AR2QU9I - Records Collectionssale or processing by reclamation plants for salvage of base metals or...
Transcript of AR2QU9I - Records Collectionssale or processing by reclamation plants for salvage of base metals or...
IN THE UNITED STATES DISTRICT COURTN DISTRICT OF MIEASTERN DIVISION
EASTERN DISTRICT OF MISSOURI 0"Sd)
DIVERSIFIED INDUSTRIES, INC., ))
Plaintiff, ))
vs. ) No. 78-1159-0(1))
AMERICAN TELEPHONE & TELEGRAPH )COMPANY, et al.f ' '' )
)Defendants. )
EXHIBIT A TO NOTICE OFDEPOSITION UPON WRITTEN QUESTIONS
ON BEHALF OF DEFENDANT- DIRECT QUESTIONS
INTRODUCTION
Pursuant to Rule 31 of the Federal Rules of Civil Procedure
the written questions contained in this Exhibit A To Notice of
Deposition Upon Written Questions On Behalf of Defendants are
to be propounded to the person or persons designated pursuant
to Rule 30(b)(6), F.R.C.P. by each of the deponents listed in
Exhibit B to the Notice of Depositions Upon Written Questions
on Behalf of Defendants, at the place and time and.before the
Court Reporter set forth in said Exhibit B.
DEFINITIONS
For purposes of the Written Questions herein contained the
following words shall have the following meanings when used in
said Written Questions.
A. "Diversified" shall mean Diversified Industries, Inc.
and each of the following subsidiaries, divisions and
affiliates: Diversified Metals Corporation, Eastern
Diversified Metals Corporation, Western Diversified Metals
Corporation, Liberty Smelting Works (1962) Ltd., Kemco Metal
Processing Corporation, Nathan S. Colen 6 Sons, Inc., and\
Diversified Metals International.
AR2QU9I
B. "Document" includes all non-identical versions
copies or any written, printed, typed, photocopied, punched,
filmed, microfilmed, microfichec, photographic and graphic
matter of any kind or character, and any tape, record and other
recorded material, however produced or reproduced, in your
possession or control, including, but not limited to, all
drafts, contracts, diaries, ' calendar s, correspondence,
communications, telegrams, teletypes, memoranda, notes,
notations, studies, reports, ch=rzs, maps, viewgraphs,
transcripts of testimony, computerized records, analyses,
statistics, prospectuses, lists, letters, summaries, reports,
plans, expressions or ststemsr.is of policy, speeches,
circulars, pamphlets, pr=ss releases, brochures,
advertisements, receipts, quo^siicns, minutes, financial
records, and entries in bosus of account, but it does not
include invoices, shipping documents, equipment or service
orders, or purchase orders, unless otherwise specified herein. .
C. "Person" means any natural person, company,
corporation, professional corporation, partnership,
association, joint venture, proprietorship, firm or 'other
business enterprise or legal entity.
D. "Oral communication" means any utterance heard by a
person other than the speaker.
E. "Identify" used in reference to a natural person means
to state his full name end residence address, his present or
last known position and business affiliation, and his positionand business affiliation at the tints in question.
F. "Identify" when used in reference to a document means
to state the date or dates, author or. originator, subject
matter, all addresses, and recipients, type of document (e.g.,
letter, memorandum, telegram, chart, etc.), number or code
AR20U92
•") /j : ,U i't 4 tt i ri d L
number thereof or other means of identifying it, and il
present Iocati6n and custodian. If any such document was, but
is no longer in your possession or subject to your control,
state what-disposition was made of it.
G. "Identify" when used in reference to an oral
communication means to state the speaker, the person spoken to,
the other persons who were present or in a position to hear,
the date, the place of communication, and the substance of such -
oral communication.
H. "Identify" when used in reference to a business entity
means to state its full name, the address of its principal
office and the type of entity.
I. "And" and "or" are both conjunctive and disjunctive.
J. Words in the singular include the plural, and words in ,
the plural include the singular. "Each" and "any" are both
singular and plural.
K. Words in the past tense include the present, and words
in the present tense include the past.
L. "Scrap" means material which has no value except for
sale or processing by reclamation plants for salvage of base
metals or other materials.
M. "Copper Base Scrap" shall mean any scrap, as defined
herein, which shall contain copper as a base metal.
N. "Insulated Wire and Cable Scrap" shall mean scrap, as
defined herein, which shall consist of wire or cable composed
of copper or aluminum wire covered -by an insulating material.
O. "Describe" meanst
(a) Describe fully by stating underlying facts rather
than by stating ultimate facts or conclusions of law.
(b) Particularize as to time, place, identity of
persons, documents or oral communications involved and
circumstances.
RSGINAL(red)
P. "Disposing" or "disposed" shall rrean to transfer title
or possession of scrap to someone else by sale, exchange, or '
other means, including transfer pursuant to a toll exchange-
agreement and/or a nugget return, tell agreement.
Q. "Acquired" shall mean received transfer of title or
possession of scrap by sale, exchange or other means, including
receipt by transfer pursuant to coll exchange agreement and/or
a nugget return toll agreement.
R. "Toll Exchange Agreement' shall mean a transaction in
which title to scrap is transferred by you to another in return
for processed or upgraded prr>=uct.
S. "Nugget Return Tell. A:r&=^er.fn shall mean a
transaction in which poises sior: of scrap is transferred by you
to another for process!-g and up:racing and the return to you
of the processed or upgrades product.
T. "Quantity" shall mear. the number of units stated in
pounds.
