PhillyInc

Today's Labor Day parade was a rainbow of T-shirts, each union sporting its characteristic colors. But how many of those are made in America by union members?

That's where Belinda Lader sees her niche. Lader, who was hawking her wares at the Labor Day post-parade party at Penns Landing, works for Geiger Bros., a Maine-based distributor of promotional products, from T-shirts to coffee mugs. Lader, of Lafayette Hill, combs through the company's catalog to find the products that are both union-made and made in America. "I do a lot of research," she said.

It can get really complicated.

"When I work with Unite Here (the garment workers' union), my work gets even harder, because you have to make sure the manufacturer employs the Unite Here union and those manufacturers are few and far between," she said.

One thing obvious from watching the parade is that unions use a lot of T-shirts. So there's definitely a market for Lader's products. But are unions willing to pass up cheaper imports and pay extra for shirts made by their brethren? Lader hopes so. ""The problem is that unions need to come together and buy USA-made items."

- Jane M. Von Bergen

Ed Rendell's second "Pennsylvania International Week," a once-a-year chance for local companies to get exporting advice and pitch wares to a roving band of foreign tade representatives without leaving home, actually runs for two weeks this year. Perhaps it should be renamed the "Pennsylvania International Fortnight" to be truly international. (Yes, fortnight means "fourteen nights" a.k.a. two weeks in Middle English). And somehow the acronym PIF seems catchier than PIW. Anyway, the merry band of money-makers starts Wednesday in western Pa. and moves across to state, arriving in the Philadelphia region on Sept. 18. The schedule and flyer is here, the state agency's website is here. Its local host is the World Trade Council of Philadelphia, which probably could use the boost.

- Thomas Ginsberg

Just in time for the PIF (see yesterday's post on exporting), Fortune magazine has released its latest list of best and worst and richest companies, etc, and it turns out that only one Philadelphia-area company made the magazine's newest list of the 100 fastest-growing public companies. Sure, NutriSystem Inc. (NASDAQ:NTRI) did come in No. 1 with a three-year EPS growth of 433 percent. (Oh, in the spirit of disclosure: NTRI's chief executive officer, Michael Hagan, is a co-owner of The Inquirer, and Inquirer chief Brian Tierney is on NutriSystem's board.) Still, it was not a great showing overall for the country's fifth-biggest metro area. On the other hand, this region did fare better among private companies listed by Inc. magazine last week. So much for lists.

- Thomas Ginsberg

Perhaps it was inevitable, but Vanguard Group and four other big money managers now have become the targets of a stepped-up divestment campaign aimed at ending the "genocide" in Darfur. A group called the Save Darfur Coalition (www.savedarfur.org), based in NYC, announced the second stage of its divestment campaign today. The other investment firms are Franklin-Templeton, J.P. Morgan Chase, Capital Group-American Funds and Fidelity Investments. The group says the aim is get the firms to withdraw their funds from companies doing business with Sudan "to exert financial pressure on the government of Sudan to change its policies and bring peace to the people of Darfur." We're putting in a call to Vanguard. A bunch of Inquirer and Daily News stories are here on Darfur and local divestment drives. More to come.

- Thomas Ginsberg

The Philadelphia Stock Exchange, led by chairman Meyer Frucher, has finalized its settlement of a class-action lawsuit instigated by a former floor trader alleging that the PHLX bungled its sale to six investment houses in 2005 (UBS Securities LLC, Morgan Stanley & Co. Inc., Citigroup Financial Products Inc., Credit Suisse First Boston, Citadel Derivatives Group LLC and Merrill Lynch, Pierce Fenner & Smith Inc.) Their lead law firm, Berger & Montague P.C., says the plaintiffs will divvy up between $67 million and $80 million from the PHLX.

Says Lawrence Deutsch of Berger & Montague: "We are pleased by this settlement which is a fine result for our class. This result also upholds the rights of all shareholders to successfully challenge a board's actions in a dilutive transaction."

No comment from Frucher or the PHLX. But the finalized deal clears a liability and comes just in time, because Frucher now wants to sell the PHLX again.

- Thomas Ginsberg

As we noted below, SaveDarfur.org has now turned its sights on Vanguard Group Inc. We asked Rebecca Cohen, a Vanguard spokeswoman in Valley Forge, to respond to SaveDarfur.org's divestment campaign against the investment firm (and others). She explained, as we suspected, that two of the three funds in question are index funds guided by benchmarks over which Vanguard has no direct control. The third is actively managed by Vanguard in conjunction with Wellington Management Co L.L.P., a separate firm over which Vanguard claims to have no direct control (but with which it does have a long, mutually beneficial relationship through founder Jack Bogle.)

All as expected. But then Cohen said this, too:

"Back in the 1980s, we did not divest from South Africa either. ... We did not divest from South Africa. If it's illegal due to government regulations, we won't invest. But as long as we meet all regulations, the actively managed funds will seek the highest return."

Think whatever you want about ethical investing and economic sanctions. But even in hindsight about a rotted system like apartheid, you gotta give Vanguard credit for intellectual consistency in its refusal to buckle to divestment campaigns. Apartheid fell without Vanguard's help. Maybe Darfur also will be saved no thanks to Vanguard.

- Thomas Ginsberg

The executive consulting firm Vistage International, based in San Diego, says today that its latest survey of "business leaders" in Philadelphia conducted this past August has found that their confidence in the national economy in the third quarter has dipped along with CEOs nationwide, and some plan to put investments "on hold" to brace for a slowdown.

The survey (Download the press release) found that 115 regional chief executives of small- and mid-sized businesses who responded to the survey had a Confidence Index of 81.5 percent. That's 3.4 points down from 84.9 pecent in the prior second quarter. It's down 5.1 points from 86.6 percent a year earlier. The national index is also down to 81.4 percent.

Unfortunately, the survey does not ask the local CEOs what they feel about the local economy. And just 115 people answered the survey (taken in the middle of vacation season Aug. 16-24), giving the local results a pretty big margin of error - almost 8 percent, compared with 2 percent for the national survey. So it's probably best to take this survey as an anecdotal round up of opinions on national trends - for what that's worth. The 115 local execs generally expect a slowdown, but not a turndown, in the national economy. Vistage said they "still expect strong growth in their revenues and have no plans to cut payroll. Just like the prior quarter, recruiting and retaining talent is the most important challenge executives face, although uncertainty about the economy may slow hiring."

Vistage quotes its consultant on the survey, Richard Curtin, director of consumer surveys at the University of Michigan at Ann Arbor, as saying: “Of the Philadelphia business leaders surveyed, the concern is not only about the economy, but also about the availability and cost of credit to their companies. Because of this, executives plan to put some of their planned investments on hold for the remainder of the year.”

Vistage quotes its Mid-Atlantic regional vice president, Michael Hagy, formerly of Pinnacle Performance Group in Philadelphia, as saying: “CEOs are apprehensive about their company’s optimism going forward in the up-coming quarters. As well, our members are resistant to downsizing their productivity, they feel a sense of security keeping a steady pace rather than growing their company during the current financial slump. They’re watching their steps a little more than they have in the past.”

- Thomas Ginsberg

Comcast Corp. (NASDAQ: CMCSA), the second-largest high-speed Internet provider behind AT&T Inc. (NYSE:T) is denying accusations made by bloggers that it's restricting users' access to the popular video-sharing service BitTorrent.

The bloggers, though, say they aren't buying Comcast's denials and their concerns have been heard on top Tech Web sites including Cnet.com, Slashdot.org and The Register, creating a public relations headache for the Philadelphia-based company. More than 240 people have commented about the issue on the news-sharing site Digg.com, most of them critical of Comcast. Some articles have gotten thousands of Diggs, or recommenations.

