The Morning Call from Allentown, Pennsylvania • 69

ALLENTOWN, SUNDAY, FEBRUARY 26, 1978 BUSINESS FINANCE CLASSIFIED SECTION without settlements. "It can cost us $30,000 to win a case," observed Kovacs. And David Ward, corporate risk manager at Air Products and Chemicals, pointed out: "A lawsuit could be absolutely spurious, but the company still has to get a good trial lawyer and end up paying $15,000 even before the case gets to the point where the insurance carrier is pressuring to settle for $20,000 and we don't think we owe a cent on the case." ARE BUSINESSES TRYING to evade responsibility for their products' detects? "I don't think industry wants to shirk its reasonable responsibility or not stand behind its products," said Kistler. "But it does want the law and liability claims to be just that reasonable." Mack Trucks, for example, recently lost a case involving a 10-year-old truck which had been modified because the plaintiffs attorney showed newer trucks produced by Mack could "One problem is that our judicial procedure now seems to be more receptive to the thought that consumers and users of products should have recourse against the manufacturer or service company," said George W. Kistler president of the Allentown-based fire protection specialist firm.

And James E. Kovacs, corporate insurance manager at Mack Trucks. added: "Another problem is that the plaintiff or plaintiff's attorney attempts to show he was using the product in a reasonable manner and merely has to come up with a theory as to how a defect could have caused injury he does not even have to prove there was a defect." All a consumer has to do under present law is make an allegation about a product, and it begins costing the manufacturer money, the men said. INSURANCE COSTS HAVE jumped incredibly because of increased lawsuits and claims: Win. H.

Taylor Allentown. legitimate claim, but are finding too many frivolous cases and insurance rates soaring. PRODUCT LIABILITY REFORM is being sought now in the Legislature. Businesses believe reform is necessary to curb abuses and allow them to purchase reasonable liability insurance. Lawsuits have been filed on the basis of injuries received from anything from rebuilt machinery to a new truck.

In the majority of cases which go to a jury, the awards are high to the plaintiff. And even those cases which do not reach court have been costing area businesses thousands of dollars in legal fees. Sen. Henry Messinger, majority whip, said Senate Bill 585, which proposes reform of product liability laws, is now in the Rules Committee and is expected to be reported to the floor within two weeks. ON THE EVE of debate on the proposed legislation.

Lehigh Valley industry representatives are asking the public to take a closer look at the need for such reform. reported that insurance costs for product liability in 1975 were $284. This year, the company's premium is $5,544 an unbelievable increase of 1.852 per cent! And this is without a single claim. Mack Trucks about three years ago paid about $500,000 in annual premiums for product liability. Today the truck manufacturer is paying about $1.5 million a year for the same insurance.

George W. Kistler. last vear paid $3,700 for a base protection of $300,000 plus a $2-million "umbrella." This year the company paid $34,000 in premiums for the same base protection but with a $l-million umbrella. "THERE'S AN UNFORTUNATE situation in having cases tried by a jury," said Richard Giles of Wm. Taylor.

"The jury is composed of average persons on the street who tend to feel overly sympathetic and think a large corporation can afford a large settlement." But lawsuits cost industry money even Legislation seeks to define limits of product liability By WILLIAM D. KULP JR. Business Editor How liable are manufacturers and sellers for injuries sustained by persons using their products? Consumers in increasing numbers apparently believe there is no limit to a manufacturer's responsibility for what it makes, as skyrocketing lawsuits and huge jury awards of recent years indicate. Businessmen, on the other hand, think consumers have a right to recover for a Please See Page D-3, Column 6 i I I I Forum will permit public to bring income tax questions to experts l'f fV 1 if X. 8 Complete this form and mail BEFORE MIDNIGHT FEB.

28 to: FORUM 1040, P.O. Box 325, Allentown, Pa. 18105 Richard C. Subber NAME PHONE. ADDRESS.

CITY STATE ZIP NO. OF TICKETS, (check one) jJ March 11 (1-5 p.m.) March 20 (6-10 p.m.) Newspapers appoint market researcher The Call-Chronicle Newspapers have announced the appointment of Richard C. Subber. 31 to the new position of market research manager. He most recently was editor of the Northampton County edition of The Morning Call.

