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Postwar Expansion & New Leadership
Largely unknown by the public, Monsanto experienced difficulties in attempting
to market consumer goods. However, attempts to refine a low-quality detergent
led to developments in grass fertilizer, an important consumer product since the
postwar housing boom had created a strong market of homeowners eager to perfect
their lawns.
Under Hanley, Monsanto more than doubled its sales and earnings between 1972 and
1983. Toward the end of his tenure, Hanley put into effect a promise he had made
to himself and to Monsanto when he accepted the position of president, namely,
that his successor would be chosen from Monsanto's ranks. Hanley and his staff
chose approximately 20 young executives as potential company leaders and began
preparing them for the head position at Monsanto. Among them was Richard J.
Mahoney. When Hanley joined Monsanto, Mahoney was a young sales director in
agricultural products. In 1983 Hanley turned the leadership of the company over
to Mahoney. Wall Street immediately approved this decision with an increase in
Monsanto's share prices.
1976, Monsanto announced plans to phase out production of polychlorinated
biphenyl (PCB).
In 1979 a lawsuit was filed against Monsanto and other manufacturers of agent
orange, a defoliant used during the Vietnam War. Agent
orange contained a highly-toxic chemical known as dioxin, and the suit
claimed that hundreds of veterans had suffered permanent damage because of the
chemical. In 1984 Monsanto and seven other manufacturers agreed to a $180
million settlement just before the trial began. With the announcement of a
settlement Monsanto's share price, depressed because of the uncertainty over the
outcome of the trial, rose substantially.
Also in 1984, Monsanto lost a $10 million antitrust suit to Spray-Rite, a former
distributor of Monsanto agricultural herbicides. The U.S. Supreme Court upheld
the suit and award, finding that Monsanto had acted to fix retail prices with
other herbicide manufacturers.
In August 1985, Monsanto purchased G. D. Searle,
the "NutraSweet" firm. NutraSweet, an artificial sweetener, had generated $700
million in sales that year, and Searle could offer Monsanto an experienced
marketing and a sales staff as well as real profit potential - not to mention
the fact that Searle's CEO Secretary of Defense Donald Rumsfeld was
well-connected among a cabal of corrupt politicians in Washington DC. Since the
late 1970s the company had sold nearly 60 low-margin businesses and, with two
important agriculture product patents expiring in 1988, a major new cash source
was more than welcome. What Monsanto didn't count on, however, was the
controversy surrounding Searle's intrauterine birth control device called the
Copper-7.
Soon after the acquisition, disclosures about hundreds of
lawsuits over Searle's IUD surfaced and turned Monsanto's takeover into a
public relations disaster. The disclosures, which inevitably led to comparisons
with those about A. H. Robins, the Dalkan Shield manufacturer that eventually
declared Chapter 11 bankruptcy, raised questions as to how carefully Monsanto
management had considered the acquisition. In early 1986 Searle discontinued IUD
sales in the United States. By 1988 Monsanto's new subsidiary faced an estimated
500 lawsuits against the Copper-7 IUD. As the parent company, Monsanto was well
insulated from its subsidiary's liabilities by the legal "corporate veil".
Toward the end of the 1980s, Monsanto faced continued challenges from a variety
of sources, including government and public concern over hazardous wastes, fuel
and feedstock costs, and import competition. At the end of the 99th Congress,
then President Ronald Reagan signed a $8.5 billion, five-year cleanup superfund
reauthorization act. Built into the financing was a surcharge on the chemical
industry created through the tax reform bill. Biotechnology regulations were
just being formulated, and Monsanto, which already had types of genetically
engineered bacteria ready for testing, was poised to be an active participant in
the GMO biotech field.
In keeping with its strategy to become a leader in the health field, Monsanto
and the Washington University Medical School entered into a five-year research
contract in 1984. Two-thirds of the research was to be directed into areas with
obviously commercial applications, while one-third of the research was to be
devoted to theoretical work. One particularly promising discovery involved the
application of the bovine growth factor, MARKETED as a way to greatly increase
milk production.
In the burgeoning low-calorie sweetener market, challengers to NutraSweet were
putting pressure on Monsanto. Pfizer Inc., a pharmaceutical company, was
preparing to market its product, called alitame, which it claimed was far
sweeter than NutraSweet and better suited for baking.
In an interview with Business Week, senior vice-president for research and
development Howard Schneiderman commented, "To maintain our markets - and not
become another steel industry - we must spend on research and development."
Monsanto, which has committed 8% of its operating budget to research and
development, far above the industry average, hoped to emerge in the 1990s as one
of the leaders in the fields of biotechnology and pharmaceuticals that are only
now emerging from their nascent stage.
By the end of the 1980s, Monsanto had restructured itself
and become a producer of specialty chemicals, with a focus on
biotechnology products. Monsanto enjoyed consecutive record years in 1988 and
1989 - sales were $8.3 billion and $8.7 billion, respectively. In 1988 the Food
and Drug Administration (FDA) approved Cytotec, a drug that prevents gastric
ulcers in high-risk cases. Sales of Cytotec in the United States reached $39
million in 1989.
The Monsanto Chemical Co. unit prospered with products like Saflex, a type of
nylon carpet fiber. The NutraSweet Company held its own in 1989, contributing
$180 million in earnings, with growth in the carbonated beverage segment (which
Monsanto originated from since 1901 seed money from Coca-Cola to produce
carcinogenic Saccharin). Almost 500 new products containing NutraSweet were
introduced in 1989, for a total of 3,000 products.
Monsanto continued to invest heavily in research and development, with 7% of
sales allotted for R&D. The investment began to pay off when the research and
development department developed an all-natural fat substitute called Simplesse.
The FDA declared in early 1990 that the Simplesse product was "generally
recognized as safe" (GRAS) for use in frozen desserts. That year, the NutraSweet
Company introduced Simple Pleasures frozen dairy dessert. Monsanto hoped to see
Simplesse used eventually in salad dressings, yogurt, and mayonnaise.
Despite these successes, Monsanto remained frustrated by delays in obtaining FDA
approval for bovine somatotropin (BST), a hormore chemical MARKETED to increase
milk production in cows that causes mastitis (pus milk). Opponents to BST said
it would upset the balance of supply and demand for milk, but Monsanto countered
that BST would provide high-quality food supplies to consumers worldwide.
