Statesman Journal from Salem, Oregon • 32

STAT A A I A A JK 6Ji Gold: $300.30, up $1.40 (Republic National Bank) Silver: oz. (N.Y. Comex) December 16, 1504 Salem, Oregon Business Editor Joan Drake 333-6733 VaaU i i vz jir In Brief Oregon's unemployment jjM( picture JOBS Gene prolongs berry life The Associated Press BEAVERTON Scientists at Agritope Inc. are working to develop a longer lasting raspberry that won't turn to mush in the grocery store. The Beaverton-based biotechnology firm has developed a proprietary gene that inhibits production of ethylene, the plant hormone that causes fruits and vegetables to ripen.

Agritope scientists hope to implant that gene into high-yield raspberry plants provided by Sweetbriar Development Inc. of Watsonville, one of the nation's largest berry producers, to develop a more durable berry that will last longer on grocers' shelves. The two companies will share development costs under a long-term contract signed this week. Dr. Richard Bestwick, Ag-ritope's senior vice president, said it should take about two years to develop plants suitable for commercial growing.

Agritope, a subsidiary of Epitope is conducting demonstration trials in Florida and California of a proprietary cherry tomato that contains the ethylene control gene. Salem holds steady at 4.5 percent, the lowest ever for November. By Dawn Vlahandreas The Statesman Journal Big gains in the retail sector helped the Salem area unemployment rate hit a November all-time low. The 4.5 percent jobless rate has remained steady since August. Historically, the area jobless rate begins to climb in November and reaches a peak in either January or February.

The state unemployment rate was also at 4.8 percent in November, the lowest in 25 years. About 800 retail jobs were added to area payrolls last month; historically 200 to 300 retail jobs are added at this time of the year, according to state labor economist Earl Fairbanks. "The retail trade sector is going great guns this holiday season," Fairbanks said. "A lot of businesses are posting record sales. This is even more true in the Willamette Valley, where there's still a lot of in-migration." Also, two new stores opened in November Home Depot in Salem and Bi-Mart in Monmouth accounting for about 200 full- and part-time jobs.

The biggest job losses were recorded in the food processing sector, down 2,900 jobs, and the business and professional services sector, down 500 jobs. The food processing losses are expected at this time of year. The losses of business services jobs are due to the nature of temporary employment agencies, which tend to fluctuate in number of jobs from month to month. These losses have a minimal effect on the unemployment rate. Fairbanks said: "Many of the people working in the seasonal food processing industry do not want to look for jobs for the rest of the year.

For many of these people, that's the kind of work style they want." Discounting these two sectors, net employment would have shown a gain of 600 jobs. Half of the sectors that are tracked by the state Employment Department reached record high levels in November, including mobile home manufacturers, general merchandise stores, health services and food stores. Construction, although not at a record level for November, was tied with last year's second-highest level with 5,000 jobs. "We always look at construction as an indicator of the general economic outlook in the area," Fairbanks said. Benton County recorded the lowest November jobless rate in the state with 2.2 percent, while Wallowa County had: the highest rate at 9.4 percent.

The national unemployment rate was 5.6 percent. 2.2-4.9 5.0-6.4 6.5 9.4 Regional employment figures Salem Nov. '94 Oct. '94 Metropolitan Unemployment rate 4.5 4.5 Number employed 152,300 153,900 Number unemployed 7,200 7,200 Benton County Unemployment rate 2.2 2.6 Number employed 40,630 39,440 Number unemployed 930 1,040 Linn County Unemployment rate 6.1 6.2 Number employed 42,990 43,450 Number unemployed 2,800 2,890 Lincoln County Unemployment rate 6.0 5.4 Number employed 19,600 20,330 Number unemployed 1,260 1,150 Stores' stocks indicate good economic health WASHINGTON Anticipating strong sales, businesses continue to stockpile goods at a solid pace in the latest sign of the economy's health. Analysts said the question is whether rising interest rates will slow the growth in 1995.

The Commerce Department reported Thursday that business inventories increased in October for the seventh consecutive month, posting a 0.4 percent advance on top of the 0.5 percent gain the previous month. Sales, which slipped 0.2 percent in September, rebounded and gained 0.2 percent. Compaq continues to sell PC with flawed chip NEW YORK Compaq Computer the largest seller of personal computers, will continue to sell machines that use Intel Pentium microprocessor despite a flaw in the chip. Compaq's decision, announced Thursday, had been awaited since Monday, when IBM said it would stop shipping Pentium computers because of a flaw that affects division problems. Meanwhile, the trade newspaper PC Week was preparing to report that its analysis found the flaw could occur more often than Intel has said, but less often than IBM has said.

