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The Journal Times from Racine, Wisconsin • 4

Publication:
The Journal Timesi
Location:
Racine, Wisconsin
Issue Date:
Page:
4
Extracted Article Text (OCR)

Advances: 1,098 Declines: 727 Unchanged: 602 Total issues: 2,427 67 the Journal Times TUESDAY January 12, 1993 Composite volume: 263,651,850 isl 3 Marketing Exec of Year named Airlines get U.S. approval to operate as single carrier WASHINGTON (AP) Northwest Airlines and The agreement does not involve any money for financially ailing Northwest, although there are hopes that it will save some operating costs and boost future business. More immediately, it win make travel easier for people using the joint airline, said Northwest spokesman Doug Miller. Ultimately, the joint airline will probably operate under a new name, he added. KLM owns 49 percent of Northwest, although it holds only 20 percent of the carrier's voting stock.

The deal approved Monday was set up to satisfy U.S. laws barring foreign ownership of airlines. The two airlines will have to resubmit the agreement for review by the Transportation Department in five years. Like the rest of the airline industry, Northwest has been struggling amid fare wars and recession in the United States. But it has been particularly hurt by the economic slowdown in Japan, its key foreign destination.

Northwest has been in financial trouble since 1989 after a $3.65 billion leveraged buyout. Its parent company, NWA lost $19.7 million in the third quarter of 1992. Gary L. Wilson, a co-chairman of Northwest Airlines, gave $100,000 to the Republican Party last year. The airline said there was no connection between the contributions and administration action favorable to the deal with KLM.

KLM Royal Dutch Airlines won U.S. permission Monday to operate as if they were a single carrier, opening the way for seamless travel between the United States and the Netherlands. The action was made possible by an "open skies" accord, reached last September, to allow airlines of both countries to fly to any city in the United States or the Netherlands without restriction. The Transportation Department, which had tentatively approved the Northwest-KLM plan on Nov. 16, also granted antitrust immunity to the two airlines.

Jerry Schwallier, president and chief executive officer at Bank One Racine, has been named Marketing Executive of the Year by the RacineKenosha Sales and Marketing Executives. He will be honored at a Feb. 15 dinner at the Racine Marriott Hotel. Details will be announced later. Schwallier, 45, joined the former the DRC board of directors.

He is also a past president of the Racine County Economic Development past chairman of the Racine Area Manufacturers and Commerce and a member of the University of business advisory board. In a recent interview, Jerry Schwallier to be honored Feb. 15 4- refutes claims Marine Bank in 1982 and was promoted to the top job the following year. Marine Bank became Bank One Racine in 1988. Active in local affairs, Schwallier recently completed a term as Downtown Racine Corp.

chairman and is a member of Schwallier said the future requires "management-oriented people and people-oriented managers." RacineKenosha SME annually selects a local executive who has exhibited outstanding achievement in sales, marketing and community activities. 5" I It i ft. 4 W1 rT 7JI WASHINGTON (AP) American Telephone and Telegraph shot back Monday at MCI Communications Corp. in a longstanding battle between the two largest long distance carriers over patent rights. In a lawsuit filed in U.S.

District Court, charged MCI with the infringement of 10 patents for technologies that have enhanced long distance services. The suit is a counterclaim to a motion filed in the same court by MCI on Dec. 21 asking that certain patents be declared unenforceable. The patents at issue involve technology that enables credit card calling, 800 services, direct dial and other long distance consumer conveniences. Among MCI's claims is that the concepts of the patents were known and used by others prior to the time filed patent applications.

5 ''J i lit id ri i5? hull!" CHARLES S. VALLONE Journal Times A NGW SSlOM Pam Brefka and years oJ hair styling experience, was most re- Richard Worrell re- cently at Images in Vogue. Worrell has 10 cently opened Shear Madness, a hair styling years of experience. He was previously at Mr. salon at 232 Main St.

Brefka, who has 16 Dino's. 40 Wall: Skyscraper in mothballs AT A GLANCE Marilyn's apparel shop closing Marilyn Hanson is closing her women's apparel store, Marilyn's, after 12M years. The store is located in the North Point' Shops, 4060 N. Main St. Following a quitting business sale, Hanson and her husband plan to retire 1 and spend more time in the Southwest.

Diggers Hotline sets meeting A safety meeting for excavators and other contractors is planned for Jan. 28 in Racine. The meeting, sponsored by Diggers Hotline, starts at p.m. at Roma Lodge, 2810 Golf Road. Speakers will discuss proper procedures when working near underground and overhead utility facilities, safety practices, claims costs and various legalities.

All contractors are welcome. For details, call Ida Rodriguez at 1-221-2201. 130 new Walgreens planned Walgreen Co. plans to open a record 130 stores this year. The Deerfield, drug store chain will add its fifth Racine area -outlet this spring at 4718 Washington Ave.

