted new rules to become effective on April 20 and stated it would seek appropriate legislation to permit them more authority over claims practices. SGP 0029296 2 In April the I.C.C. denied petitions for reconsideration of its February 24 decision, but did postpone from April 20 to July 1 the effective date of the newly prescribed rules. In June legislation was introduced aimed at strengthen ing the I.C.C.'s ability to deal with cargo loss and damage. These proposals were introduced in the Senate as S.3717 and S.37I8. 5.3717 would authorize the Commission to prescribe rules and regulations requiring railroads, water carriers and express companies to maintain insurance for the protection of shippers against cargo loss or damage on the same basis that the Commission presently requires motor carriers and freight forwarders to so indemnify shippers. 5.3718 would prescribe stronger and more expeditious cargo loss and damage claims adjudicatory procedures for the I.C.C., making all I.C.C. orders arising from such adjudications binding on all parties unless reversed on judicial review. Both of these proposals were among the legislative recommendations included in the Ex Parte 263 report of February 24, 1972. The two bills have been referred to the Senate Com merce Committee for further action. In an order issued June 27 upon request by the National Freight Claim Council of the American Trucking Association, Inc., the Commission extended to September 1 the time for complying with the tariff filing requirements by the carriers. SGP 0029297 -3- CAR CLEANING CHARGES - DEBRIS REMOVAL I & S 8363 - Sub 1 - Special Unloading Charge. This was a proposal by the rail carriers to establish a $25.00 car cleaning charge for cars returned to railroads by customers containing dunnage, debris, trash, etc. The subject has been under consideration since 1967> and publication of the charge has periodically been voluntarily postponed by the carriers pending the final decision by the Commission. The last postpone ment was to have been April I, 1972 but the carriers issued cancellation of the proposed amendment of Section 1, Rule 27, pertaining to the $25.00 car cleaning charge. The cancellation came before any decision by the Commission. On April 14 the I.C.C. served its order officially discontinuing I & S Docket No. 8363 - Sub 1. As reported in March, I.C.C. Docket No. 35237 Con signees' Obligation to Unload Rail Cars in Compliance with Carriers' Published Tariffs was issued by the Commission on February 1 and found that Rules 14, 27 and 30 of the Uniform Freight Classification do impose on consignees the obligation to completely unload such material as dunnage, debris, trash, etc., from cars containing inbound shipments. GFTC-ER 201-186 was an Eastern Railroads proposal to establish a $300.00 charge per car for movement from consignees' siding or carriers' team track for removal of trash, debris, dunnage, etc. The proposed charge was subsequently reduced to $50.00. The SGP 0029298 -4- proposal was approved but publication was held in abeyance pending final disposition of I & S 8363, Sub 1. The Eastern Railroads have not issued an official disposition of their proposal, but we can assume the matter has been dropped since I & S 8363, Sub 1 has now been closed. Subject 16 of Docket 316 June 1972, Uniform Classifica tion Committee, is a proposal by the railroads to amend Rule 27, Section 1, of Uniform Freight Classification to outline the con signees' responsibility for unloading cars. The carriers are attempting to provide specific wording, namely, "It shall be the responsibility of consignee when unloading box cars of any type, fiat cars of any type, gondola cars, open-top hopper cars or refrigerator cars, to remove from such cars the lading, blocking, bracing, strapping, paper or debris of any kind which is not a part of the car or its equipment, except that a consignee need not unload or remove the following,..." Objections have been filed by carrier traffic executives. The matter is now being held in abeyance after having originally been approved. EX PARTE 270 ^SUB.2 -J INVESTIGATION OF RAILROAD FREIGHT SERVICE This subject was reported in the annual report and briefly concerns an l.C.C. investigation of railroad freight service deficiencies and problems. A standardized complaint form permits SGP 0029299 -5- shippers to submit complaints to the Commission. This form is designated BOP - 105 ~ Railroad Freight Service Report. Certain requirements must be met by shippers in filing these complaints and in turn the Commission has issued appropriate rules and reg ulations incumbent upon the railroads, with corrective measures mandatory upon the carriers. The purpose of the investigation proceeding itself is to determine the extent and causes of railroad freight service deficiencies. ROLLING STOCK FINANCING AND UTILIZATION ACT OF 1972 This was a Senate bill, originally proposed as S.1729, "Fast Freight Systems Transportation Act," or as it became known, "Fastcor" bill. This bill has undergone numerous changes from its original form. On August 4, 1972 the Senate, by unanimous vote, approved this legislation and sent it on to the House for their action. The primary aim of the bill is to increase the supply of railroad rolling stock and to improve the utilization of this equipment. It provides that if the rail industry fails to solve the freight car supply problem within three years, a Rolling Stock Authority would be created to acquire, maintain and provide rolling stock. This would only be done after three years and after the Secretary of Transportation and the Inter state Commerce Commission agree that the railroads have not made substantial progress toward solving the problem. Congress could then authorize the establishment of the Rolling Stock Authority. Other parts of the Act provide various aids and assistance for SGP 0029300 -6- the railroads, such as, loan guarantees to improve facilities in rural areas, a study by the I.C.C. to determine freight rate dis crimination against recycled materials, determine use for abandoned trackage and rights of way, and provide various job protection. SWITCHING OF STRIKE BOUND PLANTS BY RAIL SUPERVISORY CREWS Proposal by the Eastern Railroads to establish a charge for the use of railroad supervisory personnel in performing train service at a customer's facility on his request, while the customer's employees are on strike and picketing. This proposal was protestd by your Traffic Committee. The Chairman appeared at the hearing in New York City in July 1971. The subject was deferred for furthur consideration. We are now advised the subject is in suspension until further notice. PROPOSED SURCHARGE FOR IMPOSITION IN STATES WHERE EXCESS CREW LAWS APPLY Proposals by railroads to establish surcharges on freight