Arizona Republic from Phoenix, Arizona • Page 39

THE ARIZONA REPUBLIC WEDNESDAY AUGUST 30, 1995 Editor, Marian Frank 238-4438 1 AmWest president to retire By Ed Foster and Dawn Gilbertson Staff writers A. Maurice Mvers, who was named president of America West Airlines just 20 months ago, shocked the business community Tuesday DOW JONES INDUSTRIALS 14.44 Stocks gain Stocks staged a par- tial comeback Tuesday 'as Wall Street faced another unsettled day I for technology issues. The Dow Jones industrial average improved to wind up with a gain of 14.44 points, to 4,608.44. Story and 1 Arizona leaders fight for consulate Urge unified battle for Hermosillo post By Arthur H. Rotstein The Associated Press TUCSON Arizona politicians, economic officials and business leaders urged unity Tuesday in an attempt to sway the State Department to keep open the American with the announcement that he will retire at the end of the year.

Mvers said in an interview that ne I I .1 needs a change. He said there was in 1992 by Gov. Fife Symington. "I think it's surprising that Maury decided to retire at this point," said Helane Becker, an airline analyst for Smith Barney in New York. "I think a lot of New York (investment) people are surprised.

"Most people thought Franke would have been the first to go and Maury would have taken over." Becker said Myers, noticing that Franke likes the airline business and isn't ready to retire or move on, probably decided it was time to stop waiting for the promotion. "From Maury's standpoint, maybe "he felt, There are better opportunities for me. I'm not going to get a chance to run this she said. Other sources agreed with Becker. See AMWEST, page E2 Myers said "it's time for a change," adding that he has no immediate plans.

"At this point, I have no intention of jumping back into the airline business," he said. "I warft to take a look at what the rest of the world looks like." Myers came to Phoenix-based America West in 1993 from Aloha Airgroup in Hawaii, replacing Mike Conway. At the time, the airline was operating under Chapter 11 bankruptcy protection, which it entered in 1991. It came out of bankruptcy in August 1994 and is profitable today. The stock market yawned at Myers' announcement.

The company's stock closed Tuesday unchanged, at $13,125. Most observers expected that if anyone left the airline, it would be Franke. He was asked to take over no friction with Chairman bill Franke, to whom he reported. "When I came here, Bill and I set out the goals we wanted to accom America West President A. Maurice Myers (right) says that he has a good relationship with Chairman Bill Franke and that he is stepping down because "it's time for a change." plish, Myers said.

We have done what we have said we would do." Sources familiar with the com pany were shocked by uesoay announcement, with some questioning the timing. Myers recently Phoenix Economic Council, a key community position. "No!" said Mike Boyd, an airline analyst, in a typical reaction. "Why do airlines keep grabbing defeat from the jaws of victory?" bought an expensive home in Paradise Valley, and he was scheduled to take the helm of the Greater DEADLINE: One passes, one looms for Hermosillo consulate. Mexico Journal, E3 1-800-HONESTY the new rule FTC aiming to weed out phone scams chart, Page E3.

New-home sales up Sales of new homes rose 0.4 percent in 1 July to their highest level in more than a year, led by a surge in home buying in the South. The Commerce Department said Tuesday that sales were up for the third straight month nationwide as mortgage rates rose only slightly. But the government said home buying in June was weaker than previously reported. The department said sales of single-family homes increased in July to a seasonally adjusted annual rate of 715,000, the highest level since 722,000 in I March 1994. In June, sales were 712,000, revised down from an estimate of 728,000.

But that was still up 6.1 percent from May. Sales in the West declined 13 percent. I Confidence down slightly Consumer confidence in the economy dipped only slightly in August, a sign of I en-'-. strength for the rest of the year, the Conference Board said Tuesday. The I business research group's closely followed 'index reached 101 in August.

A month earlier, the index shot up seven points, to 101.4. The August reading fell within economists' expectations and financial mar-l kets had little reaction to the figure. Tribune Co. buys TV station Tribune Co. said Tuesday that it plans to buy its ninth television station, San Diego's KTTY-TV, for $70.5 million.

The Chicago-based company said it won the rights to acquire the station, a Warner Brothers Television Network affiliate, at an auction. The transaction is expected to close by Dec. 31. KTTY was launched in 1984 by a San Diego investment group that still owns and operates the station. Tribune is the fl' I 11 By David Wichner Staff writer To telephone solicitor Sandra McKee, telemarketing is no different than any other form of sales.

1 1 (J UN "I feel this is a simple offer. They either take it or leave it," McKee said of the time-share promotion she is currently pitching for her employer, Markatel Inc. of Phoenix. But to others, phone sales are at best a huge nuisance and at worst parent company of the Chicago Tribune and Consulate in Hermosillo, Sonora. Consular posts in Hermosillo and Matamoros, Coahuila, are among 19 diplomatic operations slated to close under cost-cutting plans.