Subber duties will include establishing a research department to serve the corporation's advertising, circulation and editorial divisions. HE JOINED THE Call-Chronicle in 1966 as a part-time reporter in The Call's Bethlehem Bureau He became a full-time staff member in 1967 and continued in that capacity until January 1977, except for a 1959-1971 tour of PLEASE CHECK THE WORKSHOP(S) THAT INTEREST YOU: Workshop A Individual returns, itemized deductions, interest and dividend income, credit for elderly, etc. Workshop Capital gains, supplemental income, sale of residence, etc Workshop Income averaging, employe business expense, disability exclusion, child care credit, moving expenses, IRA, etc. Workshop Business profit or loss, estimated tax, farm income and expense, self-employment tax, investment tax credit, etc. NOTE: You may check any or all of the workshops listed.

miuiary uuiy As a general assignment reporter. Subber covered Bethlehem citv government and the Joint Planning Commission of Lehigh-Northampton Counties. As editor of the Northampton County edition, he was responsible for supervising the night staff of reporters and photographers and editing copy for transmission to the Allentown news desk. Call-Chronicle Treasurer and Personnel Director By WILLIAM D. KULP JR.

Business Editor Income tax time never fails to create conlusion and mystery in the minds of those who grapple with the well-known federal Form 1040 and its accompanying schedules. The bottom line of all the computations and mental struggling is paying your legal tax liability no more and no less. To help readers find tax return preparation a lot less complicated, as well as giving some dollar-saving hints and strategies, the Call-Chronicle Newspapers and the Lehigh Valley Chapter of the Pennsylvania Institute of Certified Public Accountants are sponsoring a reader income tax forum. FORUM 1040 WILL be a free workshop designed to let you bring your individual income tax return questions to the experts. CPAs who are members of the Lehigh Valley Oiapter and who will be leading the discussions.

The forum will beheld twice, from 1-5 p.m. on March II and again from 6-10 pm on March 20. Either one is free, with the sponsors asking only that you indicate the areas of your tax concerns on the accompanying form and mail it before midnight Tuesday. THERE WILL BE four one-hour workshops at each lorum. allowing participants to find assistance in a number of major tax areas The CPAs will discuss Form 1040 along with specific schedules (such as Dior capital gains and losses or A for itemized deductions), as well as specialized forms such as Form 2441.

Credit tor Child and Dependent Care The workshops will allow individuals to discuss the use of each form, who qualifies, how the form should he completed and get answers to related questions WORKSHOP WILL cover a brief look at Form 1040A. the short form. Form 1040: Schedule A. Itemized Deductions; Schedule B. Interest and Dividend Income; Schedule TC.

Tax Computation Schedule: Schedule R. Credit for Elderly Any Type Income, and Schedule RP. Credit for Elderly Public Retirement System Income Workshop will examine Schedule D. Capital Gains and Isses and Alternative Tax on Capital Gains: Schedule E. Supplemental Income (Pension.

Rental. Estates, etc 1. Form 4797. Supplemental Schedule of Gains and Losses, and Form 2119. Sale or Exchange of Taxpayer's Residence In Workshop taxpayers will be able to review Schedule G.

Income Averaging. Form 2106. Employe Business Expenses: Form 244(1. Disability Income Exclusion Form 2441. Credit for Child and Dependent Care.

Form 3903. Moving Expenses, and Form 5329. ilR Individual Retirement Savings Adjustment WORKSHOP WILL relate to Schedule C. Profit or I)ss From Business or Profession. Schedule KS.

Ileclaration of Estimated Tax; Schedule F. Farm Income and Expense. Schedule SE. Computation of Social Security Sell-Employment Tax; Form 2210. Underpayment of Estimated Tax Individuals; Form 2210F.

Underpayment of Estimated Tax Farmers. Form 346R. Investment Tax Credit Form 4136. Credit for Federal Tax on Gas. Oil and Special Fuels.

Form 4255 Tax on Recomputing Prior Year Investment Credit. Form 486R. Extension ol Time to File Tax Return, and Form 5884. New Jobs Tax Credit The fnrni.it will consist of brirl presentations bv the CPAs but will concentrate on answering audience questions Visual aids will help in examining particular lorms in detail The schedule will provide each workshop or class to begin on the hour in sequences permitting any partu p.int to attend all four subject areas, if he wislies Each session ill be limited to about 30 persons FORUM 1040 will be held in conference rooms at the Call-Chronicle Newspapers Tickets will be mailed to those who return the attached coupon on a lirst cnmc-first served basis Bernard Stinner said Subber's new position is designed to enhance the corporation's ability to provide the best- possible service to readers and advertisers "THE LEHIGH VALLEY is a growing and changing area, sunner said, we want not only to Keep pace nut to anticipate market developments and plan new programs to meet them." Subber said of his new role, "I believe the 10 years I've spent in getting out the news has given me a solid understanding of our product plus experience in judging reader desires and responses "At the same time. I appreciate the tremendous difficulties and responsibilities we have in getting the news to our readers My hope is to comfortably unite these points of view with our circulation and advertising goals." SUBBER IS A 1969 graduate ol Moravian College and holds a A in political science He is married to the former Barbara Treadwell Smith They have one son.