traffic moving from, to or within specific states having archaic minimum crew laws. These laws state that railroad operating crews will consist of a specific number of men. This number varies among the states affected. The railroads contend that they can and should be allowed to operate with less than this required number for operat ing economies. Concerted effort has been put forth by the shipping public to assist the railroads in having these laws repealed or satisfactorily amended. Your joint Traffic and Materials Handling Committees have taken an active part in this effort. Surcharges SGP 0029301 -7- have been proposed in New York, Indiana, Ohio, Arkansas and Wisconsin. New York repealed its law in 1971. Indiana passed a law which provides that collective bargaining agreements will take precedence over the old law. The Ohio Governor signed a repeal law in March. In May the Wisconsin Governor signed a bill to repeal their "Excess Crew Law." The only state remaining is Arkansas which requires a crew of six men on trains of over 25 cars. The railroads and shipping public are mounting an organized campaign to have this law repealed this year. The repeal comes before the electorate in the general election on November 7> 1972 in the form of a ballot calling for repeal of the law, while still protecting the jobs and earnings of the employees involved by elimination through attrition. EX PARTE 270, SUB 1A and IB - RAIL FREIGHT RATE STRUCTURE An I.C.C. proceeding to determine: (1) Possible self-defeating nature of general rate increase with respect to generating revenues (2) Disparities and distortions in the basic rate structure (3) Uneven effects of rate increases on individual railroads (4) Lack of railroad incentive to improve service in line with shipper requirements. The Commission originally announced it would conduct a separate proceeding, Ex Parte 270, Sub 1, to investigate certain export-import relationships as they relate to various ports. The SGP 0029302 -3- Commission has now divided the proceedings by designating Sub 1A to deal with the Pacific Coast port area and Sub IB to cover the Great Lakes ports. Some hearings have already been held with further dates set for Sub 1A in San Francisco on September 25, and Sub 18 in Chicago on October 30. These proceedings were opened upon complaints that export-import rates for Great Lakes and Pacific ports had become distorted in relation to corre sponding rates to and from other ports. In conjunction with the Commission's investigation, it has now awarded a contract to an outside firm to conduct economic research studies intended to provide information and guidance for future Commission decisions with respect to general rail rate in creases and rail services. It is expected this data will also provide a means on which to base future policy decisions regarding the structure of rates and costs in the rail industry. EX PARTE 271 - NET INVESTMENT - RAILROAD NET BASE A proceeding instituted in December 1970 by the I.C.C. to investigate whether net investment as now used or some other rate base is the proper basis for measuring rate of return. In November 1971 the Commission issued a preliminary report in which it summarized positions of the parties and re quested more information in the form of verified statements and staff conferences. SGP 0029303 -9- In its summarization, the Commission said that apparently the following issues will be raised: land valuation, capitaliza tion of maintenance accounts, depreciation, use of earnings for investment, debt/equity relationships, investment in non-trans portation affiliates, the nature of used and useful properties, and the adoption of alternatives to the fair-return-on-value test. Further, they said the investigation should include a determination of what constitutes a fair rate of return on. the investment base. Another major question will be whether to consider the following in establishing a reasonable rate of return: provision in the rate of return for the recovery of income taxes, use of the cost of capital approach considering separately cost of debt capital, cost of preferred equity capital, and cost of common equity capital. All parties to the proceeding were required to file a broad statement of position by last January 31, stating support of or opposition to the present method and/or the matter of deter mining a reasonable rate of return. Subsequently, initial verified statements of fact and argument in support of the statements of position are to be filed by October I, 1972, and filing of verified reply statements are to be filed by December 1, 1972. It is quite obvious this proceeding will be a long drawn out affair requiring considerable time and effort of all parties involved. SGP 0029304 -10- M0T0R CARRIER GENERAL RATE INCREASES - SECOND ROUND - 1972 This topic was discussed quite thoroughly in the Traffic Committee Chairman's spring report to the membership. Reviewing briefly, the motor carriers have been requesting general rate increases about every six months, due to the condi tions of the 1970 Teamsters Contract. These increase requests have been scrutinized not only by the shipping public, but now by the Price Commission. The 1972 Second Round increases are nov:, generally speaking, all effective and following is a synopsis of the Bureaus, effective dates and truckload increase percentages. Central & Southern Motor Freight Tariff Association July 22 - 2% Central States Motor Freight Bureau July 15 - 2% Eastern Central Motor Carriers Association July 14 - 2% Middle Atlantic Conference July 10 - 1% Middlewest Motor Freight Bureau July 27 - 2% New England Motor Rate Bureau July 31 - 1% Pacific Inland Tariff Bureau - July 5 3 to 1 cent cwt. (on weight) Rocky Mountain Motor Tariff Bureau Sept. 2 - 2% Southern Motor Carrier Rate Conference July 17 - 2% Southwestern Motor Freight Bureau July 27 - 2% These permitted increases are generally lower than the requested amounts, except in cases where the requested figure SGP 0029305 -n- was adequately justified and within the Price Commission's acceptable range. WTL C-25-994, SV'/L C-25-183, CUW 25-28 - PROPOSAL TO REDUCE RAIL RATES This proposal, originally submitted in August, 1970, proposing reduced rates generally within Western Territory and to Illinois Territory, pointing out the severe swing of traffic from rail to truck, and suggesting rail carriers take remedial action. The application was the subject of considerable debate and counter proposals until finally agreement was reached on a mutually satis factory rate level. New scale of 120,000 lb. rates, elimination of 40,000 lb. rates, and adjustments in other rates are now pub lished and became effective on June 27, 1972. Present territorial scope includes Western Territory and Illinois Territory. Application from