The Indianapolis Star from Indianapolis, Indiana • Page 27

TUESDAY, OCTOBER 4. 19S8 -THE INDIANAPOLIS STAI1- C-5 Ho osier bank closed, 2 thrifts acquired The ultimate portable 386 PC. $502500 tii'too I The Federal Deposit Insurance Corp. was named the receiver for the bank. Trustcorp did not disclose what it paid for Liberty Bank, or how much federal assistance it will receive in the acquisition.

Ruth Harrison, director of DFI, said Liberty Bank had "a lot of problem assets and was not able to immediately inject adequate capital." Harrison described it as an ongoing situation. Liberty Bank will become a branch of Trustcorp Bank. Goshen, which opened a branch in Warsaw in October 1986. Trustcorp Bank, Goshen, formerly the Salem Bank and Trust was acquired by Trustcorp in October 1986. "This acquisition fits well with our expansion strategy and we welcome the opportunity to serve this market," said Arthur H.

McElwee chairman of Trustcorp of Indiana. Liberty Bank had branches In Leiters Ford. North Webster and Rochester. Customers of Liberty Bank will be notified by public announcement and letter of the name change, but there will be no immediate changes affecting customer accounts or other transactions, Trustcorp said. Trustcorp has two Indiana bank holding companies and 10 Indiana bank subsidiaries, including Trustcorp Bank, Indianapolis.

In Monday's thrift acquisi T5100 Desktop power, in a compact 15 lb. package that's just 80386CPUat 16MHz; 80387 co-processor socket 40MB hard disk, 1.44MB 3'2" diskette drive. GOLDEN Avv EAGLE TOSHIBA i i c. 8515 Zionsville Road, Indianapolis, IN 46268 outside Indiana 1-80O635-3629 tions, the Federal Savings and Loan Insurance Corp. said it has resolved all of the state's thrift problems that had been targeted for action.

First Federal Savings Bank of Indiana, Merrillville, and Capital Federal Savings and Loan Association. Gary, were acquired by MACO Bancorp a newly formed holding company controlled by J. William Middendorf II and Cyrus A. Ansary. First Federal, with assets of $287 million and liabilities of $292.7 million, had 13 offices throughout Lake and Porter counties.

Capital Federal, with three offices in Gary, had assets of $54.8 million and liabilities of $55.8 million. The project calls for a mix of automated machinery, computers and workers. Initially, union representatives did not participate in the modernization's planning. However, they were brought into the preparation and the project benefited. For instance, workers helped with how machines were arranged.

"We were all engineering types, says Anthony A. Codar maz, an advanced manufactur Ing executive. "We made simple common-sense mistakes which they would see." Some areas of the modernized section are producing parts, with others scheduled to come on line. The pace of change does not appear to be abating at Allison Gas Turbine. At least Its general manager doesn talk that way "I hope I can create an envi ronment where it's not only ac ceptable to do things that are good for the business, but mandatory," Wallace says.

Like the Japanese, the division leader says he wants "an atmosphere of continuous improvement." NEW 1988 ISUZU NPR TURBO DIESEL 16' SUPREME BOX 48 o.cTl 1 8, 1 58" 25 R.nduoi 60 1 1 8, 1 5 Residual $18,158.25 Capitol Cost $399. per month on 48 mos. lease with 25 residual CALL TIM 247-6631 1-800-792-3502 SPEEDWAY ISUZU 5730 FORTUNE CIRCLE INDIANAPOLIS, IND. What fUlM Wit management more flexibility In deploying workers. Further talks were necessary before a new contract was reached.

Allison's past is one of confrontation. "The history here has not been real conducive in terms of jointly deciding things," Newton says. Some shifts In that attitude are occurring. Take the division's "factory of the future" modernization project, for instance. insuranc Duane Baker One of our team of insurance professionals 3FFILI0TBD BBENCIBS 8802 N.

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After being closed, Warsaw's Liberty Bank Trust Co. opened today as Trustcorp Bank, Go-Ishen, pn affiliate of the $5.7 billion tn assets Trustcorp Inc. of Toledo; Ohio. The Indiana Department of Financial Institutions closed Liberty Dlank on Monday after determining the $46 million in deposits bank was "unsafe and unsound" and in imminent danger of insolvency. It was the state's first bank failure this year.

Futur Continued from Page 1 gines for missiles primarily cruise missiles and other unmanned aircraft. "Clear back in the '50s we were doing some work In missiles," says Joe D. Hester, the division's director of marketing. But "we backed away from it" as the trend went toward rocket engines. During the past decade, though, the cruise missile a short-range missile powered by a small, turbine engine became an important part of the military arsenal.

Meanwhile, Noel Penny Turbine Ltd. of Coventry, England, was looking to expand its presence in the U.S. market. As a result. Allison signed an agreement to manufacture and sell Noel Penny engines In this country.

