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STEELWORKERS' BOWEN CHARGES: MARC RICH SECOND IN COMMAND PUTS OUT STATEMENT SHOWING RAC OWNERSHIP COVERUP CONTINUES

 STEELWORKERS' BOWEN CHARGES: MARC RICH SECOND IN COMMAND
 PUTS OUT STATEMENT SHOWING RAC OWNERSHIP COVERUP CONTINUES
 WHEELING, W.Va., Feb. 17 /PRNewswire/ -- "These people can't get their stories straight," United Steelworkers of America (USW) District 23 Director


Jim Bowen charged today. "It's amazing."
 Bowen, in a letter to West Virginia State Senate Judiciary Chair Jim Humphreys, presented a "fact sheet" sent by Ravenswood Director Willy Strothotte to a Swiss Metal Workers Union as further evidence of an attempt to cover-up the ownership of Ravenswood Aluminum Corporation (RAC).
 The USW said that Strothotte, the largest single stockholder in RAC with 48 percent of the common stock, indicated to the Swiss union that RAC's present CEO, R. Emmett Boyle, invited the Marc Rich-owned firm, Clarendon AG, to join his group in purchasing RAC. According to the "fact sheet," "Clarendon decided against it, but agreed to Mr. Strothotte's personally joining the investor group...."
 "There are a couple of things wrong here," Bowen said. "First, Mr. Strothotte is the president of Clarendon -- so he tells himself his company can't buy RAC, but he himself can? And then his company 'loans' $260 million to RAC to finance the purchase?" Bowen asked.
 "Second, we were told by Mr. Charles E. Bradley of Stamford, Conn., that he was the sole, 100 percent purchaser of RAC -- not Boyle, not Strothotte," Bowen said. "And now, thanks to Mr. Strothotte, we find out that was a fabrication from the very beginning!
 "The attempt to cover up fugitive Marc Rich's connection with RAC continues," Bowen charged.
 The union said 1,700 members of the United Steelworkers of America have been locked out by RAC since Nov. 1, 1990. Those workers averaged 54 years of age, with 23 years of experience at the time of the lock-out. The Judiciary Committee of the West Virginia State Senate held a hearing on Feb. 12, 1992, into the connection between RAC and international fugitive Marc Rich, the union said.
 -0- 2/17/92
 /EDITORS: Complete copy of Strothotte letter, Clarendon Ltd. fact sheet and Bowen letter to West Virginia State Senate Judiciary Committee Chair James Humphreys follow./
 Willy R. Strothotte, president of Clarendon Ltd., sent the following letter, dated Jan. 27, to Agostino Tarabusi, president of Schweizerrischer Metall- und Uhrenarbeitnehmer-Verband (SMUV) (Union of Swiss Metal Workers and Watchmakers), Weltpoststrasse 20, 3000 Bern 15, Zug, Switzerland.
 "It is with amazement that we learned of the activities that the Union of Swiss Metal Workers and Watchmakers (SMUV) intends to undertake on Jan. 28, 1992, in Bern and on Jan. 29, 1992, in Zug. Our amazement is particularly great because SMUV has been repeatedly informed of the true state of affairs by people in prominent positions.
 "Apparently, your union has fallen victim to the flagrant misinterpretations of the American steelworkers' union USWA, whose activities in Europe appear to be aimed solely at being able to report success to their members by attempting to generate additional pressure on the negotiations.
 "It is therefore important to us to again present to you our view of the situation:
 "The Marc Rich Group does not and never has held an interest in the RAC.
 "Since the takeover of Ormet by Mr. Boyle in 1986 from then-owners Conalco and Revere, a business acquaintanceship has existed between Mr. Boyle and myself.
 "At Mr. Boyle's request at that time, I acquired an interest in Ormet because it was important to Mr. Boyle to obtain international marketing experience through me for his new company. This personal relationship also led Mr. Boyle to invite me to join the board of directors of RAC after his takeover of RAC from Kaiser Aluminum. In addition, there is an active commercial relationship between Clarendon Ltd. and RAC in the area of aluminum and aluminum oxide.
 "The American union has drawn false conclusions from these facts. We are also of the opinion that the union is trying to lend an international profile to this purely intra-American dispute by -- unjustifiably -- involving our company.
 "Should you respond to the accusations regarding our understandable refusal to become active in the conflict, we can only assert that the continual repetition of a false claim does not make it any more correct.
