Logansport Pharos-Tribune from Logansport, Indiana on March 24, 1988 · Page 12
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Logansport Pharos-Tribune from Logansport, Indiana · Page 12

Logansport, Indiana
Issue Date:
Thursday, March 24, 1988
Page 12
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Page 12 Pharos-Tribune, Logansport, Indiana, Thursday, March 24, 1988 Business Narrow Expansion Of Bank Powers Proposed WASHINGTON (AP) - The top lobbying group for commercial banks is condemning a proposal by the chairman of the House Banking Committee that would narrowly expand bank securities powers. Rep. Fernand G. St Germain, D-R.I., and the top Republican on his committee, Rep. Chalmers Wylie of Ohio, on Wednesday proposed legislation that would repeal parts of the Glass- Steagall Act, which separated commercial from investment banking in 1933. But the proposal by St Germain and Wylie would restrict bank expansion into insurance and real estate and includes an array of pro-consumer provisions. Hours after the bill was released, the American Bankers Association issued a statement saying the "regressive ... and anti-competitive" proposal would be "unequivocably opposed by the banking industry." And a member of the banking committee, Rep. Stephen L. Neal, D-N.'C., said he would offer substitute legislation mirroring a broader bill approved March 2 by the Senate Banking Committee. However, the proposal picked up praise from the National 'The Dress Of A Salesman' Age discrimination suit settled out of court TAMPA, Fla. (AP) — Wearing a favorite pink sport jacket, a 62-year-old used-car salesman fired over what his boss said were his loud and ugly clothes signed an out-of-court agreement to end an age discrimination suit. "I believe I have proved my point," Lee Grant said Wednesday after ending the lawsuit known in courthouse circles as ' 'The Dress of a Salesman.'' Terms of the settlement, reached the day the trial was scheduled to start, cannot be disclosed by either party under the agreement, said Nancy Donnellan, who -represented Grant in his lawsuit against Darby Buick of Sarasota. But she said, "We got a good settlement.'' Darby's attorney, William Sizemore, didn't immediately return telephone calls to his office Wednesday by The Associated Press. Grant charged he was forced out of his job at Darby Buick because of his age even though he was the top salesman with 30 years experience. Grant said his attire led to his firing in May 1985, I 1 /-; years after C. Conrad Darby Jr. took over management of the dealership from his father, Conrad Sr. The younger Darby started a "new image" campaign and required that sport coats be worn for a more professional look. The 6-foot-8 Grant bought jackets he described as a pale pink and a rainbow plaid. The latter, he said, has every color in it and goes well with his gray slacks or green or red or blue. Sizemore, however, contended in court documents that Grant was stubbornly resisting the new image campaign. "One jacket was multi-colored ... and the other was a loud fuchsia, "he said. Sizemore said Grant had other irritating habits, such as catnapping on the job. Grant said he only took a few winks, a habit he acquired when the elder Darby was in control of the dealership. "I wanted those sport coats vindicated," Ms. Donnellan said. "They aren't really that bad." Northwest, Attendants Reach Tentative Pact EAGAN, Minn. (AP) — Northwest Airlines flight attendants are likely to ratify a tentative contract that forestalled a walkout by 6,500 workers, a union official said, "We're optimistic the agreement will be ratified or we wouldn't be submitting it to the membership,'' Marvin Griswold, secretary-treasurer of the Teamsters' Los Angeles-based airline division Local 2707, said Tuesday after the carrier and the union announced the tentative pact. Flight attendants had continued working through a Feb. 26 strike deadline, but set a March 29 deadline that threatened a walkout during the airline's busy Easter season. The tentative pact reached Tuesday first must be approved by the rank and file flight attendants negotiating committee, which meets today or Thursday. Then, it must then be approved by the workers, which could take about 30 days. Major details of the proposed contract were not released. Both sides acknowledged that the March 29 strike deadline provided the impetus to reach an agreement. "We wanted to see an agreement reached before the 29th ... The 29th is a sincere and serious deadline," Griswold told a news conference. "It gave us a target," said Terry Erskine, Northwest's vice president of law and labor relations. "It gave us a focus. Association of Realtors, and the