'NATION/WORLD

The Michigan Daily - Thursday, September 9, 1999 - 25A "'



Experts testify about dangers in farm consolidation

CEDAR RAPIDS, Iowa (AP) - Sweeping
changes in agriculture in recent years - with
rising numbers of mergers creating giant
agribusiness conglomerates - pose the
greatest threat to farmersand consumers in
this century, top farm experts warned.
Iowa State University economist Neil Hart
led not only do high-profile mergers cut into
competition in the farm economy, they place
keys to evolving technologies in the hands of
fewer and fewer players.
"The outcome would be a smaller share of
the revenue from production going to the pro-
ducer," Hart said Tuesday.
Hari, contacted by telephone, was among
those testifying at a special hearing called by
Sen. Tom Harkin (D-lowa) and Sen. Charles
Grassley (R-lowa) to discuss a trend toward
Sroasing concentration in many sectors of
- farm economy.
Farmers complain of being crushed by
market-manipulating corporations. They
argue that U.S. Agriculture and Justice

Senators call special hearing to discuss
industry trend toward giant agribusinesi
Department officials give lip service to pre- overreact, we are going to do more harm than Harkin said he likely would favor tought
venting monopolies but continue to approve good." ing federal antitrust laws.
mergers. Mike Dunn, U.S. Department of "We've got to make some changes int
"The Justice Department has been blowing Agriculture undersecretary for marketing legislation," he said.
a lot of smoke the last six or seven years," and regulatory programs, said his agency is The hearing comes at a time when prodi
said farmer Larry Ginther of Marshall pushing Congress for laws forcing meat ers face historic low prices for commodit
County in central Iowa. packers to disclose prices they are paying for and emotions are running high. The econo
The Justice Department's top antitrust animals. ic squeeze threatens to force thousands
attorney, Joel Klein, said his agency is trying "There has to be real teeth in the law," farmers from their land.
to be responsive. Dunn said. Hundreds of activists jammed a commu
"Your issues are front and center at the Dunn argued that the USDA pushes hard to ty college gymnasium for the hearing, che
Department of Justice," said Klein. who enforce the Packers and Stockyards Act, ing and leaping to their feet as one af
spearheaded the government's antitrust case which oversees the meat industry but lacks the another argued that big business is taki
against Microsoft. authority to regulate prices strictly. advantage of family farmers.
"You have to analyze each merger to see "We do not have blanket authority to There was a bipartisan tinge to tie cotif
whether it is helpful or harmful. If we start to declare something unfair," Dunn said. 'nce. Grassley, a conservative Republica

said all sides wo
ing agribusiness(
"Obviously th
ers," Grassley s'
- that concentr,
S effect on farmert
Sen. Paul Well
en- further, saying
mergers and con
the nesses while la
antitrust laws.
uc- "I'm calling f
ies and acquisitions,
m- "On-the preser
of a whole generati
added.
ni- Drawing muc
er- cial senate hca
ter merger announ
ng Smithfield Food
major meat pr
er- Family Farms,;
an, many operations

>rry about rapidly consolidat-
es.s
is is a difficult time for farm-
aid. "We agree on one thing
-tion is having a detrimental
stone (D-Minn.) went a step'
there should be an end to
solidations among agribusi-
wmakers study revisions to
or a moratorium on mergers
"Wellstone said.
nt course, we're going to lose
on of producers," Wcllstone
h attention at Tuesday's spe-
ring of testimonies was a
ced last week in which
s Inc., of Smithfield, Va., a
ocessor, acquired Murphy,
a giant hog producer with
in lowa.

N.Y. bill prohibits 'happy hour' drinks

By JUstin Silverman
D ;y Orange (Syracuse University)
' YRACUSE, N.Y (U-WIRE) - The New York
State Legislature is attempting to prevent binge drink-
ing.
State senators signed a bill into law this summer
that prohibits bars from offering "happy hour" drink-
ing specials, such as free drinks and unlimited drinks'
for a fixed price. The law takes effect in Novembers
"We wanted people to drink more responsibly"
said Bob Herz, an assistant to state senator and hil
author Roy Goodman (R-Manhattan). "But we didn't
want to get into price fixing."
*urrently a "happy hour" special may offer cus-
tomers a free beer with every beer they purchase, Herz
said. With the law, this special becomes illegal.
Customers may receive drinks at half-price, but
may not receive drinks for free, he added. -
Bars are also prohibited from selling drinks at dis-
counts as a means to working around the intent of the
law, Herz said. Specials such as 10-cent drafts would
be prohibited, nor could bars advertise these specials,
he added. The law, however, makes no mention of a
specific minimum drink price.
Merger
could

