News-Journal from Mansfield, Ohio • 16

Newi Journal, Mansfield, 0. Sunday, January 29, 1989 2-b Monoymattcrs Digest Famous forecast worth Fast 4-year employee tops every penny it costs MANSFIELD The Window Place, a retail division of The Window Man of Mansfield has named Clint Frampton as the company's top employee of the fourth quarter. By Louis Rukeyser OK, folks, here it is, free for noth Frampton is a four-year employee with the firm. ing and worth every penny: the Rukeyser 73 r) one newspaper column each year that really tells you where the stock market is going. You see, I'd always figured that FRAMPTON the writers of market newsletters had to be among the world's greatest philanthropists.

These geniuses, who Economic workshop offered COLUMBUS The Ohio Basic Economic Development Course, a had (they assured us) solved all the mysteries of finance and investing, would divulge them to us peons for a five-day workshop, will be offered March 19-24 at The Ohio State Uni versity, Columbus. Columbus consultant James M. Jennings, who par ticipated in the News Journal's Economic Outlook Panel discussion in July, will be in charge of the program. mere couple of hundred bucks per annum. The only trouble was, once you had shelled out, their luck seemed to run out.

Topics include financing, advertising and promotion, sales strategy, regional economics, international trade and business retention and So I set out, some years ago, to see expansion. Industry and utility representatives, state and local govern if I could come up with even sillier "indicators" than the ones of which ment officials, development specialists and OSU faculty will be discus sion leaders. American Football League (like the Cincinnati Bengals) wins the Super Bowl, the market will be down that year; if any other team (like the San Francisco Forty-niners) wins, the market will be up. By 20-16, the jocks have voted for the bulls. That might be enough for the light-beer crowd, but we are in-depth researchers around here.

We turn now to the fashion page, to check the length of women's skirts. Shorter (as in the 1920s and 1960s) is supposed to mean higher for stocks, too; longer means frowns all around. The problem here is that women have gotten so independent of stylistic dictates that just about any length can be found somewhere. Forecast: an up-and-down market on which we'll have to keep a very close eye. Finally, we have our "surely ought to be patented" food-page indicator, in which we check the ads for Chinese New Year dinners.

We discovered this one (arguably the best of the bunch) in 1981, which was the Year of the Chicken and which turned out to be a great time to hide in money-market funds. This year, we find, will be the Year of the Snake, which I'm told is traditionally associated with prosperity. That's certainly a nice thought, but let's hope that somebody else is the one who gets bit. In summary, then, and against all the odds, the outlook is for a record eighth straight up year for stocks -but with several different legs and an occasional hiss. Remember you read it here first, and don't forget to renew your subscription.

(c)tMfLouliRuktyMr For information on scholarships for the course or to register, contact they claimed proprietorship, and I promised to give you the results for no charge whatsoever. The results of Jennings at (614) 488-2643. Course sponsors include the Chamber of Commerce Executives of methodology and devilishly high research costs. You have to actually lay out the price of one (1) daily newspaper. So, quick, before my skein of victories joins all the others in the gutter, let's briefly review this so-far-unerring system and see where it points for 1989.

It costs you nothing to read on, and the price, undeniably, is right. As veteran readers are aware, this method requires us only to look at three pages of the newspaper, a task that most literate people can accomplish in well under four hours. We skip Page One, which as always is full of red herrings: political hot air, learned Washington analyses and similar drivel unrelated to the real world of making you money. And, for this day only, we do not need the normally sacred financial page. It likes to print facts, which as all experienced investors know are wholly irrelevant to market performance.

Our texts for this project are the sports page, the fashion page and the food page. On the sports page, we check the Super Bowl indicator, first spotted by former New York sports-writer Leonard Koppett and correct for 20 of the 22 Super Bowl years, or an impressive 91 percent. It holds that when a team from the old Ohio, Ohio Bankers Associaiton, Ohio Chamber of Commerce, Ohio Cooperative Extension Service, Ohio Development Association, Ohio Department of Development, Ohio Economic Development Council and the Ohio Planning Conference. Ex-Mansfieldei joins ad firm I mi.lTMRIlS Pnrmpr Mansfiplrlpr Stpvpn Gabor has joined the staff of Lord, Sullivan From Page 1-B the rest of the chains. Ronald McDonald carries a big stick an $800 million advertising budget and a reputation for consistency.

