The Minneapolis Star from Minneapolis, Minnesota on February 11, 1976 · Page 40
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The Minneapolis Star from Minneapolis, Minnesota · Page 40

Minneapolis, Minnesota
Issue Date:
Wednesday, February 11, 1976
Page 40
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Court lets red dye stay on market WASHINGTON If) Manufacturers of food, cosmetics and drugs who rely on red dye No. 2 to color their products can continue to use the coloring while a federal court decides whether the Food and Drug Administration (FDA) can ban it from the market. The U.S. Court of Appeals yesterday continued its stay of the FDA's plan to ban red No. 2, used to color such items as hot dogs, lipstick, soft drinks and vitamin tablets. , A three-judge panel said a stay of the FDA ban, issued Monday, will remain in effect while the court weighs the merits of an industry appeal. Trek led to coast PORTLAND Lewis and Clark reached the Oregon coast Nov. 7, 1805. FORECAST Dat" Figures Show Low Temperure Isolated Precipitation Not Included i3 20 10 0. RAIN SHOWERS mm SNOW FLURRIES A HIGH PRESSURE area is expected to the five-state region by tonight as lower Canada toward the area. WARMER Minnesota TWIN CITIES: Chance of occasional light snow or flurries tonight. A little warmer tonight and tomorrow. Low tonight 15 to 20. High tomorrow low .10s. Wind westerly 10 to 15 tonight. Probability of measurable precipitation 30 percent" tonight. ALL OTHER ZONES: Cloudy with chance of occasional light snow or flurries mostlv north and central tonight and northeast tomorrow. Partial clearing tomorrow. A little warmer tonight and tomorrow. Lows tonight zero to 16 north, 12 to 26 south. Highs tomorrow 18 to 28 north, 5 to 36 south. Upper midwest NORTH DAKOTA: Partly cloudy tonight and tomorrow with chance of snow flurries. Lows 10 east to 20 west. Partly cloud v tomorrow colder west. Highs in the 20s. SOUTH DAKOTA: Partly cloudy tonight and tomorrow with chance of snow flurries northeast. Lows tonight teens northeast to mid 20s southwest. Highs tomorrow around 50 southwest to 30s northeast. IOWA: Clear to partly cloudy tonight with lows in the 20s. Partly cloudy tomorrow with highs around 40 extreme north to the 50s south and central. , ... WISCONSIN: Mostly cloudy tonight with a chance of snow mainly north. 1 ows in the teens to mid 20s. Chance of light snow or flurries early tomorrow then decreasing cloudiness. Highs in the low 20s to mid 30s. Extended outlook TWIN CITIES: Partly cloudy and mtld Friday through Sunday. Highs in the mid' 30s. Lows 15 to 20 The normal high is 26 and the normal low 7 above. , . . MINNESOTA: Partly cloudy to occasionally cloudy and mild Friday through Sunday with a chance of snow in the north Friday and Sunday. Highs upper teens to upper 30s. Lows io to 25 Friday and 5 below to 20 above Saturday and Sunday. LOCAL WEATHER DATA (Minneapolis hourly temperatures on Page 2A) Readings Today Record high. 51 in 1961; Record low, -31 in lUflS. High year ago, lfi;Low, 10. Precipitation from 1 a.m. to 7 a.m. 0 inches. 7 a.m. humidity, 64. Sunrise, 7:20 a.m.; Sunset, 5:35 p.m.; Monnrise, 1:32 p.m.; Moonset, 4:00 a.m. 1st Qtr. Full LaitQtr. New Feb. 8 Feb. IS- Feb. 22 Feb. 29 Readings from 1 a.m. to 1 a.m. lliKhest temperature, 40 at 4 a.m.; Lowest, 32 at 8 p.m. Highest humidity, Sf) at 1 a.m. lowest, 67 at 4-5 p.m. Precipitation, Tr. Total for the month. .19; departure from normal, -.05. Total for year, 1.06; departure from normal, -.09. REQUIRED HEATING UNITS (One method of figuring heating requirements is to calculate now many degrees a day's average temperature fell helow 65, the point at which artificial The resulting figure can be used to estimate fuel consumption.) Since