Arizona Republic from Phoenix, Arizona • Page 68

i i Arbitration: oil for justice' wheels Process avoids costly, slow court action in disputes, AAA chief says A Scottsdale man is carrying the torch for arbitration in Arizona. Paul A. Newnham is regional director for the American Arbitration Association, 43-year-old nonprofit organization that set up offices at 132 S. Central in 1967. So why the torch? "Because arbitration reduces costs and time required to settle disputes," explained Newnham.

"And since it is entirely private, the dispute and settlement are not subject to the public airing that court action can mean." Newnham has been busy spreading that gospel among civic and professional groups ever since he opened the office here 18 months ago. Five years before, the crewcut Newnham pushed his 6 feet and 225 pounds back from a desk at Davis-Monthan AFB and retired after a career in administration, budget, accounting and finance. He got into the American Arbitration Association during the first equal opportunity election in the country in 1966 while in Los Angeles. Then he moved on to the job of open- -ing the Arizona Office. You might call arbitration freeway justice not delayed by court jams or the law's technical stoplights.

Newnham defines it as the resolution of a controversy by impartial persons usually chosen for expert knowledge in the area of the dispute. In Arizona, arbitration is authorized by statute and its decisions, which are final, are readily enforceable in the courts. Where does Newnham fit into the picture? His office is the agency that arranges the mechanics of arbitration. It can get into the action in two ways: contracts provide for settlement of disagreements tv oi nmrYl by arbitration. If that's the case, the aggrieved party has th ei case as commercial accident claims including only-to file a demand for arbitration with NewnhanVs of- aut labor internatlonal and mter-Amencan.

fice. Then arbitration takes over. both parties may agree to arbitrate although PAUL A. NEWNHAM The American Arbitration Association groups its tribunals they had no such agreement before the dispute. They then sign a submission agreement with Newnham's office to start arbitration.

After arbitration has been started, Newnham submits to both sides lists of prominent Arizonans who have agreed to act as arbitrators. Each side picks the arbitrators they favor and Newnham selects the one with the highest mutual rating. Hearings then are arranged and the case is presented in the hearing room adjacent to the Arizona office or other site. An award is required within 30 days. What does it cost? The minimum fee is $50.

After that it is 3 per cent of the amount involved in cases up to $10,000 when a sliding scale goes into effect. The 400 Arizona arbitrators are experts in their fields who give their time as a public service. They serve without pay with two exceptions: After two days, a per diem fee may be set for additional time; in labor cases they get $150 to $250 a day. Unless otherwise agreed, cases involving less than $10,000 are heard by one arbitrator; more than $10,000, by three. Just about any dispute can be handled by arbitration.

The association also conducts elections and and under its new Center for Dispute Settlement "applies the techniques of arbitration, mediation and fact-finding to solution of conflicts in urban areas and to the settlement of racial and other "As an example, the center took an important part in the settlement of the student strike at San Francisco State College," said Newnham. In addition to the fees for administering arbitration cases, the association receives income from annual memberships and contributions. The membership is made up of companies, labor unions, trade associations, civic groups, law firms and organizations of all kinds. Thus the association is enabled to carry on its research and development in arbitration and to mount a broad campaign of education about its advantages. Newnham.

has found the biggest part of his work in the educational area, spreading the word about the American Arbitration Association's arrival in Arizona. He's a little bit puzzled, too, about Arizona, for the state has one of the most modern arbitration statutes, making voluntary arbitration available to private individuals. "But the legislature stopped there, 1 he said. "Thus, arbitration isn't available under an attorney general's opinion in public contracts." T) i THE ARIZ hnance Business THE ARIZONA REPUBLIC Snidav. Mav 18.

(Section F) Page I Tho Women's swinisuits real risks Milady's true figure must hide under scanty cover; industry's profits flirt with brief seasons, briefer styles Campbell By DON G. CAMPBELL Business and Financial Editor She's only a bird in a gilded cage, and a cage, as we all know, isn't very concealing. Its principal function is to provide maximum exposure and maximum protection against "fly out." Heaven forbid that we should suggest this is the motivation that guides milady in her annual search for swimwear. But, in all frankness, it's a shopping tour that she approaches with little of the gay abandon that marks her pinching, gouging assault on the lettuce bin. For this is a deadly serious business on her success or failure in picking a swimming suit hangs the question of whether she will spend the summer looking like a slightly over-age Jane Fonda, or like a sack of ungraded oranges.

A multimillion dollar industry which peaks here in May and June and, nationally, has a selling season that blooms and dies in a matter of a few short weeks, the manufacture of women's swimwear is dominated by fewer than a dozen American companies. The chief ones are Cole, Catalina, Peter Pan, Roxanne, Rose Marie Reid, Elisabeth Stewart, Jantzen, Sand Castle and Serena. In terms of corporate risk, the business makes the cosmetics industry look like the soul of stability. By early July the manufacturer has either made himself a pot of money, or has more warehouses full of swimming suits than he would care to discuss. "We still do about 50 per cent of our swimwear business in May and June," Mrs.

