The Salina Journal from Salina, Kansas on October 15, 1996 · Page 1
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The Salina Journal from Salina, Kansas · Page 1

Salina, Kansas
Issue Date:
Tuesday, October 15, 1996
Page 1
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Fund raising Salina chapter of NAACP hopes to raise $10,000 / A3 GREAT PLAINS Still alive Atlanta routs St. Louis to keep pennant hopes alive / B1 SPORTS'..- • , • Madonna and child: POP singer gives birth to healthy baby girl / A2 New bone marrow transplant gives tiny girl hope / A6 INSIDE % High: 75 Low: 50 Mostly cloudy early today, then decreasing cloudiness /B7 WEATHER > the Stsil<tf*t/i l^'vfli'tf^mil ^aiina jourimi \n<>n •• . ^W -»».. Ann Landers / B7 Classified / B5 Comics / B8 Crossword / B8 Deaths / A9 Great Plains / A3 Sports /B1 Viewpoints / A4 INDEX TUESDAY OCTOBER 15, 1996 SALINA, KANSAS 50 cents PRICE-FIXING CASE ADM to pay $100 million fine Company agrees to plead guilty and pay record fine to $ettle federal price-fixing case by MATT KELLEY [Hie Associated Press ' DECATUR, 111. — Archer Daniels Midland Co., whose products go into everything from shampoo to soft drinks, said Monday that it (will plead guilty to two charges and pay $100 pillion to settle a federal price-fixing case. The fines are the largest ever for a criminal antitrust case but shouldn't harm the bottom line of ' the $6 billion company, analysts said. The agreement announced by ADM, which calls itself "supermarket to the world," is a sig- nificant step to end a scandal that has rocked the agricultural products industry worldwide. But several clouds still hang over the giant grain- and soybean-processing conglomerate, including the fate of two executives targeted in the investigation and scores of civil lawsuits. In addition, fireworks are expected from disgruntled shareholders coming to Decatur for the company's annual meeting Thursday. ADM said it agreed to plead guilty to charges of "anticompetitive conduct" in markets for two corn-derived products: citric acid, used in soft drinks and detergents, and lysine, a feed additive .used to make hogs and chickens bigger and leaner. The company agreed to pay fines of $70 million in the lysine case and $30 million in the citric acid case, although a judge still must de- cide whether to accept the proposed settlement, ADM's statement said. ADM said the agreement "brings to a close all Department of Justice investigations of alleged misconduct by ADM," including a similar probe involving the high-fructose corn syrup used to sweeten soft drinks and other foods. ADM has some close ties to Salina. ADM Milling was established here in 1970 when the company bought Western Star Flour Mill and elevator in downtown Salina. ADM Milling is building a new facility in north Salina. ADM stock was up $1.25 cents at $21.87 '/a per share late Monday afternoon on the New York Stock Exchange. Paying $100 million would not hurt ADM, which has as much as $2 billion in cash reserves, said analyst Richard Elam. BnooKville connection A Brookvilie man, John K. Vanler; sits on the board of directors of ADM and, along with other directors, will stand for re-election at the company's annual shareholders meeting, set for Thursday at Decatur, III. According to documents the company filed last month with the Securities and Exchange Commission, Vanier, 60, holds 9,254,000 shares of ADM stock, which at Monday's closing price is valued at more than $202 million. The ADM proxy statement describes Vanfer this way: "Mr. J.K. Vanier and his family are one of the Company's largest Stockholder groups. Mr. Vanier became a Director in 1970. Prior to being elected to the Company's Board, he was a member of a family operation which Included six flour mills, three soybean plants, three livestock feed mills/and various other enterprises. He is presently Chief Executive Officer of Western Star Ag Resopurces, Inc., a family-held corporation Involving securities investments, rural real estate and livestock operations located in Kansas, Oklahoma, Colorado and Wyoming. He Is past president of American Hereford Cattle Association and past board member of National Cattlemen's Association." Dole steps up criticism of president By TOM RAUM The Associated Press KANSAS CITY, Mo. — Bob Dole stepped up his criticism of President Clinton on Monday for "slipping and sliding" on ethical questions. Dole for the first time personally raised questions about contributions from Indonesian banking interests to Clinton's re-election campaign, and his campaign sent the president a series of questions about the transactions. "We think the ' American people are entitled to the facts," Dole said. "No more slipping and sliding, Mr. President, just answer the questions." At a stop in Kansas City, Dole summoned the name of one of Missouri's revered native sons, saying Harry Truman's comment that "the buck stops here" at the White House had. been rewritten by Clinton. "As Bill Clinton says, the buck doesn't stop anywhere," Dole said. "It just keeps on going. He's not responsible for anything." "He does not have an ethical administration. And we're going to go after that in the debate on Wednesday night," Dole said. Later, at a waterfront rally in San Diego, Dole continued his assault. "Don't try to frighten everyone in America," Dole said as if he were speaking to Clinton. "He said he created 11 million jobs. I met a man yesterday who said he had three of them." In recent days, Dole campaign officials and other Republicans have suggested the administration traded favors for huge campaign contributions from interests associated with the Lippo Group conglomerate. Dole campaign manager