The Indianapolis Star from Indianapolis, Indiana • Page 33

"I Finance The Indianapolis Star SATURDAY, DECEMBER 21, 1985 Obituaries 36 Classified 37-48 PAGE 33 0FF Bell rate killed by increase tie vote; rTHE pv FROM STAR WIRE SERVICES Texaco bid blocked X. A federal Judge has indefi-Trlely postponed action In a bid by Texaco Inc. to win court protection while It ap- peals the $1 1 billion judgment on by Pennzoll Co. The ijudge In White Plains. N.Y., both sides need time to seek an out-of-court settle- ment.

Neither company would comment on the private talks, temporary order was kept force prohibiting Pennzoil jrom attacning liens on xex- a rri nrnnprtv Tpvarn WAR J' found to have wrongly inter fered with a merger agree- hent between Pennzoll and Cietty. Allison hopes to re-enter commercial airline industry with new turbine propfan engine. By WILLIAM J. SEDIVY STAR STAFF WRITER The Indiana Public Service Commission, by virtue of a tie vote, rejected an order Friday which proposed $19 million in rate Increases for Indiana Bell Telephone Co. If approved, the order would have raised the telephone company's annual revenues by Increasing charges for such services as calling directory assistance or having an unlisted telephone number and by increasing charges for Bell's business customers.

The proposed order also called for some decrease in most residential service rates. PSC Commissioners Leslie Duvall and Frederick L. Corban voted for the proposed order. Commission Chairman William W. Montgomery and Willis N.

Zagrovich voted against the proposal. Betsy Wells, a spokeswoman for the commission, said Montgomery and Zagrovich voted against the order because they believe Bell is entitled to an annual revenue increase of about $24 million. Wells said commission members have not yet decided what they will do about the case. She said the commissioners could compromise on the size of the increase, start debating the Women earn less Boeing to test new engines for use in Allison airliners I'' working women earn an average of 64 percent of I what men earn, according to I the 7th annual survey by Allison Gas Turbine Division of General Mo tors Corp. announced Friday an agreement with Boeing Commercial Airplane Co.

to test a new generation of Allison engines for Boeing airliners scheduled for delivery in 1992. If the Allison engine Is accepted andor other makers of commercial would mark Allison's return to that although a company spokesman smaller air carriers are still using prop engines. discussions with the McDonnell Douglas an Allison spokesman said. The engines to be tested use propellor assemblies called propfans that are located at the rear of turbine engines. The propfans push, rather than pull, the aircraft, although engines could be configured with the propfan in the front to be placed under wings, officials said.

The engines draw on technology developed in National Aeronautics and Space Administration research projects in which Allison has participated. Among the benefits are a reduction in fuel consumption of 50 percent compared with the consumption of aircraft such as DC9s and 727s. Allison officials say. without sacrificing speed. Allison said that the engines are also being studied for use by the military for airlift aircraft and reconnaissance aircraft.

The commercial airline engine market Is about the same size as all markets now served by Allison, meaning that success there could provide Ex-manager ends try to buy out dairy significant boost to Allison employment, officials said. Allison about 7.380 people. The engines will be tested by 7J7 commercial airliner. Allison is Economy up 2.4 this year STAR STATE REPORT Richmond. Ind.

The former general manager of Wayne Dairy Inc. has dropped his attempt to buy the closely held Richmond company. On Dec. 9, Indiana Securities Commissioner O. Wayne Davis ruled that the offer, by Jack C.

Surfus, needed to be revised to provide additional information if Surfus and his company. JaLI wished to proceed with the takeover attempt. In a letter to shareholders mailed Thursday. Surfus said that "the events of the last two months have adversely affected my ability to make Wayne Dairy the company I know it could have become. Consequently I have deckled not to proceed at this time." Surfus did not provide additional details, and he could not be reached for further comment Friday.

size of the increase all ove again, or take another vote after Gov. Robert D. Orr appoints a fifth member to the commission. Normally, five commission members examine evidence anof vote on each rate case. The com-; mission is now operating with only four members because Peggy S.

Boehm resigned in Novem-i ber. The rate case began about one year ago when Indiana Bell asked for a $70 million rate in crease. In February, after addressing some issues of the case. Bell was granted a $24.1 million lnterinj' rate increase. The proposed $19 million crease, if passed Friday, would have been the commission's rei sponse to Bell's request for thie remaining $46 million the com pany originally asked for.

Spokesmen for the telephone company said they were disap pointed the commission did nof reach a decision on the case. 4 Company officials also hlnte that they were not pleased with the proposed order supported by Duvall and Corban. 'v "We do not feel there Is any justification for a reduction in basic residential rates at a timd when they cover little more than; half their costs," said Thomas Cj Walker, executive vice presideni and chief financial officer for th utility. The dairy's board of directors fired Surfus In October after he made the buyout offer. He hacj been hired to manage the dairy in 1984.

