Press and Sun-Bulletin from Binghamton, New York • 18

oney Report Dow down 5.70 Amex down 0.43 NASDAQ up 2.04 8B Press Sun-Bulletin Wednesday, August 8, 1990 i ii High-flying developers hit hard in N.Y.C. Significant gains reported at RRT Resource Recycling Technologies Inc. reported sizable gains in revenues and earnings in the second quarter on improved results at ness, was forced last year to renegotiate $2.5 estimated $130 million in debt. He filed for new complexes. Others are pulling out of pro By JAMES KIM Gannett News Service NEW YORK Donald Trump may grab the headlines in this city, but he's not the only developer victimized by the city's newly cruel real estate market.

The city economy is aching. De million in loans from Marine Midland Bank after missing debt payments. He also had to scrounge for a partner to prevent Fidelity New York from foreclosing on various lots along 14th Street. Lack of financing has stalled his plans for a $500 million complex complete with mall, luxury hotel, condos and theaters near the East River. Leonard Stern, pet food baron (Hartz Mountain is among the luckier ones.

Two years ago, he planned to build a luxury See DEVELOPERSPage5B personal and corporate bankruptcy in February, vacated his offices and handed control of 70 apartment buildings to a trustee. "Suddenly, it all goes down the tubes," he says. Other real estate bigwigs, some dangerously close to Gin's fate, are determined to fare better. Consider Jeffrey Glick, "The Man Who Would be Trump," according to Manhattan, inc. He's apparently lost his touch after successfully developing several condominiums on Manhattan's glitzy East Side.

Glick, who followed his father into the busi jects. Still others can lind tenants to till complexes. Many are renegotiating debts with their bankers, who for better or worse are lending less than ever to the Big Apple's builders. "Every real estate guy I don't care who he is has got to be having problems right now," says Mic Williams, a New York real estate consultant. "The question is: 'To what At the most unfortunate extreme: Abram Gin, a well-known apartment owner whose rental income couldn't cover the interest on an mand for new space is flagging.

Bankers are tighter-fisted. And a bevy of big de velopers are accordingly waicnmg ineir dreams of adding to Manhattan's skyline turn slowly into financial night mares. Some can't find the financing to build several divisons. The Vestal-based recycling company reported second quarter earnings of $309,000, 12 cents a share, up from $77,000, 2 cents a share, in the same period last year. Revenues for the period ended June 30 were $6.3 million, compared with $3.8 million a year ago.

Lawrence J. Schorr, RRT president, said the gains came as a result of seasonal improvements in the company's Deposit Legislation Division, contributions from its new Plastics Division, a 50 percent interest in an equipment manufacturer and reduced losses in the Municipal Recycling Division. For the first half of the year, the company reported earnings of $1 19,000, 7 cents a share, on revenues of $1 1.6 million, compared with earnings of $23,000, a loss of 76 cents a share, on revenues of $6.7 million. The per-share loss last year came as a result of the payment of preferred stock dividends. "A great deal of groundwork has been laid which will enable RRT to more fully capitalize on opportunities within this burgeoning industry," Schorr said in a prepared statement.

Link cuts nine employees Link Flight Simulation Corp. in Kirkwood laid off nine workers Monday because of lack of work, a company representative said. Robert Goerlich, company spokesman, said the laid-off workers included both admininistrative and manufacturing employees. He attributed the layoffs "essentially to lack of work." Bank tries to improve housing By MARTY DOOREY Business Writer When Alphonso Whitfield Jr. comes to Binghamton, it's not the same town he left in 1964.

Now, however, Whitfield, a vice president of the Federal Home Loan Bank of New York, is in a position to do something about the decay he sees. Whitfield, who was born in Binghamton's First Ward and once taught at the former Binghamton North High School, currently directs the Home Loan Bank's Community Invest Goerlich said the plant now employs slightly "-V i' av; it NSn. -jr. I 1 I -J' ment Program. His job is to help the bank's 258 stockholders thrifts and savings and loan institutions in New York, New Jersey, Puerto Rico and the Virgin Islands finance affordable housing programs in their communities.

"There is indeed a problem in Binghamton," Whitfield said Tuesday during remarks to about 70 members of 1 more than 2,200 workers. In March, the company laid off 45 workers in Kirkwood, plus an additional 70 at its sister plant in Sunnyvale, Calif. At the time company officials at Link's parent, CAE Foam maker sets up shop in First Ward From staff reports A company that makes foam chair seats has plopped itself down in Binghamton's First Ward. Crain Industries of Fort Smith, will employ 50 workers assembling polyurethane cushioning products for the furniture, bedding and floor covering industries in Vail-Balou building at 1 87 Clinton St. The new company was introduced by Binghamton Mayor Juanita M.

Crabb at a City Hall press conference Tuesday. Leon E. Cook, who will manage the plant, said the foam products are made at a Crain plant in Indiana. Foam will be trucked in and fabricated according to contract specifications. "We'll be aggressive in manufacture and retail," Cook said.

