The Atlanta Constitution from Atlanta, Georgia • 77

Section a A i BUSI THE ATLINUICONSTITUTION SUNDAY, AUGUST 4, 1974 AOS WAN I 'i La Industry til umm The South Gets Choosey Over New Plants COTTOti PJCK(H') I sjop? judgment on the idea while it considers the environmental risks. Florida began to re-evaluate its open arms approach towards industry about five years ago when the problems associated with rapid growth became apparent, according to David Morgan, director of the Economic Development Division of the state Commerce Department For the past two years, Florida has advertised that it is interested only in those industries which would not endanger the environment, Morgan said. He added that the state's stiff antipollution laws have helped discourage unacceptable industries. "Our theme song, you might say, has been we want orderly growth compatible with the Morgan said. "We are very selec-tive in doing promotional work and aiming at those industries we know to be South, which historically has lagged behind the rest of the nation in industrial development Officials in Louisiana, Alabama and Georgia frankly say they know of no legal industry which would be discouraged from their states.

And when the potential development is large enough as in the case of proposed offshore terminals for giant oil tankers and the oil refineries which accompany such a project environmental considerations can take second place. Most northeastern states have rejected porposalsL- tor such ports, fearing environmental pollution from i 1 spills. But Louisiana, Alabama and Mississippi are actively lobbying for such a port in the Gulf of Mexico. Georgia and South Carolina also have expressed an interest in such a port off their Atlantic coastlines. Only North Carolina has reserved "We don't discourage industries.

But we don't provide any help to those who are not acceptable." Morgan added that in the past two years "we have not had any industry apply to us that was found unacceptable." When a potentially polluting firm expresses an interest in North Carolina, it is referred to the state office of Water and Air Resources which outlines the environmental controls which would be required, says T. B. Broughton, assist-ant director of the state division of economic development "Obviously," he said, "this is going to discourage some people and' cause them to look elsewhere." Broughton also said that North Carolina, with a large number of underemployed workers, is trying to recruit firms "that are paying above the stage average." Mississippi, long one of the poorest states, also Is trying to attract "industries which By DONALD H. DAVIS Associated Print Writer The South once gave a green light to any industry which wanted to locate in Dixie. Now some states have switched that signal to amber for companies which pay low wages and threaten to pollute air and water.

No state flatly bans any legitimate firm. But the change in signals is reflected in recruiting campaigns which focus on industries which employ skilled workers and are environmentally safe. Florida, whose tourist trade depends on clean water and beaches, has taken the lead, advertising that it wants only those firms which will protect the environment. And officials in North Carolina, South Carolina, Mississippi and Tennessee say they actively go after only those firms which offer good jobs and promise no environmental damage. The trend, however, is not universal throughout the have high-paying technical jobs rather than just hiring warm bodies at minimum wages," says Charles McKel-lar, an aide to Gov.

Bill Waller. "There was a time when the state went out for any industry it could get We have shifted emphasis to better development of human resources. At one point, we had plenty of labor at low costs, which attracted industry such as garment plants. Our labor supply has been upgraded over the years McKellar says Mississippi has not had to worry much about environmental considerations, "because we got such a late start in industrial development" Director Milt Folds of me South Carolina Development Board says his staff looks at each prospective new industry with an eye to several factors "decent pay, management that can add to the corn-Turn to Page 7E, Column 1 Staff Drawing Mlka Huay Iff mm QUESTIONS, ANSWERS 'I Richway, Rich'sOpenl New Stores rie rnme Kate-ust What Is It? RICH'S, INC. and its Rich- way discount division I 11 will on en three new stores this coming week.

Page2E I INTEREST RATES I DOMESTIC OIL and gas 'ffAviX. ft. 12.0 11.0 10.0 9.0 8.0 7.0 6.0 gj drilling operations have I reached the highest level 1 In a decade. Page3E MAJOR HOTELS are send-I mg in some of their top executives to prepare for the coming hotel compe- tition in Atlanta. Page 4E MORE THAN 30,000 stock- brokers have turned to I other professions in the I last four years in wake of I a depressed stock I market Page 5E I THE ECONOMY is in a i topsy-turvey, Alice in -A ifyx-' Ks Prime Rati By W.

F. MACKARA Federal Reserve Bank ot Atlanta Eeenomiat There's been a lot of discussion lately about the prime rate. Just what is it? Actually, there is no such thing as the prime rate. Each commercial bank sets its own interest rates, and the rate it charges its most creditworthy business customers is the Reprinted from the Monthly Recieu with permission from the Federal Reserve Bank of Atlanta. bank's prime rate.

Alfhough size per se is not necessarily related to creditworthiness, large firms with well-established, multiple credit lines fit the textbook mold of the best cridit risks. Such firms typically have a demostrated ability to meet their credit obligations. Equally important, they are valuable as sources of deposits. Have banks always bad a prime rate? The concept of a prime rate is relatively new. It was born in 1934 in the doldrums of the Great Depression.

