Vermont city losing 600K-plus gallons of water daily in leak

RUTLAND, Vt. — The city of Rutland, Vermont, is losing more than 600,000 gallons of water a day because of a leak.

The Rutland Herald reports that officials are trying to figure out the source of the leak. They say residents have experienced a drop in water pressure since Saturday.

Public Works Commissioner Jeffrey Wennberg says the water isn't running through the streets and doesn't appear to be finding its way into the sewer. He says that means it may be going into a stream.

Wennberg says workers are inspecting valves, hydrants and vacant buildings. He planned to isolate and check the three transmission lines running from the water plant into the city of about 16,500 residents.

He says the leak isn't an immediate threat to the city's water supply.

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Information from: Rutland Herald, http://www.rutlandherald.com/

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House renews bid to improve gov't response on info requests

WASHINGTON — A House committee is renewing efforts to make government agencies more responsive to freedom-of-information requests.

The House unanimously passed a similar effort last year. But objections by Democratic Sen. Jay Rockefeller of West Virginia kept it from becoming law.

The House oversight committee on Wednesday endorsed a bill, by voice vote, that would make it harder for federal agencies to delay or reject requests filed under the Freedom of Information Act, or FOIA. Agencies would have to show that the requested disclosure is barred by law or would cause specific harm to interests protected by the law.

Rockefeller has retired from the Senate. In 2014 he cited concerns that companies might use time-consuming information requests to delay investigations into their conduct.

The House bill is sponsored by GOP Rep. Jason Chaffetz of Utah, who chairs the oversight committee, and by the panel's top Democrat. Elijah E. Cummings of Maryland.

Cummings said the measure has "widespread support" in Congress, and "would be a landmark reform of the law."

The Associated Press is a member of the Sunshine in Government Initiative, which supports the legislation.

A recent AP analysis found that the Obama administration set a record for censoring government files or denying access to them last year under the FOIA law. The government took longer to turn over files when it provided any. It said more regularly that it couldn't find documents. And it refused a record number of times to turn over files quickly that might be especially newsworthy, the analysis concluded.

The Sunshine in Government Initiative says the Chaffetz-Cummings bill would make the government "more open and accountable to the American public." It would make clear that the Office of Government Information Services can speak without first seeking input from other agencies, such as the Office of Budget and Management.

It would write into law a policy that directs federal agencies to start considering a FOIA request without assuming it will be denied. And it calls for more technologically modern handling of FOIA requests.

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Comcast says $45B Time Warner Cable deal to take longer

NEW YORK — Comcast says it expects its $45 billion purchase of Time Warner Cable to take longer because of a long-running regulatory review.

The country's largest cable company wants to buy Time Warner, the No. 2 cable provider, to create an Internet and TV giant that will serve nearly 30 percent of cable TV subscribers and more than half of high-speed Internet subscribers.

The Federal Communications Commission and Justice Department are still reviewing the deal, which was announced in February 2014.

Comcast said in a blog post Wednesday that it now expects the FCC's review to finish in the middle of the year. It had predicted the deal would close in early 2015. The FCC has delayed its review due to a related court case that is pending.

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Auto workers president rejects lower-tier of wages

DETROIT — The leader of the United Auto Workers union has rejected a third tier of lower wages for members who make auto parts.

Speaking Wednesday at the union's national bargaining convention in Detroit, President Dennis Williams said the UAW already has too many tiers of lower wages.

Williams was responding to reports that General Motors Co. and Ford Motor Co. may propose a third tier of pay. He already is under pressure from union members to end a second tier of wages that's about half the $28 per hour made by longtime workers.

He told delegates that he heard people talking about the third tier, which would pay less than the $15.28 starting wage for second-tier workers, on their way in to the convention center Wednesday morning.

"I'm thinking they got too many damn tiers now," said Williams, who received a standing ovation.

Actually, a third tier of wages already is in place at several General Motors factories in the Detroit area for a small number of workers who build battery packs and place parts in the right sequence to be assembled on cars. Without the lower tier, the work may have gone to Mexico or another country with lower labor costs.

Williams told members about bridging the gap in wages, an apparent reference to the first and second tiers. But he also said they're competing in a global economy.

Many at the convention spoke in favor of pay raises for veteran workers. Longtime UAW workers have not had an hourly pay raise since 2007, although they have received hefty annual profit sharing checks. But there's no guarantee of getting checks every year.

Williams didn't address pay raises in his speech, but has said in the past that there are ways to give raises and keep the companies competitive.

In his speech, he said workers shared in getting the auto companies through bad times and "we must equally share in the good times."

Contract talks with between Fiat Chrysler, GM, Ford and the UAW start this summer. The union represents about 137,000 workers at the three companies. The current contract expires in September.

