The Salina Journal from Salina, Kansas • Page 19

THE SALINA JOURNAL MONEY SUNDAY, MARCH 21, WEEKLY NEWSPAPER Launching a newspaper i Veteran reporters will start competing weekly newspaper in Ellswortfi; By NATE JENKINS The Salina Journal ELLSWORTH The streets in this town of about 2,300, wide and windswept like those in many communities across the central and western sections of the state, are the hub of Ellsworth County. People do business in banks, stores and homes along the streets. Many of the county's sons and daugh- 1 ters, raised in homes tucked away in the heart of post-rock country, are married in churches along the streets. And for the past 28 years, the Ellsworth 'Reporter has been the only newspaper that has told the stories of these people; of what happens along the streets of Ellsworth, documenting the life of it and the county from an office at 220 Court. But in April, that will change.

Linda Mowery-Denning and Sharon Montague, both long-time reporters for the Salina Journal, are starting a weekly paper in Ellsworth. They hope to print 2,000 to 3,000 copies of their first edition by April 21. That edition, and the next three, will be distributed for free. Then sales will begin. "I think we have the opportunity to make a difference" said Mowery-Denning, who began her career at the Salina Journal 27 years ago.

"We can offer real concern, dedication to the community." But making a difference by starting from scratch wasn't the original intention of the two women. They had wanted to buy the same paper they will soon will compete with, the Reporter. The Reporter's owner, Karl Gaston, died in a car wreck along with his wife Dorothy in October. Soon after, the paper was put up for sale by his three sons Kurtis, Kent and Kale. Montague and Mowery-Denning made a bid for the paper, but were told the owners were negotiating with somebody else.

"It (ownership) appears about to change, it appears it could go to out-of- state owners," said Mowery-Denning. Montague, who has worked at the Journal for the past 12 years, said that with out-of-state owners "there won't be the type of leadership a newspaper can provide to the community. There won't be a personal investment." "The most exciting area of this is getting into other areas of publication," Mon- "We can offer real concern, dedication to the community." Linda Mowery-Denning weekly newspaper entrepreneur 'V tague said. "It's going to be a challenge." Too much for too little? Eric Yonkey has first-hand knowledge of how challenging it is to start a newspaper. He founded a weekly newspaper in Goodland that competes with the Goodland Daily News.

Five years ago, "a plane fell out of the sky and they ran an AP story the next day," he said. The plane wreck, which happened about three miles outside of Goodland, killed three people. That spurred Yonkey to start the Sherman County Star. "I'd say we would not do it again," Yonkey said about starting the paper. "It's too much of a struggle." The problems are simple "financial, fi- nancial, financial," Yonkey said about his paper that was started with a $50,000 investment.

"Our entire first year, we were wondering week to week whether we would stay open," he said. Neither Mowery-Denning or Montague would say how much money they plan to spend launching their paper in Ellsworth. Yonkey said tough times for farmers have made his business stagnant. "It's just not a good market, with farms the way they are now," he said. "There's no growth in adverstising." Joel Smith, the news editor in control of daily operations of the Ellsworth Reporter, would not comment about the possibility of competing with another weekly newspaper.

"I've just heard the rumors," he said. Yonkey said one frustrating aspect of the paper was putting out a quality product, but not seeing that reflected in the bottom line. "We've won awards," Yonkey said, "but awards don't keep a paper going." Community effort "I feel like I'm involved in the community," said Montague, who has lived in Ellsworth for the past six years. "We really like Ellsworth, the people there. Part of this is that we really want to get more involved with the town." Their combined experience of more, than 40 years should come in handy as "We feel we can provide quality news coverage," Montague said.

For Mowery-Denning, who will continue to live in Salina and commute'to Ellsworth, running a small newspaper will bring her full circle with many issues she has covered for the Salina Journal for 27 years. "I was raised in a small town, have covered small towns my entire career, faa.d',1 want to be a part of a small town," site said. "Salina has been wonderful, but'how we have the opportunity to make a difference," she said. "There are such change's going on, somehow we need to document those changes, explain them," she So, there it will be another newspaper in Ellsworth. On a corner of Douglas Street, down a ways from a sign that says "Hurry Back," Montague and Mowery-Denning will themselves in a town that has no choice but to keep changing and moving as'tiMe goes by, like all towns do.

