Pensacola News Journal from Pensacola, Florida • 36

i i. i rfrf Pt tH tttti 1 Journal CareerPath Put your resume online Click on the Job Link button at. www.PensacolaNewsJournal.com TUESDAY, MARCH 7. 2000 mm as QirainMSo agaiiut mMspami wart 1 1 -LP ijii iiibuiii i i uiiiuiiiiiiimiiiwiiii 1 1. fl rrt Sr of hundreds who sang "Happy Birthday, Mr.

Chairman" to the man who turned 74 on Monday helped to send blue-chip stocks plunging on Wall Street. The Dow Jones industrial average, after gaining 505 points last week, fell 197.70 points on Monday to close at 10,170.50. Many analysts said it was significant that Greenspan chose a conference on the "New Economy" at Boston College in Massachusetts to elaborate on concerns that America's record-breaking economic expansion could be ended by a resurgence of inflation unless growth slowed to a more sustainable level. He said red-hot consumer Fed could raise interest rates to slow stocks Associated Press WASHINGTON Federal Reserve Chairman Alan Greenspan said Monday that if the high-flying stock market loses some of its zip, that will help slow the supercharged U.S. economy to a more sustainable pace.

But in echoes of warnings he gave Congress last month, Greenspan served noticed that the central bank would help that process along with more interest rate increases if necessary. His remarks to an audience pared to do more. The central bank has pushed the federal funds rate, the interest that banks charge each other, up a full percentage point to 5.75 percent. That in turn has lifted commercial banks' prime lending rate, the benchmark for millions of business and consumer loans, by a full percentage point to 8.75 percent, its highest level in nearly five years. David Jones, chief economist at Aubrey G.

Lanston Co. in New York, said he viewed Greenspan's comments as evidence that the Fed is growing more concerned about the economy's continued strength despite the previous rate increases. demand, which has been met increasingly by imported goods, had driven the nation's trade deficit to unsustainable levels. In addition, he said, the lowest unemployment rates in 30 years raised the prospect that workers will begin to demand much higher pay. Such demands "would intensify inflationary pressures or squeeze profit margins, with either outcome capable of bringing our growing prosperity to an end," Greenspan said.

Private economists viewed Greenspan's remarks as a clear signal that the central bank, which has already boosted interest rates four times since last June, is pre -J Associated Press Federal Reserve Chairman Alan Greenspan, right, celebrated his 74th birthday warning against inflation. Cellular South will buy into area market A new telecommunications brand is entering the Pensacola market. Jackson, Cellular South said Monday it will acquire, for an undisclosed price, wireless service assets, including PCS licenses, from Alltel Communications Inc. in South Alabama and Northwest Florida. The deal, which is subject to regulatory approval by the Federal Communications Commission, will give the company a service area stretching from Bay St.

Louis eastward to Destin along the 1-10 corridor. Company plans for the newly acquired service areas in the Florida Panhandle involve a combination of new towers and acquiring existing towers as they become available. Cellular South is the largest provider of wireless service in Mississippi. Radio stations could get a new owner Two Pensacola radio stations, WMEZ-FM and WXBM-FM, could be getting new owners under a divestiture plan announced Monday by Clear Channel Communications. Clear Channel Communications the nation's largest radio company, said it will sell 72 stations in connection with its pending acquisition of AMFM Inc.

The divestiture is aimed at allaying potential antitrust objections Jo the pending merger. Potential buyer for the Pensacola stations is Urban Radio Broadcasting. Cultures clash near Silicon Phony ads cost millions I 1 T3t 1 1 .1 i ft ML Valley been earning over the limit ever since he started receiving Social Security. "I'm still paying into it, too. I feel like I've earned the money that's due me.

"The limit penalizes those of us who want to work, and it irritates me." President Clinton has said he will sign the bill into law unless it's encumbered by unacceptable amendments, as has happened to similar measures in the past. Associated Press contributed to this report. lllT-lET 1 Associated Press Allen mixes with the Silicon Valley overflow in downtown Santa Cruz, Calif. Associated Press WASHINGTON Instead of hauling in promised big bucks, Americans are losing millions of dollars by responding to phony business opportunities touted in classified ads, government authorities said Monday in announcing a wave of cases against such promotions. The Federal Trade Commission, the Justice Department and state attorneys general and securities officials have filed complaints against 68 operations they accuse of deceiving people about work-at-home and other business ventures, such as renting out vending machines.

