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Archive for the ‘Koch Industries’ Category

Chemical weapons to cures.

“Chasing Molecules” explains the connection between chemotherapy pharmaceuticals and photographic chemicals. “I’ve synthesized over a hundred molecules that never existed before,” Warner tells me. By the time he finished graduate school at Princeton in 1988, with a PhD in organic chemistry, Warner had published seventeen scientific papers–many on compounds related to pharmaceuticals, particularly anticancer drugs–a volume of research publication he immodestly but matter-of-factly says is “perhaps unprecedented.”

One day Warner got a call from Polaroid offering him a job in their exploratory research division. So he went to work synthesizing new materials for the company, inventing compounds for photographic and film processes. Describing his industrial chemistry work in an article for the Royal Chemistry Society, Warner wrote: “I synthesized more and more new compounds. I put methyl groups and ethyl groups in places where they had never been. This was my pathway to success.”7 There was even a series of compounds he invented that, in his honor, became known as “Warner complexes.”

Warner had married in graduate school and while working at Polaroid had three children. His youngest and second son, John–born in 1991–was born with a serious birth defect. It was a liver disease, Warner tells me, caused by the absence of a working billiary system (which creates the secretions necessary for digestion). Despite intensive medical care, surgery, and a liver transplant, John died in 1993 at age two. “You can’t imagine what it was like,” says Warner. “Laying awake at night, I started wondering if there was something I worked with, some chemical that could possibly have caused this birth defect,” Warner recalls. He knows it’s unlikely that this was the case, but contemplating this possibility made him acutely aware of how little attention he and his colleagues devoted to the toxicity or ecological impacts of the materials they were creating.

“I never had a class in toxicology or environmental hazards,” Warner tells me and shows me a slide from a lecture he gives that reads from top to bottom in increasingly large type: “I have synthesized over 2,500 compounds! I have never been taught what makes a chemical toxic! I have no idea what makes a chemical an environmental hazard! I have synthesized over 2,500 compounds! I have no idea what makes a chemical toxic! We’ve been monkeys typing Shakespeare,” he adds.

“The chemical synthesis toolbox is really full, and 90 percent of what’s in that toolbox is really nasty stuff.” It’s a coincidence and reality of history, Warner tells me, but the petroleum industry has been the primary creator of materials for our society. “Most of our materials’ feedstock is petroleum. As petroleum is running out, things will have to change. (That is why the “Merchants of Death” are getting more desperate. ” – Chasing Molecules (page xxii)

The chart below is from The Devils Chemists: 24 Conspirators of the International Farben Cartel Who Manufacture Wars by Nuremberg prosecutor, Josiah E. DuBois, Jr. (Examine the boxes and how they feed into one another. The Legal and Patents Depts. box was the law firm of Sullivan and Cromwell. Allen Dulles and John Foster Dulles were partners at Sullivan and Cromwell. They created the CIA to protect their corporate cartel clients)

IG Farben chart

“As petroleum is running out, things will have to change.” – John Warner (Businesses are changing and trying to find that high grade sulfur rich petroleum needed for production is getting more and more challenging. See article titles below)

General Electric to Sell Plastics Division By Claudia H. Deutsch – 2007… In January, when G.E. confirmed long-standing rumors that it was putting its plastics business on the block, most analysts expected the unit to go for $8 billion to $10 billion, and for the probable buyer to be a private equity firm.

But in recent months, G.E. executives had signaled to analysts that they expected to get $10 billion to $12 billion for the unit, and that it would likely go to a strategic buyer — that is, a company that would utilize the division and its products, rather than groom it for an eventual public offering or resale. Most analysts quickly honed in on Sabic, because of its access to Saudi Arabia’s vast petroleum supplies. After all, it was the ever-rising cost of benzene, a petroleum derivative and a key raw material for G.E.’s plastics products, that had sucked the profitability out of the unit for G.E. A company like Sabic, with an inexpensive and inexhaustible supply of benzene could far more easily turn a profit.”

Dow Chemical Closing 3 Plants In Louisiana By Ernest Scheyder, AP Energy Writer Manufacturing.Net – July 01, 2009

Dow Chemical, Saudi Aramco Agree to Factories in Saudi Arabia by Jack Kaskey

Saudi Arabia Stealing 65% of Yemen’s Oil in Collaboration with Total

Netanyahu: Israel prepares to annex most of Syria to secure the jewish future” (That should say Israel’s chemical weapons, pharmaceutical, industrial agricultural, and rubber and polymers industrial future and not “Jewish” future.) http://www.awdnews.com/…/netanyahu-israel-prepares-to-annex…

From Chemical Weapons to “Cures.”

One of the first effective chemotherapy agents, not surprisingly, was valued not for its curative properties but for its efficacy as a killer chemical. We know this chemical today as a notorious agent of war—mustard gas. Deployed by the German Empire during the First World War on the battlefields of Europe, most infamously in Ypres, Belgium, mustard gas—a relatively simple combination of sulfur, carbon, and chlorine—killed hundreds of thousands of French and colonial troops. Over a million others were sickened or maimed for life.* (Side note – this figure is wrong. There were 15,000 and of those 1/4 were killed that’s according to Joseph Borkin, a Treasury investigator who wrote a book about IG Farben and his figures are aligned with others) Once it made its way into the body, the chemical also affected tissues with larger proportions of dividing cells. Wartime autopsies found the lymph nodes, spleens, and bone marrow of victims depleted of white cells…. Mustard gas may have been “gone” from the battlefield, but it was by no means forgotten—which ostensibly explains why, in 1943, the American Liberty ship John Harvey was carrying a load of mustard gas bombs. The bombs were intended for retaliation, just in case the Germans reneged on the treaty. Docked in the old port city of Bari, Italy, the cargo likely would have slipped through the war and evaded the history books had the Germans not raided the port. On December 2, as German planned bombarded Bari, sinking 28 cargo ships including the John Harvey, nearly 100,000 pounds of mustard gas spilled across the harbor and rose into the night sky. Thousands of soldiers and citizens were exposed. Hundreds were hospitalized with chemical burns and blindness. At least 83 died. The cause was a mystery to all but a few “in the know.” Upon autopsy, it was found that the victims’ white-blood-cell counts were oddly depleted.
By the time of the Bari incident, leukemia was fairly well characterized as a cancer of the white blood cells. And secretive studies into the effects of mustard-gas-derived chemicals on white blood cells were beginning to bear fruit. Experiments by pioneering pharmacologists Alfred Gilman and Louis Goodman revealed astonishing efficacy of one mustard-like chemical that targeted white blood cells in laboratory mice afflicted with lymphoma. Typically, laboratory mice with lymphoma lived about 21 days. The first mouse treated with the mustard agent lived a remarkable 84 days. After two doses its tumor regressed. The chemical agent seemed to target cancerous white blood cells. What Goodman and Gilman couldn’t have known then was how the mustard derivative worked—why it seemed to target white cells and not most others. Years later, studies revealed that the chemical slips into the DNA molecule, rendering it incapable of normal replication. Ultimately, the hobbled cells die. Since it targets cells in the process of replicating—those that reproduce most often, including cancerous white blood cells, are preferentially killed. Unfortunately, the chemical’s efficacy was fleeting. Cancer cells, observed Gilman, were remarkably resilient. When dosing stopped, the cancer bounced back. Worse, it became increasingly tolerant to drug exposure. Yet, even though cancer control was short-lived, the ability to melt away a tumor through chemical treatment was unprecedented. In 1942, the first human subject suffering from as advanced leukemia was injected with nitrogen mustard. The response, writes Gilman, “was as dramatic as that of the first mouse.” Exposure to the mustard-gas derivative had chased the cancer into remission within days. However, as with the mice, disease respite was temporary…. Still, chemotherapy derived from mustard gas and other chemicals granted cancer patients a reprieve from death: a few weeks, months, or years—sometimes long enough for the next drug.” – Unnatural Selection: How We Are Changing Life, Gene by Gene by Emily Monsoon (portions from pages 62 – 64.)

“For twenty-one years, while the Kochs were financing an ideological war aimed at freeing American business from the grip of government, Donald Carlson was cleaning up the dregs their industry left behind. Stitched to the jacket he wore to work at Koch Refining Company, the booming Pine Bend Refinery in Rosemount, Minnesota, was the name Bull. His colleagues called him this because of his brawn and his willingness to shoulder the tasks no one else wanted to touch…
Its profitability had proven the Koch’s purchase of Pine Bend prophetic. It had become the largest refinery north of Louisiana with the capacity to process 330,000 barrels of crude a day, a quarter of what Canada exported to the United States. It provided over half of the gas used in Minnesota and 40 percent of that used by Wisconsin. Carlson’s job was demanding but he enjoyed it. He cleaned out huge tanks that contained leaded gasoline, scraping them down by hand. He took samples from storage tanks whose vapors escaped with such force they sometimes blew his helmet off. He hoisted heavy loads and vacuumed up fuel spills deep enough to cause burns to his legs. Like many of the thousand employees at the refinery, Carlson was often exposed to toxic substances. “He was practically swimming in those tanks,” his wife recalled. But Carlson never thought twice about the hazards. “I was a young guy,” he explained later. “They didn’t tell me anything, I didn’t know anything.”
In particular, Carlson said, no one warned him about benzene, a colorless liquid chemical compound refined from crude oil. In 1928, two Italian doctors first detected a connection between it and cancer. Afterward, numerous scientific studies linked chronic benzene exposure to greatly increased risks of leukemia. Four federal agencies—the National Institute of Health (NIH), the Food and Drug Administration, the Environmental Protection Agency, and the Center for Disease Control—have all declared benzene a human carcinogen. Asked under oath if he’d been warned about the harm it posed to his hemoglobin, Carlson replied, “I didn’t even know what hemoglobin was.”
In 1995, Carlson was too sick to work any longer at the refinery. When he obtained his company medical records, he and his wife were shocked by what they read. In the late 1970’s, OSHA had issued regulations requiring companies whose workers were exposed to benzene to offer annual blood tests, and to retest, and notify workers if any abnormalities were found. Companies were also required to refer employees with abnormal results to medical specialists. Koch Refining Company had offered the annual blood tests as legally required, and Carlson had dutifully taken advantage of the regular screening. But what he discovered was that even though his tests had shown increasingly serious, abnormal blood cell counts beginning in 1990, as well as in 1992 and 1993, the company had not mentioned it to him until 1994.
Charles Koch had disparaged government regulations as “socialistic.” From his standpoint, the regulatory state that had grown out of the Progressive Era was an illegitimate encroachment on free enterprise and a roadblock to initiative and profitability. But while such theories might appeal to the company’s owners, the reality was quite different for many of their tens of thousands of employees.
Carlson continued working for another year but grew weaker, needing transfusions of three to five pints of blood a week. Finally, in the summer of 1995, he grew too sick to work at all. At that point, his wife recalls, “they let him go. Six-months’ pay was what they gave him. It was basically his accumulated sick pay.” Carlson argued that his illness was job related, but Koch Refining denied his claim, refusing to pay him workers’ compensation, which would have covered his medical bills and continued dependency benefits for his wife and their teenage daughter. “The doctor couldn’t believe he was never put on workmen’s comp,” she added. “We were just naive. We didn’t think people would let you die. We thought, ‘They help you, don’t they?’
In February 1997, twenty-three years after he joined Koch Industries, Donald Carlson died of leukemia. He was fifty-three. He and his wife had been married thirty-one years. “Almost the worst part,” she said, was that “he died thinking he’d let us down financially.” She added, “My husband was the sort of man who truly believed that if you worked hard and did a good job, you would be rewarded.” – Dark Money: The Hidden History of the Billionaires Behind the Rise of The Radical Right by Jane Mayer (portions from pages 120 – 122.)

Prevention has never been a priority because those who profit from causing cancer and disease also profit from treating it.  Pesticides, chemical weapons, and chemotherapy… oh my! The “Merchants of Death” corporate cartel make a killing from all their wars on nations, insects, weeds, microbes, fungi, terror, and even cancer. Profits all around as they destroy our world and our bodies.

“Dr. Schrader had been working at an insecticide lab for IG Farben in Leverkusen, north of Cologne, for several years. By the fall of 1936, he had an important job on his hands. Weevils and leaf lice were destroying grain across Germany, and Schrader was tasked with creating a synthetic pesticide that could eradicate these tiny pests. The government had been spending thirty million reichsmarks a year on pesticides made by Farben as well as other companies. IG Farben wanted to develop an insect killer that could save money for the Reich and earn the company a monopoly on pesticides…. Dr. Schrader sent a sample of this lethal new fumigant to Farben’s director of industrial hygiene, a man named Professor Eberhard Gross (not to be confused with Dr Karl Gross, the Waffen-SS bacteriologist connected with the Geraberg discovery). Gross tested the substance on an ape in inside the inhalation chamber. He watched this healthy ape die in sixteen minutes. Professor Gross told Dr. Schrader that his Preparation 9/91 was being sent to Berlin and that he should wait for further instruction on what action to take next.

At Dustin, Schrader told Major Tilley that when he learned his compound could kill a healthy ape through airborne contact in minutes, he became upset. His discovery was never going to be used as an insecticide, Schrader lamented. It was simply too dangerous for any warm-blooded animal or human to come into contact with. Schrader said his goal was to save money for the Reich….

“Everyone was astounded, ” Schrader told Tilley. This was the most promising chemical killer since the Germans invented mustard gas. Preparation 9/91 was classified as top secret and given a code name: tabun gas. It came from the English word “taboo,” something prohibited or forbidden… At the Dustbin interrogation center, Major Tilley asked Schrader about full-scale production. Based on the Allies’ discovery of thousands of tons of tabun bombs in the forests outside Raubkammer, Farben must have had an enormous secret production facility somewhere. Dr. Schrader said that he was not involved in full-scale production. That was the job of his colleague, Dr. Otto Ambros…. From Krauch, Major Tilley learned quite a bit more about Ambros. That he had been in charge of technical development of chemical weapons production at Gendorf and at Dyhernfurth. That Gendorf produced mustard gas on the industrial scale, and that Dyhernfurth produced tabun. Krauch also revealed a new piece of evidence. Dyhernfurth produced a second nerve agent, one that was even more potent than tabun, called sarin. Sarin was an acronym pieced together from the names of four key persons involved in its development:  Schrader and Ambros from IG Farben and from the German Army, two officers named Rudiger and Linde.” – Operation Paperclip: The Secret Intelligence Program That Brought Nazi Scientists to America by Annie Jacobson

pages 146 -149

The holocaust never ended, it evolved.

Germany’s Master Plan continues.

“Oil is the blood of mechanized armies–the richest prize of battle. No sacrifice in lives or money has been judged too great to pay for its possession….

In 1929 what has been described by both Standard and I.G. as a “full marriage” was consummated. This marriage was witnessed by four documents dated November 9, 1929: (I) the Division of Fields Agreement, (2) the Four-Party Agreement, (3) the Coordination Agreement, and (4) the German Sales Agreement.* The parties to these nuptials dowered each other with exclusive monopolies in their respective holdings, vowing “loyal adherence” to each other’s welfare for such a time as the marriage should endure. In more concrete terms, the effects of this marriage may be summarized as follows: First, under the Division of Fields Agreement, Standard and I.G. agreed to eliminate all competition between themselves. This was done by recognizing the position of Standard in the oil industry and the position of I.G. in the chemical industry. Standard receive carte blanche in the oil industry of the world with the exception of the domestic German market. I.G., in turn, was assured a free hand in the entire chemical industry of the world, including the United States, a differential which was to embarrass Standard at a later date.

To grasp the magnitude not only of the Standard I.G. cartel but, in particular, the potency and proportions of I.G.’s grip on technology, we must understand the nature of hydrocarbons. Hydrocarbons, compounds containing hydrogen and carbon, are the basis not only of petroleum products and of hydrogenated coal products, but are the fundamental constituents of a whole range of organic substances. A variety of techniques, such as hydrogenation, hydro-forming, hydrocarbon synthesis, polymerization, alkylation, and catalytic cracking, may be applied to carbonaceous matter. From the solid, the liquid, or the gaseous states of primitive materials, coal and oil, it is possible a myriad of petroleum and chemical products.

Thus, whatever is made in either industry, chemical or petroleum, can in large part be created from the raw materials of the other. Moreover, the vast array of synthetics which can be formed by these processes includes those specialized commodities which spell the difference between a vigorous industrial system and an unbalanced second-rate economy. Judged by military potential or by modern peacetime production, no nation which does not have some source of hydrocarbons and the facilities and knowledge necessary to their transformation can be strong.

