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San Francisco Hilton BUSINESS PROGRAM Sunday NOVEMBER 7, 1971 p.m. 12:00 1:30 4:00 National Advisory Committee and Board of Oirectors Reception and Luncheon....... ........Continental Sallroom 0 Ballroom Floor Board of Oirectors . Meeting........... ..............Continental Ballroom 4 Ballroom Floor General Hospitality Committee................................ -California Room Ballroom Floor Monday NOVEMBER 8, 1971 a.m. 8:00 9:00 Continental Breakfast......... ......Imperial Ballroom Ballroom Floor FIRST BUSINESS SESSION -.....-..... Continental Ballrooms 5-4 Ballroom Floor Continental Sreakfast will be served in the Imperial Ballroom (Ballroom Floor) before the meeting (8:00 a.m. to 9:00 a.m.) Presiding__________ __ _______ Bernard A. Malm President. NPVLA Oe Soto. Inc. National Anthem invocation- ...Rev. Charles Dickey introduction of Guests In Memoriam. .Engene K. Mack Chairman. NPVLA Memorial Committee Armstrong Chemcon, Inc. Report of Treasurer---------------- C. A. Brethen, Jr. Wyandotte Paint Products Co. Nominating Committee Report Chairman. NPVLA Nominating Committee- Eric 6. Orling NL industries. Inc. By-Laws Committee Report Chairman, NPVLA ^ By-Laws Committee.....................--R. 0. Clark Jewel Paint & Varnish Co. "THE CREATIVE CONFRONTATION"-- .^ a multi-media presentation___Robert A. Roland NPVLA, Executive Vice President p.m. 12:30 LADIES' AND MEN'S AWARDS LUNCHEON......... Continental Ballrooms 4-5-4 Ballroom Floor Presiding.................................... --Bernard A. Malm President, NPVLA Oe Soto, Inc. Honoring.............................50 Year Club Members Retiring Committee Chairmen Presentation: Industry Statesman Awards Presentation: George Baugh Heckel Award p.m. 2:30 "THE ENVIRONMENT"----- ..Imperial 8at!reem Ballroom Floor Moderator.......................................Royal A. Brown Technical Director, NPVLA PART I, AIR POLLUTION "A Review of the Regulatory ..... Situation"--___ ______________Daniel S. Ring NPVLA, Environmental Specialist "What Community Service Really Means". ftancls Scofield NPVLA, Environmental Specialist "Cooperation and Compliance"___ -Charles W. Finegan Ameritone Paint Corporation PART II, WATER POLLUTION "Regulations Governing Water Pollution"-............... Monday * NOVEMBER 8,1971 "THE ENVIRONMENT" (Continued) "The Illinois Water Pollution _. Control Board Case"------------- Edward OTeolo Attorney for the Chicago Paint, Varnish and Lacquer Association "Water Treatment and Disposal Systems for the Paint Industry"_________ __________Douglas Larsen De Soto, Inc. PART III. WASTE DISPOSAL "Waste Oisposal Regulations"------------ "The Disposal of Wastes by Incineration"------------ Tuesday NOVEMBER 9,1971 7:45 Continental praakfa^t Continental Ballrooms 4-5 Ballroom Floor 7:45 Rap Sessions: Air Pollution .......______ Continental Parlor 1 Water Pollution .______ Continental Parlor 2 Waste Disposal--______ Continental Parlor 3 9:00 "THE PROOUCT" General Session --...... .........Imperial Ballroom Ballroom Floor Moderator.......................... Roger W. Hlggons Chairman, NPVLA Labeling Committee Benjamin Moore A Co. PART I, "THE PLANT/MANUFACTURING" "The Occupational Safety and Health Act"------------"Plant Security"---------- "Raw Materials for Pollution Control" "Solvents"------------------------ J. M. Baggs Ashland Chemical Co. "Resin Solutions"--------- --------...... Nell Estrada Reichhold Chemicals, Inc. PART II, "PROOUCT SAFETY" "Legislative and Regulatory Developments" "Lead-Based" Paint.............. Robert A. Roland NPVLA. Executive Vice President "Mercury and other Heavy Metals"___________lohn M. Montgomery NPVLA, General Counsel "Poison Prevention Packaging Act of 1970" _. ________ Charles H. Hagen Seymour of Sycamore, Inc. "Labeling and Registration" "Labeling of Household Products under Federal Hazardous Substances Act" Dale Miller FDA, Bureau of Product Safety "Registration of Paints and Coatings under Federal and State Laws" .... Morris B. Lorn E. I. du Pont de Nemours & Co., Inc. "Customer Information" "Material Safety Oata Sheet"-Francis Gaugush The Sherwin-Williams Co. "Truth In Advertising"---------------- Larry Thomas NPVLA. Counsel PART III. "OISTRIBUTtON"-MARKETIN NIGHTMARE OF THE SEVENTIES-- THE COST/SERVICE DILEMMA "The Problem" -William C. Fleck Chairman, NPVLA Traffic Committee De Soto, Inc. "Techniques" _R. R. Lang Corporation Traffic Manager Benjamin Moore A Co. "The Total System"___________George G. Smith Distribution Manager E. I. du Pont de Nemours A Co., Inc. Tuesday NOVEMBER 9,1971 p.m. 12:30 MEN'S LUNCHEON A FINAL BUSINESS SESSION____Continental Ballrooms 4-5-4 Ballroom Floor Presiding............. .................... --..Bernard A. Malm NPVLA President * Oe Soto. Inc. Final Report By-Laws Committee........... ............R. 0. Clark Jewel Paint A Varnish Co. Final Report. Nominating Committee ----------- ----_----- ....Eric G. Orling NL Industries, Inc. Election and Installation of Officers and Board of Directors New Business--Old Business--Adjournment 2:30 "THE CONSUMER" General Session. .Imperial Ballroom Ballroom Floor Moderator......................... .......Oouglas W. Miller Chairman. Trade Sates Marketing Committee, The 0'8rien Corp. 7:00 "Consumer Legislation--A A Puzzle Made Plain"______ Charles S. Mack Senior Consultant CPC International Inc. "Changing Consumer Markets-- Strategic Implications for Paint Manufacturers"Dr. Roger D. Blackwell Manager, State Government Relations Management Horizons, Inc. "Industry's Response to Consumerism"______________Stephen E. Upton Vice President. Consumer Services Division, Whirlpool Corporation President's Reception....... Continental Ballroom Ballroom Floor Wednesday NOVEMBER 10,1971 a.m. 7:45 7:45 Continental Breakfast .. Continental Ballrooms 4-5 Ballroom Floor Rap Sessions: "Plant/Manufacturing" Continental Parlor 1 "Raw Materials For Pollution Control".........Continental Parlor 2 "Legislative and Regulatory Developments"______ Continental Parlor 3 "The Consumer"......... Continental Ballroom 6 "Labeling and Customer Information"............... Continental Parlor 7 "Distribution"........ ........Continental Parlor 9:00 "MANAGEMENT/ MANPOWER" General SessionImperial Ballroom ModeratorJohn A. Kfacsmann E. I. duPont de Nemours A Co., Inc. Chairman. Program Subcommittee Chemical Coatings Steering Committee PART I "Strategic Planning for the Seventies"Dr. L Glen Strasburg Acting Dean, School of Business ana Economics, California State College PART II "Managers for TomorrowColor Me Green".William B. Plasso Resident Partner Rohrer, Hibler A Replogle Charles V. Dunham General Partner Rohrer, Hibler A Replogle 002414 Wednesday * NOVEMBER 10, 1971 a.m. 1:00 ACTIONPLAN SEMINAR___ Continontal Pirlor 9 Ballroom Floor "Idea ... The Operating Cost Survey: How to Use It (Often)"...........-Hugh Mayberry Interstate Paint Corp. Loo Kitchen Inmont Corporation Both are members of NPVLA's Management Information Committee 14Idea . . . New Coatings and Application Methods: How to Educate Your Members"....................Roy Brown NPVLA. Technical Director "Idea ... The Cleveland Labeling Seminar: How it Worked and Why"--_______________ __ -Cone Deane President. Cleveland Paint, Varnish and Lacquer Association 4,ldea ... The Philadelphia Hazardous Environment Seminar: How it Became A Success"-...................James Elliott NPVLA. Field Secretary "Idea . . . Pollution Control Programs.- How to Become Relevant"...................