Document wqON0D9MXvM6pq8ZkZ2v3rEDB

Monsanto FROM (NAME-LOCATION-PHONE) K. S. Cahill G4WD (4) 7518 DATE: SUBJ: REF: TO: January 18, 1994 cc: Monsanto Response J. Kozol's "Savage Inequalities" G. F. Barton (w/o end) L. J. O'Neill M. A. Pierle (w/o end) L. W. Wassell D. R. Bishop - A2SP L. J. Guarraia - B2ND W. D. Lambert - F2EN J. L. Mason - B2NC G. J. Wesley - B2NB G. A. Young - A2SP Attached please find a detailed rebuttal of the allegations and inferences made against Monsanto by education author, Jonathan Kozol, in the first chapter of his book, "Savage Inequalities". The rebuttal has been included in the briefing material for Mr. Mahoney's use at the Synergy '94 conference. The book has and continues to be widely read among educators, and those interested education reform, and we intend to use it in response to external inquiries. in At one point there was discussion regarding a potential meeting with Mr. Kozol. There may be value in opening dialogue, and putting to rest his misconceptions about our Sauget, Illinois operations. Should you have any questions, please do not hesitate to inquire. Cahill DSW 134856 STLCOPCB4034814 Savage Inequalities: Children in America's Schools by Jonathan Kozol Monsanto Response In the first chapter of his book entitled: "Life on the Mississippi: East St. Louis, Illinois", the author makes several references to the Monsanto Company's W.G. Krummrich plant located in Sauget, Illinois. The context in which many of the references are used is misleading. Here is our response to the Kozol assertions. Frequent spills and "the wail of sirens warning residents to evacuate after a spill is common." (page 8) "The frequency of emergencies has caused Monsanto to have a standing account at St. Mary's." (page 8) Safety is the number one priority at Monsanto. Our goal is to eliminate all accidental chemical releases. We have modern safety equipment and procedures in place. All employees receive regular safety training and it is stressed as an integral part of everyone's job. Specifically, the community alarm has not been activated since June 28, 1990 and that was only as a precaution, no evacuation was required and no injuries were incurred. Since that time there have been no incidents requiring use of the alarm at the plant. It is true that as the result of an April, 1988 spill of phosphorus trichloride, approximately 400 were treated and released from local hospitals and clinics. Monsanto paid their medical bills and generous settlements of the residents' claims. Following that incident, on July 31, 1988 a small release of the same material occurred, and the community alarm was sounded as a precaution. It became apparent that from this incident that when the plant alarm sounds, some residents go to the hospital in the absence of exposure. Even the former Mayor of East St. Louis, Carl Officer, noted in the St. Louis Post Dispatch in an August 2, 1988 article that, "I find it difficult to believe that many people were injured in a five minute spill at 7:30 in the morning. That would be fraud wouldn't it? I find it very suspect." Two hundred and fifty four people showed up at St. Mary's seeking treatment. Those who were not exposed hurt the credibility of those who had a legitimate complaint. Monsanto did maintain a contract with St. Mary's Hospital, however, the contract was to provide medical services to our own employees in the event of medical emergencies. CSW 134857 STLCOPCB4034815 2- - Sewer System -- "the problem is all the worse because the chemical plants in East St. Louis and adjacent towns have for decades been releasing toxins into the sewer system." (page 9) Monsanto has not discharged wastewater into the creek for more than fifty years. Prior to the 1930s, when the state of environmental knowledge was not as advanced as it is today, Dead Creek was used to discharge wastewater from a number of industrial and commercial operations in the area, including the W.G. Krummrich plant. Wastewater from the Krummrich plant is treated three times before it is discharged to the Mississippi River. First, it goes through a $25 million pre-treatment system at the plant, in which eleven (11) organic chemicals are removed and levels of six (6) others are reduced. It then goes to the Sauget Physical-Chemical Primary Treatment Plant, where acids are neutralized and solids and heavy metals are removed. The wastewater then flows to the American Bottoms Regional Wastewater Treatment Plant, where organic chemicals are removed, along with organic materials from residential waste. Smoke Columns -- "In the night, the sky above the East St. Louis area is brownish yellow. Illuminated bv the glare from the Monsanto installation, the smoke is vented from four massive columns rising about four hundred feet above the plant. The garish light and tubular structures lend the