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Show <= oe eee ee heSalt LakeTribune BUSINESS MSAVVY CONSUMER, D-7_ IB BUSINESS GLANCE, D-10 M TECH CONNECTION, D8 Page D-6 JANUARY22, 2000 @ DILBERT. D-11 Oil Losing Its Grip on U.S. Economy With better technology,nationless influenced by high crude prices THE ASSOCIATED PRESS As crude-oil prices roared toward $30 a barrel this week, reaching levels last seen on the brink of the Persian Gulf War, airlines were adding surcharges to ticket prices and consumers The reason: Oil simply doesn't lubricate the new, tech-savvy econ- { Analysis: E Blue-chip stocks fll for the fourth straight session Friday as investors found many reasons to move money away from industrial companies and toward the technology issues that once again pushed the Nasdaq composite to a new closing high. IRS Demands $3.4M_— energy efficiency of companies that use oil heavily and the increased lim Wrightputs gas into his rental car in Boston on Friday. Although people havefelt the sting of higher crude-oil prices at the pumps,it has not detered them from usingtheircars. To Expandin Former ownerKelly F. Erickson’s 1997sale of a Best Western motel in Beehive State demanded three trusts formed by Erickson andhis wife, Alice, pay that amountin additional taxes for 1995The Santa Clara couple on Dec. 30 filed petitions on behalf of their trusts asking the U.S. Tax Court in Washington,D.C., to overturn the IRS rulings. Thepetitionsallege the IRS erroneously denied the Best Western Cap- itol Reef Resort, AlhambraInvest- mentand Kae Familytrusts deductions for various expenses, including $1.1 million for charitable contributions. The petitions also allege the IRS wrongfully increased their taxable capital gains. TheIRS has 60 days to respond to thepetitions. If the agencyandthetrustsfail to negotiate a settlement, the cases could gototrial before a tax-court judge. Novell Attacks Piracy Novell Inc.said it recovered an estimated $20 million ofsoftwareillegally for sale on the Internet. The company’s investigators discovered the products on eBay’s auction site. Novell boughtthe software after determining it was not autho- rized forsale. It then contacted the seller and recovered the remaining productshe had. Steve Kirk, a Novell spokesman, said theseller said he had found the productsin a trash bin. Mostofthe Novell products offered on auction sites, the company said, turn outto be illegitimate. The company investigated more than 2,400 casesof software piracy last year. Novell, based in Provo,sells networkingsoftware. It employs about 2,600 people in Utah and about 5,100 people companywide. Tax Offices Extend Hours Internal RevenueServiceoffices in Salt Lake City, Ogden and Provo will extend their hours and open on Saturdaysto help taxpayersfile their 1999 returns. ‘ IRSlocations usually are open from8 a.m -4:30 p.m In Salt Lake City, those hours will be extended as follows: oy f the Marchcontract briefly rose above $29 before giving up some ground. The new near-term contract still importance of industries that are not heavily dependentonit.” to finish the day with a gain of 23 cénts to close at $28.20 a barrel on the"New York Mercantile Exchange. Two decades ago, a similarly huge spike in oil prices resulted in lng lines at the gas pumps and sent‘the U.S. economyinto shock. But in 1999, while fuel oil and gasoline prices climbed sharply, the “core” raté of a barrel in Feb: Prices for crude have jumped OPEC, an often undisciplined cartel, was able to hold down production. U.S. oil supplies now are at their lowest level in several years and the nearly $5 a il in the-past week. Heatingoil, spurred not ony byoil's surge but a Northeastern cold snap, inflation — excluding the volatile See OIL, Page B-7 Utah Banks Make Room For Reform BY LESLEY MITCHELL THE SALT LAKE TRIBUNE The Internal RevenueService has 97. contract expired. In trading Friday, Retailers Plan From Santa Clara Couple Torrey couldcost him $3.42 million more than expected. utility vehicle, despite gas prices that are the highest they've been there year high in November that was The era of cheapoil began ending last March when the Organization of the Petroleum Exporting Countries (OPEC)cut production by 4.3 million barrels a day. The oil producers were determined to enda worldoil glut and push up pricesthat fell as low as $11.37 omist for John Hancock Financial Services. “That's dueto the increased Michael Dwyer/The Associated Press smashed again this week. Oil for February delivery rose as high as $29.95 during trading Thursday before the Since March, crude prices have more than doubled, reaching a b since Christmas 1990.