Coal, oil and air are the triangular arch of the modern chemists’ war. The advances in chemical science have given hydrocarbons the quality and status of the magic philosopher’s stone which can make a poor nation rich. The list of war material which can be brought forth from coal, oil, air and wood reads like the order book of any army’s ordnance command: toll, tetracene, T.N.T., high octane aviation gas, plastics, synthetic rubber, dyestuffs, explosives, medicines, artificial silk, optical lenses, poison gas, food (the high vitamin content oleomargarine fed to German troops comes from this source), paraffin, clothing—what cannot be drawn from this cornucopia of slime and soot? *(Birth control pills, growth hormones, flame retardants, chemotherapy pharmaceuticals, preservatives, pesticides, herbicides, and synthetic nitrates also come from that slime and soot, by the way, since there are not mentioned and should be)

The patents of I.G. and Standard were pooled so that Standard received not only the benefits of its own research in oil technology, but also received the benefit of any discoveries made by I.G. Moreover, it was intended that this patent consolidation would so fortify Standard that all other oil refiners would be reduced to a subordinate position, thus rendering them susceptible and indeed suppliant to the formation of a gigantic patent pool covering the entire oil industry.

The second agreement in this contractual marriage is the Four-Party Agreement, formed for the purpose of executing the Division of Fields Agreement. It was agreed that I.G. would transfer to a joint corporation, Standard-I.G. Corporation (S-I.G.), any rights upon patents affecting the oil industry. Standard in turn would transfer to this offspring its present and future rights under the hydrogenation process.

With regard to the exchange of experience between Standard and I.G., it was states that:
… The parties agree to work together on the technical development of the hydrocarbon field, to communicate to each other during the life and within the scope of this agreement all technical knowledge and experience, past, present, and future, patented and unpatented, of which the parties are now possessed or which hereafter be possessed in the sense of having the power to disposed of them, and also to help each other in their efforts to obtain adequate patent protection.

The merger of petroleum and chemical technology thus brought about could be held in check, “regulated” in business terms, only by a condominium of such size as the Standard-I.G. combine. Within the hydrocarbon and allied fields, the Standard-I.G. agreements must be considered as the radical hub from which other ancillary accords sweep out to all sectors of the oil and chemical industries.

The architecture of Standard’s relationships with I.G. is constructed on foundations which, when uncovered, advertise the true purposes of the edifice and explain its use. Once past the facade of “cooperation,” the structure is seen to be a fortress to withstand any assault by the forces of competition on the territory of Standard or I.G., and a salient base from which both might conduct sorties into adjunct industries.

This stronghold was built, to adapt a phrase used by Standard, by “piling patent upon patent,” and the analogy is therefore not too remote. In the judgement of the Senate Committee investigating the National Defense Program, “to obtain such a patent structure Standard paid a heavy price which, as in the case of other companies creating such patent structures, had to be borne by the entire nation.”

The Standard-I.G. cartel was in its scope and implications larger, more powerful, and in some respects, at least, of greater significance, than any other economic “junto” with which we have dealt or shall deal. But the characteristics of I.G.’s marriage with Standard are so similar to its agreements with other American and European industrial interests that no doubts can be entertained of I.G.’s purposes.” – Germany’s Master Plan: The Story of Industrial Offensive by Joseph Borkin and Charles A Welsh – 1943

(Portions from pages 177 – 185.)

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Trade Secrets Documentary by Bill Moyers

 

 

Trade Secrets – Transcripts

TRADE SECRETS: A MOYERS REPORT
PROGRAM TRANSCRIPT

TEASE:

NARRATION: They are everywhere in our daily lives – often where we least expect them.

DR. PHILIP LANDRIGAN, CHAIRMAN, PREVENTIVE MEDICINE, MT. SINAI SCHOOL OF MEDICINE: We are conducting a vast toxicologic experiment, and we are using our children as the experimental animals.

NARRATION: Not a single child today is born free of synthetic chemicals.

AL MEYERHOFF, FORMER ATTORNEY FOR THE NATURAL RESOURCES DEFENSE COUNCIL: With chemicals, it’s shoot first and ask questions later.

NARRATION: We think we are protected but, in fact, chemicals are presumed safe – innocent – until proven guilty.

SANDY BUCHANAN, EXECUTIVE DIRECTOR, OHIO CITIZEN ACTION: Years of documents have shown that they knew they were hurting people, much like the tobacco industry.

PROFESSOR GERALD MARKOWITZ Ph.D, JOHN JAY COLLEGE: Historians don’t like to use broad political terms like “cover-up,” but there’s really no other term that you can use for this.

NARRATION: In this special investigation, we will reveal the secrets that a powerful industry has kept hidden for almost fifty years.

TRADE SECRETS: A Moyers Report

PROLOGUE:

NARRATION: There is a three-hundred mile stretch along the coast where Texas and Louisiana meet that boasts the largest collection of petrochemical refineries and factories in the world.

Many who live and work here call it “Cancer Alley.”

RAY REYNOLDS: Many, many nights we were walking through vapor clouds and you could see it. You know how a hot road looks down a long straight? Well, that’s exactly what it looks like – wavy. We would complain about it, and they would pacify us by saying, there’s no long term problem. You might have an immediate reaction like nausea, but that’s only normal. Don’t worry about it.

NARRATION: In the living room of his house a few miles from the chemical plant where he worked for 16 years, Ray Reynolds waits out the last days of his life. He is 43 years old. Toxic neuropathy – poisoning – has spread from his nerve cells to his brain.

MOYERS: What’s the prognosis? How long do they give you?

REYNOLDS: They don’t. There’s too many variables, and there’s too much unknown about it.

NARRATION: Dan Ross had no doubt about what made him sick. Neither does his wife of 25 years, Elaine.

ELAINE ROSS: Went to a dance one night, and he walked in the door, and I had never seen him before, didn’t know what his name was or anything, and he started shooting pool with a bunch of his friends, and the friend that I was with, I told him, I said, “That’s who I’ll spend the rest of my life with.”

MOYERS: Love at first sight?

ROSS: Uh huh.

MOYERS: Did he think that?

ROSS: No.

MOYERS: You had to, had to…

ROSS: I had to persuade him. When we got married, he was still in the Air Force, so he spent eighteen months overseas. When he got back, he had an eighteen-month-old daughter. And so probably the main thing was, he was worried about making a living for everybody, for us.

NARRATION: The plant where Dan Ross made that living produces the raw vinyl chloride that is basic to the manufacture of PVC plastic.

ROSS: Danny worked for them 23 years – and every single day that he worked, he was exposed. Not one day was he not exposed.

As the years went by, you could see it on his face. He started to get this hollow look under his eyes, and he always smelled. I could always smell the chemicals on him. I could even smell it on his breath after a while. But even up until he was diagnosed the first time, he said, “They’ll take care of me. They’re my friends.”

NARRATION: In 1989, Dan Ross was told he had a rare form of brain cancer.

ROSS: He and I never believed in suing anybody. You just don’t sue people. And I was looking for answers. Since I couldn’t find a cure, I wanted to know what caused it.

NARRATION: Looking for an answer, she found something that raised more questions instead.

ROSS: I was just going through some of his papers, and I found this exposure record. It tells you what the amount was that he was exposed to in any given day.

MOYERS: Somebody’s written on here, “Exceeds short-term exposure.” What does that mean?

ROSS: That it was over the acceptable limit that the government allows. So this exceeded what he should have been exposed to that day.

NARRATION: There was also a hand-written instruction.

MOYERS: And then there’s writing that says?

ROSS: “Do not include on wire to Houston.”

MOYERS: Don’t send this to the headquarters?

ROSS: Right.

ROSS: My question was: Why wasn’t it included – why was it held up from going to Houston?

MOYERS: What did you take that to mean?

ROSS: Somebody’s trying to cover something up. Why?

NARRATION: Her discovery led Dan and Elaine Ross to sue.

ROSS: And I promised him that they would never, ever forget who he was, ever.

DOCUMENT WAREHOUSE

NARRATION: And this is the result of that vow.

MOYERS: How long did it take you to gather all this?

WILLIAM BAGGETT, JR, ATTORNEY: Ten years.

NARRATION: Over those ten years, attorney William Baggett, Jr. waged a legal battle for the Rosses that included charges of conspiracy against companies producing vinyl chloride. Dan’s employers – and most of the companies – have now settled. But the long legal discovery led deeper and deeper into the inner chambers of the chemical industry and its Washington trade association. More than a million pages of documents were eventually unearthed.

In these rooms is the legacy of Dan Ross.

We asked to examine the documents buried in these boxes – and discovered a shocking story.

It is a story we were never supposed to know – secrets that go back to the beginning of the chemical revolution.

NARRATION: It was love at first sight. In the decade after World War II, Americans opened their arms to the wonders of chemistry.

Synthetic chemicals were invented to give manufacturers new materials – like plastic.

Pesticides like DDT were advertised as miracle chemicals that would eradicate crop pests – and mosquitoes.

The industry boomed.

Since then, tens of thousands of new chemicals have been created, turned into consumer products or released into the environment. We use them to raise and deliver our food. We clean our carpets and our clothes with them. Plastics carry everything from spring water to cooking oil. They’re in our shower curtains and in our blood bags. They are the material of choice in our children’s toys.

But there are risks that come with the benefits of the chemical revolution.

MT. SINAI SCHOOL OF MEDICINE

MOYERS: In this arm?

NURSE: Preferably, if that’s where your vain is good at.

NARRATION: Specialists in public health at the Mt. Sinai School of Medicine in New York – led by Dr. Michael McCally – are trying to assess how many synthetic chemicals are in our bodies. For the purpose of this broadcast, I volunteered take part in their study. A much larger project is underway at the US Centers for Disease Control.

MOYERS: And you’re looking for chemicals?

DR. MICHAEL McCALLY, VICE-CHAIRMAN, PREVENTIVE MEDICINE, MT. SINAI SCHOOL OF MEDICINE: Not the body’s normal chemicals. We’re looking for industrial chemicals, things that weren’t around 100 years ago, that your grandfather didn’t have in his blood or fat. We’re looking for those chemicals that have been put into the environment, and through environmental exposures – things we eat, things we breathe, water we drink – are now incorporated in our bodies that just weren’t there.

MOYERS: You really think you will find chemicals in my body?

McCALLY: Oh yes…no question. No question.

DOCUMENTS

NARRATION: These secret documents reveal that the risks were known from the beginning. The chemical industry knew much more about its miracle products than it was telling. And one of the most toxic was vinyl chloride – the chemical Dan Ross was working with.

PROFESSOR GERALD MARKOWITZ Ph.D., JOHN JAY COLLEGE: One of the indications they knew they should have been telling the work force and public about this is that they mark all these documents “secret,” “confidential.” They tell each other in these documents – “Keep this within the company, do not tell anybody else about this problem.” So they know this is dynamite.

NARRATION: Gerald Markowitz and David Rosner are historians of public health in New York. They were retained by two law firms to study the Ross archive.

DAVID ROSNER, Ph.D., COLUMBIA UNIVERSITY: They certainly never expected historians to be able to look into the inner workings of their trade association and their vinyl chloride committee meetings and the planning for their attempts to cover up and to basically obscure their role in these workers’ deaths.

NARRATION: The hidden history begins with a document from May, 1959.

To: Director, Department of Industrial Hygiene, The BF Goodrich Company.

“We have been investigating vinyl chloride a bit. … We feel quite confident that 500 parts per million is going to produce rather appreciable injury when inhaled 7 hours a day, five days a week for an extended period.”

NARRATION: It is early correspondence among industry medical officers who were studying the effects of working with vinyl chloride. At the time, workers were regularly exposed to at least 500 parts per million.

November 24, 1959. Inter-company Correspondence, Union Carbide.

“An off-the record phone call from V.K. Rowe gives me incomplete data on their current repeated inhalation study. …Vinyl chloride monomer is more toxic than has been believed.”

NARRATION: BF Goodrich was one of the vinyl chloride producers in on the industry’s private conversations.

BERNARD SKAGGS: I started there in June–it was June the 3rd, 1955.

MOYERS: ’55.

SKAGGS: Uh-huh.

MOYERS: When you began, did you think the work might be dangerous?

SKAGGS: No. They told us it wasn’t. The only thing we had to watch about the vinyl chloride was not getting enough of it pass out.

NARRATION: Fresh out of the Army, Bernard Skaggs went to work at the BF Goodrich plant in Louisville, Kentucky.

There, vinyl chloride gas was turned into a dough-like mixture that was then dried and processed into the raw material for PVC plastic. Bernie Skaggs’ job was to climb into the giant vats that spun and mixed the vinyl chloride – and chip off what was left behind. Workers called it “kettle crud.”

SKAGGS: There was vinyl chloride everywhere. The valve, overhead valves had charging valves over there where the vinyl chloride was pumped into the reactors. All of those leaked and dripped. Most of them dripped on the floor all the time. They said it had to be – I think it was – 1,500 parts per million before you could smell it. Not only could you smell it, you could see it. It would – it would get into a vapor, and through the sunlight it waved, waves, and you see it. It was all the time that way.

My hands began to get sore, and they began to swell some. My fingers got so sore on the ends, I couldn’t button a shirt, couldn’t dial a phone. And I had thick skin like it was burned all over the back of my hand, back of my fingers, all the way up under my arm, almost to my armpit. And after enough time, I got thick places on my face right under my eyes…

MOYERS: Did you think it might be related to your job?

SKAGGS: At the start, no.

NARRATION: BF Goodrich would discover the truth.

From: The BF Goodrich Company To: Union Carbide, Imperial Chemical Industries, and The Monsanto Company.

“Gentlemen: There is no question but that skin lesions, absorption of bone of the terminal joints of the hands, and circulatory changes can occur in workers associated with the polymerization of PVC.”

NARRATION: In other words, they knew vinyl chloride could cause the bones in the hands of their workers to dissolve.

“Of course, the confidentiality of this data is exceedingly important.”

MOYERS: What does this memo tell you? This particular memo?

ROSNER: Oh, it tells me the industry never expected that they would be held accountable to the public about what was happening to the work force. They never even expected their workers to learn of the problems that they were facing and the causes of it.

NARRATION: Bernie Skaggs’ hands were eventually X-rayed.

SKAGGS: I was really shocked.

MOYERS: What did you see?

SKAGGS: Well, on the hands, my fingers were all–you know, showed up–the bones showed up white in the x-ray.

MOYERS: In a normal x-ray.

SKAGGS: Yeah, normal x-ray, yeah. And mine were okay till they got out to this first joint out there. Then from there out, most of it was black. Some of them had a little half moon around the end, and then just a little bit beyond the joint. And I said, “What is that? You’ve really surprised me.” He said, “That–the bone is being destroyed.”

MOYERS: The black showed that there was no bone there.

SKAGGS: Yeah, right. The bone was disappearing, just gone.

MOYERS: Dissolving?

SKAGGS: Yeah.

RICHARD LEMEN Ph.D., FORMER DEPUTY DIRECTOR, NIOSH: It was the slowness of action on the industry’s part that was the most striking issue in reviewing these documents.

NARRATION: Dr. Richard Lemen was deputy director of the National Institute for Occupational Safety and Health until he retired five years ago. The Baggett law firm hired him to analyze the secret documents.

LEMEN: The basic tenet of public health is to prevent, once you have found something, immediately stop exposure.

MOYERS: So they should have told the workers right then.

LEMEN: They absolutely should have told the workers. Even if it was only a suspicion, they should have told the workers what they knew and what they could do to prevent their exposure to what they thought was causing the disease.

NARRATION: That is not what happened. BF Goodrich did not tell the workers, even though its own medical consultants were reporting the truth.

October 6, 1966

“The clinical manifestations are such as to suggest the possibility of a disabling disease as a later development.”

NARRATION: What the company’s advisers feared was that the dissolving hand bones could be a warning of something even more serious.

“May be a systemic disease as opposed to a purely localized disease (fingers). …They (Goodrich) are worried about possible long term effect on body tissue especially if it proves to be systemic.”

MOYERS: “…proves to be systemic.” What’s that saying? Interpret that for a layman.

LEMEN: What that’s saying is that this disease may be much beyond just the fingertips, that it could have effects on other organs in the body or other parts of the body.

MARKOWITZ: If all the doctor is looking for is concerns about tops of the fingers and has not been told in the medical literature that this might be a systemic disease, that this information is kept within the chemical industry, then that worker is going to be misdiagnosed. The worker’s condition is going to get worse, and there is no telling what the effects are going to be for that worker.

MOYERS: He could die not knowing what had killed him.

MARKOWITZ: Absolutely.

NARRATION: Goodrich executives did tell other companies what was happening. But they hoped…

“They hope all will use discretion in making the problem public. …They particularly want to avoid exposes like Silent Spring and Unsafe at Any Speed.”

MARKOWITZ: They understand the implications of what is before them and they are faced with a situation that could explode at any minute, and they are…

MOYERS: Politically.

MARKOWITZ: Politically, culturally, economically – this could affect their whole industry if people feel that this plastic could represent a real hazard to the work force, and if it could present a hazard to the work force, people are going to wonder, consumers are going to wonder what is the impact that it could have for me.

