Northwest Arkansas Times from Fayetteville, Arkansas • Page 7

Bank Economists Believe Prime Lending Rate's Influence Overblown Ity UNDA Business Writer NEW yOHK (AP) The pdnio lending rale, now lip, Is generally overblown ns nn economic Imllculor or Influence, bunk economists any The pi'imo rate is Iho Interest hnnks chnrKc on lonns lo their heal corporate customers and II is always lower limn the rate longer and smaller consumer lonns, The prime rale, they sny, really only confirms the trend of other rates Involving much more money. And the current 1 Increase, they add, isn't likely to affect the economy or con" sumcrs' packetbooks. "The drama tied to clinngcs Hie prime rnlc Ims been really overplayed," snys t.elf II. Olson, senior vice president and economist nt Now York's Nnllonal Clly Bank, whose own prime rale is now one of Hie highest in the country. "The prime rule Jy itself is Just not thul significant." CLOSELY WATCHED The prime rate grew to be closely walched in years past because It was changed fnlrly Infrequently and Ihe changes were direct decisions of hankers who presumably had leslcd the economic winds.

But changes liavc come more frequent In recent years and some banks even adopted "floating" rates which can ad- Government Hopes To Prove Jones Filed False Returns LITTLE ROCK (AP) The special agent'james A. Brown. Just themselves automatically ovary week through formulns pegged lo other interest rates, First National Clly wns llic first lo adopt flouting rule Insl year mid its rale has signaled every i change In the rnlc since then. It led banks In boosting the rale lo 5'A per cent last month and while banks were still catching up, moved on to 514 per cenl. Pittsburgh's Mellon National Dank Trust which recently adopted a floating rate and moved with Citibank to per ccnl, boosted its rate to 5Vi per cent starting this week.

Bankers say other bigger banks will probably match that level before long. The rate had bottomed out at many banks earlier this year at per cent afler generally declining from a record peak of per cent in mid-1969. is normal for the prime rale to rise in a healthy economy when credit demand from the and Three Underworld Stuffgarf Fotality Figures Jailed For Conspiracy been sentenced to each In prison on conspiring to con ANGELES CAP) Three reputed underworld figures huvc four yenrs charges of ceal ownership interests In the Frontier Hotel In Las Vegas. Four other dcfendcnls--a corporation and Ihrco men, Including a former municipal Judge-received leaser sentences. Anthony Zcrilll, 44, and Michael Pollzzi, bolh of Dclroll, were sentenced Monday by U.S.

Dlsl. Judge David Williams to four years with $411,000 fines. Anthony Gindano, 58, got four years and $10,000. Jack Shapiro, 58, of Delroit, was sentenced lo Ihrce years and fined $30,000. Delroil lawyer Peter Be- STUTTGAUT, Ark.

(AP) -Authorities said lliul John C. McFcrrln, of DcWitt was killed Monday when the trailer- truck lie was driving collided with a Cotton Bell freight train at a crossing hero. Police said the train engine cut the truck in haif. Barirono Dies WALNUT CHEEK, Calif. (AP) Baritone Robert Wccdc, 69, who sang with both the Melropollan and San Francisco opera companies during a 40-year career, died Sunday.

Wecdo mastered some 30 operatic roles and also starred in several hit musical comedies. Northwest Arkansas TIMES, July 11, FAYZTTEVILLE, ARKANSAS Groin Sales BATON ROUGE, La. AP) Secretary of Agriculture Earl Butz predicts that American grain sales to the Soviet Union may lotal $1 billion before the end of the three-year, $750 million export recently announced dent Nixon agreement by Presl-. Bulz labeled'hls Monday forecast as "only but said Soviet officials have no effort to conceal their for teed grains. lanca, 38, drew a five-year sentence suspended and was government said Monday lhat it would prove lhal slate Sen.

Guy H. Jones of Conway received 40 per cent more income from his law practice in 1865 and 1966 than reported on his tax returns. The statement was made by Asst. U. S.

Ally. James G. Mixon in U. District Court here as Jones went on trial Monday on charges of evading $5,209.25 in income taxes and filing false tax returns for the years 1965 and 1966. A jury of six men and six women was seated for the trial.

