When Harry Zekelman died suddenly in 1986, his sons assumed control of their father’s Ontario-based steel tube company. In the course of two decades, Barry Zekelman and his brothers built Atlas Tube into the largest manufacturer of steel tubing in the world. In 2006, the Zekelman boys sold a majority stake in Atlas to the huge Carlyle Group, which then merged Atlas with its other steel company, John Maneely Company. Barry Zekelman became the CEO of the combined firm. In 2008, OAO Novolipetsk Steel, part of a Russian conglomerate, agreed to buy Maneely and the Zekelmans’ remaining interest in Atlas. In the financial turmoil of the past year, the deal fell through. Even without it, Zekelman’s not going to miss his next mortgage payment. He and his brothers made about $1.5 billion on the original agreement with Carlyle.
Law enforcement agencies in Washington will no longer be able to confiscate automobiles from innocent vehicle owners thanks to a ruling handed down yesterday by the state’s highest court. The Supreme Court of Washington ordered the return of a 2004 Nissan Sentra and a 1970 Chevrolet Chevelle that the Snohomish Regional Drug Task Force had grabbed from the parents of Thomas E. Roos, 27. Problems for the younger Roos began when he was first caught on June 10, 2005 driving in the Nissan with illicit drugs and a lot of cash. The Nissan was impounded, but Roos was able to forge his father’s signature to retrieve it from the lot before his parents found out. By September, he had been arrested three more times and the task force had permanently confiscated both cars.
According to a recently released Costa Mesa (CA) city council report, the total number of accidents at intersections equipped with red light cameras has increased. The city report did not provide a complete analysis of results at every monitored intersection throughout the past six years. Instead, it cherry-picked data from just two intersections, Harbor Boulevard and Bristol Street and Bristol Street and Anton Boulevard. It then chose four intersections without cameras and compared their performance between 2001 to 2003 (before cameras) and 2006 to 2008 (after cameras). Even with cherry-picked locations, the total number of accidents increased 13 percent while the camera-free intersections experienced a five percent decrease. Rear end collisions also jumped 20 percent with cameras, and dropped 10 percent without; a finding consistent with a number of independent studies of the effects of red light camera use (view studies).
According to data released last week at a Peoria (Arizona) council study session, the number of traffic accidents doubled at locations where red light cameras were installed. City data also indicate that more recent changes in intersection yellow timing have reduced the number of red light violations. So far, the financial impact of the program has been substantial. On January 31, 2008, the city authorized an Australian company, Redflex Traffic Systems, to issue automated traffic violations at four city intersections. As of June 30, 2009, Redflex had mailed 25,706 citations worth $5,501,084.
On Friday, Alaska’s Supreme Court upheld the right of defendants to present scientific evidence at trial in cases involving driving under the influence of alcohol (DUI). In 2004, the state legislature sought to muzzle defense attorneys who cited medical evidence on alcohol absorption rates in a way that would have undermined conviction rates. The case in question . . .
If it sounds too good to be true, someone somewhere is scamming someone somewhere. This morning’s story in Automotive News [AN, sub] would almost have us believe that former Brilliance automotive CEO Yang Rong is “leading a venture to build a $6.5 billion auto plant in northern Mississippi, where he would hire 25,000 workers to eventually produce 1 million cars a year.” ‘Cause, you know, the U.S. market has room for another mainstream automotive brand. To its credit, AN sees a few problems with the concept: “It would be easy to dismiss his proposal out of hand. The plan has no brand, products or retail network. But Yang oversaw a rise from nowhere in Brilliance’s fortunes in the 1990s, and he has been attracting money from some of China’s wealthy residents.” The last part of that statement is the most credible; and it doesn’t bode well for anyone gullible enough to invest in Rong’s visionary vehicles. Oh, and Uncle Sam’s part of the scam . . .
Despite the clear message sent by voters in 1992, the city of Batavia, Illinois is busy pursuing a return to the use of photo enforcement. Police Chief Gary J. Schira made a sales pitch to the city council last month on behalf of the private companies that operate red light camera systems, hoping to add the lucrative program to his budget. Minutes from a Government Services Committee meeting on November 19, 2008 described the intention of city leaders:
According to CBS News, an ex-lawyer for Toyota of North America has filed a racketeering suit against his former employer. ToMoCo’s former managing counsel Dimitrios P. Biller accused the automaker of illegally withholding evidence in hundreds of rollover death and injury cases, in a “ruthless conspiracy” to suppress evidence of its vehicles “structural shortcomings.” Further, “Biller’s 75-page complaint [download pdf here] says that when he came to Toyota after nearly 15 years in private practice, he was ‘surprised and alarmed’ to discover that the company was not producing e-mails and other electronically stored information to plaintiffs as he said was required. According to the lawsuit, Biller repeatedly complained to supervisors that the company was illegally withholding evidence. The lawsuit further states that the resulting conflicts ultimately caused Biller to suffer a mental breakdown and led to his forced resignation in September 2007. He left with a $3.7 million severance agreement, court records show.” [thanks to Dennis for the link]
The South Dakota Supreme Court has limited the ability of police to search and interrogate innocent interstate travelers absent a reasonable and articulable suspicion of wrongdoing. The court considered the unique case of a vehicle search not made pursuant to a traffic stop, but while the owner was being detained before entering his vehicle. The ruling was based on a February 26, 2008 incident at an Interstate 90 rest stop near Spearfish. Sean Haar had parked his Subaru Outback at 3:20pm and went into the building to take a break. While inside, South Dakota Highway Patrolman Brian Swets pulled up on the scene, spotted the Illinois license plate on the Subaru, and parked in such a way as to block the vehicle from leaving.