The final year of the 1980s also marked Monsanto's listing for the first time on
the Tokyo Stock Exchange. Monsanto officials expected the listing to improve
opportunities for licensing and joint venture agreements.
Monsanto's Early 1990s Transitional Period
Monsanto had expected to celebrate 1990 as its 5th consecutive year of increased
earnings, but numerous factors - the increased price of OIL due to the Persian
Gulf War, a recession in key industries in the United States, and droughts in
California and Europe — prevented Monsanto from achieving this goal. Net income
was $546 million, a dramatic drop from the record of $679 the previous year.
Nonetheless, subsidiary Searle, which had experienced considerable public
relations scandals and headaches in the 1980s, had a record financial year in
1990. The subsidiary had established itself in the global pharmaceutical market
and was beginning to emerge as an industry leader. The Monsanto Chemical Co.,
meanwhile, was a $4 billion business that made up the largest percentage of
Monsanto's sales.
Monsanto continued to work at upholding hypocritical "The Monsanto Pledge", a
1988 declaration to reduce emissions of toxic substances. By its own estimates,
Monsanto devoted $285 million annually to environmental expenditures.
Furthermore, Monsanto and the Environmental Protection Agency (EPA) agreed to a
cleanup program at Monsanto's detergent and phosphate plant in Richmond County,
Georgia.
Monsanto restructured during the early 1990s to help cut losses during a
difficult economic time. Net income in 1991 was only $296 million, $250 million
less than the previous year. Despite this showing, 1991 was a good year for some
of Monsanto's newest products. Bovine somatotropin finally gained FDA approval
and was sold in Mexico and Brazil, and Monsanto received the go-ahead to use the
fat substitute, Simplesse, in a full range of food products, including yogurt,
cheese and cheese spreads, and other low-fat spreads. In addition, the herbicide
Dimension was approved in 1991, and scientists at Monsanto controversially
tested genetically engineered (GE or GMO) plants in field trials.
Furthermore, Monsanto expanded internationally, opening an office in Shanghai
and a plant in Beijing, China. Monsanto also hoped to expand in Thailand, and
entered into a joint venture in Japan with Mitsubishi Chemical Co.
Monsanto's sales in 1992 hit $7.8 million. However, as net income dropped 130%
from 1991 due to several one-time aftertax charges, Monsanto prepared itself for
challenging times. The patent on NutraSweet brand sweetener expired in 1992, and
in preparation for increased competition, Monsanto launched new products, such
as the NutraSweet Spoonful, which came in tabletop serving jars, like sugar.
Monsanto also devoted ongoing research and development to Sweetener 2000, a
high-intensity product.
In 1992, Monsanto denied that it planned to sell G. D. Searle and Co., pointing
out that Searle was a profitable subsidiary that launched many new products.
However, to decrease losses, Monsanto did sell Fisher Controls International
Inc., a subsidiary that manufactures process control equipment. Profits from the
sale were used to buy the Ortho lawn-and-garden business from Chevron Chemical
Co.
Monsanto Reinvents Itself in the 1990s
Monsanto expected to see growth in its agricultural, chemical, and
biotechnological divisions. In 1993, Monsanto and NTGargiulo joined forces to
produce a (GMO) genetically altered tomato. As the decade progressed,
biotechnology played an increasingly important role, eventually emerging as the
focal point of Monsanto's operations. The foray into biotechnology, begun in the
mid-1980s with a $150-million investment in a genetic engineering lab in
Chesterfield, Missouri, had been faithfully supported by further investments in
the ensuing years. Monsanto's efforts finally yielded tangible success in 1993,
when BST was approved for commercial sale after a frustratingly slow FDA
approval process. In the coming years, the development of further biotech
products moved to the forefront of Monsanto's activities, ushering in a period
of profound change. Fittingly, the sweeping, strategic alterations to Monsanto's
focus were preceded by a change in leadership, making the last decade of the
20th century one of the most dynamic eras in Monsanto's history.
Toward the end of 1994, Mahoney announced his retirement, effective the
following year in March 1995. As part of the same announcement, Mahoney revealed
that Robert B. Shapiro, Monsanto's president and chief operating officer, would
be elected by Monsanto's board of directors as his successor. Shapiro, who had
joined Searle in 1979 before being named executive vice-president of Monsanto in
1990, did not waver from exerting his influence over the company he now found
himself presiding over. At the time of his promotion, Shapiro inherited a
company that ranked as the largest domestic ACRYLIC manufacturer in the world,
generating $3 billion of its $7.9 billion in total revenues from
chemical-related sales. This dominant side of Monsanto's business, representing
the foundation upon which it had been built, was eliminated under Shapiro's
stewardship, replaced by a resolute commitment to biotech.
Between the mid-1980s and the mid-1990s, Monsanto had spent approximately $1
billion on developing its biotech business. Although biotech was regarded as a
commercially unproven market by some industry analysts, Shapiro pressed forward
with the research and development of biotech products, and by the beginning of
1996 he was ready to launch Monsanto's first biotech product line. Monsanto
began marketing herbicide-tolerant GMO soybeans, genetically engineered to
resist Monsanto's PATENTED Roundup herbicide, and insect-resistant GMO BT
cotton, beginning with 2,000,000 acres of both crops. By the fall of 1996, there
were early indications that the first harvests of genetically engineered crops
were performing better than expected (yet WORSE results than traditional and
organic crops). News of the encouraging results prompted Shapiro to make a
startling announcement in October 1996, when he revealed that Monsanto was
considering divesting its chemical business as part of a major reorganization
into a life-sciences company.
By the end of 1996, when Shapiro announced he would spin-off the chemical
operations as a separate company, Monsanto faced a future without its core
business, a $3 billion contributor to Monsanto's annual revenue volume. Without
the chemical operations, Monsanto would be reduced to an approximately
$5-billion company deriving half its sales from agricultural products and the
rest from pharmaceuticals and food ingredients, but Shapiro did not intend to
leave it as such. He foresaw an aggressive push into biotech products, a move
that industry pundits generally perceived as astute. "It would be a gamble if
they didn't do it," commented one analyst in reference to the proposed
divestiture. "Monsanto is trying to transform itself into a high-growth
agricultural and life sciences company. Low-growth cyclical chemical operations
do not fit that bill." Spurring Shapiro toward this sweeping reinvention of
Monsanto were enticing forecasts for the market growth of plant biotech
products. A $450 million business in 1995, the market for plant biotech products
was expected to reach $2 billion by 2000 and $6 billion by 2005. Shapiro wanted
to dominate this fast-growing market as it matured by shaping Monsanto into what
he described as the main provider of "Agricultural Biotechnology".
