Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Fri, Jun 26 1992 Date: Fri, 26 Jun 92 05:19:54 EDT Message-ID: 06-26 0000 DECISIONLINE: Business Law USA TODAY Update June 26-28, 1992 Source: USA TODAY:Gannett National Information Network MOB LINKED TO PAPER'S CRIMES: New York District Attorney Robert Morgenthau said Thursday he charged 13 mobsters with crimes at the New York Post. The alleged members of the Bonanno crime family were charged with illegally inflating Post circulation figures and controlling loading docks. Two Post executives pleaded guilty to misdemeanors, apparently in connection with the sales figures, but were not fired. POST WILL PROVIDE FREE ADS: The New York Post pleaded guilty Thursday to defrauding advertisers about circulation figures and agreed to provide $2.3 million in free ads. Earlier this year, the Audit Bureau of Circulations found the Post's 552,227 average daily circulation was inflated about 61,000. The district attorney's investigation also uncovered firearms, loan sharking and heroin rings at the Post. RAIL SERVICE BACK ON TRACK: Commuter and freight trains are rolling again Friday after President Bush signed a bill to slam the brakes on the railworkers strike. Congress early Friday approved a compromise that: Imposes a cooling-off period of at least 35 days during which workers would return; Allows an arbritrator to decide a winner-take-all pact. The House approved the bill 248-140; the Senate 87-6. COMPANIES FEEL STRIKE EFFECTS: The rail shutdown caused problems across the USA Thursday. Among effects: At C. Handel and Sons in Shafter, Calif., three rail cars were filled with 126,000 pounds of potatoes; 50 workers were laid off when the strike began. White House spokesman Marlin Fitzwater even suggested McDonald's was in danger of running out of french fries, but McDonald's said all was well. BANK SETTLES SECURITIES CHARGES: Citibank Thursday, without admitting or denying guilt, settled government charges relating to worthless securities. The Office of the Comptroller of the Currency had charged the bank with allowing the securities to fall into the hands of people who sold them around the world in scam operations. No charges were filed and Citibank agreed to keep tighter control of the securities. CONTINENTAL GIVEN 60 DAYS: U.S. Bankruptcy Judge Helen Balick Thursday granted Continental Airlines another 60 days to file an amended bankruptcy reorganization plan. Balick said she granted the airline a second extension because the recent airfare wars forced the carrier to cut prices and had a detrimental effect on the industry. Continental filed for protection in December 1990. DUTIES MAY HIT CANADA'S LUMBER: Lumber from Canada may be hit with duties following a ruling by the International Trade Commission. The ITC Thursday ruled that subsidized softwood imports from Canada are injuring U.S. lumber producers because they are selling at lower than fair prices. Canada says it will appeal the ruling. The case now goes to a dispute panel formed under the Canada-USA free trade agreement. MICROSOFT FILES SUIT: Microsoft Corp. said Thursday it has terminated its licensing agreement with Z-Nix Computer Inc. and brought suit against Z-Nix and three of its distributors. In papers filed in the U.S. District Court in Los Angeles, Microsoft says it is suing Z-Nix for copyright and trademark infringement as well as breach of license agreement. BILL CUTS FOREIGN AD FUNDS: The House Appropriations Committee Thursday approved a bill which cuts funding from an Agriculture Department program that subsidizes foreign advertising. The full House Tuesday will take up the bill which cuts funding for the program from $200 million to $75 million. The program was designed to help farmers move into overseas markets, but has aided large firms such as McDondald's. STATE BLAMED FOR BRIDGE DEFECTS: A jury in Thurston County (Wash.) Thursday awarded contractor Kiewit Grice Joint Venture $1.5 million. The jury ruled that the Washington State Department of Transportation was to blame for a series of defective bridge pontoons for the new Interstate 90 floating bridge. The department provided defective specifications for the concrete used in the construction, said Kiewit's lawyer. CHANGE OF VENUE GRANTED: Federal Judge Gerars Goettel granted a change in venue Thursday for the Food and Drug Administration's case against Barr Laboratories, which may help Barr. Barr appealed to move the case from New York to New Jersey, where the company has a manufacturing plant. The FDA wants it shut down, but company officials said most violations are solved, Bloomberg Business News reported. BONDHOLDERS FILE FOR PROTECTION: A committee of bondholders filed a petition in U.S. Bankruptcy Court Thursday trying to force HomeFed Corp. into bankruptcy protection. The committee unsuccessfully tried to negotiate a debt restructuring with HomeFed. A lawyer for the bondholders said they wanted assurances from management that company funds wouldn't be "downstreamed" to the thrift, Bloomberg Business News reported. Business Law Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM