News Cut: June 17, 2008 Archive

Cash seizures by cops examined

Posted at 11:36 AM on June 17, 2008 by Bob Collins (3 Comments)

If you haven't been listening to Morning Edition or All Things Considered this week, you're missing an outstanding series of reports about the ability of police to seize assets used in a crime.

As with many of these sorts of laws, the problem isn't with people who have been proven guilty of a crime, it's in cases where people haven't, but lost their assets anyway.

Take the case of Javier Gonzalez, for example, who owned a used car lot, had $10,000 in cash with him, and looked nervous to the police officer who stopped him.

The deputies handed Gonzalez a waiver: If he signed over the money and did not claim the currency, he could walk away free. If he did not sign the waiver, he would be arrested for money-laundering. Gonzalez signed the waiver and gave up rights to his money.

"So at that time we got in our car and we left, still trying to figure out what just happened. We got officers that took our cash. We got officers that told us we can't get an attorney. So I'm thinking, are these guys officers of law? Did I just get robbed of my money?"

Good question.

In Texas, NPR reported, with its smuggling corridors to Mexico, public safety agencies seized more than $125 million last year.

What happens to some of the assets? They're sold if it's not cash. In Minnesota, for example, you can buy some commercial property in Hayfield, a single-family home in Hinckley, 10 acres of land in Taylors Falls, and a house in Lauderdale.

Tonight on All Things Considered, the third installment in the four-part series features Eddie Ingram, who has made quite a career out of spotting vehicles loaded with drug cash. (Update 5:31 p.m. Here's the story.)

A story earlier this year reported that the Drug Enforcement Administration is refusing to work with, Ingram, an Alabama deputy sheriff, because he's traveled to over 25 states to help "train" police officers. A DEA official said some law enforcement agencies and officers use the "training" as a front to work in other areas of the country "on drug cases on a contract or contingency basis in exchange for a share of any assets that officers seize during arrests."

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What can be read into the reading test?

Posted at 12:21 PM on June 17, 2008 by Bob Collins (1 Comments)

The Minnesota Department of Education is out with another standardized testing press release today that claims success, in this case, on 9th grade reading tests.

Nearly 90 Percent of Minnesota 9th -Graders Pass Graduation Writing Test, headlines the release. Many news organizations picked up on the theme. And it's true, of course, most students did well. But not all and in many schools, not even the majority.

Springfield Public Schools, is at one of the spectrum. All of the students passed the test. On the other side, however, is Arlington Senior High in St. Paul, where only 49% of the 9th graders passed the test.

By gender, 93% of female students passed the test; 85.9% of male students passed.

Here's the downloadable spreadsheet from the Department of Education if you'd like to play with the data.

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The faces of same-sex marriage

Posted at 2:27 PM on June 17, 2008 by Bob Collins (8 Comments)

Why has this picture generated so much interest around the country today?

It's a picture of Del Martin (left) and Phyllis Lyon (right), who exchanged rings in San Francisco yesterday. They were the first couple to be married in San Francisco as same-sex marriages become legal in California.

They are, their Wikipedia page suggests, a different face of same-sex marriage -- the face of a 50-year commitment:

Martin and Lyon met in Seattle in 1950 when they began working for the same magazine. They became lovers in 1952 and entered into a formal partnership in 1953 when they moved to San Francisco together although unable to legally marry.[2][5][3] Many years later, Lyon and Martin recalled how they learned to live together in 1953. "We really only had problems our first year together. Del would leave her shoes in the middle of the room, and I'd throw them out the window," said Lyon, to which Martin responded, "You'd have an argument with me and try to storm out the door. I had to teach you to fight back."[6]

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It's just stuff.

Posted at 4:02 PM on June 17, 2008 by Bob Collins (0 Comments)

Or is it?

This is David Eberle of Cedar Rapids, sorting through family photographs after returning to his home today (Photo by David Greedy/Getty Images). This is the second time Eberle has lost his home in a flood and these photographs, apparently, were the only thing he was able to salvage from the first flood.

Meanwhile, on this side of the border, officials in Albert Lea are trying to come up with the money to repair a road that was washed away in the flooding. It was just a culvert that washed out, but it led to the one death in the flooding. The Albert Lea Tribune has some enlightening video of the roadway.

And in Austin, Minn., officials say 75 more homes would have been damaged -- or worse -- had it not been for flood "mitigation" efforts since the flooding there in 2004.

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It's always something

Posted at 5:05 PM on June 17, 2008 by Bob Collins (0 Comments)

In South Dakota, the last five years have been a living hell. A five-year drought hurt farmers, fishing, resorters, and some communities who worried their drinking water would dry up.

The drought is now over.