-.............Robert A. Roland NPVLA. Executive Vice President Roy Brown NPVLA. Technical Director John M. Montgomery NPVLA. General Counsel LOCAL ASSOCIATION EVENTS SUNDAY, NOVEMBER 7 12 noon 2:00 P.M. National Advisory Committee Reception and Luncheon .. Continental Ballroom 5, Ballroom Floor National Membership Steering Committee.......Toyon Suite, 4th Floor MONDAY, NOVEMBER 8 6:00 P.M. Reception for Local Officers and Delegates.......... -Continental Parlors 1-2-3, Ballroom Floor WEDNESDAY, NOVEMBER 10 9:00 A.M. Actionplan Seminar.................Continental Parlor 9, Ballroom Floor HOSPITALITY ARRANGEMENTS Men's Hospitality Desk, South End of East Lounge (Ballroom Floor), will be staffed with members of your Hospitality Committee. They will help you con tact your friends, tell you about points of interest, or assist in any other way. The Ladies' Hospitality Suite (Bellagio Room, Main Lobby) will offer you tour arrangements and sightseeing information. It will be a meeting place for friends. PRESS ROOM The NPVLA Press Room (Rosewood A & B, 4th Floor) will offer copies of tslks presented at vari ous forums. Information on the availability of adver tising space in NPVLA's yearbook may be obtained in the Press Room. SOCIAL EVENTS MONDAY, NOVEMBER 8 8:00 A.M. Continental BreakfastImperial Ballroom 9:00 A.M. First Business Session-- "The Creative Confrontation" Continental Ballroom 12:30 P.M. Honoring: Ladies & Men s Awards Luncheon Honoring: Retiring Committee Chairmen 50 Year Club Members Presentation: George Baugh Heckel Award Presentation: Industry Statesman Awards Contiientai Ballroom 2:00 P.M. Ladies' deluxe San Francisco Tour (Buses depart from O'Farrell St. entrance) TUESDAY, NOVEMBER 9 7:45 A.M. Continental BreakfastContinental Ballrooms 4-5 9:00 A.M. Ladies' Tour of the Wine Country & Buffet Luncheon (Buses depart from O'Farrell St. entrance promptly) 12.30 P.M. Men's Luncheon & Final Business Session Continental Ballrooms 4-5-6 7:00 P.M. President's Reception honoring President and Mrs. Bernard A. Maim Continental Ballroom WEDNESDAY, NOVEMBER 10 7:45 A.M. Continental BreakfastContinental Ballrooms 4-5 12:30 P.M. Ladies' & Men's Luncheon Vincent Price (Actor, Art critic. Raconteur) Continental Ballroom Ladles' Hospitality Committee Co-Chairmen: Mrs. Bernard A. Malm Co-Chairmen: Mrs. Ralph J. Baudhuin Men's Hospitality Committee Chairmen: W. W. Williams The Sherwin-Williams Co. Robert D. Colo Abbott, Colt A Defiraf 002415 Be our guest at Continental Breakfast! Be our guest for Continental Breakfast Monday, between 8 and 9 a.m. in the Imperial Ballroom, ballroom floor. Continental Breakfast will also be served between 7:45 and 8:45 a.m. Tuesday and Wednesday in the Continental Ballroom, Section 4. But if it takes more than a cup of coffee to get you going in the morning, take part in one of several "rap session" breakfasts held Tuesday and Wednes day between 7:45 and 8:45 a.m. in the Continental Ballroom. A discussion group on topics covered in the following day's program, these sessions are your chance to speak with the experts on a one-to-one level. On Tuesday, there are three environmental sessions to choose from: one on air pollution in Section 1, one on water pollution in Section 2, and one on waste disposal in Section 3. Wednesday's sessions deal with four genera! topics: the plant/ manufacturing in Section 1, product safety in Section 2, the consumer in Section 3. and dis tribution in Section 7. REMINDER--don't forget to wear your convention badges to the breakfast. i lor.c'ay, November 8, 1971 ! ooe 1 ilm lational Anthem ivocat Ion * *tier from Reagan THANK YOU, BOB. LADIES AND GENTLEMEN, IT IS A GREAT PERSONAL PLEASURE TO PRESIDE OVER THIS OPENING SESSION OF THE 84th ANNUAL MEETING OF THE NATIONAL PAINT, VARNISH AND LACQUER ASSOCIATION. LET US NOW STAND FOR THE PLAYING OF OUR NATIONAL ANTHEM. (Pause) i IF YOU WILL REMAIN STANDING, REV. CHARLES DICKEY OF ST. PATRICK'S EPISCOPAL CHURCH WILL GIVE THE INVOCATION. (Pause) I WOULD LIKE TO SHARE WITH YOU AVERY NICE LETTER I RECENTLY RECEIVED, FOR IT IS ADDRESSED TO ALL OF US. (Then read letter from Gov. Reagan) "l AM PLEASED TO EXTEND WARM GREETINGS TO ALL THE DELEGATES ATTENDING THIS 84th ANNUAL MEETING OF THE NATIONAL PAINT, VARNISH AND LACQUER ASSOCIATION. t I REGRET MY SCHEDULE PREVENTS MY MEETING WITH YOU PERSONALLY. 002416 etter from Reagan induction of Guests COMPLEX PROBLEMS--BOTH ECONOMIC AND SOCIAL--WHICH TROUBLE TODAY'S SOCIETY. YOUR PAST HELP IS APPRECIATED, AND YOUR CONTINUED INVOLVEMENT IN THE AFFAIRS OF GOVERNMENT IS BOTH WELCOME AND NECESSARY. "YOU HAVE MY BEST WISHES FOR AN ENJOYABLE AND PRODUCTIVE MEETING." SINCERELY, RONALD REAGAN, GOVERNOR. WE ARE FORTUNATE THAT OUR ASSOCIATION ENJOYS SUCH A FINE AND CLOSE WORKING RELATIONSHIP WITH MANY i SISTER ORGANIZATIONS, AND WE ARE DELIGHTED THAT THEIR OFFICERS ARE HERE WITH US THIS MORNING. IT IS AN HONOR TO INTRODUCE THEM TO YOU AT THIS TIME. I WOULD ASK THAT THEY REMAIN STANDING AND WE HOLD OUR APPLAUSE UNTIL THE END. THEN, WE CAN PROPERLY WELCOME THEM AS CLOSE ASSOCIATES AND FRIENDS. 002417 ft* inera! Session >nday, November 8, 1971 |jge 3 BEGINNING WITH THE FEDERATION OF SOCIETIES OF PAINT TECHNOLOGY: THEIR PRESIDENT, MR. JEAN TEAS, FROM HUDSON, OHIO THEIR PRESIDENT-ELECT, FROM EMERYVILLE, CALIFORNIA, MR. A. GORDON ROOK AND THEIR EXECUTIVE VICE PRESIDENT, MR. BOB MATLACK. FROM THE PAINTING AND DECORATING CONTRACTORS OF AMERICA: FROM HOUSTON, TEXAS, . THEIR PRESIDENT, MR. MARTIN DEVRIES AND THEIR EXECUTIVE DIRECTOR, MR. GLEN CRAVEN FROM THE CANADIAN PAINT MANUFACTURERS ASSOCIATION: THEiR PRESIDENT, MR. ROGER LAMONTAGNE (La-mo-ton-ya) ' / THEIR EXECUTIVE VICE PRESIDENT, MR. ERIC BARRY 002418 i general session poCiday, November 8, 1971 poS ^ Malm i j^ft *)ducfion of Guest's I FROM THE PAINT AND WALLPAPER ASSOCIATION OF AMERICA: THEIR PRESIDENT, FROM SALT LAKE CITY, MR. CHARLES PERSCHON AND THEIR EXECUTIVE VICE PRESIDENT, MR. BOB PETIT FROM THE PAINT AND WALLPAPER ASSOCIATION OF GREATER NEW YORK: THEIR PRESIDENT, MR. JOSEPH CHERTOFF AND THEIR EXECUTIVE DIRECTOR, MR. JACK FABER foreign Guests WE ARE ALSO HONORED TO HAVE WITH US THIS MORNING DISTINGUISHED GUESTS FROM DISTANT LANDS AND I WOULD LIKE YOU TO MEET THEM AT THIS TIME. 002419 FROM LA-GLOOR-LUV, (like love) FRANCE, THE PRESIDENT DIRECTOR GENERAL OF BERGER PAINTS, MR. PIERRE PIFRRE-MONT jeneral Session Jonday, November 8, 1971 ige 5 , *' Mm FROM ST. JOHNS, NEWFOUNDLAND, CANADA, THE GENERAL MANAGER OF STANDARD MANUFACTURING CO., MR. RALPH CHANCEY FROM BUENAS AIRES, ARGENTINA, MANAGER OF S.A. ALBA CO., MR. RA GEL IA CARLOS LINKENS AND FINALLY, TECHNICAL MANAGER OF PIN-TUR-AS DURA-VAL OF MADRID, SPAIN, MR. ADRIAN Dl FONZO IF MR. GENE MACK OF ARMSTONG CHEMICAL AND CHAIRMAN OF OUR MEMORIAL COMMITTEE WILL COME FORWARD, HE WILL LEAD US IN PRAYERFUL REMEMBERANCE OF THOSE HONORED MEMBERS WHO HAVE PASSED ON DURING THE LAST YEAR. (Gene Mack) THANK YOU, GENE! 002420 Jeneral Session ionday, November 8, 1971 >ge 6 aim reasurer's report (/-Laws report. k AND NOW OUR DILIGENT TREASURER WILL GIVE HIS REPORT, MR. CHUCK BRETHEN OF WYANDOTTE PAINT PRODUCTS CO. CHUCK! (Chuck Brefhen gives his report.) THANK YOU, CHUCK! MR. ROBERT O. CLARK OF JEWEL PAINT AND VARNISH CO. AND CHAIRMAN OF OUR BY-LAWS COMMITTEE WILL NOW GIVE US THEIR PRELIMINARY REPORT. WE WILL VOTE ON THESE RECOMMENDATIONS TOMORROW AT OUR BUSINESS LUNCHEON. BOB! (R.O. Clark gives his report.) THANK YOU, BOB! ( * i002421 )ES eneral Session onday, November 8, 1971 ice 7 Im ominating report. Solutions YOUR NOMINATING COMMITTEE IS CHARGED WITH THE RESPONSIBILITY OF SEEING TO IT THAT YOUR OFFICERS AND BOARD MEMBERS REPRESENT A FAIR CROSS SECTION OF OUR INDUSTRY AS WELL AS BEING CAPABLE, FARSIGHTED, AND DEDICATED BUSINESS MEN. TO GIVE THE RECOMMENDATIONS OF THIS COMMITTEE, 1 NOW CALL ON ITS CHAIRMAN, FROM N.L. INDUSTRIES, MR. E-RIC-OR11NG. ERIC1 j S,' (E. Orling gives his report) THANK YOU', Efi-4! W\ ANYONE DESIRING TO PRESENT RESOLUTIONS IS REQUESTED TO PROPOSE THEM IN PERSON TO OUR RESOLUTIONS f COMMITTEE CHAIRED BY MR. NED FOY OF FOY-JOHNSTON. OTHER MEMBERS OF THIS COMMITTEE ARE LEO GUTHMAN OF BRADLEY AND VROOMAN AND MR. MANSEL WILEY OF CELANESE COATINGS'. 002422 AND, NOW, THE HIGHLIGHT OF THIS MORNING'S GENERAL SESSION, A DRAMATIC MULTI-MEDIA PRESENTATION, "THE CREATIVE CONFRONTATION!" FEATURING EXECUTIVE VICE PRESIDENT, MR. ROBERT ROLAND, BOB! (RAR presents the program and concludes with announcements and adjourns the meeting.) 