McDonald's is "slow, steady and always growing," says Mark Brown-stein, a former attorney and owner of the McDonald's restaurant in Arcadia, Calif. More than 90 quarters of record earnings and $4.2 billion in annual profit keeps shareholders happy. Despite a 21 percent share of the U.S. fast-food market and a seemingly ubiquitous presence, McDonald's executives figure the chain still has room to grow. The company has plans to add 500 new outlets every year, many of them overseas.

Franchisees without the Golden Arches behind them have to keep their stores clean, their prices down and hope that the parent corporation doesn't stub its toe. The brand name has to be well-known. Consumers are not particularly brand-loyal when it comes to fast food, since it is what marketers call a "low-involvement decision." As competition for the burger-buying dollar has heated up, Burger King and Wendy's have been tripped up by image problems. Burger King, a division of Pills-bury has had five presidents in six years, and kept changing its message to the public. "We haven't had a concerted marketing effort," says Murray Evans, a Burger King franchisee with 44 outlets throughout the Southeastern United States.

Burger King franchisees flexed their muscle when Pillsbury tried to load itself with debt to fend off a buyout offer by Grand Metropolitan PLC. Grand Met succeeded in acquiring Pillsbury and Evans thinks the buyout would turn things around at Burger King. The trouble at Wendy's isn't hostile suitors. "The problem at Wendy's is they're competing with the best in the business McDonald's," says Barry Ziegler, an analyst with the investment firm Tucker, Anthony R.L Day iaNew York. Currently, 17 percent of all Wendy's franchisees are losing money and not paying their royalties, Ziegler says.

Wendy's lost its momentum after the 1984 "Where's the beef?" campaign and hasn't gotten it back since, he says, and its latest menu addition, an expanded salad bar known as the Super Bar, still needs work. Adding menu items didn't work for Wendy's, but it's at the heart of the success at Jack In The Box, which owned by San Diego-based Food-maker Inc. The chain has 43 menu items, com this saintly offer have been, I submit, mind- (or at least pancreas-) boggling. The prescient forecast a year ago, for example, was for "a stronger market finish than the prevailing pessimists now expect, but with material moves downward along the way and the firebombing of even more highly flammable Wall Street reputations." As everyone from the discredited market gloomsters to Michael Milken can attest, this was, once again, incredibly no, eerily accurate. How can this forecasting method prove so successful each year when others keep falling by the wayside (and at much higher prices)? The answer, clearly, must lie in superior Yoder Inc.

Advertising as an art director. Formerly art director with Michael Flick Advertising in Lancaster, Ohio, Gabor earned an associate degree in visual communications from the Art Institute of Pittsburgh. He currently resides in Lancaster. 1 aw- H7 GABOR Tax breaks could cut borrowing GTE manager promoted companies and financiers would find By Bart Ziegler The Auociated Pre MARION General Telephone North Ohio's operation has promoted Elizabeth M. Dickson to the position of state director-human resources.

Last week in business She most recently was labor relations manager in GTE's Marion office. She has worked at GTE for more than 10 years, beginning in the personnel department in Marion. She has held various supervisory positions both in Marion and in New Philadelphia. Fleischauer joins law firm r' 1 i. fe III I I III I NEW YORK If Congress goes through with its plan to eliminate the double taxation of corporate dividends, the result could be a boost in prices on Wall Street and a reduction in the massive borrowing that has bankrolled the wave of corporate buyouts.