Penny entered the pact because of Allison's expertise in manufacturing In high volumes. Moreover, Allison is free to develop missile engines of its own. At, this point, the GM division's chances of success are uncertain. Still, the niche Allison Gas Turbine is seeking is a growth market. These days, the Pentagon's focus is more on economy.

The cruise missile is a desirable alternative to more expensive systems, The United States has about 4,000 cruise missiles. Each costs $2 million to $3 million. Military planners want that down to $1 million eventually. "The potential is there for tens of thousands," says Bill Kennedy, an Allison executive involved in the missile effort. As a result, Allison Gas Turbine believes its military business remains valuable despite the fact that defense expenditures are slowing way down from the early 1980s.

"It's true the overall defense business i6n't growing but it is still a big business," Wallace says. 'J', New initiatives Allison wants to broaden its scope beyond the Pentagon. The project with the most potential is the propfan. Until the 1950s, commercial aviation was a big business for what is now Allison Gas Turbine. The Indianapolis factory vas a leading producer of propeller engines.

But then came the turbofan, which guzzled more fuel but also provided a lot more rtpeed, running about 600 mph. The propfan, in effect, is a high-tech version of the propeller engine. Its primary feature: Jwhile as fuel-efficient as old pro Jpellcr planes, its engines and 'curved propeller blades can pro-jvide the speed of a turbo fan. Until a few years ago, it appeared that commercial airliners Jmight rush to buy However, fuel prices the prl-mary spur to the propfan's development dropped and inter- iPlan Continued from Page 1 1 health Insurance program to its members. The program has been in place for about 18 months has 270 members.

It was created because of concerns by small business members. Hope-! well said. I Other large cities have similar i programs, Hopewell said, adding that she sees voluntary pro- 'grams ollered tnrougn Dusiness i associations as a better solution. Edward Roberts, a spokes man for the Indiana Manufactur ers Association, said his organic zatlon opposes mandated benefits, too. That organization represents aoout l.buu compa- nies doing business at 2,000 lo- cations in the state.

"The reality of the alleged ''Massachusetts miracle' is that, Jit is an industrial disaster," Rob-' jerts said. "That is a very linat- E-active place to do business. "It's great for everyone to ave health-care coverage if ou have a Job." Beverly Middaugh, owner of to do if you're bull-headed i i rv JVLT manufacturing does have a little inertia. It is difficult to get people to change." Blake Wallace, general manager est isn't as hot. "The impetus In the airline Industry is not as high as In the mid-'80s," says A.S.

Novlck. chief project engineer. Nevertheless, Novick says the propfan is still on track for the early 1990s. "They are the next generation of aircraft." The question is how big a piece can Allison Gas Turbine get. Once again, Allison formed a partnership, this one with Pratt Whitney, to develop the prop-fan.

That joint venture. PW-Alli-son. is seen as behind the General Electric Co. system. The PW-Allison system, which has not yet been flight tested, has a single row of curved blades.

The GE system has two rows of counter-rotating blades. "It's way too early to pick a concept." Novice says. "This business is a long-term business." Blake Wallace says the market can. support both systems. Other Initiatives are in the experimental stage.

Allison Gas Turbine is a leading researcher into using ceramics tough, brittle, silicon-based materials that can withstand much higher temperatures than metal. That, in turn, could lead to more-efficient and powerful turbine engines in automobiles. However, ceramics allow much less room for flaws. Use of ceramics in engines is still years away. But the Allison project keeps GM's foot in the door.

Labor changes While Allison's business has changed, so has the way its work force interacts with management. For example, the division and UAW Local 933 have worked to avoid layoffs. The union's Newton says the two groups reached "an understanding" where "if they didn't lay off, the union would be sympathetic to their needs." To Wallace, one of those needs is more efficient manufacturing. "Our manufacturing does have a little Inertia," he says. "It is difficult to get people to change." True enough.

Early this year, hourly workers rejected a local contract agreement. Part of the reason the pact called for some consolidation of work classifications basically allowing Bright Ideas in Broad Ripple, an advertising specialty distributor with 10 employees, said: "This Is not an original Idea. Obviously, it's one that gets kicked around and one that small business owners are universally opposed to. "If this was the case, the money that would be spent for insurance would not be available for employee raises. The difference being that a raise Is something that the employee can spend as they please." "I'm somewhat opposed of the government meddling in any kind of employee benefit program." said David Bowen, vice president of the Odle Group, an architectural firm that employees 16 people.

Bowen said a mandated benefit program would take away some of the opportunity for negotiations between employee and employer. The mandated package would affect everything from the employee's pay rate to paid parking by the employer, he said. "If you take away the negotiating you take away the employees' options as well as the employers' options." Bowen said. ina bear market. PEOPLES .75 pin Thursdays till 7 pm 10 am 4 pm ACCOUNT bank Special Midway Airlines coupon offer for Smart Money Account investors: flv to over 45 cities in the U.S.; Bahamas or ihe Virgin Islands for as low as $69 95 each way when vou invest in Smart Monev.

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