Document zowoxDZMZ2wbEobrJXnNz2m73

-- 's> 3-/o-?/ Cc. PLAINTIFFS EXHIBIT 1* QCOQ^CQI Avgust l, 19^7 Hr. Fred L. Gardner Armstrong Contrasting and Supply Corporation 120 L'ortii Lien Struct Inneaster, Pennsylvania 17^02 Dear Fred; Subject} Asbeatosio C3.al.Tns The problem or asbestosla claims end vhat to do to prevent them bos been kiclicd around since 1961. E. 3* Chula in your Milwaukee Office expressed concern for this problem In his letter to John Zeller of December 27, l$6l. R. B. Rose in your Loa Angeles Office vrote to John Zeller on this problem on Ihy 31, 1562. shuiz cane bock, again oa the same problem In his letter to you of March 5, 1$?53. J. 0. Murphy in your Elisabeth Office evidenced concern for the asbestos is claims problem in his letter to John Zeller on August 14, 1964. H. II. liunis in your Richmond Office picked up the ball end passed it to John Zeller ii: his letter of September 30, 1966; to you on November 21, 15**$ and February 6, 1967; and then again to John on April 25 un-1 Avgust 7, 1>o7. In clr.cst all of these Instances, the Insurance Department vas involved to acne extent. AH of ua have given scene attention to the problem, but none of us have seemingly been willing to meet it bcad-cn. Even our meeting with Dick Hamilton of Aetna Casualty and Surety Ccmpexy at your office cn April 4, 1567 failed to produce ary concrete results. Our records nhov a total of 86 anbestosla claIra being filed against' Armstrong Contracting since 1554. Sixty-six claim or JTfl vcre filed in the I50O-07 period; the dicability dates occurring in this none period represented 5-6 of the total claims. In other vords, the time factor betrrccn contraction or the disease and disability la dearly evident in these figures. Acbectasls claim payments made by your insurers (Ihe Travelers 1952-1962; Aetna Casualby 1563-1567) are approximately $100,000,00 cl&ce 1954, Iho payments vore charged e.gninst your retrospective rating adjustment in the yea-3 of employment of the rial rants end not vhon disability bej^n or the claim filed. About $60,000.00 has been paid for your account by Aetna \ Casualty frat 19-60-1567. ''hen you add the lose conversion factor and state \ tax multiplier applicable to these losses in the retrospective rating \ formula, you approach v75,CGO.OO oa your true coat figure. Cae applicable otate occupational disease losses are fairly consistent in ano important respect - the last employer is solely responsible, subject to qvn.11 flcaticas in sene instances such os 60 cloy* continuous employment, etc.. Mr* Jb*d L. tardnr 3 August 1967 fas* asbertosls cl nig In 2*3 state*. Only mix. state* allow apportioiawat. 23aer* la no provision for occupation*! *Mstrnr `benefits In tv state*. (5h* District Of Columbia la included as a state In these calculation*.) Calif-* omla Eav York are two of the sox* ls^ortaxrt state* permitting apportlc* feast*. * The Aetna. Casualty and Surety Ccnp&ny la now receaaending pre-employment X-roya as a result of a survey of tbs DuPont Job In Richmond, Virginia. Hr* Deals, In his latter accaapasyjjo^ the Aetna Casualty Inspection report, refers to the sizeable cost of this recomeointion os veil as the admini*- tmtlve headache that would occur. Wall* Z sense that Hr. Duals cannot accent responsibility far pre-employment X-ray* as reccsssendod by Aetna Cosmlty, I do strongly feel that the tine has arrived for us to tales a position concerning this recccsasxdatlon the overall asbestoal* claln* situation which confronts us. See cost of e asenttally doing nothing Is cited above. Measured against this cost will be the cost of providing pre-employaent X-rays and cry other direct costs of an accident prevention program. Certainly by pre-employment X-ray* and periodic checkups thereafter, ve can essentially eliminate tbs possibility of on employee becoming disabled from asbostosls while working far Armstrong Contracting. Of course, -this action would have to be coupled by a concerted effort at all Job locations to Keep employees froa working in conditions where the atmosphere contains harmful quantities of the disease-producing dust. Z don't Know hew the mechanics of such a program could be worked out) but I do feel that If enough hoods are put together, ve can corns up with a reasonable solution that will operate to the economic advantage of your cccrpany. Bear In nlnd that you arc tho largest insulation contractor in the country, and you will be employlag asbestos venters more often than aiyoao else. Shis . being the co&e, ycu are apt to be tba lost employer care eo than anyone else ami vlth 1*3 states holding last employer fully responsible for benefits, you have the most to gain through this accident prevention program. Vs ore ready to assist you In any way ve can in. resolving this problem. ' Sincerely youra , UTJ Wallace 2. Eofferth Insurance Manager John 2. Zeller, AC13, 120 Earth Lima Street, Lancaster, jbaasylvm.nl* 17602 16. i9*r B. 1. Bm 1961. S. B. la Ua Ki irw af Bnh J. O. A--as* lA, 290a. B. B. Baals la at luat tt^Ma Mia 30, 1966} %a iw aa la Jda oa April 23 t?S^rt>la.jwfaLtttflalMb vlXLlasto Bhb oa atlM Mk Mak Mlltaa ct jMa Oaaltr sal lai Tear emaa aa April 1. 