Boston Business Journal articles from April 1991

Boston Business Journal archives from April 1991

Nation's biggest player bets on Massachusetts. (Gamma International Ltd.'s plan to bid for Massachusetts lottery industry)
April 8, 1991... Nation's biggest player bets on Massachusetts It's been nearly 50 years since Rose Medaglio started playing Monday night bingo at St. Augustine Church in South Boston. There, the number-matching game has evolved into a hightech gambling...

A classic case of bad banking. (bank failure at Blackstone Bank and Trust Co.)
April 8, 1991... A CLASSIC CASE OF BAD BANKING On that April day in 1989, Dan Dart, chief executive officer and president of Blackstone Bank and Trust Co., knew something was seriously wrong. Four condominiums at the bank's New Bedford development had sold...

Jordan Marsh.
April 8, 1991... Boston retailer Jordan Marsh lost money in the fiscal year ending Jan. 31, 1991, according to parent Federated Department Stores, which wouldn't be more specific. The 20-store chain's new CEO, Harold Frank, is changing the company's focus from...

Harvard University. (CEO of investment firm resigns)
April 8, 1991... The founding partner of Harvard University's investment firm, Walter M. Cabot, stepped down as senior adviser last week, seven months after he was replaced as CEO. The firm, Harvard Management Corp., grew from $1 billion to $5 billion during...

Monarch loses crown. (Monarch Capital Corp. posts loss and won't be able to continue running its biggest subsidiary)
April 8, 1991... Monarch loses crown Springfield-based Monarch Capital Corp. posted a 1990 loss of $521 million and announced it will not be able to continue running its largest subsidiary, Monarch Life Insurance Co. The holding company, which lost $24...

Mosaic Software.
April 8, 1991... Brighton-based Mosaic Software was ordered by a federal judge to halt production of, and terminate reseller agreements for, its Twin spreadsheet software in accordance with a copyright infringement suit won by rival Lotus Development Corp....

PictureTel.
April 8, 1991... PictureTel, the Peabody-based maker of teleconferencing systems, announced that the NASDAQ National Market System will stop trading its publicly held common stock purchase warrants, at PictureTel's request.

Bargain change.
April 8, 1991... Bargain charge Credit-card behemoth Citibank has announced a marketing plan that will pay users up to $1,000 annually when they miss sales and bargains that occur up to 60 days after a purchase. Citibank hopes the move will boost credit-card...

Wang Laboratories.
April 8, 1991... The ailing Wang Laboratories is still not up for sale, insists CEO Richard Miller, but the company is looking for strategic alliances. Wang has outlined a business strategy based on software and consulting services called "Office 2000," which...

Alliant Computer Systems.
April 8, 1991... Alliant Computer Systems announced it expects a first-quarter loss of $3 million, or 22 cents a share, blaming revenues that were lower than expected.

Ames Department Stores.
April 8, 1991... . . . The U.S. dollar fell against most currencies last week.... The creditors of Ames Department Stores granted the Rocky Hill, Conn.-based chain an 18-month extension on its $250 million debt.

Polaroid.
April 8, 1991... . . . Polaroid CEO and president I. MacAllister Booth will replace 50-year Polaroid veteran William J. McCune Jr. as chairman next month.

Worcester Telegram & Gazette.
April 8, 1991... In a rare move to cut fiscal 1991 spending, the Worcester Telegram & Gazette will force reporters to take a five-day, unpaid furlough. Deputy publisher Bruce S. Bennett also announced the elimination of 5 percent Christmas bonuses for...

At a minimum. (Boston minimum wage increase)
April 8, 1991... At a minimum The federal minimum wage was increased 45 cents to $4.25, although labor rights activists are already charging that minimum-wage workers cannot support a family. The wage increase translates into a raise of about $18 a week, or...

Lexington merger finally called off. (Sterling Bank; Lexington Savings Bank)
April 8, 1991... Lexington merger finally called off Sterling Bank, formerly Waltham Savings Bank, walked away from a proposed $25.5 million merger with Lexington Savings Bank last week after a year of negotiations and intense opposition from community...

