The Cincinnati Enquirer from Cincinnati, Ohio • Page 14

B-6 BUSINESS THE CINCINNATI ENQUIRER Saturday, June 8, 1 985 Os US Portfolio Charter Gets OK; More Home State Sold Gov. Richard Celeste in March. Charter Oak offices are in Groesbeck, Deer Park, Springdale and Clermont County. THE THRIFTS had been insured by the Ohio Deposit Guarantee Fund (ODGF), but that fund became insolvent after the collapse of Home State Savings Bank of Cincinnati. The state approved Hunter Savings and its owner, American Financial last week to take over Home State.

In the sale of Home State branches, First National acquires $150 million in deposits and an equal amount of cash. (Deposits are counted as liabilities because they can be withdrawn.) This is the second sale of Home State branches in two days. On Thursday, Ameritrust Corp. of Cleveland announced it bought 10 Home State branches in Columbus for $6.2 million. ferent First National subsidiaries.

A CHARTER Oak executive said the announcement that the company could return to business as usual had to be delayed several hours while the staff was alerted to report to work this morning in all branches. The company also wanted to review the conditions that must be met before full Insurance coverage is received from the Federal Savings and Loan Insurance Corp. and to check its money supply. Bob Moore, a spokesman for the Federal Home Loan Bank Board In Washington, said Charter Oak has been accepted for membership into the Federal Home Loan Bank system, which regu- lates the nation's federally insured thrifts. Charter Oak has $320 million in assets, making it the largest of the privately Insured thrifts closed by order of ffr '1 THE CINCINNATI ENQUIRER Charter Oak Savings Association will be open 9:30 a.m.-l p.m.

today for full service, following the conditional approval It received late Friday for federal deposit Insurance. Officials were working into the night to meet a promise to depositors that the company would lift the withdrawal limitations as soon as possible. Also Friday, First National Cincinnati Corp. said it is buying 10 Home State Savings Bank offices in Cincinnati, Mlddletown and Dayton from Hunter Savings Association for an undisclosed price. The Cincinnati branches are expected to open Friday under the names of First National Bank of Cincinnati.

Branches in Mlddletown and Dayton will open under the names of three dif Business Climates Ranked Kentucky 21st; Ohio Listed 41st BY GREGG FIELDS The Cincinnati Enquirer Ohio ranked 41st In a state-by-state ranking of manufacturing climates and Kentucky placed 21st, according to a Just-released study by Alexander Grant the major accounting firm. The rankings of the economic cost of doing business were an Improvement over 1984, when Ohio placed 46th and Kentucky came In 25th. Local officials praised the improvement, but added that the report's findings aren't a complete economic barometer, anyway. For example, the top two states in the survey of the 48 contiguous states are North Dakota and South Dakota, neither of which Is known for its prowess in heavy industry. "We don't expect a dramatic migration to the Dakotas as a result of the study," says Ronald Staurovsky, manager of Alexander Grant's Cincinnati office.

Rather, he said the study is intended to be general in its approach, and to be one of many sources of comparative data when companies look for places to set up shop. "It's not the all-encompassing study that leads to site location," Staurovsky said. "It's something a manufacturer might use as a first step." IN FACT, the study looks at only 22 factors, and some of those factors are given more weight than others. And the way the data are interpreted is also subjective. For example, a high level of unionization is considered strongly negative, even though labor organizations can play an Important role In negotiating labor contracts and mediating worker disputes.

In another case, environmental control laws are considered negative, although such laws might contribute to a higher quality of life and thus help lure Jobs Into an area. "Issues like quality of life and proximity to markets tend to weight more heavily with the people we work than the factors in the Grant study," said James Wuenker, vice president of economic development for the Greater Cincinnati Chamber of Commerce. Judson Edwards, vice president of economic development for the Northern Kentucky Chamber of Commerce, added that the Alexander Grant study doesn't consider overall geographic location. The Great Lakes region, for example, consistently scores last In the study, although it also is the nation's most heavily-Industrialized region. "Industrial development has always followed transportation," Edwards said.

