Birmingham Post-Herald du lieu suivant : Birmingham, Alabama • 21

Birmingham Post-Herald Thursday April 30 1992 Business Stocks B8 BIO B11 Features B12 B9 iSStSiioSS Trade fee hike fuels fear Americans scratching their fee bites biggest brokerage has been charring a 840 annual fee on basic brokerage accounts held by about a million investors Typical of fees it was imposed with little fanfare by the fee-charger and rattier little awareness by fee-payers who already pay commissions and therefore wonder why they must pay also for the right to do business In seeking to understand customers often wrestle with an enigma: How could a seller of goods and services such as Merrill Lynch stay in business if they have customers? So why charge customers who provide you with income? The practice began in the brokerage industry during a period of financial stress several years ago one answer to which was so-called unbundling or charging for specific services that some but not all customers required Bank-card customers often pay annual fees in addition to interest charges and of course fees for late Checking account customers pay fees and seekers pay application fees for offering a bank their business Direct mail advertisers are inclined to state the price at their product boldly and then ask that you tack on a and fee for delivery at the product that they sell unless they deliv- i 1 By John Caitiff Attociitod Ptch NEW YORK Americans have been heard to say often in April that they are being taxed to death But if they take heed it may be fees that get them first Fees have become one of the most commonly employed fund-raising innovations of recent times used by bankers brokers colleges churches governments mail order houses ana a variety of other businesses and institutions The fees often slip into bills almost unnoticed and in fact they are sometimes unannounced as sometimes are increases in fees already in place In effect they are price increases made without the onus of They have advantages for users substituting for more ominous labels such as and Sometimes they impress payers as being for extra services when in fact the basic service be sold without them But these are days when people scrutinise bills and many are wondering why they must pay fees at all since already they are paying for the product or service in the form of interest or commission charges An example of that was provided when The Wall Street Journal reported that Merrill Lynch Co the Winn-Dixie lowering prices tom Staff wd Pm Itoprta JACKSONVILLE Fla Winn-Dixie a Sun Belt grocer among the nation's largest supermarket chains is lowering prices in all its 1200 stores The company said the cuts announced Tuesday are meant to boost volume and strengthen Winn- among grocery shoppers as the top low-price supermarket chain in an increasingly competitive market have continued to achieve sales increases despite a difficult economy and hundreds of new competitor stores in our operating said James Kufeldt president The company said it actually began to cut prices on some goods weeks ago mid is undertaking an aggressive advertising campaign that will stress the reductions saying Just Got move follows more than a year of industrywide price-cutting a partial result of the recession that has made shoppers more frugal in their spending Limited hires official ICjf! NEW YORK -Limited Inc By Stefan Fatsls Aaociatcd Prca NEW YORK Shearson Lehman Brothers Inc the nation's second-biggest brokerage confirmed yesterday it is hiking a basic fee it charges customers raising the poesjbility pf a new fee frenzy on Wall Street The increase comes after Merrill Lynch Go the No 1 retail brokerage reported it had quietly begun charging about 1 million customers with standard accounts an annual $40 fee regardless of how frequently they trade The1 moves by the top brokerages come during boom times on Wall Street when individual Investors have joined a stock market rally helping to push brokerage profits to record levels Industry executives said the increases at Shearson and Merrill which are in addition to commissions the firms charge customers could lay the foundation for other fee hikes interested in what Merrill and Shearson do because they're such an influential leader in these said John Bachmann managing partner of St Louis-based retail broker Edward Jones Co But Bachmann said his firm had no plans to increase fees or commissions Shearson said in a memo to managers that starting tomorrow it will raise a postage-and-handling fee to 3385 from 5285 a 35 percent increase The fee is charged every time one of its 28 million clients makes a trade The charge standard on Wall Street is designed to cover printing labor mailing and administrative costs to confirm trades for investors due to the rising cost of doing Shearson spokewoman Sally Cates said Merrill last year increased its mailing fee to $485 highest in the industry Shearson had raised its fee from 2 In February 1991 Prudential Securities Inc this year upped its mailing fee to $450 from 8235 Whether the higher fees anger clients clear But the growing customer rosters at discount brokers which offer similar services but no investment advice may reflect discontent Merrill's 840 annual fee which took effect Jan 1 was store division which has slumped in 1990 reached outside for help yesterday hiring a top RH Macy Co Inc merchandising officer Roger Markfield