Charlie Douglas, a Comcast spokesman, told us: "We're not blocking access to any applications, including BitTorrent. We don't look at specific customer activity on the Internet or track what Web sites people go to."

Christopher Yoo, a professor at the University of Pennsylvania Law School, gave credence to Comcast's denial by saying the company probably has no incentive to thwart users of BitTorrent and noted that the BitTorrent problems aren't happening to all Comcast users. "Comcast has every incentive to make its network as attractive as possible to users while at the same time keeping up with the bandwidth," he said.

But John Palfrey, head of the Berkman Center for Internet and Society at Harvard Law School, gave us a different take. "ISPs have a bunch of reasons not to like things like BitTorrent. If you are an ISP, what you want is for people to send simple emails from grandmother to grandchild."

The Washington Post says today that Comcast is now actually sending warning letters and cutting off service.

Pray for Gerald Cuddy. He runs Philadelphia’s newest public banking company, Beneficial Bank, which is also one of its oldest. And, believe it or not, it's now the largest Philadelphia based bank with over $3.5 billion in assets. Beneficial Bank was known as Beneficial Savings Bank until July 26, 2007. It was established in 1853 and has a most interesting history of serving the immigrant Irish population of Philadelphia.

Beneficial Bank's parent, Beneficial Mutual Bancorp (NASDAQ:BNCL) recently had a public offering of 44 percent of its stock to affect the acquisition of FMS Financial Corp. (NASDAQ:FMCO) of Burlington Township (owner of Farmers & Mechanics Bank of the same city) as well as add to its capital for additional expansion. So far so good!

However, looking at Beneficial’s recent performance, one can understand why the directors sold only 44 percent, thereby keeping the controlling interest to themselves: performance has been dismal. For the second quarter of 2007, the company reported earning $1.9 million, or a paltry annualized 2.72 percent on average equity. That compared with $2.4 million for the same quarter last year. You can earn more in a money market account. And for the first six months of 2007, it earned $3.7 million versus $5.2 million for the same period in 2006.

When Holtec International Inc. Chief Executive Krishna “Kris” Singh founded his company in 1986 to develop technology to increase the amount of spent fuel rods that can be stored in nuclear power plants, he figured customers would flock to him. He couldn’t have been more wrong.
“I am not a natural salesman,” Singh, 60, told PhillyInc. “In the early years of Holtec’s business, I struggled with it.”

Eventually, he overcame his weaknesses as a salesman and convinced the nation’s nuclear power industry that Holtec could help them address the problem of storing radioactive spent fuel rods. Sales at the closely held Marlton-based company then took off, as did the profits, which Singh declined to disclose.

The company, which Singh says has an order backlog of $3 billion, has about 300 employees. Holtec says its technology is used in reactors in the U.S., Canada, China, Mexico, Spain, Switzerland, Korea, Brazil, the United Kingdom and Taiwan.

Earlier this month, Holtec grabbed headlines when it won a 200 million euro ($269 million) contract to design, license, establish and commission a fuel storage facility at the Chernobyl facility in Ukraine, the 1986 site of the worst accident in the history of nuclear power. The company plans to employ 60 to 80 people in Ukraine and is looking to buy and office building in the country's capital of Kiev.

Notably, Singh said he takes $1 from his salary each year and has his company donate the rest to his charitable foundation. Singh’s foundation has donated $20 million to his alma mater, the University of Pennsylvania’s School of Applied Sciences and Engineering, to create the Krishna P. Sing Center for Nanotechnology. It was the largest gift in the history of the engineering school, where he got has Phd.

PhillyInc: For people who haven’t heard of Holtec, can you briefly describe it?
Singh: Our company is essentially an energy technology company. … Our main focus is to develop equipment so power plants can operate more efficiently and more safely …. Most of our revenue comes from commercial nuclear power.

We love when John Rowe, CEO Exelon Corp. (NYSE: EXC), opens his mouth. The owner of Peco Energy Co. here and Commonwealth Edison in Chicago almost always tosses out some unexpected pearls of frankness or at least exuberence. Maybe it's his Midwestern lack of pretense. Anyway, last week on CNBC he was asked about Exelon's $747 million settlement in an Illinois rate case inucurred by its profitable power-generation division. He played down the predictable and simmering talk of breaking up Exelon. But he did it so entertainingly:

"Look at this city behind you. Would you want not to provide service to this great city? Look at downtown Philadelphia. Would you not want to be their service provider? We believe in the long run there’s still strength in having the two companies together. Our investors are divided on the subject. So are some of my managers. As long as both companies are treated in accordance with the rules that apply to them, I think there’s strength for the consumer and strength for the investor. I love this city and it would be hard to give up turning on its lights.”

He was also asked about Exelon's outlook for acquisition of wind or solar generation, and mixed his metaphor so nicely:

“Lust springs immortal, but we’re not the only one who sees their value, so the prices tend to be very high.”

- Thomas Ginsberg

Phil Goldsmith, former managing director of the city of Philadelphia, and now chief of Ceasefire PA, recently spoke with Inquirer columnist Monica Yant Kinney about businesses stepping up to help addess the worsening problem of violence and guns in the city. Not usually one to hold his tongue, Goldsmith opened fire (sorry) on business people for being more talk than action. Yant Kinney gave us her unpublished notes on the short conversation, printed here with Goldsmith's permission:

Yant Kinney: What will it take to get outcry from the business community and/or the rest of white/powerful Philly about the violence? Will it really take the shooting of a kid from Penn?
Goldsmith: Unfortunately, the answer is yes. If the homicides were occurring in Center City, God forbid, as opposed to where they do occur, you would have a much more engaged business community, a much different rallying impact. ... The business community, the Chamber [of Commerce] is actually on record in favor of one gun per month. They’re in favor of reporting lost/stolen [guns]. It’s one thing being in favor of something. It’s another actively getting your constituents involved.

Yant Kinney: Has the business community been asked to get involved?

Goldsmith: I don’t know if they’ve been asked, but I don’t think they have to be asked. My point is, what’s going on in Philadelphia, as well as in Reading, as well as Lancaster, as well as Allentown, this is just not a Philadelphia issue. It’s having an economic impact in the city. When Philadelphia makes the national news as it has, the past several months, there’s no way in the world that helps the business community, economic development or tourism in that city. It shouldn’t take having a white kid killed in Center City to galvanize the community in this city. It shouldn’t be that difficult for people to connect the dots. They know what to do if they want tax breaks. This is as important to the vitality of this city as well as the livability of the people who live here.”

Goldsmith also said, in a paraphrase from Yant Kinney, that the first thing businesses and universities ought to do is have a "more vocal role" in Harrisburg, where legislative efforts to fight the problem consistently have faced impasses or been watered down.

We intend to ask the Chamber for response. Yes, the Chamber, led by Joseph Frick of Independence Blue Cross, and some other business people have been speaking up and taking some action about the violence and the need for busineess community involvement. But are they the exception? Tell us: What other business people are really stepping up? Funeral directors?

- Thomas Ginsberg

The Morning Call says today that Gene Sobol, the retiring CFO of KNBT Bancorp (NASDAQ:KNBT), which is selling itself to National Penn Bancshares Inc. (NASDAQ:NPBC) of Boyertown, stands to $1.4 million in lump-sum payments and $16,000 per month for up to 18 months to work as a consultant to National Penn. As a consultant, he also will get an automobile allowance of $900 per month and continued medical insurance coverage. The paper says the other KNBT executives getting a nice payday from the transaction include CEO Scott Fainor, who will stay to work at National Penn) and Executive Vice President Sandra Bodnyk, who also is staying at National Penn.

