Projo 7 to 7 News Blog

TOPEKA, Kan. -- Recent computer blunders in the Kansas Lottery Pick 3 game could cost international gaming giant GTECH a contract to run the games at the four state-owned and -operated casinos.

The Providence-based firm manages state lottery and casino data systems for gambling jurisdictions worldwide, including Kansas. In April, the firm was tentatively awarded the state's casino data systems contract.

But Ed Van Petten, executive director of the Kansas Lottery, said that final contract negotiations with GTECH were now "at a standstill."

"We are not going to move forward until they can establish some degree of credibility," he told The Kansas City Star yesterday.

GTECH spokesman Bob Vincent acknowledged the casino contract issue.

"We believe we will shortly resolve these issues that have come up with Pick 3," he said.

"We are very confident we can do that to the satisfaction of the Lottery and renew our discussions with the Lottery about the gaming contract," Vincent said.

A law enacted last year allows for state-owned and -operated resort casinos in Cherokee, Ford, Sumner and Wyandotte counties to be managed by casino companies. The Lottery would own the games.

As for the Pick 3 problem, "it was a software glitch that happened," Vincent said. "It should have been caught, and it shouldn't have happened."

Lottery officials last week disclosed that GTECH's systems reported the wrong winning numbers in the state's daily Pick 3 drawings on June 29, June 30 and July 1. Officials feared many genuine winning tickets were discarded before the errors were discovered July 2.

-- The Associated Press

Continue reading "GTECH could lose Kansas contract over lottery blunder" »

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The U.S. Department of Commerce today upheld a decision by Massachusetts regulators to deny approval for the liquefied natural gas terminal planned by Weaver's Cove Energy LLC in Fall River.

The decision is another blow for company, which has been battling widespread public opposition to the LNG plan, as well as series of unfavorable decisions by state regulators and federal agencies.

Today's decision was issued by the Commerce Department's National Oceanic and Atmospheric Admistration.

Weaver's Cove had asked the department to overturn a decision by the Massachusetts Office of Coastal Zone Management that determined that the project was not consistent with the state's coastal management plan.

Continue reading "Feds uphold Mass. denial of Fall River LNG terminal" »

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The tribe that owns the Foxwoods Resort Casino says nearly 200 employees have been laid off.

A spokeswoman for the Mashantucket Pequots says the layoffs of middle managers and some hourly employees are part of what she calls a strategic organizational review process begun in January.

"[Layoffs] are scattered across departments," said Lori Potter, the Mashantucket spokeswoman.

The job cuts are believed to be the first in the casino's 16-year history and follow a similar layoff last month in the tribal government's workforce.

The workers let go yesterday will get two weeks severance pay for each year they were employed up to 13 years as well as health benefits, she said.

Foxwoods employs about 10,000 people at its casinos, including 1,747 at the newly opened MGM Grand.

This week's job cuts do not affect MGM Grand, the $700-million hotel and casino wing opened last month, Potter said.

The addition helped Foxwoods reverse an eight-month decline in slot machine revenues. Foxwoods saw a nearly 8-percent increase in its slot win compared with May of last year. Nearby rival Mohegan Sun also eked out an increase as slot win crept up two-tenths of a percent. Slot win is the money left after the machines pay out any winnings to bettors.

The casino industry, like many other employment sectors, is being hurt by a shaky national economy. Spiking fuel prices and plummeting home values are making many Americans cautious about spending.

Figures from the 12 states where commercial casinos are legal show revenue at gambling halls in those states dropped 1.3 percent, combined, in the three months ending Jan. 31, compared with the same period a year ago, according to the American Gaming Association.

-- Journal staff writer Paul Grimaldi

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WEST WARWICK -- Cox Communications is raising cable television rates in Rhode Island, blaming rising energy costs.

Customers with the least expensive basic services or digital service will generally take the biggest hit.

Cox says its standard cable service rate will rise 7 percent in August, to $48.99 per month.

The price of limited basic service is rising as much as 26 percent, to $12.99, in communities like Cranston and Johnston. In Providence, the increase is 15 percent. Fees for digital service will rise 16 to 20 percent, depending on the package.

The company isn't raising rates on packages that bundle cable with Internet or phone services.

Cox says high energy prices have pushed costs higher, and it can't afford to absorb the increases. It says digital prices are going up because of rising programming costs.

-- The Associated Press

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The Beacon Mutual Insurance Co. said today it will lower its workers' compensation rates by an average of 7.2 percent as of Oct. 1.

The new rate will apply to new policies or those that are renewed, the company said in a news release. The reduction will save policyholders about $10 million, according to Beacon.

“Reductions in claim frequency and the efficient management of claim costs continue to be the drivers for rate decreases,” said James V. Rosati, Beacon’s president and chief executive officer. Rosati credited the company’s loss prevention and claims management programs for helping to reduce costs.

Beacon Mutual, a mutual insurance company, is the largest writer of workers' compensation insurance and the largest writer of commercial property casualty policies in Rhode Island.

The company is the state’s dominant workers’ compensation insurance carrier, with an estimated 14,000 policyholders. The company said it is financially secure with over $450 million in assets.

In April, Beacon announced it had distributed $5.6 million in refunds to about 9,400 policyholders as part of a consent order it signed with state regulators last July.

-- Journal staff writer Timothy C. Barmann

Continue reading "Beacon Mutual to lower workers' comp policy rates" »

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Officials in Rhode Island and Massachusetts told federal regulators this afternoon that they oppose a five-year extension sought by the company that wants to build a liquefied natural gas terminal in Fall River, Mass.

With time running out, Weaver’s Cove Energy has asked federal regulators to extend its permit to build an LNG terminal by an additional five years.

The company is facing a July 2010 deadline to complete the project. In 2005, the Federal Energy Regulatory Commission gave Weaver’s Cove conditional permit to build the terminal. That permit was good for five years.

In the three years since that permit was issued, Weaver’s Cove has not begun any construction. It is still awaiting a number of approvals from various federal and state agencies before any work can begin.

Weaver’s Cove and Mill River Pipeline LLC, the company that would build the pipeline for the project, filed a joint request with FERC on Tuesday asking for an extension until Nov. 1, 2015.

-- Journal staff writer Timothy C. Barmann

Continue reading "R.I. AG, Fall River oppose extension for Weaver's Cove" »

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Providence-based LIN TV Corp., owner of WPRI-Channel 12, has signed an agreement with DIRECTTV Inc. for the retransmission of LIN's broadcast stations signal by the satellite television provider.

Terms were not disclosed.

LIN TV operates 29 television stations in 17 U.S. markets.

-- Journal Business editor John Kostrzewa

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The average price of gasoline has increased for the 11th straight week, hitting $4.079 per gallon for regular, unleaded at self-service pumps in Rhode Island, according to AAA Southern New England's most recent survey.

That's six cents more than last week.

Nationally, the average price hit $4 per gallon this weekend for the first time ever.

Rhode Island drivers are now paying $1.07 more per gallon for gasoline than they were at this time last year, according to AAA's most recent survey.

Find the most up-to-date local gas prices with the AAA Fuel Finder by logging onto AAA.com and clicking on Gas Saving Tips & Tools. AAA members can also obtain a copy of the Gas Watcher’s Guide at their local AAA Southern New England office.

Here's AAA's fuel saving tip of the week: Use the air conditioner conservatively. Most air conditioners have an “economy” or “recirculation” setting that reduces the amount of hot outside air that must be chilled. Both settings can reduce the air-conditioning load – and save gas.

Here are some links that could help you save:

Find cheaper gas near you

RIPTA's carpool tool

Increase your gas mileage

Calculate your fuel costs

AAA daily fuel gauge report for Providence metro area

Posted by Jack Perry at 10:23 AM | Permalink | Comments (1)

Rhode Islanders who can't find a job in their home state may have better luck in nearby Boston.

The Boston metro area is ranked as having the fourth-highest job growth nationally, tied with Washington, D.C., according to a report released today by the federal Department of Labor Statistics.

In April, jobs in the Boston metro area rose by 24,400 from the same month last year, a one-percent increase, the data shows.

Nationally, job growth was slower at 0.3 percent.

In the Boston area, education and health services in April gained 11,400 jobs compared to April of last year, the highest growth rate of any sector, the agency reported. Education and health services accounted for nearly half of the total job gains recorded in the Boston area. The second largest job growth sector during the period was professional and business services, which added 6,900 jobs.

Rhode Island last month shed another 700 jobs, the fourth consecutive monthly decline, and the state unemployment rate remained unchanged at 6.1 percent, a government jobs report released today shows.

During the first four months of this year, Rhode Island has lost lost 6,300 jobs, and its payroll employment has fallen to its lowest level since June 2003, according to the state Department of Labor and Training.

-- Journal staff writer Lynn Arditi

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The establishment of the Randolph Savings Peter T. Pastore Jr. Charitable Foundation was announced this morning in honor of Peter T. Pastore Jr., former executive vice president of the bank, who passed away in 2006.

The foundation will provide financial support to deserving charitable and nonprofit organizations in communities served by Randolph Savings Bank.

“We believe this is a fitting way to honor the memory of Peter Pastore, who truly personified the ideal of giving back to the community,” said Thomas H. Drummey, executive vice president and chief operating officer.

Any not-for-profit charitable organization or municipal entity in the Randolph Savings Bank communities in Massachusetts and Rhode Island is eligible to apply for funding.

In Rhode Island, that includes Coventry, Cranston, East Greenwich, Warwick and West Greenwich. Organizations interested in applying for foundation support can find guidelines and an application online.

-- Journal business editor John Kostrzewa

Continue reading "Foundation set up to honor Peter T. Pastore Jr." »

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Gasoline prices increased another 16 cents in Rhode Island last week, leaving the average price for self-serve regular just a few cents under the $4 mark, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $3.969 at the self-service pump, according to AAA's weekly survey.

The price has climbed 38 cents over the past four weeks.

A year ago at this time Rhode Islanders were paying $3.089.

Rhode Island drivers are paying 3 cents more per gallon than the national average.

Drivers of cars and trucks that use diesel fuel are feeling even more pain. Diesel has jumped another 22 cents to $4.89 per gallon.

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For the second week in a row, gas prices in Rhode Island increased another 10 cents per gallon, according to AAA Southern New England.

And it's yet another week of breaking the record for highest gas prices ever.

This time, te average price for a gallon of regular, unleaded gasoline is $3.809 at the self-service pump, according to AAA’s weekly survey.

The price has increased 67 cents since the start of the year. Rhode Island is one cent above the national average.

Special report: How increasing fuel prices are affecting our daily lives.

Posted by Jack Perry at 10:50 AM | Permalink | Comments (4)

If you were among those waiting at the gas pumps yesterday, this won't come as a surprise.

Gas prices in Rhode Island have increased another 10 cents in the past week to reach another record high, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $3.709 at the self-service pump, according to AAA's weekly survey.

That's 57 cents more than drivers were paying at the beginning of the year.

Another survey, by the Rhode Island Office of Energy Recourses, had the average price at $3.739 per gallon, a 13-cent increase over the price their survey found last week.

Diesel fuel drivers are paying even more, an average of $4.46 per gallon, according to AAA.

The Rhode Island Office of Energy Resources' survey found diesel selling for $4.539 a gallon.

The price of home heating oil averaged $4.309 a gallon, up 32 cents a gallon, The Rhode Island Office of Energy Resources. The prices in the state survey ranged from $4.549 a gallon to $4.059 a gallon.

Special report: How increasing fuel prices are affecting our daily lives.

Posted by Jack Perry at 10:13 AM | Permalink | Comments (7)

PROVIDENCE — Opening statements are scheduled today in the federal corruption trial of two former CVS executives accused of bribing a Rhode Island state senator.

John R. Kramer, 75, and Carlos Ortiz, 64, are charged with bribery and conspiracy to deprive Rhode Islanders of the honest services of a public official, former Sen. John A. Celona, of North Providence.

Last week, the prosecution and the defense chose a jury of 12 members, plus four alternates, to hear evidence in the trial, which is expected to last four weeks.

Chief U.S. District Judge Mary M. Lisi has scheduled testimony from 9 a.m. to 1 p.m. at the downtown federal courthouse in Providence, leaving the afternoons free for any issues that the lawyers need to argue outside the presence of the jury.

Read a special report on Operation Dollar bill.

-- Journal staff writer Mike Stanton

Continue reading "Trial to start for former CVS executives" »

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PROVIDENCE -- From expert advice on decorating your home office to dining etiquette for the busy professional to fine tuning your résumé, several free seminars will be conducted today at The Providence Journal’s booth (#617) at the Business Expo, the Rhode Island Convention Center, downtown Providence.

11:30 a.m., Decorating Your Home Office from A-Z: Find out how to set up a home office that works for you.

1:00 p.m., Dining 101: Etiquette for Busy Professionals: Learn the proper dining etiquette for business luncheons and dinners

2:00 p.m., Tips and Tricks to Fine Tune Your Résumé: Transform your résumé with expert advice

The projo’s booth also features giveaways valued at $100 after each seminar, and an opportunity to enter a random drawing for a framed, keepsake projoSports poster signed by the projoSports writers and photographers who covered the Red Sox 2007 Banner year. For more information, go online to projo.com/businessexpo.

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PROVIDENCE -- Free, expert business advice. That’s what you’ll get when you visit The Providence Journal’s booth at this year’s Business Expo, today and tomorrow, at the Rhode Island Convention Center, downtown Providence.

From how to finance a small business to taking great pictures with your digital camera, you’ll find a wide assortment of informative and engaging seminars at the projo’s booth – right on the Business Expo show floor.

Here's what's on tap today.

12:30 p.m., How to Finance Your Small Business: Expert advice on funding your business

2:00 p.m., Taking Great Pictures With Your Digital Camera: Learn to shoot better business photos with help from a veteran photo editor.

The projo’s booth also features giveaways valued at $100 after each seminar, and an opportunity to enter a random drawing for a framed, keepsake projoSports poster signed by the projo sports writers and photographers who covered the Red Sox 2007 Banner year.. Stop by

The Providence Journal booth (#617) and get in on the action. For more information, go online to projo.com/businessexpo.

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Law firm Tillinghast Licht, with roots dating to 1818, announced today that it will wind down business in the next few months, with six key lawyers joining Adler Pollock & Sheehan on May 19.

"The decision to close the firm stems in large part from the fact that in recent years the firm has become somewhat smaller, and the partners believe its current size could impact its ability to remain a full-service law firm," the firm said in a statement today.

The Tillinghast Licht lawyers joining Adler Pollock & Sheehan include former Lt. Gov. Richard A. Licht and former House Speaker Joseph DeAngelis, Adler Pollock & Sheehan said in a statement.

Other Tillinghast Licht lawyers will join other firms or set up their own offices to concentrate on their specialties, the Tillinghast Licht statement said.

-- Journal staff writer Paul Edward Parker

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WASHINGTON -- President Bush said tax rebates will start going out Monday, earlier than previously announced, and should help Americans cope with rising gasoline and food prices, as well as aid a slumping economy.

Democrats said they were glad the rebate checks were about to go out, but suggested that multinational oil companies were not among the businesses the stimulus package was originally designed to help.

"Starting Monday, the effects of the stimulus will begin to reach millions of households across our country," Bush said today in remarks on the South Lawn of the White House.

Those first rebates will be directly deposited into people's bank accounts. The Internal Revenue Service had been saying direct deposits wouldn't start until next Friday. Bush said paper checks would begin going out on May 9, a week earlier than previously announced.

"The money is going to help Americans offset the high prices we're seeing at the gas pump, the grocery store, and also give our economy a boost to help us pull out of this economic slowdown," Bush said.

Bush's emphasis on fuel and food prices differed from other comments he's made since signing the economic stimulus legislation, intended to aid the economy by boosting overall consumer spending - which accounts for roughly two-thirds of the nation's economic activity.

Bush has suggested the rebates could trigger a spending spree. "When the money reaches the American people, we expect they will use it to boost consumer spending," he said last month.

By saying expressly that people could use these one-time checks to pay for such necessities as food and gas, Bush underscored the deepening challenges facing the economy.

-- The Associated Press

Continue reading "Tax rebates will start Monday, earlier than announced" »

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Journal photo/Steve Szydlowski
Construction continues at the the Hampton Inn & Suites.

A steel beam will be raised to the top of the building marking the end of the steel construction phase and the beginning of the interior work in the hotel.

The site of the former St. Francis Chapel, and the original home of Old Colony Bank, the historic building is located at 58 Weybosset St. in the heart of the financial district. When completed in December, the Hampton Inn & Suites will offer 110 hotel rooms. The project is joint venture between First Bristol Corporation and Granoff Associates and was designed by Newport Collaborative Architects.

-- Journal Business Editor John Kostrzewa

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BOSTON -- EMC Corp.'s first-quarter profit dipped 14 percent on acquisition-related charges, but the data storage vendor managed to post a double-digit revenue gain amid a slow U.S. economy, beating Wall Street expectations.

Its shares rose more than 5 percent on premarket trading.

Hopkinton, Mass.-based EMC said today that net income fell to $268.8 million, or 13 cents per share in the three months ended March 31. That's down from $312.6 million, or 15 cents per share, in the same period a year ago.

The latest quarter's performance was hurt by a $79 million non-cash charge to write off research and development operations from recent acquisitions. Without that charge and other one-time items including employee stock options costs, EMC's profit was $477.3 million, or 23 cents per share.

Revenue rose 17 percent to $3.47 billion, beating the $3.45 billion consensus estimate of analysts surveyed by Thomson Financial.

Despite a lagging U.S. economy that threatens to slow technology spending, EMC posted 14 percent revenue growth in North America, which accounted for 57 percent of total company revenue. Overseas, where EMC has consistently posted stronger growth, the revenue gain was 21 percent.

-- The Associated Press

Continue reading "EMC 1Q profit dips 14 percent, revenue up 17 percent" »

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Journal photo / Bob Thayer
At Berretto's Service in Bristol, owner Joseph A. Berretto says he does not know where the price will end. "No matter how high the price goes, dealers like me make just a few pennies per gallon sold," he says. He keeps the prices as low as he can to make enough profit to stay in business. "People are coming in and buying gas with handfuls of pennies and nickles -- it's getting very bad." In the background, on the East Bay Bike Path, another mode of transportation is in use.

Gasoline prices jumped 19 cents in the past week and have hit an all-time high in Rhode Island, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $3.439 at the self-service pump, breaking last week's "short-lived" record of $3.24, according to AAA's weekly survey.

Rhode Islanders were paying $2.819 at this time last year.

Diesel jumped another 11 cents in the last seven days to $4.37.

Still, Rhode Islanders are paying 7 cents less than the national average. The price jumped to an average $3.50 a gallon at filling stations across the country.

Crude oil, meanwhile, set a new record of its own, spiking after an attack on a Japanese oil tanker in the Middle East to close above $117 a barrel for the first time.

"It's killing us," said Jean Beuns, a cab driver in New York who estimated he is making $125 to $150 a month less than in the fall because of costlier fuel. "And it was so quick. Every day you see the price go up 5, 6, 10 cents more."

Diesel prices at the pump also struck a record high, of $4.20 a gallon, according to AAA and the Oil Price Information Service, putting pressure on truckers and other shippers who rely on the fuel to transport goods to market.

Prices are expected to keep climbing as they trace the path of crude, which has surged to new records for six trading sessions in a row. Oil prices are rising along with a host of commodities, from corn and wheat to gold and platinum, that are enticing speculators seeking hedges against a weakening dollar.

Video: What's behind the gas crunch nationwide

-- With projo.com and Associated Press reports

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PAWTUCKET -- Toymaker Hasbro Inc.'s earnings rose 14 percent in the first quarter of 2008 on growth in brands such as Transformers and Littlest Pet Shop.

The world's second biggest toy company said today that its profit rose to $37.5 million, or 25 cents per share, for the three months ended March 30 from $32.9 million, or 19 cents per share, during the same quarter a year ago.

The results beat the expectations of analysts polled by Thomson Financial, who had predicted net income of 14 cents per share.

Sales grew 13 percent to $704.2 million from $625.3 million a year ago.

The company said international revenue rose 22 percent to $248.3 million, while revenue in the U.S. and Canada segment grew 6 percent to $428.5 million.

-- The Associated Press

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The Rhode Island Airport Corporation will receive $5 million from the Federal Aviation Administration to acquire 21 houses in the voluntary house acquisition program located near T.F. Green Airport.

“This program continues to provide an alternative for families around T.F. Green Airport who have been forced to cope with airport noise,” said U.S. Sen. Jack Reed, D-R.I., who announced the award this morning. Reed is a member of the Senate Appropriations Committee which oversees federal funding for the program.

Kevin Dillon, president and chief executive officer of the Rhode Island Airport Corporation said, “We are appreciative of the efforts of Senator Reed and the members of our congressional delegation to obtain federal funding for important airport projects. This $5 million allocated to the important voluntary home acquisition program will accelerate the buyout of additional homes in Warwick.”

Reed has brought FAA officials to Rhode Island in the past to show them the airport’s growth and the related growing pains that expansion has had on the local community, especially in terms of greater aircraft noise.

Reed also has urged the FAA to carefully study the increased airport traffic to determine what additional steps would be needed to abate airport noise and secured a commitment to increase the amount FAA funds for soundproofing at T.F. Green.

-- Journal Business editor John Kostrzewa

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BOSTON — A Marlborough, Mass.-based company that makes solar panels plans to double the size of a manufacturing facility being built at the former Fort Devens.

Evergreen Solar also was announcing today it plans to more than triple its 300-person workforce to 1,000 workers.

Gov. Deval Patrick and company Chief Executive Officer Richard Feldt were announcing the expansion during a news conference at Deer Island. The Massachusetts Water Resources Authority water treatment plant there uses Evergreen solar panels, and the facility will soon add two 190-foot wind turbines.

The conservation steps are expected to save the authority about $120,000 on its $12.5 million annual electric bill.

Feldt credits Patrick’s emphasis on solar energy as the reason the company is expanding in Massachusetts.

-- The Associated Press

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Pawtucket-based Hasbro Inc. won approval from Greece's archaeological council to use images of the Acropolis on Monopoly board games, according to Kathimerini, a newspaper in Greece.

Hasbro will pay Greece $11,700 for the right to use images of the Acropolis and other archaeological items on a collector's edition of the game, the newspaper reported, citing a decision by the Central Archaeological Council.

Some members of the council opposed the proposal, objecting to the use of the Acropolis in a game that is based on the concept of commercial transactions, the newspaper said.

The Culture Ministry allows the use of Greek archaeological images only with approval of the country's central archaeological council and a fee paid to a fund that provides for the upkeep of archeological sites.

The main attraction on the Acropolis archaeological site, in the center of the Greek capital of Athens, is the Parthenon Temple, built between 447 B.C. and 432 B.C., and considered a supreme example of Doric architecture.

-- Journal Business editor John Kostrzewa

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Massachusetts residents fighting over plans for a tribal casino in Middleboro, Mass., last night aired their views before federal officials who must review the proposal.

About 300 people turned out at Middleboro High School for the hearing, many carrying signs supporting one side or the other in the debate over a request by the Mashpee Wampanoag tribe to have the federal government take land into trust for them in this town about 30 miles east of Providence.

A decision by the Bureau of Indian Affairs favoring the Mashpee Wampanoags is a precursor to the tribe's building a casino resort on more than 500 acres in Middleboro. The tribe is seeking the same trust designation for 140 acres in Mashpee, Mass., for a reservation.

The tribe wants to build a casino in Middleboro in two phases. The first phase would include a 600,000-square-foot gambling hall on two levels, with 4,000 slot machines and 200 table games, as well as an array of restaurants, retail shops and an event center. The first phase would also include a hotel with 1,000 to 1,200 rooms -- scaled down from the 1,500 initially proposed by the tribe. The second phase would include a golf course and other recreational facilities.

-- Journal Business writer Paul Grimaldi

Continue reading "Indian bureau hears Wampanoag casino proposal" »

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Gasoline prices in Rhode Island have dropped for the first time in six weeks, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is down one cent to $317.9 at the self-service pump, according to AAA's weekly survey.

AAA attributes the slight drop to a drop in oil prices.

A year ago at this time, Rhode Islanders were paying $2.609.

Despite the slight drop in gasoline prices, diesel fuel prices continue to increase. The average price for diesel fuel is $4.149, up five cents since last week.

Posted by Jack Perry at 11:20 AM | Permalink | Comments (1)

CNBC is coming to Pawtucket.

The cable business news network plans to film three segments for its show, The Big Idea with Donny Deutsch, on Monday at Doherty’s East Avenue Irish Pub in Pawtucket.

The show looks at new products to find out whether some of them could become big hits with consumers. Past products have included “gourmet” flavoring for pet food to make it taste like cheeseburgers or pizza, a ropeless jump rope, and a women’s energy drink.

Part of the show includes a market research segment called “Will it Play in Peoria,” a reference to Peoria, Ill., the Midwest city that has long been used as a test market for a variety of products, stage shows and political campaigns.

For that feature, local residents are interviewed on camera about a particular product and present their results of an informal poll about whether it will “play in Peoria.”

“CNBC’s The Big Idea with Donny Deutsch goes to the heart of America to get real opinions from real people,” CNBC said in a statement. “We’re going to see if these products will really make millions.”

The show will film that feature in the Pawtucket pub. The crew begins setting up at 12:30 p.m., and the taping is scheduled to run from 2 to 3 p.m.

Three different segments will be filmed. A different one will air on Monday, Tuesday and Thursday. The show airs at 10 p.m. and 1 a.m. on CNBC.

-- Journal staff writer Timothy C. Barmann

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Gasoline prices jumped another four cents per gallon last week and are now within five cents of an all-time high, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $3.189 per gallon at the self-service pump, according to AAA's weekly survey.

The price for regular unleaded gasoline has increased 20 cents over the past five weeks, but people driving cars and trucks that take diesel fuel are suffering the most. The price for diesel fuel has increased 65 cents per gallon over the same period, crossing the $4 per gallon mark.

A year ago at this time, drivers were paying $2.579 per gallon for regular, unleaded gasoline.

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Journal archive photo / Bill Murphy
The new bridge between the Rhode Island Convention Center and the Dunkin' Donuts Center is now open.

PROVIDENCE - The bridge connecting the Dunkin' Donuts Center and the Rhode Island Convention Center has opened, giving pedestrians an indoor pathway from the arena all the way to the Westin Providence hotel and the Providence Place mall.

More than a shortcut for patrons, the bridge is designed to help the owners of the Dunk and convention center, the Rhode Island Convention Center Authority, bring more conventions to Providence, The Providence Journal has reported.

In the convention center's main exhibition hall, a speaker can address about 3,500 people at a time; in the Dunk, the audience can reach 14,000.

"It will help the buildings communicate," James P. McCarvill, the authority's executive director, said last summer. "It's really important. They can work very well together."

The Authority bought the Dunk from the City of Providence in 2005 for $28.5 million. The bridge is part of an $80.5-million renovation project at the Dunk.

Construction crews began building the $1.4-million, 96-foot-long box truss bridge last June. It connects the Dunk's new lobby with the third floor of the convention center, near the main exhibition hall.

"They're still doing finishing touches," convention center authority spokeswoman Kerrie L. Bennett said today. "But it seems to be going well."

The authority hopes to hold a ribbon-cutting ceremony on Sept. 5 to mark the end of the renovation. That ceremony will be followed by public tours of the building the next day and concerts the following weekend.

For the latest Business news, see projo.com's Biz Blog.

-- Journal staff writer Benjamin Gedan

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Citizens Financial Group has appointed Ellen Alemany as its chief executive officer, a position held by Lawrence K. Fish from 1992 until last March.

Alemany already held the title of CEO of RBS America, a new organizational unit at the Royal Bank of Scotland that oversees all of the bank's U.S.-based divisions.

Alemany replaces Stephen D. Steinour, a longtime Fish deputy who served as Citizens' president and CEO for less than a year. In a statement, Citizens said Steinour had made a "personal decision" to "spend more time with his family."

Alemany has named James G. Connolly as Citizens' new president. Connolly had served as vice chairman of commercial markets.

The changes come after a second consecutive year of relatively flat earnings for Citizens.

Last year, operating profit at Citizens dropped 9 percent, to $2.65 billion, The Providence Journal reported. Net income was down 16 percent after the conversion to British pounds.

In announcing its 2007 earnings, RBS said the slowing U.S. economy was hurting the growth of Providence-based Citizens. "Against a weaker economic backdrop in the U.S., Citizens, whilst performing well relative to its peers, experienced testing conditions," RBS said in its earnings report.

In December, Fish told employees that he had given up his remaining operational responsibilities for the Royal Bank, The Providence Journal reported.

For more local breaking business news, visit the Biz Blog at projo.com/business.

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Gasoline prices in Rhode Island have increased an average of two cents this week, the third straight week that prices have risen, according to AAA Southern New England.

The average prices for a gallon of regular, unleaded gasoline is $3.129 at the self-service pump, according to AAA's weekly survey.

Drivers here are paying 14 cents more than they were three weeks ago and 63 cents more than they were paying a year ago.

Rhode Island is four cents below the national average.

Posted by Jack Perry at 10:32 AM | Permalink | Comments (1)

Saint-Gobain Performance Plastics will begin laying off 90 employees in June, according to a filing the company made to the state Department of Labor and Training.

Last October, the Bristol-based company, a subsidiary of the France-based Compagnie de Saint-Gobain, first notified the plant's 160 employees about the plan, Providence Journal writer Alex Kuffner reported. One of the plant's manufacturing lines, the company said, is moving moved to Mexico.

“We appreciate the contributions made to our business by our Bristol employees and want to do what we can to help them during this transfer,” Donald Stinnett, general manager of the company’s Polymer Products Unit, said in a statement at the time. “We will work closely with each of our employees to ease the transition for them and their families.”

Earlier this month, Saint-Gobain told the Department of Labor and Training that the layoffs would begin on June 1 and be complete by September 2009. The letter, signed by human resource manager Christine Jocelyn, said the 90 employees will receive at least 60-days notice.

Saint-Gobain operates a 100,000-square-foot plant on Metacom Avenue, where it produces polymers for the automotive, medical and aviation industries. It has run the plant since 1999, and company officials have said they have no plans to close it.

The federal Worker Adjustment and Retraining Notification Act (WARN) compels companies in Rhode Island to notify the state before closing a plant or making "mass layoffs."

For more local breaking business news, visit the Biz Blog at projo.com/business.

-- Journal Business writer Benjamin Gedan

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Journal archive photo / Connie Grosch
Fall River high school students take advantage of post-Christmas sales at the Providence Place mall in December.

PROVIDENCE -- Sales tax receipts at Providence Place mall jumped 28.4 percent in December, reaching a record of nearly $2.6 million, according to figures compiled by the state Division of Taxation.

The monthly tax figure bests the previous monthly record of $2 million, set in December 2006.

For the year, stores in Providence Place generated $13,981,625 in sales taxes for the state, also a new record.

The financial and legislative assistance that helped make Providence Place a reality put a unique requirement on the mall: It is the only shopping center in the state that must file sales tax returns.

Because of the way mall stores turn over their sales tax receipts to the state, there is a lag of more than four weeks before the totals can be made public, according to division officials. Consequently, December’s total weren't available until this month.

For more local breaking business news, visit the Biz Blog at projo.com/business.

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PROVIDENCE -- An employee of Hasbro Inc. eliminated the word "Israel" after the city of Jerusalem in an online contest to select names for a new Monopoly board game after complaints from pro-Palestinian groups and bloggers who believe the city is not in Israel, the company said today.

A day after "Israel" was removed, the Pawtucket-based company apologized and pulled all country names from cities listed on the site.

Hasbro is asking people to vote at the Monopoly Web site on which cities will be included in its upcoming Monopoly Here and Now: The World Edition. Until Tuesday, every city on the site listed a country, including Paris, France; Cairo, Egypt and Jerusalem, Israel.

But a "mid-level" employee, based in London, decided on her own without consulting senior management to pull "Israel" from Jerusalem after hearing the complaints, Hasbro spokesman Wayne Charness said today. Israel considers the whole of Jerusalem to be its capital, while Palestinians claim east Jerusalem as the capital of a future state.

The change left Jerusalem as the only one of dozens of cities listed without a country.

Hasbro management was alerted to the change Wednesday when its London office saw a spike in traffic on the site and figured out what happened, Charness said. The company then pulled every country name, so Paris and Cairo also are now listed alone, he said.

"It was a bad decision, one that we rectified relatively quickly," he said. "This is a game. We never wanted to enter into any political debate. We apologize to our Monopoly fans."

-- The Associated Press

Continue reading "Hasbro pulls countries from Monopoly site after Israel flap" »

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WARWICK -- More than 10 healthcare companies are conducting on-the-spot interviews at projoJob’s Nursing & Allied Healthcare Career Fair, going on now through 5 p.m. at the Crowne Plaza, Route 5, in Warwick.

Plus, there are free seminars on improving your interview presentation at 1 p.m. and 3 p.m.

Click here to see the full list of exhibitors and events.

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Rhode Island home construction slowed last year, with the number of single-family building permits falling 9 percent for the second straight year, according to a report from the Rhode Island Builders Association.

There were 1,458 single-family building permits issued last year, compared with 1,606 permits in 2006.

Home construction in the state as measured by single-family building permits has been falling every year since 2000, with the overall number of permits during the last seven years down 35.4 percent, according to the Builders Association data.

The steepest one-year drop recorded by the Builders Association was in 1995, when single-family building permits fell 11 percent.

During the next four years, home construction activity picked up, with building permits from 1995 through 1999 climbing nearly 28 percent. Of the 39 cities and towns, building permits last year declined in 24 communities, increased in 14, and remained unchanged in one, according to the report.

-- John Kostrzewa

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Journal archive photo / Kathy Borchers
Soap fragments go through a dryer inside Bradford's West Warwick plant in 2005.

WEST WARWICK -- Employees at Bradford Soap Works, who are represented by the International Brotherhood of Teamsters, Local 251, have accepted a new five-year contract, according to the company.

The current contract was due to expire in 15 months. Employees approved the new agreement yesterday.

The deal is a positive development for a company that has previously threatened to leave the state. In 2004, Bradford Soap announced plans to close its West Warwick plant and move 250 jobs to facilities in Indiana and Ohio, citing high labor costs. But Governor Carcieri and the state Economic Development Corporation intervened, brokering a new contract agreement between the company and its employees.

Bradford Chairman John Howland celebrated the contract vote. "A win for Bradford is a win for Bradford employees and a win for the state of Rhode Island," he said in a statement.

"The actions and decisions made in 2004, however necessary, ushered in a long period of
rebuilding for Bradford," Howland said. "We have had to rationalize our manufacturing operations nationally and internationally, and entirely rebuild our relationship with our staff and employees at all levels."

Bradford Soap, established in Rhode Island in 1876, calls itself the world's largest manufacturer of specialty soaps. It operates the Valley Queen Mill in West Warwick, an historic stone structure built in 1889 along the Pawtuxet River.

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Alfred J. Verrecchia said this morning he will step down in May from his post as chief executive officer of Hasbro Inc., the Pawtucket-based toymaker.

Verrecchia will become Hasbro's chairman and be succeeded by Brian Goldner, Hasbro's chief operating officer. Alan G. Hassenfeld, currently Hasbro's non-executive chairman, will remain on the company's board of directors, as head of its executive committee.

Verrecchia, who turns 65 next week, has been with Hasbro for more than 40 years, one year less than G.I. Joe, the iconic action figure that became the company's first big hit.

Verrecchia told The Journal his approach always has been that "as long as I'm having a lot of fun and things are going well [then] I'm going to keep going at it. [But] I think the time is right."

Verrecchia became chief executive officer in 2003, when Hassenfeld, a member of the company's founding family, relinquished the role. Verrecchia assumed the day-to-day responsibilities of running the nation's number-two toymaker and helped guide it through a turnaround centered on reinvigorating its classic toys and games and adapt the company's lineup to the increasing influence of electronics.

A highlight came last year as the company generated more than a $1 billion in revenue from a movie and new toys based on its Transformers line.

Verrecchia announced the change during a quarterly video conference he holds with employees, he said.

"The moving standing ovation that the employees gave him says it all," said Wayne S. Charness, Hasbro's senior vice president for corporate communications. "He is respected and admired for being the great leader that he is."

Goldner, 43, was promoted to chief operating officer in 2006 as part of the succession plan that saw Hassenfeld become non-executive chairman.

-- Paul Grimaldi

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A.H. Belo Corp., the newspaper company spun off from Dallas-based Belo Corp., began trading this morning under the ticker symbol AHC on the New York Stock Exchange.
Shares traded after the opening bell at 9:30 a.m. at $16.35.

A..H. Belo Corp., based in Dallas, owns The Dallas Morning News, The Providence Journal, The Press-Enterprise in Riverside, Calif., and the Denton (Texas) Record-Chronicle, plus the newspapers’ Web sites. The company also owns certain niche products and direct mail and commercial printing businesses.

Belo Corp. completed the spin off last week by distributing one share of A.H. Belo for every five shares of Belo Corp. that shareholders owned on Jan. 25. For example, an owner of 100 shares of Belo Corp. received 20 shares of A.H. Belo.

Belo Corp. continues to trade on the New York Stock Exchange under the ticker symbol BLC. Shares in Belo Corp. opened this morning at 9:30 at $13.45. Belo Corp. owns 20 television stations.

-- John Kostrzewa

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Gasoline prices in Rhode Island dropped another five cents to fall below $3.00 per gallon for the first time since early November, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.989 per gallon at the self-service pump, according to AAA's weekly survey.

The average price has dropped for the past five weeks, but Rhode Islanders are still paying 81 cents more per gallon thean they were at this time last year.

Rhode Islanders are also paying about three cents more than the national average of $2.959.

Posted by Jack Perry at 10:14 AM | Permalink | Comments (2)

Journal Staff Photo / Mary Murphy
Developer Arthur W. Sullivan discusses plans to convert the Slater Cotton Mill in Pawtucket into residential rental units.

PAWTUCKET -- A New Hampshire developer said this morning his company will move forward with a $22-million project to build rental residences in a Pawtucket mill building, despite the slackening economy.

Arthur W. Sullivan, of Brady Sullivan Properties, said the project will succeed despite an economic downturn that has tightened credit markets and all but crushed the demand for condominiums.

"The market is slowing down a bit," Sullivan told The Providence Journal. "[But] we have the capital to make these things work."

Sullivan's plan to convert the Slater Cotton Mill in central Pawtucket to 124 rental units is his company's second project in Rhode Island. In October, the company paid $2.4 million for the Grant Mill building in Providence.

Continue reading "N.H. developer bucks economic trend with mill project" »

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BOSTON -- Fidelity Investments plans to lay off about 250 people as part of a restructuring and merger of some of the mutual fund giant's units.

A spokeswoman for Boston-based Fidelity says about 100 of the jobs being lost are in Massachusetts with the rest spread out across the country.

The layoffs are in the company's technologies division and two merging units that handle 401(k) plans, savings accounts and health care arrangements for corporate clients.

Spokeswoman Ann Crowey says the layoffs are not part of a companywide policy.

Fidelity still has about 46,500 employees, including 12,700 in Massachusetts.

The company has about $1.6 trillion in assets under management.

Fidelity has Rhode Island offices in Smithfield and Providence.

-- The Associated Press

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Woonsocket-based CVS Caremark Corp. reported this morning that fourth quarter profits were $815 million, or 55 cents a share, almost double the $417.2 million, or 49 cents a share, in the year-earlier period.

Last year, CVS completed a $27 billion purchase of Caremark RX to gain the second largest U.S. drug benefits manager. CVS and the Caremark division also benefited from demand for generic drugs.

Sales at CVS stores open at least a year rose 3.4 percent, including a 3.6 percent increase in pharmacy revenue and a 2.9 percent advance in non-pharmacy goods.

-- John Kostrzewa, Business editor

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State income-tax packages have begun arriving in mailboxes. Michael F. Canole, chief revenue agent for the Rhode Island Division of Taxation's personal income-tax section, said that many of the packages began arriving last week. Others should be received this week. "They are in the mail," Canole said today.

Altogether, the agency has mailed about 63,000 packages, he said. Most contain the Rhode Island Form 1040EZ; the remainder contain the longer Rhode Island Form 1040. All the forms are also available online.

The state tax agency has also begun mailing forms on which people may claim a rebate under Rhode Island's statewide property-tax relief program.

Earlier this month, the agency sent out about 50,000 packets containing forms with which to make quarterly estimated tax payments later this year, Canole said.

-- Neil Downing, Journal business writer

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BOSTON -- EMC Corp.'s fourth-quarter profit jumped 35 percent, beating Wall Street expectations, but the data storage vendor's results were overshadowed by disappointment over a technology firm in which EMC owns a majority stake.

EMC's shares fell more than 8 percent in morning trading after software maker VMware Inc. reported disappointing revenue results after markets closed yesterday.

The decline in EMC shares "is entirely due to VMware," whose market value of more than $31 billion approaches that of EMC's more than $35 billion, said Matt Bryson, of the technology research firm Avian Securities. EMC owns an 86 percent stake of VMware.

Hopkinton, Mass.-based EMC said today its net income for the October-December period was $525.7 million, or 24 cents per share, compared with a profit of $388.8 million, or 18 cents per share, in the same period a year earlier. Revenue rose 19 percent to $3.83 billion from $3.21 billion a year ago.

The profit and revenue performances beat the consensus forecast of analysts surveyed by Thomson Financial, who had been expecting a profit of 22 cents per share, and revenue of $3.66 billion, on average.

In morning trading, shares of EMC fell $1.38 to $15.53. VMware shares were down nearly 32 percent, after the maker of so-called "virtualization" software reported fourth-quarter revenue fell about $5 million short of analysts expectations of $417.4 million.

-- The Associated Press

Continue reading "EMC profits up, but shares down" »

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Gas prices in Rhode Island have fallen for the third straight week, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline at the self-service pump dropped three cents in the last week and is now $3.049, according to AAA's weekly survey.

The price has dropped nine cents in the last three weeks, but it's still well above the average of $2.209 at this time last year.

The average price nationally is $2.989.

Posted by Jack Perry at 10:58 AM | Permalink | Comments (0)

The Providence Journal photo/ Steve Szydlowski
Chrysler has a concept car on display at the 2008 Northeast International Auto Show, which is being held at the Rhode Island Convention Center today through Sunday.

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MASHANTUCKET, Conn. -- Foxwoods Resort Casino is starting to recruit thousands of workers in anticipation of opening its new MGM Grand casino.

Foxwoods will kick off its recruitment campaign Sunday with the launch of a new employment Web site.

Opening in May, the MGM Grand at Foxwoods will have 2,000 employees and provide an additional 1,000 jobs at the property's restaurants, including Tom Colicchio's Craftsteak, Michael Schlow's Alta Strada, and famed New York eatery Junior's.

Foxwoods plans regional job fairs, including efforts to attract minority job candidates. Foxwoods employees will be able to apply for jobs at various kiosks located throughout the property.

The new jobs include 350 supervisor/managerial positions and 277 dealer positions.

-- The Associated Press

Posted by Jack Perry at 10:23 AM | Permalink | Comments (0)

Gasoline prices in Rhode Island dropped four cents this week, according to AAA Southern New England.

The average price for a gallon of unleaded, regular gasoline is $3.079 at the self-service pump, according to AAA's weekly survey.

The price has dropped six cents in the last two weeks, but the average price in Rhode Island is still six cents above the national average of $3.019, according to AAA.

AAA attributes the drop to lower winter demand.

The average price here was $2.289 at this time last year.

Posted by Jack Perry at 10:32 AM | Permalink | Comments (0)

Gas prices in the Ocean State dropped two cents last week after increasing the previous two weeks, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $3.119 at the self-service pumps, according to AAA's weekly survey.

The price in Rhode Island is four cents above the national average.

At this time last year, the average price was $2.359 in Rhode Island.

Posted by Jack Perry at 10:24 AM | Permalink | Comments (0)

A Rhode Island company has been awarded a contract worth nearly $5 million dollars to support its work at the Newport Naval Undersea Warfare center.

SEA CORP will provide financial date management and administrative services to the Sensors and Systems Department.

“This contract will add to our growing company core competency of providing expert financial analysis and data administration, SEA CORP’S Business Area Manager Robin Alderman said in a statement.

Posted by Brandie M. Jefferson at 2:33 PM | Permalink | Comments (0)

REVERE, Mass. -- Personal relationships can go through hot and cold spells just like the weather - a sometimes harsh reality illustrated by this year's new sayings on the New England Confectionery Co.'s traditional Valentine's Day heart candies.

NECCO said today that its Sweethearts Conversation Hearts will include the weather-themed phrases "Melt My Heart," "In A Fog," "Chill Out," "Cloud Nine," "Heat Wave," "Sun Shine" and "Get My Drift."

The sayings "highlight the excitement and unpredictability of the day-to-day change of weather and people's love lives," NECCO marketing manager Lory Zimbalatti said in a statement.

This year's 10 new sayings also include nature-inspired phrases "Wild Life" and "Nature Lover," and the saying "Do Good."

-- The Associated Press

Continue reading "Valentine heart candy sends new messages" »

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Southwest Airlines, the biggest carrier at T.F. Green Airport with more than half all passengers, said it will begin charging customers who want to check more than two pieces of luggage.

Southwest now allows three checked pieces per passenger, with size and weight limitations for each bag. Starting Jan. 29, a third checked bag will carry a $25 fee, with higher charges for additional pieces.

This will affect less than 2 percent of our customers,” said Chris Mainz, a spokesman. “In that sense, it's really not going to be a major impact to the customers.”

The shift will help free luggage-hold space to carry more cargo, an area the largest low-fare carrier is targeting to raise revenue, he said.

By John Kostrzewa

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Pawtucket-based Hasbro Inc. said this morning it has agreed to buy closely held game producer Cranium Inc. for $77.5 million.

The purchase may close by the end of the first quarter, Hasbro said, and the price may change depending on Cranium's assets when the purchase is completed. Proceeds of the sale will go to shareholders and toward paying off Cranium's debt.

The company's games include Cranium, Cranium Hullabaloo and Cranium Cadoo.

Posted by Brandie M. Jefferson at 1:27 PM | Permalink | Comments (0)

Talbots Inc., the retailer with several stores in Rhode Island, said this morning it will close 78 of its kids' and mens' stores by September, eliminating 800 jobs.

