The Times from Shreveport, Louisiana • Page 19

She dimes Shreveport-Bossier Sunday, March 0, 1981 Dan Dorfman 5 Stock market 6 Editorials 8 I LiCWISVIlIC IUWIIS BIJIUUI1I1C1 BiuismessFmaiice oil wells Page 2-B kW Rpaonn'c nrnciHnntial etvln 10 Firm finds jobs (or elderly 3 A new game, bet rabbit rans on btismess briefcase -i i'vS business ir? Running rabbit out front A story goes with the running rabbit, the emblem of Melton Truck Lines of Shreveport. Duncan McRae who made the operation what is is today, got into highway transportation first as an employee of Greyhound, whose busses are marked by a representation of the dog breed world-renowned for its fleetness of foot. When he left Greyhound to make his first venture on his own, a small bus line serving a minor Texas-Oklahoma route, he marked his vehicles with the running rabbit to illustrate his sales pitch, "always ahead of the Greyhound." McRae soon decided that transportation of cargo rather than passengers was the wave of the future, and left the bus business. But he took his running rabbit emblem along. McCrae is not convinced that de- regulation was the proper course, though his company and the dent truckers with whom he contracts are doing better than before.

"There are going to be some pr.o-' blems. Some of the smaller communities are going to be hurt, am; afraid. Down the road, I think, they will-have to re-invent the wheel of The nation has to have a dependable transportation network." Fast-paced lobbying For the time being, McRae's prin-' cipal efforts at lobbying, which once' kept the company plane busy ferrying Melton representatives to and from, skirmishes in the de-regulation are directed at weight limits in a string' of states that bisect the country north to, south. Maximum weight limits for laden trucks in all but a few states are 80,000 pounds, McRae said. But in Mississippi, Arkansas, Tennessee, Missouri and Illinois, the limits are lower.

"It's a little corridor of states exactly situated to block the trucking industry," said McRae, who has not the slightest doubt that the Association of American Railroads is defending the corridor through lobbying state legislatures "at any cost." It is impossible to devise a truck route from the west to the east coast without going through one of the cor-! ridor states, McRae pointed out, or to send a truck from Shreveport to the East Coast carrying a full cargo. Convinced of fight Efforts to change the weight limits are being made this year in the legislatures of Mississippi and Arkansas. McRae hopes for the best, but he's convinced that his old adversaries, the railroads, will fight to the last gasp. But deregulation has brought a new use for the company plane in the form of one of the "opportunities" it opened up for Melton Truck Lines moving oilfield machinery in the booming race of, firms engaged in exploration and production. "When these people need something for an oil rig, they need it yesterday and they don't much care what it costs to get it there," said McRae.

"We've got some drivers who will climb in a rig and go anywhere, a plane, a pickup, even a Cadillac if that's what it takes." They're learning a new game at the running rabbit line, and though it's not the game they chose, they are beginning to like it. The running rabbit emblem marks 600 highway tractors which roll up and down and across America on missions for Melton Truck Lines of Shreveport, whose president Duncan McRae Sr. struggled as valiantly as any man in the country to stem the rising tide of deregulation in the trucking industry. That struggle was lost. Well? "They've changed the rules.

So we're learning to play by the new rules. It means new challenges, and new opportunities," said McRae. "It's opened up some things to us we had not even considered before." He leaned back in his chair 'from the antique English writing table he uses as his desk, contemplating a rising volume of billings from such opportunities as moving oil field equiment, and grinned. "We can live with this," he said. Melton Truck Lines has come a long way since McRae bought out a small truck line in Crossett, 23 years ago, hauling lumber for a local company now known as Georgia-Pacific.

$40 million in billing billed some $40 million in freight charges last year. Its operations sprawl over a computer-based system which occupies a block-long building on Grimmet Drive. But is is more than just a thriving business. The lion's share of that billing was on behalf of independent truck drivers, men who own their own tractors, and have contracted with Melton to operate under the running rabbit insignia. Thus the Melton headquarters at Shreveport is not just one business, but the busy hub of hundreds of businesses.