- Thomas Ginsberg

Nicholas S. Schorsch, who was ousted last year from the REIT he founded, American Financial Realty Trust, doesn't see the $1.5 billion initial public offering of his new REIT called American Realty Capital Trust Inc. as a comeback or a return from the dead.

"The last time I checked, I hadn't died yet," Schorsch told PhillyInc in an interview from his office in New York City.

Whether Wall Street finds his spunk inspiring remains to be seen. Shares of Real Estate Investment Trusts, or REITS, have gotten pounded this year amid worries about the meltdown in the subprime mortgage market. The concerns have also have reached the commercial area. CB Richard Elis Group Inc., the largest commercial real estate broker, was downgraded yesterday by Goldman Sachs Group Inc. because of worries about a slowdown.

But Schorsch told us he is convinced that the time is "ideal" for his new REIT based in Jenkintown to go public.

"We have long-term leases with 100 percent occupancy," he said, adding that his company will focus on mid-range properties. "The market is good for the investor because it gives really stable returns."

His new American Capital Reality is focusing on single-tenant retail properties net-leased to investment grade or other credit worthy clients. These properties are a better investment than malls or office buildings because, his filing yesterday said, they "generally require less management and operating capital and have less recurring tenant turnover. ... In addition, since we intend to acquire properties that are geographically diverse, we expect to minimize the potential adverse impact of economic downturns in local markets."

As MarketWatch notes, analysts questioned Schorsch's strategy at his old firm of focusing on smaller commercial space instead of large marquee properties. Former American Financial Realty board member William Kahane has also joined American Capital Realty. Harold W. Pote, who succeeded Schorsch at American Financial Realty, died in June while vacationing in Turkey. The Jenkintown company is conducting a search for a successor.

- Jonathan Berr

Putting his money where his mouths is? Five days after playing down the collapse of a $5.47 billion sale agreement of his Radian Group Inc. (NYSE: RDN) to rival MGIC Inc. (NYSE:MTG), Radian Chief Executive Sanford A. Ibrahim - along with non-executive chairman Herbert Wender and some major investment groups - has turned around and bought shares in their mortgage insurer.

Ibrahim personally bought 15,000 shares valued at $256,900. And chairman Wender shelled out about $56,800 for 3,400 shares on that same day. They were the first stock purchases made by Radian insiders in the open market in more than two years, according to InsiderScore.com. Granted, they were not huge amounts. But they were signs of confidence nonetheless at a bad time in the housing market.

And they were not alone. The same day, Third Avenue Management LLC, a New York-based investor, quadrupled its stake in the company. Other big investors, including Canadian mutual fund manager AIC Ltd. and hedge fund manager D.E. Shaw & Co., also have boosted their investments in Radian, according to Bloomberg News.

- Jonathan Berr

Once again, the Henry F. Kaiser Family Foundation's annual health insurance survey, released yesterday, showed that health insurers' efforts to sell high-deductible health plans haven't met with much success, particularly in larger firms.

That's because, Kaiser researchers said, employees, when given a choice, aren't tremendously excited about having to pay high deductibles, especially if they are low-income and even more especially if their companies don't help them fund the deductibles through a savings or reimbursement program.

That's Kaiser's take, but Ivy Silver, a benefits consultant and president of Commonwealth Consulting Inc., in Jenkintown, has seen a different trend. Yes, companies are looking at these high deductible plans, but they are adopting them with a little twist, she said.

Instead of across-the-board high deductibles, companies, Silver said, are carving out certain benefits, such as surgery, and making just that portion high deductible. Then the companies are self-insuring for that particular deductible. True, they have to employ a half dozen h.r. specialists to sit with their fingers crossed, hoping that nobody has to pay a visit to the OR. But, Silver said, they get a break on the cost of their premiums.

So why do insurance companies keep pitching these products? Kaiser officials had an answer for that too. They pitch them because they are the only real innovation -- other than disease management -- that the insurance companies have to offer.

- Jane M. Von Bergen

Not sure what to make of this. But we've now heard of two sightings of Christmas Trees already for sale or display in Philadelphia department stores. ("Now" as in early September, more than three months before Xmas.) Boscov's put up a display of trees for sale a few weeks ago. And today a post at MetroBlogging says Macy's in Center City (the old Lord & Taylor) had the makings of a Christmas Tree display on its main floor. No Xmas decorations or discounts. Just trees. Anybody else seen this?

- Thomas Ginsberg

The saga continues: The No. 2 shareholder in Mace Security International Inc. (NASDAQ: MACE), the beleaguered security products company in Mount Laurel, says in an SEC filing that Mace had asked Richard Barone, who heads its No. 2 shareholder Ancora Capital Inc. of Ohio, to join the board of directors in place of Matthew Paolino - brother of Chief Executive Louis D. Paolino Jr. - as Mace looks to avoid a showdown with the top shareholder Lawndale Capital Management L.L.C.

Barone told PhillyInc he was surprised by the offer. He tells us that hadn't sought the job. And that's not all. "I've never talked to a single person over there. They don't know me," he told PhillyInc.

Either way, Barone is not getting a seat and Paolino isn't getting his support. According to the Ancora filing, Barone was offered the seat during a Sept. 7 telephone call from Mark Alsentzer, who chairs Mace's nominating committee. In exchange for the seat, Barone was expected to back the company's slate to the board of directors at the annual meeting this coming December. But not only did Barone turn down the offer. He also gave his backing to Lawndale Capital's board nominees. Like Lawndale, Ancora has grown frustrated with Mace's poor performance, including the 20 percent decline this year in its stock price.

Says the Ancora filing: "Mr. Barone noted the consistent operating losses over the past five years, a program of failed acquisitions, the inability to achieve operating efficiencies, the incident of fraud at the middle management level, the extraordinary high legal expenses associated with the hiring of alleged illegal aliens, and a compensation structure which rewards failure instead of success."

Lawndale, which has a 9.6 percent stake in Mace, called for Matthew Paolino's ouster from the five-person board in June. The investor also called for the board to be expanded to seven and proposed three people to fill those vacancies. None of the nominees have been contacted by Mace's independent directors, Shapiro said.

"It was actually a very hostile act toward our proposal," Shapiro said, adding that Lawndale was "very gratified" that Barone turned down Mace's offer.

Since Paolino is balking at expanding the board, Shapiro said he would consider a "less desirable alternative" of keeping the board at five instead of expanding it to seven. That's provided that a sufficient number of independent directors are new.

"Under this scenario, four of the five Mace board members would be independent, and three of the five would be new to Mace's Board," Lawndale said in a separate filing. "Lawndale believes, given the operating history and oversight experience of the nominees it submitted, either proposal it has made to Mace's Board would result in an improved board."

- Jonathan Berr

We've heard about romances and businesses in Second Life. Now, a wage dispute between IBM (NYSE:IBM) and its Italian workers in the real world is spilling into the alternate online world.

Their union, Rappresentenza Sindacale Unitaria, in conjunction with Union Network International, is sponsoring the first-ever, they say, online strike, asking avatar workers around the world to go picket IBM's Second Life online presense. Read more about it here. (Pictured is IBM board chairman Samuel Palmisano's Second Life avatar.) Avatars are stand-ins for people in Second Life.

It's no surprise that the IBM workers have been innovative in their approach to labor relations. In the United States, IBM contractors formed Alliance@IBM to work through the thorny issues involved in the increasingly-gray zone between being an independent contractor (lots of work, no benefits) and an employee (lots of work, benefits).

Alliance@IBM eventually affiliated with the Communication Workers of America, which is helping to coordinate the Second Life strike in the United States. The Italian workers have circulated an email explaining how to join Second Life.

