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Newspaper
Cedar Rapids Gazette
Location
Cedar Rapids, Iowa, United States of America
Date
Jun 11, 1988
Page
17
Government data indicate inflation at the wholesale level quickening with a 0.5 percent May rise. If sustained for 12 months the rate would reach 5.8 percent, near triple the 2 percent year-ago pace. Black Hawk plan enters temporary staffing.
U S District Judge Marvin Aspen ruled against Burlington Northern Railroad Co as union lawyers argued the Interstate Commerce Commission violated the Railway Labor Act by approving a plan for two member crews. The decision affects BN subsidiary operations and current crew contracts require an engineer a conductor and one or two brakemen. ANTENNA MASK a TRW Corp space plant in Redondo Beach Calif inspects masking material used in spacecraft antennas.
Isuzu Motors voluntarily recalls 22,691 1988 Trooper II vehicles to fix rear disk brake defects that could cause loss of braking power. Owners are being notified by mail to bring cars to dealers for repairs.
Dalfort Corp which owns about 64 percent of Braniff shares announced it will sell its Braniff stake to an investor group led by Paine Webber Group Inc New York. The offer values Braniff at seven dollars per share in cash plus a pro rata 20 percent equity in the acquiring company for each Braniff common share. Board approvals required.
Iowa seeks disciplinary action against Iowa Illinois Health Insurance Co of Davenport which sells National States policies after a state ranking found National States with the highest consumer complaints rate two years running. A June 29 hearing could revoke the Davenport firm's license and fine president John Truitt up to 60,000 for reckless disregard.
Teleconnect Co holds a tailgate summer quarter employee meeting and picnic outside headquarters blocking Fifth Street SE between First and Second Avenues. Spokesman says similar quarterly team building events planned. Cynthia McFarland and her daughter Rochelle enjoy the street feast as Hawkeye Downs hosts later annual picnic with midway games and rides.
Longview Fibre shares rise for the eighth straight session Friday gaining 2 percent to 60 percent as Eastern Iowa stocks keep modest gains amid a broad market upturn. Dow Jones average lags a new high. Exxon Ford IBM Eastman Kodak gain, volume daily turnover declines. AGS Computers gains on Nynex deal details.
Payless Cashways Inc officials confirm they are evaluating a leveraged buyout valued in the mid twenties while New York financier Asher Edelman leads an investor group seeking a competing offer. If a cash bid reaches 25 dollars a share, the total would approach 840 million. Edelman and Sutherland Lumber Southwest have been linked as potential suitors, though no formal bid has been made.
Banks of Iowa announces higher loan loss provisions at First Bank Davenport and Banks of Iowa Credit Corp to cushion potential losses. The move lowers Q2 earnings versus expectations though year-to-date figures still compare favorably to 1987.
Traders cite drought psychology behind two limit down days on the Chicago Mercantile Exchange as analysts say cattle face sharper drought effects. Industry voices note ample hog feed supplies, with packers trimming runs to protect margins and farmers likely marketing lighter weight hogs to ease prices.
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