"We Just build on that infrastructure." JOSEPH BY The No in a Joseph anything and at For American flight date. And asset the charters. AAS go with says. Not pay "If offer you've use for steel capacity, executive and idle AAS The got off salesman 1977. The Cincinnati EnquirerFred Straub J.

MOEGGENBERG stands in front of hangar at Lunken Airport where his management service is located. Plane Management Refined American Air Services Flying High Those branches contained $46 million In deposits. THE SALE leaves Hunter with Home State offices downtown, In Groesbeck, Hyde Park, Norwood, Roselawn, Spring-dale and Western Hills. In Cincinnati, First National Bank of Cincinnati will take over the Brentwood, Reading, Delhi, Kenwood and Mount Washington branches of Home State. The Home State branch in Middle-town will become part of the Second National Bank of Hamilton, a First National subsidiary.

Two First National subsidiaries-First National Bank Trust of Troy and Miamibank N.A.-will take over two Home State branches in Dayton. All required regulatory approvals are expected to be received to allow the openings next Friday. Retailing Remains Vibrant Elder-Beerman Isolated Case BY GREGG FIELDS The Cincinnati Enquirer Elder-Beerman department store's departure from downtown shouldn't significantly affect the viability of the central business district as a retail center, observers say. Retail sources said it appeared to them the store hadn't done well since taking over the property at Fifth and Vine Sts. in 1978.

The previous occupant was Mabley Carew, a department store that Is now defunct. Elder-Beerman announced a close-out sale will begin June 19 and apparently the store will close for good June 22. Its three suburban Cincinnati stores will remain open, however. Some observers familiar with the situation said Elder-Beerman could never overcome Ma-bley's less-than successful Image. That contrasts sharply with Elder-Beerman's performance in Dayton, Its hometown, where it is considered a savvy merchandiser and tough competitor.

"I DON'T think they were doing enough business (for the closing) to have an effect (on the downtown)," said a high-placed source at one downtown department store, who asked not to be identified. He added: "In my opinion Mabley Carew was not a particularly success retailer In this market and Elder-Beerman found that fighting that image is tough. This isn't an Indicator of weakness downtown." Downtown has four other department stores Shillto Rikes, McAlpin's, L.S. Ayres and Saks Fifth Avenue. Although retailers say downtown remains viable, they add that parking problems have become chronic and threaten to choke business.

"We need more parking," said Shirley Flshel, owner of Henry Harris, a women's specialty store, In the Carew Tower Arcade. She said her situation is alleviated somewhat by the fact that valet parking is available at the Netherland Plaza hotel next door. Max Gutmann, Elder-Beerman's chairman, didn't deny the store was losing money. But he said he saw no point in Investing in the store and making it economically viable because it was obvious the city was trying to get rid of him. "It came as a total surprise to me when I read one day In the Cincinnati paper that they no longer wanted us on that corner," Gutmann said.

"I think Cincinnati is a very viable city," he added. "But now that I'm leaving I feel qualified to say that It's Just as Important for the city to pay attention to those retailers already there as it is to try to bring in new ones." Economy Evans called the level of new Job creation "very strong" and said It overshad-menthe drP ln manufacturln8 have a two-tiered economy with very rapid Job growth ln the service sector and contraction in many manufacturing industries," said analyst Joe Carson of Merrill Lynch Co. "At some point, weakness in the goods-producing sector should spill over Into services. We think the unemployment rate will edge up to around by the end of the year." "The May employment statistics show that the engine of economic growth that produced so many new Jobs at the beginning of the recovery now appears to be ln danger of running out of gas," said John M. Albertine, president of the American Business 1340.

1320- 4 MA rfl 1280 12604 1240 24 28 29 30 31 3 4 5 6 7 May Jun Dow Jones 30 Industrials High And Closa (by white dot) Market's Week Ends With Loss The stock market sustained its biggest loss since the start of its late-spring rally as interest rates Jumped in the credit markets Friday. The Dow Jones average of 30 industrials, which hit record highs Wednesday and Thursday, dropped back 10.86 to 1,316.42 to finish the week with a net gain of 1.01 points. The decline was the biggest for the average since it tumbled 16.01 points on May 1. ACQUISITIONS RESORTS EYES TWA: Resorts International Inc. has expressed an Interest in acquiring Trans World Airlines which is trying to avoid a takeover by Investor Carl C.

