The Indianapolis Star from Indianapolis, Indiana • Page 1

a a a a a a a a a a ALL EDITIONS THE INDIANAPOLIS STAR TUESDAY, JUNE 4, 1985 "Where the Spirit of the Lord is, there is Liberty" Cor. 3:17 Single 25 Cents British try to reverse welfare-state growth De Don't let us down, Louis Moments before lobster race in Halifax, aged by Bill Mahar. But Nova Scotia, a lobster named Louis is encourLouis was among the despite the pep talk, petition. What happens to the losing lobsters? losers in Monday's partake in the meal," Mahar said. Shelbyville's Farmers National Bank plans to join Merchants in merger Merchants National Corp.

and Farmers National Corp. of Shelbyannounced plans to Monday. The deal would leave Shelbyville without a locally owned bank. But officials of both banks said the merger would be advantageous to the Shelby County community. Farmers National Bank is the wholly owned subsidiary of Farmers National Corp.

Carlos E. Craven, president of Farmers, said during a telephone interview that because of new banking regulations, banks the size of Farmers will have a hard time financially in the future. Farmers has assets of more than $127 million. "We're going to need help to survive one day," he said. "Merchants provides protection.

Go back to the corner grocery. They're supermarkets Otto N. Frenzel III. chairman of Merchants board of directors and chief executive officer, said MerBy MORRIS D. WILDEY STAR ASSISTANT BUSINESS EDITOR Weather Thunder road Partly cloudy with a chance of thunderstorms in Indiana today.

Today's high in Indianapolis, 80; low, 60. Monday's high, 78; low. 66. Details on Page 37. Chuckle The road to success is dotted with a lot of tempting parking spaces.

Prayer On this day, help us, Lord, to observe a period of absolute quietness. Thank you for teaching us it is through silence we are able to feel Your healing touch. Amen. Index Arts, Dr. Lamb 16 Leisure .....27,28 Landers ...........9 Bridge .............29 8,9 Classified Lighter Side ...38 Ads Movies 27 Comics 17 Obituaries .......28 Crossword .....37 Painting Doonesbury 16 the Town ........8 Editorials .10 Sports Finance 18-22 Statistics 37 Graham ...........29 -Radio .12,13 Heloise ..............9 Weather: ..........37 Horoscope 16 Werner 10 Jumble 16 Phone numbers Circulation 633-9211 Main office Classified Ads Scores after 4:30 p.m.

VOLUME 82, No. 364 CARRIER DELIVERED $1.20 WK MOTOR DELIVERED $1.25 PER WK Copyright 1985 The Indianapolis Star By JO THOMAS "There is widespread dissatisfacNEW YORK TIMES tion with our present system." SoLondon The government, saycial Services Secretary Norman ing the national welfare system had Fowler said in a statement to its way." Monday proposed the liament. "It is too complicated. It most sweeping changes in the cradoes not always put help where it is dle-to-the grave British welfare state most since it was designed more than 40 be blunt." the government years ago. said in a Green Paper, or draft plan.

Almost every household in Britissued Monday, "the British social ain would be affected by the prosecurity system has lost its way." posed changes in the welfare systhe government said will charity groups immediately But tem, which denounced the government's procost more than 1 billion this year. posals as an attack on the poor, and $50 The government's proposals folConservative Party dissidents said low 18 months of study of the system, which was set up after World political discomfort." the proposal "promises maximum War II to relieve poverty caused by unemployment, sickness, old age or The Labor Party, saying the welthe extra demands of raising a famfare overhaul would make unemily. The system has been described ployed people "virtual outcasts in by some critics as a juggernaut their own society," said. "This is a burning up scarce resources and by black day for the people of Britain others as "the nanny state" at its and a monument to six years of worst. See BRITISH Page 4 State accuses CANADIAN PRESS STAFF PHOTO Merchants Chairman Otto N.