Southwestern origins to Western, Illinois and Official; and from Western to Official are under consideration. GFTC-ER 210-91, TRANSPORTATION OF RUNNERS AND RISERS FROM, TO AND WITHIN OFFICIAL TERRITORY This was a proposal by the Insulation Board and Wallboard Traffic League to establish a new rule to provide free transportation of runners or risers used in shipments of boards or sheets, exterior siding, lumber, plywood, and wallboard, on flat cars. The rule would specifically provide that runners or risers be "secured" to and be made a part of the bundle or package. Gypsumboard loading procedures provide that the runners or risers are not necessarily secured to and made a part of the package. There is presently a rule published specifically for our product and situation. SGP 0029306 -12- A few years ago, this same organization, in GFTC-ER Submittal 210-41, proposed the same rule change and was rejected in its bid, notwithstanding a tremendous protest effort by the Materials Handling and Traffic Committees. In that submittal, the Eastern Railroads rejected the proposal as docketed, but their research group counterproposed that Item 1770 of TL-CTR Tariff E-2009, containing the exception to Rule 30 of UFC on gypsumboard products, be cancelled. I tern 1770 authorizes free dunnage on shipments of gypsum wallboard when loaded on bulkhead flat cars. Obviously, cancellation would have increased our transportation costs. In the present instance, a member company communicated directly with the Eastern Railroads chairman, indicating dis satisfaction with the instant proposal and advising protest would be made if the matter was progressed. A representative of that company attended the public hearing to determine the degree of possible involvement. No public statement was made at that time, but its progress was carefully observed. Subsequently, the GFTC-ER Committee voted not to recommend the subject. The proponent re quested review by the Traffic Executives Association and they also rejected the proposal. The subject file was closed and proceeding terminated. RAIL AND MOTOR TAR IFFS - GYPSUM PLANT DATA This is a subject presently on the committee's agenda in which it is hoped a compilation of all freight rate tariffs SGP 0029307 -13used by all members of the Association, can be collated into some logical and useful form to benefit the entire membership. As generally envisioned at present, all members would develop rail and motor carrier tariff data, following an agreed upon uniform format, used in their respective transportation operations. This data would include such information as shipping origin, rail or motor carrier name, tariff number and related information, type of carrier (regular route common, irregular route common, contract), and territorial application (intrastate, interstate - naming actual states included in authority). Each member would compile this information for each carrier used at each of his shipping facilities. The data would then be submitted to the Association which would act as the data collection bank to compile and distribute to the membership as an aid in transportation operations throughout the industry. A further report covering industry transportation subjects of interest will be made at the semiannual meeting. Respectfully submitted. ^ John D. Friedlein Chairman SGP 0029308 REPORT OF THE MATERIALS HANDLING COMMITTEE TO THE MEMBERSHIP SEPTEMBER 8, 1972 The Materials Handling and Traffic Committees will meet in a combination two-day meeting schedule on September 13 and September 14 in the Buffalo, New York area. The most continuing important item on the Materials Handling Committee agenda is the test program with conventional underframe flat bed railroad cars being conducted cooperatively by the Association of American Railroads and the Gypsum Associa tion. This and other significant items to be reviewed at the meeting are summarized in the following: ASSOCIATION OF AMERICAN RAILROADS-GYPSUM ASSOCIATION TESTS Following the cooperative impact tests held at Sweet water, Texas on March 1, 1972, the Gypsum Association loading submittal was approved for loads shipped on cushion underframe equipment, and will be published in the AAR General Ruies later this year. Shipments with cushion underframe equipment are reportedly being satisfactorily handled. A second test program was initiated early in April covering conventional (non-cushion underframe) flat car ship ments. Two-hundred test loads were included as follows: SGP 0029309 2 50 conventional cars with 4" spacers and 1/2" x .031 steel tie-down bands 50 conventional cars with 4" spacers and 3/4" x .025 steel tie-down bands 50 conventional cars with 8" spacers and 1/2" x .031 steel tie-down bands 50 conventional cars with 8" spacers and 3/4" x .031 steel tie-down bands Again during the test program, as had occurred during the cushion underframe shipments, the AAR reported that some bulkhead flatcar shipments were not being loaded according to the approved submittal - with particular emphasis on the failure to nail dunnage spacers together. The Manufacturing and Mining Committee again assisted in emphasizing the importance of this program to the industry member ship. The test program is now complete and the results are scheduled to be discussed with the AAR October 5-6, 1972 meeting in Chicago, I 11inois. The continuing emphasis for the individual loading loca tions must be: If properly loaded, flat cars will arrive at distination trouble-free. MATERIALS HANDLING TRAINING FILM The Gypsum Association training film, primarily showing the proper loading of flatbed rail cars in accordance with AAR SGP 0029310 -3- mandatory loading standards, wi11 be reviewed by the committee at the meeting. The film emphasizes the critical loading pro cedures, such as - no void between any two stacks in the entire load with the maximum space available between units being the thickness of the paper separators and no more. It is recommended that the film be purchased and used periodically at each gypsum plant. Loading crews change and pro cedures differ. Repeated use of the film will assist in training plant loading personnel and hopefully correct our loading deficiencies and thereby improve our relationship with the railroads. MATERIALS HANDLING MANUAL Revisions to the second edition of the manual will be reviewed including increased emphasis on truck loading, safety and OSHA requirements, and improved product storage methods. Many of the individual items discussed at the meeting will be incorporated in the second edition. Purchase of the second edition and disposal of al1 first editions are strongly recommended. IMPROVED MATERIALS HANDLING PROCEDURES New developments in the gypsum materials handling field include: (1) The Plastic V/edge, which was recommended at the