Adam Jason Thursday grand opening planned at Stroud Mall Stroud Mall, along Route 611. Stroudsburg. will observe its grand opening on Thursday. Planned, constructed and leased bv the Montgomery Development Co Plymouth Meeting. Stroud Mall with its 54 tenants will represent the largest retail facility in the Pocono region with a leasable area of 285.000 square feet ANCHORED BY HESS'S.

which opened last sum mer, and JCPennev. slated for opening later this year Stroud Mall will serve a population trade area of 100 000 which previously traveled 30-70 miles to shop in New York. Scranton and Allentown. Grand opening activities will begin at 9 10 a Thunday with a ribbon culling ceremony presided over well into the second quarter even il 'the settlement is approved by the miners and coal mining is resumed before the start ol the next quarter Most of the losses in industry probably can be made up later, and they are not likely to tip the national economy into a new recession But there are human hardships for the coal miners and others that will require some time to overcome, and there have been costs to state and local governments that are becoming increasingly burdensome If the strike were to last until March 15. according to a calculation bv Chase Econometrics Associates, the real gross national product could be reduced by about 6 per cent in the current quarter and the unemployment rate could be increased by about 2 per cent II the shutdnw ol the mines, which began Dec 6.

were to List until April 15. the economic damage would be much greater and might result in layoffs ol as many as .1 million people, the report estimated BUT BEYOND THOSE worries, economists are concerned as to whether provisions to improve productivity and curb wildcat strikes are included in the eventual settlement Strikes and low productivity have been prevalent in coal romneemcrit ot a pact to end the strike, the situation had reached the "edge of a critical as one government economic official put it By late last week, the strike ol 160.000 miners, which cut otf about hall of the nation's soft coal production, was having its immediate impact on industrial production, employment, personal income, retail business and the cost structure of many enterprises in the seven Eastern. Midwestern and Southern states most allected About one fourth of the nation total manufacturing activity lakes place in those states Pennsylvania. Ohio. West Virginia.

Indiana. Kentucky. Tennessee and Alabama Thus, extensive power curtailments resulting from diminishing supplies of coal, which had generally been stockpiled in anticipation of a 90-day strike, would soon be seriously lelt by a wide range of automotive, metal, machinery, utility, textile, paper, chemical and other industrial' operations, as well as their employes, other businesses and residents in those areas THE COMBINATION OF the coal strike and the harsh winter weather has slowed the economy's pace in the first quarter of the vear and doubtless will have lingering effects by Montgomery Development Co principals I.oiiis Meshon and Paul Cohen. Philip I Berman. chairman i the board of Hess's.

Irwin Grecnberg. president ot Mess's, and local officials The mall will be open for business from 10 a to 9 30 daily and from 12 noon to 5 Sunday Stroud Mall tenants include So Fro Fabrics. Walden-books. Kav-Bee Tov tt Hobby. Ranch.

Diana Shop. Endicott Johnson. Deb Shop. Matthews Stationery. Kinney Shoes.

East Stroudsburg Savings and I.oan. Clymer Carousel. Musselman Jeweler. Cargo West. Horns' Fashions.

General Nutrition Center. Ustening Booth and Security Bank ALSO: OLD RIVER Road Bakery. Holiday Hair Fashions. Dipper Dan. Kav Jewelers.

Crown Jewel, Rogers Vision Center. Taste Bud Petropolis Great Expectations. Time Out Family Amusement Center. Thorn McAn. Rea it Derick Drugs Fashion Bug.

Hales Gemstones. Piercing Pagoda and The Perfect iTetzel Opening soon will be Italian Delite. Karpe Insurance. Gvro Den. Music Maker Theaters I.

II and III. Fritter Depot. Burger King. United Penn Bank and The Main Event, a restaurant and club Coal strike will affect major national issues By THOMAS E. MULLANEY Of The New York Times NEW YORK Apart from its near-term economic impact, admittedly considerable in some industries and areas ol the country, the lengthy coal strike of 1977-78 will have some profound and lasting effects upon major national issues The II -week coal impasse is not a hellwcther case whereby the ultimate settlement will establish a pattern for wage bargaining in other leading Industrie this year and next But it has raised potentially significant problems for the future of the whole economv problems as to the long-term energy situation in the t'nited States, inflation and productivity BEFORE PRESIDENT CARTER'S Friday night an Please See Page D-3, Column 1.