July I Feb. 10, 1976, 29 required heating units; year ago. 60. Normal, 50. Total number of degrees below 65 this heating season, 4943; tast season, 5102. Normal, f.240. Nomination announced WASHINGTON (AP) President Ford said yesterday he is nominating Daniel Leach, associate chief counsel of the Senate's Democratic policy committee, to be a member of the Equal Employment Opportunity Commission for a term expiring in mid-1979. Ford also said he is nominating William Cook of Carbondale, III., for reappointment as a judge of the Military Court of Appeals for a term expiring May 1, 1991. mums PREMIER - DESIGNATE Aldo Moro arrived at the Quirinale Palace in Rome yesterday to advise President Giovanni Leone that he is ready to form a new government for the economically ailing Italy. Lenoe had offered him the task on Jan. 13. From N1'0"1 Weather Service Expected Until Tomorrow Morning T T T 20 COLD WARM STATIONARY OCCLUDED move rapidly southeastward beyond pressure spreads southeastward from OFFICIAL TEMPERATURES U.S. Weather Bureau Official Readings First column, highest temperature yesterday; second, lowest in 12 hours, ending 6 a.m.: third, precipitation in 24 hours ending 6 a.m. MINNESOTA Minneapolis 40 14 T Alexandria 35 - 2 Kemidji :i5 - 7 Puluth 36 4 .02 International Falls ... 31 -13 T Redwood Falls 40 13 .01 Rochester 40 20 .02 St. Cloud 37 4 .05 WISCONSIN Claire 38 17 .01 Green Bay 39 32 .14 I -a Crosse 41 26 .04 Madison , 49 33 . Milwaukee 46 34 T Wausau 38 25 T IOWA lies Moines 51 26 Mason City 43 22 Sioux City 42 23 SOUTH DAKOTA Aberdeen 38 12 T Huron 40 19 .01 Rapid City 39 26 Watertown 35 8 NORTH DAKOTA Bismarck 33 15 T Devils Lake 32 0 .05 Dickinson 35 22 T Fargo 34 3 .02 Grand Fork 32 - 3 T .lamestown 34 5 T Minot 31 11 Wilhston 29 7 .03 MONTANA Billings 44 32 Great Falls 40 35 Helena 41 31 OTHER U.S. CITIES Yesterday Tomorrow H' If Pcin Skv Hi 1.0 A Ihtiquerque 50 30 ,17 Fair 55 28 Anchorage 4 0 .. Cloudy .16 12 Atlanta 70 50 .. Cloudy 65 58 Atlanlic Cily 44 41 .. .Sunnv 42 35 Baltimore 56 40 .. Sunny 48 31 Boise 42 30 .. Fair 47 32 Boston 48 39 . . Fair 35 30 Brownsville 81 63 .. PtCldy 80 60 Buffalo 53 35 .. Snow 32 22 BurlingtonVt 38 35 .. PtCldy 23 19 Casper 33 19 .06 Sunnv 47 25 CharlestonSC 65 51 .. PtCldy 65 49 CharlottcNC 67 51 .. PtCldv 55 37 Chevenne 45 24 .. Sunnv 51 27 Chicago 58 33 .. PtCldy 44 27 Cincinnati 65 38 .01 PtCldv 52 31 Cleveland 53 35 .. PtCldy 41 29 ColumbiaSC 73 54 .. PtCldy 64 48 ColumhusOh 58 36 .. PtCldv 46 29 Dal-FtWorth 81 56 .. PtCldy 68 42 Denver 56 25 .. PtCldy 58 28 Detroit 49 36 .. Cloudy 39 20 Tl Paso 66 49 .. Fair 68 41 Fairbanks -23 -40 .. Misg .. .. Hartford 45 3 . . Fair 35 26 Honolulu 78 69 ,09 PtCldy sn fifi Houston 73 62 .. Fair 75 51 Indianapolis 61 32 .. Cloudy 52 27 lacKsnnMs 74 53 .. Cloudy 68 48 Kansas City 70 32 .. Sunny 54 32 Venas 57 40 .. Sunny 61 37 Little Rnck 75 46 .16 PtCldv 66 39 Los Anceles 62 47 .. Sunnv 72 46 Louisville 67 44 . . PtCldy 58 34 Memphis 72 51 .05 Fair 65 41 Miami Beach 68 59 . . PtCldy 78 63 Nashville 67 52 .02 Fair 61 39 New Orleans 73 50 .. PtCldy 75 51 New York 45 40 . . Fair 38 32 NorfolkVa 61 53 .. Sunnv 50 35 Okla, City 73 43 .01 PtCldv 61 37 Omaha 48 21 .. PtCldy 48 22 Orlando 72 43 .. PtCldy 78 B6 Philadelphia 49 24 .. Sunny 42 32 Phoenix 65 47 .. Sunnv 71 46 Pittsburgh 55 .18 .. PtCldv 41 29 PortlandMe 42 37 .. Sunny 2!i 15 PorllandOr 50 31 .. Rain 52 39 Rnn 35 11 . . Sunnv 48 .18 Richmond 65 57 .. Sunny 5.1 34 St. Louis 79 36 .. PtCldv fill 31 StPrbaTam'a 72 39 .. PtCldy 77 54 SaltLakeCity 35 13 .. Fair 40 18 San Antonio M f,i'i .. Fail 7. 