But Luis Ramirez, executive director of the Phoenix-based Border Trade Alliance, said the organization's position is that Mexico should not be considered for any diplomatic post closings. "We would like to see if we can present a united front from the state of Arizona," Ramirez said. He said he hopes Arizona's congressmen will join in a consensus with the Texas delegation and get support from New Mexico and California. Individual -businessmen and their corporate leaders also should pitch in with a letter-writing campaign, and companies should sign on to a resolution being drafted, Ramirez said. Bill Cline of Tucson's Economic-Development Office said the consulate closing is the political, and economic-development issue of 1995 in Arizona.

Opponents of the closure say it would undermine much of the trade progress fostered by the North American Free Trade Agreement and harm Arizona businessmen in particular. Arizona's exports to Mexico totaled $2.4 billion last year. State Department officials have said the closures are planned for fiscal 1996, which begins Oct. 1. Bill Francisco, the U.S.

consul in Hermosillo, canceled a planned address to the alliance. Bill Stephenson, director of economic and community development for Arizona Public Service said State Department officials had ordered Francisco to stay mum on the issue pending its resolution. Earlier Tuesday, Richard Moose, State Department undersecretary for management, agreed to meet with Arizona congressional and community leaders Sept. 12 in Washington. Sen.

Jon Kyi's office said the six to 10 community representatives should be a statewide cross section and present a non-emotional case. Melinda Carrell, an aide to Rep. Jim Kolbe, said State Department representatives put out "a feeler" at a staff-level meeting in Washington to gauge sentiment about placing a commercial foreign officer in Hermosillo to promote trade if the consulate is closed. three other daily newspapers, eight televi- Charles KrejcsiStaff photographer Markatel operations manager Wyatt Canada says his telemarketing firm is picky about its clientele, generally avoiding prize promotions and checking out its clients to make sure they are legitimate. sion and six radio stations, and the Chicago Cubs baseball team.

SEC bars investment firm A Phoenix company has been temporar- TELEMARKETING RULES New telemarketing sales rules adopted by the Federal Trade Commission go into effect Jan. I. Here's a breakdown on how they will affect telemarketers. ily barred from selling investments in an ostrich-breeding operation in southeastern Arizona and other states. Ostrich Breeders Hours: Telemarketers are prohibited from calling before 8 a.m and after 9 p.m.

of America is one of several defendants accused by the Securities and Exchange Disclosures: Commission in Boston of using "boiler the tool np-off artists use to separate the gullible from their money. New federal rules that go into effect in January should help separate the harmless solicitations from the scams. Fraud accounts for as much as 10 percent of the $440 billion annual telemarketing industry. The Federal Trade Commission says it has received 47,000 complaints since 1991. The FTC's new Telemarketing Sales Rule spells out detailed disclosures that telemarketers must make before taking a consumer's money or credit-card number.

Specific rules target bogus prize promotions, advance-fee loan schemes, investment scams and so-called recovery-room schemes, in which con artists revisit victims of previous scams. The new rules also give states a bigger hammer against phone fraud. The rules allow attorneys general to seek court orders to shut down telemarketing operations nationwide, not just in their home states. Sydney Davis, chief consumer-protection counsel for the Arizona Attorney General's Office, said the new powers are vital, because telemarketers often avoid in-state calls to dodge state prosecutors. "Generally, if their mail drop (address) is in Arizona, they're not telemarketing in Arizona," he said.

Although the telemarketing rules are aimed at fraud artists, they will affect all telemarketers, including in-house staff used by banks and other big businesses. I room" factics to drum up investors for an ostrich farm in Wilcox. Last week, a federal I judge in Massachusetts froze the company's assets and issued a temporary halt to the firm sales tactics. More than uu investors, including some in Arizona, bought stakes of For example, the rule bans calls before '8 a.m. and after 9 p.m.

and requires solicitors to say right away that they're calling to sell something. "The rules set out more clearly what people can and can't do," said Dale Sekovich, senior FTC investigator in Los Angeles. "Before, it was the Wild West out there." People who hate any type of sales call may not see much relief, Sekovich said, adding that new rules probably will have little effect on legitimate telemarketers. McKee's boss, operations manager Wyatt Canada, agreed. "None of it seems to apply to us, we're always in compliance," said Canada, who's been with Markatel since 1982.

Part of the reason, he said, is that Markatel is picky about its clientele. The west Phoenix firm generally doesn't handle prize promotions and checks out its clients to make sure they are legitimate. Recent clients include banks, home builders and computer companies, including Lo- See NEW FTC, page E2 the operation for $6.5 million. Cattle groups unveil name Telephone solicitors must promptly disclose the nature of their sales call, the seller's identity, the goods or services offered, and, in prize promotions, that no purchase is necessary to win. Before telemarketers ask consumers for any credit-card or bank-account information, they must disclose total costs, refund terms or odds and other details of prize promotions.

