The Des Moines Register from Des Moines, Iowa on January 26, 1980 · Page 4
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The Des Moines Register from Des Moines, Iowa · Page 4

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Des Moines, Iowa
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Saturday, January 26, 1980
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Page 4
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4A DES MOINES REGISTER $56 million home loan pool formed By DAN PILLER ftMtotar Button Writer Iowa bankers began a new mortgage corporation last week that will put an extra $56 million into the state for home loans. The Iowa Bankers Mortgage Corporation, a subsidiary of the Iowa Bankers Association, plans to sell 356 million in mortgage-backed securities as soon as market conditions permit, corporation president Sam Callahan said Friday The $56 million will be used to originate new home mortgages in Iowa, where mortgage money has been tight for more than a year. The corporation will then resell the mortgages in the secondary market, the sales being used to generate new money for home loans in the state. "It's a way for small banks to participate in the secondary market," said Callahan. "Most can't now because of their lack of size." 126 Iowa Banks The corporation is composed of 126 Iowa banks that have contributed $3 million to its capitalization. The corporation hopes to be affiliated with the Federal National Mortgage Association (Fannie Mae) by next week. Fannie Mae Vice President John Hayes of Chicago, 111., spoke to a meeting of the corporation Friday in Des Moines and said "this Iowa group is somewhat unique in the nation. "Generally, mortgage pools are formed by bank holding companies, such as the Banco Mortgage Co. in Iowa a subsidiary of the Mjfaneapo-lis-based Northwest Bancorporation). This is one of the few attempts by a group of independent banks to go together," Hayes said. Small banks, as well as savings and loan institutions, have suffered a lack of home loan money in the last two years because of drop-offs in individual savings. Secondary Market So they have turned to the secondary market, which buys large packages of written mortgages and takes their yields over the lives of the mortgages. The money paid for the mortgages goes back to the lending institution, enabling It to receive the total principal yield for the mortgage without wailing the full life of the loan. "But such deals can be made only by a large institution, or by a pool such as this group," Hayes said. Fannie Mae is a large buyer of written home mortgages, along with insurance companies and pension funds. Callahan said banks will continue to write the mortgages and do the verification and paperwork needed. But he said the money would come from the corporation's pool rather than the bank's assets. Interest rates for the mortgages will continue to be at prevailing rates, now 13 percent in Iowa. The state's interest ceiling has been preempted until April 1 by recently enacted federal legislation. Ransom demand is gold TOULOUSE, FRANCE (AP) -Two men disguised as deliverymen abducted the wife of a Toulouse heart specialist from her home Friday, then telephoned her husband demanding 30 gold ingots, worth about 2.6 million francs $650,000 - in ransom, police said. Exxon is first industrial firm to post $4 billion in earnings NEW YORK, N.Y. (AP) - A surge in overseas oil-producing, refining and marketing earnings, on top of a sharp increase in world prices, helped make Exxon Corp. the first industrial company to earn more than $4 billion a year. Exxon, the world's largest oil company, on Friday reported fourth-quarter earnings of more than $1.3 billion, up 60 percent over last year's figure, and a net income for 1979 of more than $4.2 billion, a 55 percent gain. Exxon thus became only the second U.S. company to earn $4 billion in one year and the first industrial company to do so. American Telephone & Telegraph Co. earned more than $5 billion in 1978. Earnings "Are Justified" In a statement, Exxon said its earnings were justified because of the large investment needed to generate profits. Among other oil companies reporting higher income for the fourth quarter and for 1979 were Standard Oil Company of Ohio and Sun Oil Inc. Sohio, the nation's 15th-largest oil company, credited increased flow of Alaskan crude at higher prices for its fourth-quarter Increase of 174 percent, to $451 million, and an annual increase of 164 percent, to $1.19 billion. Sun, the lOth-largest, reported fourth-quarter earnings were up by 107 percent at $222.9 million, against $107.6 million a year ago. About one-third of Exxon's 1979 earnings gains came from a $320 million reduction in British taxes on inventories and a $7 million foreign-exchange profit, compared with an Sat, Jan. 26, 1980 ; ft--.