Leon B. Catlett of Little Rock, Jones' attorney, said Jones prepared his tax returns to the best of his ability and believed they were correct. "He did not wilfully violate' the tax laws of the United: States," Catlett said. 60 WITNESSES Mixon said the government would call 60 witnesses in the trial, Callett did not know how many witnesses he would use. Mixon and Asst.

U. S. Robert F. Fussell called nine witnesses Monday mostly to introduce records of Jones' bank accounts and to testify about legal fees. Mlxou told the jury the government's oass dealt entirely with Jones' law practice.

He said Jones collected many fses in cash and spent the money without depositing ft in a bank. Mixon said 30 to 40 witnesses would testify that they paid legal fees to Jones, and agents of the Internal Revenue service would testify that part or all of these fees were omitted from Jones' tax returns. The govern- ment'i key witness will ba IRS denied the motion. Catlett told the jury that "Guy Jones is not a cheat and he's not a crook. He's an honorable man and a good citizen." Catletl said Jones kept records of his legal fees in a receipt book and a letter box file, and recorded his expenses in the files of each case he handled, Catlett said.

He said Jones prepared his returns from these records and thought they were correct. "Guy Jones is not guilty of the charges in the indictment," Catlett said. Jones was indicted in February. Two of the four counts in the indictment allege tax evasion and the other two allege filing of fasle tax returns. FIRST COUNT Count No.

1 charges that Jones filed a joint income tax return for himself and his wife for 1965 that declared taxable income of $11,239.48 with a tax due of $2,092,69, when the taxable Income actually was $22,565.60 with tax due of $4,041.54. Count No. 3 charges that in preparing his and his wife's joint return for 1966, Jones listed a taxable income of $1,569. with a tax due of $225.47 when the actual taxable income was $20,072.20 with a tax due of $3,484.87. Counts Nov.

2 and 4 charge that Jones knowingly understated the gross income from his law practice on the 1965 and 1966 tax returns. Jones had filed a motion to dismiss these two counts on the ground that they constituted the same alleged offenses as in counts No. 1 and 3. Judge J. Smilh Henley business, consumers and government is strong.

that's what we're seeing now," says Olsen. "But what is really more significant is the rise in market or because a larger amount of credit In the open term rates Pinto Wagon: $2265 We put a lot into H. You can put a lot in H. rates short much is affected Ihere." KATE TO BUSINESS "The prime rale is of course a key rate to business borrowers, who have lo consider the cost of borrowing money into their financial planning." says an ecoomist at another major New York bank. "But it is really only a reflection of what has happened in the economy.

It doesn't lead other rates up or down, bul merely confirms a rate trend." The short term rates involve such instruments as commercial paper, Treasury bills and federal funds. Commercial paper is an IOU issued by a corporate borrower and sold to another corporation, foundation or banks. Treasury bills are securities issued by the Treasury and federal funds involve borrowing of funds among banks. The prime rate changes lo remain competitive with these other money market charges, to keep potential customers placed on probation, with a $20,000 fine. He is lo serve 179 days in jail.

Former municipal judge Arthur Rooks of Detroit also got a suspended five-year sentence and probation, with 00 days in jail and a $10,000 fine. The Emprise of Buffalo, N.Y., which operates concessions in sporls facilities around the country, was fined $10,000 A jury convicted Ihe defend- anls April 26. The government had contended that Shapiro, Bellanca and "front men" ership of the hotel for the other defendants, who were not eligible for a Nevada gabling license because of their out-of- stale gambling interests. What you con put in: over 60 cubic feet. Put the rear soot down and there's 60.6 cubic feel of carrying spaco.

