Herald and Review from Decatur, Illinois • Page 19

BUSIN Decatur. Illinois Herald Review Friday, September 3, 1999 2m MS HDD Analysts said the slowdown in productivity reflected the fact that the gross domestic product the total output of goods and services also slowed sharply to an annual rate of 1.8 percent in the second quarter of this year, compared to 4.3 percent in the first quarter. At the same time, unit labor costs, considered a key measure of whether the rate of rising labor costs could ignite inflation down the road, sprinted ahead at an annual rate of 4.5 percent in the second quarter. That was the largest increase since the first quarter of 1994 when they also rose 4.5 percent. when productivity rose at a rate of 0.4 percent.

The 0.6 percent rate was also far below the 3.6 percent rate in the first three months of the year. The revised second-quarter figure showed that productivity growth was even slower than the 1.3 percent growth rate the government initially estimated one month ago. U.S. manufacturers have been hard hit by a global financial crisis, which dampened overseas demand for U.S. goods and increased competition from a flood of cheaper imports.

The recovery of the manufacturing sector will power economic growth in the months ahead, economists said. that as fresh evidence of a resurgent manufacturing sector. Financial markets, already nervous about the August unemployment figures due out today, were rattled by the developments. A quarter-hour after the reports were issued the Dow Jones industrial average fell sharply. In afternoon trading the Dow was down more than 170 points.

The Labor Department reported that productivity the amount of output for each hour of work increased at an annual rate of 0.6 percent in the April-June quarter. That was the slowest quarterly increase since the second quarter of 1998, WASHINGTON (AP) Growth in the productivity of American workers slowed considerably in the spring, reflecting an easing in the overall pace of economic growth, even while the cost of their labor surged. The potentially troublesome developments, detailed in Labor Department reports released Thursday, could cause new interest rate anxiety. A third report, released by the Commerce Department, said orders to factories rose a strong 2.1 percent in July, the biggest increase this year, following a 0.8 percent gain in June. Economists lauded Football and Finance Bank allows Illini fans to tie money to team wins I I 7 yZ -4 ihhJ v- URBANA (AP) Would you tie your financial future to a football team that has won only five games the last three seasons? Urbana-based Busey Bank is offering the "Illini Fan CD" a certificate of deposit where the annual percentage yield climbs with each Illinois victory.

For the really optimistic fan, the CD adds more points to the rate if Illinois goes to the Rose Bowl something the Illini last did in 1984. If Illinois was to win all 11 games AND go to the Rose Bowl, the 10-month CD's yield would be 6.18 percent, as compared to its starting 5.70 percent annual percentage yield. "It may not go up," said Don Reineror, who drove 25 miles to buy an Illini Fan CD this week. "But if the team wins it has to go up. And the rate is higher than anyplace in town." Busey just started offering the CD for this season about two weeks ago, but this is the program's fifth year, said Cheryle Turner, the bank's marketing director.

Busey got the idea from a Wisconsin bank that tied its rate to the Green Bay Packers, and a spokeswoman with the American Bankers Association said she has heard of other banks that have used a similar idea. "The CD is very popular, but it is also very safe," ABA spokeswoman Janet Eissenstat said. "So how do you make it new and fresh? It's a bit of a challenge to take one of the most standard savings vehicles there is and make it a little sexy. "This actually probably makes savings fun," she said. But the CD's setup disturbs some opponents of gambling.

Tying an investment vehicle to a sports team's performance I Associated Press Sears' stock shares sag after shakeup CHICAGO (AP) Still unable to boost its sagging sales and profits, Sears, Roebuck Co. on Thursday warned that its third-quarter earnings would fall well below expectations and announced shakeup in its executive ranks. The news sent Sears' shares tumbling 12 percent, making it the biggest loser among the 30 stocks that are part of the Dow Jones industrial average. While most retail chains have enjoyed one of their best years in recent history thanks to the booming economy, Sears continues to struggle to get its business back on track. It continues to lose shoppers to the lower-priced discount chains such as Wal-Mart and specialty and department stores that offer trendy fashions.