Right in the middle of Ellsworth County. FROM PAGE C1 Or they can eat at McDonald's or dine at Hemingway's Blue Water Cafe, which boasts a saltwater aquarium. "The store's incredible, it's so huge," said Jacque McClure of Marina del Ray, who visited recently with her fiance. "I could easily have spent another day." As it was, she spent just over $1,000 on fishing equipment and outdoor clothing. Larry and Karen Montoya drove two days from their home in Lakeside, spent $750 over four days at the store and then drove back.

"I've never seen so much fish- jng equipment," said Montoya. "We want to go back this summer," with their three children. Never a dull moment The strategy of never allowing a dull moment is designed to create what John L. Morris, the company's 50-year-old founder, refers to as "excitement and entertainment." The store's design developed from trips that he, his sister Susie Hunt, now executive vice president, and other employees took to different stores years ago to try to pinpoint their appeal. Their most memorable visit was to L.L.

Bean in Freeport, Maine. "I said, heck, if they can draw those people to the middle of "'nowhere," Morris said, "we can that in Springfield." They now attract even more. L.L. Bean said its Maine store draws just over 3.5 million visitors a year. Bass Pro's 4 million annual visitors explain why officials from many cities and states have beaten a path to Morris' door, seeking a Bass Pro Shops usually to no avail.

"Each store is a significant investment," Morris said. "We can't afford to make many mistakes." But when the site looks right, Morris is ready. He was impressed from the start not only by the profit potential in Grapevine, short distance from Dallas-Fort Worth International Airport, but the welcoming attitude of Grapevine's mayor and city council. When Concord, N.C., landed its Bass Pro Shops last summer, Gov. Jim Hunt predicted that it would create 300 jobs, attract millions of visitors and generate revenues of more than $300 million a year.

The heart of the store is what attracts fishing fans from as far away as Zimbabwe: Row after row of rods, reels, guns, decoys, tents, campers and outerwear, as well as plastic bait for as little as 27 cents and motor homes for up to $45,000. One floor rivals a boat show, with Airfares from Salina Destlnatlon Price Destination Price Albuquerque 370 Miami 223 Boise 485 Nashville 245 Portland 525 New York 286 Jfeno 406 Philadelphia 433 Salt Lake City 409 Tampa 218 San Diego 391 Washington, D.C. 258 All fares are the cheapest round-trip prices from Salina Municipal as of the previous Thursday. Various restrictions apply, WESTERN RESOURCES Rate controversy troubles utility Electricity price dispute jeopardizes buyout; the "I've been as lucky as you governor weighs in can get, being able to turn my hobby into a business." John L. Morris By Jonathan Berr Bloomberg News "Investors would like to see some clarity to the situation." Edward Tirello analyst, BT Alex Brown brokerage firm founder, Bass Pro Shop speed boats, house boats, pontoon boats, fiberglass boats and aluminum boats.

Those last two, made by the Tracker Marine also owned by Morris, are the world's biggest sellers in their class. While none of the new stores are as big as the original here, the others are still huge, complete with waterfalls and aquariums. In slowly expanding, Bass is moving beyond the model of L.L. Bean, built around its huge mail- order operation and one big store in Maine. It is trying to make a bigger splash than its rivals, like Cabela's and Orvis, which have added smaller retail stores to supplement catalog sales.

Morris was born and raised in Springfield, still a region of lakes and woods and, naturally, hunting and fishing. He opened the original store in a small corner of his father's liquor store. But the other sites were chosen with a discerning eye for location and partners with deep pockets and reputations for accomplishment. Morris continues to look for opportunities. "I'd be happy to add two or three stores a year, if we can resist the temptation to grow faster than our ability to maintain our quality," he said.

