A new $50 bill with touches of red, blue and yellow hit the streets Tuesday and a new $10 bill is in the works. It would be the third greenback to get colorized to cut back on counterfeiting.

The new $50s soon will be showing up at banks, cash registers and wallets. Government officials used one of the new $50s on Tuesday morning to buy a $45 U.S. flag, which came in a box, at a shop in Union Station. Old $50 bills will continue to be accepted and recirculated until they wear out.

As for plans for the new $10 bill, Alexander Hamilton, the nation’s first treasury secretary, is expected to stay on the front, with the Treasury Department remaining on the back, Thomas Ferguson, director of the Bureau of Engraving and Printing, said in an interview.

Various efforts have emerged to put former President Ronald Reagan on the nation’s currency, on the $10 bill or the $20 bill, or possibly the dime. However, thus far, they have gone nowhere.

The new $10 bill is expected to be unveiled this spring and put into circulation in fall 2005. That last time the note got a new look was in 2000, when Hamilton’s portrait became oversized and moved slightly off center.

“As with the $50 and the $20, there will be subtle background tones and tints. They will be different from those used on the other two so each of the notes will start to be even more distinctive and easier for people to differentiate quickly,” Ferguson said. He wouldn’t say what the colors on the new $10 would be.

Colors for the redesigned notes vary by denomination.

After the $10 makeover comes the $100 bill, the most counterfeited note outside the United States, Ferguson said. The $5 bill won’t get a new look, and neither will the $1 and $2 notes, he said.

A new $100 note was supposed to follow the new $50, but that changed because the bureau is considering additional security features for the $100 bill. A timetable for a new $100 bill hasn’t been set.

The colorizing project is part of a broader effort to make the bills harder to counterfeit, especially against the backdrop of readily available digital technology.

“We’ve been working closely in cooperation … with the manufacturers of ink jet printers, editing software, computer software in order to make it more difficult for people to be able to use that kind of technology to counterfeit,” Ferguson said. As part of that effort, certain technology also has been incorporated in the new $20s, $50s and eventually the new $10s, he said.

The $20 bill, the most counterfeited note in the United States, was the first to get extra color. Featuring touches of peach, blue and yellow, the new $20 went into circulation last fall.

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The Google franchise could be coming to a Web browser near you–if all the recent clues add up, that is.

Evidence is growing that may support rumors that the preeminent search company plans to introduce a Google-branded Web browser down the road. Among the clues are a domain-name registration, a patent application and several recent hires.

Since the search star’s $1.66 billion public offering, investors and industry watchers have speculated about new products that could help contribute to the company’s next billion dollars in revenue or help broaden its lucrative advertising network.

A Web browser that would meld Google search, Gmail free e-mail, Google’s Blogger Web publishing software and pop-up blocking technology could be a winner for the company, industry analysts say.

Backing this idea up, Google registered the Web address “gbrowser.com” on April 26, according to a record at the WhoIs domain-name database. Employees of the company have also recently filed a patent application for delivering ads to client-side applications, including a Web browser or browser plug-in.

In addition, Google has hired several technical staff with expertise in graphics, Javascript and Web browser development in recent months. Included in those ranks are Adam Bosworth, a former employee of BEA and Microsoft who helped create Internet Explorer; Joe Beda, a seven-year Microsoft veteran who’s worked on the software giant’s next-generation graphics engine, Avalon; and Joshua Bloch, a Sun Microsystems developer who has designed major enhancements to the Java programming language and application programming interfaces, or APIs.

In addition, the company recently hosted the Mozilla Developer Day at its Mountain View, Calif., campus. Mozilla develops an open-source browser to which Google engineers could contribute code as a way of introducing a Google-flavored Internet tool.

Suggesting that such a working partnership exists, a post to Mozilla’s Bugzilla system indicated that a bug report had been closed because it mimicked an earlier report. The bug, the post read, was “a duplicate of a private bug about working with Google. So closing this one,” according to the blog Deftone.com.

“Google is investing heavily in JavaScript-powered desktop-like Web apps like G-mail and Blogger. Google could use their JavaScript expertise to build Mozilla applications. Built-in blogging tools. Built-in Gmail tools. Built-in search tools,” one well-known blogger, Jason Kottke, wrote recently.

The browser could involve a “search pane that watches what you’re browsing and suggests related pages and search queries, or watches what you’re blogging and suggests related pages, news items, or emails you’ve written,” Kottke wrote earlier this week in a post that also noted Google’s gbrowser.com domain name registration.

A Google representative said the company has not announced any plans for a Web browser and that it does not comment on rumor and speculation.

The Mozilla Foundation expressed gratitude to Google for hosting its recent Mozilla developer day but declined to comment specifically on the recent flurry of blog posts speculating of the Google browser.

