In 1968, Waste Managment, Inc., was formed by the combination of three
smaller companies. Those companies were Ace Scavenger Service and Acme
Disposal Company of Chicago, and Southern Sanitation Service of Fort
Lauderdale, Florida.
Ace Scavenger Service was owned and operated by Dean and Elizabeth Huizenga
Buntrock. Southern Sanitation Service was owned by Mrs. Buntrock's cousin,
Wayne Huizenga. The main principle of the third company, Acme Disposal, was
Lawrence Beck. Dean Buntrock, Huizenga and Beck became the principal officers of the corporation with Mr. Buntrock as chairman of the board and president.
The company is incorporated under the laws of the State of Delaware and its
headquarters are located in Oak Brook, Illinois (a suburb of Chicago). The
company went public in 1971 and since that time has exhibited an aggressive
and rapid rate of growth. The primary method of expansion has been acquiring
and assimilating smaller waste hauling companies. Once having acquired a
smaller company as a subisidiary, it was the general practice to maintain
the management of that company in place.
A number of these subsidiaries have continued to do business under their
origninal business titles. An example of the rate of growth of the company
can be seen in its corporate acquisitions from 1980 through 1986. During that
period, the company acquired over 350 businesses involving the transfer of
over $250,000,000 and 5.5 million shares of stock.
Waste Management, Inc., is currently the largest waste disposal firm in the
world, with operations throughout the United States, Europe, Asia, Latin
America and the Middle East. The company's operations include municipal and
rural trash cartage, hazardous waste cartage, the operation of waste
landfills, hazardous waste incineration and municipal recycling programs.
In 1990, its revenues exceeded $6.03 billion, with earnings of $684.8 million.
In addition to the proposed Gregory Canyon landfill project, Waste Management
has a considerable presence in San Diego County which include the following
companies: Waste Management of San Diego, Waste Management of North County,
Universal Refuse Removal of EI Cajon, Independent Waste of Fallbrook, and
Oceanside Disposal
Since its establishment, Waste Management, Inc., and its subsidiaries have
been defendants in a significant number of legal actions involving environmental
violations. Most of these alleged violations arose from operations involved
with the storage and incineration of hazardous wastes.
The fines and assessments levied as a result of these environmental law
violations have totaled millions of dollars. For instance, the combined fines
and civil settlements levied in cases involving Waste Management sites
located at Vickery, Ohio, and Emelle, Alabama, have amounted to over
$30 million.
This figure does not include the amount of money spent by Waste Management in
defending itself.
It is estimated that since 1980 the company has paid over $43 million in
fines, penalties and out-of-court settlements related to alleged violations
of environmental laws at its dump sites. At least forty-five Waste Management
owned or operated waste sites have been found to be out of compliance with
Federal or State environmental regulations, and at least five sites have been
ordered closed by regulatory agencies.
Greenpeace has also reported that between 1980 and 1983 over 547 citations and
orders related to pollution violations were issued against Waste Management.
Between 1984 and 1987 the number of citations and orders were estimated to
have increased to 632.
A 1989 United States Securities and Exchange Commission (SEC) report related
that Waste Management had admitted that it was under United States Environmental Protection Agency (EPA)
investigation in eighty-nine Superfund cases.
Its subsidiary, Chemical Waste Management, was involved in twenty-five Superfund investigations.
To what degree these investigations may affect the company's ability to
financially underwrite future environmental damages is unknown, but the
ability to acquire liability insurance could be impacted. Citizen's
Clearinghouse For Hazardous Wastes, Inc., has reported that the terms of its
major policy require the company to indemnify its insurer for any losses.
The effect is more akin to an open letter of credit than an insurance policy.
In its 1990 report to stockholders, Waste Management, Inc., stated that if
"the company continues to be unsuccessful in obtaining risk transfer
Environmental Impairment Liability Insurance coverage, the company's net
income could be adversely affected."
