Cleaners can help keep it flying

Suddenly on Sept. 11 the world changed. The everyday concerns of individuals faded into a single larger concern of a whole nation horrified by attacks on symbols of America's strength and enterprise. But the flames that consumed the World Trade Center and a portion of the Pentagon also ignited an American spirit with a burning intensity unseen in many years.

While two symbols of America lay smoldering, the nation's greatest symbol -- its flag -- rose from the ashes, and soon flags were flying from homes and businesses across the land, many in places where they had never before been seen. Clearly, flag-waving is back in style. For the nation's drycleaners, who like everyone else want to do something to help, that poses a special opportunity. The International Fabricare Institute revived a long dormant "Clean the Flag for Free" program, urging all cleaners to show their support for the country by offering to clean the Star-Spangled Banner for free.

IFI will include a tear-out poster in October issue of Fabricare magazine. The poster can be displayed in windows or inside the store to let customers know of the service offered by the cleaner.

IFI will also include instructions on how to properly clean an American flag. Make no mistake, many of the flags owned by private citizens have great personal significance and need to be treated as heirlooms as well as symbols of the nation.

"The attacks of September 11 are a national catastrophe from which Americans won't soon recover," said Bill Fisher, IFI's CEO. "It's easy for drycleaners to think there's little they can do to help in a time like this, but everybody can do something.

"As our nation unifies in the face of these those horrible attacks, we're encouraging all cleaners to show their solidarity and pride by offering free flag cleaning to the public. This may seem like a small measure, but it is a very simple and effective way for cleaners to aid the country and provide some emotional support to its citizens. The more cleaners that get behind this, the greater impact this effort will have."

An IFI-affiliate association, the Pennsylvania and Delaware Drycleaners Association, responded quickly to the call by mailing its own version of "Clean the Flag for Free" posters to its members within days of the tragedy. That poster is reproduced in a smaller size on the front page of this issue and can be used for counter display by cleaners who want to participate.

"We urge you to participate. It is a small gesture, but small gestures by every citizen help to unite us at this terrible time," PDCA said in a letter accompanying the posters. "Even the picture of the flag is a visible sign of your concern."

The World Trade Center attack hit perilously close to home for the New York City-based Neighborhood Cleaners Association. NCA's offices are in Midtown Manhattan, a few miles north of the Trade Center.

"There's not a person in the office who hasn't somehow been touched by this," said NCA's Ann Hargrove. One NCA staff person was actually on the missing persons list until it was learned that he was out of town at the time of the attack.

Meanwhile other NCA staff members pitched in on the city-wide relief effort as all New York pulled together in the aftermath of the terrorist onslaught.

"Do you know how it is at Christmas time when everyone is nice to each other?" Hargrove asked. "That's the way it is here now. A lot of people are doing good things. We are trying to be better people."

NCA was encouraging its members to support the World Trade Center recovery effort with a "Don't Pay Us" program. The program encourages members to offer police, firefighters and military personnel the option of donating the cost of cleaning their uniforms to the Twin Towers Relief Fund.

"Please don't pay us to clean your rescue uniform," an NCA poster requests. "Donate the cost of cleaning to the Twin Towers Fund."

Cleaners who want to participate are invited to send a fax to (212) 967-2240 or e-mail ncaiclean@aol.com.

One problem facing NCA in the days following the attack was a lack of phone service, particularly for long-distance calls. Ten days after the attack, NCA reported that service was "sporadic" and asked for patience for people trying to contact the association by phone.

The show goes on

The association was also faced with a decision concerning its trade show scheduled for northern New Jersey this month.

"After talking to some of the exhibitors about the possibility of postponing, we decided to go ahead," said Hargrove. She said there had been no cancellations by exhibitors, nor had anyone canceled reservations at the hotels near the exhibit center in Edison, NJ.

So the show will go on as planned, Oct. 13-14.

"There seems to be a 'get back to work" attitude,' Hargrove said.

Home drycleaning market appears to be drying up

Suddenly, home drycleaning isn't?

It has been two years since Procter & Gamble launched an aggressive marketing campaign for its flagship home drycleaning product Dryel. Many cleaners remember one controversial Dryel slogan that could be found on billboards across the U.S.: "Suddenly Drycleaning OnlyŠ Isn't." Some believed the message implied that "Dryclean Only" labels were in danger of being repealed.

That wasn't the case. Care labels were unaffected. On the other hand, the home drycleaning market, projected by some as having potential of $500 million or more, may be facing some danger of its own.

Both Clorox Corp. and Dial Corp., who had followed P&G with their own versions of home drycleaning kits, recently announced that they will be discontinuing those products which failed to meet projected sales expectations by a substantial margin.

According to the latest figures tabulated from Information Resources Inc., Custom Cleaner (www.customcleaner.com) earned about $12 million in U.S. sales for the 52-week period that ended on July 15. The product, which is co-owned by Dial and a German consumer products company named Henkel, claims to "safely freshen clothes between dry cleanings."

Clorox's own garment refreshening product, Clorox FreshCare (www.freshcare.com), garnered approximately $11.6 million in annual sales.

The sales figures for home kits from Clorox and Dial comprised less than one-third of the total home drycleaning market, which topped off at almost $77 million for the year.

In a recent article in the Sept. 10, 2001 issue of Advertising Age magazine, a spokeswoman from Clorox was quoted to say, "The category wasn't as big as it was first projected."

Bill Fisher, CEO of the International Fabricare Institute, concurred. "From the time of its initial launch, IFI has predicted that Dryel and its cousins would take very little of the traditional drycleaning market from the industry. The latest sales figures bear that out. P&G predicted $300 million in sales for Dryel in the United States, but consumers have only spent 25 percent of that spread among four different companies."

The market leader in home drycleaning sales leader, P&G's Dryel (www.dryel.com), had $50.6 million of sales in its first full year, but that figure is still about one-sixth of the company's initial market projections. P&G also estimated that Dryel would reach about a half of a billion dollars in sales globally during its first year.

Dry Cleaner's Secret, the last company in the home drycleaning ring, only earned $2.5 million in sales. However, the departure of Clorox and Dial has benefited the company some by reducing the competition, according to the company President-CEO Scott Heim.

In fact, Dry Cleaner's Secret (www.drycleanerssecret.com) has no intentions of dropping out of the market. Instead, the company has obtained two new distributors -- Amway and the Home Shopping Network -- and is also planning to expand to Europe, a market that was left wide open when P&G pulled Dryel off the shelves back in June in order to concentrate more on the company's marketing in the United States.

The next wave
Although sales expectations for Dryel were not met, P&G is still gambling that home drycleaning is a profitable market. Advertising Age reported that the company will soon be launching a print campaign for Dryel that will hit magazines, including Time Inc.'s People, in October.

P&G also plans to capture more consumer dollars with an ongoing joint venture with the world's leading home appliance manufacturer, Whirlpool.