Cook said the company is leasing space in the former book binding plant from the building's owner Charles Contro. Crain's lease is for five years with an option to renew, Cook said. Vail-Balou has moved to new quarters in the Kirkwood Industrial Park. Cook said that if the company is successful, it could add up to 30 additional workers. He said he looked at sites in Apalachin, the Kirkwood Industrial Park, Port Jervis and Middletown, plus sites in Montrose and Scranton before settling on the First Ward location.

He said the Binghamton area is a high tech area that uses a lot of packaging materials. The First Ward site was ideal because of the good lease terms and proximity to the bus line. Crabb said, "I'm pleased that they will be offering new jobs to local families and I'm thrilled that they've chosen the City of Binghamton to expand in." Consumers credit cautious Americans took out $463 million more in consumer credit they paid off in June, the government said Tuesday, but the borrowing pace fell well below that of May. Many analysts have been concerned recently over the caution displayed by consumers, who have fueled an economic expansion. Consumers represent about two-thirds of the nation's economic activity.

The Commerce Department said consumer credit edged up just 0.8 percent at an annual rate following a 6.1 percent gain, or $3.65 billion, in May. The slowing resulted in part from a 6.6 percent decline in automobile loans, down from a level of 1 .58 billion in May. The May rate of growth had been unchanged after an 8.2 percent decline in the previous month. The figures are adjusted for seasonal variations. At the same time, revolving or credit card debt gained $1.3 billion, a 7.6 percent advance at an annual rate.

The advance came on top of a 18.8 percent increase in April. Bank and credit union loans not secured by real estate rose $827 million, a 4.8 percent annual rate after gains of 2. 1 percent in May and 4.0 percent in April. Alphonso me Binghamton Rotary Whitfield Club at Ramada Inn in Binghamton. "You can see a decaying of the neighborhoods," he said, talking about what he sees on visits to his parents home at zu Everett St.

Projects that Whitfield works with are funded through member banks of the Home Industries Ltd. in Toronto, attributed the layoffs to its continuing restructuring efforts. In February, 10 workers were let go when the contract they were working on expired. Link makes aircraft training simulators used by the military. Lilly plants cited Three Eli Lilly Co.

plants in Puerto Rico failed to follow federal regulations on manufacturing practices last year, according to inspection reports released by the U.S. Food and Drug Administration. No products were recalled, and the Indianapolis-based pharmaceutical company agreed in January to a schedule for making corrections. "We believe the steps we have taken have resolved those issues, and we continue to work with FDA inspectors to ensure our practices comply with all existing regulations," said Lilly spokesman Edward A. West.

Loan Bank. In the Binghamton area, member banks include Binghamton Savings Bank, Citi zens Savings Bank of Ithaca and hirst hederal Savings Loan of Rochester. These banks, workine with municipalities and not-for-profit groups, borrow subsidized funds from the Home Loan Bank and use the savings to pro vide subsidized housing. Most of the loans are 'leveraged or combined with lederal, state and local grant mony to make the projects work. "One of the things making our job more CHUCK HAUPT PHOTO difficult in New York and New Jersey is that the public money is drying up, Whitfield said Bring in the reinforcements IN THE TIER During the past year, Whitfield has been Andv Andrews of Marathon Steel ties up reinforcement rods in workine with member banks and communities to review affordable housing programs eligible to share in $78.7 million in grants mandated the foundation of the new GE Aerospace North facility in the Broome Corporate Park in Conklin.

Garbade Construction of Vestal is building the manufacturing plant for scheduled opening in April of next year. It will employ about by Congress as a part of the law authorizing the savings and loan bailout. The New York 500 people. See BANKPage 5B Victims must wait in line for share of the fraud fine pie uting the money will be the lawsuit. The SEC Remember Fred Lee? Dennis Levine? Mar tin Siegel? If vou're still not with me, let me add some names that may be more familiar: Ivan Boes-ky, Michael Milken, Drexel Burnham Lam bert.

Roy M. Sleeper, formerly of Binghamton, has been appointed marketing manager for Calocerinos Spina Engineers in Liverpool. He was previously with H.B Fuller Co. in the Monarch Division as the Northeastern sales manager. Shirley A.

English and Sandra T. Masick of English Financial Services recently participated in the 10th annual retreat at the University of Rhode Island sponored by the Institute of Certified Financial Planners. Lincare Inc. of Vestal was recently accredited by the Joint Commission of Accreditation of Healthcare Organizations. The changing scene Scott Orin Carley, 32 Montour Binghamton, is doing business as CM Remodeling at the same address.

Ronald B. Lake, 1 80 Matthews Binghamton, and Dennis F. Lockhart, 249P Maplewood Drive, RD3, Binghamton, are doing business as Enterprises, Broome County. Robert Joseph Finch and Robert John" Finch, 1537 Grange Hall Road, Kirkwood, and James Parrillo, 29 Massachusetts Johnson City, are doing business as RJR Investors. 29 Massachusetts Johnson City.