U. "Processed" shall mear. the upgrading of scrap by the
removal of insulation from insulated wire and cable scraps.
V. "You" or "Your Company" shall mean the specific
company or division to which plaintiff's Deposition upon
Written Questions has been served and its corporate
predecessors and successors.
W. "Related Company" shall mean each parent, subsidiary
or otherwise affiliated company or division of yours and any
joint venture or other entity in which you or any parent,
subsidiary or otherwise affiliated company or division of yours
owns an equity interest of at least 50%.
X. "ACSR Wire" shall mean aluminum cable steel reinforced
wire.
R l O i N A L(red)
WRITTEN QUESTIONS
1. State name, state of incorporation and address of vour
principal place of business and of each of your-subsidiary
corporations which disposed of or processed copper base scrap,
insulated wire and cable scrap, or ASCR wire since January 1,
1976.
2. Identify the persbn or persons who were in charge of
the disposition of copper base scrap, insulated wire and cable
scrap and ASCR wire for you and each of your subsidiaries
between January 1, 1976 through December 31, 1980.
3. Please supply the following information separately for
you and each of your subsidiary corporations:
Year Quantity of copper • Quantity of insulatedbase scrap disposed copper wi^e and cableof by gross weight • scrap disposed of by(pounds) gross weight (pounds)
1976 74,983 708,464
1977 234.727_________ 1,459,876
1978 839,209 " 1,271,145
1979 162,003 1,279,689
1980 304,264 1,013,229
Year Quantity of insulated . Quantity of ACSRaluminum wire and wire disposed of bycable scrap disposed gross weight (pounds)of by gross weight (pounds)
" '~ ~ —~ ~ -~ —————— .«™n B J" —
1975 1,934, 48 Mnf- " •.-'reoated
2,394,190
if^ALiio(red)
Year Quantity of insulated Quantity of ACSRaluminum wire and _ wire disposed of bycable scrap disposed srrau "'"j'ross weigb^_(pounds|
1978
1979
1980
Month
August1977
September1977
October1977
November1977
December1977
Month
of by gross weight (po-'ncs)
2,JT67,151
3,076,228
2,520,129
Quantity of copperbase scrap disposedof by gross weight(pounds)
3,474
3,132
92,829
. 10,765
None
Quantity of insulatedaluminum wire andcable scrap disposedof by gross weight (pounds)
22,306
103,625
318,733 .
• 330,494
Not Segregated
Not Segregated
Not Segregated
Quantity of insulated' copper wire and cablescrap disposed of bygross weight (pounds)
213,318
None
342,641
206,839
None
Quantity of ACSRwire disposed of bygross weight (pounds)
Mot Segregated
Not Segregated
Not Segregated
Not Segregated
August1977
September1977
October1977
November1977
December Ig8>332 . • Not Segregated
1980
1980
GINAL(red)
Year Quantity of copper Quantity of insulatedbase scrap disposed copper wire and cableof to Diversified ~ - - - J -i:_:cssd of toby gross weight Diver.'ifijd by gross(pounds)___________ weight (pounds)________
1976 _..._..._.
1977
1978
1979-
Year Quantity of insulated Quantity of ACSRaluminum wire and wire disposed of tocable scrap disposed Diversified by grossof to Diversified by weight (pounds)_______gross weight (pounds)
1976
1977
1978
1979
Month Quantity of copper Quantity of insulatedbase scrap disposed copper wire and cableof to Diversified scrap disposed of 'toby gross weight Diversified by gross(pounds)___________ weight (pounds)________
August1977 _______________ _______________
September1977
October1977
November1977
December1977
AR20U97
(red)Year Quantity of insulated Sts-.e the method or methods
copper base scrap which by w.-ich you processedyou processed internally th* insulated wire and cableby gross weight (pounds; sc.=?, i.e. burning, chopping,
c'ricn.icql solvents, etc.
1976 ____________________ __________________
1977
1978
1979
1980
Year Quantity of insulated State the method or methodscopper wire and cable by which you processedscrap which you processed the insulated wire and cableinternally by grcr.3 weic.-.t scrap, i.e. burning, chopping,(pounds)____________' chemical solvents, etc.
1976 _______;___________ ______________
1977
1979
1980
Year Quantity of insulated State the method or methodsaluminum wire and cable by which you processedscrap which you pro- the insulated wire and cablecessed internally by scrap, i.e. burning, chopping,gross weight (pounds) chemical solvents, etc.
1976
1977
1979
1980
ORIGINAL(red)
Year Quantity of ACSR State the method or methodswire which you by which you processedprocessed internally the insulated wire and caby gross weight scrap, i.e. burning, choppif(pounds)___________ chemical solvents, etc.
1976
1979
1980
Month Quantity of insulated State the method or methodscopper base scrap which by which you processedyou processed internally the insulated wire and cableby gross weight (pounds) scrap, i.p>. burning, chopping,
chemical solvents, etc. •
August1977
September1977
October Wofl "1977
November1977 .
December1977
AR20U99
(red)Month Quantity of insulated 5t=-s the method or methods
copper wire and cable by »hich you processedscrap wh'ich you processed the insulated wire and cableinternally by gross w-i;:,t srrip, i.e. burning, chopping,(pounds)______________ ci'.er.ical solvents, etc.
August1977
September1977
October1977
November'1977
December1977
Month Quantity of insula-e-i State the method or methods'aluminum wire and csn'.e by which you processedscrap which you pr^- the insulated wire and cable •cessed internally by scrap, i.e. burning, chopping,gross weight (pounds: chemical solvents, etc.
