High cost stalls medicinal pot speculators

The starting gate flew open yesterday in the race to claim the Bay State's planned 35 medicinal marijuana outlets, with a sprint to the Aug. 22 finish line promising a multimillion-dollar prize.

But small-business people like Tewksbury's Robert O'Hearn say they have been nudged out of the process because of the big bucks state officials are demanding long before applicants know if they'll be selected.

"I'm out," said O'Hearn, who owns a small construction company. "The state made it impossible for a regular person ... It's a big risk, too big for any normal person to get involved."

The Department of Public Health yesterday said application forms for marijuana dispensaries are available online and are due Aug. 22.

The state is requiring $30,000 from finalists, then a $50,000 annual fee if chosen, as well as a requirement to have $500,000 on hand. Only big corporations or wealthy individuals could afford that, O'Hearn said, particularly with the risk that the feds might swoop in claiming violation of drug laws and seize assets as they have in other states.

James E. Smith, a Boston lawyer and lobbyist who represents several marijuana dispensary applicants, said the department properly recognized that medicinal marijuana distribution is a part of the state's medical system.

"It's a medical industry. It's a very serious business. It's a business that requires millions of dollars, literally, to properly get it done," said Smith. "It's very tough to be a 'ma and pa' in this industry ... It's not a cupcake stand that can be opened and DPH has put together a serious process to reflect that."

DPH Commissioner Cheryl Bartlett defended the high cost to apply.

"The application and patient registration fees that DPH has put into place are in line with other states and will be affordable to patients," said Bartlett. "At the same time, dispensaries will be required to pay their fair share to support this program, so we do not rely on taxpayer resources."

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Jobs report shows snail’s pace recovery

A lukewarm July jobs report, with employers reporting that they added the fewest new positions since March, is another sign of a sluggish recovery, economists said.

Employers added 162,000 jobs last month while the unemployment rate fell to 7.4 percent, largely because of a shrinking labor force.

"It's not striking you as something horrible, but it's not the direction you want to see," said Elliot Winer, chief economist at Northeast Economic Analysis Group.

Many of the jobs that were added were low-paying, low-productivity jobs in the retail and food-services industries, according to Nigel Gault, co-chief economist of The Parthenon Group.

"We didn't create a lot of jobs, and we weren't creating good ones," Gault said, who added the trend is not new. "It's certainly been something evident over the past year."

More than half of the new jobs added in July were in those sectors. The average workweek and hourly earnings both dropped, as well.

The results leave uncertainty about the short-term decisions of the Federal Reserve Bank. Chairman Ben Bernanke had indicated tapering of the central bank's $85 billion bond buying program could end in September if the economy continued to improve. The bond buying program has kept interest rates low, and has been a key factor in a resurgent housing market.

"It leaves fed policy up in the air," Gault said.

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BMW 328i is all about performance

A sports sedan traditionally includes a manual gearbox and rear-wheel-drive that provide drivers with a more intimate connection with the road, but the BMW 328i challenges that with an eight-speed automatic transmission and all-wheel drive — features that will give a sports sedan purist pause.

My first impression as I slid into the driver's seat of our 328i tester was that the sedan was more about performance driving than luxury and comfort. That's not to say that the 328i lacks a well-appointed cabin. It's extremely comfortable with eight-way adjustable firm leather seats with the right amount of padding on the doors and center console to keep a driver comfortable yet alert and awake.

Our test BMW had a turbocharged in-line four-cylinder engine that put out 240 horsepower. BMW brands its all-wheel-drive feature as xDrive, in which power is distributed with a rear-wheel drive bias — a hard-to-live-without ­option for year-round New England driving.

The 328i's modest turbo provided plenty of might for around town and back-road driving. The extra gears from the eight-speed automatic transmission provided smooth and instantaneous power for passing on the highway. The sedan also has an auto start-stop function that turns the engine off when the car stops to conserve fuel. The feature can be deactivated if it becomes annoying.

The sedan has three driving modes — a fuel-sipping eco pro, comfort and sport. Switching to sport mode distinctively increased engine RPMs and acceleration. Toggling between the modes also changed the feel of the electronic-controlled steering. Four-wheel independent suspension allowed for spirited cornering with the ability to smooth out bridge expansion joints and other road bumps. Ventilated brakes, stability and traction controls provided peace of mind.