P&G developed a Presiva (www.presiva.com) clothes care formula that can be applied to Whirpool's Personal Valet clothes vitalizing system, the first entry into the appliance market for Whirlpool in over 30 years.

Personal Valet is designed to remove wrinkles from garments and eliminate odors. Whirlpool claims that the machine is safe for virtually all fabrics, including silk, wool, cotton, rayon and beads and sequins.

The Personal Valet appliance looks like an ordinary double-door cabinet. Clothes are placed on hangers inside and the doors are closed shut. Once the cycle begins, P&G's Presiva formula is heat-activated into a mist that circulates through the clothing's fibers. Regular cycles last about 30 minutes.

On the product's web site (www.personalvalet.com), Whirlpool says that the need for a Personal Valet appliance has been indicated by various statistical studies, such as the 1996 Clothing Care National Habits and Practices survey, which claims that 29 percent of all drycleaned clothes are sent to cleaners simply for wrinkle removal.

The survey also revealed that ironing is the second-most hated household chore (behind washing windows) among those surveyed. Other results quoted on Personal Valet's site include: 84% of those surveyed believed that drycleaning was too expensive, 62% reported performance problems with cleaners, and 34% believed that it was a hassle taking clothes to the cleaners.

Even if Whirlpool and P&G's joint project appeals to the public, it still remains to be seen how much consumers will be willing to spend on it. Basic Personal Valet units have been given a Manufacturer's Suggested Retail Price of $799. Deluxe models have an M.S.R.P. of $999.

Accessories for the appliance, designed to accommodate specific clothes refreshening needs range between $89 and $119. P&G's Presiva formula, which comes in different bottles for "Crisp" and "Soft" fabrics, costs $11.99 per bottle, a price comparable to the home drycleaning kit refills for Dryel.

Currently, the Personal Valet is available for purchase on its web site. Additionally, Whirlpool has opened up the market in Indiana and North Carolina, offering the appliance at about 20 retail stores, including individual branches of Best Buy and Sears.

Television commercials for the Personal Valet can already be downloaded from the site, including a peculiar ad that features a brightly-lit forest fairy breathing white mist onto garments in order to magically refreshen them. Voice-over narration says, "Imagine tired morning clothes made fresh and ready for you. The Personal Valet Clothes Vitalizing System from Whirlpool -- inside a patented process smoothes wrinkles and cleans odors in about thirty minutes."

While it remains to be seen whether or not Personal Valet's unorthodox ad campaign will strike a consumer nerve, IFI's Fisher believes that the appliance will run into problems similar to those that have plagued the home drycleaning kits.

"We think the announcement of plans to offer home drycleaning machines will either be a non-starter or will have no impact," he said.

"Our best analysis of the situation is that consumers will not be willing to spend the money, nor do most have available space for these units just so they can create more work for themselves."

Texas court overturns judgment against Street's

The Court of Appeals for the First District of Texas has overturned a judge's ruling that held R.R. Street & Co. Inc. liable for clean-up costs associated with drycleaning sites operated by Pilgrim Cleaners in Houston and San Antonio.

The Appeals Court ruling upholds a 1998 jury verdict that followed a nine-week trial before District Court Judge Dwight Jefferson. The jury found Street's not liable for sharing a portion of $12 million in perc contamination cleanup costs incurred by the Pilgrim operations. Three months after the July, 1998, jury verdict, Judge Jefferson ordered Street's to pay $1.5 million to Pilgrim. The judge said his decision was based on his interpretation of the Texas Solid Waste Disposal Act (TSWDA).

In its Aug. 31 ruling, the Appeals Court said Judge Jefferson committed reversible error by awarding damages against Street under the TSWDA. In overturning Judge Jefferson's judgment, the court ordered Pilgrim to pay the costs incurred by reason of the appeal.

The Appeals Court said the judge should have allowed the jury to hear evidence related to the allegations against Street's under the TSWDA and remanded that part of the matter to the lower District Trial Court for a jury to hear and make its findings.

Pilgrim Cleaners initially filed the suit against Street's and other manufacturers and suppliers in 1997, claiming that the those companies should be held liable for sharing in its cleanup costs.

Pilgrim Cleaners' position was that the defendant companies had failed to advise them that "the normal and intended uses of perc in their drycleaning machinery could lead to environmental contamination, that traces or minute amounts of perc could cause environmental contamination, (and) that drycleaning equipment such as separators did not properly separate water and perc."

All defendants other than Street's settled out of court. At the time of the jury verdict, Street's said it had chosen not to settle because it wanted to "maintain its practice of defending itself against claims that it knows to be without merit."

The trial began in April, 1998, and the District Court jury ruled in favor of Street's by a verdict of 11-1 on July 20, 1998.

However, in a change of fortune, Judge Jefferson issued a verdict separate from the jury on Oct. 12, ruling that Pilgrim Cleaners should be rewarded $1.5 million from R.R. Street.

Street's appealed the ruling, leading to the recent Court of Appeals decision on Aug. 31.

In a press release following the decision, Street's stated that it was "pleased" with the Court of Appeals decision to uphold the original jury verdict and to reverse Judge Jefferson's judgment. Street also said that it "fully expects to prevail" on the upcoming lower District Trial Court matters involving the evidence that was previously denied to the jury by Judge Jefferson.

The decision was also hailed by the Textile Care Allied Trades Association, which commented: "These findings are extremely important to nearly all TCATA's manufacturer members primarily because the court rejected the theory that Street's was a responsible party based merely upon the sale of filtration and distillation equipment.

"Under this theory, a company could be held liable as an 'arranger' for disposal of waste. Had this argument prevailed, many manufacturers could face responsibility merely through the standard sale of a variety of equipment and supplies -- not just chemicals. Thankfully, the court rejected this argument, TCATA said.

At the time of the 1998 trial, Street's had declared that "it did not, arrange for the processing of waste" and that federal, state and local regulations "clearly state that it is the generator of the waste, i.e. the drycleaner, who remains responsible for the proper disposal of waste and in fact under these laws, the generator of the waste retains responsibility for that waste from 'cradle to grave,' no matter what other parties they use to transport and ultimately dispose of that waste."

Pilgrim Cleaners' contention was that "any party responsible for contamination was strictly liable for cleanup costs whether or not their product was defective."

IFI organizes support for Olympics

Drycleaners will have an opportunity to display their American spirit with the International Fabricare Institute project known as "Operation Running Clean."

The project's inception originally occurred back in 1996 when IFI sought volunteer members to support the Olympic Torch Relay Team during the Summer Olympics, which were held in Atlanta, GA.

In all, 65 plants cleaned the pants, polo shirts and mesh bags that contained personal items for the 150-member support crew whose job was to relay the Olympic torch through its 12-week journey across the United States, covering a total distance of 15,000 miles.

