The Salt Lake Tribune Page D-6 BUSINESS Mi BUSINESS GLANCE/D-7 MNYSE/D-7 @ NASDAQ/D-8 @ MUTUALS/D.9 @ BIRTHS/D-10 @ DILBERT/D-10 @ OBITUARIES/D-11 SATURDAY, DECEMBER5,1998 Utah Firm Hit With Record Pollution Fine Market Indicators Dow Industrials NYSE Circuit-board maker Compegq mustpay$1,350,000 for dumping copperinto Salt Lake City sewer levels were 1,000 times abovethelegally permitted lev- BY BRENT ISRAELSEN A Utah manufacturer of circuit boards was ordered Friday to pay a record $1 million fine for dumping excessive amountsofcopper into a Salt Lake City sewer system. A sentence approved by U.S. District Judge Bruce Jenkins also requires CompeqInternational Inc. to pay $350,000 in “contributions” to state, local and regional environmentalagencies. The fines and contributions, which amount to the largest financial penalties for a criminal case in Utah Stocks reboundedas a strc employment report provid evidence of economic resilier Eight Kinney ShoesStores In Utah Will Close in °98 ‘The eight Kinney Shoesstores in J y year end as part of a nationwide closure of 566 stores. The Utah stores are among a numberof stores nationwide that have been unprofitable, said Eleanor Linek, spokeswoman for Kinney’s parent company, the Venator Group Inc., in NewYork City. Venatorfor- merly was Woolworth Corp Venator will close 467 Kinney stores and 99 Footquartersstores nationally as the companysheds its ca- sual dress-and-footwear operations to focus on sneaker and sports apparel Kinney employees have beenof- fered a severance package, help in seeking other jobs and the opportuni- tyto apply at other company stores outside Utah, Linek said. She did not knowthe number of Kinney employees in Utah, but said the stores typi- cally employupto seven people Kinneys’ first Utah store opened in 1970 in Murray Nutraceutical Income Up Nutraceutical International Inc. of Park City reported net incomeof $5.7 million, or 48 cents per share, on rev enueof $104.7 million forthefiscal year endedSept. 30 Theresults compareto net income of $4.2 million, or 40 cents per share. on revenue of $98 million for the 1997fiscal year Thefigures for fiscal year 1998 do not reflect an extraordinary loss on early debt repayment. With the loss net incomefor the year was $2.6 miilion. For the fourth quarter, Nutraceutical reported netincome of $1.1 million on revenueof $26 million. That comparestonet incomeof $100,000 on revenueof $25.8 million in the same quartera year earlier. Bill Gay, the company’s chairman and chief executiveofficer, said sales to core customers remained strong year. And while the company its overall growth rate has slowed, “This slowing appears consistent with other channels of distribu- tion in the nutritional supplement industry Nutraceutical supplies nutritional supplements to health-food stores under brands that include Solaray KAL, NaturalMax and VegLife. Families Get New Homes Five low-income families in Green River are movinginto homes through 4 programoperated by the Utah Housing Finance Agency The Crown (Credit-to-Own) pro- gramprovides new, single-family homes to low-incomefamilies who Excessive copper can harm sewage treatmentplants as well as the environment, said Claire Whitney, an attorney for the Justice Department's environmental crimes division. Twoemployees of Compeq were charged separately with misdemeanors. Randy Rodriguez, formerfacilities manager, wassentenced last monthto pay a $2,500 fine scheduledto pleadguilty to a misdemeanorchargelater corporate criminal pollutersthat their activities will not be tolerated in Utah,” Lambertsaid. He said polluters harm the environmentand taxpayersand they compete by the Utah Attorney General's Office and a special U.S. Environmental Protection Agency enforcement unfairly with other businesses that comply with envi- into Salt Lake City’s sewer system. At times, copper Battle Brews Over 2002 ‘Unofficial’ Amber Ale team set up in Salt Lake City in 1997 Utah Jobless Rate Drops; Mild WeatherIs Cited Butfall in rate ofjob growthreflects slowingof state’s economy PHIL SAHM of WorkforceServices estimates. THE SALT LAKE TRIBUNE Utah's unemployment rate droppedto 3 percent in November, two-tenths of a percent lower than October. SLOC warns Wasatch beers about use of name — again Thejobless rate nationally also drifted down two-tenths to 4.4 percent, nearly Thebreweryhas added Wasatch ‘Unofficial’ 2002 Amber Ale” to its product the same pace asin recent months, but down significantly from 1997 and recent largest job growth, 5.4 percent in November. Jobs in the services sector grew years. But Ken Jensen, chief economist for the Utah Department of Workforce Ser- line — and apparently struck upon a strong seller. It is jamming,” said Mark Cleveland. the company’s sales representative. “It’s vices, said slower job growth does not have himworried,yet. “Wearejust adjusting to a slower economic pace,” Jensen said Hecredited the dropin the unemploy- a hot beer,iet metell you.” The label — with the universal symbol for “no” over “2602” — also has some fun with the fierce defenseof all things Olympic. ‘As the unofficial beer of a certain event that will take place a year after mentrate, at least partially, to the mild weather Utah experienceduntil Friday's snow storm. Mining wasthe only sector of Utah's 2001, we cannotoffer international logos economythat lost jobs the past year, declining by 