Talbots, which has 1,000 stores nationwide, did not dislcose which stores would close. The stores in Rhode Island, in Barrington, Providence and Cranston, are general merchandise Talbots stores, and not the speciality men's and children's units that Talbots runs.

The company said it is restructuring to focus more on its core customer — women who are 35 years old or older, and also said its fourth-quarter sales so far were trending lower for both its Talbots and J.Jill brands.

-- Journal Business Editor John Kostrzewa

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KB Toys is closing its three stores in Rhode Island, which are located at the Garden City Shopping Center in Cranston, Providence Place Mall in Providence and Narragansett Park Plaza in Rumford.

The stores are running sales and employees say they will shut their doors by the end of January.

Read more in projo.com's Biz Blog.

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National Amusements Inc., based in Dedham, Mass., has formally announced its acquisition of the Feinstein IMAX Theatre at the Providence Place Mall.

The Providence Journal reported the sale in the Biz Blog yesterday and in today's paper.

In a statement released today by National Amusements, the privately held company said it was an "opportune time" for the purchase "since the movie industry is offering more and more large format film options for moviegoers to enjoy."

Read more from the Biz Blog.

-- Journal staff writer Benjamin Gedan

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The price of gasoline in Rhode Island has hit its highest price of the year on the final day of year, according to AAA Southern New England.

The average price for a gallon of gasoline is $3.109 at the self-service pump, up four cents from last week, according to AAA's weekly survey.

The previous high was $3.08 on Memorial Day, AAA says.

Posted by Jack Perry at 10:17 AM | Permalink | Comments (0)

Gas prices in Rhode Island dropped a penny last week, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline here is $3.069 at the self-service pump, according to AAA's weekly survey.

Prices have remained relatively steady for the past five weeks.

Still, drivers can find a wide variety of prices if they're willing to shop around. AAA found a 20-cent price range, from $2.999 per gallon to $3.199 per gallon, in its survey.

The average price here is nine cents above the national average of $2.979.

Rhode Islanders were paying just $2.429 per gallon a year ago.

Posted by Jack Perry at 10:33 AM | Permalink | Comments (0)

A former Warwick man has agreed to plead guilty to federal charges in connection with an Internet sales scheme that bilked nearly $15 million from people across the country who wanted to buy electronic gadgets.

Cory Johnson, formerly of 272 Pierce Ave., Warwick, faces up to 15 years in prison and fines totaling $500,000 for his part in a 2005 scam that left electronics distributors and others out millions of dollars, according to federal court documents. He is charged with conspiracy to commit wire fraud and money laundering.

He is the second person charged in the case.

Johnson was the owner of Mixitforme.com, a Providence company that sold iPods, Xboxes, PlayStations, cell phones and other consumer electronics over the Internet. He also ran a related business, Biggles Toy Store Inc. Both businesses were located at 275 Westminster St., in Providence in 2005.

-- By Journal staff writer Paul Grimaldi

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BOSTON -- TJX Cos. and nearly all the banks and bank associations that sued the discount retailer over a massive credit card data breach said Tuesday they have settled the lawsuit for an undisclosed amount.

Although both sides said the settlement total would remain confidential, TJX said the costs were covered by a $107 million reserve that it set aside against its second-quarter earnings.

TJX also has said that $107 million would cover the costs of another breach agreement: a Nov. 30 deal with Visa Inc. to help pay a maximum $40.9 million to help the network's card-issuing banks recover expenses to replace customers' Visa cards.

Between the two agreements and costs of about $125 million to boost security, TJX appears in good position to financially manage breach-related expenses, said Avivah Litan, a security analyst with Gartner Inc.

"This was a big thorn in their side," Litan said. "It was costly, but in the end, it's just one blip on their balance sheet."

Framingham, Mass.-based TJX, with $18 billion in annual revenue and 2,500 stores including T.J. Maxx and Marshalls, also faces pending state and federal investigations into the breach, which could result in fines.

And one of the small banks that sued TJX last spring didn't agree to sign onto Tuesday's settlement, filed in U.S. District Court in Boston.

Alabama-based Amerifirst Bank declined to take part in a deal that included state associations representing hundreds of banks in Massachusetts, Connecticut and Maine, as well as Massachusetts-based Eagle Bank and Saugusbank, and Connecticut-based Collinsville Savings Society.

"Those parties obviously felt they did what was in their best interests, but we feel that TJX caused a grave injustice to banks across the country, and many of those banks are small community banks like Amerifirst," said Inge Johnstone, a lawyer for the bank. "We have a duty to continue representing our clients, and this case continues for Amerifirst."

The banks sought unspecified damages for costs including expenses to reissue customers' credit cards and monitor for fraud.

After initially disclosing the data heist in January, TJX said in March that at least 45.7 million cards were exposed to possible fraud in a breach of its computer systems that began in July 2005. But the breach wasn't detected until December 2006.

Recent court filings by the banks that sued TJX put the number of cards affected at more than 100 million, based on estimates by officials with Visa and MasterCard, who were deposed in the lawsuit. It's believed to be the largest data breach ever, based on the number of customer records involved.

-- The Associated Press

Continue reading "TJX, banks settle litigation over massive data breach" »

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Motiva Enterprise LLC, a Texas-based supplier of fuel to Rhode Island and Southeastern Massachusetts, has eliminated 52 trucking jobs, including 24 in Providence, as part of the sale of its retail operations, a company spokesman confirmed today.

Motiva, which operates a gas supply terminal on Allens Avenue, Providence, said that 9 of the 52 union truck drivers at the company’s Providence, Bridgeport, Conn., and Brooklyn, N.Y., terminals accepted other jobs within the company; the remaining 43 received “enhanced severance packages,” said Motiva spokesman Stan Mays.

Motiva last week announced that it sold its interest in 34 Shell gasoline stations in Rhode Island to Colbea Enterprises LLC, which is owned by a Rhode Island family. The sale is part of what Motiva has said is an effort to refocus its business on wholesale operations. The new owners of the gas stations are expected to provide transportation of the fuels from the terminals to the stations, said Mays.

Motiva will continue to operate the fuel terminals which supply its wholesale customers.

-- Journal staff writer Lynn Arditi

Posted by Mike McKinney at 1:22 PM | Permalink | Comments (0)

Gas prices in Rhode Island increased by a penny last week, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline here is $3.079, according to AAA's weekly survey.

Gas prices haven't varied much for the past month, AAA says.

The average price in Rhode Island is eight cents higher than the national average of $2.999.

Rhode Islanders were paying $2.349 at this time last year.

Posted by Jack Perry at 10:16 AM | Permalink | Comments (0)

The Tiverton teachers union is slated to picket this afternoon at the workplace of the town's School Committee chairwoman, Denise deMedeiros.

Union members have said they will picket at St. Anne's Hospital in Fall River, Mass.

Last week, Judge Vincent Ragosta denied a School Committeee request for an injunction to halt the picketing after a conference with lawyers for the School Committee and the union, the NEA-Tiverton.

The picketing, at 2 p.m., is intended to call attention to stalemated contract negotiations to try to force the School Committee to the bargaining table, the union president has said.

deMedeiros has said the union is trying to harass her and affect her ability to do her job.

The committee declared an impasse in court-ordered mediation in October and filed for nonbinding arbitration. That court order, issued in early September, means teachers must work without a contract.

Two teachers who were suspended with pay for printing an anonymous letter critical of deMedeiros in the union newsletter were notified last week that they will have disciplinary hearings before the School Committee on Wednesday at 8:30 a.m.

-- With Journal archival reports

Posted by Mike McKinney at 7:11 AM | Permalink | Comments (1)

Dow Jones shareholders have approved the company's sale to News Corp., according to a count of proxy votes cast in advance of tomorrow's shareholder meeting. The Wall Street Journal, the company's flagship property, published the results on its Web site today.

The acquisition is expected to result in the sale of several Dow Jones-owned newspapers in New England, including the Cape Cod Times and The Standard-Times in New Bedford.

Rupert Murdoch, the News Corp. chairman, has been open about his plans to sell the local newspapers, part of the Ottaway group, since he began his effort to acquire Dow Jones.

Last month, Dow Jones said it was "exploring strategic alternatives for its Ottaway group of community newspapers and media franchises."

-- Journal staff write Benjamin Gedan

Posted by Benjamin N. Gedan at 2:31 PM | Permalink | Comments (1)

Motiva Enterprises LLC, the Houston-based company that owns a terminal in the Port of Providence, said this morning it will sell 34 Shell-branded gasoline stations in Rhode Island to Colbea Enterprises LLC. The price was not disclosed.

Colbea is a joint venture with equal ownership by Motiva and East Side Enterprises LLC. Colbea, run by CEO Andrew Delli Carpini, already operates 21 Shell-branded sites. With the acquisition, Colbea will become one of the biggest fuel companies in the Northeast, supplying 85 million gallons annually to 55 Shell-branded locations in Rhode Island.

Motiva said the sale is part of its publicly-stated strategy to change retail assets to wholesale assets in a number of regions to better support its wholesale business. Shell Oil Co. is a 50 percent owner of Motiva, along with Saudi Refining Inc.

Motiva yesterday reopened its south berth at the Port of Providence after a fire 18 months ago severely damaged the facility.

-- Journal Business Editor John Kostrzewa

Posted by Jack Perry at 9:58 AM | Permalink | Comments (0)

The median price of single-family homes in Rhode Island in October was $236,000, the lowest price recorded in any month in almost three years, according to a report released this morning by The Warren Group, which tracks real estate sales across New England.

There were 643 homes sold in Rhode Island in October.

October’s median price was 10.3 percent below the median price in October 2006, which was $263,000.

The median price in the first 10 months of the year was $258,000, 4.4 percent below the median price of $270,000 recorded during the same time period in 2006.

Sales of single-family homes in October fell by 18.3 percent from 787 in October 2006 to 643 this year. That followed a 27 percent drop in sales in September 2007.

Year-to-date sales are down 9.7 percent from 8,202 in 2006 to 7,403 this year.

The downward trend for both home sales and prices is also reflected in The Warren Group's report for neighboring Massachusetts and Connecticut.

-- Journal Business Editor John Kostrzewa

Continue reading "Update: R.I. home prices dropped again in October" »

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Gasoline prices in Rhode Island have dropped one cent this week, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $3.069 at the self-service pump, according to AAA's weekly survey.

The price had been steady for three weeks before this week's slight drop.

The price in Rhode Island is six cents above the national average.

Posted by Jack Perry at 10:38 AM | Permalink | Comments (0)

The Koffler Group, a real estate developer and property manager, has moved into the GTECH Center, the first tenant for the office space on the ninth and tenth floors.

In all, about 57,000 square feet of office space has sat vacant since the high rise opened a year ago. Details of the lease have not been disclosed, but CB Richard Ellis has been marketing the space for $39 per square foot.

Learn more about the Koffler Group: http://www.thekofflergroup.com/koffler_master_framset.html

For more business-related news, visit: http://www.beloblog.com/ProJo_Blogs/bizblog/

Posted by Benjamin N. Gedan at 10:34 AM | Permalink | Comments (0)

GROTON, Conn. -- The president of Electric Boat says the company is redesigning Virginia-class ships to save the U.S. Navy as much as $800 million.

Electric Boat head John Casey says the company also is expected to sign a contract with the Navy late next year for at least eight more Virginia-class ships, extending construction work to 2018.

Casey spoke Thursday at the shipbuilder's annual business briefing for local, regional and state leaders in Connecticut and Rhode Island.

Casey says Electric Boat has also delivered three ships in a program converting Trident ballistic-missile submarines to conventional strike and special operations programs. Another is about to be turned over to the Navy.

Congress last month approved $588 million to accelerate production of Virginia-Class submarines to two a year as early as 2010, sooner than anticipated. But Casey says the increase will not significantly affect the Groton shipyard for several years.

-- The Associated Press

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U.S. Sen. Sheldon Whitehouse has introduced legislation to ban Internet hunting, according to
The Humane Society of the United States. The Computer-Assisted Remote Hunting Act would prevent the operation of Web sites that allow people to shoot live animals remotely, according to the advocacy group.

Last year, the General Assembly banned the shooting of live animals by computer users remotely operating a digital camera, live ammunition and a rifle positioned on a ranch. The ban followed protests from The Humane Society, which called the business the "latest fad in Internet animal cruelty."

A total of 34 states have banned the practice, the group says. Here's a map of those states: hsus.org/web-files/PDF/internethunting_map.pdf

“Internet hunting is an appalling form of trophy hunting, one that is opposed by sportsmen and animal welfare advocates alike,” Michael Markarian, the group's executive vice president, said in a statement today.

For more business-related news, visit: http://www.beloblog.com/ProJo_Blogs/bizblog/

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SOUTH KINGSTOWN -- The CEO of the world's second-largest toy company plans to speak about business in China.

Hasbro CEO Alfred Verrecchia is scheduled to talk today about his firm's experiences making toys in China as well as its initiatives to sell toys in the Chinese market. Hasbro is based in Pawtucket.

China has caused worry among U.S. toy makers now in the critical holiday shopping season.

Millions of Chinese-made toys have been recalled this year due to high levels of lead, including products made by Hasbro's rival, Mattel.

Last week, Verrecchia said Hasbro is planning an ad campaign to reinforce the message that Hasbro has not had any recalls for lead or other dangerous chemicals.

Verrecchia will be speaking at a panel discussion hosted by the University of Rhode Island.

-- The Associated Press

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Utility giant National Grid today announced plans to consolidate its regional operations in a new building it is constructing in Waltham, Mass.

The company is the dominant energy provider in Rhode Island, where it has 476,000 electricity customers and supplies power to residents and businesses in 38 of the state’s 39 municipalities.

It is not clear how the consolidation will affect Rhode Island customers and employees.

At least some Rhode Island-based employees will be transferred out of state, although they may be replaced with employees now stationed in Massachusetts, company spokeswoman Jackie Barry said yesterday. No Rhode Island employees will be laid off, she said.

The company was unable today to provide the number of Rhode Island employees it has, or which Rhode Island facilities would be affected.

The company’s goal is to locate its employees closer to their managers and areas of responsibility, and to better integrate employees at facilities formerly operated by KeySpan Corp., New England Gas and other so-called legacy companies that have been acquired by National Grid in recent years.

“Hopefully, it will be an improvement for customers,” Barry said in an interview.

--Journal staff writer Benjamin N. Gedan

Continue reading "Update: National Grid eyes consolidating operations" »

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The Navy has awarded General Dynamics Electric Boat a $270 million contract to make components for a Virginia-class submarine, and some of the work will be done in Quonset Point and Groton, Conn.

The contract covers steam and electric plant components, the main propulsion unit, ship service turbine generator set, and various hull, mechanical and electrical systems components.

Those are "long lead-time" materials, and the work is to be completed in July 2011. The goal is to have them ready so that submarine SSN-784 meets its projected 2015 completion date.

Along with Rhode Island and Connecticut, work will also be done in Newport News, Va., California, Pennsylvania, Arizona and other U.S. locations.

The contract modifies an already awarded 2003 contract and brings the total to $8.8 billion.

Electric Boat is a subsidiary of General Dynamics, which has its headquarters in Falls Church, Va., and has about 83,000 employees worldwide.

-- projo.com staff writer Michael P. McKinney

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Gas prices in Rhode Island have stayed unchanged for the second week in a row, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $3.079 at the self-service pump, the same price as last week, according to AAA's weekly survey.

The price is nevertheless 40 cents more than it was seven weeks ago.

A year ago at this time the average price in Rhode Island was $2.309.

Rhode Island is one cent above the national average $3.069.

Posted by Jack Perry at 10:44 AM | Permalink | Comments (0)

WASHINGTON -- The Federal Communications Commission has approved the $1.3 billion sale of 35 television stations owned by Clear Channel Communication Inc. to Newport Television LLC, a private equity group, subject to certain conditions.

Newport is an investment group controlled by Rhode Island-based Providence Equity Partners. The sale will result in a violation of FCC ownership rules in nine markets and will require the divestiture of several stations. The agency announced the decision Thursday night.

The sale was conducted within the context of a much larger plan that will take Clear Channel private. The San Antonio, Texas-based company is the nation’s largest operator of radio stations. Last month, shareholders approved the $19.5 billion sale of the company to a private equity group led by Thomas H. Lee Partners LP and Bain Capital Partners LLC for $39.20 per share.

The sale of the 35 television stations will mean the new owner will be out of compliance with FCC rules that limit the number of stations one company may own in a single market. The market areas include Bakersfield, San Francisco, Santa Barbara, Fresno and Monterey in California; Salt Lake City; Albany, New York; Jacksonville, Fla., and San Antonio, Texas.

The companies asked the FCC for waivers to operate the stations for six months until it comes into compliance with the rules. The FCC granted waivers in eight of the nine markets, denying the request for Albany.

Providence also owns a stake in Spanish language network Univision Communications Inc. and Freedom Communications Holdings Inc. and is in violation of the newspaper-broadcast station cross-ownership rule in five markets. Providence has said it would divest properties in those markets but has yet to do so, blaming “volatile conditions” in the credit markets.

As part of its reasoning for granting the waivers, the agency in its decision noted the larger sale, which will result in Clear Channel spinning off a number of radio stations.

-- The Associated Press

Continue reading "FCC OKs TV stations' sale to investors group with R.I. ties" »

Posted by Mike McKinney at 6:35 PM | Permalink | Comments (0)

The federal Occupational Safety and Health Administration announced it is proposing $116,200 in fines against a Smithfield contractor -- with a history of violations -- for failing to provide cave-in protection for employees at three Rhode Island job sites.

OSHA said in a news release it has cited John Rocchio Corp. for alleged "willful and serious violations of safety standards" after inspecting East Greenwich and North Kingstown work sites.

"On all three occasions, the company was reminded of its responsibility to provide cave-in protection, yet we repeatedly found employees working in imminent danger situations," Patrick Griffin, OSHA area director in Providence, said in the statement. "Equally disturbing is the fact that we have cited this employer six times in the past 10 years for this same type of hazard, and this behavior has not changed."

The company has 15 days from receipt of its citations to ask for and participate in an informal cofnerencw with OSHA or to contest the citations before the Occupational Safety and Health Review Commission.

All digs of 5 feet or deeper must be guarded because walls in such excavations can collapse suddenly, "burying employees beneath tons of soil and debris before they have a chance to react or escape," OSHA said.

-- projo.com staff writer Michael P. McKinney

Continue reading "OSHA may fine Smithfield contractor $116,200" »

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WARWICK -- T.F. Green Airport is ending valet service at Garage B and halving the price for parking at the covered lot.

The move follows the expiration, at midnight tomorrow, of a contract with The Parking Company, the longtime operator of the complex. The Chicago-based Standard Parking Corp. is the new parking operator for all parking facilities at the state's main airport.

Parking at the 750-space parking complex will now cost $17 per day, about half the price under The Parking Company.

Under the previous arrangement, about 50 to 100 travelers used the garage every day, according to the Rhode Island Airport Corporation. It is now expected to fill up, corporation spokeswoman Patti Goldstein said.

“It was being underutilized,” Goldstein said.

-- Journal staff writer Benjamin N. Gedan

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WARWICK -- The Rhode Island Airport Corporation today promoted its top lawyer, Peter A. Frazier, to head the agency as it searches for a permanent replacement for Mark P. Brewer.

Brewer, the executive director since 2004, is leaving next month to run the Manchester-Boston Regional Airport in New Hampshire. He is paid $188,000 for overseeing T.F. Green Airport, the North Central airport and the state airports in Quonset, Block Island, Newport and Westerly.

Frazier, the first staff attorney at the 15-year-old agency, will be responsible for three costly and complex projects: an $83.5-million renovation of the terminal, a $242-million new airport transportation hub and a controversial effort to expand the runway.

-- Journal staff writer Benjamin N. Gedan

Continue reading "Airport promotes lawyer to fill in as executive director" »

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WARWICK -- The Rhode Island Airport Corporation today promoted its top lawyer, Peter A. Frazier, to head the agency as it searches for a permanent replacement for Mark P. Brewer.

Brewer, the executive director since 2004, is leaving next month to run the Manchester-Boston Regional Airport in New Hampshire. He is paid $188,000 for overseeing T.F. Green Airport, the North Central airport and the state airports in Quonset, Block Island, Newport and Westerly.

Frazier, the first staff attorney at the 15-year-old agency, will be responsible for three costly and complex projects: an $83.5-million renovation of the terminal, a $242-million new airport transportation hub and a controversial effort to expand the runway.

-- Journal staff writer Benjamin N. Gedan

Continue reading "Airport promotes lawyer to fill in as executive director" »

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WARWICK -- The Rhode Island Airport Corporation today will appoint an interim director to replace Mark P. Brewer, who is leaving next month to take over Manchester-Boston Regional Airport in New Hampshire.

The corporation board has promised a nationwide search for a permanent replacement. In the meantime, the interim executive director will be overseeing three costly and complex projects, an $83.5-million renovation of the terminal, a $242-million transportation hub and a controversial effort to expand the runway.

The board meeting begins at 4 p.m. at 2000 Post Road in Warwick.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 11:38 AM | Permalink | Comments (0)

Cyber Monday -- the online equivalent of old-school Black Friday -- racked up $733 million in online spending, up 21 percent from last year's Cyber Monday and an 84-percent increase from average daily online spending during the past four weeks.

That is according to comScore, Inc. which measures the digital world and released figures late today.

Amazon and Wal-Mart were the top retailers on Cyber Monday, comScore found.

“Cyber Monday once again set a record with $733 million in sales, the first time a single day of online retail spending has broken the $700 million threshold," comScore chairman Gian Fulgoni said in a statement. "While that makes it the heaviest online shopping day on record, we expect that a number of individual shopping days during the coming weeks will surpass the Cyber Monday total, with some days potentially surpassing $800 million.”

The company also found:

* The number of online buyers was up 38 percent from Cyber Monday 2006, while the average money spent per buyer was down 12 percent. The drop in dollars per buyer may be because of deeper and broader price discounts offered by online merchants this year and because new Cyber Monday buyers tended to spend less online than returning buyers.

* Six percent of the Internet users on Cyber Monday made an online buy.

* Forty-four percent of Internet users on Cyber Monday shopped online -- visited an online retail site or used a comparison shopping engine.

* Sixty percent of dollars spent online on Cyber Monday came from work computers, with the balance coming from home and university computers.

-- projo.com staff writer Michael P. McKinney

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Two Lifespan hospitals were named to a list of 100 Best hospitals by the Thompson Corp.

The Miriam and Rhode Island Hospitals were ranked at about the middle of the list of hospitals for its cardiovascular services.

The list as released today, one day after the state Department of Health reprimanded and fined Rhode Island Hospital $50,000 for the third wrong-site surgery in one year in its neurology department.

The rankings were based on clinical outcomes related to congestive heart failure, heart attacks, coronary artery bypass grafts, and percutaneous coronary interventions – such as angioplasties.

The results of the hospitals that made the list included stays that were, on average, 12 percent shorter and costs that were about $2,000 less than non-listed hospitals.

See the complete list: a href="http://www.100tophospitals.com/winners/cardiowinners.aspx">2007 Thomson 100 Top Hospitals®: Cardiovascular Benchmarks for Success.

Posted by Brandie M. Jefferson at 2:48 PM | Permalink | Comments (1)

Are you planning to buy any green gifts this Christmas, and if so, where are you finding the best presents in Rhode Island?

Are you considering charitable donations in lieu of buying presents, and if so, what motivated that decision?

Which organization did you choose, and do you think your gift will be well-received by your loved ones?

Send to Natalie Garcia

Posted by Peter Phipps at 7:11 AM | Permalink | Comments (0)

A lot of Americans spent money shopping during the four-day Thanksgiving period but they each spent a little less than last year, according to data compiled by market researchers, giving retailers a solid yet unconvincing start to the holiday season.

While more people were out shopping, they spent less this year than last, an average of $347.55 versus $360.15 each last year, according to a joint survey by BIGresearch and the National Retail Federation.

BIGresearch said 44.1 percent of those surveyed shopped over the four-day Thanksgiving period, up from 42.9 percent last year and 41.8 percent in 2005 and the NRF said 147 million people visited stores over the four-day period.

The weekend activity was followed by a Monday expected to be one of the busiest online shopping days on record, though final tallies won’t be ready until later this week.

“If there was any doubt that the consumers would be out there,” the weekend may have eased those worries, said Paul T. DeRoche, vice president of the Greater Providence Chamber of Commerce. “People were out there shopping.”

Sales on the day after Thanksgiving, known as Black Friday, rose 8.3 percent to an estimated $10.3 billion, according to ShopperTrak RCT Corp.

Americans still have a lot of spending to do if they are to eclipse predictions for a conservative retailing holiday, an outlook emphasized by a number of observers. The months of November and December are critical for retailers because, combined, they represent 20 percent of stores’ annual revenue.

Today will be just as critical for retailers as the day after Thanksgiving, as one market research firm predicted it would be the largest online shopping day ever.

The Monday after Thanksgiving even has its own marketing shorthand -- Cyber Monday -- because online sales spike after the long weekend.

-- Journal staff writer Paul Grimaldi

Continue reading "Update: Solid start to holiday shopping season" »

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PROVIDENCE -- Three former lead paint manufacturers are objecting to a proposal by the state that would force them to pay an estimated $2.4 billion to clean up roughly 240,000 homes contaminated with lead paint.

The companies last year lost a public nuisance lawsuit brought by the state.

But they say the state's proposal has serious legal problems and are asking a judge to strike it down.

For instance, the companies say they don't have the authority to access properties contaminated with lead paint. They also say the clean-up plan can't cover individual homes since no evidence on specific properties was presented at trial.

Jack McConnell, an attorney for the state, says the companies' arguments have already been rejected.

-- The Associated Press

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A former Bank Rhode Island branch manager faces prison time for his part in a 2005 scam that put the Providence-based bank on the hook for more than $3 million in losses and left electronics distributors and others out millions more.

A federal judge will sentence David Carpenter, 34, of Cranston, in April as a result of a guilty plea the former bank official made last week in federal court in Providence.

During a hearing Wednesday before Judge William E. Smith in U.S. District Court, acknowledged that he accepted a bribe in exchange for helping defraud the bank of nearly $1 million -- the amount the bank lost before the fraud was discovered.

Carpenter had agreed to draft deposit verifications and letters of credit totaling more than $3 million in the fall of 2005 on behalf of Mixitforme.com in exchange for a high-paying job with the Providence Internet retailer, according to a government official and his lawyer.

A spokesman for the U.S. Attorney's Office in Providence called the job "significant motivation" for Carpenter's actions, while Carpenter's lawyer described him as being conned himself in a scheme that bilked nearly $15 million from people nationwide.

-- Journal staff writer Paul Grimaldi

Continue reading "Ex-bank manager faces sentencing in electronics scam" »

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NEWTON, Iowa -- A Rhode Island company has announced plans to build a factory in Newton, Iowa, and employ 500 workers over the next three years.

TPI Composites Inc. will begin construction next week on a 316,000-square-foot wind turbine blade factory.

The plant will make blades for General Electric Energy's 15-megawatt wind turbines. GE Energy says it has 6,500 of the turbines installed, making it 1 of the most popular units used today.

TPI chief executive Steven Lockard says the company's facility on 33 acres near a new biodiesel plant in Newton will make turbine blades up to 150 feet long and weighing up to 20,000 pounds.

-- The Associated Press

Posted by Mike McKinney at 2:57 PM | Permalink | Comments (0)

Journal photo / Mary Murphy
Shoppers work their way today through the first level at Providence Place mall, which is decorated in strings of lights for the holidays. After what appeared to be a strong start to 2007 holiday shopping over the Thanksgiving weekend, the Associated Press reports, retailers are hoping customers will keep buying in a season some forecasters say will be the weakest in five years.

Posted by Andrea Panciera at 2:54 PM | Permalink | Comments (0)

PROVIDENCE -- The state Economic Development Corporation will name the first recipients of a new tax credit today, giving out as much as $600,000 in credits to companies that have promised to create high-wage jobs.

The initiative, announced in June, offers up to $100,000 to investors who bet on small companies in so-called innovation-based industries. Those include biotech, information technology, financial services, marine and defense manufacturing and several others.

The first six applicants are Bionica Corporation, Lighthouse Security Group, Ocean State Solutions, Providence Health Solutions, Public Display and Tizra, according to state records.
EDC officials say the tax breaks will help companies create jobs and expand the state's tax revenues. In the short term, however, the credits will cost the state about $1 million a year in tax receipts at a time when lawmakers are struggling to close a $450-million deficit.

The EDC board will review the applications today at 4 p.m. at 315 Iron Horse Way, off Valley Street.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 12:28 PM | Permalink | Comments (0)

After increasing for five straight weeks, gasoline prices in Rhode Island were unchanged last week, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is still $3.079 at the self-service pump, according to AAA's weekly survey.

That's 40 cents more than drivers were paying six weeks ago.

Rhode Islanders are paying one cent less than the national average of $3.089.

AAA found a range of 16 cents between the lowest and highest prices, $3.039 to $3.199, in its survey.

Posted by Jack Perry at 10:40 AM | Permalink | Comments (0)

NEW YORK -- Online retailers expect that people booting up their work computers after a long weekend might be doing some Internet shopping.

The National Retail Federation labels the Monday after Thanksgiving "Cyber Monday" and a number of e-tailers are hosting one-day sales or making special offers for the occasion. More are offering free shipping this year with no conditions, such as a minimum purchase.

According to a press release, the retail organization coined the term after noticing a trend in online shopping that begins the Monday after Thanksgiving.

Early estimates are that online sales got off to a rousing start on Friday, the traditional start of the holiday shopping season. Forrester Research expects Americans to spend $33 billion dollars online during the holidays this year.

Another research firm, ShopperTrak, says overall retail sales Friday and Saturday combined were up more than seven percent from the same two-day period a year ago.

-- The Associated Press, with Journal archive reports

Posted by Brandie M. Jefferson at 8:40 AM | Permalink | Comments (0)

NORTH KINGSTOWN -- The major changes in leadership at the agency that runs the state-owned Quonset Business Park are continuing.

At its last meeting, on Nov. 19, the Quonset Development Corporation board appointed Kevin M. Barry as director of finance. Barry, an 11-year employee, most recently held the title of controller.

Barry is replacing Mary Lake, who resigned on Sept. 1, according to QDC spokeswoman Dyana Koelsch. He has been serving as Lake's interim replacement.

"I was pleased with what some of the board members had to say," Barry said after the recent board meeting. "I'm able to keep doing what I've been doing."

The EDC hired Barry in 1996 as the facility controller at Quonset, a 3,000-acre former Navy base in North Kingstown that is now used by the state to attract new businesses to Rhode Island and to promote job growth at local companies.

In July, Saul Kaplan, the head of the state Economic Development Corporation and chairman of the Quonset board, dismissed Quonset's chief executive officer, W. Geoffrey Grout. He appointed chief operating officer Steven J. King as the interim CEO.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 3:45 PM | Permalink | Comments (0)

Shoppers looking for bargains beat the sun this morning, heading to malls as early as midnight to ring in the unofficial start of the holiday shopping season.

But as Black Friday winds down, shoppers may be looking for the next shopping-themed day to spend.

Cyber Monday is the phrase coined in 2005 by the National Retail Federation to describe the Monday after Thanksgiving, and it’s being touted as the official start of the online shopping season.

But while Black Friday is often the busiest day of the year for stores, Cyber Monday doesn’t even make the top 10, according to the ShopperTrak Retail Traffic Index.

ShopperTrak, a Chicago-based firm that conducts market research for the retail industry, predicts that this year Black Friday will be the busiest shopping day, followed by “Super Saturday,” Dec. 22.

After that, the top shopping days work backwards from late December, with tomorrow rounding out the list at number 10.

Kathy Grannis at NRSF, said the organization doesn’t keep tabs on Cyber Monday sales, which “don’t have anything to do” with Black Friday sales.

According to a press release, the organization coined the term after noticing a trend in online shopping that begins the Monday after Thanksgiving.

Click below to see the Traffic Index's predictions for the top shopping days this year.

-- projo.com staff writer Brandie M. Jefferson

Continue reading "Cyber Monday: The next big thing?" »

Posted by Brandie M. Jefferson at 12:54 PM | Permalink | Comments (0)

PROVIDENCE -- For some, it was done by 6 a.m

As the sun rose, a few shoppers dotted the streets with brightly colored bags from stores at Providence Place mall.

One shopper, who asked to remain nameless out of guilt for shopping on Black Friday-- so-called because it can be the day when heavy shopping puts retailers' accounts in the black -- said she couldn't sleep, so at 4 a.m., she hit the stores.

And workers who prepared for the early-morning openings were met with a small crowd. The mall never shuts its doors, allowing about 100 shoppers to start buying the moment the stores opened.

But Kelly Allard was one of the luckier employees.

Her store isn't set to open until 8 a.m. She and a co-worker were unusually bubbly for 7 a.m., chatting and laughing as they rode an escalator to the top floor.

"This is one of the funnest days to work," she said to a reporters amazement.

"You've got mothers, 10 sisters, nephews, brothers ... it's a family day."

By 7 a.m. there were more than 500 people looking for sales on goods for the holidays and, no doubt, for themselves. It's 50-50, her co-worker said, taking on the voice of a Black Friday shopper. "One for you, one for me."

"It's not like Christmas Eve," Allard said, when the pressure is on to find something -- anything.

But working on Dec. 24 does have advantage over today, she said.

"We know, after that, it's all over."

-- projo.com staff writer Brandie M. Jefferson

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HARTFORD, Conn. -- A nursing home company run by the same executive who heads up the record label for country star Travis Tritt has declared bankruptcy amid allegations of poor care and a state inquiry into whether it illegally used federal funds meant for patients for other purposes, including a lakeside home and the record company's launch.

Middletown-based Haven Healthcare Corporation filed for voluntary Chapter 11 yesterday in New Haven bankruptcy court, asking for protection from the tens of millions of dollars it owes creditors while it restructures. The company operates more than 40 health-related companies in New England, including nursing homes, clinic and medical supplies.

According to its Web site, it operates four health centers in Rhode Island, in Coventry, Greenville, Pawtucket and Warren.

The company's largest debt listed in the bankruptcy documents is $13.7 million owed to Kentucky-based Omnicare Value Health Care, which provides pharmaceutical care to the elderly.

In Connecticut, the company owes the state tax department nearly $600,000. It owes Connecticut Light & Power more than $400,000 in utility bills, according to the bankruptcy records. It also owes taxes in Vermont and Rhode Island.

State officials alleged that the company let bills go unpaid while using company funds to launch a Nashville record label among other investments. That record company, Category 5 Records, does not appear in the bankruptcy filings. Ray Termini, the record company's chief executive officer, is also the CEO of Haven Healthcare.

-- The Associated Press

Continue reading "Nursing home outfit with R.I. ties declares bankruptcy" »

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PROVIDENCE -- Mark P. Brewer, the head of the Rhode Island Airport Corporation, is expected to submit a letter of resignation today, giving the corporation 30 days to find a replacement.

The Manchester Board of Mayor and Aldermen confirmed Brewer's appointment last night as the next director of Manchester-Boston regional airport in New Hampshire, according to a deputy city clerk. Manchester Mayor Frank Guinta nominated Brewer on Nov. 7.

The corporation board plans to appoint an interim director at its meeting on Wednesday. The board will also appoint a subcommittee to lead the search for a permanent replacement.

“I feel bad for Providence,” Sean Thomas, a senior policy advisor to Mayor Guinta, told The Providence Journal this morning. “We’re getting a great guy.”

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 11:19 AM | Permalink | Comments (0)

PROVIDENCE -- The state Economic Development Corporation will name the first recipients of a new tax credit on Monday, assisting companies in several high-wage industries.

The initiative, announced in June, offers up to $100,000 to reward investments in so-called innovation-based industries. Those include biotech, information technology, financial services, marine and defense manufacturing and several others.

The tax credit, which comes at a time when tax breaks are under intense scrutiny, reimburses an investor or a company's senior management for half of any investment made in the firm, up to $100,000. The credits will be applied toward state income-tax bills.

The EDC is authorized to distribute $2 million in tax credits every two years until 2016, when the program will expire. The EDC board plans to vote on six applications at its meeting on Monday, according to EDC spokesman Andrew S. Cutler.

"We're trying to attract and keep serial entrepreneurs in the state," Saul Kaplan, the executive director of the EDC, said in June. "We need more of them in Rhode Island."

Posted by Peter Phipps at 7:40 AM | Permalink | Comments (0)

A former Bank Rhode Island branch manager pleaded innocent today to a federal charge that he solicited a bribe in exchange for helping defraud the Providence bank of nearly $1 million, according to federal court documents.

David Carpenter, 34, of Cranston is the first person to face criminal charges in connection with an Internet sales scheme that bilked nearly $15 million from people across the country who wanted to buy electronic gadgets.

Appearing in U.S. District Court today, Carpenter said little during a brief hearing before U.S. Magistrate David L. Martin. He pleaded innocent to a felony charge of soliciting a bribe as a bank officer. He also waived his right to an indictment on the charge, which carries a penalty of up to one year in prison.

He is due back in federal court tomorrow afternoon when he is expected to change his plea to guilty, according to the U.S. Attorney’s Office.

Carpenter allegedly arranged for a $1 million line of credit that helped two men, one of them a former Warwick resident, set up a Rhode Island company selling consumer electronics over the Internet. It’s unclear what Carpenter accepted to arrange the credit line.

The customers of Mixitforme.com tended to be people who scour the Web to find deals on bulk purchases of consumer electronics, such as Xboxes, PlayStations, iPods, or cell phones, and then resell them in small lots to independent retailers or individuals.

Workers at Mixitforme.com office in Providence took hundreds of orders from people over the Internet. But the company filled only some of its smallest orders, according to court records and former customers, and even many of those orders were late in arriving or generated billing headaches for customers, who began complaining to law-enforcement agencies.

The company imploded in early 2006 after law enforcement officials raided its offices at 275 Westminster St. in Providence. Agents from the U.S. Secret Service, the FBI, the U.S. Postal Service, state and Providence police seized business records and computer equipment during the raid in March 2006. A related business, Biggles Toys, also shut down as a result of the raid.

-- Journal staff writer Paul Grimaldi

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A Canadian drug company claims that it was defamed by a story on allegedly fake drugs produced by a Lin TV station in Indianapolis.

CanaRx Services, based in Windsor, Ontario, sued Lin TV, WISH and reporter Karen Hensel in federal court in Indianapolis Monday seeking unspecified monetary damages and an order prohibiting any further broadcast of the stories. Lin is based in Providence.

``The reports prepared by Hensel and broadcast and posted by LTC, taken as a whole, conveyed to viewers the message that CanaRx deals in counterfeit drugs,'' the company said in its complaint. ``Such message was false.''

Importation of foreign drugs into the U.S. is opposed by President George W. Bush who has said he'll veto any new law easing restrictions on imports that doesn't resolve safety concerns. Municipal and state governments have lobbied for easier access to foreign drugs to reduce costs, with brand-name drugs in other countries costing as much as 70 percent less than in the U.S.

Bloomberg News said it was unable to get a comment from two Lin TV officials.
declined to comment for a Bloomberg News story on the suit. WISH General Manager Jeff

-- Bloomberg News

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AP Photo
A display of toys recalled by the U.S. Consumer Product Safety Commission is shown today during an Associated Press interview with CPSC Director of Public Affairs Julie Vallese at CPSC Headquarters in Bethesda, Md.

PROVIDENCE -- A nonprofit watchdog today called on parents to be particularly careful this holiday season when buying toys for children as recalls of tainted playthings continue at the start of the nation’s heaviest shopping season.

The Rhode Island Public Interest Research Group released “Trouble in Toyland” -- its annual report on hazardous toys -- during a meeting at the Mount Hope Child Care Center in Providence. The group used the opportunity to urge Congress to strengthen product safety laws and increase funding for the U.S. Consumer Product Safety Commission, one of the nation’s primary oversight agencies.

“Recent high-profile product recalls have given us a chance to urge Congress to pass strong product safety reforms and give kids the best holiday gift of all,” said Laura Brion of RIPIRG.

Similar presentations were made today by PIRGs in other states around the country.

Standing before a table in a daycare classroom, Brion pointed out a handful of suspect toys found on shelves in Rhode Island stores. Among them was a stuffed Curious George doll, a hand-sized John Deere front-end loader, lip gloss and other items. Each, she said, presented some hazard to children. The Curious George doll, for instance, contained five times the amount of lead allowed by the CPSC and a toy zipper that contained 65 percent lead by weight.

“We were shocked to see how dangerous this would be” to children, she said.

RIPIRG’s research focused primarily on six categories of dangerous toys: those that pose choking hazards; are dangerously loud; pose strangulation hazards; contain toxic chemicals; contain improperly secured magnets; or those that could form dangerous projectiles.

As in past years, the public advocacy group found balls, plastic playthings and other toys with small pieces continue to be marketed toward children.

Magnets have recently raised more concerns as they’ve been added to more toys in recent years. Mattel Inc., the nation’s largest toymaker, this year recalled 18 million toys with small magnets that could be swallowed by children.

“We all know toddlers love to put things in their months,” Brion said. “These small powerful magnets pose a serious hazard.”

Find RIPIRG tips on toy safety here.

-- Journal staff writer Paul Grimaldi

Continue reading "Recalls highlight need for careful toy buying / Photo" »

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PROVIDENCE -- The Greater Providence Chamber of Commerce has named Summer Infant Inc. its Small Business Leader of the Year. The company is to receive the award tonight at the chamber’s annual meeting, the largest gathering of business leaders of the year.

Summer Infant, a manufacturer of children’s care products in Woonsocket, was founded in 1984.

The chamber awards businesses with 100 employees or fewer for creating original products or services and for job growth, profitability and community involvement, according to chamber spokeswoman Bethany E. Costello.

Last year, Stephen Lane and Aidan Petrie, co-founders of Item Group, a product development firm in Providence, received the chamber’s small business award.

Tonight's event, at the Rhode Island Convention Center, is expected to draw at least 700 people. Joseph Quinlan, the chief market strategist for Bank of America, Global Wealth and Investment Management, is scheduled to deliver the keynote address at 8:10 p.m.

Also at tonight’s ceremony, the chamber plans to name Concordia Manufacturing as the Manufacturer of the Year. Concordia, based in Coventry, is growing its staff at a time when many manufacturers in the state are shrinking or closing their local operations.

-- Journal staff writer Benjamin N. Gedan

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BOSTON -- The company hoping to build a liquefied natural gas terminal in Fall River is forging ahead even after the Coast Guard rejected the proposal last month.

Opponents called the Coast Guard's decision a near death blow for the Weaver's Cove Energy terminal, but Hess LNG President Gordon Shearer said today the company will appeal the ruling as early as Wednesday.

At the same time, Shearer said the company will submit a new proposal designed to address the concerns raised by the Coast Guard, a move that would automatically trigger a new review.

"It's fair to say that the project is by no means dead," Shearer said today.

A revised proposal will be submitted to the Coast Guard in the next few months, he said. The proposal can be filed even if the Coast Guard hasn't yet ruled on the appeal.

The Coast Guard said if the company submits a new proposal, it's prepared to completely reanalyze it.

"Weaver's Cove could present an entirely new proposal, which would require the Coast Guard to conduct an entirely new analysis," Coast Guard Senior Chief Richard Uronis said.

-- The Associated Press

Continue reading "LNG company vows new push for Fall River plant" »

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The average price for a gallon of gasoline in Rhode Island has increased for the fifth straight week and is just one cent below the high for the year, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline has increased four cents to $3.079 at the self-service pump, according to AAA's weekly survey. The high for the year is $3.089, reached on May 28.

The price has climbed 40 cents in the past five weeks. A year ago the price here was $2.239.

The average price for gasoline in Rhode Island is two cents below the national average of $3.099.

Still, AAA says the high prices aren't expected to deter Thanksgiving travel acrosss the country. AAA estimates that 38.7 million Americans will travel 50 miles or more from home this holiday, a 1.5 percent increase over last year. About 31.2 million are expected to travel by motor vehicle, a 1.3 percent increase over last year.

Read more on Thanksgiving travel.

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A Newport woman has been charged in a federal civil complaint with fraudulently soliciting and obtaining more than $500,000 from members of the public to invest in trading commodity futures.

Federal Judge Deborah A. Batts in New York's Southern District issued an order freezing assets of Elizabeth Baldwin of Newport and barring the destruction of business records, according to a news release today summarizing the complaint lodged by the U.S. Commodity Futures Trading Commission.

Baldwin is accused of defrauding people participating in a commodity pool to trade E-Mini S&P 500, 10-year notes and 30-year bond futures contracts.

The complaint alleges that, from at least January 2004 to now, Baldwin, doing business in her name and in the name of Newportant Group, fraudulently solicited and obtained more than $500,000.

Baldwin "represented to at least one participant" that money would be pooled for the purpose of trading futures contracts and that the pool had been making monthly profits from 3 to 10 percent. The complaint asserts that was false, that the pool lost money trading in all but one month.

-- projo.com staff writer Michael P. McKinney

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SMITHFIELD -- Alexion Pharmaceuticals Inc. is ramping up its European operations, a critical part of its strategy to grow the small market for the company's only drug, Soliris. The medication is used to treat a rare blood disease, paroxysmal nocturnal hemoglobinuria, or PNH.

In a presentation yesterday at the Credit Suisse Healthcare Conference, in Phoenix, Alexion's chief executive officer, Leonard Bell, said the company plans to launch Soliris in Germany and England by the end of the year.

Alexion, based in Cheshire, Conn., has spent nearly $80 million renovating the former Dow Chemical plant in Smithfield. Construction is complete and "validation runs" are expected to begin next year, Bell said today.

"We're building a global business," Bell said in remarks broadcast online. "So far, we've done well."

Alexion has opened a European headquarters in France and a "financial hub" in Switzerland, Bell said.

Though few Americans have been diagnosed with PNH, Alexion expects to become profitable through the high cost of the drug: about $389,000 for a year's supply.

In the U.S., the unusually high price is permitted because of the drug's "orphan" status, through a law that rewards drug companies for finding cures to rare diseases. In European countries, Bell said, Alexion expects the drug's price to differ from the U.S. price by no more than 15 percent.