August1977
September1977
October1977
November1977
December1977
10
AR201500
(red)Month Quantity of ACSR state the method or methods
wire which you by which you processedprocessed internally the insulated wire andby gross weight scrap, i.e. burning,(pounds) _________ , chemical solvents, etc.
August1977
September1977
October1977
November1977
December1977
4. (a) State whether Diversified made any attempt to
acquire scrap from you or any of your subsidiaries between
January 1, 1976 and December 31, 1980; and
(b) If so, describe each such attempt and the results
of each such attempt.
5. (a) State whether you or any 'of your subsidiaries
made any attempt to solicit an offer or bid from Diversified to
acquire scrap from you or any of your subsidiaries between
January 1, 1976 and December 31, 1980; and
(b) If so, describe each such attempt and the results
of each such attempt.
6. State with respect to each offer by Diversified to*
acquire scrap from you or any of your subsidiaries:
(a) The date of the offer;
(b) The terms and conditions of the offer including,
but not limited to, the following: (1) The quantities of copper
base scrap, insulated wire and cable scrap, ACSR aluminum wire
11
AR20I50
| ' J * II . I . I £,- (red)
scrap and other scrap to be acquired ; and ;2) The nature of the
L.uusactions by' which the scrap would be acquired, i.e. sale,
toll exchange agreement, nuggst return -cell agreement or other
means;
(c) Whether the offer was by oral communication and,
if so, identify the oral comrcunicatior. _,nd each document which
state the terms and conditions of tr. offer;
(d) Whether the offer was in writing and, if so,
identify each document containing the offer;
(e) Whether you or =r.y of your subsidiaries accepted
the offer ; and
(f) IL you or =.r.y c: your subsidiaries did not accept
the offer: (1) state the r^asor: cr reasons why you did not
accept the offer; and (1 ider.-iiy t'r.e person, or persons, who
made the decision to not accept zr.e offer.
7. State whether you or ' any cf your subsidiaries
refrained from disposing of scrap to Diversified at any time
after January 1, 1976 in whole cr in part because of publicity
concerning: (a) Diversified' s financial condition; (b)
Diversified 's alleged practice of short-weighing, i.e.
delivering or returning to customers lesser weights of metals
recovered frcm -scrap than actually recovered; (c) Diversified 's
reported improper payments to employees of its suppliers of
scrap; or (d) Diversified 's changes in management personnel.
8. State whether you or any of your subsidiaries
refrained from disposing of scrap tb Diversified at any time
after January 1, r>76 in whole or in part because of
Diversified 's reputation for: (a) financial weakness or
instability; (b) commercial dishonesty; or (c) management
chanqeover or instability.
AR20I502
RiGiNAL(red)
9. If your answer to questions 7 and/or 8 is affirmative,
state which of the items listed therein constituted in whole or
in part a baris for the decision of you or your subsidiary, the
source or sources of the publicity or information which you or
your subsidiary had concerning such item or items, the time
when the decision was made and whether you or your subsidiary
have since disposed of scrap to Diversified.
10. Identify the three persons to whom you and any of your
subsidiaries disposed of the largest quantities of copper base
scrap during each of your fiscal years ending in 1976 through
1979. '
11. Identify the three persons to whom you and any of your
subsidiaries disposed of the largest quantities of insulated
wire and cable scrap during each of your fiscal years ending in
1976 through 1979.
12. Under Rule 30 (e) of the Federal Rules of Civil
Procedure you have the right to read and sign this deposition,
to check the accuracy of the transcription, but not to change
the substance cf any answer. Do you wish to waive this right
and rely on the Reporter's accuracy?
COB
RLenmond C. CoburnJohn R. McFarlandPatrick C. DowdMichael H. GubermanOne Mercantile CenterSuite 2900St. Louis, Missouri 63101314-621-8575
13
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DUKE POWER COMPANY p. >LiJOAI. DEPARTMENT || J 1 ' ,, j J
03180 ~* " " *'• S-
CHABJLOTTE , N. C. ssa s (red) *70« 373' 4 8 7-X'RONALD V. SHEARIN '
EDWARD M. MARSH, JR.W. EDWARD POE, JR.
ALBERT VRCARR. JR. October 17, 1986ROBERT M. BISANARWILLIAM J. BOWMAN, JR.RONALD L.GIBSONJEFFREY M.TREPEL
OF COUNSELWILLIAM I. WARD, JR.
Mr. Francisca BarbaCompliance OfficerCERCLA Remedial Enforcement Section (3HW12)U. S. ERA, Region III841 Chestnut BuildingPhiladelphia,'PA 19107
Re: Eastern Diversified Metals SiteHometown, Schuylkill County, PA ' •
Dear Mr. Barba:
Subsequent to my letter to you of July 3, 1986, I received informationfrom a third party which led me to again have .Duke Power Company search itsfiles and records for information concerning the Eastern Diversified site inSchuylkill County, Pennsylvania. Upon a further review, Duke Power Companyfound the attached bill of lading. It was found in a "forms" file and wasdiscovered in an old desk. Records during the 1970's have now beendestroyed.
In addition, enclosed are copies of documents Duke Power Company filedin Diversified Industries v. American Telephone & Telegraph Co., et al., towhich Duke was not a party. The enclosures are: Affidavit of Joseph A.Ray; Affidavit of Joseph.A. Ray dated 1-11-82; letter of Joseph A. Ray dated1-8-82; Exhibit A to Notice of Deposition; Plaintiff's Cross ExaminationQuestions; and various workpapers of Joseph A. Ray.
