The Salina Journal from Salina, Kansas on October 6, 1996 · Page 19
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The Salina Journal from Salina, Kansas · Page 19

Salina, Kansas
Issue Date:
Sunday, October 6, 1996
Page 19
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9 f> SUNDAY roeeKe, 1 THE SALIVA JOURNAL BRIEFLY Tree-moving business opens in Lindsborg LINDSBORG — Smoky Valley Tree Spade and Nursery has opened in Lindsborg. The business, owned by Jeff Chambers, specializes in moving mature trees. He has machines that can lift a 12,000-pound root- ball and accommodate trunks up to 12 inches in diameter — about 18 to 25 feet tall. Chambers has access to a variety of trees, including oak, ash and more than 9,000 Scotch and Austrian pines. The phone number is 913-2273111. Medina Construction makes top 500 list Medina Construction among top U.S. remodelers Medina Construction Co., 211 E. Walnut, was listed among the top 500 remodeling companies in the nation by Qualified Remodeler magazine. The construction and remodeling publication ranked Median Construction at 172nd place for sales in the September issue, up from 230th place the year before. PERSONALS Attorney Seibel takes job with Hays firm HAYS — Stacey Seibel has joined Lewis, Rice and Fingersh at the law firm's Hays office. She specializes in estate planning and small business planning. Seibel is a University of Kansas School of Law graduate. SEIBEL May joins Salon 1 staff Martina May has joined Salon 1,1823 S. Ninth, as a stylist. She formerly worked for Snip N' Clip at 2336 Planet.. Davis manages Dillon Superstore in Salina Lydia Davis has been named manager of Dillon Superstore, 2350 Planet. She previously was store manager at Dillon Southgate at 2012 DAVIS S. Ohio. County offices have promotions, hiring ! Saline county has announced ;three staff changes. •"•'• Merlene Knipp has joined 'the community corrections department as a case manager, supervising drug offenders. Knipp most recently worked at Central Kansas Mental Health Center, 809 Elmhurst. • Carnell Egana has been promoted to senior correction officer at the sheriffs office from correction officer. • Larry Brock has been promoted to heavy equipment operator at the road and bridge department. He formerly was a dump truck driver. Weiser leads state chamber execs Don Weiser, senior vice president of the Salina Area Chamber of Commerce, has been elected president of the Kansas Chamber of Commerce Executives. KCCE is made up of chamber managers and staff from Kansas. From Staff Reports - Airfare comparison D«itlnatlon FromSallna From Wichita WEISER Orlando BwFn Boston .mm Miami 238 17§ 284 261 246 365 •878 291 All litres are USAIr and show the cheapest prices if tickets are bought three weeks In advance. Fares from Kansas City to these cltlss are $40 less than fares from Salina. Destinations are ^ v """\ the most popu- ^ lar ones for VSAIr. Money CLASSIFIED / INSIDE c At ;t-H B WAT £ ft COOLER Keep it short The most important rule of etiquette in voice mail is to keep your message short and to the point. Kim Zoller, who conducts seminars on communications, warns that long-winded messages can irritate customers, and she notes that "the telephone call is often the first point of contact" in a business deal. She suggests talkative types leave themselves a very long message, "and see if you like listening to it." The world on CD-rom If you've missed a few issues of National Geographic over the years, you'll be able to catch up with them next year, when the magazine issues a CD- ROM with all of its stories and pictures from its first 108 years. The software, scheduled to be released next summer, will also have some of the different kinds of ads that have run in the magazine over the years. Shopping and hospitals Hospitals can be boring, scary and depressing, for visitors and patients. But consultants at Arthur Andersen say medical centers can be interesting and entertaining if they install shops and restaurants for patients' family and friends to visit instead of a dull waiting room with outdated magazines. A few hospitals already have facilities beyond the standard gift shop and cafeteria, and they can be money-makers. "Honorbuilt made six vehicles per week when they were here ... but we'll double that number within three months." Mathew Perlot SMC Corp. chief executive With new owners and an aggressive plan for growth, Minneapolis' RV factory is ON THE ROAD AGAIN By ALF ABUHAJLEH The Salina Journal MINNEAPOLIS — An Oregon recreational vehicle manufacturer is giving the once popular El Dorado motor home a second chance at a newly acquired plant here. SMC Corp., which purchased Minneapolis-based Honorbuilt in June, has invested $433,000 in the SMC Midwest manufacturing plant, and an additional $500,000 will be spent before the end of the year, said SMC chief executive Mathew Perlot. The money will help beef up production of El Dorado motor homes at the 175,000-square-foot plant. The first El Dorado was built at the Minneapolis plant by El Dorado Motor Corp. in 1960. The motor home enjoyed its heydays in the early 1980s, when production stood at 15 vehicles a week. But sales started to drop by the late '80s, and the company filed for bankruptcy in January 1990. In November the same year, the firm reorganized and reopened under the name Honorbuilt Inc. But production of the El Dorado never took off again. "Honorbuilt made six vehicles per week when they were here and that's what we are doing right now, but we'll double that number within three months," said Perlot, who took over the helm June 14. "The resources are sufficient, and the labor force is ready." Perlot said the plant will produce about 20 El Dorado motor homes a week by year's end. SMC has 1,300 employees in five plants in Oregon that manufacture luxury recreational vehicles that cost between $65,000 and $375,000. The Minneapolis plant makes only the El Dorado motor home, which is smaller, carries less equipment and costs between $20,000 and $25,000, Perlot said the plant will hire about 250 workers over the next three to five years to meet the demand for the El Dorado. The plant employs 132, a 60 percent increase over Honorbuilt's staff of 83. SMC has a network of 86 motor home dealerships, spanning the United States and Canada. Dealers have to wait four to five months to receive their shipments of El Dorado motor homes. That's a long waiting period that eventually will scare off buyers, Perlot said. There are plans to expand the production line at SMC Midwest. A motor home model called Safari is expected to roll off the assembly line within the next six months, Perlot said. "When we bought Honorbuilt, we got a great brand name in El Dorado," Perlot said. "The Safari, however, has been very successful in the past couple of years." SMC Corp., founded in 1987 in Eugene, Ore., boasted revenues of $148 million and profits in excess of $4 million in 1995. The company sold about 2,500 motor homes last year. In 1996, Perlot hopes to raise revenues to $205 million by increasing sales to 3,500 vehicles. SeeRV, PageC2 Photos by DAVIS TURNER / The Salina Journal One of the main reasons Oregon-based SMC Corp. bought Honorbuilt this year was the potential local work force. The company plans to hire another 250 people to make recreational vehicles within the next five years. The work force already has grown from 83 to 132. Tale of two companies i ' > JEl Dqra^o^a^fo'uridejcl as .Moriorbujlt jrj , Minneapolis to build,campers; Its name was ; ^changed; tQ 6J Dprado; The opjripany, ; expanded,and built passenger buses in Salina •; and kepVbulldlng recreational vehicles at Minneapolis. ,> v ''•«. ';' • V. (Ttj'pr Industries bought the bus division of El dqC Jfle RV division went bankrupt. . The original founders of El Dorado opened .Honorbuilt to .build campers. (El Dorado originally was Honorbuilt but changed its name to El Dorado.) The new Honorbuilt was sold this year to SMC Corp. El Dorado Natipnal, owned by Thor , Industries, makes buses in Salina. T STAYING AHEAD What to do when old savings bonds mature Source: USAIr Journal Graphic Because interest is dropping, Treasury securities may be best bet for long-term savers NEW YORK — If you're holding some Series EE Savings Bonds that still pay a guaranteed 7.5 percent interest, tell them hail and farewell. The last of those excellent bonds reach maturity next month. Their new guaranteed rate is dropping down to 4 percent. All bonds more than 40 years old have stopped earning interest entirely. All bonds issued after November 1965 stop earning interest 30 years from the issue date. Those bought in 1966 are gradually running out this year. So check for old bonds in your safe-deposit box or among the papers of elderly relatives. More than $2.3 billion have never been redeemed. The question is, what to do with these bonds, both those now dropping to a lower JANE BRYANT QUINN The Washington Post * interest rate and those that are earning nothing at all. Where else can you get an acceptable, safe return? And what if you're about to retire and want an investment that pays interest in cash? E and EE bonds don't pay out cash. Their earnings build up internally, payable only when the bonds are redeemed. A common solution, for people who want current interest and for people whose bonds have expired, is to roll their investment into Series HH bonds. After expiration, you have one year to make the switch. The rollover defers the tax on the interest your E and EE bonds have earned for up to 20 years. You'll owe taxes only on the 4 percent annual interest that HH bonds pay semiannually. But HH bonds are often a poor choice, says Daniel Pederson of The Savings Bond Informer in Detroit, who analyzes savings- bond holdings for a fee (800-927-1901). Many people can increase their incomes by handling their bonds another way. Here's the best choice, for savers who want their income government-guaranteed: Sell your E or EE bonds, pay the tax and use the proceeds to buy 20-year Treasury securities. That's the same maturity you'd have with HH bonds, but you'll earn a higher income after tax. v As an example, assume you own EE bonds worth $31,000 that you've held for 10 years. Rolled into HH bonds, they'd yield an income of $1,240 a year. But if you redeem them, pay the tax and buy 20-year Treasuries at 7 percent, you'd earn $2,020 annually in the 15 percent federal tax bracket, Pederson says — $780 more than the HH bonds pay. The same holds true for all the other brackets. Even in the top, 39.6 percent bracket, 20-year Treasuries would pay $1,740, which is $500 more than the HH bonds do. If selling all your EE bonds at once will put you into a higher bracket, sell them over two years or more. You might dispose of half of them in December and another half in January. You can buy Treasuries directly from the Federal Reserve Bank, at no sales commission. For information, call the Fed at 202-874-4000 or your nearest Federal Reserve branch. On the Internet, look for Treasury Direct on the New York Federal Reserve's Web site, Like EE bonds, Treasury bonds pay interest that's exempt from state and local taxes. Only federal taxes are due. There's a second choice, for people who don't want to switch to Treasury bonds. You might keep the EE bonds as long as they're still earning interest, and cash hi enough of them each year to create an in-. come for yourself. You could cash in roughly enough of the EEs to create the same income you'd get from Treasuries. • Only part of each bond redemption is taxable; the rest is a nontaxable return of principal. Selling your EE bonds, paying the tax • and buying Treasury bonds is the best ', choice, by far, for people in the 15 percent [• and 28 percent brackets, and it's marginally better for those in the 33 percent bracket. In the top, 39.6 percent bracket, it's better to keep your EE bonds, if they're still paying interest, and cash in some of them, every year. There is no scenario where it's better to' switch to HH bonds, Pederson says, as long as your tax bracket remains constant. The switch might work only if you're dropping to a lower bracket. People may switch anyway, because pay* ing current taxes makes them break out ty a rash. But that's an expensive allergy. ; Smart investors bite the tax bullet and go for the best possible return. SUGGESTIONS? CALL MARY JO PRQCHAZKA, MON|Y EDITOR, AT (913) 823-6363 OR 1-800-827-6363

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