"It's killer competition out there in the retail business," said Karen Sack, an analyst for Standard Poor's Equity Group. "They've got to do something; they're coming in with very weak sales numbers." Sears stock was down $4.31 7 to $32,877 in afternoon trading on the New York Stock Exchange. The news came barely two weeks after the Hoffman Estates, company outlined a new value-focused advertising campaign, with the tag: "The Good Life At A Great Price Guaranteed. Sears." The campaign was supposed to be the final piece in a series of changes the retailer announced early this year to turnaround its business, including a move toward more fashionable clothing, remodeling its stores and selling merchandise on the Internet. But sales at its department stores continue to be weak.

The company announced Thursday that sales at stores open at least a-year an industry gauge of performance rose a mere 0.1 percent in August. "It would appear the department stores need a lot of work," said Jeffrey Edelman, an analyst for Paine Webber. "They're going to have to devote whatever they can to the stores." Sears also said third-quarter earnings would be in the range of 63 cents to 67 cents per share, less than the 82 cents analysts expected. The retailer also said it is revising its full-year earnings outlook. A WIN-WIN SITUATION? Carolyn Quigley of Busey Bank in Urbana gives Don Reineror information about the bank's new Football Certificate of Deposit on Tuesday.

The interest offered on the CD is tied to how many wins the University of Illinois football team has for the current season. requires a minimum $2,500 deposit. Each time Illinois wins 0.03 percentage point is added to the rata A bowl bid bumps the yield up another 0.05, and a trip to the Rose Bowl adds another 0.10. The bank's current 6-month CD pays a 5.50 percent annual percentage yield, and the rate for the 1-year CD is 4.96 percent. Those CDs require only a minimum $1,000 deposit.

Busey also offers CDs with yields tied to football teams at several area high schools and at Illinois State University and Wesleyan University in OnBusiness Stoney's to reopen under new ownership STONEY'S RESTAURANT in Dalton City is reopening under new ownership. Tony Poole, a restaurant business veteran originally from southwest Missouri, says patrons can expect an entirely new menu focusing more on a family-style cuisine. "We'll have steaks, pasta, salads and some specialty dishes, but it won't be the white-linen Poole said. "The average check will probably be around $12." The restaurant, located at 120 Main closed in November 1997 after being operated by previous owners Dave and Cathy Brown for almost 21 years. In its heyday, the restaurant served 50,000 to 60,000 dinners a year, they said previously.

Poole, who was looking to own his own restaurant after years working in a chain establishment, recently bought the business. He is tentatively planning a Sept. 29 opening. The business also is taking reservations for large parties for the holidays. Call 874-2800 locally or 1-877-STONEY-l out of area.

COUNTRY SCHOOL Crafts, Antiques and Furniture is open at the former Union School, 5520 Union School Road. The business, owned by Charles and Twyla Whittington, offers handmade pine furniture, crafts and collectibles. It also sells antiques and collectibles on consignment. Charles Whittington builds most the pine furniture for sale on site and also uses old barn board in many of his works. Twyla Whittington handles the crafts and painting.

Twyla used to run New Beginnings Christian School at the site, which is also where the Whittington's have made their home for the past 10 years. She says the old country school atmosphere blends well with the business enterprise the couple have. "And we get a lot of people stopping by wanting to reminisce about attending school here years and years ago," she said. The business also offers a unique custom building service, she said. "If people are looking for something different in the way of furniture for their home, and they have measurements, my husband can make it," she said.

"He loves that challenge." Call 963-2973 for information or directions. BRENDA'S BEAUTY Salon has moved to 1473 W. King Fairview Plaza, with Gold-N-Tans. The businesses are separate but share the same roof. Owner Brenda Baldwin said been at a location on West Grand Avenue for 19 years.

She said the new location will keep her out of the way of any future development and construction planned for that area. Call 422-8911 for an appointment. MIKE PETERMAN, local Chem-Dry franchisee, is using a new hot carbonating extraction process for carpet cleaning. The patented process allows carbonated bubbles to exist in a 190-degree Fahrenheit solution. When two cleaning solutions are combined just before they hit the carpet fibers, they provide a powerful carbonating reaction.

The resulting bubbles lift dirt and stains and allow them to be vacuumed off the fibers. The efficiency of the bubbles allows Chem-Dry to use a fraction of the moisture used by traditional cleaning methods, Peterman said. To try the new process, call Peterman at 875-7570. THE MOUNT Zion Chamber of Commerce September After Hours is set for 5 p.m. to 7 p.m.

