The Cincinnati Enquirer from Cincinnati, Ohio on September 21, 1991 · Page 25
Get access to this page with a Free Trial
Click to view larger version
September 21, 1991

A Publisher Extra Newspaper

The Cincinnati Enquirer from Cincinnati, Ohio · Page 25

Publication:
Location:
Cincinnati, Ohio
Issue Date:
Saturday, September 21, 1991
Page:
Page 25
Cancel
Start Free Trial

Page 25 article text (OCR)

BUSINESS NEWS: 369-1962 THE CINCINNATI ENQUIRER SATURDAY, SEPTEMBER 21, 1991 C-5 o)n Amex stocksC-6 Mutual fundsC-6 D) O NYSE stocksC-7 NASDAQ sdcctC-8 More violations at Salomon Building Technologies files for reorganization volved the submission of two unauthorized bids in customer names by the firm's government bond trading desk the same type of misconduct the firm previously admitted to. Ml S : K-,f : 2 other bids unapproved BY STEFAN FATSIS The Associated Press NEW YORK - Salomon Inc. on Friday revealed two more instances of cheating in government bond auctions and said it expected to find more wrongdoing. The admissions widen the scope of violations at the Wall Street firm, which is battling waves of negative news threatening its investors' confidence. In a one-page statement, Salomon said the new violations in of a large British Telecommunications PLC stock sale in November. The Manhattan U.S. Attorney's Office, the Justice Department's antitrust division, the Securities and Exchange Commission, the Treasury Department and other authorities are probing Salomon. In its statement, Salomon said the latest violations were discovered after reviewing documents from government authorities that were not in Salomon's files. "It seems to us likely that still other instances of similar behavior will be uncovered in the future through our internal review or by the investigating authorities," Salomon said. Salomon said the infractions were reported promptly to government authorities once it discovered them. Top executives, including former chairman John. H. Gutfreund, delayed reporting the initial violations several months. Salomon on Aug. 9 disclosed breaking federal rules governing auctions in the $2.2 trillion market for Treasury notes, bills and bonds at five auctions from December 1990 through May. The government raises money with the Treasury market to finance the public debt. On Friday, Britain announced it had replaced Salomon Brothers Inc., the firm's brokerage subsidiary, with Goldman Sachs & Co. as lead manager for the U.S. portion Gutfreund ply unable to service its debt,' according to president Frank Chapman. Chapman reported business was off 25 last year and the company was strapped despite reducing its work force, cutting; operating expenses, shutting down two plants and selling off non-strategic businesses. Last year, Building Technologies ranked as 12th largest private company in The Enquirer's Cincinnati 100 list. But if has shrunk from 1,200 employees in 1989 to 388 today, at its Mason headquarters and Washington Court House plant. BY JEFF HARRINGTON The Cincinnati Enquirer A day after filing for bankruptcy reorganization, Mason-based Building Technologies Corp. said Friday it planned a "significant layoff" of its remaining salaried work force. The 67-year-old firm, which makes pre-engineered building systems for the construction industry, filed for Chapter 11 protection Thursday in U.S. Bankruptcy Court in Cincinnati. Buffeted for three years by a downturn in the construction industry, the company was sim Salomon has admitted to violating the 35 cap on the amount one firm can buy at a Treasury auction. The brokerage firm said the new violations did not exceed the government cap. The company blamed the latest violations on employees already implicated in the scandal. Portfolio Court M ost airlines won't expan asked to ri 3100 3050 3000 2950 2900 hurry City seeks early decision on Zimmer suit Delta rules Tristate skies BY JEFF HARRINGTON The Cincinnati Enquirer Jerry Martin Jr. yearns for Northwest Airlines' heyday in Cincinnati back in 1984, before Delta Air Lines turned CincinnatiNorthern Kentucky International Airport into a major hub. "We were up to 12 flights a day," said Martin, Cincinnati manager of station operations for Northwest. "We used to go to Memphis, a couple flights a day to Nashville and a couple to Philadelphia." Today, Northwest offers just five daily flights out of Cincinnati: three to Detroit and two to Minneapolis. And as for the future? "Hopefully, we will stay with what we have and stay in the market. But I just don't know," BY DICK KIMMINS 10 11 12 13 16 17 18 19 20 'f:;:: Sept. : :- - Dow Jones 30 Industrials Dally highs, with closes at arrow tip Area-Interest stocks In Industrial average (NYSE change from previous day) AT4T -38 GE 58 P&Q -34 Cincinnati Stock Exchange volume Friday 2,277,200 Enquirer Columbus Bureau COLUMBUS, Ohio The city of Cincinnati asked the Ohio Supreme Court Friday to speed up its hearing schedule and swiftly consider the city's lawsuit charging improper action by the Public Utilities Commission of Ohio over conversion of the Zim f T mmZtmt lii "' L.'" ' ' Market survives witching hour Stock prices wavered uncertainly Friday as the market worked its way through a quarterly "triple witching hour." The Dow Jones average of 30 industrials i-.vj. J"" I """r " '; mer plant. The city also asked the court to order Cincinnati Gas & Electric