The Journal Times from Racine, Wisconsin • 9

How will Icahn play his Texaco cards? underpressure to liquidate something," said Kosario llacqua, a vice president at Nikko Securities Co. International Inc. "But if he believes the assets are worth $70 to $80 a share, why would he sell at $46?" Asked if Texaco had been in contact with Icahn regarding the disposition of his holdings, a spokeswoman said the White (Mains, N.Y. -based company "does not comment on the activities of our shareholders." But a source close to the company said: "Obviously (Texaco) is concerned about Icahn, they know that he is not someone you take lightly." Icahn's concession of defeat in a heated proxy contest for five seats on Texaco's board does not put the oil giant's management in the clear. Some experts speculate Icahn might be waiting to see just how close he came In the battle, which took place last month at the company's annual meeting.

Texaco has said it would take between three and four weeks for an official tally, and results are expected soon. Meanwhile, Texaco is busy in its own restructuring, which includes a $3 billion payment to Pennzoil Co. to settle a lawsuit resulting from Texaco's 19fi4 acquisition of Getty Oil Co. after Pennzoil had made earlier moves to acquire Getty. price.

"The bottom line is that neither Texaco nor Icahn want to see the shares go down," said Paul Ting, an analyst at the investment firm Oppenhcimer Co. Far more handsome would be the sale of Icahn's shares in a block to a third party willing to pay a heftier price. At $'0 a share, the price Icahn put on the table In his proposed $14 billion-plus buyout, he would reap nearly $1 billion in profits. Icahn would not comment on whether he had spoken recently with Husky Oil Ltd. or Gulf Canada two companies with whom he once discussed a joint Texaco bid.

"It's impossible to know if he is determination of what we're going to do." Under a "short-swing" profit rule, a holder of more than percent of a company's stock must keep those shares for at least six months, otherwise any profits revert back to the company. That period ends Wednesday for Icahn, who also heads TWA Corp. Texaco stock traded at just over $45 a share Friday. At that price, Icahn has a paper profit of about $410 million, based on his average purchase price of $34 a share. Wall Streeters agree Icahn is least likely to just dump the shares on the open market, considering the depressing effect such a move would have on Tcxaco's block NEW YORK (AP) Corporate raider Carl Icahn is likely to wait awhile, like a casino player fingering the chips In his pocket, before he walk up to the window and cashes In his Texaco Inc.

stock for a multimillion-dollar prize. The beleagured oil giant's largest shareholder and most vocal critic is Just days away from being able to sell his roughly 36 million shares and keep the profits. But, speaking from his new offices in Mount Kisco, Icahn said he hadn't decided about the 14.8 percent stake In Texaco he acquired in a takeover attempt. He noted there is "a myriad of possibilities Including doing nothing and we've made no Carl Icahn big stake In oil company llic'Joiiriiallliiics MONDAY July 18,1988 9A Business Today Journal of Commerce 7 srrsy Fedls faulted ooi job safety A. ill' )- 3 i CHICAGO (AP) Despite an Estimated 60,700 deaths in the workplace each year, the federal government is failing to aggressively prosecute companies that violate safety laws and endanger workers, a study concludes.

The Justice Department places such low priority on filing criminal charges that it has managed just two successful prosecutions of safety violators since 1980, said a report on the study by the Rational Safe Workplace Institute. During the same period, California successfully prosecuted 112 cases under state operation of the federally funded program, the institute found. California has since dropped its program, and supporters are seeking its reinstatement. "There are at least 100 good criminal cases every year where deaths have occurred and where employers knowingly and willfully violated federal regulations," Joseph Kinney, executive director of the Chicago-based, non-profit group, said in an interview. "If the government wants to reduce deaths and injuries, go forward with 50 of those.

It's clear the use of civil fines just isn't working," added Kinney. "Companies simply amortize the (fines) and look at it as the cost of doing business. Put them In jail and you'd get their attention." The federal Occupational Safety and Health Administration is empowered to seek criminal sanctions against employers in 28 states who violate workplace safety standards. The agency also is charged with monitoring programs in the remaining 22 states, which choose to operate federally funded workplace-safety programs themselves. But the study found that after the federal OSHA cites an employer for safety violations, the case is reviewed by seven different offices before the Justice Department will bring it to trial.

"Instead of trying to determine how justice can be done, they're trying to disqualify these cases. There isn't even one full-time staff member assigned to these cases," said Kinney. "The federal government wants' to deal with these problems in a reactive way, with their little fines. We've had 18 years of doing it their way and it hasn't worked." Justice Department spokesman Patrick Korten defended the federal system. "When we get a (criminal) case that has prosecutorial merit, we prosecute it," he said.

Associated Press End of the line Paul Adams, a tool and die maker at Volkswagen's Westmoreland Plant in New Stanton, rides in the back of a friends pickup with his tools after finishing his last shift last week at the auto plant. After making 1,000,000 caps, Volkswagen closed the plant, idling 1,725 workers. Burlington chases Pacific market Burlington Northern Railroad is continuing its efforts to penetrate Pacific Rim markets with U.S. coal. The Fort Worth, Texas-based railroad will transport some 24,000 tons of Montana coal to Japan late in July.

