Document zzN7RyZqvLD4aRo7RQ28X8G0g

ASBESTOS INFORMATION ASSOCIATION <CRT* MACRO : 83S <. Street. N.W.. Washington. D.C. 20000 (202) 223-4885 BOARD OF DIRECTORS MEETING June 10, 1375 Stauffer's Naricnal Canter Hotel Arlington, Virginia ?v he_d .nr to notice, a meeting of the 3card of Directors was 10, 1375, in Stouffer's National Center Hotel, Ariing- ""lo Directors were oreser.t: John Autry (for Dimitry Poutiatine George 3arge Joseph M. Ciskowski William Clark Thomas A- Dougherty Dennis E. Eldred william Fassuliotis A. H. Fay Clarence A Herbst, Sr. John W. Hollingsworth A. R. Hooker C. G. Morgan Robert B. Pilmer J. L. Rainey Kurt Schwart Martin J. Sendecki D. Tijumelis (for T. K. Lindquist) C. Fred Workman Johns-Manviiia Coro. Atlas Asbestos Company (Montreal) Jim Walter Research Corp. Astsn-Hill Ltd. Certain-teed Corporation Vermont Asbestos Group GAF Corporation National Gypsum Co. Resinoid Engineering Corp. Dresser Ind. (Magcobar Div.) The Flintkote Company North American Asbestos Corp. Garlock of Canada, Ltd. Amatex Corp. Supradur Manufacturing Co. Congoleum Industries, Inc. Borg Warner Corp. (Borg & 3eck Div.) Nicolet, Inc. Also present: Guy G. Gabrielson, Jr., Nicolet, Inc., Chairman, Asbestos Regulation Task Force; William B. Hoffman, National Gypsum Company; C. F. Wilson, Esq., Jim Walter Research Corp.; Joseph A. Artabane, Esq., Cadwalader, Wickersham & Taft; R. K. Mereness, Executive Director, AIA/NA; and E. J. Pigg, Administrative Assistant, AIA/NA. PRODUCE _. JtA - S3 Page Introduction. The meeting was called to order at 9:01 A.M. Mr. Dougherty stated that Mr. Noel W. Hendry, Johns-Manville Corp. , had advised his assignment to General Manager, Mining Division, a position that would preclude his further active service on the Board. On motion, Mr. Dimitry Poutiatine was elected to succeed Mr. Hendry as the Johns-Manville representative. Mr. Dougherty expressed appreciation for the outstanding contribution. Mr. Hendry had made to the Association. Minutes On morion, minutes fo the preeeeding meeting, March 26, 1976 were accroved as submitted. Financial Reccrt Mr. Barge reviewed the financial report (provided in folders) fcr five months ending May 31, 1976. He projected income and expenses for remainder of calendar year noting most line items to he within current budget except for printing and OSEA task force expenditures. 3e said expected publication inventory sales and budget accrual should result in an end-year balance fcr these items. As of May 31, 1976, the Association had a cash balance cf $27,541 plus accounts receivable, prepaid insurance and expense fcr a total of $54,850. Total liabilities were $39,450 for a net worth of $15,400. Mr. Barge said he would address certain considerations pertaining to the current budget as a later order of business. Nominatina Committee Mr. Dougherty explained the requirement for election of Association officers at the annual meeting in September. The following were appointed to serve on the nominating committee: George Barge (chairman) , W. H. Beasley, J. L. Rainey, and Kurt Schwarz. Remarks of the Executive Director The physical layout of the new Association headquarters were described noting that adequate space was now available for meetings of 15-20 people and that there was significant work and storage space for present and anticipated needs. Attention was invited to the Court order in folders dis missing the Association as a defendant in the case of Shoup vs. Johns-Manville Products Corp. et al. Attorney's fee or $2,510.30 was submitted by the law firm of Kirr, Wattles, and Russell, Detroit, Michigan, and will be billed through AIA/NA's counsel, Cadwalader, Wickersham & Taft. produced Jill-83 Page 3 Rev ?. Weston, Inc., firm than prepared the technological feasibility and economic impact study in support cf the Associ ation's response to OSHA on the proposed asbestos standard, 1 proposed they be retained on a consulting (minimum contract) ' basis at a cost of $3,000 per annum. The Executive Committee at a meeting May 25, 1976 considered and declined this proposal. Weston has been so advised. * The CCNSAD Research Corn's Inflationary Impact Statement (IISi on tns proposed revision to the asbestos standard has yet to be submitted in final form to CSHA. Submission is due in* 2-3 weeks. "Best information" now indicates public hearing on the standard well not be before September. Contract for necessary IIS on forthcoming proposed asbestos standard for construction industry has not been let by OSHA. CONSAD has submitted a pre liminary work statement. A report was given of an EPA .tews conference held April *0 concerning asbestos in drinking water of selected U.S. cities .n study conducted by McCrone Associates. A listing of all federal government contracts for asbestos-health studies is Among rn-gcinc special projects mentioned were: revision of Asbestos and Health" booklet; development of a recommended work practices booklet on asbestos containing, sealants and gaskets; revision of the pamphlet, "Asbestos and Brake Linings"; and publi cation of J-M prepared "Recommended Safety Practices for Handling Asbestos Fiber" and "Asbestos Occupational Health Guide" under AIA/NA signature. Directors were encouraged to make use of the pamphlets and other informational/educational materials available from the Association, including recently prepared excerpts (for warding latter, summary and recommendations, and medical statement) from the Association's response to OSHA on the proposed revision to the asbestos standard. All are available in quantity. Several news clippings were brought to the attention of Directors as examples of continuing adverse reporting on asbestos usage. Mention was made of the recently announced merger pro posal fo the National Association of Manufacturers and U.S. Chamber of Commerce. AIA/NA enjoys good working relationships with these organizations. Ratification of Actions Mr. Dougherty stated the ballot response of members to the proposed establishment of an AIA/NA sponsored program for legal assistance 'hereinafter known as Legal/Medical Research Program) in defense of litigation alleging injury because of exposure to asbestos fiber as presented to Directors at meeting March 25 was highly favorable. In addition, he set forth the reasons for increased office space requirements for the Association and that the Executive Director had negotiated a five-year lease Pace 4 effective as of June 1 with his approval. He explained the necessity for ratification of these actions and read the following statement: "Resolved that all the actions of the officers, agents and attorneys for the corporation with the date hereof are ratified and confirmed in all res pects regarding the following: the formation of a program to develop a legal and medical bank of information for use of the membership and the authorization of the Executive Committee to form a Legal/Medica! Research Committee to oversee the program and, secondly, to execute the lease for the new office premises." Comments and/cr questions were invited. On motion, the above resolution was approved. Mr. Dougherty announced that the following had agreed to serve on the Legal/Medical Research Committee: Guy G. Gabrielscn, Jr., Nicolet, Inc, Chairman Dennis H. Markuson, Johns-Manvilie Core. C- ?. Wilson, Jim Walter Corp. Wolfgang A. Guenther, Raybestos-Mannattan, Inc. John H. Chidestsr, Brunswick Fabricators, Inc. C. J. Pontu, Certain-teed Corp. Legal/Medical Research Program Mr. Gahrieison noted title "Legal/Medical Research Program" better defined the work and objectives for this effort than "Legal Assistance Program" as originally identified. He re ferred to the sequence of events leading to formalization of this program with Cadwalader, Wickersham & Taft and stated the arrangement could be terminated at any time. He cited pre liminary work being done by Wendell B. Alcorn, Esq., of ( Cadwalader, In this connection , he emphasized advantages for developing state of medical art defense and referred to efforts expended to obtain professional expertise to prepare a compre hensive paper on chronology of medical knowledge regarding as bestos-related diseases. Mr. Gabrielson sAad Philip E. Enterline, Ph.D., Professor of Biostatistics, University of Pittsburgh, had agreed to work on this project. Dr. Enterline has recommended Ian T. T. Higgins, M.D. of the University of Michigan as a parti cipant and stated that a doctoral candidate at the University of Pittsburgh would be available to assist. Mr. Gabrielson said \ Dr. Weill concurred in the Enterline-Higgins team. Dr. Enterline estimated completion of the paper by year end at cost of about $6,000. Estimated cost of the overall program remains at $50,000. A discussion period followed. Mr. Gabrielson said it would facilitate the work of Mr. Alcorn if he could have ready access tc- information concerning asbestos-related legal cases and JM - 83 Directors were recruested to4 1"^ so inform their representative aitoroeys and urge their cooperation. He also said Mr. Alcorn wouid* not serve as counsel for any AIA/NA member company in. order to avoid any conflict of interest. Mr. Artabane said he would provide the*Executive Director with examples of data available from Mr. Alcorn and estimated costs for use by members. Mr: Dougherty expressed appreciation to Mr. Gabrielson for his outstanding contribution to the development and establishment of this important program of the Association Report on Mestinc of Asbestos Subgroup, OSKA Advisory Committee on Construction Safety and Health, June 2-3,1376 San Dieco, CA : In addition to an Association team cf Mr. Gabrielson, Dr. Weill and Dr. Rhodes, a tear, from Jchns-Manville including Dr. Kotin, Dr. Chase, Milt Trosper, and Dick Carter attended the m.eetinc and made presentations. Reporting on the meeting, Mr. Gabriaiscr. said we can net affor- to ignore what happens in one construction industry; there is a need for a uniform asbestos standard for both manufacturing and construction industries. The need has world-wide implications. He commented on the identity cf the subgroup members and OSHA representatives. The methodology I f i! i t ii j used by che subgroup was to review the proposed general industry standard item by item and attempt to ascertain applicability