Document 2q10Ry9wrN15RkZ0B1VpExBjR

WRG001672 `2ofvronTTE DIVISION 'W. R. GRACE & CO. INTER-OFFICE CORRESPONDENCE n... December 9, 1967 03t>29(M5 To R. A. BlelchLibby From ,,R U. Sterrettat Home Office Subject: REPORT OF TRIP TD KALISPELL. MONTANA Dear Butch: -- I am giving you a copy of a confidential report written by Ougen. RldS/jf Attachment '~I-- Sincerely, sfy? R. Id. Sterrett *1S33,, PERSOPAL AWD CCTfFinFtrriAL 036290*16 II T mwp-- FROM; C. 7. Dugan t id**- Pater Kostic J. P. Cabalone DAXRi SUBJECTS December 5 19<>7 - Report of Trip to Kallapell. Montana This la a report on a/ trip to Montana In connection vittr a'hearlng before the Montana- Industrial Accident Board on a claim by a forar employee, L, P. Welsh. * The defendants in the proceedings, Zonollte Division of V/. R. Craca i Co. end Maryland Casualty Coopiny, verc represonted by S. Y, Larrlck, Smith Block, Kailape11, Montana who vaa retafflEd by Maryland Caaunity. The hearing van held in Knllspell on L'ovenber 29 before Robert F. Svnnbcrg, Chairman of the Industrial Accident Board. On HoveTier 28 after arriving at Libby I vent up to tho operations with Hr. Bleich and Kr. Lovick to observe the operations where Mr. Welsh hed been employed. That night Bleich, Ig^ckfJ^tomg^j^usuc^dovxs^prKallspall'viierv-ve^aet with Larrick^toolacusa Aha cane. At hearing was conducted on the 29tb and<concluded4pxaaptv tor aubad^lpr by us to'the Board of all chest X rays of Kr^Welsh.taken slnco<institutlon of the regular X ray program, - The flrst purposo of ny*trlp was to 'bbaerve the caliber of. aiahed-bgr the counselret*$ndJjjU''' $ M&ylt idlffCj^rrick^to be a very able'anB -` agrreosiro/1 __ sr who vea^eqncemod with protection of Craotav . eus'mticb as* ^presenting Marylanfl"Cas unity, Tho flrstlpolnt raised by him in our discussion Tuesday night vaa vhat he called the "big picture" or possible total exposure of Crace. l!e pointed out that probably our only defense In the particular case vaa a technical one; namely, that, the disease vaa contracted before enactment of the Montana Industrial Disease Act and veil before addition of the disease of aabcsto3is as an industrial disease. If vo vere to win cn thi3 technical point it seemed likely to hir that the clainent could then bring a common lav action with a recovery that could veil exceed recovery under.the Act, Maximum award under the Act for one disabled by an industrial disease is $60.00-per veck for 6C0 veefco. In a recent Montana ease an caployoo vaa held not to have been covered by the Act in connection 201533*2 W. L. Taggart '' ' -2- December 5* 1967 vitta inhaling of cenent dust ud he then recovered approximately $50,000 In a coebon lav action. Since our lest annual series of X rays of employees shoved approximately 32 employees (about 1 In k) conditions vhieh-night be the start bf asbestoals, the*flH^^'of our exposure under the Act could run as such as $1,150,000, and at coseon lav could be as such as $l,6oo,OOO.--d(0 concluded,-hovever,^that our only course vas to handle eadi.case on its merits,.trying to Unit our liability aa auch as vs ccftfl.O.'ifl" each case aa It cane along and that ve vould defend the Velsh case 'on the only technical ground available to us. At'tfce-heeriiig -dainanVs counsel called (l) the dalpant, (11) an enployee named Snexfcen who had been employed for one year, (ill) Arthur Bundrock,. the aecretary of the local labor union, (lv) Roy Kujava, our chief engineer, and (v) Mr. Blelch, our Manager, It _vea_brought out that Ur. Welsh cone to vorfc for Zonollte In 1J)19 -after p^ftlous employment as a logger, butcher and trainman,. Be?--" -v vorked for Zcnolite until November 19&> when he vas retired because of hl6 disability, (Mr. Walsh Is nov 6U years old.) During his ceployKont vith Zonollte he vorked for 37 days in tho mill end than drove a truck for many yoars, primarily carrying ore ecccentrate down the Bountdn to tho railroad siding. About 1956 he started to vork In the varohouae -vhcre ne-irawfimed exployeduitll his' retirement. It vas brought out, however, that In his ccploynent In the varehouse . tlnortsijjghw^Bo topjftter places In the operation, r v>. ^ ^rs-v- \ . *-. *- 1 * .