With more than 14 billion recoverable tons of coal reserves owned by affiliates of Burlington Northern the holding company that owns the railroad, export markets for the low-volatile Western coal have been -sought eagerly for most of the 1980s. Success has been fleeting, as U.S. coal rarely has been competitive in -Far Eastern markets. The latest shipment, three train-loads, is not BN's coal. It will be moved from the Spring Creek Coal Co.

mine in Montana to Westshore Terminal near Vancouver, British Columbia. BN's last coal shipment to an Asian customer also went through the Roberts Bank facility in Canada. Spring Creek is owned by Nerco the mining subsidiary of PacifiCorp Inc. of Portland, the holding company that also owns Pacific Power and Light. The coal bound to Japan will be placed with an unnamed Japanese utility company by Mitsubishi Corp.

for testing later this summer. Handling and combustion tests will be conducted both on "straight-run" Spring Creek coal and on a 50-50 blend of Spring Creek and Canadian Elkview thermal coal purchased by the Japanese from Westar Mining of Canada. Soviets boost Asian trade efforts Soviet efforts to improve trade relations with the rest of the world appear to be paying off in Asia. japan's Foreign Ministry announced that it approved multiple reentry permits for Soviet trade officials based in Tokyo beginning in August. The same day, China's official news agency said Sino-Soviet trade increased nearly one-third in the first half of this year over the same period last year, reflecting steady improvement in bilateral relations.

The Xinhua news agency said China sold the Soviets $670 million worth of goods and imported $627 million worth from January to June in the largely barter trade. The agency said the two-way trade was up 32 percent over January-June 1987, and predicted continued growth. The Soviet Union has been courting free-market economies for business and technological know-how under its now famous program of economic restructuring, or perestroika. Brazil contracts with S. Africa The Brazilian national steel company, Siderbras, apparently chose price over politics and ordered a cargo of coking coal and two cargoes of anthracite from South Africa.

A Siderbras official in New York City, who confirmed the deals, said 60,000 tons of soft coking coal, a less expensive coal used in the steelmaking process, were bought from a trading division of Primary Industries Inc. for Siderbras member company Acominas. 1 The two anthracite shipments were bought from a trading office of Stinnes the official disclosed. He said Brazil, which generally has taken a hard political line against South Africa's apartheid government, does not have any legal restrictions against importing South African coal. Siderbras, however, bought no coal from South Africa in 1987, he noted.

U.S. traders observing the deals said they represent Siderbras' only purchases of South African coal in recent memory. Traders speculated that the steel company may have run into difficulties acquiring coal from Australia because of recent strikes there, and undoubtedly was able to obtain a lower price from South Africa than from the U.S. market. Soviet coal exports rise ROTTERDAM, Netherlands The Soviet Union is steadily building up its presence in the international coal market, beefing up its sales in Europe and tapping new outlets in the booming Far East markets.

Soviet coal deliveries to the 12-nation European Community jumped 12.6 percent last year to 1.8 million metric tons despite a 5.3 percent fall in total EC imports of hard coal to 100.9 million to 101 million tons. (One metric ton equals 2,204 pounds.) Cost of drought: ro food increas ffii )rjj Business i i 1 1 i 1 1 Irani TmIIi 1III "I think it (the boost in food prices) is going to be close to 10 percent over the next 12 months' Lacy Hunt economist Top Ten Buyers Country and number of purchases, 1976 to 1987 ACQUISITION: AEG Aktiengasellschaft, a leading worldwide manufacturer of electrical and electronic systems, and Modicon its wholly owned subsidiary, said today that they have completed the previously announced purchase of the Industrial Automation Systems Group (IASG) of Gould Inc. Modicon, based in North Andover, Massachusetts, includes Septor Inc. of El Paso, Texas; International Cybernetics Controls of Pittsburgh, and Getty's Motion Controls of Racine. NEW BRANCH: Sally Beauty a distributor of beauty supplies, said it has opened an outlet in Racine at Westgate Shopping Center, 4901 Washington Ave.

Sally's discount cash and carry outlets carry professional beauty supplies for salon and home. Sally Beauty which is headquartered in Denton, Texas, now has more than 560 stores employing more than 2,500 persons in 26 states and the United Kingdom, according to a company press release. AWARDS: Frank Gentile Oldsmobile, Honda, GMC has been named an "Oldsmobile Elite" dealership for the third year in a row, according an Oldsmobile division general sales manager. Only about 5 percent of U.S. Oldsmobile dealers qualify in any given year.

The award was created in 1985. Hardee's Family Restaurant, 8913 Durand Sturtevant, will receive a Golden Key Award today from the Racine Area Manufacturing and Commerce Association for its new facilities which will employ about 60. Sprint photo labs of Racine announced today that it is the recipient of a 1988 national Addy Award Citation issued recently at the Los Angeles awards meeting. The winning category was for exellence in black-and-white photography and processing. Spring lab's, Richard Reinders produced the composite photograph, which highlighted landmarks of Racine.