last meeting and can be purchased at a cost of approximately $15 each, is gradually finding increased acceptance. SGP 0029311 - 4- (2) Development of Promotional Program Showing Materials Handling Equipment at the Dealer Level - This information is still being developed to provide several pages for inclusion in the manual showing the various types of equipment used. (3) Poly Tarp Truck and Rail Car Covers - The specification which was submitted to cover the minimum requirements for covers will be expanded to include pre-shaped slip covers. (4) Loading Diagram for Truck Loading Gypsum Paper will be re viewed for inclusion in the Materials Handling Manual. (5) Loading Diagram for Truck and Rail Loading of Ready Mix Joint Compound to be included in future revisions to the Materials Handling Manual. (6) Shrink Film Packaging will be reviewed and will continue to be carried on the committee agenda. Presently, there is no economic practical application in handling gypsum products, but it is anticipated that future progress will change that situation. (7) Materials Handling Safety Programs. Current materials handling safety programs will be discussed with particular emphasis on the Occupational Safety and Health Administration Legislation. The increased emphasis on the shipper's responsibility in truck shipments will be reviewed due to the increase in legislation and legal action which indicates that more attention must be paid to this activity. Additional information will be developed for inclusion in the Materials Handling Manual. SGP 0029312 -5DUNNAGE CONSERVATION PROGRAM The dunnage conservation program on rail cars which was started several years ago is now considered a success. Dunnage conservation on trucks is becoming an item of increas ing concern due to increase in truck shipment volume and dunnage disposal problems at the dealer distribution level. NATIONAL LUMBER AND BUILDING MATERIAL DEALERS ASSOCIATION Requests for standardized modular units on flat car shipments will be reviewed and retained as an open item. SPRING MEETING The next meeting of the joint Traffic and Materials Handling Committees will be held in the Southern California area. Additional current significant materials handling subjects will be discussed at the semiannual meeting. Respectfully submitted, E. R. Kiehl, Chairman SGP 0029313 REPORT OF THE SAFETY COMMITTEE TO THE MEMBERSHIP SEPTEMBER 8, 1972 This report has been prepared in advance of the Safety Committee's fall meeting which will be held on September 21, 19/2 at the Sheraton Palace Hotel in San r'ancisco. On the day pre ceding this meeting the committee will present a seminar for member company plant representatives, who will gather to exchange accident prevention information and hear an official of the Occupational Safety and Health Administration review the require ments of this new Federal act. A more complete report regarding this seminar and committee meeting will be presented at the Association's semiannual meeting in October. During the first six months of 1972, plants partici pating in the Gypsum Association Safety Contest recorded a total of 56 disabling injuries to establish an accident frequency of 4.Si injuries per million manhours worked. This rate compares unfavorably with the ten year high rate recorded in 1971 (4.75), the average of the three previous years (3.89), or the rate for the first six months of 1971 (4.0C). In reviewing the four divisional groupings used for contest purposes, only plants of the Citation Division succeeded in reducing accident frequency from a three year average of 3.88 ./ to 2.26 for the first six months. The remaining divisions all SGP 0029314 2 recorded increases, with the Triumph Division sustaining the highest frequency at a rate of G.4l . However, it is encouraging to note that of the Jk participating plants, 40 could boast acci dent free records at the half way mark. The accident prevention activities of the Association in 1971 brought recognition from the National Safety Council in the form of an Association Safety Award for "distinguished service in promoting safety within the gypsum industry". Judged outstanding among last year's programs was the OSHA slide presentation developed to assist in explaining the act to the industry's supervisory per sonnel . The following is a summary of programs which the Safety Committee is currently engaged: Industry Safety Manual A second edition of the Gypsum Association Safety Manual is now being readied for publication with important new sections dealing with the control of material handling hazards. Communications The format for the Safety Bulletin and the Fleet Safety Newsletter has been revised to include a greater number of con tributions from member plants. Consideration is also being given to the inclusion of a section in which serious accidents are re viewed and preventative measures outlined. The exchange of this SGP 0029315 -3- type of information could lead to the development of a manual outlining safe procedures for the control of the industry's most frequent type of accidents. Safety Posters A new series of safety posters have been developed for distribution in 1973. These posters, owing to their industry identification, will provide an additional element of thrust for member plant safety programs. Industrial Hygiene Information pertainingto in-plant environmental reg ulations will continue to be reviewed and disseminated by the committee as an aid to the establishment of effective programs dealing with the control of dust, noise, heat and other factors affecting employee health. Safety Legislation Jurisdiction remains clouded as to the inspection responsibility for gypsum plants between the Bureau of Mines and the Occupational Safety and Health Administration. Until this controversy is clearly resolved, the industry remains sub ject to dual inspection, reporting and regulatory compliance. The committee will continue to closely follow developments in this area. Likewise, the committee will continue to review proposed standards and regulations from both Federal agencies and seek to provide official interpretations of newly promul gated standards affecting the industry. SGP 0029316 -k- Safety Training On March 15, 1972, the Safety Committee held the first accident prevention seminar preceding the Cherry ; ill, New Jersey Safety Committee Meeting. More than 70 persons representing 15 plants and 6 companies attended this day long workshop. The favorable comments of those participating at Cherry Hill set the stage for the San Francisco seminar. The utilization of accident case histories will focus attention on many of the in dustry's most difficult accident prevention areas and foster an important exchange of information, views and techniques between operating managers. Respectfully