Document wN7pyx0Z6rgRG5OeBoGG93B

ANNUAL REPORT TO THE MEMBERSHIP > r ANNUAL REPORT TO THE MEMBERSHIP March 17 1975 V Gypsum Association SGP 0012084 REPORT OF THE SECRETARY TO THE MEMBERSHIP MARCH 17. 1975 Several times in previous annual and semiannual reports of the Gypsum Association, we have mentioned the continuing in crease in legislative and quasi legislative activities of the Association at the federal, state and local levels. At the risk of being repetitive and also generalizing somewhat since detailed reports of most of these activities are included in the committee reports which follow, we thought that it might be worthwhile to again report on the over-all subject. You will recall that two to three years ago, a complete analysis of the activities and structure of your Association was made by a task force from the Board of Directors with input and recommendations from each of the member companies as to the most appropriate services that each member receives from our efforts. It was very obvious that the consensus of the member ship was that the Association should increase its activities in Building Code and Technical activities, Manufacturing and Mining activities and over-all legislative efforts. This was to include the opening of an office in the Washington, D.C. area and working with the Washington office of our new legal counsel, Baker & McKenzie, to participate more in legislative activities. Indeed, one of the reasons given for retaining our new legal counsel some years ago was their large and very active Washington office. SGP 0012085 2 Also, at about the same time, the membership approved the initiation of a Research Associate Program with the National Bureau of Standards which supplements our efforts in the Technical and Building Code areas, particularly in government fire studies of the construction industry. It is comforting indeed to receive reports showing the daily activities of the Bureau of Standards work in this area and to participate and actually guide some of the work that coincides with the over-all objectives of our pro gram. During the past year or two, the federal government's interest in the use of energy has been of prime importance. Two government studies of the use of energy in the gypsum industry have been coordinated through the Association. At present, there are two others which are being prepared and they, too, are being coordinated through this office. Our cooperation with Stanford Research Institute on the over-all impact of the energy shortage last year was vital in that it is being used as the basis for the other three. We cooperated fully with this study and, because of our excellent communications, were able to include the energy used in certain manufacturing processes which had not been intended to be included. We were also able to include the energy needed in the manufacture of gypsum wallboard paper in similar studies in the paper industry. The second government study prepared by Battelle, Inc. has been distributed to our members for their final approval and should be published in the very near future. SGP 0012086 -3- More recently, the Department of Commerce has requested the gypsum industry through the Association, to initiate a voluntary energy conservation program and advise the Commerce Department of the results through a very simple reporting process. This is being studied by our members at the present time and, if approved, should be started within the next few weeks. We recommend the membership cooperate with this effort. It seems that such a report could be most beneficial in opposing possible mandatory legislation on energy conservation later this year. At present, we are very active in coordinating field studies of the industry by the Environmental Protection Agency in water pollution - one study on quarries and mines, and the second on the manufacturing process of gypsum wallboard. This second study should be available for member companies1 perusal in the next few weeks. The government study on air pollution was completed last year. We have come to expect an increase in proposed state legislation in odd-numbered years, and 1975 is no exception. We have recently appeared in the Colorado legislature, opposing a mineral severance tax bill of 6%. A vicious land ownership bill in the Iowa legislature appeared which would force any corpora tion owning more than 640 acres of farmland to divest itself of such land within five years. We have appeared before that legis lature and it now appears the bill has been amended and is more compatible for the Iowa plants. SGP 0012087 -k- There is surface mining legislation in both Ohio and Texas and we have initiated programs in both places. We recently were successful in a local zoning restriction in Webster County, Iowa which could have been very detrimental to our plants in that county. There are two areas where the membership has asked us to monitor - consumer product safety legislation and current court decisions in this area, and the very important proposed strip mining legislation. We have reported and will continue to report all such action to the appropriate committees. A proposed state ment to be presented before the Occupational Safety and Health Act hearings on noise control has been distributed for approval of the membership and we will prepare a similar statement for such reg ulations involving silica dust. We have had a representative attend most of the Mine Emergency Safety Administration Advisory Committee meetings to keep our membership informed and to offer recommendations where possible. We continue to monitor the activ ities of the Department of Labor in its effort to take over the function of the present MESA responsibilities. It was most gratifying to observe the reaction of our member companies in an effort to pass federal legislation to in crease the maximum weight of truck shipments. While there is already much activity to rescind this law, we encourage our members to continue to advise their legislators of their feelings. In SGP 0012088 the meantime, we are studying the individual state restrictions on maximum truck weights and will participate in efforts to bring state maxi mums up to the new federal law where needed. Ue are also working to send in gypsum truck configuration recommendations to the Federal Highway Administration for this revised legislation. Of course, most all of the activities in the Building Code Committee are legislative in nature. The continuing effort to obtain code listings and approvals of our Fire Resistance manual is endless and thus far, most successful. Just several years ago the thought that one industry manual could be referenced in the three large model codes and the Minimum Property Standards of HUD was almost wishful thinking. Today, this is a fact and we firmly believe the manual will be included in more standards and codes in the near future. Our work with the Bureau of Standards in the government's efforts to eliminate the lead-based paint hazard to young children was most successful. To Date, our recommended specifications to cover old paint peeling walls with gypsum products is the prime criteria. Recently, the Technical, Building Code and Promotional Committees have recommended that we increase our efforts to encourage the use of gypsum wallboard in mobile home standards and codes. Our committees and staff are working in many areas to this end. SGP 0012089 -6- Of prime importance is our close observation of any efforts in the proposed federal tax bill which affects our in dustry. We have for many years protected our percentage depletion allowance and we will continue to advise our membership on possible action should it occur. Periodically, other subjects come up for discussion in the Senate Finance Committee and our industry should be aware of these subjects. At this writing, a proposed $2000 tax break for the purchase of a home this year is being discussed. Such an inclusion in this year's tax bill would be of great benefit to our industry, particularly to the many trade factors using our products in construction. This has been a very general and cursory view of our legislative activities. Needless to say, your staff is following the direction it has been given during the last several years and are doing our best to comply. We have noticed a great increase in the awareness of our member companies in legislative activities and the response on some of our requests has been most gratifying. We will reissue our Legislative Directory very soon and include the new members of Congress this session. Vie urge each member company to encourage their field people, particularly plant man agers, to use the Directory and follow-up contacts with their legislators. If one important point can be made, it is this. Wherever our Association and the member companies make an effort on the SGP 0012090 -7- guidance of legislation on any level we definitely see results. We think your efforts in this area will reap many benefits. BUDGET MATTERS Following is a current financial report of the Associa tion (in Directors' copies) and the