The San Francisco Examiner from San Francisco, California • 17

SAN FRANCISCO EXAMINER Monday, January 27, 1992 A-17 from A-1 Chapter 11 help sought by Macy's more. The action had been widely expected for weeks, and it became inevitable with the collapse of a rescue effort Friday. Macy's action resulted from 1980s-style financial overreaching combined with a mounting crisis of traditional retailing. Macy's needed to generate evergreater amounts of cash to pay interest on its $3.5 billion debt. With sales faltering, banks and suppliers started cutting off the vital flow of credit and fresh goods that the stores needed to operate.

NO MIRACLE ON 34TH ST. macys Performance of R.H. Macy Co. since 1987 (fiscal years ending July) Sales $8 6 7.02 4 2 In billions 0 87 88 89 90 91 Net $100- 0- -100 -200 -300 -466 -400 In millions -500 87 88 89 90 91 Macys' U.S. stores (as of Nov.

1991): Macy's 98 Bullock's 22 I. Magnin 24 Specialty stores 107 for fiscal year ending August SOURCE: Lehman Brothers ASSOCIATED PRESS WORKERS from A-1 Worker injury fraud now big business spent about $11 billion in insurance premiums to cover the benefits paid to 450,000 injured workers. The increasing cost of workers compensation is one of the top reasons California businesses say they are moving elsewhere insurance premiums now average $4.24 for every $100 in payroll costs. Although he has yet to offer a specific proposal, Wilson has given every indication he will try again to make it harder for workers to collect benefits for stress-related injuries. But the lawmakers, doctors and lawyers most familiar with the workers compensation system say Wilson is focusing on the wrong problem.

They say stress claims account for only a fraction of the claims filed each year. In 1990, the last year for which statistics are available, 10,444 stress claims were filed, slightly more than 2 percent of the 444,886 total claims. Andrew McKenna, a Monterey lawyer, is troubled by Wilson's focus on stress claims. "Sometimes I get the feeling he is trying to create a scapegoat by picking on the mentally disabled," he said. "There seems to be a sentiment that because these are claims for psychological stress they must all be phony." 'Phony claims shouldn't be paid' As president of the California Applicants Attorneys Association, McKenna speaks for the lawyers who specialize in representing injured workers in their dealings with the workers compensation bureaucracy.

"My organization believes phony claims shouldn't be paid," McKenna said. "But there are many many sad and tragic stories of people who suffer mental breakdowns because of their work. A lot of these are law enforcement people, firefighters, social workers, people in really stressful situations." It is fraud, not stress, that threatens to topple 'the workers "We have known for some time that Macy's had more debt than is desirable in such a weak economy," Finkelstein said. worked day and night' "While we were able to take tions that enabled us to ride most of the turbulence of the few years, consumer confidence plummeted in recent weeks, creating a much more difficult Christmas season than expected. "As a result, our ability to generate cash was severely strained.

"We worked day and night find a suitable solution and mately we came to the conclusion that filing for Chapter 11 was for Macy's future." Customers should notice change in the business for the run, judging by the experience of string of previous departmentstore bankruptcies including porium's parent, Carter Hawley Hale Stores Inc. If anything, Macy's stores should look better than they would have without the bankruptcy. company recently denied lifeblood of new merchandise many worried suppliers probably will find goods flowing to freely in a few weeks. On Monday, Macy's lined $600 million in new financing Chemical Bank and Bankers Trust Co. The lending is subject to bankruptcy judge's approval.

"These funds will be available the company to meet future inventory needs and (other operating needs), including the prompt ment of new vendor invoices employee salaries," the company said. Under bankruptcy rules, lenders are encouraged to give Macy's infusion of operating cash most suppliers are likely to whatever merchandise the company wants. The filing, however, will Macy's under court supervision, probably through 1992 and haps until 1994. Suppliers such as clothing companies face the prospect than of delays of months and less full ment on their bills. Some suppliers, weakened by the recession and by string of previous retailing failures, are likely to go out of business as result of Macy's inability to pay full.