-:- ' ': ' 'S". '. 'M'-- mMj-&sv t":-A-s, -J.'n.wr.-. 'vyy ;v V''::- j , ft V ' " 1 ' s n j f ' ' ' " H it " I ' ; , ' '''' ' ' v,. , 1 . S No snow, business is picking up Des Moines city employee James Wessel picks np trash Friday along the Des Moines River riverbank a Job he is unaccustomed to doing during winter months. Because of the mild winter and low snowfall, it is the first time In 17 years Wessel has picked up litter rather than clearing city streets. Hijacker insisted that newsman be taken to Cuba Continued from Page One Greensboro, N.C., after leaving Atlanta. State Department spokesman David Passage said in Washington that the Cubans had refused to provide the hijacker with a plane to Tehran. Delta said the hijacked jet was not equipped to cross the ocean. While the plane was in Havana, the hijacker demanded that Gil Noble, producer and host of the "Like It Is" program on WABC-TV in New York, be brought to Havana, a spokesman for WABC said. Noble, who was vacationing in Jamaica, made arrangements to fly to Cuba, but it was not Immediately known if he reached Havana. Delta spokesman Gordon Barring-ton said in Atlanta that the plane carried' 51 adult passengers, two infants and a crew of 12. Luis Fernandez, an air traffic control supervisor in Havana, said Cuban immigration officers and guards had surrounded the plane. He said the passengers were served a snack and lunch. Had to Strip Wayne Smith, head of the U.S. Interest Section in Havana, said the hijacker allowed some Cubans to board the plane to help tend to pas $88 million loss in 1978. But an "improvement in margins in most markets" in Europe and elsewhere as world oil prices nearly doubled pushed Exxon's foreign refining and marketing profits up by 110 percent to $1.2 billion, excluding the effects of the tax change. Exxon also reported gains from oil production in the North Sea and Malaysia. In the United States, oil and gas earnings gained by 2.9 percent, to $1.5 billion, despite increased earnings from Alaskan oil, as U.S. refining and marketing profits slipped 62 percent to $113 million. Exxon Chairman Clifton C. Garvin Jr. said the drop reflected the impact of two retroactive Saudi Arabian crude oil price Increases last year and other cost increases that "outpaced product selling prices." While U.S. gasoline prices rose by about 60 percent last year to just over $1 a gallon, Garvin said Exxon's per-gallon profit averaged 4.3 cents. "If those earnings were to disappear entirely, the effect on product prices is not going to be all that great," Garvin said. Garvin also said the company's projected 1980 outlay of $7.5 billion on energy development and other major projects is "only a fraction of what we think we'll have to spend" over the next few years. Garvin also said Exxon's U.S. crude oil production dropped to 818,000 barrels a day from 856,000 barrels a day in 1978, reflecting a general long-term decline in U.S. output. Worldwide, Exxon production was nearly unchanged at 2.5 million barrels daily. A barrel is equivalent to 42 gallons. Exxon said its fourth-quarter REGISTER PHOTO BY BOB NANDELL 8V t wi? , 1 );)'. s.1 ' ' , - i ' , , ' m ' I - ' j " S4 f x- ' S , ' , , 1 1 sengers, but he required the Cubans to strip to their underwear. The flight began Thursday in Los Angeles and stopped in Dallas before arriving in Atlanta, taking off from there for Kennedy International Airport in New York early Friday morning. 