executive vice president of merchandising will become the Limited division's executive vice I merchandise manager surprising because it applies to customers who trade actively as well as those who don't Most Wall Street firms charge 850 to maintain inactive accounts Merrill has discontinued that fee John Galvin a Merrill vice president said the 840 charge acknowledges that customers should pay more to cover account expenses He said the fee pays for safekeeping securities providing tax information reorganizing portfolios insurance and other services some of which other firms charge for separately Morill Shearson ana others said their fees still cover costs What a standard fee will do is help avoid cyclical downturns caused by lulls in trading activity Dean Witter Reynolds Inc in January added a 850 inactive account fee but the firm was a holdout to that Its mailing fee at 8235 is the lowest among major Arms Prudential Securities last year also imposed a 350 legal transfer fee kfield is the third important Macy executive troubled company ii defect from that I company in recent to weeks '1' "A Magellan fund chief is leaving Du Pont chairman cautious WILMINGTON Del Du Pont Co Chairman Edgar Woolard Jr treaded cautiously through the annual meeting yesterday to avoid disruption from environmentalists upset over production of chemicals that destroy the ozone layer Confronted with members of the environmental group Greenpeace an angry labor union and shareholder gadflies Woolard relented when shouts of protest would go up if he tried to cut off a speaker am very hopeful that we will have an opportunity for constructive dialogue here today and that Greenpeace will be willing to behave like other Woolard said The nearly 2 ft -hour meeting marked by heavy security supplied by Du Pont and uniformed city police followed an agreement allowing Greenpeace members to speak if they would not disrupt the meeting Woolard said Firm gets hangar contract BrasfielaJc Gorrie General Contractor Inc been awarded a contract for the US Air Lines has maintenance hangar at Tampa International Airport The $205 million project began in Man and is to be completed in one year Brasfield it File photo Adding dog racing to horae racing could be worth $66 million to city Study backs dog horse racing impact By Jonathan Yenkin Aaociatcd Pro BOSTON Two years after stepping into some of the investment biggest shoes Morris Smith is walking away from the prestigious high-pressured job as head of Fidelity Investments' Magellan fynd Smith 34 who inherited the largest stock mutual fund from Peter lynch said yesterday that he would take a one-year sabbatical in Israel with his wife and children He made no commitments for the future and I have always wanted our children to know Israel so we plan to spend some time he said addition this will allow us time to consider our future plans and Smith aim said he has been extremely happy with his work at Fidelity worked out way beyond my he said Fidelity said Smith would be succeeded by Jeff Vinik 33 who has overseen the Growth Income Fund He previously served as Lynch's assistant on Magellan Vinik said he would approach his new job the way done it in the with intensive company analyses Lynch now a trustee of the Fidelity Group of Funds said Vinik a great love of stocks and the During Smith's two-year tenure the Magellan Fund grew from 813 billion to 820 billion in assets Its average annual return has been 147 percent compared with a 98 percent return for the Standard It Poors 500 during the same period Lynch posted a 292 percent annual return compared with 158 percent for the SAP 500 think (Smith) has done a good said Perrin Long an analyst with First of Michigan Corpin Detroit been an easy Smith aim faced the pressure of following lynch who himself took an early retirement after guiding Magellan to phenomenal growth in the 1980s no question when you succeed 8 legend in your own time it's an Smith said A UAB study looked at the economic impact of dog and horse racing on the Birmingham area Conclusions are based an annual Sales Impact $66 miKon Employment 1164 Sales taxes $343010 Property taxes $330335 Occupational taxes $273750 Source UAB Eoonomcs tepetnanl Gorrie of Birmingham has regional offices in Atlanta and Orlando Fla Alfa announces dividend Alfa Oorp an insurance and financial services firm in Montgomery has announced a quarterly dividend of 125 cents a share an increase of 136 percent over the previous quarterly rate It represents the 18th consecutive year that cash dividends increased The dividend is payable June 1 to stockholders of record May 15 Cookbook available free Prudential South OTown Realty President Herbert Sanders has announced a way to say thank to the Birmingham Hoover and Vesta via areas for the recent sales achievements The realty firm will be giving away the Prudential South OTown Realty Cookbook You can call the company at 822-7258 to reserve a free copy but just one per household Offering of notes scheduled Sonat subsidiary Southern Natural Gas Go said yesterday it will offer $100 million worth of 8ft percent notes due May 1 2002 at 100 percent to yield 8 ft percent The offering is being made through Goldman Sachs Co and Merrill Lynch A Co ai underwriters The notes are not redeemable before maturity and are not subject to a sinking fund is a conservative number based on an annual handle (amount bet) of 8228 