terested in Farmers because it "fits See MERGER Page 6 Frenzel Ill explains agreement. firm of violating fu fund-raiser laws the criteria we like." He said Bank merger seen as sign of good economy in Shelbyville, can Fletcher's presence in Shelby County was not a reason for Merchants wanting Farmers. Page 6 chants will be able to provide new "They are the market leader in services in Shelbyville. He added Shelby County and the future of that Farmers will continue to be Merchants is with financial integral part of the communitions like Farmers," he said. ty." He also said Merchants was inFarmers National Bank will terested in Farmers because Shelbykeep much of its autonomy and will ville is near Indianapolis.

not be operated as a Merchants Their agreement calls for an branch, Frenzel explained after a exchange of stock and cash totaling news conference at Merchants approximately $9.5 million. The headquarters downtown. terms are subject to adjustment unFarmers National management til the closing. and board of directors, as well as Farmers board of directors has a the bank's name, will be retained. majority of its holding company's Shelbyville's other bank, Shelby stock.

Frenzel said. National, merged with American Farmers' employees were offiFletcher National Bank and Trust cially notified of the agreement Co. last year. Shelby National was Monday afternoon. in financial trouble: at the time.

Farmers is financially sound, Donald W. Tanselle, president bank officials said. and chief operation officer of chants National said in Shelthough, is a friendly situation." byville that merger talks started in Craven said. "We are happy with it." May. Frenzel said Merchants was inMerchants is the second InBy DAVID J.

REMONDINI quires professional fund-raisers to STAR STAFF WRITER tell customers they are being paid to solicit funds. Professional fundAn Indianapolis company that does of contriburaisers must also disclose what percentage of the proceeds would actutelephone soliciting tions for local charities was accused by Attorney General Linley E. Pearally go Specifically, the charity. lawsuit to the accuses son Monday of violating the state's Ja Tee Productions, which is professional fund-raising law. James Traylor and his wife Karen.

Ja North Tee Tacoma Productions, 5500 could block be of failing to tell potential customers of Avenue, fined $10,000 for each of 1.600 tickets they are being solicited by professional fund-raisers. sold to a country music show the fund-raising company ran for the According to the lawsuit, JaNineveh Prince's Lakes Jaycees. that Tee's Ja Tee solicitors would also be failed paid to for disclose all Filed in Marion Superior Court, expenses associated with the fundCivil Division, Room Three, the lawraising and receive 60 percent of net suit accusing Ja-Tee Productions of the violations is the first lawsuit profits. filed under the state's Professional The lawsuit also charges that Fund-raising Act. Ja Tee employees were instructed to tell potential customers who The attorney general's office asked them that they did not know first learned of the violations after a reporter for The Indianapolis Star what percentage of the money worked undercover as a telephone raised went to the charitable organization.

solicitor for Ja-Tee for four days last summer and wrote articles Working out rooms of rented the did follow with a bank of telephones, Ja-Tee showing company not state law for professional fundsolicitors would telephone potential raisers. customers and ask if they would Monday's lawsuit was based on like to purchase tickets to an uparticles and affidavits given to. coming country music show. Custhose the attorney general's office by two tomers were told the proceeds former Ja-Tee employees who conwould benefit a local charity. The Star If a customer did not want to tacted last July.

Indiana's fund-raising law See FUND-RAISER Page 6 State's prisons becoming 'factories with fences' By PATRICK T. MORRISON THIRD OF A SERIES And WILLIAM J. SEDIVY STAR STAFF WRITERS Experts now say prison doesn't reform criminals, "The penal code shall be foundPage 6 ed on the principles of reformation. and not of vindictive change in the way the state handles its convicted felons. Work, Indiana Constitution not rehabilitation, is the key element in this change.

The men who drafted the IndiIndiana correction officials are ana Constitution could not have following, at least in part, a theory foreseen the Indiana prison system expounded by Chief Justice of the of the 1980s, in which longer senUnited States Warren E. Burger tences, elimination of parole and make prisons "factories with more prosecutions have pushed the fences." prison population 42 percent over In the Department of Correction capacity. envisioned by state officials, every Indiana's bulging prisons are inmate will have been reclassified forcing change fundamental under a sophisticated ranking sysChurch group urges action on housing By RUTH HOLLADAY The study identified five areas of STAR RELIGION WRITER need: owner-occupied homes in The Church Federation of Greatneed of repair, emergency shelter, er Indianapolis on Monday issued a affordable' and livable rental properchallenge to local religious commuties, housing for the aging and pubnities to help solve the city's houslic housing. ing problems, which it called critiThe Rev. L.

