Document Rjedb7QBev9L226vEYMBjR21E

-ronr joseon josepn 10 FACSIMILE COVER PAGE uare- i i ime: km Kage i ot aj To: 14256997033 From : Joseph Joseph Sent: 10/2/01 at 7:40:20 PM Pages : 20 (including Cover) Subject: Union Carbide Asbestos Mine David - Here`s the fax. Read the entries. Some of them disclose their awareness that the sort of asbestos they were mining was rare. I will take another look at the 1961 and 1960 annual reports. I also included the 1964 Moodys which is the first reference to asbestos. You will find it under metals and minerals. Let me know if the fc transmits properly. The cover pages will be very dark, but the dates are quite legible. - Joe From Joseph Joseph To 14256997033 Dale 10^201 Umo 7 40 26 Pfvl v Page 2 of 20 Frtm JoMph Josrtfh To 14256997033 CHI* 1072101 Trw 7 40 26 PM aae3of20 Number of Stockholders :a Classification of Stockholders Slacfc Per helr#ff.` Cent Par Ciint aafli ........... Vtf ..................... Kes; IV593 | 42.73 | 31 43 12.57 1 5.350.04S 4.W2.4S3 ? 511 796 ic nt AccAtmti :?23i 9.13 417.851 insiitutiom" . ,. 1.939 1.39 V'4.888 Corooratioiu 6 Partnerships .. 1.203 .93 449X161 kct'inen........... . : Broken .. .. 361 1.16 13.4*1.764 3 1X42.977 iicoOKa Companies . .. 144 27 912650 ii'.eitmeit Trust* ........... . 149 .12 IS2.B4 13.77 :62S 4 34 1.39 1 58 1 63 44X0 1W 3.03 51 129 216 ICO.03 30.09# 473 100.03 `U1 CwCa* SOcWtfOtff 31 U ** 7. 1962 Sac.roej.eK. 3glP Into It* H.EP Sicr't* 1 3l(ra; C't* rjv-' !-*** (OPIlCiH i' two n-h'cs aCov v*- Mve: jt iy. ion qjrSnJ? ? Mr.^stflp mine tn time 'r!<rorre irWifilJirS. Id L9>?. i c.v ijrnol * kiaritfr . n le.iii.rli v,i|. ip.oi *. np.Mi' ft n pr^dix '*. " v- "w it .<* -vs -'>( !>* m ii iriioiM . ir.1 :l ipo'Cjk ii*;i 0 -;:c -s- Nuclear--The nuclear reactor in the Corporation s research center near Tuxeco. New York. started production of radioisotopes, which are being sold to a numbe* ot companies in the New York metropoli tan area for industrial and research purposes. Union Carbide Nuclear Company also has a woll ocnipped neutron activation analysis labo ratory at this center In this type ot research, the substance to be analyzed is made radioactive by bombarding its atoms with neutrons in a nuclear reactor. 3y analyzing the type of radiation given off. scientists can identify the amounts of various elements in the sample under study. The laboratory is analyzing samples for various divisions of the Corporation, arid for other industrial and research organizations, and has a joint development program with the Atomic Energy Commission. At the uranium-vanadium processing mill at Uravan. Colorado, an on-site sulphuric acid plant was constructed, which has resulted (0 lower processing costs. Also development of a unique asbestos deposit m California and associated research and development work resulted In the decision to build a Pilot plant there to produce asbestos fiber. Consumer Products--Sales of Union Carbide Consumer Products Company snowed continued strength in the 0 vision s two major product lines--Evebeaoy batteries and Prestone anti freezes. The Company started construction of a new plant for producing flashlight and radio batteries in Greenville. North Carolina, which is scheduled to be completed in the fall of 1963. Among the Evcreapy products marketed in 1962 was a senes of miniature alkaline batteries for use n transistorized electronic equipment Five new car care products were introduced under the Prestonf. trade mark, a special si icone car polish, a foam upnolstery cleaner, a transmission sealer, a spray de-greaser, and a wash and wax concentrate for automatic car washing establishments Canadian Operations--Canadian sales exceeded those of 1961 by a substantial amount. In 1952. Union Carbide Canada Limited started several important construction projects. These mcludod a further expansion of polyethylene resin and compounding facilities at the Montreal East Quebec, p ant: and new industrial gas plants in Alberta and Nova Scotia A number of products previously imported into Canada were produced there for the first time during the year, including mediumdensity polyethylene resins and films, a new ferrosihcon alloy, weld ing and cutting nozzles, and liquid oxygen cylinders. Sale of Pyrofax Gas Company--At the end of the year, the Corpora ton sold its Pyrofax Gas Business and assets to Texas Eastern Transmission Corporation, who will operate it as a wnoHy owned subsidiary. A capital gam of $8.086.000. or 20 cents per share after tax. was realized. Over 40 years ago, wc began marketing propane liquefied petroleum gas to consumors under the Pyrofax trade mark as an cut et for this by-product of our chemical pro duction. In recent years, ourg'owirgchemical business has required this gas as a raw material, and therefore Pyrofax has had to purchase 15 From Jos*p Josph To 14256997033 atJU'S'1-- 2" ALISON A CUMMINS GEORGE C. WELLS fred l SMANKLiN 26 ! Data 10/2/01 Tm* 7 40 26 PM Pag* 4 of 20 Union Carbide Canada Limited PRESIDENT: AJivon A Cumm.ng VICE-PRESIDENTS J S De-r. E. O Lost". M*..y Tj/Ir. V S. Wyman SECRETARY AND TREASURER R. O. Hold ten This subsidiary of the Corporation has its executive and general offices in Toronto Its operations are carried on through six divisions, which employ about 4.000 peo pie in 36 plants and 20 sales offices throughout Canada In addition, it has a subsidiary company engaged in minerals exploration The products of Union Carbide Canada Limited correspond for the most part with the products of Union Carbide in the United States. They include a wide variety of carbon and graphite products, chemicals, alloys and metals, industrial gases, welding and cutting apparato; plastics, and food casings. A number of consumer products also are produced, including pRESTONfc anti freeze and other car care products and many different types Of Evereadv batteries and flashlights. Union Carbide International Company PRESIDENT C-vorgv C W.u* EXECUTIVE VCE RLSIOE NT T R. Ragland VICE-PRESIDENTS C M. AlwGOC. e. T. Ru'enyoe. R. V. F*nII. K G. KutC*W. J E. Pofli. F H R.