proposed budget for the year 1975-76, including the recommended budget of each standing com mittee. It is recommended that a 2( per ton assessment, based on 1974 tonnage, be assessed against the membership for the Association's expenditures for the first six months of the up-coming fiscal year. A. V. Abnee, Jr. Secretary SGP 0012091 REPORT OF THE SAFETY COMMITTEE TO THE MEMBERSHIP MARCH 17, 975 The Safety Committee met in Evanston, Illinois on March 4, 1975. This marked the first time that the committee has taken advantage of the fine meeting facilities located within easy walking distance of the Association offices. A regional Safety Seminar attended by 28 supervisory personnel from member company plants was held in French Lick, Indiana on March 8. INDUSTRY ACCIDENT EXPERIENCE The final 1974 Safety Campaign report reflected a 3% decline in the industry frequency rate as compared with the same period in 1973- The frequency rate (disabling injuries per million man hours) dropped to 6.84 for 1974 with a total of 109 lost man hour .accidents reported. This marks the first year since 1970 that the Association has recorded a decrease in the year-to-year accident frequency rate. Hopefully, this decline in frequency rate reflects the beginning of an improved trend, resulting from the intensified accident prevention emphasis as applied by the industry during the last several years. Nineteen seventy-four was also the first year in which the industry compiled an industry-wide OSHA frequency rate. This SGP 0012092 -2 figure, 8.9*+, representing reportable accidents per 200,000 man hours worked, is well below the national average for in dustries of this nature. As in the past, board plant accidents continue to contribute a major share of the industry's lost time accidents, and accounted for k0% of the accidents reported in 197*+. A complete analysis appears at the end of this chapter for your further study. Congratulations are in order for the following divi sional contest winners: PRESIDENTIAL DIVISION United States Gypsum Company Plaster City, California Plant Manager - F. J. DeRooy CITATION DIVISION United States Gypsum Company Norfolk, Virginia Plant Manager - C. P. Anderson TRIUMPH DIVISION The Flintkote Company Camden, New Jersey Plant Manager - F. T. Gil Ian SGP 0012093 -3- PEERLESS DIVISION United States Gypsum Company New Orleans, Louisiana Plant Manager - P. W. Johnson A total of 21 plants recorded a zero frequency rate in 197**, and will be awarded a No Disabling Injury Award Plaque. Only 17 plants earned this honor in 1973. Although the industry's accident frequency rate has registered a welcomed decline after three successive increases, continued emphasis must be placed on personal safety in all oper ating facilities if we are to match the frequency rate of 3.00 as achieved ten years ago. SAFETY SEMINAR PROGRAM The revised safety seminar training program was presented near Shoals, Indiana for 28 supervisory personnel from two local gypsum plants. This was the first test of the regional seminar concept, whereby only those committee members who have plant personnel in attendance appear on the program. The seminar had previously been presented in Fort Dodge, Iowa and Huntington Beach, California. Various segments of the seminar presentation will form the basis of a slide cassette program which will be made available later this year. SGP 0012094 -4- Future seminars are planned for Lansing, Michigan and Buffalo, New York. LEGISLATIVE DEVELOPMENTS The committee has been closely monitoring the develop ment of several important standards to be promulgated by the Occupational Safety and Health Administration. An industry statement relative to a proposed standard regulating occupa tional exposure to noise is being readied for submission to OSHA. If adopted in its present form, this standard would limit an employee's exposure to a noise level of 90 db over an eight hour period; prohibit exposure to any noise louder than IIS db; necessitate the establishment of audiometric measurement for all employees with 85 db exposure; and require plants to develop engineered noise control programs. Another standard presently under preparation which will have an impact on the gypsum industry is a proposed standard to limit an employee's exposure to free silica crystals. The Association is watching the development of this standard very closely. The Safety Committee is also studying the problems associated with the dual jurisdiction of both OSHA and MESA in safety matters involving gypsum plants. The committee has re affirmed its position favoring the retention of MESA within the Department of the Interior. SGP 0012095 -5- The appointment of Mr. Frank Zimmerman to the Federal Metal and Nonmetal Mine Safety Advisory Committee has afforded the staff a unique opportunity to gain first-hand knowledge of the workings of that important body. Representatives of the Associa tion have attended two meetings of that committee to observe the development of new safety standards related to mining. Members of the Safety Committee met with NIOSH repre sentatives in connection with their preparation of a health and safety guide booklet, designed for use as a training and educa tional manual in gypsum plant operations. Copies of this booklet will hopefully be available in the near future. LIFT TRUCK TRAINING PROGRAM Sales of the new fork lift truck driver training program continue at a brisk pace, due largely to the favorable publicity which the program has received. The National Safety Council published a full page article about the program in the last edition of the Annual Industrial Newsletter. Future articles are scheduled to appear in OSHA's "Job Safety and Health Standards" magazine and in the American Society of Safety Engineers' "Professional Safety." To date, approximately 140 prints of "Oon't Drop the Ball" and 210 training kits have been sold to members of the Association and to related industries. Comments received from users of the program have been extremely favorable. SGP 0012096 -6- SAFETY BULLETIN ANO FLEET NEWSLETTER A new program requesting member companies to submit articles to the Safety Bulletin according to a definite schedule has helped to stimulate interest in this publication. Many plants have developed their own safety essay writing campaigns encouraging employees to write safety articles for use in local safety meetings. The best of these articles are forwarded to the Association for publication in the Safety Bulletin. Local programs such as these ensure the availability of articles covering a wide range of safety topics of immediate concern to the entire industry. SAFETY POSTERS Each gypsum plant has received copies of the six posters comprising the 1975 safety posters series. Having as its theme, "You Are the Key to Safety," the 1975 series features a pictorial illustration of six accident situations chosen after a careful study of industry accident reports. This photographic safety poster concept has been so well received by plant personnel that the committee is exploring the development of "Accident Alert" posters to advise the industry of significant accidents within one week of their occurrence. INDUSTRIAL SAFETY MANUAL The committee has begun work on the third edition of the Industrial Safety Manual. Present plans call for expanding the new edition to approximately 120 pages in order to accommodate SGP 0012097 -7- new chapters on noise and hearing conservation programs, dust abatement procedures and common hazards in gypsum plant opera tions. The new manual will be 3-hole punched to permit easy insertion into a loose leaf binder and spiral bound to lie flat when opened. Oata for the common hazards section of the new manual was compiled with the help of industry plant managers who were asked to identify common hazards which may be present in gypsum operations, and to specify ways of abating them. Participants in the regional safety seminar in Indiana were afforded the oppor tunity to review this data for accuracy and completeness during workshop discussion sessions. It is hoped that free exchange of accident prevention information of this nature will encourage plant managers to share innovative safety ideas which they develop with the rest of the industry. PLANT SAFETY TRAINING PROGRAM The committee is exploring the possibility of packaging the new third edition of the Industrial Safety Manual in an acci dent prevention package similar to the lift truck program kit. As presently envisioned, the package would contain copies of the new manual and a slide cassette presentation illustrating the common hazards abatement section of the manual, and some of the topics contained in the safety seminar program. This package SGP 0012098 -8- would enable supervisors who attend safety seminars to bring an effective safety training program back to their plants for pres entation to employees. A full oral report covering these items and other im portant safety committee activities will be given at the member ship meeting. Respectfully submitted, Chairman SGP 0012099 >t &0 GYPSUM ASSO C IATIO N SAFETY