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Show BUSINESS vesday, March 22. 1994 SA U.S. exports fall; trade deficit widens ~~~ Goods, services are part of report WASHINGTON(AP) — America’s monthly trade deficit widened sharply in January as a big drop in sales of aircraft and telecommuniCations equipment caused exports to fall by the largest amount on record, the government said today. The Commerce Department said that the trade deficit in both goods and services jumped 51.8 percent in January to $6.30 billion, up from December’s deficit of $4.15 billion. That increase occurred despite the fact that the government for the first time included trade in services in its monthly report. Ameri- ca enjoys surpluses in the service Religious category, which includes such chandise deficit to worsen sharply. things as tourism, transportation and insurance, unlike merchandise trade, where it runs perennial deficits. They said the reason the change was made was to recognize the fact that services were playing an increasing role in America sales over- The surplus in the services cate- seas, now accounting for almost gory did rise in January bya slight $130 million to $4.73 billion. one-third of total exports. Private economists generally However, that small gain was supported the change, although wiped out by a $2.28 billion widening of the deficit in goods, which jumped 26 percent to $11.03 bil- _they said financial markets, which can be easily roiled bytrade reports, are likely to continue focus- lion. ing on the old trade series until The total trade deficit, $6.30 billion, is the sum of the surplus in services and the deficit in goods. Commerce Department officials denied that their motivation for they become more familiar with the new report. Underthe old accounting method, which measured merchandise trade ina slightly different way, the adding services to the monthly trade report was an effortto make America’s trade performance look January goods deficit would have been $9.84 billion, compared toa revised Decemberdeficit $7.37 bil- less bleak at a time when private lion, which had been the smallest forecasters are expecting the mer- trade imbalance in a year. he new trade report including goods and services still gives its country-by-country breakdown using only trade in goods. Analysts The month-by-month changes in the say they do not have enough infor- government's new trade report: mation on services, which are esti- eet mates, to provide country by The United States continued to suffer the highest goods deficit with Japan, although the imbalance narrowed by 12.9 percent in January to $4.62 billion, the smallest monthly trade gap with Japan since June oflast year. The United States has been pressuring Japan to do more to lower 6h America of $59.3 billion last year by buying more U.S. products. However, so-called “framework” |-12 FT 346 612k, JFMAMJJASOND | what was a record surplus with talks to open Japan’s markets col- See TRADE on GA wes GM unit wins ee 34 billion deal DALLAS — Electronic Data contract from Xerox Corp. to provide data processing services that Xerox once handled itself. The contractis one of the largest “outsourcing” deals to date. Under the deal, the General Motors Corp. subsidiary will handle most of Xerox's data processing operations woridwide. Many of the 2,000 Xerox employeesin four information management areas to be affected by the deal would become EDS employees. However, an undetermined Standard-Examiner staff numberof layoffs also were OGDEN — ASalt Lake City religious group has become the new owner of Ogden’s KOOG-TV, promising to bring stability to the long-ailing station and “wholesome programming on the secular side” to its viewers. The Federal Communications Commission anticipated. The layoffs would be inciuded in an overall workforce reduction announced last year, Xerox said. has approved thesale of the station to Alpha Teamsters boss fights foes and Omega Communications, a subsidiary of the Miracle Rock Church, said Frank Nickerson, KOOG’s new general manager. Thestation had been in federal receivership since WASHINGTON — Teamsters President Ron Carey moved Monday to abolish the union’s four regional conferences and thus eliminate a prickly source of opposition to his reorganization efforts. Carey said he will ask the union’s board of directors to revoke the charters of the conferences, which have been February 1993. The Rev. Isaac Max Jaramillo, pastor of the church and head of the new broadcast company, has someideas for the station, but will not substitute religious programming for the current schedule, said Nickerson, who formally became manager on March 1. “It will remain a secularstation, at least for the foreseeable future,” he said Monday. “We oS > Systems Corp. won a $4billion S0urce: U.S. Dept. of Commerce By MARINA O'NEILL eset +5.18 at 3,870.03 NATIONAL KOOG-TV iW | BRIEF. CASES country details yet. group buys 1 fe | definitely