As preparations were underway for the spin-off of Monsanto's chemical operations
into a new, publicly owned company named Solutia Inc., Shapiro was busy filling
the void created by the departure of Monsanto's core business. A flurry of
acquisitions completed between 1995-1997 greatly increased Monsanto's presence
in life sciences, quickly compensating for the revenue lost from the spin-off of
Solutia. Among the largest acquisitions were Calgene, Inc., a leader in plant
biotech, which was acquired in a two-part transaction in 1995 and 1997, and a
40% interest in Dekalb Genetics Corp., the second-largest seed-corn company in
the United States. In 1998, Monsanto acquired the rest of DeKalb, paying $2.3
billion for the Illinois-based company.
By the end of the 1990s, Monsanto bore only partial resemblance to the Monsanto
company that entered the decade. The acquisition campaign that added dozens of
biotechnology companies to its portfolio had created a new, dominant force in
the promising life sciences field, placing Monsanto in a position to reap
massive rewards in the years ahead. For example, a rootworm-resistant strain
under development had the potential to save $1 billion worth of damages to corn
crops per year. Monsanto's pharmaceutical business also faced a promising
future, highlighted by the introduction of a new arthritis medication named
Celebrex in 1999. During its first year, Celebrex registered a record number of
prescriptions. As Monsanto entered the 21st century, however, there were two
uncertainties that loomed as potentially serious obstacles blocking its future
success. The acquisition campaign of the mid- and late-1990s had greatly
increased Monsanto's debt, forcing Monsanto to desperately search for cash.
Secondly, there was growing opposition to genetically altered crops at the
decade's conclusion, prompting the United Kingdom to ban the yields from GMO
crops for a year. A great part of Monsanto's future success depended on the
resolution of these two issues.
Monsanto's Financial History
& Corporate Instability
Monsanto had a difficult time during 2002. Its share price had been steadily
falling and, in spite of an upturn in sales in the fourth quarter, total sales
for 2002 were only $4,673m, compared to $5,462m for 2001. The primary causes,
according to the company, were lower volumes of RoundUp sales in the U.S. due to
drought, lower prices for RoundUp due to it going off-patent and facing
increased competition from competitors, and lower sales of RoundUp and seeds in
Latin America.
Events in Argentina also affected the company in other ways: Monsanto's
Argentine unit lost $154 million in the 2002 fiscal year, due to the collapse of
the Argentine economy and a deepening recession which forced the government to
default on most of its public debt, and devalue the peso in January 2002. The
government also converted what was a dollar economy into a peso economy and, as
a result, Monsanto received devalued pesos for products it had sold in dollars,
slashing its sales income.
In December 2002, CEO Hendrik Verfaillie resigned after he and the board agreed
that his performance had been disappointing and the company had faced extensive
criticism for failing to deal more honestly and effectively with its
difficulties. 'This is a company that has been optimistic on the borderline of
lying,' said Sergey Vasnetsov, senior analyst with Lehman Brothers in New York.
'Monsanto has been feeding us these fantasies for two years, and when we saw
they weren't real,' its stock price fell.
In 2009, Monsanto profited about $2 billion. After much controversy... in 2010,
Monsanto profits dove 50% to about $1 billion. GMO crops are massively failing,
some even seedless at harvest time. Subsidized crops are LOSING MONEY annually.
The USDA is calling it a "yield-drag" but we all know the GMOs do NOT outperform
organic crops... unless you're an accountant for Monsanto.
No matter what weaknesses Monsanto has, it is worth bearing in mind the
following: Global sales of Roundup herbicide exceed those of the next 6 leading
herbicides combined. Monsanto holds the #1 or #2 position in key corn and
soybean markets in North America, Latin America, and Asia. Monsanto also holds a
leading position in the European wheat market. Monsanto is the world leader in
biotechnology crops. Seeds with Monsanto traits accounted for more than 90% of
the acres planted worldwide with herbicide-tolerant or insect-resistant traits
in 2001.
Timeline of Monsanto's Dark History
Sweet 'N Low1901: Monsanto was founded in St. Louis, Missouri by John Francis
Queeny, a 30-year veteran of the pharmaceutical industry. Queeny funded the
start-up with capital from Coca-Cola (saccharin). Founder John Francis Queeny
named Monsanto Chemical Works after his wife, Olga Mendez Monsanto. Queeny's
father in law was Emmanuel Mendes de Monsanto, wealthy financier of a sugar
company active in Vieques, Puerto Rico and based in St. Thomas in the Danish
West Indies.
1902: Monsanto manufactures its first product, the artificial sweetener
Saccharin, which Monsanto sold to the Coca-Cola Company. The U.S. government
later files suit over the safety of Saccharin - but loses.
1904: Queeny persuaded family and friends to invest $15000, Monsanto has strong
ties to The Walt Disney Company, it having financial backing from the Order's
Bank of America founded in Jesuit-ruled San Francisco by Italian-American
Roman-Catholic Knight of Malta Amadeo Giannini.
1905: Monsanto company was also producing caffeine and vanillin and was
beginning to turn a profit.
1906: The government's monopoly on meat regulation began, when in response to
public panic resulting from the publication of Upton Sinclair's The Jungle,
Teddy Roosevelt signed legislation mandating federal meat inspections. Today,
Salatin claims that agricultural regulation favors multinational corporations
such as ConAgra and Monsanto because the treasonous science that supports the
USDA regulatory framework is paid for by these corporations, which continue to
give large grants to leading schools and research facilities.
1908: John Francis Queeny leaves his part-time job as the new branch manager of
another drug house the Powers-Weightman-Rosegarten Company to become Monsanto's
full-time president.