Walgreen's is also reportedly planning a new store near State Street and North Memorial Drive. Walgreen's posted record sales and earnings for the first fiscal quarter of 1993. The company netted $40.2 million, or 33 cents per share, on sales of $1.9 billion in the quarter which ended Nov. 30. Sales were up 12 percent from a year ago while earnngs climbed 13.6 percent.

Chrysler plans stock sale DETROIT (AP) Chrysler Corp. said it plans to sell 40 million new shares of common stock, a move designed speed the automaker's financial recovery. The offering was registered Monday with the Securities and Exchange Commission. It could bring Chrysler about $1.45 billion, before brokerage fees, if priced at $36.25 a share, the Monday closing price of Chrysler's common issue on the New York Stock Exchange. Two debt rating agencies immediately hailed the move, raising their opinion of Chrysler debt and promising further upgrades when the stock sale is completed.

Dow rallies 1 1 .08 points NEW YORK (AP) The stock market recouped some of last week's losses with a moderate rally Monday led by technology issues. The Dow Jones average of 30 industrials, down 49.44 points in the first -week of the year, rallied 11.08 points to 3,262.75. Analysts said investors were having some success trying to bounce back from a series of worries that hit the market as 1993 began. Many analysts described the market as overpriced. In addition, they talked of an impend- -ing end to the "honeymoon" Wall Street has accorded President-elect' Clinton.

Also, many forecasters are calling for higher interest rates as the new -year progresses. Brokers also noted that corporate profits and dividends are likely to continue improving if the economic recovery keeps gathering momentum as it did in late 1992. planned a half block from the New York Stock Exchange. The race to the sky was on. It was a grudge match.

Craig Severance, architect of 40 Wall Street, and William Van Alen, Chrysler's designer, had until recently been partners. Their split was not amicable, and now each maneuvered to get a leg up. New Yorkers debated the towers' styles Chrysler was gleaming Art Deco, 40 Wall a more sober exercise in limestone and brick and cheered on their favorite. Chrysler added 10 stories to its design; meanwhile, plans for 40 Wall grew from 47 to 60 to 70 stories. Finally, Severance thinking Chrysler would be 925 feet high added a rooftop lantern and flag pole that pushed 40 Wall to 927 feet and, it seemed, to victory.

But Van Alen had a surprise up his sleeve and inside his building. He had secretly moved five sections of a 183-foot spire into the building and assembled them on an upper floor; once 40 Wall had topped off, Van Alen pulled the spire out and put it up. Chrysler was No. 1 until the Empire State Building was finished in 1931. Meanwhile, the stock market had crashed and the economy was collapsing.

Half-empty and able to get rents at half the '29 rate, 40 Wall limped along for a decade before falling into RICK HAMPSON Associated Press NEW YORK For a few months in 1929 until Chrysler pulled a spire out of its hat 40 Wall Street was the world's tallest building. Today it's the world's emptiest building, a vertical ghost town with floor upon floor of great views that no one sees. Almost 80 percent of the million-square-foot-office building is vacant. At dusk, as neighboring towers glow, 40 Wall is a black hole in the financial district firmament. Over the past four years Wall Street has lost tens of thousands of jobs, and firms have left for midtown, the suburbs and points beyond.

A fourth of downtown's pre-World War II office space is empty more than 7 million square feet, enough to swallow downtown Louisville. "We know what to do with an old house cherish it, preserve it," says Joseph Pell an architect who suggests converting the top half of 40 Wall to condominiums. "But what do we do with an old skyscraper?" No one was asking that question in 1929, the year when it became clear that the 792-foot Wool-worth Building was about to lose its crown as the world's tallest building. Chrysler Corp. had announced plans for an office tower near Grand Central Terminal.

Downtown, another tall office building was Forty Wall's problems evaporated in the prosperous years after World War II, but returned in the 1980s when it was secretly purchased by Philippines dictator Ferdinand Marcos. After Marcos was overthrown, he was forced to give up 40 Wall. Although a court-appointed receiver continued to collect rents and make routine repairs, there was no money for capital improvements. And then, in October 1987, the stock market crashed again. A new developer took over in 1989 and announced plans for a $50 million renovation.

But Manufacturers Hanover moved out after merging with Chemical Bank, and Morgan Guaranty followed suit. Citibank, which held the mortgage, cut off renovation funds, and the developer defaulted on its mortgage payments. In the last three years 40 Wall's assessed market value has dropped from $123 million to $75 million; although Citibank declines to comment, real estate brokers say the bank would sell its interest for as little as $10 million. Not since the Depression has so large a building lost so much value so fast. The tower's tax bill is so large that if tenants (or a buyer) are not found.

