Document 85KY7JxJjnkJ3MMK8X4gB6Qea

Taking Giant Steps Two chemical process companies took giant steps toward diversifying into the oceanography field last week, and twd^aper companies with com bined salSlsNqf nearly $1 billion/year reached a\ tentative agreement to merge. (1) Bendix^Corp. (Detroit) ex panded its oceante activities bjt ac quiring for an unat^closed amoumt of stock Marine Advisers (La jfclla, Calif.), producer of oceakpgraphisinstruments for petroleum'fcnd utaty companies, state and federarWencng, and firms engaged in scientinllyjr* grams. (2) Fluor Corp. (Los Angeles^ and B. L. McFarland and Associates (Fort Worth and Midland, Tex.), a group of five companies involved in offshore and onshore drilling opera tions, have agreed to merge, subject to stockholders' approval. The Mc Farland group operates five offshore drilling rigs in the Gulf of Mexico. (3) A tentative agreement to merge has been reached by U.S. Plywood Corp. (New York) and Champion Papers, Inc. (Hamilton, O.). It is sub ject to both directors' and stockhold ers' approval. The corporate identities of both companies will be preserved. Reducing Gas Rates The Federal Power Commission has ordered El Paso Natural Gas Co. and Transwestern Pipeline Co. to reduce by $17 million/year the price of na tural gas in the southern California market. The rate cut stems from the July 26 decision in which FPC turned down the application of Gulf Pacific Pipeline Co. (a Tenneco subsidiary) to supply gas to the Los Angeles area (CW, Aug. 6, p. 20). Gulf Pacific last week filed for a rehearing. El Paso and Transwestern were told they would have to lower their rates to reflect the lower costs result ing from the bigger deliveries pos sible in the expanded system. At the same time, FPC ^.aid it would conduct further proceedings to decide if cus tomers should get additional benefits resulting from more liberal deprecia tion allowances. FPC has given the companies 45 days to show cause why the reduction should not take place. Sources of airborne asbestos Asbestos-lined ducts used in centrally air-conditioned buildings. Asbestos ducts and insulation in home central-heating plants. Motor vehicle brake linings and clutch plates. Auto undercoatings. Asbestos ceiling and floor tiles. Asbestos shingles and sidings. Construction and demolition Fitting, cutting, and removing asbestos-filled wallboards and floorings, piping and insulation. Incineration of asbestos-filled scrap. Improperly filtered effluent from asbestos processing plants. Asbestos: Awaiting Trial9 The asbestos industry--whose end products are valued at more than $500 million/year--may be in for a shakeup. It could come in the form of federal legislation limiting the use of asbestos, because asbestos has been ac cused--though not yet "convicted*'-- as a significant health hazard. Prob able contender for asbestos markets: plastics. Recent studies have convinced U.S. Public Health Service specialists and other medical authorities that about 40% of all Americans have mild, chronic cases of asbestosis, even though most of them never worked directly with asbestos. Unlike other airborne dust particles, asbestos fibers have the ability--al most as much as activated carbon-- to absorb polycyclic hydrocarbons and arsenicals. Furthermore, says USPHS, in the past 30 years the as bestos-related cancer rate has in creased sixfold. The Inferences: While the average asbestos worker is well protected, the man on the street is not. The 3x1micron asbestos fibers in his lungs can come from a variety of sources (.table, above). And medical experts say there's no way to assess hydrocarbon content in those lung deposits. American Cancer Society research ers feel certain there is a synergistic relationship among airborne asbestos, smoking and lung cancer. They reason that the nondegradable, hydrocarbonsoaked fibers may well be a constant source of lung irritation. PHS officials think it may take them up to five years to establish asbestos' true role as an air pollutant. However, Congress may act before the research is finished. Says Repre sentative Robert Watkins (R., Pa.): "We've seen enough evidence al ready. Asbestos will never get a clean bill of health. With just a little more data we'll move for controls and strict ones." Some form of asbestos control is in the offing, public health officials are certain, if only part of a larger clean-ambient-air program. However, there is the danger that Congress may enact rigorous controls on the quanti ty of asbestos that could be used. In that case both Canada and U.S. asbestos products manufacturers would be hard hit. Of the five forms of asbestos mined today, chrysotile asbestos holds the predominant mar ket position because of its insulat ing and processing qualities. Canada produces more than 80% of the chrysotile asbestos used in the U.S. In both countries, a number of serious dislocations would occur. At present, there is no known ma terial that could fill all of asbestos' strategic roles. On the other hand, should federal controls merely call for higher standards for binders and shieldings, that would spark a rise of new products, with plastics taking the lead. Reason, say industry spokesmen, present polymer technology could easily turn up products to replace as bestos in most end-uses. 32 CHEMICAL WEEK September 10. 1966 HWBUI0012682