1912: Agriculture again came to the forefront with the creation of the DeKalb
County Farm Bureau, one of the first organizations of its kind. In the 1930s the
DeKalb AgResearch Corporation (today MONSANTO) marketed its first hybrid seed
corn.
1914–1918: During WWI, cut off from imported European chemicals, Monsanto was
forced to manufacture it's own, and it's position as a leading force in the
chemical industry was assured. Unable to import foreign supplies from Europe
during World War I, Queeny turned to manufacturing his own raw materials. It was
then his scientists discovered that the Germans, in anticipation of the war, had
ripped out vital pages from their research books which explained various
chemical processes.
1915: Business expanded rapidly. Monsanto sales surpass the $1,000,000 mark for
the first time.
1917: U.S. government sues Monsanto over the safety of Monsanto's original
product, saccharin. Monsanto eventually won, after several years in court.
1917: Monsanto added more and more products: vanillin, caffeine, and drugs used
as sedatives and laxatives.
1917: Bayer, The German competition cut prices in an effort to drive Monsanto
out of business, but failed. Soon, Monsanto diversified into phenol (a World War
I -era antiseptic), and aspirin when Bayer's German patent expired in 1917.
Monsanto began making aspirin, and soon became the largest manufacturer
world-wide.
1918: With the purchase of an Illinois acid company, Monsanto began to widen the
scope of its factory operations.
Mar 15, 1918: More than 500 of the 750 employees of the Monsanto Chemical Works,
which has big contracts for the Government, went on strike, forcing the plant to
dose down.
Aug 15, 1919: Thereafter much of it was declared surplus, and a contract was
entered into with the Monsanto Chemical Co., of St. Louis, Mo., by which
contract the Director of Sales authorized the Monsanto Co. to sell for the
United States its surplus phenol, estimated at 27521242 pounds, for a market
price to be fixed from time to time by the representative of the contracting
officer of the United States, but with a minimum price of 9 cents a pound.
1919: Monsanto established its presence in Europe by entering into a partnership
with Graesser's Chemical Works at Cefn Mawr near Ruabon, Wales to produce
vanillin, salicylic acid, aspirin and later rubber.
1920s: In its third decade, Monsanto expanded into basic industrial chemicals
like sulfuric acid and other chemicals.
Jan 5, 1920: The petitioner was authorized to sell two tracts of land in the
Common Fields of Cahokia, St. Clair County, containing 2.403 acres and 3.46
acres respectively, to the Monsanto Chemical Works for the sum of $1500.
1920-1921: A postwar depression during the early 1920s affected profits, but by
the time John Queeny turned over Monsanto to Edgar in 1928 the financial
situation was much brighter.
1926: Environmental policy was generally governed by local governments, Monsanto
Chemical Company founded and incorporated the town of Monsanto, later renamed
Sauget, Illinois, to provide a more business friendly environment for one of its
chemical plants. For years, the Monsanto plant in Sauget was the nation's
largest producer of polychlorinated biphenyls (PCBs). And although
polychlorinated biphenyls (PCBs) were banned in the 1970s, they remain in the
water along Dead Creek in Sauget.
1927: Monsanto had over 2,000 employees, with offices across the country and in
England.
1927: Shortly after its initial listing on the New York Stock Exchange, Monsanto
moved to acquire 2 chemical companies that specialized in rubber. Other
chemicals were added in later years, including detergents.
1928: John Queeny's son Edgar Monsanto Queeny takes over the Monsanto company.
Monsanto had gone public, a move that paved the way for future expansion. At
this time, Monsanto had 55 shareholders, 1,000 employees, and owned a small
company in Britain.
1929: Monsanto acquires Rubber Services Laboratories. Charlie Sommer joined
Monsanto, and later became president of Monsanto in 1960.
October 1929: The folks at Monsanto Co. fished through their records, but they
couldn't find out why the company's symbol is MTC. Monsanto went public in
October 1929, just a few days before the great stock market crash. Some symbols
are holdovers from the 19th century, when telegraph operators used single-letter
symbols for the most active stocks to conserve wire space, says the New York
Stock Exchange. Mergers, acquisitions and failure have caused many single-letter
symbols to change
1929: Monsanto began production of PCBs (polychlorinated biphenyls) in the
United States. PCBs were considered an industrial wonder chemical - an oil that
would not burn, was impervious to degradation and had almost limitless
applications. Today PCBs are considered one of the gravest chemical threats on
the planet. PCBs, widely used as lubricants, hydraulic fluids, cutting oils,
waterproof coatings and liquid sealants, are potent carcinogens and have been
implicated in reproductive, developmental and immune system disorders. The
world's center of PCB manufacturing was Monsanto's plant on the outskirts of
East St. Louis, Illinois, which has the highest rate of fetal death and immature
births in the state.
Monsanto PiratesMonsanto produced PCBs for over 50 years and they are now
virtually omnipresent in the blood and tissues of humans and wildlife around the
globe - from the polar bears at the north pole to the penguins in Antarctica.
These days PCBs are banned from production and some experts say there should be
no acceptable level of PCBs allowed in the environment. The U.S. Environmental
Protection Agency says, gPCB has been demonstrated to cause cancer, as well as a
variety of other adverse health effects on the immune system, reproductive
system, nervous system and endocrine system.h But the evidence of widespread
contamination from PCBs and related chemicals has been accumulating from 1965
onwards and internal company papers show that Monsanto knew about the PCB
dangers from early on.
The PCB problem was particularly severe in the town of Anniston in Alabama where
discharges from the local Monsanto plant meant residents developed PCB levels
hundreds or thousands of times the average. As The Washington Post reported,
"for nearly 40 years, while producing the now-banned industrial coolants known
as PCBs at a local factory, Monsanto Co. routinely discharged toxic waste into a
west Anniston creek and dumped millions of pounds of PCBs into oozing open-pit
landfills. And thousands of pages of Monsanto documents : many emblazoned with
warnings such as 'CONFIDENTIAL: Read and Destroy' : show that for decades, the
corporate giant concealed what it did and what it knew."
Ken Cook of the Environmental Working Group says that based on the Monsanto
documents made public, Monsanto "knew the truth from the very beginning. They
lied about it. They hid the truth from their neighbors." One Monsanto memo
explains their justification: "We can't afford to lose one dollar of business."
