Document bak5q7pnryM6oXOgLKma6wno1

i'' * . Pi 't-l7 t i \v i v e i fc m Glynn Vouncj - BIND March IG, 1979 R. C. Isham QUESTIONS AND ANSWERS FOR ANNUAL MEETING 7O J. R. Foehr !i^ i Attached are the questions' and answers prepared for the annual meeting, as requested by Corporate Public Relations. The material has been reviewed by the appropriate general managers, product acceptability managers, marketing people and legal people involved. GY :smt Att. ft Glynn Young Confidential-Subject to Protective Order C004S1 QUESTI Cl!?' AMD AKSVF.ltfi FOU MU. A K j/i'. -- .1979 AMMUAL MF F.TI K-G 03. V.'hat is the s ta tus of PCI jav/sui. esc-*? Al.' VJg arc proceeding with our defense pro pa reitions , and intend to pursue a very vigorous defense of Monoanto in this matter. Recently, concerning the federal cases filed in Alabama and Georgia, the Federal court has denied certification as class action suits," and the plaintiffs ctre proceeding as individuals. Q 2 . Why is Outboard Marine suing Monsanto? A 2 . This case has recently been filed, and i t 's too early to raake an evaluation of its reasons or merits. Q3- Is Monsanto doing anything to remove PCI3s from the environment? A3. Vie are committed to two university studies on developing ideas and doing feasibility studies on how PCBs might be removed from the environment. The universities involved have been interviewing various candidates to undertalce these studies. We, of course, don't Know what results they may report, but we are hopeful that these research-oriented institutions wight produce valuable, unconventional ideas as to how PCSs might bo removed. -more,,v 'i--tiof17 . .. iorective Order 1 Q-l. '(Only if asked) Which universities are involved? The* California Institute of Technology and the Massachusetts Institute of Technology. I might add that the studios arc only in the very early stages of development, h o w e v e r . 5 - Is Monsanto doing anything about the oil tank contaminated with PCBs in Frontenac, Mo., and the waste oil in Dittmer, Mo.? A 5 . According to a recent press report, the situation in Frontenac, where a tank of waste oil containing PCBs had been placed, has been resolved by the government agencies and the disposal . contractor involved. In Dittmer, Mo. , the same disposal- contractor as in Frontenac had deposited wastes in an open pit near farmland. This company *m had a contract with Monsanto to dispose of waste oil from our Corporate Research Center, and had contracts for disposal with many other St. Louis firms at the same time. As soon as we were aware of the problem, we immediately stopped shipping with the company. Last year, a suit was filed against the contractor and Monsanto, claiming damages incurred when this material Allegedly leaked onto private property. The .suit is now in litigation. Confidenii=*/-Q,,K; -more" ^otectiveOrde? Ct to JH'J safety data and the conclusions of the International Joint Last year the U C reported that there is no reasonable cause for restricting the use of NTA in the Great Lakes Basin. We agree with that conclusion, and hope that the EPA agrees as well. Q7. Why did Monsanto sell Flavor/Essence? What was the sale price? A7. This decision was part of our continuing program to cull those businesses that do not fit into our long-term growth plans. In effect, this frees capital for those businesses that would benefit from additional investment. The sales price was not disclosed as part of the agreement with Bush Boake Allen, the purchaser. However, I can report tha t it does not affect our sales or profits in any material way. -more- oc* What is Monsanto doing jcgarding the introduction of phosphate logis j.a Lion in varions s taie legi.sla Lures V A C . We have been following the progress of the legislation in those state deliberations. Monsanto-sponsored studies by Cornell and Purdue concluded that the phosphate restrictions in Hew York and Indiana, for example, had had no affect in improving water quality in the lakes in those states. Monsanto agrees with the conclusions of these studios and our position is supported by many scientists. Additionally, v.*o have worked with the Soap and Detergent Association and with our major customers in presenting the technical facts regarding the use of phosphates in detergents to the appropriate government bodies. We are also a plaintiff in a suit in Michigan challenging the phosphate restrictions there. Q9. Weren't trace amounts of dioxin found in the orthochlorophenol spilled at Sturgeon, Mo.? A9. Yes. Our analytical chemists did find an extremely low amount, 0.037 ppm, in the reserve sample. V7e immediately informed the DPA and the clcan-up contractor of our findings. There are a number of dioxins that have widcly varying degrees of toxicity. We are no t ab 1e *to e stab 1ish if the on e d isco ve re d i;v con no c tion with the Sturgeon spill was the extremely toxic 2,3,7,8 d i o x i n . Ke do not believe that there will bo any health problems for eithe r the res i den Ls of S turgo bn o r the c lc an - up c rc w , p ar ti- cularJy since Lb-' amour. { r. wore so small., .Conf/ctep^, Q , , defective Order^eCr fo Q l O . I s Monsanto still losing money on sorbates? A l O . Competitive concii tions have required us to price sorbates below what v:e feel they should be. Recently, however, prices have 'moved upward, though still hot to levels that we iicel would be required for an adequate rate of return. We have been very aggressively working in new markets and applications, and wc are hopeful that the pricing probJems will soon be resolved, as this product represents great potential for Monsanto. Qll. Is Monsanto playing any role in the nitrites controversy? All. Last year, we submitted a proposal to the U.S. Department of Agriculture Which would allow the use of a reduced level of nitrites in bacon along with potassium sorbate. The agency reacted favorably and issued a proposed regulation, which -would require the use of a lower nitrite level with potassium sorbate, with an appropriate time for comment. If the government finalizes the regulation, then sorbates could be used in bacon sometime this year. Q12 What is the status of the lawsuits iled -against Monsanto with regard to pcntachlorophcnol? A 1 2 . We are proceedi ng with our defense. lie intend to represent ourselves vigorously in this m atter. --r.'.are Q13-. -Is Monsanto planning to build a silicon production unit at Sp irtanburg / S .C .? M 3. There is a proposal now to do no; however, it has not yet been considered for approval by.the hoard of Directors. If the Doard approves the proposal, v;a will make a full announcement at that time. Q14. Were; any of Monsanto's rubber chemical .products used in the manufacture of the Firestone 500 tire? Al4 . Monsanto is the No. 1 producer of rubber chemicals, and we sell products to all of the tire companies, including Firestone. Q15. Are -phosphate esters used in any Monsanto products, and what is the concern about them? A15. Phosphate esters are used in some of our plasticizer products and in our hydraulic fluids. In April 1978 E P A 1s Interagency Testing Committee recommended that phosphate esters be placed on the priority list for testing because of the large production volume in the United States and the opportunity for occupational exposure to those compounds beyond that encountered in their manufacture. We feel there should be no concerns about the. phosphate esters we manufacture and in fact v;o have a testing program that has been underway for the past several years to ensure their acceptability. i;;fa-* ;y)*> ^ , I . n._. ^'***-.ij"o Ji")'xi^ i --oGv ftoisctiVe Order "