BMW takes safety technology to another level with its lane departure warning function. The feature not only uses warning lights to alert drivers if they unintentionally exit their lane but also sends an additional alert by vibrating the steering wheel.

Our test model, which topped out at just over $52,000, returned 33 mpg highway and 22 mpg city. While those gas mileage numbers are respectable, they are offset by the ­sedan's premium fuel require­ment.

The 328i has four optional equipment lines — luxury, modern, sport and M sport. Our tester equipped with the modern package was elegantly styled. Under­stated aluminum trim on the grille, intakes, and front and rear bumpers played well against the mineral gray metallic ex­terior paint. And the 18-inch turbine-style alloy wheels served as a re­minder of the sedan's performance abilities.

A 6.5-inch flat screen display in the center of the dashboard highlights the 328i's cockpit. Navigation and radio functions were easily accessed via a large dial located beside the shift lever. I found the 328i had good front and rear legroom and a spacious trunk. A split folding rear seat-back helps to create more trunk capacity. However, I found the sedan had limited storage along the doors and the center console cup holders­ were on the small side and too close together.

The 328i's all-wheel-drive option is a must-have for Northeast driving,­ and I personally liked the eight-speed automatic trans­mission. Sports ­sedan purists can drop the xDrive feature and go with a six-speed manual. Not enough power? More power can be found with the BMW 335i turbocharged six-cylinder.

There are plenty of other­ sports sedans worthy of consideration, but few can match the resale value of the BMW.

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New Zealand botulism scare triggers global recall

WELLINGTON, New Zealand — New Zealand authorities have triggered a global recall of up to 1,000 tons of dairy products across seven countries after dairy giant Fonterra announced tests had turned up a type of bacteria that could cause botulism.

New Zealand's Ministry of Primary Industries said Saturday that the tainted products include infant formula, sports drinks, protein drinks and other beverages. It said countries affected beside New Zealand include China, Australia, Thailand, Malaysia, Vietnam and Saudi Arabia.

Fonterra said its customers were urgently checking their supply chains.

One New Zealand company has locked down five batches of infant formula and China is asking importers to immediately recall products.

Fonterra is the world's fourth-largest dairy company, with annual revenues of about $16 billion.

The news comes as a blow to New Zealand's dairy industry, which powers the country's economy. New Zealand exports about 95 percent of its milk.

Consumers in China and elsewhere are willing to pay a big premium for New Zealand infant formula because the country has a clean and healthy reputation. Chinese consumers have a special interest after tainted local milk formula killed six babies in 2008.

The Centers for Disease Control describes botulism as a rare but sometimes fatal paralytic illness caused by a nerve toxin.

Fonterra said it has told eight of its customers of the problem, which dates back more than a year, and they were investigating whether any of the affected product is in their supply chains. Fonterra said those companies will initiate any consumer product recalls.

At a news conference Saturday, Fonterra repeatedly refused to divulge the companies, countries or specific products affected. Gary Romano, the managing director of Fonterra's New Zealand milk products, said his company supplies raw materials to the eight companies and it is up to them to inform their consumers of what products might be tainted.

The company did acknowledge its chief executive, Theo Spierings, planned to fly to China Saturday, in part to deal with the fallout from the botulism scare.

New Zealand's Ministry for Primary Industries said Saturday that New Zealand company Nutricia had used some of the tainted product in its Karicare line of formula for infants aged over 6 months. Nutricia had locked down all five batches of infant formula it believed contained the tainted product, the ministry said. But it advised that parents should buy different Nutricia products or alternative brands until it verified the location of all tainted Nutricia products.

China's product quality watchdog issued a statement urging importers of Fonterra dairy products to immediately start recalling the products.

The General Administration of Quality Supervision, Inspection and Quarantine also told quality agencies around China to step up inspections of milk products from New Zealand.

Romano said the problem was caused by unsterilized pipes at a Waikato factory. He said three batches of whey protein weighing about 42 tons were tainted in May 2012, adding that Fonterra has since cleaned the pipes.

The New Zealand ministry says the tainted product has been mixed with other ingredients to form about 1,000 tons of consumer products worldwide.

The company said in a release it identified a potential quality problem in March when a product tested positive for the bacteria Clostridium. Many strains of the bacteria are harmless, the company said, and product samples were put through intensive testing over the following months. It said that on July 31 it discovered the presence of a strain of the bacteria that can cause botulism.