More than 100 patients in Europe are taking Soliris as part of clinical trails, but they do not pay for the drug. "We have an increasing focus on the European operations," Bell said. "It's been a pretty productive year so far."

Sales of the drug rose to $21.8 million in the third quarter of the year, up from $9.8 million in the previous three months, according to the company. The U.S. Food and Drug Administration approved the drug in March, and Alexion began selling it in the United States the following month.

-- Journal staff writer Benjamin N. Gedan

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Journal photo/ Bill Murphy
Lawrence K. Fish, a top executive at the Royal Bank of Scotland Group, addresses the crowd during a breakfast meeting of the Greater Providence Chamber of Commerce at the Providence Marriott Hotel.

PROVIDENCE -- Lawrence K. Fish, a top executive at the Royal Bank of Scotland Group, the parent company of Providence-based Citizens Financial Group, promised today that the rapid growth of Citizens would not diminish its connection to Rhode Island.

In a speech at the Business Over Easy Breakfast, sponsored by the Greater Providence Chamber of Commerce, Fish said Citizens is committed to its Rhode Island-based employees and its charitable initiatives in the state.

"Our roots in the community of Rhode Island are very deep," Fish said. "Citizens began in Rhode Island, it has grown up in Rhode Island."

-- Journal staff writer Benjamin N. Gedan

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MIAMI -- Federal prosecutors are seeking the arrest of a U.S. citizen in Portugal who may be behind dozens of extortion calls to retail outlets and banks around the country -- including calls to a Wal-Mart in Newport in August.

At least 26 banks, retail stores and grocery stores in 17 states received calls this year from someone threatening to set off a bomb unless money was wired to an account abroad.

A grand jury indictment unsealed in Miami yesterday charges Allan Guedes Sharif with threatening to bomb a Miami Beach bank in March unless employees there gave an alleged accomplice $20,000.

The indictment says Sharif made similar threats at two other Miami-area banks.

Although the indictment is limited to the March calls, Miami U.S. Attorney R. Alexander Acosta says prosecutors and the FBI have been in contact with numerous other jurisdictions where Sharif may have made threats.

-- The Associated Press

Posted by Jack Perry at 10:44 AM | Permalink | Comments (0)

Still looking for that federal income-tax refund check? The Internal Revenue Service is holding nearly $300,000 for 415 people in Rhode Island whose refund checks were returned as undeliverable. That works out to an average of about $723 per check.
A refund check is typically returned to the IRS as undeliverable when a taxpayer moves without updating his or her address with either the U.S. Postal Service or the IRS, said IRS spokeswoman Peggy Riley. If your refund is among those that were returned, you can claim it by updating your address with the IRS. Complete the process by using the IRS Website or by calling the IRS at 1-800-829-1954 or 1-800-829-1040.

Posted by Neil Downing at 10:19 AM | Permalink | Comments (0)

The state’s first-ever campground reservation system is being launched today, allowing campers to reserve sites up to a year before they pitch their tents.

Beginning at 9 a.m., campers can telephone a Rhode Island call center (877-742-2675) to make a reservation or pick a spot using a state Web site here.

In the past, campsites have been distributed on a first-come, first-served basis, leading to huge lines. On holiday weekends, park managers have had to turn away crowds of vacationers, including visitors to the state who may have traveled hours in cramped station wagons.

Read more.

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WASHINGTON -- President Bush signed a defense spending bill today that would double Virginia-class submarine production to two boats per year, capping a long battle by Connecticut and Rhode Island lawmakers eager to protect home-state jobs.

The lawmakers won House and Senate approval of the measure last week. They have been pressing the Navy for several years to accelerate plans to double production of the high-tech attack submarine. Boosting production could help safeguard jobs at Electric Boat, the submarine-maker with facilities in both states.

The bill includes $588 million to allow the Navy to begin building two boats per year as early as 2010, lawmakers said.

About 7,600 people work at Electric Boat's shipyard in Groton while about 2,000 are employed at the company's Quonset Point facility in Rhode Island. Electric Boat, a division of General Dynamics Corp., and Northrop Grumman Newport News in Virginia together produce one $2.5 billion submarine a year.

The Navy has said it opposes moving up its plans for a second sub before 2012.

Connecticut and Rhode Island officials are concerned that the Navy seems determined to pull back from submarines in favor of other weaponry. They say building one submarine per year is not enough to replace the nation's aging nuclear submarine fleet, a concern that has taken on new urgency because of homeland security issues.

"This is a great day for southeastern Connecticut and an important victory for our nation's defense infrastructure," said Rep. Joe Courtney, D-Conn., whose district includes the U.S. Naval Submarine Base in Groton and the nearby Electric Boat shipyard. "This victory seemed elusive a year ago and just a dream for many years, but I am pleased to be able to announce that this part of the fight is now over."

Courtney spearheaded the House fight for submarine funding along with colleagues from both states.

-- The Associated Press

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PROVIDENCE -- Bank of America today appointed Jake Filoon as market trust executive in Providence, where he will lead the bank's efforts to attract the region's wealthiest depositors.

Filoon will work in Bank of America's U.S. Trust, Bank of America Private Wealth Management division. Bank of America acquired U.S. Trust last November.

Filoon lives in Needham, Mass. He will be based in Providence and report to Robert Garty, northeast regional trust executive.

Before this appointment, Filoon worked for the bank's Global Wealth and Investment Management Products Group.

He began his career at Fleet Bank in 1990, and he has served in "various leadership roles across Bank of America and its predecessor organizations for more than 17 years, including the Private Bank of Bank of America and Columbia Management," according to Bank of America.

Filoon earned a bachelor’s degree from Colby College and a master's of business administration from Babson College.

-- Journal staff writer Benjamin N. Gedan

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Journal Photo/Steve Szydlowski
The front door of the Dunk seems ready for business.

PROVIDENCE -- The Rhode Island Convention Center Authority is making final preparations today for the reopening of the Dunkin' Donuts Center tomorrow after a six-month closure for upgrades.

The first event at the center begins at 7:05 p.m., when the Providence Bruins play the Portland Pirates. There are 12 events scheduled for November, including Providence College basketball games and a performance by the Trans-Siberian Orchestra.

The center's renovation is still a work in progress. But for tomorrow's game, patrons will enter the building through a new lobby and order snacks and beverages at new food courts. Three hundred hockey fans will sit in "test" seats - models of the new seats that will be installed throughout the arena next summer during the final phase of the three-year renovation.

“More than 300 construction workers have been on site daily throughout most of Phase 2. We’ve accomplished a lot of work during the past six months, focusing on areas critical to making the building operational again, including the new life safety systems, mechanical and electrical systems, restrooms, food courts and the lobby area," James P. McCarvill, executive director of the Rhode Island Convention Center Authority, said in a statement today. "Patrons will get a sense of what the final design will look like, but there is still a lot of work to complete."

-- Journal staff writer Benjamin N. Gedan

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Gasoline prices in Rhode Island have jumped another nine cents, passing the $3.00 per gallon mark, according to AAA Southern New England.

AAA’s November 13 survey found self-serve, regular unleaded averaging $3.039 per gallon. The price has climbed 36 cents in the past month, AAA says.

The jump is driven by increased demand for oil in the United States and across the world, according to Robert Murray, senior vice president of corporate affairs for AAA Southern New England. Crude oil recently approached $100 per barrel before dropping back to about $93, he noted.

In addition, Murray said, the country's capacity for refining oil is "maxed out."

"Even if we got more oil, we couldn't refine it," he said.

High prices are apparently starting to affect consumer driving habits and could have an impact on Thanksgiving travel next week and the upcoming Christmas shopping season, he said.

"Not everyone can afford $40 once or twice a week (to fill up). At that level, you start to impact people in the poor category, the working poor, elderly on fixed income, younger people without substantial income," Murray said. "It has to impact on those people because they simply don't have the money."

Continue reading "Gas prices pass $3 per gallon in Ocean State" »

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BOSTON -- The nation's housing slump and credit crunch have left economists gloomier than they were six months ago about New England's growth prospects, but the worst may soon be over.

A regional forecast organization today predicted that New England's economy will begin to break out of its recent run of slow growth starting in the second quarter of next year, but its housing market is at least six months from bottoming out.

The New England Economic Partnership expects the current quarter and next year's first quarter to yield the slowest growth in the value of New England's products and services - a measure known as gross regional product - during a forecast period that runs through 2011.

-- The Associated Press

Continue reading "N.E. economy could break out of slowdown next spring" »

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WASHINGTON -- The House and Senate have approved a defense spending bill that would double Virginia-class submarine production to two boats a year.

It's a victory for Connecticut and Rhode Island congressmen hoping to protect jobs.

Lawmakers have been pressing the Navy for several years to accelerate plans to double production of the high-tech attack submarine.

Such a move would help submarine-maker Electric Boat with facilities in both states.

The measure includes $588 million to allow the Navy to begin building two boats per year as early as 2010 or 2011.

The Senate approved the bill late Thursday night following House passage earlier in the day. Lawmakers say they are hopeful President Bush will endorse the measure.

-- The Associated Press

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WASHINGTON -- The House of Representatives passes a bill to double production of the Virginia-class submarine to two ships a year.

The submarines are produced at shipyards in Rhode Island and Connecticut that employ almost 10,000 people.

The House passed the bill by a 400-15 vote margin. That's more than enough to override a possible veto from President Bush.

Representative Patrick Kennedy says an increase in sub production is critical to the future of the Navy and the Rhode Island economy.

Representative Joe Courtney of Connecticut says the Senate is expected to pass a similar bill within the next week.

The bill could allow the Navy to begin building two ships per year as early as 2010 or 2011.

-- The Associated Press

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PROVIDENCE -- Lottomatica SpA, the parent company of Providence-based GTECH Holdings Corp., brought in $1.8 billion in the first nine months of the year, compared to $831 million in the same period last year, the company announced today.

The acquisition of GTECH last August is primarily responsible for that growth. In the first three quarters of 2006, Lottomatica was credited with GTECH's revenue for only one month.

But company revenue has been slowing since January. Lottomatica brought in $567 million in the third quarter of the year, down from $578 million in the previous quarter and $590 million in January, February and March.

In response, GTECH has been trying to cut personnel costs. Last week, it fired 47 of its Rhode Island employees.

This morning, W. Bruce Turner, the Providence-based chief executive officer of GTECH Holdings Corp. and its parent company, Lottomatica SpA, announced he was resigning his post.

Turner announced his resignation this morning in a conference call from Rome. He will leave GTECH on Jan. 1, 2008. He is being replaced by the chairman of Lottomatica, Lorenzo Pellicioli.

Lottomatica bought GTECH in August 2006 for $4.8 billion.

-- Journal staff writer Benjamin N. Gedan

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Three days and and countless angry comments later, the state's Department of Transportation has decided to open an additional ramp beginning tomorrow.

The ramp will open for the evening commute.

In a statement, the Department said opening the new South Main Street on-ramp to 195 east should ease congestion. The ramp is about than 1,000 feet west and south of the old Wickenden Street on-ramp.

But it's not simple.

The new South Main Street on-ramp to 195 east will only be open Monday through Friday from 3 p.m. to 7 p.m. to help ease the evening traffic jams that quadrupled some commuters' time on the road. All other times, it will be blocked.

When the new ramp is open, the Wickenden Street on-ramp will be closed.

"We will continue to do construction on the new South Main Street ramp when it is not open to traffic,"Jerome F. Williams, RIDOT’s director said in a statement.

In the meantime, the opening, Williams said, “will improve traffic flow and create another way to reduce the congestion that has been occurring at the Wickenden Street on-ramp.”

Posted by Brandie M. Jefferson at 2:55 PM | Permalink | Comments (2)

A blast of confetti rang in the beginning of a $150 million renovation project at the former South Street Power Station.

Representatives from Struever Bros., Eccles and Rouse, the Baltimore-based development company, ceremoniously broke ground on the Dynamo House Project, which will include a hotel, restaurants and office space, alongside a Heritage Harbor Museum.

The museum is expected to be completed by 2010, during the first of the two-phase project.

The limited service Aloft hotel, a division of the W Hotel chain, it will have about 170 rooms, a swimming pool, a fitness room and a rooftop garden.

But more than the roof will be green, as the development company announced today that the building will conform to LEED standards, ensuring some measure of sustainable building practices and efficient energy systems.

For example, the developers hope to install solar panels on the roof to generate power for the electric signs that will be mounted on rebuilt smoke stacks, referring to the building’s past as an industrial (and polluting) power.

Past meets future, dirty meets cleaner.

-- projo.com writer Brandie M. Jefferson, with reports from Journal Staff Writer Gregory Smith

Posted by Brandie M. Jefferson at 2:30 PM | Permalink | Comments (0)

PROVIDENCE -- The state Supreme Court has sided with the Rhode Island Convention Center Authority in a lawsuit that alleged that the independent state agency violated bidding laws in choosing a company to oversee the $80.5-million renovation of the Dunkin’ Donuts Center.

In December 2005, A.F. Lusi Construction Inc. sued the authority, alleging that it failed to comply with a state law that requires public agencies to solicit competitive bids from general contractors who vie to complete a project for the lowest cost.

For the sports arena upgrade, the authority opted to hire a construction manager that would be paid a fixed fee to oversee the construction and recruit subcontractors.

In January 2006, Superior Court Judge Patricia Hurst dismissed Lusi's lawsuit, ruling that the authority was exempt from sections of the state bidding law. The Supreme Court, in an opinion by Chief Justice Frank J. Williams, upheld Hurst’s decision.

-- Journal staff writer Benjamin N. Gedan

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COVENTRY -- Clariant Corp., makers of specialty chemcials, will stop production at its Coventry plant by the end of next year, putting about 120 workers out of jobs, the company announced today.

The company will keep the North American headquarters for its pigments and additives division at the site, the company said.

The company employs at total of about 200 people at the site, including manufacturing, sales, marketing, manufacturing support and technical functions.

The Coventry site makes pigments used in coloring paints, inks, plastics and coatings for the automotive industry.

The company will transfer production of the Coventry plant's products to facilities in Germany and Mexico.

The company says it will offer serverance packages to affected employees. It will also offer them help in finding new jobs and continue insurance coverage.

The decision announced today was part of Clariant's update on strategic initiatives and release of third-quarter financial results. Clariant, based in Switzerland, announced in November 2006 its target of closing approximately 10 percent of its 120 sites worldwide.

Posted by Jack Perry at 10:09 AM | Permalink | Comments (0)

Governor Carcieri weighed on another day of heavy traffic faced by many commuters two days after the opening of the new Iway bridge.

At the least, he said, traffic should be the same as it was before. But last evening's commute, he told John DePetro this morning on WPRO-AM, "Right now it's worse than normal."

After more complaints about the traffic, the state may try to open the Wickenden Street entrance onto the new Iway bridge in four weeks.

The new entrance, which is through the hurricane barrier in India Point Park near the old Shooters night club, was not scheduled to open until the spring.

Work is also underway in India Point Park on the pedestrian overpass and the Wickenden Street exit.

Jerome T. Williams, executive director of the Department of Transportation, also said on the radio that the state is considering re-opening lane on 195 eastbound and whittling the Iway bridge down to one lane.

“It’s not the best option,” he said, but one of several that the department has.

Yesterday Frank Corrao III, deputy chief engineer at the department, said additional signage directing commuters to a new route, and longer white lines extending the lanes on the old section of Route 195 eastbound might also ease congestion.

Williams said this morning that the state will be painting the lane extensions tonight after the after this evening’s commute.

Posted by Brandie M. Jefferson at 8:25 AM | Permalink | Comments (2)

One of Rhode Island largest private employers said this afternoon that it wants to build a new, $60-million headquarters adjacent to its offices in Johnston.

Executives from commercial-property insurer FM Global expect this evening to present their proposal for a four-story building off Central Avenue to the city’s planning officials.

FM Global employs about 800 people at its current headquarters, located on more than 300 acres it owns off the intersection of Central and Atwood Avenues. The company built its headquarters there in 1973 and has since grown to become one of the world’s largest commercial-property insurers. The company employs 4,700 people worldwide and ranks 578 on Fortune magazine’s list of the country’s largest companies.

“We are seeking a new location that will be scalable and grow with our company in the future,” said Shivan S. Subramaniam, FM Global’s chairman and chief executive officer. “Renovating our existing headquarters doesn’t make economic sense so, accordingly, we are exploring all our options.

Saul Kaplan, an economic advisor to Governor Carcieri, applauded FM Global’s stated preference for building its new headquarters in Rhode Island

"The signs are good that they'll continue to be an important part of this landscape," Kaplan said during a speech in Providence.

-- Paul Grimaldi, Journal staff writer

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PROVIDENCE -- The financial services sector employs more than 26,000 Rhode Islanders and generates an average salary of $58,417, far above the state's median wage, according to a new report by the state Economic Development Corporation.

The industry, led by companies such as Citizens Financial Group and Bank of America, is expected to grow by 4,000 jobs over the next seven years, according to the report.

"This is one of our success stories," Saul Kaplan, the executive director of the EDC, said this morning during the 2007 Financial Services Symposium at the Rhode Island Convention Center. "We need to shine a big light on it."

Other panelists, however, were less confident about the future of the industry, saying the state's chronic budget deficits could threaten job growth.

--Journal staff writer Benjamin N. Gedan

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NEW BEDFORD, Mass. -- Michael Bianco Inc. has sold its New Bedford plant, the site of a controversial immigration raid last March, according to Elizabeth Treadup, spokeswoman for New Bedford Mayor Scott W. Lang.

The March 6 raid resulted in the arrest of 361 illegal immigrants and jeopardized the company’s contracts to produce leather goods for the military.

Bianco's president and several top managers were indicted over the summer on charges of conspiring to harbor and hire illegal immigrants.

-- Journal staff writer Benjamin N. Gedan

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Gasoline prices in Rhode Island jumped 18 cents this week, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.949 at the self-service pump, according to AAA's weekly survey.

It's the highest price Rhode Island drivers have ever paid in November, AAA said.

The price has climbed for three straight weeks, driven by an increase in the price of crude oil, which exceeded $96 per barrel last week.

The average price nationally is $3.00.

Posted by Jack Perry at 11:03 AM | Permalink | Comments (0)

PROVIDENCE -- Drugmaker Amgen Inc. is calling for applications for its annual Amgen Award for Science Teaching Excellence award.

The award recognizes "extraordinary science teachers at the K-12 level for their significant impact to science teaching and their students."

The company started giving the awards 17 years ago in an effort to improve science excellence in public and private schools. In all, the company, which operates its largest production facility in West Greenwich, has awarded more than $1.7 million to teachers.

In Rhode Island, four teachers next year will receive a $5,000 award, and their schools will receive a $5,000 grant to help expand science programs, according to Christina Evon, an Amgen spokeswoman.

Twenty seven other teachers, in California, Colorado, Kentucky, Massachusetts, Puerto Rico, Washington, and Canada will also receive awards next year.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 3:01 PM | Permalink | Comments (0)

A staple of dorm life is the subject of the latest food recall.

More than three million pounds of frozen Totino’s and Jeno’s Crisp ‘N Tasty Pizza products may be contaminated with E. Coli.

A joint investigation by the Centers for Disease Control and Prevention and the Tennessee Department of Health trace more than 20 illnesses in 10 states between July and October.

Pepperoni pizzas subject to recall have the establish number "EST. 7750" inside the USDA mark of inspection as well as a "best if used by" date on or before "02 APR 08 WS."

To see exactly which varieties have been recalled, click below.

Continue reading "Recalled: This pizza will make you sick" »

Posted by Brandie M. Jefferson at 12:06 PM | Permalink | Comments (0)

PROVIDENCE -- The state Department of Environmental Management and organizations that promote the hospitality industry are unveiling a survey this morning that attempts to identify the state’s most environmentally responsible hotels.

The survey is part of a campaign to convince hoteliers to voluntarily go “green” to help the city attract tourists and conventioneers concerned about the environmental toll of their business and personal travel.

The initiative, organized in part by the Rhode Island Hospitality and Tourism Association, will be announced this morning at the annual meeting of the Providence Warwick Convention and Visitors Bureau. The meeting is being held at the IMAX Theatre at the Providence Place mall.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 11:21 AM | Permalink | Comments (0)

WOONSOCKET -- CVS Caremark Corp., the nation's largest pharmacy chain, said today its third-quarter profit more than doubled due to same-store sales gains and the use of more generic drugs.

For the quarter ended Sept. 29, net income after preferred dividends jumped to $686.1 million, or 45 cents per share, from $280.7 million, or 33 cents per share in the prior-year quarter.

Analysts polled by Thomson Financial expected earnings of 44 cents per share for the quarter.

CVS said costs associated with its acquisition of Caremark in March hurt earnings by 1 cent per share in the quarter.

The company said its gross margins significantly improved from using generic drugs and implementing "margin-enhancing strategies" in the front of its stores.

Revenue rose 83 percent to $20.50 billion from $11.21 billion in the third quarter of 2006. Analysts predicted revenue of $20.56 million.

Same-store sales, or sales at stores open at least a year, grew 4.3 percent in the company's pharmacy division and 6.5 percent in the front-end segment. Same-store sales is a key indicator of retailer performance since it measures growth at existing locations rather than newly-opened ones.

-- The Associated Press

Posted by Jack Perry at 8:10 AM | Permalink | Comments (1)

PROVIDENCE -- GTECH Holdings Corp. fired about 50 of its Rhode Island employees today, saying its acquisition by Lottomatica SpA last summer had made possible a range of consolidations.

Over all, the company is laying off 125 employees across its global operations, GTECH spokesman Robert Vincent said.

Lottomatica, based in Italy, bought GTECH last August for $4.8 billion.
But it kept W. Bruce Turner as chief executive officer, and the company has maintained a large presence in Rhode Island, where it completed a new high-rise headquarters downtown late last year.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 3:53 PM | Permalink | Comments (2)

WARWICK — Where else can you find more than 15 companies holding on-the-spot interviews? Only at today’s projoJob’s Diversity Career Fair, now through 5 p.m. at the Crowne Plaza, Route 5, in Warwick.

More than 15 companies conducting interviews for job openings. Plus, there are free seminars. Learn how to write an effective résumé, and attend seminars on proper workplace attire and professional presentation.

Click here to see the full list of exhibitors and seminars at the projoJobs Diversity Career Fair.

Posted by Brandie M. Jefferson at 1:16 PM | Permalink | Comments (0)

NORTH KINGSTOWN -- The Quonset Development Corporation is holding a ceremony today to celebrate the start of construction on the controversial Quonset Gateway project, a complex of retail outlets and office buildings at the entrance to the Quonset Business Park.

In March, state planners rejected the original Gateway proposal, criticizing several of its key elements, including the inclusion of two so-called big box stores: a 117,000-square-foot Lowe's and an 89,000-square-foot Kohl's.

Those stores remain part of the project, overseen by the New Boston Development Partners. But the QDC made a range of revisions to win approval last month, adding more office space and partially hiding the large retail stores and parking lots.

The ceremony begins at 4 p.m.

-- Journal staff writer Benjamin N. Gedan

Posted by Brandie M. Jefferson at 1:04 PM | Permalink | Comments (1)

Gasoline prices have increased another five cents this week in Rhode Island, driven by higher crude oil prices, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.769 at the self-service pump, according to AAA's weekly survey.

That's five cents more than last week and nine cents more than it was on October 15.

Prices in Rhode Island remain about nine cents below the national average.

Posted by Jack Perry at 11:11 AM | Permalink | Comments (0)

Attorney General Patrick C. Lynch's office warned today that elderly customers of the former Brooks Pharmacy chain should not give personal information such as Social Security numbers and credit card numbers to telephone callers claiming they work for Ride Aid Corp.

Lynch's office received one complaint of a caller claiming he or she needed the information to ensure the files of Rite Aid, the national drugstore chain that bought Brooks Pharmacy, are updated.

The scam "appears to be the result of an organized effort," Lynch's news release said.

“Based on our preliminary investigation, this is a scheme that is targeting and attempting to extract confidential information from Rhode Island senior citizens who are living in high-rise communities and assisted-living situations,” Lynch said in the statement. “Fortunately, the woman who called us to make a complaint was wary and refused to provide any details" to the caller.

-- projo.com staff writer Michael P. McKinney

Posted by Mike McKinney at 3:54 PM | Permalink | Comments (0)

SOMERSET, Mass. -- A Massachusetts company is building a $25 million facility at the Brayton Point Station to research and test a process for turning coal and other biomass into clean natural gas.

The facility will not generate power. Instead, it will be used to refine the gasification process. Any fuel produced by the testing facility would be delivered to the Brayton Point power station, owned by Dominion.

The town’s other power plant, Somerset Power LLC, is also planning to install a state-of-the-art gasification system, but it uses a different process to create a synthetic gas.

The GreatPoint plant will use a catalyst to create pure methane and, as byproducts, carbon dioxide – a major contributor to global warming – and a small amount of solid “char,” which can be recovered.

-- Journal staff writer C. Eugene Emery

Continue reading "Gasification plant headed to Brayton Point" »

Posted by Brandie M. Jefferson at 6:04 PM | Permalink | Comments (1)

Local entrepreneurs looking for advice on how to grow their businesses may find some of what they need at Rhode Island College Saturday.

Information on tax credits, loans, marketing and other tools for business will be available at Tools to Grow: The Mayor’s Small Business Resource Forum, hosted by Mayor David Cicilline.

The forum is free and will run from 10 a.m. until 3 p.m., at Rhode Island College in Alger Hall.

For a list of agencies and departments who will be represented, click below.

Continue reading "Local business forum at RIC Saturday" »

Posted by Brandie M. Jefferson at 4:32 PM | Permalink | Comments (0)

Rhode Island has been awarded nearly $3 million in federal grants to help update its healthcare systems.

More than $2.7 million will be used to strengthen the Medicaid system and reduce patient error rates using electronic health records, prescribing programs and other support tools.

A second grant of $150,000, will help fund a study on the feasibility of creating a way to identify patients who can’t afford or get health insurance because of preexisting health conditions.

In a statement today, Rep. Patrick Kennedy said health information technology was the key to making the healthcare system deliver the right care to the right people.

“Not only does health IT provide affordable, quality care by streamlining health information and communication,” he said, “it helps save lives and save money while working to ensure that quality health care is available for everyone.”

Posted by Brandie M. Jefferson at 3:32 PM | Permalink | Comments (0)

Great Point Energy, of Cambridge, Mass., this morning announced its plan to build a $25 million coal gasification plant and research center at Brayton Point Power Station in Somerset.

The plant will demonstrate for companies the technique for converting materials like coal and petroleum byproducts into natural gas.

It is expected to create 100 jobs.

Governor Deval Patrick was on hand for this morning's announcement.

-- With reports from Journal staff writer C. Eugene Emery Jr.

Posted by Jack Perry at 11:23 AM | Permalink | Comments (0)

DALLAS -- Belo Corp., owner of The Providence Journal and projo.com, said today its third-quarter profit fell 2 percent on lower advertising sales and costs related to the spinoff of its newspaper group.

The media company reported earnings slipped to $18.8 million, or 18 cents per share, from $19.2 million, or 19 cents per share, in the year-ago period.

Analysts polled by Thomson Financial expected net income of 20 cents per share.

The current period's results included about $2.3 million, or a penny per share, in transaction costs related to the recently announced spinoff of its newspaper group.

Revenue fell 3 percent to $364.3 million, from $376.4 million in the previous year.

Analysts were looking for sales of $367.7 million.

Newspaper group revenue fell 7.8 percent in the quarter, while television group revenue climbed 1.8 percent.

The company said it expects to spin off the newspaper group in the first quarter of 2008.

Belo expects fourth-quarter television group revenue to be down in the mid-single digits due to the absence of strong revenue achieved in the year-ago period in a political season. Newspaper group revenue is expected to be down consistent with the first nine months of the year, adjusting for one less Sunday in the quarter. Operating costs are anticipated to fall below the prior year after adjusting for charges related to the spinoff.

Shares fell 32 cents to $18.21 at the open of trading.

Read the press release.

-- The Associated Press

Posted by Jack Perry at 10:55 AM | Permalink | Comments (0)

Amgen Inc., the world’s biggest biotechnology company, won a jury verdict in a patent-infringement trial that may prevent Roche Holdings AG from selling a competing anemia medicine until 2013.

The federal jury in Boston today upheld the validity of four patents Amgen owns for a means to produce the protein erythropoietin, or EPO, and decided that three of them were infringed. U.S. District Judge William Young previously said the fourth patent was infringed by the Roche drug, Mircera.

Amgen, headquartered in California, has a facility in West Greenwich.

Amgen sued Roche in 2005 to prevent the medicine from entering the U.S. market and competing with Amgen’s Epogen and Aranesp. Those two drugs had combined sales last year of $6.63 billion, or 46 percent of Amgen’s revenue last year. Roche said it expects the U.S. Food and Drug Administration to approve Mircera next month.

During the trial, jurors were told by Amgen lawyers that Roche was trying to use its medical inventions, which had revolutionized the treatment of people with anemia. Amgen scientist Fu-Keon Lin’s work on EPO resulted in “a pioneering breakthrough,” attorney Lloyd Day said in closing arguments.

Leora Ben-Ami, a lawyer for Basel, Switzerland-based Roche, argued that Amgen impermissibly extended its hold on the technology and used invalid patents to stifle competition. The applications were filed in 1984, and one of Lin’s patents expired in 2004. The earliest two patents in the case expire in 2012.

Anemia is a lack of oxygen-carrying red blood cells, a condition that results in weakness and fatigue. The drugs made by Amgen are genetically engineered copies of erythropoietin, a protein made by the kidney that increases the number of red blood cells.

-- Bloomberg News

Continue reading "Amgen wins patent case in federal court" »

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PROVIDENCE -- Shares of Pawtucket-based Hasbro ended the day down one cent in trading today after the toymaker announced its third-quarter profit climbed 62 percent.

Hasbro officials attributed the increase to higher sales led by Transformers and Spider-Man toys and a favorable tax adjustment.

The firm is the world's second-largest toymaker.

Company officials say its business hasn't been hurt by high-profile recalls for lead paint by several other toy companies, including rival Mattel.

The company's earnings beat Wall Street expectations. Excluding a one-time tax adjustment, Hasbro stock earned 78 cents per share. That's 7 cents more than analysts had expected.

Check a quick quote for Hasbro on its stock performance.

-- The Associated Press

Posted by Mike McKinney at 6:50 PM | Permalink | Comments (0)

Fishermen in Rhode Island, Maine and Massachusetts may think their industry is in turmoil, but the federal government disagrees.

Responding to the request of those states’ governors for a declaration of disaster, Bill Hogarth, director of the the National Oceanic and Atmospheric Adminstration’s Marine Fisheries Service, told a telephone news conference this afternoon that “after a lot of review … there is no commercial fishery failure” in New England.

“NOAA believes the New England fisheries are turning the corner,” Hogarth said.

In fact, Hogarth said, “fishing ports in these states are among the nation’s most productive.” And groundfish revenue in Rhode Island ports increased 73 percent from 2005 to 2006, he said.

So when will the restrictions on fishing be eased? Patricia Kunkel, the agency’s Northeast regional administrator, said it is in the middle of a 10-year rebuilding program.

When will fishermen see increased days at sea? Kunkel said that at least initially, they won’t see increased days at sea, but will at some point be allowed to catch increased amounts on those days they’re already allowed to be at sea.

Read the Journal's series on challenges facing the Rhode Island fishing industry.

-- Journal staff writer Paul Davis

Posted by Mike McKinney at 2:50 PM | Permalink | Comments (0)

A week dedicated to minority-owned small businesses is taking off across the country.

Along with the U.S. Small Business Administration, in Rhode Island, Minority Enterprise Development Week is sponsored by the Rhode Island Hispanic American Chamber of Commerce.

Highlights of MED Week include tomorrow’s identity theft protection workshop and Wednesday’s Minority Business Expo.

Small minority businesses throughout the state will be recognized at an awards dinner Wednesday night. And the 2007 Rhode Island Minority Small Business Person of the Year, Cheryl W. Snead, president and CEO of Banneker Industries in North Smithfield, will be honored.

For more information on the events, workshops and networking opportunities, visit the Rhode Island Small Business Association’s Web site.

Posted by Brandie M. Jefferson at 1:11 PM | Permalink | Comments (0)

Driven by higher crude oil prices, gasoline prices in Rhode Island have increased four cents per gallon, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.719 at the self-service pump, according to AAA's weekly survey.

Rhode Island is still 10 cents below the national average.

The price locally was just $2.189 a year ago.

Posted by Jack Perry at 10:30 AM | Permalink | Comments (0)

PAWTUCKET -- Hasbro Inc., the nation's second biggest toymaker, said today its third-quarter profit climbed 62 percent on higher sales led by its Transformers and Marvel brands and a favorable tax adjustment.

The company easily beat analysts' expectations for the quarter.

Earnings surged to $161.6 million, or 95 cents per share, in the three months ended Sept. 30 compared with $99.6 million, or 58 cents per share, in the year-ago period.

Hasbro's shares were up 13 cents to $28.54 in early trading.

-- The Associated Press

Continue reading "Transformers drive Hasbro's 3Q profit rise" »

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WASHINGTON -- Come January, Social Security benefits for nearly 50 million Americans are going up 2.3 percent, the smallest increase in four years. It will mean an extra $24 per month in the average check, the government announced today.

The cost of living adjustment means that the monthly benefit for the typical retired worker in 2008 will go from $1,055 currently to $1,079 next year.

The adjustment, announced by the Social Security Administration, will go to more than 54 million Americans. Nearly 50 million receive Social Security benefits and the rest get Supplemental Security Income payments aimed at helping the poor.

-- Read the full Associated Press story

Posted by Jack Perry at 11:11 AM | Permalink | Comments (0)

Gasoline prices in Rhode Island trickled down another penny this week, according to AAA Southern New England.

The average price for regular, unleaded gasoline is $2.679 per gallon at the self-service pump, according to AAA's weekly survey.

The average price also dropped a penny last week.

That's the lowest it has been since April 2, AAA said.

Rhode Island's average is eight cents below the national average, according to AAA.

Posted by Jack Perry at 10:41 AM | Permalink | Comments (0)

ConAgra Foods is recalling a variety of frozen pot pie products that may be linked to a Salmonella infection, according to the U.S. Department of Agriculture’s Food Safety and Inspection Service.

The brands subject to the recall include Great Value, which is sold at Wal-Mart; Western Family, which is sold at local stores throughout the country, and the following store brands:

Banquet
Albertson’s
Food Lion
Hill Country Fare
Kirkwood
Kroger
Meijer

The recall applies to all varieties of frozen pot pies, including beef, chicken and turkey.

The products were distributed throughout the country, in Puerto Rico and the Caribbean islands.

A Salmonella infection lasts about a week and is typically characterized by diarrhea, fever and abdominal cramps. Most people recover without treatment within a week, but for certain populations, including elderly people and those with compromised immune systems, infections can be deadly.

For more information about the recall, call the USDA's toll-free food-safety hotline: (888)674-6854 or visit the USDA's food safety and recall Web site.

Posted by Brandie M. Jefferson at 8:40 AM | Permalink | Comments (0)

Journal Photo / Sheila Lennon
Providence Police Chief Dean Esserman addresses the BIF-3 summit today.

PROVIDENCE -- Chief Esserman is saying most crime does not get reported, or solved.

"We're anonymous and distant and you don't know who we are... It's a one-way relationship. America has accepted that."

Community policing: "We're in the midst of a quiet revolution. We're thinking of becoming a different type of police force, a department that has moved into the neighborhoods of the community."

"Crime is up nationwide...But crime is down here. ... We have an honest mayor. Let me say that again. We have an honest mayor."

"One day I hope people will call 'the family cop.' "

Posted by Sheila Lennon at 10:21 AM | Permalink | Comments (2)

Wall Street Journal columnist and editor Walt Mossberg will join Mavericks at Work author Bill Taylor in Providence today as hosts of the Business Innovation Factory’s Collaborative Innovation Summit.

The BIF, a nonprofit corporation headquartered in Providence, works with its private and public sector members to develop, test and implement new ideas.

The BIF Web site promises the event will be free of PowerPoint slides, but full of “storytelling” from participants across the spectrum of industries, such as Providence Police Chief Colonel Dean Esserman, and Paul English, who created gethuman.com, a Web site to help callers bypass automated phone systems.

Another prominent participant -- Mark Cuban, billionaire entrepreneur, owner of the Dallas Mavericks, and a blogger himself.

See a list of speakers here.

Even the location of the event could be considered a new idea -- it's being held at the Trinity Repertory Company's theater on Washington Street.

The event, which begins this morning, is already sold out, but projo.com blogger and producer Sheila Lennon will post updates to the projo.com's 7to7 blog and her own Subterranean Homepage News blog throughout the day.

BIF is hosting its own blog as well, at: http://www.businessinnovationfactory.com/weblog/

Posted by Brandie M. Jefferson at 8:40 AM | Permalink | Comments (0)

Gasoline prices in Rhode Island fell by one cent this week to $2.689 for a gallon of regular, unleaded at the self-service pump, according to AAA Southern New England.

Gas prices have fluctuated slightly over the past six weeks, according to AAA, which conducts a weekly survey.

At Labor Day, the price was also $2.689 and has varied only slightly since then, AAA said.

Rhode Island is eight cents below the national average. The local price was $2.279 a year ago.

Posted by Jack Perry at 12:38 PM | Permalink | Comments (0)

PROVIDENCE -- The city is getting all A's -- from two agencies that rate communities' ability to borrow money on the bond market.

Moody’s Investment Services and Standard & Poor’s each gave the city "A" bond ratings, which Mayor David N. Cicilline's office today touted in a news release as a result of "rapidly expanding tax base, strong management practices and progress towards reduced the unfunded pension liability" cited in the agencies' reports.

“We’ve worked hard over the past four-and-a-half years to create a strong business climate for potential investors and to improve the City’s financial health,” Cicilline said in the statement. “Top grades from Wall Street make it easier for the city to borrow money at a lower rate, resulting in significant savings for taxpayers.”

Moody’s gave “A” ratings to two Providence Public Building Authority bonds for Building a Legacy school construction, Series 2007-A ($75 million) and Series 2007-B ($15.6 million). They will finance projects, including renovations to the Hanley Vocational Building and Central High School, building an indoor physical education and sports complex, and to refund outstanding debt.

Moody’s investors reports states “the city’s financial position will continue to benefit from prudent fiscal management and conservative budgeting” and lauded the city’s progress at paying for pensions at 100% of actuarially recommended levels, the mayor's office said, adding that the city won praise for "responsibly maintaining cash reserves for the third consecutive year."

The mayor's office characterized Standard & Poor’s report as praising Providence’s position "as an economic driver for Rhode Island."

-- projo.com staff writer Michael P. McKinney

Posted by Mike McKinney at 3:18 PM | Permalink | Comments (0)

PROVIDENCE -- The state launched a campaign this morning to promote a new health care plan designed to encourage small businesses to cover their employees.

State officials say the plan will reduce premium costs by 20 percent over existing options, savings made possible by commitments from participants to pursue “wellness” initiatives, such as quitting smoking and eating healthier foods.

“There is no single issue that comes up more strongly and consistently than access to affordable health care,” Saul Kaplan, the head of the state Economic Development Corporation, said today. “It is very important that we tackle this issue.”

--Journal Staff Writer Benjamin N. Gedan

Posted by Jack Perry at 12:06 PM | Permalink | Comments (0)

Verizon Communications is seeking permission to expanding its FiOS cable television service in 10 more Rhode Island communities, mostly in the northern section of the state, the company said today.

Verizon filed applications with state regulators to provide the service to the 115,000 households in cable service areas 1 and 4. The communities in those areas are Burrillville, Central Falls, Cumberland, East Providence, Glocester, Lincoln, North Smithfield, Pawtucket, Smithfield and Woonsocket.

The applications were made with the state’s Division of Public Utilities and Carriers, which grants cable TV franchises, as long as a prospective provider is fit, willing, and technically and financially qualified to deliver cable TV service.

Assuming it gets that approval, Verizon said it expects to begin offering its service in those communities next year.

The company is already offering its FiOS TV service to about 80,000 households in service area 6, which includes Coventry, East Greenwich, Exeter, North Kingstown, Warwick, West Greenwich and West Warwick.

Verizon is awaiting state approval to offer FiOS in service areas 2, 3, and 8, which includes 158,000 households in Charlestown, Cranston, Foster, Hopkinton, Johnston, Narragansett, North Providence, Providence, Richmond, Scituate, South Kingstown and Westerly. The company expects to begin offering the service in these three service areas by the end of this year, Verizon said.

Altogether, Verizon has permission, or is seeking permission, to provide service in 29 of the state’s 39 cities and towns. The company competes directly with Cox Communications in those communities.

Posted by Tim Barmann at 6:37 PM | Permalink | Comments (0)

National Grid announced this afternoon it has dropped its pursuit of establishing a major LNG marine terminal in Providence.

The decision ends a years-long effort by the company's KeySpan subsidiary to re-vamp its existing storage facility on the Providence River into a terminal that would receive LNG deliveries by tankers. And it is apparently a victory for the citizens, organizations and public officials who fought the proposal.

Though KeySpan's proposal was rejected by the Federal Energy Regulatory Commission in 2005, the company had appealed that decision in federal court. The company was scheduled to make oral arguments on Oct. 26 at the federal appeals court in Washington, D.C.

In a brief statement, National Grid said it met with Attorney General Patrick C. Lynch, who has been among the most vocal opponents of the KeySpan proposal.

After that meeting, the company said it announced it was dropping its appeal.

"National Grid announced that it has dropped its appeal of a Federal Energy Regulatory Commission (FERC) decision not to approve proposed changes to the company’s Field’s Point Liquefied Natural Gas (LNG) facility in Providence," the statement says.

"National Grid Executive Vice President of Business Development, Steve Zelkowitz, advised the Attorney General that the company would continue to evaluate natural gas needs in the region," the statement said.

" The company believes LNG will continue to play a critical role in both energy reliability and price. National Grid committed to work with public officials prior to any future decision impacting the facility."

The statement did not say why the company had decided to drop its appeal.

Lynch issued his own statement in which he hailed National Grid's decision. “The public safety issues surrounding this plan were always clear to me," Lynch said.

Those issues, he said "were confirmed by the experts I retained, including Richard A. Clarke, who prepared an extensive report detailing the perils of locating an LNG terminal in an urban area.”

Lynch added, “I fully recognize the need to address our region’s energy needs. I am confident that National Grid, which has a history as one of our state’s most responsible corporate citizens, will continue to play a leading role as government, business, and other interested parties work together to find safe, efficient, environmentally responsible, and economical solutions to meeting those demands.”

Posted by Tim Barmann at 12:27 PM | Permalink | Comments (0)

PROVIDENCE -- The U.S. Supreme Court on today rejected an appeal challenging a 3-year-old Rhode Island law that bans liquor sales by franchise stores.

Wine & Spirits Retailers, a company that had struck franchise agreements with several stores in the state, filed a federal lawsuit in 2004 arguing the law was unconstitutional. The company said the ban violated its right to free speech and free association.

Though state authorities enacted the law in 2004, they delayed enforcing it for two years while a legal challenge was pending. Before the nation's highest court was asked to weigh in, a federal appeals court declined to block the law from taking effect.

"At any step of the way, a court could basically invalidate the law, so we took a very measured approach to our enforcement," said Richard Berstein, a lawyer for the state Department of Business Regulation, which is responsible for enforcing the law.

The law broadened an existing ban on liquor chain stores by preventing business owners from using names that suggest their store is part of a franchise, which could give the stores a competitive advantage if consumers assumed they have a wider selection.

Berstein said the Supreme Court's decision meant the department would continue enforcing the law.

Attorneys for both sides did not immediately return calls for comment today.

Posted by Jack Perry at 2:08 PM | Permalink | Comments (0)

DALLAS -- Belo Corp., the owner of The Providence Journal, says it will spin off its newspaper division to create separate newspaper and television companies.

The new company, to be called A.H. Belo Corp., will also own the Dallas Morning News and The Press-Enterprise of Riverside, Calif.

The company said A. H. Belo will also own and manage the various Web sites associated with these properties, as well as certain niche products and direct mail and commercial printing businesses.

A. H. Belo's combined newspaper and related online businesses reach a total audience of 3.7 million people. These businesses currently have annual revenues of approximately $750 million and about 3,800 employees.

Robert W. Decherd, currently chairman and chief executive officer of Belo Corp., will become chairman, president and CEO of A. H. Belo, and non-executive chairman of Belo Corp.

A. H. Belo will be debt-free upon completion of the spin-off.

The Dallas-based media company says the spin-off will be made through a tax-free distribution of new A.H. Belo shares to Belo Corporation shareholders in early 2008. Belo says it expects to spin-off to be completed in the first quarter of 2008.

"As a separate public company focused exclusively on newspapers and online news and information," Decherd said, "A. H. Belo will be better able to respond to the diverse and rapidly-evolving needs of customers in the local markets it serves, and with no debt, the company will have the financial flexibility to compete in this challenging operating environment and return cash to shareholders through an attractive recurring annual dividend yield."

At the effective date of the spin-off, the company's release today said Belo Corp., with approximately 3,200 employees, will be the "largest pure-play publicly-traded television station company in the nation."

By late morning, Belo stock had gone up $2.64, to $20 per share. Check the latest price here.

Read the dallasnews.com report on the decision.

--- With reports from the Associated Press

Continue reading "Update: Belo to split into TV, newspaper companies" »

Posted by Peter Phipps at 11:45 AM | Permalink | Comments (0)

Attorney General Patrick C. Lynch today praised an appeals board's denial of what he called Dominion Energy Brayton Point LLC’s request to "delay compliance" with permit requirements at Brayton Point Station in Somerset, Mass.

In a news release this evening, Lynch's office said Brayton Point's operation "under an inadequate 15-year-old permit" has been causing "significant violations" of Rhode Island water quality requirements.

The decision, dated yesterday, was by the Environmental Appeals Board, an administrative court of the federal Environmental Protection Agency.

Lynch said in his statement that the decision "gives us hope that Dominion will resist pursuing further legal action and implement the technology that must be employed if Mount Hope Bay — two-thirds of which is within Rhode Island — is ever to recover from the harm inflicted by the operation of Brayton Point Power Station.”