Co. to refund to its customers any rate increase that may be Martin said. It's a familiar story among ordered later this year if its pending lawsuit is successful. carriers in a city so dominated by another airline's hub particularly one growing as fast as Delta The Cincinnati EnquirerJim Callaway Frank Ivasile, customer service manager for USAir, stands on the tarmac near Terminal B at the CincinnatiNorthern Kentucky International Airport. is in Cincinnati. Cincinnati International, already one of the most single-carrier dominated airports in the country, is watching as Delta again doubles its operation by 1994. Cincinnati flights Frank Ivasile, Cincinnati man Delta Air Lines and its partner Comair Holdings together handle more than 80 of the traffic out of CincinnatiNorthern Kentucky International Airport Both are planning to double their operations by 1994, but other carriers predict little growth. ager of USAir, notes that his airline once was the No. 1 carrier between Cincinnati and Washington. "We had won that battle, then Delta came in with a hub and we gave it up. Although several of the carri Carrier Departures Cities Served Delta 157 55 domestic, 3 foreign Comair 180 33 domestic, 1 foreign USAir , 11 Charlotte, Columbus Philadelphia, Pittsburgh American 7 Chicago, Dallas United 6 Chicago TWA 6 St. Louis, Pittsburgh Continental 6 Louisville, New York Northwest 5 Detroit, Minneapolis Atlantic 5 Louisville, Washington.D.C. Flagship 3 Nashville Jetstream 3 Dayton Mesaba 2 Detroit The twin legal maneuvers are part of the city's efforts to challenge CG&E's conversion of the William H. Zimmer plant near Moscow from nuclear to coal-fired in 1985. Addition of the Zimmer plant to CG&E's power grid earlier this year is the basis for CG&E's pending $201.3 million, or 30, rate hike pending before state utility regulators. The city, in its lawsuit, charges that former PUCO Chairman Thomas Chema of Cleveland improperly conferred with utility company executives in 1985 to reach an agreement allowing the utility to convert Zimmer. The city of Cincinnati was not a party to that 1985 agreement, although the final settlement of the conversion question was agreed to by state Consumers' Counsel William A. Spratley on behalf of residential customers. Earlier this summer, PUCO rejected the city's administrative appeal of its 1985 order, and the city sued. Next month, PUCO staff analysts are expected to release recommendations of how much of the $201.3 million CG&E wants ers at the airport don't link their woes directly to Delta, most predict little to no growth even as Delta embarks on its $315 million expansion. was a rough one for the airlines. The industry suffered record losses as fuel prices escalated because of the Persian Gulf conflict and passenger demand dropped off due to the economy. Gordon Kehrer, general manager of American Airlines' Cincinnati station, said it's the economy and nature of the hub operation not Delta's growth that has led to fewer American flights. Rich McMahon, who holds a similar post with TWA, agreed. He noted that the vast majority of Delta's traffic are transferring passengers, not those flying to or leaving from Cincinnati. In retracting over the past several years, all the carriers are now focused on flying to their own main hubs USAir to Pittsburgh; American to Dallas; United to Chicago; and Northwest to Detroit and Minneapolis. Some have stops along the way, like TWA, which flies from Cincinnati to its New York City hub with a stop in Pittsburgh. Looming as an unknown in the local market is whether Delta will tighten its hold in January when USAir phases out its Dayton hub. NOTE: Mesaba is the feeder for Northwest; Flagship for American; Jetstream (USAir Express) for USAir, and Atlantic Coast for United. Source: CincinnatiNorthern Kentucky Int'l Airport; Enquirer research. ta has got it.' " Other woes Judy Ingram, a spokeswoman for the airport, said none of the other major carriers operating here have talked about expanding. "We're trying to keep them in a holding pattern; we don't want to lose any more," she said. In recent years, the number of non-Delta related flights has dropped off as Enterprise Airlines folded and Piedmont and USAir merged. Even outside the microcosm of Cincinnati International, last year Martin, Ivasile's counterpart at Northwest, takes a more philo sophical approach. He points out Delta is in the same boat when it The sole carrier poised for explosive growth here is United if the Chicago-based carrier picks Cincinnati as the site for its $1 billion maintenance facility. Ivasile of USAir said there remains a commitment to Cincinnati: "We haven't closed our door, bowed down and said, 'Del comes to competing in Northwest's hub in Detroit. "What goes around, comes around," he said. is justified. PUCO will hold a series of public hearings. A decision is expected by year's end. slipped 5.14 points to 3,019.23. Advancing issues outnumbered declines by about 7 to 5. Much of the activity was attributed to maneuvering by professional traders involving options and futures on stock indexes. BCCI charges pending Authorities in Abu Dhabi plan to file charges against 18 recently arrested former executives of the Bank of Credit and Commerce International, representatives of that country's ruling family said Friday. Washington attorney W. Caffey Norman said