THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, March 8, 1996 TAG: 9603080554
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
LENGTH: Medium: 66 lines
Overnite likely to lay off up to 1,000 employees
Overnite Transportation Co. is laying off as many as 1,000 employees nationwide because of declining traffic and depressed freight rates, company officials said. Richmond-based Overnite, which has 14,000 employees at more than 170 terminals nationwide, will lay off at least 600 employees, said company spokeswoman Molly Remes. The layoffs began Monday, and are being spread among the ranks, from high-level managers to office workers to drivers. They include salaried and hourly employees. Overnite, once the most profitable less-than-truckload company in the country, has been hard hit. The company lost $10 million in 1995, compared with profits of $64 million the year before. The company also is involved in a battle with the Teamsters union, which is trying to unionize Overnite drivers nationwide. (AP)
Conrail to run cargo from Philadelphia port
Starting April 1, Conrail will run a new cargo service out of Philadelphia's port that is expected to create about 250 jobs and $1 million in annual local and state income. The long-awaited service is expected to make the Delaware River port more appealing to companies in Asia, South America and Europe that transport automobiles, fruit and other goods. The service double-stacks containers atop rail cars, making it possible for Conrail to double the amount of goods it transports on a single trip. Conrail also said it will begin offering a $200 incentive refund to perishables receivers for every boxcar load of produce shipped to the Northeast, effective March 1, 1996. The incentive program, which runs through April 30, 1996, to Conrail-served markets in New York, New Jersey, Connecticut, Massachusetts, Pennsylvania, Ohio, Delaware and Maryland. (Knight-Ridder/Tribune and staff)
Former Gannett official charged with fraud
A former executive vice president of Gannett Co. was charged with insider trading in shares of Rochester Community Savings Bank, on whose board he served. Thomas Farrell, the former president of Gannett New Media Group, will plead guilty to one count of securities fraud for tipping off three people that Rochester Community was about to receive a takeover bid in 1993, said his attorney, Edward Shaw. The four people split trading profits of more than $319,000, federal officials charged. The charges didn't involve Farrell's employer at the time, Arlington, Virginia-based Gannett. Gannett owns 92 newspapers, including USA Today, and television and radio stations. He left the company a year ago. (Bloomberg Business News)
Magellan Fund's rating cut by Insight Group
A research group that tracks Fidelity Investments cut its investment rating on the company's flagship fund, the $56.5 billion Magellan Fund. Insight Group, of Wellesley, Mass., reduced its rating on Magellan, the nation's biggest mutual fund, to ``hold'' from ``OK to buy.'' John Bonnanzio, group editor of Insight Group, which publishes an independent newsletter called Fidelity Insight, said he doesn't expect millions of dollars in redemptions because of the decision to downgrade Magellan's rating. That's because about 90 percent of the money that flows each month into Magellan comes from retirement accounts, which are invested for the long term, he said. Magellan Fund was downgraded amid concerns that in the current market environment they were more comfortable with bottom up stock pickers then sector betters. (Bloomberg Business News) by CNB