Sept. 21 at Big Daddy's Patio, 1047 Route 121. It will be hosted by Tropic Fever Tanning Salon. On Business, published Fridays in the Herald Review, highlights new business developments. Call Tim Crosby at 421-7974.

4' "But things like this or casino night at a high school prom are subtle and yet very real. They contribute to beating down any resistance to fully integrating gambling as a principle as American as mom and apple pie," he said. Turner and Eissenstat said the CD's flexible rate is perfectly acceptable to federal regulators. And both they and several other financial experts said the CD does not qualify as gambling because the rate cannot go down no matter how poorly Illinois might play. The 10-month Illini Fan CD is an example of how pervasive and acceptable gambling has become, said Anita Bedell, head of Illinois Churches in Action, a Springfield-based group that opposes gambling.

"At a time when betting on sports is increasing among high school and college students, that doesn't sound like the best type of promotion. It gives mixed messages to youth," she said. Tom Coates, who operates a hotline for problem gamblers in Iowa, called the Illini Fan CD "pretty minor-league stuff" when compared to riverboat casinos and state-run lotteries. oeing Machinists vote a resounding yes on contract Knight Ridder Newspapers from a company that hires workers fast during the good times, but lays them off quickly in the bad. For the first time in its 84-year history, Boeing has given an explicit pledge not to lay off Machinists when the work they are doing is shifted to outside companies.

The contract doesn't bar such "outsourcing" practices, but would guarantee jobs inside Boeing for displaced workers. BOEING Continued on C2 each of the first two years and 3 percent in the third year. Boeing will pay a ratification bonus equal to 10 percent of a union member's average wages, or $4,400 per worker. Members also won increases in pension benefits and staved off increases in health-insurance premiums. But more than higher wages or better benefits, the vote was about job security.

Security amid the job cuts that dropped 18,600 people from Boeing's Washington payroll in the past year. Security for people who have watched co-workers disappear when Boeing sent their work away to cheaper producers. And security It has been billed as the best contract in the aerospace industry. But for many of the Machinists who voted for it, their new labor contract is akin to a pledge of truce with Boeing. Members of Boeing's largest union Wednesday ratified the three-year contract 26,842 to 4,328, an 86 percent approval that belied how close they came to going on strike.

It was the most resounding passing margin since the Machinists ended their 1995 walk-out with an 87 percent vote on a renewed offer. Machinists won wage increases of 4 percent in III! Ill 14 1C2 DOW (Industrials) Chicago (AP) Futures trading on the Chicago 52-wk HI Lo Name 52-wk Hi Lo 52-wk Hi Lo Last Chg. Name i Chg. Name Last Chg. Mercantile Exchange: Open High Low Settte Chg.

Jwi CATTLE 40.000 cents per to. Oct 99 66.35 66.72 66.15 66.67 Dec 99 67.12 67.70 67.07 67.57 Feb 00 67.60 68.00 67.55 67.97 Apr 00 69-25 69.60 69 20 69.57 JunOO 66.97 67.50 66.97 67.47 Aug 00 67.40 .30 4.40 4.30 22 .50 4.40 Grain markets Decatur area prices supplied by ADM Growmark-Tabor Co. Com $1.91 Beans Wheal $1.94 Hogs Volume Top Peoria 750 $26.00 Interior .31,000 $25.00 Cattle volume Top Chicago (AP) Futures trading on the Chicago Board of Trade: Open High Low Settle Chg. WHEAT 5.000 bu rninrnum- cents per bushel Sep 99 266 271 263 270 4 Dec 99 284 287 280Vt 286'A 2 Mar 00 299 302'A 296 301 2'A May 00 307 311 306 311'A 3V4 Jul 00 315 319 313 319 3 Sep 00 324 327 324 327 3 Dec 00 334 336 334 336 2 Wed's sales 27.331 Wed's open 129.097. up 4212 CORN 5,000 bu minimum- cents per bushel Sep 99 207 209 206 208 1VH Wed's sales 1253 Wed open 108.806.