Over 30,000 pounds of laundry was processed at 24 stops along the route and one individual drycleaner, Jim Patrie of Fashion Care in Atlanta, GA, had the rare privilege of carrying the Olympic torch for part of its tour.

This time around, IFI is seeking help from its members for the 150-member team that will carry the torch for the Winter Olympics scheduled for Salt Lake City, UT, in February of 2002.

The Torch Relay Team's route will cut through approximately 15 cities. The dates and cities for the planned stops include: Dec. 8, Mobile, AL; Dec. 11, Ft. Worth, TX; Dec. 15, Nashville, TN; Dec. 19; Pittsburgh, PA; Dec. 23, New York City, NY; Dec. 29, Lake George, NY; Jan. 2, Columbus, OH; Jan. 6, Detroit, MI; Jan. 10, Wichita, KS; Jan. 14, Laguna, CA; Jan. 18, San Francisco, CA; Jan. 22. Vancouver, WA; Jan. 26, Idaho Falls, ID; Jan. 30, Denver, CO; and Feb. 4, St. George, UT.

According to IFI, member cleaners who volunteer the use of their plants to service the dirty clothing of the Olympic Torch Relay Team should bear in mind that all cleaning must be done free of charge.

It also should be noted that a quick turn-around time on the garments is imperative. In all likelihood, the garments will be dropped off after 5 p.m. in the evening and be needed by 6:30 a.m. the following morning.

Cleaners who take part in "Operation Running Clean" will be rewarded for their efforts with a commemorative framed Olympic shirt and a certificate of appreciation that can be displayed in your office or by the front counter.

IFI will be working in conjunction with the Olympic committee in order to create specific press releases for each participant so they can be sent to local media. Also, IFI will recognize the participating cleaners in an upcoming issue of the association's newsletter, Fabricare.

If volunteers do not come forward from the 15 cities on the Olympic torch tour, IFI may seek assistance by contacting cleaners in those areas.

Anyone interested in helping with the program should contact Jon Meijer at IFI (301) 622-1900, ext. 145.

Drycleaners accounted for third of Clean show crowd

According to information provided on registration forms, drycleaners accounted for nearly one-third of the attendees at this year's Clean show held last July in New Orleans.

Of the 10,480 attendees at the show, 8,409 provided business category information on their registration forms. Of those, 2,635 -- 31.3 percent -- identified their business as "drycleaning plant." The second largest category, equipment supplier or distributor, accounted for 17.7 percent of attendees followed by linen uniform and health care services, 10.3 percent, coin/card laundry, 10 percent and industrial/institutional launderers, 9.4 percent.

Attendee categories also included "other," 8.8 percent, health care laundry, 5.2 percent, industry consultant at 2 percent; dust control, 1.8 percent; coin/card laundry with on-site drycleaning, 2.9 percent; and wetcleaner, 0.4 percent.

The show's overall attendance of 16,550 included 6,070 registered exhibitors, making for an attendees to exhibitor ratio of just under 2-to-1. The show's 562 exhibiting companies used 270,757 net square feet of floor space.

The attendance total was off by about 17 percent from the 1999 show in Orlando and the size of show both in terms of number of exhibiting companies and overall square footage, was down somewhat, too. However, the show's organizers, cosponsors, exhibitors and attendees have expressed general approval and satisfaction with this year's exhibition.

International attendance was off this year, too. While the Orlando show drew 2,753 attendees from 85 nations, the New Orleans show had 1,548 from 79 nations.

Overall, international attendees and exhibitors accounted for 12 percent of the total attendance in New Orleans.

The next Clean Show will be held in Las Vegas Aug. 11-14, 2003. The Clean Show visited Las Vegas twice in the 1990s -- 1991 and 1997. The 1997 show ranks as the all-time best draw for attendance.

Tentative plans for the future have the Clean Show back in Orlando in 2005 and in New Orleans again in 2007.

The Clean Show web site, www.cleanshow.com, provides updates on show plans as they become available. Information is also available from the Clean show's management firm, Riddle & Associates, (404) 876-1988.

Each of the six industry associations that sponsor the Clean Show have a representative on the Clean Executive Committee. They are Brian Wallace, Coin Laundry Association; William Fisher, International Fabricare Institute; Ken Tyler, National Association of Institutional Linen Management; David Cotter, Textile Care Allied Trades Association; Burton Eller, Textile Rental Services Association of America, and David Hobson, Uniform & Textile Service Association.

IFI's Fisher serves as chairman of the committee.

An interview with Dr. Paul Dugard

EDITOR'S NOTE:The following article, which discusses ongoing research into the effects of perc exposure on humans, is reprinted from Spot News, a quarterly publication from Dow. In this article, Spot News interviews Dr. Paul H. Dugard, director of scientific programs for the Halogenated Solvents Industry Alliance (HSIA). He is responsible for devising and managing research programs, and for the preparation of scientific documents.

A native of England, Dugard received his primary degree in zoology in 1966 from the University of Cardiff South Wales. He received his Ph.D. in skin physiology in 1970 from Queens University, Belfast, North Ireland. He completed three and a half years of postdoctoral research at the Harvard Medical School at Massachusetts General Hospital, Department of Dermatology. He was employed by ICI for 24 years before joining HSIA, 16 of those at ICI's Central Toxicology Laboratory. Dugard is a Diplomat in Toxicology at the Royal College of Pathologists and has published over 30 scientific papers and book chapters.

HSIA has begun two important and potentially impactful studies on perchloroethylene (perc). One is a "mechanistic" study that seeks to determine the differences between rodents and humans when each species is exposed to high doses of perc. The other is an "epidemiology" study of drycleaning populations to find any association between their health and their exposure to perc over an extended period of time.

The findings of these studies could greatly influence not only research into the causes and effects of human cancer, but also new regulations developed by the Occupational, Safety and Health Administration (OSHA) and the Environmental Protection Agency (EPA).

Spot News: To begin, Dr. Dugard, we would like to thank you for taking some time out to speak with us. Would you give us some background on the two perchloroethylene studies HSIA has undertaken?

Dugard: My pleasure. As your readers may be aware, perchloroethylene has been around for quite some time now, and much work has been done on the possible effects perc may have in both humans and animals.

The potential for perc to cause cancer began to be investigated seriously between the late 1970s and mid-1980s. Around that time, the National Toxicology Program (NTP) began studies to test for cancer in rats and mice. This has led to the "mechanistic" type of study that HSIA is undertaking now. We have also begun an "epidemiology" study, a scientific investigation into a population of humans.

In this case we're studying a population of drycleaners that were exposed to perc over an extended period of time. These are the two studies I will discuss in greater detail.

Spot News: There's been news about another epidemiological study recently, hasn't there?

Dugard: Yes, a study was recently published by the National Institute of Occupational Safety and Health (NIOSH), a non-regulatory government agency that develops scientific issues for agencies like OSHA.