* Much testimony vas given as to the quantities of dust caused by the operation. The vorst concentrations vere admittedly In the mill and in the truck bed vhen the ore vas loaded. Hr. JCuJava's testimony,- however, shoved that visible dust lsinot^ .t It vas brought out in tectl-mony of the employees that a dust ccunitte# vas ftJimed about ftvs years ego end that the casnittee dealt vlth ncnarfEcnt and the EtaW^Hc-ird cf Health regarding dust conditions at the operation. Mr. Vclsh's condition vas first diagnosed an silicosis vhcu he first consulted doctors about 1959. It cccns that osbcstosla cannot be definitely established unicar. a biopry is done oa lung tisouo. Mr. Welsh submitted to cn operation lant June for the purposes of obtdning the tissue for the biopsy vhich definitely established asbestcsls end that vas acknowledged on tha record. It soens clearT'therefore, that he has contracted totally disabling . eoboitosTo and that his cr.ly exposure to csbestlfore mineral vas during hin Zonollte enploycxnt. * *- W, L. Taggart - -f =" - 036290*18 3 - Deceober 5, 19fT Mr, Kujava told of teste made at various locations in tbs operation and at various tines to determine dust content. He indi cated that United Btates Public Ilealth standards have established a meodnua-of-20,000,000 ports of dust per cubic'`foc^gf air?* studies indicated that tho aobestiforn content of the dust at Libby vos in the range of 12? indicating on asbentlfora content of 2-3,000,000 parts per cubic foot. He stated that United States - Pub!!* iH--1th standarda-set a ^hrssbelB*Hlt of 5,000,000 parts per cubic foot before aebeotifom material in the atnoephere Is hazardous to the health of a noraal person. His studies showed that the equlpaent for obtaining a dust count could not gat a neasurable count in the sill coaplex area outside the Bill itself. There appeared to have beer reports frost tho State Board of Health respecting continuing studies of the situation in one of vhich it vos ctoted that the* ashoctifont content ran as high as UO? although this stutenent vos vcisupported by any avldcnee of scientific test. At nny rate reports of the State Board of Health are inadmiss ible by statuto in any legal proceedings and, there foie, could not be admitted in this hearing. The purpose of calling Bleich was to attempt to establish lesion against interest node by Blcich to the dust cowittco 'regarding the csbcotlfonn content but this otteast vas not Z r JW ft-;5 " ^ ^During the afternoon .coffee brook Hr. Svanberg, Chalrnan of the Board, Joined us and questioned whether some nettlencct could Apparently he vented to be taken off the hook in vhat is a mv end Boat difficult field. Mr,. Larrlck told hla that certainly Mr, Welsh had aabcotoels and that probably it vas contracted at XoQolitar but^that it,vo* be foyo Jths eneotnont^of th^|ictanjfr Bvsnborg - -agreed tkatThe Act could not belinlied retroactively, Larrick said he vquld consider settlenenVcut that the Boir^Ob^^Bld^Beke -- any decision along-4dala line vas travelling and not available (reference to the fact that you were enroute to Atlanta). To sumorize, I think the record is clear that Welsh contracted asbestos Is froa Ms ennloynent with us but tho Hoard wny agree that he vaa not covered at the time the disease was contracted. The implications of the case ore apparent, A record has now been Bade that there is danger of csbestor.ls in our operation. It shows efforts to improve the picture such as saedntory use of respirators in critical areas, periodic X ray checkups, independent scientific tests of dust conditions end installation of dust exhaust syateK, Unfortunately, however, ve know that there is a potentially large group.of csployces who nay already have the beginnings of the 2015 33A4 03629049 V* I*. Taggart k December 5, 1967 dieeaso ao that eventual liability cannot ha raadily forecast. Undoubtedly v vill be required to taka further and aera expensive nsasurea for Uniting the exposure. It la also true that as norw Is learned about the dieeese the standards nay ha tightened considerably. One point that has not been ncntloned In any of the discussions-so for le the possibility of liability to tho general public, although this is probably a vary nlnor exposure. However, it vas brought out in the testimony by cno of the employtea that Zonolito had remitted employees to cut Christmas trees on the property but that after a couple of years thlo was discontinued; the witness stated that the reason for the discontinuance vas that the purchaser of the trees refused to taka any wore because they vere ao covered with dust. gjif Also unnenticned in these diseuhsiens vas any question ofaSrCl obligation apart froa logoi liability. Bob Sterrott vill consult with J-M as to cathode and costa of protection against osbaatosla in an asbestos operation such as J-^.i conducts. Ho vill also check with Stewart and Skardon regarding tbe mineral content in Couth Carolina operation, although he is alsost certain that asbestos does not occur there. I have also asked -ftrterJCoatic to look into the problem. " ... , - _ Ci* Dumb . . , . *. fc, * ' -0 ~ ir .jllgw. : 201^33^'