Icahn, sources said Friday. TWA and Resorts, a hotel-casino operator based in North Miami, declined any comment on Resorts' overture. Icahn also declined comment. Eastern Airlines, meanwhile, acknowledged it had examined a possible merger with TWA, but said It had determined such a marriage was unlikely because of "the problems and complexities involved," including how to deal with the 32.8 stake in TWA held by Icahn's Investor group. MARRIOTT STOPS TALKS: Marriott Corp.

said Friday It had "discontinued" its talks to purchase the Howard Johnson Co. The restaurant and hotel chain has been one of several companies talking with the Imperial Group of England, owners of Howard Johnson's since 1979. Officials would not elaborate on the talks nor why they broke off. They would not confirm earlier reports that Marriott and Prime Motor Inns of Clifton, N.J., might be considering a joint acquisition of Howard Johnson's for about $400 million. AMOCO MAY DEAL: Amoco Corp.

Indicated it may be Interested in acquiring a small number of the service stations that Atlantic Richfield has put up for sale. Carl Meyerdlrk, a spokesman for Amoco, said the company may be Interested "in a few select locations," but isn't interested in acquiring the entire package of service stations. He added that he didn't know whether Amoco has held any talks with Arco on the subject. FINANCE RATE CUT UNLIKELY: Another discount rate cut In the next few weeks is unlikely, Salomon Brothers chief economist Henry Kaufman writes in his latest "Com ments on Credit." "The Just-released statistics showing an increase of 345,000 in the number of people employed last month suggest that the Federal Reserve need not rush to accelerate the pace of monetary accommodation," KAUFMAN Kaufman asserts. Kaufman says the data indicate that overall economic activity is not eroding further and that some recovery from the very meager first quarter rate is occurring.

AFC FILES WITH SEC: American Financial Corp. filed with the Securities and Exchange Commission $100 million of 13W series A debentures due Sept. 14, 2004. Proceeds will be used to retire about $62.7 million of debt, the company said. The underwriting will be managed by Drexel Burnham Lambert Inc.

DOLLAR VALUE RISES: The dollar rose broadly Friday, lifted by a wave of buying that followed a Labor Department report of unexpected employment gains last month in the United States. Rising Interest rates in U.S. bond markets following the employment report helped the dollar hold onto Its gains, analysts said. As the dollar rose, gold prices drifted lower In quiet European and U.S. trading, reversing slight gains earlier In the day in Hong Kong.

ALUS CHALMERS TARGETED: Allls-Chalmers Corp. said Friday that the New York Stock Exchange plans to delist the company's stock, a decision Allls-Chalmers said it would appeal. In a statement from Its Milwaukee headquarters, Allls-Chalmers said the NYSE took exception to the company's May 24 conversion of debt to equity, ruling that the conversion should have had prior shareholder approval. As a result of the exchange's Interpretation of Its shareholder-approval rules, the NYSE advised Allls-Chalmers that It would technically begin delisting proceedings, the company said. Complied by Dick Benson from staff and wire reports 4 MIKE BOYER Cincinnati Enquirer business would Invest half a million dollars computer and not maximize Its use, says J.

Moeggenberg, so why should it expect less of Its $1 million corporate Jet? That's the premise behind professional aircraft management, says Moeggenberg, president founder of American Air Services based Lunken Airport. a monthly fee of between $4,000 and $8,000, Air Services (AAS) manages a company's Jet, handling everything from hiring the crew to keeping all the paper work up to If the company wants to keep its aircraft working even when Its employees aren't In sky, AAS offers the Jet for private executive CURRENTLY has about 15 private corporate Jets in its fleet and about 250 charter customers. "Many companies own aircraft, and employ full-time pilots and the maintenance crews that them, but they aren't being used anywhere near where they should be," Moeggenberg that a business should expect charters to for its Jet. that was the case, we'd buy the Jets and the charter service," Moeggenberg says. "If got an airplane, you've got to first have a the airplane." "What we do is no different than what the Industry does.