Like the other existing studies on perc or on drycleaners, this study has limitations that are freely acknowledged by the authors, which belie their controversial interpretation of the results. Even though we have some good information from this study, the fact remains that it's not definitive and questions remain unanswered.

Spot News: Before we discuss the HSIA studies, what is the current situation on the regulatory side?

Dugard: Well, OSHA is working on a perc standard, and the EPA is updating their IRIS (Integrated Risk Information System) database. This is significant because this database determines the EPA's definitive position on the toxicity of a given chemical.

The National Emission Standards for Hazardous Air Pollutants (NESHAP), brought out under the Clean Air Act, already applies to drycleaning, as your readers are aware. The NESHAP, you may recall, defines the quality of equipment that should be used by drycleaners.

The next stage of the NESHAP process considers the success of the program by assessing "residual risk," and this will be based on the information in the IRIS database.

Both OSHA and the EPA are currently doing risk assessments for cancer, both operate under a conservative mode, both will assume the worst where there are uncertainties, and both will do their calculations accordingly.

Spot News: Let's discuss the science behind the HSIA-sponsored mechanistic study.

Dugard: Thus far, in terms of mechanism, we know that perc is not genotoxic -- it does not attack DNA directly. Therefore, we can say with certainty that perc, or materials created from perc in the body, do not create mutations that may lead to cancer

The most important by-product of perc metabolism is trichloroacetic acid (TCA) in both the human body and in animals. This is a member of a class of chemicals that cause certain organelles to proliferate or multiply in rodents. This is called "peroxisome proliferation."

It is interesting to note that a number of commonly used human drugs are potent peroxisome proliferators.

In comparison, perc and TCA are very weak agents in this process. However, at very high exposure levels they, like other peroxisome proliferators, have been found to cause liver tumors and cancers in mice

The more potent peroxisome proliferators cause liver tumors in both rats and mice. Interestingly enough, higher species of animals, even species like hamsters, do not develop these tumors. Thus, there are no signs that perc causes peroxisome proliferation in humans, and there is no evidence that peroxisome proliferators, no matter how potent they are in rodents, cause liver tumors in humans -- or any other types of tumors for that matter

In a nutshell, what this means overall is that when humans -- or human liver cells in the lab, to be more specific -- are exposed to perchloroethylene in the same doses as rats or mice, there is no reaction. We get a non-response.

Spot News: Why has the occurrence of liver tumors in rats and mice been linked to humans then?

Dugard: First off, let me say that the difference between rats and mice and humans in these studies is very clear cut. The Food and Drug Administration (FDA) recognizes this difference and is not concerned about peroxisome proliferation in humans.

In the same way, European agencies show low concern about the mouse liver tumors and perc causing cancers in humans because they recognize the differences between rodents and humans in these studies.

OSHA and the EPA, however, in their conservative mode, still consider the occurrence of rodent liver tumors to be relevant to humans and they still plug that effect into their calculations of risk.

Although the evidence to the contrary is pretty strong, it will probably be 10 to 20 years before they finally acknowledge it.

Spot News: How does this relate to the current study undertaken by the HSIA?

Dugard: What we are trying to do in our project is refine the basis for this risk assessment. In other words, the information coming out of this study may allow OSHA and the EPA to do a more realistic risk assessment, since our study is founded on good science. Of course, they may still operate conservatively, but we want the scientific and regulatory communities to understand that there is a solid foundation of fact here.

Spot News: How is the epidemiology study different and what are you attempting to prove?

Dugard: A number of epidemiology studies have been published with no definitive outcome.

We have been looking for a while for a way to study the U.S. population of drycleaners, or other people exposed to perc for that matter, as a way of clarifying the observations from other studies.

Our study emerged as a result of an approach used by our European sister organization, the European Chlorinated Solvents Association (ECSA).

Their original project focused primarily on Denmark, but this proved to have too few subjects exposed to perc to answer the questions being asked.

However, this led to a new project that includes the other Nordic countries as well. This was attractive to us because those countries have cancer registries that have been running for a number of years, as well as census data that include people's occupations, and we are fortunate enough to have access to these two databases. This study is being run by the University of Copenhagen and is funded by HSIA.

What evolved then was this multi-country study that includes Denmark, Sweden, Finland, and Norway. Even though there are similarities between these countries, at times questionnaires will have to be used to get the additional data that is needed. The whole point of this study is to investigate specific tumor types that people have suggested might be associated with either drycleaning or perc exposures.

Spot News: What has been found so far?

Dugard: The best studies that have been done so far are called "cohort" studies -- studies that compare a population of drycleaners with a control population, like the U.S. population in general. Such a study looks at population groups and all causes of death to see if there are any associations.

Finding an association, however, is a long way from proving causation. In a study such as this we have to take into account many additional factors, called "confounders." Smoking and drinking, for example, have been associated with esophageal cancer, which has been suggested by one group to be associated with perc exposure.

Thus we can't say that perc causes esophageal cancer if we haven't taken into account that the incidence of smoking or drinking or both. Previous studies didn't take such factors into account, and thus are difficult to interpret.

Spot News: What has been the HSIA approach in solving these research problems?

Dugard: What we are trying to do is cut through these types of problems, so we are running a case-control study. This means that we take cases of esophageal cancer, see how those are represented in the drycleaning population, and compare this with a control population -- in this case, laundry workers.

Our approach then is a case-control study across the Nordic countries, giving us a large enough population of drycleaners and laundry workers that we can make meaningful comparisons in the statistical sense. We are trying to clarify and answer questions raised by previous human studies.

Spot News: What types of cancers are being investigated?

Dugard: We are investigating esophageal cancer, non-Hodgkin's lymphoma, renal cell carcinoma, and liver, cervical, bladder, and pancreatic cancers. There is no convincing evidence that these cancers are caused by any elements in drycleaning.

Spot News: When will these studies be finished?

Dugard: For the mechanistic study, we have to acquire suitable human liver samples from a variety of sources, testing them as we go, and that's about a 12-month process in itself. The epidemiology study will probably take about two and a half years to complete. There is no risk assessment, as such, to follow the human study, only a straight report of whatever the findings may show. In contrast, the end-product of the mechanistic study has to be a risk assessment, whether sponsored by HSIA or done by a government agency.

Spot News: What will happen to the results once the studies are completed?

Dugard: The results will be published in scientific journals, and we hope to stimulate the scientific community to support our approaches. This will lend credibility to the projects. The results will be made public when each study is finished.

Basically what we hope to provide to OSHA and EPA is a better basis for their calculations of risk. Our mechanistic information should allow calculations that do a much better job of taking into account the differences between mice and humans.

Spot News: What is HSIA doing to further the awareness of these studies now?

Dugard: HSIA sends out a bimonthly newsletter called the Update and posts information on its web site, including detailed white papers.

