Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Wed, Feb 26 1992 Date: Wed, 26 Feb 92 06:30:01 EST Message-ID: DECISIONLINE: Business Law USA TODAY Update Feb. 26, 1992 Source: USA TODAY:Gannett National Information Network BRADY ASKS FOR $55 MILLION: Treasury Secretary Nicholas Brady asked Congress Tuesday for $55 billion more to fund the Resolution Trust Corp.'s efforts to finish the saving-and-loan bailout. Brady told the House Banking Committee that the new money would allow the RTC to close more than 140 sick S&Ls. The final cost of the bailout is expected to exceed $200 billion plus interest. AUTO DEALERSHIPS NAMED IN SUIT: In Indiana, three auto dealerships in Marion and Lake counties accused of overcharging over 15,000 customers, are part of the largest consumer fraud case in over 10 years, the state attorney general said Tuesday. The state's suit accuses them of adding now-defunct intangibles tax to customers' bills in 1983-88 and keeping over $338,000 collected. SENATE VOTES FOR CONDITIONS: The Senate voted Tuesday to impose tough conditions on renewed trade benefits for China, but not by a large enough margin to override a promised veto by President Bush. The Senate voted 59-39 -eight votes short of override power - to require improvements in China's record on human rights, weapons proliferation and trade polices before extended most-favored nation trade benefits. COURT HEARS PROP. 13 CASE: Carlyle Hall, lawyer for Stephanie Nordlinger, said in arguments before the Supreme Court Tuesday that California unfairly picked newcomers as a "convenient target" to bear a higher tax burden under its Proposition 13 laws. Prop. 13 froze tax levels for longtime homeowners. But several justices indicated they were reluctant to second-guess a state taxing scheme. FIRM FILES FOR CHAPTER 11: Barrett Enterprises Inc., a small company run by a husband and wife in Battle Mountain, Nev., has filed for Chapter 11 bankruptcy reorganization. Barrett Enterprises' businesses: A brothel and a newspaper. Company president Chuck Barrett says he needs a loan, but, "small business development loans can't be used for newspapers... and they can't be used for brothels." SENATE PASSES "1-900" BILL: The House Tuesday passed a bill that will allow telephone customers to block "1-900" charges to their lines. The bill, which passed 381-31, also allows customers to hang up, without charge, after hearing introductory messages from the pay-call services. Final details will now be worked out between the House and Senate, which has passed a similar measure. FCC GIVEN AUTHORITY: A bill approved Tuesday by the House aimed at controlling abuses by the "1-900" telephone line industry, gives the Federal Communications Commission authority to oversee the industry. Also, 1-900 operators must include a free introductory message describing the service and costs, and advertisers must fully explain charges and the need for parental permission for those under 18. WRITER SUES MINNESOTA PAPER: Freelance writer Ann Bauer is suing the Duluth (Minn.) News Tribune, claiming she was libeled and slandered regarding a column she wrote that prompted real-estate agents to cancel ads. Bauer says the paper wronged her when it apologized in print for running her column advising readers on how to sell their homes without real-estate agents. She wants in excess of $50,000 in damages. JUDGE APPROVES USAGE: WTD Industries Inc. Tuesday reported that Judge Samuel J. Steiner, presiding over WTD's Chapter 11 reorganization proceedings, ruled that the firm may continue to use cash collateral under an operating budget through the effective date of its reorganization plan or May 31, whichever is sooner. Also, the court set March 12 to approve WTD's amended disclosure statement. BANKRUPTCY PLANS APPROVED: The Enstar Group Inc. announced Tuesday that the U.S. Bankruptcy Court for the Middle District of Alabama has approved its plan of reorganization, as well as plans for its subsidiaries Enstar Financial Services Inc. and Christa Oil Co. Due to insufficient assets, Enstar said its plan contains no provisions for payment to shareholders and calls for the cancellation of all common stock. CREW SUES BOEING: In Seattle, the cockpit crew of United Airlines Flight 811, a 747 that lost a cargo door over the Pacific in 1989, sued Boeing Co. Monday claiming the doors were defective. Boeing denied wrongdoing. The incident killed nine people and injured 38. JUDGE ENDS STRIKE: Arch of Kentucky Inc. and contractor, Stillhouse Mining Inc., were back in operation Tuesday following a strike. The businesses resumed operations after a federal judge ordered striking United Mine Workers union members to return to work. Business Law Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002260000D0226 ENER- R E Crude-stocks-up....................... A D0226 This article is copyright 1992 Gannett News Service. 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