On Oct. 6, 2003, the Environmental Protection Agency's New England Office issued a permit requiring Brayton Point’s operator to lower the plant’s thermal output -- how much water can be discharged and at what temperature it can be discharged -- and requires the operator to reduce its intake of water from the bay.

The plant would have to install what are known as closed-cycle cooling towers in its four coal-and oil-fired electricity-generating units, which Lynch's office said would reduce the plant’s intake of water from about 1 billion gallons to 56 million gallons per day.

The plant’s owners appealed the permit.

The Environmental Appeals Board denied Brayton Point Station’s request for a second review, so terms of the 2003 permit must be carried out immediately, Lynch's office said.

However, Lynch's release noted the company may seek an appeal with the U.S. Court of Appeals, First Circuit, in Boston.

-- projo.com staff writer Michael P. McKinney

Posted by Mike McKinney at 6:48 PM | Permalink | Comments (0)

PROVIDENCE -- Textron Financial Corporation, a subsidiary of Providence-based Textron Inc., has agreed to provide loans to Westgate Resorts to pay for the $400-million Planet Hollywood Towers development in Las Vegas.

The 50-story residential development, on the Las Vegas Strip, is expected to open in two years. It will give owners access to the Planet Hollywood Resort & Casino.

“The closing of this deal is testament to the financial strength and the industry and product expertise Textron Financial offers to all our customers,” Jay Carter, president of Textron Financial, said in a statement today.

The loan is the largest ever by Textron Financial's Resort Finance Division, established in 1990.

Westgate Resorts, based in Florida, is affiliated with Central Florida Investments Inc.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 6:00 PM | Permalink | Comments (0)

Journal photo / John Freidah
Sharon Amaral and Joe Chaves of Newport watch the arrival of the Queen Mary 2 when it stopped in Newport in September 2004.

It’s the biggest thing in Newport this weekend.

The Queen Mary 2 will be making a stop in Rhode Island during its “Splendours of Fall” cruise which begins in New York and visits Boston, Halifax, Quebec City, and , Bar Harbor, Maine.

The 1,132-foot-long ship took just under 4 years to build at an estimated cost of $800 million.

It's expected to arrive at 8 a.m. tomorrow and depart for Boston at 5.

A document titled “Queen Mary 2 A Ship of Superlatives,” uses comparisons to make the magnitude of the ship comprehensible. For instance, on the ship, “enough toilet tissue is used to wrap the earth almost five times.”

Whether that's a good thing or not, the ship is certainly something to see.

And if you don’t get a chance to see the ship, you may be able to hear it.

The QM2’s whistle can be heard up to 10 miles away.

Posted by Brandie M. Jefferson at 8:29 AM | Permalink | Comments (0)

WASHINGTON -- A Cumberland company recalls children's necklaces made in China because they contain dangerous levels of lead.

The 850 Spinning Wheel Necklace necklaces were produced by Rhode Island Novelty. They were sold nationwide from November 2006 through May 2007.

Under current regulations, children's products should not have more than .06 percent lead.

The government warns parents to make sure children are not playing or using any of the recalled products.

For more information, call the company 800-528-5599 or visit its Web site at www.rinovelty.com.

-- The Associated Press

Posted by Jack Perry at 7:02 AM | Permalink | Comments (0)

Blue Cross & Blue Shield of Rhode Island said today it is cutting staff and eliminating "several programs and functions" to lower its operating expenses.

In a statement, the nonprofit corporation said it's "under increasing competitive pressure to provide high-quality health insurance for less. To retain our market share and to ensure the long-term viability and success of the company -- we must operate at the lowest reasonable cost."

The statement made no mention of how many staff members are being cut or which programs.

"Out of respect and sensitivity to those individuals who are directly impacted, it would be inappropriate for us to provide any more information," the statement says. "We are making every effort to treat those individuals with the dignity and respect they deserve."

-- projo.com staff writer Michael P. McKinney

Posted by Mike McKinney at 1:35 PM | Permalink | Comments (1)

PROVIDENCE -- Edgar Velásquez wanted his day in court, and now he will get it.

Velásquez, a Mexican man who slashed his face open with a chainsaw while working for the owner of a Warwick tree service, returned to Rhode Island today on a humanitarian permit issued by the U.S. government, so he can to pursue a worker’s compensation case against William J. Gorman Jr, his former employer.

Velásquez had been living in the country illegally and was deported last year after being picked up by immigration agents outside the J. Joseph Garrahy courthouse on the day of his comp hearing. By law, Velásquez is entitled to pursue a workers’ compensation claim, irregardless of his undocumented status.

“I am not afraid, I’m going to tell the truth as I lived it … of what happened on the day of the accident and how I was treated by Mr. Gorman,” said Velasquez in an interview this afternoon.

-- Journal staff writer Karen Lee Ziner

Posted by Mike McKinney at 4:41 PM | Permalink | Comments (0)

Rhode Island has gotten a $1-million federal grant for a science curriculum that stresses teaching physics to high schoolers, Governor Carcieri's office announced today.

It changes the order of subjects taught to physics in 9th grade, chemistry in 10th grade and biology in 11th grade. (Current curriculum teaches biology, followed by chemistry and physics -- an order of subjects the governor's office says dates to 1893).

The governor's office says at least six high schools are using the Physics First program: Portsmouth, Cranston West, Lincoln, Mount Pleasant, East Providence, and Woonsocket.

Governor Carcieri will hold a news conference at 10 a.m. tomorrow at Portsmouth High School to announce the grant, from the National Science Foundation. Robert Tinker of the Concord Consortium, the grant's main author, will attend along with with Portsmouth High School principal Robert Littlefield, state Education Commissioner Peter McWalters, and Jeffrey Schoonover, Portsmouth Science Department chairman.

-- projo.com staff writer Michael P. McKinney

Posted by Mike McKinney at 11:44 AM | Permalink | Comments (3)

Pharmaceutical giant Amgen is laying off as many as 450 of its Rhode Island employees, the company announced late this afternoon.

The employees will leave the company by early November.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 6:01 PM | Permalink | Comments (2)

Gasoline prices in Rhode Island have increased for the first time in ten weeks, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.679 at the self-service pump, according to AAA's weekly survey.

That's two cents higher than last week, AAA says.

Rhode Island is still 13 cents below the national average.

Posted by Jack Perry at 10:20 AM | Permalink | Comments (0)

Belo Corp., which owns the Providence Journal and newspapers and television stations across the country, announced today that it had reached partnership agreement with Mochila, an online content market designed to facilitate news syndication.

Belo newspapers and TV stations will syndicate its content through Mochila and tap into Mochila's content, which consists of millions of articles and photographs and video generated by its other partners.

Belo, in its press release, said it has also invested in Mochila "to help drive Mochila's future growth."

Belo will participate in Mochila's AdMatch program, creating new revenue opportunities. The Mochila AdMatch program allows members to acquire content for free and syndicate content to other publishers while earning a share of advertising revenue.

"At Belo, we continue to seek out innovative business investment opportunities designed to broaden the Company's tools and services we offer our online users and advertisers," said Skip Cass, executive vice president in charge of Belo's business development team. "This strategic partnership with Mochila increases the value of Belo's content and also provides our audiences with a richer online experience across our brands."

"This partnership is further validation of the Mochila model," said Mochila CEO Keith McAllister. "We look forward to helping Belo capitalize on new opportunities, while we benefit from Belo's experience and expertise to help us expand the Mochila marketplace."

-- projo.com staff writer Brandie M. Jefferson

Posted by Brandie M. Jefferson at 10:12 AM | Permalink | Comments (0)

WASHINGTON -- A Rhode Islander was among students from across the country who rallied on Capitol Hill today for a more equal Farm Bill.

Dorie Obertello, a Westerly High School graduate who attends Vassar College, called for a more level playing field for small farmers.

The omnibus bill under consideration this year reviews agricultural programs, from support for farmers to food stamps.

Watch the full interview, by Belo Capital Bureau reporter Katie Greenan.

Posted by Andrea Panciera at 6:30 PM | Permalink | Comments (0)

FALL RIVER, Mass. -- Victor Innovatex Inc., a textile manufacturer in Quebec, says it has acquired the bankrupt Quaker Fabric Corp.'s buildings and equipment and plans to hire at least 100 people as it reopens Quaker's shuttered plant in Fall River. Quaker fired about 900 people, including 62 Rhode Island residents, when it closed in July.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 4:28 PM | Permalink | Comments (0)

It was a day of questions and few answers for the Governor’s wind stakeholder group, which met this morning at the University of Rhode Island's Narragansett Bay Campus.

The group is charged with identifying which of 11 potential sites would be best to place a state-owned wind farm. Governor Carcieri has proposed building a large wind farm off the coast of Rhode Island that would generate 15 percent of the state's electricity usage.

At their meeting, the stakeholders were asked to come up with a comprehensive list of questions they would need answered in order to help make their recommendation.

The questions proposed covered practically all aspects of the project, from what will the entire costs for each of the proposed sites be, to whether the state might be able to sell advertising space on the wind turbines.

The group was promised answers to the questions over the next month, in time for the next meeting in mid-October. The Governor’s energy adviser hopes the group will come to a consensus at that meeting and recommend a site.

That site would then move to the permitting process, which would involve public hearings and regulatory approvals from various state agencies. If the project is located in federal waters, it would require federal approvals as well.

Posted by Tim Barmann at 3:50 PM | Permalink | Comments (0)

A revised proposal to develop a gateway to the Quonset Business Park was approved this morning by the Statewide Planning Commission. The previous version of the plan to be submitted was rejected 11 to 1 by the commission less than six months ago.

The new design substantially increases the amount of office space and attempts to shield visitors from the retail outlets that have provoked the most pointed criticism.

Those shops -- a 117,000-square-foot Lowe's and an 89,000-square-foot Kohl's -- were not excised from the project, despite protests from North Kingstown officials and objections from state planners.

The new plan was endorsed by Governor Carcieri, the Quonset Development Board of Directors and the Rhode Island Economic Development Corporation.

The 73-acre Quonset Gateway will host office space, retail space and a 160-room Hilton Hampton Inn hotel. Non-retail space and a community meeting space and fitness and recreation center – a suggestion put forth by high school students during the planning phase -- are new additions to the plan.

In addition to criticizing the large retail outlets, state planners had also objected to what they described as a lack of density on the property.

A State Planning Council review found that 40 percent of the site had been reserved for roadways and surface parking. Of the 1,700 projected new jobs, more than half were to be in the retail and hospitality sectors and offer relatively low wages.

Now, parking lots will be shifted behind buildings, creating more of a village atmosphere, according to Steven J. King, chief operating officer for the QDC.

"The whole feel of it has changed," North Kingstown Town Manager Michael E. Embury said. "We look at it as a 180-degree different proposal.”

In a statement, Carcieri said he believed the Gateway would lead to job growth and an improved local economy. “We can be proud of our vision for development at Quonset,” he said, “and for the hard work we have put into substantially revising the project over the last several months.”

CORRECTION: An earlier version of this post incorrectly reported the size of the Lowe's store, giving a larger figure that also included storage and garden space.

Posted by Brandie M. Jefferson at 1:16 PM | Permalink | Comments (1)

Pearson Composites, a maker of fiberglass sailboats and powerboats, is facing a proposed penalty of $264,349 for violations of the federal Clean Air Act.

The violations were cited in a recent Environmental Protection Agency complaint, which follows up on an administrative order issued to the Warrne company last December, the EPA said today.

EPA’s complaint claims Pearson violated five provisions of a federal hazardous air pollutant standard for boat manufacturing and two provisions of the company’s state-issued clean air operating permit. These violations include:

- Emission standards for Pearson’s fiberglass open molding operation, carpet adhesives and wood finishing wash coats;
- Work practice standards for inspections and for control equipment monitoring; and
- Reporting requirements by failing to timely submit required compliance notifications.

Pearson has reported that it corrected all of these violations as of mid-February of this year, the EPA said.

The proposed fine is designed to insure that Pearson will continue to comply with standards, according to the EPA.

Pearson’s manufacturing processes, which involve various chemicals, release significant quantities of hazardous air pollutants, primarily styrene, the EPA said.

Posted by Andrea Panciera at 12:31 PM | Permalink | Comments (0)

NORTH KINGSTOWN -- U.S. Sen. Jack Reed today said the state will get $5.4 million in federal money to build a train station in Wickford.

The station is part of a proposed rail line that, in Rhode Island, will connect Providence, T.F. Green Airport and North and South Kingstown.

DOT recently announced plans to start work on a $222.5-million transportation hub at the airport. DOT officials said they have reached a preliminary agreement with Amtrak to allow MBTA commuter trains to connect Warwick to Boston.

The station won’t resemble the historic building in nearby Kingston.

Instead, the Wickford Junction Station will feature a parking garage, a platform and a waiting area inside the garage, said Stephen A. Devine, chief of intermodal planning for the state Department of Transportation.

Because the tracks are elevated, the garage will be partially hidden by a berm.

“This is the future of mass transit,” said Devine.

The state hopes to purchase land near Wal-Mart and a Staples store from the developer, Wickford Junction Associates. The two stores are part of a retail complex off Ten Rod Road.

According to Reed, the state will get more than $2 million to buy the land for the garage. Another $1.8 million will be spent on the design and engineering, and $1.2 million will be used to buy tracks.

Officials aren’t sure when construction on the Wickford station will begin, “but our ultimate goal to get the trains running by mid 2010,” Devine said.

“We still need to acquire some land from Amtrak” and the state is still negotiating a price with the owners of Wickford Junction, he said. “It’s an ideal site, with immediate access to Route 4,” Devine said.

-- Journal staff writer Paul Davis

Continue reading "Reed announces $5.4 million for train station" »

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PROVIDENCE -- Edwin G. Foulke Jr., the head of the Occupational Safety and Health Administration, was in Providence today to sign a "site safety partnership" agreement with the Consigli Construction Co. Inc., the Maine company that is renovating the Cranston Street Armory.

As part of the agreement, Consigli pledges to "enhance safe and healthful conditions for employees" working at the site, according to OSHA.
Foulke was appointed by President Bush in 2005.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 5:33 PM | Permalink | Comments (0)

PALMER, Mass. -- Developer Leon Dragone envisions a shining hotel and casino complex on a hill just off the Massachusetts Turnpike, a tourist destination that will bring jobs and money to the struggling economy of western Massachusetts.

Kathleen Norbut, a member of the Board of Selectmen in neighboring Monson, sees a behemoth that will put an unbearable burden on roads, public safety, schools and housing and will change forever her quiet New England town.

Gov. Deval Patrick has proposed licensing three resort casinos in Massachusetts - one specifically in the western part of the state. Though his plan needs legislative approval, and it could be years before any casino would be built, developers already are eyeing possible sites as towns debate whether they should embrace gambling.

"We do not have the infrastructure to support something of that magnitude," Norbut said. "The town of Palmer doesn't even have a full-time board of health. The average taxpayer, the working middle class, like myself, I don't want to be supporting the profits that will be going to the casino owners."

Dragone's Northeast Realty and the Mohegan Indian tribe, which runs the Mohegan Sun Casino in Uncasville, Conn., want to build a $1 billion resort casino on a 150-acre wooded site in Palmer, just 50 yards from the current turnpike toll booths. Preliminary plans envision a gaming floor with up to 4,000 slot machines and table games, a 600-room.

Palmer is not the only town where a casino might go. Several developers are expected to compete with Northeast Realty for the right to build the western Massachusetts casino.

Chicopee Mayor Michael Bissonnette said he knew of three developers interested in putting the gaming facility in his town, at a site near the turnpike and the Westover Metropolitan Airport.

Read the full Associated Press story ...

Your Turn: What impact would three Mass. casinos have on R.I. gambling?

Posted by Andrea Panciera at 9:25 AM | Permalink | Comments (0)

AP photo
Stock markets around the world are reacting positively to the surge in U.S. stock exchanges yesterday. Above, employees of the Korea Stock Exchange look at an electronic stock board in Seoul, South Korea, where the Korea Composite Stock Price Index rose 64.04 points, or 3.5 percent, to close at 1,902.65, its third-biggest point gain ever.

The Fed did it -- cut that key interest rate. And the stock market soared on the news.

What might this all mean to the economic picture in Rhode Island?

Earlier this week, The Journal asked several local financial experts their opinions. See what they had to say in the resulting story. Hint: They don't all agree.

Meanwhile, you can keep track of your investments through projo.com's personal portfolio tools.

And see what happens today when the market re-opens at 9:30 a.m.

Today also brings brings new economic data, which investors will be parsing to determine how the economy is faring amid the current credit climate and volatile stock market.

The Labor Department's August consumer price index came out a few minutes ago, showing that the prices fell for the first time in 10 months, as another big drop in energy costs offset higher food prices.

And the Commerce Department will report on new home construction. The data is anticipated to show that the annual rate of construction of new homes and apartments in August fell since July.

Get the latest here.

Posted by Andrea Panciera at 9:00 AM | Permalink | Comments (0)

PAWTUCKET -- Vitrus Inc., a manufacturer of special electrical connectors in Pawtucket, is laying off most of its staff, the company acknowledged today.

Vitrus employs about 40 people in its plant on Main Street. It is owned by the Tecumseh Products Co., based in Tecumseh, Mich.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 4:46 PM | Permalink | Comments (0)

The Rhode Island treasurer has joined a group of more than 20 investors, state officials and environmental advocacy groups to ask the regulating authority of the U.S. securities market to compel publicly traded companies to disclose what financial risks they face from climate change.

Frank Caprio and 21 other petitioners, including California’s treasurer and New York’s Attorney General Andrew Cuomo, today filed a petition asking the Securities and Exchange Commission to begin closely “scrutinizing the adequacy of registrants’ climate disclosures,” under existing law.

The petition says the risks of climate change can affect corporate performance in a number of different ways from basic physical damage of facilities, to presenting opportunities for climate-friendly services and products.

In addition, the petition states that under current law, companies may be required to disclose financial risks and opportunities associated with present or probable greenhouse gas regulation and any legal proceedings related to climate change.

Continue reading "R.I. treasurer joins bid to disclose climate risks" »

Posted by Brandie M. Jefferson at 11:51 AM | Permalink | Comments (0)

BOSTON -- Gov. Deval Patrick proposed licensing three full-scale casinos in Massachusetts today, in a move he said would generate billions of dollars in revenue and thousands of jobs.

Under the plan, the casinos would be distributed in the western, southeastern and greater metropolitan Boston regions of the state. The licenses would be put up for bid in a competitive process open to Indian tribes and casino companies.

But, he said, he did not know if bids from tribes would be given special weight. Bids also would not be limited to Massachusetts entities.

The Legislature must approve expanding legalized gambling beyond the state lottery and four racetracks.

Patrick said the casinos would generate more than $2 billion annually and create "good jobs at good wages."

"With that kind of economic benefit, we cannot reject the gaming industry out of hand," he said.

Some of the revenues would go to transportation and property tax relief, Patrick said. He also said trust funds would be created to deal with public health issues linked to gambling and "community mitigation" -- to help towns offset the costs of hosting a casino.

Patrick also emphasized the casinos would be part of a wider economic development plan.

Two of the largest casinos in the country are being operated by Indian tribes in eastern Connecticut, while the Narragansetts continue to press for a casino in Rhode Island, where Governor Carcieri remains strongly opposed.

-- With reports from Journal staff writer Paul Grimaldi

More from the Associated Press ...

Posted by Andrea Panciera at 1:47 PM | Permalink | Comments (0)

Gasoline prices in Rhode Island have dropped this week, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.659 at the self-service pump, down two cents from last week, according to AAA's weekly survey.

The price of gasoline has dropped eight of the nine past weeks, according to AAA. It was unchanged last week.

Posted by Jack Perry at 10:12 AM | Permalink | Comments (0)

Journal photo / Mary Murphy
The Economic Policy Council, a group of business, academic and political leaders that advises the governor, released the "Next Ten Ways" it believes Rhode Island can improve its economy at its quarterly meeting today. Here, council member Kip Bergstrom addresses the group. The council stressed that the state must solve the problems of water scarcity to hasten the pace of job creation. Its list also included goals for altering the state's public transportation network and high-school and adult education.

Posted by Jack Perry at 3:15 PM | Permalink | Comments (0)

WICHITA, Kan. -- Cessna Aircraft officials say they've reached a tentative three-year agreement with their machinists union.

Cessna is a unit of Rhode Island-based Textron.

The negotiating committee for the International Association of Machinists and Aerospace Workers are recommending workers approve the agreement when they vote Saturday. The union represents 5,400 hourly workers.

Union representatives couldn't be immediately reached for comment.

According to the union's Web site, Cessna's offer calls for a 5 percent wage increase the first year and a 4 percent increase in the second and third year. There's also a $3,000 lump-sum bonus.

Under the deal, insurance premiums for all three health care plans remain the same. Pensions would increase. Workers also will get more time off.

-- The Associated Press

Posted by Mike McKinney at 5:54 PM | Permalink | Comments (0)

Taking aim at the City Plan Commission’s vision of the Providence waterfront, a group of Providence Port-area businesses, are announcing the formation of the Providence Working Waterfront Alliance.

The new comprehensive plan, which the commission approved on Aug. 23, restricts heavy industrial business south of Thurbers Avenue and uses new zoning regulations to encourage mixed-use development.

In a statement from the new group -- which includes representatives from companies such as J. Goodison Company, Promet Marine Services and Northeast Marine Pilots -- Captain E. Howard McVay, Jr. said although residential development along the port could increase property tax revenues, he cautioned “this gentrification of Providence’s working waterfront is shortsighted.”

The group plans to meet with city officials and the public to share the history of the industrial port and explain why it thinks mixed-use development is a bad economic move.

Posted by Brandie M. Jefferson at 10:20 AM | Permalink | Comments (0)

MONTPELIER, Vt. -- Vermont and several other states including Rhode Island scored a victory in their battle to get automakers to comply with rules aimed at reducing global warming.

A federal judge in Vermont has ruled that states can regulate greenhouse gas emissions from vehicles.

The judge rejected automaker claims that federal law overrides state rules and that technology can't be developed to meet them.

During a trial, auto industry executives said that the regulations would not stop global warming but would impose devastating new costs on the industry. Besides Rhode Island, the rules have been adopted in 11 other states and are pending in three others.

Automakers may appeal the decision. A similar lawsuit is pending in Rhode Island.

-- The Associated Press

Posted by Mike McKinney at 6:54 PM | Permalink | Comments (0)

Large employers in Rhode Island have recently been restricting which of their employees qualify for health insurance, and these moves are the chief reason why the number of uninsured people has been rising steadily since 1999.

The finding, in a first-of-its-kind report today from the state health insurance commissioner, casts a new light on the debate over the uninsured, which has focused on helping small businesses that can’t afford premiums.

The new study shifts the spotlight to large businesses, which employ about two-thirds of the work force. It found that these employers (with more than 50 employees) continue to offer health insurance at the same rate as in the past, but they have been controlling premium costs by limiting eligibility. For example, employees might not be eligible if they work fewer than a certain number of hours or if they are newly hired.

As a result, Rhode Island compares poorly with Massachusetts and the nation in terms of employer-sponsored health insurance. In 2004, 69 percent of Rhode Island workers were eligible for insurance through their employer, compared with 77 percent in Massachusetts and 78 percent nationally.

Now, about 1 in 8 Rhode Islanders under age 65 has no health insurance. At the beginning of the century, less than 1 in 10 were uninsured. If this trend continues, the report estimates that 1 in 5 people will be uninsured by 2010.

Studies have shown that uninsured people are less likely to go to the doctor or dentist, have poorer health, and impose considerable costs on the hospitals that care for them when they fall ill. Most uninsured people have jobs and low incomes.

Today’s report from the Office of the Health Insurance Commissioner is the first statistical portrait of who is uninsured in Rhode Island, and why. It combines data from the U.S. Census Bureau with the results of the Rhode Island Health Interview Survey, a telephone survey last conducted in 2004.

PDF: Read the full report

Your turn: Has your employer changed your health insurance coverage recently? How?

-- Journal staff writer Felice J. Freyer

Posted by Andrea Panciera at 12:07 PM | Permalink | Comments (0)

SOUTH KINGSTOWN -- The University of Rhode Island announced today it's coming up with what it called the world's first graduate degree combining a master's of business administration with a master's in ocean and climate science.

In a news release, the university said the international business community "will likely bear the brunt of the challenge to find ways to reduce the world’s greenhouse gas emissions for years to come."

It's a two-year dual degree, which URI aims to offer in fall 2008.

“Climate change represents a major challenge and opportunity to a broad range of businesses and the global economy. Climate change is happening, and businesses need to adapt to this change,” S. Bradley Moran, a URI oceanography professor, Moran said in the statement.

The degree is aimed at students with undergraduate training in science, environmental science or engineering who want to get management skills and broaden job opportunities.

Posted by Mike McKinney at 11:59 AM | Permalink | Comments (0)

Large employers in Rhode Island have recently been restricting which of their employees qualify for health insurance, and these moves are the chief reason why the number of uninsured people has been rising steadily since 1999.

The finding, in a first-of-its-kind report today from the state health insurance commissioner, casts a new light on the debate over the uninsured, which has focused on helping small businesses that can’t afford premiums.

The new study shifts the spotlight to large businesses, which employ about two-thirds of the work force. It found that these employers (with more than 50 employees) continue to offer health insurance at the same rate as in the past, but they have been controlling premium costs by limiting eligibility. For example, employees might not be eligible if they work fewer than a certain number of hours or if they are newly hired.

As a result, Rhode Island compares poorly with Massachusetts and the nation in terms of employer-sponsored health insurance. In 2004, 69 percent of Rhode Island workers were eligible for insurance through their employer, compared with 77 percent in Massachusetts and 78 percent nationally.

Now, about 1 in 8 Rhode Islanders under age 65 has no health insurance. At the beginning of the century, less than 1 in 10 were uninsured. If this trend continues, the report estimates that 1 in 5 people will be uninsured by 2010.

-- Journal staff writer Felice J. Freyer

Continue reading "Restrictions by big employers boost rolls of unisured" »

Posted by Brandie M. Jefferson at 11:52 AM | Permalink | Comments (0)

SPRINGFIELD, Ohio -- The Army will soon begin testing a composite, non-metal Humvee utility vehicle that is 900 pounds lighter than its conventional counterpart.

The prototype vehicle was built by Rhode Island-based TPI Composites at the company's plant in Springfield, Ohio.

The idea is to make a vehicle that can carry extra armor to better protect soldiers against roadside bombs in Iraq and Afghanistan.

Company President Steven Lockard says two more vehicles are currently being built in Rhode Island, and the Army plans to test them later this year,

The vehicle's frame and body is made of composites -- a combination of Fiberglas, balsa wood, foam and carbon reinforcements all held together with resin.

-- The Associated Press

Posted by Mike McKinney at 11:28 AM | Permalink | Comments (0)

The Senate Appropriations committee will hold a hearing at 11 a.m. on improving toy safety, removing lead paint and the role of the Consumer Products Safety Commission in toy safety.

The toy industry has been battling safety concerns and recalls over toys made in China.

Mattel, the world's largest toymaker, has had to recall three batches of products made in China because of paint that may contain excessive levels of lead.

Pawtucket-based Hasbro Inc. is the world's second-largest toy maker. In July, Hasbro recalled all of its Easy-Bake Ovens because children were getting burned by the imitation kitchen appliance.

Check back at 11 a.m. to watch video coverage of the hearing.

-- With Journal archival reports and Bloomberg News reports.

Posted by Jack Perry at 10:50 AM | Permalink | Comments (0)

State Attorney General Patrick C. Lynch has called upon National Grid to abandon efforts to establish a liquefied natural gas marine terminal in Providence, now that the utility giant owns the company that originally proposed the project.

National Grid completed its $7.3 billion-cquisition of KeySpan Corp. on Aug. 24, and as such owns the 660,000-barrel LNG tank in Providence that provides natural gas to the region during the coldest days of the year. KeySpan had been seeking permission to expand its LNG facility into a marine terminal so that it could receive deliveries by tankers instead of by trucks.

In 2005, the Federal Energy Regulatory Commission rejected the proposal. KeySpan appealed that decision, and oral arguments are scheduled for Oct. 26 at the United States Court of Appeals for the District of Columbia Circuit.

This morning, Lynch released a copy of a letter he had sent yesterday to Michael F. Ryan, president of National Grid’s operations in Rhode Island, urging the company to drop its appeal.

Lynch and virtually all other public officials have long opposed the project because of the impact on recreational use of Narragansett Bay, as well as the potential safety issues in the event of a terrorist attack or an accidental spill.

“Now that National Grid has consummated its acquisition of KeySpan Corporation, I am forced to question National Grid’s continuing efforts to overturn the decision of the Federal Energy Regulatory Commission,” Lynch wrote.

“I believe National Grid’s reputation for corporate citizenship and environmental stewardship stands in conflict with the continued pursuit of this ill-conceived project,” Lynch continued.

“I strongly urge that National Grid to withdraw its appeal and alleviate the need for the federal appeals court to hear arguments and render a decision on a matter that should no longer be pursued by the Rhode Island’s predominant public utility.…”

Ryan, the National Grid executive, would not comment on the Lynch’s request until he had a chance to speak to the attorney general directly, said David Graves, a spokesman for National Grid.

Graves said that National Grid has not yet decided whether it will abandon the appeal. “This project is under review as are a number of other projects,” Graves said.
The Fields Point LNG storage facility “is very important to our ability to continue providing reliable service,” he said.

-- Journal staff writer Timothy C. Barmann

Continue reading "AG wants National Grid to abandon LNG plans" »

Posted by Tim Barmann at 4:23 PM | Permalink | Comments (0)

WARWICK — For nursing or healthcare professionals seeking a career change, or even fist-time jobseekers, today’s projoJob’s Nursing & Allied Healthcare Career Fair, is running through 5 p.m. at the Crowne Plaza, Route 5, in Warwick.

About 15 health-care companies are conducting on-the-spot interviews. Plus, there’s a free résumé panel and seminar on the latest healthcare industry trends.

Click here to see the full list of exhibitors and events at the Nursing & Allied Healthcare Career Fair.

Posted by Peter Phipps at 1:20 PM | Permalink | Comments (0)

CUMBERLAND -- A construction crew accidentally struck a gas line while digging near a warehouse in the Diamond Hill Industrial Park this afternoon.

Workers in the 100,000-square-foot complex at 35 Industrial Drive, which included the Academy for Little Children, a daycare center, were evacuated while a National Grid crew made repairs. Police closed part of Industrial Drive for about half an hour.

The warehouse, formerly owned by textile manufacturer Hope Global, is currently owned by Right Concepts.

-- Journal staff writer Philip Marcelo

Posted by Mike McKinney at 5:13 PM | Permalink | Comments (0)

Nearly 6,000 Rhode Island companies that operate trucks and livery vehicles will come under new federal registration rules this fall as a result of changes in interstate transportation laws.

Nearly two years in the offing, the rules going into effect Nov. 1 bring businesses once exempt from federal registration requirements under the same rules that govern long-haul truckers.

The change means thousands of previously exempt companies or contractors will have to register their vehicles with the Rhode Island Division of Public Utilities and Carriers, according to an agency spokesman.

“There was a whole set of obstacles to getting this thing up and running,” said Terry Mercer, an associate administrator at the PUC.

The new program will replace the Single State Registration System -- a state-administered program that ensures interstate “for-hire” motor carriers operate properly. About $110 million, in all, was collected by the states in 2004, which is being used as the baseline for the new system’s revenue estimates.

The new rules increase the number of vehicles that fall under the registration requirements by including private fleets -- such as those a retailer might use to ferry goods between a warehouse and its stores, leasing companies, freight brokers and freight forwarders.

By spreading around the costs, the rules lower fees for interstate haulers without cutting into the revenue states use to maintain roadways and transportation programs. Registrations in Rhode Island are expected to generate $2.4 million in the first year.

-- Journal staff writer Paul Grimaldi

Continue reading "New trucking registration laws to add revenue" »

Posted by Mike McKinney at 3:58 PM | Permalink | Comments (0)

Gasoline prices in Rhode Island have fallen for the seventh straight week, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.679 at the self-service pump, a drop of one cent since last week, according to AAA's weekly survey.

The price has dropped 19 cents in the past month.

The average price was 18 cents more, at $2.859, at this time last year.

Posted by Jack Perry at 10:50 AM | Permalink | Comments (1)

The state Department of Environmental Management warned today that a large school of menhaden, chased into the Blackstone River by predatory fish, may be at risk.

An estimated one million to two million menhaden -- many of them juveniles -- were spotted late yesterday and early this morning in the river near Slater Dam.

Menhaden contribute to Narragansett Bay's health and to the economy: They are bait fish for the lobster fishery and are used to attract striped bass, among other things.

DEM biologists in the fish and wildlfie division are monitoring the situation.

In July, the DEM carried out emergency rules to control harvesting of menhaden to preserve the menhaden stocks.

Adult menhaden are typically in Narragansett Bay from May through September, but juveniles remain throughout the year.

-- projo.com staff writer Michael P. McKinney

Continue reading "DEM warns of potential for fish die-off" »

Posted by Mike McKinney at 12:10 PM | Permalink | Comments (0)

Toys 'R' Us is recalling 27,000 crayon and paint sets made in China because of lead contamination.

This is the second recall Chinese-made products in less than a month.

The first recall prompted Pawtucket-based Hasbro to “redouble its safety reviews,” according to Wayne S. Charness, senior vice president of corporate communications for the nation’s No. 2 toymaker.

Most of Hasbro's toys are manufactured through contracts with factories in China and Asia. The crayons are not made by Hasbro.

See a report here.

-- The Associated Press

Posted by Brandie M. Jefferson at 7:04 AM | Permalink | Comments (0)

PROVIDENCE -- The state Department of Department of Environmental Management plans to announce tomorrow that it has hired a company to operate a reservations system for public campgrounds for the first time in state history.

Starting in November, campers will be able to reserve campsites as long as a year before their visit. In the past, it was first come, first served.

“We are excited about this,” Steven T. Wright, acting chief of the DEM’s Division of Parks and Recreation, said. “It’s a long time coming.”

Burlingame State Campground, in Charlestown, Fishermen’s campground, in Narragansett, East Beach, in Charlestown, and the George Washington Campground, in Glocester — will be included in the program, to be operated by ReserveAmerica Holdings Inc.

The state is not increasing the cost of renting a campground, $14 a night for state residents. The out-of-state fee is $20 a night.

But Reserve America, a New York-based subsidiary of Ticketmaster, will charge campers $9 to maker a reservation online or $10 by telephone.

So for a Rhode Island resident the cost of a camp site with an online reservation will increase by 64 percent.

-- Journal staff writer Benjamin N. Gedan

Posted by Peter Phipps at 5:14 PM | Permalink | Comments (0)

PROVIDENCE -- Textron, Inc., the world's biggest maker of business jets, has won a legal battle to retain internal tax documents after a U.S. federal judge ruled that the Internal Revenue Service isn't entitled to examine them.

The Wall Street Journal reported that U.S. District Court Judge Ernest C. Torres rejected the government's request to enforce an IRS summons and described the papers as protected by "work product" privilege, because they were prepared in anticipation of litigation with the IRS.

The IRS asked Providence-based Textron for all its tax work papers for several years as part of a scrutiny of leasing-related transactions that might have yielded large tax benefits, the Journal added.

-- Bloomberg

Posted by Andrea Panciera at 8:01 AM | Permalink | Comments (0)

WEST GREENWICH -- Amgen Inc. has begun reducing its Rhode Island staff as the international biotech company prepares to shut down one of the two drug-production facilities at its West Greenwich complex.

A segment of the plant’s 1,600 employees have been offered a buyout package that includes a lump-sum payment, a period of continued health insurance and career counseling, Amgen spokesman Larry Bernard said.

Staff who have worked for Amgen fewer than five years are ineligible. The individual “voluntary transition program” packages, part of a companywide program, are structured based on an employee’s salary and tenure.

Bernard declined to disclose how many, if any, of Amgen’s Rhode Island workers have agreed to retire voluntarily. Their decisions are due early next month.

“We still need Rhode Island,” Bernard said. “We’ll still be big, we just won’t be as big.”

--Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 6:10 PM | Permalink | Comments (0)

Governor Carcieri tomorrow will convene the first meeting of a group that will review plans for possible wind power projects and talk about them with stakeholders from communities involved.

The group is scheduled to meet at 9 a.m. at Save the Bay headquarters, 100 Save the Bay Drive, Providence.

The governor has expressed support for wind power, asserting it is an affordable energy source that would be better for the environment.

The Office of Energy Resources was charged with finding a way to increase use of renewable energy, with wind power used to generate 15 percent of the state’s electricity, and another 5 percent from other renewable sources, according to the governor's office.

The community stakeholder group has been created to figure where wind power sructure would go. It's meeting Thursday. Community representatives have been invited from Newport, Warwick, Barrington, Bristol, Charlestown, Little Compton, Middletown, Narragansett, New Shoreham, Portsmouth, Tiverton, Warren, and Westerly.

Also invited are various state agencies, the U.S. Coast Guard, environmental groups, trade and activity associations, university representatives, tourism and chamber of commerce representatives.

Posted by Mike McKinney at 4:34 PM | Permalink | Comments (0)

The number of single-family home building permits issued in Rhode Island increased in the second quarter to 409, compared to 384 during the second quarter of last year, according to data released by the Rhode Island Builders Association. That's an increase of 6.5 percent.

The increase is not enough to offset a weak first quarter, which was down 17.3 percent, compared to the first quarter of 2006.

For the first six months of 2007, 752 permits were issued, compared to 799 last year, a decline of about 5.9 percent.

“The housing market continues to show signs of cooling in response to past overheated conditions,” said Roger Warren, executive director of the builders association. “Yet it is important to understand that this correction is leading us to a healthier market with greater choices of available stock and a better balance between buyers and sellers.”

“Moreover, Rhode Island’s market is performing quite well, in comparison to other parts of the country,” Warren said in a statement.

-- Timothy C. Barmann, Journal staff writer

Continue reading "R.I. building permits up in second quarter" »

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COVENTRY -- The Slater Technology Fund, a taxpayer-backed source of venture capital, has invested an additional $250,000 in Concordia Fibers.

In all, Slater has now invested $500,000 in the 87-year-old company, which has transformed itself from a producer of synthetic yarns and threads for textile plants to a biotechnology firm making material that can be implanted in the human body.

Slater first invested in Concordia, based in Coventry, in 2003.

--Journal Staff Writer Benjamin N. Gedan

Posted by Mike McKinney at 6:22 PM | Permalink | Comments (0)

Regular, unleaded self-serve gasoline is down about 7 cents to $2.689 according to the American Automobile Association’s weekly gas price survey.

That's six straight weeks of lower prices.

And it's down from a year ago at this time, too, when the average price for regular gasoline in the Ocean State was $2.96.

The national average for regular gasoline is $2.74

Mid-grade gasoline averages $2.82 across the state while premium is selling for $2.94.

Posted by Brandie M. Jefferson at 3:44 PM | Permalink | Comments (0)

Those who troop into a Dunkin' Donuts every morning on, well, every corner in Rhode Island use words like "coffee," "bacon," "egg" and, for the daring, "chocolate frosted."

Now Dunkin' Donuts is adding to the vocabulary list "zero grams trans fat." If that doesn't quite slide off the tongue, it may keep more of the pounds sliding off you.

Your Turn:How will this change your morning routine?

All new menu offerings nationwide will be zero grams trans fat by Oct. 15, the popular chain announced today. "This includes the brand's signature doughnuts," a news release says.

The zero-trans fat doughnuts are already being served in New York City and Philadelphia. They've been served in about 400 restaurants around the country as part of a "nationwide blind test" over a four-month period.

The news may be of special importance in Rhode Island, where the trip-over-each-franchise proximity of the doughnut shops is legendary. Dunkin Brands Inc.'s chief told the Journal last summer that a goal was to have one store for every 12,000 people in a given market. There were 6,500 shops in the Northeast and Mid-Atlantic states at the time; a goal was to have 15,000 east of the Mississippi.

-- projo.com staff writer Michael P. McKinney

Posted by Mike McKinney at 12:04 PM | Permalink | Comments (1)

Small business owners, employees and insurance brokers – about 125 people in all – attended an informational session this morning at the Providence Marriott on new, low-cost health insurance plans for small businesses.

The plans will be offered to all Rhode Island-based business with 50 or fewer employees, for enrollment beginning Oct. 1.

Blue Cross and Blue Shield of Rhode Island and UnitedHealthcare of New England will each offer a version of the plan, dubbed HealthPact.

Each insurer will limit enrollment to 5,000 people. Those at the info session said they don’t know how high demand will be and urged employers to consider enrolling right away. Paperwork would be due in mid-September for Oct. 1 enrollment.

-- Journal Staff Writer Elizabeth Gudrais

Continue reading "Small businesses learn about health insurance plan" »

Posted by Brandie M. Jefferson at 2:16 PM | Permalink | Comments (1)

Providence-based Textron Inc. has agreed to pay a $1.15-million fine, acknowledging responsibility for several French subsidiaries' employees' making $600,000 in kickbacks to the Iraqi government in order to get contracts.

The U.S. Department of Justice has entered into the agreement with Textron, according to a news release today. It's part of the Justice Department's continuing probe into the United Nations oil-for-food program.

Subsidiary employees made "improper payment" to obtain contracts with Iraqi ministries to provide equipment, including industrial pumps and gears.

Between 2000 and 2003, three of Textron’s David Brown French subsidiaries in its fluid and power business unit paid a total of about $600,000 to the Iraqi government by inflating the price of contracts by 10 percent before submitting the contracts to the United Nations for approval.

"The subsidiaries concealed from the United Nations the fact that the price contained a kickback to the Iraqi government," the Department of Justice says.

The oil-for-food program aimed to allow Iraq to sell its oil for humanitarian purposes and required that oil-sale proceeds be deposited in a United Nations bank account and that those proceeds be used by Iraq only to buy United Nations-approved humanitarian goods and services, such as food and medicine.

In 2000, the Iraqi government started requiring companies wanting to sell humanitarian goods to government ministries to pay a kickback, "often mischaracterized as an after-sales services fee, in order to be granted a contract," the Justice Department said. The fee was usually 10 percent of the contract price.

-- projo.com staff writer Michael P. McKinney

Continue reading "Textron agrees to fines in Iraq oil-for-food kickbacks" »

Posted by Mike McKinney at 11:56 AM | Permalink | Comments (0)

According to AAA Southern New England, we'll see cheaper prices at the pump for the fifth straight week.

The company's survey shows prices for regular, unleaded gasoline averaging $2.769 per gallon at the self-service pump. That's down five cents from last week and 19 cents from last month.

With the lowest gasoline prices since April 9 -- last year this time it was $3.049 -- the state is matching the national average, according to the AAA survey.

To compare national gas prices, AAA refers to the Oil Price Information Service. Its numbers, obtained by a different method, are available here.

Posted by Brandie M. Jefferson at 12:04 PM | Permalink | Comments (0)

MIAMI -- Darden Restaurants Inc., which operates the Olive Garden and Red Lobster restaurant chains, has agreed to buy the owner of the LongHorn Steakhouse and Capital Grille chains for about $1.19 billion.

Darden, the world's biggest casual dining operator, said it would buy all Rare Hospitality Inc.'s outstanding shares for $38.15 per share in a tender offer. The price is a 39 percent premium to Rare's closing price Thursday of $27.51. The deal value is based on 31.1 million shares outstanding.

Clarence Otis, Darden's chairman and chief executive, had hinted recently that the Orlando-based company might buy another chain to boost growth. It already has plans to aggressively expand Olive Garden, its Italian eatery, after failing to get its Smokey Bones barbecue concept to catch on.

Darden valued the deal at $1.4 billion, which includes outstanding debt and capital lease obligations.

Darden has 1,400 restaurants, with more than 600 Olive Gardens and 600 Red Lobsters. Atlanta-based Rare Hospitality has 317 restaurants, including 287 LongHorn Steakhouse restaurants, including one in Warwick, R.I., and 28 Capital Grille restaurants, including one in Providence, R.I.

"Rare Hospitality's two outstanding brands and the talented leadership and restaurant teams behind them enhance Darden's entire organization, but particularly our unit growth prospects," Otis said in a statement.

-- The Associated Press

Continue reading "New owner for the Capital Grille, Longhorn chains" »

Posted by Mike McKinney at 5:20 PM | Permalink | Comments (0)

The Coast Guard today ended a 38-foot boat's fishing trip from Block Island to Montauk, N.Y. -- Long Island's eastern tip -- because it said the vessel failed to meet safety regulations.

In a news release, the Coast Guard said crew from its cutter Chinook, from New London, Conn., boarded the Karen Sue at about 11 a.m. and found the life raft had expired and that the three-man fishing crew aboard had just two survival suits aboard.

Federal regulations require commercial fishing vessels to have enough suits for every crewman aboard, the Coast Guard said.

The Chinook escorted the boat and crew to Montauk, where they were told not to get underway until violations were corrected.

"Our main concern is preservation of life," Ted Harrington, the First District Coast Guard chief of vessel compliance oversight, said in the statement. "If we find a fishing crew that is dangerously out of regulation, we're going take action to make sure they have what they need to be safe."

Posted by Mike McKinney at 2:50 PM | Permalink | Comments (0)

FALL RIVER -- The struggling Quaker Fabric Corp. has filed for bankruptcy, the company announced today.

After years as a major player in the region's upholstery and fabric sector, Quaker fired all 920 of its employees, including at least 62 Rhode Island residents, earlier this summer.

In a statement released this morning, Quaker said a bankruptcy judge will now oversee the sale of all of the company's equipment and real estate.

Posted by Peter Phipps at 11:50 AM | Permalink | Comments (0)

PROVIDENCE -- Drivers tonight can expect temporary lane restrictions in the exit 18 to exit 20 area, the Department of Transportation said.

Starting at 8 p.m., workers will begin shutting lanes on one or both sides of the highway between Exits 18 and 20, with the maximum lane closures taking place after 11 p.m.

At least one lane in each direction will be open. All lanes will be reopened by 5:30 a.m. for the morning commute.

Work will take place on Sunday through Thursday nights. No work is scheduled for Friday or Saturday night or holidays. The DOT advises drivers to use Route 295 or Route 10 as alternate routes during the overnight.

The DOT had shut down part of I-95 over the past two weeks to allow for safe installation of steel beams on the Iway project.