002423 1971 MEMORIAL COMMITTEE REPORT Mr. President, Ladies and Gentlemen: It is appropriate that we spend a few moments during our Annual Meeting to remember those members who have died during the past year. There, of course, is a natural sorrow that we all share in losing our fellow associates. Those of us who knew them, shall miss them; but v/e also consider ourselves fortunate for having had their friendship and contributions to our industry. To their families and friends, we extend our deepest sympathy. In the "Convention Daily", there is a report of the Memorial Committee listing our deceased. Let each of us now offer a moment of silent prayer for them. (Pause) Thank you. 002424 NATIONAL PAINT, VARNISH AND LACQUER ASSOCIATION, INC. To 1971 Annual Meeting, San Francisco Hilton San Francisco, California - November 8, 1971 byC. A. Brethen, Jr., Treasurer January 1, 1971 - September 30, 1971 TREASURER'S REPORT I am happy to report to you that your Association, for the first nine months of our calendar year, had income of $784,469.24. Expenses for the nine months were $726,265.27, leaving excess income over expenses of $58,203.97. It is anticipated that we will finish the calendar year with a surplus. Our surplus on September 30, 1971, was $608,351.59, of which $128,035.96 Is cash. The balance of our assets is in securities, accounts receivable, building; etc. STATEMENT OF INCOME AND EXPENSE FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1971 INCOME Dues Interest, Dividends and Other Income Total Income $777,434.19 7,035.05 $784,469.24 EXPENSES Total Expenses $726,265.27 Excess Income over Expenses $ 58,203.97 The statement as herein given is an interim statement. The Accounts of the Association will be audited by Ernst & Ernst at the end of the calendar year. Their audit report will be included in our published Annual Report and mailed out to the membership. 002425 PRELIMINARY REPORT OF NOMINATING COMMITTEE Mr. President, Gentlemen: The By-Laws of your Association require that the preliminary report of the Nominating Committee shall be presented at the first business session of our 84th Annual Meeting. Therefore, your Nominating Committee has the honor to present the following ticket for the elective officers In question: President RALPH J. BAUDHUIN FOR A ONE-YEAR TERM Vice President C. A. 8RETHEN, JR. Treasurer E. C. LARSEN Regional Vice Presidents New England Zone JOSEPHS. W. PARKER Eastern Zone C. S. BROWN East Central Zone F. J. DERRICK Southern Zone HUGH H. MAYBERRY West Central Zone ROBERTA. TAPPENDORF Southwestern Zone HAROLD WEINBERG The Valspar Corporation Rockford, Illinois Wyandotte Paint Prod. Co. Wyandotte, Michigan PPG Industries, Inc. Pittsburgh, Pennsylvania Sterling-Clark-Lurton Ccrp. Malden, Massachusetts National Manufacturing Corp. Tonawanda, New York The Perry & Derrick Company Cincinnati, Ohio interstate Paint Corp. Brunswick, Georgia Enterprise Paint Dtv. of Insilco Cor Chicago, Illinois Kwal Paints, Incorporated Denver, Colorado 002426 WMttm Z>ne -2- 0. W. KENNEDY Board of Directors (Class A) B. A. MALM FOR A THREE-YEAR TERM SEWELL SHUGER MAURICE C. WORKMAN WILLIAM R. BARRETT, SR. WILLIAM E. HOOD W. D. KINSELL JAMES C. HENDERSHOT THOMAS M. REINHARDT RUSSELL BANKS (Class B) RONALD S. WISHART WILLIAM MCKINLEY BISHOP FRANCIS X. DWYER Colony Paints, Dlv. Conchemco,lnc. Los Angeles, California DeSoto, Inc. Des Plaines, Illinois Baltimore Patht B Chemical Corp. Baltimore, Maryland Beniamin Moore & Co. New York, New York Inmont Corp. New York, New York Indurall Coatings, Inc. Birmingham, Alabama Glldden-Durkee Dlv. SCMCorp. Cleveland, Ohio Reliance Universal, Inc. Loutsvtlle, Kentucky International Paint Company New York, New York Grow Chemical Corp. New York, New York Union Carbide Co. New York, New York Enjoy Chemical Company Houston, Texas Tenneco Chemicals Nuodex Div. Ptscataway, New Jersey 002427 -3 Mr. President, no action It required by (be 84th Annual Meeting at this time. The final report of your Nominating Committee will be presented at the closing session on Tuesday. This report is respectfully submitted by -- NOMINATING COMMITTEE Eric G. Orllng, Chairman, N L Industries, Inc. Frank E. Bolway, D. H. Litter Co., Inc^ George Gable, Perfection Paint & Color Corp. William H. Lutz, Pratt & Lambert, Inc. George S. Rattner, Paragon Paint & Varnish Corp. Ronald Wishart, Jr., Union Carbide Corp. B. A. Malm (ex-officio) 002428 PRELIMINARY REPORT OF THE BY-LAWS COMMITTEE Ladies and Gentlemen: As Chairman of the By-Lav/s Committee, I make the following report of proposed amendme to the Association's By-Laws and a revision to the Non-Exchange Agreement: T. Amend Article 1 to read as follows: Title -- The name of this organization shall be the National Paint and Coatings Association, Inc. 2. Amend all other Articles and/or Sections of the By-Laws, as appropriate, to reflect the new name of the Association. 3. Amend Article VIII, Section 8, to update the list of regular Committees by: a. deleting the Simplification Committee b. changing the name of the Chemical Coatings Technical Commiitee to the Chemical Coatings Industry Committee and the name of the Trade Sales Steering Committee to the Trade Sales Marketing Committee c. Add the following committees: Aerosol Coatings Manufacturers Committee Community Services Steering Committee Fire Retardant Paints Committee Furniture Finishes Group Steering Committee Government Suppliers Committee High Performance Architectural Coatings Steering Committee Industry Suppliers' Committee Inter-Society Color Council Joint Coatings-Forest Products Industries Steering Committee Joint Paint Industry Coordinating Committee Labeling Committee Loss Prevention Committee Manufacturing Management Committee Marine Finishes Manufacturers' Committee Packaging Committee Seamless Systems Manufacturers Steering Committee 002429 2- - 4. Amend Article XVI, Sections 5 ond 6, to read as follows: 5. To recognize the right of employees to use all honorable and reasonable efforts to better their conditions but to refrain from directly or indirectly soliciting or bidding for the services of a specific employee of another member; to promote, in light of contemporary hiring practices, high ethical standards in the area of manpower recruitment. 5. Amend Article XVI, Section 7, to read as follows: 6. To refrain from the unethical practice of taking in exchange for our own products the paints and coatings of another manufacturer. 6. Amend Article XVI, Section 9, to read as follows: 8. Any violation of this Code shall be referred by the General Counsel of the National Paint and Coatings Association, Inc., to the Executive Committee for consideration and action. To ensure fairness, elementary due process requirements will be met throughout these proceedings. 7. Revise the Non-Exchange Agreement f (In the interest of saving time, the amended version of the Non-Exchiige Agreement will not be read unless so requested. This reading may be waived since a copy of the proposed revision was furnished each member at the time he picked up his credentials at the Registration Desk.) (Copy attached in case request from floor for reading.) 002430 "1 -3- No action is required by the 84th Annual Meeting at this tirae. This report v/ill again be called to the attention of the Annual Meeting at the Final Business Session during the Men's Luncheon on Tuesday, at which time I will move that the amendment of these Articles and revision to the Non-Excln nge Agreement, as set forth, be adopted by the membership. Respectfully submitted, R. O. Clark, Chairman - Jewel Paint & Varnish Co. & ft E. J. Butler - McDougall-Butler Co. George C. Heh - Lambert Corp. of Florida Clyde L. Smith - Ameritone Paint Corp. B. A. Malm (ex-officio) NPVLA 002431 RESOLUTIONS COMMITTEE ARTICLE VIII - Section 13. Resolutions Committee: The President shall appoint a Resolutions Committee of three (3) members from the membership of the Executive Committee at the annual meeting of this Association. This Committee shall consider all reports, resolutions or recommendations which may be referred to it in sessions of the annual meeting pertaining to matters that have not been before the Board of Directors or the Executive Committee. The Committee shall submit to the annual meeting such resolutions or reports with its recommendations. When necessary, the Resolutions Committee shall draft and submit to the annual meeting of the Association resolutions on subjects requiring action of the membership. The following Committee is recommended: Edward A. Foy, Chairman Leo S. Guthman Mansel O. Wiley f Action Required: Approval of the above Committee. 