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Show PROBE: WorldCom's alleged dodgingoflong-distance fees touches a rawnerve with phonerivals. E2 o The Halt Lake Tribune Inside Utah Business E2 Your Money £2 WEDNESDAY Bushes Glance E4 Jury30, 2008 Eamings Roundup .£7 WWW=-SLTRIB.COM YESTERDAY'S MARKET. Utah auto rates not high You have accidents in rural areas, but not State ranks 29th, $78below USS.average the volumeyou havein larger areas.” The average annual Other importantfactors in determining amount consumers spend what consumers payfor auto insurance are Topping the list of states in which residents pay the most for auto insurance is By Lestey MiTcHELL The Salt Lake Tribune New Jersey, with an average annual exUtahns pay an average of $640 annually penditure of $1,028, followed by New York to insure one vehicle — well below the na- ($1,015) and Washington,D.C. ($1,012). Theleast expensive states are North Da- tional average of nearly $718, according to a new state-by-state ranking of what consumers pay for automobile insurance c 5,570.59 nationwide. kota ($498); South Dakota ($510) and Iowa ($513), States with the highest premiums generally are those with thelargestcities, Utah, at No. 29, is in the middle of the pack, according to a report by the National said Brad Tibbitts, director of the Utah In- Association of Insurance Commissioners, alty Insurance Division. “Huge metropolitan areas have lot of issues that contribute to the higherrates,” which analyzed data from 2001. Data for 2002 will not be available until next year. Utah also had one of the smallest increases in auto insurance premiums from surance Department's Property and Casu- Tibbitts said. “Not only with regard to vehicles being damaged in accidents, but in 2000 to 2001. The average annual premium terms of vandalism and theft as well,” he in Utah increased by 3.2 percent over that time period compared with an average na- said. “You have to keep in mind, Utah has really only one large metropolitan area tionwideinerease of4.6 percent. Salt Lake City, Most of the state is rural. Anunexpectedand sharp declinein consumerconfidence jolted Wall Street onTuesday, sending stocks lower on investor fears of a stumbling economy in the monthsahead fact, for example, that teenage drivers can significantly drive up a family’s cost of auAnother factor is the type of vehicle be ing covered byinsurance. The cost to insure a midpriced vehicle can be higher than the cost to insure a lux- ury vehicle depending on how well each Venture vbiaavey declines Fewer deals: The Utah letdown tendsto reflect national trends amongother capital firms, say analysts scheduled a hearing next week in Pocatello on thepetition. ‘Thesuit was initiated after Fort ByS LaPointe declared in 1999 that the com- Venturecapital investments in Utah plummeted in 2002, and a newsurvey suggests businesses eager to augment pany was trespassing on the 10 miles of reservation land its pipeline crossed, He claimed the company added to the line without revising the existing right-of-way lease. LaPointe gave Northwest Pipeline 30 days to reach an agreement with their bank accounts with such outside financing continueto strugglethis year. During thefirst six months of2003, venture capitalists funded only nine Utah deals, worth a combined $54 million, a 30 percent decline from the $77 million and 18 deals funded during the AssociatePresfile photo Chanttee Killbrew, right, and her mother, Rene Phifer, shop at the Babies “R" Us superstore in New York City for cribs for " Us has fewrivals in its lucrative niche. Killbrew's expected baby, With 188 stores nationwide, Babie: first half of last year, according to the MoneyTree survey compiled by PricewaterhouseCoopers, Thomson Venture Economists and the National Venture A baby boom at the checkout Capital Association. During the second quarter of 2003, three Utah companies EchopassCorp., Fatpipe Networks and Northface University — received a combined $21 million in financing. During the same quarter a year earlier, 11 companies eived a total to pursue the condemnation petition SOSStaffing Services Inc., Salt LakeCity, received notice Tuesday from Nasdaq thatits shares will be delisted because they no longer meet the minimumbid price