If you have any additional questions, please let me know.
Very truly yours,
, John E. LanscheAssistant General Counsel
JEL/jb
'•. ; ••-.:- .'«,' ; • " • • • . (U Vi - - - ? • . -• •„»—.•f» FormlGS
(Uniform Domestic Straight 3H] si Ladi.".1, iCcptsd i? ?.'.rr::-nj in C.Sc:_:. i.-r-.hj — . ~V',--TTI •'-Illinois C3a*sific»tion Territoriet, Much 15, 1922, 13 amended August 1, 1930, and June 16, 1941.)
at_
V J. JL A \*f _L X f J» _J J* JL %— i. JL VJ _L _l -L.'JL./ _LJ /i J_ ^ 1. J— - J. **1 \J
ORIGINAL-NOT NEGOTIABLE A?enf. vnSEABOARD COAST LINE RAILROAD COMPANY^
RECEIVED, rabjeet to the classification* and tariff* In effect on the. date of the. Issue of this Shipping- Order, 'fi,' ,,,• '
Toddvillc Warehouse. Chenfroav. N. C. " * ~ ' "•' - ' • ' ' July 24, IB
•73
from Duke Power Co.. P. 0. ZBox fcl78. Charlotte'/ N, C." •'.*''" / r_ _ _ _ _ _ _ _ _ _ _ _ _ _the property described below, in apparent good order, except u noted (content* and condition of contents of package* unknown), marked, con-signed, and destined as indicated below, which laid company (the word company being understood throughout thii contract u moaning anyperson or corporation in poueuion of the property under the contract) agree* to carry to it* usual place of delivery at said destination, if on it*own road or its own water line, otherwise to deliver to another carrier on the route to laid destination. It Is mutually agreed, as to each carriwof all or any of said property over all or any portion of said route to destination, and as to each party at any time interested in all or any of saidproperty, that every service to be performed hereunder shall be subject to alt the conditions not prohibited by law, whether printed or written,herein contained, including the conditions on back hereof, which are hereby agreed to by the shipper and accepted for himself and his aoigitt.
Consigned to Diversified Metal Corp.Destination Tamaqua ^Hometown) State of PennB«.t. SCL - RF&P - B&O - RUG - LV , ' ' ' i
xn*fz*—ror piupoM <t KUloitioi — ly. \
Countvof
LV ________________________• - C-r Initial
Hs.Piekitti
63
'5- :
"'.-
DESCRIPTION OF ARTICLES, SPECIAL MARKS AND EXCEPTIONS
Bales Scrap Aluminum Wire
This shipped material Co be recycledand is exempt from the aftijj increase.
XJ«.r-Xj&Purchase Contract #3-2501-4.-.Seals ffL-AOMTT & L 405573 " ''*'• ' '• •., . ' '"-.'•".Shipper Load & Count ,• '•
' * '"•*<
•.-•_.• '"' .-•&• •••',.;. • -A ' :. • '.., .:'•- !'•:''•'*'.< •;.-.'.••--•'.-,- "•-. >-.- .-; •s\-.^- '• -:.-•• -..:.•,-:;. *-.- •- . -.r - ..-. >..
•If t_i >Upw*t mam Mna tw fsm bjr • MiAe l>7 nttr, !_• l»» tiqSm lt» U> bWW4.1* ' " . % . .
agreed or declared value of the property. •', •• •Tbe agreed er declare- ralae ef tbe ptuperfy It hereby *»eclflcall)
• ••'. '•». •'. ' , , ; • • •.. • ' .i:1f ' -- X-«V;,-^- •••;'.;:,.• ' •%''-•?';..£.,:, X*"-
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idnd to state specifically in writing the}*- . - ' •' ' 'A •-....'• ••Uled br the shlsper to be iMt «eecdl«|''>'';} ';> '.-.' ;.•'•'- -i - -.4'; ».- .ft;. . •• ••-...•'••.. • .. .. • . '
Subject to Section 7 of con-ditions, if this shipment Is tobe delivered to the consigneewithout recourse on the con-signor, the consignor shall signthe following statement:The carrier shall not make
delivery of this shipment with-out payment of freight and allother lawful charge*,
Duke Power Co.(Slcuton of Coo-por.)
1 If charge* are to' be prepaid,write or stamp here, "To__aPrepaid." . |
Collect ^
Recairadl ... ,to apply in prepayment of thecharge* on the property de-scribed hereoo.
Xgtnl at Oaklsr
P«r' *' ' • '"'
*.£&&'" fc-"*"-*Charjs* Adraooed: ,
'•'_-;„.?! -v-. ••-*.•••
•• '' .'• •••''''' -'Puke Power Cfinoariy ''•", ' ' '- ' V.ctj^ .'.'>"' • • ' •' '" ?s-- . __,
THE UNITED STATES DISTRICT COURTEASTERN DISTRICT OF MISSOURI
EASTERN DIVISION
ORIGINALDIVERSI1IED INDUSTRIES, INC., }
)Plaintiff, )
)vs. ) No. 78-1159-C(l)
)AMERICAN TELEPHONE & TELEGRAPH )COMPANY, et al., )
)Defendants. '"' )
AFFIDAVIT OF Duke Power Company ______(Corporation) —————————
Joseph A. Ray _____ f being first duly sworn upon his
oath deposes and states:.,.., , . . . j .. Duke Power Comoany1. I am the individual designated by ____________
to subscribe to the affirmations and/or corrections stated
herein as being matters known or reasonably available to the
organization.