submitted, H. Walton, Chairman Safety Committee SGP 0029317 REPORT OF GYPSUM ASSOCIATION SAFETY CAMPAIGN FOR THE SIX-MONTH PERIOD ENDING JUNE 50, 1972 Presidential All establishments with an exposure for the six-month period of over 200,000 or more man-hours: Total Plant Plants Rating United States GypsumCompany, Plaster City, California -0- United States gypsumCompany, Fort Dodge, Iowa -0- United States GypsumCompany, Southard, Oklahoma -0- United States GypsumCompany, Gypsum, Ohio -0- National Gypsum Company, Savannah, Georgia -0- United States GypsumCompany, Jacksonville, Florida -0- United States GypsumCompany, Sweetwater, Texas -0- United States GypsumCompany, Shoals, Indiana -0- National Gypsum Company, Shoals, Indiana -0- National Gypsum Company, Bronx, New York -0- (United States Gypsum Company, Plaster City, California, had highest man-hours) Georgia-Pacific Corporation, Gypsum Division, Acme, Texas 3.66 Georgia-Pacific Corporation, Gypsum Division, Brunswick, Georgia 4.77 United States GypsumCompany, Staten Island, New York 5.66 United States GypsumCompany, Stony Point, New York 9.48 United States GypsumCompany, Oakfield, New York 14.02 National Gypsum Company, Clarence Center, New York 18.12 National Gypsum Company, Baltimore, Maryland 19.00 Citation All establishments with an exposure for the six-month period of over 155,000 but less than 200,000 man-hours: Total Plant Plants Rating United States Gypsum Company, Saltville, Virginia -0- United States Gypsum Company, River Rouge, Michigan -o- United States Gypsum Company, Philadelphia, Pennsylvania -0- United States Gypsum Company, Norfolk, Virginia -0- Georgia-Pacific Corporation, Gypsum Division, Fort Dodge, Iowa -0- United States Gypsum Company, East Chicago, Indiana -0- The Celotex Corporation, Port Clinton, Ohio -0- The Flintkote Company, Gypsum Products Division, Sweetwater, Texas -0- National Gypsum Company, National City, Michigan -0- National Gypsum Company, Medicine Lodge, Kansas -0- The Celotex Corporation, Fort Dodge, Iowa -0- The Celotex Corporation, Hamlin, Texas -0- (United States Gypsum Company, Saltville, Virginia, had highest man-hours) National Gypsum Company, Fort Dodge, Iowa 5.46 National Gypsum Company, Rotan, Texas 5.S3 Georgia-Pacific Corporation, Gypsum Division, Akron, New York 6.25 National Gypsum Company, Westwego, Louisiana 6.30 The Flintkote Company, Gypsum Products Division, Camden, New Jersey 6.35 The Flintkote Company, Gypsum Products Division, Las Vegas, Nevada 12.52 SGP 0029318 2- - Triumph All establishments with an exposure for the six-month period of over 118,500 but less than 155,000 man-hours: Total Plant Plants Rating United States Gypsum Company, Baltimore, Maryland -0- National Gypsum Company, Tampa, Florida -0- Kaiser Cement and Gypsum Corporation, Delanco, New Jersey -0- Georgia-Pacific Corporation, Gypsum Division, Blue Rapids, Kansas -0- National Gypsum Company, Waukegan, Illinois -0- Georgia-Pacific Corporation, Gypsum Division, Sigurd, Utah -0- (United States Gypsum Company, Baltimore, Maryland, had highest man-hours) Kaiser Cement and Gypsum Corporation, Jacksonville, Florida 6.51 United States Gypsum Company, Charlestown, Massachusetts 7.03 Georgia-Pacific Corporation, Gypsum Division, Grand Rapids, Michigan 7.05 The Flintkote Company, Gypsum Products Division, Savannah, Georgia 7.53 United States Gypsum Company, Empire, Nevada 8.33 Georgia-Pacific Corporation, Gypsum Division, Wilmington, Delaware 13.73 National Gypsum Company, Burlington, New Jersey 13.78 Kaiser Cement and Gypsum Corporation, Long Beach, California 14.29 National Gypsum Company, Portsmouth, Mew Hampshire 14.58 Kaiser Cement and Gypsum Corporation, Antioch, California 14.59 Texas Gypsum Company, Inc., Irving, Texas 14.79 Georgia-Pacific Corporation, Gypsum Division, Buchanan, New York 30.38 Peerless All establishments with an exposure for the six-month period of less than 118,500 man-hours: Total Plant Plants Rating United States Gypsum Company, Sperry, Iowa -0- National Gypsum Company, Lorain, Ohio -0- Big Horn Gypsum Company, Cody, Wyoming -0- National Gypsum Company, Long Beach, California -0- United States Gypsum Company, Alabaster, Michigan -0- United States Gypsum Company, Sigurd, Utah -0- National Gypsum Company, Richmond, California -0- National Gypsum Company, Phoenix, Arizona -0- The Celotex Corporation, Edgewater, New Jersey -0- United States Gypsum Company, Santa Fe Springs, California -0- Georgia-Pacific Corporation, Gypsum Division, Lovell, Wyoming -0- United States Gypsum Company, Heath, Montana -0- (United States Gypsum Company, Sperry, Iowa, had highest man-hours) Grand Rapids Gypsum Company, Grand Rapids, Michigan 8.47 United States Gypsum Company, New Orleans, Louisiana 8.60 National Gypsum Company, New Haven, Connecticut 10.13 The Flintkote Company, Gypsum Products Division,Fremont, California 12.13 United States Gypsum Company, Galena Park, Texas 20.19 American Gypsum Company, Albuquerque, New Mexico 22.20 Kaiser Cement and Gypsum Corporation, Seattle, Washington 22.36 SGP 0029319 -3- GYPSUM ASSOCIATION SAFETY CAMPAIGN FREQUENCY RATE FIGURES BY CLASSES FOR SIX MONTHS - 1972________ Presidential Citation T riumph Peerless Totals Total Number Man-Hours 4,342,221 3,097,311 2,497,004 1.7H.097 11,647,633 Total Number Accidents 13 7 21 JO 56 F requency Rates 4.15 2.25 8.41 5.34 4.81 SGP 0029320 REPORT OF THE MANUFACTURING AND MINING COMMITTEE TO THE MEMBERSHIP SEPTEMBER 8, 1972 The Manufacturing and Mining Committee continues its schedule of one meeting per year falling on the day prior to the annual meeting in the spring. However, at a date which follows prepara tion of this report, but which will occur before the Chairman's verbal report to the membership, a special task force will be convened from the committee to discuss certain aspects of the committee's functions as they relate to federal legislative reg ulations impacting on our businesses. This point will be touched on later in this report. ENVIRONMENTAL PROTECTION The usual activity in connection with environmental protection has been continued. The sound slide film and tape recorder commen tary which essentially finish the "Ws Live Here Too" project have now been completed as authorized at the annual meeting, and in dividual sets are available to the members for a nominal cost. It is expected that this material will prove of substantial value to most plant locations. On July 18, 1972, a representative of the Gypsum Association, who is an associate member of the Manufacturing and Mining Com mittee and an expert in environmental protection matters, appeared before the Environmental protection Agency in Washington to hear SGP 0029321 2- - the proposed discharge limitations for the cement, lime, gypsum, asbestos and flat glass industries pertaining to water pollution