WASHINGTON, D.C.

NARRATION: On April 30, 1969 – ten years after Bernie Skaggs first complained to the company doctor about the pain in his hands – members of the industry’s trade association met at their Washington offices. On the agenda was a report from a group of medical researchers they had hired.

Confidential. Recommendations.

“The association between reactor cleaning and the occurrence of acroosteolysis is sufficiently clear cut. The severity of exposure of reactor cleaner to vinyl chloride should be kept at a minimum…”

NARRATION: The advisers recommended that exposure to vinyl chloride be reduced by ninety per cent – from 500 parts per million to 50 parts per million. But the Occupational Health Committee rejected the recommendation.

“A motion to accept the report as submitted was defeated by a vote of 7 to 3.”

NARRATION: Instead, they changed the report.

“Eliminate the last sentence ‘Sufficient ventilation should be provided to reduce the vinyl chloride concentration below 50 parts per million.'”

MOYERS: What’s stunning to me is that at this meeting were, representing the companies, many people with MDs behind their name, MD the chairman, MD the vice chairman, MD, MD, MD. And they were among those voting against the researchers who had said we’ve got a problem here.

LEMEN: I think that that reflects who the medical doctor’s patient really was. Was their patient the workers in the plant – or were they representing their employer? This is a fundamental problem that we’ve had in public health for a long time – and that is, who is more important? Is it the chemical being produced or is it the human being producing the chemical?

NARRATION: For ten years, the bones in his fingers were disappearing. In that time, the industry never told him what it knew. Bernie Skaggs was kept in the dark – until a few months ago, when we handed him one of the secret documents.

MOYERS: There it is, in black and white. Do you want to read it?

SKAGGS: “There is no question but that skin lesions, absorption of bone of the terminal joints of the hands and circulatory changes can occur in workers associated with polymerization of PVC.”

MOYERS: That was describing the condition you had.

SKAGGS: Right, right.

MOYERS: At the same time they were –

SKAGGS: They were resisting anything –

MOYERS: They didn’t say they knew anything –

SKAGGS: And that bothers me, you know. Well, to think that they’d be this dishonest with me. After all of these years – and I put 37-1/2 years in that place – and that they could be dishonest enough not to even ever admit to me that what they did and what they had was what caused my problem.

MOYERS: Then there’s another. Let me read this. The consultants said “This may be a systemic disease, as opposed to a purely localized disease.”

SKAGGS : This is the first I’ve heard of this. I didn’t know that. The company did a good job of I guess I’d call it brain washing. They actually told us, and they told us this, that this vinyl chloride won’t hurt you.

MOYERS: What do you think when you look at all these documents?

SKAGGS: Makes me more bitter than I was.

NARRATION: By the early 1970s, Dustin Hoffman had been famously advised in the movie, “The Graduate,” that “plastics” was the future. But the vinyl chloride industry was hearing something else.

A scientist at an Italian plant, Dr. P.L. Viola, had exposed laboratory rats to vinyl chloride – and discovered cancer. As he steadily lowered the exposure levels in his tests, the cancer persisted. The discovery cast a pall over the promising future of plastic.

NARRATION: On November 16, 1971, the men from twenty vinyl chloride-producing companies gathered at the Hotel Washington to discuss the bad news.

“Publishing of Dr. Viola’s work in the US could lead to serious problems with regard to the vinyl chloride monomer industry.”

MOYERS: How would you characterize the industry discussion?

ROSNER: Close to panic. There is a whole new ball game out there about who is going to regulate industry, how much influence industry will have over these agencies, and the discovery of cancer, of course, is, you know, potentially not only a public relations disaster, but a regulatory disaster for this industry.

NARRATION: At the meeting, one of the European industry’s own scientists presented an even more disturbing report.

“Doctor LeFevre theorizes that vinyl chloride is absorbed in body fats and carried to the brain.”

NARRATION: Despite the startling prospect that vinyl chloride could affect the brain, the companies took no action – and told no one.

“The present political climate in the US is such that a campaign by Mr. R. Nader and others could force an industrial upheaval via new laws or strict interpretation of pollution and occupational health laws.”

NARRATION: A year later, another Italian researcher, Dr. Cesare Maltoni, found evidence of a rare liver cancer – angiosarcoma. In studies sponsored by the European industry, cancer appeared in rats exposed to levels of vinyl chloride common on factory floors in the US. The panicked industry came running.

MARKOWITZ: Two or three American representatives of the chemical industry go over to Bologna and the Europeans tell them that there are cancers now not only at the very high levels, at thousands of parts per million, but down to 250 parts per million. And yet they are determined to keep this secret. And they go so far as to even sign a secrecy agreement between the Europeans and the Americans so that each of their researchers will be secret from everybody outside the industry.

MOYERS: They get together, the American representatives and the European representatives, and they say this is top secret, we are not going to make it public…

MARKOWITZ: Exactly. They…

MOYERS: …to anybody? To the workers?

MARKOWITZ: To the workers.

MOYERS: To the doctors?

MARKOWITZ: To the doctors. No one is going to get this information except the companies who have signed the secrecy agreement.

NARRATION: Conoco, BF Goodrich, Dow, Shell, Ethyl, Union Carbide – some of the founding fathers of the chemical revolution – were among those who signed the secrecy agreement, even as they were admitting to themselves the bad news.

February 13, 1973. Union Carbide. Internal Correspondence. Confidential.

“Dow Chemical Company reviewed the work on the European study. They report the results on rats are probably undeniable.”

Ethyl Corporation. Inter-Office. Subject: Vinyl Chloride.

“All agreed the results certainly indicate a positive carcinogenic effect above or at 250 parts per million.”

NARRATION: The companies knew. Working with vinyl chloride – even at low levels of exposure – could cause cancer.

WASHINGTON, DC

NARRATION: By 1973, the federal government was trying to catch up with the chemical revolution.

A new agency – the National Institute for Occupational Safety and Health – NIOSH – published an official request seeking all health and safety information regarding vinyl chloride.

Two months later, a staff member of the industry’s trade association sent a letter to member companies urging that they tell NIOSH about Dr. Maltoni’s findings.

March 26, 1973

“There is the aspect of moral obligation not to withhold from the Government significant information having occupational and environmental relevance… ”

MCA BUILDING

May 21, 1973. Manufacturing Chemists Association. Minutes of meeting.

NARRATION: But meeting in their conference room in Washington, they discussed keeping secret what they knew of the dangers posed by vinyl chloride.

“We should not volunteer reference to the European project, but in response to direct inquiry, we could not deny awareness of the project and knowledge concerning certain preliminary results.”

MARKOWITZ: It is an extraordinary situation where they know they should be telling the Government about this problem. They know that they are wrong not to tell them. And then they admit that their engaging in this kind of activity can be legitimately seen as evidence of an illegal conspiracy.

May 31, 1973. Union Carbide. Internal Correspondence. Confidential.

NARRATION: A Union Carbide executive reported to corporate headquarters that if the March letter admitting knowledge of Maltoni’s work ever became public, it could…

“could be construed as evidence of an illegal conspiracy by industry…if the information were not made public or at least made available to the government.”

ROSNER: You kind of avoid as a historian the idea that there are conspiracies or that there are people planning the world in a certain way. You just try to avoid that because it’s–it seems too–too unreal and too frightening in its implications. Yet, when you look at these documents, you say yes, there are people who understood what was going on, people who thought about the crisis that was engulfing them or about to engulf them and tried in every which way to get out of that crisis and actually to, in some sense, to suppress an issue.

MOYERS: Do you think all of this added up to, to use your word, a conspiracy?

ROSNER: In a moral sense, I think it was a conspiracy.

NARRATION: We have learned from the secret archive that when the industry met with NIOSH, it did not mention Maltoni or angiosarcoma.

Union Carbide. Internal Correspondence. Confidential.

“The presentation was extremely well received and …the chances of precipitous action by NIOSH on vinyl chloride were materially lessened. NIOSH did not appear to want to alienate a cooperative industry.”

MARKOWITZ: Historians don’t like to use broad political terms like “cover-up,” but there is really no other term you can use for this because the industry had the information. They knew the significance of the information they had, and they refused to tell the Government because they were afraid the Government would take action to protect the work force.

MOYERS: And yet, during this time, Dan Ross and others like him, working in vinyl chloride plants, were being told there was nothing to worry about, that there is no danger.

MARKOWITZ: That’s correct. The industry kept assuring the work force that there was not anything that they need to be concerned about and that they were going to protect the work force.

MOYERS: But they didn’t.

MARKOWITZ: No, they certainly did not.

LAKE CHARLES, LOUISIANA

NARRATION: The companies involved were among those producing more than five billion pounds of vinyl chloride every year – and they were expanding. In 1967, one of them – Conoco – was finishing construction of a new complex in Lake Charles, Louisiana. Dan Ross moved his family into a small house less than a quarter of a mile from the new plant’s back door.

ELAINE ROSS: He went to work there, he started as a pumper loader. And he moved up fast in the first year that he was there.

MOYERS: He was eager for hard work or…

ROSS: Or he was smart, he was smart, and a hard worker.

NARRATION: Another early hire at Conoco was Everett Hoffpauir – who took the job shortly after he returned from serving in Vietnam.

EVERETT HOFFPAUIR: We were in the start-up phase, and early operation phase, and they were getting all the bugs out of it, and we had a lotta releases, and we had a lotta problems. Prevailing attitude with management at the time was “Let’s get it back online; downtime is killing us.” So as long as it wasn’t gonna blow sumpin’ up, go on in there and do what you gotta do.

MOYERS: You were breathing it?

HOFFPAUIR: We were breathing it, get higher than a Georgia pine sucking on it, you know. It’s very intoxicating. It’s a lot like propane or any other light end, it’s aromatic and, like I say, it did give you a buzz if you stayed in it long enough.

Their attitude was, if you don’t wanna do the job, there’s four waitin’ at the gate waiting to take your job. Do it – or else.

Vietnam was winding down, had a lot of people that weren’t working or if they were, were working for a lot less money. And plant jobs were very attractive. So if you didn’t want to do the work, just say so – somebody’s waitin’ to take your place.

MOYERS: So you’d worry more about your job than about your health?

HOFFPAUIR: Well, sure you were. I had a wife and three kids at home that I had to feed, you know. Yeah. But nobody told you it was a real health hazard, so you didn’t worry about it.

NARRATION: But the companies were worried.

December 14, 1971. Ad hoc planning group for Vinyl Chloride Research.

NARRATION: To counter the damaging information from the European animal studies, the industry commissioned a confidential study of its own workers that it planned to use in its defense.

“The need to be able to assure the employees of the industry that management was concerned for, and diligent in seeking the information necessary to protect their health. The need to develop data useful in defense of the industry against invalid claims for injury for alleged occupational or community exposure.”

MARKOWITZ: They are telling the scientists this is what we want. They are giving them the money to do the research, and the scientists know that in the end, they have got to come up with something that is approximate to what their funders are interested in.

MOYERS: In other words, they were saying to the epidemiologists, the researchers, the scientists, here is the end we want. Produce the science to get us there.

ROSNER: That’s right.

MARKOWITZ: When research is conducted in that way where you are trying to protect the industry, rather than give the industry the information it needs to protect the work force and the public, the process of science is absolutely corrupted.

LEMEN: Good science is to design a study that will determine whether or not there is an effect from the exposure to the chemical. And you should design that study with the greatest amount of power, the greatest amount of ability to detect whether or not there is an effect. Therefore, you should study those workers that are most directly exposed and eliminate workers that don’t have exposure. That was not done.

MOYERS: Go to the pool of affected workers, not the pool of workers who might be on the margin of the process.

LEMEN: Absolutely. They didn’t do that. They included workers in their study that were probably not ever exposed to vinyl chloride.

MOYERS: So if you bring in secretaries and managers or people out driving trucks, you’re diluting the impact of your study.

LEMEN: Absolutely. Absolutely. And you can’t get a true result when you do something like that.

NARRATION: The researchers were restricted to studying employment records and death certificates. They did not interview the workers themselves.

MARKOWITZ: They were in, from their perspective, a terrible bind. They wanted the information to know if the workers had suffered any injury as a result of exposure to vinyl chloride, but they didn’t want to tell the workers that they might have been exposed to vinyl chloride and that there was a danger in that exposure. So they didn’t want to even alert the workers in any form through these surveys that they might have had a problem that they should investigate themselves, that they should consult with their doctors about, that they should be worried about.

NARRATION: The confidential documents reveal other efforts that affected the outcome.

October 15, 1973. Vinyl Chloride Epidemiological Study. Progress Report.

“Several companies have indicated that they do not wish their terminated employees to be contacted directly.”

LEMEN: If you have workers that have left employment, they may have left because they were sick. They may have left because they had had some reason to leave. And excluding them from the study gives you a very biased result.

NARRATION: The companies also worried that if researchers contacted the families of workers who had died, someone might get suspicious.

“This becomes even more complicated when one seeks information from relatives of past employees who have subsequently died. …In other words, we need the information, but at what risk.”

ROSNER: I think this is how we, as historians, are looking at it. If you could keep that knowledge secret, keep the causes secret, keep the information secret for long enough, workers will die of other things, they’ll vanish from the work force, they’ll go on to other places, they’ll retire and die of diseases that may or may not be directly linked to the experience in the workplace.

MOYERS: How are lay people like me, citizens, supposed to decide what is good and what is bad science?

LEMEN: That’s hard. It’s real hard. Science is easy to manipulate.

NARRATION: In the end, the industry got a report that said what it wanted.

Lake Charles, Louisiana. PPG/Vista.

“Study after study has confirmed there is no evidence that vinyl affects human health – not for workers in the industry, not for people living near vinyl-related manufacturing facilities, not for those who use the hundreds of vinyl consumer and industrial products.”

NARRATION: So workers like Dan Ross were not told why they were getting sick.

ROSS: He came home from work one day, and he was taking off his boots and socks, and I looked at his feet. The whole top of ’em were burned. Now, he had on safety boots, steel-toed, and the whole top of his feet were red where the chemicals had gone through his boots, through his socks, under his feet, and burned them, both feet.

MOYERS: You knew that chemicals had caused it?

ROSS: Oh, yeah. There was no doubt in his mind, because he had been standing in something. I don’t remember what it was. I said, “My God, what was it that goes through leather, steel-toed boots and your socks to do that?” You know, I said, “Don’t get in it again, whatever it was. Don’t get in it again.”

HOFFPAUIR: I got chlorine gas and I went to the hospital, but, you know, it, it was just part a the – it wasn’t an everyday thing that you got chlorine. It was a everyday thing you got vinyl and EDC. Chlorine’s a bad, “bad news doctor” there. It’ll hurt ya. But you weren’t aware. You knew that instantly. You weren’t aware that this insidious little monster was creeping up on you, vinyl chloride was creeping up on you and eating your brain away. And that’s what it all tended out to prove out that it was doing. Just eating your brain up. Who was to know? No one told us. No one made us aware of it.

MOYERS: We can’t live in a risk-free society, can we?

HOFFPAUIR: No, we can’t live in a risk-free society. But we can live in an honest society.

NARRATION: The chemical industry was not being honest with its workers. And it was not being honest with the public.

In beauty parlors across America, hairdressers and their customers were using new aerosol sprays. No one told them they were inhaling toxic gas at exposure levels much higher than on the factory floor.

ROSNER: Vinyl chloride is a gas, and it is used as a propellant in hairsprays, in deodorants at that time, in a whole slew of pesticides and other cans that are propelling chemicals out into the environment. So, if it turns out that this relatively low threshold limit is poisoning workers, what is the potential danger if it ends up poisoning consumers?

NARRATION: Once again, buried in the documents, is the truth the industry kept hidden.

March 24, 1969. BF Goodrich Chemical Company Subject: Some new information.

“Calculations have been made to show the concentration of propellant in a typical small hair dresser’s room. …All of this suggests that beauty operators may be exposed to concentrations of vinyl chloride monomer equal to or greater than the level in our polys.”

NARRATION: The threat of lawsuits gave the industry second thoughts about marketing aerosols.

Union Carbide. Internal Correspondence. Confidential.

“If vinyl chloride proves to be hazardous to health, a producing company’s liability to its employees is limited by various Workmen’s Compensation laws. A company selling vinyl chloride…”

MOYERS: “A company selling vinyl chloride as an aerosol propellant, however, has essentially unlimited liability to the entire U.S. population.” What does that mean?

ROSNER: The problem that they’re identifying is the giant elephant in the corner. It’s the issue of what happens when worker’s comp isn’t there to shield them from suits in court, what happens if people who are not covered by worker’s comp suddenly get exposed to vinyl chloride and begin to sue them for damages to their health.

MOYERS: Unlimited liability.

