Albuquerque Journal from Albuquerque, New Mexico • 24

Albuquerque journal ON THE WEB The latest business news from the Associated Press at ABQjournal. Go to www.abqjournal.com 3 DOW NASDAQ NYSE 63942 0.12 1,333.83 -540 B4 IN BRIEF Cities Team Up AgaMsft bill in fiscal 1998 was $2.4 million. Tucson Mayor George Miller, couldn't be reached for comment Thursday. That city has not com-" puted how much the charge would -cost taxpayers, said Kenya Johnson Miller's administrative assistant. West spokeswoman Sedillo Duean said the comDanv has appropriate, a Tristani adviser said.

If the commission finds the charge is too high, the company will have to refund any amount above what the FCC decides is adequate. The new charge will pay part of the company's investment in equipr ment needed so customers can switch local phone carriers without changing phone numbers. The federal rule that allows the charge is intended to foster competition in the telecommunications industry by making it easier for customers to change companies. The rule doesn't specify what carriers can charge. In February, Mayor Jim Baca asked 12 cities in West's service territory to join in fighting the charge.

Tucson was the only one to accept his invitation. Baca said he rates, he said, damage the city's ability to attract new businesses. "This stuff adds up," Baca said. "These high-tech companies come and look at phone charges, and we're not competitive." State regulators ordered US cut its rates by $22 million because it earned that much more than the law allows in 1997. The utility overearned by $28 million in 1998, and the Public Regulation Commission is expected to consider a further rate reduction.

Baca said West should use those overearnings to pay off the investment in equipment. The charges on 2,607 phone lines used by the city would add $60,000 to Albuquerque's yearly phone bill, officials have said. The city's total Albuquerque, Tucson Join To Fight Charge By Tom Mt Ghee Journal Staff Writer Albuquerque and Tucson are trying to force West to reduce a new federally mandated charge. The 54-cent charge added to monthly phone bills in March is "excessive on (its) face," according to a document the cities filed May 7 with the Federal Communications Commission The commission was already reviewing the charge, Commissioner Gloria Tristani said Thursday. The commission expects, to decide in August if the charge is Vitamin Price-Fixing Plot Draws Fine BACA: Excessive phone charges hurt competitiveness TRISTANI: Monthly charge already under review didn't know why the other cities didn't join the effort.

Baca said Thursday that even without the new charge7phone bills in Albuquerque are too high. Those also reached consumers through the cost of animal products, because the vitamins are added to animal feeds. The plotters are the world's largest producers of the most commonly used vitamins. The former director of worldwide marketing for Hoffmann-LaRoche Vitamins and Fine Chemicals Division, Dr. Kuno Sommer, agreed to plead guilty to helping run the cartel and lying to Justice investigators in 1997 to cover up the scheme.

Sommer, a Swiss citizen, agreed The commission also announced charges against the commodities firm, Global Minerals and Metals its president and chief executive officer, and its chief copper trader. The commodities commission filed a civil complaint against the companies and individuals, asking for a hearing before an administrative law judge at the agency to determine if the charges are true and what penalties may be appro 2 Companies To Pay $725 Million Penalty By Michael J. Sniffen The Associated Press WASHINGTON Two giant foreign companies agreed Thursday to pay $725 million in fines for plotting to raise and fix the prices of vitamins used in virtually every American home and added to bread, milk and breakfast cereal. The $500 million fine to be paid by F. Hoffmann-LaRoche a Swiss pharmaceutical company, is the largest federal criminal fine ever imposed in any type of case, Attorney General Janet Reno told a news conference.

A German firm, BASF AG, agreed to pay a $225 million fine for its role in the conspiracy to increase vitamin prices in the United States and around the world. Both companies pleaded guilty in U.S. District Court in Dallas. -t-- Reno and aides said Americans unwittingly paid hundreds of millions of dollars in illegally inflated prices for vitamins and food sta-. pies such as vitamin-enriched bread.

"On a daily basis for the past 10 years, every American consumer paid to eat and drink or use a product whose price was artificially inflated," Reno said. The vitamin cartel was the "most pervasive and harmful criminal antitrust conspiracy ever THE ASSOCIATED PRESS PRICE-FIXING DISCLOSED: Attorney General Janet Reno, left, and Deputy Attorney General Gary Spratllng meet with reporters Thursday at the Justice Department in Washington. They announced that two giant foreign drug and chemical companies agreed to plead guilty and pay a $725 million fine for conspiring to raise and fix the price of Five biggest fines The five largest fines levied under the federal Sherman Antitrust Act, according to the Justice Department: 1. F. Hoffmart-LaRoche, $500 million, announced Thursday for vitamin price-fixing.

2. BASF, $225 million, announced Thursday for vitamin price-fixing. 3. SGL Carbon, $135 million, announced May 4 for price-fixing in graphite electrodes, used to generate heat during steelmaking. 4.

