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Texaco executives used racial slurs, court papers show

tape using racial epithets against minority workers while discussing how to destroy documents relevant to a race-discrimination lawsuit, court papers say.

Papers filed in federal court say the executives were recorded in August 1994 by a colleague, Richard A. Lundwall, who also spoke on the tapes. Lundwall, after being let go by Texaco, provided the tapes to the plaintiffs in the discrimination suit, an affidavit says.

Excerpts included in the court papers, filed last week, show executives calling black workers "black jelly beans'' and "niggers''.

Daniel L. Berger, a lawyer for the plaintiffs, said yesterday that if the tapes convince the court that documents were destroyed, sanctions against White Plains-based Texaco "could range from fines to losing the case.'' "If we're correct that they've destroyed relevant documents, that could be it,'' the lawyer said.

Texaco issued a statement yesterday saying, "If these allegations are true, they represent an outrageous violation of the company's core values and principles. Any such conduct is deplorable and will never be tolerated by Texaco.'' It said that if its own investigation finds the allegations to be true, Texaco "will take appropriate disciplinary action against the employees, which could include termination.'' Lundwall, who was senior coordinator of personnel services in Texaco's finance department, told lawyers that he taped some meetings with senior executives without their knowledge to ensure that his minutes were accurate.

He said the meetings were meant to discuss "what can we do to enhance Texaco's position in minority representation''.

A call to Lundwall's lawyer, Peter Gass, was not immediately returned yesterday.

The speakers who were recorded were identified by Lundwall at a meeting with a lawyer for the plaintiffs, according to court papers.

In a reference to one key document, a man identified as Robert Ulrich, Texaco's treasurer, was heard saying on the tape: "All it could do is get us in trouble. That's the way I feel. I would not keep anything.'' During another point in the conversation, Ulrich, who retired last year, talked about the employees who filed the lawsuit.

"This diversity thing, you know how all the black jelly beans agree,'' he said.

"That's funny,'' Lundwall replied. "All the black jelly beans seem to be glued to the bottom of the bag.'' The class-action lawsuit was filed by black employees who work in Texaco's finance department on behalf of 1,500 blacks who work at the company. They claimed they were denied promotions and advancement opportunities because of their race.

In June, the federal Equal Employment Opportunity Commission found that the oil company had granted significantly fewer promotions between 1992 and 1994 to blacks than to other workers.