The Journal Times from Racine, Wisconsin • 27

Bankruptcy bill faces rough going among conferees By Larry Margauk Associated Press WASHINGTON Legislation to rescue the nation's bankruptcy system may be stalled in a House-Senate conference committee because of controversy over a provision that would bar companies from scrapping labor contracts during bankruptcy proceedings. The House passed the bill Wednesday by voice vote. The legislation keeps' the nation's bankruptcy courts from going out of business later this month. The Supreme Court ruled in 1982 that the bankruptcy courts were run in an unconstitutional manner, but the governing body for federal judges granted temporary operating authority through March 30. The House-adopted labor provision was not included in a Senate bankruptcy bill approved last year.

Difficult House-Senate negotiations will be needed because Senate Judiciary Committee' Chairman Strom Thurmond. R-SC. is unlikely to accept the labor safeguard, according to a Senate source who spoke on the promise of anonvmity. But AFL-CIO lobbyist Ray Denison, speaking of House negotiators not yet selected, said, hope everyone would stand fast." 1 The House bill also included language not in the Senate version that would make it more difficult for people with income-earning potential to avoid paying their debts The bill introduced in the House, sponsored by Judiciary Committee Chairman Peter W. Rodino would have given the bankruptcy judges life tenure, a feature not in the Senate bill.

But in an unusual defeat for Rodino, the House voted 230-161 to have the bankruptcy judges continue serving the 14-year terms they now have. Rodino said after final passage, "I don't think the bill is constitutional' since the Supreme Court struck down the bankruptcy system because its judges had similar powers to other federal judges but not the life tenure that insulated them from politics, i However Rep. Robert W. Kastenmeier. co-sponsor of the victorious amendment against lifetime jobs, said the measure is constitutional because it makes bankruptcy judges subservient to S- district judges 'The labor protection in the House bill was prompted by a unanimous Supreme Court ruling Feb.

22 that allowed companies filing for bankruptcy to cancel collective bargaining agreements that they considered "burdensome." The contracts could be scrapped without waiting for a court ruling. The House legislation requires court approval before any labor agreement is canceled. Even then, the company must demonstrate the contract would result in the loss of jobs and make it impossible for the firm to reorganize under bankruptcy proceedings. Arnold Mayer, a lobbyist for the t'nited Food and Commercial Workers, said it is vital, that the labor provision remain in the bill because if it was separated. "President Reagan, would veto it." Reagan's views on the House-passed package were not immediately known.

Small and large businesses and the con-: sumer credit industry, fought for the provision to stiffen requirements for people to use the bankruptcy laws to wipe out their debts It would permit bankruptcy judges, after finding "substantial abuse." to dismiss so-called "straight bankruptcy" filings, which allow debtors to eliminate (heir obligations permanently. The purpose is to encourage a different form of bankruptcy; called "Chapter 13," which permits a long-term repayment plan Rep Mike Synar. author of the legislation, would "make credit available to people in (ower-and middle-income brackets" who were denied it by firms'stuck with the expense of debtors' unpaid bills. Bysooass More business, page Classified, page 4 Obituaries, page 4 the Journal Times Thursday, Mar. 22, 1984 c-doyse Dems urged to keep 18 interest ceiling taxes Small business hiring surge A recent survey ol small businesses showed plans for employment growth in manufacturing, construction, transportation and professional services.

Agriculture and retail had the lowest levels of planned growth. Planned employment growth and decline in SMALL BUSINESSES, 1st QUARTER 1984 By percent ol companies Manufacturing -I 16 Construction 1 9 Transportation CHaytorD will pay By Kelly Donahue Journal Times RACINE An employee of the hotel management firm that overs- -pes operation of the Clayton House motel at 5005 Washington Ave. said the motel's overdue room taxes will be paid at the end of the month. Joseph Wainkrantz, director of finance for Midwest Hotel Management, Mt. Prospect, 111.

said Wednesday the taxes will be paid when Ali Yusuf returns to the U.S. from the Middle East next week. Yusuf, ofjjowners Grove, 111., is the major partneT-nT a limited partnership called Clayton House Motel of Racine that operates the 78-unit motel. The Clayton House has paid its January room tax of $72G records show. The Clayton House owes about $4,000 in room taxes, Wainkrantz said.

