The Cincinnati Enquirer from Cincinnati, Ohio • Page 1

1 IN SPORTS, CI 1 LOUISVILLE RAIDS UC OF ASSISTANT COACH CRONIN QNCfflATIEN COPYRIGHT, 2001, THE CINCINNATI ENQUIRER THURSDAY, APRIL 19, 2001 FINAL EDITIONWEST 50 CENTS IMS1D NATION Stocks mm out of a ftmk 01 III Ff? Markets just love Fed rate cut A surprise rate cut from the Fed Taking investors by surprise Wednesday, the Federal Reserve cut a key interest rate by one-half percent. Stocks immediately soared. Prime rate 7.5 Day care linked to aggression The more hours children spend in day care before starting school, the more aggressive they are with classmates and defiant toward teachers in kindergarten, says a large federal study. A3 6 y1" Federal fmiarae4 4 Jf 1 By Jeff McKinney The Cincinnati Enquirer The Federal Reserve's surprise, half-percentage-point interest-rate cut Wednesday is dear evidence policy-makers are serious about keeping the nation out of recession, economists said. The rate cut, the fourth this year, is aimed at reversing a falling stock market, raising corporate profits and spurring consumer spending: "The Fed is making it clear that it will do whatever is necessary to keep us out of an economic slump," said John Lonski, chief economist at Moody's Investment Service.

The rate reduction is great news for U.S. companies and millions of American consumers. It reduces borrowing costs on everything from business loans to adjustable-rate mortgages, credit cards, car loans and home-equity loans. Consumers can expect to save $1.2 billion this year in credit-card interest alone, from the latest Fed move, said Robert McKinley, chief executive of CardWeb.com. sluggish business investment, eroding corporate profits and weaker stocks.

A poor stock market can make businesses and individuals feel less wealthy and less likely to spend and invest. "The magnitude of how much the economy has slowed down caught them by surprise, and they took this action to be ahead of the curve and show they're serious about preventing a recession," said Will Daly, chief marketing officer at Fifth Third Bank. Stock markets, which had given up hope that the Fed would cut rates again before its May 15 meeting, soared on the news. The Dow Jones Industrial Average enjoyed its third biggest one-day point gain in history, rising by 398.91 points to close at 10,615.64. The technology-heavy Nasdaq rose 156.40, a gain of 8.1 percent, which put it above 2000 for the fist time since mid-March.

The Fed cited several reasons for the move, including 1990 1991 1992 19931994 1995 19961997 1998 1999 2000 01 Commercial banks are cutting their prime rate effective today. Note: In months in wtiich a rate was changed several times, the last change of the month is shown. Source: Federal Reserve Emergency ends I But businesses still in turmoil Taft fights JgMpHpMP MpipMWRrft MMMQWI Frr Rf ICS us iJt: additional 1 flf Mayor issues all clear for city i wt a i budget cuts Juvenile programs targeted Ess The Cincinnati EnquirerGARY LANDERS Walnut Hills businesses along McMillan Avenue are still boarded up after last week's riots. -i I. 4.t3 rl tip.

,1 Jj i -f i la 4 4 li i By Debra Jasper Enuiihvr ('olitiitbits lliimiu COLUMBUS Saying his administration has cut down to "bone, tissue and nerve," Gov. Bob Taft issued a plea to legislators Wednesday to make no further cuts in the state budget. Mr. Taft and his cabinet members predicted the additional cutbacks being pushed by leaders in the House and Senate would seriously damage Ohio's ability to invest in research and technology, attract employers and keep tuition low enough to make community colleges accessible. Officials said the administration is already cutting back in key areas, including reducing services to the mentally ill and decreasing the state's ability to crack down on food stamp fraud, liquor sales to minors and illegal gambling.

In addition, officials said they are planning to cut back state funds for counseling in WIJIBBSKr. If approved, half of that amount will be made available to businesses in Cincinnati and the other half would be made available to businesses outside the city limits in areas such as Norwood and Elmwood Place. The plan was proposed by Commissioner Todd Portune and has the support of Commissioner Tom Neyer. The loans will be made available through two existing programs at in ''''''tiiiiiiilr i 7 5 4 Discount rate 4.0 The Associated Press Gov. Taft "To go further would affect Ohio families and citizens in very harmful ways." and treatment services for juveniles across the state.

In Hamilton County, for example, the state plans to spend $500,000 less on subsidies for Hillcrest School, a Cincinnati juvenile residential center. Mr. Taft said such cuts go far enough. "To go further would affect Ohio families and citizens in very harmful ways," the governor warned. "This is as far as we responsibly can go without jeopardizing public health, public safety and the fundamental services the state provides." At issue between Mr.

Taft and Republican legislative See BUDGET, Page A10 On STRIKE Delta blues Delta Air Lines posted its first quarterly loss in six years. Dl ation. Said Meghan Glynn, spokeswoman for the Erlanger-based regional carrier "We are going to Washington in the spirit that we can get an agreement. But the pilots must be willing to compromise as we always have." The pilots walked out on March 26, with talks breaking down over work rules, retirement benefits, job protection, and pay. Delta Wednesday issued its quarterly earnings, posting a loss of for the first time in six years.