All but eight of the 600 tractors in the fleet are owned by others, two-thirds by the men who drive them, others by small firms which own one or two trucks and hire drivers. Melton provides a marketing force to locate cargoes to be hauled, and tends to such matters as licensing, permitting, insurance and billing. The system would be difficult and expensive for a totally independent truck operator to duplicate on his own. For example, a driver might leave Shreveport with a truck fully laden with roofing materials for New Mexico, making money every mile. But when he first shippers it ever served including Bird Son at Shreveport, Georgia Pacific, and Dierk's Lumber Co.

are still among their customers. The company grew as the trucking industry grew, and it grew by the rules then in place. Each time it sought to expand the area in which its truck could run, or the types of cargoes they could carry, Melton had to go through a permitting process with the Interstate Commerce Commission. Often the process was complicated, expensive, and time-consuming. Things are different now.

The ICC still maintains oversight over the trucking industry, but the permitting process is a piece of cake. "We had to go through more than 150 applications to get the authority under which we operate, over a period of 23 years," McCrae recalled. "Now you can get all that in a single application." Jobless rate low but inflation up The inflation rate in Dallas-Fort Worth led all other major U.S. metropolitan centers in 1980, according to Department of Commerce statistics analyzed by First City Bancorporation of Texas in its monthly newsletter. The consumer price index in the Texas metroplex rose 16.9 percent, the figures showed, compared with a national average of 13.5 percent.

But the Dallas-Fort Worth metropolitan area ended the year with an unemployment rate of only 4.1 percent, the newsletter said. $160 million set aside for search United Energy Resources Inc. announced a 1981 capital budget of $463 million, including $160 million for exploration by its subsidiary, Cotton Petroleum Corp. The total also includes $230 million for interstate gas transmission system projects of United Gas Pipe Line Co. and $48 million for similar projects by United Texas Transmission which concentrates on the intrastate gas market in Texas.

Arthritis costly for economy Arthritis not only causes pain and sometimes disablement for millions of sufferers, but the cost adds up to a $14 billion financial headache for business, individuals and the government, according to a study by the Arthritis Foundation. Arthritis cost U.S. business and industry 27 million working days last year, the study said, representing $5 billion in wage losses, and an equal amount spent on medical care. O-I reports record earnings Owens-Illinois achieved record earnings of $149.4 million in 1980, reduced debt and improved its cash position by $117 million through aggressive merchandising and disposing of marginal operations, management reported to stockholders. Earlier, Owens-Illinois, whose Libbey Glass Division operates a plant at Shreveport, announced it was increasing dividends to $1.56 a common share, the tenth consecutive year dividends have been increased.

Rig building plant announced Superior Derrick Services, which recently moved its corporate headquarters to Houston from Deridder, announced a $2 million project to build a new manufacturing plant at Houston. The new plant will more than double its manufacturing capability to meet demand for rig construction chairman C. W. Jen-ness predicted will boom through 1985. It also maintains a manufacturing plant at Deridder.

Eckerd eyeing video outlets Jack Eckerd Clearwater, announced it intends to acquireAmerican Home Video a closely held retailer of home video products headquartered in Denver, through an exhange of stock. Eckerd operates a growing chain of neighborhood drug stores. AHVC has a chain of 61 retail outlets for large-screen projection TVs, video recorders and accessories, 59 of which were opened in 1980. An agreement in principal has been reached, Eckerd said, subject to mutual approval of a definitive contract and confirma-tionof accceptable accounting and tax treatment. Jeans maker files lawsuit SAN FRANCISCO (AP) Levi Strauss the San Francisco-based clothing company that put America in blue jeans, has filed suit against Jordache Enterprises Inc.

charging unfair competition and trademark infringement The suit, filed in U.S. District Court here Friday, charges that the New Vork-based Jordache copied the distinctive rear pocket stitching design that has been a Levi trademark since 1873, as well as copying the pocket tab trademark used by Levi for 45 years. Jordache could not immediately be reached for comment. delivers that cargo, what will he bring back to Shreveport? One of the services Melton provides is locating cargoes which can ease the problem of running empty, which eats up fuel and time and produces no revenue. 18 percent deadhead Last year, on the entire system, "deadhead" trips accounted for only 18 percent of the miles run, said Duncan McRae vice president and head of operations.