Shareholders in the privatelyheld company, including 350 senior executives, likely will see their large investments further diluted to little or no value, as ownership of company is traded off to creditors in exchange for elimination of debt. compensation lawyers system, say and many doctors whose livelihoods depend on the system. They freely admit that many of their colleagues are ripping off the system. Called stress mills, these large businesses generate huge volumes of workers compensation claims, many of them fraudulent. Their practices of hustling workers at unemployment offices and encouragers ing them to lie about their activities practiced mostly Los Angeles and Orange counties have been well documented.

Also, many doctors, psychologists and physical therapists charge big fees to "evaluate" workers who are filing for benefits. These bills are paid by the system regardless of whether the worker's claim is deemed valid. "You may go in for a cut finger, and you end up seeing half a dozen board-certified physicians," said Michael Marks, a San Francisco lawyer who represents employers and insurance companies in workers compensation cases throughout Northern California. "You may see psychologist, get a bone scan, CT scan, see a physical therapist. By the time you are spit out at the other end you have $5,000 $10,000 in medical bills without ever having had one iota of medical treatment." $1 million-a-year doctors Marks says it is not uncommon for some doctors to earn in excess of $1 million a year by operating clinics that do a huge volume of evaluations for workers applying for benefits under the workers compensation system.

"The money in this system is hemorrhaging into special interest pockets," Marks said. Assemblyman Burt Margolin, a Los Angeles Democrat and one of the Legislature's leading experts on workers compensation reform, agrees. "What is tormenting employers are the completely fraudulent claims filed by a category of doctors and lawyers who work for operations whose sole purpose is manufacturing claims with no con- Some of Macy's 67,000 employees will go through the uncertainty of wondering whether their jobs might 1 be eliminated through the sale or closing of stores or divisions, or through consolidation of the San Francisco division into the corporate headquarters in New York. Macy's apparently has been trying for some time to sell the unprofitable, San Francisco-based I. Magnin upscale clothing chain, which it bought in 1988.

Macy's also could seek in bankruptcy to eliminate or weaken union contracts such as those covering San Francisco employees. Investors who bought Macy's junk bonds at anything like their original price, known as par, will take a big financial beating. The bonds financed Macy's 1986 buyout and its 1988 acquisition of Magnin and of Los Angeles-based Bullock's department stores. Macy's tried last week to put together a bailout plan under which Laurence A. Tisch the head of CBS Inc.

and Loews Corp. and an outside investor and director of Macy's would have put $1 billion into the retailing company initially and taken control. Creditors including Prudential Insurance Co. balked at terms for compromising debts, killing the Tisch deal and sealing Macy's fate. This time of year has become bankruptcy season for U.S.

department stores. Federated Departments Stores Inc. and Allied Stores Corp. filed for Chapter 11 in January 1990, and Emporium parent Carter Hawley Hale Stores Inc. filed in February 1991.

In these winter months, suppliers can see whether a retailer has had good enough holiday sales to survive for a while, and the suppliers can deprive the chain of new spring goods it needs to bring in customers. Gas line explosion guts Hayward home payEXAMINER STAFF REPORT HAYWARD A gas line explosion turned a house at Simon and Peralta streets into a ball of flames late Sunday night. The dwelling one of six bungalows in a complex in the 500 of Simon Street was destroyed in the fire. It took Hayward firefighters two hours to extinguish the blaze because crews had difficulty in switching off the gas line. cern for whether or not they are legitimate," Margolin said.

Although its significance was largely lost in the bitter budget battle between Wilson and lawmakers last year, the Legislature adopted one measure that may stop many of the most outrageous abuses of the workers compensation system. The new law, which took effect Jan. 1, makes some forms of workcompensation fraud felony crimes punishable by prison sentences and requires insurance companies to report suspected fraud. It also imposes fees on workers compensation insurers to pay for beefed up investigations and prosecutions of fraud cases. Law also bans ad ploys The new law also bans many of the advertising and solicitation techniques used to induce workers to lie about their injuries and empowers a Council of Industrial Medicine to screen advertisements by legal and medical clinics.