ROSNER: Unlimited liability. Millions and millions of women, of workers, of people exposed to monomer in all sorts of forms. This is catastrophic. This is potentially catastrophic.

Interoffice Memo. Ethyl Corporation.

“Dow … is questioning the aspect of making sales of vinyl chloride monomer when the known end use is as an aerosol propellant since market is small but potential liability is great.”

ROSNER: They consciously note that this is a very small portion of the vinyl chloride market. So why expose themselves to liability if this minor part of the industry can be excised and the huge liability that goes with it excised?

Allied Chemical Corporation. Memorandum. Subject: Vinyl Chloride Monomer.

“Concerning use of vinyl chloride monomer as aerosol propellant, serious consideration should be given to withdrawal from this market.”

MARKOWITZ: Here you have the industry saying we are going to give up this part of the industry, the aerosol part of the industry, because the liability is so great. But they are not going to inform the work force. They are not going to do anything about protecting the work force because the liability is limited for them. And so it’s a very cynical way of deciding on how you are going to deal with this dangerous product.

They have put people in danger. They have exposed a variety of people to a dangerous product, and, yet, they are not willing to say this is something we did, we didn’t know it, we, you know, had no way of knowing it, whatever excuses they wanted to make up, but they don’t even do that.

NARRATION: Some companies would give up the aerosol business – but quietly. No public warning was issued. Now, 30 years later, those hairdressers and their customers are unaware of the risks to which they were exposed. And it is impossible to know how many women may have been sick or died – without knowing why.

LOUISVILLE, KENTUCKY

NARRATION: 1974. B.F. Goodrich announced that four workers at its Louisville, Kentucky, vinyl chloride plant had died from angiosarcoma – the rare liver cancer uncovered by Dr. Maltoni. A link to their jobs could not be denied.

But neither workers nor the public knew that the companies had kept from them the clear connection between the chemical and the cancer.

WORKER # 1: My test came back bad and I’m only 26 years old, couple of young kids, really scares you.

NARRATION: When news of the four deaths broke, two hundred seventy employees were tested. Blood abnormalities showed up in fifty-five of them.

WORKER # 2: Fifty per cent of the guys I worked with in the late fifties aren’t around now, and that’s a twenty year period. And I’ve been here twenty and a half years.

WORKER #3: It just kindly upsets me and my wife, naturally, and my mother. It’s – I know it’s a problem. It’s, it’s, it’s just – what do you do?

NARRATION: The company provided no answers. But experts like Dr. Irving Selikoff, the country’s leading specialist in occupational disease, rushed to Louisville.

WORKER #4: Have they found anything besides cancer that vinyl chloride might cause? Or have you all looked for anything besides cancer?

DR. IRVING SELIKOFF: The liver can be affected even besides cancer. Scarring can occur in the liver. Fibrosis. The blood vessels can break, the veins can break, and you can get a fatal hemorrhage, even.

WORKER #5: Once you have found that a man has this cancer caused from vinyl chloride, will you be able to cure it?

SELIKOFF: The answer is, no. At this moment, we do not know how to cure angiosarcoma.

BERNARD SKAGGS: My opinion is, if the liver thing had not come to the forefront, I don’t think they would have ever admitted anything.

MOYERS: If those guys hadn’t died.

SKAGGS: If they hadn’t died. I’m thinking about those people that I knew that died needlessly. I’m the fortunate one. I’ve lived through it. I’ve survived it. Some of them were cut off in their youth. I mean, they were young people.

NARRATION: Nine months later – over the objections of industry – the government ordered workplace exposure to vinyl chloride reduced to one part per million.

NARRATION: The aftershocks of the chemical revolution resounded throughout the 1970s. New words began to enter our vocabulary.

In Missouri, oil contaminated with dioxin had been sprayed on the dirt streets of a small working class town. When flood waters spread the poison everywhere, the entire population was evacuated.

In upstate New York, where homes had been built on a long-abandoned chemical dump, children were being born with birth defects. Love Canal was declared a disaster area.

Scientists looking for PCBs found them everywhere – in the mud of lakes and rivers, in birds and fish, and so up into the food chain. They showed up in cow’s milk in Indiana and mother’s milk in New York.

These modern poisons were not only widespread – but long-lasting.

BENZENE

NARRATION: Then came the benzene scare. Although it was known to be toxic, its use in gasoline helped fuel the American economy. But as evidence mounted connecting benzene to leukemia, the Occupational Safety and Health Administration – OSHA – ordered that workplace exposure be lowered to one part per million – a regulation the industry, then producing 11 billion pounds a year, would challenge.

DR. PHILIP LANDRIGAN, CHAIRMAN, PREVENTIVE MEDICINE, MT. SINAI SCHOOL OF MEDICINE: It’s almost inevitable that when a chemical becomes part of the political process that its regulation is going to be delayed. A chemical that has no commercial value is easy to regulate.

NARRATION: To counter the proposed regulation with its own science, the industry created and funded a $500,000 “Benzene Program Panel.”

PETER INFANTE, Ph.D., DIRECTOR OF STANDARDS REVIEW, OSHA: The science at the time was that a) benzene caused leukemia. I think there was no question about that.

MOYERS: There was no doubt in your mind that workers were at risk who were using benzene in those plants?

INFANTE: There was no doubt at all in most scientists that I spoke with. I think the only ones that had a contrary view were some scientists that represented the industry.

NARRATION: Again, the documents reveal that, just as with vinyl chloride, the industry’s own medical officers had known of benzene’s toxicity for a very long time.

MOYERS: Here’s an internal memo from 1958, 43 years ago, from Esso Oil’s medical research division. This came out of their own medical center. Quote: “Most authorities agree the only level which can be considered absolutely safe for prolonged exposure is zero.” What does that say to you?

INFANTE: There’s certainly information that the medical department has, and that information, you know, is not being conveyed to the workers, and that information is not being used to modify behavior by the company.

NARRATION: Instead of changing its behavior, the petrochemical industry turned to the courts to stop the regulation. The companies argued that reducing exposure to benzene would be too costly.

October 11, 1977

“We assert that there is no evidence that leukemia has resulted from exposure to benzene at the current concentration limits. The new and lower limitation on exposure would represent an intolerable misallocation of economic resources.”

NARRATION: The Fifth Circuit Court of Appeals in New Orleans – in America’s petrochemical heartland – ruled that the government had not proved the danger to humans to be great enough to justify the cost to industry. The victory propelled an offensive directed by the now re-named Chemical Manufacturers Association.

September, 1979. A Summary of Progress. Presented to the Board of Directors.

“Gentlemen, this is a campaign that has the dimension and detail of a war. This is war – not a battle. The dollars expended on offense are token compared to future costs.

“The rewards are the court decisions we have won, the regulations that have been modified, made more cost effective or just dropped. The future holds more of the same.”

DBCP

NARRATION: The companies had their battle plan in place when trouble erupted over a little-known pesticide – produced by Dow, Occidental and Shell – called DBCP.

WORKER #1: I worked in the DBCP unit itself manufacturing the chemical. And now after telling me that I shouldn’t worry about anything out there because it can’t hurt me, now to find out that I’m sterile from it, their answer was, don’t worry about that because you can always adopt children.

NARRATION: Talking among themselves, workers had figured out that many of them could not have children. Company officials claimed there was no pattern – and no evidence, even though newly-ordered tests proved disturbing.

WORKER #2: They ran a series of four sperm counts on us over a period of, I guess, two or three months. All my sperm counts came up zero. And I’d never been told in the whole time I’d been working out at Shell that this might happen to me.

NARRATION: What the industry also didn’t tell was that its own scientists had known of the dangers for decades.

Dow Chemical Company Biochemical Research Laboratory. July 23, 1958

“Testicular atrophy may result from prolonged repeated exposure. A tentative hygiene standard of 1 part per million is suggested.”

NARRATION: Dow had treated the report as “internal and confidential,” did not reduce exposure to DBCP – and did not tell the truth.

V.K. ROWE, Dow Chemical Company: It is our regular policy wherever to totally inform people about what the material is that they’re working with and what its potential is. So I can’t say precisely what was said in one situation. It’s generally throughout the company that we try our best to inform people about what are the hazards, how to avoid them and what to do if they have an accident – or what.

WORKER #2: The thing that bothers me, I think, more than anything is the fact that the chemical industry had no interest whatsoever in protecting us through telling us the dangers of what we were working with.

NARRATION: The companies were neither protecting their workers – nor their neighbors. An engineer at Occidental had alerted his plant manager.

April 29, 1975. Inter-office memo.

“We are slowly contaminating all wells in our area and two of our own wells are contaminated to the point of being toxic to animals or humans. THIS IS A TIME BOMB THAT WE MUST DE-FUSE.”

AL MEYERHOFF, FORMER ATTORNEY FOR THE NATURAL RESOURCES DEFENSE COUNCIL: DBCP was a reproductive toxicant, a very powerful carcinogen. It was found in drinking water wells throughout the country. It stayed on the market because to ban it, you first had to have an administrative process within a Government agency that was under great political pressure from power people on Capitol Hill. If you put enough hurdles up even the best-intentioned Government regulator is hamstrung.

NARRATION: The companies kept DBCP on the market for eight more years. And it would take a decade for the best-intentioned regulators to finally reduce the exposure level to benzene. By then, the evidence was so overwhelming the industry did not challenge the regulation. For some, it came too late.

LANDRIGAN: We knew how many chemical workers there were, how many rubber workers, how many petroleum workers, how many workers in other industries that were exposed to benzene, and on the basis of knowing how many were exposed and knowing the levels at which they were exposed, we were able to calculate how many unnecessary deaths from leukemia resulted from exposures during that 10-year delay.

MOYERS: How many?

LANDRIGAN: And the number was 492 unnecessary deaths from leukemia. Deaths that almost certainly would have been prevented if the standard had been reduced to 1 part per million back in the 1970’s.

MOYERS: What are the lessons that you would have us draw from this case of delay?

LANDRIGAN: Well, I think the most fundamental lesson is that we have to presume chemicals are guilty until they are proven innocent. What’s needed is an unpolluted political structure that is empowered to set regulations that protect the public health.

NARRATION: That’s not the political structure the industry wanted.

September 8, 1980. Report to the Board.

“The cold fact is that the Congress today has more influence over the agencies than the White House does.

“For even our best friends in Congress, there’s a limit to how long they’ll support us if the public’s against us.”

WITNESS IN HEARING: The industry’s gotten away with murder. That’s why they don’t move forward. Because it’s cost them some money and some effort, and if they’re not pushed, they won’t move.

“We need real muscle, the kind none of your lobbyists are likely to have as individuals. One growing source of political strength outside Washington is the Political Action Committees. PAC contributions improve access to Members.”

NARRATION: Through almost two hundred quickly-formed political action committees, the industry would contribute over six million dollars to the 1980 election campaign.

“When the time comes to play hardball, we’ll try to make good use of the political muscle you’ve been helping us develop.”

REAGAN INAUGURATION

NARRATION: Ronald Reagan was petrochemical’s favorite Presidential candidate. And four of the top five Senate recipients of the industry’s largesse were Republican challengers who defeated incumbents.

The industry was ready to play hardball.

September 28, 1981. Government Relations Committee. Pebble Beach.

“The Committee believes that the new climate in Washington is more reasoned and responsive. …The election of the Reagan Administration appears to have produced changes which bode well for our industry.”

NARRATION: The Reagan team asked business for a wish-list of actions that could be completed within the first 100 days. In less than a third that time, the new President signed an executive order that transformed the battle over the safety of chemicals.

CHANGES FOR THE BETTER

“President Reagan directed EPA to delay proposing or finalizing regulations until it could be determined that they were cost-effective and necessary.”

NARRATION: A prime target was the one law intended to give the Environmental Protection Agency broad authority to regulate toxic chemicals – the Toxic Substances Control Act – TSCA.

JACQUELINE WARREN, FORMER ATTORNEY FOR THE NATURAL RESOURCES DEFENSE COUNCIL: The whole theory of TSCA was that we’re not going to keep waiting until we can count the bodies in the street. We’re going to do some preliminary steps early on, catch the problems in the laboratory, get rid of them, identify the really bad actors, take some steps to reduce exposures, to find substitutes for these. That was the theory. It just in practice has never worked.

NARRATION: Case in point: A class of chemicals known as phthalates. In 1980, the National Cancer Institute had determined that one phthalate – DEHP – caused cancer in animals. By the time the Reagan Administration came to town, the Chemical Manufacturers Association was already spending hundreds of thousands of dollars on efforts to thwart any regulation.

“We must arm ourselves with cost calculations for alternate environmental control strategies; and we must feed that information to EPA as early as possible.”

NARRATION: Industry representatives and attorneys met three times with the number two man at the EPA. No environmental or consumer organizations were invited – or informed. Jacqueline Warren was one of those closed out.

WARREN: And we weren’t really there to say, “We represent another point of view on this that you should hear before you decide to go along with what the industry might be proposing”, since their interest is much narrower. They’re interested in their bottom line, their stockholders, their product, and they’re not as interested at all in what the potential health or safety or environmental effect of exposure to this might be. In fact, they’d rather keep that quiet if they can.

NARRATION: Although phthalates are widely used in common products from shower curtains to children’s toys, the EPA announced it would take no action to either ban or limit the uses.

MEYERHOFF: We refer to it as the Toxic Substances Conversation Act.

MOYERS: Because?

MEYERHOFF: They built in obstacle after obstacle and process after process where it is virtually impossible to get a known high-risk chemical off the market. There have been very few chemicals that have been actually banned because of their health risks. That’s because chemicals get far more due process than people do.

MOYERS: Chemicals have more rights than people?

MEYERHOFF: Far more rights than people.

NARRATION: The public protested that the Environmental Protection Agency had become a captive agency. What the public protested, the industry celebrated.

January 11, 1982. CMA Board of Directors. Grand Ballroom, Arizona Biltmore.

“Just ten days ago, TSCA celebrated its fifth birthday. The first five years of TSCA have seen numerous rules proposed by the Agency. To date, we have seen none of these types of rules finalized.”

WARREN: In terms of what we thought TSCA was going to mean, we haven’t made a big dent in getting tested the very large number of chemicals that are all over the environment and to which people are exposed to all the time, for which there are some data already available to suggest that they may be harmful. We’re still having to wait until the actual harm appears, and then try to do something about it.

MOYERS: Who’s in charge of the process now? LEMEN: The industry.

MOYERS: Regulating itself?

RICHARD LEMEN Ph.D., FORMER DEPUTY DIRECTOR, NIOSH: They’re in charge of doing that. The government is supposed to, but the industry has so much control through the lobbying efforts that they actually indeed do control it themselves.

NARRATION: To this day – almost 25 years after the Toxic Substances Control Act was enacted – only five types of chemicals, out of thousands, have been banned under the law.

INSTITUTE, WEST VIRGINIA

NARRATION: August 11, 1985. The accidental release of a toxic cloud from a Union Carbide plant in Institute, West Virginia sends 134 people to the hospital. It is only eight months after an explosion at a Union Carbide plant in Bhopal, India had killed some 2000 people – and injured 200,000 more.

REPORTER: When they told you it was a leak, what was the first thing that went through your mind?

MAN: India. Because you’re so helpless.

WOMAN: They didn’t know where it came from, they didn’t know what it was till two days later after it happened. You fumble and stumble and cause our lives to be turned upside down over things you misplaced – over 500 gallons of this mixture. Now I can see misplacing one or two gallons of gasoline around your house…

ROBERT KENNEDY, PRESIDENT, UNION CARBIDE: If we don’t make those chemicals, someone will. Someone will make those chemicals, and you know, you can wish the problems on somebody else. I had a dog once who overly aggressive and he bit a mailman once. And he missed a mailman about three times. And I was very upset about it. And I asked a vet finally if she thought that I could find a good home for that dog. And she said, Mr. Kennedy, don’t give your problem to somebody else. And I think I learned something by that. I don’t think we want to quit.

MAN IN AUDIENCE: When will you listen? I don’t want to hear your dog stories. We’re talking about people. And their lives and their homes and their families. You can have my job if you want it. Because by god, I can get another job. I can’t get another life.

NARRATION: Accidents were but one symptom of our co-existence with industrial chemicals.

In the late 1980’s, people began to agitate for the right to know more about the chemicals that they – and their children – were being exposed to.

WOMAN: I don’t think we should be afraid any more about talking about controls on the chemical industry. These are private companies -Carbide, DuPont, FMC, all of them – whose day to day decisions in those corporate board rooms are affecting our lives, our children’s lives, and the future generations.

MAN: What about cleaning up the industry? Stop the leaks, for Christ’ sake. Don’t kill me. Let’s do something.

NARRATION: In California, they did do something. In 1986, citizens themselves rounded up enough signatures to put the Safe Drinking Water and Toxic Enforcement Act – Proposition 65 – on the California ballot.