2. That the followng responses represent the affirmations
and/or corrections to the initial responses given to the Direct
Question (s) of American Telephone s Telegraph Company
by Duke Power Company in its deposition by written questions
that was taken on the 6th day of January 19 82 .
3. That these affirmations and/or corrections have been
made to confrom the responses of the deponent to the definition
of "copper base scrap" as stated in the "Direct Questions" of
American Telephone & Telegraph Company, to-wit:
Page 1 of 8
ARZOI5Z8
ORIGINALAMENDED RESPONSES TO DIRECT QUESTION'(S) (fed)
J. State name, state of incorporation and address of your
principal place of business and of each of your subsidiary
corporations which disposed of or processed copper base scrap,
insulated wire and cable scrap, or ACSR wire since January 1,
1976.
ANSWER: Duke Power Company, a North Carolina corporation422 South Church StreetCharlotte, North Carolina 28242
Mill-Power Supply Company, a North Carolina corporation422 South Church StreetCharlotte, North Carolina 28242
2. Identify the person or persons who were in charge of
the disposition of copper base scrap, insulated wire and cable
scrap, and ACSR wire for you and each of your subsidiaries
between January 1, 1976 through December 31, 1980.
ANSWER:1. Mill-Power Supply Company, a subsidiary of Duke Power Compan
(See previous response)
2. P.. M. Wagstaff7602 Rolling Hill RoadCharlotte, North CarolinaMr. Wagstaff is now retired but was a Vice Presidentof Mill-Power Supply Company during this period.
3. Joseph A. RayWestland Farm Road - •Mt. Holly, North CarolinaI am and have been since August 27, 1980 the Administrator
. of Surplus and Salvage Sales for Mill-Power Supply Company.
Page 2 of 8
AR20I529
ORIGINAL3. Please supply the following information separately rot
you and each of your subsidiary corporations:
Year Quarrti-ty of copper Quantity of insulatedbase scrap disposed copper wire and cableof by gross weight scrap disposed of by(pounds) gross weight (pounds)
1976 783,447 ____ 708,464
1977 1,694,603__________ - 1,459-,876
1978 , 2,110,354__________ 1,271,145
1979 1,441,692__________ 1,279,689
1980 ' 1,317,493__________ 1,013,229
Month Quantity of copper Quantity of insulatedbase scrap disposed copper wire and cableof by gross weight scrap disposed of by(pounds) gross weight (pounds)
216,792 213,318
September 3,132_____ None
October 435 4701977 435,470__________ 342,641
November 217,604________ 206,839
December None _____ None
Page 3 of 8
AR20J530
(red)Year Quantity of copper Quantity of insulated
base scrap disposed copper wire and cableof to Diversified scrap disposed of 'toby gross weight (pounds) Diversified by gross
weight (pounds)
1976 _____None________ ________None
197,7 _____None________ • None
1978 None ' - .None
1979 None ' None
jggg None None
Month Quantity of copper Quantity of insulatedbase scrap disposed copper wire and cableof to Diversified scrap disposed of toby gross weight (pounds) Diversified by gross
weight (pounds)
None None
September None None1977 ________ __ __
None Hone-
November None________ None
December . None None
Page 4 of 8 .
AR2QI53.1
UK I ta. HAL(red)
Year Quantity of copper State the method or methodsbase scrap which you by which you processed theprocessed internally copper base scrap i.e.
"•r n " by* gt&Ss1 Wight' (pounds) burning, chopping, chemicalsolvents, etc.
1976 _______None____•____ None
1977 ____None None
1978 _____None________ - . None
1979 ___None __ None
1980 ___None__ ___ None
Year Quantity of insulated State the method or methodscopper wire and cable by which you processed thescrap which you processed insulated wire and cableinternally by gross weight scrap, i.e. burning,(pounds) chopping, chemical
solvents, etc.
1976 None_________ ______None
1977 None_ __ None
1978 _______None_________ _____None _____
1979 _____'None_________ _____None_______
1980 _____None _____ _____None _____
Month Quantity of copper State the method or methodsbase scrap which you by which you processed theprocessed internally copper base scrap, i.e.by gross weight (pounds) burning, chopping, chemi-cal
solvents, etc.
None None
September None None
Page 5 of 8
AR201532
Ri&INAL(red)
Month Quantity of copper State the method or methodsbase scrap which you by which you processed theprocessed internally copper base scrap,' i.e.by ,„_— ,••?_._•"•: ;: .-_...__) burning, chopping,
solvents* t :c_>
N o n e • None
November None ' None
December None None
6. State with respect to each offer by Diversified to
acquire scrap from you or any of your subsidiaries:
(a) The date of the offer?
(b) The terms and conditions of the offer including,
but not limited to, the following: (1). The quantities of copper
base scrap, insulated wire and cable scrap, ACSR aluminum wire
scrap and other scrap to be acquired; and (2) The nature of the
transactions by which the scrap would be acquired, i.e. sale,
toll exchange agreement, nugget return toll agreement or other
means; •
(c) Whether the offer was by oral communication and,
if so, identify the oral communication and each document which
state the terms and conditions of the offer;
(d) Whether the offer was in writing and, if so,
identify each document containing the offer;
(e) Whether you or any of your subsidiaries accepted
the offer; and
(f) If you or any of your subsidiaries did not accept
the offer: (1) state the reason or reasons why you did not
accept the offer; and (2) identify the person, of persons, who
made the decision to not accept the offer.