We are talking to regulatory agencies such as OSHA and EPA and keeping them informed and updated on our progress. They are open to good science. We are spending a considerable amount of money for these elective studies, but our HSIA members are enthusiastic about them and are supportive of our efforts to complete them.

For more information about HSIA and the studies underway, visit the HSIA web site, www.hsia.org, call (202) 775-0232, or write to HSIA, 2001 L Street NW, Suite 506a, Washington, DC 20036.

Clean Canada trade show moves to larger exhibit hall

Clean Canada 2002 is moving to a larger exhibit facility.

The trade show, which represents the multi-million dollar Canadian textile care industry, will take place from April 12-14, 2002 at the International Centre at 6900 Airport Road in Mississauga, Ontario. Previously, the show was scheduled to be at the Toronto Congress Centre, but the venue did not contain enough space for exhibitors.

"The demand for exhibit space and special meeting rooms has been phenomenal," said Harley Austin, manager of Clean Canada 2002. "The first facility we booked simply could not meet our requirements."

"The International Centre's Hall 5 is ideal for the show," he added. "It's a larger facility offering exceptional services for exhibitors and visitors. And, like the first facility, it's close to Toronto's International Airport and the hotels used by our exhibitors and visitors."

The exhibiting hours for the show have remained the same. The schedule is: 11 a.m. to 6 p.m. on Friday, April 12; 10 a.m. to 5 p.m. on Saturday, April 13; and 10 a.m. to 5 p.m. on Sunday, April 14.

For more information, contact Canadian National Show Management at (888) 695-2677 or (416) 695-0309. They can also be reached by fax, (416) 695-0381, or e-mail, info@cnsm.ca.

Annual conference plans set for Ontario association

Plans are set for the Ontario Fabricare Association's annual conference, which will take place on Oct. 27 at the Novotel at 3067 Hurontario in Mississauga, Ontario.

The day's events will start at 8 a.m. with OFA's annual general meeting. Afterward, the first educational program is scheduled for 9 a.m. and will feature guest speaker Renata Neufeld. The topic of discussion will be the preparation for an ownership transition in business -- one of the greatest challenges faced by many business owners.

Following a refreshment break, Brad Cumming and Brad May, representatives from the Canadian federal government, will speak on pending regulations that the drycleaning industry faces now and in the future. The program will start at 10:30 a.m.

After lunch, James Jones and John Christensen will use a Co-Pilot approach to executive coaching at 1 p.m.

Co-Pilot is a holistic approach to coaching which considers the life work of the individual, as well as considering family and personal factors.

Ray Smith will present a program at 2:30 p.m. on machine maintenance. He will also discuss the advantages and disadvantages of alternative solvents.

Later in the evening, OFA will offer a Dave & Buster's Dinner Mystery Theatre at 6 p.m. Attendees will have an opportunity to test their sleuthing skills during dinner where guests and actors interact while witnessing a murder and attempting to solve it.

The choice for dinner will be either a lemon-herb grilled chicken breast or prime rib. Both entrees will be served with a caesar salad, fresh rolls and butter, roasted potato, fresh green beans and a chocolate raspberry parfait. Coffee and tea is also included in the price, which is $55 per person (plus GST).

The admission price also includes transportation to and from the Novotel.

The cost for OFA's annual conference is $150 for members, $75 for spouses/partners, and $200 for non-members.

Hotel Rooms at the Novotel in Mississauga, Ontario can be reserved at a rate of $112 for single or double occupancy. Reservations can be obtained by calling (800) NOVATEL. Callers should mention that they are affiliated with the OFA conference.

For more information about the event, contact OFA at (416) 255-2384.

EDITORIAL: How cleaners can do their part

Every clock in the world seemed to stop ticking on the morning of Sept. 11. Even now, weeks after the tragedy, it seems apparent that it will take several months, if not years, for Americans to come to terms with the devastation. Why did this happen? What could possibly be gained by sacrificing thousands of innocents? People of all cultures and political beliefs tried to find a reason, but none could be found.

Nothing can be said that will ever make up for all of the widowed spouses and orphaned children. Nothing can be done to fully vanquish the indomitable fear that now clings to the hearts of each and every one of us knowing that we will never, ever be truly safe again.

Yet, America is a nation borne out of a deep desire for freedom and equality for all -- notions that were carved out through our history by countless individuals who have shed blood for those beliefs. And, as Americans, we have a sense of obligation to pay tribute to those who have paid the ultimate cost for freedom. We do this by keeping the memory of the dead alive in our thoughts so that their dreams, and ours, never disappear.

The spirit of America may be comprised of intangible ideals, yet we honor those ideals with a physical manifestation -- the American flag -- a symbol that generates pride, hope and glory to our nation. Now, more than ever, Americans are displaying those familiar images of red, white and blue in hopes of showing our resilience to the unspeakable tragedy that occurred.

American flags can now be seen in this country from sea to shining sea, and, even though we cannot make sense of the destruction, the feeling of unity in our country is more stable than ever. Wherever the flag can be found flapping along the breeze, there is a sense that we can go on. We must go on.

Of course, if the white stripes are blemished, or patches of hardened dirt cause the blues and reds to fade, then the effectiveness of our country's greatest symbol is diminished a little. A clean, untarnished flag sends out a much stronger signal.

Millions have donated blood and money to help, and, though cleaners should certainly contribute those things, they are blessed with a singularly unique ability to help the entire nation. Cleaners can keep the American flags looking their best.

Perhaps offering to clean flags for free may not seem like the most significant of gestures from your plant, but it can be. After all, seeing a solitary, shimmering flag hoisted high in the air can be enough to provoke feelings of patriotism in the hearts of all those Americans within viewing distance.

But, the vision of millions of flags -- all spotless and unscathed -- can inspire the whole world.

EDITORIAL: Be your own drycleaner? No thanks!

It was just two years ago that Procter & Gamble launched an aggressive advertising campaign for Dryel, offered to the consuming public as a home care alternative for dryclean-only garments.

There was widespread concern at the time that P&G, with its marketing muscle, would cut into drycleaners' livelihood with Dryel. The corporate giant was making predictions of $300 million a year in sales, and drycleaners were calculating how much lost business that could mean.

It never really happened. Actual sales fell far short of those projections, as our front page story reports. P&G withdrew Dryel from the European market last summer and now two other major players, Clorox and Dial Corp., have withdrawn completely. The products that two years ago were prominently displayed in stores are now tucked away in hard to find corners. The buying public didn't buy it.

There is a reason that drycleaners exist, and that is to provide a service that most people have neither the time nor the expertise to do for themselves. As long as cleaners continue to provide that service capably and competently, "do-it-yourself" home solutions will be non-starters in the market place.

How mom and pop are getting along

Everyone has the right to an opinion. Opinions are good and necessary when they help in resolving problems by finding acceptable solutions using knowledge and experience in making decisions. But when opinions are based on fabricated facts and exaggerations, then such opinions are worthless.