No shortage of metro parking. (parking spaces in the Greater Boston area)
April 8, 1991... No shortage of metro parking In its quest to site thousands of commuter parking spaces in the Greater Boston area, the Metropolitan Area Planning Council (MAPC) appears to have gotten more than it bargained for--in fact, over three times as...

BNE debt holders say Fish sacrificed bank. (Bank of New England Corp. chairman Lawrence K. Fish)
April 8, 1991... BNE debt holders say Fish sacrificed bank As Lawrence K. Fish makes his rounds on the chamber of commerce talk circuit, he's perceived as a hero who valiantly stepped in to save the terminally ill Bank of New England, but didn't have enough...

Stalling on sub-bid law will cost, MWRA warns. (Massachusetts Water Resources Authority acts on state legislature's refusal to act on a bill to repeal state's filed sub-bill law)
April 8, 1991... Stalling on sub-bid law will cost, MWRA warns The Massachusetts Water Resources Authority (MWRA) is warning that a projected $32.8 million in savings on some $328 million of construction contracts will likely be lost because of the...

N.E.'s bank CFO cop top salaries. (Bank of New England's chief financial officers leads in highest average salaries survey)
April 8, 1991... N.E.'s bank CFOs cop top salaries Although bank failures seem more the norm than the exception these days, New England leads the nation in highest average salaries for banking professionals. Romac & Associates, an job placement company,...

Daniel S. Gregory. (secretary of economic affairs)
April 8, 1991... Daniel S. Gregory The toughest turnaround Surveying the room packed with men in slategray, charcoal-gray and dove-gray suits assembled in the Meridien Hotel, Daniel S. Gregory, the state's secretary of economic affairs, sees friends...

For niche players only. (Focus: Starting Your Own Business)
April 8, 1991... For niche players only With each new day seemingly bringing more bad news about established businesses, it would probably come as no surprise to learn that these are not the best of times to try to start a new business. A look at the...

Boston Acoustics. (Dividends)
April 8, 1991... Boston Acoustics announced a third quarterly dividend payment of 7 cents per share to be made on April 22 to shareholders of record as of March 22.

PaineWebber Retail Property Investments. (Dividends)
April 8, 1991... The board of directors of PaineWebber Retail Property Investments declared dividends equating to an 8 percent annualized rate of return for the quarter ended Feb. 28 on the company's common stock, payable on April 15 to shareholders of record...

Haemonetics Corp. (Health/Science)
April 8, 1991... Haemonetics Corp., a health sciences company, recently filed a registration statement with the Securities and Exchange Commission relating to the proposed initial public offering of six million shares of its common stock. The company is...

Sony Corp. (Manufacturing/Retail)
April 8, 1991... Sony Corp. has placed an order worth $2 million from LTX Corp.'s mixed-signal test systems. They are to be used for Sony's mixed-signal product family. LTX is based in Westwood.

Technical Communications Corp. (Manufacturing/Retail)
April 8, 1991... Technical Communications Corp. has received a contract valued at nearly $7 million. Under the agreement, TCC will supply a Middle Eastern government with an advanced-network security system that provides bulk ciphering capability for...

The Associated Press. (Advertising/Communications)
April 8, 1991... An expanded joint marketing and development agreement made recently by The Associated Press and Desktop Data will enable Desktop customers to receive a new group of industry-specific AP news services. Dubbed "AP ALERT," the new service scans...

BBK Advertising/Public Relations. (Advertising/Communications)
April 8, 1991... BBK Advertising/Public Relations was recently tapped by Copley Pharmaceutical, makers of prescription and over-the-counter pharmaceuticals, to organize and develop a national public relations program to help launch the company's first...

Credit unions will apply for federal insurance. (Massachusetts' credit union trade groups)
April 15, 1991... CREDIT UNIONS WILL APPLY FOR FEDERAL INSURANCE State seeks to avoid Rhode Island's "bank holiday" Massachusetts' credit union trade groups are strongly urging their members to apply for federal insurance to avoid a crisis like the...