For comparison: VW Squareback and Vega Kqmmbad both give you a bit over 50 cubic feel Four Captured U.S. Captains Deliver Messages From Hanoi dealing with banks vestments and loans. for in Rooks acted as lo obtain own- NEW YORK (AP) Four recently captured U.S. Air Fores captains, previously listed as missing, have delivered filmed messages to their families that they are being treated well by the North Vietnamese and are in good health. Also seen in the film were a fifth captain, seriously wounded, who was silent as he was shown in his hospital bed, and a sixth who gave only the minimal information outlined the rules governing war.

by The film was broadcast Monday on the "CBS Evening News with Walter Cronkite," which obtained it from the Denpa News Agency in Tokyo. "Dearest Sue," said Capt. Charles Allen Jackson of Little- Ion, "Ihe Vietnamese people are very kind in seeing lo my injuries and are treating me very well. The bones in my arm should heal and I am in good health. I hope you will encourage ofhers to speak up against this unjust war.

1 Capt. David Ryan Grant of Chattanooga, said, "During my capture I was wounded in the right foot. The treatment has been satisfactory. I feel fine except for the fool. I lovo yon and the boys very much." "Dear Linda," said Capt.

David Dingee of Homestead, "I have been well treated. My health is good. Our shelter and clothes are adequate. Don't worry about me. I love you and the boys very much.

I hope to get home to see you soon." Capl. William David Beekman of Toledo, Ohio, said, "I have had enough food to eat. Please don't worry about me and just take care of yourself. Say hello to Tina and give her my everlasting love. Remember, I love you all and hope to return some day.

Take care. All my love, Bill." A CBS spokesman said the interviews were conducted in Hanoi on June 29. The film narrator said the officers were captured between April and June. Capt. John Cerak of New Jersey gave only his name, rank, serial number and date of birth.

He said he was shot down June 27. The wounded man filmed at St. Paul's Hospital in Hanoi was identified as Capt. Richard Logan Francis of California. The home towns of Francis and Cerak were unavailable.

First Round Of Chess Play Begins Today In Reykjavik playing table was the grcen-and-whlte REYKJAVIK. Iceland (AP) American challenger Bobby Fischer and Russian defender Boris Spassky finally begin play this afternoon in the richest and most publicized world chess championship of all lime unless some new snag develops. Last i adjualmcnls were being made on Ihc singe ot Reykjavik's sports hall. The Ihortcncd, marblo chessboard constniclcd for the fourth time, and the overhead lighting cimnged. SMALL DETAILS But thcso were snrmll ilotnlls compared to the liingled ncgo- Hatlons and war of nerves that procedcd Iho encounter, origi- fcrdly net to utart July 2, Spassky, 25, drew Ihc while ehonsmen and wllh them the first move.

Fisher, 2B, of Brooklyn, N.Y,, lind tlie blnck pieces. Oino game will hr; flfiyed Tuesday, Thurfiilny and Sunday, starting nt 6 p.m. I EOT, National prestige win llnha for tho defending (ilnn. Tho fiovlcl Union mibsl- dlimi choiii nnd has dominated Iho g'nmn for docniJcn, Fischer tint foreigner lo rnnko It to flnnln since JfMB. For it .1 question of money and personal prcs- lige, of proving his claim lhat he is the hest in Ihe world.

London oddsmakcrs rated the lanky American the favorite lo win Ihe 2'1-game, two-monlh competition and capture more than $180.000 of the estimated $300,000 at slake. The i gets five-eighths of Ihe $125,000 put up by Ihe Icelandic Chess Federation, or $78,125, plus another $76,000 of the $220,000 provided by London investment hanker James Slater to persuade Fischer to end Pollution Suit Filed Against 10 Oil Firms LITTLE ROCK (AP) A suit has Been filed in Chancery Court in Union County seeking to enjoin 10 oil companies from polluting Mill Creek and the lower Ouachita River, state pollution control officials said Monday. Defendants in the state Department of Pollution Control and Ecology suit are Ascot Oils, Alice Sidney Oil Co. G. T.

Abbott, Emco Oil Co. Hunter Producing Inc. Key Oil Kin-Ark Mrs. Perry Livingston doing business as Livingston Oil Sam Richardson Sam Richardson III and J. Eric Richardson, doing business as SEDCO, and R.

E. Williams. The suit said oil and sail water discharges from 46 wells operated by Ihe defendants were reaching Mill Creek and the Ouachita. The complaint said Ihe wells were in the Champagnolle and Cypress Creek fields of Union County. The state agency seeks the injunction lo stop the defendants from polluting any waters of the stale or from operating oil wells in any manner that would cause pollution.