Eventually Monsanto was found guilty of conduct "so outrageous in character and
extreme in degree as to go beyond all possible bounds of decency so as to be
regarded as atrocious and utterly intolerable in civilized society".
1930s: DeKalb AgResearch Corporation (today MONSANTO) marketed its first
**HYBRID** seed corn (maize).
1933: Incorporated as Monsanto Chemical Company
1934: "I recognized my two selves: a crusading idealist and a cold, granitic
believer in the law of the jungle" - Edgar Monsanto Queeny, Monsanto chairman,
1943-63, "The Spirit of Enterprise"
1935: Edward O'Neal (who became chairperson in 1964) came to Monsanto with the
acquisition of the Swann Corporation. Monsanto goes into the soap and detergents
industry, starts producing phosphorus.
1938: Monsanto goes into the plastic business (the year after DuPont helped ban
hemp because it was superior to their new NYLON product made from Rockefeller
OIL). Monsanto became involved in plastics when it completely took over
Fiberloid, one of the oldest nitrocellulose production companies, which had a
50% stake in Shawinigan Resins.
1939: Monsanto purchased Resinox, a subsidiary of Corn Products, and Commercial
Solvents, which specialized in phenolic resins. Thus, just before the war,
Monsanto's plastics interests included phenol-formaldehyde thermosetting resins,
cellulose and vinyl plastics.
1939-1945: Monsanto conducts research on uranium for the Manhattan Project in
Dayton, Ohio. Dr. Charles Thomas, who later served as Monsanto's chairman of the
board, was present at the first test explosion of the atomic bomb. During World
War II, Monsanto played a significant role in the Manhattan Project to develop
the atom bomb. Monsanto operated the Dayton Project, and later Mound
Laboratories in Miamisburg, Ohio, for the Manhattan Project, the development of
the first nuclear weapons and, after 1947, the Atomic Energy Commission.
1940s: Monsanto had begun focusing on plastics and synthetic fabrics like
polystyrene (still widely used in food packaging and other consumer products),
which is ranked 5th in the EPA's 1980s listing of chemicals whose production
generates the most total hazardous waste. From the 1940s onwards Monsanto was
one of the top 10 US chemical companies.
1941: By the time the United States entered World War II, the domestic chemical
industry had attained far greater independence from Europe. Monsanto,
strengthened by its several acquisitions, was also prepared to produce such
strategic materials as phosphates and inorganic chemicals. Most important was
Monsanto's acquisition of a research and development laboratory called Thomas
and Hochwalt. The well-known Dayton, Ohio, firm strengthened Monsanto at the
time and provided the basis for some of its future achievements in chemical
technology. One of its most important discoveries was styrene monomer, a key
ingredient in synthetic rubber and a crucial product for the armed forces during
the war. Edward J. Bock joined Monsanto in 1941 as an engineer - he rose through
the ranks to become a member of the board of directors in 1965 and president in
1968.
1943: Massive Texas City plant starts producing synthetic rubber for the Allies
in World War II.
1944: Monsanto began manufacturing DDT, along with some 15 other companies. The
use of DDT in the U.S. was banned by Congress in 1972.
1945: Following WW2, Monsanto championed the use of chemical pesticides in
agriculture, and began manufacturing the herbicide 2,4,5-T, which contains
dioxin. Monsanto has been accused of covering up or failing to report dioxin
contamination in a wide range of its products.
1949: Monsanto acquired American Viscose from England's Courtauld family.
1950: Monsanto began to produce urethane foam - which was flexible, easy to use,
and later became crucial in making automobile interiors.
1953: Toxicity tests on the effects of 2 PCBs showed that more than 50% of the
rats subjected to them DIED, and ALL of them showed damage.
1954: Monsanto partnered with German chemical giant Bayer to form Mobay and
market polyurethanes in the USA.
1955: Monsanto acquired Lion Oil refinery, increasing its assets by more than
50%. Stockholders during this time numbered 43,000. Monsanto starts producing
petroleum-based fertilizer.
1957: Monsanto moved to the suburban community of Creve Coeur, having finally
outgrown its headquarters in downtown St. Louis, Missouri.
1957-1967: Monsanto was the creator of several attractions in Disney's
Tommorrowland. Often they revolved around the the virtues of chemicals and
plastics. Their "House of the Future" was constructed entirely of plastic, but
it was NOT biodegradable. "After attracting a total of 20 million visitors from
1957 to 1967, Disney finally tore the house down, but discovered it would not go
down without a fight. According to Monsanto Magazine, wrecking balls literally
bounced off the glass-fiber, reinforced polyester material. Torches,
jackhammers, chain saws and shovels did not work. Finally, choker cables were
used to squeeze off parts of the house bit by bit to be trucked away."
1959: Monsanto sets up Monsanto Electronics Co. in Palo Alto, begins producing
ultra-pure silicon for the high-tech industry, in an area which would later
become a Superfund site.
1960: Edgar Queeny turned over the chair of Monsanto to Charles Thomas, one of
the founders of the research and development laboratory so important to
Monsanto. Charlie Sommer, who had joined Monsanto in 1929, became president.
According to Monsanto historian Dan Forrestal, "Leadership during the 1960s and
early 1970s came principally from ... executives whose Monsanto roots ran deep."
Under their combined leadership Monsanto saw several important developments,
including the establishment of the Agricultural Chemicals division with focus on
herbicides, created to consolidate Monsanto's diverse agrichemical product
lines.
agent orange1961-1971: Agent Orange was a mixture of 2,4,5-T and 2,4-D and had
very high concentrations of dioxin. Agent Orange was by far the most widely used
of the so-called "Rainbow Herbicides" employed in the Herbicidal Warfare program
as a defoliant during the Vietnam War. Monsanto became one of 10-36 producers of
Agent Orange for US Military operations in Vietnam. Dow Chemical and Monsanto
were the two largest producers of Agent Orange for the U.S. military. The Agent
Orange produced by Monsanto had dioxin levels many times higher than that
produced by Dow Chemicals, the other major supplier of Agent Orange to Vietnam.