CAMPAIGN FOR THE TWELVE-MONTH PERIO D ENDING DECEMBER 3 1 , 1 9 7 4 0) X X X X I | X X X X X X I 44 U CD O tQ 44 l >i 44 Li H O tn H 0 u 0a X I X I I I I I I o 0 X I XXXX I 44 o S4 0 0 O OT * tr> vO 44 > ' (M 44 U i4 0 c t-4 D a 00 I I XX I X I 3 0 3$ 5 s# 1 4) SU roMror-cor-r-i-unpoint^vo 1 o vootninoo*'<*oinr'00ino 44 o o s -t CD t" r-( r-l r- CO * o in PO Oo o * ............. . . . . >1 0000NNNH(DNtsi40 5 0 u 4J H Li 44 0) 0 > tn 0 oooor-om,-ir-nnr'-a*cM o o oo mmoiuouoajHin ir)voa\cNmoD(j\csio\ CN If o *> CM a\ -i 0 mm 0 1 >1 44 i4 0 U 44 00 t o o o o m 0* r4 OOOOOMN o o o o pco* op* oco co (0 3 CO *4-1 44 oO >a 0 rl 0 r-l 44 c 0 C -H OOOOHNNH00IAPI0 OOOOOnoDOlOHOCOH lltltalltlll *0 01 ooooiCHin 0 H 44 Cl ooooonnio 1-1 0 C -HI * Li 44 0 44 OOOONNN^^WtfOf*) 0 OH ID HH ft e* 0. tn Li P 0 4) ooooncin 9ft OH B H o< m I--1 0X H 4) X c 4J 4) C c0 0 r4 0C H 0 0 c* 44 E *d 1 LL 0 X 01 0C ri 0 0> 0 r--1 op *44 >4 H *0 -H 0 Li X Lj 00 4> rl 0 > >*> u rH C0 0 0 *0 0* HH CH U0 H)B E 0 Li ,0 0 0 *0 G 0 X 0* 44 000 O iHO0 U 55 X X 0 h }m * 0 s 44 H >1 c -H i-4 o C 0 M 0* >iiH 0 0C 0 0 55 H a Li Li s 0 - - E-* H 0 0 H 0 0 0 0* Li i *rl fl X >1 C 0 * -H -H 0 X ' 0* X 4> 4) 0 vHCd^HZ a 0 44 *0 4) U 0 0 O>2 i Hb > Ol 0 H 44 Li ,C CO r-l 0EhCO Li U ,C 0 O _> H -H - 0* Hfi Li > _ O 0 1 - 0* 5H O 0 0 3 O 0*44 >0 - > *0 *0-0 0 i0 HHL 0 *w LH0 -L| C CH 5 0 Oi 4) *44 X SS 'CHOCS 0L>g0OOOOQEk Li r-4 >iU i-l I 0 44 0 44 9CH4) V-H 0 >1 0 0 O i Li >Hh Li 0 V 041 0 C^*M4>< Ch U *44 Li 14 44 4) 44 0 3 a 0 0 ft 3 0 -H U .X U 0 H 0 SOH ID 10 0 i 44 - 3 0 Li 0 0 0 H r4 > 0 44 ft 0 0 0 i-4 a 0X OiZCOOCOCOUbOft c to c 4-} 4 4 4 *0H % *0H >1 >1 >1 >1 >1 >1 t4 >1>t>10 >10 & 0 a 0 C0 C0 C0 C0 C0 C0 OGU C0 C0C0 -r>tC0 r>t c S5 ^ CO W 10 O OS 0 >c1*oO* >c1 c>1 >c1 >c1 >c1 a 0W 0 0 0 0 0 0 X +j 44 c 0 i-4 fEt 9E* 9E* 9E* 9E* 9E* OOOOOOC gEo*- B6o. *o_ Q go*-Q* uoouououou 01 0 5 H la 9E* * 9E* BE* 9E* 9E* 9E* 0 uo oc oo oo upuouo s (0 MwmnoouioowSoS n iiiii4) .a 0u 00000 4> c 4) c 8,6 && <u OOQUOOhOOOUOO 0 O *rl *rl 0000000 00044044 6 u u0000 0 oo 0 0 0 0 a o o a 000000 000404 4444444J4444 X444444 044 O 0000000000000 0 H r-4 0 00000 404 0x 044 04) 044 04)044 CM T-- s C4J04C40C44Q4C404C404C404O4C404C404C4Q4QI<4W40Il Q a 0 Li 44 44 44 4) 44 4) 44 CO O CO CO CO CO CO O o 44 a0 i--I 0 0 *o *o *0 *o *o *o 0'OTj'O-ri'O-H 00000000000*00* 4J 3 0O 0,4= r-4 *0 0 *0 *0 *0 *0 *0 0000000 a CD 4)4444444444 44 44 44 Li 4) Li 4* 44 4) 44 44 44 (0 H -H -rl -rl -H -rl 0 -1-1 T-l -H O t4 o CCCCCC,CCCe0C0 r-l 3 iH 0 rl 0 rl rl rl 'H `H c jc c c c c a <E c ita tio n (C ontinued) SGP 0012101 (>01 0 M-i UO <40-4 to I 4>44 U H 5> r4 O 00 3 0) a >< t I IXI I I IIIIIII <v r2/i 4> 0 o as *! 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UaeJ SGP 0012103 F re q u e tv R ates t" O' >1 o o tn r* m o n oi s m *> r \o 101 o\ (N in 04 o O' 0V 00 *0 in in *0 tn l o*4 omi 01 oO H CD *0|O o >o C ml 4) 4) u0) 04 Pm O' O' 1 ^4 O O' O' O' O' cd r* a O' 3O G Vc c J(4 rH S*xrl 0 O m o o H a <5 u a 4C4 cH X HrH 0Q ft X o in m vo ^ l 04 o NO H 04 O The In d u s try OSHA ra te Is 8.QU T o ta l Number A ccid e n ts T o ta l Number M an-Hours rlO'fl'C 04 O VO <N lO in OOi^iO 0 % od co m oo in ^ min 04 --4 04 OJ 01 m H *> 10 c0) to .p ,cno *Ho bE,"t tu to t3-4 u U UV Ou Ei OU U 4) in P 0O'1f*1WWO00O4OCVMO'O 0in*-i<-i0'0'0'0' 04 in o aH (0 c 0P a H h 6 h ffl o m rs 'tinovoot'-r'invo min in in t* vo n 01 O' * 1 in r-4 04 01 in >-t *1 <0 o H >P4 X 4J 'ru'iooinvOtoinovooin^'oO o o m nr) nrn .-4 <*> co 0 *-i co oo O' 4) 3o c u 0 -4 m O 4J >0 p 3 c >4 14 O a 0H s CO 5* (4 Uf uO Mo It) to 5 x a3 x mo m G C to to 10 4i C -4 O H E- 4J iC4 O(0 -H Xx P oH *44 P s 144 O * m *44 +4 . o G Or4 u ov P^ o* 3O GO tm4 G >1 3 c X p 14 S X 'Ou o 00 *cUHn x 04 W SGP 0012104 REPORT OF THE TECHNICAL COMMITTEE TO THE MEMBERSHIP MARCH 17, 1975 The ninety-fourth meeting of the Technical Committee was held February 12, 13 and 14 in Arlington, Texas. The meeting was attended by 10 representatives from six companies, five Association staff members and legal counsel. The proposed combining of various gypsum board product standards was discussed. It was the consensus that an ASTM standard along the lines of the current Federal Specification, which combines all gypsum board products, would lead to complete confusion. How ever, it may be possible to reduce the number of board product standards from eight to four. It was pointed out that considera tion must be given to product identification for building codes. It appears to the Technical Committee that there are three phases to the conversion to metric measure. The first phase involves those measurements that affect the entire construction industry. These measurements would include width, length, and thickness only. Phase two would involve those measurements that affect only the gypsum industry, such as transverse strength and other properties as specified in ASTM Standards. Phase three would be those measure ments that are strictly individual company decisions, such as bag sizes. The list of metric conversion proposals previously submitted to all interested committees is being re-worked into these three groups for re-submittal. SGP 0012105 2 It is indicated that, on metric conversion, the lumber industry intends to again reduce the size of dimensional lumber. It was the consensus of the committee that reduction in the width of any framing members to which gypsum board products are applied should be strongly opposed. Further discussion of this will be given in the chairman's verbal report. Work on the proposed specification for predecorated gypsum board is progressing. A series of round robin tests have been set up for evaluation of test methods. Proposal has been made to ASTH Committee C 11 for the addition of 5/16" board to the applicable standards. The Building Code Committee recommended that the Technical Committee conduct a series of racking and lateral fastener movement tests on gypsum sheathing. This recommendation was modified by the Technical Committee to include only the new 5/8" type X sheathing over wood framing. Since specifications for 5/8" type X sheathing have not yet been developed, the program will be delayed until such specifications have been published. A satisfactory bench test for type X board has been developed and will be presented to ASTM Committee C 11 for inclusion in the board testing specification (C ^73). In the meantime, individual companies should test their respective regular and type X board products using this test to determine what product specification revisions are needed. SGP 0012106 -3- Potential heat values on gypsum board products are rather meager and those that are available are possibly questionable. Since these values are quite important in determining combustibility in the three part definition of noncombustibility, it is essential that upto-date information be obtained. The Building Code Committee recom mended that the Technical Committee develop a program to obtain potential heat values. The Technical Committee recommends that tests should be run at Underwriters1 Laboratories, Inc., if possible, and that the program be implemented as soon as possible. The four plaster application standards (lath, full thick plaster, veneer base, and veneer plaster) that were expected to be approved by ASTM received a number of negative ballots. Revisions, to satisfy the negative voters, were made at the ASTM Committee C 11 meeting in January and will be submitted to ballot again. Hopefully, these will be promulgated before the end of the year. It appears that the ASTM Standard for the application of gypsum wall board is at an impasse in Committee C 11 and may take years to resolve. However, since the Association recommended practice has been published, there is no real urgency. Several minor revisions are being made in the Association publication in preparation for reprinting. The Technical Committee, by unanimous vote, advised the Association staff to (1) vote negative on all board application standards that weaken the recommendations for application of spray textures to board, (2) promote the adoption of the Gypsum Association SGP 0012107 -k- recommended practice publication to architects, code bodies, etc. and (3) take the steps necessary to withdraw ANSI Specification A97.I since it is outdated. A survey of vapor barrier recommendations in radiant heat installations was made. It was determined that there is a conflict among electric companies in their recommendations. Therefore, a task group was appointed to completely review the vapor barrierventilation problem as it pertains to our products since considerable emphasis is being placed on increased insulation. It is anticipated that an industry recommendation will result from this review. A number of aspects of the use of gypsum board in mobile homes were discussed in detail at the Technical Committee meeting. It is recommended that maximum emphasis be placed on programs in volving the use of gypsum products by the mobile home industry since this represents an extremely large potential use for our products. Mobile home burn out tests at the National