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to Paper Industry Politics
Interesting Details
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NCR Corporation and Appleton Paper are the two primary sources of PCB contamination
in the Fox River and Green Bay, due to their joint production of PCB-coated
carbonless copy paper, starting in 1954 and ending in approximately 1972.
(see Sources
of PCBs in the Fox River) Due to NCR patents, they had
no competitors for this product until more recently.
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In 2000, NCR Corporation had revenues of $5.959 billion, and a net income
of $178 million. (In 1991, AT&T bought NCR Corporation for $7.4 billion.)
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In February 1996, the U.S. Fish and Wildlife Service notified NCR that
it would be considered a 'Potentially Responsible Party' liable for Fox
River cleanup. On December 31, 1996, AT&T divested itself of
all stock in NCR; therefore, AT&T's liability for Fox River cleanup
is unclear at this time. (Can corporations drain assets and
avoid environmental liabilities by divesting in this way?)
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According to NCR’s 2000 Annual Report, in just this one year the corporation
spent $190 million for restructuring and other related charges involved
with acquisitions of other companies (not including the purchase prices).
The company has also invested heavily in new manufacturing plants in China.
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NCR Corporation has "strategic alliances and partnerships" with hundreds
of other small and large well-known corporations. AT&T and Walmart
are major customers.
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NCR Corporation and Appleton Papers face legal challenges by several groups
of former office workers who contend that their health has been damaged
by the PCBs and other coatings used on the patented NCR PAPER carbonless
sheets. Please visit the website for the Carbonless
Copy Paper Injury and Information Network. (Appleton Papers created
their own similar but opposite site
to deflect this criticism and claim “five decades of safety.”) It's
important to note that PCBs are rapidly absorbed through the skin and volatilize
into the air, so long-term office workers (and Appleton's Papers' mill
employees) could have experienced significant exposures. (see Health
Risks) Though PCBs were phased out of NCR PAPER in 1972, it may
have taken their merchants and customers several more years to sell and
use-up old stocks of PCB-coated forms. And the newer substitute chemicals
may have posed their own risks. For more information, please visit
these sites:
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In 1983, a researcher with the Water Chemistry Department of the University
of Wisconsin in Madison found that when NCR Corporation and Appleton Papers
phased out their PCB use for carbonless paper coatings in 1971 and 1972,
they began substituting a wide variety of other chemicals with questionable
safety. Some of the substitute chemicals are persistent just like
PCBs, and are also building up in the sediments and fish of the Fox River
and Green Bay. The health effects are unknown. The Wisconsin
Dept. of Natural Resources (DNR) has refused to investigate.
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Products
Products and services include a broad range of information technical
services, personal computers, point-of-sale terminals, scanners, web kiosks,
self-checkout units, electronic shelf labels, entry-level servers; and
self-service ATMs (automated teller machines), along with the necessary
software. The corporation also sells paper rolls, business forms,
labels, thermal transfer ribbons, inkjet cartridges, laser cartridges,
inking products, and retail office products. NCR is the world’s largest
paper roll converter with several paper roll manufacturing locations
around the globe, including five in North America. They produce a
line of thermal, conventional single-ply and carbonless multi-ply
paper rolls.
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History
1882 --- John Patterson bought control of a Dayton,
Ohio cash register factory and founded National Cash Register Company,
maker of first mechanical cash registers.
1913 --- Patterson fined by Justice Department for anti-competitive
violations including product tampering, spying and bribing competitors,
and was sentenced to jail. By the second decade of the 20th century,
National Cash Register controlled 90% of the cash register market.
1952 --- acquired Computer Research Corporation, which produced
digital computers with applications in aviation.
1953 --- established the Electronics Division to continue to
pursue electronic applications for business machines.
1954 --- National Cash Register (and Appleton Paper) began making
PCB-coated carbonless paper and dumping PCBs in the Fox River
1970 - National Cash Register purchases Appleton Coated Paper
Company.
1971 - National Cash Register combines Appleton Coated Paper
Company and another NCR subsidiary, Combined Mills, to form Appleton Papers,
Inc., with headquarters in Appleton, Wisconsin.
1974 --- National Cash Register name changed to NCR Corporation.