“To the extent that Google or any other company is starting to invest in the browser space, that’s good for users and it’s good for the Web,” said Bart Decrem, spokesman for the Mozilla Foundation.

Decrem warned against reading too much into bug reports posted to the foundation’s Bugzilla system, noting that it cataloged more than 1.2 million largely unregulated bug reports.

“Anybody that wants to can enter a bug that says whatever they want it to say,” Decrem said. “Someone could enter a bug saying Microsoft should use Gecko as its next rendering engine.”

To be sure, Google throws many technologies against the wall to see if they stick. Earlier this year, it introduced Gmail, a free Web-based e-mail service, and the Google Deskbar, a PC download that lets people search the Web without a browser. It has formulated shopping engine Froogle, search-inside-the-book service Google Print, and personalization tools.

Speculation is rampant that Google will eventually unveil an instant messaging application. Google has also been rumored to be working on a thin-client operating system that would compete with Microsoft in areas beyond search. Techies have even discussed the idea of Google becoming a file storage system.

“It’s brilliant marketing,” said Gary Price, a librarian and news editor at search-industry site Searchenginewatch.com. “They’re constantly putting themselves out there in news ways and reinforcing their brand. It gives them another place to potentially sell advertising.”

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What, we wonder, would have happened if famed western writer Zane Grey had written under his real first name of Pearl? We certainly wouldn’t be looking at Zane as a viable name right now, since the author was pretty much solely responsible for this name’s cool western image. Zane is, in fact, a name that may be too cool, if you believe such a state is possible. Any Zane would certainly have to grapple with people’s expectations that he be sharp, sexy, and sophisticated in a way that a John or a George would not.

So, am I sharp, sexy, sophisticated, or even too cool? You be the judge of that. Oh and on a side note, I have twelve of Zane Grey’s western novels. Now, if that isn’t too cool I don’t know what is.

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Interstate Bakeries Corp. filed for bankruptcy on Wednesday after struggling with more than $1.3 billion in debt and weak demand for bread products amid the popularity of low-carbohydrate diets.

The largest U.S. wholesale bakery, maker of Wonder bread and Hostess Twinkies, also accepted the resignation of James Elsesser as chairman and chief executive, according to the Chapter 11 filing in the U.S. Bankruptcy Court for the Western District of Missouri in Kansas City.

The company named Leo Benatar as nonexecutive chairman and Antonio Alvarez as chief executive, according to court papers. Alvarez is managing director of the turnaround firm Alvarez & Marsal, which was hired to assist Interstate in restructuring.

Interstate said it would seek court approval for a debtor-in-possession financing facility not to exceed $200 million.

The company said earlier this month its lenders had allowed additional borrowing on its revolving credit line but the facility required the company to file its fiscal 2004 financial statements by Sept. 26. The company’s fiscal year ended May 29.

Interstate has delayed filing its annual report twice because of uncertainty over its upcoming financial results and whether it will be in compliance with certain debt covenants during its fiscal year 2005.

Kansas City, Missouri-based Interstate, along with other food companies, has been hurt by decreased demand for bread and pastries due to the popularity of low-carbohydrate diets.

Furthermore, the U.S. Securities and Exchange Commission launched an accounting probe into the company in July, looking into how it set workers’ compensation and other reserves.

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Automotive News reports that as of Sept. 1, U.S. inventories of passenger cars and light trucks climbed to 3.7 million units. That compares with 3.3 million vehicles a year ago, which means that 400,000 additional cars and trucks are sitting around in dealers’ lots and showrooms. I think the auto industry is courting disaster.

More From Jerry Flint One day manufacturers will be caught with those huge inventories–when business slumps or the cars won’t move no matter what the incentives. If it happens this fall then the 2005 model year will turn into a catastrophe because the dealers will spend all their time getting rid of the old stuff and the new models will die on the lot.

If it happens at the start of the new calendar year then there will be massive plant shutdowns this coming winter–January and February–which will sink the economy. I’ve seen these things happen.

Detroit’s inventories have been growing for several years because the domestic manufacturers like to run their factories full even if they aren’t retailing cars as fast as they can make them. In recent years the problem has been solved by December “blowout” sales. Lots of retailers use this word, but when a car company has a genuine blowout it means a monster sale–big rebates for customers, and big incentives for dealers and sales people. Companies will do almost anything to get those old cars off the lots.

Yes, the domestics are cutting back some production, but not much so far. Sales in September and October will tell the story. Even if Detroit gets by this year, the industry is on a dangerous road.

Those bloated inventories are a symptom of the problem: The U.S. manufacturers are continually losing ground to foreign nameplates but don’t want to shut plants to match their lower market share.