`- J. H Ware, F. P. W-lvon. W. A. WoodCOC* The International Company is responsible for export sales of the Corporation s products. It also represents the Corporations interests m numerous affiliated manu iacturing and sales companies throughout the world. Operations of these associated companies include plants for plastics in Australia. Belgium. Brazil. England, India. Italy. Japan, Mexico, and Scotland; for chemicals in Australia, England. Italy, and Puerto Rico: for carbon and graphite in England. France. Italy. Mexico, and Swede-.: for alloys in England. Norway, and the Philippines: lor calcium carbide in Bra; Norway, and the Philippines: for oxygen, acetylene, and apparatus in Brazil: tor food casings in 3razii, England, and France; and lor batteries and flashlight cases m Argentina. Australia, Brazil. Colombia, Hong Kong, India, Indonesia, Malaya. Mexico. New Zealand, the Philippines, Singapore, Thailand, and Venezuela. Union Carbide Ore Company PRESIDENT: F-cQ L ShankUn VICE-PRESIDENTS: WllflRi fii>nl W. R. L*wi, Purport West. Jt. The Ore Company procures and processes ores used by the Corporation for metal lurgical and other purposes, such as battery manufacture. It also sells ores to others Ores of particular interest are those containing manganese, chromium, columbium. and tantalum. The Ore Company operates jointly with the Nuclear Company an ore and minerals laboratory at Sterling Forest, New York, engaged primarily in develop* ing new methods for locating, mining, and processing ores and in expanding the uss of various minerals. The Division has a large ore-processing mill at Newport Ne- I Virginia, Which ships processed ore to domestic plants, as well as to plants Canada and abroad. The Ore Company is the Corporation's representative for numerous affiliated overseas mining companies. From Joseph Joteph To 14256W7033 Dale 1CV2/0I Time 7:4020 PM Page 5 of 20 F'om Jo*#ph Jo*ph To 4256997033 D4U 1CV2/01 Tin# 7 40 26 PM Pag# 6 of 20 `f i 3 Airlift Shipment to Rocket Sites- m*s truck trailer containing liquia helium woe part of an airlift -ihipment to missile development sites. The supmcold fluid is used fo- precooling rocket engines prior to ignition. The specially insulated trailer carrying the helium was designed by the Linde Oivision. which also supplied the lisuid nehum. nilicantly increase their usefulness for research and commercial application. Metals--The tonnage of alloys sold by the Metals Division increased in 1963 over the pre vious year, keeping pace with the increase in the production of iron, steel, and aluminum. Dollar saies. however, continued to be affected 37 lower prices in all areas of the business and also by foreign competition--particularly in the manganese and chromium product groups. To adjust to This situation, the Division is currently making further significant cost reductions by consolidating its menufacturingoperations into three major plants. Among the new ailoy products introduced during 1963 were high-purity ferrocolumbium and nickel-colurnbium alloys for making aerosoace metals, and low silicon ferromanganese alloys used to improve the qualities of special steels that are machined automatically into small component parts. A new coal mine, with a capacity of approxi mately300,000 tons of coal a year, was opened to lake care of the increasing requirements of rne Corporation and for the sale of coal to other companies. New production facilities installed by the Stellite Division rosulted in a fourfold increase n melting capacity for producing special alloy metals for the space, missile, and aircraft in dustries. The Division is currently supplying to the U.5. Air Force and aerospace manufactur ers a new metal based on columcium. which has high-temperature properties that mako it a promising material for spacecraft. Stellite also has o new tantalum-base alloy that is proving useful in the development of rocket motors and nuclear weapons systems. Nuclear-The U.S. Atomic Energy Commission extended its contract with Union Carbide for operating four of the A.E.C.'s major nuclear installations until June 30. L967. Negotiations are under way to modify and extend the Cor poration's contract with the A.E.C. for the sale of uranium concentrates Irom December. 1966. to December. 1970. In addition to selling radioisotopes, the Nu clear Division is furnishing industrial ruclear technology services--neutron activation analy sis (a highly sensitive analysis technique), gam ma irradiations, and neutron eradiations, The Division's pilot plant for processing as bestos ore was completed, and several new grades of asbestos fiber were introduced. Consumer Products--Continued strength in the sales of the two major product lines of the Consumer Products Division--EvEstApy batter ies and Pkf.STONf anti-freeze--resulted in an increase in the Division's sales in 1963. To broaden the market for battery-operated devices, the Division launched i new marketing approach that will enable it to offer both prod uct and technical assistance not only on bat teries. but also on motors and chargers. The Division is now marketing hign efficiency lowvoltoge motors. These are used in cameras, tape recorders, and other cordiess devices. Facilities are being completed lor producing nickel-cadmium rechargeable batteries at the Cleveland, Ohio, plant, and a new battery plant providing Increased capacity for miniature round cell batteries was also placed in opera tion m Greenville. North Carolina. Major hearing aid manufacturers are now de signing instruments around EvERtAbv silver oxide batteries, and the majority of batteryoperated TV sets on the marker are designed around Evereaoy alkaline batteries. Tne Divi sion also began the expansion into national 15 From Josoph Joi-rph To 14256997033 CW. 10QA01 Tm* 7 40 26 PM Paa* 7 of 20 CONDENSED SUMMARY OF PRODUCTS Carbon Products--Electric Furnace Electrodes Electrolytic Cell Anodes Furnace Linings Eiectnc Motor and Generator Brushes Products for Electrical, Mechanical, and Metallurgical Applications Structural Shapes Chemical Processing Equipment* Projector. Photographic, Searchlight, and Spectroscopic Carbons* Nuclear and Aero space