1977 - Total sales of NCR PAPER brand of carbonless paper, since
its introduction in 1954, exceed 1 million tons.
1978 - B.A.T. Industries (British American Tobacco) purchases
Appleton Papers from NCR Corporation, for $290 million. NCR Corporation
continues to license Appleton Papers to produce NCR Paper (under NCR’s
registered trademark). Appleton Papers and NCR Corporation
sign an agreement pledging to share Fox River PCB cleanup costs, should
this become necessary.
1982 --- first NCR Tower supermicrocomputer system launched
1991 --- NCR acquired by AT&T for $7.4 billion in a hostile
takeover, making NCR a wholly owned subsidiary of AT&T
1991 --- NCR purchased Teradata Corporation, commercial parallel
processing technology, database for data warehousing.
1994 --- NCR name changed to AT&T Global Information Solutions
(GIS).
1995 --- Lars Nyberg appointed chairman and CEO of AT&T GIS.
1995 --- AT&T announced spin-off of AT&T GIS by the end
of 1996.
1996 --- In February, NCR received notice from U.S. Fish and
Wildlife Service that NCR was considered a "potentially responsible party"
in the PCB contamination of the Fox River, and potentially liable for natural
resource restoration and damage compensation. (AT&T would have been
aware of preparations for this announcement, for it had been discussed
seriously and publicly since at least 1994 at Fox River Coalition meetings.)
1996 --- AT&T divested itself of NCR. AT&T GIS
changed its name back to NCR Corporation Distribution of NCR stock
took place on December 31, 1996 to AT&T shareholders of record on December
13, 1996. NCR Corporation thus became an independent, publicly-traded
company.
1997 --- NCR purchased University of Wisconsin (Paradise IP)
data warehousing. NCR purchased Compris Technologies, Inc., provider
of store automation and management software for food-service industry;
Dataworks, which develops check-processing software; and China JV
services and ATM production.
1998 --- NCR finalized transfer and sale of computer hardware
manufacturing assets to Solectron, though they continue as contract partners.
NCR sold its TOP END middleware software to BEA Systems, and purchased
50% of Stirling Douglas Group, Inc. (SDG), a privately-held software firm
and provider of merchandise management applications. Also acquired
ASI (services), Medaphis Division (data warehousing), AZ-Ben/CrewCondor(22%)
(retail store automation), Sensar(11%) and Spinnaker (26%) (both financial
self service).
1999 --- NCR acquired Permond Solutions (services), Gasper Corporation
(services), Strategic Technologies and Systems (data warehousing), and
IBM’s Non-Cash Self-Service.
2000 --- NCR purchased remaining 50% of Stirling Douglas.
Also, acquired 4Front Technologies and Memorex Telex Asia Pacific (services),
Sage Tree, Inc. (10%) and Ceres Integrated Solutions (data warehousing),
UNICCS (15%) and Research Computer Services (retail store automation),
and iATMglobal (20%).
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Location and Contact Information
NCR Corporation Headquarters
1700 S. Patterson Blvd.
Dayton, OH 45479
Phone: 937-445-5000
Fax: 937-445-1682
Map
showing headquarters location
Wisconsin Subsidiaries
NCR SYSTEMEDIA
3135 SUNRAY LN
GREEN BAY WI 54313-7283
(920) 434-2565
Map
showing NCR Systemedia
NCR CORP (a manufacturing site)
1201 N MAIN ST
VIROQUA WI 54665-1101
(608) 637-2152
NCR CORP
5752 TOKAY BLVD
MADISON WI 53719-1237
(608) 236-2920
NCR has about 960 facilities, and 43 R&D and manufacturing facilities
in 84 countries.
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Financial Information
-
2000 Revenues --- $5.959 billion
-
Net Income --- $178 million
-
Net Income Per Share --- $1.82
-
Weighted Average Shares Outstanding --- 98 million
-
Cash and Short-Term Investments --- $357 million
-
Debt --- $107 million
-
Stock Exchange Listing and Symbol --- NYSE: NCR
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Number of Employees 33,300, with approximately 230 employees in Wisconsin
-
More than 50% of NCR’s revenues come from outside the U.S.