The suit seeks the injunction until the defendants install adequate disposal systems and have posted signs at the site of eacii well containing information required by state law. The request for the injunction results from charges filed by Ihe state department last March. The charges were filed afler an 18-mile oil slick developed on the Ouachita near Champagnolle Field. The department subsequently began a survey in the area to determine the extent of the problems in Ihe Champagnolle and Cypress Creek fields. Wallace Parly Has Enough Signatures LITTLE ROCK (AP) Apparently the American party in Arkansas has enough signatures to enter Gov.

George C. Wallace's, name on Ihe Arkansas general election ballot as a'third-party candidate president. Secretary of State Kelly Bryant said, however, that he would not announce a decision until after his office had made spot checks of the parly petitions in five counties. Bryant said Monday that his office completed a survey of the petitions and it showed that the American party had about 47,000 bona fide signatures party needed 42,643 valid signature's. Bryant said his staff would make spot checks of the petitions in five counties this week to see if the percentage of bona fide signatures in those counties correspond with the percentage in Ihe over-all survey completed Monday.

If it does, Bryant said he would notify party officials that they have enough signatures. basic model. It's the ided choice fofpeopte Who want an economy oar that carries mors --of a wagon that costs less. The white sidewoU hVes (shown here) ore $28.00 Front Disc Brakes. Stondofd.

And there's precise rack-ond-pinion steering, which is normally found only in some of the more expensive sporls cars. Some Details. 1. The lill gale swings up and out ol the way. 2.

The rear passenger windows Hip open. 3. The spare tire doesn't lake up any load room because it has its own well under the Hoar. And benealh it all, Ihe rear suspension is specially designed for load carrying. Slicker Price.

Excludes dealer proporadofi charges, if any, deslinaliofl chargos, lilla and taxev The Squire Option. Thai distinctive wagon look, plus wheel covers, special trim, and more. No other economy wagon offers anything like it. Price with the Squire Option: The luggage rock is $45.53 extra. The while sidswall lires $28.00.

2000c cOverheadCam Engine, it's rugged, economical, peppy--qndstaodard equipment. A4-speed Itoor mounted synchromesh transmission Is also standard. Better idea for buckle up! FORD PINTO FORD DIVISION See Your Ford Dealer. LEWIS FORD SALES, Inc. 3373 N.

College Avenue Fayetteville, Arkansas Coll 521 74OO and you're OA. his holdout last izcrs calculate week. Orgnn- Fischcr and Spassky will divide nt least nn- other $55,000 from Ihc sale of television and i rights. SECLUDED Ilolh plnycrs slnycd in seclusion. Spnssky wns reporlcd nervous nnd upset, Fischer, who favors sleeping In Ilia dnyllme, wan last icon at I a.m., Mominy, when ho vis- iled Ihn sporls hall, Ho So- mniulRd Ihnl the mnhognny plnylng Inhlc he shortened nnd Hint III" overhead lighls be clinngcd.

Tho cltnlleilKor also (freed wllh thf! Russian's complnlnU Mint the flfiunres on the chcsnbonrd worn too largo In relation lo Ihn nt the pieces. Trial Postponed UPPER MARLBORO, Md. (AP) The state trial of Ar- Ihur Brcmcr on charges stemming from Itic nllemplcrl assassination nf Alabnma Gov. George C. Wallace has been postponed until July 31.

The i a hnd been scheduled lo begin Wednesday. Judge Ralph Powers of Prince Georges Counly Circnil Conrl grnnled a defense motion Monday for a continuance. The defense argued it needed morn lime lo prcpnre ils case. RUPTURE EASER texm-fiHlnc wutubte irnV Comfort (Ww WffWfJl (of lyucfcuTwJU) fof. Hi frof Soft, Hit sroli ril or Mlw twvtt, comfort, Tot thlktrin.

We're making a very exciting mailing on the Grand Opening of bur new bank. If you're not one of our present customers, a call to Donna Watson at 521-7400 will put you on our mailing list. Call today. We don't want you to miss out on our mail out. imclLfiOYBfiHK Member F.D.J.C,.