The Tennessean from Nashville, Tennessee on August 1, 1995 · Page 29
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The Tennessean from Nashville, Tennessee · Page 29

Nashville, Tennessee
Issue Date:
Tuesday, August 1, 1995
Page 29
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vj CLASSIFIED Local stocks 2E Mutual funds 3E Local briefs 4E Looking for wheels? Try our 909 auto ads Pages 5-12E BUSINESS TUESDAY, AUGUST 1, 1995 k UiioE leader's ship to doc AFL-CIO's Kirkland to retire after 16 years at helm AP He photo Lane Kirkland, 73, will retire today after 16 years with the AFL-CIO. Mutual fund sales info simplified NEW YORK (AP) Investors, take heart: The jargon-bloated language of mutual funds Is going on a crash diet Stepping up its drive to pare confusing language, the mutual-fund industry yesterday proposed an easier-to-read version of the sales materials that detail investment risks, fees and other important facts about mutual funds. Federal regulators said investors should welcome the supplements to existing lengthy prospectuses. About 40 million Americans now own shares in mutual funds, which essentially are portfolios of securities bought by investors pooling their money. Yet many prospective investors aren't fully aware that buying stocks or bonds can be far riskier than, say, opening a bank certificate of deposit Arthur Levitt, chairman of the Securities & Exchange Commission, said he doesn't think the "vast influx of millions of unsophisticated investors" has "an adequate understanding of the risks involved." The new material summarizes 11 key points of the prospectus in ques-tion-and-answer format The third question in a sample stock-fund profile asks "What Are the Significant Risks?" The paragraph-length answer doesn't dawdle. "Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions," it says. "In the short term, stock prices can fluctuate dramatically ... " No. 6 asks "How Has The Fund Performed?" The answer is a bar chart depicting the fund's annual total return during each of the past 10 years, or fewer years depending on how long the fund has existed. In contrast one typically wordy prospectus explained its "average annual total return" as showing the "average percentage change in value of an investment in the fund from the beginning date of an investment in the fund to the end of the measuring period." "If the profiles are well-received by investors, they will serve as a model for effective fund disclosure," Levitt said at a news conference announcing the new "profile prospectus." Mutual-fund companies in the pilot program, developed jointly with federal securities regulators, plan to test the format with investors to see how helpful and handy they find it The new format would then become required for all mutual-fund companies. Levitt said that one possible outcome is the proposed question-and-answer format replacing the longer prospectuses in mailings to investors. The longer prospectus would then be sent only to investors who request it By CALVIN WOODWARD Associated Press WASHINGTON "Full ahead, steady as she goes," ordered Lane Kirkland, one-time mariner, fan of nautical metaphors, when he took control of the great ship of labor 16 years ago. Steady the AFL-CIO president was, in reuniting the shrinking labor movement in supporting Polish workers at the dawn of Eastern European democracy, in pushing to open an organization that was as mysterious as Mars to some of the rank and file. Too steady, for those who wanted labor to scream and agitate and rise up again. Though AFL-CIO membership stands where It was when he took over, at 13.3 million, the national percentage of non-farm workers who are members of unions has continued to fall. It's at 15 now, down from a peak of almost 35 in 1954. Kirkland, 73, retires today at the AFL-CIO's executive council meeting in Chicago. And Labor's famous cry, "Which Side Are "Tough, bright, witty and one of the leading intellectuals off the country." SEN. ORRIN HATCH, R-UTAH About adversary Lane Kirkland You On?" resonates through the organization itself as it submits to a fearsome struggle for succession. His longtime deputy, Thomas Donahue, is bidding for the job against upstart challenger John Sweeney of the Service Employees International Union. However that turns out Kirkland's departure removes from the scene a courtly, cerebral and occasionally salty public figure, an art collector, a Washington insider, a man capable of throwing food at the TV when the Redskins lose a football