002432 Address by: Robert A. Roland Executive Vice President, NPVLA National Paint, Varnish and Lacquer Association 84th Annual Meeting - San Francisco Hilton November 9* 1971 THE CREATIVE CONFRONTATION The control tower is the nerve center of the jet age. And just as the men and women in the control tower plan, guide and map out every detail of the flight, so does the Association serve as the focal point for planning and guiding the actions...or the flight plan, if you will, of the paint industry. The air traffic controller faces the constant possibility of the emergency situation. From the moment the pilot relays trouble, the tower goes into action...covering the runway with foam, getting ambulances and emergency crews into position, calling firefighters to the scene. And, like the watchful technicians constantly scanning radar screens for potential problems, the Association staff and committees scan the public and governmental sectors looking for possible industry trouble spots. And when trouble breaks, NPVLA is ready...using its government relations staff to hammer out equitable solutions, using its technical experts to gather facts and testify on issues, using its public relations staff to reach our many audiences with hard facts, and using our general management specialists to keep you up to date on the latest developments. Never before have your Association staff and committees worked so closely together as a well-oiled machine to protect your interests. And never before have we needed you so much as components in this machine. You're the most important element in our flight plan and in the next three days you'll see why. In Association work as in air traffic control, priorities must be estab lished. We've lined up the issues and will explore them in depth..,issues like...well, that's getting ahead of myself. First let's review the events of the past year which have helped us establish these priorities. It's time we faced the facts...we're in big trouble! In the public's eye, we in industry are the bad guys...we pollute the air; we contaminate the water we put the lead in paint... This is 1971 - the age of the social conscience. Consumer groups are de manding safer products; ecologists are pressing for cleaner water and air; workers are vying for plant safety and better working conditions. And government is 1istening...and reacting. In 1970, government wheels began turning faster...the clean air amendments v/ere passed in December, giving the Environmental Protection Agency power to issue air quality guidelines. 1970 also saw the passage of the Occupational 002433 Roland -2- Safety and Health Act. This set up machinery for federal enforcement of plant safety standards. Leading off the new year - 1971 - the President signed the "Lead-Based Paint Poisoning Prevention Act" which will affect the use of tead-based paint, not only for interior surfaces but for certain exterior surfaces as well. And in July, new life was given to the River and Harbor Act of 1899, forcing industry to obtain permits from the Army Corp of Engineers for discharging waste into navigable waters. Government is react!ng...so is the consumer! Today's consumer is an aware and concerned buyer...banding together with other consumers, he's expressing his interest in ecology and what he, as an individual, can do to preserve it. When he buys your product, he reads the label; he looks at the ingredients; and only then does he check the price! And he's always keeping tabs on you... scanning newspaper items about your business practices...following government decisions on industry control$...and wondering...wondering what part you play In the pollution of our air and water. If you think big brother is watching you...he is! And watching is not all - consumer groups are scrutinizing and testing you. Consumer laboratories are hard at work studying your products, weighing the evidence, making their findings known. Virginia Knauer has ears...Ralph Nader has a voice...and Consumer's Union has eyes. We're not here to escape responsibility...we're here because we recognize the problems confronting us and the need to find answers. This meeting is our opportunity to put our heads together...to brainstorm for solutions...workable and meaningful answers that will serve us not only during our 3 days in San Francisco, but during the 362 days when we're in our cpwn cities and towns. The time has come for broader thinking...for an open-minded creative confrontation. There's probably no-one, no organization, no enterprise which hasn't felt the impact of ecological concern and the reverberation of environmental con trol. The paint industry is no exception. We are directly affected by recent federal legislation authorizing environmental control, not only at the federal level but also at the state level. Without a doubt, the National Environment Policy, Clean Air and Federal Water Pollution Control Acts among others, are but previews of what.'s to come. So it's really not a question of whether or not to take action...it's a matter of what action to take and when. Industry expenditures for pollution control increased by 50 percent between 1969 and 1970 and will increase by a projected A6 percent in 1971. But it's not enough for industry to simply react and respond to anti-pollution legistation..!t must be active in directing such legistation. 002434 "1 Roland 3 That means being one step ahead of the game...working for the prevention instead of the cure...NPVLA has been taking steps in that direction through research programs and professional staff. We can furnish you with legislative and research information that will help you assume a leadership role in these issues in your jurisdiction. By the same token, you must help us. We're recruiting coatings industry representatives to monitor legislative developments in each state. This will give us an alert network through which we can follow the evolution of environmental problems. We need concerned individuals to notify us of and represent us at hearings, send us copies of proposed regulations, and work closely with both our state coordinators and our environmental specialists in Washington. Your involvement, in concert with the Association staff, will re sult in realistic regulations for our industry. Mercury isclicidcdly another one of our Excedrin headaches. One of our industry's major pollution problems, both in terms of use and industrial dis posal, its prognosis is clear - mercury products will be banned. Therefore, all we can do is work to achieve reasonable time to evaluate and formulate around effective substitute products - ones that can protect the paint film as mildewcides and one that can be used in Latex paint as preserva tives. The sand in the mercury hour glass is quickly running out. Therefore, before governmental action is finalized, I urge you to get prepared...start looking into alternatives. The time we have left is critical; On the other hand, we can reflect with pride on the historic role we have played in upgrading our cities through the National Clean Up-Paint Up-Fix Up Bureau. One of the Bureau's high points has been the Annual National Clean Up Contest. At our 1971 convention in Washington, 0. C., Mrs. Richard Nixon did the honors in recognizing Grand Prairie, Texas as the overall winner of the contest which involved 320 competitors. Over one-half of the cities and towns in the United States work through the Bureau in civic'Improvement programs. The Bureau also works with other industry groups who are actively interested in beautif?cation...The General Federation of Women's Clubs, The National League of Cities, The National Recreation and Parks Association. Our latest national recognition will be a profile of the Bureau In Reader's Digest entitled "People's Parks...Pollution Solutions". There are millions of moti vated citizens who are actively interested in solving environmental problems, and the voluntary clean-up concept has served as the catalyst for this action. Air pollution, water pollution, solid waste disposal, mercury....the envi ronmental issues are dynamic ones...they're not here today and gone tomorrow. We are at the threshold of an ere of ecological concern and control, and we must arrange our priorities accordingly! Let us examine the specifics of our number one priority: The Environment. MSDS is not a disease and it's not a new federal agency. MSD$ stands for Material Safety Data Sheet and that spells trouble with a capital T. Trouble 002435 1 Roland -4- because this form is going to cost you time and money...even though NPVLA has been working diligently with government for the past four years, devising and revising the form's content and use. The Materiai Safety Data Sheet today consists of nine sections which require you to list the hazardous properties