Independent Insurance Agents of America says it can back provisions. Rep. Charles E. Schumer, D-N.Y., a strong proponent of the Glass-Steagall Act, passed in reaction to the 1929 stock market crash, predicted the St Germain-Wylie legislation "will win a bipartisan majority." "The chairman's bill hits the heart of the House consensus: Congress should grant banks some new powers, but it should do so carefully," he said. The bill would allow nationally-chartered banks to underwrite and deal in commer- cial paper and municipal revenue bonds. About 4,600 of the nation's 13,650 commercial banks are federally chartered. Bank holding companies could underwrite and deal in securities through two types of affiliates: a limited subsidiary for commercial paper and municipal revenue bonds and a full-power subsidiary that would add securities backed by assets such as home, auto and consumer loans to the list. "Frankly, in terms of increased competition and increased benefits to consumers from that competition, I would say no bill is better than what he is recommending," Neal said. The Senate bill, which is supported by Neal and by the banking group, goes further. It grants bank holding companies power to sell corporate bonds and mutual funds and provides for a separate congressional vote by 1991 on whether banks can underwrite corporate stock. Like the Senate bill, sponsored by William Proxmire, D-Wis., and Jake Garn, R-Utah, the St Germain bill bars bank holding companies from selling insurance outside the state in which they are headquartered and permits it only where authorized by state law. The bill would prevent federal regulators from expanding the real estate powers of national banks and bank holding companies. St Germain also would require the Federal Reserve Board to rate banks on their compliance with laws protecting consumers and barring lending discrimination against poor neighborhoods. Only banks with good or excellent ratings would be permitted new powers, although banks with an average rating could get more powers if they make a specific commitment to make improvements. Survey: Indiana Homes More Affordable INDIANAPOLIS (AP) - Housing in Indiana was more affordable during the fourth quarter of 1987 because of lower interest rates, according to a survey. Figures released Wednesday by the Indiana Association of Realtors and Indiana University Center for Real Estate Studies show the housing affordability index in Indiana rose 100 points to 177 during the fourth quarter. Meanwhile, home prices grew slowly during the year, said Jack White, president of the realtors group. "The drop in interest rates following the stock market crash last October made mortgages a great deal more affordable for Indiana residents," White said. "However, the stock market problems didn't seem to weaken housing prices, adjusting for seasonal variation. The result is a strong and steadily growing housing market." The housing affordability index as calculated by IU researchers indicates how well the median- income family can afford the median-priced home. At an index of 177, a family with the median income of $30,151 can afford to purchase a home costing $95,221, or 77 percent more than the median-priced home. During the same period, the national index increased more than four points to 116.36. Median home prices in the state rose about 1.7 percent during 1987, from $53,203 in January to $54,027 in December. Data for the year were collected on sales of more than 39,000 existing homes totaling more than $2.4 billion. The 1.7 percent growth rate in home prices is a positive indication of the stable but steadily growing Indiana economy, said Jeffrey D. Fisher, director of the IU center. "If home prices go up too fast, then some people are pushed out of the market." he said. National median home prices last year increased about 3 percent to $84,400. The housing affordability index for 19 regions in the state: Marion, 248; Michigan City- LaPorte, 245; Kokomo 223; Anderson, 221; Terre Haute, Vincennes and region, 212; Muncie, 208; Gary-Hammond-Valparaiso, 207; South Bend-Mishawaka, 200; Jasper, 195; southeast Indiana, 188; Fort Wayne and region, 185; Lafayette, 176; Greencastle, 171; southern Indiana, 170; Evansville, 167; Columbus, 161; Elkhart-Goshen, 159; Indianapolis and region, 151; and Bloomington, 150. Worker Notification Causes Filibuster WASHINGTON (AP) - Legislation to warn workers about carcinogens and other job hazards has triggered a parliamentary fight that even Senate Majority Leader Robert C. Byrd admits has been "unfair" to its Republican opponents. Byrd, D-W.Va., said he would vote today against his own motion to break off a GOP-led filibuster