MEYERHOFF: With Prop 65, if you are a manufacturer of a chemical and you’re exposing my family to a health hazard in a consumer product, in the workplace, in the air and the water, you have to warn me, and that makes a big difference because the public then doesn’t buy the product and it shifts the burden to the company.

MOYERS: You were really turning the system of regulation upside-down.

MEYERHOFF: Yes. It turned the entire system on its head, and that’s why the chemical industry and agriculture and others in California fought the law so hard.

NARRATION: Once again, we have learned from the secret documents how industry planned to fight.

June 4, 1986 California Toxics Initiative.

“A campaign fund of $5 million dollars has been targeted, with a broad coalition of industry and agricultural interests having been formed to finance and manage the campaign.”

MOYERS: “A total of $150,000 is needed by June 25th for fund-raising, research, and advertising, an additional $650,000 payable during July, August, or September.”

MEYERHOFF: Well, I always knew there were resources against us. I actually was unaware of the amount. That actually surprises me that there was quite that high level of dollars, and that was a lot of money then, to oppose Prop 65.

NARRATION: But the industry had been caught short; its money came too late. On election day, California’s right-to-know proposition passed – overwhelmingly.

MEYERHOFF: What the voters were saying is that we don’t trust the Government to protect us any longer from chemicals that cause cancer or birth defects or other harm, give us the information, tell us when we are at risk, we’ll protect ourselves. That was the basic message. And if you fail to do that, then you, a chemical company or grower or others, can be fined up to $5,000 per day, per person that isn’t warned. Prop 65 put the fear of God in the chemical companies, and it had never been there before.

NARRATION: Afraid of aroused public opinion, the companies vowed never to be caught short again.

June 3, 1987 Board of Directors Meeting. Chemical Manufacturers Association. State Toxics Initiatives

“Development of a funding plan which would include an industry-wide ‘pledge’…”

MOYERS: …”pledge” of resources company-by-company, pre-authorization to commit the funds to individual state campaigns.” Does that surprise you?

SANDY BUCHANAN, EXECUTIVE DIRECTOR, OHIO CITIZEN ACTION: Well, it helps me understand why they were able to marshal their forces so quickly in Ohio and from so far across the country, the idea that they were ready for it and committed.

MOYERS: But you didn’t know about this?

BUCHANAN: No. I didn’t know about that until just now.

NARRATION: Sandy Buchanan heads Ohio Citizen Action, the group which took the lead in getting a right-to-know initiative on the Ohio ballot in 1992.

MOYERS: Though you didn’t know it at the time, I assume you were up against a lot of that money?

BUCHANAN: We were up against about at least 4.8 million of it.

MOYERS: 4.8 million.

BUCHANAN: That was the final spending on the actual ballot campaign.

MOYERS: By the industry.

BUCHANAN: By the industry in Ohio. They definitely spent more money than that, though, because at every stage of the process through the legislature and others, they brought us to court and they tried to challenge the legality of our petitions.

MOYERS: So the industry spent 4-point–

BUCHANAN: 4.8 million dollars on the ballot.

MOYERS: And how much did you spend in trying to pass it?

BUCHANAN: Oh, about 150,000.

MOYERS: I would say you were outspent.

BUCHANAN: About 50 to 1 or so, yeah.

NARRATION: For the companies, the dollars spent to defeat the initiative were insurance against the greater loss of being held accountable.

BUCHANAN: If they can’t be held liable, if the tools that citizens or workers can use to try to defend themselves are taken away, then you can protect the bottom line of a corporation.

MOYERS: It would cost them money if people knew.

BUCHANAN: It would absolutely cost them money.

NARRATION: No state right-to-know initiative has passed since 1986. And two years ago, industry persuaded Congress to roll back a major right-to know provision in the Clean Air Act.

TEST RESULTS

NARRATION: Today, an average of twenty new chemicals enter the marketplace every week. We don’t know much about them – and we don’t know what they might be doing to us.

Back at the Mt. Sinai School of Medicine, Dr. Michael McCally was ready to tell me if residues of the chemical revolution had been found in my blood.

MOYERS: So what’s the news?

DR. MICHAEL McCALLY, VICE-CHAIRMAN, PREVENTIVE MEDICINE, MT. SINAI SCHOOL OF MEDICINE: We tested for 150 different industrial chemicals, and you have 84 of those 150.

MOYERS: Wow. Eighty-four.

McCALLY: Eighty-four.

MOYERS: If you had tested me sixty years ago when I was six years old, would you have found those chemicals?

McCALLY: No. No. With one exception.

MOYERS: What’s that?

McCALLY: Lead.

MOYERS: Lead.

McCALLY: Lead. Lead’s been around — we’ve been — we’ve been poisoning ourselves with lead since, you know, practically the cave ages.

MOYERS: So 83 of these 84 chemicals you found in my blood are there because of the chemical revolution –

McCALLY: Yes.

MOYERS: — over the last sixty years.

McCALLY: That’s correct. That’s correct. And we didn’t know this until we looked, but suddenly we find out that the industry has put a bunch of chemicals in our body that, you know, are not good for us, and we didn’t have any say in that. That just happened.

MOYERS: What kind of chemicals?

McCALLY: In the PCB case, you have 31 different PCBs of this whole family of similar chemicals. They are all over the place. And it’s probably a function of where you lived. You lived in some locale where PCBs were in the environment, and you got them into you through the air you breathed. Some of them get down in groundwater. Some of them get coated on food. You didn’t get them sort of in one afternoon because you ate a poisoned apple.

MOYERS: And dioxins?

McCALLY: And dioxins, of all that we measured, you had 13, 13 different dioxins.

MOYERS: You tested for some pesticides.

McCALLY: Yes. The organophosphates — malathion is one we may have heard of because we’re spraying it here in New York because of mosquitoes.

MOYERS: I used to spray malathion on my house in Long — on my yard in Long Island.

McCALLY: We also measured organochlorine pesticides. The best known is DDT. DDT hasn’t been produced in this country for several decades.

MOYERS: Yes. So where would I have gotten that?

McCALLY: Did you ever, you know, watch them spray the trees when you were a little kid?

MOYERS: Young man.

McCALLY: A young man? Yes. Okay.

MOYERS: And I lived around places that had used it.

McCALLY: Well, that’s enough, because again, like PCBs, these are very persistent chemicals. They don’t — the body doesn’t metabolize them, doesn’t break them down into little pieces and get rid of them.

MOYERS: How do the results of my test compare with others around the country?

McCALLY: I wish we had more data. I wish I could give you a clear answer to that. The burdens that you carry are probably biologically less important than if you were, you know, a 21-year-old woman who was in her ninth week of pregnancy. And then the fact that you were circulating some DDT might really be important.

MOYERS: Have these chemicals been tested in terms of what happens when they are combined?

McCALLY: No. No. That is a complexity that we haven’t even looked at.

MOYERS: Have they been tested on vulnerable populations like children?

McCALLY: No. We are just beginning to do that science.

MOYERS: Is it fair to say from all of this that we are, as human beings, being unwittingly exposed to hundreds of toxic chemicals which have been tested enough just to know that they’re toxic, but not tested enough to know the risks?

McCALLY: That’s a fine summary of the current state of affairs. We know enough now to know that it doesn’t make a lot of sense to make chemicals that are carcinogenic and add them to our bodies and then argue about how much we are adding. It just isn’t a good idea. Particularly when there are perfectly acceptable alternatives, and if the industry chose, it could change our exposures dramatically by its own actions.

NARRATION: Three years ago – on the eve of Earth Day – the Chemical Manufacturers Association promised that its member companies would begin to voluntarily test one hundred chemicals a year at an estimated cost of 26 million dollars.

FRED WEBBER, PRESIDENT, CHEMICAL MANUFACTURERS ASSOCIATION: Our vision is that we will be highly valued by society for our leadership, for the benefits of our products and for the responsible and ethical way in which we conduct our business. It’s as simple as that.

NARRATION: Today, we are still waiting for the results of even one of those tests.

During those three years, the industry poured more than 33 million dollars into the election campaigns of friendly politicians.

NARRATION: As the secret documents reveal, the promise to test – voluntarily – was part of a strategy hatched almost a decade ago.

September 15, 1992:

“A general CMA policy on voluntary development of health, safety and environmental information will…potentially avert restrictive regulatory actions and legislative initiatives.”

MEYERHOFF: The idea of a chemical company voluntarily testing its product is not unlike efforts to voluntarily regulate their products. It is an attempt to pre-empt effective government. It is an attempt to try to stop the government from doing its job by doing half-baked measures and then claiming that we’re protecting the public.

DR. PHILIP LANDRIGAN, CHAIRMAN, PREVENTIVE MEDICINE, MT. SINAI SCHOOL OF MEDICINE: There are 80,000 different man-made chemicals that have been registered with the EPA for possible use in commerce. Of those 80,000, there are about 15,000 that are actually produced each year in major quantities, and of those 15,000, only about 43 percent have ever been properly tested to see whether or not they can cause injury to humans.

NARRATION: The industry’s own documents confirm just how little we know.

Meeting of the CMA Board of Directors. Pebble Beach. Report of Health Effects Committee.

“The chemical industry has contended that while a few substances pose a real risk to human health when sufficient exposure occurs, the vast majority of chemicals do not pose any substantial threat to health. However, the problem is, very little data exists to broadly respond to the public’s perception and the charges of our opponents.”

NARRATION: That is worth repeating. “The problem is, very little data exists.”

In other words, the industry itself acknowledged it could not prove the majority of chemicals safe.

LAKE CHARLES, LOUISIANA

NARRATION: Lake Charles, Louisiana. In the spring of 1989, the family of Dan Ross gathered to celebrate their daughter’s graduation from college.

ELAINE ROSS: He was always the kind of man that wore denim. Denim shirts, denim pants. In fact, he got downright indignant if we tried to make him dress up. We thought that was what was wrong with him. He’d complained about having a headache that day, and Robin told him – that’s our daughter. She said, Daddy, you’re not wearing that to my graduation. You’re wearing a suit. We assumed that the look on his face was that he was mad at all of us and was gonna let us remember it forever, you know. And we laughed at him and teased him about it. But afterward, the headache didn’t go away.

NARRATION: Several days later, a CAT scan revealed brain cancer. In the last words he was able to speak, Dan Ross told his wife, “Mama, they killed me.”

ROSS: You start watching him die one piece at a time, you know. It’s like, okay, he’s blind today, but he can still hear, he can still swallow if I put something in his mouth. But he lost the use of one of his arms, and then next day it would be the other arm, the next day it would be one leg. And then he couldn’t hear anymore. The hardest part was when he couldn’t speak anymore.

NARRATION: On October 9, 1990, twenty-three years to the day after he started working at Conoco, Dan Ross died. He was 46 years old.

ROSS: They hurt somebody that meant more to me than my whole life. I would have gladly taken his place to die. Gladly.

NARRATION: Half a century into the chemical revolution, there is a lot we don’t know about the tens of thousands of chemicals all around us.

What we do know is that breast cancer has risen steadily over the last four decades. Forty thousand women will die of it in this year alone.

We do know brain cancer among children is up by 26 per cent. We know testicular cancer among older teenage boys has almost doubled, that infertility among young adults is up, and so are learning disabilities in children.

We don’t know why.

But by the industry’s own admission, very little data exists to prove chemicals safe.

So, we are flying blind. Except the laboratory mice in this vast chemical experiment are the children.

They have no idea what’s happening to them. And neither do we.

PANEL DISCUSSION

MOYERS: Now we want to discuss some of the public policy issues raised by what we’ve seen.

With me are Terry Yosie, Vice-President of the American Chemistry Council; Ted Voorhees, partner in the law firm of Covington & Burling – he represents the Chemical Trade Association in the Ross case; Ken Cook, President of the Environmental Working group — as a matter of disclosure, the foundation I serve made a small grant to Mr. Cook’s organization a few years ago, but I didn’t meet him until three weeks ago — and Dr. Phil Landrigan, a pediatrician and chairman of preventative medicine at Mount Sinai School of Medicine.

Mr. Yosie, thank you very much for coming.

TERRY YOSIE: Thank you.

MOYERS: Given what we’ve just seen, how can the public rely on what the chemical industry says about the safety of synthetic chemicals?

YOSIE: Thank you, Mr. Moyers. If I were a member of the viewing audience tonight, I would be very troubled and anguished if I thought that the information presented during the proceeding 90 minutes represented a complete and accurate account of the story. It does not. For nearly two years, this program has been in preparation. At no time during that two year period have representatives of this program contacted our industry, asked us for information, or provided an opportunity for us to appear on the 90-minute segment.

We believe that it is a sad day in American journalism when two sides of the story can’t be told, when accuracy and balance are not featured in the broadcast. It’s our intention in the limited about of time that we have available this evening to correct some of the errors that we found in the broadcast, but also to present a more complete picture of who this industry does and what it represents and the benefit it delivers for the American people.

How can– turning to your question Mr. Moyers– how can the American people be reassured that the products developed are safe for the intended uses? We test our products and we report that information to the government. There are 9,000 chemical products on the marketplace today. They have been researched, they have been tested, and that information has been disclosed. We do not do this information alone. We work with some of the finest universities in the United States: people at Harvard, the University of California system, the University of Massachusetts– independent researchers with world-class reputations.

We have a major partnership with one of this nation’s leading environmental groups, Environmental Defense, and through that partnership we are disclosing information on those test results no matter what they show. So I believe this commitment to openness and transparency, to working together to identify information needs and to disclose this to the public is to pass the greater confidence in the products we make.

MOYERS: Mr. Cook, do you want to talk about that?

KEN COOK: Well, it’s interesting that you raised the question of testing. As I was struck by so many images in this program, one of the images was that of the x-rays of these vinyl workers who you had in your industry, medical doctors examining without telling them why they were examining them. Their fingers dissolving and this new program you’re describing, the symbol of it is two hands holding a globe. I don’t think I will ever be able to look at the logo for your program without thinking of those vinyl workers and their dissolving finger bones.

As for testing, one of the things that was striking about Bill’s results as I was thinking about it, was just how little is known about the products of your industry showing up in people. Do you, for all your testing you’re saying is being done, do you have any idea how many of the products of your industry, all your companies– it’s a good bit more than 9000– do you know how many show up in people? Have you even tested for that?

YOSIE: Let us respond to some of the issues you’re raising.

MOYERS: You don’t want to answer?

COOK: So you’re testing?

YOSIE: I want to respond to the issues that…

MOYERS: Before you do…

YOSIE: I think the viewers deserve our correction of some statements.

MOYERS: Well we’ll turn to it in just one minute, but how thoroughly are these chemicals tested before they come on to the market?

YOSIE: They are tested using the best scientific methods available, and they are tested not only for their potential hazard, but when we test a product, when we submit that information to the government, we are using standards set by our government, but also international standards. We are applying the best laboratory practices that have been defined by the scientific community.

We don’t do this work in isolation, and when we develop a product, we have margins of safety so that whatever potential effects there may be, we develop those products so that they ensure safety many times below where there could ever be an effect. Subsequent legislation has ratified that approach that we have taken for many years.

COOK: But this is legislation that you have opposed. I mean, your own documents show– whether it’s the clean air act, the clean water act, the safe drinking water act– straight on through, you can read the documents now for the first time that you have never made public before, and it’s quite clear that every time there’s an attempt to tighten regulation on your industry to protect citizens, communities from air pollution, water pollution, your own documents show how you have opposed that.

MOYERS: Let me bring Mr. Voorhees in on this.

TED VOORHEES: Thank you, and let me say that I have met Mrs. Ross, and I have a tremendous amount of sympathy for her situation having lost her husband to brain cancer. At a human level I have sympathy, but no amount of sympathy can justify putting on a program that presents an incomplete, slanted, and essentially misleading characterization of what happened with vinyl chloride.

And to take Ken’s example of the hands, as the first of a couple of examples let me give, the show tells the viewer that this hand problem appeared in the mid 1960’s, and that it was treated as confidential and secret by the industry. What the show doesn’t state is that as soon as that problem was found by B.F. Goodrich company, the doctor who found that problem in 1967, published his findings in the Journal of the American Medical Association, which is probably one of the most widely read professional articles read by doctors, and in that article on the hand problem, Dr. Creech included the very same x-ray images which you showed on your program as if they had been hidden and kept secret from people.

MOYERS: Did that document say that it was linked to the exposure of vinyl chloride?

VOORHEES: It absolutely did, that was the whole subject of the article.

MOYERS: Why didn’t the company tell Bernie Skaggs?

VOORHEES: Bernie Skaggs’ doctor knew about that because he read it in the Journal of the American Medical Association.

MOYERS: But why didn’t the company tell him?

VOORHEES: The company was telling his doctor — the person who would know and who would be able to react to something like that is a professional who would be able to see the relationship.

MOYERS: I believe the documents show that the company did not tell his doctor.