5-year sentence for terrorism TIM Ktgltlw't few Ntwt Scrvfc CLINTON, IA. - Paul Bertrand, 21, of Clinton Friday was sentenced to serve up to five years at the Men's Reformatory at Anamosa after he pleaded guilty to a charge of terrorism. Bertrand pleaded guilty to the charge on Jan. 9. He was charged in connection with a shooting at the home of Mike Krajnovich, business representative of the American Federation of Grain Millers Local 6 on Aug. 31. In other actions in District Court here, Judge J. Hobart Darbyshire sentenced David Haack, 32, of Camanche to a year in the county jail in connection with a Labor Day disturbance at the strike torn Clinton Corn Processing Co. plant. Judge Darbyshire suspended 11 months of the sentence and ordered Haack to make $1,000 restitution to the company. , earnings totaled $1,365 billion, or $3.10 a share, compared with $853 million, or $1.92 a share, in the same period of 1978. Revenues rose to $25.3 billion from $18.2 billion. For 1979, Exxon's profits came to $4,295 billion, or $9.74 a share, up from $2,763 billion, or $6.20 a share, in 1978. Revenues rose 30 percent to $84.35 billion from $64.89 billion. Conferees at impasse on oil windfall tax WASHINGTON, D.C. (AP) -Senate and House conferees writing a compromise "windfall" tax on the oil industry ran out of issues they could agree on Friday after deciding that energy aid for the poor should be handled in a separate bill. The conference adjourned until Wednesday at the earliest to give aides time to draw up more proposals for breaking the impasse. Thus, it appeared the tax bill that congressional leaders had promised President Carter would be enacted by last Oct 1 may miss that deadline by five months or more. Regardless of when the bill becomes law, however, the $227.3 billion tax is scheduled to take effect retroactively on Jan. 1. "We're obviously in an Impasse," said Representative Al Ullman (Dem., Ore.), chairman of the House conferees. "We've solved the big issues in this conference ... but sometimes it's very difficult to agree on the finishing issues." Senator Russell Long (Dem., La.), chairman of the conference, conceded there are problems "when you're up to your ears in alligators" but said he's not discouraged. WEBB SEEN NEAR VICTIM'S GARAGE, WITNESS SAYS By BUD APPLEBY Of TtW RMbMft wm lm taw SIOUX CITY, IA. A Sioux City man who worked at the Bellevue Apartments here told a Woodbury County District Court jury Friday that be saw two men in the basement garage of the building about nine months before Mildred White was allegedly robbed there. - The witness, Harold Fay, 69, said he later was shown some police photographs and was able to identify one of the men he had seen as Terrence Patrick Webb. Webb, 23, is on trial in connection with the death of White, who was allegedly robbed in the garage of the apartment building where she lived last Feb. 12. White, 80, died in a Sioux City hospital two weeks after the incident. Prosecutors - contend that White died of a cerebral hemorrhage that was caused by injuries she received in the robbery. Defense lawyers claim the hemorrhage can be attributed to White's high blood pressure. Webb is charged with murder, robbery, theft and assault in connection with the Incident. Authorities have said that four rings and a brooch were taken from White by a masked gunman, although a grandson of White testified that a diamond-and-pearl pin, a gold wedding band and five diamond rings are missing from her jewelry collection. Fay, who said he took care of the garage at the apartment building, testified that he saw two men in that garage without authorization last May. He said he later saw the men near White's mailbox near the main entry to the building, and "I told them they would have to get out. Under cross-examination by defense lawyer Dennis Mahr, Fry became somewhat confused and Indicated he could not remember all the details of his interviews with police officers. Prosecutors are expected to wrap up their case Monday morning. Webb's lawyers probably will start calling witnesses to testify in his behalf Monday afternoon. RENT PAY PLAN DRAWS A FINE By ELIZABETH BALLANTLNE RMitar staff Wrltar A Des Moines real estate agent was fined $300 and placed on six months probation in U.S. District Court Friday for charging tenants a premium for living in subsidized housing. Gregory Nepstad, 29, owner of Forest Realty, 1370 Twenty-third St., pleaded guilty before Magistrate Ronald Longstaff to two charges of attempting to receive unauthorized rent payments. U.S. District Attorney Roxanne Conlin said Nepstad was charged with attempting at two places to collect $20 per month more in rent than is permitted under federal regulations for subsidized housing. The Federal