Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, October 28, 1994 TAG: 9410280077
SECTION: BUSINESS PAGE: A11 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
WASHINGTON - The Federal Trade Commission is looking into whether mail-order companies mislead consumers by implying they do not have to pay sales tax on merchandise shipped across state lines.
In a letter to FTC Chairwoman Janet Steiger, Sen. Dale Bumpers, D-Ark., said that despite a Supreme Court ruling that direct marketers do not have to collect sales taxes from out-of-state customers, consumers must still pay a ``use tax'' to their state or local governments.
Forty-six states, including Virginia, require a use tax, which is similar to a sales tax, but few people are aware of it and few states enforce the laws.
Bumpers, chairman of the Senate Committee on Small Business, urged the commission to launch an immediate investigation and require companies to inform consumers about their responsibilities regarding the use tax.
-Associated Press
Mortgage rates up to '92 levels
The cost of borrowing to buy a house has reached its highest level in 21/2 years, the result of rising interest rates, a new nationwide survey found.
Thirty-year, fixed mortgage rates were 9.03 percent this week, the highest since it was the same in March 1992, the Federal Home Loan Mortgage Corp. said Thursday. Last week the rate was 8.85 percent; a year ago it hit a 25-year low of 6.74 percent.
Despite the increase, housing experts said they weren't expecting a profound slump. But some warned that home buying could suffer if rates hit double-digit territory.
A home buyer with a $100,000, 30-year mortgage at 9 percent would pay a bank $734 a month, excluding taxes and insurance. That's $71 more than a similar loan carrying an 8 percent rate and $140 more than a 7 percent loan.
An estimated 3.965 million homes are expected to be sold in 1994, up from 3.802 million last year, said John Tuccillo, chief economist for the National Association of Realtors. He predicted a slight dip in sales next year, to 3.756 million.
-Associated Press
Couple sues Krisch in motel robbery
BRISTOL, Va. - A Maryland couple has sued Roanoke-based Krisch Hotels as the former owner of a Bristol, Va., Holiday Inn and Holiday Inn Inc. over a Thanksgiving 1992 assault.
Arthur and Virginia Anagnost of Phoenix, Md., each filed $5 million lawsuits against Krisch, which owned the hotel at the time of the assault, and the Atlanta-based Holiday Inn Inc.
The husband and wife, both in their 70s, were beaten and robbed in their room during their stay. According to the lawsuit, Rodrick Bernard Chatman pleaded guilty in January 1993 to the attack
The lawsuits, filed Oct. 6 in Bristol Circuit Court, charge that Holiday Inn Inc. was negligent in not providing appropriate security and protection. And Krisch Hotels should have maintained the hotel in a reasonable safe condition, the lawsuits say.
The lawsuits say the assailant forced his way into the couple's hotel room, threatened to kill Virginia Anagnost and struck both on the head with a bottle. He fled with the woman's wallet and the keys to the couple's rental car.
A spokeswoman for Holiday Inn Inc. said the company had not yet seen the lawsuit. A Krisch Hotels official said Thursday he was aware of the suit but had no comment.
-Associated Press
Burlington boosts bid for Santa Fe railroad
Burlington Northern Inc. increased the price it is willing to pay for Santa Fe Pacific Corp. on Thursday, raising the ante in its high-stakes battle with Union Pacific Corp. to merge with Santa Fe.
Santa Fe stockholders are scheduled to vote on the BN offer three weeks from today.
Burlington Northern raised its offer to $3.2 billion. The Fort Worth-based railroad now will pay 0.34 shares of its stock for each share of Santa Fe, up 26 percent from the original 0.27 share exchange ratio. BN's original June 30 offer was worth $2.7 billion.
UP, which injected itself into the BN-Santa Fe merger picture on Oct. 5, would pay $3.4 billion by exchanging 0.344 shares of Union Pacific stock for each Santa Fe share.
Santa Fe stock, which sold for $12.625 a share on Oct. 5, rose after the new offer was announced but remains well short of the bids.
Santa Fe closed up 11/8 to 151/4 on the New York Stock Exchange Thursday. BN stock was down 1/2 at 50 and Union Pacific shares closed down 7/8 at 485/8.
The amended agreement, announced before the stock market opened, would give Santa Fe stockholders the equivalent of $17.13 a share, based on Wednesday's closing price of BN stock.
-Journal of Commerce
by CNB