"These stress mills are not run by mainstream practitioners. They make us all look bad, and they do us all a disservice," said San Francisco psychiatrist Robert Larson, a member of the new 14-member Industrial Medical Council. Larson also is a past president of the California Society for Industrial Medicine, an organization of doctors and therapists whose practices involve large numbers of workers compensation cases. The new regulations already appear to have had a measurable impact on the system. Last year, the state Department of Insurance received 167 complaints about workers compensation fraud.

During the first two weeks of 1992, the department received 140 such complaints. In addition, the department has hired 22 investigators who will do nothing but focus on workers compensation fraud. "We hope to see prosecutions and convictions that will send a clear message to the criminal elements organizing these mills that their behavior is no longer going to be tolerated," Margolin said. OBITUARIES Actor Jose Ferrer dies at 80 He won 1 Oscar, 3 Tony Awards By Michael Warren ASSOCIATED PRESS MIAMI Jose Ferrer, the renowned stage and screen actor who won an Academy Award in 1950 for his role as Cyrano de Bergerac, died Sunday after a short illness. He was 80.

Mr. Ferrer, who made his reputation as a classical actor with his 1946 Broadway triumph in the title role of Cyrano, died at Doctors' Hospital in suburban Coral Gables, said his fourth wife, Stella. The cause of death was not disclosed. During a theater career that spanned more than 50 years, Mr. Ferrer won two Tony Awards for acting in "Cyrano de Bergerac" in 1947, and "The Shrike" in 1952 and a Tony Award for his direction of "The Fourposter," "Stalag 17" and "The Shrike," all done in the 1951-52 Broadway season.

Born in Santurce, Puerto Rico, Mr. Ferrer earned a bachelor's degree at Princeton University. He made his Broadway debut in 1935, and had his first major role in a revival of "Charley's Aunt" shortly thereafter. He appeared as lago opposite Paul Robeson's Othello in 1943, with his then-wife Uta Hagen as Desdemona. His other Broadway credits include revivals of "The Silver Whistle" and "Twentieth Century," as well as the Noel Coward musical "The Girl Who Came to Supper." In the 1951-52 season, he directed Hume Cronyn and Jessica Tandy in the two-character comedy, "The Fourposter," and produced and directed "Stalag 17," set in a World War II prison camp.

He also produced, directed and starred as Jim Downs in the Pulitzer Prize-winning "'The Shrike." Mr. Ferrer played the Dauphin to Ingrid Bergman's Joan of Arc in the 1948 film, and received his first FERRER'S CAREER Here are some of the film, stage and TV produced or directed. Ferrer died Sunday. 1951 FILE PHOTO Jose Ferrer won an Oscar for his role as Cyrano de Bergerac. Film "Joan of Arc" 1948 "'Whirlpool" 1949 "Crisis" 1950 "Cyrano de 1950 "Moulin Rouge" 1952 "The Caine Mutiny" 1954 "The Shrike" 1955 "The Great Man" 1956 "Cockleshell Heroes" 1956 "I Accuse" 1958 "Enter Laughing" 1961 Oscar Award Tony Award Oscar nomination.

In addition to his Academy Award-winning performance in "Cyrano de Bergerac," he was nominated for an Oscar a third time for his portrayal of Toulouse Lautrec in "Moulin Rouge." Mr. Ferrer's last stage appearance was in 1990 in a musical version of Ionesco's "Rhinoceros," which he did in England with Mandy Patinkin. The actor was to have appeared on Broadway in March, co-starring with Judd Hirsch in Herb Gardner's new play, "Conversations with My Father." He withdrew from the production last month. In 1985, Mr. Ferrer received the National Medal of the Arts from President Ronald Reagan.

Until recently, he was president of the Players Club, an organization founded by Edwin Booth. Ian Wolfe Veteran character actor ASSOCIATED PRESS LOS ANGELES Ian Wolfe, a veteran character actor whose roles ranged from the stool pigeon in "Mutiny on the Bounty" to the Death Notices GARCIA, Amelia P. In San Francisco, January 26, 1992; beloved wife of Joseph N. Garcia; dear sister of Josephine, Bonita, Luisa, Joaquin, Henry, Joseph, Antonio and Angelo; also survived by numerous nieces and nephews. Friends are invited to attend the Vigil Service on Tuesday, 7:30 pm.

at HALSTED N. GRAY-CAREW ENGLISH, 1123 Sutter St. and Funeral Mass Wednesday, 11 am. at St. Elizabeth's Church, 449 Holyoke St.