VOORHEES: Well, they published the study of the hand problem in the Journal of the American Medical Association in 1967.

MOYERS: So was the doctor expected to just come across that in random reading? Why didn’t the company tell Bernie Skaggs directly? He worked for the company, Mr. Voorhees. Why didn’t they tell him?

VOORHEES: The Journal of the American Medical Association, JAMA, is not random reading. It’s probably the most widely read professional journal…

MOYERS: Sir, you’re not answering the question. Why didn’t the company tell its employees?

VOORHEES: I don’t know that they didn’t tell Bernie Skaggs.

MOYERS: The documents suggest they didn’t.

VOORHEES: The B.F. Goodrich company had a doctor at the plant. He was the author of this article in JAMA and he would have, as workers came into see him, he would have explained to them what their problem was and I would expect that would happen.

MOYERS: Was Bernie Skaggs lying to me when he said the company didn’t tell him?

VOORHEES: I am certainly not going to accuse him of lying, but what I’m saying is that the doctor at his plant published his findings immediately in the Journal of the American Medical Association and my point is, the program has suggested to your viewer that this was an issue that was kept in secret. Far from keeping it in secret, it was published in the most widely read journal, and the x-rays that were supposedly kept secret were a part of that journal article.

YOSIE: 40 years ago is a very long time. 40 years ago there wasn’t an Environmental Protection Agency. 40 years ago there wasn’t a clean air act. I don’t believe the viewers of this program are interested so much in what happened 40 years ago. I believe they are vitally interested in their own personal health and wellbeing today. They want to know that if the products that we develop and market are safe for their intended uses. They want to know if the products that they’re using in their homes are going to benefit them. and I believe the answer is…

MOYERS: Those are the questions that I sent you a month ago and said, “let’s talk about these policy issues.”

YOSIE: Those are the questions I absolutely want to address.

MOYERS: What about that?

LANDRIGAN: I think that’s really the central question, Bill, Terry.

Today there are many thousands of chemicals on the market. There are a number of chemicals that are registered with the EPA for commercial use is not 9,000; it’s over 80,000. There’s about 3,800 which are called “high production volume chemicals.” A couple of years ago, the Environmental Defense Fund, the same organization with which the chemical manufacturers are partnered, did an analysis of those high production volume chemicals to see what fraction has been tested. Now, to be sure, when the EDF were seeking information on how many were tested, they had to go to the open literature. They obviously didn’t have access to company documents.

In the open literature they found that only 43%, less than half of these chemicals had ever been tested for toxicity to humans. When they looked more deeply, when they asked more sophisticated questions, for example, what fraction of these chemicals has been tested for their effects on children’s health?

What fraction have been tested for the effects on the developing brain, the developing immune system, the developing reproductive organs, the endocrine system of babies? You’re down very close to single digits. Around 8% or 10% of chemicals on the market have ever been tested for these effects.

So I think that it has to be said here today that the toxic substances control act is a well-intentioned piece of legislation, but in its execution, it has mostly been a failure. It is just not doing an adequate job of protecting the American public.

YOSIE: There are not 75,000 products on the market today. There are 9,000.

LANDRIGAN: No, there are not 75,000 chemicals on the market, but there are that many chemicals registered with the EPA for commercial use. And of the 38,000 high production volume chemicals, fewer than half, less than half have been tested for their toxicity.

YOSIE: Mr. Moyers, you’ve had your own body tested and this was shown to the viewers. What was not shown to the viewers, that the products that we make probably saved your life. From what I read in the newspapers, you had a very serious heart operation at about 1994. You had a blockage in an artery leading to your heart. When your doctors discovered this problem and advised you and provided the professional counseling and expertise that made it possible for you to recover to the robust man that you are today, they were using our products. They diagnosed…

MOYERS: Are you sorry about that now? I mean, don’t you wish…?

(laughs)

YOSIE: I am delighted that you’re here. You look very healthy. They diagnosed your problem using technologies that we helped develop. When they operated on you, they used surgical instruments that we helped develop. To ensure that you did not contract a subsequent infection post operation, you were given medicines.

In addition, you were probably given medication afterwards to ensure your continuing return to health. I believe that your state of well-being today was directly dependent on the benefits that our industry provided to you and to every American.

MOYERS: I don’t challenge that, and I didn’t challenge that in our reporting. I do not challenge that.

YOSIE: You do not challenge that but you didn’t report it either.

MOYERS: You just said it. I told you a month ago we wanted you to come on and say what you wanted to say and you just did. But here is the issue that I think that Dr. Landrigan is raising, that my own body burden test is raising, Dr. McCally said to me, I said to him, “Should I be worried?”

He said, “At your age, 66, I don’t think so. But if you were a 21-year-old pregnant woman, it might be a different story.” And he said, “We do not know what this combination of chemicals, what effect it’s having on our health.” This is a new phenomenon. He said, “Your grandfather would not have had this.” This is a new phenomenon. And what I think I was asking in the broadcast, and what I hear Dr. Landrigan asking is, how do we find out what this combination of chemicals is doing in our body? Particularly to children. Are children the most vulnerable?

LANDRIGAN: Children…

YOSIE: Dr. McCally erred in what he told you. He said that 60 years ago the only compound that you would have in your body was lead. 60 years ago, American cities looked like an industrial wasteland. They looked like what Russia or China or Eastern Europe looks like today. 60 years ago, there were no pollution controls on industry or any other major products. 60 years ago, the area that I come from, Western Pennsylvania, people had to wear two shirts to go to work. One to wear outside, one to wear inside.

MOYERS: “Better living through chemistry.” I acknowledge that. We all acknowledge that.

COOK: I think as an environmentalist, I’ll defend your industry. But the thing that surprises me…

YOSIE: Thank you, I’ll take that compliment.

COOK: Let’s go back to the vinyl story. Again, for the first time now it are read tens of thousands of pages of documents that you never made public. If they so strongly defend your position, you never made them public. Now that they are public, one of the striking things about me is how you’re hiding your light under a bushel basket when it comes to inventiveness. Those documents clearly show again and again and again that your industry worried that if vinyl chloride standards were tightened, it would be the end of the industry. Companies would go bankrupt. They say this. They could not continue to operate.

None of them did go bankrupt when it went from 500 parts per million down to one. They all did fine. In fact, they made money. And I think what I respond to you when you make that point is, yes, there are many ways which chemicals make a difference in our lives. But there are also ways in which we can find safer alternatives. And in most cases, the fastest was to those alternatives is to put pressure on the industry beyond what you feel now to move you in that direction. You don’t go rapidly on your own, and that’s been shown time and again.

YOSIE: Three months ago…

VOORHEES: Can I respond to that?

MOYERS: Sure.

VOORHEES: Since he referred to the vinyl chloride story in the litigation, and I would say it would be fair for the viewer to think that the program was about concealment and secrecy. And what the viewer was not shown was that in each of the episodes that you portrayed in the program where you would show a document that says confidential or secret, what you failed to do was to show that shortly after that document was prepared, a study was published. For example, I’ll just give you few examples.

The Viola study in 1970, the first Italian researcher who found some signs of carcinogenity in laboratory animal experiments, and you showed a document that said this could potential be problematic and should be confidential. What you didn’t say is that Viola’s study on that subject was published in 1970, the next year after the confidential document. So the point is, that when we research was being done on these very subjects, research on… initially on laboratory animals, that the research was published and there was not one reference in that whole program to the published articles that followed each of these incidents that are referred to in the program. To me that’s a very misleading presentation.

YOSIE: Three months ago…

MOYERS: Let me just answer Mr. Voorhees. For one thing, it was because that Dr. Viola was going to publish his findings that the chemical association meeting took place to discuss what to do about it. And I was really astonished, Mr. Voorhees, in the materials you sent us before the broadcast which we examined thoroughly. You were very selective in what you gave us. You did not include in there the documents that show how the industry did not want to talk about it, Dr. Maltoni’s research, and made plans not to disclose that to NIOSH, even though NIOSH, the government agency, had asked for those… that information to be volunteered, and your industry did not do that. The documents make it clear that they did not talk about Dr. Maltoni’s argument. But that’s the past.

I would love to come back to this issue. Look, the people out there watching this thing, you know, we know our lives are better because of chemistry. But we also know that pediatricians and physicians like Dr. Landrigan are saying, we don’t know what this new combination is doing to us. So what is the question? What are the issues?

LANDRIGAN: I that’s the… excuse me, Terry. I think the issue, Bill, is that this is not something of the past. Many of the chemicals, for example, that were tested last week in that CDC report that was released to the nation on the 21st of March, are chemicals that reside…

MOYERS: That was the center for disease control, right?

LANDRIGAN: The center for disease control in Atlanta, that’s right.

Many of the chemicals which they tested, for example the pesticide products, are relatively short-lived chemicals. Those are chemicals, when they get into the body of a child, only stay there for a matter of weeks or at most a month or two, and then they’re gone.

So the chemicals that were measured by CDC in Americans are chemicals where the exposures are taking place today. And in response to your question, it’s absolutely true that children are the most vulnerable among us to those chemicals, and kids are vulnerable for two reasons. First of all, they take more chemicals into their body. They breathe more air. They drink more water. They eat more food pound for pound. So they take more chemicals into their body that are present in the air, on their food, in their water. And of course, kids play on the floor. They drop a lollipop on the rug. If there’s pesticide on that rug, they pick up the lollipop, they put the lollipop into their mouths and the pesticide gets in.

Then on top of that, besides being more heavily exposed, kids are biologically more vulnerable. I mean, anybody who has seen a little child– I’ve got a grandson who is just a bit over a year old– anybody who’s got a little child knows how precious and how vulnerable they are. Their brains are growing and developing. If a chemical like lead, like a pesticide, like PCB’s, like organic mercury gets into the brain of a baby during those early months of development, the consequences can be life-long.

YOSIE: Three months ago, the Department of Health and Human Services… Please, Bill, please, be fair.

LANDRIGAN: What really troubles me here is we don’t know… we simply do not know the long-term consequences of exposures in early life. As a pediatrician, as a parent, as a grandparent…

MOYERS: But what’s the public’s policy you’d like to see come out of this, and I would like to hear Terry Yosie say why the industry wouldn’t support that public policy?

LANDRIGAN: I think we need four things, four things only.

Number one, we need thorough independent testing of chemicals, including testing that looks at pediatric effects.

YOSIE: That’s underway.

LANDRIGAN: Number two, and it needs to be independent of the industry.

YOSIE: Colleagues… Mr. Cook’s colleagues in the environmental community are working directly with us. We just participated in a process with environmental groups and others to test compounds for their impact on children.

LANDRIGAN: Well, that’s… it just leaves…

YOSIE: There is an agreement in place to do just that.

LANDRIGAN: I’m glad. I noticed in the show itself that of promises were made, the results haven’t yet appeared. But the second thing that needs to be done is that we need to continue the nationwide testing of chemicals in the bloodstream of Americans that CDC has started. CDC, I understand…

YOSIE: We support that objective.

LANDRIGAN: And that’s good, that’s good.

YOSIE: We think the CDC report, which by the way, used technology that we helped develop. Those analytical methods that were used in your body and used on the recent CDC report are an outgrowth of our commitment to science to improve better analytical detection techniques. And so we support CDC’s continued efforts to learn more about the health status of the American people.

LANDRIGAN: Excellent. Number three, I think we need to work together. And this might actually be an area where the chemical industry and the environmental community and the academic community can work together. This is to support a national right-to-know initiative. For this nation, we ought to have the national equivalent of the Proposition 65 law that they have in California. Everybody in this country ought to be able to get good, accurate, unbiased information on every product they buy in the stores.

And fourthly, on the final need that I think we have to have in this country, is we need to have a more efficient, more effective process than we do today to get toxic chemicals off the market and to replace them with safer chemicals.

That’s what America’s kids need.

YOSIE: Two comments: One is, Mr. Landrigan, Dr. Landrigan, does raise the issue of what is the health status of children. Three months ago the Department of Health and Human Services, which includes the Center for Disease Control, issued a report. Let me read you a sentence in the very first paragraph of that report: “We’ve made life better for our children.” The Department of Health and Human Services, like the CDC, looks at the broad spectrum of issues that could potentially effect children’s health. And there is some very good news to report.

There are record child immunization rates. There’s a decline in youth drug use and smoking. There is a decline in teenaged mothers giving birth. There’s a decline in infant mortality. But even beyond children, cancer rates are down.

LANDRIGAN: Cancer death rates are down, cancer incidence rates are up, Terry.

YOSIE: But that’s an artifact of better reporting.

LANDRIGAN: No, it’s not.

YOSIE: Life expectancy rates in this country. We are living better and healthier, not only but because of the products we make but because people are being more sensible in terms of how they live and how they behave.

LANDRIGAN: The facts don’t support… some of what you’re saying is true, but it’s very selective.

YOSIE: I’m quoting to the CDC, Phil.

LANDRIGAN: You’re quoting part of a 30-page CDC report. Cancer death rates are down, but the number of new cases of cancer in children is up. I don’t know why they’re up, but since 1972, which is when we began to keep national records in this country, we have experienced a 42%… 41% increase in the incidents of brain cancer, the number of cases of brain cancer per thousand children. That is not a reporting artifact. We weren’t missing 40% of brain cancers 30 years ago when I started my pediatric career. We just weren’t. In young men 15-30, there has been a 68% increase in the incidents of testicular cancer.

Now, you’re quite right, American children today live longer. They live longer because we have conquered most of the infectious diseases in this country. But the rates of asthma have doubled.

YOSIE: What are the principal health risks that children today. To some extent they do come from environmental factors, but domestic violence…

LANDRIGAN: Oh, the principal cause of hospitalization of American children is…

YOSIE: …lack of access to healthcare, a number of other factors…

MOYERS: Are those not involuntary, but chemicals in our food and chemicals in our toys are not something that people ask for, they just happen, as you said I think, or McCally said in the interview, suddenly we’ve got all these chemicals in our body.

VOORHEES: These are products that have been very carefully scrutinized by the scientific community, by government agencies, and as a result…

YOSIE: Let me make one point if I may, one point, if I may.

LANDRIGAN: Why is there…

YOSIE: Phil made the point that we need to take the compounds off the market. That has been tried in many countries and disaster has resulted. The nation of Peru stopped chlorinating its water supply. Chlorine is one of our major products. What happened after that event? A cholera epidemic broke out and over 10,000 people in Peru and Latin America lost their life.

LANDRIGAN: And in this country we took tetraethyl lead out of gasoline American’s blood levels have declined 99%.

YOSIE: And proponents of removing chlorine are saying that ought to be done in this country. There are ten to 25 million people perishing because of a lack of a drinking water supply.

LANDRIGAN: In this country, over the vigorous objection of the Ethyl Corporation, we removed tetraethyl lead from gasoline. The average blood lead level in American children has declined by 90%, and the average IQ of American babies has increased by three points.

YOSIE: You and I were on the same side of that debate when I served as the official of the environmental protection agency.

LANDRIGAN: When you were at EPA.

YOSIE: When I was at EPA.

COOK: Yeah, but the companies you represent…

YOSIE: You and I were on the same side of that debate, and we still are.

MOYERS: What was that, Ken?

COOK: The companies you represent weren’t, and that’s the point. If you look at these documents which we now have– and let me just put in a plug, ewg.org, you can read 40,000 pages of them going back to 1945 now.

YOSIE: And we will correct those in abouttradesecrets.org.

MOYERS: What’s your web site?

YOSIE: Everybody’s got a web site. Ours is abouttradesecrets– that’s one word– abouttradesecrets.org.

MOYERS: And yours is…

LANDRIGAN: Childenvironment.org.

MOYERS: Covington & Burling?

VOORHEES: Well, we have a law firm web site, but I’m not sure people…

MOYERS: (laughs) Ours is pbs.org.

It’s only fair that you get a chance to answer this question, because as I’ve said to you, investigative journalism is not a collaboration between the journalist and the subject, and I did lay out there, Sherry Jones and I laid out, the record of the industry and opposing right to no initiative.

Why has, in every case that I can find, why has your industry opposed citizens effort to use the right to know initiative and every right to know efforts?

YOSIE: I think you have your facts wrong.

MOYERS: Tennessee, Hawaii, California, Ohio, Illinois, Massachusetts.

YOSIE: We supported the amendment, the Superfund statute, in 1986, creating the Toxic Release Inventory. We supported in 1990, the amendment of the Clean Air Act so that information would be made available to communities about chemicals that were being used in their neighborhoods. We supported, with Environmental Defense, the complete and total disclosure of any testing results going on with our current agreement with them. We had been a strong supporter of right to know, and here’s why.