This made Monsanto the key defendant in the lawsuit brought by Vietnam War
veterans in the United States, who faced an array of debilitating symptoms
attributable to Agent Orange exposure. Agent Orange is later linked to various
health problems, including cancer. U.S. Vietnam War veterans have suffered from
a host of debilitating symptoms attributable to Agent Orange exposure. Agent
Orange contaminated more than 3,000,000 civilians and servicemen. According to
Vietnamese Ministry of Foreign Affairs, 4.8 million Vietnamese people were
exposed to Agent Orange, resulting in 400,000 deaths and disabilities, plus
500,000 children born with birth defects, leading to calls for Monsanto to be
prosecuted for war crimes. Internal Monsanto memos show that Monsanto knew of
the problems of dioxin contamination of Agent Orange when it sold it to the U.S.
government for use in Vietnam. Look at what the "EFFECTS" of agent orange look
like... keep in mind it was used to remove leaves from the trees where AMERICAN
SOLDIERS were breathing, eating, sleeping.
1962: Public concern over the environment began to escalate. Ralph Nader's
activities and Rachel Carson's book Silent Spring had been influential in
increasing the U.S. public's awareness of activities within the chemical
industry in the 1960s, and Monsanto responded in several ways to the pressure.
1962: Monsanto's European expansion continued, with Brussels becoming the
permanent overseas headquarters.
1964: Monsanto changed its name to Monsanto Company in acknowledgment of its
diverse product line. The company consisted of 8 divisions, including petroleum,
fibers, building materials, and packaging. Edward O'Neal became chairperson
(came to Monsanto in 1935 with the acquisition of the Swann Corporation) was the
first chair in Monsanto history who had not first held the post of president.
1964: Monsanto introduced "biodegradable" detergents.
1965: While working on an ulcer drug in December, James M. Schlatter, a chemist
at G.D. Searle & Company, accidentally discovers aspartame, a substance that is
180x sweeter than sugar yet has no calories.
Monsanto Astroturf
1965: AstroTurf (fake grass) was co-invented by Donald L. Elbert, James M. Faria,
and Robert T. Wright, employees of Monsanto Company. It was patented in 1967 and
originally sold under the name "Chemgrass". It was renamed AstroTurf by Monsanto
employee John A. Wortmann after its first well-publicized use at the Houston
Astrodome stadium in 1966.
1965: The evidence of widespread contamination from PCBs and related chemicals
has been accumulating and internal Monsanto papers show that Monsanto knew about
the PCB dangers from early on.
1967: Monsanto entered into a joint venture with IG Farben = the German chemical
firm that was the financial core of the Hitler regime, and was the main supplier
of Zyklon-B gas to the German government during the extermination phase of the
Holocaust; IG Farben was not dissolved until 2003.
1967: Searle began the safety tests on aspartame that were necessary for
applying for FDA approval of food additives. Dr. Harold Waisman, a biochemist at
the University of Wisconsin, conducts aspartame safety tests on infant monkeys
on behalf of the Searle Company. Of the 7 monkeys that were being fed aspartame
mixed with milk, 1 monkey DIED and 5 other monkeys had grand mal seizures.
1968: Edgar Queeny dies, leaving no heirs. Edward J. Bock (who had joined
Monsanto in 1941 as an engineer) become a member of the board of directors in
1965, and became president of Monsanto in 1968.
1968: With experts at Monsanto in no doubt that Monsanto's PCBs were responsible
for contamination, Monsanto set up a committee to assess its options. In a paper
distributed to only 12 people but which surfaced at the trial in 2002, Monsanto
admitted "that the evidence proving the persistence of these compounds and their
universal presence as residues in the environment is beyond question ... the
public and legal pressures to eliminate them to prevent global contamination are
inevitable". Monsanto papers seen by The Guardian newspaper reveal near panic.
"The subject is snowballing. Where do we go from here? The alternatives: go out
of business; sell the hell out of them as long as we can and do nothing else;
try to stay in business; have alternative products", wrote the recipient of one
paper.
1968: Monsanto became the first organization to mass-produce visible LEDs, using
gallium arsenide phosphide to produce red LEDs suitable for indicators. Light
Emitting Diodes (LEDs) ushered in the era of solid-state lights. From 1968 to
1970, sales doubled every few months. Their products (discrete LEDs and
seven-segment numeric displays) became the standards of industry. The primary
markets then were electronic calculators, digital watches, and digital clocks.
1969: High overhead costs and a sluggish national economy led to a dramatic 29%
decrease in earnings.
1969: Monsanto wrote a confidential Pollution Abatement Plan which admitted that
"the problem involves the entire United States, Canada and sections of Europe,
especially the UK and Sweden".
1969: Monsanto produces Lasso herbicide, better known as Agent Orange, which was
used as defoliant by the U.S. Government during the Vietnam War. "[Lasso's]
success turns around the struggling Agriculture Division," Monsanto's web page
reads.
1970s: Monsanto was a pioneer of optoelectronics in the 1970s. Although Bock had
a reputation for being a committed Monsanto executive, several factors
contributed to his volatile term as president. Sales were up in 1970, but Bock's
implementation of the 1971 reorganization caused a significant amount of
friction among members of the board and senior management. In spite of the fact
that this move, in which Monsanto separated the management of raw materials from
Monsanto's subsidiaries, was widely praised by security analysts, Bock resigned
from the presidency in February 1972.
1970: Cyclamate (the reigning low-calorie artificial sweetener) is pulled off
the market in November after some scientists associate it with cancer. Questions
are also raised about safety of saccharin, the only other artificial sweetener
on the market, leaving the field wide open for aspartame.
Pillsbury's Funny Face Rootin'-Tootin' Raspberry Cyclamate Kool-aid
Diet Dr. Pepper Saccharine CAUSES Cancer in laboratory animals
December 18, 1970: Searle Company executives lay out a "Food and Drug Sweetener
Strategy" that they feel will put the FDA into a positive frame of mind about
aspartame. An internal policy memo describes psychological tactics Monsanto
should use to bring the FDA into a subconscious spirit of participation" with
them on aspartame and get FDA regulators into the "habit of saying Yes."
1971: Neuroscientist Dr. John Olney (whose pioneering work with monosodium
glutamate MSG was responsible for having it removed from baby foods) informs
Searle that his studies show that aspartic acid (one of the ingredients of
aspartame) caused holes in the brains of infant mice. One of Searle's own
researchers confirmed Dr. Olney's findings in a similar study.