and ingredients of your products and raw materials, and precautions for their handling and use. Originally, the MSDS was only required for use by paint manufacturers selling products to shipyards. However, it wasn't long before the government enacted a similar standard requiring the MSDS for all D.O.D. procurement, then 6.S.A. adopted it. But it is the recent Occupational Safety and Health Act, known as OSHA, which is destined to have the largest single impact on expansion of the form's use. The act provides for employment of the MSDS in all industrial operations. That means that by the July '72 target date of OSHA's implementation, you may be responsible for securing and maintaining data sheets on all hazardous pro ducts and raw materials used in your plant and sold by you. NPVLA has developed an approved MSDS form and has a task force working with the Department of Labor on further revisions. NPVLA also has prepared two bulletins to assist you in coping with the Material Safety Data Sheet. But if you don't start preparing Material Safety Data Sheets now, all the help we could give you later wouldn't be enough! It may seem that most of our problems stem from the manufacture of paints! But there's another more subtle aspect of manufacture and distribution that bears observation: transportation. Transportation- a word that during the past year has meant minimum package requirements...motor carrier increases... extra fees for protection. 1 Motor carriers may have been a special nemesis this year, but then NPVLA has reciprocated in kind. Because for every problem posed to the industry, the Association forwarded an alternative, a solution, or a strong protest. Take, for instance, the case of minimum package requirements. Motor carriers proposed an amendment to the National Motor Freight Classification Rules that permitted carriers to refuse package shipments not meeting minimal size and weight requirements unless a penalty fee were paid. NPVLA formally petitioned against the adoption of this rule, and, with the help of protests from other shippers, succeeded in having the proposal withdrawn. Motor carriers then endeavored to escalate rates continuously during the course of the past year. Uncontrolled cost escalation could make it impossible for some manufacturers to distribute their product at competitive prices. 002436 Rolend -5- Realizing this, the Traffic Committee lodged over two dozen formal objections and protests with the Interstate Commerce Commission and the Motor Carrier Tariff Publishing Bureaus* The battle goes on and the Traffic Committee plans to persist in holding transportation costs in check. And then there's the problem of extra fees for providing protection from heat and cold. The Traffic Committee has again launched a strenuous objection, this time without success. That doesn't mean that we've given up. It only means that NPVLA will continue to challenge the demand until sufficient evi dence can be amassed to sponsor a formal complaint. All of this costs money. To cope with these cost increasing problems, the NPVLA Traffic Committee and staff have expanded personal contacts with government administrators and other industry groups sharing common problems and the Transportation Association of America. All of these problems and many others impact tremendously on the profits of industry...and this is still the elixir of our private enterprise system. In recent years we have felt the very real and frightening impact of the property insurance crisis. First and foremost, is the problem of getting insurance...and keeping it should anything go wrong. Having been lumped into the chemical industry...a very high risk area experiencing a withdrawal of coverage, your policies can be cancelled for no reason at all. And since your plants are considered an undesirable risk, you are often assessed a state surcharge increasing already high rates by another 25 to 75 percent. But say that a paint manufacturer did get insurance at a reasonable rate. If his plant were damaged by storm or fire, he'd still not be entitled to the total replacement cost for his plant...instead he'd receive a sum com puted with depreciation costs figured in. So all the way around he loses. At stage one, he's refused insurance. If he makes it to stage two, he gets only partial recovery on his claim and then, stage three, cancellation of his policy. Having carefully studied the problem, your directors decided on a daring and innovative solution...start our own captive insurance company and offer policies tailor-made to the industry. Ry last fall Verlan Limited was fully operational, offering "all risk" coverage to A members for the replacement cost of buildings, equipment and inventory. Coverage for B members may be extended in the future. And although Verlan is still in its infancy, its initial reception by the paint industry is worthy of comment. So far, Verlan has insured 35 member companies and over 70 plants. In total dollar value, this means an estimated insured value of $105 million and premiums of over $525,000. 002437 Roland 6 But insurance policies are only one side of the Verlan picture. Safety and risk engineering is the other. Servicing the engineering end of the Verlan operation is the National Loss Control Service Corporation. If a problem exists, 15 experienced fire protection consultants can tell you what to do about it; if your plant needs safety additions or corrections, they'll spell them out. Moreover, NATLSCO and Verlan work very closely with NPVLA's Loss Prevention Committee, a collection of industry plant safety experts. Through this joint effort, the engineering aspect of Verlan's operation can deal with specific loss prevention problems and the needs of the paint industry. Our Manufacturing Management Committee is also hard at work solving in dividual plant problems. Every time Its members meet, they arrange to visit an industry plant, using the feedback from these visits to help identify and cope with the many factory-related problems facing us. In this era of consumerism, product liability is a matter of obvious con cern for the manufacturer. We are in the process of publishing an up-dated document on this subject that will be of extreme value in the day-to-day operation of your business. There has been a substantial amount of case law on this subject in the past few years and our product liability booklet will bring you completely up-to-date, filling the need for more information. In addition, the possibility of financial protection through the use of product liability insurance is also being studied at the present time. There's nothing simple about running a business...particularly one in the paint industry. With rising costs and tighter governmental controls, we've had our share of monkey wrenches. But tomorrow morning we'll deal closely with the problems and more importantly with how to avoid them. The Tuesday morning session will establish a second priority: The Product. Lead...the paint industry's albatross and one of our most persistent problems. Thirty plus years ago, using available raw materials, we put high levels of toxic white lead into our interior paints. Today that old paint is peeling and chipping...and being eaten by ghetto children...some not even three years old! Recognizing this hazard years ago, we took up the fight against lead poisoning by alerting the public through educational programs. NPVLA has designed a new lead poisoning booklet, now being distributed to public health officials, child care centers and all media. We're also getting the message 002438 Roland -7 out through a 15-minute film..."Lead Poisoning"...produced by Allied Films International with our cooperation. This film will be available to all schools, public health facilities and civic groups. Early in 1969, we testified in support of passage of the Lead-Based Paint Poisoning Prevention Act. Now that the Act is federal law, we are pressing for the implementation of Titles I, M and III which provide federal financial assistance for the treatment and detection of lead poisoning. Title IV of the Act Is another area for concern as it regulates the future use of lead-bearing paints. However, it's just possible that our efforts may fall on deaf ears, because the lead issue is constantly changing. Emotionalism i.s gaining the upper hand dictating the