Doris Baker, Diamond's buyer for swimwear, blouses and shirts, said this past week, "but a lot of the peaks in the business are being flattened out. It's becoming much more of a year-round item than it used to be." Only a few years ago, she said, the woman who hadn't bought her swimming suit by early July was in trouble. If she had missed the early July clearance sales, she had to reconcile herself to spending the rest of the summer wrapped in a towel. "Instead of coming out with just a single line of swimwear," she said, "the manufacturers are now producing three or four, and, as soon as we've cleared one out, we have new lines to show." At Diamond's, Mrs. Baker said, the volume selling is in the $23 to $30 range although, in deference to the raw material involved, the bulk of the traffic in bikinis falls, snugly, at about the $15 level.

This isn't iron-clad, however, since some imported bikinis (Italy, Israel, France and Denmark are the big exporters) go as high as $67. "In women's swimwear, of course," Mrs. Baker said in classic understatement, "price has little relationship to the actual material involved. It's practically all in the design and construction." It must be charitably admitted there is considerably more engineering skill involved in the construction of a woman's swimming suit than is apparent on the surface. Even a fundamentally good figure can't be left entirely on its own to fit, willy nilly, into the swimsuit as its whim dictates.

For the lady with what we delicately call a "problem" figure, the stratetic placement of supports, padding, stress points, and what-have-you, approaches fine art. "The foundation manufacturers," Mrs. Baker said, "are now thoroughly involved in swimwear, and they have simplified buying a suit with a brassiere that really fits, because many of the two-piece suits are sized, and sold separately." No job worries Pentagon retirees never had it so good By M. J.WILSON Newsweek Feature Service Not so long ago, there was widespread concern that our discharged servicemen might not find good civilian jobs. Lately, there has been a new twist to the old worry.

Some of the veterans seem to be coming up with jobs that are just a little too good. Most of the uneasiness has its roots in Dwight D. Eisenhower's parting admonition as he left the White House in 1960: that the nation would do well to keep a watchful eye on "the military-industrial complex." In plain English, he meant that some high-ranking officers and some big defense contractors were getting too chummy for comfort. Even then, a startling large number of Pentagon officials, especially those engaged in the purchase of military equipment, were retiring from the services and accepting top jobs from the very companies with whom they used to do business. The trend increased.

of high-ranking retired officers now working for the defense industry has tripled since Eisenhower left office. In a spirited report to Congress, Sen. William Proxmire, recently revealed that 2,072 retired officers, who formerly held ranks of Army colonel or Navy captain or higher, are now employed by the country's 95 leading military contractors. "This represents a threat to the public interest," said Proxmire. And bitingly he asked: "How hard a bargain will officers drive when they are one or two years from retirement" and hi line for jobs with companies they deal with regularly? Of course, not all retired officers are hired for services rendered or because their present Pentagon contacts will hatch future Pentagon contracts.

High- ranking officers are, after all, experienced executives and in many cases their technical knowledge is exactly what a manufacturer needs. More important, perhaps, the officers fit in. But in the light of Eisenhower's warn, ing, this increasing togetherness of the military and industrial behemoths may have a more dangerous potential than any isolated hanky-panky between an Ciuitiuued on Page 4F GE unveils its TRADAR By A. V. GULLETTE Associate Business and Financial Editor New computer to serve Penneys 9 retail system; 1,500 terminals to replace store cash registers LOS ANGELES cret! A $10 million se- General Electric in Los Angeles and New York news conferences, unveiled the details of its computer system for the J.

C. Penney co. The system is called TRADAR, and its development was centered at the Phoer nix GE facility at Camelback and North 27th Avenue "until recently under a cloak of secrecy," a GE spokesman reported. The secret was so well kept that GE is reported to be two years ahead in the retail store data processing field. GE set out to modernize total information handling in large retail operations.

What GE experts did was to adapt its time sharing and computer techniques to retailing. "Accurate, timely collection of information, such as merchandise and credit data, at the point of sale has been a historic bottleneck in advancing retail systems," said Jack Katzen, general manager of GE's special systems department here which developed TRA- DAR. "GE has made a real breakthrough. "With TRADAR, retail store management will have more accurate information faster, and customers will get faster, better GE had two partners in the effort: Penneys, which field-tested TRADAR in its Glendale store and will extend it to 50 others in the Los Angeles area, and Dennison Manufacturing Co. of Framingham, which developed a magnetically encoded merchandise ticket which the computer can read instead of a sales slip.

There will be 1,500 terminals in the $10 million Penney TRADAR system. Those terminals replace cash registers in the 50 Penny stores. The terminals are connected with two GE computers in Penneys' Buena Park distribution center. W. W.

Martin, Penneys' national point of sales manager, called these store connections significant because they bring the computer to the sales floor. Besides performing the functions of a cash register, TRADAR reads the magnetically encoded merchandise tickets In terms of style, of course, the average women's swimsuit has the life span of a mayfly. Who among us, for example, still remembers that rage of 1965, the mesh suit? This innovation provided adequate covering, but gave the impression of great- naughtiness by leaving large expanses of bare skin covered by black mesh, as though the wearer had been attacked by giant spiders. It was Cole of California who took the giant gamble on the mesh suit, dumped 95 per cent of its advertising into this one line, and scored a coup that was the teeth-clenching envy of the entire industry. The following summer it was difficult to find one of the suits still around.