Graphite Carbon and Graphite Fibers, Fabrics, and Foil Chemical Prcducts-Synthetic Organic Chemicals: Including Solvents, Intermedi ates, Monomers, Plasticizers, Lubricants, Humectants. and Surface-Active Agents Agricultural Pesticides Automotive Chemicals Corrosion Inhibitors Detergent Alkylates and Biodegradable Detergent Intermediates Pocket Propellants Fluoro carbon Propellants and Refrigerants Fungistats for Food Products Industrial Fumi gants Latexes Metal Chemicals Molecular Sieves Silicone Chemicals, Oils, Resins, and Elastomers Synthetic Crystals Urethane Foam Chemicals WaterSoluble Resins Si-sas and quipmeni-Oxygen. Nitrogen, Hydrogen, Argon. Helium, and Other Atmospheric Gases Calcium Carbide and Acetylene Apparatus for Electric and Gas Cutting, Welding, and Surfacing of Metals Flamo Plating Service Steel-Conditioning Machines and Rock-P ercing and Shaping Equipment Cryogenic Fluids and Equip ment Lasers, Banum Getters. Tantalum Capacitors, and Other Electronic Equipment iVletaiS 3nc Vliner2is--Ferroalloys,Alloying Metals,and Refractory Metals and Com. pounds Produced From the Elements 3oron, Calcium, Chromium, Columbium, Man ganese. Silicon, Tantalum. Titanium. Tungsten. Vanadium, and Zirconium Titanium Master Alloys and Titanium Oiboride 3rd Composites Zirconium Dibonde Special Alloys to Resist Heat, Corrosion, and Wear - Metal Ceramics Boron and Silicon Nitrides Grid Wire Chromium, Manganese, Molybdenum, Tungsten, and Vanadium Ores and Concentrates Asbestos PlastlCS-Epoxy. Phenolic. Phenoxy. Polyethylene. Polypropylene. Polystyrene, and Vinyl Resms and Compounds Vinyl F.lm and Flexible and Rigid Sheeting VinylCoated Paper Vinyl Foam Food Casings Phenoxy, Polyethylene, Polyethylene Oxide. Polypropylene,and Polystyrene Films-Beverage Casos- BottlesandContainers* Truck Bodies Nuclear Products-Radioisotopes and Stable Isotopes* Uranium Ores and Con centrates Consumer Producis-EvEREAov Batteries for Flashlights. Photoflash Units. Port able Radios and Television Sets, Hearing Aids, and Toys* Eveready Flashlight Cases Eveready Miniature lamps * Prfstone. Winter Flo. Prime, and Trek Anti-Freezes Prestonl Car Care Products Linde Medical Oxygen Linde Synthetic Star Rubies and Star Sapphires "6-12" Insect Repellent Oynel Modacrylic Fibers and Yams BAKEitrEand Krene Plastics* Union Carbide Baby and Juvenile Plastic Products* Giad Wrap and Bags 27 From Joseph Joseph To 14256997033 Dale 10f2f01 Time 7 40 26 PTvl Pao* 8 of 20 on. Jotph Jpt^)h To 14254997033 Dalo 10/201 Tim.* 7 40 20 pm / t t Li a9* 9 of 20 In last year's report I noted our commitment orojeets with strong growth potential over the iger term whilo, at the same time, maintaing a vigorous cost reduction program aimed at tproving current earnings. We believe that the rsulls achieved in 1964 justify this approach, id we intend to continue with it. I" recognition of the growing size and com le. cy of our business and its worldwide scope. ie Corporation's management structure was lodified during the past year Jo provide inreased unification ond improved administraion of our many business enterprises. A Prestfent's Office--which includes our three Execu te Vice-Presidents. William M. Haile, Kenneth J. Hannan, and Kenneth Rush--was ostabished as the central point of management authority with responsibility for overall Corpor al policy and business planning under the B. ucd of Directors. Our principal operating groups report to the President's Office through Vice-Presidents Donald 8. Benedict, William B. Humes. Adger 3. Johnson, and William B. Nicholson. These executives, with the Division Presidents who report to them, make up four Operating Committees These committees are responsible for technical expenditures, busi ness plans and budgets, and the allocation of capital resources an^i manpower for the eper- divisions in their respective groups. As of tne reorganization, the former Appro bations and Operating Committees were dis solved and a new Capital Projects Committee -consisting of the members of the President's Office and the Group Vice-Presidents-was formed. Also formed v;a$ the Financial Planning Committee which under the chairmanship of the Treasurer, William S. Sneath, includes Vice Presidents Farnsworth l Jennings and George C. Wells and the Controller, John A. Willis. Changes in management during the past ,ear included the following; Allen T. Lambert. Chairman of the Board and President of The Toronto-Domimon Bank, was elected a Director of the Corporation n May. George C. Wells was elected a Vice President of the Corporation in April. He was succoeded as President of Union Carbide International Company by F. Perry Wilson. In September. William H. Feathers and William B. Humes were elected Vice-Presidents of Union Carbide Corporation. In May. Ronald ? Wishart. Jr was appointed President of the imeones Division, having served as General Manager of that Division. In September. Glenn L. Pitzcr, who had been President of the Food Products Division (formerly the Viskmg Divi Sion), was appointed President of the Plastics Division succeeding Mr. Humes Richard S. Abrams succeeded Mr. Pitzer as President of the Food Products Division. Also in September. John R. Hulten became President of the newly formed Fibers and Fabrics Division, and Burton R. Buck was appointed President of the Metals Division succeeding Mr. Feathers. In January, 1965, the Metals and Ore Divisions and part of the Nuclear Division were consolidated as the Mining and Metals Division, and Mr. Buck was appointed as its President. Clarence E. Larson was appointed President of the Nuclear Divi sion, which is now responsible for our govern ment-owned, privately operated facilities at Oak Ridge and Paducah. Also in January, Edward J. Fox. formerly an Assistant Vice President of the Corporation, was appointed Regional Vice-President with headquarters in Washington. D.C.; and Fred L. Shenklm. lormorly President of the Ore Division, was appointed Regional Vice-President with headquarters in Chicago. Finally. I should iike to comment on certain of the actions taken by our Board of Directors at their January, 