But it is questionable whether the lawmakers will have the nerve to go through with any plan that could reduce federal revenue at the same time they are grappling with the huge federal deficit. Congress is considering two proposals on corporate taxation as part of its examination of the leveraged buyout phenomenon. One proposal would restrict the tax deduction that corporations now enjoy on interest payments stemming from borrowing. The other would ease the levy on dividends, which are taxed both at the corporate level and as income to individual investors. Lawmakers returned to work in January eager to muffle the explosion of corporate debt that accompanied the multibillion-dollar buyouts of major companies at the end of last year.

After a week's worth of hearings on the subject, the combination MANSFIELD Eric Fleischauer, formerly in the civil division of the Richland County prosecutor's office, has joined the Mansfield law firm of Calhoun, Benzin, Kademenos Heichel. Fleischauer received his bachelor's and law degree from Vanderbilt University where he was a Patrick Wilson Scholar, Harold Sterling Vanderbilt Scholar and a member of the Vanderbilt Law Review. He is chairman of the legal redress committee for the Mansfield NAACP chapter and resides with his wife, Mary Sue, in Mansfield. FLEISCHAUER of curtailed benefits for debt and a new tax break for dividends seemed to be gaining favor. It's also the approach preferred by key Bush administration officials, such as Treasury Secretary Nicholas Brady, who are anxious to guard against another calamity on Wall Street like the crash of 1987, which was precipitated in part by talk of changing the tax rules on takeovers.

Proponents of the two-pronged plan say tightening the corporate interest-deduction provision could balance revenue lost from eliminating the double taxation of dividends. But both remain contentious issues. While Federal Reserve Board Chairman Alan Greenspan told the Senate Finance Committee he was concerned about the level of corporate borrowing stemming from takeovers, he said he was opposed to any restrictions on the deductibility of corporate interest from loans and bonds. He said such limits could have unintended consequences that could actually reduce tax revenue and that a way around any restrictions. As for the other proposal, eliminating the double taxation on dividends most likely would lead to price rises in stocks that pay dividends because the dividends would be more valuable.

That, in turn, could have another beneficial effect: making it more attractive for corporations to raise funds for buyouts and restructurings through sales of stock instead of through borrowing. In other major business and economic news this past week: The U.S. economy shook off the effects of the stock market crash and the drought to grow at a robust 3.8 percent in 1988, the best performance in four years, the government reported. The increase in the gross national product was powered by a big improvement in the U.S. trade deficit and a sharp increase in business capital investment.

Meanwhile, Greenspan told a congressional panel that the Fed believes inflation is too high and that it will act to curb it. The Treasury Department suggested a fee of about 25 cents on 1 every $100 deposited in savings and loan accounts to raise money for the government insurance fund backing The proposal encountered immediate criticism and was given little chance of moving ahead. The threat of prison reportedly encouraged at least 30 suspects in the commodities scandal to cooperate in the massive federal investigation of alleged fraud at two futures exchanges. Subpoenas to appear before a grand jury have been served on more than 200 brokers, traders and trading firms associated with the Chicago Board of Trade and the Chicago Mercantile Exchange. pared to 23 at McDonald's.

Jack In The Box regularly introduces new foods, such as the current promotion for taquitos. Personnel director at Peabody Ten years ago, Foodmaker decided not to compete head-to-head with McDonald's as a nationwide ham burger seller, choosing to make Jack In The Box a regional chain serving the adult fast-food market. Its television advertising campaign symbol GALION Dale Schenian, former director of personnel with Ideal Electric in Mansfield, has been named director of personnel for Peabody Galion. Schenian received his bachelor of science degree in business administration from Ashland College, and an associate degree in applied business-accounting technology from North Central Technical College. A native of Green Bay, Schenian and his wife, Ellen, have three children and reside in Mansfield.

ized the change by blowing to bits the chain's clown mascot Boss In the last few years, Foodmaker has begun to increase franchising, selling off its lower volume outlets. Jack In The Box stores sell from 1250,000 to $500,000 for outlets with A SCHENIAN above-average sales, says a company spokesman. Buyers pay a one-time $25,000 fee and 9 percent of gross Adds Hall: "There's nothing worse than your working on what you think is the No. 1 priority and he thinks it's No. 15." What's the management style? Bosses fall into four categories, says Mercer, and you'll need to adjust accordingly.