We have had over the last dozen years, a program that has instituted over 300 community advisory panels wherever this industry is located in this country. We have learned a great deal from listening to communities where we play a major part. One of the greatest testimonials that you hear about this industry is from people who live near it, because they have seen the very direct health and environmental progress and the emissions reductions that result from our industry. When they have a question about plant safety or noise levels or environmental emissions, they have direct access to the plant manager. They have access to go inside the plant gates and see what’s going on.

COOK: I’ve talked to an awful lot of people…

YOSIE: That is why we have 60% decline in emissions over the last decade, the best of any American industry.

COOK: Well, you almost make it sound as if you volunteered to do that, and you did not.

YOSIE: We supported those measures.

COOK: Listen, what you selectively may have supported, everyone can now read what decisions you made and how you made them to take a stand on clean air and clean water and drinking water, and it’s… I respectfully disagree, it is not as you describe it. No, what these communities are often left with is just asking a plant manager, “Can you tell us?” No authority, no power under law to actually compel that information to come forward. And to get back to the testing point, I just want to, because there would be some confusion…

MOYERS: We have about 45 seconds.

COOK: There will be some confusion out there. If these chemicals are so well tested, then how come you had to come forward with a program just two years ago to voluntarily test the most widely used ones if they were tested? Some of them have been used for decades.

YOSIE: Because we’re a responsible industry. Because we’re always seeking answers to question. We’re a science-based…

COOK: About 40 years late.

YOSIE: We’re a science-based industry, and by nature we are asking these questions. There are a million men and women who work in this industry who apply chemistry to make a variety of products and services. I’m very proud to represent them here tonight, and as we close this broadcast, I want to thank them for the contribution they’ve made to society. They’ve made America a better, healthier and safer society. And to the viewing audience, I want to say that we are committed to continuing to improve our environmental health and safety performance. I think you all know that what happened 40 years ago is no reflection of the kind of industry that we represent today.

MOYERS: We’re going to let you have the last word.

YOSIE: Thank you.

MOYERS: Thank you very much, Terry Yosie, thank you, Mr. Voorhees, thank you Dr. Landrigan, thank you Ken Cook.

I’m Bill Moyers. Thanks for watching. Good night.

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A dozen dirty documents
Twelve documents that stand out from the Center’s new oil and chemical industry archive

By Kristen Lombardi for The Center for Public Integrity

The Center for Public Integrity, along with researchers from Columbia University and the City University of New York, on Thursday posted some 20,000 pages of internal oil and chemical industry documents on the carcinogen benzene.

This archive, which will grow substantially in 2015 and beyond, offers users a chance to see what corporate officials were saying behind the scenes about poisons in the workplace and the environment.

Here are 12 examples of what the petrochemical industry knew about benzene; the impetus behind industry-sponsored science; and the corporate spin that often occurs when damning evidence against a chemical threatens companies’ bottom lines.

What the industry knew:

The industry knew the dangers of benzene exposure at both high and low concentrations, as illustrated by this 1943 report for Shell Development Company by a University of California researcher.

“Inasmuch as the body develops no tolerance to benzene, and as there is a wide variation in individual susceptibility, it is generally considered that the only absolutely safe concentration for benzene is zero.” That was a conclusion reached in a 1948 toxicological review of benzene prepared for the American Petroleum Institute, a trade association.

Benzene’s dangers known in 1943 (pg 2)
This 1943 report, prepared for Shell, is among the earliest to suggest that any prolonged exposure to benzene may be harmful.

No safe exposure level (pg 4) This 1948 review, prepared for the oil industry’s main trade group, the American Petroleum Institute, continues to torment the industry in litigation alleging benzene can cause various types of leukemia and other diseases of the blood-forming organs. In essence, it says the chemical is so potent that there is no safe exposure level.

A 1950 consultant’s memo to Shell lists benzene as having “established carcinogenic qualities.”

Benzene recognized as a well-known carcinogen (pg 1)

This 1950 memorandum from a consultant for Shell Development Company notes that benzol — an obsolete name for benzene — is a well-known carcinogen. As the author states, the memo was prompted by “an increased concern about the incidence of cancer” among Shell workers.

Motivations for industry involvement in research:

In 1995, a benzene study by the National Cancer Institute caught the attention of Exxon scientists, who closely monitored it.

Industry interest in cancer research (pg 1)
An Exxon scientist, B.F. Friedlander, explains that he and industry colleagues are “monitoring” a series of studies by the National Cancer Institute because of their focus on “health risks at low benzene exposures.” The memo shows the petrochemical industry’s early interest in the work of the NCI, which has examined the effects on Chinese workers exposed to benzene at levels below the legal occupational limit in the United States.

While attempting to gain support for a proposed study of benzene toxicity in Shanghai, China, the American Petroleum Institute cites “a tremendous economic benefit” to companies, which could gain data to combat “onerous regulations.” A project overview explains that publications linking benzene to childhood leukemia may cause concerns about the chemical to “resurface.”

‘Tremendous economic benefit’ from the industry study (pg 1)
The six-page overview touts the proposed Shanghai research as a way for the petrochemical industry to gain an “accurate understanding” of benzene’s health effects, which, in turn, would bring “tremendous economic benefit.”

A 2000 summary of the API’s research strategy, drafted by the group’s Benzene Task Force, explains that the research program “is designed to protect member company interests.” The anticipated results could “significantly ameliorate further regulatory initiatives” to curb benzene emissions.

Protecting industry interests (pg 2)

The summary describes the intent of the API’s research program as being “designed to protect member company interests.”

An email exchange explains how “HSE [health, safety and environment] issues surrounding benzene as well as the litigation claims” against the industry compel companies to participate in the industry-sponsored study.

Motivations for research (pg 2)
An email from one Shell executive argues that the “litigation claims we continue to see” are prime reasons for the company to spend millions of dollars on the proposed Shanghai research.

A PowerPoint presentation from 2001 lists “significant issues of concern” to encourage financial support for the API’s research on benzene-exposed workers in China. Among them is “litigation alleging induction of various forms of leukemias and other hematopoietic diseases.” The study, according to the presentation, could provide “strong scientific support for the lack of a risk of leukemia or other hematological diseases at current ambient benzene concentrations to the general population.”

Significant issues of concern (pg 3)
This PowerPoint slide suggests “significant issues of concern” that the proposed Shanghai research might help combat, which would save the petrochemical industry “millions of dollars in expenses.” The issues include more stringent regulations and litigation from benzene exposure.

“Litigation support” and “risk communication” are listed as goals in this 2007 memorandum describing an API risk management program. Further objectives are to establish current regulations as “protective” and avoid additional action.

Oil lobby’s risk management program (pg 1)
The memorandum details the oil lobby’s benzene “risk management” program, intended to “develop scientific data” for it and its member companies to use for “science advocacy” and “litigation support.”

Corporate spin

An undated litigation defense guide written by a senior Shell attorney acknowledges the 1948 report on leukemia and offers a “comprehensive strategy” on how to respond to litigation, including releasing benzene-related documents only on court order.

Acknowledgement of the science showing no safe levels of benzene (pg 4)

Here the author, Richard O. Faulk of Shell Oil’s legal department, references a 1948 Toxicological Review prepared for the American Petroleum Institute. The review found that “the only absolutely safe concentration for benzene is zero.”

After a draft of an API recruitment brief reminds potential study sponsors of “personal injury claims,” an email exchange among members of the Benzene Health Research Consortium urges deletion of “the reference to legal liabilities.”

Don’t mention the legal liabilities (pg 3)

This email from a Shell executive responds to an attached draft of a 2002 recruitment brief that reminds prospective donors about benzene liability costs. In the email, the executive urges colleagues to delete “the reference to legal liabilities” and emphasizes that “the only reason we are doing this is in support of protecting workers.”

A 2001 email from the consortium’s communications committee explains that the perception of the study “needs to be that this is not being done to protect against litigation”

Controlling the message on benzene (pg 1)

The email shows the companies behind the Benzene Health Research Consortium working hard to control their message. It lays out the “scope of public affairs” for the consortium’s communications committee, which includes countering any “perception” that the Shanghai study was “done to protect against litigation.”

Click on the link below to access original article and archival documents.

http://www.publicintegrity.org/2014/12/05/16361/dozen-dirty-documents

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Internal documents reveal industry ‘pattern of behavior’ on toxic chemicals by David Heath for The Center for Public Integrity

Sixty-six years ago, a professor at the Harvard School of Public Health wrote a report linking leukemia to benzene, a common solvent and an ingredient in gasoline. “It is generally considered,” he wrote, “that the only absolutely safe concentration for benzene is zero.”

The report is remarkable not only because of its age and candor, but also because it was prepared for and published by the oil industry’s main lobby group, the American Petroleum Institute.

This document and others like it bedevil oil and chemical industry executives and their lawyers, who to this day maintain that benzene causes only rare types of cancer and only at high doses.

Decades after its release, a lawyer for Shell Oil Company flagged the 1948 report as being potentially damaging in lawsuits and gave out instructions to “avoid unnecessary disclosure of sensitive documents or information” and “disclose sensitive benzene documents only on court order.”

Plaintiff’s lawyers like Herschel Hobson, of Beaumont, Texas, wield such documents in worker exposure cases to demonstrate early industry knowledge of benzene’s carcinogenic properties.

“It shows a pattern of behavior,” Hobson said. “It shows how industry didn’t want to share bad news with their employees. None of this information was made available to the average worker … Most of this stuff kind of gets lost in the weeds.”

No more. Today, the Center for Public Integrity; Columbia University’s Mailman School of Public Health and its Center for the History and Ethics of Public Health; and The Graduate Center at the City University of New York are making public some 20,000 pages of benzene documents — the inaugural collection in Exposed, a searchable online archive of previously secret oil and chemical industry memoranda, emails, letters, PowerPoints and meeting minutes that will grow over time.

The aim is to make such materials — most of which were produced during discovery in toxic tort litigation and have been locked away in file cabinets and hard drives — accessible to workers, journalists, academic researchers and others.

Some are decades old, composed on manual typewriters; others are contemporary. Combined with journalism from the Center — such as today’s story on a $36 million benzene research program undertaken by the petrochemical industry — and articles and papers from Columbia and CUNY faculty and students, the archives will shed light on toxic substances that continue to threaten public health.

Exposed: Decades of denial on poisons

The benzene documents are just the start. In coming months, we’ll be posting hundreds of thousands of pages of discovery material from lawsuits involving lead, asbestos, silica, hexavalent chromium and PCBs, among other dangerous substances. And we’ll be on the lookout for other documents.

The inspiration for the project came when we realized that in CPI’s reporting on environmental and workplace issues, we routinely obtained reams of court documents. Often, these documents hold secrets found nowhere else.

Last year we reached out to William Baggett Jr., a lawyer in Lake Charles, Louisiana, who had acquired more than 400,000 pages of documents from a decade-long case against manufacturers of vinyl chloride, a cancer-causing chemical used in plastics. Baggett agreed to give us all of them.

At the same time, public health historians Merlin Chowkwanyun, David Rosner and Gerald Markowitz were collecting court documents to create a public database and had approached Baggett. We decided to collaborate. Chowkwanyun is currently a Robert Wood Johnson Foundation Health & Society Scholar at the University of Wisconsin-Madison, and will be an assistant professor of sociomedical sciences at Columbia next year. Rosner is Ronald Lauterstein Professor of Sociomedical Sciences and History at Columbia. Markowitz is a professor of history at the City University of New York. Both Rosner and Markowitz have served as expert witnesses in a number of major cases related to these documents and have written Deceit and Denial: The Deadly Politics of Industrial Pollution and other books and articles based on them.

This is not the first database of its ilk. The University of California, San Francisco, maintains a massive collection of documents from tobacco-related lawsuits called the Legacy Tobacco Documents Library, which exceeds 80 million pages.

How to search the documents

Our database allows you to search for a word, combination of words or an exact phrase in any of the documents. You can also:

Do a search that excludes a word by putting a ‘-‘ sign in front of the word.
Do a fuzzy search that includes variations of a word by putting a tilde ‘~’ at the end of a word with the numbers of characters that don’t have to match exactly. For example, ‘planit~2’ will match ‘planet.’
Do a search that optionally contains a word by putting a ‘|’ between the words.
Do a search with a phrase by putting double quotes around the phrase.
Each document will include the court case from which it came, including the case title, case number, court as well as date filed and date terminated. The original complaint for each lawsuit is also part of the database.

Soon, we will make available a robust set of text-mining tools that will allow researchers to construct chronologies of documents; generate lists of common words, phrases and names; and sort documents in a number of ways. Qualified researchers will also have access to an even larger set of documents that will eventually contain millions of pages.

Robert Proctor, a professor of the history of science at Stanford, has used the UCSF tobacco archive extensively to do research for several books. He called it “an unparalleled treasure” that gives researchers the ability “to look through the keyhole of the mansion of this hidden world and see [corporate officials’] private thoughts, their intent, their ruminations, their jokes, their plans, how they treat their workers, how they treat the public…”

Proctor said he sees value in a similar archive on toxic chemicals. “The internal records of the chemical industry are known only to a tiny group of lawyers and journalists,” he said. “This is going to create a new kind of democracy of knowledge. It also will set the stage for whistleblowers to come forward with documents.”

That’s our hope. The search interface includes options to send us documents or contact us. The ultimate goal, to borrow Proctor’s phrasing, will be to give users “a strong magnet to pull rhetorical needles out of archival haystacks.”

Click on the link below to access the original article at The Center for Public Integrity

http://www.publicintegrity.org/2014/12/04/16330/internal-documents-reveal-industry-pattern-behavior-toxic-chemicals

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Russia Blamed, US Taxpayers on the Hook, as Fracking Boom Collapses

By Ben Ptashnik, Truthout

As Congress removes restrictions on taxpayers bailing out the too-big-to-fail banks, the right is blaming environmentalists and Russia for the demise of the fracking boom. In reality, the banks’ junk bonds and derivatives have flooded Wall Street, and now the fracking bubble threatens another financial crisis.

Collapsing crude oil prices due to oversupply are reaching tsunami proportions, threatening Wall Street banks, investors and a dozen countries, foremost Russia, Iran and Venezuela, where revenue losses have caused severe financial degradation, and economies are about to implode. While Americans are today enjoying $2 per gallon gasoline, Wall Street’s analysts predict that an imminent energy market collapse will bring financial institutions to their knees once again, and taxpayers are being set up for another mandatory bailout.

At the heart of these tectonic shifts in the entire energy sector is the recent expansion of the hydraulic fracturing (fracking) industry, a boom cycle that began in earnest when Congress and the Bush administration passed the Energy Policy Act of 2005, which exempted the new horizontal drilling technology from the Clean Water Act, the Safe Drinking Water Act and the National Environmental Policy Act. By tapping considerable quantities of new oil and gas resources from shale deposits, the fracking boom promised US energy independence, upending the world’s prevailing paradigms around renewable energy and peak oil expectations. Environmentalists fought against the huge Keystone pipeline infrastructure that would deliver the fossil fuels to foreign markets, fearing that exploiting these resources would undermine the struggle for the curbing of carbon emissions.

Fracking also threatened the dominance of Russia and Saudi Arabia as the fossil fuel suppliers of Europe when it became evident that the United States would soon become a net exporter. In the United States, fracking was hyped on Wall Street as a get-rich-quick opportunity, attracting massive capital input, and creating an investment bubble. Bloomberg reported this year that the number of bonds issued by oil and gas companies has grown by a factor of nine since 2004.

“There’s a lot of Kool-Aid that’s being drunk now by investors,” Tim Gramatovich, chief investment officer and founder of Peritus Asset Management LLC, told Bloomberg in an April 2014 article. “People lose their discipline. They stop doing the math. They stop doing the accounting,” he continued. “They’re just dreaming the dream, and that’s what’s happening with the shale boom.”

When gas fracking first popped onto the scene, grandiose claims were made that the United States had 100 years of gas supply in shale, or 2,560 trillion cubic feet. And Wall Street rode that initial estimate. The only downside (beside the environmental disaster left by this toxic industry) was that, like the housing bubble which depended on ever-growing home values to maintain profitability, shale gas wells had to deliver consistent or growing production and profitability to pay back heavy debt interest loans on well driller companies: $3 to $9 million per well. Fracking wells require not just drilling, but also huge injections of energy, water, sand and chemicals to fracture the rocks that hold the oil and gas deposits.

But in fact, no statistical evidence confirmed the hyped claims of a 100-year shale gas supply. In 2011, a study downsized this estimate from 2,560 trillion cubic feet to 750 trillion cubic feet, and by 2013, the US Geological Survey refined that down to 481 trillion cubic feet – less than a 19-year supply based on 2013 rates of production. Nevertheless, huge amounts of capital poured into increasingly marginal operations, and the fracking market was flooded with junk bonds and derivatives as investors piled in.