Page 6 of 8
AR201533
MSWER:6(a) July 9, 1980
6 (b) _.jje letter contained no terms and conditions
6(c) No.
6(d) Yes, see the letter attached hereto as Exhibit 1.
6(e) No.
Page 7 of 8
....... A.R20.l-S3lr
fk ""*• " \ 16(f) The letter containing the offer was received ^2 ? / - - , , - ' ,\ 1during the illness of Mr. F. M. Wagstaff and _ W S » i < w a i i i r . Uwas filed inadvertently.
D. Identify the three persons to whom you and any of your
diaries disposed of the largest quantities of Copper 'base
during each of your fiscal years ending in 1976 through
aaSWER: i) . southmet Recycling CorporationP.O. .Box 152Greenville, North Carolina 27834 - n's
ed2) Frank H. Nott, Inc.
900 Brook RoadRichmond, Virginia 23261 ,
3) Ansam Metals Corporation _r1026 E. Patapsco AvenueBaltimore, Maryland 21225
By:Name * t^*
Duke Power CompanyCompany422 South Church StreetCharlotte, North Carolina 28242Address
Signed and sealed before me this _____ day of31. —————
Notary Public
Commission Expires:
Page 8 of 8
AR201-535.
U- vA SUBSIDIARY OF DIVERSIFIED INDUSTRIES, INC.
N3 •'•' "" 'IO34 S. BRENTWOOO BLVO SUITE 1750 ST. LOUIS. MISSOURI 631 I 7 3I486282OO CABLE. DIMETCO
TELEX: 044-856
July 9, 1980
Mr. F.M. WagstaffManager-PurchasesDuke Power CompanyP.O. Box 32307Charlotte, North Carolina 28201
Dear Mr. Wagstaff:
This letter shall serve as notice of Diversified Metals-Corporatdesire to again be permitted to bid on all scrap offerings gene:by Duke Power Company.
•As you know, in the past, Diversified Metals has been a successcontinued buyer of scrap through the power company and we wishcontinue in that capacity and, again, be a competitive buyer ofmaterials thereby helping to increase revenues for your scrap.
Please contact the writer at the telephone number above concerrany questions you may have regarding the above-mentioned matte:
Trusting to hear from you soon, we remain
Very truly yours,
DIVERSIFIED METALS QCTRfiORAT ION -NATIONAL DIV.A SUBSIDIARY. OF DIVERSIFIED INDUSTRIES, INC.
LazaDirector-Metal Purphas\.ng
DHL:rd _
( EXHIBIT TWO )
ORIGiilALSTATE-OF NORTH CAROLINA )
) SSCOUNTY OF MECKLENBURG )
AFFIDAVIT
Joseph A. Ray, being first duly sworn, deposes and says:
1. That Joseph A. Ray, employed by Duke Power Company asAdministrator, Surplus and Salvage Sales, with duties of thedisposal of any and all surplus scrap and salvageable materialsof the company, has answered all of the questions propounded bythe parties.
2. That neither Duke Power Company nor its subsidiaries acquiredaluminum and/or copper choppings at any time during 1975-1978.
3. That neither Duke Power Company nor its subsidiaries acquiredaluminum and/or copper choppings at any time during 1975-1978.
4. That neither Duke Powei Company nor its subsidiaries acquiredaluminum and/or copper choppings at any time during 1975-1978.
5. That neither Duke Power Company nor any of its subsidiariesrefrained from acquiring copper and/or aluminum choppings fromDiversified at any time after January 1, 1976 in whole or inpart because of such publicity to the best of my knowledge.
6. That neither Duke Power Company nor any of its subsidiariesrefrained from acquiring copper and/or aluminum choppings fromDiversified at any time after January 1, 1976 in whole or inpart because of such reputation to the best of my knowledge.
7. That the answers to questions 5 and 6 were negative.
8. That Duke Power Company disposed of no insulated wire andcable scrap and no ACSR wire to Diversified during the monthsof August-December, 1977.
Joseph A. RaySWORN TO AND SUBSCRIBED before me this X»* *^ day of
January, 1982.
____Notary Public
My Commission Expires: •
May 10, 1982
6R201537- . - . - . . - - . - - - • • - - - - - - - _ - - . . . , . . _ . .
STAIE OF NORTH CAROLINA )' (red)
COUNTY OF MECKTSNBURG )
AFFIDAVIT
Joseph A. Ray, being i'irst duly sworn, deposes and says:
1. lhat Duke Power Ccttpany, 422 South Qiurch Street, Charlotte, NorthCarolina 28242 and Mill-Power Supply Company, 422 South Church Street,Charlotte, North Carolina 28242, both North Carolina corporations,disposed of insulated wire and cable scrap during the period January 1,1970 through December 31, 1975.
2. That John P. Holland was in charge of the disposition of insulatedwire and cable scrap during the period January 1, 1970 throughDecember 31, ISVi. His title during such period was Purchasing Agentfor Mill-Power Supply Ccnpany. Mr. Holland is now Manager,Retail for Duke Power Cotpany and resides at 2645 Rolling HillsDrive, Mcnroe, North Carolina.
