Tenneco Chemical Sues Kellogg and SBA For "Gross Errors" in Acetylene Plant Tenneco Chemical has started legal proceedings to recover damages for what it claims are "gross errors and omissions . . . in the design and construction" of its acetylene plant at Pasadena, Tex. The suit, filed by Tenneco in the District Court of Harris County, Houston, Tex., names as defendants M. W. Kellogg Co., a division of Pullman, Inc.; Société Belge de l'Azote et des Produits du Marly, Liège, Belgium; and Pullman, Inc. Tenneco is asking $15.5 million in damages. The plant, built by Kellogg at Tenneco's chemical complex on the Houston Ship Channel, makes acetylene from natural gas and oxygen. The acetylene is reacted in another plant in the complex to make vinyl chloride. The process used in the acetylene plant, according to Tenneco's suit, was originally developed by SBA, but was extensively improved by Kellogg, SBA's representative in the U.S. The process was jointly promoted by the two companies as achieving "high yields and precise control of product purity," Tenneco says. Kellogg believes the suit is "without merit." It says that it has furnished its legal counsel with information to provide a complete defense. "While there have been problems in bringing this plant to full capacity, it has been operating at a capacity of approximately 70%, which Tenneco itself has publicly stated is meeting the needs of its major customer," Kellogg says. "Moreover, start-up problems are not unusual in a plant involving the application of a complex chemical process, and there remains almost a year for the plant to meet the performance guarantees of the license agreement from SBA to Tenneco," it claims. Damages. The $15.5 million in damages which Tenneco is claiming includes $2 million which Tenneco alleges that it has spent to correct "gross errors" in the design and construction of the plant on the part of Kellogg and SBA. Tenneco says the $2 million expenditure was necessary to protect its investment of $7,959,855, the amount paid Kellogg under a lump sum contract to design and build the plant. Tenneco also agreed to pay SBA $375,000 as advance royalties. 24
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Tenneco claims that it will have to spend another $1 million to enable the plant to operate at the specified capacity of 100 million pounds a year. The remaining $12.5 million in alleged damages which Tenneco is suing to recover includes $6.5 million in exemplary damages and $6 million for loss of extraordinary operating and maintenance costs, raw materials, staff time, and profits. Defects. In its suit, Tenneco claims there are 18 specific and general defects in the acetylene plant. Included are allegations that the plant's burners were improperly designed, constructed, and installed. As a result, Tenneco maintains that carbon production and build-up are high, acetylene yields are below design, and burner life is drastically reduced. The alleged errors and defects in the plant were reported to Kellogg and SBA was kept informed, Tenneco says. Some suggestions for improving the plant were made by Tenneco and were accepted and acted upon by Kellogg with SBA's approval. However, Kellogg and SBA have refused to correct the apparent gross errors, Tenneco's suit alleges. Diamond Suit. Tenneco's suit against Kellogg and SBA is the second suit involving a U.S. acetylene plant that has been filed within the past two years. In 1962, Diamond Alkali began legal proceedings against Italy's Montecatini, charging that an acetylene process which it had licensed from Montecatini had basic defects (C&EN, April 29, 1963, page 2 2 ) . The Montecatini process is used in Diamond's Deer Park, Tex., acetylene plant. Montecatini denied Diamond's charges and filed a motion in a federal court in Houston for a stay of further proceedings pending arbitration of the dispute in Switzerland. Last week, Judge Joe Ingraham of the U.S. District of Texas, Houston Division, signed an order denying Montecatini's motion. Montecatini immediately filed an objection and a motion that the court reconsider its decision. The licensing agreement between Diamond and Montecatini provides for arbitration in Zurich, Switzerland, of disputes arising out of or in connection with the agreement.
Rachel Carson Dies at 56 ". . . we have put poisonous and biologically potent chemicals indiscriminately into the hands of persons who are largely or wholly ignorant of the harm they can do. This is an era of specialists, each of whom sees his own problem and is unaware of or indifferent to the larger frame into which it fits. It is also an era dominated by industry, in which the right to make money, at whatever cost to others, is seldom challenged." These are the words of biologist Rachel Carson, who died last week of cancer at her home in Silver Spring, Md. The views she put forth in her best known book, "Silent Spring," about the dangers to animals and man of indiscriminate use of pesticides were challenged and ridiculed by scientists and the chemical industry. But her small voice was heard. Her book became a national issue, stirred Congressional and Senate hearings, put the agricultural chemicals industry on the defensive, and instigated a study and report by the President's Science Advisory Committee on use of pesticides. Rachel Louise Carson was born in Springdale, Pa., May 27, 1907. She received an A.B. from the Pennsylvania College for Women in 1929 and an A.M. from Johns Hopkins in 1932. During 1931-36 she was a member of the zoology department of the University of Maryland. In 1936 she joined the staff of the Fish and Wildlife Service. In 1949 she became editor-in-chief of the Service. Rachel Carson published four books: "Under the Sea Wind" (1941), "The Sea Around Us" (1951) (for which she won a National Book Award), "The Edge of the Sea" (1956), and "Silent Spring" (1962).