The $720 is the first room tax payment the motel has made since the 4 percent monthly tax first started to be collected last June. Unpaid taxes bear interest at an annual rate of 12 percent from the date they are due until they' are paid, according to the City of Racine finance The tax is collected by the city, and 85 percent of it goes to the Greater Racine Area Convention I 28 By Arthur L. Srb -Associated Press MADISON Attorney General Bronson C. l-a Follette and Gov Anthony S. Karl called on fellow Democrats Wednesday to retain Wisconsin's 18 percent interest ceiling beyond Nov.

1. Intraparty squabbling among Democrats over the issue was publicly aired at a news conference called to put political heat on the Assembly's majority leader. Rep. Gary Johnson, who reportedly has held a key interest bill bottled up in committee. "This is a last-ditch effort to stop a legalized rip-off of the consumer," Rep.

David Travis. D-Madison, told the news conference concerning an an effort to free Assembly Bill 951 from the Assembly Rules Committee Without of the bill. Wisconsin's interest rates would be deregulated Nov 1 under a sunset provision adopted in 1979. That could allow interest rates on loans, charge accounts and other credit, purchases to soar. The Senate's majority leader.

Sen. Timothy Cullen, D-Janesville, said that if the interest ceiling is lifted, rates would climb as they have in many of the states that have removed the restraints I 5 La Follette and Karl signed a statement urging the measure -be passed Fail was not at the news conlerence in the governor's conference room, but La Follette was. The attorney general said it is "critically important" to consumers that the ceiling be retained. Cullen and Hep Lois Pious. D-Milwaukee, a sponsor of the bill, said they were turning to the public lor support because they had been unable to convince Johnson to allow the measure to get an Assembly vote.

Johnson. I) Hcloit, chairman of the Rules 'Committee, was quoted earlier as saying it. would be a waste of time to debate a "dead" issue. He said it is more important to spend time on repeal of Earl's 10 percent -income' tax surcharge before the legislature adjourns its winter sessiori in April "That is a hunch of Pious said. She conceded, however i she had not been able to produce a nose- count tq how Johnson the measure would pass if it reached the floor.

In response to a question, Cullen said he was not aware that any of the states that removed interest ceilings had sought to reimpose them. and Visitors Bureau. The tax is based in part on gross room receipts. Wainkrantz said the Clayton House has a dismal 20 percent to 30 percent occupancy rate. Wainkrantz said, before Midwest Hotel Management took over last August Clayton House records were in disarray.

He said there were no records for last July and August and no way to determine revenues. Forms sent by the city to compute the room tax were apparently thrown away. Wainkrantz Wainkrantz said the room taxes have been filed, but Yusuf makes all the motel's disbursements. Shahid Yusuf. one of five limited partners in Ali Yusuf's group, said Wednesday that "the Clayton House is not producing the kind of revenue we expect from it.

Vacant rooms do not produce anything." He said the motel is not being actively offered for sale, however "everything is for sale." Shahid Yusuf, who lives in blamed the Clayton House's low occupancy rate in part on Racine's sluggish economy. Ali Yusuf and his investors took over the 21-year old motel in June 1979. The group bought the lease on the motel and its furnishings and equipment for an undisclosed price from Clayton House Motel a corporation controlled by Jay A. a Chicago attorney. Professional services 3 24 3'o Retail 12' 9 Small businesses that plan to: Increase workforce I I Agriculture CZZ3 Decrease workforce 11 9 SOURCE National Federation ol Independent Businesses InloGrophies 1984 Odyssey quitting video game market may cut future dividends said he wan surprised by Odyssey's demise "They had really been hurting in the market' Smith said, adding that the company "has always been on the cut ting edge of technology, but has had trouble reaping the benefits Smith said Odyssey suflered because the market favored the cheap basic game computers' and the expensive, very sophisticated units squeezing out those in the middle, like Odyssey, "They pioneered the market, and they still hold a number of the key patents." he said Wilson said owners of Odyssey games should still be able to get new software from other companies that make compatible systems ably into early 1985.