The conventional wisdom in the U.S. auto industry is that it is better to keep the plants open–and hope to hold onto market share–than it is to shut down a facility. High-seniority workers, which are in abundance in older U.S. auto factories, keep collecting pay and medical benefits even when permanently laid off. That is, until they become old enough to qualify for their pensions.

The current arrangement is particularly tough for General Motors. Thus it overproduces and then tries to push the sales with ever-growing incentives. GM is hoping that an ever-growing market will cover the problem until their cars and trucks get so much better that customers take more of them without so much cash on the table. But these days, the only thing that is growing for GM is inventories.

GM’s strategy has worked so far, but it’s no way to run a business. And the incentives have reached such a point that it’s hard to believe that they can go much higher.

Just look at some of the incentive numbers, furnished by Edmunds.com, an authority on the industry.

In the latest month the average sticker on a Cadillac DeVille was $54,193 but the net price was $42,211, a 22% difference. This means that the factory gives up that much in potential profit through rebates, dealer cash, or lease or interest rate subsidies. And buyers usually get additional discounts from the dealer.

A Ford Motor’s Explorer sticker averaged $33,881 but the net price was $25,745, a 24% difference, or $5,378 in various factory incentives. Those SUVs get harder to sell.

How do you get out of that? By building cars that, in the words of GM Vice Chairman Robert A. “Bob” Lutz, customers “gotta have.” Chrysler’s new 300 seems to be one of those models. A typical sticker for the Chrysler 300 last month was $32,345 versus a net price of $30,574. So Chrysler’s factor incentive was only 5%, or $1,219. And that deal expired.

In this market even the top-tier Japanese manufacturers are cutting their prices, but not as much. A Honda Accord has an average sticker $24,186 and a net of $21,589, or an 11% giveback worth $707 in factory incentives, says Edmunds.

The industry likes to count its stockpile in “days supply,” which measures the inventory for a model divided by the daily selling rate in the past month.

You get some amazing figures when you look at these supply figures: 316 days worth for the Chevy SSR, a $40,000-plus sports truck, which dealers hold for top dollar; 387 days for the Saab 9-2X (just put on sale); and 212 days for the Chrysler Crossfire. And at the other end there’s the Mini Cooper (owned by BMW), with an 8-day supply–700 cars in inventory–because everybody loves the Mini and they aren’t overproduced.

General Motors has 72 days of inventory as of Sept. 1; Ford, 76 days and Chrysler (without Mercedes-Benz), 74 days. The conventional wisdom is that a 60-day supply is fine. Personally, I’ve always thought that 60 days is too high. Toyota Motor is doing great with 32 days. Honda has 34 days.

What Detroit needs–and fast–are cars and trucks that are better in every way: looks, performance, handling, quality and fuel economy. In addition, it is time that capacity is brought into line with demand. This means closing more factories.

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I won’t say what any of the final deals were, but I will say that they got extremely good deals. I think I may be on to something here! As a car-buying consultant I will set up a test drive, negotiate a great deal, handle your trade and even take care of financing and insurance. It’s like having a personal car buyer, without hassle. Well, expect of course to sign the papers. So, if you would like to use my services please let me know.

U-Lock is not safe,” warned Brennan in a note posted to Bike Forums.

Wired News tested Brennan’s claims. A brand new Kryptonite Evolution 2000 was opened in seconds using a Bic pen. After cutting four small slits in the end of the pen’s barrel to ease it in, the lock opened with a single twist.

Brennan, 24, of San Francisco, said he successfully opened two Kryptonite locks, an Evolution 2000 and an older Kryptonite Mini lock.

Subsequent posts to Bike Forums and other websites report the vulnerability applies to many of the company’s cylindrical-lock products, including some from Kryptonite’s vaunted New York series.

The New York line carries a $3,500 replacement warranty in the event of theft, and Kryptonite claims the locks are resistant to “bolt cutters, saws, hammers and chisels.”

“That’s the absurdity of it,” Brannan said. “It’s not picking the lock or smashing it open. It’s the absurdity of a small piece of plastic breaking your unbreakable lock.”

“They’re worthless,” he added. “I don’t trust them anymore.”

Kryptonite declined to comment, but in a statement, the company said it is rushing to market a new “disc-style cylinder” design that is more secure. The disc-style cylinder is used in the New York products.

“Kryptonite will provide the owners of Evolution and KryptoLok series products the ability to upgrade their crossbars to the new disc-style cylinder, where possible,” the statement said. “This cylinder provides greatly enhanced security and performance. Kryptonite is finalizing the details of this upgrade process and will publicly communicate these details as soon as possible.”

Brennan said he will not be buying a new lock from Kryptonite.

“That’s a slap in the face,” he said. “They’re looking to profit from a series of mistakes they made. They need to replace their faulty product.”