Citibank could have to give it to the owner of the underlying property. The nation's 12th-tallest building might even be abandoned to the city, like some burned out tenement. New York Stock Exchange Boldfaced Umm ara cmapaaWa of local fartoraat (Continued on Page SA) .70 2 .07 14 i IMC IPPru 1 68 204 1.11 13 i Vk 1.18 204 BRE .82 10 January 11, 1993 "Ik 1 A i .80 10 1.0 38H 1.24 44 .28 7 .52 24 1.88 22 11 1.0 30 14 5 t.O 34 23 1.99 25 1.9 25 9.13 26H Vk 1.6 59 1 i -Vk 12 41 .24 42Vk 19 2.03 24 4 23 3 24 44H l.OB 47 -V JO 72 2 9 19 SH 3,262.75 High la-Qgl All-timehigh I Low 32198 Jom 1,1992 I Vk .06 10 .77 7 10 18 3425 4 5 4 4 -V 7H .40 .43 .72 .90 3325 11; 11 GnRad .30 9 Vk GanuPhJ .57 10 GaGult UH GaPwpK) .05 20 GaPwptP 1 4 42 Vk GaPwpfO .71 9 GaPac 1.04 37 GrbPds 30 GerbSc 30 -Vk GarFd .30 34 Getty .08 31 GIANTl .90 32 Glantln 2.53 28 Gllleta 2.34 26 Gltano .30 30 Glaxo .93 45 denied 1.3 31 GlbGvt .14 43 GlbMltn .40 49 GlncPI 3.0 36 Vk GlobM 1.94 31 GlobNR .74 19 Vk GlobYld 4 40 Vi GldWF 13 Gdrlch 1.3 30 Goodyr Golchk 30 34H Grace 1.4 45 Vk GrhmFI 4.2 0 Vk Gralnor 35 GrndMet 1.34 14 GIAIPc 1.03 II GtLkCh 40 39 GNIrn 35 GtWFn .60 20 4 1.79 22 54 Vk IB 13 1 15 1.2 28 1.25 16 1.7 26H Vk 2.06 23 21 11 22 .60 17 .66 14 Va .01 99k 17 S7l 27m 434 Vi 1.01 63 4 1.51 42 1 84 43 3 57 44 -3225 3125 10192 EdliBr EDO Edwards 1838BdF EKCO EIPNGn vIEIPasR Elcor ElcAutn ElecAs EIIAquit Eler Elsclnt EmgGer EMlncon EMTeln EmMex EmnEI EmRad EmpDIst EBP Endesa Emplcan Enron EngTCpl EngChln Ennancn EnliBu EnqStr Enron EnrnLqn EnrOG ntr ch ntergy EnrOilpr EnrOllprB Enlera EnvEle Equllic Equmk EqlCoin EqtRI EqtRel Esco Eslrln Ethyl EuroFd EurWIFd Exel Extecppr Exxon 11192 12102 1193 2193 9 Vk BtkNYOftn 104 11 BlkNAn 2.4 33Vk BlkSIr 3k BlkTT .20 7' BIckHR 1.81 17 BlockE .46 18' BlueChp .38 Boeing 1.24 35 BolieC 7 BonCpl 7i BoltBer 1.44 23 BordCpr 13V4 BordCb 1.28 30V -Vk Borden 2 BCelli 2.44 36 BostEd 35 BosEolA 1.41 20 BoslScn .99 13 Vk Bowatr 13 Bradlewi 29k Braill 2.33 38 4 BrazEFn 1.39 43 Vk BredTcn .65 57 4 BrigSI .60 54 -Vk BrinCAn 1.12 l8Vk Vi Brlnker 35 BrMySq .10 24V BrllAlr 1.04 39194 BrllGat 2 15 24 BrltPt 1.52 52 BrltSII 36 BrIITal 1 2 45 BrTelpp 1.35 45 4 Broadln 6 0 77 BroadpIP 2 41 27 BroadplB 3 35 58 Brooke 3 75 25 BklyUG 1 97 24 BwnSh 2 04 74H BmFB 3 75 38 BrwnGp 37S Vk BrwnFr 3 09 35 Brnwk. 1.12 67 BrshWI 5 Vk Buckeye 13 16 1 16 BKInv 378 26 BurlCti 2 72 25 BurllEn 2 91 36 BurlNlh 287 27 BrINplA 1.98 33 BrIRsc .53 31V BurnPP 1 4 30 Vk 40 CBI .20 3 CBS 139 40 Vk Car 1.39 43 Vk CerlUIP 25 27 4 verrma 1.16 47 ChrDwl 4 Chyrnn 13 4 Cllcorp 14 ClnnBal I Vk ClnGEi .30 IS ClnGpIO 1. 11 14 CernCr CarolcP 9 II U.

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