Nation digest 10/16/01

Inventories pared for seventh straight month

WASHINGTON -- Businesses pared inventories in August for the seventh straight month, helped out by a tiny gain in sales. But economists say stocks could pile up again if consumers, shaken by the terror attacks, stay away from stores.

Unsold goods on shelves and backlots fell by a seasonally adjusted 0.1 percent in August, following an even bigger decline of 0.5 percent in July, the Commerce Department reported Monday.

At the same time, business sales rose by a slim 0.1 percent in August, after a solid 0.4 percent gain.

Economists say companies must whittle excess stocks in order to set the stage for increased production in the future, something that could help economic growth down the road.

Fugitive frees hostages, shoots second escapee

MONTAGUE, Texas -- The last of five escaped Texas inmates were captured Monday after one of them shot the other in a standoff at a couple's farmhouse.

Bob Harold Leach, one of the last two men on the run, freed the farm couple they were holding hostage. Then he shot his fellow fugitive, Gerald Lynn Gantt, in the abdomen, and gave up. Gantt was hospitalized in good condition.

"It was a matter of one of the suspects wanting to come out and the other not, and a conflict between the two," District Attorney Tim Cole said.

Leach, 38; Gantt, 20; and three others broke out of the Grayson County Jail, about 60 miles north of Dallas, last Thursday night.

Leach was not charged in the shooting of Gantt, who authorities said was holding a gun at the time.

Judge won't delay SLA trial because of Sept. 11

LOS ANGELES -- A judge Monday refused to postpone the trial of a former Symbionese Liberation Army radical despite fears that she cannot get a fair jury in the aftermath of the Sept. 11 terrorist attacks.

Sara Jane Olson, 54, is charged with attempting to murder police officers 26 years ago by placing bombs under squad cars. The plot was aimed at avenging the deaths of other SLA members.

"Certainly one of the issues to be addressed is how the events of Sept. 11 affected jurors," Superior Court Judge Larry Paul Fidler said. "If we see a pattern developing, we will have to rethink whether this case can move forward. Right now I can't see any reason that it can't begin."

The initial phase of jury selection began Monday.

Workers strike at tank manufacturing plant

STERLING HEIGHTS, Mich. -- More than 800 employees went on strike Monday at General Dynamics Land Systems, which makes tanks and other equipment for the military, a company spokesman said.

Contract negotiations with the United Auto Workers continued past a midnight deadline without reaching an agreement, spokesman Peter Keating said.

The company designs, manufactures and supports land and amphibious combat systems for the Army, the Marine Corps and allied nations.

UAW officials were not available for comment.

Nonunion employees will continue operations, and the company will continue production, Keating said. He said he could not discuss key contract issues.

Strikers said it was regrettable that they walked off the job during a time of war, but the contract ended and the union voted overwhelmingly to strike.

Workers said they walked off the job because of health care and pension issues.

-- From wire reports