The vulnerable Kryptonite locks use an axial pin tumbler, a common cylindrical design used in a wide variety of products. The lock’s design was invented at least 50 years ago by Chicago Lock, said attorney and security consultant Mike Tobias, who claims to have first publicized the design’s vulnerability five weeks ago.

In early August, Tobias’ website, Security.Org, claimed laptop security locks by Kensington Technology Group, Targus and Compucage International could be easily compromised with a pen or a toilet-paper tube.

“It’s the same problem,” said Tobias. “Isn’t it incredible? There are millions of people who are reliant on these locks. The problem for Kensington and Kryptonite is that everyone knows it now.”

Tobias said not all axial locks are vulnerable, depending on several factors such as the lock’s diameter (to match the pen) and the lock’s engineering tolerances. He claims to be a veteran lock-and-security consultant who has worked for lock manufacturers, government agencies and law enforcement.

Kryptonite and CompX International, which now owns Chicago Lock, didn’t respond to requests for comment.

When told of the vulnerability, Tom Volk, owner of American Bicycle Security, which makes bike lockers and racks, expressed surprise. “That’s not good for them, but other companies are using the same lock. They all use a seven-pin tumbler lock.”

Volk noted that several cylindrical lock picks have been available online for more than a year. Volk said they apparently work well, opening locks in seconds.

The lock’s flaw was apparently first publicized in 1992 in the United Kingdom, according to BikeBiz.com. The BBC even covered it, but the news apparently didn’t resurface until a dozen years later.

“We read about it online like everyone else,” said Leah Shahum, executive director of the San Francisco Bicycle Coalition. “It’s amazing, but a lot of people have heard of it. The news is definitely out there.”

Brennan said his experience in computer security gave him no doubt about publicizing the vulnerability.

“The problem’s not going to go away,” he said. “Keeping it quiet just gives thieves more time to use this to their advantage. I wanted to let people know they are vulnerable. It’s an illusion of security.”

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A bidding group headlined by Sony Corp. agreed in principle to buy Hollywood film studio Metro-Goldwyn-Mayer for nearly $5 billion on Monday, after rival bidder Time Warner Inc. withdrew from the auction.
Comcast Corp., the biggest U.S. cable operator, will join the investors working with Sony on the deal, a source close to the discussions said. Comcast could not immediately be reached for comment.

Sony and its partners will pay $12 a share for MGM and assume slightly less than $2 billion in debt as part of the agreement, sources close to the deal said.

MGM’s library of more than 4,000 films, including the James Bond, Pink Panther and Rocky movies, is considered its crown jewel — one that could generate solid revenue for a new owner that could reformat the films for sale in the hot DVD market.

MGM’s film studio is considered a less-sparkling asset that sources have said may ultimately be shut down.

The consortium, which also includes lead private equity investor Providence Equity Partners, Texas Pacific Group and an investment arm of Credit Suisse First Boston, proposed exclusive talks to finalize the agreement, the sources said.

Sony and its partners have paid a $150 million deposit that MGM will keep if a deal is not reached, the sources said. The group had held a period of exclusive talks with MGM in May that did not result in an agreement.

TIME WARNER UNABLE TO AGREE PRICE

Time Warner, the world’s biggest media group, had offered a lower but more straightforward bid of $4.6 billion, according to a source close to the talks. Before Sony raised its offer, sources had said MGM favored Time Warner’s bid.

But Time Warner said in a statement on Monday that while MGM was a valuable asset, it could not agree on a price “that would have represented a prudent use of (Time Warner’s) growing financial capacity.”

Time Warner’s decision to drop its bid once Sony upped the ante likely came as no surprise to many investors and analysts, who had expected the company to be prudent with its cash after a few painful years of debt-slashing and restructuring.

Time Warner’s decision frees it up to concentrate on the pending auction for bankrupt cable operator Adelphia Communications. Time Warner is interested in buying some or all of Adelphia, but many Wall Street analysts had predicted its role in that auction would have been reduced if it won the competition for MGM.

The Adelphia auction is soon to get under way, though the company’s books have not yet gone out and Time Warner Chief Financial Officer Wayne Pace said last week that it had not performed due diligence on the assets.

Time Warner already owns the Warner Bros. and New Line Cinema studios. Sony bought Columbia Pictures in 1989 for $3.4 billion, but big spending budgets and fizzling box office takes caused Sony a string of subsequent headaches.

Sony and its partners have now locked in financing from Credit Suisse First Boston and J.P. Morgan Chase & Co. for the bid, sources close to the discussions said.

Shares of MGM were up 41 cents, or 3.7 percent, to $11.52 in afternoon trade. Shares of Time Warner were down a penny at $16.50.

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