after Democratic proponents attempting to salvage the measure substituted a "weakened" version. After Byrd's announcement late Wednesday, the bill's author, Sen. Howard Metzen- baum, D-Ohio, said he would urge everyone to allow the filibuster to continue, which would put off until next week any attempt to win final passage. Sen. Edward M. Kennedy, D-Mass. ( chairman of the Senate Labor and Human Resources Committee, substituted the bill at Metzenbaum's request after Sen. Orrin Hatch, R-Utah, refused to allow votes on amendments to the original. The substitute bill included several of the weakening amendments, aimed at diminishing the growing opposition, on which Hatch had been blocking action. The legislation is aimed at what the National Institute of Occupational Safety and Health says are the one in every four Americans who have been exposed to carcinogens or other- hazardous substances on the job. The "High Risk Occupational Disease Notification and Prevention Act" would establish a seven-member panel of scientists to determine the biggest, hazards in workplaces and identify what groups of workers are most at risk. The government would then have to notify between 100,000 and 300,000 of those workers individually each year, and their employers would have to provide them with annual medical monitoring tests costing up to $250 each. A similar bill was passed by the House on a 225-186, largely party-line vote last October despite vehement opposition from the Reagan administration. Hatch, voicing the objections of hundreds of business groups, said the bill could open up employers to billions of dollars in liability damages from suits by their workers and former workers placed in the at-risk groups. Boesky Goes To Jail NEW YORK (AP) - Ivan F. Boesky, who made millions by trading stocks on inside information, has begun serving his three-year sentence at a minimum-security prison camp where jobs pay a maximum $17.60 a week. Boesky, 51, reported Wednesday to the 700-inmate federal prison camp at Lompoc, Calif., the prison said. The camp, 150 miles northwest of Los Angeles, is on about 44,000 acres of heavily forested land and contains a dairy, slaughterhouse and furniture factory. Inmates sleep in a former army barracks. "He could be in the slaughterhouse, he could be in the landscape crew, he could be working in the dairy operation. He will be required to work a fulltime assignment," said Warden Richard Rison. Rison said inmate pay ranged from 11 cents to 44 cents an hour for a 40-hour week. As in other federal prison facilities, the money is credited to a commissary account, and inmates can buy toiletries, cigarettes and candy. During off hours, Rison said, inmates can play tennis on a single concrete court, lift weights, roll .boccie ball, shoot billiards or watch cable television at a half-dozen sets around the lockup. Inmates have access to eight telephones but Rison said there's a 15-minute limit on calls. Honolulu Mayor Battling Japanese Investment HONOLULU (AP) — A wave of Japanese purchases of everything from farmland to memberships at prestigious country clubs has sparked a backlash among those peeved at a resulting rise in property taxes and tee-off waiting times. But many call the criticism the latest in "Japan bashing," and say the foreign-based investment is a boon and a sign of Japanese confidence in the U.S. economy. Mayor Frank Fasi has proposed state legislation to prohibit the sale of residential, agricultural or preservation property to anyone who is not a U.S. citizen. has no plans to become a citizen or would not live on the land at least half the year. Fasi's proposal, based on similar statutes in Nebraska, Wisconsin and Mississippi, would not affect the sale of commercial, resort and industrial land. It has little chance of being considered by the legislature because it was submitted late in the session. Fasi blames the Japanese for skyrocketing property taxes resulting from rising home prices, and for longer waits for tee-off times at the Honolulu Country Club, where Japanese nationals pay $150,000 for memberships. "They just about own downtown," Fasi said Wednesday. He denies his proposal is racist. BRIDGE REPAIRS INCONVENIENT.... BUT, BANKING ISN'T! First National's new Southside Money/Mover® location just west of WSAL will provide 24-hour banking service during bridge repairs. Bank at First National day or night... and don't go near the water! Watch For April Opening MoneyAhwer •"•Pt ^•n COMMUWTY OWMD. COMMUWTr OBIMTID THE FIRST NATIONAL BANK OF LOGANSPORT DOWNTOWN NOKTHSIDC lOCANSPOMT MALI OAIVESTON TWUVEMLE YOUR BRIDGE TO CONVENIENT BANKING

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