49 Sin Diego 59 53 .97 Sunny 68 49 San Fran. 62 47 .. Fair 60 45 San Juan Pr 81 72 .08 PtCldy 81 71 StSteMarie 35 41 .02 Snow 24 4 Seattle 45 41 .. Rain 51 40 Snokane 35 33 . . Rain 45 34 Tucson 60 44 .01 Fair 68 42 Tulsa 71 41 .20 PtCldy 62 36 Washington 56 46 . . Sunny 50 33 Wichita 69 30 .. Sunny 58 32 AROUND THE WORLD February II, 1976 Temperatures at midnight CST: Aberdeen. Scot. 36 Moscow -4 Amsterdam 34 New Delhi 55 Ankara -15 Oslo 30 Asuncion 66 Paris 34 Athens 39 Peking 23 Berlin 36 Rio de Janeiro 75 Brussels 37 Rome 46 Buenos Aires 70 Saieon 72 Casablanca 50 Seoul 30 Copenhagen 34 Sofia 25 Dublin 36 Stockholm 36 Geneva 36 Taipei 64 Hone Kong 61 Tel Aviv 91 London 37 Tokyo 41 Madrid 46 Tunis 43 Manila 75 Vienna 32 Montevideo, Uru. 72 Warsaw 25 bubscrwt tantalizing unknown for three investors By JIM ADAMS Minneapolis Star Staff Writer The untried but tantalizing medium of subscription television is stimulating investor interest in the Twin Cities. In recent weeks, a California group set up a Minnesota pay TV subsidiary, and a Texas outfit came to town, surveyed the potential and talked to dozens of officials. Those groups present new competition to a local investors group that has been trying for eight years to get a UHF (ultra-high frequency) channel. Viking Television, Inc., St. Paul, is the only firm that has filed an application with the Federal Communications Commission (FCC) for one of the two UHF channels open in the metropolitan area. However, the Buford Group of Tyler, Tex., says it will file an FCC application this year, and Minnesota Pay Television, Inc., the California firm, says it may do so at a later date. There are no subscription television systems operating in the United States, and the technology is being honed. Subscription TV is broadcast over (UHF) airwaves as a coded signal that can be received by a standard antenna. But a viewer can't see the program unless he has a special decoder box on his set to unscramble the signals. CABLE TV, another kind of pay television, is piped from a TV station through a cable system to subscriber homes. Both cable and subscription operators charge a month-lv fee of about $10 for program ing, which can include plays, first-run movies and local events. Commercials may be shown to raise additional revenues. Viewers also pay a deposit fee. Viking Television recently amended its FCC application so it can offer subscription TV as well as the normal commercial variety on UHF channel 23, according to Irving W. Beaudoin, who organized the firm in 1966. "There is aDDarentlv a demand for it (subscription TV), according to surveys," said Beaudoin, a former South St. Paul judge. "It's a way of getting to a lot of people. We don't have to put up wires (as cable networks dol and can reach 50 to 60 miles out in the metropoli tan and suburban area, ine market is in the millions." Vikine siened a contract recently with American Subscription Television. Inc.. Milwaukee, which will lpase air time from Vikine and provide ad -free programing to subscribers, wno win pay aoout qiu a month, Beaudoin said. Amprican Subscription is affiliat ed with B&F Broadcasting Corp., Milwaukee, which is one or tour firms in the nation to have FCC au thorization to install subscription TV equipment. If the FCC is satis- ifed with equipment tests and the firm's financing, it could grant an operating license to Viking. BEAUDOIN estimates it will take several million dollars to get such a station operating in the Twin Cities, but he thinks that it could build up a 100,000-customer base within a few years. Viking is negotiating with the four area commercial TV stations to install a transmitting device on one of their three TV towers at the Shoreview antenna farm. The FCC has ordered the channels WCCO, KSTP, WTCN and KMSP to respond bv March 2 on how they will accommodate Viking, or, al ternatively, why they t'. nk they are not