Rent Assistance Program subsidizes rent payments for low-income tenants in privately owned rental units. Conlin said Nepstad had attempted to collect premiums from tenants in buildings at 2519 and 2525 Clarkson St. whose monthly rent is $170. As part of a plea-bargaining agreement, Nepstad agreed to cooperate with her in attempts to eliminate similar fraud in other Des Moines housing projects, Conlin said. "This has been a real unfortunate incident, a nightmare for me," said Nepstad in an interview Friday. "We did something I thought was a widespread practice without any idea it was against the law." Nepstad said the situation arises because U.S. Housing and Urban Development guidelines set rent subsidies too low for the Des Moines housing market. "I believe it's going on all over town. We wouldn't have done it if we didn't think it was a widespread practice," be said. One year ago, Donald G. Bettls of Albia was fined $500 and placed on one year's probation by Longstaff on similar charges. 3 men nabbed in vandalism case RIVERSIDE, IA. Three Riverside men were arrested Friday in connection with vandalism at the home of a Washington County sheriffs deputy. Arrested were Terry L. Becker, 20, Gerald D. Weimer, 18, and Scott M. Kaalberg, 18. Becker was charged with interference with official acts, disorderly conduct and third degree mischief. He was being held Friday at the county jail in Washington in lieu of $750 bond. Weimer and Kaalberg were charged with third degree criminal mischief and disorderly conduct and released on $500 bond each. The three were arrested after the home of Deputy Carroll Kenney was hit with eggs and windows broken out with rocks. Hospitals fit thi bujs out ATLANTA, GA. (AP) - The rate of infections in hospitals declined between 1975 and 1978, the national Center for Disease Control reported here on Friday. Parents' option: statertified teacher or jail By JONATHAN ROOS LNDIANOLA, IA. - A rural Milo couple convicted of violating Iowa's compulsory education law by teaching their children at home was ordered by a Warren County magistrate Friday to take steps to comply with the law or risk going to jail. Magistrate John Crouch sentenced Norman Moornead, 40, and his wife Linda, 34, to 30 days in the county jail. But he suspended the jail term and placed them on probation for a year on the condition they see that their children are taught by a state- certified teacher. On the advice of their attorney, Craig Hastings of Ames, the Moorheads refused to say afterward whether they would agree to the condition or go to jaiL It could be some time before the sentence is carried - out. The Moorheads are appealing their conviction in district court. First Amendment " The Moorheads claim the state law under which they were prosecuted violates their religious exercise rights under the First Amendment. They also contend the statute violates their right under the Ninth Amendment to determine how their children should be educated. A Warren County magistrate jury found the couple guilty Jan. 17 of breaking the law by not sending their children to public school or having them taught by a state-certified teacher. Rather than send their four children to the Southeast Warren schools when classes began last Aug. 27, the Moorheads enrolled them In a correspondence school operated by the fundamentalist Church of Christian Liberty of Prospect Heights, 111. School officials charged that keeping the two youngest children Kirk, 10, and Janese, 8 at borne violated the compulsory education law, which requires that parents of children through eighth grade send them to public school unless the children receive equivalent instruction from a certified teacher elsewhere. Private Schooling Crouch said the state Department of Public Instruction will help the Moorheads meet the requirements for private schooling. The Moorheads contend that the requirements are vague. Norman Moorhead said following the court bearing that he objects to the teaching of what he termed humanism "atheistic, anti-God" in the public schools. "The state is telling me that I have to listen to their denomination humanism," he said. A charge pending against the Moorheads alleges they failed to provide the school district with information describing the instruction their children receive at home. Soviet ship leaves Mobile without