Interment Olivet Memorial Park. HALSTED N. GRAY-CAREW ENGLISH COMPLIMENTARY PARKING GEHRMANN, Ernest In Daly City, January 26, 1992; dearly beloved husband of Josephine Gehrmann; devoted brother of Walter Gehrmann, Martha McCulough and Ann McKenna; also survived by other loving relatives; a native of S.F.; age 78 years. Friends are invited to attend a Funeral Mass Tuesday, January 28, 11 am. at Our Lady of Mercy Church, Elmwood Westlake.

Interment, Holy Cross Cemetery. Memorials to the St. Anthony Foundation, 121 Golden Gate S.F. or your favorite charity preferred. W.C.

LASSWELL CO. 755-0660 LATHROP, Mary Davis In San Francisco, January 24, 1992; beloved wife of the late Leland S. Lathrop, loved sister of Janet Davis Gumz, and the late Ruth Davis Busher and John Parks Davis; loving aunt of Richard William Gumz, Paul Busher, Jennifer Sinna Thompkins, Elizabeth Sinna, Peter, Jay Busher, and the late Joan Busher Sinna; a native of Jackson, Amador County, California; age 94 years. Friends are invited to attend the Funeral Mass Wednesday, 10 am. at Old St.

Mary's Church, California St. and Grant Ave. Private Committal, Holy Cross Cemetery. In her memory, contributions to Paulist Fathers of Old St. Mary's Church, 606 California S.F.

94108. HALSTED N. GRAY-CAREW ENGLISH LOWRY, Peter G. In this city, January 23, 1992; dear son of Sam, and the late Grace Lowry: survived by 11 loving sisters and two loving brothers, and many other loving nieces, nephews and other family; an employee of Patrick Company. Friends are invited to the Funeral Mass Tuesday evening, 7:30 pm.

at Most Holy Redeemer Church. Private Interment. Donations to Most Holy Redeemer Support Group, 100 Diamond S.F. 94114. ARTHUR J.

SULLIVAN CO. DIRECTORS 621-4567 MENCOFF, Morris S. Passed away January 24, 1992 in Redwood City: age 78 years; beloved huband of Bonnie Mencoff; loving father of Trudy Mencoff Blackwell and Douglas Mencoff; father-in-law of Charles Blackwell; dear brother of Helen Berliner, Edward Mencoff and sister-in-law Ruth Mencoff; retired Tax Administrator of California State Department of Employment. At his request, no Services held. Arrangements by NEPTUNE SOCIETY, Belmont.

Memorial contributions may be made to the Multiplescierosis Society or your favorite charity. Funeral Directors HALSTED N. GRAY CAREW ENGLISH 1123 Sutter St, S.F. 673-3000 24 Hrs. VALENTE, MARINI, PERATA AND CO 4840 Mission St.

San Francisco 333-0161 Cemeteries-Lots productions Jose Ferrer appeared in, "Lawrence of Arabia" 1962 "Greatest Story Ever Told" 1965 "Crash" 1977 "A Midsummer Night's Sex Comedy" 1982 "To Be or Not to Be" 1983 "Dune" 1984 Stage "Charley's Aunt" 1940 "Othello" 1943 "Let's Face It" 1943 "Cyrano de 1946 "The Silver Whistle" 1948 "The 1952 "'Strange Fruit" 1945 "Anything Can Happen" 1951 "Stalag 1952 "The 1952 "The Chase" 1952 "Twentieth Century" 1950 "The Girl Who Came to Supper" 1964 "Rhinoceros" 1990 Television "The Art of Crime" 1975 "The French Atlantic Affair" 1979 "Gideon's Trumpet" 1980 "Evita Peron" 1981 "Samson and Delilah" 1984 librarian Mr. Atoz on the television series "Star Trek," died Thursday. He was 95. In a seven-decade career Mr. Wolfe supported such legendary movie stars as Lionel Barrymore, Clark Gable, Helen Hayes and Marlene Dietrich, once calling himself "the dust that made them twinkle." Ian Wolfe pole Street." Information on survivors and funeral arrangements were not immediately available.