 "The Marc Rich Group and Mr. Marc Rich are therefore definitely the wrong address for the announced demonstrations. The latter, by the way, has never in his entire entrepreneurial career demonstrated himself to be adversarial toward workers or unions; on the contrary, he has created thousands of jobs.
 "We are counting on your understanding as we conclude by expressing the hope that everything possible will be done to remain factual rather than sending out frivolous slander into the world, as has already occurred leading up to the SMUV actions. The enclosed 'fact sheet' should contribute in this respect to clarification, as should a declaration from Ravenswood which we have just received and which will certainly be of interest to you as well.
 "We hope, Mr. President, that you will be in a position after these clarifications, to weigh the 'different' truths. We would be very grateful, particularly in the current Swiss economic climate, if the SMUV were to exert its moderating influence.
 "In light of the unqualified accusations which must nevertheless be anticipated, we ask for your understanding if we regard this letter as an 'open letter.' The undersigned would be pleased to make himself available for further explanation or a personal conversation."
 Sincerely,
 Clarendon Ltd.
 /s/ Willy R. Strothotte
 President
 CLARENDON FACT SHEET
 A -- Willy R. Strothotte
 1. Strothotte is owner of Rinoman Investment B.V., which in turn owns 48 percent of Ravenswood Aluminum Corp.
 2. Ownership of the voting common stock of Ravenswood Aluminum Corp. is distributed as follows:
 -- Rinoman: 48 percent
 -- R. Emmett Boyle: 27 percent
 -- Stanwich Partners, Inc.: 20 percent
 -- Employee Management Group: 5 percent
 (Stanwich Partners, Inc., is an investment group headed by Charles E. Bradley, with headquarters in Stamford, Conn.)
 3. Strothotte is president of Clarendon AG, a Swiss corporation with a branch in Stamford, Conn., 49 percent of which is held by Marc Rich & Co. AG.
 4. Neither Marc Rich & Co. AG nor Clarendon AG own stock in Rinoman.
 5. Strothotte is also a stockholder in the Ormet Corp. (owner of the Ormet aluminum plant, the aluminum oxide works in Burnside, La., and a harbor facility). The shares in the Ormet Corp. are currently distributed as follows:
 -- R. Emmet Boyle: 48.3 percent
 -- Stanwich Partners, Inc.: 32.3 percent
 -- Willy R. Strothotte: 19.4 percent
 In 1986, a consortium led by Boyle acquired the Ormet Corporation from Consolidated Aluminum and Revere Copper and Brass.
 6. When a group led by Boyle began discussions regarding the acquisition of Ravenswood Aluminum corp. from Kaiser Aluminum Corp., Clarendon AG was invited to join this group. Clarendon decided against it, but agreed to Strothotte's personally joining the investor group based on his earlier association with Boyle and Bradley.
 7. Strothotte's ad personam involvement in Ormet and Ravenswood is that of a capital investor. All operating decisions, including labor-management relations, fall within the jurisdiction of the management of Ravenswood Aluminum Corp. and Ormet Corp. Although Strothotte, as a stockholder, is kept informed, he would never, as a European, undertake an attempt to interfere in the dispute between management and labor in the United States.
 B -- Clarendon AG
 1. The activities of Clarendon AG consist essentially of trading commodities, including bauxite, aluminum oxide and aluminum. Clarendon AG has regular business transactions with aluminum companies in the United States and other countries of the world.
 2. In recent years, Clarendon AG has assumed direct and long-term business involvement in the aluminum industry:
 -- Through its 100 percent subsidiary Berkeley Aluminum Co., Clarendon AG holds 26 percent of the aluminum plant of Mount Holly, S.C.; the rest of the shares in this company are owned by Alumax Inc. of the U.S.
 -- Clarendon AG owns 100 percent of the Virgin Islands Alumina Corporation, VIALCO, which in turn owns and operates an aluminum oxide plant on St. Croix in the (U.S.) Virgin Islands. Martin Marietta, the previous owner of the plant, shut it down in 1985. The plant was put back into operation in 1990 by Clarendon AG within the framework of a contract with Ormet Corp. regarding technical management. The plant employs 382 workers and successfully signed a collective bargaining agreement with the United Steelworkers of America in 1991.
 -- In addition, Clarendon AG has a long-term trade agreement with North West Aluminum Company, owner of an aluminum plant in The Dalles, Ore. These business agreements laid the foundation for North West Aluminum company being able to reopen the plant, which had been shut down in 1983. The plant has signed a collective bargaining agreement with the United Steelworkers of America.
