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The mountain of data that supermarket chains compile helped Oregon and Washington state investigators zero in on salami and the source of the outbreak -- the pepper used to season it.

Last year, investigators were flummoxed over a salmonella outbreak that started with one case in Oregon in July and then grew, adding clusters of cases across the country.

For months, health department investigators were unable to pinpoint the food that was making people ill.

They broke the case by poring over data from shopping cards -- the same ones that offer store membership and can come with privileges and discounts.

"This is the first time where we were able to get a solid lead from that," said William Keene,  senior epidemiologist with the Oregon Public Health Division.

This is not the only time that state and federal officials have used data from shopping cards in foodborne illness investigations but it was one of the most successful cases and could lead to more in the future.

The outbreak sickened at least 245 people in 44 states, including nine in Oregon and 17 in Washington state.

When new cases popped up, investigators questioned patients about all the food they had consumed. At first, no common link could be found.

"We were just kind of spinning our wheels," Keene said. "We'd ruled out a lot of foods."

Then Washington state epidemiologists noticed that seven people sickened there had shopped at Costco. One patient in Oregon did as well.

Not advancing on any other front, the epidemiologists decided to ask for Costco's sales records.

"Costco is really nice about it," Keene said. "They don't want to make people sick."

It wasn't simple. Costco, headquartered in Issaquah, Wash., will not automatically turn over personal shopping information to health authorities. Other retailers won't either.

"The stores will not release the information without the shoppers' permission," Keene said. "Each person had to be individually asked and they had to get a release from each person."

But once those permissions were secured, Keene collected Costco records from one case in Oregon and epidemiologist Kathryn MacDonald  gathered the same information on seven in Washington state.

Among the seven, five had purchased a gourmet pack of Italian salami made by Daniele International Inc., based in Rhode Island.

The salami was encrusted with pepper that turned out to be positive for Salmonella Montevideo, the same strain involved in all of the other cases. The investigation later implicated red pepper as well.

The Costco data -- and positive lab tests -- sparked a series of recalls. Daniele pulled salami encrusted with black and red pepper, Wholesome Spice Co. of New York pulled black and red pepper and Mincing Overseas Spice Co. recalled black pepper.

Then on Wednesday, a fourth company, Dutch Valley Food Distributors, Inc. of Pennsylvania, pulled black pepper supplied by Mincing.

No new cases have turned up recently though the latest recall indicates that the investigation is ongoing.

The Centers for Disease Control and Prevention, which tracks illnesses, said it pulled shopping data as well in the investigation.

"This is not the first time that this has been used in an outbreak," said Lola Russell, spokeswoman for the CDC. "But this is the most successful effort of using shopper card data in relation of identifying the cause of an outbreak."

Unraveling the cause of an outbreak can be difficult because health officials have to rely on people's memories of food they've eaten.

Keene said investigators in Oregon and Washington have used shopping card data for years in their investigations but usually after they have pinpointed the cause.

"After a product has become suspect, we need to find out the purchase dates," he said. "This was a little bit different. We asked for list of everything they bought."

The investigation may encourage epidemiologists to use shopping card data more than they have in the past.

"You could make the case that it's underutilized," Keene said. "The reason is that it's kind of a pain to get the information."

 
--Lynne Terry
  http://www.oregonlive.com/business/index.ssf/2010/03/northwest_investigators_mined.html

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An Oregon economic gauge rose more than 1 percent in January for the third straight month. But growth would have to strengthen for the state to replace the jobs it lost during the recession, says the University of Oregon professor who tracks the numbers.

A truck pulls out of Troutdale's Flying J Travel Plaza toward Interstate 84 east. Oregon trucking activity increased in January as a firming economy and efforts to hike inventories boosted shipping, according to economic data released Wednesday. An Oregon economic gauge rose more than 1 percent in January for the third straight month. But growth would have to strengthen for the state to replace the jobs it lost during the recession, says the University of Oregon professor who tracks the numbers.

The UO Index of Economic Indicators jumped 1.7 percent to 88.5, economist Tim Duy said. The scale measured 100 in 1997.

Oregon temp firms are hiring again, a "hopeful sign," Duy said, of caution easing among employers. Oregon residential building permits picked up in January. Trucking activity increased in the state.

View full size"Growth has yet to translate into significant overall job gains," however, Duy said.