elimination of lead instead of just the prevention and cure of lead poisoning. We have an equitable solution to this problem. We're seeking an FOA ruling under the Federal Hazardous Substances Act which would reduce the lead content of all interior and exterior paint to one-half of one percent with mandatory product labeling. While the outcome of this proposal is still uncertain, the important thing is that we are taking steps toward the elimination of lead in paint. We are concerned and we are demonstrating this fact...both to the federal government and to the pub)ic. But there are still other consumer-related problems...and labeling is one of the most pressing. For years, ten to be exact, the paint industry has used warning labels approved by the Food and Drug Administration on "hazardous" products. In add ition, NPVLA published a labeling guide for the industry, listing all recommended labels and pertinent legislation. In 1963, the first labeling guide was issued to Association members. It was amended later, and this year, a complete revision of the book was undertaken. And as labeling laws change and grow in number, there are sure to be more re visions of the guide. Advertising has become another battleground for labeling control. In July of this year, the Federal Trade Commission passed a resolution requiring sub stantiation of advertising claims. That means that companies not only have to furnish all data to support their claims but they also have to tell the Commission if they have no data. 002439 Roland -8- Wi th this in mind, I can only urge caution on the part of the industry. Par ticular attention should be given to such claims as "lead-free, mercury-free, or contains no lead", which are designed to point out the ecological or safety benefits one assumes his product to possess. This example is particularly significant since there may be some confusion as a result of the Lead-Based Paint Poisoning Prevention Act. This law, in defining lead-based paint, appropriately adopted the ANSI Z66.1 standard of one percent lead. It did not indicate, however, that paints containing less than one percent lead could be represented as "lead-free", it would, in fact, be almost impossible to substantiate such a claim since all products contain at least trace levels of lead. There can be little doubt that the FTC will closely monitor your advertising. It follows that you will be under great pressure to label your products accurate ly, leaving nothing to the consumer's imagination while avoiding any overstate ment. The Poison Prevention Packaging Act of 1970 provides for special packaging to protect children from serious personal Injury or illness resulting from handling, using, or ingesting household substances. How will this affect paint products? A 1ist of 24 products responsible for accidentally poisoning children under five years of age is established. Paint is on that I i st,.granted, it ranks last, but who can foresee a change in priorities? Who knows when paint packaging will come under the careful scrutiny of HEW's Food and Drug Adminis tration? Living up to its resolution to stay on top of things, NPVLA was successful in having Charles Hagen, Chairman of the Aerosol Coatings Manufacturers Committee, appointed to the Technical Advisory Committee. This Committee, established for the Act, advises the HEW Secretary on regulations with regard to packaging po tentially hazardous substances* Consumer-initiated regulation legislation is reshaping our industry...from our labeling practices to product composition. The Tuesday afternoon session will be devoted to the force that may very well decide the fate of our industry: The Consumer. Cooperation...the power behind Operation Grassroots. At the federal level, watchdogging by the Association is a fact of life. Wlth NPVLA headquarters In the capital and our government relations staff so deeply involved, the Association can usually perceive and act upon problems before they get out of hand. But what about our batting average at the local level? Without much advance warning, you may find that a new law has been passed banning your product or imposing unreasonable pollution restrictions on your plant. This same law may 002440 Roland -9- touch off a flurry of similar laws elsewhere...eventually leading to a fullscale "regulation epidemic". What's been needed is an elaborate alert system...radar rapid communication to warn of impending trouble for the industry. With Operation Grassroots, something can be done! An industry hotline, Operation Grassroots keeps information flowing between local areas and the national associations, alerting the industry not only to pending local legis lation but to potential problem areas. At the top of the communication chain are four industry receiving channels: NPVLA, PWAA, POCA, and the Federation. Not only do these groups receive and store potentially valuable information, we share it and act upon It as a collective, cohesive unit. Very simply. Operation Grassroots Is a network of information supplied in a chain-like fashion from the local dealer, contractor or industry association member, then to his local association and from there to his national head quarters where it is shared with us. At the grassroots level, manufacturers, dealers and contractors should be keeping their eyes and ears open..reading their newspapers for developments, watching city council dockets for hearings. That way. If any industry-related problems crop up...however small, we'll know about it far enough in advance to do something about it! This system has proven successful in the past. Take, for example, the de feat of Philadelphia's Anti-Aerosol Bill. Vandals in the city were using paints for wall grafittl...as a result, a bill was introduced to ban the sale of aero sol paints in Philadelphia. But quick work by Max Buten, a local paint dealer and past president of the Paint and Wallpaper Association,alerted NPVLA to the proposed legislation. By the time council hearings opened, we were there to testify against the bill. In addition, the Aerosol Coatings Manufacturers Committee developed a program to Inform cities of an effective aerosol removal process. A fact sheet was distributed to over 100 national publications, and more than 200 cities and communities. All that action,..because we were warned ahead of time. But the battle is still not over. The proposal to ban aerosol paints has advanced to the state level where three bills are pending before the Pennsylvania legislature. But once the aerosol battle its over, there will be other battles...other restrictions...Other bans..but will we prepared for them with Operation Grassroots. While we have been much concerned with the competence of today's coatings industry personnel, what about tomorrow? The future needs of the industry must be realized through education. And the Paint Industry Education Bureau is looking out for those future needs. You'll remember that P.I.E.B. is funded 002441 Roland -10- jointly by NPVLA, the Federation and the Canadian Paint Manufacturer's Association. P.I.E.B.'s educational efforts take several directions. On the one hand, the Bureau is designing and implementing programs to promote the paint industry as a lucrative career market. These programs are primarily instituted in high schools, with the help of local industry education committees throughout the country. Counseling personnel are informed of the advantages, opportunities and rewards available in our industry. In addition to recruitment in the high schools and at local job placement centers, P.I.E.B. also places spot announcements with radio stations. Education doesn't stop with the high school graduate..its educational efforts also extend to industry executives with years of job experience. Aging is a mental as well as a physical process...and just as the body needs revitalization through exercise; the mind needs stimulation through education. Or perhaps I should call it re-education. P.I.E.B. offers industry management personnel an annual seminar which updates managerial techniques and approaches. This intensive "Management Development Seminar" in its three years of existence has graduated 70 people. But how can the Bureau be of service to the technical employee interested in advancing himself in the industry? The answer lies in the "Paint Technol ogists Education Program?'