Wilson said While Odyssey helped originate home video games, it was "never a major factor" in the market that blossomed in 1978 and peaked in 1982. Wilson said He declined to discuss sales figures or finances, citing company policy. Last year. Jim Butler, former manager of software development for Odyssey, told the Knoxville News-Sentinel that market-leader Atari had about 14 million systems in use. compared to about .800.000 Odvssev 2 svstems, which were introduced in 1978.

Clive Smith, an industry analyst with. The Yankee Group, a marketing research company. By Tom Eblen Associated Press KNOXVILLE. Tenn. Odyssey, which launched the home video game market 13 years ago but couldn't dominate it.

has stopped making its computers and cartridges. The Odyssey division will be dissolved within a year because of general market conditions. Pat Wilson, spokesman for Knoxville-based NAP Consumer Electronics said Tuesday. Production was stopped recently, but Odyssey orders will be filled as long as supplies last, prob NEW YORK AP) The new slimmed-down American Telephone Telegraph Co. has declared its first quarterly dividend, but indicated it probably won't be able to continue paying out at the initial rate of 30 cents a common share.

Chairman Charles L. Brown said the company did not expect to earn enough money in the first quarter to support such divi dends in the future. He said has "no chance whatsoever to generate the kind of 1984 earnings implied by these dividends" unless it quickly receives favorable regulatory help in the longdistance telephone market. is the nation's most widely held common stock, with about 3.2 million people owning' 995 million shares. Business bits CotntxMit by Pfankuchen department also revised the sharp 3.3 percent January increase to an even higher 3.8 percent rise.

RECORD SHIPMENTS: Factory shipments of major appliances rose to a record 3.023.000 units in February from 2,160.300 units in the year-earlier month, the Association of Home Applaince Manufacturers reported. In specific product categories, shipments of garbage disposers rose 21 percent from February a year earlier. -trash compactor shipments rose 56 percent, shipments of freezers and refrigerators were up 20 percent, shipments of electric ranges rose 29 percent, shipments of microwave ovens were up 101 percent, dehumidifier shipments rose 114 percent and shipments of home-laundry washers and dryers were up 25.5 percent, the association said. JOBLESS RATE: The unemployment rate for Wisconsin in January was 9.8 percent compared with 13.8 percent for the same month a year earlier, the U.S. Bureau of.

Labor Statistics said. The rate was worse than that of 32 other states. Metropolitan seasonally unadjusted rates included Ap-pleton-Oshkosh, 9.7; Eau Claire, 10.7; Green Bay, 9 Janesville-Be-loit, 9.5; Kenosha, 8.8; La Crosse, 9.1; Madison, 6.8; Milwaukee, 8 Racine, 10.0; Sheboygan. 8.1; and Wausau, 12.0. liams has been named general manager of Paradise Lanes West and North, bowling alleys at 6501 Washington Ave.

and 2915 Romayne respectively, and of the Northern Lights alleys and Mark's Club 70, a restaurant, both, at Spooner. All of the businesses are owned by Joy Newman, 4133 Bran-dywine Ave. Williams. 41. retired from the police department in January alter 18 years on the force CELESTIAL SALE: Celestial Seasonings whose bagsto-riches -story in Boulder.

made it the nation's largest herbal tea manufacturer, will be sold to giant Kraft Inc. pending director and stockholder approvals, the companies said Wednesday. Terms were not disclosed, but an industry source suggested the purchase price was about the same as Celestial Seasonings' 1983 sales of $27 million, the Denver Post reported Celestial Seasonings, incorporated in Boulder in 1972 by Mo Siegel. sells its colorfully packaged and named teas Red Zinger. Sleepy-time, Morning Thunder and Grandma's Tummy Mint among them worldwide.