Acknowledging that further expansion could require taking the company public, he described that possibility as "very tempting and maybe necessary," adding that "the downside is having to be responsible to others." Another downside for Bass Pro Shops could be if hunting really is falling out of favor, as is often said. That may be more illusion than reality, since the number of hunters stayed roughly level from 1991 to 1996. But hunters went afield 21 million more days last year, according to the Fish and Wildlife Service, and, in real dollars, spent 43 percent more for trips and equipment. Still, whatever the future of hunting, Morris said, "fishing is our heritage, and it's still the main thrust of our business." Morris is not worried. "I've been as lucky as you can get," he said, "being able to turn my hobby into a business." TOPEKA Western Resources shares fell 36 percent in the past year as plans for a $3 billion acquisition teeter on the edge of collapse and investments in natural gas and home security produce poor returns.

Topeka-based Western is threatening to cancel the Kansas City Power buyout, first announced in April 1996, if Kansas utility regulators require a $24 million rate cut they have proposed as the price for approving the buyout. Western's share price also is being eroded by declines in the value of its 45 percent stake in Oneok a natural-gas company, and its 84 percent stake in Protection One, the second-biggest company that sells electronic monitoring and alarm services to U.S. homes and businesses. "There is a lot of concern about the company's ability to maintain the dividend," said Thomas Hamlin, an analyst with Wheat First Union who rates Western as a "buy." The company's annual dividend is now $2.15. Shares of Oneok are down 22 percent over the last 12 months because of low natural-gas prices and the prospect it won't complete a more than $1.7 billion acquisition without first winning an expensive bidding war.

Protection One shares have fallen 39 percent because of concerns that it has expanded too fast, a company executive said. Western declined to comment about its stock price. The company said in a statement that most Wall Street analysts "are enthused about our vision to concentrate on investments in electricity, monitored security and natural gas." Regulators' attempts to cut its rates are the biggest problem for Western's stock, analysts say. "Investors would like to see some clarity to the situation," said Edward Tirello, an analyst with BT Alex Brown, who rates Western as a "buy." The staff of the Kansas Corporation Commission has recommended that Western be forced to cut its rates for some customers. The commission is scheduled to vote in May on whether to accept the recommendation.

The dispute has divided the political establishment in Kansas, pitting Gov. Bill Graves and Wichita Mayor Bob Knight against each other. Knight and other Wichita leaders want Western to equalize rates among the three utilities it will own after buying Kansas City Power. Wichita-based charges 30 to 40 percent more than KPL, a Western-owned utility that sells power 145 miles away in Topeka. Salina gets its electricity from lower cost, coal-generated power plants that were part of the KPL system.

Wichita gets its power from the company's more expensive source, the Wolf Creek nuclear power plant. Western got Wolf Creek when it bought in 1992. Graves told reporters in Kansas earlier this month that he was concerned that a rate cut could lead to the merger's cancellation. Shares of Oneok Inc. are down 32 percent over the past 12 months because of low natural gas prices and the prospect it won't complete a major acquisition without boosting its bid.

Oneok has offered $1.73 billion in cash and assumed debt for Southwest Gas Corp. Austin, Texas-based Southern Union Gas Corp. topped Oneok's bid with an offer of $1.84 billion in cash and assumed debt on Feb. 22. "If they got into a bidding war, it would obviously hurt them," said Justin McCann, an analyst with Standard Poors Equity Group who rates the company as a "hold." Protection One shares have fallen 44 percent over the last 12 months because of concerns that it has expanded too fast, analysts said.

Since 1997, Protection One has made 21 acquisitions, spending about $700 million to quintuple its size, said David Barnes, Protection One's vice president of strategic planning. "There is concern growth that we have experienced in the past has come at a 1 high cost," he said. Protection One also is going! to face increased competition from the regional Bell companies, which are interested in making'a bigger move into the home security business. U.S. West has, a request pending before the Federal Communications to enter the home security business.