. It's an academic program offered through night classes at local colleges and universities enabling technical employees to take advantage of advanced scientific knowledge. Once the employee has completed his course work, he is awarded a P.I.E.B, certificate designating him "Paint Technologist". With further academic work, he can earn "Senior Paint Technol ogist" accreditation. Another important education success story was the Chemical Coatings Seminar, Electrocoat '71 The first conference of its kind in North America, Electrocoat '71 was a comprehensive educational seminar...covering every aspect of electrocoating from metal pretreatment and equipment to application. Who brainstormed the idea of the seminar? It was a small group...called the Electrocoating Seminar Committee...who knew electrocoating was a good thing. With the help of the Chemical Coatings Steering Committee, Electrocoat '71 took shape...and blossomed into one of the best received educational seminars in our industry's history. And with Eiectrocoat '71 under our belt, we can only promise more of the same...more conferences to introduce new products and techniques. The industry is only as efficient as its manpower and management. While 002442 Roland -11- sol v? ng the pressing problems of pollution, consumerism and increasing govern ment intervention, we cannot neglect our individual needs. We*11 take a look at those needs on Wednesday morning during the session on: Manpower/Management. It's obvious that an Association like ours is a very complex operation difficult to operate and perhaps more difficult to explain - or understand. We have often tried to simplify our function by describing it in simplistic terms as "problem-solving" or even more basically "communication". If we believe this, - and we do - then the verbal, visual and written products we tender are important - to us and more especially to you. Oespite our best efforts, there are seme who just don't seem to get the message...and I hope that you're not among them. NPVLA's communications have included any number of publications which can prove valuable to your company. Let me review some of these publications: Annual Report, Image Pension Plan, Labeling Laws and Regulations, Abstract Review, Scientific Circulars, Guide to Government Paint Specifications, Trademark Directory, Hidden Power Sales Training Books, "How-To.." booklets. Product Liability Pamphlet, Compen sation Surveys, Operating Cost Survey, Annual Sales Survey, Raw Materials Usage Survey, Technical and Legal, Traffic and Pollution Control Bulletins, Cost Manual, Credit Manual, Coatings and Member Services Directory. As I've pointed out, industry is under a great deal of pressure, and if there was ever a time that effective industry-member communications was vital, it's now!!! We at NPVLA are doing everything we can to cement communications with our members, making sure, above all, that the right information gets to the right man at the right time. V/e've been studying the content of our Information with an eye toward simplifying it, condensing it, making it more palatable to the reader. And we'll be doing more in the way of analyzing the real or po tential impact of our problems and subsequent government action. You can look for a change in NPVLA writing style and format and even in our mailing proce dures. For instance, our new executive synopsis format for bulletins enables you to quickly identify the problem, understand how it affects your company, and realize what action you should take. We also hope to get feedback from you, our members, through surveys on how information is disseminated within your individual companies. At the end of even the most public service oriented program there comes a time for the commercial...and that is now! We need your active, individual involvement in our industry's affairs.*.and more importantly, we need to draw upon the expertise within the industry to solve the problems we've been dis cussing. Hew do we intend to do this? We're organizing a new task force concept to 002443 Roland -12- tackle major problems. This Idea of using task forces represents a substantial change in the way NPVLA has been constructed for problem-solving. For many years, we've been operating under a formal committee structure, which has served the Association well. However, in recent months, we've found that our traditional structure is not geared to developing quickly enough the kinds of information and answers we need In light of the urgent problems con fronting us. This doesn't mean that we're going to give up any committees. It simply means special task forces will function under the guidance of our existing committees. The task force concept will operate like this. For a given problem such as water pollution, we are asking member companies for people with specific ex pertise to serve on a task force. The leader of the force, a man from one of our companies, will be called the "Mission Manager". He will be given greater responsibility and authority than has ever been delegated to committees. In short, the task force member literally becomes a part of the Association staff and has complete administrative support from headquarters. The most important aspect of the task force is that its personnel will be asked to make a commit ment in terms of time to solve specific problems* Once a solution is arrived at, the task force will probably be dissolved. Also, task force members will not work in Washington..they'll remain at their home offices, except for occasional meetings. Incidentally, the first task forces are being organized under the Community Services Steering Committee. There is a currently popular expression in the vernacuTar, "getting it all together". That's exactly what we are trying to do in the Association. Bring together the skill of the staff of your Association and the specific talents that are resident in the member companies of our industry. The jobs that we face are so big...the priorities so high...and the time permitted for us to act, so short that we must get it al1 together, if we are to effectively operate in today's circumstances. I believe our opening analogy was most appropriate because you can see how the directors, officers and staff of your association have been acting as the control tower for our industry, handling Its problems and charting the future routes to follow. The next few days will give you a much closer look at what we have done...what we have to do...and the priorities that constitute our creative confrontation. 002444 jovember 9, 19/1 |ge 1 f.^alm traduction of local soc lotion presidents. sident's report. GENTLEMEN: WELCOME TO THE FINAL BUSINESS SESSION OF OUR ANNUAL MEETING. THIS AFTERNOON IT GIVES ME GREAT PLEASURE TO INTRODUCE TO YOU THE PRESIDENTS OF OUR LOCAL ASSOCIATIONS WHO ARE WITH US. THEY ARE A BASIC CONTRIBUTOR TO OUR INDUSTRY AND REPRESENT A VITAL PART OF OUR ASSOCIATION'S SUCCESS. I WILL INTRODUCE THEM ALPHABETICALLY BY ASSOCIATION AND ASK THAT THEY REMAIN STANDING. PLEASE HOLD YOUR APPLAUSE TILL THE END. (Dick Hackendah! will give B. Malm cards of those attending.) THANK YOU, GENTLEMEN! (We have not prepared a formal report since most of it was covered by Bob Roland at yesterday morning's session. However, you may want to spend a few minutes making whatever comments you deem appropriate. Followingare some suggested comments.) tJ 002445 liesday Lunch lovember 9, 1971 t,ge 2 i .aim esidenfs report. AT THIS TIME, THE PRESIDENT GENERALLY GIVES HIS REPORT HIGHLIGHTING THE EFFORTS OF OUR ASSOCIATION DURING THE PAST YEAR. HOWEVER, BOB ROLAND DID SUCH A GREAT JOB YESTERDAY MORNING DRAMATICALLY ILLUSTRATING YOUR ASSOCIATION AT WORK THAT IT WOULD BE SOMEWHAT REPETITIVE TO SUMMARIZE AGAIN THESE ACCOMPLISHMENTS. WHATEVER THE NEED, WE HAVE BEEN QUICK TO ACT IN A POSITIVE WAY. WHETHER IT BE A LEGISLATIVE OR TECHNICAL PROBLEM, SERVICE TO A MEMBER OR A LOCAL ASSOCIATION, OR AS A UNITED VOICE OF STRENGTH COUNSELING AND ADVISING PROPER SOLUTIONS TO THE PROBLEMS OF TODAY, WE HAVE CLEARLY DEMONSTRATED OUR INVOLVEMENT IN THE MAINSTREAMOF AMERICAN LIFE THROUGH IMAGINATION AND LEADERSHIP. 002446 iesday Lunch Jovember 9, 1971 kge 3 \ .