Telemarketers cannot misrepresent any material aspect of the nature or value of prizes and the risk or the liquidity or earnings potential of investments. Collection: Telemarketers are barred from debiting a consumer's checking account without the consumer's expressed, verifiable authorization, such as a signature or taped approval. Telemarketers cannot send couriers to collect payments or otherwise seek payment before making required disclosures. And they cannot collect up front for credit-repair services, arranging for credit or loans, or recovering money lost or prizes not received in prior scams. Penalties Violations may result in fines of up to $1 0,000 per violation.

The rule is enforceable by the FTC and the 50 state attorneys general, who will for the first time be able to obtain court orders that apply nationwide against fraudulent telemarketers. Source: Federal Ttade Commission Three merging cattle-industry groups will call their new organization the National Cattlemen's Beef Association. The consoli- dation of the National Cattlemen's Associa- tion, the National Livestock ana Meat Board, and the Beef Industry Council is scheduled to be completed next year. The merger has been debated for years but gained favor after the industry encountered setbacks, including falling prices in 1994. Kendall Frazier of the National Cattlemen's Staff artist Association said the groups decided on a name at a transition meeting last week in San Antonio.

Computer firm consolidates Chain to close Oaktree, other clothing outlets Water firm settles FTC case Hewlett-Packard Co. said Tuesday that it has consolidated all of its computer and computer-support activities into a single organization. The company said its com- puter-products organization, which primar- ily makes printers and personal computers, 1 will be joined with its computer-systems organization, which makes workstations I and larger computers, and its worldwide customer-support operations. The combined group will be headed by Richard E. the safety of drinking water and the effectiveness of its water-purification product.

"Absent the settlement, the FTC would have gone to federal District Court and been prepared to prove the charges," said Bonnie Jansen, a spokeswoman for the agency in Washington. Jansen said the money paid by Water Resources will go to the U.S. Treasury. "We entered into an agreement where we admitted no guilt," said, Chris Bower, Water Resources' executive vice president. FTC officials, in a statement, said the company initially contacted consumers to conduct a survey, distribute free soap or to arrange free water tests.

The company would test tap water, claim that there were impurities and pitch their device as being able to solve the problems, the FTC said. Use of fear tactics denied by purifier company's CEO By Chris Fiscuc Staff writer A water-purification company has agreed to pay $100,000 to settle deceptive-sales complaints brought by the Federal Trade Commission, but the company's chief executive has denied any wrongdoing. "We could have fought it and beat it," said Lowell Folctta, chief executive officer of Phoenix-based Water Resources International Inc. "We would have spent three times as much." The company agreed to settle with the FTC claims that it used deceptive sales tactics and misrepresented and noteholders and changes in its loan arrangements. The company's stock, which reached a 52-weck high of almost $20 on Aug.

29, 1994, closed at $4 on Tuesday. Edison, which has several specialty retail nameplates, said the closings will be completed by the end of next year. Most store closings will be in its Oaktree menswear chain, though all of its apparel stores will have some closings, the company said. "There's no specific list of stores. They will be evaluated one at a See OAKTREE, pageE2 By Glen Creno Staff writer A Midwestern retailer with several Arizona stores says financial troubles are forcing it to close 250 outlets throughout its national chain.

It was unclear whether Edison Brothers Stores Inc. would close any of its stores in Arizona. The St. Louis-based company Tuesday reported a $25.7 million net loss for its second quarter that ended July 29 and canceled dividends on its common stock for the remainder of its fiscal year. It also said it was seeking concessions from lenders Belluzzo, 41, who had been in charge of the computer-products group.

Hewlett-Packard also promoted Belluzzo to executive vice president from senior vice president in recognition of his new responsibilities. Compiled by Barry Gilbert from reports by The Associated Press and Dow Jones news Service. METALS AND COMMODITIES: ONE DOLLAR EQUALS: TUESDAY'S CLOSING QUOTES N.T. comex INTEREST RATES Tuesday ago Tuesday ago Prime rate 8.75 7.75 6-month Treasury bills 5.35 4.88 Discount rate 5.25 4.00 10-year Treasury notes 6.35 7.19 Federal funds 5.50 4.67 30-year Treasury bonds 6.71 7.46 N.T. Comex 1.3440 1 AJflEX: 528.19 SSP SCO: 560.00 0.95 1 Dow Jones: 4,608.44 14.44 nAA in Pound Troyoz.

3. Herman Cotton 89.00C 0.86 1 NYSE: Composite Nasdaq: 300.69 lOlume: 1,003.64 0.27 386,967,550 IlM ft PeiaSc-N Mar 6.3200 1.4765 4' Unch. nV0.0129 3-month Treasury bill 5.32 4.57 Avg. 30-year mortgage rate: 7.88 Pound 5.570 0.065 Troyoz. 1.