Monsanto ROundup Herbicide KILLS ALL ORGANICS!1972: The use of DDT was banned by
U.S. Congress, due in large part to efforts by environmentalists, who persisted
in the challenge put forth by Rachel Carson's book Silent Spring in 1962, which
sought to inform the public of the side effects associated with the insecticide,
which had been much-welcomed in the fight against malaria-transmitting
mosquitoes.
1973: Monsanto developed and patented the glyphosate molecule in the 1970s.
Monsanto began manufacturing the herbicide Roundup, which has been marketed as a
"safe", general-purpose herbicide for widespread commercial and consumer use,
even though its key ingredient, glyphosate, is a highly toxic poison for animals
and humans.
1973: After spending tens of millions of dollars conducting safety tests, the
G.D. Searle Company applies for FDA approval and submits over 100 studies they
claim support aspartame's safety. One of the first FDA scientists to review the
aspartame safety data states that "the information provided (by Searle) is
inadequate to permit an evaluation of the potential toxicity of aspartame". She
says in her report that in order to be certain that aspartame is safe, further
clinical tests are needed.
1974: Attorney Jim Turner (consumer advocate who was instrumental in getting
cyclamate taken off the market) meets with Searle representatives in May to
discuss Dr. Olney's 1971 study which showed that aspartic acid caused holes in
the brains of infant mice.
1974: The FDA grants aspartame its first approval for restricted use in dry
foods on July 26.
1974: Jim Turner and Dr. John Olney file the first objections against
aspartame's approval in August.
1975: After a 9-month search, John W. Hanley, a former executive with Procter &
Gamble, was chosen as president. Hanley also took over as chairperson.
1976: The success of the herbicide Lasso had turned around Monsanto's struggling
Agriculture Division, and by the time Agent Orange was banned in the U.S. and
Lasso was facing increasing criticism, Monsanto had developed the weedkiller
"Roundup" (active ingredient: glyphosate) as a replacement. Launched in 1976,
Roundup helped make Monsanto the world's largest producer of herbicides. RoundUp
was commercialized, and became the world's top-selling herbicide. Within a few
years of its 1976 launch, Roundup was being marketed in 115 countries.
The success of Roundup coincided with the recognition by Monsanto executives
that they needed to radically transform a company increasingly under threat.
According to a recent paper by Dominic Glover, "Monsanto had acquired a
particularly unenviable reputation in this regard, as a major producer of both
dioxins and polychlorinated biphenyls (PCBs) - both persistent environmental
pollutants posing serious risks to the environment and human health. Law suits
and environmental clean-up costs began to cut into Monsanto's bottom line, but
more seriously there was a real fear that a serious lapse could potentially
bankrupt the company." According to Glover, Roundup "Sales grew by 20% in 1981
and as the company increased production it was soon Monsanto's most profitable
product (Monsanto 1981, 1983)... It soon became the single most important
product of Monsanto's agriculture division, which contributed about 20% of sales
and around 45% of operating income to the company's balance sheet each year
during the late 1980s and early 1990s. Today, glyphosate remains the world's
biggest herbicide by volume of sales."
1976: Monsanto produces Cycle-Safe, the world's first plastic soft-drink bottle.
The bottle, suspected of posing a cancer risk, is banned the following year by
the Food and Drug Administration.
1976: Turner & Olney's petition on March 24 triggers an FDA investigation of the
laboratory practices of aspartame's manufacturer, G.D. Searle. The investigation
finds Searle's testing procedures shoddy, full of inaccuracies and "manipulated"
test data. The investigators report they "had never seen anything as bad as
Searle's testing."
January 10, 1977: The FDA formally requests the U.S. Attorney's office to begin
grand jury proceedings to investigate whether indictments should be filed
against Searle for knowingly misrepresenting findings and "concealing material
facts and making false statements" in aspartame safety tests. This is the first
time in the FDA's history that they request a criminal investigation of a
manufacturer.
January 26, 1977: While the grand jury probe is underway, Sidley & Austin, the
law firm representing Searle, begins job negotiations with the U.S. Attorney in
charge of the investigation, Samuel Skinner.
Donald Rumsfeld, Ford, Bush, and Monsanto Employee
March 8, 1977: G. D. Searle hires prominent Washington insider Donald Rumsfeld
as the new CEO to try to turn the beleaguered company around. A former Member of
Congress and Secretary of Defense in the Ford Administration, Rumsfeld brings in
several of his Washington cronies as top management. Donald Rumsfeld followed
Searle as CEO, and then as President of Searle from 1977-1985.
July 1, 1977: Samuel Skinner leaves the U.S. Attorney's office on July 1st and
takes a job with Searle's law firm. (see Jan. 26th)
August 1, 1977: The Bressler Report, compiled by FDA investigators and headed by
Jerome Bressler, is released. The report finds that 98 of the 196 animals died
during one of Searle's studies and weren't autopsied until later dates, in some
cases over one year after death. Many other errors and inconsistencies are
noted. For example, a rat was reported alive, then dead, then alive, then dead
again; a mass, a uterine polyp, and ovarian neoplasms were found in animals but
not reported or diagnosed in Searle's reports.
December 8, 1977: U.S. Attorney Skinner's withdrawal and resignation stalls the
Searle grand jury investigation for so long that the statue of limitations on
the aspartame charges runs out. The grand jury investigation is dropped.
(borderline treason)
1979: The FDA established a Public Board of Inquiry (PBOI) in June to rule on
safety issues surrounding NutraSweet.
1980: September 30, FDA Board of Inquiry comprised of 3 independent scientists,
confirmed that aspartame "might induce brain tumors". The Public Board of
Inquiry concludes NutraSweet should not be approved pending further
investigations of brain tumors in animals. The board states it "has NOT been
presented with proof of reasonable certainty that aspartame is safe for use as a
food additive." The FDA had actually banned aspartame based on this finding,
only to have Searle Chairman Donald Rumsfeld (Ford's Secretary of Defense
1975-1977, Bush's Secretary of Defense 2001-2006) vow to "call in his markers,"
to get it approved in 1981.
1980: Monsanto established the Edgar Monsanto Queeny safety award in honor of
its former CEO (1928–1960), to encourage accident prevention.
