The Californian from Salinas, California • 14

Galifornian www.californianonline.com BRIAN GAYLORD, BUSINESS EDITOR Phone: 754-4285; Fax: 754-4293; E-mail: bgaylordsalinas.gannett.com Datelines 1 tl em Compiled from wire reports Ecomiomy hhb 0 SAN FRANCISCO Schwab calls for more layoffs Slumping stock broker Charles Schwab Corp. on Monday said it will resort to more mass layoffs after concluding the dismal market conditions are unlikely to improve this year. Paul O'Neill said more can be done for ecomomic recovery. VP I it gress last year, along with the Federal Reserve's 11 interest rate cuts, for pulling the economy out of a recession that began in March of 2001. But O'Neill said more needs to be done to help the recovery.

After hosting a session on the recovery and job creation at Bush's economic forum today, O'Neill will travel to Portland, Seattle and Denver this week to talk to people about the economy, visiting a variety of factories and schools. are predicting sluggish growth for the second half of this year, while others worry that the recent plunge in stock prices triggered by a wave of corporate accounting scandals might push the economy into a "double dip" recession. "I don't see the basis for that in the data that we are looking at," O'Neill said. "No, at the moment, I don't see a double dip out there." O'Neill credited the $1.35 trillion tax-cut package advocated by President Bush and passed by Con heads into midterm elections. O'Neill dismissed charges from prominent Democrats that the administration is only interested in hearing from like-minded Republican business executives who support Bush's policies.

He also dismissed the notion that the timing of the forum had anything to do with Wednesday's deadline for top chief executives to certify with securities regulators that their financial statements are accurate. Some private economists "The fundamentals of our economy, I continue to believe, are sound," O'Neill said. His upbeat remarks come a day before President Bush convenes a summit in Texas on the struggling economy and the Federal Reserve examines its policy on interest rates, which are now at 40-year lows. The sputtering economy is posing a political challenge for Bush, with Democrats sharpening their attack on the administration's handling of the economy as the country TREASURY SECRETARY DOESN'T FORSEE RECESSION 'Double dip' not likely By Jeannine Aversa The Associated Press WASHINGTON Treasury Secretary Paul O'Neill doesn't see the U.S. economy falling back into a recession, despite stock market turbulence, Americans' The San Francisco-based company will start the purge by closing an Austin, Texas call center and prun eroding confidence and a fitful recovery.

In an interview with The Associated Press on Monday, O'Neill expressed confidence that current difficulties, including the roller-coaster stock market, would be overcome. ing jobs from other call centers in Denver, Indianapolis, Phoenix and Orlando, Fla. The Austin office closure will jettison 300 workers and the cuts in the call centers outside Texas will eliminate another 75 jobs, company said. Even more firings will occur after management spends the next one to two months map Presidential forum under way Local Digest ping out ways to lower its operating expenses by $200 million annually. NEWY0RK Senate confirms energy chief Freeman to head state power authority By Jim Wasserman The Associated Press SACRAMENTO The state Senate, in a fiery two-hour debate that stirred old passions about rolling black Enron insiders ask 2 3 2 jmm C.

(TiV3 Ik, WiTcY1 outs and price manipulation by now-bankrupt energy traders, confirmed the nomination Monday of 76 -year- I i i- 1 4 I'- old S. David Freeman as the state's top energy chief. Freeman, a blunt- talking 40-year public power veteran and choice of Gov. for extra pay Among a group of laid-off Enron workers who are asking a bankruptcy court for extra pay are five insiders who reaped $7 million in the year before the company's collapse. They include the wife of former chief executive Jeffrey Skilling.

The five insiders joined 49 other former colleagues in opting out of a tentative agreement negotiated earlier this summer that would give some 3,550 laid-off workers as much as $13,500 each in severance. Instead, they filed individual claims with several seeking hundreds of thousands of dollars more from the bankrupt energy company. SAN FRANCISCO Court delivers hit to State Farm A Mendocino County Superior Court jury awarded $12.6 million to two former State Farm Insurance Ml -A Gray Davis to steer billions of dollars toward building new state power plants, prevailed over Republican opposition in a 25-13 vote. THE ASSOCIATED PRESS Republicans furiously Compiled from wire reports NEWS IN BRIEF Judge may halt packing business A farm labor-contracting company operating in Monterey County has until Friday to pay $25,000 in back wages or it will be barred from operating in California, according to an injunction issued in Monterey County Superior Court. Judge Robert O'Farrell ruled Thursday that Yuma, Mireles Harvesting Packing must post a bond to cover the wages.

The ruling also barred the company from transfering ownership to another group. The legal order stems from a complaint filed by California Rural Legal Assistance in Salinas on behalf of five field workers employed in Monterey County who complained of bounced checks and nonpayment of wages. Radio station debuts under new name News talk radio station KTXX-1460 AM debuted Monday under a new name KION radio which symbolizes a partnership with the television station. Both stations are owned by Clear Channel Communications. Radio station program director Mark Carbonaro said the partnership will allow the station to capitalize on the KION's reputation for news coverage and enhance the ability to cover local news on the radio.

"They'll do some reporting for us," Carbonaro said. The radio station format will remain the same, he said. PEOPLE Amish Shah joins Natividad Medical Dr. Amish Shah, has joined the medical staff at Nativi Bruce Zanca, second left, a consultant working advance for the White House, briefs federal and corporate staff members Monday at Baylor University in Waco, Texas, which is the site for today's economic forum. Bush aims to avoid economic woes painted Freeman as incompetent, unqualified and unworthy of the job he has held since last August.