It said it lost $24 million in revenue because of the strike in the last six days of the quarter or about $4 million a day. Based on those figures, Delta has lost about $100 million in revenue through today. 'r ,.,1 I Wt 1mm SPORTS Brewers 7 The Reds' five-game win streak came to an end Wednesday. Milwaukee's Jose Hernandez hit a three-run homer for the Brewers. Reds starter Pete Harnisch took another loss and was pulled out of the game with the Brewers up 5-1.

Reds outfielder Michael Tucker was ejected when the right fielder vainly argued for a fan interference call on a foul ball he didn't catch. CI METRO Scott's fate lies in appeals court Ohio prison officials sent Jay D. Scott back to his death row cell in Mansfield Wednesday, one day after he was to have been executed, while an appeals court pondered whether he should live or die. Bl TEMPO Mom, dad, are you champ or chump? Parents want to give children every advantage in life, but how will they learn self-reliance if parents don't let them make independent choices about some things. The hard part is knowing when to step in and how to avoid becoming a chump.

El COMING FRIDAY Golfer's guide 8 The Enquirer's annual listing of public golf courses includes several new places to play. Keep it close to your clubs and use it throughout the season to look up course fees, yardage, directions and more. Find it in Sports. WEATHER High 66s 3 LOW1 Sun. then MtZk clouds.

INDEX Five sections, 161st year, No. 10 Abby E6 Lotteries 92 Business Dl Movies E5 Comics E4 Obituaries B8 Editorials 610 Puzzles E5 Kids' Comer E6 Classifieds 06-12, E8 Hot Off the Press MO Online Get the latest news during the day at Cincinnati.Com. Keyword: Enquirer a 'The worst is Dl MAI MaIkEI the county's Office of Economic Development. "I will support the loan component of this," Mr. Neyer said.

"We should be able to put that in place quickly." But another part of Mr. Portune's plan to offer $500,000 in grants to affected businesses, again with half going to Cincinnati was not received so See RELIEF, Page A9 David Damico says, breathing heavily. "He's got about 14 open warrants." The dispatcher repeats: 14 open warrants. From there, more than a dozen police officers get involved in the chase in Over-the-Rhine. The transmissions detail the chase: He's easlbound on East 13th Street.

He's headed from Vine toward Walnut on 13th. One officer thinks Mr. Thomas ducked into a Vine Street store. The dispatcher repeats: Timothy Thomas, with 14 open warrants. Officer Damico, who first See TAPE, Page A9 i HAjVH The Cincinnati EnquirerGLENN HARTONG Findlay Market business owners Patty Walpole of Walpole Meats and Jeff Glbbs of Gibbs' Cheese were back at work Wednesday in the market house.

Story, A8. City, county propose relief funds JU that another $1 million will soon be on the way. The order placing the city under a state of emergency and allowing a curfew that was lifted Monday was rescinded just before 2 p.m. by Mayor Charlie Luken. Hamilton County officials said Wednesday they will move forward next week with a plan to offer $2 million in low-interest loans.

EnquirerSTEVEN M. HERPPICH ii y4y 'I II i Ai. in Comair, pilots return to table Airline losing $4 million a day By Robert Anglen and Dan Klepal The Cincinnati Enquirer The state of emergency in Cincinnati was rescinded Wednesday, but Hamilton Ccfunty and city lawmakers say businesses are still in danger. So they made plans to offer a combined $2.25 million in loans and grants for businesses that suffered losses in last week's riots and are promising Inside Tape: After chase, a 30-second silence By James Pilcher The Cincinnati Enquirer Negotiations between Comair and its striking pilots will restart next week, both sides said Wednesday. Meanwhile, Comair's parent, Delta Air Lines, announced the first six days of the walkout alone cost it $24 million in revenue.

The two sides will start a three-day meeting at the National Mediation Board in Washington, D.C., Wednesday, board spokesman Daniel Rainey said. Observers said the talks were unlikely to resolve the 24-day strike. "This will be just to feel each other out," said Richard Gritta, a business professor and airline expert at Oregon's University of Portland. "They must have a target in mind, but they're not going to get (a contract) done in three days." Union and airline officials said the talks were scheduled after an invitation from board officials. "We are willing to bargain in good faith," said Paul Lackie, spokesman for Comair's branch of the Air Line Pilots Associ- The Cincinnati By Jane Prendergast Pie Cincinnati Enquirer An audiotape released Wednesday by Cincinnati police shows officers chasing Timothy Thomas on April 2 were told he was wanted for open warrants.

The types of warrants were not explained. The warrants were for misdemeanors, mostly for traffic offenses. The tape begins with a police officer, running, calling in: I'm chasing a black man, about 6 feet tall, wearing a red bandanna and an Indy 500 jacket. "His name's Timothy Thomas," Cincinnati Officer Angela Leisure talks in her Golf Manor home about the death of her son, Timothy Thomas. A mother's pain: Three days after laying her son to rest, Angela Leisure wants people to know who she is Jand how his death affected her family.

A8 Beanbag use: Officials say a state trooper fired a beanbag shotgun in an incident under investigation. A9 Cities at risk: The lawyer representing Timothy Thomas' family says riots could happen in other cities. A9 I.