1965, meeting. The Board decided to increase tne quarterly dividend from 30.90 per share to 31.00 per share and, sub ject to stockholder approval at the Annual Meet ing. to split the Corporation's stock on a 2-for-l basis The 30.90 quarterly dividend has rep resented a payment to stockholders of 70 per cent of not earnings during the past eight years. The Directors' decision to raise the div idend and split the stock at this time reflects their confidence that we have achieved a new level cl earnings that can form a broader base for further growth. The Board has also recom mended for stockholder approval the adoption of an incentive compensation program for a large group of managerial employees. This pro gram ties a significant part of the total compen sation of these employees to the earnings of the Corporation. It. therefore, identifies em ployee goals with stockholdergoals, theachieve ment of which will continue to challenge the best efforts of all of us. The Annual Meeting of stockholders will be held on Thursday morning, Apri'. 2? at 11A.M., at the Hunter College Assembly Hall in New York City. I hope that many of you will be able to attend m person, but that, if you cannot, you will send m your proxies tor this meeting at which so many important actions will be taken. Respectfully submitted. <^L March 2. 1965 President 3 * From Joseph Jcsi)h To 14256997033 Da!* 10f2/01 Tim* 7:40:26 PM Pag* 10 of 20 \ # 1/ Thelargewhei- mft>d l-er>t removed injrr :r e c:,o! ;*aili (left pitlore on oppose cage) was Ccsl m-h* KtikomIndians. plM Ol Union Care ac lo- 1-o gs? n.'tj-.-. engine of a power unit. Ron o.solopes lor medical u^-C irulot trial use are o'OCtSSflC in Union Car:>iU*'s radiosclivt. matenoli laboratory(lighl.hanfl pidorOat &?eJin Fareoi Ntw York. Shown entering * vacuum furnace (lower picture) l i Hat car carrying poNets o' the Corporator's CaRvan vanadium, a new alloy for Strengtncning steel. The New Yor* C>ty Transit Authority p!ccJ in epe'ation m 1964 l>c first ot e fleet ot new $ji>way cflfl faBnc.ilec of a iper.ial weight-saving stainless steei drtfdooed by Union Carbide metallurgists. poralion engineers are also being offered to industry--including highly effective distillation units.cryogenicgas upgrading plants,palladium diffusion units, air separation plants, rtnd equip merit to obtain ultrahigh and very clean vac uums such as fire required in space simulation chambers. An example is a cryogenic pump that contains no moving parts and removes gases by condensation, adsorption, or both. In sddition. the Corporation is supplying a variety of cryogenic equipment to the govern ment's space agency--including he'ium reliquefiers, vacuum-insulated pipelines, railroad tank cars, semitrailers, and other specially designed tank units. The Corporation expanded its activities in the electronics field with the start-up of new facil ities to produce transistors in California and capacitors in South Carolina and the develop ment of a commercial lase'-welder. Mining and Melals-ln keeping with Ihe record production levels in the iron, steel, and alumi num industries during the year, tne tonnage oh ferroalloys and alloying metals sold by Union Carbide in 1964 rose to on all-time high. Dollar sales showed a smaller gain because they re flected a five-year decline in prices, from which thero was some relief in the final quarter of the year. Significant cost reduction measures taken during late 1963 and early 1964 helped to im prove the profitability of the business. Outstanding among the products introduced during the year was Carvan vanadium, an alloy for strengthening low-alloy and carbon steels All maior steel companies have adopted the alloy because it is more economical to use and is of higher punty than alloys previously use', as vanadium additives to steel. Because of tne demund for the alloy, tne Corporation reacti vated its vanadium mine at Rifle,Colorado.which is the largest in the United States New vacuum melting facilities at the Corpora tion's Steliite plant in Indiana have increased capacity threefold for producing high purity metals. Control systems now in use represent the closest approach to date toward complete furnace automation. A rriultimiliion dollar c- pansion program is row under way at this plan, that will appreciably mc'case the production o! nickel-base and coball base alloys in sheet form. The equipment being installed will permit the rolling ol thinner sheets to closer tolerances. Several promising new alioy metals were in troduced during the year, including one for hot sulphuric acid service. Tests have indicated its particular usefulness in equipment for proc essing chemicals, pulp and paper, and syn thetic libers. Sales of tungston ores showed a marked in crease over 1963, and prices were slightly higher. The ore processing mill at Bishop. California, is being modified so that an up graded molybdenum product can be produced, rather than the concentrate form that has been marketed in the past. The first year's operation of the Corporation's asbestos pilot plant in California was very successful, and the highly purified osbestoc produced is finding use in several areas- pnncipally the paper industry. In 1964. Union Carbide signed contracts with the U. S. Atomic Energy Commission that as sure the production and sale of uranium con centrates obtained from ore mined in the Colorado Plateau area through 1970. During the year, the Corporation substen tially increased sales of radioisotopes oroduced m its nuclear reactor. Aiso. it greatly extende: :ts nuclear technology services--including the irradiation of various materials for industrial research and development purposes. 16 From JoMph Joseph To 14256997033 Dal 10/2/01 Tim 7 40 26 PM /7 6* Linde Division PRESIDENT: Robert f. Hood EXECUTIVE VICE PRESIDENT; J. G. Benson VICE PRESIDENTS A L B-.oi. E. G. Hc-l-g. R V; King. T. J. Mlihaust. W. f. Moeller. G. A. Murray The production of purified atmospheric gases--pnn- ro&?