million That figure is higher than the handle at Victory Land in Macon County a greyhound track operated by McGregor the Montgomery businessman win currently is operating the Birmingham track and plans to buy it far about 820 million if voters approve dog racing If the handle is mare than 8220 million the local economic benefit would be greater McCrary said A larger handle would indicate more patrons The study did not look at the economic costs to the community would ness however that the benefits would be a whole lot more than the costs" McCrary said The track would have its own security force which would reduce the direct demand for police protection he said would be some minor costs associated with the track but before we could calculate that we would need a lot more Such data would have to look at the demographic makeup of employees and patrons and the size and locations of their households he said By Patrick Rupinski Foct-Hcrald Reporter The local economy could gain at least 866 million if both greyhounds and thoroughbreds are raced at the Birmingham Race Course according to a study by the University of Alabama at Birmingham The study was commissioned by the Birmingham Area Chamber of Commerce and the Metropolitan Development Board two agencies that favor dog racing at the track Most of the figures for the study were furnished by the Jefferson County Racing Association which is affiliated with Milton McGregor president of the Birmingham Race Course A referendum to legalize dog racing in Birmingham goes to Jefferson County voters on June 2 James McCrary a research assistant in economics department and one of four academians who worked the month-and-a-half study said the 366 million figure comes from sales figures That figure includes not only direct sales to track patrons but also a multiplier effect that measures additional sales as track employees spend their income in the community and businesses dealing with the track or its patrons increase their purchases to meet the new demand The multiplier effect will vary with different industries McCrary said The hotel industries for example would see the greatest benefit as more out-of-town track patrons use their services But even areas such as retail would benefit as the dollars generated by the track operation trickle through the community McCrary said the 866 million figure Black White and well you know Wayne Long People in business ELECTED At Dur-FRauer Macfcai Inc In I 1 a MOniQOniliyi fW0R Bi oNUi fwVN pfNIuBfn SnQ CmMV executive officer of BeSSouVi Services to board of PROMOTED At BEIK Inc Wayne Long to project manager JOMED MarSynne McMahon at Alabama Car Truck and Van Rants sales torce JOaCD Marty Crawford Harrison Ltd men's doUiing store as oontroSsr-aalssman and restaurants to museum and literary events there will also be political commentary sports stories and coverage of local The first issue available today in restaurants nightclubs bookstores music stores and a variety of other urban locations contains feature stories on controversial arts entrepreneur David Romei longtime local TV personality Eddie Burns and rock star Peter Framp-ton 4 Besides listings for entertainment events and recommendations on local the issue includes a satirical look at the presidential candidates and a series of oddball news briefs from around the of alternative newspapers the column actually a dating i service via the want-ads page Black White's target audience is adults ages 18 to 49 who live in or close to the city and are keenly interested in urban goings-on Geiss The idea for Black White grew out of conversations Geiss had last summer with Kerry Echols former publisher of the now-defunct monthly I Cover The War and John Montgomery a local advertising representative With positive response from potential advertisers and local freelance writers the three put together a staff that includes Echols 25 as 1 managing editor Montgomery 25 in I marketing and sales and former Ox- moor House editor Alison Nichols 32 as executive editor By Kathy Kemp Poil-HfraM Reporter A dalmatian named Pepper stares out from the inaugural cover of Black White a free monthly newspaper that hits the streets today The oversized 40-page tabloid aims to be Birmingham's version of the Chicago Reader or the LA Weekly that is a newspaper heavy on entertainment but with a political conscience and an offbeat irreverent style not often seen in mainstream duties percent of what we do will be entertainment and leisure says Black White's 34-year-old publisher Chuck Geiss who also runs the local advertising agency McMaim and Tate cover everything from nightclubs Estate Planring Ccuncl maaUng 1-5 pm May 7 Herbert Canter Richard Covey a partner In tha New York law linn of Carter Ladyatd A MKxan wS apeak on recant developments aetata planning aa a Leader" aemlnar 8:30 am-' 4:30 pm today: Continuing Education Center 1919 University Btvd Sponsored by University of Alabama at BsmkighamSpacial Studtea and the UAB School of Business tod by mmgamant consultant Pete Lwid appears Tuesday through Saturday Send items to: Andrew Kilpatrick Birmingham Post-Herald PO Box 2553 Birmingham Ala 35202 Keith BoyerPMt-Herald Proud parents are from left front Lori Pitts art director Alison Nichols executive editor from left rear John Montgomery marketing Kerry Echols ME Chuck Ceiss publisher The page also features a full- Ivertisement for that staple.