The convention, which takes place every four years, sets the agenda for the union's bargaining efforts with the auto companies and other industries.

This year's talks are the first to come after the auto industry fully recovered from the Great Recession, and could be contentious as the union seeks a slice of the industry's billions of dollars in profits. Auto sales are expected to hit nearly 17 million in the U.S. this year, close to historic highs. They fell as low as 10.4 million in 2009.

Auto companies, mindful of the recession, are reluctant to increase U.S. labor costs and once again be at a cost disadvantage to foreign companies. They actually want to reduce labor expenses, contending that their costs already have grown above competitors.

An analysis done by the Center for Automotive Research, a think tank based in Ann Arbor, Michigan, shows that to be true, at least for General Motors and Ford.

GM's total hourly labor costs, including wages and benefits, total $58 per hour, followed closely by Ford at $57. Both are more than $8 above Honda and Toyota, whose costs are below $50 per hour, the analysis found. Chrysler, with costs totaling $48 per hour, is below Honda and equal to Toyota, but higher than Nissan, Hyundai, BMW and Volkswagen, according to the analysis.

Mercedes-Benz had the highest labor costs in the U.S. at $65 per hour, while Volkswagen was the lowest at $38.

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Lowell woman sentenced for tax fraud scheme

BOSTON — A Lowell woman who helped run a family-owned temporary employment agency has been sentenced to more than six years in federal prison for defrauding the IRS of more than $5 million in tax revenue.

Margaret Mathes sought leniency because she had recently been diagnosed with possible Alzheimer's disease, but was instead punished with an enhanced sentence for greatly exaggerating her symptoms.

The Sun  reports that in a scheme that spanned eight years, the 67-year-old Mathes and her family, owners of the former International Temp Agency and later JP Company, avoided paying taxes by paying workers under the table to avoid records.

Between 2004 and 2009, Mathes and her family reported a $2.2 million employee payroll, but hid an additional $25.8 million in wages. She had pleaded guilty in August.

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Information from: The (Lowell, Mass.) Sun, http://www.lowellsun.com

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US durable goods orders fell 1.4 percent in February

WASHINGTON — Orders to U.S. factories for long-lasting manufactured goods fell in February for the third time in the past four months, while a key investment category fell for a sixth month.

Orders for durable goods dropped 1.4 percent in February following a 2 percent increase in January and declines of 3.7 percent in December and 2.2 percent in November, the Commerce Department reported Wednesday. A key category that serves as a proxy for business investment spending retreated 1.4 percent in February, the sixth consecutive monthly decline.

The weakness in February was widespread, with weaker demand for commercial aircraft, autos and machinery. The result adds to a slew of disappointing data from recent economic indicators. Economists, however, expect domestic demand to strengthen in the months ahead and hope that will be enough to offset weakness caused by a stronger dollar, which dampens export sales of U.S. companies.

Transportation orders were down 3.5 percent. Excluding transportation, durable goods orders dropped 0.4 percent. Demand for machinery and computers fell, while orders for communications equipment and appliances rose.

Paul Ashworth, chief U.S. economist at Capital Economics, blamed some of the weakness to the big plunge in energy prices, which has led to cutbacks in drilling plans by oil and gas companies. But he noted one sign of encouragement — business surveys of investment spending plans have improved significantly in recent months.

"We would expect to see a rebound in equipment investment in the second quarter," Ashworth said.

Many economists are looking for manufacturing orders to start strengthening following a stretch of weakness in the second half of last year. They believe the end of harsh winter weather and the resolution of a labor dispute at West Coast ports, which caused supply disruptions, should help.

They expect strong consumer spending, powered by a year of healthy job gains, will boost domestic demand and help to offset global weakness and the strong dollar.

Growth in the overall economy slowed significantly in the October-December quarter, with a widening trade deficit trimming growth by more than a percentage point.

The government will release its third and final estimate of economic growth in the fourth quarter on Friday. Analysts expect growth will be revised slightly to a rate of 2.4 percent, up from the previous estimate of 2.2 percent. But that would still leave the economy expanding far below the 5 percent rate in the third quarter. And economists believe growth has remained sluggish in the current January-March period at around 2 percent.

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Feds to investigating safety of Lumber Liquidators flooring

RICHMOND, Va. — The U.S. Consumer Product Safety Commission is investigating the safety Lumber Liquidators laminate flooring made in China.

Chairman Elliot F. Kaye said Wednesday the agency is taking the issue seriously and is working to get answers for consumers.

The move comes after a report on CBS' "60 Minutes" earlier this month that said that Lumber Liquidators' Chinese-made laminate flooring contains high levels of formaldehyde, a carcinogen.

The Toano, Virginia-based discount hardwood flooring retailer has said it complies with applicable regulations for its products and has reassured consumers that its flooring is safe.

Two senators have since called for investigations following the broadcast.