When a company has excess It sells It off," adds Darnell H. Martens, vice president. "Airplanes are expensive no corporation can have equipment that sits for too long." Instead of selling the Jet, the corporation lets lease it for corporate charters. idea of corporate aircraft management the ground In the mid-1960s when Executive Air Fleet, the industry leader, was established In New Jersey. Moeggenberg, who started his career as a for Tri-State Aviation, founded AAS in WITH THE addition of a $1 million private terminal and hangar at Lunken in December and the Installation of an IBM computer system, the company's sales recently have taken off like a Lear Jet.

For fiscal 1985, American Air, which employs about 27 people, had sales of $1.85 million, almost double 1983 sales. Moeggenberg projects sales for the current year will grow to $3.5 million. AAS Is concentrating its efforts in the turboprop and light Jet segment of the corporate aircraft market. That Includes aircraft such as the Lear Jet, Cessna Citation and Beechcraft King Air, all of which carry about half a dozen passengers. The turboprop-light Jet market represents one of the fastest growing segments of the aircraft Industry.

There are about 9,000 turboprop and small Jets registered in the U.S., and the Federal Aviation Administration estimates that figure will reach 14,300 by the end of the decade. To tap that growth, AAS is expanding Initially from Cincinnati to nearby cities such as Columbus, Louisville and Indianapolis. AMERICAN AIR'S new IBM System 36 computer keeps tabs on a client's Jet, tracking things such as where the Jet is flying, maintenance needs and flight reports, all without an appreciable Increase in its overhead. The computer also allows American Air to operate central dispatching from Lunken Airport and make charter reservations through an 800-telephone number. Airline deregulation has created a flock of new air carriers looking for a slice of the business travel market, but AAS says its charter service Is competitive because it can tailor flights and landing locations to the business person's needs.

It flies into 13,000 airports in the U.S., that's 12,680 more than served by scheduled airlines, AAS says. "For example," Moeggenberg says, "If you've got a meeting in Ann Arbor, if you fly by scheduled airline you've got to fly Into Detroit and then spend a couple hours driving to and from Ann Arbor, while we can fly you right into Ann Arbor and have a car waiting." In terms of the travel time away from the office, he says, "In many cases it Is less expensive to charter than fly commercial." Jobless Figures Accent Two Tiered Mav. me level that. hns hld cinns rh. ruary.

Civilian employment also held steady last month at 106.9 million. The weakest segments of manufacturing In May were a drop in electrical equipment and clothing. The brightest spots in the service sector were in health services, plus business services such as advertising, temporary help agencies, computer and data processing services, rental and leasing. Job gains there totaled 111,000. Construction added 30,000 Jobs In May.

AT THE White House, spokesman Larry Speakes called the Job-creation figure "a significant finding and an indicator of continued solid gains in employment and growth In the overall economy." Private economist Michael commissioner of labor statistics, sniri in congressional testimony. Nine out of 10 new Jobs created since May 1984 have been in the service sector. "The economy is on two paths," Ms. Norwood told the Joint Economic Committee. "One path the service economy, which Is growing, and growing fast.

The other path is the industrial sector, which is continuing to lose Jobs. As a result, there are (geographic) pockets of trouble that clearly need attention." EMPLOYMENT LEVELS in six manufacturing industries steel, tobacco, textiles, chemicals, leather and petroleum and coal are below what they were during the recession. Civilian Joblessness has been moving in the narrow range of 7.1 to 7.5 for the last year. The number of unemployed Americans totaled 8.4 million In BY PETE YOST The Associated Press WASHINGTON Employment levels in manufacturing continued to deteriorate in May, but the economy created 345,000 new Jobs in service industries as the nation's civilian Jobless rate remained mired at 7.3 for the fourth straight month. It was the longest stagnant period for the unemployment rate In at least 14 years, and analysts said Friday that the May report from the Labor Department was mixed news for the economy.

Manufacturing employment fell by 28,000. Since the start of the year, some 163,000 production Jobs have been lost. After 30 months of the economic recovery, manufacturing has regained only about 60 of the Jobs lost during the 1981-82 recession, Janet L. Norwood, the.