19*T failed %o hib ur ooaarete r It t*a lgfe^T^giaal*5a aa 11-- --L ttaAlUBr la ciadr a ef *a filed. Peak *40,000.00 lai W froa 1960-19&T. Aa* yea Atiyl f||Q^MbXt tiHM >77,000.00 as (Pa Traalao 195*-19fi| >100,000.00 alaaa 195*. La ratla* al J as naaa 1 la tta at a-- AlsahllIty 1 ipa or taa alt far yosr aoocnnt tqr Aetaa a lose caimnlaa fata aad etata 1 la Ua retroepectlse ratine tree sort flpaw. 9w apOleakla state oeoxqpatleaal fllaai lcaaaa are fairly c--lstaa* la eoa l^ortast respect - the Last aeplcgrar la aolaly responsible, stfcject to etallfloatlcaa la aoaa Instances such as 60 days continuous eaplcgmeat, ate.. 20007 X A. (4. n, AuumA> 4. J^ **-*- *-?. /9^/ lu^ Z-/t /7 c*- k^u.j;..*m$L' JLy4st*xX Jc~.y++*Y . OUau+^'-'+j ': <Z~-) Vt f<,Y .d^f*.. 2*. *'& Uru. W, //6 . 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OK! fooO t J .****w- _ 6e> '^7 X>S - *7 7 o *,,; - -J I ' t --t r_r. .? / // CO /// l /III u rr** ut 3 V Z t- ? fry* />*i / // C '/ rr-+j rr+4 *r> ! ir trr* /ut 9 C l rrrt- r*** fxt / /t ' C*7 n*f S~ Ct- O-* .'J. ~ .j. .* i > r*f /*** **+* rr*t h# rtf-4 /TU rrftIf ff]V ft** ft**. /***. *r+* ffff r^U V. S~2- VJ's w"* .> ! 20012 'I 3-/o-?/ Cc.&J) August l, 1967 Mr. Fred L. Gardner Armstrong Contracting and Supply Corporation 120 Uorth Lies Street Lancaster, Pennsylvania 17602 Dear Fred: Subject: Asbestosis Claims The problem of asbestosia claims and vha.t to do to prevent then has been kiclced around since 19ol. E, H. Chula in your Milwaukee Office expressed concern for this problem in his letter to John Zeller of December 27, 19ul. R. B. Ross in your Los Anodes Office wrote to John Zeller on this problem on Iby 31> 19o2. Shulz coma bach again on the seme problem in his letter to you of March 5# 1963* J* G. Murphy in your ELinabeth Office evidenced concern for the usbestesis claims problem In his letter to John Zeller ca Avgust 14, 1964. H. II. Ennis in your Richmond Office picked up the ball end passed it to John Zeller i:: his letter of September 30, 1966; to you on November 21, i960 and February 6, I967; and then again to John on April 25 and August 7, 1967. In almost all of these instances, the Insurance Department was involved to ccne extent. All of us have given some attention to the problem, but none of us have seemingly been willing to meet it head-on. Even our meeting with Dick Hamilton of Aetna Casualty and Surety Ccmpany at your office cn April 4, 1967 failed to produce any concrete results. Our records chow a total of 86 aabe3t03is claims being filed against' Armstrong^Ccntracting since 1954. Sixty-six claims or 77? were filed in the I96O-67 period; tbs disability dates occurring in this same period represented 52? of the total claims. In other words, the time factor betveen contraction of the disease and disability is clearly evident in these figures. Ibe applicable state occupational disease losses are fairly consistent in one Important respect - the last employer is solely responsible, subject to qualifications in acna instances such as 60 days continuous employment, etc.. Kr. Prod L. Gardner 2 August 15, 1967 for asbestoais ^ ^ea la 43 states. Only Bix Btatas allow apportionaant 2>ere la no provision for occupational disease benefit* in two states. (Hi* District of Columbia la included as a state in the3a calculations.) Calif ornia nrrf. Bair York are two of the none important states permitting apporticanent*. Aetna Casualty and Surety Company is now reccsraezding pre-employment X-rays oa a result of a survey of tha DuPont Job in Richmond, Virginia. Hr. Duals, In his letter accompanying the Aetna Casualty inspection report, refers to the sizeable co3t of this rcci7.rguda.tlon 03 veil es the adminis trative headache that would occur. Uni la I sense that Mr. Duals cannot accept responsibility for pre-crgdmynorrt X-rays as reccnasndcd by Aetna Casualty, I do strongly feel that the tine has arrived for U3 to take a position concerning thls'reccczaendatlon end the overall asbestosls claims situation which confronts us. She cost of essentially doing nothing is cited above. Measured against this cost will be tbs cost of providing pre-employment X-rays and any other direct costs of an accident prevention program.. Certainly by pre-employment X-rays and periodic checkups thereafter, ve can essentially eliminate the possibility of on employee becoming disabled from asbestos la while working for Armstrong Contracting. Of course, this action would have to be coupled by a concerted effort at ell Job locations to keep employees from working in conditions where the atmosphere contains harmful quantities of the disoase-producing drat. I don't know how the mechanics of such a program could be worked outj but I do feel that if enough heads are put together, we can come up with a reasonable solitIon that, vl.11 operate to the economic advantage of your-company. Bear in mind that you arc tha largest insulation contractor in the country, and you will be employing asbestos workers more often than anyone else. This being the case, you ore apt to be the last employer more eo than anyone else and with 43 states holding last employer fully responsible for benefits, you have the most to gain through this accident prevention program. Ve are ready to assist you in ary way ve can in resolving this problem. ' Sincerely yours. V7J **-*?' ... Wallace 2. Eofferth - Insurance Manager .^ John Z. Zeller, ACIS, 120 Jfarth Street, Lancaster, Pennsylvania Xj602