*t r rioco cipaily oxygon, nitrogen, mid nrgon--is the major activity of the Unde Division. Those products are sold in both gaseous end liquid form. The Division also supplies industry with liqueticd end gaseous hydrogen and helium and gaseous acetylene, it manufactures equipment Ter cryogenic (low-temperature) operations, chemical and petroleum processing, and metalworking. Increasing quantities of the lunde Division's geses are Doing employed for the production of steel and Ter aerospace operations, the synthesisof chemicals, medical treatments anc many cryogenic uses-such as Cryosurgery and in-fanstt -efrigeration of foods. To the electronics industry, the Linde Division furnishes transistors, capacitors, lasers, and crystal materials. It provides Molecular Sieve adsorbents and a Flame-Plating service. Mining and Metals Division PRESIDENT; Surlon R. Buck VICE PRESIDENTS C. J Crupmn. J. C Doujlas. L. e. Cnnet. W. R. lewis This Division carries on worldwide geological Investiga suhto* h. imci tion and exploration and it mines anc processes ores containing most at the maior metal elements. It consoli dates the activities of the former Metals and Ore Divisions and the mining and processing operations of the Nuclear Division. The Division produces ore con- centrales, allnymg metals, ferroalloys, and commercially pure forms ot a num ber ol key metals. Most ot the Division's products are used in making both stee end notiferrouS metals. They remove impurities ana impa'l strength and other desirable properties. The uranium concentrates that the Division produces aro sold to tnt U S. fttomc Energy Commission This Division aiso operates the Corporation's ore and nuclear rescarcn laboratory at Sterling Forest. New York. It nss a nuclear roactor that produces radioisotope 5 tor medical and indust'iai use. Stellite Division PRESIDENT- Ruber! M Briney EXECUTIVE VICE-PRESIDENT: t C Kroff. Jr. VICE-PRESIDENT C G Ch-slrclm The Stellite Division produces special alloys and metal- I0BEHT U BHinrv ceramics that are used where there are extreme condi tions of heat, corrosion, or wear. The alloys are composed chiefly ot tne metallic elements cobalt, columbium. chromium, molybdenum, nickel, tantalum, and tungsten. They are suppllod to industry in the form ot cast ings. sheet, plate, ber. wiie. and powders. Special inch-temperature alloys made by the Stellite Division have important uses in aircraft and space equipment. They will withstand severe stress and corrosion at temperatures in the reo-heat range. The Division's alloys a'so are used by the chemical and nucleer industries in equip ment to' nand ng such severely corrosive materials as boiling hydrochloric nod. not suipnur.c ac d. and wet chlorine. Cutting tools and machinery parts benefit from the unusual wear resistance provided by the SteMite-Division's alloys. Pfl 11 of 20 C9ici CONDENSED SUMMARY OF PRODUCTS Carbon Products--Activated Carbon . Aerospace Graphite Anodes lor Electro lytic Cells Brushes for Electric Motors and Generators Chemical Processing equip ment Electrical and Mjchamcal Specialties Fabrics, Fibers, and Foil Furnace Electrodes and Linings Lighting Carbons Molten Meta! Processing Equipment Nuclear Graphite and Fuel Elements . Pipe Slides Pyrolytic Graphite Spectro scopic Electrodes and Powders Structural Shapes Chemical Products - Agricultural Pesticides Automotive Chemicals Chemical Monomers and Intermediates Coatings Chemicals Corrosion Inhibitors Detergent Alkylates and Intermediates Fluorocarbon Propellants and Refrigerants Fumigants Fungistats tor Food Products Mumectants Latexes for Paints Lubricants Metal Chemicals Molecular Sieves Plasticizers * Silicone Chemicals. Elastomers, Oils. Resins, and Surfactants Solvents . Surface-Active Agents . Synthetic Crystals t Urethane foam Chemicals Water Soluble Resins Consumer Products - Captain Swim Products . Englander Mattresses and Sofa Beds Evereaoy Batteries tor Clocks, Flashlights. Hearing Aids. Phototlash Units. Portable Radios and Television Sets, and Toys EveREady Flashlight Cases and Minia ture Lamps Glad Bags. Straws, and Wrap Linde Medical Oxygen Linoc Synthetic Star Rubies and Sapphires Prestone, Prime. Trek and Winter Flo Anti-Free/es Prestone Specialty Car Care Products ,612" Insect Repellent . UNION Orbioc 8aby and Juvenile Plastic Products Food Products - Food Casings Specialty Films for the Food Industry Gases and Equioment -- Apparatus for Cutting, Surfacing, and Welding of Metals . Atmospheric Gases-- Including Argon. Helium, Hydrogen. Oxygen, and Nitrogen . Calcium Carbide and Acetylene . Cryogenic Fluids and Equipment Electronrc Com ponents-Including Capacitors, Crystals. Getters. Lasers, and Transistors . Flame Plating Service Rock-Piercing and Shaping Equipment Steel-Conditioning Ma chines Polarsyream In Transit Refrigerat.on of Food Metals and Minerals - Alloying Metals. Ferroalloys, and Refractory Metals and Compounds Produced from the Elements Boron, Calcium, Chromium. Columbium, Manganese. Silicon. Tantalum. Titanium. Tungsten. Vanadium, and Zirconium Asbestos Boron and Silicon Nitrides Grid Wire . Metal Ceramics Ores and Concentrates--Including Chromium. Manganese, Molybdenum, Tungsten, Uranium, and Vanadium Special Alloys to Resist Corrosion. Heat, and Wear . Titanium Master Alloys and Titanium Diboride and Composites Zirconium Diboride Nuclear Products -- Irradiation and Other Nuclear Services Radioisotopes and Stable Isotopes Uranium Ores and Concentrates Plastics - Beverage Cases Bottles and Other Containers film and Sheeting-- Including Polyethylene. Polyethylene Oxide. Polypropylene, Polystyrene, and Vinyl Resins and Compounds--Including Epoxy, Phenolic, Phenoxy, Polyethylene. Polypro pylene. Polystyrene, and Vinyl Vinyl Foam Vinyl-Coated Paper Textile Materials - DvnEl Mcdacrylic Fibers . Nonwovcn Materials . ViLEAU Vinyl Fabrics 29 From Joseph Joseph To 14256997033 Date 10/2/01 Time: 7 40:26 PM Pago 13 of 20 0"ase of biological rej?arch rece-nly launched by Union id--determining wnethor planis <"H germinate and under water. Studies suen could eventually lead to development of hybrid pianls "fhtbagroanand harvested t-e ocean floor. A now submerged arc electric furnace, which ranks among the world's 'arges* alloy units, was