regulations. He found it necessary to file objections to many of the proposals on the basis that they were unrealistic for our industry. Results of his objections in terms of accomplishing a change in the regulations are not known at this time. LAND PRESERVATION AND RESTORATION Although there has been no activity in the area of land preservation and restoration since our last report, it is expected that the committee will propose that a unified approach to such activity be initiated in areas where several gypsum plants are operating, beginning with an Association-sponsored meeting of representatives of each company operating in that area. Such an approach should not only yield optimum results for the communities involved, but might well be of substantial assistance to the member companies in arriving at the most effective solution to land restora tion problems. MATERIALS HANDLING LIAISON The Manufacturing and Mining Committee continues to be active in support of the Materials Handling Committee - particularly with regard to flat car loading procedures and practices. The materials handling film proposed earlier has been completed, the test ship ments agreed upon by the Association of American Railroads have been made and in general, we believe that an improved situation SGP 0029322 -3- in the area of fiat car loading exists. Support of the Materials Handling Committee efforts by the Manufacturing and Mining Com mittee members appears to be most important if our position with the railroads is to be protected. SEVERANCE TAX Possible legislative activity at one level or another with regard to imposition of severance taxes continues in a number of states - notably Ohio, Indiana, Kansas, Michigan, Utah and Montana. However, no committee action has been required since the occasion of our April meeting. This matter continues to be of importance to the industry and the need for early warning and early action in problem situations continues to be of great impor tance. SAFETY COMMITTEE LIAISON The impact of OSHA regulations on industry plant opera tions has just begun to be felt since the time of our last meeting. Information on OSHA inspections has been exchanged and appropriate action in this area will be the subject of discussion at the task force meeting in September. OTHER OBJECTIVES At the present time, a number of government agencies created by federal legislation having to do with OSHA, environmental protection, equal employment opportunity, etc., are in the process of issuing administrative orders, making rules, etc., which will SGP 0029323 .. h impact heavily on the operations and perhaps the profitability of our industry and, for that matter, all industries. The question of whether, and to what extent. Association activity in the area of monitoring and then influencing this rule making is desirable, and/or justified, is a matter which will be discussed at the special task force meeting of the Manufacturing and Mining Com mittee mentioned above and will be reported on verbally to the membership in October, with such recommendations as may seem appro priate. FUTURE COMMITTEE MEETINGS Continuation of the present schedule for a single annual committee meeting is planned. A further report covering the Manufacturing and Mining Committee activities will be made at the semiannual meeting. Respectfully submitted, SGP 0029324 '**** SEMIANNUAL REPORT TO THE MEMBERSHIP September 8, 1972 V i ! I Gypsum Association 201 North Wells Street / Chicago 60606 SGP 0029325 REPORT OF THE SECRETARY TO THE MEMBERSHIP SEPTEMBER 8, 1972 Of major importance to the membership and all of the member company personnel who have Gypsum Association responsi bility, is the work of a special task force from the Board of Directors during the past six months. Appointed at the annual meeting of the Board of Directors last April, the task force was charged with reviewing the activities and scope of the Association to better serve the member companies. The task force has painstakingly investigated the total workings of the Association from several viewpoints. First, the structure, procedures and responsibilities of all of the standing committees have been reviewed. Secondly, each staff member of the Association has been interviewed and all aspects of the individual's job description and responsibilities were investigated. Thirdly, an actual time-study of the work of each member of the staff has been reviewed. To assure that each member company has a voice in the ultimate recommendations to be made to the membership, a summary of the above has been sent by the task force to each member of the Board of Directors. Accompanying this summary was a ques tionnaire prepared by the task force for each Director to fill out after investigating the activities of the Association with SGP 0029326 2 his appropriate people. Generally, the questionnaire requests each company to rate the activities of the Association in the order of importance and asks for all recommendations of possible dele tion of some of the present services of the Association, or addi tions, as the case may be. The questionnaire also affords the opportunity for each member company to evaluate the Association services with respect to costs. The results of the task force activity and the collation of the questionnaires will be made in a report by the task force to the membership at the semiannual meeting. Following, the Board of Directors will discuss the recommendations along with any dis cussion and comments from the membership at the meeting and will take any necessary action at the Board of Directors meeting. STATISTICAL PROGRAM The possibility of streamlining our statistical reporting program, especially with the hope of shortening the reporting time, has been discussed several times in the past. The subject was reopened during one of the task force meetings and the Secretary circulated a letter among the membership requesting that each member investigate this possibility. Unfortunately, there have been enough replies from the member companies stating that the reporting time cannot be shortened, so that it appears we will have to live with the present program. However, it was interesting to note that during the last SGP 0029327 -3- two years, all delays in circulating the final report from Peat, Marwick & Mitchell were caused by participating companies being late with their statistical input. No one company has been com pletely at fault - each company has at one time or another been tardy. In all cases, the people at Peat, Marwick & Mitchell have mailed the total production figures within four to six days from receipt of the last company report. It appears that we should periodically remind all of the member company people who prepare the statistics to do their best to be prompt. NATIONAL BUREAU OF