Southwest Journalist Thursday, May 29, 2008
The University of Texas at Austin
Dow Jones Newspaper Fund Center for Editing Excellence
The price of indulgence
FINAL FIGHT?
The Spurs face a mustwin situation tonight when they travel to the Staples Center for Game 5 of the Western Finals, Page 5
Firefighter fired after burger stop The Associated Press
Tina Fineberg /AP Photo
Juliet Ewing-Kwan helps her son, Dashiell, with his shoes after his sister, though Ewing-Kwan did trade out her trendy Bugaboo gymnastics class. Ewing-Kwan will keep paying for extracurricular stroller, opting for a lighter and cheaper jogger. Parents across lessons and classes for 3-year-old Dashiell and his 6-year-old the country are having to choose how to indulge their children.
Tips for teaching teens dollar sense TALK ABOUT CREDIT CARDS: Students often don’t know even the basics about credit cards. DON’T BRIBE KIDS WITH MONEY: Rewards are nice, but they don’t help teens learn the value of working for a dollar. MONITOR SPENDING: Tracking cash flow can be simple. Have your teen use envelopes to stash cash for budget categories on a weekly basis. ADMIT MISTAKES: Parents can have bad money habits like everyone else. ‘Fess up, but explain you’re trying to improve. HELP KIDS LEARN TO BUDGET: Budgeting takes time and practice. If you value saving, but don’t budget for it, you are much less likely to save.
— Stephen Epstein, of DollarCamp, student financial training
Are we overspending on kids? By LEANNE ITALIE Associated Press Writer
Parents in all income brackets have the shaky economy on their minds, but in this spendy era of the $900 baby stroller and the ultra-birthday party, are they resisting the urge to splurge on their kids? Many parents acknowledge there’s a blur between “necessities” and “luxuries” for their young ones as prices soar for everything from gas to milk. “There’s definitely pressure to buy. There’s more consuming and more competition,” said stay-at-home mom Juliet Ewing-Kwan, who recently had her third child. “So much of it is about products. Even my husband knows who has the expensive stroller, who spent the money.” Ewing-Kwan dumped her pricey Bugaboo stroller, opting for a lighter and cheaper jogger, but extracurricular Italian lessons, music class and yoga aren’t on the chopping block for her 6-year-old daughter and her 3-year-old son. “We do it for ourselves and we do it for our kids,” said Ewing-Kwan, 39, whose husband works for a Wall Street investment firm. “Those things are really important when applying to middle schools and to make them well-round-
Mike Gullett/AP Photo
Brian Rogers and his son, Sage, 8, prefer low-cost activities such as going to the park. ed individuals. And they love them.” Fretting about the economy is a national parental pastime these days in an age when preschool can mean a $25,000 hit. A middleincome family with a child born last year should expect to spend $204,060 on food, Please see MONEY, Page 2
Dow Chemical to raise prices 20% By JAMES PRICHARD Associated Press Writer
Dow Chemical Co. plans to raise its prices by up to 20 percent almost immediately to offset the soaring cost of energy, and the CEO of the chemical giant lashed out at Washington on Wednesday for failing to develop a sound energy policy. Dow supplies a broad swath of industries, from agriculture to health care, and any sizable price jump would likely affect almost all of them. The price increases w ill
take effect Sunday and will be based on a product’s exposure to rising costs. Dow said it spent $8 billion on energy and hydrocarbon-based feedstock, or raw materials, in 2002 and that could climb fourfold to $32 billion this year. “For years, Washington has failed to address the issue of rising energy costs and, as a result, the country now faces a true energy crisis, one that is causing serious harm to America’s manufacturing sector and all consumers of energy,” Chairman and Chief Executive Andrew Liveris said
in a statement. “The government’s failure to develop a comprehensive energy policy is causing U.S. industry to lose ground when it comes to global competitiveness, and our own domestic markets are now starting to see demand destruction throughout the U.S.” Liveris said soaring costs for Dow are “forcing difficult discussions with customers.” Midland, Mich.-based Dow Chemical makes everything from the propylene glycols used in antifreeze, coolants, solvents, cosmetics and phar-
maceuticals, to acrylic, acidbased products used in detergents, wastewater-treatment and disposable diapers. It makes key ingredients used in paints, textiles, glass, packaging and cars. Its products are sold in 160 countries. The company last month reported a 3 percent drop in quarterly earnings, despite a 42 percent jump in feedstock and energy costs. Dow shares rose 60 cents to $40.83 Wednesday. For more information, see www.dow.com.