He amassed hundreds of film credits, appeared in a dozen Broadway plays and became a familiar face on TV's "Hawaii Five-O," "Gunsmoke," "Bonanza" and "Star Trek." Born in Illinois, Mr. Wolfe studied singing, dancing and pantomime. He also was a volunteer medical specialist in World War I. He made his stage debut in 1919 in "The Claw," starring Barrymore, and came to Hollywood in 1934 for a small part in Irving Thalberg's "The Barretts of Wim- CLARK, Jean Carolyn DEL CARLO, Marino "Del" FARNESI, Elenora Bernice O'Leary GARCIA, Amelia P. GEHRMANN, Ernest LATHROP, Mary Davis LOWRY, Peter G.

MENCOFF, Morris S. PERKINS, Doris T. SARIOTTI, Mary Ann THORNE, Clara CLARK, Jean Carolyn In San Francisco, January 25, 1992; loving wife of Robert; beloved mother of Jean Cherie, Mary Joyce, Robert E. John G. and Thomas beloved son-in-law, Lloyd Binen; beloved daughters-in-law, Jan and Tosca; loving grandchildren, Travis, Gabriel Sean; loving brother, Robert Houghton; she was deeply loved and will be missed.

Friends may call from 10-6 pm. on Tuesday, Jan. 28, and a celebration of her life will be held at 7:30 pm. at COMISKYROCHE FUNERAL HOME. Donations preferred in her memory to a charity of your choice.

COMISKY ROCHE FUNERAL HOME Dolores 16th S.F. RONALD W. BROWN DIRECTOR DEL CARLO, Marino "Del" In a fatal accident in Yuma, Arizona on January 22, 1992; late of Burlingame; beloved husband of Linda. The Funeral will leave the CHAPEL OF THE HIGHLANDS, El Camino Real at Millwood Millbrae, Tueaday at 10:10 am. for Our Lady of the Angels Catholic Church in Burlingame where a Funeral Mass will be celebrated at 10:30 am.

Committal Services, Skylawn Memorial Park, San Mateo. Vigil Services Monday at 7 pm. at the Mortuary. Donations to the American Cancer Societv. preferred.

FARNESI, Elenora In San Francisco, January 26, 1992, at the age of 76 years; born in Floriston, dearly beloved wife of Osvaldo Farnesi since 1937; loving mother of Marcella Marchini and Marcello Farnesi; cherished grandmother of Karolin Farnesi, Andrea Marchini and Mrs. Grazina Bellafronte and Giuseppe Marchini; great-grandmother of Lisa, Lora and Nicholas Marchini; beloved sister of Angelina Cipriano TorreDel-Lago of Italy and Gelasio Bini of S.F. Friends and relatives are invited to attend the Services on Wednesday, January 29, 1992, 9:30 am. at the Chapels of GREEN STREET MORTUARY, 649 Green thence to SS Peter Paul Church where a Funeral Mass will be celebrated at 10 am. Vigil Service Tuesday evening, Jan.

28 at 7:30 pm. Friends may call after 3 pm. Tuesday. Interment, Italian Cemetery. In lieu of flowers, donations to Italian American Center, 101 Avalon Pacifica, Ca.