Steel beam setting will resume in approximately six weeks over Eddy Street and Allens Avenue. Local road closures may happen then.

And the DOT expects to resume overnight full highway closures sometime toward year's end to allow for pouring of a concrete deck on top of the steel assemblies.

Information on lane restrictions will be posted daily at www.dot.state.ri.us/traffic.

Posted by Mike McKinney at 11:14 AM | Permalink | Comments (0)

SMITHFIELD -- A Smithfield couple has decided to sell their ranch house the traditional way after an earlier plan to give it to the winner of an essay contest met with little interest.

Yelena and Anoosh Khaze said they wanted the four-bedroom house to go to a low-income family who would explain in an essay why they needed the home.

The couple charged a $100 entry fee for the contest and said they needed a minimum of 3,200 entrants to make the contest financially viable for them.

They didn't come close. Despite attempts to publicize the contest, the Khazes said they received only 48 entries.

The couple promised to reimburse 90 percent of the entry fees if they failed to reach the minimum number of entrants, and they say they will now make good on that promise.

-- The Associated Press

Posted by Mike McKinney at 11:07 AM | Permalink | Comments (0)

Former Providence Mayor Vincent Buddy Cianci will be resuming his talk-show career at WPRO. He'll start September 20.

Cianci, who got out of federal prison this spring, will host a show in a time slot that has yet to be determined. The station manager today said a decision would be made in two weeks.

The announcement was made at 7:10 with morning host Ron St. Pierre and Cianci chatting about the former mayor's return to WPRO.

There had been speculation that Cianci was going to WPRO's rival, WHJJ. And Cianci this morning didn't deny that he had looked at more than one proposal.

So why, St. Pierre asked, did Cianci choose WPRO?

In addition to the money, or as Cianci called it, "the faces of the presidents," the former mayor said he picked WPRO because it's "the heritage station of Rhode Island."

Over the past 20 years, Cianci has sandwiched radio work around two long stretches at Providence City Hall. He first worked at WHJJ and then briefly at WPRO in 2002 before going to prison on a corruption charge.

St. Pierre introduced his interview today with Cianci with a joke about how early it was.

"I bet you didn't think I could get up this early," Cianci replied.

Cianci said he would be provocative, but not negative. "I don't have an agenda. I'm out of politics," Cianci said.

-- Peter Phipps

Your turn: What time slot is best for Buddy?

Continue reading "Update: Cianci makes a deal with WPRO" »

Posted by Peter Phipps at 7:56 AM | Permalink | Comments (6)

NORTH KINGSTOWN -- The Rhode Island Airport Corporation gave preliminary approval today to lease 32 acres of land at the Quonset Airport to a Florida developer seeking to construct a shipbuilding and repair yard for giant yachts at the Quonset Business Park.

The state agency that controls the business park, the Quonset Development Corporation, has already indicated its support for the project, setting aside 43 acres along Narragansett Bay south of the southern pier at Davisville.

But the airport property is considered critical to that project, and the initial approval today gave a promising signal to Island Global.

“This was a crucial piece for Island Global Yachting to move forward,” Dyana Koelsch, a QDC spokeswoman, said. “Without it, the deal would not have gone through.”

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 7:05 PM | Permalink | Comments (0)

WEST GREENWICH -- Pharmaceutical giant Amgen Inc. has announced plans to reduce its staff by 12 to 14 percent in response to slumping sales of its anemia drugs.

Amgen employs 1,700 people at its manufacturing plant in West Greenwich.

In a statement today, the company said it plans to close several production operations. It did not mention any by name.

A call to Amgen spokesman Larry Bernard was not immediately returned.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 4:12 PM | Permalink | Comments (0)

A number of Rhode Island school districts have yet to settle contracts with teachers.

The largest is Providence with 26,000 students. Other districts without labor agreements include Burrillville, East Greenwich, Exeter-West Greenwich, Jamestown, Foster-Glocester, New Shoreham, North Kingstown and Tiverton.

Teachers union officials say they're optimistic that contracts will be reached without any job actions.

But Rhode Island Federation of Teachers and Health Professionals President Marcia Reback says the state's refusal to provide new funding for education has been a ``death blow'' for Providence schools.

-- The Associated Press and Journal reports

Posted by Peter Phipps at 9:26 AM | Permalink | Comments (0)

Gas prices fell again in Rhode Island, shedding 5 cents in the last week and 16 cents from last month, AAA Southern New England reports.

Self-serve regular unleaded averaged $2.819 per gallon, the AAA's latest survey found.

A year ago at this time, the average price locally was $3.089. A month ago, on July 16, the average price was $2.979.

The current price is also 27 cents below the highest price recorded in Rhode Island by AAA this year -- $3.089 on May 28.

But the state is still 5 cents above the national average of $2.769 for regular unleaded.

The prices in the latest survey of regular-unleaded self serve ranged from $2.699 to $2.909.

-- projo.com staff writer Michael P. McKinney

Posted by Mike McKinney at 6:47 AM | Permalink | Comments (1)

FALL RIVER -- Former employees of the shuttered Quaker Fabric Corp. plant received a rare piece of good news today, when the Department of Labor announced that it had approved a National Emergency Grant of $617,515 to assist former Quaker staff.

The money will pay for career counseling and job search assistance at a special career center being established in Fall River for former Quaker employees, according to Linnea Walsh, spokeswoman for the Massachusetts Department of Labor and Workforce Development.

Massachusetts has set aside $250,000 to help establish the reemployment center, where four former Quaker workers have been hired as staff.

It is scheduled to open next month, Walsh said.

“While my preference would be to make changes in our national economic policies that would prevent these kinds of closures from happening, as long as they do occur, we need to do all we can to see that those who lose their jobs receive as much help as possible,” U.S. Rep. Barney Frank said in a statement today.

Last month, Quaker fired all 930 employees, including at least 62 Rhode Island residents, when it ceased manufacturing.
-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 5:30 PM | Permalink | Comments (0)

The recent spate of toy recalls has prompted Hasbro to “redouble its safety reviews,” according to Wayne S. Charness, senior vice president of corporate communications for the nation’s No. 2 toymaker.

The bulk of Hasbro’s toys are manufactured through contracts with factories in China and Asia. The company still makes its classic board games, puzzles and activity sets at a factory it owns in East Longmeadow, Mass.

The Pawtucket-based company pulls samples from production runs for testing before the goods reach store shelves around the world, he said.

“We conduct regular reviews at a variety of quality control points during manufacturing,” Charness said. “The paints that are used on our products are screened, tested and retested.”

When Hasbro finds a problem with a product, it first gives the manufacturer an opportunity to correct the flaw, he said. The toymaker has “terminated” relationships with manufacturers who fail to meet its quality standards.

The recent recall of the Hasbro’s Easy-Bake Oven was due to a design flaw, Charness noted, and not a manufacturer’s mistake.

Hasbro is considering a redesign of the toy.

“We would certainly hope to have it back on the market,” he said.

-- Journal staff writer Paul Grimaldi

Posted by Andrea Panciera at 3:03 PM | Permalink | Comments (0)

FALL RIVER, Mass. -- The struggling Quaker Fabric Corp., which fired its 920 employees last month and shut down its Fall River plant, has asked to have its stock delisted from NASDAQ.

The former textile giant, founded in 1945, had previously announced plans to liquidate its assets to pay back lenders. Late Monday, Quaker told the U.S. Securities and Exchange Commission that it had asked NASDAQ to "terminate the listing of its common stock" and suspend trading after the market closes on Thursday.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 12:40 PM | Permalink | Comments (0)

It's been a crazy week in the stock market. Up and down, down and up.

So, while the market takes a breather this weekend, see how your portfolio has performed with projo.com's financial tools. You can check your stocks, get information on those pesky mortgage rates, use financial calculators, see how CEOs are doing on our "wealthmeter" and more.

Sign up for the free service at: http://www.projo.com/business/financialcontent/

And watch a quick video wrap of the week via AP's Money Minute.

Posted by Andrea Panciera at 6:44 PM | Permalink | Comments (0)

Rhode Islanders willing to do a little traveling this weekend can save money by driving to Massachusetts, which is observing a sales-tax holiday Saturday and Sunday.

The holiday exempts most single items priced at up to $2,500 from the 5-percent state sales tax. Sales of telecommunications services, tobacco products, gas, steam, electricity, motor vehicles, motorboats, meals and items priced above $2,500 remain subject to the sales tax. Also, prior sales and layaway sales are ineligible.

In some cases, Rhode Islanders won't have to drive so far to catch a break. Some Rhode Island businesses are offering discounts to counter the Massachusetts tax advantage.

Rhode Island businesses have tried unsuccessfully to get the state to enact its own tax holiday.

More information from the Massachusetts Department of Revenue's Web site.

Read a full story on the Massachusetts sales-tax holiday.

Posted by Jack Perry at 12:18 PM | Permalink | Comments (0)

REDWOOD CITY, Calif. -- Hasbro is teaming with the world's largest video game maker, Electronic Arts, to create digital versions of its games and toys like Monopoly, Scrabble and Littlest Pet Shop.

Financial terms of the deal were not disclosed. But the deal seeks to capitalize on the growing popularity of casual games, which are easier to play and target a mass audience beyond hardcore players.

Under the deal, Electronic Arts gets exclusive rights to create digital games based on toys by Pawtucket-based Hasbro. Hasbro will receive rights to bring some of Electronic Arts' franchises to toys and traditional games.

The first games are planned for next year.

The deal doesn't include Hasbro's Transformers brand, which is already licensed to another vide game company.

-- The Associated Press

Posted by Mike McKinney at 12:04 PM | Permalink | Comments (0)

PROVIDENCE -- Rhode Island is getting a visit by a group of businesses from the Bahamas as part of a National Guard program that partners U.S. states with foreign nations.

The State Partnership Program pairs the Rhode Island National Guard with the Bahamas. Among the programs they've done in the past are an exchange between the University of Rhode Island and the College of the Bahamas, and training of Bahamian police by Providence and Rhode Island State Police.

A delegation including representatives from the Bahamas Development Bank, the Bahamas Chamber of Commerce and the Bahamas Tourism Council is visiting the Ocean State this week.

The bank and chamber of commerce are also signing an agreement with the Rhode Island Economic Development Corporation to develop economic partnerships and promote joint economic cooperation in financial services, tourism and education.

-- The Associated Press

Posted by Jack Perry at 2:14 PM | Permalink | Comments (0)

NORTH KINGSTOWN -- The state agency that controls the Quonset Business Park officially unveiled today a significant redesign of the Quonset Gateway project, a $144-million development that was quashed by state planners in March amid criticism about its focus on large retail stores and sprawling paved surfaces.

The Providence Journal obtained the plans yesterday.

The new design places the so-called big-box stores - outlets of the Lowe's and Kohl's chains - behind a proposed Davisville Square, made up of a collection of small shops, cafés and benches that would replace the surface parking lots that had been planned for the border with Route 1.

In a statement released today, Governor Carcieri endorsed the project.

“In addition to supporting greater job growth within the park, the revised plan leverages private sector dollars to create a mixed-use site that will enhance the quality of the surrounding neighborhoods both today and in the years to come,” Carcieri said in the statement.

React to the revised proposal.

-- Journal saff writer Benjamin N. Gedan

Posted by Kate Bramson at 11:14 AM | Permalink | Comments (4)

SMITHFIELD -- Alexion Pharmaceuticals has appointed Scott Phillips, 30, as its principal accounting officer.

The Connecticut company is building a $47-million biomanufacturing facility in Smithfield, at the former Dow Chemical plant.

Phillips previously served as Alexion's corporate controller and chief accounting officer. He was hired in April, after he left the accounting firm PricewaterhouseCoopers LLP. He has also worked for Ernst & Young LLP.

At Alexion, Phillips will take over for Vikas Sinha, who will retain the roles of chief financial officer and principal financial officer.

-- Journal Staff Writer Benjamin N. Gedan

Posted by Kate Bramson at 1:08 PM | Permalink | Comments (0)

Men’s clothing designer Joseph Abboud has purchased a Fall River textile company and is poised to re-enter the design world.

A Boston native, Abboud moved to the forefront of apparel designers in the 1990s and his clothing lines became staples of high-end menswear stores. His rise boosted the spirits of textile workers in Massachusetts, where his clothes were made in a New Bedford factory.

He was a hometown hero.

Abboud sold his label in 2000 and J.W. Childs Associates, a Boston private-equity firm, bought the Abboud operation for $73 million in 2004. The Abboud line was put under the control of JA Apparel Corp., which continues to produce garments under the brand name at a factory in New Bedford. Marty Staff, an apparel industry veteran, led the buyout.

A noncompete clause apparently lapsed in 2005.

Now, Abboud is poised to re-enter the design world with jaz, a new menswear label to be produced by the workers at the Fall River Shirt Co., which was owned until last month by George Nova.

“Our main interest was to find a way to retain the jobs,” Nova said today in a phone interview. “The people there are hard-working . . . they had developed a skill that was so exceptional in shirt making that it would have been criminal had it been lost.

“This was a win-win for everybody.”

-- Journal staff writer Paul Grimaldi

Continue reading "Designer Joseph Abboud buys Fall River company" »

Posted by Mike McKinney at 5:17 PM | Permalink | Comments (1)

Though federal comprehensive reform of U.S. immigration laws stalled this summer, many states have stepped up efforts to enact their own immigration-related laws, according to a report issued today by the National Conference of State Legislatures’ Immigrant Policy Project.

The report states that 1,404 pieces of legislation related to immigrants and immigration law have been introduced among 50 state legislatures: roughly two and a half times more bills this year than last. From January to July this year, 140 of those bills became law in 41 states.

Rhode Island’s efforts to join the trend all but failed this year when the General Assembly took a pass on some 36 immigration-related bills. All but one which failed to make it out of committee; the lone surviving bill, a citizenship-verification measure, died at the close of the Assembly session in June.

The report cites a new Rhode Island law as part of the trend: It makes human-trafficking a crime.

-- Journal staff writer Karen Lee Ziner

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Gasoline prices in Rhode Island have dropped an average of four cents this week, the third straight week the prices have fallen, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.869 at the self-service pump, according to AAA's weekly survey.

A similar survey by the state Energy Office found the average price at $2.88.

The price has fallen 11 cents in three weeks, AAA says.

The average price was $3.099 a year ago at this time, AAA says.

-- With reports from The Associated Press

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Five months after a sweeping immigration raid at the Michael Bianco Inc. plant in New Bedford, company president Francesco Insolia and two of his top managers have been indicted on charges of conspiring to harbor and hire illegal immigrants, to fulfill almost $230 million in government contracts.

U.S. Attorney Michael J. Sullivan said the indictment “should send a clear message to all employers that hiring illegal or unauthorized aliens, or conspiring to shield them from detection, will not be tolerated.”

Extra: Read a special report on the immigration debate.

Sullivan, the U.S. attorney for Massachusetts, said the alleged conduct by Insolia and his managers “undermines the integrity of our immigration system and could place legally operating businesses at a competitive disadvantage.”

Insolia and the other two defendants will be arraigned on Thursday, August 9.

Insolia, of Pembroke, Mass., had no comment. He remained on the job, according to a spokesman.

The indictment was announced yesterday by Sullivan and Bruce M. Foucart, special agent in charge for the U.S. Immigration and Customs Enforcement office of investigations in Boston.

The Bianco company, which produces rucksacks and other military gear for U.S. soldiers in Iraq and Afghanistan, is operating on a reduced production schedule agreed to by the Department of Defense, said spokesman Doug Bailey, of Rasky Baerlein Strategic Communications of Boston.

The two-count indictment names Insolia, 50, of Pembroke, Mass.; production manager Dilia Costa, 55, of New Bedford; and contracts specialist Gloria Melo, 41, of Fall River. They are each charged with conspiring to harbor or conceal or shield illegal aliens from detection, or to encourage and induce aliens to come to, enter and reside in the U.S.; and with conspiring to hire, and continue to employ unauthorized aliens.
A third manager, Ana Figueroa, who was charged in March after the raid, was not named in the indictment.

If convicted of the charge of conspiring to hire illegal aliens, Insolia, Costa and Melo each face maximum sentences of 10 years in prison, a $250,000 fine and a $100 special assessment, plus at least two years of supervised release. They face months in prison, a $100 special assessment, and a $10,000 fine for each illegal alien hired by the Bianco company on the charge of conspiracy to hire illegal aliens.

The indictment stems from an ongoing investigation that started last year and culminated with a March 6 raid at the plant at 89 West Rodney French Boulevard, during which 361 illegal immigrants were detained.

-- Journal staff writer Karen Lee Ziner

Continue reading "3 indicted after New Bedford immigration raid" »

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PROVIDENCE -- The Citizens Financial Group earned $1.48 billion in the first half of the year, a 2-percent increase over the same period last year, the Providence-based bank announced today.

Citizens, owned by the Royal Bank of Scotland Group, said it had made "good progress" in credit card issuing and experienced "strong growth" in corporate and commercial lending that compensated for decreased demand for mortages.

In March, the Royal Bank reorganized its North American operations, replacing Lawrence K. Fish, the chief executive officer of Citizens, with Stephen D. Steinour. Fish was named chairman of RBS America, a new organizational unit.

--Journal Staff Writer Benjamin N. Gedan

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PROVIDENCE -- Scientists affiliated with the Providence life sciences company NABsys Inc. have been awarded nearly $1 million in grants from the National Human Genome Research Institute, part of the National Institutes of Health.

The two grants, announced today, were among eight awards for researchers in the U.S. and Canada who are trying to discover more affordable methods of sequencing the human genome.

In an interview today, the president of NABsys, Barrett Bready, said the company’s technology would promote “personalized medicine,” allowing patients to learn their vulnerability to certain illnesses and pursue preventative treatment or lifestyle changes.

“It’s working on an incredibly important problem, some would day the most important problem in medicine,” Bready said.

-- Journal staff writer Benjamin N. Gedan

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Beacon Mutual Insurance Co., the state's dominant workers compensation insurer, has agreed to pay fines and refund policyholders after an investigation uncovered favoritism in pricing, lavish spending and disregard for the regulatory process, among other things, the state Department of Business Regulation announced this afternoon.

As a result, Beacon must refund policyholders $7 million and pay a fine of $2.5 million, with $1.5 million suspended, pending compliance with recommendations made in the report, according to the Department of Business Regulation.

For instance, according to the 312-page market conduct examination, Beach paid hundreds of thousands of dollars for senior managers' country club memberships, Beacon also paid $20,000 to support the PGA golf career of the son of a Beacon Mutual agent.

A copy of the report is available on the Department of Business Regulation's Web site.

Here are some of the report's specific findings, according to the DBR:

-- Certain employers related to board members and other favored employers were given unsupported discounts.

-- Charitable contributions were made to institutions related to board members and senior management with little or no evidence to support the efficiency of the contributions.

-- Commissions were paid to select agents, although minimum performance thresholds in their contracts were not met.

-- Management, favored agents and some clients enjoyed golf trips and other perks constituting unsuitable expenditures.

In a news release, Governor Carcieri said the report shows "the problems went much deeper than even I suspected. In short, it is a damning indictment of Beacon Mutual’s behavior as the state’s dominant workers compensation insurer, and insurer of last resort.”

James V. Rosati, Beacon's president and CEO, said in a press release, "The report is a review of Beacon’s past practices. It does not reflect the reforms and changes that have been instituted at Beacon since April of 2006. We have worked in a cooperative manner to address all of DBR’s recommendations contained in the report and I am pleased to say we have accomplished that goal on behalf of our policyholders.

“Today at Beacon there are procedures and guidelines in place which will prevent the type of findings contained in the report from reoccurring in the future," he said.

-- projo.com staff writers Jack Perry and Michael P. McKinney

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BOSTON, Mass. -- A new study says New England's electricity market will continue to heavily rely on natural gas as a fuel source over the next two decades.

The report today from ISO New England says unless the price of natural gas falls sharply, there will be no significant drop in electricity rates. Few energy investors are forecasting such a decline.

ISO New England runs the region's power girl as well as its $10-billion wholesale power market. Its report highlights the region's growing reliance in recent years on natural gas to produce electricity.

The report examines 52 approaches to meeting demand for electricity through 2025 -- including massive conservation efforts and building nuclear generators at existing nuclear plants.

-- The Associated Press

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An executive of a Rhode Island chemical company pleaded guilty to sabotaging a test of a formula developed by competitor Rohm & Haas Co. for electroplating Intel Corp. microchips.

Robert Schetty III, a vice president in charge of developing and marketing electroplating products for Cranston-based Technic Inc., pleaded guilty today in federal court in Central Islip, N.Y., to destroying a Rohm & Haas solution called ST380 that was being tested for Intel.

"This is a very, very stupid caper in his life and he's doing his best to put it behind him," Ron Russo, Schetty's lawyer, said in an interview

Schetty faces as much as 10 years in prison, three years probation and a $250,000 fine, prosecutors said. He agreed to pay $15,536 restitution to Rohm & Haas.

Schetty worked in Plainview, N.Y., for the Advanced Technology Division of closely held Technic, prosecutors said in a court document filed under seal July 17 and released today. He schemed to ruin the tests because he feared Rohm & Hass would take Technic's Intel account.

Bob Sheeran, a Technic spokesman, didn't return a call seeking comment.

Electroplating is an industrial process that uses an electrical current to coat microchips with a thin later of metal.

-- Bloomberg News

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WEST GREENWICH -- Dennis Fenton, the executive vice president of operations for Amgen Inc., is leaving the company, Amgen announced today.

Fenton, 55, has worked at Amgen for 25 years. He will leave the company at the end of the year.

In an interview with The Providence Journal in May, Fenton praised Amgen's manufacturing facility in West Greenwich, where the company employs 1,700 people to produce the drug Enbrel. If sales of Enbrel were to decline, Fenton said in the interview, Amgen would continue to operate the plant.

"We're looking at other uses for the facility," he said. "It's been a great site."

After years of strong sales and a soaring stock price, Amgen recently hit a rough patch when studies raised questions about the effectiveness of some uses of Amgen's highly profitable anemia drugs, Aranesp and Epogen.

The company, based in Thousand Oaks, Calif., said today that Fabrizio Bonanni, senior vice president of manufacturing, will succeed Fenton.

-- Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- The Procaccianti Group started to knock down the former Police and Fire Station in LaSalle Square this morning, mere moments after an appeal by a neighborhood group was dismissed by the city’s Building Board.

Just after 11 a.m., wrecking balls started to bash in the face of the building, which served as the city’s police and fire headquarters from 1938 to 2002.

The Cranston developer had received emergency demolition permits last week to demolish the vacant station and replace it with a parking lot, after the city’s building official found that it would be a public safety hazard to leave the building standing.

But several neighborhood groups immediately appealed that decision to the city’s Building Board of Review, which put a hold on Procaccianti’s permits until the body could review the appeal.

-- Journal staff writer Daniel Barbarisi

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FALL RIVER, Mass. -- The fate of several New England newspapers owned by Dow Jones & Co., which has agreed to be acquired by the News Corp., remains unclear today.

In an e-mail sent this morning to Dow Jones employees -- including reporters at The Standard-Times, in New Bedford -- Richard F. Zannino, the Dow Jones chief executive officer, said the sale will “accelerate” progress at Dow Jones publications.

“First and foremost, Rupert Murdoch and News Corp. will be investing in a growing, profitable and vibrant enterprise,” Zannino said in his memo. “News Corp. has the money -- and the intention -- to invest in our businesses on a scale we can’t.

“We can’t have great journalism without a great business to support it,” Zannino added. “And without the journalism, there is no business. This combination with News Corp. acknowledges as much in a very real way.”

Zannino’s 875-word letter, however, does not mention the local newspapers, and it leaves open the possibility that Murdoch might choose to sell some or all of Dow Jones’ local publications. A press release from Dow Jones about the sale also avoided discussion about the future of the local newspapers.

“I know this doesn’t end the uncertainty,” Zannino said. “Closing a transaction of this sort will likely take three months or so. And we can’t begin to predict the details of the integration to follow.”

Dow Jones & Co., the corporate parent of The Wall Street Journal, owns Ottaway Newspapers Inc., a national chain of local newspapers that includes several prominent New England publications.

The company’s Local Media Group includes at least 12 publications in Massachusetts, such as the Cape Cod Times, The Standard-Times, in New Bedford, The Inquirer and Mirror, in Nantucket, and The Barnstable Patriot. It also owns daily and weekly newspapers in Maine and New Hampshire.

-- Journal staff writer Benjamin N. Gedan

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LINCOLN -- Lincoln Mall was open for business this morning, after mall management brought in eight generators to power the 600,000-square-foot shopping complex off Route 116 in Lincoln.

The 61-acre shopping center lost power around 5:30 a.m. yesterday when one of its transformers was struck by lightning. The Super Stop & Shop and Target stores in the mall had generators and were open yesterday, but the rest of the mall was without electricity. Crews were on site yesterday and again this morning, assessing the extent of the damage and planning repairs.

The mall was not alone in suffering from the storm cell that swept through northern Rhode Island between 5 and 6 a.m. yesterday. A Glocester couple reported three of their cars, parked in their driveway, were damaged by a lightning strike around the same time. National Grid, which supplies power to the region, reported that about 20,000 of its customers in Woonsocket lost power as well.

-- Journal Staff Writer John Hill

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Journal photo / Bill Murphy
Investigators examine the scene of an accident where a pedestrian was hit by a train near the Clay Street overpass in Central Falls, this morning.

Providence to Boston train travel has resumed this morning – with the 8:10 a.m. MBTA train from Providence departing on time – after the 6:33 a.m. train from Providence struck and killed a man on the tracks near the Clay Street overpass in Central Falls.

The fatal accident caused significant delays for morning commuters, Massachusetts Bay Transportation Authority spokeswoman Lydia Rivera said.

The MBTA sent buses to pick up stranded passengers, and the trains are running again. The 8:06 a.m. train was “walked through” the accident area, moving at a very slow pace. Now, with the 8:10 a.m. departing on time, the tracks appear to be cleared of the accident, she said.

The name of the man struck is not yet available. He was a white male approximately 40 years old, and it appears he was homeless, Rivera said. Details about what he may have been doing on the tracks are unavailable at this point, Rivera said.

The train that struck the man did not derail. The accident remains under investigation, Rivera said.

-- projo.com staff writer Kate Bramson

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PROVIDENCE -- The animal rights group Defenders of Animals is criticizing the state Department of Environmental Management, after state investigators concluded that New England Pest Control did not violate environmental laws when it killed several sparrows at a National Grid facility in Lincoln.

Earlier this month, New England Pest Control used poisoned corn to kill birds that were nesting and roosting at a National Grid facility in Lincoln.

The DEM visited the facility and interviewed the New England Pest Control employee who distributed the poison. In a letter to the company sent last Thursday, Eugene Pepper, the Pesticide Enforcement Program supervisor, said the exterminators had not violated state or federal environmental laws.

The killing of the sparrows prompted Defenders of Animals to call for a boycott of New England Pest Control.

Now, the group says it will lobby the General Assembly to prohibit the use of Avitrol, the avicide New England Pest Control used in Lincoln.

"The pest control companies are trying to make it sound like Avitrol is a flock-dispersing agent. Avicides like Avitrol are acutely toxic and cause birds and other animals to suffer immensely," Defenders of Animals said. "It’s outright cruelty as far as we are concerned. It’s a reckless practice that must stop."

-- Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- The animal rights group Defenders of Animals is criticizing the state Department of Environmental Management, after state investigators concluded that New England Pest Control did not violate environmental laws when it killed several sparrows at a National Grid facility in Lincoln.

Earlier this month, New England Pest Control used poisoned corn to kill birds that were nesting and roosting at a National Grid facility in Lincoln.

The DEM visited the facility and interviewed the New England Pest Control employee who distributed the poison. In a letter to the company sent last Thursday, Eugene Pepper, the Pesticide Enforcement Program supervisor, said the exterminators had not violated state or federal environmental laws.

The killing of the sparrows prompted Defenders of Animals to call for a boycott of New England Pest Control.

Now, the group says it will lobby the General Assembly to prohibit the use of Avitrol, the avicide New England Pest Control used in Lincoln.

"The pest control companies are trying to make it sound like Avitrol is a flock-dispersing agent. Avicides like Avitrol are acutely toxic and cause birds and other animals to suffer immensely," Defenders of Animals said. "It’s outright cruelty as far as we are concerned. It’s a reckless practice that must stop."

-- Journal staff writer Benjamin N. Gedan

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Gasoline prices in Rhode Island have fallen for the second week in a row, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.909 at the self-service pump, according to AAA's weekly survey.

That's five cents less than last week.

At this time last year, Rhode Islanders were paying an average of $3.109.

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BOSTON, Mass. -- The U.S. Labor Department says the number of jobless people across New England was essentially unchanged over the past year.

The region's unemployment rate in June was 4.6 percent, up just slightly from 4.5 percent a year ago.

Massachusetts had the highest number of unemployed in New England at 4.9 percent last month.

Labor Department regional commissioner Denis McSweeney says that except for the March to April period this year, the unemployment rate in New England has been in the 4.5 to 4.7 percent range since September 2004.

Vermont had the lowest jobless rate last month in New England at 3.8 percent.

Maine comes in at 4.4 percent, Connecticut at 4.3 percent, Rhode Island at 4.7 percent and New Hampshire at 4 percent.

The national jobless rate is 4.5 percent.

-- The Associated Press

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PROVIDENCE -- New England Pest Control did not violate environmental laws when it killed several sparrows at a National Grid facility in Lincoln, a state Department of Environmental Management investigation has found.

The exterminators used poisoned corn to kill the birds, which were nesting and roosting at a National Grid facility in Lincoln.

The DEM visited the facility and interviewed the New England Pest Control employee who distributed the poison. In a letter to the company sent on Thursday, Eugene Pepper, the Pesticide Enforcement Program supervisor, said the company had not violated state or federal environmental laws.

New England Pest Control, Pepper said, used the minimum effective amount of poison; took steps to avoid killing “non-target” birds; and applied poison only after non-lethal methods attempted by National Grid had failed.

The killing of the sparrows prompted a Providence animal rights group, Defenders of Animals, to call for a boycott of New England Pest Control.

-- Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- The Procaccianti Group has been given permission to open the 200 hotel rooms in the new 32-story tower at The Westin Providence, the company said today.

The rooms will be occupied starting Aug. 3, Procaccianti spokesman Ralph V. Izzi Jr. said.

The Providence Department of Inspection and Standards issued a temporary certificate of occupancy on July 19, according to city records.

The new hotel rooms were a requirement of the sale of the Westin by the Rhode Island Convention Center Authority, the independent state agency that owns the convention center and Dunkin' Donuts Center.

“We followed through on the agreement and we’re delivering a first-class facility right in the heart of the city,” Izzi said. “We delivered it on time and on target, just as we set out to do.”

-- Journal staff writer Benjamin N. Gedan

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DALLAS -- The parent corporation of The Providence Journal says its second-quarter profits fell 15 percent, although it beat expectations on Wall Street.

Dallas-based Belo Corporation owns newspapers and TV stations. Company officials say they're struggling with weak newspaper advertising.

Net income between April and June dropped to $36 million, or about 35 cents per share. That's compared to $42 million, or roughly 41 cents per share, a year ago.

Even so, those numbers beat analysts' estimates.

The corporation says it expects its third-quarter TV revenue to grow while newspaper revenue drops.

Read the Belo press release.

-- The Associated Press

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PAWTUCKET -- A judge has ruled that Memorial Hospital of Rhode Island was guilty of an unfair labor practice when it banned a pro-union sticker worn as a lapel button during contract talks involving the contentious issue of mandatory overtime.

In a scathing 26-page decision, Judge Wallace H. Nations accused hospital officials of making an issue of the sticker either to drum up support for their bargaining position, or out frustration with the negotiations, which were dragging on inconclusively last summer while the union attacked the hospital in the newspaper and on TV.

“I believe that the “KNOW RESPECT” sticker was banned by the hospital as part of its tactics in negotiations or out of frustration with the negotiations and for no other reason,” said Nations, an administrative law judge for the National Labor Relations Board in Washington, D.C.

A hospital press release that characterized the sticker as stressful to patients and inflammatory “appears to me to be trying to create an issue around the button to garner support for the Hospital’s bargaining position,” the judge wrote.

In a written statement this afternoon, Memorial Hospital said it was disappointed with the judge’s ruling, which requires the hospital to post notices announcing the actions that its supervisors took were illegal and to undo the disciplinary measures that were taken against nine button-wearing nurses who were union members.

“It was never our intent to stifle union members’ free expression. We respect and value all of our employees. Our concern at the time was, as it always is, our patient’s well being,” hospital spokeswoman Louise C. Paiva said.

-- Journal staff writer John Castellucci

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PROVIDENCE -- Strong sales of food and beverages helped generate record revenue at the Rhode Island Convention Center in the last fiscal year, growing net income by 18 percent.

But the operating deficit at the Dunkin’ Donuts Center worsened in its first full year under the control of the Rhode Island Convention Center Authority, an independent state agency that spent $28.5 million to buy the arena from the City of Providence in December 2006.

The convention center brought in $14.4 million, up $1.2 million or 9 percent from the previous year. Profits jumped by $427,000, rising to $2.8 million, the highest since the building opened in 1993, according to an unaudited income statement released today.

“These are phenomenal numbers,” Timothy Muldoon, the building’s general manager, said. “It has been a great year.”

-- Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- Governor Carcieri signed legislation this afternoon limiting Rhode Island's investment in Sudan and with companies that provide services to Sudan, where observers say government-supported militias have carried out genocide.

The militias have been targeting non-Arabs in Sudan's Darfur region. The governor's news release says the four-year civil ware there has killed more than 400,000 people.

Rhode Island joins 13 states in divesting from Sudan in an international effort to end the Sudanese government’s genocide in Darfur, according to a news release from the governor' s offce.

“We are joining the international community’s ongoing efforts to end this brutal campaign. We are sending a strong message to the Sudanese government,” Governor Carcieri said in a statement. “By putting this legislation on the books, we’re showing the world that we care deeply about the plight of the Sudanese people.”

Carcier was joined by General Treasurer Frank T. Caprio, who submitted the divestment legislation, Rep. Joseph Almeida, who sponsored the legislation in the House of Representatives, and Scott Warren, a Brown University student who was an advocate for the law.

-- projo.com staff writer Michael P. McKinney

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FALL RIVER, Mass. -- The U.S. Department of Labor has granted Trade Adjustment Assistance to former employees of the Quaker Fabric Corp. to helped displaced workers find new jobs.

Trade Adjustment Assistance, a federal program that aids U.S. workers hurt by international trade, offers up to two years of unemployment payments, job training, English language education, employment advice, as well as a job search allowance and money to help an unemployed worker obtain a new position.

Massachusetts unemployment assistance expires after 30 weeks.

In all, 900 Quaker employees lost their jobs earlier this month when the Fall River plant closed after six decades in operation.

There are at least 62 Rhode Island residents among the former employees.

“I’m pleased that Department of Labor has recognized the urgent needs of the hard working employees of Quaker Fabric," U.S. Sen. Edward M. Kennedy said in a statement today. "This needed assistance is a first step in ensuring that these families receive the benefits and training they deserve.”

-- projo.com staff writer Benjamin N. Gedan

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FALL RIVER, Mass. -- Massachusetts Governor Deval Patrick is scheduled to meet with former Quaker Fabric Corp. employees at 2 p.m. today at the site of a planned training center to be established specifically for the displaced textile workers.

Massachusetts has provided $250,000 for the City of Fall River to open a training facility at 139 South Main St. in Fall River. Patrick plans to tour that site today, along with Suzanne M. Bump, secretary of the Massachusetts Department of Labor and Workforce Development, and Fall River Mayor Edward Lambert.

Massachusetts has asked the U.S. Department of Labor to provide a $2.2-million National Emergency Grant to support the facility, according to Linnea Walsh, a spokeswoman for the Department of Labor and Workforce Development.

There were at least 62 Rhode Island residents among the 900 Quaker employees who lost their jobs when the Fall River plant closed earlier this month.

--Journal Staff Writer Benjamin N. Gedan

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FALL RIVER, Mass. -- Several federal lawmakers from Massachusetts today called on the U.S. Department of Labor to award a National Emergency Grant to Fall River to help the city assist hundreds of former Quaker Fabric Corp. employees who lost their jobs earlier this month.

The lawmakers -- U.S. Senators John F. Kerry and Edward M. Kennedy and U.S. Representatives James P. McGovern and Barney Frank -- urged Labor Secretary Elaine L. Chao to provide $2.2 million that was requested last week by the Massachusetts Department of Labor and Workforce Development.

Massachusetts recently provided $250,000 for the City of Fall River to open a special training facility for Quaker employees. The National Emergency Grant would support that facility, according to Linnea Walsh, a spokeswoman for the Department of Labor and Workforce Development.

"The goal is to get this center fully operational by mid-August," Walsh said. "There's a great need in Fall River."

Tomorrow, Massachusetts Governor Deval Patrick is scheduled to meet with former Quaker employees at the site of the planned training center.

There were at least 62 Rhode Island residents among the 900 Quaker employees who lost their jobs when the Fall River plant closed.
-- Journal staff writer Benjamin N. Gedan

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WASHINGTON -- A key House panel has recommended the purchase of parts for a second Virginia-class submarine in fiscal year 2008, a step toward doubling the production rate and potentially stabilizing the workforce at Electric Boat’s shipyards at Quonset Point and Groton.

As part of a shipbuilding boost that military panels have negotiated for months, the House Appropriations committee added $588 million for advance procurement of the submarine components to its overall $459.6-billion Pentagon spending measure for the fiscal year that begins next Oct. 1. That’s on top of the $2.65 billion that President Bush requested for a single submarine and associated costs.

If the Senate accepts the added spending in its still-pending defense appropriation, EB and it’s shipbuilding partner, Northrup-Grummun’s Newport News (Va) Shipbuiilding, will step up to the two-subs-per-year production rate in 2009, three years earlier than the Navy had sought.

The submarine program is ``essential to the future not only of the Navy but of this country, to continue to project force’’ on the seas as a way of deterring potential foes, said Rep. John Murtha, D-Pa., the influential chairman of the spending panel’s defense subcommittee, told reporters in a telephone conference.

-- John Mulligan of the Journal Washington Bureau

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An Atlanta company has gotten the $1.6 million contract to automate the scheduling and dispatching of the Rhode Island Public Transportation Authority's of RIde program, which gives door-to-door transportation for elderly and special-needs travelers.

RouteMatch Software, Inc. announced in a news release today that the contract "positions RIPTA to provide citizens with the latest transportation technologies to improve efficiencies, save operating costs and enhance customer service."

The news release states that RIPTA will be able to automate coordination with state agencies, "vehicles and driver management, invoicing, reporting and communication with riders."

The RIde program, which includes the para-transit vans, makes some 3,500 trips a day, five days a week. It also make some weekend trips, Karen Mensel, a RIPTA spokeswoman, said in an interview.

Known as "intelligent transportation technology," the new system will allow RIPTA to automatically identify where every para-teansit van is with a global positionining satellite system, Mensel said.

If plans change for a customer, Mensel said, the new technology will allow a driver to be notified in real time. That could mean not having to make a trip that turns out to have been called off or making a different trip than originally scheduled.

Mensel said that in the event a vehicle had mechanical problems during a series of pickups, the system could allow quick contact with another RIde vehicle nearby that could pick up some or all of the passengers from the other one.

Mensel said she did not know a firm date when the new technologies will be in place.

"We had simply outgrown our software solution and realized that we needed something not only flexible, scalable and powerful, but a real turnkey transportation management system that would satisfy our paratransit and Flex service requirements," said Doug Wood, RIde program director, said in the release.

-- projo.com staff writer Michael P. McKinney

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BOSTON -- EMC Corp. today said its second-quarter profit rose 19.8 percent as the data storage vendor recorded double-digit sales gains at its biggest businesses and posted its biggest revenue gain in more than two years.

Hopkinton-based EMC said net income rose to $334.4 million, or 16 cents per share, for the April-through-June period, up from a profit of $279.1 million, or 12 cents a share, in the same quarter a year ago.

-- The Associated Press

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FALL RIVER, Mass. -- The Quaker Fabric Corp. is moving to sell its real estate and all of its equipment to pay back $34.2 million in loans, according to a federal filing submitted this afternoon.

Quaker has hired RAS Management Advisors Inc. to manage “the liquidation of the assets of the company,” according to the filing with the U.S. Securities and Exchange Commission.

Cynthia L. Gordan, Quaker’s general counsel, did not return a call for comment. A spokesman for RAS Management was not available.

Earlier today, several federal lawmakers who represent Massachusetts said former Quaker employees might be eligible for back pay and health care coverage as a result, they say, of the company’s failure to warn workers at least 60 days before the plant closed.

The lawmakers -- U.S. Sens. John F. Kerry and Edward M. Kennedy and U.S. Rep. James P. McGovern -- asked Labor Secretary Elaine L. Chao to investigate whether Quaker had violated the Worker Adjustment and Retraining Act, known as WARN.

"They are out in the cold,” Kerry said in a statement. “I strongly urge Secretary Chao to take a good, hard look at the way this closing was handled.”

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 6:37 PM | Permalink | Comments (0)

PAWTUCKET – Hasbro Inc., the world’s second-largest toymaker, reported an unexpected profit on sales of Spider-Man and Transformers toys.

Excluding a $36.5 million charge to end part of a contract with Star Wars movie director George Lucas, earnings exceeded analysts’ estimates by 6 cents a share.

Overall, neet income fell 82 percent to $4.8 million, or 3 cents a share, from $27.1 million, or 7 cents, a year earlier, Hasbro said today in a statement.

Sales climbed 31 percent to $691.4 million. Purchases of action figures, games and vehicles tied to the Spider-Man 3 and Transformers films helped lift revenue. Sales of Littlest Pet Shop animals, Nerf sporting goods and board games also boosted profit.

-- Bloomberg News

Continue reading "Hasbro prospers with Spider-Man, Transformers" »

Posted by Kate Bramson at 8:11 AM | Permalink | Comments (0)

PROVIDENCE -- The state Economic Development Corporation is promoting a new tax incentive for companies in several high-wage industries, including information technology and biotechnology.

Rhode Island has seen steady employment growth, adding 800 jobs last month and reducing unemployment to 4.7 percent. But the average salary remains below the national average.

The new tax credit offers up-to $100,000 to reward investments in so-called innovation-based industries. In addition to biotechnology and IT, those sectors include: financial services, marine and defense manufacturing, professional, technical and educational services, and industrial and consumer product manufacturing and design.

"We're trying to attract and keep serial entrepreneurs in the state," Saul Kaplan, the executive director of the EDC, said in an interview today. "We need more of them in Rhode Island."

The tax credit was first proposed by the Rhode Island Science and Technology Advisory Council. It was approved by the General Assembly last year.

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 3:42 PM | Permalink | Comments (0)

Journal photo / Mary Murphy
Lisa Childress of Providence checks out the smart car today on Angell Street in Wayland Square in Providence, where it was parked perpendicular in the parking space.

PROVIDENCE -- Here’s your chance to check out the smart car, which is in town as part of smart USA’s “street smart” road show, a national tour to introduce the iconic two-seater to U.S. consumers.

Mercedes-Benz’s smart car, which has sold 750,000 models in 36 countries since it was launched in Europe in 1998, is stopping in Warwick today and near Waterplace Park in Providence tomorrow and Saturday.

I took a short test drive in one this morning with smart rep Kia Goddard and found the car fun to drive and comfortable, even on the highway where it more than held its own. It did not feel unsafe – it has a host of safety features – and, boy, does it attract a crowd.

Top speed is about 90 mph, while fuel consumption is more than 40 miles per gallon. And it is so short - just over 8-3/4 feet long by about 5 feet wide - that it can be parked perpendicular to the sidewalk!

The road show features 4 smart fortwo cars for test-drives on a closed course, a mobile smart exhibit with interactive displays and virtual safety demonstrations and a safety display – safety is the No. 1 question this side of the Atlantic, according to smart reps – featuring the “Tridion cell” (reinforced steel cage), dual and side airbags, electronic stability program and anti-lock brakes.

The display is open today at the Mercedes-Benz dealership at Inskip in Warwick and at 5 Moshassuck Street near Stillman Street and Exchange Street tomorrow, 12 to 8 p.m., and Saturday, 12 to 5 p.m.

- Journal auto writer Peter C.T. Elsworth, projoCarsBlog

Posted by Andrea Panciera at 2:58 PM | Permalink | Comments (1)

WASHINGTON -- The Easy Bake oven, an iconic toy with a four-decade history, has been recalled for the second time in less than a year, government safety advocates announced today.

In February Easy Bake's parent company, Pawtucket-based Hasbro Inc, recalled 985,000 of the toys because children were getting their hands and fingers trapped in the front opening, and some were burned. At that time, Hasbro offered a free repair kit to improve the oven's safety.

Since the February announcement, the company has received an additional 249 reports of children getting their hands or fingers caught in the ovens, including 16 reports of second- and third-degree burns. One burn required partial amputation of a 5-year-old girl's finger.

As a result, Hasbro is recalling all front-loading Easy Bake ovens sold since May 2006, even those that were repaired with the free kit distributed after the February recall.

-- The Associated Press

Continue reading "Easy Bake toy ovens recalled for 2nd time this year" »

Posted by Jack Perry at 11:00 AM | Permalink | Comments (0)

PROVIDENCE -- Textron Inc. today reported strong second-quarter results, adding up to a 26-percent increase in earnings per share from continuing operations on a 15-percent revenue increase.

“We experienced another strong quarter of solid revenue growth and improved profitability,” said Textron Chairman, President and CEO Lewis B. Campbell. “Demand for our products and further improvements from our Enterprise Management initiatives continue to drive enhanced results,” hel added.

Textron’s Board of Directors announced that it has approved a two-for-one split of its common stock, an increase in the common stock dividend and a new share repurchase program.

Second-quarter revenue was $3.2 billion, up 15 percent from last year. Second-quarter income from continuing operations was $1.69 per share, compared to $1.34 in the second quarter of 2006. Including discontinued operations, second quarter 2007 net income was $1.66 per share compared to $0.53 a year ago.

The results include a $48 million, or $0.25 per share charge at its Bell segment related to the Armed Reconnaissance Helicopter program based on plans contained in a non-binding Memorandum of Understanding signed with the customer in the quarter.

