Carnation recalls baby formula bearing perilous...

Business Digest

August 22, 1996

Carnation recalls baby formula bearing perilous instructions

Carnation Inc. has recalled a batch of baby formula that instructs parents not to dilute the concentrate with water when they are actually supposed to do just that. The product is Carnation Alsoy soy formula for infants, which can cause dehydration, diarrhea, cramping and vomiting if it's consumed undiluted.

The mislabeled cans were distributed in Maryland, New York, New Jersey, Pennsylvania, Oklahoma, Texas and Virginia. The 13-ounce cans have the following code on the bottom: 6150EWAC047.

Carnation, a subsidiary of Nestle USA Inc., said it did not know of any infants who have eaten undiluted formula, but it has removed all of the mislabeled cans from store shelves. The company urged parents who bought the mislabeled formula not to use it and to call Carnation at (800) 543-3112.

Brogan and Hendrickson reappointed to PSC

Gov. Parris N. Glendening yesterday reappointed two members of the Public Service Commission -- Susanne Brogan and E. Mason Hendrickson -- to five-year terms on the agency that regulates utilities in Maryland.

Both Brogan, 39, an Annapolis lawyer, and Hendrickson, 74, a retired bank executive from Hagerstown, had been appointed by Gov. William Donald Schaefer in 1992 to complete unfinished terms of former commissioners on the five-member panel. Commissioners receive from $79,800 to $87,200 a year.

Hendrickson's term expired last year, but Glendening left him on the panel as a "carry-over" appointment because of concern about insufficient geographic representation from Western Maryland on the commission. Hendrickson is the sole member )) from that area.

BioWhittaker taking $3.4 million charge

Walkersville-based BioWhittaker Inc., a maker of clinical diagnostic testing products, said it will take a $3.4 million charge because of legal costs arising from its defeat by Minnesota Mining & Manufacturing Co. in a lawsuit.

BioWhittaker filed suit against the St. Paul, Minn.-based company and its 3M Diagnostic Systems Inc. unit alleging that they were in breach of a 1991 purchase agreement under which 3M sold its clinical diagnostic testing products for various allergens.

BioWhittaker said the jury found for 3M on all counts.

Airline now hiring after questions about maintenance

America West is adding more than 50 employees, including mechanics, after a federal inspection raised questions about its maintenance procedures, the Federal Aviation Administration said yesterday.

The FAA inspected the Phoenix-based airline from June 25 to July 12, said William White, the agency's deputy director for flight standard services. Some problems were found, and the airline cooperated in making corrections and meets all federal requirements, he said.

White said the FAA acted because of changes in the way the airline was handling maintenance. America West laid off 400 mechanics last December and hired outside contractors to do the work.

Major drug company raided in Tokyo

Prosecutors raided a major Japanese drug company in Tokyo yesterday, raising the likelihood that its former president will face criminal charges for selling AIDS-tainted blood products.

Renzo Matsushita, former head of Green Cross Corp., is accused of letting tainted products on the market even after a safe alternative became available in late 1985.

The raid marks the start of the first criminal investigation into why major drug companies and the Health and Welfare Ministry did not heed warnings from the United States in 1983 that unheated blood products were dangerous.

11,500 school buses being recalled

Two school bus manufacturers are recalling 11,500 buses that fail to meet federal requirements for fuel systems, the National Highway Traffic Safety Administration said yesterday.

The recall follows crash tests in which a 1995 Blue Bird "All American" bus and a 1995 Wayne "Life-star" bus exceeded the maximum allowable fuel leakage, the agency said.

Blue Bird Body Co. and Harsco Corp., which is handling the Wayne recall, are developing modifications to fix the problem, NHTSA said. The companies will notify owners of the affected buses and make the repairs free.

More CD pirates seized in U.S.

The Recording Industry Association of America said yesterday that 896,594 illegally produced or pirate compact discs were seized in the United States in the first six months of 1996, up sharply from 19,366 in the year-ago period.

The RIAA said it was the first time that seizures of CD pirates overtook seizures of cassette pirates, and noted that most of the illegal CDs seized were bootleg recordings and were seized in two raids in the spring.

Association officials said many of the seized bootlegs are entering the country from abroad and are being intercepted by federal agencies, such as the Customs Service.

Citicorp fined over 19 brokers

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