The board filed objections td the proposal with the state, and Davis took testimony on the is sue during a day-long hearing Dec. 5. In his letter Thursday. Surfus said he would be willing to sell his stock back to Wayne Dairy for $82 per share, the price he was offering to pay in his acquisition offer. Surfus owns about 5 percent of the dairy's stock.

Douglas B. Oler. chairman of the dairy board and a vice president at Second National Bank in Richmond, said the board had not yet acted on Surfus" offer. A permanent successor to Surfus has not been selected, he said. the market value Index closed at 244.11.

up .44. Volume totaled 12.83 million shares compared with 12.09 Thursday. Analysts said the market showed no drastic effects from the so-called witching hour. The term refers to the expiration of a set of options and futures on stock Indexes, which effectively occurred as of Friday's close. Last-minute maneuvering by professional traders involving these contracts and individual stocks has on occasion In the past sparked some sudden swings In stock prices.

The Dow's drop In late trading was attributed by some to selling by these traders. merce's trade reprsentatlve In Japan and the U.S. Department of Agriculture's Animal and Plant Health Inspection Service. The latter agency has among Its duties Inspecting American grain Involved In International trade. While the project Is Intended as a learning experience for students.

Fortune sees other positive results: Fa'vorablc publicity for companies, Individuals and organizations associated with the pro)ect. Expansion of Indiana's foreign markets. Drawing public attention to conservation education and problems In agriculture. But most Important, he said. Is that It "gives the students a chance to be Invovled In something real It ties In well with school curriculum." "He has a well defined plan." Hurt said of Fortune.

"It Is an excellent opportunity lor the children." for slowest ASSOCIATED PRESS Washington The economy grew a lackluster 2.4 percent in 1 985, the slowest pace since tne last recession, the government reported Friday. While the year ended on a faster note, many analysts predicted only a slightly improved economy in 1986. Growth in the gross national product, the total output of goods and services, was down substantially from the revised 6.6 percent advance turned in during 1984 and was below even a scaled-down estimate by the Reagan administration. "The economy Is still growing, but it is growing very slowly and there Is no Indication yet of any change In that pattern." said Lawrence Chimcrlne, head of Chase Econometrics of Bala Cynwyd. Pa.

"We expect 1986 to be pretty much a repeat of 1985." The GNP report and a sepa- Stocks move higher as volume increases -Working Woman magazine. Five years ago women earned I '60 percent ot wnat men aia. The magazine tound mat men If earn more than women do when they are doing "wom en's work." such as that of a I' secretary. But women are paid more when they are in I male-dominated proiessions. I Two-thirds of new female en trants into the labor force take Jobs traditionally doml- nated by men.

the magazine said. Union protests bid Lawyers for United Press International's management and employees union urged a bankruptcy judge to bar the wire service's chief owners from presenting an alternate bid to creditors. The wire service's management and em ployees union has already en dorsed the sale of UPI to a Mexican publisher. Consider ation of an offer other than the $41 million proposal from Mario would "threaten (UPl's) ability to re organize successfully" from Chaptrr 1 1 bankruptcy pro- lection, the lawyers said. Vaz qucz-Rana has given UPI SI million in operating money, as called for In the preliminary sale agreement.

Firm loses contract General Dynamics Corp. has lost a $192 million con tract to its major competitor to build 139 cruise missiles. The Pentagon said the loss of the contract was a result of the company's temporary sus pension from receiving new government business. The contract went instead to Mc Donnell Douglas Co. carbide denies sale llnlnn firhlH fVlITl InsKt- Union Carbide Corp.

Insist ed It's not for sale, despite a multlbllllon-dollar hostile takeover bid from GAF Corp The comnanv denied a report In the Wall Street Journal that GAF's bid would be ac cepted if it were Increased from $4.3 billion. Carbide has made an S85-a-share counter offer to shareholders. GAF's offer Is $68 a share. Ford recalls vehicles Ford Motor Co. said It's rc- ralllniJ about 57.000 1984- and 1985-model medium-duty trucks and school buses.

Thcv mav have faulty hydrau lic brake systems. Ford says it knows of four accidents and three minor Injuries. Involving school buses, mat were caused by the brake problem. GOOD NEWS, HAD NEWS i By HENRY MARTIN "Alice gave me a home computer for my birthday, ao 1 gueaa It'a a floppy dlak Chrlatmaa for me." I NMt ftfttit MM II I 111 I K- Cleveland firm to buy Elston Bank by Boeing airliners, it business noted some old-style turbo business and now employs Boeing for its also holding rate since Gross National Product FLASH FIGURE Real GNP $3,61 2.7 Trillion 4th Quarter ASSOCIATED PRESS rate Labor Department report on Friday showed that Inflation is remaining under control as the economy enters its fourth year of expansion. A GNP-Ilnked inflation mea As of Sept.