Year-to-date manufacturing cash flow from continuing operations was $280 million, resulting in free cash flow of $123 million.

The stock split will be effected through a 100-percent stock dividend, payable on Aug. 24 to shareholders of record as of the close of business on Aug. 3. Textron’s common stock will begin trading at the split-adjusted price on Aug. 27.

Continue reading "Textron reports strong 2Q results, OKs stock split" »

Posted by Andrea Panciera at 8:29 AM | Permalink | Comments (0)

Journal photo / Andrew Dickerman
Spokesman Mike Trainor, left, and lawyer Joseph Cavanagh talk with reporters about Papitto's apology.

Ralph R. Papitto, the former Roger Williams University Board of Trustees chairman who used a racial slur at a board meeting, issued a statement today apologizing and saying he has asked the Board of Trustees to remove his name from the university's law school.

"I deeply regret the pain that this remark has caused those in the African American community and other minorities," Papitto said in the statement. "This remark in no way reflects my deep respect for the African American community and for the many contributions African Americans have made to our society."

Papitto himself did not attend the press conference called for the purpose of delivering the statement. Instead, it was read by his representative, Mike Trainor. Papitto's lawyer, Joseph Cavanagh, also attended on Papitto's behalf.

Trainor explained that Papitto, 80, is still in recovery from quadruple bypass surgery and is not able to take part in "very stressful situations."

A group of 179 law students, a Roger Williams University professor and, today, the Rhode Island Minority Leadership/Legislative Caucus, have all asked that Papitto's name be removed from the university's law school -- the state's only law school.

In the statement, Papitto says, "A continued public discussion and debate over the name of the law school serves only to further damage the university. Therefore, and as a reflection of the sincerity of my regret and of my deep commitment to Roger Williams University, I have today asked the Board of Trustees to remove my name from the law school."

Papitto's statement also says: "I also wish to state that this is a truly isolated incident. I flatly repudiate allegations that this sort of comment in any way characterizes my conversational traits or behavior."

He added that over the past several days, "I have done much soul searching and reflection. As I have indicated repeatedly, I take full responsibility for this matter and ask for understanding from the community."

-- projo.com staff writer Michael P. McKinney

Audio: Hear Papitto's spokesman, Mike Trainor, read Papitto's statement at today's news conference

Audio: Hear Trainor and Papitto's lawyer, Joseph Cavanagh, answer questions at today's news conference

PDF: Read Papitto's statement saying his name should be removed from the law school

Your Turn: React to Papitto's apology

Extra: For more on the embattled former RWU chairman and for related links, go to www.projo.com/education

Continue reading "Update: Papitto apologizes for racial slur / Photo" »

Posted by Mike McKinney at 2:54 PM | Permalink | Comments (0)

Rhode Island's TPI Composities Inc., based in Warren, may build a factory in Iowa that would employ more than 700 workers.

TPI Composites could begin operations as early as next year, local officials said Monday. The company -- which manufactures wind turbines, airport buses and military Humvee cabs -- has not confirmed which product would be made in Newton, Iowa.

The operation would help offset Whirlpool Corp.'s decision to eliminate 1,800 jobs at its former Maytag factory and corporate headquarters in Newton. Whirlpool, which bought Maytag last year, will phase out the jobs by October.

"I think this is just an example of everybody pulling up their bootstraps and saying we're going to continue to thrive and move on," Bev Price, chairwoman for the Newton Development Corp., said Monday after local officials pledged support for the TPI project.

TPI -- which has four factories in China, Mexico and the U.S. -- is considering Newton and three other candidates to host its fifth factory. Company officials have not announced other possible sites.

TPI would pledge to create 723 jobs over three years, paying workers between $12.25 to $13.40 an hour, plus benefits, officials said.

The company is awaiting approval of more than $6 million in state and local incentives and could take up to three months to consider the deal, said Wayne Monie, TPI's chief operating officer.

-- The Associated Press

Continue reading "TPI Composites, in Warren, may build Iowa factory" »

Posted by Mike McKinney at 2:52 PM | Permalink | Comments (0)

A group of students at Rhode Island’s only law school, the Roger Williams University Ralph R. Papitto School of Law, want the school to drop Papitto's name.

About 75 law students signed a petition this afternoon, demanding university officials remove Papitto’s name.

The campaign was launched after it was reported that Papitto, the former chairman of the university's board of trustees, uttered a racial slur at a board meeting in May.

“We want to immediately express our outrage and condemn the outrageous statement by former Chairman Papitto,” said Matthew Jerzyk, a third-year law student who helped start the petition. “We have a collective desire to have his name taken off our school.”

Papitto, 80, admitted on talk radio that he used the "N" word at a May 2 meeting. He refused to discuss the incident with The Journal during two interviews late last week.

“It just slipped out,” Papitto told John DePetro on WPRO 630 AM. Papitto also spoke this afternoon on Dan Yorke's radio show on WPRO

Philanthropist Alan Shawn Feinstein said he will donate $1 million to start a diversity scholarship program, as a way to encourage more minority students to attend Roger Williams University.

“I would like to help make Roger Williams a leader in diversity,” Feinstein said.

Papitto said he was the one who called the May special meeting at which he apologized for his remark.

-- Journal staff writer Jennifer D. Jordan

Posted by Mike McKinney at 4:12 PM | Permalink | Comments (9)

Gas prices increased an average of four cents a gallon in Rhode Island last week, the second straight week of increases, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.979 at the self-service pump, according to AAA's weekly survey.

AAA attributes the increase to stronger demand and rising crude oil prices.

Rhode Island is eight cents below the national average of $3.059.

Posted by Jack Perry at 10:09 AM | Permalink | Comments (0)

Ralph R. Papitto is talking with John DePetro on WPRO 630 AM, about a Providence Journal story on Saturday saying that the longtime chairman of the board of trustees at Roger Williams University has stepped down.

The university said the man for whom the Roger Williams law school is named retired because he is 80 and because he wanted to spend more time with his family.

But a former trustee says Papitto, a board member for about 40 years and chairman for the last 18, was forced to resign after he uttered a racial slur at a May 2 trustees meeting. The trustee, along with two other trustees who demanded Papitto’s resignation, has since been removed from the board.

She says they were terminated — two without explanation — as retaliation for pushing for Papitto’s removal.

The Journal reported that at the May 2 meeting, the trustee said, Papitto and the trustees were discussing a sternly worded report criticizing the board’s lack of diversity — of its 16 members, 14 are white men. Papitto became agitated, trustee Dr. Barbara H. Roberts said, and used the word “n-----” while talking about diversifying the board.

Papitto said to DePetro today that the word just slipped out – but it’s not something he has ever said before.

“I happened to use the word … It kind of slipped out," he said. "I don’t use that word."

He said the first time he heard it was on the radio – in rap music.

Papitto has taken issue with the criticisms leveled by the board member in The Journal story.

“This is the first time she’s ever mentioned anything like this,” he said.

Papitto refused last week to comment to The Journal on the epithet and maintained that he left the board of his own accord.

“This is a private institution and we consider board-meeting discussions confidential,” he said. “I stepped down because the time has come.”

-- projo.com staff writer Kate Bramson, with Journal reports

Posted by Kate Bramson at 9:29 AM | Permalink | Comments (8)

Journal photo / Bill Murphy
Mashpee Wampanoag tribal chairman Glenn Marshall answers questions this morning about plans for a tribal casino in southeastern Massachusetts.

LAKEVILLE, Mass. – Businesspeople gained little insight today into the Mashpee Wampanoags' plans for a casino in southeastern Massachusetts during a meeting with the tribe’s council chairman.

More than 100 people turned out to meet Glenn Marshall, the Wampanoag chairman, and to learn more about a casino proposed for neighboring Middleboro, just across Route 495 from Lakeville and the LeBaron Hills Country Club where the meeting took place.

The tribe and its backers want to spend more than $1 billion to open a casino in Middleboro by 2010, with slot machines, table games, a 1,500-room hotel, golf courses and other attractions similar to the Foxwoods and Mohegan Sun complexes in Connecticut.

But Marshall offered few details about the tribe’s plans during a rambling speech at a breakfast hosted by the Cranberry County Chamber of Commerce, which represents nine towns around Fall River. The speech followed a lengthy video about the Mashpee Wampanoags that was part documentary, part marketing pitch.

Marshall did say a casino project would generate about 2,000 to 2,700 temporary construction jobs and 5,000 to 7,500 permanent jobs. The latter work would split fairly evenly between gaming-related tasks and other resort-type service jobs. Who’ll do the construction work isn’t set.

Where all that work will take place is also not set, a point Marshall noted during a short question-and-answer session following his speech. The primary focus of the tribe and its backers appears to remain on Middleboro, where they’ve pulled together about 500 acres through various land deals.

How long would it be before a casino opens? “The process is probably going to be longer than people think,” Marshall said.

-- Journal staff writer Paul Grimaldi

Continue reading "Mashpee Wampanoag casino plans still up in air" »

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FALL RIVER, Mass. -- The struggling Quaker Fabric Corp. in Fall River owes $34.2 million to three lenders, including $14.7 million to Bank of America, according to a federal filing the company made this week.

On Monday, July 2, Quaker announced that it was failing to repay its lenders and that it might be forced to close operations. The company employs 900 people, including at least 62 Rhode Island residents.

The next day, Bank of America and two other lenders formally declared the company in default, according to the filing with the U.S. Securities and Exchange Commission.

In the filing, Quaker also announced that it had fired three top executives: James A. Dulude, vice president of manufacturing, Thomas Muzekari, vice president of sales, and Michael E. Costa, the principal accounting officer.

Company executives were not available for comment today.

-- Journal staff writer Benjamin N. Gedan

Posted by Andrea Panciera at 1:59 PM | Permalink | Comments (0)

The New England power system is running comfortably today -- well below record levels.

Last summer's heat wave pushed electricity use on Aug. 2 to 28,138 megawatts, a record.

Power use today is only expected to reach 24,000 megawatts, said Ellen Foley, a spokeswoman for ISO New England.

It's very hot in western New England, but it's cooler in the east keeping power use in check, Foley said.

The ISO, a cooperative that manages the region's electric grid, estimates that 1 megawatt of electricity can power 750 to 1,000 homes.

Posted by Peter Phipps at 2:08 PM | Permalink | Comments (0)

FALL RIVER -- Employees at Quaker Fabric Corp., in Fall River, are being encouraged today to file for unemployment insurance with the Massachusetts Department of Workforce Development, signaling a likely end of the company's 62-year run as a leading textile manufacturer in New England.

Last Monday, Quaker Fabric expressed "significant uncertainty" about its ability to meet its requirements to lenders that have kept the company afloat despite years of losses.

Today, Quaker Fabric is holding meetings with employees that include presentations about state unemployment and health care offerings that would be available if it does not resume operations at the end of its annual shutdown period on Sunday. The shutdown began last Monday.

"This is bad," Cynthia L. Gordan, Quaker vice president and general counsel, said in an interview today.

-- Journal staff writer Benjamin N. Gedan

Posted by Peter Phipps at 2:40 PM | Permalink | Comments (0)

PROVIDENCE – Regular unleaded gasoline prices in the state have risen this week, after five consecutive weeks of decreases, but just by one penny, according to AAA Southern New England.

The self-serve price is averaging $2.93 per gallon, three cents below the national average, according to AAA’s price survey conducted today. Self-serve unleaded gasoline is ranging in price from $2.81 to $3.10, AAA reports. At this time a year ago, the average price was $3.05.

The average price for self-serve midgrade and premium unleaded gasoline remains the same as last week -- $3.07 per gallon and $3.19 per gallon, respectively.

On AAA’s Gas Savings Tips & Tools Web page, find the most up-to-date local gas prices.

Posted by Kate Bramson at 10:55 AM | Permalink | Comments (0)

All RIPTA routes – excluding special services -- are free today because of Department of Environmental Management predictions that the air quality will reach unhealthy levels by this afternoon.

The poor air quality is due to elevated ground-level ozone concentrations.

The Department of Health warns that unhealthy levels of ozone can cause throat irritation, coughing, chest pain, shortness of breath, increased susceptibility to respiratory infection and aggravation of asthma and other respiratory ailments. These symptoms are worsened by exercise and heavy activity.

The children, elderly and people who have underlying lung diseases, such as asthma, are at particular risk of suffering from these effects. As ozone levels increase, the number of people affected and the severity of the health effects also increase.

Posted by Kate Bramson at 9:33 AM | Permalink | Comments (0)

A state health inspector found ``60 to 70’’ tubes of suspected tainted toothpaste at a Building 19 store in Pawtucket today, prompting the store chain to pull the product from all the shelves of its several local stores, said Andrea Bagnall Degos, a spokeswoman for the state Department of Health.

The state health inspector was sent out today to search discount stores in Rhode Island for tainted toothpaste after about 160 tubes of the Chinese-manufactured paste were found in Massachusetts. The questionable brands found in Rhode Island today: Dentakleen and Dentakleen Jr.

Read the public health advisory issued by the Department of Health.

-- Journal staff writer Tom Mooney

Continue reading "Suspect toothpaste pulled from Pawtucket Building 19" »

Posted by Peter Phipps at 4:39 PM | Permalink | Comments (1)

Rhode Island Hospital and the union representing its nurses and technologists have reached a tentative agreement on a new four-year contract, the union announced today.

Under the agreement between the hospital and United Nurses and Allied Professionals Local 5098, pay increases will range from 16.5 percent to 33 percent over four years, according to the union.

By the end of the contract, top pay rates will be $48.74 per hour for registered nurses, $39.14 per hour for respiratory therapists and $45.14 per hour for radiologic technologists.

The union's approximately 2,200 members are scheduled to vote on the contract July 17. If it's approved, the contract will replace the current contract, which isn't due to expire until June of next year.

Linda McDonald, president of the union, said in a statement that the new contract provides "important economic security to our members during what is likely to be a time of economic insecurity in health care over the next four years."

In an interview, she added, "We really hope this will make recruitment and retention easier for Rhode Island Hospital."

The agreement was reached on Monday after nine bargaining sessions.

Posted by Jack Perry at 1:00 PM | Permalink | Comments (3)

The Health Department is monitoring the Briarcliffe Manor nursing home after two patients were declared in “immediate jeopardy” because of severe bed sores and transferred to another nursing home.

A third patient who suffered a bed sore that tunneled from the bottom of his spine through to his groin had already left the nursing home for the hospital early last month.

All three patients were terminally ill and undergoing hospice care. Raymond Rusin, the Health Department’s chief of facilities regulation, said these patients did not get the level of attention that their frail conditions required.

The nursing staff also failed to notify the patients’ families of the bed sores as required by state law, and the home’s director of nursing was not aware of the problems.

The “immediate jeopardy” ruling, declared on June 22 and made public today, means that the nursing home’s failure to follow regulations “has caused or is likely to cause serious injury, harm, impairment or death to a resident,” according to federal law.

The finding triggered a threat from the U.S. Centers for Medicare and Medicaid Services to stop paying for services there effective July 19, which could have shut the nursing home.

But Rusin said because Briarcliffe submitted a preliminary plan of correction, the home is no longer in danger of losing its Medicare certification or closing down.

It still must demonstrate that it has identified and corrected the problems that led to the bed sores, also called pressure ulcers.

“The facility responded very quickly and has been very positive in terms wanting to identify exactly what the issue is,” Rusin said. “We’ve continued to monitor. They have done exactly what they said they were going to do.”

Posted by Peter Phipps at 5:47 PM | Permalink | Comments (1)

Gasoline prices in Rhode Island have dropped for the fifth straight week, according to AAA Southern New England.

The average price is $2.929 for a gallon of regular, unleaded gasoline at the self-service pump, according to AAA's weekly survey.

That's one cent less than last week.

Posted by Jack Perry at 10:01 AM | Permalink | Comments (0)

ATLANTA -- Delta Air Lines Inc. canceled about 200 flights to and from several northeastern airports Thursday to minimize delays caused by heavy thunderstorms forecast across the region.

Atlanta-based Delta said it made an early call to cancel the flights in hopes of giving at least 12-hours notice to affected passengers via automated e-mail and cell phone messages or calls from reservations staff. Passengers could ask for refunds or switch to other flights for no additional fees.

The airline said flights were canceled in New York; Newark, N.J.; Hartford, Conn.; Providence, Boston; Washington; Baltimore and Philadelphia.

Joe Kolshak, Delta's executive vice president for operations, said the canceled flights made up about a third of Delta's departures and arrivals in the Northeast Thursday.

He said Delta trimmed the flights after the Federal Aviation Administration alerted airlines Thursday it would slow air traffic in the region because of forecasts of heavy rain and lightning.

Kolshak said the leaner schedule would reduce delays among the remaining Delta flights.

"While it does inconvenience some people, the goal is to minimize the impact to as few people as possible," he said.

-- The Associated Press

Continue reading "Delta cancels some flights to RI, rest of northeast" »

Posted by Mike McKinney at 6:24 PM | Permalink | Comments (0)

PROVIDENCE -- A child advocacy group complained today to the Federal Trade Commission that ads and toys tied to the upcoming "Transformers" movie are aimed at children as young as 2 years old even though the film is rated PG-13.

The movie is getting a premiere tonight at Providence Place Cinemas. Showtimes are 7:30 p.m. and 10:30 p.m.

And the Transformers toys are the focus of the "BotCon" convention this weekend at the Rhode Island Convention Center. This is the first time the convention, now in its 11th year, is being held in the state. There will be new toys and the old ones from the early 1980s. Check out the BotCon Web site by clicking here.

The Boston-based Campaign for a Commercial-Free Childhood called on the commission to work with the toy industry and media companies to develop a uniform rating system so toys tied to PG-13 movies would not be marketed to children younger than 13. It also asked the FTC to investigate the marketing of PG-13 movies to children.

"We are reviewing the letter with great interest," said Jackie Dizdul, a spokeswoman for the FTC.

Hasbro spokesman Wayne Charness said in a written statement that parents can rely on the existing toy coding and movie rating to decide whether they are appropriate for their children.

"We believe that we are already taking the necessary steps in keeping the public informed so they can make decisions within the home, as opposed to further government mandates," Charness said, pointing out that Transformers toys have been around since 1984, long before the movie.

-- The Associated Press

Continue reading "Advocacy group complains about 'Transformers'" »

Posted by Mike McKinney at 6:21 PM | Permalink | Comments (0)

PHILADELPHIA -- Southwest Airlines is trimming service between Providence and Philadelphia as part of a broader move to cut some routes nationwide.

Southwest plans to trim service between Providence and Philadelphia from six to five daily round-trips.

Also, Southwest will stop flying direct flights from Philadelphia to California this fall, at least temporarily.

Nationally, the airline plans to cut 39 round-trips and add 45.

The discount carrier is wrestling with high fuel costs and a slow economy.

-- The Associated Press

Posted by Jack Perry at 7:09 AM | Permalink | Comments (0)

PROVIDENCE -- Providence Mayor David N. Cicilline is proposing a property-tax increase of just over 4 percent and major cuts to balance the city’s budget.

The city faces a budget deficit in excess of $27.5 million, when the city factors in an accounting error in the school budget and the loss of several additional revenue streams.

Even if Cicilline gets his proposed tax increase through the City Council, it would only amount to $10 million. The city would then have to make $17 million in cuts or tap one-time revenues.

Cicilline announced today that to fill that gap, he will look to eliminate any unfilled city positions -- believed to be several dozen. He said he would also cut the school department, and introduce mandatory four-day furloughs and increase health care costs for the few non-union city employees.

More details will be available when he presents the completed package to the City Council on Monday.

Cicilline blamed the city’s financial situation on the state for shifting the tax burden from the state to local property taxpayers, and, in the short term, for failing to fund education and for rejecting his package of proposals to increase targeted fees.

“The state budget passed last week will have serious consequences for every city and town in Rhode Island,” Cicilline said.

“I put forward legitimate legislative options that would have eliminated costly mandates and moved certain costs away from property tax payers to a pay-for-service model,” Cicilline said.

“The state has consistently decreased its share of school costs over the past five years, leaving local property tax payers to make up the difference.

Instead of providing some measure of property tax relief, state leaders have placed us on an unsustainable path that guarantees growing state deficits and threaten our quality of life,” Cicilline said.

-- Journal staff writer Daniel Barbarisi

Posted by Mike McKinney at 3:32 PM | Permalink | Comments (0)

With a National Weather Service heat advisory issued at 10:20 a.m. today, National Grid stopped shut offs of power to customers who haven't kept up with bills.

Spokesman David Graves said that comes under a moratorium approved last year for times of excessive heat, which includes heat advisories and warnings. Advisories are issued when a figure, known as the heat index, is forecast to be at least 100 degrees, and a warning is given when the index is forecast to be at least 105 degrees.

In December, the state Public Utilities Commission agreed to put in place a heat-related moratorium on shutoffs, making Rhode Island the seventh state to do so at the time.

No heat warning or advisory was issued for yesterday. Graves said that before this morning's advisory there could have been some shutoffs.

Graves said the company has had people going out to contact customers in danger of losing service because of not paying bills.

Posted by Mike McKinney at 2:26 PM | Permalink | Comments (0)

PROVIDENCE -- The split taking traffic from Route 195 west to Route 95 south will be closed tomorrow night for work on a relocation project, the state Department of Transportation announced today.

DOT said it's closing the connection for driver and highway worker safety. All lanes will reopen for Thursday morning's commute, the DOT promised.

There will be detour signs and some other relating closings.

Drivers on I-195 West who want to go south on Route 95 will be directed to take I-95 north to Exit 22B to Routes 6/10 south. That will rejoin Route 95 South at Exit 16, south of the work zone.

Traffic going to the Rhode Island/Women & Infants/Hasbro Hospitals campus should use exit 2 from Route 195 west and follow signs to the hospitals. The DOT encourages through traffic on Route 95 South to use Route 295 or the Routes 6/10 detour to avoid delays.

The DOT said the closings are needed so workers can adjust the steel beam assembly put in place in late April and May when parts of the highway were closed.

Future lane and highway closures may be needed over the summer, as well as a series of highway closures beginning in late July or early August when workers will begin setting steel beams for a new ramp from Route 95 South to Route 195 East.

Here's tomorrow's closure schedule:

-- Route 95 north: One lane closed 8 p.m. to 9:30 p.m., between exit 18 (Thurbers Avenue) and Exit 20 (I-195).

-- Route 195 west ramp to Route 95 south: closed 11 p.m. to 5 a.m.

-- Route 95 south: Three left lanes closed 11 p.m. to 5 a.m. between exits 18 and 20.

Posted by Mike McKinney at 3:03 PM | Permalink | Comments (0)

GROTON, Conn. -- A Connecticut couple has offered $4.5 million at auction for the Watch Hill mansion belonging to the owner of the defunct Bess Eaton coffee-shop chain.

The couple’s winning bid is short of the mansion’s assessed value and could be rejected by Louis A. Gencarelli Sr. and his wife, Karen E. Gencarelli, who have been trying to sell the property -- known as Treasure Hill -- for more than three years.

The 17-room, 10,500-square-foot house at 2 Kidds Way in Watch Hill has an assessed value of close to $7 million, according to records from the Westerly tax office.

The Westerly-based Bess Eaton chain was sold in a 2004 bankruptcy court auction to Tim Hortons Inc, the Canadian coffee-shop chain that was seeking expand in the United States.

The Kidds Way house has been on the market since Louis Gencarelli pushed the coffee-shop chain founded by his family into bankruptcy. The original asking price for Treasure Hill was $7.75 million. The house was built in 1988 to replace a house that burned to the ground in 1987.

Gencarelli bought the property in 2002 for $3.15 million from Anthony Fonda. Treasure Hill stands on the second-highest elevation in Watch Hill and comes with little more than one acre of land. It overlooks the Atlantic Ocean.

-- Journal staff writer Paul Grimaldi

Continue reading "Watch Hill mansion draws $4.5M bid at auction" »

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Gasoline prices have dropped in Rhode Island for the fourth consecutive week – for a total of 15 cents per gallon during that period, according to AAA Southern New England.

Self-serve, regular unleaded gasoline is averaging $2.93 per gallon. That’s three cents less than last week and four cents below this week’s national average.

Prices around Rhode Island are ranging 31 cents for self-serve, regular unleaded gasoline – from $2.83 to $3.14. The priciest gasoline is full-serve premium unleaded, which is averaging $3.30 in today’s AAA survey of prices.

On AAA’s Gas Savings Tips & Tools Web page, find the most up-to-date local gas prices.

Posted by Kate Bramson at 11:41 AM | Permalink | Comments (0)

Journal photo/Bill Murphy
Steel workers put a final beam in place at the new Fidelity Investments building in Smithfield.

SMITHFIELD -- Boston-based Fidelity Investments held a "topping-off" ceremony today for its newest and largest building in Rhode Island, a 577,000-square-foot structure being constructed on its 500-acre Smithfield campus.

The building will house 1,000 employees, according to the mutual funds giant.
The Boston-based company has been expanding in Rhode Island over the past few years. In 1998, it opened its first office in Smithfield, leasing several hundred acres of state-owned land to construct a 250,000-square-foot building.

Two years later, Fidelity completed a second building in Smithfield, a 275,000-square-foot structure. Combined, the two, four-story buildings cost $100 million. The newest building will triple Fidelity’s total investment in the 500-acre campus.

-- Journal staff writer Benjamin Gedan

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SMITHFIELD -- Alexion Pharmaceuticals has received permission to sell its drug Soliris in Europe, greatly expanding the market for the medication it plans to produce in its new facility in Smithfield.

The U.S. Food and Drug Administration approved the drug in March, and Alexion began selling it in the U.S. the following month. This morning, the European Medicines Agency, a London-based Europen Union body, granted permission for sales in Europe, according to Alexion.

Soliris is the only approved therapy in Europe and the U.S. to treat paroxysmal nocturnal hemoglobinuria, an illness that destroys red blood cells. The disease can cause anemia, severe fatigue, pain and kidney disease.

-- Journal Staff Benjamin N. Gedan

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Journal photo / John Freidah
Alexion President and COO David Keiser, second from left, speaks with R.I. Economic Development Corporation Executive Director Saul Kaplan, left, Senior Director Jim Rich and Governor Carcieri at the ribbon-cutting ceremony in Smithfield.

SMITHFIELD -- Alexion Pharmaceuticals opened its Rhode Island manufacturing plant today, giving tours of the facility where it hopes to produce the drug Soliris, used to treat a rare blood disease that destroys red blood cells.

The company already produces the drug at a contract laboratory in New Hampshire. It has hired more than 100 people to staff the Smithfield plant, its first commercial manufacturing facility.

At a ceremony today, Governor Carcieri celebrated the company's arrival as a sign that the state's nascent biotechnology sector was growing.

"This is really an exciting day," he said. "This is the future."

-- Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- The fourth suspect this week admitted his role in a scheme to steal debit and credit card information from Stop & Shop customers.

Mikael Stepanian, 28, of Studio City, Calif., pleaded guilty to federal charges of conspiracy to commit fraud and aggravated identity theft, according to U.S. District Court documents.

He is the last of four men arrested in February at a Stop & Shop in Coventry as they tried to retrieve a doctored PIN pad from a checkout lane.

Federal and state authorities later charged the men with helping divert $132,000 from customers at two of the supermarket chain’s Rhode Island stores.

Three other suspects, all from California, pleaded guilty in the same case: Gevork Baltadjian, 20, of Winnetka; Arutyun Shatarevyan, 20, of Los Angeles; and Arman Ter-Esayan, 22, of Valley Glen.

Law-enforcement officials said the four men, all from the Los Angeles area, flew into Southern New England twice in February to pull off the scheme. They are accused of removing or trying to remove PIN pads from Stop & Shops in Rhode Island and Massachusetts.

-- Journal staff writer Paul Grimaldi

Continue reading "Fourth suspect pleads guilty in debit-card scheme" »

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PROVIDENCE -- In a big dust-up today, Governor Carcieri withdrew his nomination of Adelita Orefice for state Labor Department director and blasted George Nee, secretary treasurer of the state AFL-CIO with killing Orefice's nomination.

The governor, a Republican, charged that the maneuver was retaliation for Orefice's role as a whistleblower in the Beacon Mutual case.

Nee readily acknowledged that he intended to speak against Orefice’s confirmation at the cancelled hearing.

Why?

"Because I think she has been a very poor director of the Department of Labor and Training. I’ve dealt with directors since 1976. They’ve come from the business community. They’ve come from the labor community and they’ve come for governmental service and I would say she’s been the worse."

He cited a number of issues of concern, including what he called the “pathetic’’ enforcement of prevaiing wage laws, and ill-advised use of state p risoners to transport documents with social security numbers, that were inadvertently dumped at the state landfill, tback to her department for shredding.
Asked if the union campaign to scuttle her nomination was payback for her role in bringing problems at Beacon to light, he said: “Beacon is behind us. The statements in the governor’s press release are not even worthy of comment. He’s gotten to the point of being irrelevant and pathetic.’’

More than a year ago, Orefice disclosed the results of an internal audit at Beacon Mutual Insurance Co. that led to investigations and what Carcieri called "the expulsion of several union leaders" from the company's board of directors.

Nee, the governor said, lost $20,000 a year when he lost his position at Beacon.

“In the last few days, we understand that George Nee -- who lost his seat on the Beacon board in the wake of the scandal -- has been actively lobbying against Adelita’s re-confirmation," Carcieri said in a news release.

"He has even gone so far as to personally warn people not to testify on her behalf.”

Beacon is the state's dominant provider of workers' compensation insurance with about 14,000 policyholders. At least one now-former Beacon official has been indiated by a statewide grand jury on charges of conspiracy and insurance fraud.

And an outside review of Beacon released in April 2006 found indications of unfair pricing practices and preferential treatment by Beacon of some of Rhode Island's big businesses.

Beacon's board hired a new chief executive with ties to the governor.

The appointment of DeOrsey is part of a management overhaul of Beacon that began more than a year ago with the firing, for cause, of Clark and Beacon's president and chief executive officer, Joseph A. Solomon.

An outside review of Beacon released in April 2006 turned up evidence of unfair pricing practices and preferential treatment by Beacon of some of the state's big businesses.

Carcieri "temporarity withdrew" Orefice's nomination for Department of Labor & Training as the Senate Labor Committee was due to vote on the nomination at its 2:30 p.m. meeting today.

“It is clear that the Senate planned to reject Director Orefice’s nomination as political retaliation for standing up to organized labor and defending Rhode Island taxpayers,” Carcieri said in the statement. “Members of my staff have been told that her nomination was doomed to failure.”

He added: "It is shameful that the Senate Labor Committee has decided to put politics before the best interests of the Department of Labor and Training. This is just another indication that the union leadership is actually in charge of the Rhode Island State House.”

-- projo.com staff writer Michael P. McKinney and Katherine Gregg, Journal State House bureau chief

Continue reading "Carcieri pulls labor nominee; blasts Nee" »

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Governor Carcieri will present "Well Workplace" awards to 44 Rhode Island organizations this morning.

The organizations recently achieved "Well Workplace" status by the Wellness Councils of America.

The awards will be presented at a breakfast sponsored by the Worksite Wellness Council of Rhode Island.

Posted by Jack Perry at 7:04 AM | Permalink | Comments (0)

NORTH KINGSTOWN -- A Florida developer plans to build a $150-million shipbuilding and repair yard for servicing "mega-yachts" at Quonset Point, according to the Quonset Development Corporation, the agency that controls the former Navy base in North Kingstown.

The company, Island Global Yachting, began discussing the project with the QDC in January. Last night, the QDC granted the company access to the 43-acre site, where it says it will employ as many as 450 workers servicing yachts ranging from 80 to 600 feet in size.

In addition to a shipbuilding facility, Island Global Yachting hopes to construct two buildings for repairing so-called mega-yachts, as well as space for yacht storage and sales. Services would include painting, general maintenance and the upgrading of electrical systems.

Mega-yachts require up to $5 million in maintenance and refitting every year, according to the Quonset Development Corporation.

In all, the company says the 500,000-square-foot facility, including equipment to raise and transport yachts measuring 600 feet, would employ about 400 craftsmen, according to state records. They would earn an average salary of $50,000.

The company says it could take two years to complete the final design and obtain the necessary permits from federal and state agencies.

--Journal staff writer Benjamin N. Gedan

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Gasoline prices in Rhode Island have dropped for the third straight week, according to AAA Southern New England.

The average price is $2.969 for a gallon of regular, unleaded gasoline at the self-service pump, according to AAA's weekly survey. That's four cents less than last week.

The price has dropped 12 cents in the past three weeks, AAA said.

Posted by Jack Perry at 10:38 AM | Permalink | Comments (0)

Journal photo / Bill Murphy
The first Verizon FIOS truck hits the streets to bring cable television competition to the West Bay area, which serves 79,000 homes in seven communities.

WARWICK -- Verizon Communications launched its cable television service in the West Bay area this morning, becoming the first new provider of cable TV in Rhode Island in about 20 years.

The company held a launch event at a new Verizon dispatch facility in Warwick that included a ribbon "cutting" ceremony: a convoy of 10 Verizon service trucks rolled off the lot to begin the first installations. The lead truck broke through a red ribbon that officials had stretched between two poles.

The company has permission from the state to offer its FiOS TV service to Service Area 6, which includes 79,600 households in Coventry, East Greenwich, Exeter, North Kingstown, Warwick, West Warwick and West Greenwich.

Its expanded tier will cost customers $42.99 per month plus $4.99 for a cable box and remote control.

Continue reading "Verizon launches cable service in West Bay / Photo" »

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HOLYOKE, Mass. -- Gordon van Welie, the man responsible for making sure the lights stay on in New England, is usually anxious this time of year.

Even though it looks like millions of residents won't have to worry about being able to fire up their air conditioners to battle the upcoming summer heat, he knows the demand for electricity is only going to grow.

"We believe we have enough capacity available to meet the projected demand for electricity this summer," he said. "Assuming everything is running and nothing big breaks."

As president of ISO New England, which manages the region's power grid from a control room that's slightly larger than a tennis court, part of van Welie's job is to make sure there's enough power to feed the needs of about 14 million residents in six states.

-- The Associated Press

Continue reading "Ample energy forecast for New England this summer" »

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HYANNIS, Mass. -- Cape Air is grounding most of its fleet of Cessna 402 aircraft to make engine repairs, a spokeswoman for the regional airline said last night.

Hundreds of flights will be affected, Cape Air spokeswoman Michelle Haynes told the Cape Cod Times. The Massachusetts-based airline serves Cape Cod, the islands of Martha's Vineyard and Nantucket, as well as destinations in Florida, the Caribbean and Micronesia. It offers flights from T.F. Green Airport in Warwick to Nantucket and Martha's Vineyard.

"This is the most painful chapter in this airline's 18-year history," Haynes said.

Haynes said Cape Air discovered abnormal wearing in the planes' engines related to the crankshaft counterweight and decided to ground the planes after consultation with Federal Aviation Administration officials and the manufacturer of the aircraft's engine, Continental Teledyne.

"The unusual wear pattern on these parts has to be fixed," Haynes said. "It's a tough decision, but it's the only decision."

She said a handful of the 49 planes have been repaired, but Cape Air expects to cancel many flights through the weekend.

"We expect the entire airline to be up and operational by early next week," she said.

She said the airline will be posting revised flight information on its Web site, flycapeair.com.

Haynes said Cape Air was committed to "finding options" for customers whose flights are canceled. "Our heart goes out to them," she said.

-- The Associated Press

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Superior Court Judge Gilbert Indeglia this afternoon rejected the state’s request to remove Hinckley, Allen Snyder as the lawyer for the Southern Union Co. in a major Tiverton pollution case.

Indeglia said that while Jeffrey M. Grybowski may not have shown the best judgment, the governor’s former chief of staff had done nothing to breach the confidentiality of information he was privy to about the Southern Union case when he worked at the State House.

The judge ruled that Grybowski and his firm took the proper steps when he joined Hinckley Allen in April to shield him from any information in the matter.

Lawyers for the Rhode Island Department of Environmental Management had asked that Hinckley Allen be disqualified because Grybowski, in a conversation with DEM chief legal counsel Patty Allison Fairweather, had offered to help settle the case.

The subject of settling the case came up in when Grybowski called Fairweather in April to inform her that he would be screened from the case. The state argued that that raised concerns that Grybowski was not adequately screened. Hinckley Allen countered that Grybowski never discussed anything substantive.

Indeglia said that while Grybowski perhaps shouldn’t have been the one to carry Fairweather’s message about a possible settlement between the state and Southern Union, neither Grybowski nor Hinckley Allen had done anything to breach the confidentiality or merit the firm’s removal from the case.

--- Mike Stanton, Journal Staff Writer

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WARWICK -- Hundreds of small companies from throughout New England are gathering today at the Crowne Plaza hotel to pitch their products and services to the Pentagon and major military contractors, including Lockheed Martin and Textron Inc.

The annual "matchmaker" event was last held in Rhode Island about four years ago. It was organized by the Rhode Island Procurement Technical Assistance Center, an arm of the state Economic Development Corporation that helps local small businesses seek out lucrative contracts to assist the U.S. military.

"For our state, the defense industry is extremely important," Governor Carcieri told the gathering this afternoon.

--Journal Staff Writer Benjamin N. Gedan

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Gasoline prices in Rhode Island have fallen for the second week in a row, according to AAA Southern New England.

The average price has fallen six cents to $3.009 for regular, unleaded gasoline at the self-service pump, according to AAA's weekly survey.

Before falling last week, the price had increased for 15 straight weeks, AAA said.

The average price is still 59 cents higher than it was at the beginning of the year.

Prices have fallen nationally, and Rhode Island is four cents below the national average of $3.049 cents per gallon, AAA says.

Watch AP video on the national trend in gas prices.

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CAMBRIDGE, Mass. -- In a perfect world, there'd be no wires.

They clutter the view, get tangled behind desks and limit how far networks can reach. That's why the telegraph gave way to the radio. Cell phones unstrung telecommunications. Wi-Fi liberated computer data.

Now even the last knotty wire that seemed destined to remain - the power cord - could be on its way out.

Massachusetts Institute of Technology researchers have announced they had made a 60-watt light bulb glow by sending it energy wirelessly, potentially previewing a future in which cell phones and other gadgets get juice without having to be plugged in.

The breakthrough, disclosed in Science Express, an online publication of the journal Science, is being called "WiTricity" by the scientists.

The concept of sending power wirelessly isn't new, but its wide-scale use has been dismissed as inefficient because electromagnetic energy generated by the charging device would radiate in all directions.

-- Associated Press

Continue reading "And we thought the Clapper already did this ..." »

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BOSTON -- Angela Buckborough Platt, the Cumberland bookkeeper who embezzled $6.9 million, today received a four-year prison term.

U.S. District Court Judge William Young also sentenced Platt, 43, to serve three years of supervised probation and replay J&J Materials of Rehoboth $4.48 million.

Platt, speaking in a soft voice in between sobs, told the court she was sorry and "very ashamed."

Platt, described as one of J&J's most-trusted employees, used the company's money to pay for what the government called an "epic shopping spree," which culminated in a million-dollar wedding for her daughter.

Other purchases included an 104-acre estate in Vermont, 30 acres of woods in Maine and 28 automobiles.

She pleaded guilty in February to one count of interstate transporation of stolen property.

-- Philip Marcelo, Journal Staff writer

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PROVIDENCE – Emergency responders are conducting a drill at 9 a.m. today to test how quickly they can evacuate nine businesses at the Port of Providence.

The premise for the evacuation is that a plane has crashed at the port, according to James Taylor, chief of communications for the Providence Fire Department.

The drill gives the Providence Fire Department an opportunity to test its reverse 911 system, Taylor said. The system allows the communications department to record a message and use the reverse 911 calling system to phone the affected businesses and replay that message, telling them they must evacuate the area.

Also, the drill will test how quickly the Rhode Island Public Transit Authority can get buses to the port in order to evacuate the businesses.

Participating businesses include KeySpan, American Equipment Rental, the Narragansett Bay Commission and the Johnson & Wales location at the port.

-- projo.com staff writer Kate Bramson

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PROVIDENCE -- A bill was introduced in the General Assembly today to extend the state's current contract with Newport Grand for another 5 years.

If passed, the bill would lock in the facility's current gaming tax rate through 2020.

The bill would also restrict the City of Newport's ability to regulate Newport Grand. The city is embroiled in a court battle with Newport Grand that has prevented the facility from proceeding with renovation and expansion plans.

The bill says no city or town, where a video slot facility is authorized, may "seek to prevent the installation and use" of the authorized video slots.

It also says no city or town with a video-slot facility "shall enact any zoning restriction or any land-use ordinance or other local ordinance that may restrict or impede the installation and use of a video lottery terminal."

The sponsor, Rep. Henry C. Rose, D-East Providence, said he introduced the bill at the request of The Proccacianti Group, the developer that earlier this year announced plans to buy Newport Grand for $155 million.

-- Elizabeth Gudrais of the Journal State House Bureau

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PROVIDENCE -- The Slater Technology Fund, a state-financed agency that supports start-up companies, announced today that it was investing $250,000 in Vitrimark Inc., a biotechnology company launched by University of Rhode Island Professor Arijit Bose.

The company is developing new biomarkers for use in the drug development process, according to a statement from the Slater Technology Fund. The funding will help pay for the company's first employee, Bose's URI colleague, Riyaz B. Mahamma.

"A key issue for us is to have someone committed to the company and its activities," Richard G. Horan, the Slater Technology Fund's senior managing director, said in an interview.

-- Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- More than 20 companies are at the Rhode Island Convention Center from noon until 5 p.m. today conducting interviews for job openings as part of projoJob’s Diversity Career Fair, sponsored by The Providence Journal.

Jobseekers can take part in a free résumé panel and career-related seminars.

Click here to see a schedule of programs and the full list of exhibitors.

Posted by Andrea Panciera at 11:57 AM | Permalink | Comments (0)

Gasoline prices in Rhode Island have finally fallen after 15 weeks of increases, slipping an average of two cents per gallon last week, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $3.069 at the self-service pump, according to AAA's weekly survey.

The average price is 65 cents higher than at the beginning of the year.

On AAA’s Gas Savings Tips & Tools Web page, find the most up-to-date local gas prices.

Posted by Jack Perry at 9:53 AM | Permalink | Comments (1)

CRANSTON -- The state’s failure to produce skilled workers has placed it on a “collision course” that will yield stagnating incomes and a sluggish economy, according to a new study by the Rhode Island Economic Policy Council, an influential advisory panel made up of leaders in government, education and business.

The study, titled Education and Workforce Scorecard, says the average level of education in the state is declining at the same time as the skills required by employers rapidly increases. That disconnect, the report says, could speed the outsourcing of jobs to China and India, while producing a spike in unemployment in Rhode Island.

“Large numbers of Rhode Island adult job seekers and incumbent workers lack the skills to fill vacancies in high-demand occupations,” according to the study, released this morning at the council's quarterly meeting. “Rhode Island’s economy and workforce are moving in opposite directions.”

-- Journal staff writer Benjamin N. Gedan

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PROVIDENCE --A third defendant in the Stop & Shop fraud case pleaded guilty in U.S. District Court today to federal charges of helping to divert some $132,000 from customers at two of the chain's Rhode Island stores.

Arutyun Shatarevyan, 20, of Los Angeles, Calif., pleaded guilty to conspiracy to commit fraud and aggravated identity theft in an agreement signed with federal prosecutors.

The defendants took the account numbers from customers who used pin pads at four Rhode Island stores, but there were 232 customer accounts from which money was actually taken: at the Stop & Shops on Tiogue Avenue in Coventry and on Atwood Avenue in Cranston, according to prosecutors.

Shatarevyan's plea follows the same pleas this month by Arman Ter-Esayan and Gevork Baltadjian, both of California.

The three are subject to up to five years' imprisonment on the first charge and at least two more years in prison on the second charge, plus fines of up to $250,000 on each charge, according to federal court documents.

-- projo.com staff writer Michael P. McKinney, with reports from Journal staff writer Paul Grimaldi

Continue reading "3rd man pleads guilty to pin-pad fraud at Stop & Shop" »

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Journal photo / Mary Murphy
A heavy-equipment operator works in front of the Dunkin Donuts Center today tearing up the plaza to make way for the new facade.

PROVIDENCE -- Facing criticism from state lawmakers over a 31-percent cost overrun in the overhaul of the Dunkin’ Donuts Center, the agency that operates the arena is investigating whether it can sue the consulting firm that it says inaccurately estimated the cost of the project.

The Rhode Island Convention Center Authority today asked its legal counsel, Bruce A. Leach, of the Providence law firm Desimone and Leach, to review the feasibility study provided three years ago by the Minnesota consulting firm Ellerbe Becket.

The authority used that 106-page report in crafting its request to borrow $62 million to upgrade the civic center. The cost of that project has ballooned to $81.4 million, and the authority has asked the legislature to approve another $13.4 million in borrowing to help close that gap.

-- Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- It might not be the most high-profile convention to come to town, but it will apparently be the heaviest.

The Society for Imaging Informatics in Medicine (SIIM) has scheduled its 2007 annual meeting for Providence, according to the Rhode Island Convention Center Authority.

In addition to the conventioneers, the organization plans to lug 250 tons of equipment to the convention center exhibit floor, including CT scan machines and other heavy, medical imaging equipment.

That would be the most freight ever assembled for a convention, more than is deployed for the boat show, according to Arleen F. Oliva, a senior sales manager at the convention center.

-- Journal staff writer Benjamin N. Gedan

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Journal photo / Steve Szydlowski
Suzanne Jachem, of Cumberland, a Hasbro shareholder, and "Spider-Man" try shooting some web at the meeting today in Pawtucket.

Hasbro’s shareholders made quick work today of the annual meeting agenda for the Pawtucket toy-making company, approving three proposals and rejecting a fourth in short order.

Stockholders approved the company’s slate of director nominees, amended the 2003 stock incentive performance plan and the selection of KPMG LLP as the company’s independent auditor. They rejected a proposal to have the company publish a “sustainability” report, which would include a review of Hasbro’s policies on social, environmental and economic issues.

With their work came the annual treat of a close up look at its latest products. This year, it came in the form a trailer for Transformers, the movie based on the Hasbro toy line of the same name. The action-packed snippet drew applause and a few child-like exclamations from the mostly gray-haired audience.