Here's the fun part -- IBM's corporate Web site home page poses a question: "Could Your Avatar Teach You To Become a Real Life Leader?"

Well, let's see how they do in resolving the Italian wage dispute.

- Jane M. Von Bergen

So who’s going to buy Godiva chocolates? No, not the boxes in the store — the business unit up for sale by Campbell Soup Co. (NYSE:CPB) The world’s biggest maker of bulk chocolate, Barry Callebaut, AG, in Zurich, just said no, turning down $500 million in annual sales. Lindt & Spruengli AG, the Swiss manufacturer of Ghirardelli chocolates, is looking into it, Bloomberg News reports. Analysts say bidders may pay as much as $1 billion for the Godiva.
- Jane M. Von Bergen

Bloomberg this morning quotes unnamed insiders as saying that, yes, Campbell Soup Co. (NYSE:SOUP) is asking $1 billion for Godiva. Previous posts here and here.

The U.S. Chamber of Commerce today sent a letter to members of Congress opposing U.S. House of Representatives bill 1644, the "Re-Empowerment of Skilled and Professional Employees and Construction Tradesworkers Act," or RESPECT. (Someone must have stayed up all night working on that acronym.)

This is the perennial issue about how to classify a worker who spends part of his time as a supervisor. For example, some nurses take turns being in "charge" on their floors on overnight shifts. They may be in charge of a handful of workers on a Thursday night. Then on Friday night, someone else is in charge. Or there may be a lead carpenter dividing up tasks among several others at a job site.

The AFL-CIO, the nation's largest labor federation, also wrote a letter. Unions say that these workers should be included in collective bargaining units and be permitted to receive overtime like other hourly workers, because their responsibilities, even as supervisors, are narrowly defined and don't include, for example, the power to hire, fire or demote. They say that companies will require workers to spend a small portion of their time as supervisors simply to remove them from union ranks.

The Chamber's position is that allowing these kinds of workers to be in unions creates a conflict because management workers would be subjected to union rules and union discipline. The provision, it says, flies in the face of 50 years of labor and will end up pushing more management workers into collective bargaining units.

The debate rises from a series of National Labor Relations Board cases on this topic known as the Kentucky River or Oakwood cases (see Inquirer stories here). Even the NLRB has not really been able to sort this out, which is why it is becoming a matter of legislation.

- Jane M. Von Bergen

Back in June on the heels of Vernon W. Hill's ouster from Commerce Bancorp Inc., we pondered whether Pennsylvania Commerce Bancorp Inc. (NASDAQ: COBH) and/or its principal subsidiary, Commerce Bank/Harrisburg N.A, also somehow may have been involved in some of the transactions that lead of Hill's removal as CEO of Commerce Bancorp Inc. (NYSE:CBH) in New Jersey.

Well, it turns out the Feds may have had the same idea. Pennsylvania Commerce Bancorp Inc. announced two weeks ago in an SEC filing that the U.S. Office of the Comptroller of the Currency (OCC), the bank's federal regulator, is conducting an "investigation" of its subsidiary, Commerce Bank/Harrisburg, N.A. “that includes transactions related to (i) Bank premises, (ii) Bank officers and directors including their affiliates; and (iii) current and former officers and directors of Commerce Bank, N.A.” News story on the investigation is here.

That may or may not involve Hill, the former CEO of Commerce Bancorp. Inc. and/or his wife’s design firm, InterArch Inc. but it will be interesting to find out. Perhaps there is nothing amiss and the Feds simply want to spend some time in the Harrisburg area during fall foliage.

One good thing about our securities laws is that public companies are legally bound to disclose significant events affecting their business. Often we think the disclosure laws do not go far enough. But half a loaf is better than none at all.

Stay tuned.

- Larry Jilk is a former Pennsylvania bank executive, who does not own any COBH or CBH stock but does own stock in several commercial banks headquartered in Pennsylvania.

Opinions expressed by contributors to PhillyInc are exclusively those of the contributors.

Sometimes it pays to have local alumni. Philadelphia-based law firm Duane Morris LLP and Villanova Law School alumni at the firm say they will donate more than $530,000 toward construction of a new educational and research building at the law school. The new 174,000-square-foot building will also be used for clinical and pro bono work. The firm says about 30 of its attorneys (out of 600 in the firm) had attended Villanova School of Law. Villanova Law School Dean Mark A. Sargent said the gift would help the school reach its fundraising goal for the building and ``encourage other firms and donors to emulate Duane Morris’ example.’’

- Chris Mondics

College students, listen up. The best-paying jobs out there are in engineering, judging by the job offers received by the class of 2007.

The National Association of Colleges and Employers reports that starting salaries for 2007 chemical engineering grads rose 5.2 percent to $59,218 -- the highest pay in any field. Electrical engineers also saw initial job offers in the mid $50,000s. Looking at the numbers by which discipline saw the biggest rise in starting salaries, the engineeers have managed to engineer a nice boost -- civil engineering salaries are up 6.3 percent to $48,998.

Indeed, all business, computer science, engineering, and information technology graduates are beginning with job offers in the $40s. Accounting may have slowed up some. Pay is still great at $46,292, but it's only up 3 percent over the previous year. Only marketing graduates came in under that, at $39,269 -- but that's up 5.6 percent from last year, said the Bethlehem, Pa.-based association, which tracks hiring and salaries of college graduates.

Here's what's remarkable -- or maybe not, given the way the world is -- political science/government majors managed a rise of 6.5 percent, but they still earn a relatively minor $35,261 to start on average. It's also amazing that history majors managed to bring in offers of $35,092, up 6.1 percent. The sad news is that average salaries for liberal arts majors remained stuck in the mid-$30s. And English majors? A paltry $31,924, up a mere 1.7 percent, less than the rate of inflation. (As a writer, I give that a big SIGH.) What's going on with that? We keep reading that people with communication skills are in short supply.

Other news from NACE: Employers predict they will hire 16 to 17 percent more new college graduates in the 2007-2008 class than they did in the previous class.

- Jane M. Von Bergen

Michelle Leder, creator and author of Footnoted.org, has been saying that public companies seem to be increasingly blaming their financial woes on the subprime mess. And it may be true. But this is an awfully tenuous way to prove the point.

Looking over the latest 10-K from Orleans Homebuildings Inc. (AMEX:OHB), Leder writes today that she realized the company uses two different spellings: subprime and sub-prime. In case you were wondering, journalists sometimes make their very sophisticated estimates of trends by merely searching for a term in a database, then citing the number of times it pops up. But they usually remember to count all spellings and variations of a word. Turns out Michelle was only searching for one spelling of the word (she doesn't say which) instead of both. Now using both search terms in 10K Wizard, Leder has roughly doubled her count of the number of times companies that have cited the mortgage meltdown in their filings from 788 to 1,255 in August.

Theoretically this should not change her conclusions, just the number of references. We'll give Michelle credit for finding something interesting in the Orleans 10-K, which we didn't. And for owning up to her mistake.

- Thomas Ginsberg

Parkway Corp. Chief Executive Joseph Zuritsky, whose father Herman founded the company in 1936 and whose son Robert is president, has watched his nearly 40-year interest in koi fish morph from fascination to hobby to a side business called Quality Koi Co.

Quality Koi is based on a 43-acre converted asparagus farm in Carneys Point, N.J. It has 28 ponds measuring 50 feet by 150 feet, and four larger ponds between a quarter of an acre and 1 acre each. Zuritsky, 67, said he speaks on the phone with Matt McCann, who manages the operation, about twice a day and visits the farm in person about every 10 days.