sky a strange, nightmarish look." The lighting at the plant is designed for safety and based on Monsanto standards for occupancy. The vapor that is visible is steam from the boilers in the powerhouse. There are no structures on the plant site over 160 feet high. In 1988, Monsanto announced a voluntary goal to reduce our air emissions of toxic chemicals worldwide 90 percent by the end of 1992. By the end of 1992, Monsanto had reduced air emissions of toxic chemicals worldwide by 92 percent. The W.G. Krummrich plant reduced by 88 percent. This significant progress represents steps toward our ultimate goal -- zero effect on the environment. In addition, several projects have been undertaken to reduce emissions. For example, the Krummrich plant's process for making paradichlorobenzene (PDCB) -- the main ingredient in mothballs - has increased production by over one-third while eliminating one million pounds of waste that had been discharged to the air and water annually. Another example is the plant's tire derived fuel project that bums shredded tire chips in a coal mixture to generate energy for the plant (among the plant's major products are rubber chemicals for the tire industry). It is estimated that the plant has burned the equivalent of two million tires, and the tire/coal mixture bums cleaner than coal. DSW 134858 STLCOPCB4034816 3- - Contaminated soil -- 'VHel drives with me through the rutted streets close to the plant and points our blocks of wooden houses without plumbing. Straggling black children walk along a road that has no sidewalks. 'The soil is all contaminated here/ he savs." (page, 15) The financial and structural plight of East St. Louis has been well documented. An especially telling account can be found in a May, 1988 three part series in the St. Louis Post-Dispatch which chronicles the reasons for the extreme poverty of the city including corruption, and the relocation of industry after World War II. Our Krummrich plant has been in operation for more than seventy years -- through the good times when East St. Louis was an industrial powerhouse, named an "All-American City" by the National Civic League, and the second largest rail center in the nation - and the not so good times of economic decline and urban blight. Eighteen sites comprise the "Sauget Sites" -- twelve tracts of land and six sections of Dead Creek. The reason these sites were consolidated by the Illinois EPA is that none of them, on their own, pose enough potential hazard to warrant the expenditure of government investigation and clean up funds. The chemicals in Dead Creek are contained because the culverts have been blocked off at Judith Lane and Queeny Avenue, creating a surface impoundment that holds the water in place. The creek is also fully enclosed by a chain link fence. There is little likelihood of public contact, therefore there is believed to be no health risk. During the Summer of 1992, several vacant lots in East St. Louis were transformed into urban gardens through a collaborative effort of Operation New Spirit (a community based organization), Monsanto, and Southern Illinois University. In another example of Monsanto's effort to be part of the solution, the plant contracted with local trash haulers to clear vacant lots when the city of East St. Louis teetered on the edge of bankruptcy in 1988. Buying-off local residents - "Immediately behind these homes are the giant buildings of Monsanto. Big River Zinc. Cerro Copper, the American Bottoms Sewage Plant and Trade Waste incineration -one of the largest hazardous waste incineration companies in the United States. The entire city lies downwind of this. When the plant gives off emissions that are viewed as toxic, an alarm goes off. People who have breathed the smoke are given a cash payment of $400 in exchange for a release from liability." A 1986 release resulted in cash compensation to residents. Following the April 17, and July 31, 1988 phosphorous trichloride emissions, Monsanto accepted claims from East St. Louis residents in the areas effected by the emission. Monsanto wanted to handle the DSIrf 134859 STLCOPCB4034817 4- - situation fairly and make it simple for residents to be compensated. In settling the claims, the residents' medical bills were paid directly to the hospitals, clinics or doctors offices, and residents signed a bodily injury release to bring closure to the incident. There have been no health related claims resulting from accidental emissions since 1988. The phosphorus trichloride unit at the Krummrich plant has been closed and moved to our Luling, Louisiana plant where the product is used as key raw material in manufacturing at that site. Tax Shelter for Industry -- "The chemical plants do not pav taxes here. They have created small incorporated towns which are self-governed and exempt therefore from supervision