It is not an easy achievement, but in a sense it is what Melton is all about. Drivers work on a "first-in, first-out" priority system, which means the operator who calls in from his delivery point, wherever it might be, gets first choice of loads waiting to be picked up, to be brought back to Shreveport or carried to some other point. "Of course," the younger McRae smiled at a question of whether the firm ever hears from drivers who feel somebody lower on the list than they got assigned a more profitable, or more desirable, cargo. "But we're ready for them." Tony McCarty, who spends his days matching drivers and cargo assignments, went through the system designed to keep the company skirts clean of any hint of favoritism. He works at a video display terminal hooked up to the computer, which keeps a running record of the times drivers report in, their assignments and destinations, and stores it in the memory bank.

Orders and assignments are also recorded on time clocked tickets which are kept available for inspection. "I couldn't cheat if I wanted to," said McCarty. For all that the contractual relationship between Melton and the operators is spelled out in writing, the company works hard at maintaining a high sense of teamwork. There is a company publication, a gala dress-up dinner meeting each year with safety as its theme, and an open door policy. may ask humans Louis Rukcyscr "Nervous! I'm the one who's getting nervous!" says C3P0, who truly is looking about as jittery as a collection of nuts, bolts and microprocessors can be.

"It's not as if we really had any ambition to take over in the American factories. I've never known an ambitious robot yet. Why, there are only 120 of us' in all of General Electric, and we perform only the most boring or Development Action grants of approximately $300,000 for downtown projects, including upgrading property in the vicinity of the Regency. The Werner Co. of Shreveport is contractor for the addition, which will include a six-story tower to be added at the north end of the present building.

The tower will include 48 new guest rooms. Two additional meeting rooms will be converted on the first floor from existing guestrooms, and a private dining room will be placed in the Windsor Room restaurant. The Regency's lobby will feature a gift shop and a larger front desk area, both reflecting anticipated increase of occupancy. A parking ramp will be built to increase available free parking on the site to complement the existing facilities, (Times graphic) if if i- 1 1 T'LM Work robot relief from Two industrial robots are taking a lunch break. "It's not fair, R2D2," says one, his electronic eyes flashing angrily.

"In other countries where they use robots even more, like Japan, we have a certain prestige. People recognize that we're important, and desirable, in. boosting productivity. Here in America, though, we're just one more subject for labor-management disputation. It's enough to make a self-respecting robot want to break his circuits." "Now, calm down, C3P0," replies his partner.

"These Americans aren't all bad. They're just kind of old-fashioned about industrial progress, and they get nervous about new ideas." over routine functions more efficiently, actually provided more and better jobs fo American humans. Those were the days when living standards in this country really were improving. I know that for Silicon Valley's sake and, I wasn't even a pile of aimless electrons back then." "Of course you're right, C3P0," his metallic friend replies, "but there's no sense getting so emotional about it. Honestly, you sound just like a human.

And by the standards of their own labor-management history, the Americans have so far been almost rational about the introduction of robots. Industrial managements know we're part of the wave of the future, but they're trying to be discreetly quiet about it, and the unions themselves are making an effort to negotiate about us rather than just angrily and flatly oppose our introduction. When they see that we actually help to increase jobs, they may even get to like us a little." "I'll bet!" retorts C3P0, who in truth never has any money with which to turn such earthling expressions into reality. which did not involve an ownership change. In addition to Smith and Koch, who is a vice president, officers of Lake Street Associates include: "You know what far-off galaxy, that dream comes from! Besides, this part bf my point.

Everybody is worrying about what effect robots will have on humans. Isn't it about time somebody started worrying about what effect humans will have on robots?" V- "What in the world of miniaturization can you possibly mean by that?" asks R2D2. 'X "Well, first of all, we don't have a union," says C3P0. "Second, we're not allowed to own stock. Third, we have no Social Security card or unemployment insurance, and even if we develop the worst case of busted chips and rusted exteriors in the history of the assembly line, we'll never be eligible for Medicare.

Fourth, I'll bet you we're now the only minority in America that doesn't have special protection under the law. And, fifth and finally, R2D2, have you taken a look around this room? We're the only ones here who haven't been served any lunch. 'Robots of the world, I say. The whole situation is positively "But so are we," says R2D2. "Oh yeah," says C3P0, and subsides.