required for continued trading on the Nasdaq SmallCap Market. In response, SOSsaid its board of directors approved a 5-for-1 reverse stock split authorized in May by shareholders so the company’s shares can meet Nasdaq's $1 minimum bid re- quirement. SOS expects the split to occur in mid-August. ‘The companyindicated it intends to request a hearing before Nasdaq'slisting qualification panelto appeal the Toys ‘R’ Usoffshootfinds profits in the pitter patter oftinyfeet By ANUSHA SHRIVASTAVA EW YORK TamikoSimmons walked down N theaisles at the Babies “R” Usstore, checking itemsoff herlist: crib, stroller, bouncer chair, carseat, bath tub,feeding pillow, sippy cups, mobile, blankets, toys and of course, diapers. Expecting her secondchild, Simmons was buying everything new again. But shopping is much easier now than whenshe had a baby10 years ago. Backthen, “I had to go to manydifferent stores,” shesaid.In the meantime, Toys “R” Us created Babies “R" Us,its one-stop shop for baby products where she could getit all, and where thenation's No.2 toy re- tailer has founda very comfortable andlucrative niche, With 188 stores nationwide, including one in Midvale, Utah, Babies “R" Us has emerged as the biggest money-makerfor Toys “R" Us, which is contending with increased competition in the toy marketfrom large discount chains like Wal-Mart. of$31 million in financing. “Venture capital funding levels in Utah pretty much track what is happening nationally,” said Steven Based in Paramus,N.J., Toys “R” Us reported a net loss of $7 million and a 1.5 percent decrease in same store sales for the quarter ended May 3, By contr ist, Babies “R” Us, launched in 1996, reported a 16 percent increase in operating earnings to $57 million, a Baby items have gone upscale. E5 10.4 percent increase in total sales and a 1.3 percent increase in comparable store sales despite the tough retail environment, Fifty Babies “R” Us stores have opened in the last 30 months and20 more are scheduled to open this year. Another 25 are being renovated to be more spacious. Stauffer, senior audit managerat Price. WaterhouseCoopers in Salt Lake City. “Unfortunately here in Utah, though, one deal can make or brea quarter.” Nationally, venture capitalists in. vested$8.3 billionin thefirst six months “Weknowthat we have our guest with us for a very short time,”said Elliott Wahle,president of Babies of 2003 compared with $12.5 billion in the same period a year ago. Venturecapitalists this year are a little more waryanda little more careful about wherethey put their money because of the weak economy, Stauffer “R” Us, referring to the store's customers. “Typically it is at the pre-natalstage and until the child is about a year old. So we try to makethestore relevant for her.” Of course, happy customers will return when they haveanotherchild, as did Padmaja Sai, whosefirst ness as it approached venture capital firmsearlier this year seeking the funding it needed to continueto expandits child, Janvi, is 3 and whose second, Ashna,is due ina few weeks. See BABY BOOM, 1:5 said. Fatpipe Networksnoticed that wari corporate computer networking busi ness, “Tn 2000 w ised $8.1 million andit | mentservices, Steven Oberbeck Salt Lake City lawyers join to form new practice ‘Three lawyers formerly with two of employerefforts to balance pay with expect to do much betterin pension costs in a business climate 2004,say their employers By ADAM GeLLer ‘The Associated Press and Clark Fetzerlast week established Rinehart, Simonsen & Fetzer, accord. ing to a company release. mentin 2004 Joined to form a new practice, Mark Rinehart, Gregory Simonsen ‘The newfirm,located in the Triad Center in downtownSalt LakeCity, will serve the business community in real estate, construction, zoning and surety law, as well as commercial litigation, Los COPY; Glen Warchol FUNDING, 5 Payraises will be a lot smaller this year Survey: Workers shouldn't NEW YORK — Employers are dis: pensing notably smaller pay raises this year — well below the 4 percentplus increases routine before the economy lost its footing and workers should not expect much improve- Salt Lake City’s largest law firms have was much more difficult this year toget $3 million in funding,” said Ragula Bhaskar, Fatpipe’s chief executive delisting notification. The company said as a result ofits appeal, the delisting should be postponed pendinga final ruling by Nasdaq, SOS shares closed Tuesdayat 80 cents, up 8 cents, The company provides commercial staffing and employ- OBERBECK Lake Tribune ‘Thes Hall AgencySuperintendent Eric The Associated Press $936 $912 $640 i City-based subsidiary ofThe Williams Cos, Inc., turned to condemnation after SOSStaffingreceives Nasdaq delisting notice $1,012 46.Wyoming $528 47.