3. That the gross weight in pounds of insulated copper wire and cablescrap disposed of annually by Duke Power Ccnpany during the periodJanuary 1, 1970 through December 31, 1975 was as follows:
a. 1970 - no record availableb. 1971 - no record availablec. 1972 - 509,891d. 1973 - 1,493,616e. 1974 - 1,346,493f. 1975 - 1,185,400
4. That the gross weight in pounds of insulated aluminum wire andcable scrap disposed of annually by Duke Power Ccttpany during theperiod January 1, 1970 through December 31, 1975 was as follows:
a. 1970 - no record availableb. 1971 - no record availableC. 1972 - 1,017,255d. 1973 - 3,671,493e. 1974 - 2,634,140f. 1975 - 1,847,200
5. That the quantity in pounds of insulated copper wire and cable scrapdisposed of annually by Duke Power Company to Diversified for eachyear during the period January 1, 1970 through December 31, 1975 wasas follows: •
a. 1970 - no record availableb. 1971 - no record availablec. 1972 - noned. 1973 - nonee. 1974 - nonef. 1975 - 20.r>,708
R\ r M \ Il y i H A L6. That the quantity in pounds of insulated aluminum wire and 6l scrap
disposed of annually by Duke Pcvrer Corpany to Diversified for eachyear during the period January 1, 1970 through December 31, 1975 wasas follows:
a. 1970 - no record availableb. 1971 - no record availablec. 1972 - 668,839d. 1973 - 1,361,677e. 1974 - 1,120,160f. 1975 - 383,143
7. That Duke Power Conpany processed no insulated copper wire and cablescrap internally during the period January 1, 1970 through December 31,1975.
8. That Duke Power Company processed no insulated aluminum wire and cablescrap internally during the period January 1, 1970 through December 31,1975.
9. Diat Duke Power Company processed no insulated copper wire and cable.scrap internally during the period January 1, 1970 through December 31,1975.
10. That Duke Power Company processed no insulated aluminum wire and cablescrap during the period January 1, 1970 through December 31, 1975.
11. That I am not familiar with the National Association of RecyclingIndustries, Inc.'s or Bell System's standard scrap classifications.
12. That Duke Power Conpany sells insulated wire and cable scrap bysoliciting bids for each lot only.
13. That Duke Power Corpany was not a consumer of copper chcppings duringthe period January 1, 1970 through December 31, 1975.
14. That Duke Power Ccnpany was not a consumer of aluminum choppings duringthe period January 1, 1970 through December 31, 1975.
•15. That companies acquiring scrap from Duke Power Corpany are required topay for the scrap by certified check, cashier's check or wire transferof funds prior to removing the scrap.
16. That Difce Power Ccnpany has not attempted to solicit an offer or bidfrom Diversified for the dispositicn of insulated copper'and cable scrap.
17. That Duke Power Conpany has not attempted to solicit an offer or bidfrcro Diversified for the dispositicn of'aluminum wire and cable scrap.
Joseph A. RaySWOI4I TO AND SUBSCRIBED before methis/?*0 day of January.1982.
<«S f-—t •Notary Public
Cannission Expires: May 10, 1982.
^ a sA ^ a ^ *- a-* *%fe-?S E2 E @? 5
A SUBSIDIARY OF DIVERSIFIED INDUSTRIES. INC.
1034 S. BRENTWOOD BLVD. SUITEI75O ST. LOUIS. MISSOURI 63 I I 7 314.862-82OO CABLE: DIMETCOTELEX: 044-856
July 9, 1980
Mr. F.M. WagstaffManager-PurchasesDuke Power CompanyP.O. Box 32307Charlotte, North Carolina 28201
Dear Mr. Wagstaff:
This letter shall serve as notice of Diversified Metals Corporation'sdesire to again be permitted to bid on all scrap offerings generatedby Duke Power Company.
As you know, in the past, Diversified Metals has been a successful,continued buyer of scrap through the power company and we wish tocontinue in that capacity and, again, be a competitive buyer of yourmaterial; thereby helping to increase revenues for your scrap.
Please contact the writer at the telephone number above concerningany questions you may have regarding the above-mentioned matter.
Trusting to hear from you soon, we remain
Very truly yours,
DIVERSIFIED METALS (KTRSORA.TION-NATIONAL DIV.A'SUBSIDIARY OF DIVERSIFIED INDUSTRIES, INC. .
Da'Director-Meta L Purcha
DHL:rd
Exhibit Two
v P * " -""-.! -.JL . X— » ...
IS
.,22 SOUTH CHURCH STREET. CHARLOTTE, N. C. 282iZ
JOSEPH A. RAYAdmini5tr*tor
a January 8, 1982TllM H-2346
For the purpose of response to the Cross Examination Questions, only theperiod of January 1, 1972 through December 31, 1975 can be reported fromhistorical record. No record is available for January 1, 1970 throughDecember 31, 1971.
1. Principal Place of Business:A. Duke Power Company (a North Carolina corporation)
422 South Church StreetCharlotte, NC 28242
B. Processing Center:Duke Power Company .ToJdville WarehouseToddville RoadCharlotte, NC
C. Subsidiary Corporation Disposing:Mill Power Supply Company (a North Carolina corporation)4^2 South Church StreetCharlotte, NC 28242
2. J. P. Holland from 1970 to 1976B. G. Jones from 1976 to May 11, 1977F. M. Wagstaff from May 11, 1977 to August 27, 1980J. A. Ray from August 27, 1980 to Date
3. January!, 1970 No Record Available1971 No Record Available1972 509,8911973 1,493,6161974 1,346,493
December 31, 1975' 1,185,400
4. January 1, 1970 No Record available1971 No Record available1972 1,017,2551973 3,671,4931974 2,634,140
December 31, 1975 1,847,200
AR20!5lfls EsafflSE ^ s * *.r'«:-j !«* i~-jA&a- 3fcff* « Hi.