Lumber Liquidators Holdings Inc. has more than 350 locations in North America.

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Bill would create organic-type labels for nonmodified foods

WASHINGTON — Inspired by the popular "USDA organic" label, House Republicans are proposing a new government certification for foods free of genetically modified ingredients.

The idea is part of an attempt to block mandatory labeling of foods that include genetically modified organisms, or GMOs. The certification would be voluntary, says Rep. Mike Pompeo, R-Kan., who is including the idea in legislation he is introducing Wednesday.

Pompeo says a government-certified label would allow companies that want to advertise their foods as GMO-free to do so, but it would not be mandatory for others. The food industry, which backs Pompeo's bill, has strongly opposed individual state efforts to require labeling, saying labels would be misleading because GMOs are safe. The bill would also override any state laws that require the labeling.

Under the legislation, the Agriculture Department would oversee the certification, as it does with organics. But while organic foods must be USDA-certified to carry any organic label on a package, the department's non-GMO certification would not be required for every food that bills itself as free of genetically modified ingredients. The idea is that foods the department certifies as free of GMOs would have a special government label that companies could use to market their foods. User fees would pay for the program.

The bill also steps up FDA review of genetically modified foods. Currently, food companies must comply with FDA guidance if they want to claim that foods are free of engineered ingredients.

Pompeo says inconsistent state laws would be confusing and costly for consumers and for companies. Vermont became the first state to require the labeling in 2014, and that law will go into effect next year if it survives a legal challenge from the food industry.

"We're perfectly happy to have folks to understand if there's GMOs or not in their food," Pompeo said in an interview with The Associated Press. "It is simply not the case that you can have affordable food that is safe and 1,000 different rules."

He said he is working with his party's leadership and also the Senate to try to pass the bill this year. Pompeo introduced a similar bill last year that did not include the Agriculture Department certification.

Genetically modified seeds are engineered in laboratories to have certain traits, like resistance to herbicides. The majority of the country's corn and soybean crop is now genetically modified, with much of that going to animal feed. They are also made into popular processed food ingredients like high-fructose corn syrup and soybean oil.

The FDA says GMOs on the market now are safe, but consumer advocates pushing for the labeling say shoppers have a right to know what is in their food, arguing that not enough is known about the effects of the technology. They have supported several state efforts to require labeling, with the eventual goal of having a federal standard.

Those groups quickly criticized Pompeo's approach.

"This is a faulty and disingenuous attempt to assuage consumer concern without actually giving the people the information they want and deserve," said Andrew Kimbrell of the advocacy group Center for Food Safety. "The most effective way to provide consumers with the full universe of information about their food is through mandatory labeling, nothing less."

Scott Faber, head of the national Just Label It campaign, described the bill as a last-ditch effort by the food industry as state legislatures are considering bills around the country that would require the labeling.

According to a December Associated Press-GfK poll, two-thirds of Americans favor mandatory labeling of genetically modified foods.

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Follow Mary Clare Jalonick on Twitter: http://twitter.com/mcjalonick

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HJ Heinz buys Kraft to build $28 billion food giant

NEW YORK — Some of the most familiar names in pickles, cheese, hot dogs and other packaged foods are set to come under the same roof after H.J. Heinz Co. announced Wednesday that it plans to buy Kraft Foods in a deal to create one of the world's largest food and beverage companies.

The deal would bring together an array of well-known but somewhat dated brands, including Heinz ketchup, Oscar Mayer lunchmeats, Jell-O desserts and Miracle Whip spreads.

The combination of the two companies — each more than a century old — was engineered by Warren Buffett's Berkshire Hathaway and Brazilian investment firm 3G Capital. Although shoppers are not expected to see any major changes as a result, the creation of the Kraft Heinz Co. reflects the pressures facing some of the biggest packaged food makers in the U.S.

As shoppers increasingly migrate away from longtime pantry staples in favor of options marketed as less processed, companies including Campbell Soup, General Mills and Kellogg have been slashing costs or striking deals intended to refresh their products. The Heinz-Kraft deal is in many ways just the latest example of that, although Buffett noted that the two companies still have a strong base of customers.

"I think the tastes Kraft and Heinz appeal to are pretty enduring," he said in a telephone call to the business news channel CNBC.

Still, the early plans outlined by Kraft and Heinz executives in a conference call Wednesday focused largely on the cost efficiencies that would be achieved through the deal, rather than the potential for sales growth in North America. They said they expect to save $1.5 billion through moves such as combining manufacturing and distribution networks, as well as using the newly created company's scale to negotiate better prices for ingredients.

The boards of both companies unanimously approved the deal, which still needs a nod from federal regulators and shareholders of Kraft Foods Group Inc. The companies say they expect the deal to close in the second half of the year.