DuBois Holders Would Dismiss Suits Against Grace Merger
Chicago TV Science Show to Be Seen in Four Other Areas Dr. Raymond P. Mariella, chairman of the chemistry department at Loyola University, Chicago, last week began his fourth season as host on Chicago's WBBM-TV show "Science Unlimited." This year, 20 of his weekly shows will be seen on four other Columbia Broadcasting System-owned stations, in Los Angeles, New York City, St. Louis, and Philadelphia. For his opening show of the season, seen in Chicago on April 18, Dr. Mariella and his guest, Dr. Thomas Findley, head of Swift & Co.'s organic chemicals research, discussed the origin of organic chemicals. In later half-hour shows, Dr. Mariella will discuss with Dr. James Albrecht of Accent International the relationship between the senses of taste and smell and the enjoyment of food; and with Dr. John Piatt, professor of theoretical chemistry and biophysics at the University of Chicago, the molecular structure of DNA and RNA. Dr. Mariella's show will be seen in the four other areas as a result of an exchange of public affairs programs among the five stations.
Shell Development Wins Job Transfer Case A U.S. district judge has refused to order arbitration of a dispute over the transfer of 10 employees of Shell Development Corp., from Emeryville, Calif., to Wood River, 111. The Association of Industrial Scientists, which represents professional employees at Shell's Emeryville laboratories, has sought arbitration of the dispute, contending that the transfer amounted to dismissal of those employees who did not wish to transfer (C&EN, March 9, page 19). Under the AIS contract with Shell Development, dismissal can only be for cause; AIS felt refusing a transfer was not adequate cause. Shell Development, on the other hand, believed that no dismissal was involved since employment was available elsewhere. U.S. District Judge Lloyd H. Burke sided with Shell Development. Ruling
orally in Federal District Court in San Francisco, Judge Burke said, a "failure to accept transfer is hardly a dismissal; it is just a failure to appear for work under the circumstances that employment is offered on a continuous basis." Judge Burke also said that he found nothing included in or omitted from the contract between AIS and Shell Development "which would make reasonable the assumption that this (transfer) was a matter that the contract contemplated as being a proper target for arbitration." Early last week, AIS had not decided whether it would appeal the decision. An AIS spokesman said that one of the 10 employees had already gone to Wood River, two were still considering whether to transfer, and seven had either terminated employment with Shell Development or had indicated that they would terminate employment.
Three DuBois Chemicals stockholders, Louis Lerner, Clyde C. Hargadine, and Jess E. Thompson, have moved for dismissal of their lawsuits seeking to block the merger of DuBois with W. R. Grace. Hearings on the motions are to be held April 30 in the U.S. District Court for the Southern District of Ohio in Cincinnati and on May 1 in the Court of Common Pleas for Hamilton County, also in Cincinnati. The plaintiffs asked the federal court to continue in effect its injunction against revealing how any employee-stockholder voted or to whom any employee-stockholder gave a proxy in the stockholder vote late last year (C&EN, Dec. 30, 1963, page 15). In that vote, 62.6% of the shares were voted in favor of the acquisition. Still to be voted on is the plan for dissolution of DuBois. In their motion for dismissal of the suits, Mr. Hargadine, Mr. Lerner, and Mr. Thompson said that, in view of the increase in the market value of Grace common stock and changes in the composition of the DuBois shareholdings, they now believe that at least two thirds of the DuBois shareholders would approve the merger agreement and plan of reorganization. Grace and DuBois, a manufacturer of specialty cleaning compounds, first announced merger plans last summer (C&EN, Aug. 12, 1963, page 23). Later, DuBois directors removed Mr. Lerner from his position as board chairman and Mr. Hargadine from his post as executive vice president (C&EN, Oct. 7, 1963, page 17) and the two announced they would wage a proxy fight to block the merger. They claimed that the merger would be against the best interests of the company and the stockholders. They were granted a temporary injunction, later withdrawn, preventing DuBois from issuing a proxy statement (C&EN, Nov. 4, 1963, page 21). In the other suit, Mr. Thompson, a stockholder and suspended employee, claimed that DuBois officers used undue pressure on employee-stockholders to vote for the acquisition by Grace (C&EN, Dec. 30, 1963, page 15). Early this month, Grace and DuBois set June 15 as the deadline for completing the transfer of assets. Grace offered one share of its common stock for each two shares of DuBois. APRIL