Oregon's economy is bouncing off the recession lows of last summer, as is the national economy. In January, U.S. consumer confidence rose as manufacturing orders declined. A key interest-rate spread rose sharply as investors perked up.

Government stimulus programs have boosted the initial recovery from recession. A solid inventory correction has goosed manufacturing orders.

But, Duy said, "The labor market response to improving conditions has been tepid at best."

--Richard Read

  http://www.oregonlive.com/business/index.ssf/2010/03/oregon_economic_index_improves.html

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Far from generating unanimous local applause, the proposed project has become a focal point in the contentious debate over who should foot the bill for development.

DANA TIMSJohn Atkins, Molalla's city manager, gambled that a one-year moratorium on development charges might spur economic development. His controversial plan appears to have paid off. He's standing on the site where two developers plan to build a 160-unit apartment complex. Molalla took an an economic-development step in December that no other Oregon city has tried in at least 15 years, waiving building fees for all of 2010 or until it rings up $1 million in waivers, whichever comes first.

Now, barely three months later, the experiment appears to have worked.

A 160-unit apartment complex and adjoining retail project, which the developer said wouldn't have moved forward without the waivers, is now targeted for Molalla's struggling downtown core. A formal application is expected as early as Thursday.

Yet far from generating unanimous local applause, the proposed project has become a focal point in the contentious debate over who should foot the bill for development.

It has also drawn scrutiny from at least one state government agency concerned about local governments providing for future population increases.

"This is a very unusual move," said Jennifer Donnally, the state Department of Land Conservation and Development's metro regional representative. "If it was a permanent moratorium, I'd be concerned that they wouldn't have the ability to keep providing adequate urban facilities."

Area business owners widely praise the move. The scores of construction jobs and new residents it will bring to Molalla's flagging downtown, they say, made the temporary waiver of fees for future water and sewer improvements more than worthwhile.

"Molalla has tumbleweeds blowing down main street these days," said Brad Peterson, co-owner of Superior Glass Works. "Yes, we gave away $1 million, but it's money that wouldn't have been available at all without the waivers."

Dissenters disagree, calling the moratorium a blatant and unnecessary give-away to developers.

"We have so many vacancies downtown already," Steve Clark, a former Molalla City Council member, said. "If someone is looking for retail space, they only have to walk from storefront to storefront to find all the room they need."

Over the past few months, a number of other Oregon cities have tinkered with reducing or deferring development fees. The aim is to provide incentives for recession-shy developers to get off the sidelines and launch new projects.

Roseburg, for instance, recently reduced its transportation fees by 75 percent as a way to stimulate development, City Manager Eric Swanson said. The city will revisit the issue in December.

Gresham is starting a small-business incentive program that will waive certain fees and pay some others on behalf of qualifying new and expanding businesses in three commercial neighborhoods. The program will run through March 2011, said Ron Papsdorf, the city's government relations manager.

And in Grants Pass, city officials have rolled all development charges back to 2006 levels. The temporary reduction is scheduled to end in August 2011.

But only Molalla, a working-class bedroom community hit particularly hard by the economic downturn, has elected to drop the fees completely, albeit temporarily.

John Atkins, Molalla city manager, came up with the idea after watching business after business downtown fold. Car dealerships, the town's only building-supply operation, restaurants and others have all turned off their lights in the past 18 months.

"I felt like we needed to do something dramatic to at least attract attention," Atkins said. "I had no confidence it was going to pay off for us, but I also figured, what do we have to lose?"

Declaration of the development fees holiday caught the attention of local developer Karl Ivanov, who over the past decade has completed several other local projects.

Almost immediately, Ivanov dusted off plans to build a 160-unit apartment complex and 30,000 square feet of retail space on a long-vacant lot near downtown. The estimated $1.4 million in fees he'd have had to pay prior to the moratorium meant that his project alone effectively ended the experiment.

"As I told the city, if that $1 million in SDC forgiveness wasn't there, this project would stop and not move forward," said Ivanov, whose company, I&E Construction, is teaming with Molalla business owner Troy Vest on the development. "Without the waivers, this project simply would not pencil out."

Ivanov said he expects to pull permits by July 2011 to begin construction. Under terms of the moratorium, he must start construction within two years or face having to pay the full development charges.

"Downtown Molalla's just been sitting there cold with nothing going on," he said. "This is going to be a great step foward for the entire town."