\daho $524 48.lowa $513 49.South Dakota $510 50.North Dakota $498 ‘Source: National Associationof Insurance Commissioners most expensivevehicles. attempts to resolve disputes overleasing the acreagefailed. U.S, District Judge Lynn Winmill pipeline covered, $1,028 $1,015 3.Washington, D.C. 29,Utah, check with their insurance agents. Somevehicles are expensive to insure, hesaid, noting that they are not alwaysthe Northwest Pipeline, a Salt Lake the same right-of-way its main 22-inch 2.New York 4.Massachusetts 5.Connecticut Tibbitts, who once worked as an insur: ance underwriter, said people who are in the market for new vehicles should first southeastern Idaho's Fort Hall Indian Reservation wants a federal judge to condemntheland crossed bytheline. in federal court. Bureau of Indian Affairs officials contend Northwest Pipeline has been trespassing since 1992 whenitinstalled a 23-inch loop over 1.New Jersey tomobile insurance. A Utah companytransporting natu- held LaPointe’s determination over the next several years. ‘That prompted NorthwestPipeline expenditure of $640, remains below the national averageof $718. ofvehicle, Tibbitts said. It is a well-known ral gas througha pipeline across the Interior Department's Board of Indian Appeals in Washington, D.C., up- greatly amongstates. Utah, with an average primary drivers of the vehicle and the type Cris CrusH Gas pipelinefirm pursues land condemnation action landowners ona lease for the new easement conditions or removethe pipeline. Both the Bureau ofIndian Affairs regional office in Portland, Ore,, and to insure one vehicle varies the numberof miles driven to work, the levelofcoverage theyelect and the age of the Companies tapped in a pair of surveys have budgeted pay increases av eraging 3,3 percentto 3.5 percent this year and plan about the same next year, the smallest raises for workers since at least the mid-1970s. The belt-tightening reflects s rising worker health care bills and that has made it difficult to raise prices for their own products, according to a survey to be released today by Mercer Human Resources Consulting, ‘Those pressures are layered on top of employers’ continued caution about the lingering downturn and an anemic job market with an oversupply of workers, says the Mercersurvey and another put out last month by the Conference Board, a private re search group. increase profits, coupled withthefact that there’s more supply than demand for labor today.” That approach is also evident in companies’ early planning for next year. Employers in both surveys said they expect to grant median increases of 3,5 percentin 2004. Even with infla. tion remaininglow,the limited raises will cap real gains below | percent this regetape productivity,” said Steven Gross, a compensation consultant for Mercer. said Charles Peck, compensation spe “People are flogging their workers to cialist with the Conference Board. get more out of them as a means to Investments in Utah companies remain lackluster compared with the boon years of 1999 and 2000 whenthe soaring economy led venture capitalists to freely opentheir wallets. | $708 | 0.66% | sam Over the past ten years, pay in. | creases have topped the rate of inflation by between 1,1 percent and 2.6 percent, according to the Mercer survey. “That's really the whole key It’s not the percent size of theincrease. It's the increase relative to inflation,” Employers “are saying | can't raise prices, Well, I've got to raise Utah venture capital investments See PAY RAISES, 1:5 rns Total Utah investments tah percent of US. total, figures are in milion O6I% $7 050% om om $97 04m ae 1998 1999 2000 2001 2002 we *fiegt six months of 2003 Sure: Prurwuterhouse Caspers Thvenppar Vintuer Lemmiey ‘Nat Wowure Cap aon The Salt Lay Trane > Y |