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COMMENT The Uneducated Science Writer The first thing that scientists and the general public must understand about science writers—newspaper science writers—is that the newspaper science writer is a newspaperman. He is a newspaperman first, and a specialist second. I don't expect to see this order reversed within the remainder of my lifetime. . . . Unfortunately, too many scientists are too ready to criticize a newspaper science writer for being a newspaperman. Scientists, and others who like to be regarded as scientists, profess they can't understand the need of a time element in getting their report into public print. It should make no difference, they maintain, whether their accomplishment should be printed today, tomorrow, next week, or even next month. Those who wail the loudest would likely protest even more vehemently if science writers and editors would agree that the accomplishments are so timeless they're not worth printing at all. . . . The James T. Grady Award of the ACS cites me for my "versatile understanding of chemistry, chemical engineering, and related fields . . . for outstanding reporting of chemical research." I hope my high school chemistry teacher, who taught me all I know of chemistry in one school year, has heard about this. . . . J wouldn't know the difference between a Kreb's cycle and a Harley Davidson, or even a Cushman scooter. But if a chemist reported some new finding wrested out of HIS knowledge of the Kreb's cycle . . . I'd get him to explain it to me. Then I'd write it for the public in words both they and I understand. . . . This doesn't mean I have to know everything about everything, or even a liltle about science. It does mean that I have to know the English language, and how to write it effectively. Effectively means sparingly. Our most unread science writers are those who write too much. Instead of an explanatory word or phrase . . . they write an explanatory paragraphthen they write another paragraph to explain that paragraph. . . . 7 have two prerequisites before I write a story. First I must have the feeling I understand it, and second I 26
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must be satisfied that I can write it so my readers understand it. Once I have satisfied myself in these two regards, I don't welcome interference. That's why I almost never show a story to the persons involved before it appears in my newspaper. I know by now that I wouldn't be willing to change it to the way THEY would like to see it in print. Nate Haseltine, science writer for the Washington Post, in his James T. Grady Address at the ACS meeting in Philadelphia, April 6, 1964.
BRIEFS Henry Troemner, Inc., has acquired Hengar Co, The Philadelphia, Pa., company will operate Hengar as a division of its present operation. Hengar manufactures special chemicals and equipment, such as Hengar granules, and test-tube supports.
Western Co. has purchased Stripling Chemical Co. Stripling manufactures emulsion breakers, corrosion inhibitors, scale inhibitors, paraffin solvents, and related products. It will be renamed Western Chemicals Co.
Princeton Chemical Research, Inc., Princeton, N.J., expects to be supplying pyromellitic dianhydride by the end of the year. The pure dianhydride of 1,2,4,5-benzenetetracarboxylic acid will be made by a new onestage vapor oxidation process developed by Princeton Chemical. The compound is a basic ingredient of polyimide resins (C&EN, April 13, page 5 5 ) .
NEW FACILITIES W. R. Grace & Co. will use a Casale converter in its new 200 ton-per-day ammonia plant. Foster Wheeler Corp. has received the multimillion-dollar contract for the design and construction of the Memphis, Tenn., plant.
Westinghouse Electric Corp. has been tentatively awarded a $71,142,407 contract by the Los Angeles Board of Water and Power Commissioners to supply a nuclear power generating plant to be built in Corral Canyon, near Malibu, Calif. Approval of the
Los Angeles City Council is required before the contract goes into effect. Total estimated cost of the plant is $92 million, of which up to $8 million will be furnished by the Atomic Energy Commission. The installation, providing a gross power production of 490,000 kw., is expected to be in operation by 1968.
Air Products and Chemicals, Inc., Allentown, Pa., has placed a sulfur hexafluoride plant into operation. The dielectric gas is presently used in klystron tubes for radar systems, in circuit-breaker systems, in high-voltage accelerators, and in altering the molecular structure of some polymers.