One person not so pleased with the situation is Al Borromeo, a Molalla dentist who now has the dubious honor of being the last person to pay commercial-level development fees before the city declared its moratorium.

"If I'd known about this five months ago, I could have saved $129,000," he said. "It would have been nice if they could have let me know."

Borromeo said he is proceeding with his project because he loves living in Molalla and wants to see the former timber capital succeed. But looking back, he added, he probably could have saved himself a lot of money and trouble in dealing with city officials if he had hired his own land-use attorney.

"They talk terms," he said. "I talk teeth."
 
-- Dana Tims
http://www.oregonlive.com/clackamascounty/index.ssf/2010/03/molalla_development_experiemen.html

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The once-embattled central bank could emerge from a congressional overhaul of banking rules as the top cop over the nation's largest financial institutions. Senate negotiators are considering giving the Fed the authority to supervise nonbank financial institutions that are so large and intertwined that their failure could pose a risk to the entire economy, according to people familiar with the evolving legislation. The Fed also would retain its power to oversee nearly two dozen bank holding companies that hold about two-thirds of the banking system's assets, according to these people, who spoke on condition of anonymity because of the sensitivity of the discussions. That would make the Fed, already one of the most influential agencies in the federal government, the main entity responsible for avoiding a future financial meltdown like the one that struck Wall Street in fall 2008. For the once-embattled central bank, the Senate negotiations represent a remarkable change of fortune.

The Associated PressFederal Reserve Chairman Ben Bernanke needed White House intervention to survive a grueling Senate confirmation for a second term.
WASHINGTON -- The Federal Reserve, still dusting itself off from a fight that threatened to trim its powers, could emerge from a congressional overhaul of banking rules as the top cop over the nation's largest financial institutions.

Senate negotiators are considering giving the Fed the authority to supervise nonbank financial institutions that are so large and intertwined that their failure could pose a risk to the entire economy, according to people familiar with the evolving legislation.

The Fed also would retain its power to oversee nearly two dozen bank holding companies that hold about two-thirds of the banking system's assets, according to these people, who spoke on condition of anonymity because of the sensitivity of the discussions.

That would make the Fed, already one of the most influential agencies in the federal government, the main entity responsible for avoiding a future financial meltdown like the one that struck Wall Street in fall 2008.

For the once-embattled central bank, the Senate negotiations represent a remarkable change of fortune.

In November, Senate Banking Committee Chairman Christopher Dodd wanted the Fed stripped of its supervisory powers so it could focus on its job setting monetary policy and modulating the economy. And in January, Fed Chairman Ben Bernanke survived a grueling Senate confirmation for a second term that had forced the White House to intervene.

Since then, Bernanke and Treasury Secretary Timothy Geithner have been making a case publicly and privately to Dodd and his main Republican negotiating partner, Sen. Bob Corker of Tennessee, to let the Fed retain certain supervisory powers.

"Bernanke has done better," Dodd said today. "There's an appreciation that the Fed -- Bernanke particularly -- handled the situation over the last year in a very difficult environment, handled it well.

"I always felt that the supervisory function over large institutions, that that was kind of a toss-up," Dodd said.

With its power to turn the dial on interest rates, the Federal Reserve has unmatched muscle to control economic growth, employment and inflation. It also is the country's lender of last resort when banks can't get their money elsewhere -- a formidable tool that the Fed exercised fully at the height of the financial crisis.

The people familiar with the evolving legislation say the Fed would continue to supervise bank holding companies with assets of $100 billion or more, while losing its power over thousands of smaller bank holding companies and hundreds of state-chartered banks.

More significantly, however, it would gain oversight of the nonbank firms that regulators identify as having the most potential to threaten the financial system's stability in the future.

In addition, Dodd and Corker are considering making the Fed the home for a consumer financial protection entity that would write regulations on products ranging from mortgages to credit cards.

Extending the Fed's power so that it supervises the biggest of the nonbank financial firms would give it power over the types of companies at the center of the 2008 Wall Street crisis, such as insurance conglomerate American International Group and the failed investment houses of Lehman Brothers and Bear Stearns.

Ernest Patrikis, a former first vice president and chief operating officer at the Federal Reserve Bank of New York, said he would prefer the Fed perform as a single regulator for the entire banking system, not just the biggest holding companies. Nevertheless, he said, "this, compared to what it could have been, is not as bad for the Fed."

