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Economic index looks at slow growth ahead

NEW YORK >> The economy looks set to continue at its sluggish pace for the next three to six months, according to a widely watched index.

The Conference Board, a New York-based research group, today said its Index of Leading Economic Indicators rose by 0.1 point last month to 110.6.

It was the first increase in three months, but it gave little sign of any brisk recovery after the war against Iraq. The economy has been in a "soft spot" for more than half a year, with employment particularly weak.

Economist Carol Stone at Nomura Securities International in New York noted that the April reading was lifted mostly by the rise of the stock market and consumer expectations, while harder data on jobs and manufacturing held it down.

"We still have a ways to go. The best we can get out of this is that it stopped falling," Stone said.

Gas prices drop more than 2 cents in U.S.

CAMARILLO, Calif. >> Gas prices declined more than two cents per gallon over the past two weeks as crude oil prices continued to fall in the wake of the Iraq war, an industry analyst said yesterday.

The average price for gas nationwide, including all grades and taxes, was about $1.55 per gallon on Friday, according to the Lundberg Survey of 8,000 stations.

On May 2, the date of the last Lundberg Survey, gas cost about $1.58 a gallon.

It was the fourth straight two-week drop, adding up to a decline of more than 20 cents per gallon since prices peaked March 21 at an average of $1.76 per gallon, said analyst Trilby Lundberg.

One year ago, on May 17, 2002, the weighted average for all three grades combined, was $1.46 per gallon.

IN HAWAII

Hilton sued over mold infestation

A Florida resident who stayed in the Kalia Tower at Hilton Hawaiian Village during July 2002 says the hotel did not tell him that the tower's rooms were being closed because of mold, and denied his requests to move to another building.

Jeff Moffett filed a class-action lawsuit against Hilton in state Circuit Court on behalf of people who stayed in the Kalia Tower and were not told about its mold problem. Moffett accuses Hilton of deception and tortious nondisclosure and is seeking damages that could total $74,999 for each person affected.

As early as March 2002, Hilton employees found mold in the Kalia Tower. On June 7, Hilton executive Peter Schall was informed of a mold problem and Hilton began closing rooms in the tower.

Moffett said he, his wife and infant son checked into a Kalia Tower guest room July 6 and noticed the bed sheets were damp. They asked to be moved four separate times between July 8 and July 22, and were told the first three times that no other rooms were available.

On July 23, a Hilton operations manager called the Moffetts and asked them to move to another tower because there was a problem with the air-conditioning system in the Kalia Tower, according to the suit.

The next day, Hilton closed all guest rooms the 453-room Kalia Tower and went public with the problem.

The tower has remained closed for rebuilding, and Hilton estimates it won't reopen until as late as September this year. The rebuild is costing approximately $56 million in a tower that cost $95 million to build in May 2001.

Hilton recently sued 18 construction companies and individuals that built the tower, blaming them for construction defects that caused the mold.

ON THE MAINLAND

WorldCom to pay $500 million

NEW YORK >> WorldCom Inc. has agreed to pay investors a record $500 million to settle civil fraud charges over its $11 billion accounting scandal, which was the biggest in U.S. corporate history, lawyers for the company and the federal government announced today.

The fine would be the one of the largest the Securities and Exchange Commission has ever imposed. WorldCom, a bankrupt telecommunications titan that wants to be renamed MCI, is accused of misleading investors by falsifying balance sheets to hide expenses and inflate earnings.

Attorneys for the two sides presented the proposed settlement to U.S. District Judge Jed S. Rakoff in Manhattan, who said he would consider the deal and would not rule before June 11.

Rakoff said he needs to learn "much more of the defendant's seemingly massive fraud," who would be affected by the settlement and what internal controls WorldCom has put in place.

Kids stressed when parent fired

Losing a job is the height of stress for most of us, especially as the bills don't stop. But adults often fail to realize how stressful the loss of a job can also be on children, according to Lee Hecht Harrison, a New Jersey-based career-services firm.

It makes little sense to try to hide unemployment from a child, said Bernadette Kenny, an executive vice president at the firm. Kids generally know when something's amiss, and if you don't discuss the situation, they are likely to internalize the issue and harbor their own fears alone.

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[Hawaii Inc.]

New jobs

>> Mililani Golf Club has named Lance M. Sugimura merchandiser. He will be responsible for all Pro Shop purchases, as well as shop promotions and special events. Sugimura was most recently a Sam's Club and Sports Authority supervisor.

>> Communications-Pacific has hired Maggie Jarrett as a director in its corporate communications group. She was most recently a vice president at St. Francis Healthcare System of Hawaii with responsibilities in public relations, advertising, volunteer programs, telecommunications and the gift shop.

>> Inets has hired Ryan Burge and Brian Okazaki as account executives. Burge will serve corporate and federal accounts. He has several years of technical and consulting experience in sales and marketing. Okazaki also will serve the corporate sector. Inets is an Internet service provider, as well as offering software instruction, Web development and network integration.

On the board

>> Mary Peddie of Char Sakamoto Ishii Lum & Ching has been elected president of the Hawaii Paralegal Association. The 2003-04 board of directors includes: Vice President Evelyn Gomez, Hawaii State Bar Association; Secretary Sandy Shiraki, The Pacific Law Group; Treasurer Cynthia Ney, Carlsmith Ball; Immediate Past President Sue Alden, Carlsmith Ball. The association's mission is to inform members of developments in the paralegal profession; encourage and provide education; promote awareness about the effective use of paralegals; and foster communication among those in the legal profession and in the community at large.