up 41656 FEEDER CATTLE 50,000 cents per 78.25 78.60 7820 78.42 Index Name Peoria na na Close Chg. Dow Jones Industrialsl 0843.21 4.20 4.10 4.10 .27 20 35 420 78.75 79.12 79.50 79.85 80.00 80.37 79.65 79.95 79.45 80.00 79.40 80.05 80.45 80.00 80.00 Sep 99 Oct 99 Nov 99 Jan 00 Mar 00 Apr 00 May 00 35 7 McLeod 30tytt25Vt 87 60 Merck 68V4 10235 MerrLyn 10043 MicrosftsgitVie-ie 2816Vw MillertChm 23 100 68MMM 96V4-1 10921271 Mobil 100-1V 63 33 Monsanto 40 Vift-1 1161636 MSDWit 8816 1 00 38 Motorola 90 -1 37 26 NattCrty s27Vie 56 V4 17 Navistar 48t-1 36725 NorflkSo 26 7047yi6 PPG 621 56 35 Penney 367-1" 42 28 PepsiCo 33 Vie 50 28 Pfizer 38 59 33 Vie PhilMor 36 103'Vi665ProctG 100 59 1636 SBC Com47tV-1'V 39 16 Saks 16V-Vie 53Vw36VSears Mte-S11 56 18 Tandy 45-27ie 70 V44 Texaco 63 7w 10540V4 Tycolnt 100 -1 87 55V4 UAL 64 1 A 42Vie33 Unicom 38 -Vie 51 7w 40 UPlntr 42V 46Vie18 Unisys 44 4-1 53 26V4 WalMarts451Vie1Vie SS'VwWalgrn 23 27Vi157ie WallCS 21ie-Vie 78744016 Whrlpl 71tV-1 78.85 79.55 80.00 79.65 79.55 79.30 1 1 1 4 4 Dec 99 221 222 220V4 222 Mar 00 231 233 231 'A 233 May 00 237V 238 236 238 Jul 00 241 242 240'A 241 Sep 00 244 244 243 243 Dec 00 249 250 248 249 'In those early days, Len Kleinrock and his colleagues couldn't possibly have foreseen that they were on the ground floor of one of the most life-altering innovations of this century. UCLA Chancellor Albert Camesale, cn the inventor of the Internet on its 33-year anniversary. 75 745 AMR 56 -2VS 64' 35 8 47 53 39 AbtLab 43 -Va 14 7Airgas 12 6' 2 Atom 4V 48 32VIB Allstate 31Bw -36 44V35tyAnefen 40'A 70V 41 7VM 43 Ameritch 62-2Vw 811Vw50Anheus 77V V4 68 18 28 V2 AppleC 70 161 34V167feApplebee 31 1812l2VieArchOan 12 45 25AsdBnc 35V4 95V 52 AtlRich 87 -1 37V20V2 AutoZone23'Vw-Vw 122V78 BPAmocoHI Vn-2V 63 1636 BankOne38 -1 76 56 Baxter 6VM-V 8OV2 16 BestBuy 61 7-10VS 58tV43VBestfds 2617BobEvn 20V2 28V13VCBRLGrp 13 50' 18 CBS 47'A -46 60V38VieCNB Best) 55 -2 34 18CPI 32'Vw 53 'Vis 36 CSX 44Vw 31 'Vi19i Cabot 23VV 19'Vi6l4CartWal 17Vi6 16 12VCaseys 13V 667w39VCaterpillr 58 W'VwTS1 Chevron 92 -V 65 49VieCilcorp 64 51 19 Cifigrp8 43'Vie-1Vi8 75753CocaCI 59 -V2 21 'Vwl 2V4 ConsPdts $1 4V4 -'A 75 24V4 Comingln 66 32 21 Crane 24 10871 DaimlrC 75-'Vie 54 28 Deere 39V4 -3 Disney 27 Vw 441630 DonlleyRR 30-1 1 38 74' Vie DowCh 1 1 5 1 iTtyeSOV9 DuPont 64'V -'w 4V 1 EglFd 2 -Vie 77 28V4 EqtCos 61'A-2Vie 87V464V Exxon 77-yi 12 26 13FamDlr 19 60 1620 Fasten! 50 7V 3 Fedders 67ie -V 42V434ie FMkJBc 39-Ke 6738yi6 FordMot50'V-1Vie 7846'w GTE 695-" 1 20 69 GenElecl 1 2Vie 78 38GnMotr 65-1Vie 28 Goodrch 37ie 6645 7ie Goodyear57 7ie 50Vi627 Hanson 424-Vie-1187e47VHewlettPlc104'Vt -V 69i631HomeDp 61 -Vt 27V15'Vi6lMCGl0 16V 16 6 lkonOffSol12 33 20 Hlinova 32 73ie 34 IngerRd 61 Vie -1 85 34 Intel 85 4-1 17 9 IntmetC Hw 139V58IBMs 125 -1 5939lntPap 49 18 10 Kmart 12-V 811A34V Kohls 73 34 22 Kroger s'Vw 4-Vie 31 21 Vw LeeEnt 28 -Vie 5714 33LincNats 46 66 7i623 Lowes 44 7ie-1Vie 79 26 Lucent 64 20V10VieMYR 19V 47726 McDnk)ss40 V4 79.90 79 JO 7965 109.80 2,547 17,737, up 4 743 Wed's sales Wed's open int NYSE Composite Amex Index NASD Composite NMS Composite Value Line Arithmetic Value Line Geometric Wilshire 5000 611.33 77921 273424 1242.96 1319.11 988.08 432.53 12019.23 Spot commodity prices: Prev. Year Close Day Ago Akiminurn 66.9 66.9 64.0 Copper 83.00 82.00 79.0 Gold $25420 254.70 279.15 Silver $5205 5.180 4.980 Wed's sales 56,150 Wad's open int 290,348, down -1536 OATS 5,000 bu minirnurn- cents per bushel Sep 99 108 109 107 107 -Vfe HOGS-Lean 40,000 cents per 47.05 47.10 46.30 47.05 Dec 99 116 117 116 116V4 Mar 00 123 124 123 123 May 00 129 129 128 128 -V4 .18 25 12 27 J3T Oct 99 Dec 99 Feb 00 Apr 00 JunOO Jul 00 Aug 00 43.55 44.17 46.40 46.67 4720 4757 5525 55.77 54.60 54.80 53.75 54.00 44.30 47.00 47.90 55.80 54.90 54.07 44.00 46.85 47.40 65.55 54.85 53.75 28 Key barometers in the Treasury market: Yield Prev.