Dead and buried, or not, the mesh suit was a forerunner of the trend toward more skin exposure, and its imprint is clearly seen in today's "bare look" or the trend toward swimsuits that feature carefully contrived holes and slits in some pretty interesting places. Still and all, Mrs. Baker conceded, Diamond's two best-sellers at the moment include the relatively sedate "tunic suit." which looks like an abreviated tennis dress, and the standard bikini. Even here, though, the miracle of modern engineering has left its imprint with new, stress-structured bras that picks up where nature leaves off a necessity since size 18s still insist on buying bikinis with almost the same zeal that the 10s exhibit. If there is such a thing as a classic swimsuit that pops up regularly, year after year with undiminished popularity, it has to be what Mrs.

Baker calls the "predictable" suit the one-piece, unadorned, model that looks like a well structured tank suit. It is for swimming. With the hot desert sun and pool chemicals takin gan unmerciful toll on swimwear particularly on solid colors that can bleach out to a death-head beige after a few exposures the average Arizona woman, Mrs. Baker estimated, owns about four to six suits. "I don't know of anyone," she said, "who really throws an old swimsuit away.

We're all the same. We keep the old ones for lying around the pool when there's no one else around." And there's dear old Dad, of course, playing around in the shallow end of the pool with his rubber duck, and nattily attired in the 1949 Boy Scout trunks that hit him just above the knees to give him the rakish look of a marine biologist who has just fallen out of his rowboat. THEIR SECRET Key members of GE's team E. H. Cabaniss, advanced projects systems en- which developed TRADAR retail store computer gineer; Jack market development system in secret here pose with a TRADAR point- of-sale terminal.

They are, from left: John M. Scandalios, special systems marketing manager; been with the TRADAR program since shortly after its inception five years ago. and credit cards, verifies credit ratings and cards almost instantly, performs all calculations, and produces a sales slip automatically. Martin said the system, in a test during the Christmas rush, showed customer transactions were speeded up. In addition, the Glendale store manager knew, day by day, just what merchandise was being sold and how much.

Pennys will have TRADAR tell these results to its computers in SASC its semiautomatic stock control, and TRA- DAR will be linked to Penneys' totally computerized credit operation. The Los Angeles Penneys TRADAR system is to be completed in 1970. Martin said it had been planned to include Pennys' Phoenix stores in the system, but the Los Angeles group took up all the terminals. Angeles was selected for the in- stallation because of a suitable concentration of Penneys stores and its nearness to the GE seat of computer tech-- nplogy in Phoenix. The Phoenix GE information systems equipment division was the control point for the design and development of the complex, highly specialized software, as well as the special communication and data processing elements making up the TRADAR system.

GE spokesmen said-the effort also included GE's research and development laboratories in Schenectady, N.Y., its communication products business in Lynchburg, and the information devices business in Oklahoma City. In early stages of the operation, the first TRADAR installation at Pennys in Glendale was connected directly to GE computers in Phoenix by phone lines to make periodic checks of the system's coiruniu'iicatious capabilities Dr. Thomas A. Vanderslice, general manager of the GE Information Systems sales and service deputy division, told the Los Angeles news conference that TRADAR was applicable to all large and medium sized retail operations. In response to a question, he said GE was considering use of time-sharing for TRADAR in retailing.

The outlook for additional TRADAR orders is excellent, Katzen said, and will mean substantial additional computer business for GE in Phoenix. "We intend to be a major supplier to the retail industry," he said. In addition to TRADAR, Katzen's department is responsible for GE's data entry system developed for the Internal Revenue System and installed in the IRS southwest service center in Austin, Tex. Three others will be delivered to IRS this year. Spending spree may get worse NEW YORK (AP) The inscrutable consumer has become the enigma of an inflationary situation enveloping the U.S.

economy. He keeps on buying at a record rate despite higher prices, higher interest rates and higher taxes. Economists had expected that by now consumers would pull back from their spending spree which has helped fuel the fires of inflation. Enactment of the 10 per cent income tax surcharge last June was intended to curtail the amount of individuals' spend- able money. Higher interest rates were aimed at discouraging borrowing to finance purchases.

These measures have yet to produce substantial results, but some economists say they detect a small beginning of the desired effect. More alarming to inflation-fighters was a Commerce Department survey indicating that consumers have stepped up their buying plans for the next six months. Ellmore C. Patterson, president of Morgan Guaranty Trust Co. of New York, one of the nation's major banks, said this past week that he expects before the end of the year "clear evidence of an easing in the pace of the economy." "What has to happen," he said, "is a loss of faith in inflation.

People have to be induced to quit believing tliat inflation is a permanent policy in this country, that it will go on and on, that you'd better buy today because everything is sure to cost more tomorrow." William A. Chartener, assistant secretary of commerce said he felt "it will be many more months before price indexes and new wage contracts will again be witiua a range that we can tolerate vuih equanimity.".