To raise awareness, more than 100 newspapers have agreed to publish classified ads informing consumers of what to look for in legitimate business promotions, officials said. Additionally, 85 of the papers have agreed to screen out deceptive ads, such as those that make earnings claims without disclosing how much previous participants actually have made. The promoters targeted consumers whose short teaser ads promise the chance to make money in various business plans. For example, some ads promise that by stuffing envelopes at home, people can easily earn thousands of dollars. Others claim participants can take in $10,000 monthly by owning and operating pay phones.

Prospects who requested more information received deceptive pitches about how much help they would get in setting up their businesses and how much money they would make, said Steve Gurwitz, assistant director in the FTC's Division of In some cases, consumers paid as much as $5,000 to $7,000 for vending machines or pay phones they were told they could operate for profit. The companies advertising these ventures often furnished people old equipment and could not secure them the kinds of locations that would actually bring in money, officials said. Federal rules require companies selling franchises and other business ventures to provide potential customers with disclosure information that includes the identities of current and former franchisees. Unemployed resident Mike jammed, housing prices have soared and office buildings and corporate campuses Cisco, Intel, Apple, IBM, Sun and more have replaced the rows of peach trees. On clear days, Silicon Valley residents can still see the redwood-covered Santa Cruz mountains that separate their freeways, office parks and gated communities from the coastal havens of Half Moon Bay, Santa Cruz, Monterey and Carmel.

A new company opens in Santa Cruz County every two weeks, according to High-tech execs line up for Bush WASHINGTON Still angry about John McCain's votes against limiting lawsuits and his effort to reduce a key tax deduction, some Silicon Valley executives have told the Republican Party they won't back the Arizona senator if he is the nominee. Bush has championed education reform, and led a successful campaign in Texas to limit lawsuits, two top priorities of the high-tech community. McCain, on the other hand, has angered high-tech executives on several occasions. In 1995, he was one of just four Republican senators to support President Clinton's veto of legislation restricting shareholder lawsuits. And McCain has introduced legislation to eliminate' the full corporate tax deductibility for certain stock options.

Associated Press Cybercoast means more traffic, crowds Associated Press SANTA CRUZ, Calif. -California's idyllic Central Coast, once dubbed "the land of endless summers" by Spanish explorers, is rapidly transforming into the "Cybercoast" as technology workers and corporations overflow from the neighboring Silicon Valley. "How could it get worse?" said James Crowell, a 26-year-old resident who cruised a technology business fair here last week. "This is San Jose 20 years ago." California's Central Coast, stretching about 150 miles from Montara to Monterey, is home to about a dozen communities with a total of about 500,000 residents. Inland and parallel to the coast on the same stretch, more than 2 million people fill the burgeoning cities south of San Francisco.

"The Silicon Valley is probably the most dynamic economic development area in the entire world," said Gary Patton, who heads Land-Watch Monterey, a conservation organization. "It's putting incredible pressures on the Central Coast." Twenty years ago, Silicon Valley once known as "Prune Valley" was lush with orchards, fruit-packing plants, clean air and affordable homes. The high-tech boom has raised incomes substantially and practically eliminated unemployment, but the small-town quality of life in places like Sunnyvale, Campbell, Cupertino and Mountain View is gone. Schools are now overcrowded, traffic is regularly Seniors By Taris Savell News Journal correspondent Pensacola seniors just over the age of 65 say they're eager to earn more and pocket a bigger share of their paychecks. A bill in Congress proposing to remove the Social Security earnings limit for those 65 to 69 is a good idea and should have been passed years ago, Sonya Rutledge, 69, said.

Passage of the bill would benefit numerous area residents now being penalized DOW JONES Close: 10,170.50 NASDAQ Close: 4,904.85 500 Close: 1,391.28 Matthew Herman, a senior account manager at the Hall Kinion employment agency inCapitola. The Santa Cruz Chamber of Commerce, which sponsored the high tech business fair on the same day and block as the weekly downtown Farmers Market, says it's not going to follow the Silicon Valley's path to environmental havoc. "The key is to maintain the quality of life that is here, rather than growing willy nilly," said Greg Carter, the chamber's sales rep. $3 earned over the limit. Rutledge now works part-time as manager of the Bayshore Condominium in Warrington.