If you cannot adjust to the new boss' style, priorities and personality, leave before you get fired, says Mercer. The new boss will sense your reluctance, and new bosses don't like to keep roadblocks. Take advantage of the opportunity to look for a better job. sales. From Page 1-B Why was this person hired? Is he or she part of a company or department strategy change? "If he is a change element, it's best to decide what it is he wants to change," says Hall.

What are the new boss' priorities? "Follow your nose. Sniff out what your boss considers important, and do it," says Michael Mercer, a Chicago industrial psychologist who heads his own consulting firm. Jones is a true believer in Jack In The Box. Last year, he had doubts that his customers would go for the chain's "Ultimate Cheeseburger." Interior designer at seminar But he found Foodmaker's market research knew his customers better than he did when the Ultimate MANSFIELD Jeffrey Harris, a designer with Marshall's Ethan Allen Gallery on South Main Street, recently attended an Ethan Allen seminar in Danbury, Conn. A Mansfield Senior High School graduate who joined the Marshall's staff in August, Harris resides in Mansfield.

Cheeseburger became a big seller. "I feel very comfortable with the management team down there. ,1 We've got the momentum going," he says. But even the best-positioned hamburger and fried chicken chains are fighting for customers as growth in HARRIS that area continues to slow, says Joan Vieweger of Perspectives, The Consulting Group in Los Angeles. CD's Bank Issued, Federally Insured Currently offering: 8.85 3 HITS CD" 8.95 6 BITS CD 9X0 1 YEAR CD FSLICFDIC insured CD's Interest paid nemi-annually Other maturities available (6 Months to 10 years) No commission paid by investor For more information on our CD Plus program call Mark Pierce Vice President, Investments 1-800-221-2568 (419)524-2020 24 West Third Street Mansfield, OH 44992 Subject to avaWrtty.

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the Galion Area Betterment Commission. With the Saturday school, it will be more comfortable for them here. It could also influence business growth, Myers added. In addition, he pointed out, the school at the Mansfield branch could catch the overflow from the Worth-ington Japanese school nearly bursting at its seams. The eight youngsters sitting around the two tables at M-OSU on Saturday mornings are far removed from a crowded school building.

They are a disciplined, courteous lot, used to going to school Saturdays as they had in their homeland just a year ago. The oldest ones giggled shyly when asked if they liked the new Saturday school "Maybe," said one. "But sometime w'rl rathr (Wn in digital stereo cassette with 10 Sand I.Q., adjustable steering column, rear defrost, delay wiper system. Come See trie Cor All the Magazines Are Raving About) Wat moving to America is expected to continue and grow. Though American firms are moving to Japan, too, Koizumi said, more Japanese are moving industries and capitalizing others in the United States than the other way around.

The Mansfield Saturday School is likely to have an enrollment surge if Japanese families move to north central Ohio as a result of two Crawford County joint business ventures. Komatsu Ltd. of Toyko joined forces with Dresser Industries Inc. of Galion in August and operate as Komatsu Dresser Co. This month.

General Electric of Bucyrus and Toshiba Corp. of Japan announced their joint venture which will put $25 million into an expansion project "It's likely Japanese production managers will be involved at Komatsu Dresser, and that will involve families," said Ron Myers of School From Page 1-B The combination of American and Japanese studies, experienced by children of Newman executives, will "prepare them to be global citizens," Koizumi said. After returning home from a stint in America, Japanese parents want their children to be prepared. It is easier for the younger ones to adapt when they return home than the older ones, particularly those of college age, Koizumi said. He said it is difficult enough for children who have never left Japan to get into college there, and much harder for a young person who has lived out of the country.

The trend of Japanese business i J24.73J Whitey's Td LJ 529-4000 AT THE AUTO MALL 1493 PARK AVE. WEST.