game. Americans never got to know him all that well. Union polls indicated even union members had trouble identifying him. With a talent for consensus building and for fancy, if sometimes ponderous, words, he brought mine workers, autoworkers, West Coast longshoremen and Teamsters back into the fold. Despite the huge infusion, union membership faltered on his watch. "For all of Kirkland's years, we didn't lose a heck of a lot" said Vic Kamber, a consultant student of the labor movement and sometime critic of Kirkland. "We just didn't gain a heck of a lot" Kirkland stepped into the shoes of his mentor, George Meany, who could cow people with his personality. As others recall the transition, members of the group's powerful executive council were slow to take advantage of Kirkland's call for advice and dissent so dominated Turn to PAGE 4E, Column 5 More live music on Broadway 11, I m I v " I r-r ' vV ' ! C X ' " ' r"l' J t , Ft -1 . - . - . . - nsteber Staff New businesses continue to flock to Lower Broadway. Here, by Jimmy McCollum, will feature live music Wednesday Tom Doll washes windows in preparation for the grand through Saturday nights. It required about $250,000 in reno-opening of Maggie Magee's, a live music club at 419 Broad- vations to the building, which previously housed a second-way scheduled to open Aug.9. The business, which is owned hand music shop called Rose Music. Performance Food moving main office By BILL CAREY Staff Writer Strike Performance Food Group from the list of Nashville-based companies. The food distribution company, which provides services to customers as large as Cracker Barrel and Outback Steakhouse, Is moving its corporate headquarters to Richmond, Va., on Aug. 14. But only three people will be moving to Richmond as a part of the corporate relocation, according to Roger Boeve, PFG's chief financial officer. He's also one of the movers. PFG Is the parent company to several subsidiaries, including the Kenneth O. Lester Co. of Lebanon. The move would not affect any of Kenneth O. Lester's 300 employees, Boeve said. Kenneth O. Lester currently operates out of a 71,000-square-foot distribution center that was built in 1990. It was founded as a produce distributor in 1930. Boeve cited two reasons for the move: the December 1994 death of then-PFG chairman Ken Lester, and the desire on the part of the company to be closer to Pocahontas Foods USA, a Richmond subsidiary of PFG. "Pocahontas performs many corporate services, and it would be better if we were closer to It" Boeve said. Other PFG subsidiaries include Caro Produce of Houma, La.; B & R Foods of Tampa, Fla.; Milton's Institutional Foods of Atlanta, and KMB Produce in Dallas.! Office products firm to buy Berol By CANDY McCAMPBELL Business News Editor The Empire Berol plant with about 700 workers in Shelbyville, Tenn., will become a "cousin" of the Faber-Castell Corp., with about 1,000 employees in Lewisburg, after the acquisition of Berol Corp. Newell Corp., a manufacturer and marketer whose wares include office products and housewares, has agreed to buy Berol for an undisclosed sum. The deal is pending Federal Trade Commission approval, but is expected to be finalized by the end of this year. Don't expect big changes at either the Berol plant or its Brentwood headquarters, which has about 100 employees, Berol spokesman Alan Hilburg said. "The majority of employees worldwide will remain with the company," he said. Berol has a total of 2,300 employees in the United States, United Kingdom, Canada, Mexico and Colombia. Its pencil and school supply brands include Eagle, Prismacolor, Yikes, Mirado and Colorific. Faber-Castell makes pencils, color pencils, pens and markers. Executives of Newell, in Free-port, 111., were unavailable for comment yesterday. Newell is the parent company of Faber-Castell. Berol's performance has been improving since Charles A. Lieppe was appointed president and CEO In 1991, including a record year last year, Hilburg said. AEA, the New York shareholder group that owns a majority of Berol stock, took advantage of its recent successes and found a buyer for the company, he said. "What happened is Berol finned up worldwide leadership in the manufacturing and and marketing of branded writing instruments, school supplies and office products," he said. TENNESSEAN NEWS SERVICES U.S. incomes up slightly in June WASHINGTON Helped by higher wages, the income of Americans climbed modestly in June to recover from the first decline in more than a year. Consumer spending