*alm Solutions H.aws report. i i 1 WOULD ALSO LIKE TO COMMEND THE OFFICERS, BOARD MEMBERS, AND STAFF FOR THE GREAT COOPERATION AND UNDERSTANDING GIVEN ME DURING MY TENURE OF OFFICE. LOCAL ASSOCIATIONS AND COMMITTEE MEMBERS HAVE DONE MUCH TO MAKE THIS A WONDERFUL YEAR AND TO WHOM 1 OWE MUCH. IN CLOSING, 1 AM VERY PROUD TO HAVE BEEN PRESIDENT OF SUCH A WORTHWHILE AND RESPECTED ORGANIZATION, AND 1 THANK YOU FOR THE UNSELFISH SUPPORT EACH OF YOU HAS GIVEN ME. THANK YOU! THE NEXT ORDER OF BUSINESS CONCERNS RESOLUTIONS. NED (look to Ned Foy), ARE THERE ANY TO PRESENT AT THIS TIME? m i M g Y'l--'vC (If there are any, call on Ned Foy.) ^ t> 1 WILL NOW CALL ON BOB CLARK, CHAIRMAN OF OUR BY-LAWS COMMITTEE, FOR HIS FINAL REPORT. BOB! (R.O. Clark gives his report.) THANK YOU, BOB! 002447 UE$ esday Lunch jovember 9, 1971 ige 4 . Malm ominating report. 4 I1 NOW CALL ON ERIC ORLING, CHAIRMAN OF OUR NOMINATING COMMITTEE,TO MAKE HIS FINAL RECOMMENDATIONS ERIC! (E. Orling makes his report and at the end says:) "MR. CHAIRMAN, 1 MOVE THE ELECTION OF THE ENTIRE TICKET AS PRESENTED BY YOUR NOMINATING COMMITTEE AND THAT THE ASSOCIATION SECRETARY, ALLAN GATES, BE INSTRUCTED TO CAST A UNANIMOUS BALLOT FOR THEIR ELECTION." (Bernie Malm then asks for a second to the motion, for any discussion, and then asks for a vote. Call on Allan Gates to cast the unanimous vote.) THANK YOU ERIC! GENTLEMEN, IT'S BEEN AN EXCITING YEAR, AND 1 KNOW THAT UNDER THE EXECUTIVE LEADERSHIP AND SKILLED HAND OF OUR NEW PRESIDENT MUCH WILL BE ACHIEVED AND NEW DIMENSIONS OF ACTION ADDED. 002448 fuesday Lunch November 9, 1971 fage 5 jlph Bauduin 4 SO, RALPH, WE ARE ALL BEHIND YOU AND WE WISH YOU WELL AS PRESIDENT FOR THE COMING YEAR. (Ralph comes forward and accepts the gavel and they pose for pictures.) THANK YOU BERNIE, GENTLEMEN, FOR THIS HIGH HONOR, AND I PLEDGE TO YOU THAT THE COURSE OF ACHIEVEMENT SO WELL CHARTED BY BERNIE WILL BE CONTINUED, EXPANDED, AND DEVELOPED AS THE NATIONAL PAINT AND COATINGS ASSOCIATION ACCEPTS THE CHALLENGES OF TODAY FOR A BETTER TOMORROW. AND BERNIE, TOMORROW WE WILL HONOR BOTH YOU AND FRIEDA IN RECOGNITION.OF THE SERVICE YOU HAVE SO UNSELFISHLY GIVEN. GENTLEMEN, THE NEW MEMBERS OF YOUR BOARD OF DIRECTORS WILL BE INTRODUCED TOMORROW, BUT !T GIVES ME A GREAT DEAL OF PLEASURE TO INTRODUCE TO YOU, AT THIS TIME , THE OFFICERS WHO WILL SERVE WITH ME DURING THE COMING YEAR. 002449 i- November 9, 1971 tags 6 i..^n Bauduin YOUR NEW VICE PRESIDENT -- CHUCK BRETHEN AND YOUR NEW TREASURER -- LARS LARSEN. WE LOOK FORWARD TO HOSTING YOU AT THE RECEPTION THIS EVENING AND SINCE THERE IS NO FURTHER BUSINESS TO CONDUCT AT THIS TIME, THIS MEETING IS HEREBY ADJOURNED. 002450 FINAL REPORT OF THE BY-LAWS COMMITTEE At our opening session. As Chairman of the By-Laws Committee, I gave notice of the proposed amendments to the By-Laws of the National Paint, Varnish and Lacquer Association and the proposed revision to the Non-Exchange Agreement. The proposed amendments are as fol lov/s: 1. Amend Article 1 to read as follows: Title -- The name of this organization shall be the National Paint and Coatings Association, Inc. 2. Amend all other Articles and/or Sections of the By-Laws, as appropriate, to reflect the new name of the Association. 3. Amend Article VIII, Section 8, to update the list of regular Committees by: a. deleting the Simplification Committee b. changing the name of the Chemical Coatings Technical Committee to the Chemical Coatings Industry Committee and the name of the Trade Sales Steering Committee to the Trade Sales Marketing Committee c. Add the following committees: Aerosol Coatings Manufacturers Committee Community Services Steering Committee Fire Retardant Paints Committee Furniture Finishes Group Steering Committee Government Suppliers Committee High Performance Architectural Coatings Steering Committee Industry Suppliers' Committee Inter-Society Color Council Joint Coatings-Forest Products Industries Steering Committee Joint Paint Industry Coordinating Committee Labeling Committee Loss Prevention Committee Manufacturing Management Committee Marine Finishes Manufacturers' Committee * *. Packaging Committee Seamless Systems Manufacturers Steering Committee 002451 4. Amend Article XVI/ Sections 5 end 6, to read as follows: 5. To recognize the right of employees to use all honorable and reasonable efforts to better their conditions but to refrain from directly or indirectly soliciting or bidding for the services of a specific employee of another member; to promote, in light of contemporary hiring practices, high ethical standards in the area of manpower recruitment. 5. Amend Article XVI, Section 7, to read as follows: 6. To refrain from the unethical practice of taking in exchange for our own products the paints and coatings of another manufacturer. 6. Amend Article XVI, Section 9, to read as follows: 8. Any violation of this Code shall be referred by the General Counsel of * the National Paint and Coatings Association, Inc., to the Executive Committee . for consideration and action. To ensure fairness, elementary due process requirements will be met throughout these proceedings. 7. Revise the Non-Exchange Agreement (In the interest of saving time, the amended version of the Non-Exchange Agreement will not be read unless so requested. This reading may be waived since a copy of the proposed revision was furnished each member at the time he picked up his credentials at the Registration Desk.) The above amendments have been recommended by the Board of Directors, after submission to the Board by the By-Laws Committee, which is comprised of the following: 002452 -3R. O. Clark, Chairman - Jewel Paint & Varnish Co., E. J. Butler - McDougall-Butier Co., George C. Heh - Lambert Corporation of Florida, Clyde L. Smith - Ameritone Paint Corp., B. A. Malm (Ex-officio) National Paint, Varnish and Lacquer Association, Inc. Mr. President, I move that the proposed amendments to the By-Laws and the Non-Exchange Agreement, as above submitted, be adopted and approved. (R.O. Clark, Chairman, By-Laws Committee) 002453 FINAL REPORT OF THE NOMINATING COMMITTEE Mr. Prestdent, Gentlemen: Your Nominating Committee Hat the honot to proton* lt final roport to our 1971 Annual Mooting. Inasmuch as no further nominations havo boon made, wo protent at this time the slate of the elective officers to be filled as originally presented at the opening session of the Annuel Meeting as follows: FORA ONE-YEAR TERM President - RALPH J. BAUDHUIN The Vaispar Corporation Rockford, Illinois Vice President - C. A. BRETHEN, JR. Wyandotte Paint Prod. Co. Wyandotte, Michigan Treasurer - E. C. LARSEN PPG Industries, Inc. Pittsburgh, Pennsylvania Regional Vice Presidents - New England Zone JOSEPH S. W. PARKER Sterling-Clark-burton Carp. Malden, Massachusetts Eastern Zone C. S. BROWN National Manufacturing Corp. Tonawanda, New York East Central Zone F. J. DERRICK The Perry & Derrick Company Cincinnati, Ohio Southern Zone HUGH H. MAYBERRY Interstate Paint Carp. Brunswick, Georgia West Central Zone ROBERTA. TAPPENDORF Enterprise Paint Div. of Insilco Carp Chicago, Illinois Southwestern Zone HAROLD WEINBERG . Kwel Paints, Incorporated Denver, Colorado 002454 Western Zone Board of Directors (Clou A) B. A. MALM -2 D. W. KENNEDY FOR A THREE-YEAR TERM Colony Points, Dlv. Conehemco,lnc. Los Angelo*, California DeSoto, Ine. DesPlainee, Illinois MAD RICE C. WORKMAN WILLIAM R. BARRETT, SR. WILLIAM E. HOOD W. C. KIN SELL JAMES C. HENDERSHOT THOMAS M. REINHARDT RUSSELL BANKS (Clou Bj RONALD S. WISHART WILLIAM MCKINLEY BISHOP FRANCIS X. DWYER Ben]amin Moore &Co. New York, Now York inmont Corp. New York, Now York Indurall Coatings, Inc. Birmingham, Alabama Glidden-Dorkee Div. SCM Corp. Cleveland, Ohio Reliance Universal, Inc. Louisville, Kentucky International Paint Company New York, New York Grow Chemical Corp. New York, New York Union Carbide Co. New York, New York Enjoy Chemical Company Houston, Texas Tenneco Chemicals Nuodex Div. Piscataway, New Jersey 002455 -3Th1 report is respectfully submitted by -- NOMINATING COMMITTEE Eric G. Orling, Chairmen, N L Industries, Inc. Frank E. Bolway, D. H. Litter Co., Inc. George Gable, Perfection Paint & Color Corp. William H. Lutz, Pratt & Lambert, Inc. George S. Rattner, Paragon Paint & Varnish Corp. Ronald Wishart, Jr., Union Carbide Corp. B. A. Malm (ex-officio) Mr. President, I move the election of the entire ticket as presented by /our Committee and that the Secretary, Allan Gates, be instructed to cast one ballot for their election. 002456