Document 2q0RMQzwnbvBmEKm5dO67oxLb

i 'A I Johns-Manville Internal Correspondence To: D . HH. Markusson From: Barba Date: ISSaintiffs fi ^EXttlBlXr;;:: Copies: Jef fr Route Subject: RHODE Conve Conn (to a lesser degree) yielded the following informa tion relative to ownership in Rhodesian mining operations. JM purchased 100% of.Rhodesian Asbestos, Ltd^ in approxi mately 1951. This consisted of three mines (one named Temeraire) and a mill approximately 25 miles west of Victoria. Production was begun in 1953. One of the mines wasj|(later abandoned. Only chrysotile fiber was mined there. Most of the fiber was sold in Europe. However, at one time they became so desperate for sales that they prevailed upon the Pipe Division to use some of the fiber, and at that time, some was shipped to Pittsburg, CA. The mines were sold in approximately 1956/57 to TurnerNewall, who now operate the same as Rhodesian and General Asbestos Corporation. They operate two mines, named Gaths and King. King fiber is transported to the mill for pro cessing. I have made a check of old Legal Department files and find nothing. Noel Hendry says that if any files still exist, they might be located at the offices of John Evly or J. R. M. Hutcheson in Canada. When asked if Johns-Manville Corporation or Canadian JohnsManville Corporation owned the mine, Hendry was not sured but thought it was more likely that CJM wouldrhe the same. Please let me know if you wish me any further information. ^ bd MTC 001604 ?-- > m Johns-Manville Internal Correspondence To: Barbara Diemer - 2-18 From: Jim Spangenberg - 3-22 Copies: Jeff Brown - 2-18 Subject: RHODESIAN ASBESTOS LTD. YOUR LETTER DATED JANUARY 8, 1980 According to our tax records, Rhodesian Asbestos Ltd. was owned by Canadian Johns-Manville Company Limited (CJM). Information from our CJM tax return schedules first shows Rhodesian Asbestos Ltd. in 1952 as follows: CDN DOLLARS 1952 Advances to Rhodesian Asbestos Ltd. (Company in formative stage) $ 480,118 1953 1,927,647 Shares Rhodesian Asbestos Ltd - at cost 3,021,062 1954 2,221,447 Shares Rhodesian Asbestos Ltd - at cost 3,473,514 1955 2,221,447 Shares Rhodesian Asbestos Ltd - at cost 3,473,514 1956 2,221,447; Shares Rhodesian Asbestos Ltd - at cost Less Provision for Losses 3,473,514 1,651,000 1,822,514 1957 2,221,447 Shares Rhodesian Asbestos Ltd - at cost Less Provision for losses 3,473,514 1,651,000 1,822,514. The investment does not appear on the 1958 tax return schedules as the shares were sold sometime in 1958 as evidenced by the following note on the CJM 1958 financial statements: MTC 001605 Barbara Diemer Page 2 "During 1958 a loss of approximately $2,052,000 was realized on the sale of the investment in the partially owned unconsolidated subsidiary (Rhodesian Asbestos Limited). Of this loss, $1,651,000 was provided for in 1956, and approximately $374,000 has been charged to income in 1958." The exact amount charged to income in 1958 was $373,157. The total'-' loss of $2,024,157 ($1,651,000 + $373,159) was not permitted as a deduction for Canadian income tax purposes, in any year, since de ductions were fully disallowed for capital losses on investment. JJS/ds MTC 001606