Romano said Fonterra hasn't received reports of anybody getting sick and added that the problem hasn't affected any fresh milk, yoghurt, cheese or long-lasting heat-treated milk.

New Zealand's Ministry for Primary Industries said it was working with the company to investigate.

Spierings, the chief executive, said in the release that food safety was the company's top priority.

"We are acting quickly," he said. "Our focus is to get information out about potentially affected product as fast as possible so that it can be taken off supermarket shelves and, where it has already been purchased, can be returned."

Earlier this year, Fonterra announced it had discovered trace amounts of the agricultural chemical dicyandiamide in some of its products, prompting a ban on the chemical's use on New Zealand farms.

Rabobank's 2012 Global Dairy Top 20 report ranked Fonterra as the world's fourth-largest dairy company by revenue behind Nestlé, Danone and Lactalis. The company is a cooperative, partially owned by thousands of farmers.

In 2011 the company collected 15.4 billion liters (4.1 billion gallons) of milk in New Zealand, representing about 90 percent of the country's total.

In 2008, six babies in China died and another 300,000 were sickened by infant formula that was tainted with melamine, an industrial chemical added to watered-down milk to fool tests for protein levels. Fonterra at the time owned a minority stake in Sanlu, the now-bankrupt Chinese company at the center of the scandal.

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Red Sox owner John Henry to buy Boston Globe

Red Sox owner John Henry has entered into an agreement to buy The Boston Globe and the rest of the New England Media Group, the paper's parent company, The New York Times Company, announced early today.
The $70 million cash agreement is expected to close in 30 to 60 days, according to The Times, and pales in comparison to the $1.1 billion it bought the Globe for two decades ago.
"We are excited about the prospect of working with John Henry and committed to giving Boston and New England high-quality news, information, and entertainment for years to come," said Christopher M. Mayer, Globe publisher and president of New England Media Group, said in a statement released early today.
The news is likely to deliver shockwaves to Morrissey Boulevard, where staffers have toiled under tense and uncertain conditions since the Times announced it was putting the paper up for sale in February.
The sale includes not only the Globe broadsheet, but its web sites, bostonglobe.com and boston.com; the Worcester Telegram & Gazette  and its web site; GlobeDirect, the newspaper's direct mail marketing company; and the company's 49 percent share interest in Metro Boston.
Henry, in a statement, said the paper's "award-winning journalism as well as its rich history and tradition of excellence have established it as one of the most well respected media companies in the country."
"Until the transaction has officially closed and a change in ownership is completed, it would be inappropriate for me to comment specifically about the future of the New England Media Group," Henry said. "This is a thriving, dynamic region that needs a strong, sustainable Boston Globe playing an integral role in the community's long-term future.  In coming days there will be announcements concerning those joining me in this community commitment and effort."
Mark Thompson, president and CEO of The New York Times Company, said the company was "very proud" of its ties to the Globe and Telegram & Gazette.
"We're delighted to have found a buyer in John Henry, who has strong local roots and a deep appreciation of the importance of these publications to the Greater Boston community," he said in a statement.
Henry's ownership of both a major sports franchise and a big-city daily newspaper that covers it is likely to raise both eyebrows and serious conflict of interest questions.
But it's not unprecedented.
When Henry first bought the Sox in February 2002, the New York Times owned both the Globe and a 17 percent stake in the team.
The Chicago Tribune also owned both the Chicago Cubs and Wrigley Field until 2007.
But it can often be an awkward arrangement. The Los Angeles Times faced criticism over a profit-sharing agreement in 1999 to publish a special magazine issue about the then-new Staples Center without disclosing it to readers and staff.
Henry emerged late in the Globe bidding process and had at one point been rumored to be partnering with Delaware North, which is run by Bruins owner Jeremy Jacobs.
Speculation of a Henry buy intensified on July 16 when several Globe staffers Tweeted that Henry and his wife, Linda Pizzuti Henry, had toured the newsroom.
"I just met #RedSox owner and Globe suitor John Henry, who is walking around @BostonGlobe checking us out," Tweeted Globe associate editor Shirley Leung.