American-Statesman reported Tuesday. AUSTIN — A firefighter who DeCrane said the 911 call stopped to pick up a hamburger originated from a medical before rushing to help a woman clinic. In an audio recording of in respiratory distress has been the call, a clinic employee told a fired. dispatcher that the patient was Firefighter Michael Pooler’s a 77-year-old woman who was decision to stop at the Burger having difficulty talking and House next to his fire station breathing at the same time. before jumping onto a fire truck Pooler, a 12-year veteran delayed t he of t he Fi r e emergency Department, response by declined “Because of two minutes, t hroug h a his selfish s a id a c t i n g u n ion repand highly Fire Chief Jim resentat ive unprofessional Evans. to comment actions, he Evans said on the firing, has no right in a disciplinw h ich hapto remain ar y memo pened after a an Austin released Tueshearing Friday that Pooler day. He does firefighter.” demonstrated not have an —Austin Fire “a shock i ng attorney, said Department neg lect of Palmer Buck, Memo duty” in the secretary for Ja n. 4 i ncit he Aust in dent. Association of “Immediate response to Professional Firefighters. 911 calls is the very essence of Buck said Pooler plans to what it means to be an Aus- appeal the firing. tin firefighter. ...Because of his According to the three-page selfish and highly unprofes- memo, Pooler, who was the onsional actions, he has no right duty supervisor, walked away to remain an Austin firefighter,” from the fire station to place the memo said. an order at the adjacent resMichelle DeCrane, a Fire taurant. Department spokeswoman, Evans said in the memo that said paramedics from Austin- for a person in respiratory disTrav is Cou nt y Emergenc y tress, two minutes can mean Medical Services reached the the difference between life and patient before f iref ighters death or could lead to permaand canceled the firefighter nent brain injury. response. The patient’s condition was not known, the Austin
McClellan memoir claims president mishandled Iraq By JENNIFER LOVEN Associated Press Writer
WASHINGTON — Former White House Press Secretary Scott McClellan wrote in a new memoir that President Bush relied on an aggressive “political propaganda campaign” instead of the truth to sell the Iraq war, and that the decision to invade pushed Bush’s presidency “terribly off course.” The Bush White House made “a decision to turn away from candor and honesty when those qualities were most needed” — a time when the nation was on the brink of war, McClellan wrote in “What Happened: Inside the Bush White House and Washington’s Culture of Deception.” The way Bush managed the Iraq issue “almost guaranteed that the use of force would become the only feasible option.” “In the permanent campaign era, it was all about manipulating sources of public opinion to the president’s advantage,” McClellan wrote. McClellan
admitted that some of his own words from the podium in the White House briefing room turned out to be “badly misguided.” White House aides seemed stunned by the scathing tone of the book, and Bush press secretary Dana Perino issued a statement that was highly critical of their former colleague. “S c ot t, we now know, is d isg r u nt led about his experience at the White House,” Per i no sa id. Scott “For those of us McClellan who fully supported him before, during and after he was press secretary, we are puzzled. It is sad. This is not the Scott we knew.” Perino said the reports on the book had been described to Bush and that she did not expect him to comment. “He ha s more pressi ng matters than to spend time Please see MEMOIR, Page 2
Gas companies pressure land owners By TIM HUBER Associated Press Writer
Dale Sparks/AP Photo
Brad Castle stands on the grounds of his father’s business on a 770-acre tract of land near Rowlesburg, W.Va., last Thursday. Castle’s father and landowners recently leased the oil and gas rights to a company for an extremely low price of $5 an acre.
CH A RLESTON, W.Va. — Unsuspecting property owners around the country are getting trampled in an old-fashioned land rush by natural gas companies and speculators trying to lock up long-ignored drilling rights quickly and cheaply. Stories of fast-talking industry representatives using scare tactics to strong-arm people into signing leases are popping up from New York to West Virginia to parts of Indiana and Texas. All of the properties sit
on largely untapped natural gas deposits made suddenly viable — and valuable — by soaring prices and improved drilling techniques. West Virginia farmer and convenience store owner Brad Castle is still hurting from his experience. Castle and his father thought they were getting a windfall when they signed a $5-an-acre lease with a small Michigan company with the promise of 12.5 percent royalties for the gas rights to 800 acres they own near Rowlesburg in northern West Virginia. The process
started when a landman — an industry term for a person who secures mineral rights — knocked on his door. “They’re very nice people, the ones that come around. You thought you could trust them,” said Castle, who was warned to sign or drillers would siphon the gas beneath his property without paying him a dime. His feelings of trust evaporated when rival companies started offering $350 an acre and royalties as high as 15 percent. Castle hired a lawyer to look into breaking the lease.
“There’s got to be a law broke somewhere,” Castle said. Retired dairy farmer Dewey Decker heard similar pitches when landmen started showing up in New York’s Broome and Delaware counties. “They were offering like $25, then $50,” Decker said. “Quite a few people signed for $50.” But Decker held out and formed a pool w it h other landowners that has grown to more than 40,000 acres. The approach worked: Decker’s group agreed to a five-year deal Please see GAS, Page 2