Bureau of Standards apparently emphasize the need for more incombustible construction. The Technical Committee therefore requests Board of Directors approval to develop (I) application standards for gypsum board in mobile homes (not just the critical areas approved at the last semi annual meeting) and (2) a fire test program possibly using non standard test procedures to simulate mobile home fire conditions. Further details will be discussed in the chairman's verbal report. SGP 0012108 -5- The application of gypsum board over plastic foam was discussed. It was recommended to expand this section in the board application standard to include mechanical fastening at the top and bottom of panels over plastic foam as a minimum requirement. The Building Code Committee recommended that the Technical Committee develop a fire test program to determine finish ratings of gypsum board over plastic foam. This program is to be presented to the Society of the Plastics Industry (SPI) to conduct the tests since the Federal Trade Commission is requiring SPI to spend considerable money to minimize their combustibility problems. The Technical Com mittee would offer the SPI technical advice in this area. If the SPI is interested, such a program can be developed. After considerable discussion about "mini-ratings" (fire endurance ratings of less than one hour), it was decided to return this program to the Building Code Committee to determine what ratings are required for compliance with codes. This will require a deter mination of the validity of existing ratings and where gaps exist that require up-to-date tests. It was unanimously recommended that gypsum products from at least three companies be used on all future industry spon sored fire and sound tests. The committee recommends the Association testing program be continued. It is proposed to conduct fire tests on one and two hour chase walls with steel studs and gypsum board gussets. In addition, during the next fiscal year, the intention SGP 0012109 -6- is to run-one staggered wood stud partition and one floor-cei1ing (design to be determined) fire test plus 12 sound transmission tests to update the design manual. Further explanation of this pro gram will be given in the chairman's verbal report. The members of the Technical Committee were requested to review their company's position pertaining to hose stream tests that are conducted as a part of fire rating tests per ASTH Specification E119. It is proposed that the industry may attempt to eliminate this requirement. This proposal was the result of discussions on the testing of elevator doors in shaft walls. The doors may transmit water during the hose stream test but no water may pass through the juncture between the door and the shaft wall. At the request of the Building Code Committee, a task group was appointed to develop a testing program to compare the structural integrity of gypsum shaft walls with masonry shaft walls. The revised ASTM Specification for gypsum wallboard has been issued eliminating weight as a requirement but specifying performance criteria. However, the Federal Specification "Lath, and Board Products, Gypsum" still maintains the now obsolete re quirements. It was unanimously recommended by the Technical Com mittee that the Association staff should do everything possible to bring the Federal Specification in line with ASTM and to eliminate the word "Lath" from the title. SGP 0012110 -7- Mr. Brackett advised that HUD now has money for research should the gypsum industry wish to become involved with them in any program (such as the partition-ceiling intersection program outlined several years ago). It was suggested that we may wish to discuss mobile home fire testing and possibly obtain financing from them. Mr. Lawson, Association Research Associate, gave an ex cellent report with slide presentation of the activities at the National Bureau of Standards Fire Research Section. The report in cluded various aspects of the Bureau work as well as his own acti vities. The program outlined in our last report to the membership is being followed. However, it appears that it will be some time before significant work is done with the new fire testing facilities at the Bureau because of equipment problems. Copies of the final draft of the I975_76 edition of the design manual were distributed at the meeting. The members were advised that final review had been accomplished at the last meeting. If there was anything in this final draft that was in complete error, the Association office should be advised within one week, otherwise the draft would go to the printers. A cost estimate was obtained to conduct the high rise sprinkler trade-off study discussed at the last membership meeting. Such a study would involve the equivalent of construction drawings with and without sprinklers with cost estimates from general and SGP 0012111 -8- subcontractors in excess of $5000. Therefore, one of the members estimated savings of sprinkler trade-offs in a new high rise office building. It appears that we lose very little with the trade-offs except by the elimination of the two-hour compartmentation (places of refuge). This being the case, the Technical Committee recommends that no money be spent on a survey by an outside consultant. Further explanation will be given in the chairman's verbal report. During the course of his work at the National Bureau of Standards, Hr. Lawson tested some predecorated plywood imported from Southeast Asia. He reports that when exposed to direct flame, the surface of this plywood bubbled up and produced an impressive, one inch thick, intumescent char that kept the wood from igniting after 8 minutes in the flame. Small samples of this material are in the possession of the Association staff. The Technical Committee recom mends that analytical tests be made on this material by at least two member company laboratories to determine the composition on this coating. Results would be distributed to member companies for dis position as they determine appropriate. Board of Directors approval of this recommendation is requested. Respectfully submitted, John D. Shul1, Chairman SGP 0012112 REPORT OF THE BUILDING CODE COMMITTEE TO THE MEMBERSHIP MARCH 17, 1975 Five Association member companies were represented at the Building Code Committee meeting held in Evanston, Illinois last February 10. The meeting, held in a central location, re sulted in good attendance by company representatives assigned building code responsibilities. A full agenda was completed during the day and some new subjects were considered as well. Recently, significant changes have been reported to the definition of noncombustibility. The American Insurance Associa tion's National Building Code will contain a revised definition which includes new terminology - "limited combustibility," and will require potential heat tests of materials in order to deter mine whether their classifications are noncombustible, limited combustible, or combustible. The revised National Building Code is expected to be published in July 1975. The National Fire Protection Association is currently revising their Standard 220 to reflect the AIA definitions and it is expected that the NFPA revision will be approved in May 1975. Efforts of the staff, member companies, and a number of respected individuals in the fire protection field to combat the change to NFPA 220 have been to no avai1 . Because gypsum board products have low potential heat SGP 0012113 -2- values, it was determined that our advantageous position should be reaffirmed and the Building Code Committee therefore recom mended the Technical Committee consider a program to determine the potential heat values of all gypsum board products both by test and by calculation. The committee considered questions relating to the protection of foam plastics used in building construction. Further, the effects on sound transmission of doors in sound rated walls was discussed. Both of these topics were referred, with recommendations, to the Technical Committee for study. In regard to model code activities, the staff was re quested to continue their efforts to update standard references, including the 1975-76 edition of the Fire Resistance Design manual, and various ASTM Standards. Other considerations involved proposed changes to ICBO research recommendations and their Uniform Build ing Code. Activities related to the Southern Standard Code and the BOCA Basic Code were also reviewed. Staff members 0. E. Brackett and M. C. Smith were commended for their excellent efforts in maintaining and promoting our interests in building codes. Progress in mobile home activities was reviewed in detail. No action was taken to stipulate flame spread ratings SGP 0012114 -3- for gypsum products below 75. The consensus of the committee was to recommend promotion of the use of gypsum board in mobile home corridors, around heater units and behind stoves. Various state building codes were reviewed and most reports concerned the activities in highly populated areas, such as California (including the California State Fire