Scott Reed called the transactions "potentially criminal" and asked Clinton in a statement: "Why have you used U.S. foreign policy in Indonesia as a fund-raising tool to help secure illegal campaign contributions from a foreigner?" Clinton's aides were peppered with questions about the matter during a tense briefing and dismissed it as a Republican-engineered controversy. Federal campaign finance laws are designed to prevent foreigners from exerting influence in America's political system. Exceptions allow foreigners who are legal U.S. residents and U.S. subsidiaries of foreign corporations to make contributions if the money was earned in the United States. Dole slips on a Kansas City Chiefs cap during the rally. Photos by The Associated Press Hundreds of people jam a downtown plaza Kansas City during a rally Monday for Republican presidential candidate Bob Dole. V WALL STREET Dow hits 6,000 The Dow Jones Industrial average Is breaking symbolic barriers with Increasing frequency. A look at the Dow's thousand-point milestones: ' The average few In created further and faster In recent yean partly dun to tnfatlan and partly due v tpttw nwinenuutcalfifrmitla wed to compute It, which hat btm adjusted repeatedly W reflect cnangei '' Inthettafla' Sky high Dow tops 6,000; professional traders say the sky's the limit By PATRICIA LAMIELL The Associated Press AP/T. Durand NEW YORK — What's true for the World Series of Poker and American Express Platinum Card also applies to the Dow Jones industrial average: There's no limit. The granddaddy of stock market averages, the one recognized by most Americans, closed above 6,000 points for the first time Monday, a powerful symbol of the U.S. stock market's strength. Professional traders on Wall Street regard the milestone as » just another number. But it happened quickly, demonstrating a mathematical trend that suggests 7,000,10,000, 20,000 and beyond could come even quicker. "I don't know how high it can * Small investors take market's rise in stride / Page AS go, and you should hang up on anyone who tries to tell you," said Alfred E. Goldman, a vice president at A.G. Edwards & Sons Inc., a St. Louis-based brokerage firm. Put another way, from the time that Dow Jones first published a stock average in 1884, it took 88 years to close above 1,000. It took 15 years to traverse 2,000, less than four years to pass 3,000 and 4,000, and less than one year to break 5,000, which happened Nov. 21,1995. Cracking each millennium mark is not the big deal it used to be, because each gain represents a smaller percentage as the market steamrolls ahead. Moreover, there is always the possibility of a pullback in the market or a sudden crisis that could spook investors into yanking some money out. But many traders are confident that the market's direction is still up because of a mix of low U.S. inflation and what some believe is the relative attractiveness of U.S. stocks and bonds. In addition, baby boomers worried about their financial security continue to pour savings into mutual funds, which are pools of professionally managed money that heavily invest in stocks. At the same time, many American corporations are buying back shares of stock, which boosts their value and makes shareholders happy. T SALINA CITY COMMISSION Drainage projects discussed City looks at several ways to alleviate water drainage problems By CHRIS KOGER The Salina Journal KISSINGER City officials are proposing a number of projects to alleviate stormwater drainage problems during heavy — and not-so-heavy , — rains. The projects range from the fairly inexpensive replacement of culverts to the more expensive upgrades of roads. City Manager Dennis Kissinger talked about several areas during a one-hour study session Monday afternoon with Salina city commissioners at the City-County Building. No action was taken. Kissinger said the $2 million Schilling Road ditch and drainage improvements, the city's most significant, recent drainage project, will be bid later this month. The project is designed to divert water in south Salina to the east through the flood levy that protects much of the city. "If anything, we are more optimistic about the past, present and future of Bonnie Ridge than many other areas," Kissinger said. The Bonnie Ridge Addition, which includes Scott and Neal avenues in south Salina, received the majority of the damage in the 1977 flood and some minor flooding again this year. .Kissinger said the Schilling Road project should drain water that has swelled ditches along South Ohio Street in the past. The city's project list Projects likely to be included in budgets or at least studied during the next few years include the following: • Putting several larger culverts along Ohio Street. • Replacing cracked concrete south of Cloud Street on Fourth Street and installing a larger ^torm sewer system at the same time. • Changing Marymount Road (from Crawford south to Marippsa) from a rural to an urban street, complete with curbs and covered drains. The street improvements would likely be paid for, in part, through special assessment districts, Kissinger said. Residents in those neighborhoods would be assessed taxes to fund the improvements. Finding solutions to stormwater concerns is not as easy as just diverting water from one area to another, Kissinger said. "Every time you add additional water (to a channel), there's someone downstream," he said. Water accumulates between Republic Avenue and Cloud Street on Broadway Boulevard, and Kissinger said the city might install a swinging crossarm as a short-term solution to problem? caused by traffic. See DRAINAGE, Page A9

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