STANDARDS It is with extreme pleasure that we announce the successful initiation of the associate research program at the National Bureau of Standards in Washington, D.C. After several years of discussion and many recommendations from the Technical and Building Code Committees, the membership approved the addi tional expenditures to employ Mr. James L. Houser at the NBS to pursue a program of study on fire resistance of building materials. Mr. Houser started his new position in early summer and gave a complete report to the Building Code and Technical Committees at their recent meeting. Both committees feel that the program and Mr. Houser's work is off to a good start and we look forward to the eventual results and conclusion being another progressive step for our entire industry. SGP 0029328 -k- FORT DODGE, IOWA - GYPSUM CENTENNIAL The Association participated in a rather unique program during this past summer. The gypsum industry and the citizens of Fort Dodge celebrated the 100th anniversary of our industry in that city. Because of the concentration of our business and the proximity of four gypsum plants, the Directors of those member companies asked that the Association staff coordinate the activities of the week-long celebration. It was also decided that the expenses incurred by the Association be paid by the four companies ar.d not included as a budget item of the Association. The activities of the staff, along with the open house tours of the four companies, displays at various points in the city, re-creation of the Cardiff Giant and various social and civic affairs were recorded in a 20-minute Super-8 movie. The film will be shown at the semiannual meeting not only for its interest to our membership, but with the prospect that the Association might become involved at other similar even.s where two or mo e plants are situated and the advantage of Association coordination might be realized. THIRTY-YEAR ANNIVERSARY Ue take pleasure in announcing that Miss Helen M. Owen will celebrate 30 years of employment with the Gypsum Association on October 20, 1972, While there have been two previous 20-year employees with time of service on our staff, Miss Owen is in a class by herself for her 30 years. I know the entire membership SGP 0029329 -5- wishes her the best of luck and expresses a deep gratitude for her long and devoted service to the industry. BUDGET MATTERS It is recommended that the second half of the 3-3/4$ per ton assessment (based on 1971 tonnage) that was levied on the member ship at the last annual meeting become due and payable on October 15, 1972. While the recommended budget for the year 1972-73 was approved on a tentative basis with no new activities that were not specified to be initiated, the additional expense of the re search associate at the National Bureau of Standards was approved and the total assessment will be necessary. The current financial status of the Association follows (in the Directors' copies). FUTURE MEETINGS The annual meeting of the Gypsum Association will be held in Chicago, Illinois on Wednesday, April 4, 1973. The Board of Directors will meet the following day. Reservations for future semiannual meetings have been made as follows: October 1973 October 1974 The Homestead, Hot Springs, Virginia Ojai Inn, Ojai, California Respectfully submitted, A. V. Abnee, Jr. Secretary SGP 0029330 REPORT OF THE PROMOTIONAL COMMITTEE TO THE MEMBERSHIP SEPTEMBER 8, 1972 The Promotional Committee of the Gypsum Association will hold its next meeting the day before the semiannual meeting at Napa, California. A complete oral report will be given the membership concerning the actions taken at that meeting. GYPSUM CENTENNIAL WEEK IN FORT DODGE Unified industry activity in the promotion, publicity and trade relations areas, in the opinion of committee members, is excellent as exemplified in the recent celebration of Gypsum Centennial Week in Fort Dodge, Iowa (outlined in the Secretary's report). While not completely a Promotional Committee activity, Promotional Committee members from the involved companies took an extremely active part in the Centennial, supplying displays, literature and handling general publicity and media relations. Rock Products Magazine will carry a full pictorial story on the Gypsum Centennial Week by Editor Sidney Levine in its October issue, and similar stories will be appearing in other trade pub lications. Over-all theme for the Centennial Week was Ecology, and it served as the premiere for the Gypsum Association ecology slide program "We Live Here Too". SGP 0029331 2 This slide presentation, a project of the Manufacturing and Mining Committee, and developed through the joint efforts of our committees, was shown to service clubs both before and during the celebration as well as to local residents during their tour of the plants. The presentation was well received and was an excellent example of how the Promotional Committee can lend itself to joint committee endeavors. We also believe that Promotional Committee efforts on behalf of Gypsum Centennial Week in Fort Dodge have demonstrated how future events of a similar nature can be effec tively arranged on behalf of member companies. LEAD-BASED PAINT POISONING It is becoming increasingly apparent that the problem of lead-based paint poisoning of children is more widespread and serious than originally suspected. Congress recently unanimously passed (82-0) a bill authorizing expenditures of one hundred million dollars to attempt to eliminate the problem. The Pro motional Committee is continuing its activities to encourage the use of gypsum Droducts as the most practical and economical means of covering contaminated walls and ceilings to make lead-based paint inaccessible to children. In addition to special releases to radio stations and daily newspapers, a special two-column mat service story with photographs showing a child peeling chips of paint from a wall was prepared and circulated to weekly newspapers. To date, this story has been printed by more than seventy papers throughout the country. Currently in preparation is a news release SGP 0029332 -3- for television, utilizing slides. All of these releases (to newspaper, radio and television) emphasize the availability of the Gypsum Association Specifications for Covering Existing Interior Walls and Ceilings with Gypsumboard Products. Twenty thousand of these eight-page specifications were printed initially. This supply has been exhausted and we are presently distributing copies from a reprint of ten thousand. The AprilMay-June 1972 issue of the Gypsum Orywall Contractors Interna tional Drywall Newsmagazine carried a two-page picture story on this problem and the use of gypsum wallboard as a solution. To date, we have received more than 60 individual requests from housing