According to Paul Jude, president, Sprint also submitted a sales kit entry which it produced for Roling, Rau and Davis Williams Bay, Wis. It also won a national merit award for the agency's client, the Hickey Freedom Co. of New York. Open Pantry Food Marts, a 71-store chain, has received a Golden Key Award from the Racine Area Manufacturers and Commerce association for its West 6th Street store. The chain opened its first store in Racine in October 1966.

The company was founded by Robert W. Buhler, president and owner. There are eight stores in Racine. The balance are in Milwaukee, Madison, Green Bay and the Fox River Valley and in northern Illinois. The new West Sixth Street and Memorial Drive store occupies approximately 3,000 square feet and will employ 15 to 16 people, RAMAC said.

REBATES: Wisconsin Natural Gas Co. said operators who install new high-efficiency gas cooking equipment this year can get 5 percent rebates on the list price from the company. The rebates, open to restaurants, taverns, schools, churches, hospitals, and nursing homes in Wisconsin Natural's service area, provide an extra incentive to replace older cooking equipment with new, more efficient units. The rebates are part of Wisconsin Natural's "Blueprint for Savings" program, which assists industrial and commercial gas customers with programs to save energy. To get rebates, food service operators must order equipment from commercial dealers by Nov.

30 and install it by Dec. 15. More information is available from John Doermer at 637-7681. Eligible items for Business Talk include: notices of new products, branches, businesses, and services. In addition, public offerings, dividends, military and foreign contracts, office and plant expansions, and awards or By Kevin B.

Blackistone Dallas Morning News DALLAS The drought of 1988 probably will boost grocery food prices 2 to 4 percent over the next six months but have only a negligible effect on inflation and the economy during that period, according to economists. The driest spring in half a century, when coupled with several other factors, could, however, portend more serious problems for inflation and economic growth in 1989 if farming conditions worsen or do not improve before then, some economists warned. "The bottom line is that while it may not have any more than a moderate effect on prices this year, it could have significant impact on prices next year," said David Jones, an economist at Aubrey G. Lanston Co. in New York.

"The risk now is that the inflationary impact will be greater than expected," said Allen Sinai, chief economist for Boston Co. "The drought has the potential to have a disastrous effect on the inflation side." Economists said that although most foodstuffs have been sufficient for much of this decade and have served to keep grocery prices relatively low, the drought is severely reducing supplies for next year and increasing the likelihood of shortages and higher prices. The U.S. Department of Agriculture reported last week that total domestic production of wheat, corn and other feed grains is expected to fall 24 percent to 212 million metric tons. The USDA stated it expects corn production to collapse to its lowest level since 1983, the spring wheat harvest to fall by 50 percent and oats production to drop by 32 percent.

A spokesman for Quaker Oats Co. in Chicago said the drought already is pushing up prices the lood processor is paying for grains that will be used to make cereal for consumers next year. "What we are paying for oats now is substantially higher," said 640 Australia 68 435 Sweden 63 150 Italy Britain Canada West Germany Franca Japan Switzerland Netherlands Ron Bottrell, a Quaker spokesman. "Yesterday (Wednesday), we paid $3.25 a bushel for delivery compared with $1.95 three months ago. We have not taken any drought-related price increases yet, but at some point we're going to have to review our pricing strategy." Government statistics indicated that some basic food prices already are stepping up albeit slowly.

Between April and May, according to Agriculture Department data, the price of white bread increased 0.2 percent and the cost of cereal and cereal products grew by 0.8 percent. In addition, grain-fed beef and chicken cost consumers 1.1 percent and 5.2 percent more in the checkout line, respectively, over that period. While most private and government economists last week agreed that the drought should inflate food prices by as much as 4 percent over the second half of this year, private economists expressed more pessimism about the overall impact of higher food prices on inflation. Ewen Wilson, the assistant secretary for economics in the Agriculture Department, said last week that "there will be no major inflation because of the drought." But Lacy H. Hunt, chief economist for Group Inc.

in New York, said he believes that the slight food price increases witnessed now coupled with a forecast for continued hot and dry weather portends a more-than-expected acceleration of food costs and overall inflation. "I think it (the boost in food prices) is going to be close to 10 percent over the next 12 months," Hunt said. 14 It Dollar Value Foreign purchases In MBom of (Wars In paranttttta tn th wmto 4 US. boneua and wta puchaied Pi tun 2M) 4 (117) mn honors given to businesses are accepted. The deadline for entries submitted IL Ah.

by mall Is Friday. All items must be written on company letterhead stationery 79 1 '83 '84 85 D8 D7 i and must include a phone number. Send entries to: Business TaiK, ine Journal Times, 212 Fourth Racine, Wis. 53403. a AP AMndi Back.