Food specials that include alcohol and cost more
than $100 as well as private parties are excluded from
the law.
The 'state plans to enforce the law by investigating
complaints rather than sending "secret police" to bars,
Herz said.
The drinking restrictions are part of a larger alcohol
reform bill the state legislature began writing three
years ago, he said. The bill's creation is partially in
response to complaints from New York residents, he
added.
Some New York City bars would operate "pub
crawls" that would allow a person an unlimited
number of drinks at selected locations for $25,
Herz said.
"When a person has one or two drinks, they are
OK," he said. "When they have three drinks, they are
a good guy. After the fourth drink, they are an obnox-
ious son of a bitch. And after five drinks they are
throwing it up in the roses."
"This is what tended to happen, Herz added. "So
we wanted to control it without infringing on the right
to drink."
The law will also ease the pressure on bars to mon-

itor their drinkers, he said.
"If I have eight 10-cent Jell-O shots and jump in my
car and wrap it around a tree," Herz said, "it is the bar's
responsibility."
Christopher Raslan of Maggie's Tavem in Syracuse
said he encourages responsible drinking. Raslan, the
bar's manager, welcomes the law and looks forward to
operating without free drink specials, he said.
The restrictions will ease competition between bars
and create a less stressful atmosphere for the employ-
ees, he said.
"I don't like doing it, but you have to do it to eco-
nomically survive," Raslan said. "Also, I don't want
employees to monitor every movement someone
makes. Now you can monitor regularly without all the
stress of an all-vou-can-drink."
Maggie's currently sponsors Ladies' Drink Free
nights. The event will soon be prohibited.
Lucy's Retired Surfers Bar is expecting little change
from the law, co-owner Ben Cook said.
The only special the bar offers is Ladies Night on
Saturdays, Cook said.
Women are able to receive free wine and draft beer
until Il p.m., Cook said.


strengen
CBS news
"he Washingiton Post
At first glance, Viacom Incs merger
with CBS Corp. could provide the net-
ork's struggling news division with a
nuch-needed jolt of entertainment
nergy.
*s good for CBS News, which is
lready part of a strong media compa-
ty, to be part of an even stronger media
ompany," the news division's presi-
ent, Andrew Heyward, said Tuesday.
'This-will help us internationally and
live us the opportunity to expand into
ew areas."
While no one expects the "CBS
vening News" to adopt a rock-music
heme of the sort favored by Viacom's
4TWthe company's strength in cable,
also includes such outlets as
4c elodeon and VH1, could be a
om to a network with no cable news
resence.
But critics were quick to question
hether Viacom cares about news,
vhich traditionally has not been a
najor moneymaker.
"When (Viacom Chair) Sumner
edstone and (CBS President) Mel
:armazin sat down to discuss this deal,,
Iu think a major point of discus-
on was "How do we improve the
uality of CBS News?' " asked Ken
uletta of the New Yorker, who fre-
uently writes about media companies.
These are not men who consume the
roduct they produce. They are busi-
essmen, business engineers.?
Marvin Kalb, a former CBS
ewsperson who is now executive
irector of Harvard University's
,ntein media center, had a mixed
Son."My first instinct on this is
tat it saves CBS News," Kalb said. But
news shouldn't have to make money,"
e said. "If CBS is now put in the posi-
on .where there are increased pres-
ires to provide higher profits, then
BS News is lost, even if it has been
ived."
CBS News has survived several
>unds of cost cutting undet previous
ors, particularly Laurence Tisch in
r 980s, and the network's sale to
/estinghouse Corp. in 1995. CBS's
orning news, evening news and
anday talk show are ali in third place,
at executives are pleased with the suc-
ssful debut of "60 Minutes 11" and
an to launch the renamed "Early
ow" with Bryant Gumbel as anchor.
Several CBS News staffers admitted
ev are uncertain of what Viacom's
timate impact will be. But Heyward
solace in the fact that, under the
: Karmazin and CBS President
eslie Moonves will remain in place
id oversee the news division.
"CBS News is in much better shape
an'it was two years ago," Heyward
id."While I'd like totake my share of
edit for that, you certainly have to
ok to top management. They've been
ithing but respectful of the indepen-
nee of CBS News.
t0

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