want to influence some positive, wholesome programming.” Channel 30 nowcarries eight hours of the Home Shopping Network each day, with syndicated programs and specials rounding out the rest of the schedule, Nickersor said. The group is awaiting FCC approval to expand its signal, now reaching Ogden and much of the Wasatch Front, to Logan and a part of the Teamsters since Provo, he added. The company added a new signal translator in Salt Lake City in April See KOOG on 6A Borland plans to restructure in near future SAN JOSE,Calif. (AP) — Software companyBorland International Inc. expects a significant drop in revenues and losses for the fiscal fourth quarter and year ending March 31 and plans a restructuring. Details of the restructuring were still being , worked out, said Philippe Kahn, chairman, president and chief executive of Scotts Valley-based Borland. But it would be designed to deal with falling revenues andthe sale of its popular Quatro Pro spreadsheetline. The announcement Mondayfollowed Borland’s agreement to sell Quattro Pro to Novell Inc. for $145 million. The sale is subject to the completion of Novell's merger with WordPerfect, which was also announced Monday. Borland is a leading maker of database software, programs that enable computers to manage vast amounts of data, such as customer accounts. Quattro Pro is a spreadsheet program, software that mimics an accountant’s worksheet. “This brings Borland some cash, which I think they may need at this point, and it allows them to focus on their fundamental business, which is databases and software The Associated Press house in New York. The collection features notes issued by wildcat banks before the Civil War. Hundreds of rare 19th century bank notes and printer’s proofs will be on the block this week at Christie’s auction Old bank notes worth many new ones 1937. Each is headed by a Carey opponent. He will not seek dissolution of the Canadian conference “The area conferences are dinosaurs from a bygone era,” he said during a telephone conference with journalists who follow organized labor He said the conferences were “part of a feudal system, based on local and regional fiefdoms” and had been“fertile ground for corruption and mob influence.” Detractors decried the move. “We're going tofightit,” declared Walter Shea, chairman of the Eastern Conference He said a contingentof seven people from the international union had come to his office asking to monitor operations and audit books. The group included four “big guys” who were “probably here for intimidation,” he said. CONSUMERTIP Natural gas The Associated Press collection of rare 19th century bank notes and printers’ proofs goes on the auction block this week in a sale as intriguing to amateur historians asit is to professional numismatists. ‘ The J.W. MiddendorfII collection features notes issued by wildcat banks before the Civil War, when the U.S. government began printing its own currency. The notes demonstrate 1860s engraving techniques and uses of color, and give vivid snapshots of the nation’s past: w A$100 note printed by the Bank of RhodeIsland in Newport, R.I., one of the nation’s first banks, depicts the Battle of Bunker Hill. When the government began printing paper moneyin the 1860s, the Bank of Rhode Island becamea national bank and its notes were redeemable for federal ones. wA $5 note from the Bank of Westminster in Westminster, Md., shows a vignette of a fox hunt. A $10 note from the Bank of Selma in Selma, Ala., pictures workers loading bales of cotton onto a wagon. “They're great artistic pieces,” said Neal Shafer, a currency expert who writes a col- umn for Bank Note Reporter, an Iola, Wis.,-based newsletter for paper money collectors. truck explosions “They were made by the best artists in the engravingfield. History, art, rarity, beauty, format — they're just lovely 2,500 natural gas-powered pieces.” The collection will be sold Tuesday at Christie’s auction house in New York City The head of Christie's said the collection could fetch between $500,000 and $1 million. Manyitems in the Middendorfcollection have colors that go far beyond the drab green-and-gray of today’s U.S. bills. There are pink bills, blue bills and blue-and-red See NOTES on 6A See LOSS on 6A Southwest announces plansto integrate Morris Air routes SPOKANE, Wash. (AP) — Southwest Airlines said it will enter its first Pacific Northwest markets June 6, adding 16 daily round-trip flights linking Seattle, Spokane, Portland, Ore., and Oakland, Calif. The Dallas-based airline acquired Morris Air in De- cember and will gradually integrate routes now offered by the Salt Lake City carrier, said Dave Ridley, Southwest director of marketing and sales. Southwest's strategy is to offer frequent, low-cost flights, making it a perfect fit with Morris, which was largely responsible for a 23 percent increase in passenger boardingslast year at Spokane International Airport, Ridley said. Morris “took