In an interview with Jonathan Berr for PhillyInc, Zuritsky said he can indulge his interest in koi because he’s confident in the management team at Philadelphia-based Parkway, which very much remains a family affair. His daughter Anna Z. Boni is vice president for risk and claims management. His sister Etta Winigrad is a senior vice president and Etta’s son Jake Winigrad also is a Parkway vice president.

Parkway has 100 locations with 30,000 parking spaces in nine markets including Philadelphia and also designs and develops parking garages and commercial properties.

PhillyInc: What lessons did you learn about business from your late father?
Zuritsky: He was not the typical full-time entrepreneur. He gave me room to grow. (For the next generation) I gave them space. I let them learn on their own as I have done.

Hope van Beuren, whose grandfather John T. Dorrance invented condensed soup in 1897, and her husband John recently unloaded more shares of Campbell Soup Co. (NYSE: CPB) than they have in years. The van Buerens, who report their holdings to the Securities & Exchange Commission separately, have reported transactions valued at more than $83 million from selling Campbell's stock over the past 18 months, according to InsiderScore.com (reg. required). They stepped up the pace of their sales significantly this week.

On September 11, Hope Van Beuren sold more than 304,000 shares, her biggest one-day sale since at least 2004, while John van Beuren disposed of more than 234,700, his biggest sale since 1998, according to InsiderScore. John van Beuren also sold another 4,800 shares a day later. And Hope van Bueren disposed of 56,500 shares on both September 10 and September 7.

No word on what prompted the sale. The van Beurens didn't respond to requests for comment left with one of their lawyers and at their foundation in Newport, Rhode Island. A Campbell spokesman also didn't respond to a request for comment.

The van Beurens and other Dorrance heirs in the past have sold large amonts of shares. Individuals whose wealth is tied to one stock do sell shares from time to time for a variety of reasons. Wall Street's sentiment toward Campbell is lukewarm at best. Its shares have dropped more than 8 percent this year amid worries about rising costs. Recently Campbell has begun trying to sell its Godiva chocolate business for more than $1 billion to focus on soup.

With a fortune estimated at $1 billion, Hope van Beuren ranks 297 on the Forbes magazine list of the 400 Richest Americans, which features her cousins Mary Alice Dorrance Malone (No. 140) of Coatesville, Pa. and Bennett Dorrance (No. 153), who both sit on the company's board.

- Jonathan Berr

Everybody has an angle. See Tom Belden (our colleague) at Road Warrior on the Kyle Ebbert-Southwest Airlines dustup. Can't make this up.

Kurt J. Hilzinger, the 46-year-old president of AmerisourceBergen Corp. (NYSE: ABC) in Valley Forge, has quit and prompted a reshuffling at the drug distributor. The company said in a statement that Hilzinger has left to join an unnamed private equity firm and praises his "leadership, hard work and insights" over 16 years.

No word on when Hilzinger left. But the statement by CEO R. David Yost makes it seem the reshuffling has been in the works for awhile and notes "we had been reviewing our future organizational structure for some time. ... Subsequently, with the resignation of Kurt, we have finalized an organization which will create the future infrastructure and cost structure that ensures we will continue to increase our efficiency and effectiveness.”

From the statement:

• In place of Hilzinger, the COO job will go dark and Yost will assume the position of president. Yost assumes direct leadership of AmerisourceBergen Drug Corporation with the executives heading Sales and Marketing, Supply Chain Management, and Operations functions reporting directly to him.


• Steven H. Collis will be promoted to Executive Vice President and will continue as President of AmerisourceBergen Specialty Group reporting to Yost. He adds new responsibilities for shaping the Company’s policies and strategies and for more closely integrating the Specialty Group across AmerisourceBergen.


• Michael D. DiCandilo continues as Executive Vice President and Chief Financial Officer, adds additional responsibilities, and continues to report to Yost.


• Thomas H. Murphy, Senior Vice President and Chief Information Officer, will report to DiCandilo


• Ed Hancock, President of AmerisourceBergen Packaging Group, will report to DiCandilo.


• Mark Hollifield, President PMSI, will report to DiCandilo.


• Terrance P. Haas will be promoted to Executive Vice President and Chief Integration Officer, leaving his position as Senior Vice President and President of AmerisourceBergen Drug Corporation (ABDC). In his new role, which reports to Yost, he will lead the multi-year implementation of an Enterprise Resource Planning (ERP) information technology system for the Drug Corporation within the Company’s current capital and expense structure.
  
• Joining the AmerisourceBergen Executive Management Committee, which already includes Yost, Collis, Haas and DiCandilo, will be John G. Chou, Senior Vice President, General Counsel and Secretary, and Jeanne B. Fisher, Senior Vice President, Human Resources. Chou and Fisher will also become Executive Officers of the Company.

- Thomas Ginsberg

Howard Gittis died last night in NYC. His office has sent out notices today. The Philadelphia-area native has been Vice Chairman & Chief adminstrative officer of MacAndrews & Forbes Holdings Inc., the holding company of Ronald O. Perelman, for the past 22 years. Gittis' office says he was "Ronald's closest friend and advisor and business partner." Gittis served on the boards of most of MacAndrew companies including Revlon, Panavision, Scientific Games, Allied barton Security Services, Harland Clarke and M&F Worldwide, where he had been chairman and CEO.

Gittis' impact in the Philadelphia area was huge, even after he moved to New York in 1985. He was a partner and chairman of the executive committee at Wolf, Block, Schorr and Solis-Cohen LLP, where he worked for 25 years. Gittis' office notes that he had been Chairman of the board of trustees of Temple University, where the Howard Gittis student center is named for him. Here's a profile in the Temple Times a few years ago. He was also a memeber of the boad of overseers of the University of Pennsylvania Law School, where Gittis Hall and the Gittis Center for clinical and legal studies are named for him. In politics, Gittis was also a heavy weight. Since 2004, he has donated more than $240,000 to Democratic and Republican candidates and committees.

- Thomas Ginsberg

College students in the greater Philadelphia region (meaning everything from Paoli to Princeton) contribute $2.2 billion, or about $8,000 per year per student, to the regional economy. (Parents, can you imagine?!! The answer, probably and painfully, is yes. Think about the book bill alone!) This statistic comes from Select Greater Philadelphia, which today released a study showing how higher education impacts the greater region's economy. Select Greater Philadelphia is an organization that markets the area to businesses. By the way, that $8,000 does not include room, board and tuition.

The group points out that the higher education sector contributes almost 7 percent of the region's jobs, or 210,600 jobs, which average $63,200 in annual pay. The gross economic impact is $15.2 billion in the larger region, which it defines as stretching from Mercer County to Salem County in New Jersey, and including the city and its surrounding counties in Pennsylvania.

Beyond the $15.2 billion is the $3.7 billion set aside for capital projects at area colleges and universities over the next five years. These projects will employ in 5,555 on construction sites, indirectly providing work for 4,200 more. The area's schools typically spend between $400 million and $500 million on capital projects, the study says.

All this spending produces quite the education machine, churning out 67,169 degrees in 2004-05 academic year, the most recent year included in the study. Of those, nearly a third were advanced degrees, which yield the highest salaries for their recipients, the study said.

How many of pizza-eaters are there in the area? All together 359,511 full and parttime students are enrolled in area colleges, the study said.

- Jane M. Von Bergen

In response to our poll (see left side of this page) and post on Philly businesses and Philly gun violence, this came today from the new blog of the Greater Philadelphia Chamber of Commerce:

Recently, some of Philadelphia's jounalistic community have questioned the role of the business community in making Philadelphia's neighborhood safer (http://blogs.phillynews.com/inquirer/phillyinc/2007/09/goldsmith_tells_businesses_to.html). Here's what our President & CEO, Mark Schweiker, has to say about it:

The Chamber's primary mission is regional economic development. Still, even more important than the fate of our economy is the future of Greater Philadelphia and in particular, Philadelphia's families. As a parent, I share in the sadness of the victims' loved ones at the senseless violence that we are enduring. How to diminish if not eliminate this violence is a condition which many leaders are addressing.