Wed's sales Wed's sales 1234 Wed's open Int 10.146, down -164 SOYBEANS 5,000 bu rnirurnum- cents per bushel Sep 99 484 491 480 489VH 5V Nov 99 488 496 485 495 6 Jan 00 498 505 495 503 46 Mar 00 504 512 503 510 6VH May 00 509 517 509 515 5V 8,796 51 .342, up 1532 Wed's open int Spot commodity prices Prev. Close Day Saudi Arabian Hght 19.02 19.46 North Sea Brent 20.62 20.96 West Texas 21.48 22.08 Alaska-West Coast 20.45 2034 5.3125 5.3125 4.78 4.92 5.19 5.20 6.06 5.80 6.13 5.90 Federal Funds 3-month bill 1 -year bid 10-year rate 30-year bond PORK BELLIES 40,000 cents per Feb 00 59.40 59.40 56.60 57.32 Mar 00 58.50 58.50 57.40 57.70 May 00 59.00 59.00 5820 58.90 -230 Wed's sales 664 WetfsopenM 2.328,up79 Jul 00 516 522 513 520 6 515 620 515 518V 6V Aug 00 Wed's sales 36376 fOOTWTESi'iNew 52-week UrM. dd loss last 12 mos Now issue ft past 2 weefe. Wed open Int 129.170, up 397 preferred. SpBt or stock divkiand of 25 parcent or more In past 52 weeks, New 52-wwK high.

Roger Tice Frances Williams Rork Williams William Modlin KitPaulin Mark Reynolds Gerald Sheehan Michael Sheehan Bart Idle William Krueger Joseph Meyers Ronald Miller Vickie Miller Gregory Bafford Thomas Caufield Barry Denny Terri Fisher George Hubbard AGEdwards Inc. sS INVESTMENTS SINCE 1887 2884 N. Monroe Decatur, IL 62526 (217) 876-8500 800-388-1808 IM-39-0297-EDE.