the low-fare strategy straight from Southwest's play book,” Ridley told a news conference Monday. Southwest will offer $49 one-way unrestricted fares from Spokaneto Seattle and Portland, and as low as $39 with seven-day advance reservations, Ridley said, Nonstop flights to Oakland will be $99 one way. The airline will begin four daily nonstop flights from Spokane to Seattle, three to Portland and one to Oakland. It will also begin four daily flights between Seattle and Oakland and four between Portland and With the new service, Southwest andits fleet of 161 Boeing 737s will serve 41 cities in 19 states. Beginning May 26, Southwest will offer seven daily round trips from Orange County, Calif., to Oakland and eight from Orange County to San Jose, Calif. Additional flights Som Seattle and Portland to Reno and Sacramento, Calif., will begin July 8, Ridley said Morris Air, which will reduce its schedule June 6, will makesix of its 737 jets available for conversion to Southwest Airlines today announced it will add 26 roundtrip the Southwest fleet, in addition to newaircraft deliveries from Boeing, Ridley sid. Morris Air, which Southwest acquired Dec. 31, 1993, will keep one daily flight between Spokane and Seattle and one daily flight between Spokane and Salt Lake City. Morris will also continue service with two daily flights from Orange County to Salt Lake City; two flights between Portland and Boise, Idaho; two be- flights this summer including service from Baltimore-Washington, St. Louis and Louisville. “Southwest's delivery of new Boeing 737s this year, as well as usage ofaircraft from our acquisition of Morris Air, has madeit possible for us to increase service in several markets where tween Portland and Salt Lake City; one between Scattle and Anchorage, Alaska; one between Seattle and ing,” said Dave Ridley, director Boise; three daily flights between Seattle and Salt Lake City; and one daily flight between Oakland and Reno Current Southwest employees will have priority Oakland “We are delighted to be entering these new mar ts,” celle Southwest's chairman ee rey kets,” said Herbert D, Kelleher president and chief executive officer Wh the addi~ Spokane, and Portland Seattle, y, ; d i “ fares, high nt sae Cams ore frelow will bring our everyday Southwest new cities in the on jobs will on seniority, based pid cid Adoeris to Air bid employees be guaranteed : a job interviews with the company and those hired will i rast stion expenses. he said , — , people full t 40 40 people t yi The time a at ful time about he airline. will lleemploy quency and exceptional customer service to travelers in California and the Pacific Northwest.” Spokane, replacing about 37 Morris Air employees, hi said customer demand is overwhelmof marketing and sales, The additions include: ge Four daily nonstop flights between Chicago Midway and Jaltimore-Washinaton we i fa ington InternaInterna oni } @ Three daily nonstops ha St ' Louis and Bal ween St, W ashington @A daily flight between Los Angeles International and Oakland. ge Two daily nonstops between Birmingham and Baltimore. wOne daily nonstop between Birmingham and Houston @Three daily nonstops between Louisville and Baltimore wA nonstop between Dallas and New Orleans w@Anonstop between Houston and Harlingen, Texas. @Three nonstops between Houston and New Orleans gA nonstop between St. Louis and Chicago Midwa' BA flight between Ontario Calif., and Sacramento Two nonstops between St or & : = i yatesnonstop ene et St. Louis between BA ad Housto: ust in @A nonstop hetween ville and Birmingham pickups to take the trucks oft the road while 11 investigates two fuel tank explosions while refueling in California and Minnesota that injured two people. “We have requested these owners take them out of service so there isn't any potential for any other accidents,” GM spokeswoman Linda Cook said About 90 percentof the 1992 and 1993 GMC Sierra and Chevrolet trucks are part of utility company or government fleets, mostly in California and Texas, she said Discountairline adds routes, increasesits fleet of 737s Standard-Exammner staff DETROIT ~ Genera: Motors Corp. has asked ownersoF its Louis. GM is lending owners new trucks of reimbursing them for the cost of leasing replacements An employee at Pacific Gas and Electric in San Francisco suffered cuts on his leg Jan 18 when a truck's gas tank exploded. A Minnegasco worker in Minneapolis needed stitches for a cut on his head after a Feb. 2 explosion blew Out the windows in his truck An investigation of the Minneapolis accident by a research institute found that acid leaked from truck's batteries, collected near the tank and cracked its fiberglass wrap, probably causing the explosion, PG&E spokeswoman Diana Gapuz said The natural gas tanks were ¢ by Comdyne inc. in West made Liberty, Ohio, and mounted on he trucks trucks byby Production P the Automotive Systems, basedin c Tr y —~ Standard-Examiner staft and wire $ervices |