On July 11, 2001, Greenpeace came out with this news release: "A drycleaning chemical is linked to hundreds of deaths, and Congress needs to take necessary steps to protect the public from this dangerous chemical (perc)."

They also brought attention to their findings that 1.2 million Americans are exposed to perc in drinking water levels that exceed the EPA's safety limit.

Who are the culprits who are doing this? They say it's the neighborhood drycleaner, that's who.

Here is another message Greenpeace is putting out on drycleaners: "Beware of your toxic neighbor. In fact, the local drycleaner is a very dangerous neighbor, particularly if a plant is on site. Drycleaners are a source of highly toxic emissions that poison the air, water and food in our homes."

Are they talking about the food we keep in our refrigerator, too?

Greenpeace goes on to say: "There is a way to make drycleaners true good neighbors, simply by using water."

The drycleaning process does not impact the environment. Its need for water is minuscule. The biggest problem we are having today is sewage spills. According to an article in the Washington Post (August 19, 2001), sewage spills are sending untreated sewage into rivers and streams at the rate of about 8.5 million gallons per day. Billions of gallons overflow from area sewers yearly. This is the kind of information people believe In. People are aware of sewage spills and floods.

Scare tactics and false information are being used to alert people in believing that their lives are in jeopardy by using drycleaning services. People don't believe that. You won't see a woman having her expensive silk dress taken to the laundromat. She takes it to the drycleaner. When a woman ruins a dress by home laundering, she suffers in silence, but when the garment is ruined by the drycleaner, the silence is broken.

Once, many years ago, the late Orson Wells, a well-known actor director and radio producer, decided to make his radio programs more interesting and exciting.

One late afternoon on his radio show, he announced Martians had landed on American soil. People got frightened by the news. They ran in the streets in all directions yelling, "The Martians are coming! Run for your life!"

People were scared, but then they started to laugh when they found out it was a hoax.

People respond quicker to fear than persuasion when using scare words to accomplish a purpose; then truth is not necessary.

Here is one that tells us how much Greenpeace knows about drycleaning. This is what they wrote in their news release: "Several years ago Greenpeace began looking for alternatives as part of their campaign to phase out chlorine based chemicals."

This is what they found. A drycleaner in England was cleaning firm garments without the use of solvent. He was using water and soaps as mentioned in the news release.

Here In America we call it laundering. Greenpeace doesn't understand the purpose for drycleaning, but people do. Ask any woman and she will tell you why

Ask any man why he has his wool suit drycleaned and he will tell you why. Not all garments are drycleanable, and not all garments are washable. "To be or not to be" is not the question. People make decisions by what they have experienced.

Now again Greenpeace says, "Cancer is at every corner and, being fat soluble, for mothers it accumulates in breast milk. Therefore, it is passed on to nursing infants."

Their believability is questionable. What scientific evidence proclaims such finding? Greenpeace is determined to wipe out perc as a cleaning solvent.

Greenpeace is determined to take on political and corporate opposition in order to clean up and protect the future of our planet. Greenpeace, the self-appointed world environmentalists, has disqualified itself from this enormous undertaking, not for its purpose, but for its method. Nothing can be accomplished by accusations and fear. And nothing can be accomplished without researched evidence to support opinions or to pursue ideas.

Why is Greenpeace saying nasty and malicious things about drycleaning and drycleaners? Greenpeace is doing it for the lack of evidence. By using derogatory accusations and fear, there is no need for factual information.

According to Greenpeace, the drycleaner using perc is a dangerous person. He is causing health problems and many have died because of perc vapors and its toxicity.

If this were true, EPA would be aware of this happening. The statement lacks evidence, but the tactics being used are accusation and fear.

Now, suppose something like this did happen. A young man in good health was about to dress himself with his favorite suit he had just gotten back from the drycleaners. He was putting on his trousers first, just as men normally do. Once he had his trousers on he checked himself in the full-length mirror: no double creases. He smiles with approval, then drops dead. He didn't have a chance to call 911.

Who would believe stories such as this? No one except people who spread fear and accusations.

The drycleaning industry became self-regulated long before government regulations. It was regulated by the concerned International Fabricare Institute. Manufacturers are in compliance with government and environmental regulations in order to keep drycleaning a safe non-hazardous occupation. Greenpeace should know people don't want drycleaning "as good as." They want drycleaning that is "better."

Drycleaners who have taken advantage of the information presented by the equipment manufacturers, the chemical companies and IFI have become the leaders of the drycleaning industry. IFI is the light of knowledge at the head of the tunnel. It will not defend mistakes nor agree with impracticalities.

IFI is aware of the fact that all of the technology and research presented to the industry won't make a difference without knowledgeable drycleaners. Technology and knowledgeable drycleaners are the ones who are making drycleaning a safe industry for the doers and users.

For the past 10 years, the demand for perc has dropped by 73 percent, not for the lack of business, but due to the dry-to-dry cleaning process. Today the industry has more drycleaners doing more business and more battle with competition. No matter how the competition goes, perc provides good cleaning.

There Is no better substitute found that is a better cleaning solvent than perc. Perc goes after grease like a hound dog chasing a rabbit. It washes out dirt without damaging or shrinking fabrics. Its low temperature evaporating rate prevents garments from becoming over-heated during the drying cycle. High heat is not necessary for better vapor recovery. Dry-to-dry cleaning systems properly used won't cause pollution, nor become a health hazard.

No matter how good something is, someone else has a different opinion for a different reason. Here is that someone else. There was a drycleaning salesman who was talking to the drycleaner using a dry-to-dry cleaning machine. He knew the drycleaner because he called him Charlie. All he said was, "How do you like the dry-to-dry cleaning machine, Charlie."

Charlie said, "I don't."

"Why do you say that?" the salesman asked.

"I said that because I don't like it," the drycleaner said.

"I don't understand what you are saying, Charlie. I can remember when you used to buy perc in 55-gallon drums and now you are buying 15 gallons or less to maintain the operating level in your work tank. What's wrong with that?"

"Nothing," Charlie said, "I liked the transfer tumbler better because with the dry-to-dry I don't get a 'high' anymore."

Can any good ever come of it?

BY DON DESROSIERS

It's difficult to talk about shirts today. As I write this, the country, and surely most of the world, mourns the deaths of thousands of people whose only mistake was simply to be in lower Manhattan on September 11.

How sad it is to see the work of madmen change everything -- everything from the skyline of the city that I call the hub of the universe, to air travel as we know it, to the loss of the feeling that such terror could never happen on our soil.

I consider it a real possibility that we lost some of our own during the tragedy. I have many clients in New York and I therefore feel certain that I have personally laundered and pressed shirts of those that gave their lives for the betterment of our futures. It is always hard to understand how we can see any good come out of something like this. But there is.