Marshal), New York and Ohio. The City and County of Los Angeles, San Francisco, Chicago and New York City are focal points for continuing, code problems in the areas of high rise regulation, trade offs, and code enforcement. In considering reports of product performance, and the effect ASTM standards have on them, the Building Code Committee was especially concerned with sheathing. As a result, the Build ing Code Committee recommended the Technical Committee conduct racking tests on 1/2 inch and 5/8 inch four feet wide gypsum sheathing to provide data that current products will meet current requirements. The committee agreed that an industry one hour fire resistive floor-ceiling assembly with wood joists spaced 24 inches on center is needed. The Technical Committee was to.be asked to provide this. SGP 0012115 -4The committee recommended that the staff promote code acceptance of the new Association publication "Recommended Speci fications for the Application and Finishing of Gypsum Board" in all the model and other building codes. ANSI A97-I dated 1965 is outdated. The ASTM version of the standard is still in C-ll Committee and approval may be one or two years away. The policy governing Building Code Committee activities was reviewed, revised and approved. The recommended budget for Building Code activities, including staff participation, does not involve any new items and is slightly less than last year. We recommend its approval. The Building Code Committee plans to hold its next meeting in the New Jersey area, near New York City and other major east coast cities in conjunction with the Technical Com mittee meeting scheduled for the first week in August. Respectfully submitted, SGP 0012116 REPORT OF THE TRAFFIC COMMITTEE TO THE MEMBERSHIP MARCH 17. 1975 The Traffic Committee held its winter meeting in Tampa, Florida on January 27-28, 1975. CAR SUPPLY PROBLEMS "Rai1 box," a railroad owned car pool of free-running box cars is now in operation. The period for railroads to file for participation has been extended to July 31, 1975. The I.C.C. approved plans by which a fleet of box cars will be available to participants on a nationwide basis, without routing restriction. A considerable number of railroads throughout the nation are now participating, with a large number seeking approval to join the plan. This program will greatly relieve the car shortages experienced in recent years. The present car supply situation is very good for shippers, but bad for railroads. With business in a recessed state, car loadings are down considerably, providing ample supply of all types of rail cars. Vie anticipate that the Rail box plan will help considerably when business improves and rail cars are in greater demand. SIZE AND WEIGHT LEGISLATION (S. 3934) As previously reported, the Traffic Committee has been quite active in proposed legislation dealing with increasing of motor truck size and weight. These efforts were directed toward SGP 0012117 -2- passage of Senate Bill 393** - Federal Aid Highway Act-197**, which the President signed into law on January *, 1975- Generally, the law increases single-axle truck weight limits from 18,000 to 20,000 pounds, tandem-axle weight from 32,000 to 3**,000 pounds, and the gross vehicle weight from 73,280 to 80,000 pounds on Interstate Highway System roads. The bill was bitterly opposed by the American Automobile Association, the railroads, and Ralph Nader, among others. Since passage, a movement has risen in the new Congress to repeal the law. Two such bills are now in the House Public Works Committee and are being watched closely by the Association. Application in individual states is predicated on either existing state laws which allow immediate application, or upon legis lative action and/or initiation of action by the governor. The Traffic Committee has a task force seeking to determine application in individual states relative to location of members' manufacturing or mining operations. ICC TARIFF USERS ADVISORY COMMITTEE On March 5, 197**, the I.C.C. initiated a rulemaking proceed ing for the purpose of establishing regulations to govern the transmission and furnishing of tariffs and schedules by carriers and their agencies, to subscribers and other interested persons. This proceeding is listed as I.C.C. Docket No. 35613. In April 197**, your Traffic Committee SGP 0012118 -3- initiated a verified statement of facts, views and arguments, for presentation to the i.C.C. in this Docket, supporting the Commission in its proceeding to provide tariffs to subscribers at a reasonable cost and in a prompt manner. On February 6, 1975. the Commission served its report and order, and issued new rules to become effective 90 days following the date of the order. Generally, these rules provide that tariffs be mailed to subscribers not later than the time they are transmitted to the Commission, and that special expedited means for dispatching tariffs be made. Long a problem between carriers and shippers, it is hoped this action will provide a more suitable arrangement for the future. LEGISLATIVE SUBCOMMITTEE REPORT A number of legislative bills, relating to transportation, have been or are presently pending in Congress. The more important of these are summarized briefly. Northeast Regional Rail Reorganization Act This law is important since it is still progressing toward completion under a timetable. Briefly, the more significant dates are: February 26, 1975, issuance of the preliminary system plan by the United States Railway Association, followed by hearings and subse quent evaluation leading to submission and approval of a final system to Congress on July 26, 1975, all leading to a hoped for January 12, 1976 conveyance of rail properties undergoing reorganization to Con solidated Rail Corporation (Conrail) for operation. SGP 0012119 -4- Sinee the "Act11 was signed into law, there arose some doubt as to the constitutionality of the law by way of litigation having been initiated and a subsequent adverse opinion by a lower court. In mid-December the U.S. Supreme Court reversed the lower court, and found the "Act" constitutional. Thus, giving the go ahead to those concerned with promulgating the law to completion, and hopefully to reincarnating a viable railroad. Transportation Improvement Act of 1974 - H.R. 12891 Authored by the D.O.T. and introduced by Representative Staggers, (D. W.Va.), H.R. 12891 was for a time in contention along with H.R. 5385, the Surface Transportation Act, for the leading transportation legislation in 1974. Eventually, parts of this bill were merged into the Surface Transportation Act and went to Joint Committee for mark-up. This bill is now dead for all practical purposes, since its most desirable features have been stripped and written into the revised H.R. 5385 - Surface Transportation Act. Surface Transportation Act - 1974 (H.R. 5385) In the waning days of the last Congress, in mid-December, a serious effort was made to pass some sort of transportation measure, adequately compromised to satisfy all concerned. As mentioned, the best parts of H.R. 12891 were joined with H.R. 5385 to form an amended version of H.R. 5385. This amended version passed the House by a large majority. Briefly, its purposes SGP 0012120 -5- were to restore and maintain a healthy transportation system, provide financial assistance, improve competitive equity among surface trans portation modes, and improve the process of government regulation. This bill was passed by the House, and simultaneously they permitted variation of this passage in order to set up a joint House/Senate consideration of Senate Bill S. 1149 (Senate version of H.R. 5385), contingent on inclusion into S. 1149 of language contained in H.R. 5385. This action put the focus on Senate consideration. On De cember !7,1974, the Senate Commerce Committee voted to take no action on S. 1149, thereby precluding any further consideration of the Surface Transportation Act in that session of Congress. In his State of the Union address, President Ford asked the new Congress to pass quickly various transportation proposals ad vocated by his administration, prominent among these was the Surface Transportation Act. Regulatory Reform - Regulation vs. Deregulation President Ford asked Congress to create a "National Com mission on Regulatory Reform," to identify and eliminate federal rules and regulations that increase costs. Since then almost every body has gotten on the "reform" bandwagon. The opinions and sugges tions range from shipper and shipper groups seeking more freedom in private carriage to carrier groups, particularly motor carriers, seeking tighter restrictions on private carriage, tougher requirements on entry into common carriage, and more freedom in bureau rate making, to mention a few. SGP 0012121 -6- Congress has obliged the President with numerous bills introduced and now mostly languishing in committees. The opinions range from complete deregulation on the one hand to more regulation on the other, with as many shades of gray in between as there are opinionated people. This situation will be watched closely, as there are ramificat ions which could greatly affect our member companies. Motor Carrier Improvement Act of 1975 This proposal has not yet been sponsored in Congress, but is essentially a rough draft or general outline of the DOT'S latest thoughts on regulatory reform, particularly as they hope to apply to the motor carrier industry. Some of the more significant changes they hope to achieve are described very briefly. Details are rather sketchy at this point and may change considerably before any constructive action is actually taken. 