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PLAINTIFF'S EXHIBIT .! ~r*v: I--. Taking Giant Steps ! Two chemical process companies USG-232 Sources of airoome asbestos ! -iwf look giant steps toward diversifying into- theoceanography -figfelast- week.. and two paper companies with com bined' Ales of'neariy $1- bffibn/year Asbestos-lined ducts used in centrally air-conditioned buildings.- - Asbestos ducts and insulation in home centrir-heating plants. __j ; Motor vehicie brake linings and ciutch plates. " ' J.r reached a tentative^agreement^ iJ^Auto undercoatings.. ....,.v .. .. ce`Rne and-flononr'itnile*s. . r : ',v jt'"' : __ i/panded_jts oceanic activities by ac- 1--^^quiring lor an uncuciasea r^rtaif'Jjjytock Marine "Advisers (La^Jloila.^ Asbestos shingics^antT sidingsi t Fitting, cutting, and removing asbestos-filled wailboards and ' W Fluor Corp. (Los Angeles) and B. L. McFarland and Associates (FiJlt- Worth and Midland. Tex.), a w" group of five companies involved in ' _o(Tshoreand onshore drilling opera'v .Vtion*, have agreed-to merge; subject * to stockholders' approvaL The Mc' - ^Farland group operates five offshore '; ; drilling rip in the Gulf of Mexico. ! (3) A tentative agreement to merge * has been reached by US. Plywood Corp. (New York) and -Champion Papers. Inc. (Hamilton, OrJ.-ftnr rati-' . ject to both directors' and stockhold- v ers' approvaL The corporate identities ' of both companies will be preserved. Reducing Gas Rates !Tlic Federal Power Commission has ordered El Paso Natural Gas Co. and Transwcstcm Pipeline Co. to reduce hy S17 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 Tcnneco subsidiary) ' to supply gas to the Los Anceles area (CIF. Aug. 6. p. 20). Gulf Pacific last week filed for a rehearing. P.I. Paso and Transwestern were told they-would have to lower their rates to rctlect the lower costs result ing from the bigger deliveries pos- ihlc in the expanded system. At the <:imc time. FPC said it would conduct further- proceedings to decide if cus tomers should get additional benefits resulting front more liberal deprecia tion allowances. FPC has given the companies 45 days to show cause why the reduction should not take place. Asbestos: Awaiting `Trial' The asbestos industry--whose end - PH5 officials think it may take products are valued at more than $500 them up to five yean to establish million/year may be in for a shake- asbestos' true role as an air pollutant. up. It could come in the form of However. Congress may act before federal legislation limiting the use of the research is finished. Says Repre asbestos, because asbestos has been ac sentative Robert Watkins (R-, Pa.); cused--though not yet "convicted"-- "We've seen enough evidence ai- -^significant. health- hazard; Prob-.. -. ready. Asbestos win never get a clean able 'contender for asbestos markets: bill of health. With just a little more plastics. ' data well move for controls and Recent studies have convinced U.S. strict ones." Public Health Service specialists and Some form of asbestos control is other medical authorities that about in the offing, public health officials 40% of all Americans have mild, are certain, if only part of a larger chronic cases of asbestosis, even clean-ambient-air program. However,' though most of them never worked there is the danger that Congress may directly with asbestos. enact rigorous controls on the quanti Unlike other airborne dust particles, ty of asbestos that could be used. ashestos fibers have the ability--al In that ease both Canada and U.S. most as much as activated carbon-- asbestos products manufacturers to absorb poiycyclie hydrocarbons and arscnicels. Furthermore, says would be hard hit Of the five forms of asbestos mined today, chrysotile USPHS. in the past 30 years the as bestos-related cancer rate has in asbestos holds the predominant-jnar- ket position because of its insulat creased sixfold. ing and processing qualities. Canada' The Inferences: While the average produces more than 30% of the chry. asbestos worker Ls well protected, the sotile asbestos used in the U.S. in m:-.n on tne street is not. The 3x1mi.-ror. c.vH.'-os fi'-e*x in his lungs can hoth countries, a number of serious dislocations would occur. ei-r.c from a variety of sources (table. At present, there is no known maT" v'. \::-J medical exnerts say there's no ** - *.* ;:s\cw hydrocarbon content terial that could fill all of asbestos' strategic roles. On the other hand, should federal controls merely call :: lung deposits. ' \:::ericjn Cancer Society research er- feel certain there is a synergistic rei.ition-bip among airborne asbestos. for higher standards for binders and shieldings. that would spark a rise of new products, with plastics taking the lead. Mtt.'kiug n;ul lung cancer. They reason Reason, say industry spokesmen, [fi-i the nontlegrndahle. hydrocxrbotv present polymer technology could -i-.ileil fibers may 'veil be a cCfisfnnt to.uec of lung irritation. easily turn up products to replace as bestos in most end-uses. ' .' . 32 CHEMICAL WEEK September 10. 1966 r"^ ':<r Uim / cc: L7<J-L - C. C. Tlxlel / TO: - J. N. Walker FROM: #172-2 - R. II. Massey SUBJECT: Asbestos - Attached October 13> 1966 Comments on possible health hazards of finely ground asbestos appear to be increasing. Saa Research considered this? Any Federal controls on its use could cause us real problems. HNM/cJe 0-4SII United States Gypsum Company \