Marketplace: News Archives

Wednesday, March 21, 2001
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It's Wednesday, March 21, 2001. I'm David Brancaccio.

Boeing - so closely identified with the spirit and history of Seattle - announced it's moving its headquarters. And in its own version of the Price is Right, Boeing is soliciting bids from three cities to host its new corporate offices - not to be confused with its massive manufacturing operation. Tom Banse reports from a rattled Seattle.

Banse: "After 85 years in Seattle, Boeing executives have decided that they want to steer the huge aerospace company from 'a more central location.' Boeing now runs major operations in St. Louis and Southern California thanks to acquisitions. Boeing CEO Phil Condit says he's given a lot of thought to corporate structure. He says the headquarters should be in a separate city from its major business units to maximize strategic and independent thinking. Condit says Boeing has already narrowed its list to three places - Denver, Chicago, and Dallas/Ft. Worth. He wasn't very subtle in noting that the company will compare the incentives local officials may offer before making a final choice in mid-summer.

The news came as a shock and complete surprise to Boeing's home region. State senator Margarita Prentice of Seattle says the company's been treated well here."

Prentice: "It's heartbreaking...I guess that really does hurt."

Banse: "THe concern among Boeing's heavily-unionized workforce is that manufacturing plants could follow the headquarters out of state. The company won't speculate about that. In seattle, I'm Tom Banse for Marketplace."

Dimsdale: "A year and a half ago, the National Academy of Sciences concluded that the cancer risks from arsenic are extremely high and called for a reduction in the allowable levels in drinking water.

After reviewing decades of scientific studies, the EPA in the waning days of the Clinton administration lowered the safe level to ten parts of arsenic per billion parts of water. The association of city water utilities gave its blessing. But the new EPA now wants to look at the evidence, and will delay the rule.

Environmentalists are not happy."

Olson: "Clearly this is simply a capitulation to the mining industry and other corporate interests that have been lobbying to kill the standard."

Dimsdale: "Eric Olson, with the Natural Resources Defense Council, says mining is a significant source of arsenic in ground water. The industry would face high cleanup costs under the tighter standard.

But smaller water utility companies would also find it tough paying for arsenic removal, and Mike Keegan, a spokesman with the National Rural Water Association says environmentalists are wrong to blame business."

Keegan: "It really doesn't have anything to do with industry. It's about local communities who operate their water systems, who's councilmen and mayors are elected by the local people. They all drink the water, their families drink the water. They have to pay the bills. Should they have a say in what the regulation is?"

Dimsdale: "Supporters of the lower arsenic standard say there is federal help for small water companies that have to buy new equipment. Environmentalists are threatening to take the EPA to court if the agency does not act soon to enforce tighter limits on arsenic. In Washington, I'm John Dimsdale for Marketplace."

Ott: "The report, based on blood and urine tests of 5 thousand US residents, provides the most comprehensive data on the presence of 27 toxic substances including lead, mercury, pesticides and tobacco. Doctor Richard Jackson - Director of the National Center for Environmental Health - says it's a milestone."

Jackson: "In the past we have had good information on chemicals in the air and the water and the food. We've had very limited data on chemicals in data."

Ott: "The study doesn't say whether the levels of toxic chemicals found in our blood are too high, but Jackson says a planned annual update will open many new avenues of research."

Jackson: "It will be able to say what environmental chemicals are in the blood and urine of the US population, who is exposed, what are the trends in exposure over time, and what interventions have been put in place that are working, or for the matter, not working."

Ott: "The study does point to some successes - the level of lead in children's blood has decreased since 1976. I"m Tanya Ott for Marketplace."

But it has long been noted that positive stock recommendations easily outnumber negative ones and the memo gives ammunition to who argue that the barrier between the analysis side and the investment banking side of many Wall Street firms is too permeable.

The Dow fell 233 more points today to 9487. The NASDAQ fell 27 points, one and a half percent. Details when we do the numbers.

Rundown