obligated, an FCC lawyer said. The proceedings could take months, even years, he said. Viking lost the site of its own proposed tower when it was condemned for a Ramsey County nature center. Delays in seeking per mission to build the tower forced Viking to renew its construction permit several times since it was granted in 1969. Viking has eight shareholders, including Beaudoin and his wife; Harold Bangert, a San Francisco in- Asian airline cites Lockheed payment IIGNG KONG (Pi Camay Pa cific Airways of Hong Kong said one of its senior staff members received $80,000 from Lockheed Aircraft Corp. to help promote sales of its Tristar aircraft in the region. The airlines managing director said the payment to British-born Capt. Ernest Bernard Smith, director of flight operations, was made in connection with his efforts to sell the jumbo aircraft "to airlines other than Cathay Pacific." The airlines said Smith resigned. Lockheed said the money given to Smith was "a legitimate payment" for his assistance in selling the Tristar to airlines other than Cathay Pacific. Lockheed said its other Tristar sales in the region were to All Nippon Airways of Japan. ton m K CD Q Gg Would-be subscription TV vestment banker; Philip Woog, former South St. Paul mayor; Barbara Marmet, wife of a Washington, D.C., lawyer working in the communications field, and Silvia Hen-kin, Sioux Falls, S.D., owner of a radio station there. Meanwhile, ten Texans in the Buford group came to town last month to lasso support for their efforts to win approval for a subscription TV channel. They conducted an FCC-required survey of nearly 200 government, business and community leaders to assess area needs and problems concerning possible programing. A similar survey of 511 area residents has since been-completed for Buford by the University of Minnesota. Robert Browning, executive vice-president of Buford, said his group is working on a construction permit application and estimates it could spend between $3 million and $7 million if it decides to build or rent a TV tower in the Twin Cities. Buford is "excited" about the area but is also looking at other cities, Browning said Buford owns four TV stations in Texas, Arkansas and Bedford, Ind., where it runs a cable-TV network. THE TWIN CITIES metropolitan area is ranked in the top 10 TV markets in the country, Browning said. However, because of the large number of TV channels here (four commercial, two educational), the area is regarded by some as a high-risk market. The FCC requires that a community have four commercial TV channels, free to viewers, before a pay TV channel can be added to the airwaves. Another pay station can be added for each four additional commercial channels. Minneapolis Legal actions A SUIT HAS stemmed from creation of the Little Sprout, the cartoon companion to the Green Giant. Papers filed in Hennepin District Court by George Battis contend he origi nated the character and that he wasn't compensated for his idea by Green Giant Co. Battis asks $1.15 million as settlement. The company had no comment . . . Tennant Co. has been sued in the same court by a former employee, Gary Peterson, who seeks some parts of the firm's profit-sharing plan voided. Peterson alleges that the floor-sweeper manufacturer directed the First National Bank of Minneapolis to forfeit his vested benefits after he was "involuntarily terminated" and joined a competitor . . . Butler Square developer Charles B. Coyer is being sued in U.S. District Court in Minneapolis for $122,500 in overdue notes he borrowed from the First Produce State Bank of Minneapolis. The bank's suit alleges that Coyer, of Wash- ington, D.C., used some of the loan proceeds for himself, rather than financing the Butler Square