Document YG73qgnVeBgd2ye1aEzJqeXOD
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August l, 1967
Hr* Fred L. Gardner Armstrong Contracting and Supply Corporation 123 Barth Liao Street Lancaster, Bcnnsylvanie 17602
Dear Reit
subject* AsbestosIs daias
Qte problen of asbestosIs claims sad vbat to do to prevent them bas been kiclwd orovod since 1961. 5. B. Ghulx Is your Kiluaufcee Office expressed concern for this problem la his letter to Jobn Mlw* of December ST, 1961* 8. S. Ross Is your Loo Angeles Office vrote to Jobs Zeller on this problem os Hay 31, 1962. amis earn bock <pLla on the eaas problem is his letter to yon of March 5, 19o3. J. O. Murphy Is your Elisabeth Office evidenced concern for the asbestosis cl nine problem la his letter to John Zeller on August 1*, 19$t H. H. Duals la your Richmond Office picked up the ball end passed it to John Zeller t; his letter of Septenber 30, 1966; to you on flovocher 21, i960 oad Jbbruuy 6, 1967; and then again to John on April 23 and August 7, l?o7* In almost all of these instances, the Insurance Department urns Involved to ocoe extent* All of ns have given sons attention to the prcfolcn, but none of us have seemingly been vllllag to met It bead-on. Even our meting vith Dick Hurtlton of Aetna Casualty sad Surely Ccsspuy at your office on April k$ 1967 foiled to produce any concrete results*
Our records show a total of 86 asbestosIs Plains being filed against' Armstrong Contractins since 195** Sixty-six claim or .77$ were filed In the 1960-67 period; the disability dates occurring In this sans period represented 32^ of the total clalns* Zn other words, the tine factor be tween contraction of the dispose and disability is clearly evident In these figures*
Aebestosis Plain payments made by your Insurers (Qse Travelers 1952-1962) Aetna Casualty 1963-1967) are approximately $100,000.00 since 195*. Tba payments wore charged against your retrospective rating adjustment in the years of employment of the claimants and sot uhea disability' began or the claim filed* About $60,000.00 has boon paid for your account by Aetna Cusuilty freo 19-0-1967 -'ben you add the loss conversion factor and state tax sultlpdler applicable to these losses in ths retrospective rating formula, you approach $73,000.00 as your true cost figure*
The applicable state occupational disease looses are fairly consistent in one important respect - the. last employer Is solely responsible^ subject to qualifications In seas Instances such me 60 days continuous e2$lcymeat,~ etc..
Mr* feed t, Otxdasr
Z*
August 16, I967
for akbertoels
la A3 states, Only fix states Allow ajportioimnat*
Bsere Is no provision for occupational rtis--ae benefit* la two states, {Her
District of Cdnfcla la included as a stats la tbeoe calculations,) Calif*
omla sal lav York srs two of tbs wnt lsgortaat statss penalttlag apportioo-
Ybe Acta* Chsuolty sad Surety Ccnpaay la nor isccuMoMag jm> niplnjsjjil X-rays *a a result of a rowy of tbs Puftst 40b la fiichnood, Virginia, Mr* Brads, la his letter aacoopuylfig tbs Aetna Casualty inspection report, refers to tbs slxeohlt cost of this recaoncadatlan a* well ss tbs adslnls* tmtlvs hwnhche that would oceur, While X sense that Mr, Imls cannot accept responsibility for pre-ogployneat X-rays ss iswawHuflod by Aetna Cayuilty, I do strongly feel that the tin* hoe arrived for ns to take a pceltioe concerning this xecasaeadatloa sad tbs overall asbestosls clalas situation which confronts ns,
The cost of essentially doing nothing Is elted above* Measured, against this coot will be ttm coat of providing pre-euployaent X-rtys sal axy other direct costs of an accident prevention pogwa. Certainly tqr pn n^iln/unit X-rays sad periodic chocktga thereafter, ws can essentially distant* tbs posslblli^ of sa employee becoming disabled fren asbestosis while worklag for Arastroog Contracting, Of coarse, this notion would. have to be coupled by a concerted effort at all 40b location to keep cnplcyees froa working la coodlticns when the atmosphere contain haraful quantities of the disease-producing dust, Z dcc't know bow the sechoaics of such a program could be worked outj but X do feel that If enough bonds are pot together, we can eons up with a reasonable solution that will operate to the ecotraic advantage of your eonpexy, Bear la clad that you are the largest Insulation contractor la the country, and you vill be employing aobestoe variesr* nors often then anyone else, This being the case, yen are apt to be the lost employer sore so thaa anyone else nd with V3 states balding last employer fully responsible for benefits, yon have the nost to 6*tn through this accident prevention program,
He are reedy to assist you la nay way we cam la resolving this problem.
Sincerely yours.
Wlars B, Bofferth UN
Jobs 2, Zeller, AOS, 120 Hearth lias Street, Xeaeastcr, ftsaaylveala 17&2