Document v1jGO8RjOKOGboROpbkbY7e09
PLAINTIFF'S EXHIBIT
HALLOW GOVERNMENT
EM'S Budget BUMS
espite the rise of
met, recently told the Sen
DAmerica's environmen
ate Committee on Environ-
tal conscfousoess and myradmeet and Public Works.
new pollution law* m the past decade (Set "CUaring
In testimony on its 1992 budget request before the
the Air."page 32), the Envi same committee, EFA Ad
ronmental Protection Agen
ministrator WiBiam Keifr
cy's operating budget has
defended the agency's pro
remained `'capped" for more than a decade, reports the
grams and noted that Ad ministration proposals m-
General Accounting Office.
chtde a 7 percent increase
The operating budget,
over fiscal 1991 for operat
which coven all the agen
ing programs. More than
cy's programs except sew
three-quarters of the in
age treatment plant con
crease would be earmarked
struction grants and Super-
for implementation of the
fund. has not increased in
Clean Air Act amendments
constant 1982 dollars from
passed by Congress last faH
ha fiscal 1979 level of $1.7
Nonetheless, GAO
bflUoo. EFA`s operating bud charges that increases in the
get declined toll biDiofl in
air pollution program are
fiscal 1983 and returned in
made possible only by cuts
1991 to $1.7 bOfion.
elsewhere at EPA. Some
Yet during this same pe
$50 million it being cut from
riod, EPA has seen a tre
asbestos abatement loans
mendous expansion of its
and school district grants.
responaibfljfies, including
Water pollution grants would
new duties far hazardous
be cut fay $25 million. GAO
waste treatment and trans
also is worried about the im
portation, underground stor pact that cutbacks in federal
age tanka, asbestos deinupa iitstmrr to state and local
and the regulation of drink-
governments wffl have on
environmental protection.
'These numbers tell us
GAO noted that the an
that despite high pubfic
nual cost of compliance with
expectations and growing
environmental regulations,
responsibilities, ERA contin which will have risen from
ues to have no more re
$90 billion m 1987 to $160
sources to deal with environ billion m the year 2000. wiD
mental problems than it did
financially strap many com-
13 fears ago." Richard L.
munities, especially localities
Hembra. GAO'S director of
with populations of less than
environmental protection is- 2.500.
Arkansas Wants To End Unnecessary Removal
An Arkansas legislator hopes a proposed bill will end indiscriminate asbestos removal.
The bill sets a maximum allowable level of asbestos for public access areas in any building in Arkansas.
Those affected would have to be informed of the severity of the asbestos risk and protected from removal actions.
The proposed bill would also require asbestos contamination consultants to disclose any financial interest in the companies performing any removal works.
Those who violate the bit) could be
charged with a class A misdemeanor.
Rikfis faces an avalanche
of asbestos liabflity claims
By HAl DAVIS
vlve the growing avalanche of as
Msshulam RikUs the near-bllUonaire corporate takeover ortlat haa been tripped up by the asbes-
tomato.
RlkHs' wife, entertainer Pla Zadora, may be one of hU few re maining assets, if a court ruling dlacloeed yesterday la upheld.
Facing an "avalanche" of asbestoe liability claims, RikUa learned
bestoseases assertedagainst It"
In a March 21 letter to Huff,
Marshall said Rapid hadft asbes
tos cases pending with the num
ber `Increasing every week."
CNA
charged
EUklla
"fabricated" Rapid's "poverty" as
a "ruse" by shifting its assets In a
"shell gamer
CNA lawyer Charles Booth said
Rlklis,"a notorious corporate ad-
Rapid-Ameriean Corp. cannot venturerJiaa made bis fortune
call on the CNA Insurance Coa. to shuffling assets from company to
pay more that $100inclalma.
company in labyrinthine deals
la a precedeat-nttlng decision, that can rarely betraced.**
a Manhattan Supreme Court Booth alleged in court papers judge held that the pollution ex that Riklia moved $LB billion clusion clause" in CNA's Insur from Rapid-Ameriean leaving "a
ance policy applies to "the grad virtuallyemptycorporateshell "
ual release or discharge of aabee- Marshall called the charges
"false scurrilous allegations.** Justlce Carol Huff laid court Citing a 10-K fora dated Janu cases that dealt with the dis ary 21* 196$, Marshall said Rapid *
charge or leeching of toxic waste had assets of "less ,hf half the
Into a creek also applied to "the SL$billion, had HshUlMas evened gradual discharge of asbestos lag $W0 million and a
dust and flhsrs spanning several "stockholder deficiency" a nega
decades."
tive net worth of$157,4mllHon.
If upheld on appeal the ruling "The business ethics of Riklia
could mean teas of thousands of are actontrial***Huffwrote In her
workers made aftek by asbestos eight-page decision.
could And themselves unable to Rlklls* problems stem from the collectcompensationpayments. late 1960a when a company he
Rapid-Ameriean
lawyer
Stephen Marshall had told the then sold the PhiUp Carey j judge that without CNA'a eover- factoring Ootpu, an asbestos mahage, ?Rapfid wULuotbaableto sur- -
n'j'iUi'. Y if.t
MY 1WI
e ft PAST
(h)6H.73S GO
M12, Iffl o -J CD cn
L KKROT
o, ha*
dedicated it* newCartswifla, GA, plant sofetr to toe production at non-asbestos bake taction material. With an estimated annual growth rate at 24%, due in port to a government.ban on asbestos material. non-as&estorbrake products represent the "tartest
growing segment of the automo tive pari* market" according to Tsmeoo. TA take is a non-as bestos brake manufacturer, sup plying brake co-manufacturers and rebufidan. Brake-Pro contin ues as toe aftermarket take divison of Tenneoo Automotive.
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