UCAR International, $110 million, announced April 7 for price-fixing in graphite electrodes. 5. Archer Daniels Midland, $100 million, announced in 1996 for price-fixing in citric acid, used in soft drinks and detergents, and lysine, a livestock feed additive. The Associated Press to serve a four-month prison term and pay a $100,000 fine. "For the first time in our history, a European national will plead guilty and, subject to court approval, will serve four months in prison" for price-fixing, Klein said.

priate. Possible penalties include an order requiring the companies and individuals to refrain from future violations of federal commodities laws and civil fines and restitution of damages, the agency said. The case stems from a scandal that rocked the world copper market in 1996, based on trades that occurred as much as 10 years beforehand. Journal Staff and Wire Reports Investor Concern Dampens Market NEW YORK Stocks fell Thursday as lingering concerns about high-tech companies sapped the modest gains of a market still struggling to find a direction. Market Jones DW 0 I Watch industrial average fell 20.65 to close at 10,866.74.

The index of blue-chip stocks was higher for much of the session, and the decline was concentrated in the final half-hour of trading. Broader stock indicators were mixed. The Standard Poor's 500 dipped 5.40 to 1 ,338.83, and the technology-dominated Nasdaq composite index fell 35.17 to close -at 2,542.23. The NYSE composite index fell 0.12 to 639.42. The American Stock Exchange composite index rose 3.67 to 792.03, and the Russell 2000 index of smaller companies rose 1.88 to 448.02.

Loan Fair Program Today, Next Week ACCION New Mexico continues its loan fair program today and May 28 with informational sessions at two North Valley locations. ACCION is a nonprofit that jmovides credit, training and support to small business owners who have trouble getting financing. Today's fair will be atPajitaville, 6313 Fourth NW, from 3 to 5 p.m. On May 28, the fair will be at Dion's Pizza at 5937 Fourth NW, also from 3 to 5 p.m. Admission to both is free.

ACCION offers entrepreneurs a streamlined application process for loans from $200 to $50,000, including varying lines of credit. For more information, call 243-8844. Top Ford Executive To Retire in Fall DEARBORN, Mich. Ford Motor Co. chief financial officer John M.

Devine has decided to retire at the end of September, the nation's second-biggest automaker announced Thursday. Vice Chairman W. Wayne Booker will assume the additional role of chief financial officer on July 1, Ford said. It said Devine will remain to help with the transition. Devine, a 31-year veteran of Ford, had also held the title of executive vice president.

Devine became chief financial officer in 1994. Before that, he spent six years as president, and later as chairman, of First Nationwide Bank, which then was a Ford subsidiary. Contaminant Spurs Recall of Mascara NORTH ARLINGTON, N.J. A company issued a worldwide recall of nearly 30,000 tubes of mascara that may contain bacteria that could be dangerous to users who already have other diseases. A.M.

Cosmetics of North Arlington is recalling Wet 'n Wild Megalash Mascara Recall aistrioutea aoout i rj rive montns ago. The recall applies to Lot Nos. 161298 and 171298. The U.S. Food and Drug Alert Administration said the mascara may contain the bacterium Burkholderia cepacia, which can be fatal to people suffering from cystic fibrosis or weakened immune systems.

Company officials believe the bacteria entered the mascara through contaminated water used in McDonald's Names Its 4th Chairman CHICAGO McDonald's Corp. on Thursday named Jack Greenberg, who has been credited with helping the fast-food chain make a sharp turnaround in recent months, its. chairman and chief executive officer. Greenberg, who had been the company's president and chief t-xecutive officer, becomes only the fourth chairman since McDonald's was founded in 1955. His promotion was announced at McDonald's annual shareholders meeting and is effective immediately.

Analysts have praised Greenberg for steering the chain in the right direction over the past year. 1t spent $400 million to provide num- ber portability. West is cooper' ating with the FCC and expects to demonstrate that its costs are corV rect, she said. West's rebuttal is due to the FCC today. -Among the monthly charges -assessed by companies other than Z-U West are: Ameritech, 41 cents; GTE, 38 cents; and Sprint, 48 cents.

U.S. exports minus imports, in billions, seasonally adjusted A ASOND i 98 '99 Trade deficit shows imbalance between U.S imports and exports; It is affected by currency exchange rmes, U.S. buying habits, economic health of trade partners SOURCE: Census Bureau KRl U.S. Trade Deficit At Record New High Set For 3rd Straight Month i By Martin Crutsinger The Associated Press WASHINGTON America's trade deficit soared to a record high for the third straight month in March as the politically sensitive deficit with Japan shot up to the highest level in more than four years. The Commerce Department said Thursday that the March deficit of $19.7 billion was 2.9 percent higher than the previous record of $19.1 billion in February.

So far this year, the U.S. trade deficit is running at an annual rate of $222.6 billion, nearly one-third higher than the all-time high of $169.3 billion set last year as the global financial crisis continues to wreck havoc with America's trade performance. "The trade data released today confirm the continuing strength of the American economy. These data also show the continuing weakness of much of the rest of the world," Commerce Secretary William M. Daley said Thursday.