commissioned at Ashtabula. Ohio, in tho second quarter to meet substantially increased requirements tor silicon alloys in the iron foundry and steel industries. A group of ultra pure alloys introduced during the year for use in vacuum melting of metals was also well received. Vacuum melting is becoming more ana more important to ensure the extreme purity needed to meet the strict engineering requirements of today's high performance metals. Typical applications include deep-diving submarines and highaltitude jet aircraft. New building projects under way in the metals group Include new facilities at Alloy. West Virginia, for siring, storing, and shipping alloys, which will contribute to better service to customers, better control over the quality of products, and reduced operating costs To assist in meeting expanding sales of the Corporation's highly successful vanadium alloy. Carvan vanadium, n large mill is being built at Wilson Springs. Arkansas, to process vanadium ore from a newly discovered deposit nearby, which is owned by Union Carbide. This rep resents the largest known United States deposit mined for vanadium alone. An addition to the tungsten mill at Bishop. California, was completed during the fourth quarter of 1965. It is being used to recover highpunty by-product molybdenum and copper metals by newly developed Union Carbide processes that are of significant technical importance. Tin from tne Corporation's subsidiary in Thailand began to reach the market in November. Since tin has been in short supply, the Corporation is now exploring offshore areas of western Thailand for newore reserves. Several other business areas also showed greater activity in 1965. The Corporation's high-capacity lime kiln design was further perfected, and during the year six kilns were sold--four in the United States and two overseas. Increased sales of asbestos to the tile and paper industries made it necessary to expand the plant at King City. California. The Corporation expanded its own vacuum-melting facilities at the Stellite Division's specialty metals plant in Kokomo, Indiana, by the addition of another furnace unit. A previous expansion in 1964 had al ready resulted in a threefold increase in the plant's production of highpurity metals. Because of their supenor resistance to extreme heat and corrosion, the metals produced at the Kokomo plant have important uses in aircraft, space, and chemical processing. A significant factor in increased sales of these products in 1965 was a step-up in the rate of jet aircraft engine production. Late in the year, a rnultimillion dollar expansion of sheet producing facilities want into operation, and a new fabricating shop for making heat exchangers, distillation towers, and other equipment went into full-scale operation. CONSUMER AND RELATED PRODUCTS Consumer Products-There were significant gams in sales of EvEREADY, Prestone, and Glao products in 1965. Among the consumer products introduced was an improved Prestone spray de icer to help motorists keep their car windows clear during dif ficult winter dnving days. The top of the de-iccr container has a scraper blade and scoring teeth for quick removal of snow and ice. The de-icing fluid itself is specially formulated so that it will not smear the windshield. The most popularanti-freezecooiant. Union Carbide's PrestonE brand, made its appearance last fall in several new packages it became avail able in specially designed cans, which are reusable as gasoline con tainers. Also, smee most car owners buy two gallons of anti freeze pro tection each fall, a handy "two-pack'' was introduced. During the year. Union Carbide s Evlready batteries sparked the development of a variety of new cordless appliances as powerful as their plug-in counterparts. Rechargeable batteries were supplied for the first cordless vacuum cleaner on the market, as well as for the cord less carving knives introduced in 1965. From Josoprt Jocaph To 14756997033 : irr -V - to> Data 10/7/01 Tima: 7 40:26 PM Pg 15 of 20 annual report ''#ph io%*Vh To 1 *256997033 Dale 1(V2/01 Tim. 7 40 26 PM a&AfC cwborw produced.b/ this1D 'purpdiii^lncluding motion picture itatiohj'ind spectroscopic analysis,T Kigm &* sv.uS .io| r*aV pa r-o**ceI< ss>m*' g. ,iions.3o.wta&ffeuree materials for.Its Products. It cemes d^apneiWflWoa togtcal ilr'v^8?iflatlov?snd,*fxploTetiOn -tKroughouf ^eyono^l{?3D^S^g rrarkets ora concentrates,' forrosJloyt, alloying motals. snd tOr^iefelsIiy^JUW forms,dfa number of key metal elements. I*. Is a maiorsuppiierljf.chroml^ mlnganeseT^Hjcon^Vinadium.'.turigtten, activity of this Division Is the production of fertaanoTs'kr.d meta*s.iffed^i^ making stoal, Iron, and various nonferrous molals/These materials remove From Jo*ph Joseph To 14256997033 Onto 10/2/01 Tim*: 7 40:26 PM 2 -CONSUMER From JowphJowph To I 4256997033 Hats 1C/2/0I Tim 7 40:26 PM P-g 19 of 20 Croup 2--Carbons, Electronics, Cases, Metals ricfl S. 0 |fJ WIUIAM B. NICHCXX>N. <KOUI* VICC-PRESID6W Carbon Products Division ftcsAfent f. c Cba ro--in*. M. M fij-.l O. l Rendafil, f. B. Vernon. via-^rcvoe-i. f. C. *:. I Vi<o f/wdou. j. t Carbon and graphite are produced by this Division in thousands of shapes and forms The Division s most important products ar electrodes used in nuking steel, iron, alloys, aorasivey, and phosphorus. Arc carbons are produced for such, purposes as mot on picture projection and Studio lighting, solar simulation, and Spectroscopic analysis. Special caroon and graphite products are nude ior aerospace, chemical, eleancai, mechanical, metallurgical, and nuclear use. In addition, the Division produces hightempemturc refractory materials. Robert A. Cbarpif CoMp llfiuon Electronics Division finnitat. * a C-arpie. V.xeJ'-JUr>- C v Ccior. \Y. i Moor*. The activities of this Division include the manufacture of solid tantalum and plastic him capacitors, barium goiters 'or radio and television tubes, miniaturized active electronic components suen as neldeifeel transistors a.-id .ralegrated circuits. synthetic crystals for industrial and research use. lasers and laser systems, and j line of electronic instruments for monitoring environmental contamination. linde Division P^i/de.