Depending on how a computer is used, the flaw can produce the wrong result from once every two months to once every 10 years, PC Week said. Story prompts Microsoft to fix computer software NEW YORK Microsoft Corp. said it will repair its Windows software that produces wrong answers in some simple subtraction equations. The action came Thursday after a Wall Street Journal columnist mentioned the glitch in an article that mainly focused on Intel trouble with the Pentium chip. A Microsoft executive said the move was unrelated to the criticism Intel has received about its handling of the Pentium flaw.

Rules limit mutual fund Source: State Employment Department Statesman Journal Hollywood Video hits bi Potato cellars swelling The Associated Press KLAMATH FALLS From Klamath Falls to the state of Maine, potato cellars are bulging, driving down prices. A report this week from the U.S. Department of Agriculture showed that 264 million hundredweight of potatoes were held in storage around the country as of Dec. 1, a 6 percent increase from last year. The 412 million hundredweight of potatoes harvested this fall around the country made this the fourth straight year for a record harvest.

The price for a 50-pound carton of premium potatoes has held for several weeks around $11 on the wholesale market, compared to $25 at this time last year. Brisk sales offer hope that prices will rise, said Mike Mc-Koen, president of the Klamath Basin Shippers Association. Disappearance, the amount of potatoes taken out of storage, was up 9 percent from last year, at 136 million hundredweight. "That almost tells me that in another month or so we're going to have 5 percent fewer potatoes than we had a year ago," he said. "If you've got a quality product in a particular area, there's a good chance this market's going to recover some." Most Klamath potatoes are sold for fresh produce, but increasing demand from processors helps improve prices.

Storage in Oregon was estimated at 20.2 million hundredweight, up from 19 million hundredweight last year. Idaho, the nation's leading potato producer, reported 95.5 million hundredweight in storage, up from 94.5 million hundredweight. Washington reported stocks at 48 million hundredweight, up from 43.5 million The Portland-based chain, which has more than 100 outlets, plans 78 more stores in 1995. The Associated Press PORTLAND Hollywood Entertainment Corp. wants to make renting a movie as exciting as watching one.

"We try to capture the bright lights, excitement and energy of the motion picture industry," said Mark J. Wattles, the company's 34-year-old president and chief executive. The idea seems to be paying off. The Portland-based company known for its flashy, high-powered superstores has grown from one Hollywood Video store in 1988 to a chain of more than 100, becoming one of the nation's top video rental chains behind giant Blockbuster Entertainment. And there's no sign of slowing down.

Hollywood Entertainment plans to open at least 78 new stores in 1995, not including acquisitions, which accounted for most of the growth this year. "This has to be one of the fastest-growing public companies in America, and it's certainly one of the most profitable," said Bo Cheadle, an analyst with Montgomery Securities. Ten years ago, Wattles left college and was struggling to make ends meet with a "regular old job." His parents had given him and his wife a VCR, which the young couple relied on for cheap entertainment. "I thought, 'There must be other people in America in the same shoes. I think this would be a great he says.

So in 1985, Wattles borrowed money to open a 500-square-foot video store with 300 movies in downtown Portland. Three years later he started Hoi- I Jo-: Wi 'if r-'t I 4 mini mi ir -iiminmriiii The Associated Press VIDEO GIANT: Mark Wattles, standing outside rywood Video, which is among the top video rental his Beaverton store, heads Portland-based Hoi- chains in the nation. transactions at banks NEW YORK Stock brokers who sell mutual funds at banks can't use the bank's customer lists for leads or pay tellers to make referrals under new regulatory rules proposed to protect consumers. The rules are the latest to be proposed by lawmakers and regulators and aimed at banks' mutual fund sales, which has come under scrutiny after customer complaints of misleading sales practices. The regulations resemble existing regulatory guidelines for bank sales, but are much stricter about sales practices, compensation for referrals and what advertising materials can say.

Banks report earnings are at all-time high WASHINGTON The once-teetering banking industry is reporting record profits. Despite a cloud or two, a federal official says, the picture has never looked brighter. Bank earnings were at an all-time high of $11.8 billion in the third quarter, and profits are headed toward another record for the year, the Federal Deposit Insurance Corp. said Thursday. The nation's 10,700 commercial banks made more loans at higher interest rates and also benefited from a drop in bad loans and the lowest loan losses in nearly a decade.