While the Fed would supervise the large bank holding companies, their bank subsidiaries would still be overseen by bank regulators and broker dealer subsidiaries would be regulated by the Securities and Exchange Commission. However, the proposal being negotiated in the Senate would give the Fed the right, if necessary, to step in and examine the subsidiaries as well.

"The key thing is that whoever the regulator is faces no barriers when it snoops around a systemically important institution, that it never encounters an out-of-bounds sign," said Alan Blinder, a former Fed vice chairman and now a professor at Princeton University.

Losing oversight of smaller bank holding companies and state-charted banks would require institutional changes at the Fed and its system of 12 regional banks. The regional banks perform a key function in taking the pulse of the economy and helping the Fed set monetary policy. In that regard, their work would not change. But with many of the largest holding companies based in New York, regional banks elsewhere would see their bank examination functions diminish.

Blinder and consumer advocates also have questioned whether the Fed is the most appropriate place for a consumer protection agency.

"It is inevitable, given the central bank's duties in monetary policy and what would become duties in systemic risk regulation, that consumer protection would take a far back seat in the central bank," Blinder said.

Dodd dismissed those concerns, saying a consumer protection agency wouldn't burden the Fed.

 
-- The Associated Press


  http://www.oregonlive.com/business/index.ssf/2010/03/fed_gets_new_look_as_a_regulat.html

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The combination with Addison Avenue Federal Credit Union of California will create a company with $4.6 billion in assets and 320,000 members.

View full sizeTom SargentFirst Tech Credit Union, the second largest in Oregon, has taken the first step toward a merger with a Bay Area credit union that shares a heritage in the technology industry.

The boards of both Beaverton-based First Tech and Addison Avenue Federal Credit Union, of Palo Alto, have voted to merge. The deal must be approved by state and national regulators, as well as by First Tech's 155,000 members.

Tom Sargent, First Tech's long-time president and CEO, intends to retire this spring. His looming departure prompted the First Tech board of directors to consider various options.

"Our board of directors sought a replacement who would lead First Tech with the same integrity, passion and commitment to innovation that Tom has demonstrated at First Tech for 25 years," said Carolyn Strong, First Tech chairwoman. "During our search, we also explored other strategic alternatives and a partnership with Addison Avenue presented a great opportunity."

No money changed hands in the transaction. Top management will work out of offices in Palo Alto, Beaverton and Rocklin, Calif., Sargent said.

Like First Tech, Addison has its roots in the technology industry. Both institutions have served employees of Intel, Microsoft and Agilent, among others. Addison already has branches in Vancouver and Corvallis to serve the Hewlett-Packard employees in those communities, Sargent said.

Both institutions are profitable and well-capitalized, Sargent said. The combined institution would have assets of $4.6 billion, 38 branches and 320,000 members nationwide. Each has about 400 employees.

Sargent said it will probably be this summer before regulators approve the transaction.

The merged institution would operate as First Tech Federal Credit Union.


--Jeff Manning



 
http://www.oregonlive.com/business/index.ssf/2010/03/first_tech_credit_union_announ.html

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Super Supplements coming to Oregon.

Super Supplements, a vitamin and supplement discounter chain, has leased the former Car Toys building at Southwest 10th and Burnside Street across from Powell's Books, according to Urban Works. The chain, which operates 22 stores in Washington and Idaho, expects to open the 5,100-square-foot store by this summer. The Seattle-based company also plans to open a new store in Portland's outer eastside community of Gateway this spring.
-- Laura Gunderson, The Oregonian; 503-221-8378
http://blog.oregonlive.com/windowshop/2010/03/super_supplements_to_open_two.html

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Stocks have been drifting higher this week in light trading volume. That signals that there isn't much conviction underpinning the market's climb.

NEW YORK -- Scant buying lifted stocks for a second day today after the government reported a drop in companies' inventories.

The Dow Jones industrials rose only 3 points as the market remained in a lull that began on Monday. Many investors stayed on the sidelines amid an absence of news that could influence trading.

The Commerce Department said that wholesale inventories fell 0.2 percent in January after dropping 1 percent in December. Companies' sales rose 1.3 percent, the 10th straight gain. The drop in inventories and the rise in sales suggests that companies are working through inventory and will have to begin restocking.

The report was the latest bit of economic news to help nudge stocks higher. The numbers on the economy haven't been strong enough to galvanize traders because many improvements are already reflected in stock prices.