-r J. G Benson. E*ecwii v iie-Pirtiten! W. S Gray, Ir. VieeP evdeau A. L. Raye> R. I Conk* r.I**, P. HulfanJ, |r. R \v. Kin*. T. I Milhaupt. R W. PrtaiiH. ). C. Sttplwmcit. A major activity or the Linde Division n the production o! purified gaves-rrtlud.itg oxygen, nitrogen, argon. hydrogen, helium, arid arciylene-u*ed in the production and fabrication of steei ar>d other metals, in the aerospace program, and in chemical and petroleum processing operations The Division manufacture* equipment tor using these gases in various industrial processes such a- electric arc weld ing, flame cutting, and poiaRSTReam liquid mitogen kmoperation tor ;h<> m*transit preservation of rood. Molecular Sieve adsorbents ate produced icr use n separating and drvmg iquiCS and gases. Through an auiliate-Ocann Systems, tnc.-undnmaicr diving services and equipment are provided. Materials Systems Division DoiNiellv. *. y AWts iceOlti* Ytf P'fl.JcM. C. a. Ucr.rl* ViC+PtM'dmi W. t The Materials Systems Division was formed in March, 1907, ;n order to consolidate the Corporation s capabilities in provtdlog high-performance ;noducts-bolh materials and composite sy*1eim-for 0|>er< ating m stress environments where unusual corrosive conditions exist or high strength must be main tained at eiiremcs of tempera: .re Applications for such procucis ndude components for aircraft iet engines and other CJS whines, equipment used in inc chemical and nuclear Industrie, and machinery parti requiring unusual wear rotsunce* Burton K. Buck Mining and Metals Division Pnssfdenr. tl R. Buck. *ecuiive Wcc*Prei*cfe/ri: C. J Chapman. ViM'<w<fenr. I C Oo-pas. W V >'lr W K I--MS. f. I. Shodflfew}. G. J1. Wagner. This Divoiun carries on extensive minerals exploration throughout the wo.-ld and i engaged ir> mining and processing ores <>nd in mc-taimaking. Among ns products are nre concentrates, ferroalloys, alloying mefab, and commercially pure o-ms or a numoer oi key metal elements. Use Division , j major sup plier of chromium, manganese, silicon, vanadium, tungsten, tantalum, and colum'oium. its alloys are used i:i making steel, iron, and various nonrerrom metals such jv alumirum and Minium. Uranium concen trates aro produced :or nuclear energy operations. Other roncemraies are provided for use in making batteries, electronic components, and chemical analysis. LUrenor t. l*no Nuclear Division I'mtide'U C. E Lsrwn. VKtKpresidt'flis: R. F. Hitibs. a m. vVeliwig. The Nuclear Division is responsible tor operation of tire nuclear energy facilities at Oak Hicge, Tennessee, usd Paducah, Kentucky, which are owned by Use u v Gosvmmcnr These utilities include two diffusion plant* for separating uranium isotopes; special production and research units ihat fabricate components for nuclear weapons and other produce vital to the country's defense; and Oak Ridge Mt.or.aI Laboratory- the nation's larges! nuclear research center From Joseph Joseph To 14256997033 Date 10/2/01 Time: 7 40:26 PM Page 20 of 20 1058 MOODY'S INDUSTRIAL MANUAL equipment. cryo-ond Foetorla, O.; Niagara Fail*, N. Y-; C'lark*- ara. tantalum i bunt. W. Va.; Columbia and Lawrenceburg, equipment. I l'enn. and Welland, Ont- Mttalu Ferro alloy*, alloying metals, refroctory melals, and metal compounds an stemming from foUowing elements; boron, calcium, chromium, columbiurr.. manguriene. silicon. tantalum, tstonlum. tungsten, vana dium and iircomum: titanium master alloys: titanium boride and composite*: special al loys to resist heat, corrosion and wear-, metal ceramics; boron and silicon nitrides; gild wire; chromium, inancaccrc. molybdenum, tungsten and vanadium otce and concentrates Chemicals and Plastic*: Principal plants ore located at Anaheim and Torrance. Cal.; Cortersrille. Ga `Chicago. Ottawa and Stcsmwoed. ill.; tVhiting. Ind.; Centerville, is.; Bound Brook. Bridgewater. Carteret East Paterson, Fnirlnwn. Morristown. Newark, and Wuyne. N. J.: Niagara Folia. N Y.; Marietta. Ohio: Loudon. Ton; Brownsville. Seadrill and Texas City. Tex ; Diamond Hasting*, In stitute, Lone Reach and South Charleston. W. Va. zirconium Oiborlde. asbestos. Plants for the manufacture of calcium car- Epoxy, phnolle. polyethylene. polyprop;y.'lene and polystyrene vinyl retina and comrpounds. Vinyl film and flexible and rigid sheeting, vinyl-coated paper and vinyl foam Food casings, polyethylene, polyethyl ene oxide, polypropylene, phenoxy and poly styrene film. Plastic bottles and beverage case*, truck bodies. Nuclear Products: Radlolsotoncs and stable IsotoDes and uranium ores end concentrates * Products: EvereMy batteries for i. photoflash units, portable rodeos ilion nctr, hearing aids, and toys, hide are located at Sheffield. Al.; Niagara Falls, N Y.; Portland. Ore.; Ashtabula, Ohio and Momkor Norway. Consumer Products: Battery plants arc lo cated at Red Oak. la ; Asheboro. Charlotte and CJrrenvilla. N. C.; Cleveland and Fre mont. O: Bennington and St. Albans. Vt. ifiaxhlightt): Toronto and Walkertom Ont. , Nuclear: Mills at Maybell. Rifle and Uravan. Colo and Gas Hill*. Wyo. for processing uranium and vanadium ores; at Bishop. Cnl.. for tungsten ores and at King City, CaUf. for asbestos. flashlight case*. Evercady mirna- Ore un-ffTBdintr plant tit lecated nt Slick ire lamps. Prestonr Winter Flo, Pr.me. and Rock. Colo Operates for the government Trek lnii-ficrrs. Prestone car care products. atomic energy installation* at Oak Ridge. `JgteSM&& JSffSftSSfVW Tcnn. and Paducah. Ky. Rpsearch, etc. Labarnteries: Major labors- Juvenile plastic products. Glad wrap and bags PRINCIPAL PLANTS PROPERTIES In 1*83. companies comprising the groups listed above operated about 350 plants in U. S, Canada and Puerto Rico. In addition. rtss^^*aBffTawsa tonw arc located at Chicago. IU.; Indianapolis and Kokomo. Ind.: Lawreneeburg. Tenn .; Clayton. N. C.: Niagara Falls. Sterling Forest. Tarrytown and Tonawanda. N. Y ; South Charleston, W. Va; Cleveland. KostnrlB and Parma, Ohio; Bound Brook and Newark. N. J. and Montreal East, Que. Technical center at South Charleston, W. Va. conducts research, development and plants, sales offices and wareho'.iae stocks are located In many foreign countries. s: Principal jilan:- of Oils group are located at Alloy Va: Kokomo. Ind Niagara Falls. N. Y tubula and Marietta. .OhShef"Pfiemolrdtli.anAdla. AshOre. Foreign plants are loco Ted al Wetland. Ont.; engineering activities for Chemicals. Olefin* and Plastics Divisions. Union Carbide Rcwarch Institute, a basic research activity, is located at Tarrytown. N. Y. Research anti development expenditures amounted to J85.000.C60 in 1963 11932. Jol.OX).