Eugene Ton, execucal. tive minister with the Indianapolis In a statement mailed to 1,200 Baptist Association and co-chairman local Protestant, Catholic and Jewof the housing committee, urged the ish congregations, the federation churches to respond in a practical said the poor and elderly in the fashion to the problems, which he metropolitan area are often victimsaid are too great to be addressed ized by inadequate housing. The by any single social service or govfederation's leaders urged churches ernment to develop housing alternatives. "The church has had a long "We assert that all persons have history of being concerned about the right to decent conditions of life, people and shelter," he said. "Howincluding adequate housing.

ever, in recent months the place upon ourselves as tion of that need has become sharppeople of God the demand that we er and broader." serve both as a model for efforts in Social service agencies estimate this area and as a moral voice," that at least 6.000 homeowners out said the ecumenical statement preof 154.000 in Marion County cannot pared by 27 community leaders and afford pay for essential repairs to church people who have been their houses. The cost of those restudying housing needs in Indianapairs is estimated at $11,000 per polis. house. tem. A $1.6 million computer system will keep track of each prisoner, his classification, security level and job skills.

At least 7,500 acres of stateowned property will be farmed by inmates trained at a new agricultural education center at the Indiana State Farm at Putnamville. The fruit, vegetables and livestock they raise will be sent to a food processing plant operated by other inmates at the new $42 million industrial prison at Pendleton. Computerization will be used there, too, to track billing, inventory and production control. The plant's food output will supply a major portion of the needs of the entire correction system. The Rev.

L. Eugene Ton urged churches to respond in a practical way. At the request of city officials, the Community Service Council is looking at ways to provide relief for owners of dilapidated residences. City inspectors are making a systematic search of Center Township neighborhoods, counting the number of abandoned homes and See HOUSING Page 4 At other penal institutions, most routine maintenance will be done by inmates who have learned their skills in programs offered behind the walls. For example, if an institution needs some welding work, the computer will be checked for an inmate capable of doing the job and who has a security rating that will allow him to do it.

Other inmates will perform selected community work, state highway cleanup and forestry work. And traditional prison work programs, like the license plate factory at the Indiana State Prison at Michigan City, will continue. The move toward work proSee PRISONS Page 6 Indiana Locked into the system Mohr defends odd distribution of fees By RICHARD E. CADY for passage of cross-county banking STAR STAFF WRITER legislation. Mohr said Garver had paid him Undergoing six hours of crossabout $18.000 for examination, R.

Mohr contina year assisting ued to Larry Monthe League For Economic Developdeny any wrongdoing ment since 1975. day while defending the unusual Mohr also testified that Garver way fees were distributed from rehad been receiving a consulting fee ductions for downtown property asfrom the Indiana Electric Associasessments. tion since the early 1960s. Mohr is As the Merchants Plaza case president of the association, which entered its seventh week, the legisrepresents Indiana's five investorlative lobbying activities of two owned utilities. the defendants arose for the first Although both Mohr and Garver time before a federal court jury and are prominent lobbyists, Steckler Judge William E.

Steckler. earlier had advised federal This occurred when Mohr, the prosecutors not too delve too far into the former chairman of the State Board various business activities of Mohr of Tax Commissioners, testified that and Garver other than private asprivate consulting sessment work. This was to avoid fees he received from lobbyist Fred W. Garver were figured into some of the fees the potentially prejudicial testimony two of them received for helping to about other federal investigations not related to the Merchants Plaza arrange lower assessments for Mercase. chants Plaza in 1978-79.

Mohr and Garver are on trial Mohr identified the consulting with Indianapolis attorney Claude fees as money Garver paid him for R. Magnuson, the former treasurer work for the League For Economic of the Indiana Democratic Party. A Development, a coalition of many of Indiana's larger banks that lobbied See FEES Page 4.