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Old tobacco playbook gets new use by e-cigarettes

RICHMOND, Va. — Companies vying for a stake in the fast-growing electronic cigarette business are reviving marketing tactics used to hook generations of Americans on regular smokes.

They're using cab-top and bus stop displays, sponsoring race cars and events, and running slick TV commercials featuring celebrities.

The Food and Drug Administration plans to set marketing and product regulations for electronic cigarettes in the near future. But for now, almost anything goes.

The battery-powered devices heat a liquid nicotine solution, creating vapor that users inhale.

So far, there's not much scientific evidence showing e-cigarettes help smokers quit or smoke less, or how safe they are.

The marketing tactics are raising worries that the devices' makers could tempt young people to take them up. But the makers of e-cigarettes defend their strategy and their products.

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Mass. casino lobbying tapering off on Beacon Hill

BOSTON — Gambling interests hoping to win gaming licenses in Massachusetts are starting to rein in their lobbying efforts on Beacon Hill and focus instead on persuading cities and towns to host their casinos.

During the first half of 2013, companies spent just $1.1 million on political lobbying at the state level in Massachusetts, according to an Associated Press review of records filed with the state secretary's office. One firm — MGM Resorts International — spent almost that much in just six weeks in an effort focused on convincing Springfield voters to back a casino there.

The state-level spending is a big drop from the $1.7 million spent by casino firms during the first six months of 2011, at the height of the contentious push at the Statehouse to legalize the gambling facilities in Massachusetts. They spent a total of $3.1 million that year, when Gov. Deval Patrick signed the casino bill.

By 2012, the year after the law took effect, the total amount spent by casino interests on state-level lobbying had fallen to about $2.3 million.

Now companies are turning their attention — and their money — to winning the three casino and one slots parlor licenses allowed by the law. The first step is persuading voters in cities and towns to sign off on their proposals.

They don't have much time — the casino licenses are expected to be awarded early next year, while the winner of the slots license could be named later this year.

In Springfield, where MGM Resorts International spent nearly $1 million, local voters overwhelmingly backed a proposed casino. An opposition group spent little to fight it.

MGM donated $480,000 to the pro-casino group Yes for Springfield between May 17 and June 28, according to campaign finance records. Most of it was spent on television, radio and billboard advertising. MGM also made more than $500,000 in "in-kind" contributions for services like political consulting, staff time and travel.

Company spokeswoman Carole Brennan said at the time that the company "did what was required to get as many people as possible the facts about MGM Springfield."

There are two other proposed casinos fighting for the sole license available in the western part of the state: Hard Rock International wants to build a casino in West Springfield, while Mohegan Sun hopes to build a venue in Palmer.

In Everett, the first city to hold a binding referendum, companies controlled by Las Vegas casino magnate Steve Wynn spent more than $460,000 before the June 22 vote. Wynn's proposed development — $1.2 billion casino on a 37-acre site along the Mystic River that once housed a chemical plant — was overwhelmingly approved. There was no organized opposition.

The Wynn plan faces competition for the sole eastern Massachusetts license from Suffolk Downs in Boston and Foxwoods Resorts, which is backing a proposed casino in Milford.

One of the top spenders on state-level lobbying during the first half of 2013 was the Mashpee Wampanoag Tribe, which reported spending more than $313,000 hiring lobbyists.

The tribe has proposed a resort casino in Taunton but faces several hurdles, including the need for federal approval of a land-in-trust application.

In another indication of gaming companies shifting their money away from Beacon Hill, Sterling Suffolk Racecourse, which owns Suffolk Downs, spent just $96,000 on lobbying state lawmakers so far in 2013.

That's far less than the nearly $320,000 it spent on lobbying during the same period in 2011.

The bulk of lobbying money is typically spent on the salaries of paid lobbyists, many of whom also donate to the campaigns of state lawmakers.

___

Associated Press writer Bob Salsberg contributed to this report.

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Mass. sees spike in Hurricane Sandy title scams

SPRINGFIELD, Mass. — The Registry of Motor Vehicles is warning consumers in western Massachusetts to watch out for scammers who sell cars with reconstructed titles from Oregon that mask vehicles damaged during Hurricane Sandy.

The RMV says hidden water damage could pose dangers in the long-term, including system failure and safety problems.