"To improve our trade balance, we will have to continue to focus on improving economic conditions abroad and ensuring that foreign markets are open to American firms." There were some glimmers of -hope in the March report. U.S. exports, which had fallen for four straight months, staged a small rebound in March, climbing by 0.9 percent to $77.5 billion as exports of farm goods were up 2.5 percent, led by rising sales of soybeans and corn. But strong consumer demand in the United States caused imports tcr rise even faster, climbing 1.3 per cent to a record $972 billion. Imports of foreign cars and parts hit an all-rime high of $14.9 billion, a 2.5 percent increase over the previous month.

But a separate report on steel imports showed that they fell by 14 percent in April, based on preliminary data, a good sign for the country's beleaguered steel industry, which has been battered by a flood'of cheap imports the past two years. Meanwhile, the Labor Department issued a report showing that America's strong economy was continuing. The number American? filing new claims for unemployment benefits fell by 12,000 last week to 299,000, a sign that tight labor market conditiojis were continuing il" Ill -150 5 -200 "rH, 'SB '98 r'Hrs lr -io -70 Merrill Lynch Charged in Copper Manipulation uncovered," said Assistant Attorney General Joel I. Klein, Reno's antitrust chief. The cartel boosted the price of more than $5 billion in products sold in this country, he The scheme lasted from January 1990 into February 1999.

The plotters boosted the cost of vitamins B2, B5, and beta carotene those most commonly taken as pills or added to enrich human foods like bread, milk, orange juice and breakfast ceieal. These illegal price increases sion, said the action capped a three-year investigation of "one of the most serious worldwide manipulations" of a commodity in 25 years. Merrill denied the allegations and said it will defend itself. The Wall Street firm said it fully cooperated with the commodity commission's three-year investigation andwas "extremely disappointed" that the agency decided to proceed with charges. Channel 2 By Marcy Gordon The Associated Press WASHINGTON Federal regulators on Thursday charged Merrill Lynch Co.

with allegedly helping a commodities firm to manipulate the world copper market and artificially force prices higher in late 1995. Geoffrey Aronow, the enforcement director for the U.S. Commodity Futures Trading Commis KASA-TV Put on Media Market and productions in Texas play well across the state, but not necessarily outside it. KASA and a Honolulu station do not fit any of the three clusters, Gaar said. Both were put on sale Wednesday.

"It's very early in the process," Gaar said about whether there had been any inquiries about buying KASA. Prospective buyers are likely to be television group owners with existing holdings in the region. The price tag for KASA wasn't disclosed, but Gaar said it would be 12 to 20 times the. amount of the station's annual revenues, which he would not reveal. KASA general manager Erick Steffen had no comment when asked about the possible sale.

KASA, which has 48 employees, went on the airwaves in Albuquerque in May 1981. In 1985, it became one of the first affiliates of the Fox Network. In the February sweeps, KASA's reruns of the sitcom "Friends" beat all local evening newscasts in the 18-49 age group in Albuquerque. KASA was one of nine television stations attached to Belo's acquisition of The Providence Journal, a major metropolitan newspaper in Rhode Island, in February 1998. "Often, when you make larger acquisitions, you have to operate the assets for a year or year and a half before you know which fit with the company's focus and strategy," Gaar said.

By Richard Mf.tcai.f Journal Staff Writer The Dallas company that owns KASA-TV Channel 2 has put the Albuquerque station on the market. "KASA is an excellent station and does very well financially," Harold Gaar, a spokesman for A.H. Belo said Thursday. "It just doesn't align with Belo's holdings in the Southwest." Belo owns 17 network-affiliated stations, six newspapers and two cable news channels clustered in three geographic areas: Texas, the Pacif-ic Northwest and the Mid-Atlantic region. "You create a synergy in clusters of stations in geographic regions," Gaar said, adding that news Columbine Prompts Gun Group To Drop Ad Series "It was a difficult decision, but we felt that after Littleton, the messages in these ads might not be as appropriate, might not be as relevant in the context of this moment," he said.

"There is so much emotion surrounding this issue, we felt our message would be lost." Painter said "foundation officials also didn't want to offend readers. "There was an understandably emotional reaction against everything that has to do with firearms," he said. By Skip Woi.i.knbfw; The Associated Press NEW YORK A gun industry trade group dropped a fledgling magazine advertising campaign aimed at changing perceptions about firearms soon after last month's Colorado high school slay-ings. The National Shooting Sports Foundation" had launched the campaign in late March with plans to spend $1 million a year running it for three years. The campaign was aimed at letting opinion leaders know that millions of Americans use rifles and guns responsibly for hunting and target shooting despite widespread associations of guns with crimes and violence.

But the foundation's executive director, Doug Painter, said Thursday the campaign was pulled a few days after the April 20 shootings at Columbine High School in Littleton, left 15 people deadj On Thursday, authorities said a student at a school in Georgia shot six classmates before surrendering. In Washington, the Senate approved fresh restrictions on firearms sales at gun shows and pawnshops. Clive Chajet, who heads his own corporate image consultancy in New York, said the gun industry group had no alternative to ending the ads. "Anybody who attempts to promote the use of guns at this point in history is, pun intended, shooting themselves in the foot," he sajjd..