Once it goes through, Kraft is expected to undergo cost-cutting under the management of 3G Capital, which teamed up with Berkshire Hathaway two years ago to buy Heinz.

John Cahill, CEO of Kraft, noted that the new management would drive a "much leaner organization," as was the case when 3G took over Heinz. He said 3G can "make this happen deeper and faster."

"What we have not been thrilled about is some of our execution," Cahill said.

The two companies also see potential in pushing their products more aggressively overseas. Although Kraft's sales are focused in North America, executives noted that its brands are well known in major markets around the world. Already, Heinz gets 61 percent of sales from outside North America, said Bernardo Hees, the CEO of Heinz who will become head of the newly created company.

The deal came together rapidly, Buffett said, having been in the works for only about four weeks. The new company will be co-headquartered in Pittsburgh, where Heinz is based, and the Chicago area, home of Kraft, and will have annual revenue of about $28 billion.

Eight of its brands have annual sales of $1 billion or more and five others log sales between $500 million and $1 billon every year.

There are plans for at least four new products this year, Buffett said, and there is a lot of freedom to sell the company's products outside of the U.S. and Canada.

Since splitting from Mondelez International Inc. in 2012, Kraft's business has been primarily concentrated in the U.S. and Canada. All of its manufacturing capacity is in those two countries, according to the company's annual report.

Shares of Kraft jumped nearly 34 percent Wednesday before the opening bell.

The total value of the deal is difficult to gauge because Heinz is privately held. But Kraft shareholders will receive stock in the combined company and a special cash dividend of approximately $10 billion, or $16.50 per share. Each share of Kraft will be converted into one share of Kraft Heinz.

Current Heinz shareholders will own 51 percent of the combined company, with Kraft shareholders owning a 49 percent stake.

The Kraft Heinz board will include six directors from the current Heinz board. Those six directors will include three members from Berkshire Hathaway and three members from 3G Capital. The current Kraft board will appoint five directors to the combined company's board.

Kraft Heinz plans to keep Kraft's current dividend once the transaction closes. Kraft has no plans to change its dividend before the deal is complete.

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Obama says he's ready to sign Medicare doctor payment fix

WASHINGTON — President Barack Obama said Wednesday that he's ready to sign good bipartisan legislation to fix Medicare's doctor payment problem, without endorsing any specific legislation.

Without a fix, doctors face a 21 percent cut in Medicare fees, the consequence of a 1990s budget law that Congress has repeatedly waived.

The House is expected to vote Thursday on a bill with rare support from both top leaders in the House that would permanently fix the problem. Obama backed the idea of a fix at a White House event marking this week's five-year anniversary of his signing the Affordable Care Act, while stopping short of backing the House compromise.

"As we speak, Congress is working to fix the Medicare physician payment system. I have my pen ready to sign a good bipartisan bill," he said.

Asked later if that means Obama would sign the House bill, White House press secretary Josh Earnest said the administration doesn't have a position on it. But Earnest said the White House puts "a lot of stock" into Democratic Leader Nancy Pelosi's position in support of the legislation.

Republican House Speaker John Boehner also is behind the bill, in an unusual show of bipartisanship on health care amid the battles over President Barack Obama's overhaul. "If something bipartisan emerges from the House, that would be good news," Earnest said.

The House bills calls for a period of basically stable reimbursements, followed by gradually shifting a larger share of doctors' pay so that it's keyed to quality, rather than quantity, of service. The Medicare fix is packaged with an extension of children's health insurance, funding for community health centers and dozens of other provisions. The outlook in the Senate is unclear.

The legislation aims for the political center and is being criticized from the right and the left. Conservatives don't like that most of the cost will be added to the federal deficit. Liberals object to higher premiums for upper-income beneficiaries, when drug companies are not being asked to share the burden through Medicare rebates.

Obama also announced a cost-cutting effort that the White House calls a Health Care Payment Learning and Action Network. The White House says more than 2,800 health care providers, patients and consumer groups have agreed to take part.

The goal is to tie more payments for health care services to the quality — not quantity — of services rendered. Earlier this year the administration set a goal to tie 30 percent of Medicare payments to quality and value, but Obama wants to go further.

"A central notion in the Affordable Care Act was we had an inefficient system with a lot of waste that didn't also deliver the kind of quality that was needed that often put health care providers in a box where they wanted to do better for their patients, but financial incentives were skewed the other way," Obama said.

"We don't need to reinvent the wheel — you're already figuring out what works to reduce infections in hospitals or help patients with complicated needs," Obama told health care providers gathered in the Eisenhower Executive Office Building next to the West Wing. "What we have to do is to share these best practices, these good ideas, including new ways to pay for care so that we're rewarding quality."

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Follow Nedra Pickler on Twitter: http://www.twitter.com/nedrapickler

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