From wire reports DEVELOPMENT lywood Entertainment. Now, Wattles' typical store is 7,500 square feet with 16,000 movies. The company orders as many as 70 copies of a big hit for each store, and may stock as many as 200 copies for a single store. Aside from the huge video selection, what makes Hollywood Entertainment distinctive are its eye-popping stores. Outside is the familiar "Hollywood" sign.

Inside are thousands' of videos and dozens of televisions reverberating heart-thumping music. Neon lights give everything a high-tech glow. Each colorful store generates about $1 million a year in sales. "They have the best-looking stores in the industry, and that's what gives them the highest volume in the industry," Cheadle said. "There's no reason they can't jump all over the country with this concept." They're well on their way.

The company started in Oregon, then spread to Washington, California, Nevada and Texas. New stores opened in Virginia and Utah this month, and plans call for a store in New Mexico by the year's end. Some of those stores are in direct competition with ones owned by Blockbuster, the industry leader with close to 3,000 stores nationwide and about 17 percent of the market. Wattles insists that he can compete with Blockbuster in any market. 'The question is can we both be profitable," he says, "and after doing this for a number of years, the answer is, Tes, we are It's the profit that has allowed that very rapid growth." Market Report Stocks of Local Interest The Dow Industrials Money Tip Agenda Microsoft Wash, software co.

"Stock prices may well need to move lower maybe significantly lower before they can head to 'i 3765--- Close 3765.47 3740 I f-fl 3715 f-j p. 3690' 1 ii 1 -II Frl MonTue Wad Thu $6el 56.00 $61125 include Vodafone, Time Warner, Procter Gamble, Nokia, Merck and Hong Kong Telecom. Other features of the guide, in the magazine's Dec. 26 issuer stock and bond mutual fund rankings and eight funds that should do well in ccming years. They are: Fidelity Equity- Income II (1-800-544-8888)," Harbor Capital Appreciation (1-800-422-1050), Heartland Value (1-800-432-7856), Newport -Tiger (1-800-776-5455), Pimco Total Return (1-800-800-0952), SoGen Overseas (1-800-334-2143), Stratton Monthly Dividend Shares (1-800-634-5726) and Yacktman Today Salem Area Chamber of Commerce Greeters meeting, 9 a.m., Dreamweaver's and Croissant Co.

S. Cafe, 110 Hansen Ave. Salem. Information: 581-1466. The Statesman Journal welcomes Information from the mid-valleycentral coast business community for Its business Agenda columns.

Information should be brought to the newspaper at 280 Church St. NE, mailed to the Statesman Journal, P.O. Box 13009, Salem, 97309 or taxed to 399706. Deadline for material is Thursday of the week before Stock Close Albertson's 29 'A Blooct 3 Bank of Salem 20 Boeing 477 Boise Cascade 25V4 Coachmen Ind 14 Com'l Bancorp 14 Dayton Hudson 79 Epitope 20 First 23 Fred Meyer 29 Gannett Co 51 Hewlett Packard House of Fabrics 1516 Intel 58 Int'l Yogurt Co 2V4 James River 20 KeyCorp 25 Longvlew Fibre 15 Mentor Graphics 13 1316 Microsoft 63 M-Knudsen 13 Nike 68 Nordstrom 45 NW Nat Gas 29 OreMet 6 Oregon Steel 14 Stocks Close PACCAR 45 PacltlCorp 18 Pacific Telecom 30 Pope Talbot 16 Portland 9 Precision Cast ...............19 Price 134 Safeco 50 Sequent 17 Starbucks 25ft SuperValu 23 Tektronix. 36 Teledyne 17 Timberllne gy, T.J.

Int 17 Unlvar 1314 U.S. 22 916 Wash. Energy 13 Wash. Fed. 17 Wash.

Mut. Sv. 17 Western Bank 12V4 West One Bancorp ........25 Weyerhaeuser ...............37 Willamette Ind 44 Willamette Val.vln 4 WTD Industries 1 Courtesy of Smith Barney. higher ground," concludes the lead story in Fortune magazine's annual guide for investors. Investments recommended include five-year Treasuries, real estate investment trusts and stock funds that invest in emerging markets.

Fortune's 30 stocks "for the next millennium" OTHER INDEXES Close Change 20 Transportation 1412.41 18.39 15 Utilities 181.32 1,12 65 Stocks 1249.98 7.44 Volume 332.79 million shares Week's close for past 12 weeks Exchange: OTC.