So are you saying pin 1 is a direction control pin? So for in to out pin 1 should be low right?
No its not a direction pin.
Imagine the ic as being 16 mechanical switches with one side/pole of all the switches linked,,, thats the 'Z' pin.
The address lines are 4, so only one switch can be ON at any one time.
EDIT:
Being 'a mechanical' analog it means is switches Z, to either selected pin 0 thru 15 i/o's are b-directional
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