bv health agencies in East St. Louis... Monsanto. Cerro Copper and Big River Zinc are all in Sauget... Basically, there's no one living in some of these so-called towns... Sauget. on the other hand isn't much more than a legal fiction." (page 16) The Krummrich plant meets or exceeds all state and federal permits and requirements which regulate our operations and emissions standards. Because state and federal laws supersede local ordinances, supervision by East St. Louis health officials is unnecessary. The decision to incorporate as Sauget (formerly Monsanto, Illinois) was made decades ago, and we can only surmise that the corruption that plagued East St. Louis during the city's early years, and proximity to our customers and suppliers led Monsanto management to the business decision to distance the operations from East St. Louis proper. Job Discrimination -- "You would think, with all the chemical and metals plants, that there would be unlimited employment. It doesn't work that wav. Most of these are specialized jobs. East St. Louis men don't have the education. I go into the Monsanto plant and almost every face I see is white." (page 18) Manufacturing is simply not as labor intensive as in years past when the plant employed over 2,000 people. Quoting from a St. Louis Post Dispatch series, "Burgeoning industry gave East St. Louis seemingly unlimited employment, leading to its sort of motto, 'If you can't find a job anywhere, you can find one in East St. Louis.'" Unlike many of the manufacturing operations which closed, the Krummrich plant continues to employ some 580 people. Due to the compensation levels provided by Monsanto, many employees who were formerly residents of East St. Louis have been able to relocate to communities with better educational opportunities and amenities. DSW 134860 STLCOPCB4034818 5- - Monsanto has also embarked on a collaborative effort with the Governor's Office, Illinois EPA, local industry, and the State Community College of East St. Louis to develop an environmental technology associate degree which would prepare residents who obtain the high tech skills necessary to compete for employment with Monsanto, and other modern manufacturing facilities. Buy-Out of Homes -- "In recent years." savs Ahmed, "letters have been going out to people who have homes in a half-mile zone next to Monsanto. The letters offer to buy your home, no questions asked, for cash: $4.000 flat for any house. The speculation is that Monsanto wants a buffer zone to fend off further suits for damages from chemical emissions. These offers are appealing to poor people who have nothing and who have no faith the courts would ever honor their concerns." (page 19) Monsanto has not offered a flat purchase price for all homes in a given area. It is true that, over the past few years, Monsanto has purchased parcels of land around the plant when they become available in order to extend the range of "buffer zone" separating us from our neighbors. A zone free of homes is desirable because it provides additional safety for the community. We have purchased vacant lots or property that is unoccupied. In a few cases, we have purchased property at estate sales or when the property owner was willing to sell. We did not displace anyone. From time to time, we have explored a cooperative effort of this sort with neighboring industries. However, no firm plans have yet developed. Caught in the Middle -- "A boy named Luther speaks about the chemical pollution. 'It's like this,' he savs. 'One is Pfizer -- that's there. They make paint and pigments. The other is Monsanto. On the other side are companies incinerating toxic waste. So the trash is cornin' at us this direction. The chemicals is cornin' from the other. We right in the middle." (page 311 We have aggressively reduced our emissions from the Krummrich plant in our relentless pursuit for zero effect on the environment. The plant has reduced air emissions of toxic chemicals by 88 percent since 1987. The plant installed a $25 million wastewater treatment system, and further environmental control equipment has been installed. DSW 134861 STLCOPCB4034819 6- Plant siting - "Why are all the dirty businesses like chemicals and waste disposal here? This is a big country. Couldn't they find another place to put their poison." (page 35) Monsanto acquired the W.G. Krummrich plant in 1917 from the Commercial Acid Company. The acquisition was based on availability of raw materials, access to distribution channels and other business criteria. At the time of acquisition, the city of East St. Louis was an industrial hub and the second largest rail center in the nation. More importantly, the plant has reduced air emissions of toxic chemicals by 88 percent since 1987. Our ultimate goal is zero impact on the environment. January 18, 1994 DSW 134862 STLCOPCB4034820