Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law,americast.usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Mon, Oct 5 1992 Date: Mon, 5 Oct 92 04:46:08 EDT Message-ID: 10-05 0000 DECISIONLINE: Business Law USA TODAY Update Oct. 5, 1992 Source: USA TODAY:Gannett National Information Network USAIR NEGOTIATIONS CONTINUE: Negotiations between USAir and its machinists union intensified Sunday as the two sides tried to head off a strike set for Monday. USAir Chairman Seth Schofield joined the talks Sunday - a sign that bargaining was at a crucial stage. Last week, the International Association of Machinists overwhelmingly rejected USAir's offer and authorized a walkout, to begin at 7 a.m. ET. CABLE BILL FACES SHOWDOWN: Congress heads to a showdown Monday with President Bush, hoping to break his veto streak with a pocketbook issue - cutting cable TV rates. The cable TV bill is congressional Democrats' best shot at breaking Bush's string of 36 vetos. A defeat now could embarrass him a month before the election. Bush is gambling he can convince voters the bill was misguided. HOUSE PASSES REGULATORY BILL: The House Saturday passed a compromise bill to regulate government-sponsored enterprises Freddie Mac and Fannie Mae. Both organizations buy residential mortgages from banks, thrifts and other originators, adding to the amount of money that institutions can lend to homebuyers. The House bill sets capital standards and establishes an independent regulator. FREDDIE BILL SETS TARGETS: A House bill passed Saturday sets goals and targets for purchases of low- and moderate-income mortgages by Fannie Mae and Freddie Mac. The Senate will likely consider the bill early next week. The Bush administration and both Fannie Mae and Freddie Mac support the bill. Fannie and Freddie are government-chartered and stockholder-owned. BELL WANTS TO HIKE CALL PRICE: Illinois Bell Telephone Friday asked for regulatory approval from the Illinois Commerce Commission to raise the price of a pay phone call to 30 cents. The increase would help pay $34 million in court-ordered refunds and would be temporary. GROUP FORMS OWN ARM: A group of coal companies has formed a bargaining arm to begin contract negotiations Monday with the United Mine Workers of America. The Bituminous Coal Operators Association has negotiated labor contracts since 1950, but the newly formed Independent Bituminous Coal Bargaining Alliance said Friday it would work out its own agreement. TUCSON TRIES RESTRUCTURING: Tucson Electric Company said Friday it would ask shareholders to approve reclassification of its stock at a special meeting Nov. 17. Common and preferred shareholders will be asked to approve the reclassification of the company's outstanding preferred stock into about 54.6 million shares of common stock. The reclassification is part of the company's restructuring plan. GENERAL DYNAMICS SUIT DISMISSED: A federal judge Friday dismissed a $300 million federal government lawsuit filed in 1985 against General Dynamics Corp. The government said the defense contactor gave false estimates of costs for ship construction in the 1970s for federal shipbuilding subsidies. The judge said that while General Dynamics raised estimates, there was no evidence of fraud. NOT ENOUGH EVIDENCE SHOWN: A federal judge Friday cited lack of evidence in dismissing a federal government suit against General Dynamics over shipbuilding. Between 1972 and 1977, GD's Quincy Shipyard Division applied for and received Construction Differential Subsidies from the U.S. Maritime Administration to support its construction of liquid natural gas carriers. The government said QSD inflated costs. DOW CORNING SUED: Dow Corning Corp. was hit Friday with two new product liability lawsuits over its silicone gel breast implants. One suit asks for $30 million for a Boston woman; the other seeks $10.5 million for a New Jersey couple. Dow Corning has been named in more than 1,300 individual suits and 33 class action suits. INSURANCE RULES REVISED: A top official of the Securities and Exchange Commission said Friday that the SEC is requiring insurance companies to revise the methods they use to value their investments in debt securities. That policy already is applied to several leading banks. The SEC hopes the requirement will give investors a clearer picture of how healthy an insurer is. BOEING CONTRACT APPROVED: Boeing Co. machinists Friday approved a three-year contract that calls for a lump-sum payment of 12% of a worker's pay this year. The contract also calls for pay raises of 3.5% in 1993 and 1994. The union had been prepared to strike Sunday if members rejected the agreement and voted for a walkout. The previous contract expired Saturday. GROUP REQUESTS AUDIT: A citizens taxpayer organization has asked the state of California to conduct an audit to probe reports of fraud and welfare abuse in San Diego County's Department of Social Services. A San Diego grand jury probe, initiated at the group's request, has found that 20% to 30% of welfare cases involve regular overpayments. AMERIWOOD RECEIVES BUY OFFER: Ameriwood Industries International Corporation said Friday its board of directors has received an unsolicited and highly conditional proposal to acquire Ameriwood. The proposal was received from Vicente Management Co. of Los Angeles on behalf of the Willametta K. Day Trust, an existing shareholder of Ameriwood. The Trust owns 16% of Ameriwood's Common Stock. Business Law Editor: Beth Mann. (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