Questions or comments? JANE BRYANT QUINN has not yet tiled a disgorgement plan ior tne rest of the Boesky fund. Among the other pots of money that some day may become available: More than $20 million, principally from Taiwanese national Fred Lee, who is now a fugitive from justice. It will eventually be distributed to people who sold any of 17 specified securities or call options on specified dates in 1987 and 1988, with the largest sum available to sellers of Staley Continental. To find out if you may be entitled to share in any of these disgorgements, call your broker. If he or she is out of business, call Jim Newman's customer-inquiries number, 201-569-9783.

Also, read the financial press: Lists leading to the lucky winners will be published when disgorgement is finally accomplished. And make sure that your stockbroker has your latest address. There must be a better way, but offhand I can't think of it. Quinn is a Washington Post columnist who appears Wednesday in the Press However they get distributed, the disgorgement sums are huge. The late, unlamented Drexel Burnham paid $300 million to the Treasury, as a criminal fine, and another $200 million into a fund for investors and other claimants.

Another $150 million is still owing, which the SEC is ing in bankruptcy proceedings. "We expect to get the money," Goldsmith says. When junk-bond king Michael Milken comes up for sentencing, he'll pay a $200 million fine to the government and $400 million into a disgorgement fund. To collect from that fund anytime during the first six years, however, an investor will have to get a legal judgment or settlement arising out of Milken's Drexel-related activities. Of Ivan Boesky's $100-million give-up, half went to the Treasury to pay his criminal fine.

The other half, set aside for investors, has grown to $63.5 million. A plan disgorging nearly $30 million of Boesky's money was approved just last month. Trades in six securities are covered, on certain dates in 1985 and 1986. But all of these claim- ants are joined in class actions against Boesky, Goldsmith says. So the mechanism for distrib All were guilty of some sort of securities fraud, especially illegal insider trading.

All have been forced to disgorge their dishonest profits. Those funds will be used to repay investors who were defrauded. Disgorgement plans are drawn up by the Securities and Exchange Commission and approved by a court. But, says Barry Goldsmith, the SEC's deputy chief litigation counsel, "It's easier to get the money than to get rid of it." What with the complications of trying to divide the money fairly, the ongoing court cases, and claimants coming out of the woodwork, no funds have yet been paid out to investors. Furthermore, qualifying for payments will be harder than you think.

The theory behind insider-trading restitution is that, had the sellers of the stocks known what the insiders knew, they would have hung on to their shares to earn higher profits. Hence, they were defrauded by the swindlers who were operating on inside information. But you won't get paid just because you were trading the same stocks that the crooks were. You have to have sold certain, specific securities on the specific dates listed in the SEC's disgorgement plans. If you kept your securities at your brokerage house in a "street name," only your broker may be able to tell you if you're eligible.

"If you bought through the bankrupt Drexel Burn-ham Lambert, will the skeleton crew that's left there notify you?" asks James Newman, publisher of the Securities Class Action Alert in Cresskill, N.J. For matters regarding the Money Report, call Business Editor Jeff Platsky, 798-1 178. EXCHANGE RATES CREDIT RATES MARKETPLACE DATABANK The following listing (hows the value of world currencies in relation to the dollar at the close ot trading in New York. For example, it took 150.90 yen Wednesday to equal a dollar. GOLD $384.50 MMM.

I DOWN SILVER Yen: 150.90 Monday: 150.35 British Pound: 0.5343 Monday: 0.5340 Year In Percent Tuesday Monday ago 10.00 10.00 10.50 DISCOUNT 3-MOsTREAS. gg bills TREAS' 7.63 7.52 7.75 oYtRE8treas- 8.52 8.3B 7.94 goNYDRsTREAS- 8.78 8.65 8.07 gAL 6.35 6.25 6.60 AMERICA'S TOP TRAVEL AGENTS (By locations, 1989) 400 fr? Carlson is formerly Ask Mr. Foster Travel Service 300-i si j- 2 2oo- 4br ana I ILL fl- I III fhl MUT ilrAl iHfl iiTlri.i L'ill i "lomci: BUSINESS TRAVEL NEWS '4j 'it BOYER GHAKHC FOUR YEAR NEW CAR LOAN Binghamton Savings 11 95 BCT Federal Credit Union 12.00 Chase Lincoln First 12.25 CitizenaTSavihgs 1175 Endicott Trust 12 25 FirsTFederal 1225 GHS Credit Union 10 5 IBM Credit Union 9 75 Key Bank 1150 Marine Midland 11 .25 Owego National 12 70 Astoria Savings 12-0 Peoples NationaTBank 11 50 Sidney Credit Union 11 50 Tioga Sla'te Bank 12 40 German Mark: 1.5875 Monday: 1.57875 French Franc: 5.3230 Monday: 5.2890 INVESTOR'S TIP Morgan Keegan Co. is recommending stock in Service Merchandise Co. (SME), a leading catalog showroom retailer that operates 336 stores throughout the nation.

SME's per-share earnings are expected to rise 27 percent, to $1 .50 in 1 991 boosted by gains related to the company's restructuring plan and strong demand for SME's higher priced jewelry, the brokerage Canadian Dollar 1.15125 Monday: 1.14955 Italian Ure: 1,162.25 Monday: 1,154.50 'supplied by Dean Witter says..