But a Democratic majority, even while acknowledging discomfort with Freeman's track record during last year's energy crisis, backed Davis' nominee to chair the California Consumer Power and Conservation Financing agents blocked from selling Authority. Freeman's responsibilities include issuing up to $4 bil lion in bonds to buy, build or lease power plants, and another $1 billion to spur energy conservation. competing policies to former customers after State Farm fired them in 1999. After concluding State Farm acted with malice toward former agents John W. Wier and Richard L.

Pyorre, the jury late Monday decided State Farm should pay a total $6 mil Sea Jackie Speier, D-Daly City, called it her toughest choice on a gubernatorial nominee in a decade. lion in punitive damages to Speier and other Democ sumer confidence. Most of the president's Cabinet was headed for the campus of Baylor University in Waco about a half hour's drive from the president's central Texas ranch. Bush's advisers hope the session will demonstrate that his administration recognizes that Americans are anxious about the fragile economy and turbulent stock markets. "I see this as an opportunity to have a concentrated engagement with 200-250 people whose opinion I respect," Treasury Secretary Paul O'Neill said in an interview with The Associated Press.

The scheduling itself is curious. The forum coin Analysts question president's timing By Tom Raum The Associated Press WASHINGTON President Bush is intent on avoiding the economic policy pitfalls that tripped up his father. Tuesday's economic forum in Texas is part of that effort, intended to show him engaged with the nation's problems even as he vacations. Democrats are belittling the forum with its hand-picked participants as a public relations gesture. Many economists are skeptical that it will do much to calm the jittery economy or restore con cides with a meeting of Federal Reserve policy makers and comes a day before the chief executives of publicly traded companies must certify to the Securities and Exchange Commission the accuracy of their financial statements.

Some analysts see the timing as an effort by the White House to get out in front of any negative developments on the corporate accountability front that could further roil the markets. Few analysts expected much from the forum. But some suggest it can do no harm and does show the president involved in the economic-policy process. With control of both houses of Congress at stake in November's midterm elections, Democrats have been quick to pounce. Democratic party chief Terry McAuliffe cited an "administration adrift" and sought to revive criticism Democrat Bill Clinton leveled against Bush's father in 1992 that he was out of touch with economic concerns of ordinary Americans.

"A decade later, it's a different George Bush, but the same, message," McAuliffe told a weekend meeting in Las Vegas of the Democratic National Committee. rats joined Republicans the men. Superior Court Judge Richard Henderson scheduled an Oct. 11 hearing to review the verdict and damages. DILBERTBy Scott Adams questioning Freeman's role as head of the Los Angeles Department of Water and Power, when it joined Texas-based Enron and other power generators charging California high prices for electricity.

An audit found LADWP charged the state more than 50 percent above cost for power. dad Medical Center as staff anesthesiologist for surgical services. He received his medical Investors question rates cut Drought dries up crop estimates degree from New York Medical College, Valhalla, N.Y. He completed his undergraduate studies with a bachelor's degree in Environmental Toxicology from the University of California, Davis. Fed may not reduce them after all 'People are just waiting to see what the Fed is going to Robert Streed, portfolio manager Shah completed his resi Prices not likely to increase soon "THE FEMALES OF THE GROUP DO ALL THE HUNTING.

THE ONE I CALL ALICE STALKS PREY." I 'SHE POUNCES. HER RAZOR-SHARP WORDS I TEAR THE PREY TO SHREDS. 1 'THE RESULTS ARE I GRUESOME. ONLY THE I HYENAS ARE Mjgsi LAUGHING dency and internship in By Lisa Singhania The Associated Press NEW YORK Wall Street stalled Monday as anesthesiology and clinical surgery at UCLA. CALENDAR TODAY WRITING YOUR BUSI investors took profits from last week's big rally and considered the possibility that the Federal Reserve lowest since 1995.

Forecasts for other commodities also were lowered Monday. Officials expect soybean production to drop 9 percent from last year to 2.63 billion busheis. Wheat will be down 14 percent at 1.69 billion bushels, and the cotton crop will be 9 percent lower at 18.4 million 480-pound bales. Farmers may get some short-term relief from the hot summer weather this week. The National Weather Service is forecasting about an inch of rain over the western Corn Belt and a cold front may sweep across the Midwest.

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The Dow Jones industrial average closed down 56.56, or 0.7 percent, at 8,688.89, cutting short a four-session winning streak and into its 432-point gain last week. Broader stock indicators were mixed. The Standard Poor's 500 index slipped 4.84, or 0.5 percent, to 903.80. The Nasdaq composite index was little changed, rising 0.72 to 1,306.84. Although the market's losses narrowed late in the day, analysts were hesitant to read too much into the move, noting that trading volume was light suggesting most investors were staying away or locking in gains from last week's powerful rally.

"There's just not much going on today. People are just waiting to see what the Fed is going to do (today), who does or doesn't sign their financial documents on the 14th and to see if market can continue its uptrend," said Robert Streed, portfolio manager of Northern Select Equity Fund in Chicago. By Emily Gersema The Associated Press WASHINGTON The drought that has struck many areas of the country is cutting into corn, soybean, cotton and wheat production this year, but the losses are not likely to lead to higher consumer prices anytime soon. In its latest forecast Monday, the Agriculture Department predicted 2002 corn production will total 8.89 billion bushels, 7 percent below last year and the might not cut interest rates after all. Blue chips pulled back slightly, while technology shares managed a small gain.

Analysts said would-be buyers wanted to see what retail earnings and other economic data looked like, and whether companies would meet a government deadline to certify financial statements later this week. WED. 814 SMALL BUSINESS WORKSHOP, "Starting Your Own Business," 9-1 1 a.m., California Coastal Rural Development 22 1 S. Main St, Suite 301 Salinas. Pre-register, S20 workshop.

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