Barry Zekelman is not short of a bob or two. Canada.com reports that the Windsor industrialist recently sold his steel tube-making business to Russia’s OAO Novolipetsk Steel for a cool $1.5b billion. Baz worked hard for the money; he helped build-up the family biz from its $2 million dollar roots. So it’s no surprise, really, that Zekelman isn’t a patient man when it comes to plunking down $1,553,354.47 for a Veyron-shaped plaything and getting bupkis in return. Earlier this month, Mr. Zekelman filed a lawsuit against VW’s luxury brand in Michigan court [pdf here]. After pointing out that “although it conducts business in Troy, Michigan, it has not registered with the Michigan Department of Energy, Labor and Economic Growth as required,” Zekelman’s briefs accuse Bugatti salesman Ross Dressel of ye olde bait and switch routine . . . .
A number of Florida cities that rushed to install red light cameras without legislative authorization now face legal challenge. Florida attorney Jack L. Townsend, Sr joined with the firm Edwards and Ragatz on July 30 in filing a class action lawsuit against the city of Temple Terrace for allowing American Traffic Solutions (ATS) to operate a traffic camera program designed to generate $3 million in annual revenue primarily from vehicles turning right on red lights. Because the state legislature has consistently declined to allow automated ticketing, the legal status of such systems has even been questioned by the leading photo enforcement vendor. “Legal opinions indicate that automated enforcement in the state of Florida remains illegal,” Redflex Traffic Systems explained in an Australian Securities Exchange filing (view statement, page 6, 1.8mb PDF). “Some competitors have proceeded at risk with early programs.”
The largest provider of red light camera and speed camera services in the US admitted yesterday that public opposition has begun to affect the bottom line. In an announcement to the Australian Securities Exchange (ASX), Melbourne-based Redflex Traffic Systems reported a nine percent drop in net profit for the year ended June 30, 2009. This has come about in part as motorists increasingly refuse to pay automated fines and use public pressure to force cities to eliminate photo enforcement programs. “We have been adversely affected by reduced collection rates on some of our US contracts, write-downs on several contracts that have not been renewed, extended start-up difficulties with a major state-wide speed contract in Arizona and costs in dealing with litigation and legislative issues,” a Redflex statement explained. “These and other factors have affected profitability for the year.”
In a desperate attempt to save lucrative photo enforcement programs in the face of widespread scandal, the Italy’s Ministry of Interior on Friday announced significant reforms to the way speed cameras and red light cameras are operated in the country. The move followed explosive allegations of corruption involving over one hundred public officials and a number of executives from the photo enforcement industry. The investigation is ongoing with police forces having conducted raids and arrests earlier this month, in June and in January. Interior Minister Roberto Maroni set out the new regulations in a directive issued to local authorities. “The primary objective is… to plan (speed) control activities so that they represent a real tool of prevention and not merely a means to raise cash,” Maroni said in a statement. “Speed control is a police service that cannot be delegated to companies that rent equipment.”
Women are responsible for an increasing number of drunk-driving arrests, according to data released today by the NHTSA. FBI statistics (PDF) show that DUI arrests of men fell 7.5 percent between 1998 and 2007, while the arrest rate for women climbed by nearly 29 percent in the same period. In absolute terms though, men still drink and drive far more: 626,371 DUI arrests of men were made in 2007, compared to 162,493 for women. According to NHTSA’s new Alcohol Impaired Drivers Involved In Fatal Crashes study (PDF) though, state-by-state analysis confirms that women are working towards evening the score.
An unaccountable transportation body in North Central Texas on Thursday awarded $3,615,214 in taxpayer money to a foreign corporation for its failure to produce a winning toll road project bid. The Regional Transportation Council (RTC) of the North Texas Council of Governments approved the payment to Cintra Concesiones de Infraestructuras de Transporte, a Spanish company, as a “stipend for unsuccessful bidders” and for costs associated with applications the company made for loans that would have been backed by federal taxpayers.
Recent Comments