300, according to Department “We Southeast Asian economies has slowed costs whereverthey can,” he said. percent in Utah in November, roughly beers, is once again tweaking the Salt Lake Organizing Committee president of the Utah Mining Associa- tion. Additionally, the recession among watch as a key indicator, came in at 2.7 Job growth, an index economists ‘THESALT LAKE TRIBUNE hurt employment, said Tom Bingham, tories. restaurants helpingoffsetlayoffs at fac- Schirf Brewing Co., maker of Wasatch Low prices for copper, zinc, gold and silver have depressed the industry and the demand forcoal, impacting about 50 percent of Utah's mining industry, Bingham said. “When those things happen, they matching last spring’s 2-year low, with strong hiring by department stores and BYGUY BOULTON reads the label. criminal penalties, set in July, when a judge ordered Syro Inc., a steel fabrication company, to pay $1.1 million in fines and assessments for dumping excessive quantities of zine into a sewersystem in Centerville. The Syro and Compeq caseswereinvestigated jointly “[Webelieve] the fine imposedwill send a message to Water Act Thecharges accused the companyoffailing to ade- charge permit, Lambertsaid. The $1 million fine will go into a federal criminal victims’ compensation fund. The $350,000 in contributions will be divided as follows: $150,000 to the Utah Department of Environmental Quality’s hazardous substance fund; $150,000 to the Salt Lake City Public Utilities Department; $50,000 to the WesternStates Project, which trains state investigators in environmental en- The Compeq penalties surpass the previous record Federalprosecutors held a press conference Friday to tout the case as an exampleof a recent state-federal crackdown on environmental crimes quately remove copper from wastewater discharged or trademarks,” In addition to the fines, Compeqhas agreedto spend $1.8 million upgradingits on-site wastewater treatment equipmentto stay in compliance with its pollution-dis- forcement. this month, said Lambert. to three felony counts of violating the federal Clean publicly anies Compeqownsand operatesa circuit-board manufacturingplantat the Salt Lake City International Center. Wastewater treatment supervisor Stephen Taylor is history, settle a felony complaint filed earlier this year against the companyby the U.S. Justice Department. Compeq International, a subsidiary of Taiwan-based Compeq ManufacturingInc., pleaded guilty in October major heid ronmentallaws. els, said Richard Lambert, assistant U.S. attorney THE SALT LAKE TRIBUNE [mining companies]tighten belts and cut Utah’s construction industry saw the 3.5 percent, while manufacturing added positions at a rate of eight-tenths of a percent Factory layoffs nationally, many promptedby theAsian crisis, are throwing people out of work but they are quickly getting reabsorbed into the econ- omy’sservices side,said economist Allen Sinai of Primark Decision Economicsin Boston. ‘It looks like there are plenty of jobs and enough money for the American consumer to produce a better-than-averageretail season,” said Sinai, can, however, proudlyoffer this locally brewed amber ale. It may be unofficial, but we think you'll agree it tasteslike a gold medal winner.” All this has not endeared Schirf Brew- ingto the Salt Lake Organizing Committee (SLOC) or the U.S. Olympic Committee. They obviously think 2 combination of public sentiment and humor will mud- dythe watersonthis and thatwe will just go away,” said Mike Moran, a spokesman for the USOC. Corporationsfork over serious money to be affiliated with the Olympic Games, and that money makes up about 70 percentof the USOC’s budget — notto mention about half of SLOC’s budget for the 2002 Winter Olympics. For that reason, the Olympicentities get quite perturbed by any business that implies any affiliation with the Olympies. “While this individual maythink this is funny, it goesright to the heart of how America sendsits teams to the Games, Moran said. Schirf Brewing tested SLOC and the USOC earlier this year whenit printed on oneof its delivery trucks, “Wasatch Beer. The Unofficial Beer, 2002 Winter Games.” No mention of the Olympics. That didn’t matter. SLOC sent Schirf Brewing a letter, devoid of humor, warning about the commercial use of words relating to the Olympic s The brouhaha — not to mention the ensuing publicity — gave the folks at Ryan Galbraith/The Salt Lake Tribune With 2002logo andthe universal “no” sign, Wasatch Amber Ale tweaks the Gamesestablishment. year that comes after 2001,” said Greg Schirf, the company’s top executive TheUSOC disagrees Federal lawgives wide protection to the Olympic trademark, Moransaid, and that protection includes implied references to the Games. “It’s easier to make fun of us and talk about corporate paranoia,” he said, “but there are serious reasons for doingit.” The USOC’s position is that the product refers to the 2002 Winter Games. Fornow,Schirf Brewing isn’t planning to back down. It’s our position we are squeaky clean,” hesaid. ‘The beer itself — described as a malty beer with an easy finish — has become one of the company’s best-selling prod- ucts since being introduced three months ago. Schirf estimates that more than 1,000 cases have been sold. “People love the beer and the name,” Schirfsaid. And, who knows, the beer might serve Plunging Gasoline Prices Have Americans Buying Fuel-Guzzlers