Dow Corning has two new silicone production facilities in operation. A silicone sealants plant in Elizabethtown, Ky., is making one- and twopart silicone sealants for practically all of the major industries. The other new facility, a medical products plant at Hemlock, Mich., is the first plant ever built for the production of medical-grade silicones. Medical-grade defoamers and fluids, silicone-rubber prostheses, tubes, and other devices for surgical use, and materials such as sponge and block rubber for plastic surgery and soft liners for dentures are made at the plant.
FINANCE W. R. Grace & Co. has declared a quarterly dividend of 2 7 1 / 2 cents per share on its common stock. The dividend is payable June 10, to stockholders of record on May 14. This is an increase in the quarterly dividend of 2 l /o cents per share and an increase in the annual rate from $1.00 to $1.10 per share.
Lithium Corp. of America's 1963 sales totaled $4,957,500, as compared with $4,394,500 for 1962, an increase of 13%. During 1963 the company incurred an over-all loss of $38,500; this year, however, lithium sales have increased and operations have shown a profit since the start of the year. Also, Beryllium Metals & Chemicals Corp., a division of Lithium Corp., has completed most of its construction program and is now making limited deliveries.
INTERNATIONAL Uniao Fabril do Azoto, subsidiary of Oompanhia Unhiao Fabril, Portugal, is now operating its new fertilizer plant in Portugal. Kellogg International Corp. had prime responsibility for the 180 ton-per-day ammonia and 120 ton-per-day urea plant. Kellogg International has also been awarded a contract for the engineering of a second synthesis-gas plant for ScholvenChemie, A.G., at Gelsenkirchen-Buer, in the Ruhr district, Germany.
Montecatini has two new petrochemical units in operation at Brindisi, Italy. A 2120 barrel-per-stream-day Udex unit is extracting benzene, toluene, and xylenes from a reformed naphtha stock, and a 2060 barrel-per-streamday Unifining unit is removing sulfur compounds and other impurities from the Udex feedstock.
Rumianca, S.p.A., Torino, Italy, has awarded a contract for the engineering of an acrylonitrile plant to Badger, Ltd., London. Badger is the British affiliate of Badger Co., Inc.,
Cambridge, Mass. The plant will be built at the Rumianca petrochemical complex near Cagliari, Sardinia. The new plant, scheduled to be on stream by mid-1965, will use the Sohio onestep conversion process (raw materials: propylene and anhydrous ammonia).
produces high-octane motor-fuel components. Universal is also designing a 13,500 barrel-per-stream-day Unifining unit and a 9000 barrel-per-streamday Platforming unit for Raffineria Di Roma for use at its Rome, Italy, refinery. The latter units are scheduled for completion next year.
Atlas Taiwan Corp, Kaohsiung, Taiwan, Republic of China, has opened its dynamite plant. Atlas Taiwan is owned jointly by Kaohsiung Ammonium Sulfate Corp., Taiwan, and Atlas Chemical Industries, Inc. The new plant, built by Chinese engineers under the direction of Atlas Chemical, has an annual capacity of 2400 tons of commercial explosives.
Etablissements Kuhlman, France, through its engineering contractor, Societe Technique d'Entreprises Chimiques, Sevres, France, has awarded a contract for the design of a synthesis gas plant to Selas Corp. of America's reforming processes division, The Hague, the Netherlands. The plant, based on Imperial Chemical Industries1 steam naphtha reforming process, will be built at Rieme, Belgium. The I CI process will replace the presently used coke-oven gas process. The unit is scheduled to be in operation early next year.
ANIC, S.p.A., Pa via, Italy, has added a Unifining and a Platforming unit, both designed and licensed by Universal Oil Products Co., Des Plaines, 111., to its refinery. Each unit has a capacity of 11,500 barrels per stream day. The Unifining unit treats naphtha with hydrogen to remove sulfur and other impurities; the purified naphtha is then charged to the Platforming unit, which
Diamond
Alkali
(Canada),
Ltd.,
is
building its first polyvinyl chloride compounding plant in Canada at Toronto. Operations are expected to be under way this summer.
Rocket-Motor Cases Made At Virginia Shipyard Officials of Thiokol Chemical Corp. and Newport News Shipbuilding and Dry Dock Co. check a component for a rocket-motor case made in the Virginia company's 2500-ton press. The component—a foreward gore plate—will be used on Thiokol's 260-inch, solid-fueled rocket. Thiokol, under government contract, has an experimental program to test the feasibility of large solid-fueled rockets. The Newport News company fabricates the rocket cases under subcontract from Thiokol. Thiokol will test fire the first of two 260-inch rockets at its new spacebooster plant in Brunswick, Ga., early in 1965.
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