Biotech grabs a big slice of Genome project. (Collaborative Research Inc.; contracts on The Human Genome Project or chemical mapping of the sequence of human DNA) (company profile)
April 15, 1991... Biotech grabs a big slice of Genome pie After 30 years, Collaborative Research Inc. has chalked up its share of would-be biotech blockbusters: technology that pinpointed the gene that causes cystic fibrosis, the most comprehensive map of...

Risky funds triumph during first quarter. (mutual funds)
April 15, 1991... Risky funds triumph during first quarter At last, victory has come to patient mutual fund investors, who for the most part racked up handsome returns on their investments during the first three months of 1991. Following a quarter where...

For Boston, hammer time is almost here. (construction of Central Artery/Third Harbor Tunnel project benefits Boston's construction and demolition firms)
April 15, 1991... FOR BOSTON, HAMMER TIME IS ALMOST HERE If all goes as planned and the Federal Highway Administration (FHA) issues its "record of decision" by the end of this month, the light will finally change to green on the $5 billion Central...

Record unemployment.
April 15, 1991... Record unemployment The Bay State jobless rate jumped to 9.7 percent last month, topping the 1981-82 recession high of 9.6 percent. Across the nation, unemployment rose to 6.8 percent last month compared to 6.5 percent in February. The...

Federated Department Stores.
April 15, 1991... In its plan to shake off Chapter 11 status, Federated Department Stores may go public next year. An IPO would bring cash to Jordan Marsh, Bloomingdale's and the other divisions of Federated, which would also be able to drop its $7.2 billion of...

PictureTel.
April 15, 1991... Peabody-based PictureTel reported earnings of $658,000, or 6 cents a share, in the first quarter, compared to last year's first-quarter loss of $690,000, or 24 cents a share. The teleconferencing company's stock jumped $1.25 to close at $25 at...

CBS.
April 15, 1991... CBS reported a 73 percent drop in first-quarter profits, blaming low advertising during the recession and high costs from covering the Persian Gulf war. The network announced layoffs of 400 employees to save $100 million this year, while former...

On the biotech front. (licensing of in-vitro diagnostic products)
April 15, 1991... On the biotech front Bedford-based Tropix wrapped up a major licensing agreement with a Japanese diagnostics company, Fujirebio, granting it exclusive worldwide rights to Tropix' in-vitro diagnostic products. Tropix specializes in...

Biogen.
April 15, 1991... Biogen reported record first-quarter profits of more than $2.8 million, compared to $1.7 million in profits during the first quarter a year ago. The Cambridge company's revenues increased to about $18 million, compared to $14.1 million the same...

Genetics Institute.
April 15, 1991... Genetics Institute posted an expected first-quarter loss of $23.5 million, or $1.71 a share, compared to a net loss of $7 million, or 57 cents a share, a year ago. The loss was due in part to a $11 million charge taken when one of GI's major...

Reebok International Ltd.
April 15, 1991... Reebok International Ltd. announced it spent $396,147,120 to buy back a large chunk of outstanding stock from its largest institutional shareholder, Pentland Group PLC. In that February transaction, Reebok reduced its outstanding stock by 21.3...

Winning bond biz. (Morgan Stanley turn over discount profits to Massachusetts Bay Transporation Authority on the sale of the latter's notes)
April 15, 1991... Winning bond biz New York brokerage firm Morgan Stanley is handing over to the Massachusetts Bay Transportation Authority a $225,000 profit it took from reselling MBTA notes to investors at a discount interest rate, according to the Boston...

Digital Equipment Corp.
April 15, 1991... A consortium of 21 computer hardware and software companies, including Digital Equipment Corp., has formed to set standards for high-end computers by controlling the development of certain technologies. Such standards are advocated as part of...

Hasbro Inc.
April 15, 1991... Hasbro Inc. has extended the deadline for acquiring the bonds of smaller toy manufacturer Tonka Corp. after failing to acquire the company. A total of $290 million must be tendered to make the deal, but only about $55.1 million in bonds have...

Raytheon.
April 15, 1991... Raytheon posted a disappointing rise in earnings of just 2 percent for the first quarter, in spite of the success of its Patriot missile system in the Gulf war. The defense contractor reported net income of $133.7 million, or $2.04 a share,...