A weak Tourism: Escape Route for Harried Americans, as Here on Beach at Sea Island SOME AREAS STILL FLAT State Tourism Rebounds 5.0 Jul. Oct. Jan. Apr. I Wonderland situation, ac- I I cording to University of 1 1 Georgia economics I professor Dr.

James L. I 1 Green. Page6E I Over-the-Counter Table. 8E I i Pi 1 Week's Winners, Losers 2E 1 Ship Sailings 2E'l Apr. 1974 Jul.

1973 winter and spring licks dished out by the energy crunch. This bouncs-back In the vigor of Georgia's travel industry, however, appears By JAMES HIGHTOWER Atlanta Journal Business Writer He may not realize it but the American tourist is probably the most charted, studied and analyzed consumer that ever spends a buck. A couple of decades ago, were spending billions to get to an attractive beach or mountain retreat In Georgia, scrutinizing by both the travel industry and state agencies indicates tourism has rebounded somewhat this summer from the mom and dad and the kids were pretty much ignored by economic observers to go to Florida or a nearby park and enjoy a vacation. But that was before it dawned on other states besides Florida and California that these people Many banks failed during the Thirties, but those which man-Turn to Page 8E, Column 1 economy and a low demand for bank loans usually go together, and in 1934 the economy was very weak. spotted with some segments of Turn to Page 7E, Column 1 ONLY 110 BROKERAGES? Wall Sheet: Scene of Change 1- IX nfl II --I Ibi.P 'In 7 lis ill J.

1 11 A I i i A- 1 II OMNI Atlanta-Hotel Firm's Home Base By COLLEEN TEASLEY Comlllotlon Soilness Writer When the Omni International Hotel opens here next summer, it will become the "mother ship" of the new Omni Hotel chain that is headquartered in Atlanta. "We consider the Atlanta property our mother ship, the one with which we will make our first and most important impression," said Omni International Hotel new president, 35-year-old Max Schnallanger. The 530-room Omni Hotel's August 1975 opening will soon be followed by the opening of a Norfolk, Omni Hotel and a year later by a Miami OmniHoteL These three will form the nucleus around which the Omni group will eventually build an international chain of luxury hotels. Omni International Hotels Inc. was formed one year ago and is a subsidiary of Alpert which owns 50 per cent of International City the developer with Cousins Properties Inc.

of the entire Omni International complex. It becomes the first major luxury hotel chain to be headquartered in Atlanta. The Omni hotel and a spate of other luxury and convention hotels are going up in Atlanta at a time when inflation is forcing many tourists to stay Turn to Page 45, Corjmi 1 By DEAN C. MILLER NEW YORK (UPI) An influential Wall Street execu-tive has predicted "vast changes" in the Street of tomorrow and outlined how his firm has positioned itself to be one of the "six or seven financial oligopolies" surviving Congressional dictated changes. The picture Richard H.

Jen rette, president of the Donaldson, Lufkin, Jenrette, financial services holding company, painted for UPI is a bleak one for some 390 New York brokerage houses. His scenario for the New York securities industry after April, 1975, when all fixed commissions disappear for the first time after 182 years of such pricing practices, calls for over the next five years: Elimination through merger, buy-out or shutdown of all but about 110 of the remaining 50 0 brokerages in New York. Brokers with large branch effice networks competing vigorously with banks, real estate and insurance companies and vice versa. Creation of round-the-clock central marketplaces in such strategic financial centers as New York, London, Tokyo and Beirut because wealth Is being accumulated outside the United States, especially in the oil kingdoms of the Middle East The disappearance of exclusive, traditional banking relationships as institutions and corporations search for the special investment skills needed to operate in broadening investment areas. Business becoming more capital intensive, forcing the dominant brokerage firms to raise capital as well as invest it Government pressures become more intense and sophisticated.

And a world economy tak-lng shape despite fits of nationalism, with multinational companies benefiting. "Wall Street has operated under the New York Stock Exchange's pricing umbrella since 1972 with the Security and Exchange Commission's regulatory approval of fixed commissions since the 1930s," explained Jenrette. "Now, next April, the SEC says all fixed commissions are out; rates must be fully negotiated." Jenrette noted that some 700 brokerages operated on Wall Street In the heyday of fixed rates. But the SEC has been chipping away at fixed commissions for years, banning them first on sales of more than $500,000 and then more than $300,000. In the process, more than 100 NYSE member firms have disappeared since the end of 1969.

One reason for the mergers and dropouts, said Jenrette, Is the restructuring of the mar-Turn to Page SE, Column 1 I '4 't I i "if. ill 6 1 if Li-- I wr jmv i-L 1 Staff Photo Chuck Volleittex MOTHER SHIP OMNI HOTEL TAKES SUAPB President Max Schnallanger to Live In SEAT OF AMERICAN CAPITALISM; WALL STREET, NEW YORK STOCK EXCHANGE Statue of George Washington Will Witness Even More Change in Future.