30, Ameritrust had $7.3 billion In assets, and Elston had $131 million In assets. The deal, which will be structured as a merger. Is expected to be completed In the second quarter of 1986. The deal requires approval of Elston shareholders and banking regulators. Farrell cited the ability of Elston to draw on corporate lending, corporate services, retail banking and trust services offered by Ameritrust and noted Indiana Farming By ERNEST A.

WILKINSON Because of his work he was named National Conservation Teacher of the Year In 1984. It also Is an extension of the sales of popcorn and soft drinks at Weston basketball games. Principal Stephen A. Burt said. The popcorn project Is being financed by the students, who have 8200 In a bank account earned by recycling aluminum cans and other conservation work, Including an $100 Indiana State Fair exhibit premium.

The project will be Integrated with all subjects In the school curriculum. Already students have been Issued logs In which they arc to record nil expenses, Including those for postage recession sure showed prices rising 3.5 percent in 1985. the lowest increase since 1967. The Labor Department reported that consumer prices were rising at an annual rate of just 3.6 percent during the first 1 1 months of the year, despite a sharp 0.6 percent increase in November prices. Many analysts discounted the big November gain, the largest in almost two years, saying it stemmed from a temporary spurt in food and energy costs.

The administration focused on the fact that a "flash" preliminary estimate showed the economy in the still uncompleted fourth quarter was growing at a 3.2 percent rate, up from a revised 3 percent pace In the third quarter. For the last six months of the year, the economy has grown at an annual rate of 3.1 percent, up substantially from growth of 2.4 percent turned In during the first half of 1985. that "this (Ameritrust) Is one of the best capitalized banks In the country. Their offer Is for cash, most offers are not. "I think there Is compatibility In our managements," he added.

Farrell said the Elston bank will retain Its name and that there will be "no material" changes In the board of directors or personnel. Earlier this month. Banc One Corp. of Columbus, Ohio, announced It had agreed to buy First Crawfordsvllle Financial Corp. stamps used in correspondence with trade and government oin-clals.

The skills they will use, Fortune said, Include soil testing, land reclamation, pest and weed control, plant food needs, advertising, economics, arithmetic, product production, consumer awareness, marketing, current events, and oral and written communications. In current events they will learn about trade Imbalances that exist between the U.S. and Japan. For consumer awareness, the students will learn which variety of popcorn the Japanese prefer and plant that variety. Alter Christmas the students will write to JETRO a Japanese company based In Chicago, to negotiate exporting agreements.

Later they hope to have Japanese students at Indiana University-Purdue University at Indianapolis help them with translation as they prepare STAR STATE REPORT Crawfordsvllle. Ind. Elston parent of Elston Bank and Trust has agreed In principle to be acquired by a Cleveland banking company, Elston chairman William C. Farrcll announced Friday. Farrcll said the Crawfordsvllle bank had agreed to be acquired by Ameritrust with Elston shareholders to be paid In cash.

He said the purchase price was not being disclosed at this time. 'Corny' project introduces students to business world ASSOCIATED PRESS New York Stock prices moved generally higher In a busy session Friday despite some late selling of blue chips. The Dow Jones average of 30 Industrials, up more than 14 points at midday, was off .92 at 1.543.00 by the close. But several other, broad market measures posted solid gains. Volume on the New York Stock Exchange Increased to 170.27 million shares from 130.23 million Thursday.

The NASDAQ, composite Index for the over-the-counter market gained .45 to 323.12. At the American Stock Exchange, Information for popcorn package wrappers and advertising maie-rials, The project started this fall with work In reclaiming an acre or land that had been covered by subsoil because of construction work. Next spring the students may cover the land with sewage sludge to Improve Its organic content. But first the sludge will be tested for metal content. If It Is too high to produce safe food by Japanese standards, commercial fertilizers will be used.

They will learn to test the soil to determine Its fertilization needs. The students already have learned that the soli has been classified as Hrookston-Crosby. a tight cay soil that has a high water table but Is productive If drained. Part of their work In this area Is weekly monitoring of the water table. In marketing their popcorn they will seek the assistance of tliclndlana Department of Com Peter J.

Fortune Is a schoolteacher who believes that children learn best by participating in real-life situations. That's why the entire fifth-grade class at Weston Elementary School In Greenfield has embarked on an ambitious agribusiness project that will Involve many skills, such as learning the Intricacies of exporting an agricultural commodity. The mission. Project ExportMs to grow an acre of popcorn on our school site, package It and export It to Japan." Fortune said. "This activity will allow children to reclaim land and use soli resources while dealing with businessmen, foreign nationals, bankers, Insurance agents, the Indiana Department of Commerce, agronomists, (crop experts) local farmers and conservationists." The project evolved from the school's conservation education program, which Fortune heads..