GREEN STREET MORTUARY VALET PARKING GALLAGHER, Bernice O'Leary In Burlingame, January 25, 1992; wife of the late William A. Gallagher; mother of Donna Ortega of Sonoma, Maureen East and Nancy Campillo, both of Boulder Creek, Gene of Sunnyvale, Daniel of Eureka, Mark of Pacifica, James of Burlingame, and the late William Michael; sister of Barbara O'Brian and William O'Leary, both of S.F., and the late Donald O'Leary; grandmother of six; a native of S.F.; age 65; graduate of St. John's School, S.F. Funeral Services Wednesday, Jan. 29, 9:15 am.

from O'CONNELL'S CHAPEL, 1311 S. El Camino Real, San Mateo, then to Our Lady of Angels Church, 1721 Hillside Burlingame, for a Funeral Mass at 10 am. Interment, Holy Cross Cemetery, Colma. Vigil Service Tuesday, 7 pm. at the Mortuary Spiritual Bouquets preferred.

For Information, or To place a paid Death Notice Please Call Ms FORD, (415) 777-7320 8:30 am to 3:30 pm, 7 PERKINS, Doris T. In this City, January 24, 1992, devoted mother of Stanley, Reynardo, Sheila, Lisa and Christopher Perkins and Rochelle Black, all of S.F.; loving daughter of Ina R. Turner of Omaha, NE. Quiet Hour Monday (TODAY), 6 pm. at OSBORNE'S FUNERAL DIRECTORS, 2200 Sutter S.F.

Funeral Service Tuesday, 11 am. at First Union B.C.. 1001 Webster. SARIOTTI, Mary Ann At home in Daly City, January 25, 1992; dearly beloved wife of the late Victor P. Sariotti; cherished mother of Virginia Wales, and the late Victor A.

Sarlotti; dear mother-in-law of Irene Sariotti and Frederick Wales; adored grandmother of Frederick (Skip) Wales, Victoria Kasper, Gregory Sariotti and Susan Dudley; loving great-grandmother of Victor, Matthew, Melissa and Brian Wales, Jon and Marc Sara, Lindsay and Amy Sariotti, Victoria Dudley; also survived by a sister, Mary Mondin; nieces, Gina and Lynn Billo; a nephew, John Mondin of Illinois; cousins, Frances Gadioli and Mary Perino of Florida; age 87 years; a resident Santa Rosa for 55 years; past Secretary of the Sonoma County Grand Jury, and member of many community, civic and Fraternal Organizations. A Memorial Service will be held at Our Lady of Mercy Church, 1 Elmwood D.C. on January 28, 1992 at 7:30 pm. Inurnment, Santa Rosa Memorial Park at a later date. Donations to Pediatric Cancer Research Foundation, 8 Rimrock Irvine, Ca.

94715 or your favorite charity. THE BUD DUGGAN FAMILY THORNE, Clara Of San Mateo, died on January 24, 1992 at her residence; she was 80; a native of Laws, she lived in San Mateo for 59 years; survived by her band, Alfred Thorne; son, Al Thorne of San Jose; daughter, Kay E. Smith of Dublin; brother, Rich Ehlan of Porterville, as well as six grandchildren and five great-grandchildren. Family and friends may call Tuesday from 4-8 pm. at DUGGAN'S CARLMONT CHAPEL, 1101 Alameda de las Puglas, Belmont.

Graveside Service will be held on Wednesday, 1 pm. at Skylawn Memorial Park, San Mateo. Memorial contributions may be made in her memory to Mission Hospice, 1515 Trousdale Dr. Burlingame, CA. 94010.

Cremations AMERICAN CREMATION SERVICE $535 up FREE BROCHURE (415) 552-5454 DAPHNE S.F. FUNERALS CREMATION SERVICE COMPARE OUR PRICES 1 CHURCH S.F. 621-1313 DUGGAN'S SERRA MORTUARY Compare Our Cremation Cost 756-4500 NEPTUNE SOCIETY 24Hrs Main Bay Area Office 771-0717 NEPTUNE SOCIETY Customer's Office PIONEER CREMATION SERVICE Call For Free Brochure 1-800-371-7700 Funeral Directors FOR ALL A FAITHS S.F. LAWN CEMETERY CREMATORY 1000 El Camino Real, Colma (nr. S.F.) COUNSELING 7 DAYS A WEEK 415-755-1727 DAPHNE FUNERAL SERVICE TRADITIONAL FUNERALS LOW PRICES 621-1313 1 CHURCH STREET, S.F.".