rejuvenation as he promised . . . MoAmCo Corp. has been awarded a $128,102 default judgment against the Drovers State Bank, St. Paul, The bank held funds of Miller Manufacturing, Inc. and Apollo Products Corp., Minnesota firms that failed to make lease payments to MoAmCo for equipment, the suit says ... Consumers Oil Co., Brainerd, is seeking damages from Continental Oil Co., Inc., for alleged monopolistic practices with several gas stations in Brainerd which Continten-tal took over against during the 1973 gasoline shortage ... Shelard National Bank lent him too much, says Michael H. Novick, St. Louis Park. He alleges the bank gave him more credit for margin stock purchases than banking laws "allow. The suit seeks about $100,000 and 41 TV is a broadcasters seek to add channel to current viewer fare and St. Paul are considered to be two communities. So, with four commercial channels here now, UHF 23 and 29 have been authorized for subscription TV, according to an FCC attorney. If there is more than one applicant for a channel, the FCC holds hearings to determine which group would best serve the public. An applicant can petition for another channel if none is available. FCC hearings were scheduled in 1969, when both Viking and Soul's Harbor evangelistic church filed for a license to operate channel 23. But the church withdrew its application after Viking agreed to pay $15,000 for its legal and engineering application costs, recalled Soul's Harbor president and pastor, the Rev. Gordon K. Peterson. An eastern franchisor, the International House of Pancakes, Inc., filed several years ago to operate channel 29, but never followed through, Beaudoin said. MINNESOTA Pay Television, Inc., the other out-of-state wouldbe broadcaster, is one strand of a tangled web of corporate entities backed by a California group led by a Los Angeles millionaire-producer, A. G. Jerrold Perenchio. A spokesman for Perenchio confirmed that Minneapolis was under consideration as a subscription TV market but said Perenchio would first concentrate his efforts on California. FCC records show that Perenchio owns Chartweil Communications, Inc., of California, which produced the first Muhammad Ali-Joe Frazcr heavyweight boxing match. Perenchio also has an interest in Oak Industries, Inc., a publicly held Portfolio invalidation of his debts to the bank . . . Herbert Gross has sued Gordon H. Ritz, William Gregory and the Titanic Corp. for $20,600 in Hennepin District Court, allegedly for breach of contract in a Duluth radio station operation. Gross, who is president of a Litchfield, Minn., station, alleges the men breached an agreement to loan him $10,000 each to buy equity in Titanic. In a counterclaim, the defendants said that until Gross was removed as president, he performed in a negligent manner and engaged in conduct constituting a breach of duties and responsibilities. They seek dismissal of the suit and $25,000 . . . Control Data Corp. is being sued for $250,000 in Hennepin district Court because it allegedly breached its "implied warranty." The suit, by Statistical Tabulating Corp., a Chi-c a g o electronic data-processing firm, alleges injury, damage, lost revenue and lost customers because certain equipment it bought from Control Data malfunctioned. The suit also seeks a $314,000 judgment and asks the court to cancel or rescind the contract . . . First National Bank of Minneapolis has sued to recover $30,081 from Statewide Drywall, Inc. in Hennepin District Court. The suit also names three men who allegedly guaranteed two loans made to the company ... Around Minnesota "IF THE POLITICAL climate is stagnant, so is the social climate and therefore the economic cli mate." So asserts the St. Paul Com-p a n I e s, Inc., as partial