Municipalities push for cable TV franchise fee. (Massachusetts)
April 15, 1991... Municipalities push for cable TV franchise fee Squeezed by declining tax revenues and facing large cuts in local aid, municipalities are pushing for legislation that would make it easier for local governments to assess a "franchise fee" on...

Mail-order drugs receive state OK. (Division of Insurance gives Blue Cross and Blue Shield approval to offer mail-order prescription services)
April 15, 1991... The Blues Mail-order drugs receive state OK Much to the chagrin of independent pharmacists, the state's Division of Insurance has given the go-ahead to Blue Cross and Blue Shield of Massachusetts to offer mail-order prescription...

Insurance unit victim of default. (Monarch Life Insurance defaults due to bad real estate loans written-off)
April 15, 1991... Monarch Capital Insurance unit victim of default Failing to resolve a default in its loan covenants, Monarch Capital, the Springfield insurance holding company, announced recently that it would no longer be able to maintain control of...

Monitoring polluters is a matter of degree. (Massachusetts' monitoring of manufacturing companies' pollution)
April 15, 1991... Monitoring polluters is a matter of degree Tiny Printer's Ink Co. struck a blow for the environment two months ago, when it began diluting its cleaning solvents with water and using some chemical-free soybean inks. No one is keeping...

Trade gap narrows, at least for Massport. (volume of cargo handled by Massachusetts Port Authority)
April 15, 1991... Trade gap narrows, at least for Massport Fewer cars came in, more consumer and high-tech items went out and total cargo volume as a whole picked up by nearly 9 percent in 1990 at the Port of Boston, according to the Massachusetts Port...

Bank of Ireland revises its plans. (proposed branch in Boston is replaced by a loan production office instead)
April 15, 1991... Bank of Ireland revises its plans Bank of Ireland has found that the pot of gold is not in Massachusetts, yet. The $25-billion-asset bank has scratched its plans to open a retail banking office in downtown Boston that would have taken...

Collaborative to sell biomedical division. (Collaborative Research's sale of Biomedical Products Division)
April 15, 1991... Collaborative to sell biomedical division Collaborative Research has announced plans to sell its Biomedical Products Division for $9 million to Becton Dickinson, a New Jersey-based medical products firm. For the Bedford biotech company,...

Reforming the savings bank fund. (Mutual Savings Central Fund of Massachusetts)
April 15, 1991... Reforming the savings bank fund The private deposit insurance fund that protects Massachusetts savings bank deposits exceeding $100,000 has proposed restructuring the fund to strengthen its financial viability and give its members the...

Maguire plus Weeks: going for the big time. (John Maguire and Jack Weeks' market research firm Maguire Associates enters pollster business)
April 15, 1991... Maguire plus Weeks: Going for the big time There may be fewer Democratic presidential candidates this election cycle but there will be at least one more local company fighting for a chunk of the estimated $3 million that Democratic...

James S. Ansara. (President, Shawmut Design & Construction; Personnel File)
April 15, 1991... James S. Ansara Quick study makes good Jim Ansara should provide hope to any job seeker who has ever tried the "I'm a fast learner" strategy. When the college dropout first entered the construction industry in the late 1970s as a...

R&D space, once gold, has turned to dross. (research and development space leasing)
April 15, 1991... R&D space, once gold, has turned to dross In the 1980s, when high technology was sweeping investors and politicians up in a wave of "miracle" mania, research and development space seemed like a no-lose situation. Erect an R&D building and...

Interneuron Pharmaceuticals. (Proxy Report Excerpts) (company profile)
April 15, 1991... Interneuron Pharmaceuticals THE BUSINESS IPI Headquarters: Lexington Stock Symbol: IPIC Market: NASDAQ Annual Revenues: $533,694 Net Income: ($2,366,557) Employees: 17...

Bentley Beaver. (Services/Education)
April 15, 1991... Bentley Beaver was appointed chief operating officer at executive recruitment firm J. Robert Scott based in Boston. A veteran of the executive recruitment profession, Beaver had been senior vice president at Fenwick Partners.