to the construction industry in conjunction with their recommendations as i submitted to OSHA of September last. The subgroup reaffirmed their position that a 2-fiber p/cc asbestos standard should be established for the construction industry and "tailored'1 or eliminated sections cf uhe general standard that were thought unrealistic for the concuructicn industry. The subgroup will present its recommendations to the full OSHA Advisory Committee on Construction Safety and Health which in turn will formally submit to the Ass11 Sec'y of Labor (OSHA). Meeting of full committee to hear subgroup report v/as announced in Federal Register of June II to be held June 29 30, Washington, D. C. AIA/NA memo dated June 14 refers. Mr. Gabrielson said he considered the greatest opportunity fer an impact on an asbestos standard for the construction in dustry would not come until a formal proposal is issued bv OSHA after reviewing the Committee report. He said the Association should start its response planning now. in- this connection, he had recommended and the executive committee approved est=blish- ment of an Ad Hoc Committee for Construction'under co-chaixmanshiD of Dr. H. B. Rhodes. Dr. Rhodes is authorized to seek additional * committee members, in consultation with the Standards & Technical Committee and other experts in the construction industry, and recoinmena full committee membership to the Executive Committee Mr Dougherty invited nominations from directors for membership on the AIA/NA Ad Hoc Committee for Construction. produced Pace o Revision to Asbestos- Standard Mr. Gabrielscn reviewed development to date and current, status c: OSKA's proposed revision to the asbestos standard. He pointed out that AIA/NA had recommended deferral of issuance of the general industry standard until promulgation of a regu lation for the construction standard. QSHA officials have in dicated that this is net politically feasible. He said the issue of seeking an injunction against CSHA to force a delay of the general industry standard until a regulation for the construction industry is promulgated had been raised by Johns-Manviile Corp. The Executive Committee had concluded that AIA/NA would not seek suer, injunction, the consensus being that uncertainties confronting the general industry should be resolved as soon as possible be cause cf the adverse effect new taking place in customer relations and the length of time which would undoubtedly be required for legal proceedings. A legal challenge could be made subsequent to issuance cf the general industry standard. Association decision and reasons therefore will be transmitted to Johns-Manviile by Mr. Gabririsen. Mr. Gabrielscn also addressed public hearing technicalities and Association planning! Several persons were mentioned, in addition to Mr. Gabrielscn, as possible participants to include Ors.--set in and Weill, D.X. experts. Dr, Gerald R. Chase and Dr. E. 3. Hhcces. He will coordinate with Dr. Xotin in the develop ment of a presentation to avoid duplication. Mr. Gabrielson made reference to an important meeting with Mr. H.D.S. Eardie, Chairman, Asbestos Information Committee (U.X.) for June 21 in Washington, D. C. as it pertains to the hearing presentation. Mr. Dougherty added that the Executive Committee was of the opinion that the industry should strive to present a responsible impression at uhe hearing and demonstrate concern for the well-being of both employees and customers. Association Membership/Bv-Laws Mr. Dougherty said the Executive Committee had given consideration to passible revision of the Association By-Laws in order that associate and affiliate memberships could be authorized if desired by Directors. As a first step in providing this authorization, a modification to the Certificate of Incorporation of file in the State of Delaware to provide for more than one class of membership is required. In addition, he explained that the statement of purpose in the Certificate of Incorporation is in need of updating. Mr. Artabane outline details as to required legal procedure. Mr. Dougherty said other changes appear to be desirable in the By Laws. He said Mr. Artabane, in coordination with the Executive Director, would prepare a proposed revision of the By-Laws for consideration of Members. produce Page 7 If. was t'r.e consensus fc the group that the addition of classes to membership would be beneficial to industry interests and the well being of the Association. Formal consideration of possible changes to the By-Laws could be made at the meetinc of members in Seotember. Activity Area Reports A. Education and Training - The Executive Director encouraged utilization of the new J-M film, "Wording with Asbestos" and the distribution of other materials available from the Association. B. Standards a Technical - Next meeting of the Standards & Technical Icmnittee is June 22-24 in the Asscciation office. C. Financial Affairs - Mr. Barge referred to previous decisions whic.o rasu-tec m significant changes to the 1975 budget. At the Association's meeting, February 4, 1976, an addition 25,000 was approved for the contingency fur.cs/speciai projects