Meanwhile oil fracking, which is separate from gas fracking, also needed huge injections of capital, but more importantly, oil frackers needed oil prices to stay at $85 a barrel or higher on average to break even. Many of the shale oil wells that have sucked up a huge amount of investment have also turned out to have short lives and their operators required continued infusions of capital to drill new wells to keep afloat, even as prices tumbled due to the glut they themselves created. The Bakken, one of the largest oil fracking plays, is a typical example. It grew exponentially after environmental protections were removed. But since 2008, Bakken has required increasingly larger numbers of wells just to maintain level production and service debt. The industry, already in trouble in 2013, has now endured plunging revenues through a year of oil selling at $60 to $70 per barrel, on average, instead of $90 to $100.

Everyone had expected that in 2014 the Saudis would move to limit supply and maintain stable oil prices by cutting back production, as OPEC has done for decades. But an unexpected shockwave hit the industry in November 2014: The Saudis laid down the gauntlet and announced their intention to continue full production and let oil prices drop.

For the Saudis, this serves two purposes: First, it undermines the expansion of US shale oil by forcing prices down so low that many of the wells have to be shut down or lose money. Second, it punishes their enemy, Iran, whose oil export-based economy has been savaged by the lower prices. The Saudis are sitting pat, with a trillion-dollar war chest savings account accumulated over a decade of $100 per barrel oil. Oil Minister Ali al-Naimi has publicly admitted that the Saudis will wait as long as needed to retain market share, even if prices plunge further.

Falling oil prices will place a huge stress on the world’s junk bond market as energy companies now account for 15 percent of the outstanding issuance in the non-investment grade bond market. The plunge in the prices of crude could trigger a “volatility shock large enough to trigger the next wave of defaults,” according to Deutsche Bank.

This explains why the Obama administration – with complicity of both congressional Democrats and Republicans – managed in the wee hours of the morning to slip a loophole into the supposedly “must-pass” cliff-hanger omnibus budget bill. This toxic Trojan horse, passed in December 2014, now includes a minor footnote provision that might cause taxpayers to pick up the tab on more than a trillion dollars (yes, trillion) if the energy market bubble implodes, which it must if oil stays at half the price it fetched just six months ago.

After last minute, heavy lobbying on the budget bill by Jamie Dimon of JPMorgan Chase and an army of 3,000 Wall Street lobbyists, it appears that once again sufficient insecurity and fear had been spread among the political class regarding destabilization of the financial markets (or withdrawal of campaign financing). They allowed a last minute amendment that killed Dodd-Frank protections, and allowed US taxpayers to be shaken down to cover Wall Street’s shale gambling debacle.

The heavy-handed move by the financial industry has outraged progressives and libertarians alike. It seems that these Wall Street criminals, like junkies attached to their drugs of choice, just could not resist the high of easy cash from Ponzi scheme market bubbles, and so they have stuck it to the US public once again: Preposterously huge bonuses, Porsches, pricey call girls, and million-dollar Manhattan condos were at stake. So hey, why should they kick the habit? After all, not a single one of those con artists went to jail last time.

Wall Street is now flooded with fracking industry derivatives contracts that protect the profits of oil producers from dramatic swings in the marketplace. Derivatives are essentially insurance policies taken out by the oil industry to guard against fluctuations in the cost of fossil fuel supplies. Dramatic swings rarely happen, but when they do they can be absolutely crippling.

Derivatives taken out to ensure prices don’t go down are now creating billions in losses for those who sold such bets on the market; someone is going to have to absorb massive losses created by the sudden drop in oil on the other end of those insurance contracts. In many cases, it is the big Wall Street banks, and if the price of oil does not rebound substantially they could be facing colossal losses.

The big Wall Street banks did not expect plunging home prices to implode the mortgage-backed securities market in 2008, but their current models also did not have $60 oil prices included in projections. The huge losses may send a shock wave into the entire financial industry. It has been estimated that the six largest “too-big-to-fail” banks control $3.9 trillion in commodity derivatives contracts, those same gambling instruments that brought us the 2008 housing collapse. And a very large chunk of that amount is made up of oil derivatives. Combined with the huge flood of shale junk bonds on the market, the derivatives could initiate a bubble burst that could turn into a financial market implosion.

Meanwhile, the global climate change issue and energy market turbulence have morphed into geopolitical tensions over European fracking. Unsubstantiated allegations in a New York Times report by Andrew Higgins claim that the Russians are funding anti-fracking protests to maintain their hegemony over gas markets.

The allegations have infuriated environmentalists and climate justice activists. The last thing they want is to be made scapegoats for the fracking collapse and be played as the neo-Cold War dupes of the Russian empire. But memories of red-baiting suddenly hang in the air as (by seeming coincidence) dozens of right-wing media sites regularly devoted to anti-Soviet slanders or climate change denial immediatelypicked up Higgins’ Times piece, as if on cue.

There are now dozens more of such published reports. Even as the US fracking industry collapses and tensions over control of Ukraine and other former Soviet satellites re-emerge, there seems to be a concerted right-wing effort to label fracking opponents Russian agents.

Vague innuendos dominate this narrative. In the Times piece, for example, former NATO Secretary General Anders Fogh Rasmussen is quoted: “I have met allies who can report that Russia, as part of their sophisticated information and disinformation operations, engage actively with so-called non-government organizations.” Others write, “Some in Sophia believe” or “Those who suspect Russian involvement” or “There’s no smoking gun, yet . . .”

Critics in Romania accused the Times and Higgins of scapegoating environmentalists and acting as partisan players in a renewed Cold War.

“What, exactly, is the grand total of evidence that Russia is financing these anti-fracking protests?” asks American blogger in Romania, Sam C. Roman, in his article, “Pot vs. Kettle,” pointing out that the first anti-Russia allegation came from a politician who owned land that Chevron planned to frack, and is thus losing money from the protests. “Not one allegation against Russia in the entire article is proven by a single document, piece of evidence or other direct proof. All that exists are shadowy insinuations and allegations.” He asserts that accusations by Lithuanian, Romanian and NATO officials against Russia have not yet to be backed up by any proof.

“Add it up,” Roman writes. “You’ve got two former NATO [secretary generals] stumping for Chevron (which competes with Gazprom, a Russian energy company that also conducts fracking operations in Europe) blaming the Russian government for protests. . . . And all of this tied up in a neat little bow by an American journalist who has already been caught publishing anti-Russian propaganda in his newspaper before.”

This all leaves the United States somewhat schizophrenic. On the one hand, the United States and NATO’s foreign policy hawks are delighted by the oil price collapse; it serves to isolate and subdue Russia, expand NATO’s influence in Eastern Europe, and puts pressure on Iran to negotiate on nuclear aspirations. Not to mention that with gasoline at $2 per gallon, consumer spending and economic growth will be enhanced. The US economy grew by a comparatively robust 5 percent in the third quarter of 2014.

According to an article by Larry Elliott in The Guardian, “Stakes Are High as US Plays the Oil Card Against Iran and Russia,” the price drop was an act of geopolitical warfare by the United States, administered by the Saudis. Elliott suggests that US Secretary of State John Kerry allegedly struck a deal with Saudi Arabia’s King Abdullah in September. That might explain how oil prices dropped during the crisis caused by Islamic State in Iraq and Syria, which would normally have caused prices to rise.

It would also explain why the Obama administration allowed the financial industry the amendment to Dodd-Frank that effectively exempts financial institutions from liability associated with derivatives. Though shale derivatives were not specifically mentioned by the Wall Street lobbyists as they pressured their allies in Congress and the White House, it is becoming increasingly clear that the too-big-to-fail banks were beginning to panic as dark clouds gathered on the horizon in the shale derivatives trade.

Most bank customers and voters don’t know that Congress has already written into finance regulations that, in the case of insolvency, financial institutions could grab the assets of depositors and “bail-in” – which means they can save themselves from their losses in gambling operations at their investment divisions by grabbing cash assets of depositors, even those that are FDIC guaranteed, and legally convert them to bank stocks. That means that in the event of another market crash, Chase and Citi could take their depositors’ cash in savings accounts or CDs, and give the customers back a bank stock certificate (of questionable value) instead.

There are also those who scratch their heads and ask, “Why did the TBTF banks push for a deletion of the Dodd-Frank provision now, instead of waiting for the friendlier Republican-controlled Congress to pass this legislation?” The only answer that seems to make sense, and explain their urgency, is that the collapse is imminent.

In the 1990s dot-com craze, every new Silicon Valley start-up company was advertised as the next Microsoft. What followed was the crash of 2000, when the NASDAQ dropped 4,000 points (80 percent) in months. This chart below is what the crash looked like in 2000 to 2002 after the market had reached 5,000 (almost exactly where it stands today).

Having learned their lesson well from the last bailout, and knowing that they will have a much harder time coming to Congress hat-in-hand after a collapse, the TBTF banks probably decided not to wait, pushing their minions in the Beltway to inoculate them as soon as possible from the potential market explosion.

In the meantime, they were probably dumping their own stocks on unsuspecting investors. Based on year-end reports for March 31, 2014, for 127 major oil companies, cash input for the fracking industry was $677 billion, while revenues from operations only totaled $568 billion – a difference of almost $110 billion. And this was before the price of oil started dropping six months ago.

In three out of seven major fracking fields in North America, companies are already reporting losses, with closures particularly acute in Canada. It’s not clear whether economists fully appreciate what’s about to transpire. This decline in rig count is just the beginning. Perhaps the end will come as early as this winter or spring, as fiscal reports for 2014’s fourth quarter are published, operations shut down, crews are laid off, and many unprofitable oil and gas rigs are mothballed.

So, whom will the banks, brokers and investors scapegoat for this upcoming crash? Some predict that they will likely use every available media outlet to blame community activists, Democrats and Obama for stopping the Keystone pipeline and for opposing the fracking industry. And as in the climate change denier movement, the narrative will probably use “communist” and “socialist” rhetoric, which is why the Russian card is so important to play: Hence the Higgins article.

The pundits on Fox will likely play on the patriotism of the right and use their Big Lie ploy (say something enough times, it becomes the truth) to the hilt. Six months from now, while studiously avoiding mention of our “allies,” the Saudis, or the Wall Street banks, they will likely be vociferously defending those poor “beleaguered US oilmen” who could have made our country strong and independent again in energy, but were broken by the Democrats and those “commie environmentalists” working for Putin. The market crash will be blamed on the “climate hoax.”

BEN PTASHNIK

http://www.truth-out.org/news/item/28406-russia-blamed-us-taxpayers-on-the-hook-as-fracking-boom-collapses

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DEPARTMENT OF JUSTICE
FOR IMMEDIATE RELEASE

ENRD
THURSDAY, SEPTEMBER 28, 2000

(202) 514-2008
WWW.USDOJ.GOV

TDD (202) 514-1888

KOCH INDUSTRIES INDICTED FOR ENVIRONMENTAL CRIMES AT REFINERY

WASHINGTON, D.C. – A federal grand jury in Corpus Christi, Tex., today returned a 97-count indictment against Koch Industries Inc., Koch Petroleum Group, L.P., and four corporate employees charging them with environmental crimes at a Texas oil refinery.

The defendants are charged with violating federal air and hazardous waste laws at Koch Petroleum Group’s West Plant refinery near Corpus Christi. The indictment also charges the defendants with conspiracy and making false statements to Texas environmental officials.

The West Plant is subject to Clean Air Act standards that limit emissions of benzene. In 1977, the EPA added benzene to the list of hazardous air pollutants based on scientific reports strongly suggesting an increased incidence of leukemia in humans exposed to benzene. The Clean Air Act also requires owners and operators of oil refineries like the West Plant to submit an annual report to federal and state regulators certifying that their refineries comply with benzene regulations.

Under the Act, the West Plant was required to comply with the federal benzene standards by April, 1993, but Koch Petroleum Group applied for and received a compliance waiver until January, 1995. The indictment alleges that in 1995, Koch Industries and Koch Petroleum Group were informed by an employee that the West Plant had at least 91 metric tons of uncontrolled benzene in its liquid waste streams, some 15 times greater than the 6 metric ton limit that applied to the refinery.

“Companies that produce dangerous pollutants simply cannot focus on profit and efficiency at the expense of a community’s health,” said Lois Schiffer, Assistant Attorney General in charge of the environment at the Justice Department. “We will continue to find and prosecute those who would flout our environmental laws.”

The indictment charges Koch Industries and Koch Petroleum Group with violating the Clean Air Act by, among other things, failing to install required emission control devices in 1995 on certain waste management units, such as its oil-water separators, wastewater sewers, and oil and wastewater tanks.

In addition, the indictment alleges that a device that Koch Petroleum Group installed in January 1995 to destroy benzene fumes from two oil-water separators, the Thermatrix Thermal Oxidizer, could not handle the high levels of benzene routed to it, and it would often shut down for extended periods of time.

According to the indictment, when the Thermatrix shut down, the West Plant continued to operate and Koch Industries and Koch Petroleum Group intentionally vented large amounts of untreated benzene fumes directly to the atmosphere through a bypass stack. The benzene released through the bypass stack exceeded 10 pounds per 24-hour period on several occasions, and Koch Industries and Koch Petroleum Group did not report these releases to the National Response Center. As a result, Koch Industries and Koch Petroleum Group and have been charged with violating the Comprehensive Environmental Response, Compensation and Liability Act for failing to immediately report to the National Response Center the discharges of a hazardous substance, namely benzene, from its West Plant.

The defendants then made false and misleading statements to the Texas Natural Resource Conservation Commission to conceal the extent of the refinery’s noncompliance with the Clean Air Act, according to the indictment, and falsely certified in a report filed in1996 that the refinery complied with the benzene regulations.

“The Texas Natural Resource Conservation Commission takes very seriously its responsibility to enforce all environmental laws to protect public health and the environment,” said TNRCC Executive Director Jeff Saitas. “We continue to work closely with state and federal task force members on this and other environmental criminal matters.”

David L. Lamp of Woodlands, Texas, was plant manager of the West Plant from November 1991 until June 1994, when he was promoted to Vice President for Marketing of the Koch Refining and Chemical Group. In May 1996, Lamp became vice president of Texas operations for Koch Refinery Company, which later became Koch Petroleum Group. Lamp is charged with conspiracy to violate the Clean Air Act and conspiracy to make false statements to Texas environmental officials; with operating the West Plant in violation of the Clean Air Act; and with making false statements to Texas environmental officials. If convicted, Lamp faces a maximum penalty of 25 years imprisonment and $1.25 million in fines.

Vincent A. Mietlicki of Andover, Kan., was an attorney in the legal department of Koch Industries, Inc. and subsequently the environmental manager of the West Plant. Mietlicki is charged with conspiracy to violate the Clean Air Act and conspiracy to make false statements to Texas environmental officials; with operating the West Plant in violation of the Clean Air Act; and with two counts of making false statements to Texas environmental officials. If convicted, Mietlicki faces maximum penalties of 35 years imprisonment and $1.75 million in fines.

John C. Wadsworth of Wichita, Kan., was vice president and plant manager of the West Plant from 1994 until 1996. Wadsworth is charged with conspiracy to violate the Clean Air Act and conspiracy to make false statements to Texas environmental officials. Wadsworth is also charged with operating the West Plant in violation of the Clean Air Act. If convicted, Wadsworth faces maximum penalties of 20 years imprisonment and $1 million in fines.

James W. Weathers, Jr. of Andover, Kan., was environmental engineer from 1992 until 1996, when he became manager of the environmental department at the West Plant. Weathers is charged with conspiracy to violate the Clean Air Act and conspiracy to make false statement to Texas environmental officials . Weathers is also charged in the indictment with two counts of making false statements to Texas environmental officials. Weathers faces maximum penalties of 20 years imprisonment and $1 million in fines if convicted.

Koch Industries and its subsidiary Koch Petroleum Group face a maximum statutory penalty of $48.5 million. Alternatively, under federal law, the companies may be subject to fines of twice the pecuniary gain realized from the criminal offenses, in lieu of the maximum penalty under the applicable statutes. According to the indictment, Koch Industries and Koch Petroleum Group earned profits of more than $176 million in 1995, while operating the refinery in violation of the Clean Air Act. One goal of the alleged conspiracy was to maximize profits and avoid shutting down the refinery, which did not meet environmental standards.

The case was investigated by the Texas Environmental Enforcement Task Force, comprised of federal and state agencies, including the FBI, the EPA’s Criminal Investigation Division, and the Texas Natural Resource Conservation Commission’s Special Investigations Unit. The case is being prosecuted by the Department of Justice Environmental Crimes Section.

“Today’s indictments demonstrate the importance of close cooperation with our state and federal task force partners,” said Steve Herman, EPA’s Assistant Administrator for Enforcement and Compliance Assurance. “We will continue to work vigorously with other enforcement agencies to ensure that the public is protected from chemical pollution in the air.”

An indictment is a formal charge that a defendant has committed a criminal violation of federal law. Every defendant is presumed innocent unless and until proven guilty.

To view the Department of Justice Press Release click on the link below.

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