- OOOJ. Beauftariuns, Que.; S-iuda Falls and Meraker. Norway. Other: 52-rtory home office bulMilng la at 270 Park Ave.. Now York Company also owns Company also owns and operates largo office buildings in other prlnclpol cities In power proport lea including a hydro-electric United States Including a Canadian headquar development and a steam electric plant In West. Virginia; steam-electric plants at Ashta bula and Marietta Ohio and hydro-elcctric power facilities In Norway In addition, sub stantia! quantities o: electric power are pur chased under contract lor operations at Niagara Fall*. N. Y.; Sheffield. Ala.; Portland, Ore. nrd Welland. Ont. plants. ter? buikftag In Toronto. Ont. Plant Expans!an: In 1983 Chemicals Division placed in operntlcm a latex plant nnd an isocyanate plant. Among the new project* ll launched In 1953 were an expansion of fa cilities for producing acetic acid; a new sty rene plant: additional facilities for ethyl and isopropyl alcohol*, ascorbic aeld plant: a Part of the power produced and purchased motor oil additive* plant; and additional tex la used In the manufacture of calcium carbide tile fiber facilities Olefin* Division complrtrd the manufacturing olnnts for which *r# riven an acetylene black plant. under the chemicals group. Industrial cases: Over 125 plants for r,rooiie.ng oxygen and ether gases ore located In principal industrial centers of the United States Plants for manufacture of apparatus are at Los Angelo,. Cal; Indianapolis, Ind ; Newark. N. J : Tonawanda. N. Y. and E&sinit- ton Pa a crystal products plan! is at East Chicago. ind. Flame-Plating plant* ore ot Ixik Ange M. Oid ; North Haven. Conn, and Indianapolis ind A Molecular Sieves plant is ssrai Tonawando N y in Canada, there nr.; ss s ,nd acetyien- p!Bn" Plastics Division began four major plant expansions; a plant to produce plastic bot tle*; additional facilities for low-density polyethylene; new units for producing Mghdcnsity polyethylene resins; and now phenolic rdn facilities. It Is completing an expansion of faculties for making Glad Wrap, a new household product. VUking Division opened a now food casings plant. Carbon Products Division completed a large-scale plant for making graphite cloth and additional activated carbon faefllUe*. It started s pilot plant for making graphite yum. Lir.dc Division installed seven on-slte plants Chief manufacturing for producing oxygen /ind nitrogen to serve PAnU of this group are situated at Cleveland Individual steel sad chemical plant need*. It completed substantial expansion* q lor liquid oxygen-nitrogen plants cflrlwn **"<! JS&JSESS* faculties for melting special ilicy ____ ____ the space. cunolle, and aircraft Nuclear Division completed o ullii -J processing asbestos ore. * Consumer Product* Division PucrC _ oration a now battery plant pcmai-- T creased capacity for minlaiure ruv -J,T (cries and is compU-tiig faculties hr t~Z log nickel-cadmium recharReatki idJaT CONSTRUCTION KXPENDITUItU Construction expenditures In UUd^l Canada, and Ibierto Rico totaled r.-3)S| in 1963. compared with Jlti.o mJllioih3l Overseas companies spent J25 milllmaSl ssitnrumctiiollino,ncoMmpaajorer dowveirtshea1sK2bucUxjdxlirX*j^w1m I completed during 1963 were n m ' 1 plant in Sweden and o sulwtantkl to the plastics plant in Ai IraI* units in Enelnnd expansion* in Franco ,,___ manual expansion of dry bailcrr lgibii u number of locations 1 Amt. < (in MU.)' Chem. A plastic*.. <103 4 Carbon products . M3 Indue trial ga*es ... 40 9 Metal*______________ io7 Total.......... .......... J1695 MANAGEMENT noj * Bwim11y MHaasiloen. .EJxer,c.PVreicseid-Pexnrttidrra K. H. Hannan. Executive Vnt-Pm Krnnrth Hush Exec Vice-ProBc^ D. B Benedict. Vlcc-Prewimt 5 .VH t Foglo. VXce-PrcsMivDt P"*0'1*. Vlce-Prc-idt* C H Hugeinan, Vicc-PresJSerit H K Imemami. Vico-I*rxifot F. L. Jennings, Vico-Pr-o<l.at . w B Sion'^IW1' . John F. ShanKlln, Vicc-PraliMf * ' St.wart. VIce-PraskBat w s Sneatto. Treasurer J Victor Herd. New York James M H-.ter. New York George H. Love. Pittsburgh, liiBtrny Mason. Jr, New Y0(t Kenneth Hush. New York General Counsel: John W. Dok* Dir. of Purchases: Albert J. D'.V? Auditor*: Hurrimon and CrsosM* Annual Meeting: luiri Friday Mo. or Stockholders: Dec. 31, If**" MO. of Employ***- Dec. 31. General OffiMs: Union CarbM*^ Park Avc.. New York 17. N. Y. INCOME ACCOUNTS COMPARATIVE CONSOUDATED INCOME ACCOUNT. YEARS ENDED DEC. I Taken from reports filed with Securities and Exchange Commission) Sales^ less dlsct*.. return*, ate. ...... wiaei 1963 *:,SW.137,W* 1.233 734 213 iM.ii8.es |1.630,680,761 1 mw 093 14SEM3I7 196! 61363,R7373 l.:GO.780.OtS 146,307,520 I960 *1^48.168.000 3.13C.439O0O J41328 6.XI 1959 *1.531.343.821 l.*//3.971.337 129.183^47 1.C14.9M 464130 900.8U 1AOC-20S "ffl 27S 721 074 15,653428 4.245.429 lf,7T>*,l(9 15.969.434 2.942.788 11,277,765 2M.M0.144 31.734.021 27?.441 000 19.977.000 S.lW.iOO 9if3.XX 12 927.771 2.910,495 11.909.422 Umohm deductions* Intaroat and dsbt discount and 309.279.127 liSSS 311.342393 2^89F93 I7.797JG9 283.612S90 3.630.3M 17.834.541 8C7.961.000 2.772.(00 16.636.CW 3St.336.423 2.035.918 17.123.015 -IS ___ ----- --------------------------------------------Federal Income taxes....................... Deferredincomr tax-------------- ----------Other income toxea...................... ........... 287.363.417 112.IM.329 4.441 si* 10 625.398 uii t' Mmn loll ^ BlacMdc* HAMCl 8) Incorn# ------- 160.172316 lu*. beginning of year ... *,4T.14l --------------------- ..108387332 ents than IcooTce Royaltits------ ------- -- *872272,435 109A47.C96 :iSI 2,487,485