Western said in a statement that it remains confident that the controversy surrounding its merger will be resolved in the next few weeks. The company expects to close the acquisition of Kansas City Power by the end of this year. Western has been trying to Kansas City-based Kansas Power Light since it launched a hostile takeover bid in April 1996. The company outbid UtiliCorp United for the company in February 1997. Shares of the company pected to remain depressed until- the future of the acquisition termined and the investors see newly appointed chairman David Wittig's strategic plans unveiled! in a few months, Tirello a former Wall Street ment banker who specialized in acquisitions, was named chairman in January.

Atwood plant needs straw By The Salina Journal ATWOOD The Overland Park-based Harvest Board International, which plans to build a straw board plant near Atwood, is stepping up straw procurement plans for the 1999 wheat harvest. Don Coleman, Harvest Board vice president, said his company is seeking additional bids for the baling and delivery of wheat straw for the Rawlins County plant. Company officials estimate they will need between 30,000 and 40,000 tons of straw from this year's wheat crop to manufacture its agrifiber composite board panels. "Next year, when the plant is operating at full capacity, HBI wUl need approximately 128,000 tons of straw to operate the mill," Coleman' said. "We have approximately 40,000 acres of straw under contract for 1999, so our immediate focus is finding some additional motivated and hard-working individuals to bale the straw and haul it to our plant." Daniel R.

Saulnier, CFP Senior Financial Advisor and Principal Certified Financial Planner Personal Financial Planning Tax Planning Strategies Money Market and Mutual Funds Insurance and Annuity Products Investment Certificates American Express Financial Advisors Inc. 1015 Elmhursl Boulevard P.O. Box 2447 Salina, Kansas 67401 (785) 827-8766 The Salina Journal welcomes these conventions and meetings to Salina: Gurry 2737 Belmont Blvd. 785-823-5129 We'll always be there for you. Shelter Insurance Home Office: Columbia, MO eve EXPANDING Source: Action Travel 1 Journal Graphic Debbi Hansen We welcome a new Farm Bureau agent DebbI Hansen to our Saline County team of professionals.

farm Bureau insurance Terry Burger 328 Ohl Sallna KS Agency Manager 785-827-4426 March 21 Providence Jensen Auction Retreads March 21-23 Community Health Improvement March 22 Kansas Cellular Rotary March 22-23 Bell Associates Team Seminar March 22-24 New Holland March 22-25 Mid America Farm Expo Union Pacific March 23 O'Conner Company American Heart Association Nutrition for Life Community Banker Association March 23-25 Blakely March 24 KETCH IGF Insurance March 24-25 First Contact-Cisco Dept. Community Education March 24-26 Kansas Healthcare Environmental March 25-26 Southern Baptist March 25 New Image WIN Catbackers March 26 Kansas Cellular March 27 AHSGR Kansas Llama Association March 29 Kansas Forage and Grassland March 29-31 Kansas Healthcare Engineers March 30-31 CCCC March 31 Do It Best Corp. Kansas Organization of Skilled Care Fred Pryor 30 people 100 people 100 people 50 people 50 people 100 people 40 people 30 people 35 people 400 people 80 people 50 people 25 people 25 people 60 people 60 people 60 people 15 people 40 people 75 people 10 people 50 people 15 people 60 people 100 people 50 people 20 people 20 people 130 people 10 people 40 people 20 people 100 people 100 people Red Coach Inn Red Coach Inn Red Coach Inn Holidome Ramada Mid America Inn Holidome Holldonw Ramada Bicentennial Center HoHdomc Ramada Ramada Red Coach Inn Red Coach Inn Mid America Inn Red Coach Inn Ramada Ramada Holidomc Holidome Red Coach Inn Ramada Holidome KSU-Salina Ramuda Red Coach Inn Ramada Holidome Holidome Red Coach lun Holidome Holidome Red Caxh Inn rrea rryor iw pcupie ixtu ill We welcome you to and hope you enjoy your List provided courtesy of the Salina Area Chamber of Commerce Salina Journal or 1-SOO-S27-MM (Kansas)..