Stocks have been drifting higher this week in light trading volume. That signals that there isn't much conviction underpinning the market's climb. The Labor Department's report that employers cut fewer jobs than expected in February sent the Dow up 122 but its moves since then have been modest.

Reports on weekly jobless claims, retail sales and consumer sentiment will be released in the coming days and could give investors a better sense of where the economy stands.

Investors were cautious ahead of an inflation report in China. Traders speculated that the report, due Thursday, could show that prices are rising quickly as the economy there continues to grow at a fast pace. If prices jump, the Chinese central bank might boost raise interest rates. The concern is that higher rates in China would mean a slowdown in the global recovery.

The Dow and the Standard & Poor's 500 index have also been flirting with the 15-month highs set in January, making investors hesitant to place big bets.

Alan Valdes, vice president at Hilliard Lyons in New York, said traders aren't finding enough to power the market above its recent highs.

"It's more like a trading range right now," he said.

According to preliminary calculations, the Dow rose 2.95, or less than 0.1 percent, to 10,567.33. The S&P 500 index rose 5.16, or 0.5 percent, to 1,145.61, while the Nasdaq composite index rose 18.27, or 0.8 percent, to 2,358.95.

-- The Associated Press

  http://www.oregonlive.com/business/index.ssf/2010/03/wall_street_stocks_rise_slight.html

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Target offers coupons redeemable on your cell phone.

Target offers mobile couponsDiscounter Target Corp. announced today it will offer coupons that shoppers can receive on their cell phones. As they check-out, shoppers simply scan the bar code visible on their phone's screen to get the discounts.

Target says it's the first national retailer to offer mobile coupons, which customers can register for at Target.com/mobile. Or, shoppers can go to m.target.com on smartphones or text "COUPONS" to 827438 (TARGET).

The mobile coupons can be used only once and have expiration dates.

Customers also can view their gift cards, Target's online inventory and store locations on smartphones. I wrote about such retailer apps for The Oregonian's business section Sunday.
-- Laura Gunderson, The Oregonian; 503-221-8378
http://blog.oregonlive.com/windowshop/2010/03/target_offers_mobile_phone_cou.html

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Pringles Restaurant Cravers Cheeseburger and Pringles Family Faves Taco Night crisps contain a seasoning that has sparked a cascade of recalls of dips, soup, meat and other food.

A popular snack was added to an ever-growing recall list today, with Procter & Gamble Co. announcing it was pulling two varieties of Pringles.

The company said its Pringles Restaurant Cravers Cheeseburger and Pringles Family Faves Taco Night crisps contained a seasoning that could be contaminated with salmonella.

The seasoning — hydrolyzed vegetable protein — was supplied by Basic Food Flavors in Las Vegas. The discovery of salmonella in the seasoning several weeks ago sparked a cascade of recalls among manufacturers across the country.

The popular ingredient, which is used to replace MSG, adds a savory note. The Food and Drug Administration is pressing companies that added the seasoning after cooking or any treatment for microbes to pull the products.

More than 100 items have been recalled so far, including soups, meats and snacks.  Reser’s Fine Foods in Beaverton recalled dips, potato salad and dressing.

No one has reported getting sick. To ensure that doesn't happen, the FDA has a searchable database listing the recalled products on its Web site.

-- Lynne Terry

 
  http://www.oregonlive.com/business/index.ssf/2010/03/pringles_pulled_over_fears_of.html

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American Eagle drops its Martin + Osa brand aimed at adults

American Eagle Outfitters Inc. announced this afternoon it will close its 28 Martin + Osa stores and its online store by summer.

The company said sales at the off-shoot had improved from fiscal 2008, yet posted after-tax losses of around $44 million.

"Closing MARTIN+OSA was a difficult decision, particularly in light of the progress that was made over the past year," said Jim O'Donnell, chief executive officer. "However, it is in the best interest of our company and stakeholders to focus our efforts on the brands that capitalize on our strengths and have the highest potential."

American Eagle said it would continue operating its remaining brands, including AE, which targets 15 to 25 year old girls and guys, with 939 stores; aerie, an intimates collection for girls with 137 stores; and 77kids, an online-only store for children age 2 to 10.

No Martin + Osa stores were located in Oregon; closest was in Bellevue, Wash.
-- Laura Gunderson, The Oregonian; 503-221-8378
http://blog.oregonlive.com/windowshop/2010/03/abercrombie_fitch_pulls_plug_o.html

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