“This is going to be a really cool movie,” said Alfred J. Verrecchia, Hasbro’s president and chief executive officer.

The three-year effort to bring Transformers toys to life on-screen as building-sized mechanical beings “is an approach to brand-building you’re going to see a lot more of from Hasbro,” Verrecchia said.

Using its legacy toys and games, the company is pushing into digital gaming, movies and even traveling road shows.

-- Journal staff writer Paul Grimaldi

Continue reading "Hasbro spinning a successful strategy / Photo" »

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BOSTON -- New England's economic gains will continue to trail the nation's growth over the next four-and-a-half years, and the region's housing prices will keep declining through early next year, a regional economic forecast organization predicted today.

The New England Economic Partnership said New Hampshire and Connecticut are the only states in the region expected to exceed the nation by certain measures of economic performance during a forecast period running through 2011.

Here's a summary of what the report said about Rhode Island: Although the state's 4.2 percent unemployment rate in March was Rhode Island's lowest monthly rate since October 2000, job growth has been slow so far this year. Manufacturing employment is expected to decline by 1,200 jobs this year, with construction jobs falling by 1,000 because of the slow housing market. The state's fastest-growing job sectors are in financial activities, professional and business services, education and health services, and leisure and hospitality.

Click here for summaries of all six New England states.

New Hampshire is expected to have the region's strongest economy, with the value of the state's goods and services keeping pace with the nation's gross product growth rate, and job growth forecast to slightly exceed the nation's. Connecticut is expected to exceed the national growth rate for personal income.

The other four New England states will slightly lag the nation by most economic measures through 2011, according to the latest twice-a-year forecast presented at the economic organization's spring conference in Boston today.

Read the full Associated Press story.

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PROVIDENCE -- The Dunkin' Donuts Center closed today for renovations.

The arena is not expected to reopen until November, after workers have completed the 18 luxury suites and built a pedestrian bridge connecting the arena to Rhode Island Convention Center.

“A significant amount of work, mainly exterior steel erection for the new lobby and the luxury suite towers, was accomplished during a busy event schedule,” James P. McCarvill, executive director of the Rhode Island Convention Center Authority, said in a statement. “However, there is a tremendous amount of construction that needs to be completed during this phase that requires us to take the facility offline.”

More about the renovations from The Journal and the R.I. Convention Center Authority ...

--Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- The former head of the state police, Col. Steven M. Pare, has been hired as the senior director of global security for GTECH Holdings Corp., the company announced today in an internal employee newsletter.

The appointment is expected to be announced publicly next week.

GTECH, the world's largest lottery operator, did not disclose Pare's salary. Pare retired from the state police in February after 26 years of service, the last five as superintendent. He was paid $149,000 in that position, and he is now receiving an annual pension of $102,602.

Last year, GTECH was acquired by Italian lottery operator Lottomatica SpA. But the business headquarters remain in Providence, where GTECH recently built a high-rise office building.

-- Journal staff writer Benjamin N. Gedan

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IMPERIAL, Pa. -- U.S. Airways is cutting back on service between Pittsburgh and Providence as part of a broader plan to reduce or eliminate service between Pittsburgh and 15 cities.

The airline says it plans to cut nonstop service from Pittsburgh to Buffalo, New York; Baltimore; Altoona; San Diego and Seattle.

The airline also plans to reduce service between Pittsburgh and 10 other cities, including Providence, New York, Chicago and Philadelphia.

The cuts allow the airline to put crews and aircraft into markets that have more demand, according to U.S. Airways spokeswoman Valerie Wunder.

-- The Associated Press

Posted by Kate Bramson at 9:12 AM | Permalink | Comments (0)

WESTERLY -- Bradford Dyeing Association President Michael Grills says the company will pay "all its current employees full wages for the immediate future while the company recovers from an unfortunate fire Tuesday night."

That's according to a news release, which states that BDA remains closed for production but hopes to be operating soon. The plant employs 242 workers.

The fire, which lasted some nine hours, struck the print shop, considered the main part of the factory. The privately held textile finishing plant specializes in printing and finishing fabrics for the military, law enforcement, homeland security and others.

“We care a great deal about our employees. We want to do everything we can as a company to help them during this difficult period,” Grills said in a statement. “The outpouring of support from our employees, and their strong desire to help us get back up and running means a great deal to me, and my family.”

The company is continuing to ship goods that had been finished before Tuesday, according to the release, and is confident it will meet all its outstanding orders on time.

The state Department of Labor and Training announced that displaced workers from the company can attend any of four programs starting today that will show how to file for unemployment benefits.

The sessions are slated to be held at 8 a.m., 10 a.m., noon and 2 p.m. at the Bradford Social Club, Two Bowling Lane, in the village near the plant on the Westerly-Hopkinton line.

-- projo.com staff writer Michael P. McKinney, with reports from Journal staff writer Donita R. Naylor

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One of the four defendants in the Stop & Shop fraud case has hired a prominent California lawyer to defend him against federal charges in the case, according to documents filed this week with U.S. District Court in Providence.

Mark J. Geragos, who has defended celebrities Michael Jackson and Winona Ryder, as well as Susan McDougal – the Clinton associate involved in the Whitewater scandal – has taken up the case of Arman Ter-Esayan. He has also represented former Congressman Gary Condit.

Ter-Esayan, of Valley Glen, Calif., was one of four men arrested by state and Coventry police Feb. 26 at the Stop & Shop on Tiogue Avenue in Coventry where, federal and state authorities say, the men had gone to retrieve a checkout lane PIN pad rigged to capture shoppers’ financial-account information.

Videotape evidence links the men to 1,100 account thefts at Stop & Shops in Providence, Cranston and Coventry, and ultimately, to ATM withdrawals made in California, according to an affidavit filed last week by a U.S. Secret Service agent. The men allegedly removed or tried to remove original pin pads from at least six stores in Rhode Island and Massachusetts.

The men were living in California before they flew to Rhode Island in early February, according to the affidavit signed by Craig Marech, the Secret Service agent. In addition to the 22-year-old Ter-Esayan, they include: Mikael Stepanian, 28, of Studio City; Gevork Baltadjian, 20, of Winnetka; and Arutyun Shatarevyan, 20, of Los Angeles.

-- Journal staff writer Paul Grimaldi

Continue reading "High-profile lawyer to defend Stop & Shop fraud suspect" »

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Journal photo / Bill Murphy
Merrill Sherman, president and CEO of Bancorp Rhode Island, walks past a projection screen after the bank's annual meeting.

PROVIDENCE -- Bancorp Rhode Island's management this morning beat back an effort by a pair of
dissident shareholders who want the Providence bank to put itself up for sale.

Shareholders threw enough support behind Bancorp RI's management to elect all
five of the company's nominees to its board of directors, the company said
during its annual meeting.

Bancorp RI (BARI: Nasdaq) is the parent of 16-branch Bank Rhode Island.

"On behalf of Bancorp RI's board of directors and management team, we thank all
of our shareholders for their continued support and confidence throughout this
process," said Malcolm G. Chace, the company's chairman.

Hedge-fund investment firm PL Capital LLC, of Naperville, Ill., has a history of
taking on the management at banks it considers underperforming. It seeks to
profit from improved earnings, a quick run-up in stock prices or the sale of its targets.

-- Journal staff writer Paul Grimaldi

Continue reading "Bancorp R.I. fights off bid from dissidents / Photo" »

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PROVIDENCE -- The state Department of Transportation this morning took control of 183,000 square feet of land at Quonset that will be used for the expansion of the Rhode Island National Guard airport.

The State Properties Committee approved the transfer of the land, owned by the state Economic Development Corporation.

In January, the DOT condemned several privately owned parcels that will also be used by the Guard, and today's decision will enable the $33-million project to go forward.

-- Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- U.S. Sen. Jack Reed this morning is unveiling legislation that would create home ownership protection centers aimed at helping families to hold on to their homes against the forces of foreclosure.

According to a news release from Reed, a Democrat, the Home Ownership Protection and Enhancement Act is a $615-million initiative to "reauthorize, enhance, and improve" the U.S. Department of Housing and Urban Development’s housing counseling programs. It provides that:

• All low- and moderare-income families would qualify for help, whatever their circumstances.

• Help would also be available to families "across the income spectrum" who are having unforeseen financial difficulties -- stemming from such events as an unexpected medical emergency or the loss of a job.

The act also would set $50 million for creating and running state homeownership protection centers. The home ownership protection centers would be a "one-stop resource," offering such things as financial assessments to home owners, counseling, and referrals to families in need.

The homeownership protection centers would contact borrowers who are 60 days or more delinquent to go over their financial situation and get them services that could prevent losing that home, according to Reed's office.

State-designated agencies or state housing finance agencies would apply for grants to create state home ownership protection centers.

Reed, a member of the Senate Banking Committee -- which has oversight on housing matters -- was slated to explain the proposal starting at 10 a.m. at Casey Family Services, 1268 Eddy St. Others joining him are Brenda Clement, executive director for Housing Network of Rhode Island; Richard Godfrey, executive director of Rhode Island Housing; and residents who've had financial troubles with mortgages.

-- projo.com staff writer Michael P. McKinney

Continue reading "Sen. Reed pushes bill aimed to combat foreclosures" »

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Amgen Inc. shares fell for a second day after analysts downgraded its shares and forecast that regulatory actions could cause sales of its anemia drugs to drop by a fifth this year.

Shares in the biotech giant, which has a manufacturing plant in West Greenwich, fell $1.03 or 1.8 percent, to $56.30 at 4 p.m. in Nasdaq stock market composite trading and are down 18 percent this year.

The stock plunged 9 percent yesterday after an advisory panel to the U.S. Food and Drug Administration recommended that warning labels be strengthened on the company’s anemia drugs, Epogen and Aranesp.

Analysts with Citigroup, J.P. Morgan Securities Inc., and Lazard Capital Markets this morning downgraded the stock of Amgen, based in Thousand Oaks, Calif.

Action by the FDA may restrict the number of patients eligible for the drugs and influence insurers to stop paying for certain uses, including breast cancer, analysts said. Amgen’s anemia drugs had $6.6 billion in sales in 2006, or 47 percent of its revenue.

The restrictions recommended by the FDA panel “eviscerate” the class of anemia drugs, and is “likely devastating for Aranesp sales,” wrote Lazard analyst Joel Sendek, in a note to clients today.

Lazard forecast a 21 percent drop in Aranesp sales in 2007. Amgen management has previously said it expects profit of $4.30 to $4.50 a share this year. Predicting Amgen will have to lower that forecast, Sendek wrote that he now expects profit of $4.09 a share for the year.

At its annual meeting this week, held in Providence, Amgen's president and CEO was peppered with questions about the recent bad press and sagging stock price.

Check the latest stock prices for Amgen.

-- Bloomberg News

Posted by Mike McKinney at 5:45 PM | Permalink | Comments (0)

Journal photo / Steve Szydlowski
Shovels are laid out, ready for the Davol ground-breaking ceremony today.

WARWICK -- Davol Inc., a leading medical technology manufacturer, began construction this morning on its new headquarters off Route 95.

The groundbreaking ceremony marked a major turnaround for Davol's parent company, C. R. Bard, Inc., which had planned to relocate Davol to New Jersey.

Instead, the Cranston-based division will only move as far as Warwick, where it will lease a larger office building that could accomodate another 100 employees. Davol employs about 200 people at its current location.

Posted by Peter Phipps at 1:47 PM | Permalink | Comments (2)

WESTERLY -- Treasure Hill, the Watch Hill mansion of Louis A. Gencarelli Sr., onetime owner of the defunct Bess Eaton coffee-shop chain, is set to go to auction June 24 in Groton, Conn.

The 17-room, 10,500-square-foot house at 2 Kidds Way on Watch Hill has an assessed value of close to $7 million, and is owned by Gencarelli and his wife, Karen E. Gencarelli, according to records from the Westerly tax office.

The Westerly-based Bess Eaton chain was sold after a 2004 bankruptcy court action to Tim Hortons Inc., a division of Wendy’s International. Gencarelli was back in federal court in March to testify in a case brought by owners of two North Providence properties that had been leased for Bess Eaton shops. The owners were seeking about $844,000, including past rent payments they said they were owed, plus legal fees

The Kidds Way house has been on the market for several years; in 2004, the asking price was $7.75 million. The house was built in 1988 to replace a house that burned to the ground in 1987.

Gencarelli bought the property in 2002 for $3,150,000 from Anthony Fonda. In February, Karen Gencarelli sold a house at 8 Cedar Rock Meadows in East Greenwich for $2.2 million, according to information from The Warren Group of Boston.

-- Journal staff writer Christine Dunn

Continue reading "Bess Eaton owner's Watch Hill mansion on block" »

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Does it need a new timing chain or a tuneup?
Why won't it start?
Why does it start, but stall?
Ten teams of high school automotive technology students will try to answer such questions as they compete for scholarships at 10 a.m. today at the the Warwick Mall.
The two-member teams will try to diagnose and repair deliberately “bugged”, identical Ford cars.
The annual AAA/Ford Auto Skills state finals will also determine which team will represent Rhode Island in the national finals next month in Dearborn, Mich., according to AAA Southern New England.

Continue reading "Mechanics of tomorrow compete today" »

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Five embattled directors of CVS/Caremark Corp. this morning survived challenges by dissident shareholders at the newly created company's first annual meeting.

The challenges came as shareholders raised concerns about a number of practices at CVS Corp., the Woonsocket-based drugstore chain and Caremark Corp., its Tennessee-based merger partner.

Shareholders urged company executives to replace some board directors, divide certain executive duties, release more information about a federal inquiry into stock options awards and even change its energy consumption habits.

They peppered executives with questions about the willingness of Caremark directors to accept CVS' initial offer before seeking bids from other companies. They also criticized some CVS directors for crafting multi-million-dollar pay packages for company executives.

Before the meeting, some advisory groups urged CVS/Caremark shareholders to withhold their votes for two or more of the directors.

Voting was unusually close during what is normally a formulaic endorsement of company-made proposals, forcing an extended counting period.

Ultimately, the directors all survived, each garnering at least 55 percent of the shares voted.

"I was actually pleased by the votes," said David B. Blitzstein, who manages investments for the United Food & Commercial Workers International Union. "If this management needs a wake-up call, they just got it."

Extra: Check the latest stock price for CVS/Caremark.

-- Journal staff writer Paul Grimaldi

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PROVIDENCE -- The president and chief executive officer of Amgen Inc., Kevin Sharer, was peppered with tough questions from shareholders at the company's annual meeting this morning at The Westin Providence hotel, where he argued that the drug maker would rebound from setbacks that have sent the stock price plummeting.

Amgen stock has dropped by more than 20 percent in the past two years. "We're managing through a difficult situation right now," Sharer said at the company's first annual meeting in Rhode Island, where Amgen employs 1,700 people at a manufacturing plant in West Greenwich.

The company's drug pipeline, he added, is robust.

"We are investing heavily, and we're going to keep doing that," Sharer said.

Extra: Check the latest stock prices for Amgen.

-- Journal staff writer Benjamin N. Gedan

Posted by Jack Perry at 12:28 PM | Permalink | Comments (0)

WOONSOCKET -- CVS/Caremark Corp., the nation’s second-biggest drugstore chain, said first-quarter profit rose 24 percent because of higher generic-drug sales and the addition of Caremark Corp.

Net income climbed to $408.9 million, or 43 cents a share, from $329.6 million, or 39 cents, a year earlier, the Woonsocket-based company said today in a statement.

Sales increased 32 percent to $13.2 billion, the company said.

CVS was helped by demand for generic versions of drugs such as cholesterol medicine Zocor, which are more profitable for the drug-store chain because they are cheaper to buy than brand-name drugs.

The results include 10 days of contributions from Caremark, which CVS purchased in March for $27.2 billion, gaining the second-largest U.S. drug-benefits manager.

-- Bloomberg

Continue reading "CVS's 1st quarter profit up 24 percent" »

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PROVIDENCE -- Gas prices in Rhode Island have climbed for 12 straight weeks and are hovering around three dollars per gallon.

The state Energy Office says its weekly survey finds prices are averaging $2.99 a gallon, up 10 cents from last week.

A similiar survey by AAA Southern New England finds consumers paying an average of $2.98 per gallon for regular gasoline at the self-service pump.

The average price was $2.24 on Feb. 19 before beginning the recent climb, AAA said.

The average price in Rhode Island was $2.92 a year ago.

Even with the high prices, Rhode Islanders are getting off easy compared to the nation as a whole.

Nationally, gasoline prices are at a record $3.07 per gallon. Analysts blame the high prices on problems that have partially shut down several refineries.

Robert P. Murray, a AAA Southern New England senior vice president for corporate affairs, said the national upsurge in prices is driven by an oil industry that appears to have started the summer-driving season gas price increase at the onset of daylight-savings time rather than waiting until Memorial Day -- a relatively new development.

Murray said that last year gasoline prices locally hit the $3 mark in July and stayed up there for seven consecutive weeks.

"I think it's challenging the consumer, from the standpoint of how high is tolerable for gasoline prices," Murray said of the $3 threshold.

"Our past history shows gas prices used to increase from Memorial Day through the 4th of July for what we called 'summer drive,'" said Murray. He added that now "the oil industry seems to be using daylight savings time as the beginning of summer drive."

Murray added that seems to be happening even though people who watch the market have seen the gas-purchasing market this year remain flat or up slightly but not reaching the demand that kicks in after Memorial Day.

The U.S. Department of Energy forecast that prices would peak this month, Murray said. "Certainly, we are looking to see if that happens; AAA's hopes would be that the Department of Energy would be right and that summer drive can take place as prices moderate somewhat."

As for tourism and its industry, Murray said people who have planned full vacations in South County, Newport, Providence or elsewhere in most cases do so long in advance, so higher gas prices probably won't affect that. But he said the earlier onset of prices -- and just where the increase tops off -- could well impact day trippers, including the elderly on fixed incomes.

The concern is that "to the Cape and Newport or even Providence, the day tripper who just comes in faces $3-a-gallon price may say, `Why don't we just home.' "

Murray said that could affect events such as Waterfire in Providence, for instance.

Tourism is one of the top industries in the New England states, Murray said, so "we get very concerned" about the price increases.

-- projo.com staff writer Michael P. McKinney, The Associated Press and staff reports

Posted by Jack Perry at 12:30 PM | Permalink | Comments (2)

The Rhode Island Student Loan Authority announced this afternoon it will hold an emergency board meeting at its Warwick headquarters at 8 a.m. Monday morning, when it plans to vote to take back its College Planning Center from a national, for-profit lender, Nelnet.

The board will also consider adopting a code of ethics, said Noel Simpson, RISLA’s executive director.

RISLA came under fire this week for the arrangement with Nelnet’s Rhode Island company, called the New England Student Loan Authority. General Treasurer Frank Caprio, who is a member of RISLA’s board, called on the authority to “build a firewall” between its free planning center and the for-profit company, saying the arrangement presented a possible conflict of interest.

RISLA started the free center nine years ago to help students and parents fill out college applications and financial aid forms and get helpful, objective advice about loans.

However, after RISLA brokered a $13 million deal with Nelnet in 2004, the private lender took over running the center, a fact that was not made clear to students and families.

Charles Kelley, former head of RISLA and current executive director of Nelnet’s New England Student Loan Authority, said Nelnet was not unfairly steering students to its loans and that the center provides competitive, low-interest rate loans to Rhode Island students.

However, RISLA’s board had been talking about taking back the center since last fall and had decided to formally do so at a May 18 meeting, Simpson said.

After news stories by The Providence Journal and the Chronicle of Higher Education this week, the board decided to move quickly, Simpson said.

-- Journal staff writer Jennifer D. Jordan

Continue reading "Student loan authority to take back planning center" »

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The Rhode Island Student Loan Authority announced this afternoon it will hold an emergency board meeting at its Warwick headquarters at 8 a.m. Monday morning, when it plans to vote to take back its College Planning Center from a national, for-profit lender, Nelnet.

The board will also consider adopting a code of ethics, said Noel Simpson, RISLA’s executive director.

RISLA came under fire this week for the arrangement with Nelnet’s Rhode Island company, called the New England Student Loan Authority. General Treasurer Frank Caprio, who is a member of RISLA’s board, called on the authority to “build a firewall” between its free planning center and the for-profit company, saying the arrangement presented a possible conflict of interest.

RISLA started the free center nine years ago to help students and parents fill out college applications and financial aid forms and get helpful, objective advice about loans.

However, after RISLA brokered a $13 million deal with Nelnet in 2004, the private lender took over running the center, a fact that was not made clear to students and families.

Charles Kelley, former head of RISLA and current executive director of Nelnet’s New England Student Loan Authority, said Nelnet was not unfairly steering students to its loans and that the center provides competitive, low-interest rate loans to Rhode Island students.

However, RISLA’s board had been talking about taking back the center since last fall and had decided to formally do so at a May 18 meeting, Simpson said.

After news stories by The Providence Journal and the Chronicle of Higher Education this week, the board decided to move quickly, Simpson said.

-- Journal staff writer Jennifer D. Jordan

Continue reading "Student loan authority to take back planning center" »

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PROVIDENCE -- Lottomatica SpA, the Italian parent company of Providence-based GTECH Holdings Corp., has promoted GTECH Chief Financial Officer Jaymin B. Patel to president and chief operating officer of GTECH, Lottomatica announced today.

The decision gives Patel a greatly expanded role in running GTECH, a global provider of lottery technologies and services. It also frees up Lottomatica's chief executive officer, former GTECH President W. Bruce Turner, to focus on customer relations and the pursuit of potential acquisitions.

"I'll be responsible for driving the growth of the GTECH business," Patel said in a telephone interview from Rome. "It's a very exciting role."

-- Journal staff writer Benjamin N. Gedan

Posted by Kate Bramson at 1:56 PM | Permalink | Comments (0)

Journal photo
Laurent Vernerey speaks in Providence today.

PROVIDENCE -- In his first public speech in Rhode Island since he was named president of American Power Conversion Corp., the South Kingstown company acquired by French firm Schneider Electric SA in February, Laurent Vernerey pledged to raise the company’s profile by increasing philanthropy and capitalizing on growing demands in the U.S. for energy efficiency.

"I’ve been told that the presence of APC in the community has not been up to the level that has been expected,” Vernerey said, speaking at the Economic Outlook Luncheon at the Rhode Island Convention Center today. “I want to pledge myself to renew the presence of APC in the community. We believe we need to give back.”

--Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 5:39 PM | Permalink | Comments (0)

BOSTON -- Drug store chain CVS Corp., of Woonsocket, has asked Massachusetts public health officials for approval to open medical clinics in some Boston-area stores to provide customers with quick and inexpensive care for about 20 common ailments.

State public health Commissioner John Auerbach said his agency, which has the authority to approve the first retail medical clinics in the state, will take at least a month to make a decision.

Read the full Associated Press story.

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PROVIDENCE – Night 3 of the DOT's aerial crossing of Route 95 was a washout.

The state Department of Transportation canceled construction work on Route 95 last night because of the rain in the forecast.

The DOT closed the highway between Exits 18 and 20 over the past two nights to put into place two steel beams -- one weighing 177 tons and the other 105 tons -- as part of the Route 195 relocation project.

Cranes will be lifting more teal beams in place again tonight, and the highway will be closed between 11 p.m. and 5:30 a.m.

-- projo.com staff writer Kate Bramson

Posted by Kate Bramson at 5:52 AM | Permalink | Comments (0)

PROVIDENCE -- Sales of single-family homes and condos in Rhode Island fell in the first three months of the year, and the median price also slipped, according to numbers released today.

Sales of single-family homes plummeted 17.7 percent in March, dragging down overall sales for the quarter by 3 percent compared with the first quarter of 2006, according to information from The Warren Group, a publisher of real estate data.

The median sales price fell 2.7 percent, to $255,000 from $262,000 during the same period last year.

Condo sales fell 4.3 percent for the quarter, although sales rose 3 percent in March. The median sales price fell to $220,500, compared with $235,000 in 2006.

Timothy Warren Jr., CEO of The Warren Group, said sales of single-family homes increased in January and February.

"March's decline could just be a blip," he said. "We'll have to wait and see what happens in coming months to determine that."

-- The Associated Press

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PROVIDENCE -- NBC's chief Pentagon correspondent today said former CIA director George Tenet's new book is correct about the Bush administration trying to link Iraq and Sept. 11 from day-one.

But NBC correspondent Jim Miklaszewski said Tenet was wrong when he wrote that Bush adviser Richard N. Perle attended a Sept. 12 meeting with the president.

Miklaszewski said today that Perle was in France on Sept. 12, 2001.

Speaking for about 15 minutes, Miklaszewski gave the keynote address at the Business Expo that opened this morning and will run for two days at the Rhode Island Convention Center.

-- projo.com staff writer Michael P. McKinney with reports from Journal Staff Writer Tom Mooney

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PROVIDENCE — Free, expert advice. That’s what you’ll get when you visit The Providence Journal’s booth at the Business Expo, today and tomorrow, the Rhode Island Convention Center.

Today: 1 p.m. , Ask the Car Doctor: Address your car-care concerns with an ASE-certified master technician ; 3 p.m. . Johnson & Wales University: Effective Meetings and Interviews – How to Present Yourself Professionally, and 4:30 p.m., Talbots: Personal and Professional Appearance.

The Journal's booth, #617, also features giveaways and interactive activities. For more information, go to: projo.com/businessexpo

Posted by Andrea Panciera at 12:45 PM | Permalink | Comments (0)

PROVIDENCE. – Citizens Financial Group, Inc. has been selected as the No. 1 company on the Dave Thomas Foundation for Adoption’s list of the Best Adoption-Friendly Workplaces in America.

The list, released today by the foundation, features the top 100 companies in the nation based on the amount of financial reimbursement offered to employees per adoption and amount of paid leave.

Citizens was also being recognized as No. 1 among financial services companies.

For each adoption, Citizens’ Adoption Assistance Program offers employees up to $20,960 in support, the most of any company on the top 100 list. It also provides colleagues with one week of paid leave.

During the past 10 years, a child has been adopted by a Citizens employee almost each month, according to the press release from Citizens. More than 100 children have been adopted by nearly 100 employees.

Two other Rhode Island companies also made the list. Pawtucket-based toymaker Hasbro was ranked No. 27, and The Washington Trust Company was No. 94.

Dave Thomas, who was an adopted child and founder of Wendy’s Restaurants and the Dave Thomas Foundation for Adoption, started the adoption benefits in the workplace initiative more than 15 years ago, simply by calling other CEOs to suggest they add adoption benefits to their human resource packages because, as he said, “It’s the right thing to do.”

See the full list of top 100 companies.

Posted by Andrea Panciera at 5:34 PM | Permalink | Comments (0)

Gasoline prices jumped another eight cents in Rhode Island last week in the continuation of a steady increase that started in February, according to AAA Southern New England.

The average price for a gallon of regular, unleaded gasoline is $2.899 at the self-service pump, according to AAA's weekly survey.

The price was $2.239 on February 19 when prices began climbing. The price was $2.929 a year ago.

Posted by Jack Perry at 11:55 AM | Permalink | Comments (1)

PROVIDENCE – Marking an unspectacular spring tradition, 15 number crunchers gathered in a committee room in the State House basement today to craft the state’s economic forecast for the coming year.

They agreed that the forecast isn’t bad. But it’s not exactly good either.

Rhode Island’s economic outlook is “fairly stable,” said Steven G. Cochrane, an economist from Moody’s Economy.com, one of two experts who attended the four-hour morning session.

Cochrane based his forecast on the assumption that the nation avoids a recession – the probability of a recession is between 20 and 40 percent, economists said – and that the state emerges from its “housing funk” ahead of the rest of the country.

“Then maybe, the second half [of 2007] won’t look so bad as it is now,” he said.

Today's meeting in State House Room 35 was the first of five gatherings known as the spring Revenue and Caseload Estimating Conference, which will play a key role in the current legislative session.

-- Journal staff writer Steve Peoples

Continue reading "Number crunchers calculate R.I. economic forecast" »

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There's growing support for a campaign to boot two directors at CVS/Caremark.

Institutional Shareholder Services, a firm that advises large shareholders on corporate voting, says it's recommending shareholders vote against Roger L. Headrick and Lance Piccolo because of their role in the sale of Caremark to Woonsocket-based CVS earlier this year.

C-t-W Investment Group called earlier this week for the same thing.

Caremark's shareholders approved a $27 billion takeover bid by CVS last month -- but only after CVS was forced to sweetened its initial offer several times amid shareholders' protests.

Headrick and Piccolo were members of the Caremark board at the time.

The company's annual meeting is scheduled for May 9.

-- Dow Jones/The Associated Press

Posted by Mike McKinney at 6:30 PM | Permalink | Comments (0)

PROVIDENCE -- Carl Hayes, the chairman of the board of at Beacon Mutual Insurance Company, has resigned.

Company officials say Hayes and Brendan Doherty, who's been appointed to lead the State Police, turned in their resignations yesterday.

A Beacon-commissioned report last year accused the insurer of giving improper price breaks to favored customers. A former Beacon executive has been charged with insurance fraud as part of the investigation.

Hayes took over as board chairman in 2006. Governor Carcieri appointed Doherty to the board of directors after the scandal broke.

-- The Associated Press

Posted by Mike McKinney at 3:58 PM | Permalink | Comments (0)

PROVIDENCE -- The Rhode Island Convention Center Authority voted this morning to raise the price of parking at its three downtown lots, part of a trend that is straining the budgets of commuters and visitors to the capital city.

The independent agency voted unanimously to raise the price of 24-hour monthly parking by 11 percent, from $184 to $195. Event parking is going up, too, from $8 to $9. The convention center authority controls 2,515 spaces, about 40 percent of all downtown parking.

The convention center authority chairman, David A. Duffy, attributed the hike to rising expenses. The public lots, he said, are still cheaper than most of the competition.

The authority operates the North and South garages at the convention center, and a surface parking lot at the Dunkin' Donuts Center, which is now closed while the Dunk is being renovated.

-- Journal staff writer Benjamin N. Gedan

Posted by Kate Bramson at 11:05 AM | Permalink | Comments (0)

DALLAS -- Publisher and television station owner Belo Corp., owner of The Providence Journal Co., said today that its first-quarter profit dropped 10 percent due to weakness in newspaper advertising.

Earnings declined to $15.5 million, or 15 cents per share, from $17.3 million, or 16 cents per share, in the prior-year period.

Analysts polled by Thomson Financial expected profit of 13 cents per share.

Revenue for the quarter fell 5 percent to $354.1 million from $371.7 million, missing Wall Street's estimate of $368.7 million.

Newspaper group revenue fell 11 percent on soft newspaper advertising conditions, a decline in the Southern California housing market and difficult comparisons to the year-ago period. Excluding an extra Sunday in the 2006 quarter, newspaper group revenue decreased 9.3 percent.

Television group revenue rose 2.1 percent.

-- The Associated Press

Posted by Jack Perry at 10:22 AM | Permalink | Comments (0)

The Dow Jones Industrial Average topped 13,000 for the first time today. It was the Dow's 35th record close since the start of October.

You can see how your stock performed by using projo.com's personal portfolio tool.

You can also check out the market's behavior on our Impact 50 companies, deemed to have the greatest impact on Rhode Island business and economy.

Posted by Andrea Panciera at 6:31 PM | Permalink | Comments (0)

PROVIDENCE -- The Pinelli-Marra Restaurant Group has acquired Waterplace Restaurant in downtown Providence from Glenn Ahlborg.

Bill Pinelli and Steve Marra’s other restaurants, noted for fine dining at moderate prices, range from The Post Office Café in East Greenwich, Pinelli’s Cucina in South Kingstown, Pinelli’s North End Café in North Providence and Twist in Warwick.

Until now, Twist on Angell in Wayland Square was the newest in the local chain. The chef there, Angie Armenise, will head up the kitchen when the restaurant overlooking Waterplace Park reopens in mid-May. Her menu will be a fusion of dishes she has designed for other Pinelli-Marra restaurants and new concepts.

Not all parts of the restaurant will be open this summer as a major renovation is planned. The lower level of the restaurant will be open as will two decks overlooking the basin at the park.

-- Journal food editor Gail Ciampa

Continue reading "Waterplace Restaurant added to Pinelli-Marra chain" »

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PROVIDENCE -- Shareholders have rejected a proposal calling on Textron Inc. to publish detailed disclosures of all overseas sales of weapons-related products.

The initiative received the support of only 6.8 percent of shareholders, most voting by proxy, approved the proposal, according to Lewis B. Campbell, chairman, president and chief executive officer of the Providence-based conglomerate.

The Textron board of directors opposed the proposal, and Campbell spoke out against it at the company's annual meeting today at The Westin Providence hotel.

The request, introduced by the Interfaith Center on Corporate Responsibility, called for a “comprehensive report” detailing what equipment Textron has sold abroad, as well as the criteria the company uses to determine which countries and entities it supplies.

--Journal Staff Writer Benjamin Gedan

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PROVIDENCE -- Textron Inc., an $11 billion global conglomorate based in Providence, is holding its annual meeting this morning at The Westin Providence hotel. The shareholders meeting was scheduled to start at 11 a.m.

--Journal Staff Writer Benjamin Gedan

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PROVIDENCE -- Governor Carcieri is expected to appoint former state Supreme Court Justice Robert G. Flanders Jr. as chairman of a special commission that will investigate ways to improve the research environment at the University of Rhode Island.

Carcieri will announce the appointment during a meeting of the Rhode Island Science and Technology Council, scheduled for 2 p.m. at the State House, according to the state Economic Development Corporation. Flanders retired from the court in 2004. He is a partner at the law firm Hinckley, Allen & Snyder.

--Journal Staff Writer Benjamin Gedan

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Raytheon, which has a Portsmouth facility, has finalized a $184-million Navy contract to provide radar equipment to the Australian and Spanish navies.

The Waltham, Massachusetts-based firm will manufacture, integrate and test the radar systems transmitters and fire control systems.

Raytheon will perform the work at facilities in Sudbury and Andover in Massachusetts, and at its Maritime Mission Center in Portsmouth.

-- The Associated Press

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UnitedHealthcare of New England has been fined $67,500 for violating a state law intended to protect insurance coverage for small-business employees.

United failed to provide documentation showing that it had complied with the law, and overcharged members who were in poor health, according to documents released by Health Insurance Commissioner Christopher F. Koller.

The Small Employer Health Insurance Availability Act of 2000 sets rules that limit variability in rates offered to businesses with 50 or fewer employees. It also constrains insurers’ ability to exclude sicker people by refusing to cover them or charging them exorbitant rates.

Every three years, the law requires the state to examine whether health insurers are complying with its terms. The health insurance commissioner hired independent examiners to study documents and take testimony on 2006 data.

United did not return the Journal’s phone calls seeking comment. The original fine was $75,000, but United got a 10 percent discount for accepting the commissioner’s findings and agreeing to supply the required documents in six months, when the insurer faces reexamination.

United paid the fine in March, but state law requires a 30-day waiting period before the order could be made public.

Blue Cross & Blue Shield of Rhode Island was found to have substantially complied with the law, except for a few technical deficiencies. (Blue Cross spokeswoman Kim Keough said the insurer had already submitted a plan to correct the problems).

-- Journal medical writer Felice J. Freyer

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The projoJobs College Graduate Career Fair will be held today at the Feinstein IMAX Theatre at the Providence Place mall from 4 to 7 p.m.

Employers will be conducting interviews for job openings at the event sponsored by The Providence Journal, in partnership with the Feinstein IMAX Theatre.

The career fair is free and features résumé critiquing, on-the-spot interviewing and networking opportunities plus food, music, a free movie screening and giveaways.

Posted by Peter Phipps at 3:14 PM | Permalink | Comments (0)

Fair housing is not an option. It’s the law.

That’s the message that a leader within the U.S. Department of Housing and Urban Development plans to share in a keynote address this morning at a fair housing forum sponsored by HUD and held at the University of Rhode Island.

HUD Assistant Secretary for Fair Housing and Equal Opportunity Kim Kendrick will speak at 9:30 a.m. in URI’s Shepard Building auditorium, located at 80 Washington St. in Providence.

Recent data show that housing discrimination from mortgage lenders, real estate agents, property managers and apartment rental agents is still prevalent, according to HUD. The Fair Housing Act, enacted in April 1968, makes it illegal to deny housing based on familial status, race, color, national origin, religion, disability and sex.

The forum is held during Fair Housing Month, which has been designed to help people recognize the signs of housing discrimination, according to HUD.

-- projo.com staff writer Kate Bramson

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PAWTUCKET -- Toymaker Hasbro Inc. reports a first-quarter profit today on growth in its Marvel product line and core brands such as Littlest Pet Shop, Nerd and Play-Doh.

The company reported a profit of $32.9 million for the three months ended April 1. The company said quarterly revenue rose 34 percent to $625.3 million.

Hasbro said it had growth in several brands including My Little Pony, Playskool, Transformers and board games.

The Pawtucket-based Hasbro is the nation's second biggest toymaker after Mattel.

-- The Associated Press

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The Internal Revenue Service has extended the tax deadline to April 26 for taxpayers – including Rhode Islanders -- in states affected by the major storm that hit the northeast on April 16.

Additionally, for those taxpayers whose filings weren’t accepted by Intuit Inc.’s TurboTax, ProSeries and other software because of problems due to overtaxed servers, the IRS had granted an extension through midnight last night.

Rhode Island will follow that same extension, Michael F. Canole, chief revenue agent for the Rhode Island Division of Taxation's personal income-tax section, said this morning.

Earlier this week, the IRS gave taxpayers directly impacted by the storm an additional two days beyond the April 17 deadline to meet their fax-filing obligations without incurring late filing and payment penalties. The IRS has announced that further assessment led the federal agency to extend the deadline an additional seven days.

Power outages and public transportation problems made it impossible for some taxpayers and tax professionals to meet the April 17 filing deadline, the IRS said in a news statement.

Affected taxpayers can mark their paper tax returns with the words “April 16 Storm.” Taxpayers who e-file their returns can use their software’s “disaster” feature, if available.

Check out frequently asked questions about the storm extension.

-- projo.com staff writer Kate Bramson

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NEWPORT – The New York State attorney general today announced a settlement with Salve Regina University after saying the university was among colleges that received money to put loan company Education Finance Partners on its list of “preferred lenders.”

In the 2005-2006 period, Salve Regina received more than $7,800 “pursuant to a form of revenue sharing” with Education Finance Partners, one of the school’s preferred lenders, an investigation by the office of New York State Attorney General Andrew Cuomo found, according to a news release.

Between January 2004 and March 2007, “certain lenders, some of whom appeared on Salve Regina’s preferred lender lists, provided printing costs or services to the university and/or paid for meals and lodging for university employees at loan workshops, conference, and/or advisory board meetings.”

Salve Regina, a private, Catholic school, is among universities that have agreed to accept a Code of Conduct instituted by the New York attorney general and will reimburse “the affected students $7,839.74,” according to the attorney general’s office.

The investigation “revealed various practices at each university that could have potentially created conflicts of interest,” according to the attorney general’s news release. The other schools agreeing to settlements are Pace University, in New York, and the New York Institute of Technology.

“This investigation is a two-front battle: lenders and schools. We have proceeded against lenders and now we are proceeding against schools. There is no reason for a school not to adopt the Code of Conduct,” Cuomo said. “This office has been clear to schools: settle or we will commence litigation. Either way we will get justice for students.”

Salve Regina University said in a statement that "providing accurate and clear information about financing options is critical in helping students" and their families to make decisions related to the financing of a college education.

The university worked with the Office of Attorney General of New York to develop an agreement and code of conduct specific to Salve Regina as a measure of support for having all institutions of higher education operate by the highest ethical standards.

-- projo.com staff writer Michael P. McKinney

Continue reading "Salve Regina settles with N.Y. AG over loan company" »

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Middletown-based KVH Industries Inc., manufacturer of satellite communications systems for boats and land vehicles, reported flat first quarter earnings today.

Revenue for the first three months of the year was $20.4 million, slightly above the $20.3 million KVH earned in the same period last year. Profits dropped in comparison to the first quarter of 2006, from $1.3 million to $57,000.

In a statement today, the company cited "softness" in the U.S. marine market, but it did not revise its revenue projections for the year of 10 to 17 percent growth.

--Journal staff writer Benjamin Gedan

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PROVIDENCE -- Textron Inc., the Providence-based conglomerate, grew its revenue by 12.6 percent in the first quarter of this year, the company announced this morning.

Textron generated $3 billion in the first three months of the year, exceeding expectations. The company, which has 670 employees at its corporate headquarters in Rhode Island, builds military aircraft, armored security vehicles, Cessna corporate jets and a range of other civilian products.

"We outperformed again this quarter," Textron Chief Executive Officer Lewis B. Campbell said in a statement.

-- Journal staff writer Benjamin Gedan

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PROVIDENCE -- Blue Cross & Blue Shield of Rhode Island said today it plans to build a new office building downtown on land at the corner of Finance Way and Exchange Streets.

The health insurer, which serves 700,000 customers in Rhode Island, currently operates out of six offices around Providence.

They will leave these buildings and construct a 325,000 square-foot, roughly 12-story building on top of a parking garage already under construction by Intercontinental Development for their two residential towers at Waterplace.

The building is expected to cost $114 million. The company hopes to start construction in late 2007, and occupy the site in early 2010. Under the terms of existing leaves, Blue Cross said it expects to receive over $25 million in tax breaks from the city.

The health insurer said in a press release that the building would house its 1,100 workers, save $25 million over 23 years and "have no additional impact on premiums and reserves."

The company said a financial analysis it conducted, in collaboration with Ernest & Young's Real Estate Advisroy Services Group concluded it could improve operating efficiency by consolidating its office locations rather than upgrade the two buildings it owns and continue to pay rent at the four others.

In the press release, Mayor David N. Cicilline applauded the company's decision to stay in Providence.

The final design of the building is subject to review and approval of the Capital Center Commission. The state Office of the Health Insurance Commissioner is reviewing a financial analysis of the project, the press release said.

Of the six Providence locations it uses now, Blue Cross owns two of the buildings, at 15 LaSalle Square and 1 Empire Street. The insurer expects to sell the two buildings for $20 million, and put that money towards the construction of the new building.

--- Dan Barbarisi, Journal staff writer

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PROVIDENCE -- One week after some 200 people walked through downtown to celebrate Rhode Island’s new designation as a “Well State,” Blue Cross & Blue Shield of Rhode Island is sponsoring a different healthy walk today.

With its National Walk @ Lunch Day, Blue Cross hopes to promote walking as a great source of fitness for workers throughout the state.

Blue Cross estimates 700 to 1,000 people will participate in a 30-minute walk today at lunchtime.

A program begins at noon at the Blue Cross building downtown, 444 Westminster St. Those expected to address the walkers include motivational speaker Gary Marino, who walked from Jacksonville, Fla., to Boston in a personal effort to lose weight and promote beneficial health.

Walks are scheduled to kick off from the Blue Cross building at 11:30 a.m., 12:15 p.m., 12:45 p.m. and 1:15 p.m.

-- projo.com staff writer Kate Bramson

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A Pennsylvania company is the new owner of American Biophysics Corp. -- the North Kingstown company that makes the Mosquito Magnet.

Woodstream Corp. of Litiz, Pa., will pay about $6 million for American Biophyics in a purchase overseen by a court-appointed receiver. American Biophysics’ customers -- many of them national retail chains such as Home Depot -- owe the North Kingstown company more than $3 million, according to the receiver, Jonathan N. Savage.

That’s money Savage said he expects to collect, pushing the ultimate value to more than $9 million.

Savage was in Washington County Superior Court today to auction off American Biophysics, which was placed into state receivership last year because it was unable to pay off debts of $7 million.

-- Journal Staff Writer Paul Grimaldi

Continue reading "R.I. mosquito-magnet maker has new owner" »

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HOUSTON -- Texas Attorney General Greg Abbott sued CVS Corp. on Tuesday, alleging pharmacy employees dumped credit card numbers, medical information and other sensitive material into a garbage container.

The suit alleges about 1,000 customers were compromised.

The Woonsocket-based company was accused of failing to protect its customers from identity theft at the store in Liberty, about 45 miles northeast of Houston. The lawsuit alleges employees dumped the records behind a store that apparently was being vacated by CVS.

CVS did not immediately return a telephone call seeking comment Tuesday.
The records, found March 19, included credit and debit card numbers and prescription forms that had customers' names, addresses, dates of birth and types of medications, Abbott said.

"Our personal information, our medical records are supposed to be protected," said 69-year-old Cora Bechtel, one of the customers whose records were found behind the store. "When it's exposed, it's scary."

-- The Associated Press

Continue reading "Texas attorney general sues R.I.-based CVS Corp." »

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The Rhode Island tax-filing deadline has officially been extended to midnight on Thursday. That decision, issued today by the Rhode Island Division of Taxation, means that taxpayers will have an extra two days to file their state income-tax returns and make quarterly estimated state tax payments. (The filing deadline had been midnight tonight.)

The Internal Revenue Service got the ball rolling on Monday. Because of power outages and other problems caused by the big wind-and-rain storm, the IRS extended -- until midnight Thursday -- the deadline for filing federal returns. Rhode Island and Massachusetts followed suit today, officially extending the deadline for filing state returns; Connecticut has already done so.

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WASHINGTON -- A top officer of the company proposing to build a liquefied natural gas terminal in Fall River expressed confidence today that the firm will clear the remaining regulatory and judicial hurdles and finish the controversial facility by about 2011, despite strenuous opposition from officials of the city, surrounding communities and the states of Massachusetts and Rhode Island.

``We are cautiously optimistic,'' that the terminal for incoming LNG tankers will be built, said Gordon Shearer, president and chief executive officer of Hess LNG LLC, a corporate affiliate of Weaver's Cove Energy, the sponsor of the project.

Shearer spoke at a Washington forum for reporters and editors sponsored by McGraw-Hill and Platt's, publishers of Inside Energy and other journals that cover the energy industry.

Shearer said he based his optimism on several factors. By his interpretation, for example, the rulings thus far on court challenges to the project are good signs that the energy company will win a crucial appeal of a favorable 2005 decision on the proposed terminal by the Federal Energy Regulatory Commisssion.

Shearer said his side expects by the end of this year to win the appeal of the FERC decision, filed by opponents of the LNG plant, that is pending in the First U.S. Circuit Court of Appeals in Boston.