Let me mention that the business community has been a steadfast participant in efforts to reduce violence. Our political efforts range from the Chamber's 1999 testimony in Harrisburg in favor of one-gun-per-month sales legislation to our recent testimony in July in support of Philadelphia's efforts to pass gun laws more restrictive than the state's. Financial efforts and backing include the record-setting workplace donations to United Way of Southeastern Pennsylvania in 2006 as well as the millions of dollars which individual corporations donate directly to social service agencies.

To offer opportunity to Philadelphia's youth, it delights me to know and report to you the final tally on our Working Solutions program. It stands at 1,049 interns. That's right. We coordinated the successful placement of 1,049 interns in employer-paid positions last summer. While there is still much more to be done, I am proud that our collective efforts indirectly help to reduce violence and inspire safer neighborhoods.

We will never cease in our efforts to support making this city safer and, in turn, this region more prosperous.

AstraZeneca P.L.C. (NYSE:AZN) has been signaling for awhile that it's going to outsource more of its manufacturing work. Or is it? Last week the Times of London quoted one of its European executive as suggesting that research and marketing, not manufacturing, is a "core activity" and detailing a shift to China and India, among other places. But now AstraZeneca tells Ed Silverman at Pharmalot and Gary Haber at the Wilmington News Journal (where AstraZeneca has its U.S. HQ and hundreds of employees) that it actually does not plan to get out of manufacturing entirely. "Fully outsourcing supply and manufacturing activities, as implied in the article, is not part of the AstraZeneca strategy.

This subject is a delicate balancing act, of course, because public companies have to please investors, who generally like to hear about cost-cutting actions, and public customers and politicians, who often react against the loss of jobs. Is this is a case of journalists getting it wrong, or AstraZeneca just trying to soften the message?

- Thomas Ginsberg

Last week, Inquirer columnist Monica Yant Kinney wrote of her futile search for toys not made in China or elsewhere. It prompted a thoughtful note from Alan Dorfman of Basic Fun Inc. in Southampton, who suggests the government adopt a new labeling standard: Name of country where a product was manufactured AND where it was designed. As in "Made in China; Designed in U.S.A." Here's his whole note:

I write to comment on your article on U.S. toys and China manufacturing. I am president of a Philadelphia area toy manufacturer, Basic Fun Inc. (Southampton, PA). Basic Fun is proud to be the manufacturer of Monopoly, Etch A Sketch, Scrabble, Dora the Explorer, Sponge Bob Squarepants, Transformers, Pokemon toys and dozens of others toy products Our specialty is miniaturizing classic and popular toys and entertainment properties under license, into fully functional and figural keychain-scale toys. All of our products are designed here in Southampton, and are manufactured in China.

Heard In The Hall, an Inquirer blog, says today that the city along with Comcast Corp. (NASDAQ:CMCSA) is finally creating a new cable access system. It will be run by an entity called Philadelphia Public Access Corp. and will be available to Comcast customers. It's been several years in the making. One of its champions has been Gretjen Clausing. Some people think public-access TV has huge untapped potential as a promotional vehicle for small businesses. Then again, there's public-access entrepreneurs like Ugly George in NYC, who gained fame in the early 80's by convincing women to bare their breasts on Manhattan public access TV (now run by Manhattan Neighborhood Network. Stay, uh, tuned.

- Thomas Ginsberg

Ex-pharmaceutical research chief Tachi Yamada left Philadelphia and GlaxoSmithKline PLC (NYSE:GSK) more than a year ago. He now leads the global health program at the Gates Foundation. But perhaps his old pharma industry will still find a way to get some mileage from this: The Queen of England has named Yamada a "Knight Commander of the Order of the British Empire" in recognition of his work as chief of research and development at GlaxoSmithKline, headquartered in London. (See the Queen's list here and download the effusive statement here. Hey, perhaps this is just what Big Pharma needs to repair its reputation: a nod from Liz. It didn't hurt AstraZeneca PLC (NYSE:AZN) when its former boss, Tom McKillop, was given a knighthood.

- Thomas Ginsberg

Pacman or Sacman?

That's not surprising, because the Wharton graduate avoids the press like the plague. Forbes magazine describes him as a "highly secretive investor (who) commands one of the highest performance fees in the business." Cohen, also a major art collector, founded S.A.C. Capital Advisors L.L.C. in 1992 with nine employees and $25 million in assets under management. In February, the firm employed more than 700 people and had $12 billion in assets, according to the company's Web site.

Cohen probably didn't need too much encouragement to buy Cephalon since its shares are cheap, having plunged more than 11 percent over the past three months. Recently, it has confirmed that questions have arisen over its marketing of the painkiller Fentora for purposes other than what's allowed by the FDA. The company has denied any wrongdoing.

Cephalon spokeswoman Sheryl Williams, in an interview with PhillyInc, says: "We have had an amazing journey. It could be a simple as simple as the fact that they have paid attention to that story."

In a recent note to clients, UBS analyst Annabel Samimy reiterated her buy rating on the stock, saying the warnings over Fentora won't have any impact on future sales, according to the Associated Press, adding that the analyst estimates peak Fentora sales of $370 million.

- Jonathan Berr

Ed Rendell's econ development chief, Dennis Yablonsky, says the administration's 2007 survey of Pennsylvania businesses finds 77 percent projecting that they will "grow" in the next 12 months, something Yablonsky DCED calls "confirmation" of a "dramatically improving economy."

But in fact, the state agency's comparable survey a year ago found slightly more companies projecting 12-month growth. Sure, it was just one percentage-point more last year. And three-quarters is still a strong rate, no matter what. But we wonder if these types of breathless proclamations of improvement actually help businesses? It's interesting that the DCED does not provide a longitudinal comparison of results of this 10-year-old survey, something that professional, legitimate pollsters would do. We're going to ask DCED for all the surveys and will post the answer.

- Thomas Ginsberg

We asked and the DCED answered, and here is the reply:

Tom,

Click the link below and go to the 3rd link down: BREP Report 2007. This should have information from the previous years.

http://www.newpa.com/search.aspx?keywords=brep

Let me know if you have any other questions.

Thanks,

The link goes to a list of press releases, where you can rummage around and find previous reports from two previous years only. Seven previous years of survey data is apparently not available, and it is not compiled anywhere else that we've found.

Toll Brothers Inc. (NYSE: TOL) has been giving deeper-than-usual discounts during its "Toll Advantage Days" events at its developments around the country, where it offers what it calls "a behind the scenes look at our homes from start to finish." In other words, a sale. Deals include everything from additional hardware flooring to upgraded cabinets and appliances. Buyers may also find bargains on some lots and properties, such as those that Toll was forced to hold onto after a sale collapsed.

Kira McCarron, Toll's chief marketing officer, told PhillyInc that it was "reasonable" to assume that the offers would be better this year, given the state of the real estate market. "A few years ago, there probably were zero offers," she said.

Toll held "Toll Advantage Days" in Denver in April and now plans several on Sept. 29-30 in select spots, including New Hope.

Like other homebuilders, Huntington Valley, Pa.-based Toll is facing one of the worst real estate markets in recent memory. Reuters this week reported that sentiment among home builders fell for a seventh straight month in September. Speaking at a conference sponsored by Credit Suisse, Chief Executive Robert Toll said the current housing downturn is worse than others the company has experienced in 1980 to 1982 and 1987 to 1991, according to Reuters. His gloomy outlook takes into account the Federal Reserve's decision to cut interest rates.