rose slightly to close out a weak second quarter for the economy. The Commerce Department said yesterday that income increased 0.4 in June after falling 0.2 in May, the first decline since January 1994. Consumer spending increased a mere 0.2 in June. It had shot up 0.9 in May, the biggest jump in nine months. Home values increase WASHINGTON The ability of the typical American family to buy an existing home slipped a bit from April through June because of an increase in home values. The National Association of Realtors said yesterday its Housing Affordabllity Index was down from last year's second quarter and this year's first quarter. Home price appreciation in the three months ended June 30 offsets drops in mortgage rates, resulting in a slight loss in purchasing power, said Edmund G. Woods Jr. Implant deadline set HOUSTON A federal judge has set a 30-day deadline for breast implant makers and the lawyers defending implant recipients to renegotiate a $4.25 billion settlement fund or risk losing the current one on the table. Despite the new Aug. 30 deadline, made public yesterday, implant manufacturers do not appear close to increasing their own contributions to the fund, which could be in danger of collapsing without more money. Three executives resign PORTLAND, Ore. With its legal woes multiplying and profits plummeting, Louisiana-Pacific Corp. announced the resignation of chairman Harry Merlo and two other top executives. The resignations yesterday followed a rare re-evaluation of earnings that led Louisiana-Pacific to cut its second-quarter profits by a third to $26.3 million, or 25 cents per share, last week. In the second quarter of 1994, Louisiana-Pacific earned $81.9 million or 75 cents a share. Ideon to lay off workers JACKSONVILLE, Fla. Ideon Group Inc., citing poor consumer response, said it is discontinuing a three-month-old missing children service and laying off about 375 workers. In addition to ending the program known as Family Protection Network, the company said yesterday it is also redesigning its credit card marketing unit and significantly reducing its corporate staff. Ideon, a credit card registration company previously called Safe-Card Services Inc., lost $46.7 million, or $1.62 a share, in the second quarter. H&R Block hires head KANSAS CITY, Mo. H&R Block Inc. announced yesterday that it has chosen Ameritech Corp. executive Richard H. Brown as its new president and chief executive officer. Brown, who has been vice chair man and a member of the board at Ameritech the past three years, replaces Thomas M. Bloch, who announced earlier this year that he would retire. NEWSMAKER Winston Steetman Patten-Beers Constructors as a vice president. He has 32 years of experience in the construction industry and was most recently with McDevitt Street Bovis. He will be responsible for estimating and pre-con-struction services for Patten-Beers. STEELMAN has joined L - . ..- A ... . . J T-DILLS Interest rates on short-term Treasury securities fell in yesterday's auction to the lowest level in three weeks. The Treasury Department sold $12.8 billion in three-month bills at an average discount rate of 5.44, down from 5.47 last week. An additional $12.7 billion was sold in six-month bills at an average discount rate of 5.39, down from 5.46. In a separate report, the Federal Reserve said yesterday that the average yield for one-year Treasury bills rose to 5.72 last week from 5.64 the previous week. SECTION EDITORS Emme Nelson Baxter, Regional EditorBusiness, 259-8C96. Candy McCampbell, Business News Editor, 259-8076. Fax: 259-8093. For information or questions, call Monday through Friday, 9 a.m. to 5 p.m. 1 AGENDA Ellen HobbS LylC, a new Davidson County Chancery Court judge, will speak to The First Tuesday Club, at noon today at the Stockyard Restaurant. Fee is $12. Info: Brenda Bittles, 352-0215. "Local Economy" is the topic for Reuben Kyle of the Business and Economic Research Center at Middle Tennessee State University, for Nashville Area Research Network, at noon today in the community room at Church Street Centre. Info: Garrett Harper, 259-4713. 4 MARKETS StOCkS drifted to a negative finish yesterday as economic concerns took the edge off enthusiasm over news of a major merger. The Dow Jones industrial average fell 7.04 to 4,708.47, despite a sol id gain in the stock price of The Walt Disney Co., which revealed plans to acquire Capital CitiesABC. Story and tables on 2&3E. STOCKS I IfewW i':

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