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Leaders
NCR Executive Committee:
Lars Nyberg, Chairman and Chief Executive Officer
Mark V. Hurd, President, NCR Corporation, and Chief Operating Officer,
Teradata Division
Howard L. Lance, President, NCR Corporation, and Chief Operating Officer,
Retail & Financial Group
Earl Shanks, Chief Financial Officer ( David Bearman retires at the
end of 2001)
NCR Executive Officers:
Wilburt Buiter, Sr. Vice President, Human Resources
Kenneth A. Taylor, Sr. Vice President, Financial Solutions Division
Robert A. Davis, Chief Quality Officer and Chief of Staff, Retail and
Financial Group
Gerald (Gerry ) A.Gagliardi, Sr. Vice President, Worldwide Customer
Services
Mohsen Sohi, Sr. Vice President, Retail Solutions Division
Jonathan S. Hoak, Sr. Vice President and General Counsel
Mark Quinlan, Vice President, Systemedia
NCR Board of Directors
Lars Nyberg, NCR Chairman and CEO
David Bohnett, Founder and Former Chairman and CEO, GeoCities
David R. Holmes, Chairman, President and CEO, The Reynolds & Reynolds
Company
Linda Fayne Levinson, President, Fayne Levinson Associates
James R. Long, Former Executive Vice President, Northern Telecom Ltd.
(Nortel)
Dr. Ronald R. Mitsch, Former Vice Chairman and Executive Vice President,
3M
Dr. C.K. Prahalad, Professor of Business Administration, The University
of Michigan
James O. Robbins, President and CEO, Cox Communications, Inc.
William S. Stavropoulos, President and CEO, The Dow Chemical Company
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References and Links to More
Information
NCR Corporation Website
NCR Corporation Annual Reports, 1997 and 2000
NCR Corporation Capsule
Description --- from Hoover’s Online, The Business Network
NCR Financial
Summary --- from Hoover’s Online, The Business Network
Hoover’s Handbook of American Business, 1998, pages 1022-1023
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NCR’s explanation to stockholders
concerning the Fox River
NCR’s Notes to Consolidated Financial Statements (from NCR’s 2000 Annual
Report):
"Various federal agencies, Native American tribes and the State of Wisconsin
(Claimants) consider NCR to be a PRP [potentially responsible party] under
the FWPCA [Federal Water Pollution Control Act] and CERCLA [Superfund]
for alleged natural resource damages (NRD) and remediation liability with
respect to the Fox River and related Green Bay environment (Fox River System)
due to, among other things, sediment contamination in the Fox River System
allegedly resulting in part from NCR’s former carbonless paper manufacturing
in Wisconsin."
"Claimants have also notified a number of other paper manufacturing
companies of their status as PRPs
resulting from their ongoing or former paper manufacturing operations
in the Fox River Valley, and Claimants have entered into a Memorandum of
Agreement among themselves to coordinate their actions, including the assertion
of claims against the PRPs."
"Additionally, the federal NRD Claimants have notified NCR and the other
PRPs of their intent to commence a NRD lawsuit, but have not as yet instituted
litigation. In addition, one of the Claimants, the United States Environmental
Protection Agency (USEPA), has formally proposed the Fox River for inclusion
on the CERCLA National Priorities List."
"In February 1999, the State of Wisconsin made available for public
review a draft remedial investigation and feasibility study (RI/ FS), which
outlines a variety of alternatives for addressing the Fox River sediments.
While the draft RI/ FS did not advocate any specific alternative or combination
of alternatives, the estimated total costs provided in the draft RI/ FS
ranged from $0 for no action (which appears to be an unlikely choice) to
between $143 million and $721 million depending on the alternative selected."
"The USEPA has indicated that the final RI/ FS will be issued in the
first or second quarter of 2001 and that a decision on the anticipated
remedial action will be made in the third or fourth quarter of 2001."
"During the fourth quarter of 2000, the federal Claimants released a
proposed Restoration and Compensation Determination Plan (RCDP). The range
of damages in the proposed RCDP is from $176 million to $333 million."