The agency says it is stepping up scrutiny of the reconstructed titles. It also asks consumers in and around Springfield to investigate vehicle history before making a purchase by visiting www.vehiclehistory.gov or www.carfax.com/flood .

Red flags on these reports include a damage report filed Nov. 29, 2012 indicating a total loss vehicle, a salvage titled issued in New York or New Jersey salvage and a title issued by Oregon.

RMV Registrar Rachel Kaprielian says the agency has seen more than 50 titled that fit this bill.

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Red Sox owner enters $70M deal for Boston Globe

BOSTON — Businessman John Henry, the principal owner of the Boston Red Sox, has entered into an agreement to buy The Boston Globe for $70 million, a massive drop from its record $1.1 billion price two decades ago.

The impending purchase from The New York Times Co. marks Henry's "first foray into the financially unsettled world of the news media," the Globe said Saturday. The deal will give Henry the 141-year-old newspaper, its websites and affiliated companies, it said.

The Times announced in February it was putting the Globe and related assets up for sale four years after calling off a previous attempt to sell it. The company's CEO said at the time selling the Globe would help the company focus attention on The New York Times brand.

Times spokeswoman Eileen Murphy confirmed the planned sale of the Globe and other media properties to Henry. The Times said the all-cash sale, expected to close in 30 to 60 days, includes BostonGlobe.com, Boston.com, The Worcester Telegram & Gazette, Telegram.com, the direct mail marketing company Globe Direct and the company's 49 percent interest in Metro Boston, a free daily newspaper for commuters.

Henry cited the "essential role that its journalists and employees play in Boston, throughout New England, and beyond."

"The Boston Globe's award-winning journalism as well as its rich history and tradition of excellence have established it as one of the most well respected media companies in the country," Henry said in a statement.

Henry, who also owns the English Premier League soccer club Liverpool F.C., said he would reveal details about his plans for the Globe in the next few days.

Globe editor Brian McGrory said the newspaper's Red Sox coverage and its editorial decisions won't be affected by the sale.

"We have no plans whatsoever to change our Red Sox coverage specifically, or our sports coverage in general, nor will we be asked," McGrory told the newspaper. "The Globe's sports reporting and commentary is the gold standard in the industry."

The Times bought the Globe from the family of former Globe executive Stephen Taylor in 1993 for what it said was the highest price paid for an American newspaper. The price Henry is paying is less than 7 percent of the 1993 price.

The Globe and other newspapers have faced difficulties in recent years as readers have fled to the Internet and advertisers have cut spending on newspapers and moved more ads online. Still, the Globe is a journalistic institution in New England and was lauded for its coverage of the deadly Boston Marathon bombings in April.

A 2009 round of cost-cutting, involving pay cuts, helped put the Globe on better financial footing and prompted the Times to call off a planned sale. In late 2011, the Globe started charging for access to its online version at BostonGlobe.com, which helped to boost circulation revenues.

The Times company doesn't separate Globe revenue from The New York Times revenue in its financial statements. But the Globe had an average weekday circulation of 230,351 in the six months through September, according to the Alliance for Audited Media. The newspaper's increase in digital subscriptions more than offset declines in print. But the total is still down significantly from the nearly 413,000 it boasted in September 2002.

The Globe isn't the only newspaper to see a huge drop in its price at sale time.

In April 2012, Philadelphia's two largest newspapers sold for $55 million, a fraction of the $515 million paid by a group of investors in 2006. The buyers of the Philadelphia Inquirer and Philadelphia Daily News included influential New Jersey Democrat George Norcross III, former New Jersey Nets owner Lewis Katz and cable TV mogul H.F. "Gerry" Lenfest.

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CBS, Time Warner trying to settle fee dispute

Time Warner Cable and CBS say they are trying to settle a fee dispute that has left three million customers without the network's programs.

A Time Warner spokeswoman say negotiations are ongoing. CBS says it expects talks to resume soon.

Neither side would say Saturday if there was a chance the standoff could end quickly.

Time Warner dropped CBS Friday in New York, Los Angeles, Dallas and several other cities. Each side is accusing the other of being unreasonable in a dispute over fees that Time Warner pays CBS to air programs.

Without a deal, Time Warner customers won't see CBS programs such as "Under the Dome." They'll also miss Tiger Woods trying for his 8th win at Firestone Country Club near Akron, Ohio. CBS is the nation's most-watched network.

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