BOW TO THREAT: Striking workers at Samsonite Corp Denver, under threat of being replaced by the luggage manufacturer, reversed their earlier vote Wednesday and accepted a three-year concessionary contract by a vote of )2 to 258. the Denver Post reported. The 1,000 workers, on strike for 18 days, were to return to their jobs today. The contract includes a 50-cent hourly pay cut the first year, 10-cent increases in the second and third years, elimination of two holidays and longevity bonus pay. and a tour-week vacation cap.

"We accepted it because we knew the company was going to hire people to replace our strikers," said Jo Anne Spann. president of the Local 24 of the United Rubber; Cork, Linoleum and Plastic Workers of America. DISNEY GIRDING: Walt Disney Productions is negotiating with a group of banks to triple its $400-million line of credit, apparently to gird itself for battle in the of unfriendly takeover at tempts, the Los Angeles Times said it learned Wednesday. Meanwhile, the price of the Burbank-based studio's stock rose another $2 375, closing at $63 375 on the New York Stock Exchange, amid persistent rumors that a Disney family member may be one of those preparing an offer to acquire the company. Speculation about a takeover has centered on the plans of Roy Disney, son of company ro founder Roy O.

Disney, who quit the company's board March 9. Since his resignation, the 54 year-old businessman has been unavailable for comment. Senators ease oil merger stand WASHINGTON (AIM Senators seeking to end the surge of oil company mergers have agreed to limit their proposal to future mergers, a change that would allow $29 billion in previously announced takeovers to go forward As originally written, the measure would impose a six-month mor atorium on all mergers among the 50 largest oil companies. But Sen. J.

Bennett Johnston, D-I-a the bill's chief sponsor said that under the change offered Wednesday, the proposed $13 3 billion merger of Standard Oil Co of California with Gulf Corp and the $5 7 billion takeover by' Mobil Corp. of SuM-nor Oil Co would be unaffected by congressional action "They would be able to do their deed without our Johnston told the Senate! A $10 I billion takeover of Getty Oil Co by Texaco Inc. already had been exempted because it was previously approved by the Federal Trade Commission. The change, also supported by Sens. Howard Mefzenhaum, I) Ohio, and Warren Rudmari: Johnston's co-sponsors in the merger ban.

would ease some Senate to the proposal SALE CLOSED: The sale of Allen Buick Co. a car dealership at 6001 Washington to Raymond Wilkinson has been completed. As previously reported. Wilkinson has also taken on a Cadillac franchise and is operating the business as Raymond Wilkinson Buick-Cadillac. According to public records.

Wilkinson paid $880,000 for the Allen Buick real estate. He would not disclose the total pur-Chase price. COORS ADDED: Rapids Beer Distributors 2924 Rapids Drive, has been named distributor for Coors beer, a product of Adolph Coors Golden, in Racine County. Other beer brands handled by Rapids include Stroh's and Schlitz. LOUNGE OPENS: A 130 seat cocktail lounge called the Trade Winds was opened March 1 at 1518 Washington Ave.

in the Uptown by Mark Brickman of 4517 N. Green Bay Road and Gary J. De Pelecyn of 1908 Ole Davidson Road. They said that starting March 30. the Trade Winds will offer free bus rides home on Friday and Saturday nights for customers who would rather not drive home.

They said a chartered bus to be used for that purpose will be parked in the public parking lot back of building. MANAGER NAMED: Retired Racine policeman Bruce Wil ORDERS FALL: Factory orders for durable goods fell 1.2 percent in February, the first decline in seven months, the Commerce Department said today. Orders for durable goods products expected to last three or more years fell to $99.7 billion following a sharp rise of 2.8 percent in January. The February decline was the first since a 2 9 percent drop last July. The falloff was led by an 8.8 percent drop in orders for steel and other primary metals, following a 17.8 percent rise in this category in January.