 3. One of the fundamental prerequisites of Clarendon AG for entering into these investments and long-term business agreements was the fact that, in all cases, the individual companies had the necessary expertise to manage and operate the plant in question. This responsibility was delegated by Clarendon AG to its joint venture and contractual partners.
 4. Similar agreements to those described above also exist in other parts of the world in the area of metals and minerals. In almost all cases, they have protected plants from planned closings, which saved jobs and created new ones, including jobs for union members.
 Jim Bowen, USW District 23 director, sent the following letter, dated Feb. 17, to West Virginia State Senate Judiciary Committee Chair James Humphreys, Room 208W State Capitol, Charleston, W.Va. 25304.
 "I wish to convey my thanks to you and the members of the Senate Judiciary Committee for hearing the overwhelming evidence connecting international fugitive Marc Rich to the Ravenswood Aluminum Corporation.
 "As you heard from the evidence presented, Marc Rich is controlling the lives of citizens of West Virginia. That should not be allowed.
 "That's why RAC's response to your hearing is so insulting to the people of West Virginia. First, it is absurd that Willy Strothotte, owner of 48 percent of RAC's common stock, and a member of RAC's board of directors, continues to claim that he has no influence over RAC's management.
 "Second, that fabrication is compounded by another erroneous assertion: that Mr. Strothotte, as a foreigner, would not 'interfere' in his own firm's labor negotiations.
 "In the Steelworkers alone, we've dealt with many foreign stockholders who were vitally concerned with protecting their interests in the U.S. companies they owned.
 "And in this case, where RAC currently would be liable for $75 million in awards to LU 5668 members should (or should I say when) the NLRB rules in our favor, RAC and Mr. Strothotte would have you and the public believe he is not concerned? The company's largest stockholder? Who personally sits on RAC's board? Who has another employee of his company on RAC's board? Not involved?
 "That bald assertion simply isn't credible.
 "Third, if I may draw your attention to a paragraph on one page of a 'fact sheet' Mr. Strothotte sent to the Swiss Metal Workers Union (SMUV) on Jan. 27, a copy of which I just received (after the hearing), point 6 of the 'fact sheet' says:
 "'When a group led by Mr. Boyle began discussions regarding the acquisition of Ravenswood Aluminum Corp. from Kaiser Aluminum Corp., Clarendon AG was invited to join this group, Clarendon decided against it, but agreed to Mr. Strothotte's personally joining the investor group....'
 "As the committee heard on Wednesday, we were told that Mr. Bradley was the sole, 100 percent purchaser of the plant from Kaiser, and that Mr. Boyle would not be involved either as an investor or as an employee in RAC. The ownership change supposedly came months after the purchase.
 "Now Mr. Strothotte himself admits that was all untrue from the very beginning!
 "The question any reasonable, honest person must ask is why? Why the coverup? A quick review of the key dates involved in the leveraged buy out of RAC demonstrates why their story about this whole transaction would not pass the 'dead fish' smell test:
 "On Dec. 13, 1988: Kaiser and Bradley/RAC finalized their purchase and sale agreement;
 "On Jan. 25, 1989: Strothotte files papers in the Netherlands forming 'Rinoman Investment BV' with himself as the head, the company through which he 'personally' owns 48 percent of RAC;
 "On Jan. 31, 1989: the purchase and sale agreement was 'amended';
 "On Feb. 7, 1989: loan documents are filed in the Jackson County Courthouse showing that 'Ridgeway Commercial' -- an affiliate of Clarendon Ltd. (a Marc Rich company which Mr. Strothotte heads) -- loans RAC $260 million.
 "Now, Ms. Boger in her letter to you (which she released to the press before sending it to you) would have your committee and the people of West Virginia believe that RAC's vicious, cold-blooded lock-out of 1,700 West Virginia workers 'is not one of international intrigue, it is one of economics.'
 "The deaths of five good workers, fines levied for countless safety violations, and the plain, straight facts we presented to the committee -- as well as Mr. Strothotte's own words -- prove this is not simply a question of economics.
 "Marc Rich, through Mr. Strothotte, has his greedy hooks into RAC and he ought to be stopped.
 "If there is anything I can do to help the committee in its quest to bring justice to our citizens, please let me know."
 In kindest regards,
 /s/ Jim Bowen
 /CONTACT: Jim Bowen, director, USW District 23, 304-242-6544, or USW Communications Department, in Pittsburgh, 412-562-2442/ CO: United Steelworkers of Amercia; Ravenswood Aluminum Corporation ST: West Virginia IN: MNG SU: CON


CD -- PG003 -- 0555 02/17/92 11:39 EST
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