1. New rules for entry into motor carrier business. 2. Prevent Commission suspension of general rate increases not exceeding 8%. 3. Define compensatory rates as equal or above cost of providing the service. 4. Allow use of federal highway aid funds to assure con tinued service over abandoned rail lines. 5. Allow use of Highway Trust Fund monies to reconstruct and maintain roads necessary in lieu of abandoned rail Iines. SGP 0012122 -7- 6. Certain revisions to present rate bureau regulations. 7. Allow private carriers to move traffic for affiliated firms. 8. Remove l.C.C. authority over time limits on leasing by private and common carriers. 9. Redefine commercial zone rules. This may well become a major legislative bill and will bear careful surveillance in the future. GENERAL RAIL FREIGHT RATE INCREASES The last rail freight rate increase was Ex Parte 305"A, effective June 20, 197**, which included a 3.3% fuel cost surcharge and then a general increase of 10%. The railroads proposed to increase the fuel cost charge from 3.3% to 3.5% on August 10, 197**. This was actively protested by many shippers, including members of the Traffic Committee. The l.C.C. suspended this proposal and the matter is now pending. Protest briefs have been filed and reply briefs are now due. The suspension runs to March 9, 1975, so we anticipate a final decision very soon. On November 15, 197**, the nation's railroads filed with the l.C.C. a petition to increase rail freight rates by 7%, to become effective on January 1, 1975* This petition was docketed as Ex Parte 310. The Commission authorized the carriers to file for a 7% increase to be effective no earlier than February 5, 1975, subject to protests SGP 0012123 -8- and hearings. They subsequently filed their increase tariff, with the Chessie Railroad flagging out of the increase due to their running disagreement with the I.C.C. over the X-305-A increase of 10%, and the restrictions placed by the Commission on revenues derived from that increase. On January 30, 1975, the I.C.C. ordered the proposed X-310 increase be placed under suspension and further ordered the investiga tion be continued to determine the lawfulness of all the rates, charges and regulations. A variety of factors contributed to the suspension of the 7% increase proposal. There were some roads that could not take the increase; for instance, the Penn Central, due to the Chessie System's refusal to go along with the hike. Such an increase would have diverted a tremendous volume of tonnage from the Penn Central to the Chessie, resulting in the line needing the increase the most losing business, while the line not needing an increase, obtaining a sudden rash of new business. Other roads did not need the increase, and the rate hike to these carriers would only serve to further an inequity of revenues. Still other carriers could not justify such an increase, resulting likewise in an inequity of revenue distribution. SGP 0012124 -9- While we can, in all fairness, see that some carriers need financial relief from today's high costs of operation, we can also see that many carriers are financially sound, that their equip ment and facilities are, in many cases, more than adequate, and that their current revenue levels are sufficiently adequate to meet their needs. The Commission's decision, we feel, was compelled by the rail roads' inability, or lack of desire, as the case may be, to unite and rectify their individual problems to their mutual need and satis faction. Suffice to say, if they can't get together and solve their revenue needs as they apply to each, we don't feel that the Commiission should solve the problem for them. The railroads are now faced with additional labor expenses as a result of their 1975 settlement costs. Wage increases are effective on January 1 and October 1. As a result, on February 21, 1975, the carriers petitioned the Commission to lift its suspension of the 7% proposed X-310 freight rate increase. Of course, this is still contingent on the Chessie joining in the increase. On February 20, Mr. Stephen Ailes, president of the Associa tion of American Railroads, announced plans by the railroads to peti tion the I.C.C. for a 5.4% freight rate increase to cover a 10% labor cost increase which became effective on January 1, to be filed about March 5. Additionally, they will seek another 2.7% rate increase to cover an incremental 5% wage boost effective October 1, 1975. SGP 0012125 -10This 8.1% wage related freight rate increase is in addition to the 7% increase now under suspension, and which the carriers are asking for reconsideration. MOTOR CARRIER GATEWAY RESTRICTIONS. EX PARTE 55, SUB. 8 This subject was discussed in our report to the membership, September 16, 1974, at considerable length. At this time, we wish to merely update information relating to this active and ongoing subject. On December 4, 1974, the Commission issued an order adopting new procedures for handling applications under Section 5, paragraph 2 and Section 212, paragraph b of the Interstate Commerce Act, where joiner or separate regular routes are proposed and provisions of Ex Parte 55, Sub. 8 - Gateway Eliminations, are pertinent. As this matter relates to certain sections of the Inter state Commerce Act, the explanation becomes highly technical and immersed in legal language. Suffice to say, the procedures spell out in detail what is necessary to obtain Commission approval in applications seeking to eliminate gateways, thus further reducing certain practices hereto fore considered wasteful and unnecessary. SGP 0012126 -11- NEW BUSINESS Ex Parte 311 - Fuel Related Increases On January 31 1975, the I.C.C. Instituted a rulemaking proceeding to determine the effects of the President's Proclamation 3279, increasing the fee on imported crude oil and other conservation measures being considered by Congress, upon carriers subject to the Interstate Commerce Act. Through these hearings, the I.C.C. hopes to make definite rules and procedures for carriers to follow in order to pass through the expected increases for fuel. Already proposed is a plan to permit regulated carriers to file for fuel related increases on 10 days' notice. This will be similar to Special Permission 74-1825 issued by the Commission in 1973 during the fuel shortage. Normally, carriers are required to file on 45 days' notice for rate changes. In February 1974, motor carriers were permitted to impose surcharges of up to 6% on 24-hour notice. This aroused the ire of shippers no end. Obviously, different provisions must be provided for the different modes of transportation, in order that a fair and equitable balance can be maintained for all, particularly as we, the user and payer of the transportation service, are concerned. It is estimated that the trucking industry's motor fuel SGP 0012127 -12- bill will be increased by $1,380,000,000 a year as a result of just the $1.00 import tax increase effected on February I. At this writing, all kinds of proposals and suggestions are being "kicked around," and we anticipate considerable give-and-take before the matter is finally resolved. As this situation is now developing, and based on experiences gained during last year's "fuel related increases," a few significant aspects are coming into focus. One is whether the increase should be in the form of a bottom line surcharge," or a "rate increase." A bottom line surcharge is the easiest to apply and administer, and also the easiest to take off when the necessity for the increase ceases. A "rate increase" means that the rate used in determining charges is increased. This rate is usually determined from tables of rates, which in turn are related to distance, commodity, weight, etc. Rate tables require a great deal of time and work to prepare. They must be "worked up" by individuals or computer, typed or printed, stapled or bound (depending on how sophisticated the operation). Short notice changes are extremely exasperating to all concerned, due to the amount of work involved, the urgency of doing it and inability SGP 0012128 -13- to "get the information out" by the time the changes become effective. Another very crucial problem is the so-called "across the board" flat percentage increase, applying on all freight, regardless of class or weight. Two very important factors to be considered in rate-making are, class or classification of commodities, and the weight of a shipment. Classification means classifying goods according to their inherent characteristics. Weight concerns the amount of freight