authorities in the Persian Gulf emirate plan to file formal charges against the former executives of the scandal-ridden BCCI. On Sept. 8, Abu Dhabi police arrested 26 ex-BCCI officials, including two former chief executive officers, Swa-leh Naqvi and Zafar Iqbal. Naqvi and BCCI founder Agha Hasan Abedi were indicted July 29 by a New York grand jury on charges of engaging in a multi-billion-dollar scheme to defraud depositors and launder money. Boston banks may merge Bank of Boston Corp. and Shawmut National Corp., both hobbled by the recession, are likely to announce a merger soon that will create New England's largest bank, analysts said Friday. The combined assets would exceed $50 billion. S&P downgrades Milacron Standard & Poor's Corp. said it downgraded its rating on Cincinnati Milacron Inc.'s senior debt to BB from BBB-. About $165 million of the debt is outstanding, S&P said. "This action reflects the firm's difficulties in coping with poor fundamentals of the domestic machine-tool industry. A just-announced $90 million after-tax charge stems from Milacron's inability to return several struggling product lines to . profitability," the rating agency said. Mi-' lacron's stock closed down $1 at $11.12V2 Friday, the first day of trading after announcing the write-off and a 50 cut in its dividend. New Executive Life bidder A second bidder for the failed Executive Life Insurance Co. has stepped forward promising many policyholders a full return on their death benefits, annuity payments and account values. The National Organization of Life and Health Guaranty Associations said its offer was significantly better than the one put forward by a French-led insurance group that includes Altus Finance and MAAF Assurances. Under the new proposal, investors who bought policies worth $100,000 or less would get all their benefits. Policies worth more would receive 100 on the first $100,000 and 85t on the dollar for everything over $100,000, said Bill Schulz, a spokesman for state Insurance Commissioner John Garamendi. Compiled by Dick Benson from staff and news service reports Brewery lacked power to battle government New staples fix hernias Ethicon product reduces pain, recovery time v . BY PATRICIA GALLAGHER The Cincinnati Enquirer G. Heileman Brewing Co. would have fought a federal government order to stop selling its Colt 45 PowerMaster if it were not operating under bankruptcy reorganization laws, a marketing executive for the company said Friday. And the company might try to market a higher-alcohol malt liquor again once its financial situation improves, Hubert A. Nelson, marketing director for malt liquor at LaCrosse, Wis.-based Heileman, told members of Cincinnati's American Marketing Association. The company remains convinced that sor -c consumers want to buy what are called "up-strength" malt liquors, Nelson said. PowerMaster, when still widely available, sold well, he said. "The consumer has voted yes," he said. He said the government, specifically the U.S. Bureau of Alcohol, Tobacco and Firearms, instructed Heileman to kill PowerMaster this summer because of criticism from a small but vocal minority. Critics said the brand would harm black consumers. "Unfortunately, the wonderful people in Washington could not stand the heat from a small number of people," he said. Heileman would have hired lawyers to fight the government, but didn't want to spend the money. The company filed for Chapter 11 reorganization Jan. 24 and expects to emerge from bankruptcy by the end of the year. Nelson admitted the brew's name probably played a role in the controversy. The government earlier said ads for the brand violated federal law in promoting its higher alcohol content. BY MIKE BOYER The Cincinnati Enquirer A new surgical stapler, the first designed for repairing hernias via endoscopic surgery, has been introduced by Blue Ash-based Ethicon Inc., a unit of Johnson & Johnson. The new device, called the Endopath ES endoscopic stapler, was developed over the last year by Ethicon engineers and two Creighton University surgeons who have devised an endoscopic hernia repair procedure using the stapler. The procedure dramatically reduces the amount of recovery time hernia patients face after surgery, Ethicon said. Using the new procedure patients can return to work within a week, instead of the up to six-week recovery time typically required. "The biggest difference is that it virtually eliminates post-operative pain," said David Clapper, Ethicon vice president of marketing. The product is the latest to be developed at Ethicon's Blue Ash facility, which is in the midst of a $40 million expansion that will increase employ- Ethicon develops new surgical stapler. Instead of cutting through layers of muscle as typical hernia surgery requires, the endoscopic procedure requires only three half-inch long incisions. Two are for the surgeon's tools, delivered through a tubular device called a trocar, and the third for the endoscope, a small TV camera that allows the surgeon to see inside the abdomen. The stapler is inserted inside the abdomen via a trocar and fires quarter-inch long staples one at a time to anchor polypropylene mesh, which patches the hole in the abdomen. rjnBBBBHBHH I ment to 1,400 people from 970 now. n.a M ifc.t m

Get full access with a Free Trial

Start Free Trial

What members have found on this page