explanation for the firm's decision to p r o-mote, through newspaper ads, posters and information kits, the precinct caucus system in Minnesota. The financial services firm says it wants to boost political participation by citizens throughout the bicentennial year. The firm spent about $25,000 on the promotion, which includes pro- THB ST. PAUL HBtfflgfiiaos M r Ffiiagym the minneapolis star Wed., Feb. 11, 1976 20B IV 0 firm headquartered in Crystal Lake, 111. Oak and Chartweil own World Pay Television, Inc., through subsidiaries. World Pay TV intends to open franchises in 14 states, including Minnesota, FCC files show. Why are investors willing to put up millions of dollars for costly pay TV equipment and operations involved in an untried medium? They look past the first few rocky years. Using Viking's estimates of 100,000 subscribers within two years, each paying a monthly $10 fee, revenues could total $12 million a year. PROGRAMING costs are a major expense for subscription TV operators. Buying rights to show first-run movies, a customer drawing card, can cost a station 40 percent of revenues, sources said. And any local programing adds to production costs. While cable television has an advantage in operating costs, it faces higher capital costs to set up a cable network, stringing wire from the station to client homes. Cable TV can pick up programing at a nominal cost from existing networks. Nonetheless, cable operators are still hurting for profits. "Of the top 50 (cable) markets in the country, no one is operating in the black ex cept a few California stations," says James B. Goetz, president of General Television of Minnesota, Inc., and a former lieutenant governor. His company has invested about $2 million in its cable station in Fridley and has about 1,000 customers after broadcasting for a year. More than 30 Minnesota communities have cable television, including a half-dozen Twin Cities suburbs. ducing public service TV ads for the Minnesota secretary of state's office. "It is Incumbent on all of us to do what we can to restore democratic participation to our government," commented Carl B. Drake Jr., company president . . . Sen. Walter Mondale and other politicians will inaugurate a minority-owned Burger King restaurant franchise in downtown Minneapolis this weekend. Northwestern National Bank of Minneapolis is the major lender to the business, headed by Thomas Tipton, a local black advertising man. . . Manufacturers Systems, Inc., say it's completed its acquisition , 9OQ GD p or controlling interest in Hugert Manufacturing Co., a private metal duct producer in Ohio. Terms weren't announced . . . Robel Beef Packers, Inc., St. Cloud, declared a cash dividend of 12 cents a share, payable Feb. 24 to shareholders as of Feb. 17 . . . Assertlveness training for women managers is the topic of a one-day seminar Feb. 19 at the Normandy Motor Inn in downtown Minneapolis. It's sponsored by the Continuing Business Education office at the University of Minnesota and there's a $65 registration fee . . . Northern States Power Co. says it's filed an environmental report with the state covering two additional generators proposed for its Sherburne County plant . . . And Dawn Movine ft Storage Co. has merged with Barrett Moving & Storage Co., Minneapolis The Barrett name survives. Earnings reports G&K SERVICES, INC. (Textile products leaser) 2nd qtr. ended Dec. 27, 1975 1974 Revenues $3,904,000 $3,719,000 Profit 208,000 193,000 Margin 5.3 5.2 Per share 26 cents 24 cents FADRI-TEK, INC. (Computer products maker) 3rd qtr. ended Jan. 2, l75 1974 Revenues $fl,99.000 $8,083,000 Profit (loss) (252,000) (357,000) Per share . 4 , (loss) (7 cents) (13 cents)

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