line item in support cf the AIA/NA restcr.se to the OS HA proposed revision of the ascestos standard --bringing the figure to 5100,000 vice 575,000. As earlier noted, the estimate cf 550,000 to support a legal/ medical research program as initially presented at directors meeting on March 25, 1976 remains reasonable. He proposed that S25,0Q be budgeted ir. 1976 and the remaining 525,000 be included in the 1977 budget. At the Directors meeting on March 25, 1976 the 1976 membership dues rate was approved at 2.5 mills resulting in an increase cf income from $254,000 to $274,000. In addition, financial cor.stributions through May to the AIA/NA OS HA asbestos standard task force were received in the amount of 524,000. This income is net reflected in the current budget. These items provide an increase of reciepts in 1976 from $235,000 to $308,000. The additional receipts result in an ex cess of projected receipts over expenditures of $29,540 as opposed to $1,540 now indicated. In view of above fiscal changes, a revised budget for 1976 to sc reflect was proposed and aomroved by motion. (Copy of revised 1976 budget is attached.) D. Membership - Mr. Workman reported the current Association membership is 33. Two companies have resigned within last month; One is due to misunderstanding of dues structure and is a candidate for associate membership, and the other resigned for personal business reasons. The latter was current in dues payment and has contributed 52,500 toward AIA/NA expenses in responding to the proposed revision to the asbestos standard. PP.00UG5O jfil - 33 P ace 3 A total of $25,195 had been contributed to this effort to date. He encouraged Directors to assist in recruitment of new members in the Association. E. Medical/Standir.c Committee, International Asbestos Information Conference - Mr. Marsh was not present due to his attendance as Association representative at a meeting of the Standing Committee, International Asbestos Information Conference. The Executive Director read a statement received from Mr. Marsh by telephone on Tune 3 concerning the current adverse publicity against the industry in the United Kingdom. F. Labor Relations - Mr. Dougherty said he had nothing new to report except to raise the mattar of labor attendance at the up coming annual Industry -Government Conference. He and the Executive Director will call on Mr. John H. Sheehan, AFL-CIO, and explore the possibility of his attendance and participation. Mr. Roy J Steinfurth, International Association of Heat S Frost Insulators and Asbestos Workers will also be invited. G- Industry Economics and Techno logy - Mr. Fay said he has beer, in contact witr. Mr. Tburner and suggested inclusion of certain technological items in the agenda for the conference in September. A listing of manufacturers of dust control equipment continues in preparation and will be available for distribution in the near future. Third Annual Industry - Government Conference, Sept. 3-9, 1976 Mr. Dougherty presented a proposed program format which would include: dust control, monitoring, industrial hygiene, European view of the industry, marketing forecast, asbestoshealth update, AIA/NA Legal/Medical Research program. Dr. Corn (OSHA) and Mr. Train (ERA) will be invited as luncheon speakers. Plant Phvsicians Conference Mr. Dougherty said the Association continues to plain for this conference. He explained that work on responding to the proposed revision ro the asbestos standard had delayed its scheduling, hoxvever, a time and place would be determined following public hearing cn the standard. Adjournment There being no further business the meeting was adjourned at 2:10 P.M. Next regular meeting of directors is scheduled for September 8, 1976 to be followed by' the" annual meeting and the Third annual Industry-Government Conference at Stouffer*s National Center Hotel, . Executive Director June 15, 1976 . produced S3? 91 ASBESTOS INFORMATION ASSOCIATION/NORTH AMERICA . 1376 REVISED BUDGET . (Board of Directors Meetina -6/10/7S) January I, 1976 - December 31, 1976 RECEIPTS Membership Dues ' `... / \~ Interest Income ' , ' Publications Income- ! " ' Conference Income ' ~T-'- "i. v ': Contributions _ Total Receipts ' . .... . ' .. ' rR 274,000 ' 3,500 . ` '.4,500 ' 2,000 26,000 310,000 DISBURSEMENTS ' '' : " ' .- Salaries & Administrative Expenses Staff Salaries ' Temporary Help ' ' - Pension Plan '' ' . Payroll Taxes .. Insurance - Group '' - Total Salaries & Administrative Expenses _ .' ' ` ' Rent ' - ' V ' /. 'V. ;-l1' _ -' General Office Expenses- ' ' '' Postage- -. . . Telephone & Telegraph. Stationary & Supplies "- Office ' Office - Equipment,Furniture,Moving . Office - Machine Rentals - Xerox Insurance -- Other. \ Clipping Service. '- ' .-' Subscriptions fi- Publications ' - Association Memberships ,; - ;.: . Total General Office Expenses " ... Travel. & Meeting. ExpensesT... . 'V ' Travel ; Executive ' CommxtteeV^Board s' ' "... :>' 't. '. `Special. Meetings ' '...Total Travel & Meeting Expenses $64,600 1,500 2,300 2,760 3,475 3.000 4,100 3,800 700 4.000 .6,000 100 .1,500 2,400 6,775 .5^500 5,000 75,135 6,400 32,375 10,500 000 600