Until December, she had worked as full-time manager of Shipwatch Surf Yacht Club. "I was making way over the Social Security limit, and it was like part of my salary was being paid to them. Now I work only up to the limit of what I'm allowed to earn." Roger Doyle, 66, of Pensacola, worked in banking for 30 years and paid into applaud likely end to earning limit I Business Expo 2000 kicks off Wednesday Expo-goers will be able to browse the wares of 88 area businesses at Business Expo 2000 being staged at Bayfront Auditorium Wednesday and Thursday. The free expo, sponsored by the Pensacola Area Chamber of Commerce, features workshops and door prizes, plus the Business After Hours social for networking and new contacts. The one-hour workshops are at 11:30 a.m., 1 and 3:30 p.m.

each day. Topics on Wednesday are PR dos and don'ts, becoming the employer of choice, and credit and collection procedures. Thursday topics are internal relationships, e-commerce and digital vs. analog copiers. The show opens at 1 1 a.m.

each day, and runs till 5 p.m. Wednesday, 7 p.m. Thursday. Details: 438-4081. Interest rates rise in Treasury auction WASHINGTON Interest rates on short-term Treasury securities rose in Monday's auction.

Rates were the highest in almost five years. The Treasury Department sold $9 billion in the three-month bills at a discount rate of 5.690 percent, up from 5.670 percent last week. An additional $8 billion was sold in six-month bills at a rate of 5.825 percent, up from 5.765 percent. The three-month rate was the highest since May 22, 1995, when the bills sold for 5.72 percent. The six-month rate was the highest since May 1, 1995, when the rate was 5.84.

The new discount rates understate the actual return to investors 5.852 percent for three-month bills with a $10,000 bill selling for $9,856.20 and 6.085 percent for a six-month bill selling for $9,705.50. for wanting to be productive, said Jim Speed, a tax preparer for Saltmarsh, Cleave-land Gund, who's not in that age bracket himself. "The current system encourages people to just sit on the porch and do nothing." The U.S. Senate has promised quick action on a bill already passed by the House of Representatives, by a 422-0 vote, which would remove the $17,000 cap on earnings for those receiving Social Security. Current law costs the senior $1 for every the Social Security system for 40 years.

Now he has his own business, Southeastern Publishing. "In '99, I had to be very careful not to have personal income over the $17,000 limit. I lost some business because of it." He figures this year, unless the law is changed, he'll just have to bear the penalty. Reason: "I'm going to make the money this year." Ben Davis, 67, works as an engineering consultant for the airline industry and has MARKET SUMMARY PEOPLE ON THE MOVE Ashley H. Schubert Jr.

has been promoted to senior vice president of Bank of Pensacola. Formerly vice president, he has been with the Bank of Pensacola for four years. His responsibilities include commercial lending, loan administration supervisor, and STOCK INDEXES Close Change Dow Jones Ind. 10170.50 196.70 Consolidated volume 1,281,462,470 Up 1,142 Unchanged 432 Down 1,921 20 Trans. 2376.09 58.36 15 Utilities 280.80 9.40 500 1391.28 17.89 NYSE Composite 604.02 6 .45 Amex Index 102236 865 NASD Composite 4904.85 9 94 Russell 2000 601.64 345 GOLD AND SILVER Gold (Comex) $287.90 $0.90 Silver (Comex) $5,053 $0,046 TREASURY BONDS Yield Change 30-year bond 6.14 Prime Rate 8.75 NYSE Qwest Communications, down 6 at 57 Vi West, down at 74 Qwest acknowledged talks with Deutsche Telekom of Germany about a deal to acquire both Qwest and West the Denver-based Baby Bell that Qwest is acquiring.

West, which was kept in the dark about the negotiations, threatened on Friday to sue Qwest if the company backed out of its contract to buy West tor stock now worth $56 billion. NASDAQ Palm, down 17 Vi at 63 Vi, 3Com, down 13 V4 at 69 ft Palm and corporate parent 3Com retreated for a second session after soaring on Thursday, when Palm began trading following an initial public offering. WIDELY HELD STOCKS Pet YrPct Stock Last Chg. Chg. Chg.

53fc -1V -25 5.0 BellAtt 57 1" 3.1 BellSouth 44 -1V Disney 36 23.1 ExxonMob 72 -2 -36 GTE 67 1' 2.3 GenElec 137' -1V4 -1U Intel 117 -1'A 42.6 IBM 5 103V4 -5 Lucent 73 2V 2.9 -12 Merck 56 -'A Motorola 180 5VW 3.0 22.7 SBC Com 43 -2Vn WalMarts 49V4 -3' Stocks included are Itmse held by the largest number of accounts at Merrill Lynch. complianceCommunity Reinvest- Schubert ment Act officer. Schubert graduated from Berry College in Rome, with a degree in business administration. He is a member of the Fiesta Forces and the Class of 2000 for Leadership Pensacola. Bank of Pensacola is owned by Synovus Financial a multi-financial services company which operates 38 banks, located in Georgia, Alabama, Florida and South Carolina.

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