grain MOBILE, ALA. (AP) - A Soviet freighter left this Alabama port Thursday without the 13,000 tons of U.S. grain it had been scheduled to pick up, officials said. Agents for the Kapitan Samoylenko said loading orders for the vessel were canceled in connection with a U.S. embargo on grain sales to the Soviet Union. D"D OSSS Valentine's Day is NOT just "another day" in the eyes of sweethearts. And you can make this Valentine's Day extra special for your sweetheart with a classified Cupid Ad. Whatever the message, it will be meaningful because you cared enough to put your message in print to more than 706,000 people. Your Valentine's message will appear in both the Register and Tribune on Thursday, February 14. Cupid Ads cost only 75c per line. Minimum is three lines or $2.25. Plus you can add: tpr $10.50 To place your Cupid Ad, call 284-8141 or Iowa toll free 800-362-1836. If you wish, use the handy form below designating which piece of art you want and the message you wish to appear. Five words make approximately 1 line. You will be billed accordingly. Deadline is February 13. Send to: CUPID Classified Department Des Moines Register and Tribune P.O. Box 957 Des Moines, Iowa 50304 NAME ADDRESS. CITYSTATE. COPYl ANTI-DRAFT GROUPS MUSTER IOWA SUPPORT By JIM HEALEY KMtKW SM WDMr Active opposition in Iowa to renewed draft registration turned on an Iowa City-Des Moines axis Friday. The remainder of the state was reported quiet, although plans were laid for anti-draft meetings over the weekend and during the next week at various locations. In Iowa City, 100 to 200 persons turned out to hear a variety of speakers score President Carter's HArivlnn in revive the Hnrmant Selective Service system, according to planners and participants. In Des Moines, a much smaller crowd, estimated at about three dozen persons, listened to song and prayer reflecting anti-war sentiments in front of the Federal Building over the noon hour. At Iowa State University in Ames, a protest rally that had been advertised on a placard on campus for noon Friday failed to materialize, according to a staff member of the Iowa State Daily student newspaper who was to report on the protest. She said no one showed up at the central campus location where the protest was to be held. At the Iowa City rally, held in the lobby of the Iowa Memorial Union, "a couple of people made comments in favor of the draft," but were largely ignored by the anti-draft crowd, according to Dave Manuel, 28, an Tiua Pitv rMirfant vhn nttemf fiA Bill Douglas, 28, a full-time worker for the Iowa Socialist Party, spoke at the Iowa City rally and warned participants that, if the draft were to begin anew, it would not induct persons fairly because draft boards would not be representative of their communities. Keith Gormezano, 24, a member of the University of Iowa student senate and a member of the Army's Reserve Officer Training Corps, said he was not allowed to sneak at the rally. He said he would have told the crowd, "I support nationwide service in which everyone and I mean everyone: men and women, Gov. Ray's , daughter, me, my friends and family, whether you're in a wheelchair or not noes a year or two oi service. He . called the sentiments expressed at the rally "one-sided," but said he was glad to see some protest. "It's important that Carter not get whatever he wants just because he asks for it." In Des Moines, protest organizers are lavine the eroundwork for a draft counseling service to advise potential Inductees of their alternatives and the consequences of each, according to Daniel Clark of the Task Force Against iiiivii. Clark said his ctoud would be tele phoning the uncommitted delegates and the Carter delegates selected at Tuesday's precinct caucuses to ask whether they favor the arait ana whether, had they known about Carter's imminent decision on draft reeistration. they would have supported him at the caucuses. Most Iowa protest activity, however, awaits the outcome of a . . w . It. iLi. t-..J .t meeting in wwa wty uus weenenu m the Iowa Mobilization for Survival, a consortium of activist groups. In Des Moines, a noon rally is set for Wednesday at Drake University. That night, protesters are to gather at the Friends Meeting House. C Small Hearts $2.25 ART: A B C .PHONE. ZIP 4 Cupid $5.25

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