O. D. Harrison, chairman of board; W. C. Rasberry, vice-president; W.

Clinton Rasberry secretary, and O. Delton Harrison treasurer. All are Shreveporters. "A driver can walk into any office in the building, at any time, without an appointment," said a former employee. "And he'll be greeted by his first name, too." Duncan McRae who is called "Dune" on the premises to distinguish him from his father, said the greatest strength from the relationship is that it makes it unnecessary to worry about supervision of the running rabbit units on the highway far from home.

"There's no way we could supervise that many drivers as employees," said Dune. "It's best to have an entrepreneur at the wheel." On the other side of the coin is the relationship a carrier like Melton must maintain with shippers, and that depends on an ability to provide the service the vehicles and the operators to move cargoes when they are ready to be moved. It is Melton's proud boast that the dangerous jobs, yet already the International Union of Electrical Workers if talking about making us a major bargaining issue next year. It's outright discrimination, I say." "Throttle down," says R2D2. "Put your semiconductors on only semi-indignant.

So far all the union has said to GE and Western Electric is that it wants more advance notice and retraining for workers affected. That's not exactly the same as advocating robot genocide. Even the United Auto Workers, which already has retraining rights yet is worried about what it calls a 'massive influx' of robots, is pressing only for more job protection." "Hmmmph!" snorts C3P0, his computers crackling. "That's just what I mean. These Americans never learn anything.

Aren't they programmed with any memory at all? Why, it was barely a generation ago that the same argument was going on about with the same sorts of complainers saying that new machines would put people out of work. Then they found that the tools of mass production, by taking Smith said. The expansion will bring Lake Street Associates' investment in the Regency and the Chateau Motor Hotel nearby to a replacement value of $10 million, Smith said. He said company's growing investment reflects the investors' interest in the future of Shreveport and its downtown. Architects for the Regency expansion are Bradley-Miremon of Baton Rouge, represented by Shreveport native Stewart Slasck.

Bob Koch, general manager of the Regency, said the expansion will enable the hotel to "fill current needs which result from Shreveport's entry into a new level of convention marketing" with opening of the Exposition Hall. Bill Fountain, executive director of the Downtown Development Authority, said the investment Lake Street Associates "may release some federal funds for renovation and construction of curbs, streets and sidewalks on Commerce, Lake and Spring Streets plus streetside parking, lighting and other improvements on Commerce." R. J. "Dutch" Ducharme, general manager of the Chateau, said this first of the two motor hotels is getting prepared for an expected increase in occupancy from convention activities. "Funds have been pledged to a continuing refurbishment program at the Chateau," he said.

"We have replaced draperies and bedspreads in the guestrooms, installed new carpet, and new furniture will be purchased soon. "Both motor hotels are installing AM-FM clock radios and full-length dressing mirrors in the guestrooms." The Regency opened in November 1979 and had what Smith called a "comfortable" first year. It recently became affiliated with the Best Western chain, Regency announces $1.5 million add-on SHREVEPORT METROPOLITAN AREA Total employment, thousands 1 i 1 1 1 150 -149 -jig 1 Jrt---i47 4f 1 Lp I I I I I I I I i I Best Western-Regency Motor Hotel of Shreveport will begin work right away on a $1.5 million expansion which will add 48 rooms and almost double available meeting space, it was announced by Shelby L. Smith, president of Lake Street Associates. One result will be the largest hotel ballroommeeting room in Shreveport-Bossier, Smith said, capable of seating 600 persons for a banquet.

The present 3,300 square feet meeting room is being expanded to 6,000 square feet. "The company is undertaking the expansion because of its confidence in the growth of the Shreveport area and its downtown and the anticipated growth due to the opening of the Exposition Hall," Smith said. At the same time Smith said Lake Street Associates is working with Downtown Development Authority and the City of "Shreveport to seek Urban mi 1 1 1 1 FMAMJ ASONDJ Jan. 1980 Jan. 1981 (Times graphic) i ill 'iff lit' if Retail sales report Total retail sales in Caddo, Bossier and Webster parishes dropped in January 1981 to near $176 million, following a surge in December 1980.

The figures were computed on the basis of sales tax revenues collected In Caddo Parish by the Caddo-Shreveport Sales and Use Commission and in Bossier and Webster parishes by the school boards. (Times graphic) Graphic shows Regency expansion plan.