In the movies, the people of South Dakota -- some of them naked -- would be running into the streets, dancing in the falling rain, hugging neighbors they hadn't seen in years since they no longer went outside to mow lawns that were now dustbowls.

But in real life, one plague merely replaces the other.

The mosquitoes are coming.

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Steenland's memo

Posted at 9:27 PM on June 17, 2008 by Bob Collins (3 Comments)
Filed under: Northwest Airlines

Northwest is, as they say, cutting capacity. That's fewer seats, fewer flights, and maybe a shortage. How badly do you want to fly? How much are you willing to pay?

Interesting to note that NWA boss Doug Steenland is still promising to keep hubs open. And it sounds like Northwest is moving closer to charging for the first checked bag.

Here's Steenland's memo to his employees.

Memo to All Employees from
Doug Steenland
June 17, 2008

I wanted you to hear from me first the necessary actions we are taking in response to the continued fuel challenge. Later tonight, at the Merrill Lynch Global Transportation Conference, I will also give industry analysts an update on how Northwest Airlines is responding to the industry's oil shock -- including additional actions we must take to further reduce capacity.

I will also update them on our planned merger with Delta and why now - with the high cost of fuel - this transaction makes more sense than ever.

To put this into perspective, year-over-year for the first quarter, we have had a $445 million increase in our fuel expenses, necessitating the need for an immediate response. On the good news side, for the remainder of 2008, we have hedged 54% of our jet fuel requirements. While these hedges are important, further actions are required to stabilize our airline.

4th Quarter '08 Capacity Reductions

In response to the extraordinary fuel cost increases, Northwest will reduce its mainline capacity (domestic and international) in the fourth quarter of 2008 by 8.5% - 9.5% versus the fourth quarter of 2007. This includes the reductions previously announced in April.

I am pleased that no domestic stations will be closed as a result of the capacity reductions. Instead, we will pare unprofitable flying while maintaining the scope and presence of our network.

We have not yet finalized the specific employee impacts related to the reduced flying, however, for the resulting headcount reductions, we will first look to voluntary separation programs such as early-outs.

Q4 '08 Capacity (ASMs) % change vs. Q4 '07
System mainline capacity (domestic and international) (8.5%) - (9.5%)
Domestic consolidated (includes regionals) (7%) - (8%)
System consolidated (includes regionals and international) (3%) - (4%)

Fleet reductions

As a result of the reduced capacity, Northwest is removing a combination of 14 B757s and Airbus narrowbody aircraft from the fleet.

In addition, the DC-9 fleet will be reduced from 94 aircraft at the start of 2008 to 61 aircraft (20 DC9-30s and 41 DC9-40s/50s) by year-end.

Northwest also accelerated the retirement of three freighter aircraft from its cargo operation.

Revenue Enhancements

We are also continuing to take actions to improve our revenues with added fuel surcharges, fare and fee increases. In May, we began collecting fees for two or more checked bags, and are exploring whether we match our competitors by charging for the first checked bag.

Cost Containment / Fiscal Discipline

As part of our disciplined fiscal approach, we are closely managing our capital expenditures, having reduced planned non-aircraft cap-ex spending in 2008 from $255 million planned to $150 million as our new target.

Our aircraft leases were renegotiated during our restructuring, with pre-committed financing on favorable terms for all aircraft deliveries.

Our finance team also successfully negotiated a favorable amendment to our credit terms.

Finally, due to our strict fiscal discipline and best-in-class liquidity, we recently negotiated more favorable terms to our credit card processing agreements.

The Case for the Merger is Stronger than Ever

When we first contemplated a merger with Delta, as oil was approaching $100 a barrel, we knew this was the right deal with the right partner. Now, with oil above $130 a barrel, the case for the merger is stronger than ever with its resulting synergies.

· The merger-related synergies will improve the financial ability of Northwest and Delta to meet the challenge presented by the fuel crisis and better position the combined carrier for long-term strength and profitability.

· This is a transaction that is facilitated by best-in-class cost structures; one that will create an industry-leading balance sheet in any operating environment.

· The transaction will create a worldwide, geographically balanced network - which will enhance customer preference and make the combined carrier more competitive.

· This is a merger of choice by the two strongest network carriers. With our colleagues at Delta, our transition teams have already begun planning for a smooth and rapid integration in order to promptly capture and potentially exceed the synergies projected when we announced the deal.

Looking back on the announcement of our merger with Delta, we are more confident than ever that this was the right deal at the right time. Moving forward, the combined carrier will be in the best position to compete globally -- validating that this was the right transaction for our employees, customers, shareholders and the communities we serve.

As we continue the integration planning, we will keep you updated. In the meantime, thank you for continuing to run a great airline and helping to position us for a brighter future in the combined carrier.

Yours Truly,

Doug Steenland
President & CEO

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