January 8.PAGE
6„December 31
dethrougt,"»»
17. we ve not
JAR:ash
ORIGINAL
8..
"
Sa.es
08JBIH.UPLAINTIFF'S CROSSEXA.'-: IK AT I ON QUESTIONS , ,.
DEFJKITIOKS
For purposes of the Cross Examination Questions
herein contained, the words used herein shall have the same
meanings as previously defined in Defendants' Written Questions.
. CROSS EXAMINATION QUESTIONS
1. State' the nane, state of incorporation and address
of your principal place of business, and of each of your
subsidiary corporations which disposed of or processed insulated, \ __.
wire and cable scrap at any time during the period January 1,
1970 through December 31/1975.
2. Identity the person or persons in charge of
the disposition of insulated wire and cable scrap for you
and each of your subsidiaries for each year during the period
January 1, 1970 through December 31, 1975.
^ 3. State the gross weight in pounds of insulated copper
wire and cable scrap disposed of by you annually for each year
during the period January 1, 1970 through December 31, 1975.
•-X"' . State the gross weight in pounds of insulated alu-
minum wire and cable scrap disposed of by you annually for each
year during the period January 1, 1970 through- December 31, 1975.
^^- State the quantity in pounds of insulated copper
wire and cable scrap disposed of by you annually to Diversified
for each year curing the period January 1, 1970 through Decembtr
31 1.975.
/%. State the quantity in pounds of insulated alurainua
wire and cable scrap disposed of by you annually to Diversified
for each year curing the period January 1, 1970. through Decerisr
31, 1975.
AL/,-_ _i-v
7. State the quantity in pounds of insulated cc
*•) -3 i)
wire and cc.L__; _.---_. ..'-1-1. ysu processed internally annually for
each year during the period January 1, 1970 through December 31,
1975. / • '
/ 8. State the quantity in pounds of insulated aluminum
wire and cable scrap which you processed internally annually for
' each year during the period January 1, 1970 through December 31,
1975.
y.. State the method or methods by which you processed
the insulated copper wire and cable scrap, i.e. burning, chopping, •
chemical solvents, etc. for each year during the period January
1, 1970 th/ough December 31, 1975.
/10. State the method or methods by which you processed
the insulated aluminum wire and cable scrap, i.e. burning, chopping,
chemical solvents, etc. for each year during the period January
1, 1970 through December 31, 1975.
.Mil). Where in answer to any question propounded to you
on direct or cross examination you have provided testimony re-
garding "copper-base scrap" as defined, .describe said copper-
base scrap using, where possible, the standard classifications
for nonferrous scrap metals used and approved by the National
Association of Recycling Industries, Inc. in "NARI's Circular
NF-77", or the Bell System's standard scrap classifications where
appropr
12 State whether you sell insulated wire and cable
scrap pursuant to a written contract. If yes, state the term
of each such contract and the cancellation or termination provisions
of each such contract.
>. 13. If you are a consumer of copper choppings (also
known as nuggets or granules) , identify each person from whom
you acquired chcppings during the period January 1, 1970 through
6 ' ' '
facility or other pcint from which said person ships choppings,
and describe your use of said choppings.
| -AiL4. If you are a consumer of aluminum choppings (also
known as nuggets or granules), identify each person from whom
you acquired choppings during the period January 1, 1970 through
December 31, 1980, the location of said person's wire-processing
facility or other point from which said person ships choppings,
and describe your use of said choppings.. l er ffvjA
P jJJr \J I/IB. Describe the terms and conditions of any security
deposit, escrow agreement or other arrangement intended to protect
you against a failure of 'performance by any company which acquires
your scrap. *yi/J-va "
.A." 16. State with respect to each attempt by you to solicit
an offer or bid from Diversified for the disposition (by sales
or toll) of insulated copper and cable scrap, the terms and condi-
tions of your solicitation including, but not limited to, the
following:
1) Number of locations of the material offered and
approximate quantity in pounds at each location;
2) Number and/or type of trailers, bins, etc. if any
to be furnished by Diversified;
3) Frequency of pickup of scrap at each location; and
if pickup conditioned on notice, time between notice and pickup;
4) -Sortation services.
,AJQ 17. State with respect to each attempt by you to solicit
an offer or bid from Diversif ied.. for the disposition (by sales
or toll) of alu.T;ir.uri wire and cable scrap, the terms and conditions
of your solicitation including, but not limited to, the following:
1) irurier of locations of the material offered and
approximate quantity in pounds at each location;
AR2GI5I45
i.ni . i mi iBf -- -iTli
L2) NurJber and/or type of trailers, bins, etc. if an
to be furnished by Diversified;
3) Frequency of pickup- of scrap at each
and if pickup conditioned on notice, time between notice and
pickup;
4) Sortation services.
GUILFOIL SYMINGTONPETZALL & SHOEMAKE
etc. if any - g«* r.i i* 1 ft! IV IH H I 0 I N I"-""y 1% i ** •locatioi/ ed")
By n . ..0_. ..Dale R. Joerling ——100 North Broadway, Suite 2000St. Louis, Missouri 63102
Attorneys for Plaintiff
CERTIFICATE OF SERVICE
• I hereby certify that a copy of the foregoing Plaintiff'sObjections to Direct Questions and Plaintiff's Cross ExaminationQuestions in Defendants' Depositions Upon Written Questions washand delivered this 17th day of December, 1981, to Coburn, Croft &Putzell, One 5ercantile Center, Suite 2900, St. Louis, Missouri63101.
UD~yIf.
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