Reuters quotes Toll: "Is this a turning point? Does anyone want to call this the bottom because of the Fed cut? I don't think you can call it yet." (Disclosure: The vice chairman of Toll Brothers is Bruce Toll, who is also is chair of Philadelphia Media Holdings L.L.C, which owns PhillyInc, The Philadelphia Inquirer, The Daily News and Philly.com.)

Other homebuilders also are having tough times. Orleans Homebuilders Inc. (NYSE: OHB), based in Bensalem, recently said it had an $11.3 million loss in the most recent quarter. A company spokesperson didn't return our call for comment.

Chief Executive Ara Hovnanian of Tolls' rival Hovnanian Enterprises Inc. (NYSE: HOV) of Red Bank, N.J., told the same conference where Robert Toll spoke that Hovnanian didn't expect the housing market to recover anytime soon. To that end, Hovnanian held what it dubbed the "sale of the century" last weekend, which the company claims was a huge success, Bloomberg News says.

Toll's McCarron says Toll Advantage Days is not a reaction to Hovnanian's sale. She pointed out the company has held these events for years. This time, though, the buyers are calling the shots more than they have in the past.

- Jonathan Berr

Rick's Cabaret International Inc. (NASDAQ: RICK), which in August signed a letter of intent to take over Philadelphia's once-controversial Crazy Horse Too club, is taking the high road in its SEC filings.

Rick's, based in Houston and one of just two publicly traded operators of strip clubs, is having a good year, according to an investor presentation filed this week with the SEC. In its last fiscal year, it reported revenue of $24.5 million, up 65 percent from the previous period. The company's shares are up 70 percent in the past year, even outperforming the soaring stock of Apple Inc. (NASDAQ: AAPL). But the presentation does more than list numbers. It lays out Rick's formula for success, including its "no-tolerance policy regarding illicit sex or illegal drug use in or around the premises." And then there's its hiring and employment standards:

Female Entertainment. The Company maintains high standards for personal appearance and conduct of entertainers and waitresses. Applicants are engaged based on such factors of physical beauty, attitude, dress, personality and communication skills, demeanor and dancing ability. In most clubs, performers are independent contractors who pay a fee to perform and are paid by customers.

The Crazy Horse Too has had a colorful and somewhat controversial past in South Philly, where residents and local politicos had opposed its arrival in 2005. The club is part of a Las Vegas-based company that a Nevada TV station says has an "infamous" history. Now the company is in foreclosure. In Pennsylvania, state records show the club is owed by The End Zone Inc. of Philadelphia, whose president is listed as Salvatore Coscia. Not clear if that's the same person as "Romeo Coscia" cited by the Daily News two years ago. But its owner may not be out of the picture entirely: For now, Rick's Cabaret is buying just 51 percent of The End Zone and 51 percent of its property firm called TEZ Real Estate L.P.

- Jonathan Berr

DuPont Co. Chairman Chad Holliday gave a briefing yesterday in Wilmington attended by "60 reporters from 20 countries." So says DuPont. And what did they hear him say? The News Journal heard this: "We do not predict a recession. We have seen some obvious turnaround in the financial markets. MarketWatch heard him review "troublesome" trends among customers.

- Thomas Ginsberg

Patricia Biswanger, a lawyer, has filed a lawsuit against Steven Cozen and Patrick O'Connor, her former bosses, that reads like a Scott Turow tale of politics, sexism and egos. (Download the 23-page complaint.) We have no opinion or knowledge of who is right or wrong, correct or incorrect, in the case, which was filed in federal court on Tuesday. There's a long history (scroll down for Gil Spencer item) about the disputes. Still, it's well worth reading just for a hint of the local drama.

In the lawsuit, Biswanger, an accomplished and politically active attorney who formerly worked at the politically influential Philadelphia firm Cozen O'Connor, is accusing the firm of sexual discrimination and retaliatory firing in 2005 stemming from their political activism in Haverford.

Her lawyers write that she was one "among a minority of the firm's lawyers who voluntarily and regularly responded to founding shareholders Steve Cozen's and Pat O'Connor's requests for contributions to the firm's political action committees and designated charities." At the same time, the suit says she has been "heavily involved in politics in Haverford Township for about twenty years. Politics in Haverford is historically contentious."

Indeed, some of the contentiousness has resulted in bribery and theft charges involving others. The lawsuit claims Kenneth A. Clouse, then-President Judge of the Court of Common Pleas for Delaware County, took issue with Biswanger's "activism" and says:

18. In or about the early Spring of 2004, Judge Clouse unsuccessfully attempted to contact Steven Cozen for the purpose of complaining about Plaintiff and demanding that the Firm terminate her. Plaintiff learned about Judge Clouse's plans from a mutual acquaintance and informed Mr. Cozen, then Chairman of the firm, who assured her that she had nothing to worry about, and that if Judge Clouse wanted to "play politics" with him, he would "welcome the challenge." Upon information and belief, Judge Clouse and Mr. Cozen ultimately did not speak about the matter.

19. Later in the spring of 2004, Judge Clouse retained Richard A. Sprague, Esquire, for the purpose of bringing suit against Plaintiff and Andy Lewis, Plaintiff's friend and political ally, to allege that they had defamed him in the course of objecting to his political activities.

20. Mr. Sprague contacted Patrick O'Connor to complain about Plaintiff's political activities, and, upon information and belief, told Mr. O'Connor that if Plaintiff were not fired, he would include the Firm in the suit.

21. Mr. O'Connor instead told Plaintiff that she was henceforward prohibited from using any "Firm resources" in connection with her political activities.

Later, it says Biswanger "thought of the 'preservation of evidence' letter as a prudent litigation move, not a political activity." And it then levels this accusation:

Upon information and belief, Mr. Cozen, Mr. O'Connor and Mr. Berry perceived politically active women as aggressive, overbearing, and unattractive, and therefore a detriment to the Firm. Further, upon information and belief and observation, Mr. Cozen, Mr. O'Connor and Mr. Berry prefer and promote women who fit traditional female stereotypes of being attractive, compliant, and mild-mannered, a standard that is not applied to male attorneys.

33. In contrast, Mr. Cozen, Mr. O'Connor, and Mr. Berry had no objection to the widespread, aggressive, controversial and continuing and/or deepening political involvement of numerous male attorneys at the Firm. To the contrary, they supported the political involvement of the Firm's male attorneys, financially and otherwise, whether the involvement was in local, state or national politics.

It goes on. We've put a call in to Cozen O'Connor, which has not yet filed its response in court.

- Thomas Ginsberg

More on Biswanger's lawsuit. Bloomberg News has this response from Cozen O'Connor's lawyer, Abraham Reich, at Fox Rothschild:

"The firm has always followed a fair and objective process for the advancement of all of its lawyers, regardless of gender."

The Legal Intelligencer lays out more of the story here. The short Philadelphia Business Journal story is here.

Howard Gittis, the Philadelphia powerhouse attorney, deal-maker and political fund-raiser who died last week in NYC, is grandly eulogized in a WSJ obituary today ($ required). Says billionaire investment banker and partner Ron Perelman: "Together we made one full person." Says Peter Liacouras of Temple University: "(He) was the quickest-witted and closest thing to a purely rational being." Says ex-mayor William J. Green: After Gittis tried to persuade Green to run for re-election, Green asked Gittis: "If you were me, would you seek another term? He looked at me with a smile on his face and said, 'No.' "

Today, the Washington Post ran a Page One story saying the FBI believes Unisys Corp. of Blue Bell, while working on contract to the Department of Homeland Security, "allegedly failed to detect cyber break-ins traced to a Chinese-language Web site and then tried to cover up its deficiencies." At 4:30 this morning, Unisys put out a strong denial saying, in part: “Unisys vigorously disputes the allegations made in today’s article. Facts and documentation contradict the claims described in the article, but federal security regulations preclude public comment on specific incidents. We can state generally that the allegation that Unisys did not properly install essential security systems is incorrect. In addition, we routinely follow prescribed security protocols and have properly reported incidents to the customer in accordance with those protocols." Stay tuned.