When the movie "Titanic" came out several years ago, I had a discussion with one of my sisters whose viewpoint was that there is simply no reason to make, much less pay to see, a movie like that. She saw its making and its popularity as the exploitation of the deaths of hundreds of poor souls. I admit that I considered her view seriously and for a while, felt guilty for having been a Titanic buff for most of my life and for thoroughly enjoying the movie.

Can our sadness for the martyrs in New York ever end? Will we ever forget the devastation? Will it ever make sense? Will any good ever come out of it?

I am a New Englander, and live very near the city that was the starting point for this maniacal plan. Couple that with being a mere 200 miles from the devastation, I feel certain that people I know personally have died and I simply don't know yet. So my sadness for the martyrs may not have even begun. In at least some way, I don't believe that it will ever go away.

The World Trade Center towers stood as symbols of the USA, as symbols of capitalism. I will never forget the countless times that I flew my airplane west from my home airport to the White Plains, NY area on to the Tappan Zee Bridge that crosses the Hudson River. There, I would drop down to 1,000 feet over the river and follow it to the Manhattan skyline where, from an airplane one still needs to look up to see the tops of these magnificent structures that we called the twin towers. They stand no more, but the rubble that they have now been reduced to symbolizes the evil and the hatred in the hearts of the perpetrators. We will never forget the devastation.

The destruction of the hub of the universe is the epitome of senseless violence and will never make sense. How dare anyone, jealous or envious of our society, reduce it to rubble because they value different things!

The sinking of the Titanic has saved thousands more lives than it ever took. It was a wake up call unlike any other before it. It pioneered nearly all of the at-sea safety procedures and laws that are commonplace today. We board a cruise ship will great confidence nearly a century later because of the ultimate sacrifice made by those that lived and died many years before us.

This is also true for the fire at the Coconut Grove in Boston in 1942. There, 492 people gave their lives so that we, as citizens of the United States in the 21st century, can have sensible fire prevention laws that protect us in public buildings. The Coconut Grove nightclub lacked everything that we consider normal and ordinary today, such as exit signs, emergency exit doors and flame-proof lighting fixtures.

Sometimes we are annoyed by procedures that we must follow in order to get around and about town. Sometimes we wonder why we must check in and out of official buildings, or why they use metal detectors on cruise ships or why we are frisked before entering a concert arena.

We understand it a bit more when we want to visit the White House, but we now know that terrorists aren't too fussy about who they choose to murder.

All of these procedures are a direct result of what has happened in the past. I, for one, want more of these safety procedures as I long for the day when I, once again feel safe in my country. I hope that the next time I am annoyed by some sort of a delay, caused by some sort of a safety procedure, it is an annoyance because I think that someone isn't being thorough enough rather than because I am being inconvenienced for a few minutes. There are thousands of people that were in New York on that fateful day that would surely have traded away their fate for a few minutes of inconvenience. Let us hope that the price that they paid be never forgotten.

It will surely be many decades before we look back at the new Day of Infamy as anything but intense evil. It will take an enormous amount of pain before we overcome the anger that we all feel today. But when we do, I hope and pray that we have learned a great deal. Let us hope that the magnitude of the loss is proportional to the benefits that we somehow extract from all of this, no matter how elusive those benefits surely appear today.

As business people of the United States of America, it may seem gross to go about our business, but I urge to do so. And do it with a vengeance. Buy a new GreenEarth machine. Replace your shirt unit. Splurge on a new POS. Invest in that spring-activated heated collar cone. Don't let the terrorists win. They wish to destroy our way of life. Show them, decisively, that they have failed. Going about our business is not disrespectful to the dead. It honors them. It is what they would have wanted.

Are you hitting the target or just wasting your money

BY JOHN GRAHAM

It's so easy to waste money on direct mail that many companies make it a daily practice. Conversely, direct mail can be one of the most efficient, cost-effective marketing vehicles available today.

Even when e-commerce is exploding, every marketing plan should include a direct mail component in order to communicate a company's message. If you want proof of the power of direct mail, notice how Internet companies rely on direct mail to promote their Web sites.

The major issue with direct mail is to get the most from the investment. Here are 26 questions to ask that can help improve the performance of your company's direct mail program.

1. Does the mailing create the right impression?

If it looks like junk, this is the impression it will create when it arrives. Apply the highest standards of judgment to how the mailing looks. Don't settle for "just get it out the door." Ask yourself, would you be impressed if you received your own mailings? Would you take them seriously?

2. Is every letter fully personalized?

Of course you can get by with "Dear Neighbor" or "Dear Valued Customer," but not if you want to make an impact.

Dear Ms. Roberts, Dear Mr. Martinez or Dear Tom makes a far more personal impression. There is no excuse for failing to personalize letters whether they are to customers or prospects. If you want to convey the message that you offer personal service, start by being personal with your direct mail.

3. Does the mailing have eye-appeal?

If it isn't interesting on the outside, it won't get opened, and if it isn't appealing on the inside, it won't get read. Your mailing is in brutal competition with dozens of other pieces for attention. Stand out. Use color. Make the package interesting by enclosing two, three or even four pieces.

4. Does it touch the reader's emotions?

If it doesn't, don't bother sending it. Your mailing must grab the reader. Make sure the reader will feel left out of a good thing by failing to respond to your offer.

5. Does it tell a story?

Describe for the reader how you solved a customer's problem. Tell what happened and talk about the customer's reaction to your solution. Stories are a powerful way to bring your message to life.

6. Have you used testimonials?

Credible testimonials are powerful persuaders, particularly today when businesses can't afford to make mistakes. But use only real people and identify them completely. No anonymity and no initials. Readers see through such deceit. And be sure to get permission and a signed release from those providing testimonials.

7. Is the mailing memorable?

Just another letter in another dull envelope won't do. Make it fun and interesting. If the reader remembers the mailing, your company will be remembered, too. The chances of a positive response increase.

8. Is the mailing different?

One mailing included a clear plastic bag filled with sand, sea shells, miniature sandals, sunglasses, and even a tiny beach umbrella and record player. The attached tag read: "Just add retirement fund and enjoy." Another arrived in a box containing inexpensive binoculars with a card: "Take a closer look at our special offer."

9. How many times have you used "you"?

The magic word in direct mail is "you." Talk to the customer and talk about the customer. Avoid the temptation to boast about your company, product or service. Talk directly to the reader about what the reader wants to hear. It's what the customer wants that's important in a direct mail presentation, not what you want to say or sell.

10. Are the sentences short?

Use short, punchy sentences. Keep them simple and clear. Anything complicated only confuses the reader. Sentences can have one or two words. Remember, be direct.

11. How long is your message?

Keeping a letter to one page is acceptable if that's what it takes to tell the story. But don't be afraid of long letters-three, four or five pages-if they are interesting and compelling.

12. What do you want the reader to do?

In other words, what action do you want the reader to take? Most direct mail fails at this crucial point. Do you want the reader to buy, call, make an appointment, or welcome a salesperson? Have a very clear picture of the action step and build the mailing around this objective.