“The economyis good.’ 5 omythewayit once did. “Oil's overall impact on the economy is vastly reduced” from years past, said William Cheney, chief econ- Utah Index measures the stock performance of the state's major publicly held companies. “Tt doesn’t deter me,” motorist Chip Tuttle said at a Boston gas station Fri- getting tighter.” day as he paid $43 to fill his sport- U.S. economy has barely blinked. ci} International Energy Agency warhed Thursday that markets “are tight and Jeum pi were worrying aboutheating bills. Yet inflation remains tame and the Utah's Top Performers The Bloomberg has risen 50 percent in two weeks. But even with energy products pushing to a series of new nine-year highs, many Americans keep shelling out cash for gasoline and other petro- They can now provide insurance,stock tradifig The.nation’s largestretailers will continue to expand in Utah in coming years, snatching primelots along the WasatchFrontas well as BY STEVEN OBERBECK THE SALT LAKE TRIBUNE in rural communities throughout thestate. Home-improvement chain Home Depot, whichhasthree stores in the Salt Lake City area andoneeach in Centerville, Lindon and Riverdale, is building stores in Ogden and Insuranceagents and stock brokers soon may outnumber tellers ii n open in April. The company also wants to build stores in Sandy and ParkCity. Competing chain Lowe's (which does business as Eagle Hardware & Garden) operates four stores andis planning on adding two others along the Wasatch Front. Like HomeDepot,it is scouting for addi- world where customers sidle up to Utah lobbies. Call it banking reform. An overhaul of banking law:by Congress last year could result in a West Jordan that are scheduled to, a teller to deposit checks, step across the room to buylife ingurance andglance upat the wall to catch a stock quote ona ticker tape “Thebig questions will be is what customers really want,” said Ed Leary, commissioner of the Utah Department of Financial tional locationsfor stores. “You're going to continue to see growth amongthelarge national retailers who have placed them- selves into thiseis and still have room to aid Merrick Wright, senior eae of retail properties for CB Richard EllisInc., a Salt Lake City commercial brokerage. Manyretailers are filling in with sites along the Wasatch Front and are looking at less-populated areas that in the past they never would Ryan Galbraith/The Salt Lake Tribune lan Calderon, the senior technology consultantfor the Sundance Film Festival, shows a state-of-the-art prototype of a Sony High Definition video camera.Digital technology is helping independentfilmmakers to create betterlookingfilms at a cheapercost. “Five or six years ago, none of these companies ever looked at Tremonton or even Tooele,” said William Martin, a principal with commercial brokerage Colliers Commerce CRG in Salt LakeCity. “Now they are looking at places such as Logan, Brigham City, BY VINCE HORIUCHI whichis based in Washingtonstate, in the details, possibly both,” said the San Francisco company poised to become Utah’s second-lar; bankafterit buys 68 Zions and Security branches later this year. @ Tech Connection D8 LT LAKE TRIBUNE recently opened its third store near University Mall in Orem. The company, which opened its first two stores in Salt Lake City and Midvale, also is preparing to open another soon in the building vacated last year by electronics They say “film is forever.” But this year, the SundanceFilm Festival in Park City is suggesting “video is the future.” Forthefirst time, six Park City theaters havebeenoutfitted with digital video projection systems capable of displaying digital ranging from high-definition cameras to using the World Wide Web to market and distribute movies. New technology in filmmakingis sucha large issueat this year’sfestival, there are three times more panel discussions about it than any other aspect of making movies, Sandy.It also is considering build- videos that nearly match film in quality. At least 19 features will be shown using the sys- “Back in 1980, the independent film community wasused to being atthe bottom ofthe retailer Incredible Universe in ing in West Jordan. Unlike the home-improvement, warehouse club and discountbig- boxretailers, electronics and furniture retailers have no big growth plans in Utah. Some, such as elec- les, The new regulations permit banks to convert to a new type of companythatallows banking ofier- ations, insurers and securities firms to join forces. The rules, though, require banksto be finiancially sound and have good mianagementbefore they convert tothe new form. Ever since the Great Depression, banks have labored under laws they considered too restrictive — lawsthey believed prevented tiem from effectively competing eth foreign companies whose tems during thefestival. food chain,” said Calderon, who along with While some bank-holding com. “The timing wasright and the technology was there for filmmakers to choose to show their films on digital video,” said Ian Calderon, senior consultant for the Sundance Robert Redford is oneofthe originalfounders of the Sundance Institute.