Inhospitable quarter for hotels. (Boston hotel occupancy rates fall in the first quarter 1991)
April 22, 1991... Inhospitable quarter for hotels Boston hotels did not find the first three months of this year accommodating. The recession and the Persian Gulf war lowered room and occupancy rates so much it seems almost impossible to compensate for them...

Lobstermen to Massport: cut bait on Eastie terminal. (Boston Harbor lobstermen; Massachusetts Port Authority)
April 22, 1991... LOBSTERMEN TO MASSPORT: CUT BAIT ON EASTIE TERMINAL Boston Harbor lobsterman Jack Urbanus has survived many a nasty storm during his 23 years hauling traps. In the blizzard of '78, for example, the Quincy resident rode out the tempest to keep...

FDA admits cargo crackdown. (U.S. Food and Drug Administration's inspections at Port of Boston)
April 22, 1991... FDA ADMITS CARGO CRACKDOWN Local shippers and port officials claim that unusually tough and frequent inspections by the U.S. Food and Drug Administration of cargo coming into the Port of Boston have driven importers to land their goods...

Chocolatier scoops to conquer. (Merckens Chocolate)(includes related article) (company profile)
April 22, 1991... CHOCOLATIER SCOOPS TO CONQUER Chocolatier Pat Waggett was dipping glazed apricots and strawberries into a gooey pool of dark chocolate last Monday morning at The Chocolate Dipper in Faneuil Hall marketplace. While spectators gawked,...

Bank scramble. (acquisition of Bank of New England)
April 22, 1991... Bank scramble The competition for Bank of New England continued as Fleet/Norstar Financial Group of Providence promised to set aside funds for subsidized housing - in accordance with a Massachusetts law - if it is selected by the Federal...

Cabletron Systems.
April 22, 1991... Cabletron Systems Ashland-based Cabletron Systems reported a 72 percent jump in sales to $180.5 million, compared to sales of $104.7 million last year. The network management company posted net earnings of $35.9 million, or $1.35 a share,...

Advanced Magnetics.
April 22, 1991... Advanced Magnetics Cambridge-based Advanced Magnetics announced second-quarter revenues of $5.9 million, compared with $2.4 million in revenues during 1990's second quarter. The medical-device company's earnings also grew to $2.1 million, or...

Hasbro.
April 22, 1991... Hasbro A federal judge has ordered Rhode Island-based Hasbro's competitor, Buddy L, to stop production on its "Talk to Me Pony" and "Magic Unicorn" toys pending a copyright infringement hearing. Hasbro claims the toys are unfairly cutting...

Kenneth Estridge.
April 22, 1991... Kenneth Estridge Kenneth Estridge, owner and president of the defunct Joy of Movement fitness clubs, was ordered by a state judge not to sell or remove from the state any of his personal assets until a trial is held. Estridge allegedly owes...

Less fast garbage. (McDonald's introduces McLean Deluxe burger in Boston)
April 22, 1991... Less fast garbage McDonald's introduced to Boston its McLean Deluxe burger, a low-fat mixture of seaweed extract, beef and water. McDonald's also announced plans to cut down by 80 percent the garbage churned out by its 8,500 fast-food...

Digital Equipment Inc.
April 22, 1991... Digital Equipment Corp. Digital Equipment Corp. bought a minority interest in Sunnyvale, Calif.-based MasPar Computer, a supercomputer maker that uses the "parallel computing" approach, in which many processors are set to work on the same...

Cushman & Wakefield.
April 22, 1991... Cushman & Wakefield Office vacancies in downtown Boston hit a record high of 17.5 percent during the first quarter of 1991, according to Cushman & Wakefield, a real estate brokerage firm. The amount of unleased office space increased more...

Patriot challenged. (Raytheon Co.'s Patriot missile)
April 22, 1991... Patriot challenged The U.S. House's Armed Services Committee heard testimony last week to the effect that Raytheon's Patriot missile was overrated during the Gulf war and did not shoot down as many Scud missiles as were claimed. Israel has...