"NCR, in conjunction with the other PRPs, has developed a substantial
body of evidence that it believes should demonstrate that selection of
alternatives involving river-wide restoration/ remediation, particularly
massive dredging, would be inappropriate and unnecessary. However, because
there is ongoing debate within the scientific, regulatory, legal, public
policy and legislative communities over how to properly manage large areas
of contaminated sediments, NCR believes there is a high degree of uncertainty
about the appropriate scope of alternatives that may ultimately be required
by the Claimants."
"An accurate estimate of NCR’s ultimate share of restoration/ remediation
and damages liability cannot be made at this time due to uncertainties
with respect to: the scope and cost of the potential alternatives; the
outcome of further federal and state NRD assessments; the amount of NCR’s
share of such restoration/ remediation expenses; the timing of any restoration/
remediation; the evolving nature of restoration/ remediation technologies
and governmental policies; the contributions from other parties; and the
recoveries from insurance carriers and other indemnitors. NCR believes
the other currently named PRPs would be required and able to pay substantial
shares toward restoration and remediation, and that there are additional
parties, some of which have substantial resources, that may also be liable."
"Further, in 1978 NCR sold the business [Appleton Papers] to which the
claims apply, and NCR and the buyer have reached an interim settlement
agreement under which the parties are sharing both defense and liability
costs."
"It is difficult to estimate the future financial impact of environmental
laws, including potential liabilities. NCR accrues environmental provisions
when it is probable that a liability has been incurred and the amount or
range of the liability is reasonably estimable. Provisions for estimated
losses from environmental restoration and remediation are, depending on
the site, based primarily on internal and third-party environmental studies,
estimates as to the number and participation level of any other PRPs, the
extent of the contamination, and the nature of required remedial and restoration
actions. Accruals are adjusted as further information develops or circumstances
change. Management expects that
the amounts accrued from time to time will be paid out over the period
of investigation, negotiation, remediation and restoration for the applicable
sites, which, as to the Fox River site, may be 10 to 20 years or more.
The amounts provided for environmental matters in NCR’s consolidated financial
statements are the estimated gross undiscounted amounts of such liabilities,
without deductions for insurance or third-party indemnity claims. Except
for the sharing arrangement described above with respect to the Fox River,
in those cases where insurance carriers or third-party indemnitors have
agreed to pay any amounts and management believes that collectibility of
such amounts is probable, the amounts are reflected as receivables in the
consolidated financial statements."
Clean Water Action Council's observations concerning
this report:
-
In some ways, NCR was more forthcoming to shareholders than Worms &
Cie (Appleton Papers, Inc.) in its annual report. NCR at least provided
the standard known estimates of possible financial liability. They
also used the correct dates.
-
The NCR report did not mention PCBs or polychlorinated biphenyls as the
main contaminant of concern on the Fox River. Shareholders deserve
to read a discussion of how NCR's patented paper product was involved in
contaminating a major river, bay and Great Lake with toxic PCBs.
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NCR did not name Appleton Papers Inc., but only referred to the carbonless
copy paper "business" sold to "the buyer." (In fact, in the company
history section of the NCR Corporation website, they leave out any mention
of owning and selling Appleton Papers between 1970 and 1978. They
make no mention of PCBs there either, and apparently are trying to downplay
they're involvement with toxicity concerns in the carbonless copy paper
market.")
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NCR describes the Fox River Group's (7 primary paper companies') strategy
to "notify other claimants" that they are also responsible for PCB dumping,
as a way of reducing their own liabilities. If they can drag several
other companies and local governments into the fight (even if the others
were NOT significant PCB sources), they gain more allies to fight with
them against cleanup. In this way, several local governments have
been terrorized into defending the paper companies against the EPA and
Superfund. This strategy also helps to complicate the issue and slows down
progress. Every year of delay means NCR can continue to use
the millions of dollars that would otherwise be forfeit.
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This report also describes the Fox River Group's strategy to argue that
"massive" dredging would be "inappropriate and unnecessary," as a method
to reduce the companies' liabilities. It's interesting that the Fox
River Group has never objected to the yearly "massive" maintenance dredging
of Green Bay Harbor's shipping channel and turning basins, which involves
MUCH messier techniques. The companies are not being consistent.
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