- Thomas Ginsberg

So, how well did Deb Shops Inc.'s (NASDAQ:DEBS) executives fare in selling the company to a private equity group for $395 million? CEO Marvin Rounick will get a three-year consulting contract worth $1.2 million. So says its SEC filing today. Secretary/Treasurer Warren Weiner is getting $900,000. The executives and their spouses are getting lifetime healthcare along with the ability to get automotive insurance under the company's group rates. And the new owners will reimburse Rounick and Weiner up to $15,000 each for legal fees and expenses "in connection with their negotiation of their respective consulting agreements and the voting agreement."

On the other hand, Rounick and Weiner "will be subject to non-solicitation and non-competition restrictions during the three year period of the consultancy."

- Jonathan Berr

The family foundation of Aramark Corp. CEO and chairman Joseph Neubauer, wife Jeanette, son Lawrence and daughter Melissa Anderson has pledged $25 million to their alma mater, the University of Chicago, to establish "an innovative program to attract some of the nation's most outstanding young faculty." Faculty hired with the money will be called "Neubauer Family Assistant Professors."

The Neubauers, who have a home in Rittenhouse Square, in Philadelphia, have been active and robust donors to the university and what it calls its "Chicago Initiative," a fund-raising campaign. The school said the Neubauer Family Foundation now has given $36 million to the school, including making its largest commitment for faculty endowment. Neubauer personally was ranked 15th among 60 biggest donors in the country last year by Slate.com for giving away $114.6 million - granted, some of it went to his own foundation, but who's counting. He and his family have been major donors around Philadelphia, too. They have committed $10 million to the Philadelphia Orchestra and even chipped in $3 million last year to keep Wal-Mart's family from snatching the Thomas Eakins painting "The Gross Clinic." Remember all that next time you order a cafeteria sandwich.

- Thomas Ginsberg

That's a Bryn Mawr home of Jack Bogle, founder of Vanguard Group Inc. and one of the most-admired CEOs (albeit former) in the Philadelphia area. It has recently gone up for sale at an asking price of $2.35 million, according to various listing services.

Is Bogle bugging out? Moving across town? Sensing an even bigger drop in the real estate market? We've put in a call to his office.

The home is known as the Jay Gates Residence, according to the Philadelphia Architects and Buildings web site. Here's the description of the house from Prudential Fox and Roach:

Located on one of the Main Line's most desirable and private lanes...this handsome stone & stucco colonial is a one-of-a-kind property. A blend of old and new with large inviting rooms, high ceilings and three fireplaces. Some special features include deep Jefferson windows and French doors, spacious eat-in Kitchen with large island and skylights. Adjoining the Kitchen is a magnificent Family Room with vaulted ceiling and large stone fireplace with raised hearth, first floor office and bright Playroom. Lovely terraces, 2 car Garage, circular drive and original 100 year old 'Smokehouse' complete this magnificent 1 1/2 acre estate.

- Michael Klein

What better way to publicize a new business than to display a genuine freak of nature? Yesterday, Big Al's Aquarium Supercenter in East Norriton, which just opened this summer, announced the "birth" of a "one-in-a-million" two-headed slider turtle. It invited the public to have a look at what appeared to be rare biological occurrence right here. AP sprang to action and sent photos around the country. NBC10 sent a crew. The press release got our attention at The Inquirer.

OK, forget for the moment that such oddities are not unheard of. Or that David Letterman once had a two-headed turtle on his show. Or that this particular trachemys scripta was actually hatched a month ago in Florida and shipped here to be a store attraction, and was not born last weekend in East Norriton as the P.R. guy initially told us.

In fact, franchise owner Bob Weintraub of Gwynedd Valley says he and partner Joel Goldstein of Lower Gwynedd bought this oddity from a Florida collector because they wanted a "mascot" for their new store. And, of couse, they wanted some publicity, too. They'll get both. The freaky little reptile has no name, yet, and is not for sale. And although it was not hatched here, the publicity plan was. Weintraub used to run a retail fish store in Jenkintown, and Goldstein used to sell aquarium equipment. The friends were retired and looking for something to do when Big Al's, based in Florida, began offering franchises. They got the first one outside Florida. Now they run a store akin to the Home Depot of household fish. Judging by the turtle reaction, they'll do fine.

- Thomas Ginsberg

For many years, BusinessWeek magazine published a list of "best and worst boards." Now Penn State associate professor Henock Louis has documented that roughly two-thirds of those "worst" companies did shape up after the media exposure. In a research paper, the Smeal College of Business professor concludes there is a causal link between the publication and cleanups. He also says savvy Wall Street traders profited handsomely from the articles by buying -- not selling -- the companies' stocks in response to the exposure that they saw not as bad news, but a harbinger of corrective action.

- Thomas Ginsberg

That was a bit faster than expected. Bernard Poussot, who was toiling as division chief of Wyeth Pharmaceuticals in Collegeville just three years ago, has been named CEO today of Wyeth (NYSE:WYE), to replace Robert Essner in January. Only nine months ago Poussot got the No. 2 job as chief operating officer, solidifying his place as heir-apparent in a seemingly routine succession process. Still, Wall Street didn't quite expect this move so fast, even if it is welcome. The company has had three products postponed this year already. Its stock price is sitting near a 12-month low. Ed Silverman at Pharmalot questions the selection of an insider at a time when Wyeth is facing pipeline, manufacturing and shareholder troubles.

- Thomas Ginsberg

Anyone who has owned a radio or television in the Philadelphia area in the past 25 years knows Jerry Robbins, or at least thinks they do. His commercials, which feature his velvet baritone honed from years of work on the stage, have transformed him from jeweler to brand icon. But the 70-year-old jeweler is also the chief of Leo Robbins & Sons Inc., the company founded by his father Leo in 1949. (His family has roots in the jewelry business even before that.)

Though semi-retired, he still shows up to work. Now, he's in the process of figuring out how to pass the torch to his three sons. The next generation in the business also includes a daughter-in-law, a former daughter-in-law, and even a 21-year-old granddaughter. He recently spoke with Jonathan Berr for PhillyInc about his career, though he declined to divulge how the diamond stud stays in his beard.

PhillyInc: What's the secret of working with your family?
Robbins: It takes a lot of work. ... We consider [the business] a golden goose that lays golden eggs and we try to get everyone in the family that's working in the business to understand that.

(More below. But first, here below - and here - is a hilarious clip of the Rockin' Robbins Mascot in reheasal.)

The Forum of Executive Women released its study of women on boards and in executive suites in Philadelphia today. Essentially, there's been little progress made year-to-year and in fact, diversity is down.

Forty of the hundred top companies have no women on their boards. However, in seven among Philadelphia's top 100 publically-held companies, women make up 25 percent or more of the board. And among those, plus-size retailer Charming Shoppes Inc. (Nasdaq:CHRS) is the only one where women are in the majority, holding 5 out of 9 seats. CEO Dorrit J. Bern chairs the board. In another company, insurer Cigna Corp. (NYSE:CI), three out of 10 seats on the board are held by women, and one of them, Carol Cox Wait, heads the director and nominating committee. In the report, she says assembling a diverse group in the board room fosters thinking "from a bunch of different boxes." Wow, Cigna has thinking boxes!
- Jane M. Von Bergen