and health departments for our brochure and up-to-date information on the entire lead-based paint poisoning problem. To our knowledge, the Gypsum Association continues to be the only nongovernmental source of information on this problem. By special request, the Association recently participated in a panel discussion on the subject of lead-based paint poisoning at the BOCA meeting held June 27, 1972 in Chicago. It is gratifying that Association efforts in this area are being noted. V/e think it is most important to note that in this "consumer oriented" market, the Gypsum Association is being looked to for general advice on a major social problem. Granted our basic solution is to cover the contaminated paint with gypsum board products, we find that a great many of our inquiries are of a general nature. To sum it up, the Gypsum Association is in a SGP 0029333 -4- very "socially responsible" position. We have an answer to the problem in our Gypsum Association Specifications for Covering Existing Interior Walls and Ceilings with Gypsumboard Products, but we are also being consulted about the problem of lead-based paint poisoning in general. This situation, if not unprecedented, is at least unique. LITERATURE Production and distribution of Association literature continues at an all-time high and is steadily increasing. Par ticularly gratifying is the greatly increased request for single copies from individuals as a result of publicity in trade and consumer publications. This expanded program, plus the increased distribution through architectural and construction schools, member companies, contractor associations and trade schools has seen distribution of Association literature almost double in the past year. At the current distribution rate our total circulation will exceed two hundred thousand individual pieces by the end of this year. The design of current Association literature, which provides space for addition of a second name and logo, is proving to be effective. Advance orders have been received from con tractor associations requesting bulk orders with their own logo added. Several publications have been reprinted to satisfy demand. Newly reprinted was the American National Standard Specifications for the Application and Finishing of Gypsum Wallboa rd (A97.I) This sixteen-page publication was made available SGP 0029334 -5- to our twenty-five hundred name building official mailing list and we have received more than fifteen hundred requests for single copies. New publications are: American National Standard Spec ifications for the Installation of Steel Framing Members to Re ceive Screw Attached Gypsum Wall board and Backing Board (A97-2) and a brochure listing available Gypsum Association publications and visual aids. The April 1972 issue of Southern Building featured several stories by member company personnel on gypsum and how it is used in industrialized housing. Reprints of this magazine are also being widely circulated to both trade and consumer. Other new publications are currently in production or in the planning stage and a complete report on the status of these will be given in my oral report following the next Promotional Cornmi ttee meeting. TRAOE RELATIONS At the direction of the Board of Directors, the policy of restricting promotional activities with trade factor associa tions to the continental United States was made known to these associations. Gypsum Association representatives will meet with the GDC1 Board of Directors and various committees at their semi annual meeting, September 18-20, 1972, in Denver, Colorado to arrange details for Gypsum Association participation at their annual meeting, March 4-9, 1973, in Atlanta, Georgia. The iaWCC SGP 0029335 -6- Annual Convention will be held this year September 22-27 in Mexico City. This commitment was made prior to the policy noted above. The Gypsum Association will participate in six workshops on product technique and application as a major part of the program and will sponsor a social reception. Our trade relations activities are most important as a continuing liaison with the various gypsum contractors associa tions, and it is the committee's feeling that these activities should be increased from the presently reduced level. As we have stated before, coordination of convention activities, tech nical and business management programs and use of literature by these large groups are invaluable. They are our direct customers! SHAFT-TYPE WALLS Several member companies have requested that the Promotional Committee discuss the possibility of promoting the general concept of shaft-type walls on an industry basis. We realize that there are proprietary aspects to individual member company assemblies. On review, the majority of the members approved of this action. This subject will be brought up at the Promotional Committee meeting and a report given to the membership at the semiannual meeting, asking for direction. SGP 0029336 -7- FIRE-FIGHTER GYPSUMBOARD At the direction of the Board of Directors at the last annual meeting, the Promotional Committee has not initiated any new promotional efforts in this area. However, there are in creasing reports of sales in the field and we continue to supply available literature to those who make inquiries on the basis of our previous advertising and promotion campaign on behalf of this product. EXPANDED PROMOTIONAL ACTIVITIES The Promotional Committee continues to strongly recommend a major expanded public relations program on gypsum and gypsum products to compete with the increasingly aggressive competition (i.e., sprinkler systems, concrete block, fire retardant treated wood, exposed masonry, etc.),. As reported at the annual meeting, the Promotional Committee has a program in mind to combat this increasing competition. The first step in this program is a new film on the basic fire resistance of gypsum products. Other advantages of using gypsum products such as sound control, re duced weight, structural properties and low cost will also be emphasized. This program is being held in abeyance at the direc tion of the Board of Directors. It is the conviction of the Promotional Committee that production of this film as an initial step in our program should begin without delay. SGP 0029337 It should be noted that, although current film distri bution is at an all-time high (over 500 bookings a year), the films we are distributing are almost ten years old and somewhat outdated. Because of the increasing demand, particularly from architectural schools and other educational and training factors, the committee feels that a new, comprehensive film is direly needed. This recommended film would also be suitable for presentation to consumer audiences. Respectfully submitted, Donald W. Hiller, Chairman Promotional Committee SGP 0029338