tendered, be it small or large less-than-truckload lots, or full truckloads, or full muliple truckloads (or rail carloads as the case may be). A further report covering industry transportation subjects of interest will be made at the annual meeting. Respectfully submitted, Chairman SGP 0012129 REPORT OF THE PROMOTIONAL COMMITTEE TO THE MEMBERSHIP MARCH 17, 1975 The Promotional Committee is holding its spring meeting March 6, 1975 in Hot Springs, Arkansas. This report is being pre pared prior to that date. A full report on activities at that meeting will be presented in the oral report to the membership at the annual meeting. GYPSUM ASSOC IAT I ON/iaWCC LIAISON ACTIVITY The Board of Directors has directed that this liaison program be coordinated through the Promotional Committee. Its pur pose is to pursue mutually advantageous programs. iaWCC has outlined these objectives: 1. Image and Identity - iaWCC wants to establish that they represent contractors in all the wall and ceiling market segments: drywall, plastering and acoustical, primarily, but also in the "sub-segments" such as shaft wall, integrated ceilings, demountables, curtain wall, wall tile, etc. 2. Education - They feel that the key to broadening their membership is providing educational services and that such services are particularly needed by the emer ging contractors they hope to attract. The educa tional effort they envision is broad and would in- SGP 0012130 -2 elude product and systems, management techniques, legislative and code work as well as other subjects. 3. Information - They wish to outline to the manufacturers their long range plan of services centering around their new magazine, CONSTRUCTION DIMENSIONS. We want to further our own objectives of educating and in forming this important group concerning the latest technical and legislative activities concerning our industry and enlist their support with particular problems such as trade-offs, limited combustibility, mobile homes, shaft type walls, etc. where they may assist us at the local level. The first liaison meeting with iaWCC is being held in con junction with the Promotional Committee meeting March 6 and a report will be given at the annual meeting. TRADE RELATIONS The Gypsum Association continues to maintain amicable relations with all related trade factor groups. The Association will present a symposium on gypsum drywall at the GDCI convention in Holly wood, Florida, March 9-13, and will also host a reception for the con tractors in the exhibit area. The Association also presented a series of three highly successful two-day seminars on drywall for iaWCC during the past year. SGP 0012131 -3- We will not be participating in iaWCC's convention this year since it is being held in Hawaii and the Association has been instructed by the Board of Directors not to participate in any convention activity outside the continental limits of the United States. LITERATURE By the time this report is distributed the 1975--76 edition of the Fire Resistance Manual will be at the printers and should be available for distribution in late April. This book is receiving ever* widening building code approval and making an increasing number of architects, designers, insurance personnel, etc. aware of the fire resistant, sound control, and structural qualities of gypsum assem* blies. An initial press run of 50,000 is planned. Our new "Gypsum Association Recommended Specifications for the Application and Finishing of Gypsum Board," printed only three months ago is already scheduled for reprinting. More than 13,000 copies of this interim document have been distributed to building officials, architects, designers and contractors all over the country. It was prepared by the Technical Committee to fill the void between the outdated ANSI A97.1 and the as yet uncompleted ASTM Standard. Our general promotional publications "Gypsum in the Age of Man," "Using Gypsum Board for Walls and Ceilings," and the "Manual of Gypsum Veneer Plaster" continue to be in heavy demand; several other SGP 0012132 -4- publications are in the preparation or production stage, including a new gypsum sheathing brochure and a revised and updated edition of "Using Gypsum Board for Walls and Ceilings." BALANCED PROTECTION The Gypsum Association is actively promoting the concept of "balanced protection" against high rise fires. The key elements in "balanced protection" are: early detection and warning, contain ment, suppression, control systems, a rehearsed evacuation plan, and fire services properly trained and equipped. It is stressed that no single one of these elements should be sacrificed at the expense of another. News releases to this effect have been dis tributed to major daily newspapers for their information and ref erence and a special mat service story has been distributed to 1700 daily and weekly newspapers throughout the country. Our film on the subject, "Fire on the Rise, A Study in High Rise Safety" is now completed and will be screened by the member ship at the annual meeting. The film was produced by the Walter J. Klein Company and the Gypsum Association, along with five others, was a co-sponsor. It will be distributed by the Klein Company to TV stations all over the country as well as interested groups. It will also be available for use by the Association. Staff members have been promoting the concept of balanced protection on a personal basis before building code group meetings and wherever else appro priate. SGP 0012133 -5- INDUSTRY IMAGE PROGRAM The purpose of this program is to counteract the negative attitudes toward big business which are prevalent today. Specifically our efforts were to be directed toward explaining the benefits of the free enterprise system in general and how the gypsum industry functions within that system to several potential audiences: our own employees, trade factor groups and distributors, the construction industry as a whole, the general public and any other specific appropriate audience. The first step was the preparation of an appropriate talk on the subject to be aimed at our own employees. This speech was reviewed at the semiannual meeting and has since been used in the field with considerable success. The speech has been distributed through the corporate level of our member companies where it also is being passed along for use in other divisions. The speech has also been shown to corporate officers of other companies who have requested and received permission to adapt the speech for use with their own employees. This is a gratifying step since it is going to take a long range effort on the part of alI business to effec tively counteract the current anti-business sentiment. The second step in our own program was to revise our initial speech for presentation to trade factor groups. This re vised speech is now available and will be presented for the first time by Mr. W. D. Herbert of the Celotex Corporation who will be the key note speaker ar the GDCI convention in Hollywood, Florida. Future efforts in this area will be discussed by the Promotional Committee at their upcoming meeting. SGP 0012134 -6SHAFT-TYPE WALLS A feature pictorial article on the opportunities available for the use of shaft-type walls will be featured in the April conven tion issue of iaWCC's CONSTRUCTION DIMENSIONS magazine. The article, prepared by the Gypsum Association staff, is aimed at motivating the contractor to help promote the use of shaft-type walls and thereby increase his share of the contract. BUDGET The Promotional Committee will review the 1975-76 promo tional budget for literature, publicity, and trade factor at their March 6, 1975 meeting. Respectfully submitted, Robert J. Day, Chairman SGP 0012135 REPORT OF THE MANUFACTURING AND MINING COMMITTEE TO THE MEMBERSHIP MARCH 17. 