Clean Harbors.
April 22, 1991... Clean Harbors Quincy-based Clean Harbors reported a fourth-quarter profit of $1.04 million, compared to a loss of $2.7 million during the fourth quarter last year - its first quarterly gain in three years. Revenues also rose 20 percent to...

American Telephone & Telegraph.
April 22, 1991... American Telephone & Telegraph American Telephone & Telegraph fell short of removing NCR's board, but gained four seats in the course of its unfriendly takeover bid. NCR blamed special charges from its fight against AT&T for its...

Marshalls.
April 22, 1991... Marshalls The parent company of Andover-based Marshalls, the off-price retail chain, fired chairman Francis H. Arnone. No reason was given for the dismissal, but officials of owner Melville Corp. said the parting was "amicable." Under the...

Boston Safe Deposit & Trust.
April 22, 1991... Boston Safe Deposit & Trust Boston Safe Deposit & Trust is negotiating to take on the ownership of Donald Trump's lavish Princess yacht. The bank will then try to sell the 282-foot yacht, which went on the market last year for Trump's asking...

Northwest Airlines.
April 22, 1991... Northwest Airlines Northwest Airlines may purchase the ailing Trump Shuttle, hinted Donald Trump's chief financial officer. . . After several near misses with the 3,000-point mark, the Dow Jones industrial average closed at 3,004.46 last...

Vappi goes under, subcontractors suffer. (Vappi & Co.) (company profile)
April 22, 1991... Vappi goes under, subcontractors suffer Hit with the dark side of the trickle-down theory, a group of Greater Boston subcontractors filed suit in Suffolk Superior Court last week against Vappi & Co. for more than $2.7 million they say is owed...

Drug is approved. (Food and Drug Administration approves Genzyme's Ceredase)
April 22, 1991... Drug is approved The U.S. Food and Drug Association (FDA) approved Ceredase, Genzyme's first-ever drug product, for the treatment of Gaucher's disease (see BBJ, Jan. 21). The Cambridge-based biotech company expects that the manufacture...

Legal setback. (U.S. Supreme Court ruling on cable franchise tax)
April 22, 1991... Legal setback A ruling by the U.S. Supreme Court will strip the cable industry of one its arguments against allowing state and local governments impose a cable franchise fee. Municipal officials in Massachusetts are pushing lawmakers to...

Want to workout? CSA has a machine for you. (home exercise equipment maker) (company profile)
April 22, 1991... Want to workout? CSA has a machine for you Fred Snyderman wants to be the Henry Ford of the home exercise market. The president and chief executive officer of CSA wants to put stationary bikes, stair climbing machines and rowing machines...

In trendy Back Bay, space now plentiful. (Boston's venerable Back Bay district)
April 22, 1991... In trendy Back Bay, space now plentiful Like almost every other nook and cranny in the commonwealth, Boston's venerable Back Bay district was considered a sure bet for expanding the office space market during the 1980s. Particularly in the...

Determined self-promotion catapults ad shop. (Duval & Partners) (company profile)
April 22, 1991... Determined self-promotion catapults ad shop Boston-based Duval & Partners will announce this week that it has landed a $500,000 advertising contract with a subsidiary of General Electric. The contract comes on the heels of a record year at...

Defying pier pressure, Serra tries an end run. (Emmanuel Serra's plans to alter proposed waterfront park and lobster terminal)
April 22, 1991... Defying pier pressure, Serra tries an end run In yet another twist to a decades-long saga, a state representative has rankled constituents and Boston Harbor advocacy groups over his last-minute plans to alter a proposed waterfront park and...

Pen-based computers span man/machine gap. (Focus: Office Technology)
April 22, 1991... Pen-based computers span man/machine gap A local research firm predicts the sale of pen-based computers in the U.S. will skyrocket to over 900,000 annually by 1995, and a number of area companies are leaping into the fledgling market or...

A multimedia pitch via interactive disk. (Integrated Design & Marketing Solutions)(Focus: Office Technology) (company profile)
April 22, 1991... A multimedia pitch via interactive disk Blending together some advertising standards - the TV commercial, the print ad and the radio spot - one Boston design studio has brought commercials to the personal computer screen. Integrated...