13. What's your offer?

The goal of a mailing is gaining a response. There must be a meaningful offer to move the customer to action. Here are words that stimulate an immediate response: free, limited offer, respond by this date to receive discount. Without an offer, there is no urgency for the customer to act.

14. Have you included a guarantee?

Customers are cautious today, and want guarantees. Mostly, they want to feel that you stand behind what you sell. What the customer is looking for is total satisfaction. If it's a product, offer a money-back guarantee. Even if you are giving away a brochure or a survey, show your confidence by guaranteeing that the reader will find it helpful or useful.

16. Are you talking with the reader?

Direct mail fails because the language is stilted, cold and impersonal -- it pushes the reader away (from you). Be warm, conversational and friendly. "Talk" your direct mail.

17. Are you still using labels?

The laser printer has made address labels obsolete even though they continue to be used on regular business envelopes. Direct imprinting is the standard for everything-including newsletters.

18. Are you going first-class?

Postage, that is. There are situations when bulk-rate is acceptable. At the same time, first-class postage (and "overnight" on certain occasions) creates the impression that the mailing was directed to you -- personally. Whenever possible, go first-class. And with presort software, the cost of mailing first-class is cost-effective.

19. Are you getting inside the reader's head?

Does the mailing really focus on and deal with what the customer wants to accomplish, or does it dwell on what you want the customer to buy? The only way to keep the reader's interest is to make sure you fully understand the reader's needs.

20. Do you test your direct mail?

Before rolling out a mailing of 5,000 or 50,000, try 1,000 to 5,000 to determine the response. Better yet, try two or three approaches at one time and make comparisons. Vary the message, the offer, the graphics, and so forth.

21. Are you repetitious?

You should be! The key to direct mail success is repetition. Use American Express or cataloguers as role models. The goal of direct mail is to catch readers when they are ready. If you're there, you get the business.

22. Are you targeting your mailings?

Avoid the broad-brush approach at all cost. It's not necessary and it wastes money. Tailor your message to smaller and smaller segments. It's the best way to convince readers that you understand their specific needs and what is important to them.

23. Is it easy for the reader to respond?

Offer the reader a selection of ways to respond. An inexpensive, toll-free number (800 no longer suggests that you are located at the North Pole) lets customers act quickly, when they are ready. Always enclose a bounce-back Business Reply Mail card or envelope (see #23). In certain situations, you may want to ask the customer to come and see you.

24. Did you enclose a response form?

It may be a postage-paid Business Reply Mail card or envelope (don't even think about having the customer pay the postage) or a fax-back form (if you are mailing to businesses). Make it easy for the customer to respond by imprinting names and addresses on your response card. If you are using a fax-back form, either place it at the bottom of the letter or use a separate form that is imprinted with the customer's name and address.

25. Have you given the customer a coupon?

An interesting, value-creating coupon will help make your offer tangible-it is something readers can hold in their hands. Use a coupon to give customers dollar amount discounts. Avoid 15% off because customers can't measure the offer. Also, create urgency by indicating an expiration date. Numbering coupons can create additional value.

26. Have you ended with a P.S.?

Believe it or not, the P.S. is often the first part of a letter that's read. It's the reader's way of cutting to the chase. Use the P.S. to restate your offer: "Act before February 20 and receive a freeŠ

Use these questions to review your present direct mail programs and to make response-building improvements for future mailings.

New rules for retirement benefits

In January, the Internal Revenue Service took action to simplify regulations that govern how much money people over the age of 701Ž2 and beneficiaries must withdraw each year from tax-deferred retirement accounts such as Individual Retirement Accounts (IRAs) and 401(k) plans.

For many retirees, the changes will lower the annual amount they need to withdraw, allowing more of their assets the opportunity to continue growing tax-deferred. For those who stand to inherit the assets, the changes bring more flexibility to spread out the distributions over a number of years and reduce the taxes on the assets.

You and your employees need to understand the new regulations and how you can use them to take advantage of new opportunities for extended tax-deferred saving.

Distribution rule changes
While the regulations are complex, we'll examine three changes here:

Single method of calculating mandatory lifetime distributions. Until the IRS issued the new re-proposed regulations, people had to choose between six methods of calculating required minimum distributions from retirement accounts that are mandated for account holders once they reach age 7001Ž2. The methods were based on a life expectancy factor that involved both the account holder's and the beneficiary's age.

The new re-proposed regulations substitute a single method based on the life expectancy of the account holder, using a table that is based on the joint life expectancy of the account holder and a hypothetical beneficiary who is ten years younger than the account holder.

This method is used regardless of whether or not the account holder has designated a beneficiary. An exception exists for account holders whose sole beneficiary is a spouse who is more than ten years younger than the account owner. In that case, actual joint ages can be used for the calculation, producing an even smaller required minimum distribution.

The standard table is the minimum incidental benefit life expectancy table, known as the MDIB table. Using this standard table, a person will divide the account balance as of the end of the prior year by the life expectancy factor to arrive at each year's required minimum distribution.

For many people, the new calculation method will result in lower annual distributions. Because withdrawals are taxed as regular income, many people will benefit from a smaller tax bill on the lesser distribution each year as well. In addition, assets that remain in the account will continue to qualify for tax-deferred growth.

Flexibility in designating a beneficiary. Previously, the calculation method, based on the eldest beneficiary named on the account, was an irrevocable decision. Now, because distribution calculations are no longer linked to a designated beneficiary, an account's beneficiary can be changed at any time without an adverse effect on the required minimum distribution amount.

New choices with inherited accounts. The regulations allow new flexibility for beneficiaries to extend an account's tax-deferred benefits. For accounts that pass to a spouse, payments continue using the spouse's single life expectancy. For beneficiaries other than a spouse, separate inherited accounts can be distributed according to each beneficiary's single life expectancy. These new rules generally allow beneficiaries to maintain a tax-deferred account over a greater number of years than before.

If an account has no designated beneficiary and the account holder dies after starting to take required minimum distributions, the assets will be paid out over the account holder's remaining life expectancy, reduced by one year each year. If an account has no beneficiary and the account holder dies before required minimum distributions start, the balance may be paid out over five years.

It is important to follow these IRS regulations carefully. For those who take out less than- the required minimum distribution amount each year after age 701Ž2, the IRS continues to assess a 50 percent penalty tax on the amount that should have been distributed.

Although these new regulations don't take effect until January 2002, the IRS is allowing IRA account holders to use the new calculation method for calendar year 2001 required minimum distributions if they choose, regardless of the terms of the IRA documents.

Business owners can also change over their 401(k) or other qualified retirement plan documents this year to reflect the new regulations if they choose. Talk with your business's legal or tax advisor about how you and your employees can take advantage of these new opportunities for tax-deferred saving..

Copyright © 2001, National Clothesline