“Now wehave the support of about 85 major technology companies.” Panies, including Utah’s First Security Corp. and Zines Baier poration, were allowed to own Psalat ae r logy behindthefilm nawey r Se festival a for 20 years. Digital video projection is one of several makers whospend pel their careers scro1 wu forscraps offilm and equipment wouldbe the from their banking operations. The new regulations holdout the advances in filmmaking and movie presenta- first to embrace up-and-coming technologies. promise of a new but more compet- itive era as the mandated separation of financial services ends, Institute, He has been in charge of the tech- tronics chains Incredible Universe, Future Shop and furniture retailer . cameinto ; Sears HomeLife Utah but eventually left after disappointing idation andhope. John Staffordof Bank ofthe West, Sundance may makea star of digital-video technology American Fork and Vernal.” Warehouse club chain Costco, will rule them in the future. ers look on with trep- “Either God or the devil resides Screen Test haveconsidered. "| Institutions. “Will they respond?” After decades of lobbying»by bankers, Congresslast year finally lifted Depression-era restrictions that forbid banks from owning insurance companies and stock brokerages. Federal regulators Friday offered bankers their first glimpse of new regulations that ‘It may seem oddthat independent film- pele eeeen od Some companies comeinto this market and do not realize how oe ae an at this year’s festival. The lew Media and Technology Center at Park But their marriage makes sensebecause poor filmmakers making “no-budget” movies have 50S. 200 East: Tuesdays and competitiveit is, said Wright of CB City’s Prospector Square hosts demonstra- turned to video. It costs nearly nothing to Stafford said. Thursdays,Jan.11 to April 13, 8 a.m. Richard Ellis. “A lot of them don’t understand the market share thatis controlled tions of high-tech camera, projection and shoot hundreds of hours of videotape, It will mean better service and lower costs for customers, said Si ‘ling Jenson of First Security Investment Management, the operator of a family of mutual a Consumers will no longer to fir ix separate offi ; Saturday, Jan. 29 to a.m to 12:30 p.m.; and Monday, April 17, 8 a.m. to 6:30 p.m. @ 210 N. 1950 West: Tuesdays and am compawinavit Wednesdays,Jan.11 to April 12,8 a.m. to 5:30 p.m.; Saturday April 8 Monday,April 17, 8 a.m. to 6 p.m. In Ogden: ‘ neeDienants a % é i117.) 7 BY GUY BOULTON a Sr ‘THE SALT LAKE TRIBUNE Asmany as 175employeesin Salt Lake City will lose their’ Jobs or be relocated in a consol- a.m, until 5:30 p,m; Monday from 8 a.m.to 6:30 p, ‘Taxpayer1s also maycall (900)£29. ioe antne dayor nightfor assistance. I Pipeline Company to Cut 175 Jobs From Salt Lake City Office ve Peet _ i8 Thursdays from Jan. 11 to April April 17 See VIDEO,Page D-12 13 panel discussions on new technology by companies like R.C. Willey and Granite Furniture,”he said. ° . a.m. eee Monday,April 17,8 ce W, 100 North: Tusedays and editing equipment. Thefestival also features ‘ ee storage. lal -gas liquids are products, such as propane and butane, separated from natural gas through processing... Houston. Williams oe about 180 of the 275 Salt Lake City and Houston will lose their jobs. aes peeingend rocessing is a competitive Basinessonsite! to price changes, ‘agner, an wirtimnainectsmet @ finan “ to working to pull new rules out ofthe financial ization law passed 7 Consumers may get an unex. from Other employees will be analyst with Edward Jones in regulations. The law restricts transferred to Tulsa or other fn Williams ae banks ron sharing Sesonal with annual revenue of more pany. Thase who lose theirjobs °pnenPricesarelow. | giveEventually, the!ir p at could mean.a Williams, based in Tulsa, idation n of one of W: Williams Cos. .' Okla., is one of the country’s ays largest pipeline companies, field locations Re will be different jobs within theoffered com- nesses’ costs low cnough that it makeswe announced Friday affects the than $7.5 billion. It also is will receive severanch pack: veoule al ils Lake. City company's operations in buildinga fiber- network. ages or be given the option of office, Julie Wiliams decline in the number telephone to consumers because cessing as well as natural-gasliquids bay 23 AD called midstream business also will affect about rr ‘The company hopes|to comLesh lpi ef A has no intention of Closing office, a telemarketing outfits for marketing purposes,” Stafford said. w businesses. The reorganization natural-gas gathering and pro- The * tion of its so- taking early retirement. t spokeswoman, stressed th ' account information w! parties,unlesstbank custombrs banks “may not be able to hire t : |
