News-Leader article explores decline and fall of O'Sullivan Industries

Lamar businesswoman Becky Maberry, O'Sullivan worker Donovan Taylor, and Lamar City Administrator Lynn Calton are among those interviewed in reporter Kathleen McLaughlin's account of the decline and fall of O'Sullivan Industries in today's Springfield News-Leader.

Foreign competition was just one of O'Sullivan's problems when it filed for bankruptcy protection in October 2005. By that time, the founding O'Sullivan family was no longer in control, and the new management had moved its headquarters to the Atlanta area.

O'Sullivan entered bankruptcy with $100 million in debt. The court approved debtor-in-possession financing, and the company emerged in April 2006.

Business continued to decline, and by the fall, the senior note holders, GoldenTree Asset Management and Wachovia bank, were in control, Britton, the plant manager, said.

GAO report to show nursing homes getting away with multiple violations

The GAO, the investigative arm of Congress, will issue a report this week showing that nursing homes are getting away with multiple, serious violations because they are only having their wrists slapped after each violation.
An article in today's New York Times examines that report, interesting leaving out one item: I see no mention of the incredible amount of money the nursing home industry pours into the campaign coffers of both Democratic and Republican candidates.
As usual, those who pay out the big bucks are treated with kid gloves and a respect that is not shown to the average citizen:

The Government Accountability Office said federal health officials hesitated to impose fines of more than $200 a day, in part because they believed that larger penalties "could bankrupt some homes." Fines are generally so small that nursing homes view them as a "cost of doing business," with "no more effect than a slap on the wrist," the report said.

In the rare cases when federal officials try to exclude a nursing home from Medicaid and Medicare, the home often avoids the penalty by making temporary improvements and then lapsing back into noncompliance, the investigators said.

Under federal policy, the government is supposed to take immediate enforcement action against nursing homes that repeatedly cause "actual harm" to patients. But the accountability office said "immediate sanctions are often not immediate" because the Bush administration gives homes a grace period.

As a result, "the immediate sanctions policy does not appear to deter homes from harming residents in the future," the report said, and "some homes with the worst compliance histories escape immediate sanctions."

Despite his past successes, Democrats feel Graves is vulnerable

The apparent challenge being mounted by Kansas City Mayor Kay Barnes for incumbent Rep. Sam Graves, R-Mo's congressional seat is the focus of an article in this morning's Washington Post.

A Barnes candidacy would ensure a tight race in the largely rural, northwestern Missouri district. Barnes is finishing her second term as mayor, and on the first day of her congressional candidacy she would be better known than Graves's past three Democratic challengers have been.

One thing Ms. Barnes will have to worry about is the scorched earth policy of Graves' campaign manager (and Republican blogger) Jeff Roe. The tactics used by Roe in the past have been designed to make sure that Graves, who barely won in his initial try for the office, would not receive any credible opposition. Fortunately, it appears that strategy may not have worked, and voters in Graves' district will have a choice.

Globe editorial: Jobs would be great

In another of the hard-hitting editorials that have made the Joplin Globe the conscience of our community, the Globe editorial board says it would be great if the displaced and soon-to-be displaced O'Sullivan Industries workers in Lamar had jobs:

Thanks to O'Sullivan's decision to stretch out the plant closing, many workers will continue to have income and benefits for three months. But when time runs out, jobs must be found. We can only hope more area employers will have jobs available by then. The most comforting words these workers can hear are "you’re hired."

Reportedly, future Globe editorials will concern the cuteness of puppies and how delicious ice cream is on a summer day.

Cummins: Gonzales should have been more candid

Bud Cummins, the U. S. attorney from Arkansas, who was one of eight fired by the Bush Administration, says he was not satisfied by the testimony Attorney General Alberto Gonzales provided to a Senate committee Thursday:

"I'm not sure that the attorney general really understands what has happened, and here he's had 90 days to think about it, investigate it and consider the ramifications," Cummins said. "I think a more candid explanation would have served him and the president better."

Cummins, of course, was asked to resign during the middle of an investigation into the awarding of lucrative license fee offices by Governor Matt Blunt's administration.

Post: Justice Department investigating key component of No Child Left Behind

When even Seventh District Congressman Roy Blunt comes out against it, you know the time has come for the elimination, or at least a major overhaul of the No Child Left Behind program.
The program, which many state officials, educators, and taxpayers see as an unworkable governmental boondoggle, came under attack again with the announcement that the Justice Department is investigating a key component of No Child Left Behind- the Reading First program:

The disclosure came as a congressional hearing revealed how people implementing the $1 billion-a-year Reading First program made at least $1 million off textbooks and tests toward which the federal government steered states.
"That sounds like a criminal enterprise to me," said Rep. George Miller (D-Calif.), chairman of the House education committee, which held a five-hour investigative hearing. "You don't get to override the law," he angrily told a panel of Reading First officials. "But the fact of the matter is that you did."

It seems to be a pattern developing at both the state and federal level for officials to implement laws and then to allow their cronies and sometimes even themselves benefit from the legislation.

Nexstar Broadcasting to announce quarterly results

Nexstar Broadcasting will announce first quarter financial results during a conference call 9 a.m. Tuesday, May 8, according to a company news release.
Those wishing to participate may dial 1-800-946-0745.
Nexstar owns KSNF in Joplin and KSFX in Springfield and operates KODE in Joplin and KOLR in Springfield.

Ten jobs eliminated today at O'Sullivan Industries

Lamar Chat at Lamarmo.com reports 10 jobs were eliminated today at O'Sullivan Industries as the process of winding down the existence of the plant that has been the lifeblood of Barton County and Lamar economy begins:

The jobs eliminated were apparently in the office, according to those posting on the message board.

Daiily officially introduces Ford as managing editor

John Ford's promotion to managing editor of the Neosho Daily News, first noted in the April 19 Turner Report, was officially announced in today's Daily:

"There is no question John Ford has been a vital part of our newsroom staff for more than a decade," (Daily News Publisher Rick) Rogers said. "I have the utmost confidence that John can continue the excellent editorial product that we have been able to produce the past three years. John is one of the finest reporters in this region and that, coupled with his ability to produce a well-designed newspaper, will allow him to excel in his new role.

"John has also been a part of the Neosho community for the past 12 years, and understands what you, our readers, want in their hometown newspaper - hometown news."

Saga CEO made $1.2 million plus in 2006

Ed Christian, CEO of Saga Communications,owner of KOAM and KFJX television stations in the Joplin area, made $1.247,318, in 2006, according to a proxy statement filed today with the Securities and Exchange Commission.
Christian received $549,003 in salary, a bonus of $281,976, stock awards worth $60,435, option awards worth $133,852, $112,500 in non-equity incentive plan compensation, and $109,552 in all other compensation:

With respect to Mr. Christian, perquisites include personal use of Company provided auto, country club dues, medical expense reimbursement and personal use of a private airplane in the amount of $25,717. Perquisites are valued based on the aggregate incremental costs to the Company. For the personal use of the airplane aggregate incremental cost is based solely on direct operating costs (fuel, airport fees, incremental pilot costs, etc.) and does not include capital costs of the aircraft since the Company already incurs these capital costs for business purposes. This amount does not include the loss of a tax deduction to the Company on account of personal use of corporate aircraft under tax laws. In 2006 Mr. Goldstein received perquisites for personal use of Company provided auto and medical expense reimbursements. No other named executive officer received aggregate perquisites in excess of $10,000. In addition, the Company paid split dollar life insurance premiums for Messrs. Christian and Goldstein in the amount of $50,000 and $13,922, respectively.