1975 The Manufacturing and Mining Committee held a semiannual meeting at Ojai, California, on October 8, 197*+ and will hold its next meeting in Chicago on April 1, 1975- Highlights of the committee's activities follow. LAND PRESERVATION AND RECLAMATION The joint land reclamation efforts carried on by the members operating in the Fort Dodge area over the last two or three years were brought to temporary conclusion late in 197*+, with the preparation of models and summary reports presented to the membership at the semi annual meeting. No further joint activity is currently underway, or planned, subject to further consultation at the April 1 committee meeting. The results of that consultation will be reported verbally to the membership at the annual meeting on April 2. Also in the area of operations around Fort Dodge, the joint effort to amend the Webster County zoning regulations was successfully concluded in December 197*+, with acceptance by the V/ebster County Board of Supervisors of the industry's requested amendment to the existing regulations. Of particular significance in this amendment was the revision of the original set-back provision from 150 ft. to 50 ft., thereby permitting reclamation of some 10,000,000 tons of mineral which otherwise would not have been available to the in dustry. SGP 0012136 -2- ENVIRONMENTAL MATTERS We have in the past reported to the membership concerning an air emission study authorized by the EPA and made by Processes Research, Inc., which was completed in 1973. There still has been no further activity in connection with this study - such as publica tion of guidelines in the Federal Register - so that we conclude that the EPA has decided that.local, existing emission standards are sufficient to control the industry, and thus no national stand ards are required. During 197**, the EPA contracted with VerSar Inc. to produce a study of the gypsum industry in connection with water effluent from mineral extraction and the board manufacturing process. The study has now been completed, and the contractor's report is in process. Representatives of the Manufacturing and Mining Committee have met with the contractor to review his data p^'or to the preparation of the report. It is apparent that the contractor will contend that in dustry gypsum plants can, in most cases, be expected to operate in completely closed water systems and that guidelines supporting that position are likely to issue, except in cases where scrubbers may be used for dust control. V/e anticipate that publication of whatever guidelines are finally proposed will occur about September 1, 1975, with a 30 day comment period and enforcement approximately 90 days thereafter. SGP 0012137 -3- It is recommended that the members be alert to the publica tion of these guidelines and that both the Association as a whole and members as individuals be prepared to react to the guidelines as in dicated by their final content. While industry activity here apparently will not be success ful in eliminating designation of the industry as one which can operate closed plant systems, we were successful in increasing the minimum water requirement perhaps tenfold from the conclusion which the con- * tractor had reached independently. ENERGY Our report to the Association at the semiannual meeting in October indicated that the industry energy study, conducted by Stanford Research Institute in which the Manufacturing and Mining Committee had cooperated, had been completed. The final report prepared by SRI was reviewed and necessary corrections were filed. Subsequently, still another government study - this one authorized by the U.S. Bureau of Mines - has concerned itself with our industry. The Battelle Institute, Columbus, Ohio, contacted the Association late in 197*+ for assistance in their study. Here again, we elected to cooperate with the study so that we would have review opportunity when their final draft was completed. SGP 0012138 -k- A third energy study of our industry is presently nearing completion. The Institute of Gas Technology's study is for the National Science Foundation and covers a compilation of industry energy research and development programs. Our industry has partic ipated in this program on a select individual basis and the industry will be afforded the opportunity to review the IGT draft report cover ing this study in the near future. I plan to report further on this energy subject at the annual meeting, including a recent request from the Department of Commerce. OTHER LEGISLATION With the seating of a new U.5. Congress, having much more liberal orientation, activity on a number of bills which will be of concern to our industry can be expected. As conditions warrant, this committee will attempt to monitor such activity and to take action or recommend to the Directors that action be taken. It is expected that the following areas will be of concern during 1975. Surface Mining - A replacement bill for the bill which the President vetoed, is expected. Hopefully, provisions in this bill will not be of major concern to our industry. National Employment Priorities Act - Hearings on this legislation will take place during the second quarter. One of the objectives of the legislation would be to require industry to demonstrate "economic justification" of a plant closing and permit the government to determine SGP 0012139 -5- whether or not a proposed closing is justified. In the event that the government determines that closings are not justified, tax penalties can be levied. Land Use - Land use legislation, proposed by the U.S. Senate last year but not considered by the House, can be expected for action during the coming year. The State of Iowa is proposing land use legislation which would restrict corporate ownership of land in the state to 640 acres. The Association is planning to actively oppose this legislation. This activity will be reported further at the annual meeting. Solid Waste Disposal - It is expected that the Congress will pass comprehensive and far-reaching legislation governing solid and hazardous waste disposal in this session. Consumer Protection Agency - It seems certain that another attempt will be made in this Congress to create an agency with sweeping powers in the field of "consumer interest." In addition to the areas listed above, we will of course be vitally interested in whatever comprehensive energy program is con cluded in Washington. SEVERANCE TAX Successful action again defeating a proposed increase in severance tax levied by the State of Wyoming was reported at the semiannual meeting. Subsequently, we have learned of a proposed severance tax bill in Colorado which would include gypsum. Association SGP 0012140 -6- action is planned to resist the passage of the Colorado severance tax on gypsum. This activity will be reported further at the annual meeting. SAFETY COMMITTEE LIAISON The Manufacturing and Mining Committee will review the Safety Committee's programs and recommendations at the meeting on April I, 1975. Recommendations resulting from that review will be relayed to the membership by the Chairman in his verbal report. MATERIALS HANDLING SUBCOMMITTEE MATTERS Contained in this report, the Chairman of the Materials Subcommittee will cover the activities of that group. Highlights are expected to be the future activities with the Federal Highway Administration and a progress report on the new rail flat car loading training film. TECHNICAL AND BUILDING CODE COMMITTEE LIAISON The Manufacturing and Mining Committee will discuss with representatives of the Technical and Building Code Committees such matters as they wish to bring before us at our April 1 meeting. Here again, recommendations which the Manufacturing and Mining Committee have in connection with their programs will be verbally reported to the membership at the annual meeting. The industry metric conversion program will be of primary interest to the Manufacturing and Mining Committee in this area. SGP 0012141 -7- FUTURE COMMITTEE MEETINGS For the first time in its history, the Manufacturing and Mining Committee held two meetings during the past year. Frequency of meetings during the coming year will be discussed at the April 1 meeting and verbally reported to the membership on April 2. Respectfully submitted, W. W. Holloway, Chairman " SGP 0012142 report of the MATERIALS HANDLING SUBCOMMITTEE TO THE MEMBERSHIP MARCH 17, 1975 The Materials Handling Subcommittee has not held a meeting since the last annual membership meeting, although several projects have been progressed through correspondence with the Manufacturing and Mining Committee and the Association staff. A special task force, consisting of Traffic and Materials Handling Subcommittee representatives, met the day before the semi annual meeting in October for the purposes of developing an Association posture relating to industry activities with the Federal Highway Admin istration Motor Carrier Loading Standards contained in their Docket #MC 12. This activity, as reported to the membership at the semi annual meeting, is still high on our committees' priority list. It is anticipated that a draft letter addressed to the Federal Highway Administration will be prepared for circulation to the membership for comment in the very near future. I plan to comment on this activity further at the annual meeting. With the AAR final publication of Figure 101, Section 5 in their loading manual only months off., the Association, with the support of Signode and U.S. Steel Supply, undertook the revision of our flat car loading film. Although the new film will not be completed in time for showing at the annual meeting, it should be available shortly thereafter for purchase by the membership. The new training SGP 0012143 -2film will cover rail flat car loading in accordance with Figure 101, Section 5. It is anticipated that the running time will be less than 20 minutes, and the film will cost approximately $60. When the new film is released, member companies are urged to obtain copies for each of their gypsum plants as a quick and ready reference for compliance with the new AAR loading figures. The Chairman attended the recent Traffic Committee meeting in order to review those items of interest to both committees. Additional subjects of interest will be reported-to the membership at the annual meeting in April. Respectfully submitted, E. R. Kiehl, Chairman SGP 0012144