January 1981: Donald Rumsfeld, CEO of Searle, states in a sales meeting that he
is going to make a big push to get aspartame approved within the year. Rumsfeld
says he will use his political pull in Washington, rather than scientific means,
to make sure it gets approved.
May 19, 1981: 3 of 6 in-house FDA scientists who were responsible for reviewing
the brain tumor issues, Dr. Robert Condon, Dr. Satya Dubey, and Dr. Douglas
Park, advise against approval of NutraSweet, stating on the record that the
Searle tests are unreliable and not adequate to determine the safety of
aspartame.
Equal aspartame sweetner1981: Ronald Reagan is sworn in as President of the
United States. Reagan's transition team, which includes Donald Rumsfeld, CEO of
G. D. Searle, hand picks Dr. Arthur Hull Hayes Jr. to be the new FDA
Commissioner. On January 21, the day after Ronald Reagan's inauguration, GD
Searle re-applied to the FDA for approval to use aspartame in food sweetener,
and Reagan's new FDA commissioner, Arthur Hayes Hull, Jr., appointed a 5-person
Scientific Commission to review the board of inquiry's decision. It soon became
clear that the panel would uphold the ban by a 3-2 decision, but Hull then
installed a 6th member on the commission, and the vote became deadlocked. He
then personally broke the tie in aspartame's favor. Hull later left the FDA
under allegations of impropriety, served briefly as Provost at New York Medical
College, and then took a position with Burston-Marsteller, the chief public
relations firm for both Monsanto and GD Searle. Since that time Hull has never
spoken publicly about aspartame.
July 15, 1981: In one of his first official acts, Dr. Arthur Hayes Jr., the new
FDA commissioner, overrules the Public Board of Inquiry, ignores the
recommendations of his own internal FDA team and approves NutraSweet for dry
products. Hayes says that aspartame has been shown to be safe for its' proposed
uses and says few compounds have withstood such detailed testing and repeated
close scrutiny. G.D. Searle gets FDA approval for aspartame (NutraSweet).
Monsanto completes its acquisition of Searle in 1985.
1982: Monsanto GMO scientists genetically modify a plant cell for the first
time!
1982: Some 2,000 people are relocated from Times Beach, Missouri, which was
found to be so thoroughly contaminated with dioxin, a by-product of PCB
manufacturing, that the government ordered it evacuated. Dioxins are endocrine
and immune system disruptors, cause congenital birth defects, reproductive and
developmental problems, and increase the incidence of cancer, heart disease and
diabetes in laboratory animals. Critics say a St. Louis-area Monsanto chemical
plant was a source but Monsanto denies any connection.
October 15, 1982: The FDA announces that GD Searle has filed a petition that
aspartame be approved as a sweetener in carbonated beverages and other liquids.
July 1, 1983: The National Soft Drink Association (NSDA) urges the FDA to delay
approval of aspartame for carbonated beverages pending further testing because
aspartame is very unstable in liquid form. When liquid aspartame is stored in
temperatures above 85‹F degrees Fahrenheit, aspartame breaks down into known
toxins Diketopiperazines (DKP), methyl (wood) alcohol, and formaldehyde.
July 8, 1983: The National Soft Drink Association drafts an objection to the
final ruling which permits the use of aspartame in carbonated beverages and
syrup bases and requests a hearing on the objections. The association says that
Searle has not provided responsible certainty that aspartame and its'
degradation products are safe for use in soft drinks.
August 8, 1983: Consumer Attorney, Jim Turner of the Community Nutrition
Institute and Dr. Woodrow Monte, Arizona State University's Director of Food
Science and Nutritional Laboratories, file suit with the FDA objecting to
aspartame approval based on unresolved safety issues.
September, 1983: FDA Commissioner Hayes resigns under a cloud of controversy
about his taking unauthorized rides aboard a General Foods jet. (General foods
is a major customer of NutraSweet) Burson-Marsteller, Searle's public relation
firm (which also represented several of NutraSweet's major users), immediately
hires Hayes as senior scientific consultant.
Fall 1983: The first carbonated beverages containing aspartame are sold for
public consumption.
Aspartame Pop
1983: Diet Coke was sweetened with aspartame after the sweetener became
available in the United States.
November 1984: Center for Disease Control (CDC) "Evaluation of consumer
complaints related to aspartame use." (summary by B. Mullarkey)
The NutraSweet Company1985: Monsanto purchased G.D. Searle, the chemical company
that held the patent to aspartame, the active ingredient in NutraSweet. Monsanto
was apparently untroubled by aspartame's clouded past, including a 1980 FDA
Board of Inquiry, comprised of three independent scientists, which confirmed
that it "might induce brain tumors". The aspartame business became a separate
Monsanto subsidiary, the NutraSweet Company.
1986: Monsanto found guilty of negligently exposing a worker to benzene at its
Chocolate Bayou Plant in Texas. It is forced to pay $100 million to the family
of Wilbur Jack Skeen, a worker who died of leukemia after repeated exposures.
1986: At a congressional hearing, medical specialists denounce a National Cancer
Institute study disputing that formaldehyde causes cancer. Monsanto and DuPont
scientists helped with the study, whose author provided results to the
Formaldehyde Institute industry representatives nearly six months before
releasing the study to the EPA, labor unions, and the public.
1986: Monsanto spends $50,000 against California's anti-toxics initiative,
Proposition 65. The initiative prohibits the discharge of chemicals known to
cause cancer or birth defects into drinking water supplies.
1987: Monsanto conducted the first field tests of genetically engineered (GMO)
crops.
1987: Monsanto is one of the companies named in an $180 million settlement for
Vietnam War veterans exposed to Agent Orange.
1987: Monsanto consolidated its AstroTurf management, marketing, and technical
activities in Dalton, Georgia, as AstroTurf Industries, Inc.
November 3, 1987: U.S. hearing, "NutraSweet: Health and Safety Concerns,"
Committee on Labor and Human Resources, Senator Howard Metzenbaum, chairman.
1988: A federal jury finds Monsanto Co.'s subsidiary, G.D. Searle & Co.,
negligent in testing and marketing of its Copper 7 intrauterine birth control
device (IUD). The verdict followed the unsealing of internal documents regarding
safety concerns about the IUD, which was used by nearly 10 million women between
1974 and 1986.