But regulatorstightenfuel-efficiency requirementsfor dirtiest models THE ASSOCIATED PRESS NEW YORK — Efforts to develop cleaner-running automobiles are accelerating despite a plunge in gasoline prices that has lured millions of Ameri- cansinto gas-guzzling sport utility vehi- tion, are missing the whole story,” said Amory Lovins, director of research at the Rocky Mountain Institute, a nonprofit research organization. He noted that a newbreed ofcleaner vehicles under development at virtually every car manufacturer is expected to offer more com- cles. But the push isn’t turning out as planned. Government and industry have fort, acceleration and are better cars,” he said, “for the same til recently as a main anti-pollution tool, to hybridsthat aren't as clean, but easier to make. At the sametime, regulators reason people buy compact disks instead of phonographrecords.” Electric cars have so far been seen as too muchof a tradeoff for consumers. are tightening fuel-efficiency requirements for today’s dirtiest models. These two trends are expected to ush- But advances in battery technology are spurring other types of clean cars erin cleaner cars on America’s roadsthis coming decade. Less certain is whether the movewill help cutpollution. that still rely partially on the automobile’s century-old combustion engine. Toyota Motor Co. announcedlast fall A nearly two-decade-long dropin gasoline prices has been threatening to set thatit would becomethefirst automaker back clean-air efforts. U.S. sales of new pickups, sportutility vehicles and vans to market a hybrid gasoline-electric car. Regulators are stepping up efforts Last month, California drastically tightened emission controls on full-size pickups, vans andsport utility vehicles, saying the growing popularity of the bigpolluting rigs has undermined thestate’s efforts to meet federal clean air goals. topped car sales in November for the first time. Carbon dioxide emissions, which are believed to cause global warming, jumped 20 percent between 1980 and 1996. Technologyis starting to catch up to the problem, said several experts, potentially offsetting the effects of the gas and beaslow as passengercars by 2007 “People who just look at fuel price, who don't look at the technology revolu- suit, with the federal Environmental Protection Agencynot far behind. Wasatch Brewerythe idea of making an unofficial beer.’ This time, the company dropped the as a useful gauge of public opinion. Now The three- to four-bedroom singlefamily homes cost between $82,000 and $92,000 to build, They will lease for $340 to $375 a month onto “2002. Our position is 2002 is simply the license plates with the SLOClogo, but sales of “Wasatch ‘Unofficial’ 2002 Amber Ale.” Utah Legislature to provide housing Computer Whiz on Trial as China Cracks Down on Internet Dissenters lease for 15 years and then buythem below the market price with a low-in- terest mortgage words Winter Games” but hung tough people can track not onlysales of Utah The agency was established by the for low- and moderate-income households. Programs like Crown are funded through the issuance of bondsto private investors and certain income tax shelters to corporate investors. No tax dollars are used. Crown is sponsored in part by American Express Centurion Bank and other local and state government agencies. Morethan 200 homes have been built through the Crown program in Green River, Richfield, West Valley City, Vernal, Ogden, Cedar City, Salt Lake City, Provo and Roosevelt. ' ‘THE ASSOCIATED PRESS SHANGHAI, China — China has extendedits crackdown on dissent to the Internet, putting a computer whiz on trial Friday for giving e-mail addresses to an online pro-democracy magazine. The case is the first prosecution of its kind in the ruling Communist Party's attempt to exploit the Inter- net commercially while crushing attemptsto turn it into a forum for dissent. Chineseefforts to police the Internet include technology meant to block accessto sites deemed subversive or pornographic. Service providers are required to regis- other improvementsover today’s cars. “People will buy them because they shifted focusfrom electric cars, seen un- Undernew rules, emissions levels from SUVs must begin coming down in 2004 guzzlers onthe road. ter all users with the government. Lin Hai, a Shanghai software-company owner,is ac- cused of subversion for giving addresses for 30,000 Chinese computer users to VIP Reference, a pro-democracy journal published on the Internet by Chinese dissidents in the United States Hai, arrested in March, appearedin a closed courtroom Friday with two defense lawyersto face the subversion charges. The trial ended after four hours, defense lawyer Wang Wenjiangsaid, addingthat the court could take a week toissuea verdict, “I'm afraid it doesn’t look good for Lin Hai. I think ' Other states are expected to follow he’s going to be found guilty,”” Wangsaid. Lin’s wife Xu Hongfailedto arrive as planned Friday outside the courthouse, leading to fears that she may havebeen detained by police. Xu had appealed for an open trial for her husband. She had also written to President Jiang Zemin and Premier Zhu Rongji asking for their help, but said she received no reply. The U.S. Embassy in Beijing expressed concern that the trial was closed and urged Chinato “{ illy respect international human-rights standards,” spokesmanBill Palmersaid. , ,