-- John Mulligan of the Journal Washington Bureau

Continue reading "Hess president confident LNG will come to Fall River" »

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National Grid reports that 981 customers in Rhode Island remain without power early this morning after a peak of 22,000 businesses and residents across the state were without power during yesterday’s zenith because of the nor’easter that slammed the region.

According to a spokeswoman, the areas hardest hit are those along the company's "coastal district," including Coventry, 314 customers; North Kingstown, 254; and Narragansett, 154. Warwick is no longer considered a high outage area.

In Massachusetts, New Hampshire and Rhode Island, 7,000 customers of the 1.7 million served by National Grid were without power early this morning, according to a recorded announcement on the power company’s phone line. Tha’ts down from a peak of 61,000 customers yesterday at noon.

Crews continue to work today, after working through the night, and expect power for all customers to be restored by some point today or this evening.

-- projo.com staff writer Kate Bramson

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Hasbro, the world’s second-largest toymaker, gave CEO Alfred Verrecchia, 64, an $8.41 million compensation package, which included a $1 million salary and a $3 million bonus, according to a U.S. regulatory filing.

Compensation for the CEO of Mattel, the world’s largest toymaker, totaled $5.99 million. Robert Eckert, 52, became chief in May 2000.

Hasbro’s net income climbed 8.5 percent last year on a 2.1 percent sales increase to $3.15 billion. Fourth-quarter profits advanced more than analysts anticipated on higher sales of board games such as Monopoly and Playskool preschool toys.

“Relative to targets, Hasbro may have had a better year,” said Sean McGowan, an analyst at Wedbush Morgan Securities in New York, who has “buy” ratings on both Hasbro and Mattel. “Hasbro was widely expected to have a challenging 2006, and it had a good year.”

Verrecchia, who became CEO in May 2003, also received stock options last year of $2.49 million and a stock award worth $366,693. His pay package also included $1.39 million from a change in pension value and $162,036 in other compensation such as life insurance.

In 2006, Hasbro’s shares climbed 35 percent. Mattel’s stock surged 43 percent, the most in 11 years.

-- Bloomberg

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The Internal Revenue Service has given taxpayers two more days to file their federal income-tax returns.

Because of the big wind-and-rain storm that knocked out power and caused flooding and other problems, taxpayers in Rhode Island, Massachusetts, Connecticut and other states affected by the storm will have until midnight on Thursday to file their federal income-tax returns and make quarterly estimated payments, the IRS said. (The old deadline was midnight Tuesday.)

The Rhode Island Division of Taxation is expected to follow suit for state income-tax returns and quarterly estimated payments. Connecticut has already extended its deadline.

Posted by Neil Downing at 6:50 AM | Permalink | Comments (0)

Green Airport is closed and may not reopen until this afternoon. All flights are canceled.

Airport police closed the airport early this morning after high winds blew down a temporary wall at the back of the terminal.

It got so bad inside the terminal this morning that authorities had to take down the sails on the yacht by the rental counters. The boat was rocking back and forth, threatening to bang into the windows.

Mark Brewer, president and CEO of the Airport Corp., said it will take about four hours to rebuild the wall, which blew in at around 2 :30 a.m.

Afternoon flights were still listed as ontime. But Brewer could not guarantee when Green would be able to reopen.

Some flights took off this morning, but there were no passengers on board, Brewer said.

-- Kate Bramson, projo.com

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New Rivers Bistro in Providence will probably be closed for a month while repairs are made to the kitchen, the site of a fire last week, owner Bruce Tillinghast reports.

The fire on April 9 did relatively little damage to the building at 7 Steeple St. but it will take time and money to restore things back to normal in the restaurant, he said.

The cause of the fire remains under investigation, he said, though it seems to have begun in duct work and some of the kitchen’s hardwood charcoal they use for cooking.

Tillinghast wasn’t at the bistro at the time of the 8 p.m. fire. He had left the restaurant at 5:30 p.m., gone for a swim at the Y and was home making dinner at the time he was called by his staff who said the flames were quickly extinguished. The restaurant was serving dinner at the time of the fire.

Owner Julie Nahas and the staff at 3 Steeple Street are calling on all restaurateurs to attend a fundraiser with donations for the New Rivers staff this Sunday afternoon. RSVP to info@3steeplestreet.com or call 272-3620.

Downcity Food and Cocktails will rise from the ashes of a fire last May 22 and reopen in a new home at 50 Weybosset St. Owners Abby Cabral and Rico Conforti hope to open in mid-June. They had owned the restaurant for a year when the fire occurred.

-- Journal Food Editor Gail Ciampa

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PROVIDENCE -- The 2008 U.S. Synchronized Team Skating Championships will be held at the Dunkin’ Donuts Center next February, an event expected to bring thousands of spectators to downtown Providence and generate 6,000 hotel room nights, according to the Rhode Island Convention Center Authority, an independent state agency that operates the arena.

The competition will involve 90 teams and last three days, beginning on Feb. 20. The convention center authority credited the $62-million renovation of the arena with helping to attract the skating championship.

“The sport of synchronized skating has grown tremendously,” David A. Duffy, the convention center authority chairman, said. “To attract an event of this caliber so quickly after embarking on the renovations to the arena demonstrates that the state’s investment is paying off.”

--Journal staff writer Benjamin N. Gedan

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PROVIDENCE -- Kathie L. Olsen, the deputy director of the National Science Foundation, visited Providence this morning to urge private industry and universities to continue pursuing collaborative research projects.

She delivered her remarks at the Rhode Island Convention Center as part of a conference organized by the Rhode Island Science and Technology Advisory Council and Rhode Island EPSCoR.

Nationally, employment opportunities are growing rapidly in the science and technology fields, Olsen said, urging state policy makers to invest in all levels of science education.

“We have to excite our kids in terms of math, science and education,” she said. “It’s our future."

-- Journal staff writer Benjamin N. Gedan

Posted by Mike McKinney at 3:49 PM | Permalink | Comments (0)

NBC Chief Pentagon Correspondent Jim Miklaszewski will replace Chief White House Correspondent David Gregory as the keynote speaker at this year's Business EXPO.

Gregory will be on assignment.

Miklaszewski will speak Tuesday, May 1 at 11:00 a.m. at the Rhode Island Convention Center at Power to Grow: Business EXPO 2007.

Miklaszewski was one of the first at the scene on September 11, 2001 to report the Pentagon had been attacked and has led the network’s coverage of the war in Afghanistan and Iraq.

A former White House correspondent, Miklaszewski will talk about today’s political landscape, including homeland security and the War in Iraq, and its early affect on the campaign for president.

Posted by Peter Phipps at 12:21 PM | Permalink | Comments (0)

Journal photo / Steve Szydlowski
About 200 people representing dozens of companies in the state designated as "well workplaces'' marched today to the State House from the skybridge at Providence Place mall.

PROVIDENCE -- It was a brisk day for a walk.

Almost too brisk.

“I don’t know about you, but I’m shivering up here,” said Governor Carcieri.

The people he faced at the foot of the State House steps mostly laughed or cheered in agreement.

Good thing the 200 or so people had the chance to get their blood pumping during a walk from Memorial Boulevard and the Providence Place mall up Francis Street, where they were met by the governor and his wife, Suzanne.

The marchers represented 67 Rhode Island businesses and organizations that are helping the state’s residents live healthier lives. The employers offer personal health assessments, weight-management classes, stress workshops, nutritional advice, vaccination clinics — and organize walking programs — among other health-care efforts.

Together, the groups helped the state earn the designation as the first “Well State” in the nation and aided the governor in fulfilling one of the key goals of his health-care agenda for the state.

“It’s a key component of how we slow down the inflation of health-care costs,” Carcieri noted during the lunch-time ceremony.

-- Journal staff writer Paul Grimaldi

Continue reading "Walk marks wellness milestone for R.I. / Photo" »

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PROVIDENCE – The operators of the well-known Ballard’s Restaurant on Block Island restaurant are being sued by the U.S. Department of Labor, which alleges violations of minimum wage, overtime, record-keeping and youth employment provisions of federal law.

The labor department announced today it has filed a lawsuit against Shoreham Inc. The suit names as defendants President Marion Filippi, Vice President Paul Filippi and General Manager Steven Filippi.

Since May 1, 2004, the labor department alleges, the defendants have repeatedly and willfully failed to pay employees at least the federal minimum wage and “often have required employees to work more than 40 hours in a workweek without properly compensating them for overtime.”

In a statement this afternoon responding to the lawsuit, spokeswoman Amy Kempe said: “Ballard’s vehemently denies the allegations and will vigorously defend itself. Ballard’s has been a valued and honest employer on the island of New Shoreham for more than 50 years and we are confident the matter will be resolved in our favor.”

-- projo.com staff writer Michael P. McKinney

Continue reading "Update: Labor Dept. sues Ballard's on Block Island" »

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Governor Carcieri and Lt. Gov. Elizabeth H.Roberts will announce this afternoon the appointment of a task force to examine the financial health of community hospitals in Rhode Island, nearly all of which are struggling.

Co-chaired by Jane Hayward, secretary of the Office of Health and Human Services, and Dr. David R. Gifford, health director, the task force will recommend ways to ensure the hospitals' ability to deliver basic services.

The task force will include state government officials, two legislators, and representatives of hospitals, insurers, business, health-care providers, and consumers. It is expected to issue its preliminary report within three months.

Posted by Peter Phipps at 1:49 PM | Permalink | Comments (0)

PROVIDENCE – Gasoline prices just keep rising.

They’re up an average of seven cents per gallon since last week, on the heels of the eight-cent increase last week over the previous week, according to AAA Southern New England.

In total, gas prices have risen 57 cents per gallon since the middle of February, AAA reports in its weekly survey of gas prices.

Regular unleaded gasoline at the self-serve pump is averaging $2.74 – three cents less than you’ll pay at the full-serve pump, according to today’s survey of gasoline prices around the state.

A year ago at this time, the average price was $2.65.

AAA encourages motorists to shop around for the best price, as prices this week range 10 cents, from a low of $2.69 to a high of $2.79.

-- projo.com staff writer Kate Bramson

Posted by Kate Bramson at 2:43 PM | Permalink | Comments (0)

Rhode Island has the fourth highest state and local tax burden in the country, according to a study by a conservative think tank in Washington, D.C.

Rhode Islanders pay 12.7 percent of their income in state and local taxes, according to a report issued this week by the Tax Foundation.

That compares with a national average of 11 percent, which is an all-time high , according to the study.

The foundation reports the per capita income in Rhode Island as $41,809, and the per capita tax burden as $5,291.

Leading the pack for the highest tax burden is Vermont, where it takes 14.1 percent of one’s income to pay all state and local taxes. Maine and New York, at 14 percent and 13.8 percent consecutively, also rate higher than Rhode Island.

-- projo.com staff writer Kate Bramson.

Continue reading "R.I. ranks 4th among states in tax burden" »

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PROVIDENCE -- The Naval Undersea Warfare Center, based in Newport, announced today its plans to establish a research center at the University of Rhode Island, an effort to increase collaborations between the Navy, universities and private industry.

The research facility would help the military develop undersea technologies, as well as so-called dual-use technologies to be marketed as consumer products.

Governor Carcieri announced the new center this morning at a State House press conference attended by Rhode Island's U.S. Sen. Jack Reed and U.S. Reps. Patrick J. Kennedy and James R. Langevin.

- Journal staff writer Benjamin N. Gedan

Posted by Jack Perry at 11:49 AM | Permalink | Comments (0)

For just over $300 a month, people employed by small businesses will soon be able to get comprehensive health insurance, covering doctors’ visits, hospitalization, preventive services and drugs, Health Insurance Commissioner Christopher F. Koller announced today.

But there’s a catch to these low-cost insurance plans that the state is now mandating. If you don’t want to pay big deductibles ($5,000 for an individual, $10,000 for a family) before your coverage kicks in, you have to promise to be good.

That is, you have to get a primary-care doctor, undergo a health assessment, and follow the recommendations that emerge from the health assessment – which, depending on what’s wrong with you, could mean signing up for a smoking cessation or weight-loss classes, or participating in a disease-management program.

Under a law passed last year, Blue Cross & Blue Shield of Rhode Island and UnitedHealthcare of New England now must offer these plans to businesses with 50 or fewer employees, starting Oct. 1.

--Journal medical writer Felice J. Freyer

Continue reading "State unveils $300 a month health insurance plan" »

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BARRINGTON – A Barrington-based investment firm has entered into a letter of intent with the Zion Bible College to purchase its campus in Barrington, according to a news release.

Liberty Capital Partners Inc. is in talks with town officials to get the town’s input about future development of the nearly 40-acre campus property, the release said.

“This is a unique opportunity to create a beautiful village within the Town of Barrington that may help to meet some of the town’s needs and a chance to meticulously restore Belton Court to its former grandeur,” James S. Gladney, managing partner of Liberty Capital Partners, Inc., said in the news release.

The campus includes Belton Court, a former Peck mansion that is listed on the National Register of Historic Places and now serves as the college’s administrative offices and library.

The college, at 27 Middle Highway, has had its campus listed for sale for $13 million on the Web site of real-estate firm CB Richard Ellis.

But the news release did not provide financial numbers for the discussions that have been underway. And town councilors have made clear the town does not have that kind of money to spend itself Voters already approved a $2-million rec reation bond a year ago and the town is dealing with emergency repairs to its sewer system.

-- projo.com staff writer Michael P. McKinney

Continue reading "A deal is signed to sell Barrington bible college" »

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PROVIDENCE – Gas prices have jumped again this week.

A survey by the State Office of Energy Resources finds a gallon of regular, unleaded gas costs an average of $2.68 at self-service stations. That's an eight-cent increase over last week.

Last year, gas prices stood around $2.57 at this time.

-- The Associated Press

Posted by Kate Bramson at 11:09 AM | Permalink | Comments (0)

The Cape Wind project cleared a significant hurdle today as a key Massachusetts agency announced it had approved the project’s Final Environmental Impact Report.

The Massachusetts Executive Office of Environmental Affairs determined that the wind farm project “adequately and properly” complies with the state’s Environmental Policy Act, the agency said.

“The development of the large scale wind farm as proposed is expressly consistent with and will significantly advance the Commonwealth’s energy policy goals, and will provide immediate and significant benefits to air quality and energy reliability in Massachusetts and the Northeast,” said Ian A. Bowles, secretary of the agency.

“Overall, the project represents a balanced and thoughtful commitment to action that will contribute to the long-term preservation and enhancement of our environment.”

The project still needs a number of state and federal approvals before it can be constructed, including the Massachusetts Department of Environmental Protection, the state’s Office of Coastal Zone Management, and the federal Minerals Management Service.

Posted by Tim Barmann at 2:24 PM | Permalink | Comments (1)

NORTH KINGSTOWN – Local police are warning businesses to be on the look-out for counterfeit $20 bills.

The fake bills have turned up in the last several weeks at local businesses, including a Burger King restaurant, Capt. Charles Brennan said. In each case, the individual makes a small purchase with a single bill.

“He’s going in and buying an order of fries and getting $18.50 back,” Brennan said.

The Police Department is asking businesses and their employees to keep an eye out for the counterfeit money, which Brennan described as a “decent” copy that appears slightly aged. They have been turned over to the Secret Service, which investigates all crimes involving U.S. currency.

New, legitimate bills have a watermark image of the appropriate president in the right corner that is visible when held up to a light. The fake bills have no such mark, he said.

The department urges businesses to learn about other security features on the U.S. Secret Service Web site.

-- Journal staff writer Katie Mulvaney

Posted by Kate Bramson at 4:38 PM | Permalink | Comments (0)

WASHINGTON _ Leading Senate supporters of the submarine industry today supported the Navy plans to double production of attack subs in 2012.

Navy Secretary Donald C. Winter asked the Senate Armed Services Committee to support the Navy's plan to raise the production rate from one submarine per year to two in fiscal year 2012.

``We don't want go to two a year'' earlier than 2012 and later find it necessary ``to go back to one,'' Winter said.

--- John E. Mulligan, Journal Washington Bureau

Continue reading "Plan to double sub production moves ahead" »

Posted by Peter Phipps at 4:37 PM | Permalink | Comments (0)

KINGSTON -- The University of Rhode Island in Kingston breaks ground today on a $60 million dollar biotechnology center.

The Center for Biotechnology and Life Sciences is the largest academic building project in the school's history.

State and school officials say it will be a boon for Rhode Island's expanding biotech industry.

The $140,000 square-foot facility will house classrooms and labs and has plenty of room for high-tech work. There will also be a 100-seat classroom and a 300-seat auditorium.

The center will boast a staircase shaped like a DNA double helix.

The building is being funded with a $50 million dollar state bond approved by voters and $10 million dollars in private donations.

Read today's Journal Business story for more about the center.

-- The Associated Press

Posted by Jack Perry at 7:01 AM | Permalink | Comments (0)

Gasoline prices across the state rose an average of three cents over the past week.

Self-serve, regular unleaded gasoline is averaging $2.60 per gallon, according to AAA Southern New England.
Locally, prices have risen 43 cents per gallon over the last six weeks. At this time last year, the average price was $2.45, according to AAA.

Regular unleaded gasoline prices ranged 11 cents in AAA’s weekly survey, from $2.56 to $2.67.

Check out AAA’s gas-saving tips.

Posted by Kate Bramson at 11:54 AM | Permalink | Comments (0)

ALBANY, N.Y. -- Rat poison has been found in pet food blamed for the deaths of at least 16 cats and dogs, a spokeswoman for the State Department of Agriculture and Markets said today.

Spokeswoman Jessica Chittenden would not identify the chemical or its source beyond saying it was a rodent poison.

The Food and Drug Administration has said the investigation was focusing on wheat gluten in the food. Wheat gluten itself would not cause kidney failure, but the common ingredient could have been contaminated by heavy metals or mold toxins, the FDA said.

New York state agriculture officials have scheduled a news conference for this afternoon to release laboratory findings from tests on the pet food conducted this week.

In Rhode Island, state Department of Health spokeswoman Andrea Bagnall Degos said she’s unaware of any local pets affected by the food, but she is checking with the department’s food protection professionals.

-- The Associated Press, with projo.com reports

Continue reading "Rat poison found in pet food blamed in pet deaths" »

Posted by Kate Bramson at 12:05 PM | Permalink | Comments (0)

LINCOLN -- The gambling establishment with a new name today unveils the goods behind its $220 million expansion.

What has been known as Lincoln Park is hosting an 11 a.m. ribbon-cutting ceremony for the facility that now identifies itself as Twin River. Even its old Web site directs online users to a revamped site under the new name.

Lincoln Park’s owners have spent $220 million so far on improving the aging track, hoping to transform it from a decrepit warehouse for slot machines into a comfortable, upscale gambling establishment.

There will be new high-end restaurants, large open spaces and a 2,000-seat arena that opens next month with a concert by the Goo Goo Dolls.
When all the improvements are done, there will be more slot machines than ever — a total of 4,752. That’s more machines than in any casino in Las Vegas.

Read columnist Bob Kerr’s take on the name change in today’s Journal.

Continue reading "Twin River today replaces the old Lincoln Park" »

Posted by Kate Bramson at 8:38 AM | Permalink | Comments (1)

AMSTERDAM, Netherlands -- Royal Ahold NV, best known as the operator of the Quincy-Mass.-based Stop & Shop grocery chain in the United States, reported a sharp rise in fourth-quarter earnings today and said it plans to boost its planned share buybacks by about $1.3 billion.

The Amsterdam-based company earned $318 million for the last three months of 2006, up from 103 million euros a year earlier.

Ahold had previously said its sales fell 2.8 percent to $13.5 billion for the quarter. Without currency fluctuations, sales would have risen 3 percent, the company said.

Stop & Shop and unions representing 43,000 workers in Rhode Island, Massachusetts and Connecticut averted a possible strike earlier this month when employees approved a three-year contract.

Read the full Associated Press story.

Posted by Jack Perry at 9:18 AM | Permalink | Comments (0)

PROVIDENCE -- Textron Inc., a multi-industry company with 40,000 employees, is on track to meet or exceed its projected first quarter earnings per share, the Providence-based company said today.

In a statement released before the company's 2007 Bank and Capital Markets meeting, Textron said it was ready to "confirm" the 2007 and multi-year financial outlook it released last month.

--Journal staff writer Benjamin N. Gedan

Posted by Andrea Panciera at 4:35 PM | Permalink | Comments (0)

PROVIDENCE – One of three locations of the Providence Watch Hospital – the capital city storefront in Kennedy Plaza – will close its doors for good, most likely tomorrow.

Customers who have left watches at the Providence location for repairs will be contacted and asked to pick up their timepieces at either the Cranston or Wakefield locations for the company that has been in Rhode Island since 1940, according to Shim Silverstein of the Providence Watch Hospital.

The downtown location is closing because it wasn’t doing enough business, Silverstein said.

“Our other two stores, in Cranston and Wakefield, are open and running for business and looking to do more business,” he said. “Any repairs that have been done downtown will be handled. We’ll get them to the people.”

-- projo.com staff writer Kate Bramson

Continue reading "Providence Watch Hospital to close downtown store" »

Posted by Kate Bramson at 11:37 AM | Permalink | Comments (1)

PROVIDENCE -- Governor Carcieri is weighing in on United Healthcare's plan to issue an "extraordinary dividend" of $36.8 million to its shareholders.

The Minnesota-based company's profits, the governor contends, should be used to reduce health care costs for Rhode Islanders. Carcieri sent a letter to the state Health Commissioner Chris Koller urging him to reject United's proposal, which will be reviewed at 5 p.m. today by the state Health Insurance Advisory Council.

"I am writing to express my strong concerns regarding United Healthcare's proposal to issue a $36.8 million extraordinary dividend to its shareholders," Carcieri writes. "As more and more Rhode Islanders struggle with high health care costs, I believe United's dividend plan is unwise and unhelpful."

United, a for-profit company that was awarded the health care contract for all state employees, is promising to invest 10 percent of the dividend, if approved, "to support Rhode Island statewide healthcare and technology develop initiatives," according to a letter filed with the health commissioner.

Health-care providers, consumers, and others are expected to turn out in force today to protest the proposal. Today's meeting will be at the Department of Business Regulation, 233 Richmond St., Providence.

-- projo.com staff writer Steve Peoples

Continue reading "Update: Carcieri knocks United Healthcare dividend" »

Posted by Steve Peoples at 4:35 PM | Permalink | Comments (3)

IRVINE, Calif. -- Rhode Island is among the states issuing cease and desist orders to a California home lender to people with weak credit.

New Century Financial said in a filing with the Securities and Exchange Commission that Rhode Island, Connecticut, Maryland and Tennessee issued the orders late last week.

The states allege that New Century units violated state laws, including a failure to fund mortgage loans after home closings.

New Century is the second-largest U.S. subprime home mortgage lender last year based on loan volume. The company has stopped making new loans due to a lack of funds.

The company says it's cooperating in the investigations.

-- The Associated Press

Posted by Steve Peoples at 2:51 PM | Permalink | Comments (0)

Old Stone Corp.'s longstanding lawsuit against the federal government is finally over.

As a result, Uncle Sam will have to pay Old Stone $74.5 million, said Winfield W. Major, a company director. The payment could come in May -- nearly 15 years after Old Stone filed the legal action.

Old Stone had won its case on the merits, and a federal court awarded the company $192.5 million. But a federal appeals court cut the award to $74.5 million. Old Stone last year asked the U.S. Supreme Court to intervene.

Today, however, the Supreme Court declined, without comment, to hear the case. As a consequence, the $74.5 million award stands. Company directors will meet soon to decide how to distribute the proceeds.

Old Stone Corp. is a former banking and financial services company. It long ago ceased those operations, but has remained in business, as a shell, solely to pursue the lawsuit, through which shareholders hope to receive some money.

Posted by Neil Downing at 2:41 PM | Permalink | Comments (3)

NASHVILLE, Tenn. -- Shareholders of Caremark Rx Inc. have approved a $26.5 billion acquisition by Woonsocket-based drugstore operator CVS.

Caremark's rival Express Scripts has been battling with CVS for months on who would get to buy the pharmacy benefits manager.

The companies say the deal creates a $75 billion drug distribution powerhouse that could compete more effectively for customers and drive a harder bargain with drug makers.

Caremark did not announce a vote tally, but says more than 50 percent of the shares voted were cast in favor of the deal.

CVS shareholders voted to approve it yesterday. It's already received regulatory approval. Caremark officials say they expect the deal to close by next week.

-- The Associated Press

Posted by Jack Perry at 10:11 AM | Permalink | Comments (0)

CVS Corp. shareholders this morning approved a merger with pharmacy-benefits manager Caremark Rx Inc. as the Woonsocket-based company battles a rival to complete the deal.

Nearly 92 percent of the voting shareholders approved the deal.

Caremark is set to vote on the merger tomorrow.

CVS last week goosed its offer for a third time by offering to pay $54.74 a share, plus a one-time dividend of $7.50 a share, as it tried to out bid rival Express Scripts Inc., of Maryland Heights, Mo. CVS will also buy back 150 million of its own shares at $35 each.

CVS' latest bid adds $1.50 a share to its previously offered $6-per-share dividend. The increase adds $3.2 billion to the CVS offer, while the share repurchase would put another $5.25 billion into its shareholders' pockets.

-- With reports from Journal staff writer Paul Grimaldi

Posted by Jack Perry at 11:56 AM | Permalink | Comments (0)

PROVIDENCE -- Tellme, a voice service provider co-founded by Providence resident Angus Davis, is being acquired by Microsoft.

The company, headquartered in California, sells voice recognition software that is used for nationwide directory assistance and for customer service at companies, including American Airlines and Domino's Pizza.

Microsoft did not disclose how much it paid for Tellme, a private company Davis helped create in 1999.

-- Journal staff writer Benjamin N. Gedan

Posted by Steve Peoples at 2:50 PM | Permalink | Comments (0)

Freedom Broadcasting, owner of WLNE-TV, Channel 6, announced today that the station has been sold to Global Broadcasting LLC, a Delaware company owned and operated by Kevin O'Brien and Robinson Ewert.

Freedom did not reveal the station's selling price. Channel 6 is the ABC affiliate in Rhode Island.

"Global is extremely pleased to have the opportunity to take over the reins at WLNE," once the sale has been approved by the Federal Communications Commission, O'Brien said in a written statement. "The employees have all worked hard to strengthen it's brand and increase WLNE's relevance to its viewers in Southern New England. We look forward to continuing those efforts."

Freedom Broadcasting owns nine television stations, including WLNE, across the country. It is a division of Freedom Communications, headquartered in Irvine, Calif., a national privately owned information and entertainment company of print publications, broadcast television stations and interactive businesses. The company’s portfolio includes more than 70 newspapers, including The Orange County Register.

-- Journal staff writer Andy Smith

Posted by Peter Phipps at 5:07 PM | Permalink | Comments (0)

NASHVILLE, Tenn. -- Express Scripts Inc., which has been battling CVS Corp. to acquire pharmacy benefits manager Caremark Rx Inc., said today it won't make a higher offer because it isn't allowed to see enough of Caremark's financial data to perform due diligence.

"Our current offer is the best and only offer we can make at this time," George Paz, Express Scripts president, chief executive officer and chairman, told a news release.

The company said Caremark's board refused to permit it to see the financial data.

Since CVS and Caremark announced a stock acquisition agreement in November and Express Scripts offered a rival bid for cash and stock in December, the drug store operator has improved its offer three times. Express Scripts improved its offer once.

Read the full Associated Press story.

Posted by Jack Perry at 12:02 PM | Permalink | Comments (0)

Gasoline prices in Rhode Island have increased another seven cents over the past week and are the highest they've been since last September, according to AAA Southern New England.

The average price for regular, unleaded gasoline is $2.569 at the self-service pump, according to AAA's weekly survey.

The price has increased 39 cents per gallon over the past month.

AAA's fuel cost calculator.

Posted by Jack Perry at 11:20 AM | Permalink | Comments (0)

NASHVILLE, Tenn. -- Federal regulators want more details about Express Scripts' hostile bid for competitor Caremark Rx.

Express Scripts put in a hostile bid for Caremark after Woonsocket-based CVS said it planned to buy the company last year. The two companies have been struggling ever since about which one of them will buy the prescription benefits manager.

They're both now offering about $26.5 billion.

The Federal Trade Commission wants more information from Express Scripts before approving a potential deal -- which could delay the deal closing.

The FTC has already approved the CVS deal. Caremark's board favors the CVS deal and says the Express Scripts offer may not get approved by regulators.

-- The Associated Press

Posted by Steve Peoples at 5:47 PM | Permalink | Comments (0)

The answers have been streaming in, sometimes 20 to 30 responses an hour, to the query we posted on projo.com seeking your opinion: “What’s your take on the immigration issue in the U.S.?”

By 2:35 p.m. today, 1,243 people had responded to a survey we first put online during the rallies last April and May and the May 1 boycott for immigrants’ rights that was organized on a national scale and held in cities throughout the country. Perhaps as many as 500 responses have flooded in since the massive raid of the New Bedford textile plant on Tuesday.

The responses are heavily critical of illegal immigrants and are similar to those that came in almost a year ago, although some say the comments they're reading are racist and go against the country's legacy of beginning as a nation of immigrants.

Some examples of both sides weighing in:

At 9:43 a.m. today, one person wrote: "Instead of showing the crying ILLEGAL workers, Why doesn't the Projo interview the competing company who lost the bid for the contract, or better yet, the LEGAL workers for that company who got laid-off because the bid went to a company that hires ILLEGAL help. Maybe they could show their children crying on Christmas morning because there where no presents under the tree. Maybe then you can all see what ILLEGAL workers are doing to this country. But for now we have a one sided press that wants us to feel sad for people who don't belong here. I for one, will not buy this paper again nor support anyone who advertises in it."

At 9:55 a.m. today, a response to some of the negativity: "I am stunned by the level of racism and hatred I'm seeing here. The fact is that immigrants both legal and illegal - are HUGE contributers to the economy and vital to its success and future. They also infuse our culture with the music, food, and other cultural traditions that make this nation interesting and vibrant. What on earth is wrong with you people? These people are an ASSET. America has an extraordinary OPPORTUNITY because they are here. I'm sick of hearing about how people's grandparents came "legally" - the barriers they confronted were nowhere near as as restrictive as those that exist today. Our immigration policy and admission proccess is so profoundly inadequate and short-sighted that the laws surrounding it just compound the problem. They should be changed. To inanely repeat that "the law is the law" is the kind of thinking that sheep do, that facists encourage, and that will ruin us."

Posted by Kate Bramson at 1:35 PM | Permalink | Comments (8)

PROVIDENCE – Union and company leaders for the Stop & Shop supermarket chain have begun their last scheduled day of negotiations.

Some 43,000 employees are set to vote Sunday on whatever contract proposal has been hammered out by the end of today. If it fails, they’re going on strike that day, according to Jim Riley, secretary-treasurer of Local 328, which represents Rhode Island and southeastern Massachusetts employees.

Company spokeswoman Faith Weiner has not immediately returned a phone call this morning.

Negotiators for both sides filed into the meeting at the Westin Providence just before the 9 a.m. start time, Riley said.

-- projo.com staff writer Kate Bramson

Continue reading "Stop & Shop talks enter last day" »

Posted by Kate Bramson at 9:21 AM | Permalink | Comments (0)

The state Department of Business Regulation has issued an emergency order for a Lincoln travel agency --Travel Solutions Inc., 640 George Washington Highway -- to cease and desist.

The DBR has immediately suspended the agency’s licenses and ordered that the business leaders of Travel Solutions “cease and desist from any activity requiring licensure” by Rhode Island laws.

The company -- which was licensed to do business in Rhode Island on Dec. 13 -- has 20 days from today to request a hearing into the matter, according to the DBR.

If the company requests a hearing, the travel agency must stay closed throughout the entire hearing process, which could take several weeks to a month, at least, according to Richard Berstein, executive counsel for the DBR. If Travel Solutions does not request a hearing, “then we will move to permanently revoke” their license, Berstein said.

The department has received nine complaints about the business since Jan. 30, alleging improper business practices that include using intentionally misleading advertising; making statements with the intent to deceive, misrepresent or mislead the public; engaging in conduct that creates a likelihood of confusion or misunderstanding; and engaging in unfair or deceptive practices.

-- projo.com staff writer Kate Bramson

Continue reading "Update: Lincoln travel agency closed" »

Posted by Kate Bramson at 6:53 PM | Permalink | Comments (0)

DALLAS -- Southwest Airlines is adding flights at T.F. Green Airport.

Starting in June, Southwest will have daily nonstop flights between Fort Lauderdale, Florida, and T.F. Green in Warwick. The airline is also adding flights between Houston and San Diego, Denver and Oakland, California, Baltimore and Oklahoma City, and Baltimore and St. Louis.

In all, Southwest is adding 18 flights in 15 cities this summer as it continues to expand its aircraft fleet.

Southwest CEO Gary Kelly says the fleet will grow between 7 percent and 8 percent this year with the addition of 37 new Boeing 737s.

-- The Associated Press

Posted by Kate Bramson at 1:44 PM | Permalink | Comments (0)

PROVIDENCE -- Union officials are set to meet with the Stop & Shop management this morning as both sides return to the bargaining table in an attempt to avert a strike.

"The union negotiating team is sitting at the table as we speak waiting for the management reps to come down. I trust they won’t be late because we need to hit the ground running," Jim Riley, secretary-treasurer of Local 328, said a few minutes before 9 a.m. from the Westin Providence, where talks were scheduled to begin at 9 a.m.

"We’re not close, we’re not close enough, we’re not as close as we should be after 23 meetings," he said. "We have to have some clear movement this morning."

The 43,000 employees represented by the five area unions have already authorized a strike and, therefore, could walk off the job at any time. They have agreed not to strike while negotiations continue.

Negotiations will continue through Friday, according to Riley. The union is scheduled to vote Sunday on whatever proposal is on the table.

Riley said he expects to put in long days at the negotiating table today and tomorrow.

"I wouldn’t mind going 48 hours straight if we have to," he said. "Friday is the last day; that’s the deadline. There is a line in the sand."

-- projo.com staff writer Steve Peoples

Posted by Steve Peoples at 9:31 AM | Permalink | Comments (1)

WILBRAHAM, Mass. -- Friendly's Ice Cream says it's thinking about putting itself up for sale.

The Wilbraham-based company with restaurants spread across Rhode Island and other Northeast states, issued a statement today saying it has hired financial and legal advisers to help explore ways to make more money for its shareholders, including a possible sale of the company.

The company today is also reporting a fourth quarter profit of $136,000, compared with a loss of just over $30 million during the same period a year earlier.

Friendly's also posted an annual profit of $5 million, compared with last year's loss of $27 million.

Friendly's runs a chain of 514 company-owned and franchise restaurants in the Northeast, including a number of Rhode Island locations. The company distributes ice cream through more than 4,500 supermarkets and other retail locations.

-- The Associated Press

Posted by Steve Peoples at 12:17 PM | Permalink | Comments (0)

NEW BEDFORD -- Up to 500 workers have been arrested at a leather factory in New Bedford in what federal officials are calling one of the largest illegal immigration workplace raids in recent memory.

The company sells backpacks and ammunition holders to the Pentagon that are used in Iraq.

Immigration agents from across the country were brought to the region to conduct the 8:15 a.m. raid, which involved a Coast Guard helicopter and hundreds of law enforcement personnel. The exact number of undocumented workers arrested at Michael Bianco, Inc., 89 Rodney French Blvd., is unclear, but officials said the number could be as high as 500.

Five company managers were arrested as well, including the owner, who was charged with "conspiring to encourage or induce illegal aliens to reside in the United States, and conspiring to hire illegal aliens," according to the U.S. Attorney's Office in Boston.

The factory and surrounding streets were blocked off to the public this afternoon as federal immigration agents continued to interview workers inside. Those determined to be in the country illegally -- and that number is expected to be upwards of 500 -- will be placed in a federal detention center in Massachusetts pending the outcome of immigration proceedings.

The crowd gathered outside the factory today included many workers' relatives, who said that the bulk of workers' arrested are women. Social advocates said they contacted all the schools and day care centers in the area to ensure children weren't abandoned.

Helena Marques, of New Bedford's Immigration Assistance Center, said many fathers may not pick up children today, fearing that they could be arrested as well. She noted that an area church would stay open all day and night to help people find their relatives and answer questions.

Immigration and Customs Enforcement spokesman Richard Rocha said that today's raid was the result of an 11-month investigation dubbed Operation United Front.

"The message to employers is that you can’t hire people who are here illegally,” Rocha said, adding that those hired illegally "are taking jobs away from other people in New Bedford."

-- projo.com staff writer Steve Peoples with reports from Journal staff writer Karen Ziner.

Posted by Steve Peoples at 4:30 PM | Permalink | Comments (6)

The Internal Revenue Service says it's holding more than $9 million in unclaimed refunds for about 6,400 Rhode Island taxpayers who failed to file a federal income-tax return for 2003.
Some are students who didn't have to file a return for 2003 but should have done so in order to recover federal income taxes that were withheld from their summer jobs.
These taxpayers now face a deadline that's right around the corner:
They have until April 17 to file a return for 2003 and claim their refund. If they don't, they'll forfeit the money forever; it will automatically become the property of the U.S. Treasury. "You simply can’t get the money we owe you unless you file a return’’ by the deadline, IRS Commissioner Mark W. Everson said.

Posted by Neil Downing at 1:53 PM | Permalink | Comments (0)

REHOBOTH -- Have you ever wanted a putting green in your back yard? How about nine of them?

This may be your chance.

The Hillside Country Club -- a sprawling Hillside Avenue property that features a 9-hole golf course and a new banquet facility -- is set to be auctioned off Friday, April 13, a spokesman from the Milford National Bank said today.

The foreclosure auction was initially scheduled for this morning, but was postponed. Neither the bank spokesman, nor the auctioneer -- who was the only one at the club (besides a Journal reporter) at 11 a.m. when the auction was supposed to start -- could explain the delay.

-- projo.com staff writer Steve Peoples with reports from Journal staff writer Paul Grimaldi

Posted by Steve Peoples at 11:31 AM | Permalink | Comments (0)

WARWICK _ More than 200 officials from cities and towns in the state crowded a meeting room at the Community College of Rhode Island today in the hopes of getting answers to their questions about the tax cap imposed by the General Assembly last summer.

Most left frustrated after listening for more than two hours to financial experts from the state. The meeting was sponsored by the state Senate.

"Were my questions answered? No," said Suzanne McGee-Cienki, chairwoman of th East Greenwich School Committee. "I applaud the state effort to try to control property taxes, which have increased so significantly, but I question as to whether they've really gotten to the root of why taxes have continued to go up and I also don't think that they sudied all the implcations the cap will have on school departments and communities."

The cap limits the amount of taxes a community can raise by 5.25 percent this year. The cap will tighten in quarter-point increments until it is down to 4 percent in fiscal 2013.

Senate Majority Leader M. Teresa Paiva Weed, who was one of the lead sponsors of the bill, said that state officials are committed to helping communities understand all the details of the law.

"We're not just passing this and walking away," she said.

Posted by Peter Phipps at 2:58 PM | Permalink | Comments (0)

PROVIDENCE -- There was a big jump at the gas pump over the past week.

Gas prices in Rhode Island have jumped an average of 17 cents a gallon. That's according to a survey released today by AAA of Southern New England.

AAA says a gallon of self-serve unleaded regular is averaging $2.49.

Prices have gone up by 17 cents in the last week and by 32 cents over the last three weeks.

Meanwhile, the state Office of Energy Resources is also reporting prices at $2.49.

-- The Associated Press

Posted by Steve Peoples at 2:09 PM | Permalink | Comments (5)

A New York company has bought Alperts Furniture Showplace, the popular Seekonk home furnishings retailer that has been family-owned for more than a century.

Raymour & Flanigan Furniture, which owns and operates 64 showrooms and six clearance centers across the Northeast, announced the purchase this afternoon.

"Raymour & Flanigan Furniture is excited this step brings us closer to offering residents of Rhode Island and Southeastern Massachusetts our furniture selection, many financing options and guaranteed three-day delivery," company CEO Neil Goldberg said in a statement. "I recently had the privilege of meeting with Alperts employees and told them that we are driven to make this transition as smooth for them as for the customers they have served so well over the years."

The final transition to new ownership is between two and three months away, according to the new owner, but Raymour & Flanigan said it plans to honor all Alperts furniture orders, gift cards, discounts, lay-aways and warranties.

"We look forward to having Raymour & Flanigan Furniture carry on the reputation, service and tradition of excellence the Alpert family has created in more than 100 years of business," said Hershel Alpert, the third generation president and CEO of Alperts.

Posted by Steve Peoples at 3:57 PM | Permalink | Comments (0)

At least 17 bank accounts at Centreville Savings Bank in West Warwick were compromised in connection with the Stop & Shop debit and credit card identity theft scam.

The bank has issued entirely new bank accounts for 17 customers, executive vice president Robert Bjorklund said today.

-- projo.com staff writer Kate Bramson, with reports from Journal staff writer Paul Grimaldi

Posted by Kate Bramson at 4:07 PM | Permalink | Comments (0)

Westerly Hospital today says that 2,242 confidential patient records were posted on a Web site registered in Australia.

The front pages of the records were posted. The records included a patient's name, date of birth, Social Security number, insurance information and, in some cases, medical information.

Hospital president Charles S. Kinney said the hospital has hired Global Digital Forensics, based in Florida, to investigate.

It is unclear how long the patient records were posted on the Internet.

The identity thefts involved accounts with activity in January.

The hospital says it hopes to have contacted every patient by next week.

The hospital has also established a hotline for concerned community members and patients to call, at: (401) 348-3786.

--- Maria Armental, Journal staff writer

Posted by Peter Phipps at 3:38 PM | Permalink | Comments (0)

JOHNSTON -- Governor Carcieri announced today that A. Duie Pyle, Inc., a transportation and logistics supplier that serves the Northeast, will build a 47,000-square-foot distribution facility and a 20,000-square-foot warehouse here.

With this facility, A. Duie Pyle will hire 120 full-time employees over the next three years, according to a press release from the governor's office this afternoon.

The buildings will be located in the town’s new industrial park adjacent to R.I. Resource Recovery Corporation off Shun Pike. Construction is scheduled to begin this spring.

The project will consist of two phases, with the distribution center built in the first phase and the warehouse, office and fleet maintenance space built in the second phase.

The governor's office yesterday had foreshadowed the announcement, which was made this afternoon at the Town Hall by Carcieri. Also attending were Mayor Joseph Polisena and Peter Latta, the CEO of A. Duie Pyle. They were joined by officials from the state Economic Development Corp. and Department of Labor & Training.

Posted by Steve Peoples at 3:25 PM | Permalink | Comments (0)

Sovereign Bank’s online banking and telephone banking are out of service in Rhode Island and the eight other states where the bank has branches because of an underground fire in Philadelphia.

The fire took down an AT&T line in Philadelphia that connects to Fiserv, the company whose information processing technology helps the bank access customer information, according to Carl Brown Jr., assistant vice president and communications manager for the bank.

The fire has also affected banking in the local branches, “to a degree,” Brown said this afternoon.

The bank has "no idea" how long it may take to correct the problem, Brown said. The fix in Philadelphia is up to AT&T to correct, he said, but the bank is looking into an alternative way to transmit its customer data.

There’s no connection between the banking problems and the recent credit/debit card scam connected with Stop & Shop stores throughout Rhode Island and Massachusetts, Brown said. The bank is handling consumer complaints about accounts that have been compromised in connection with that theft as it does other consumer complaints about suspected fraud – on a case by case basis, Brown said.

-- projo.com staff writer Kate Bramson

Posted by Kate Bramson at 3:11 PM | Permalink | Comments (0)

Cox Communications and LIN TV Corp. have ended a long-running dispute over high-definition TV.

The companies announced today that they had reached an agreement for retransmission consent of WNAC Fox Providence and WPRI CBS in both analog and in high-definition.

The analog channels are found on Cox channel 11 (Fox) and channel 12 (CBS). The high-definition signals will be available on Cox Digital Cable channels 704 and 701, respectively, beginning today at 5 p.m.

In January, LIN TV announced that it had signed a deal with Verizon Communications that allows Verizon to broadcast LIN TV's programming, including its high-definition channels.

Cox and LIN have been going back and forth about high-definition for more than two years.

Today, Paul Cronin, vice president and region manager for Cox said: “Cox is pleased to finalize an agreement providing for long-term carriage of both the analog and digital signals of CBS and Fox in Rhode Island.”

“We’re committed to offering Cox customers the quality, high-definition channels they want. Cox is delighted to add this programming to our HD line-up.”

Posted by Peter Phipps at 2:01 PM | Permalink | Comments (0)

WASHINGTON -- Connecticut and Rhode Island lawmakers are renewing their push to convince the Navy to double submarine production to two ships per year.

Such an increase, they said today, would bolster national security and prevent more layoffs at submarine maker Electric Boat, which has facilities in both states.

"We're going to fight this battle," Sen. Joe Lieberman, I-Conn., said at a submarine industry group breakfast on Capitol Hill. "This matters a lot to me. This matters a lot to our country."

Rep. James Langevin, D-R.I., said submarines are vital to New England's struggling manufacturing economy.

"We obviously in New England have a strong, proud tradition of supporting the building of submarines," Langevin said. "We have to do more to protect that industrial base."

Read the full Associated Press story.

Posted by Jack Perry at 1:33 PM | Permalink | Comments (0)

Journal photo / Bill Murphy
Christopher Bizzacco, right, chief of staff for Providence Mayor David N. Cicilline, listens to a presentation at the Sovereign Bank Economic Outlook breakfast today. At left is Michael Lee of Sovereign Bank.

The state can expect to see rising household income over the next several years, fueled by growth in investment income, according to a survey released this morning by Sovereign Bank.

But the positive news on income is tempered by expecations for slower economic growth and cooling consumer spending this year. The war in Iraq and fluctuating energy prices are also major concerns for consumers and business leaders who took part in the survey.

Sovereign Bank officials discussed their findings with the state's business leaders this morning at The Westin Providence during the annual Economic Outlook Breakfast co-sponsored by the Greater Providence Chamber of Commerce.

-- Journal staff writer Paul Grimaldi

Posted by Steve Peoples at 10:20 AM | Permalink | Comments (0)