But the decline still left orders at $11.5 billion, well above their low of $7.1 billion in October 1982. RETAIL SALES UP: The retail sales picture last. month was better than originally estimated, the Commerce Department said, revising upward its first report. The department reported last week that February retail sales declined 0.2 percent from January. In its revised report Wednesday, the department said sales declined by only 0.1 percent to a seasonally adjusted figure of $106.2 billion.

The Local interest Eggs Foreign exclvtnge Silver and gold Courtesy Robert W. Balrd Co Inc Silver Chireo Mi'd Amenta I 000 Quotations as ot 10 Ml Tenneco 40 40 40 Textron Inc 2t 271 Twin Disc lj NC Vutcan alt IVj t' Ti. Wlcor Inc JIV, 2I'1 2I" NC Wis El Pow 2 7V 2S Wis PSvc 25 2S'- 251 '4 Wis Pwr I Lt 264 26H 26 NC Ounces Mfrch 52. My svl, June sv July 90 September 110 06 De'ertjer $10 40 volume 114 concerts GOLD Chirag'i M.d AT.erira 33 7 tfov ounces Apf.t S4V3 50 $400 75. Derembr S422 00.

Pefc'uary 5472 00 vatume IJv con'rarti J'Oted in Arr.er if Mm Jl I 0177 0515 fllM Mil "I'll 7 4425 West German marks, down from 2 6405 2 1 750 Swiss Irenes, up from 2 1711 1505 French francs, down Irom 1575 2 775 Dut'h guilders, down from 7 WIO I 416 75 Italian lire, down from 1.619 50 I 7743 Canadian dollars, down from I 7766 The dollar rose eoainst the British pound The pound was quoted at il 4276, down Irom SI 4131 In Tokyo the dollar mM to 226 05 Japanese yen, Horn 226 )0 yen Wednesday Iiedi'io was described as active Gold bullion traded within a narrow ranue in Livestock rents! Mar 70 1 I 4 WJ in IK 0174 9560 0'. 19 ii ooo ion 1717 1799 0097 1166 I 1615 009 0006 0044 Oust A 0075 741 0066 1217 4625 CHICAGO (API Wisconsin's egg market Wednesday was firm with prices about three cents higher Supplies were adequate, demand was fair Prices Grade 0647. medium 12-14 Over the counter B'd Ask Varme Corp 40 Marshall II Corp 45 45'4 Stearns 6 6-4 versaTech 15 16 Mutual funds Value Prire Affiliated Fund US 65 Century Shares Trust 12 75 fidelity fund 14 14 Investors Mutual to 00 1137 Investors Stock IS 4) It 74 Investors variable Pay 7 4 7 ea Massachusettsinv Tr 11 ie 12 06 MessechusettsGrowth. 10 1H5 24 3t HI NichoiasFund 24 Selected Am Shares 34 Aoo I I'M H51 0002 640 05114 07'JI 005 1157 1177 41 14 1107 W.I 100 I mo 0757 0007 0042 0061 I Ml 0107 7907 003' 1)22 4796 7 Fnyuind I aried Argerilir.a Australia Austria B'ail I fiH" A' f.ree' India 1 Irnanr) Israel I '81 Japan Nor war Portion' Saudi Aratfia Spain Sweden Switrerland Net High Low Last Chng Alleg Int 25'-. 25V.

Am Motors i't 51 5 NC Ameritech tl Ametek KVi 23 'i Bucyrus 14-t I6'4 16' Cont Can 33 Dana Corp 2514 25 25 NC Dayton Hud Corp 29v4 2'i Emer Eltc 61', l' -'l Evens 7 t't NC First Wis Corp 21 21 21 -'4 Gn Sig Corp 44' 44S -Va Gould Inc Ja WH -V Inco 13 I3V4 13' Kmart 30' 30H 30 Lee 22' NC Levi Strauss 36 34'1 NC Massey VI 3''l NC Wattel NC Mattel Inc (ptd). 19' NC Modine ton NC Rennord Inc IM IWd Snap-on Tools 2 2' morning dealings London's five maior bullion bullion rtealer-. Dollar, gold LONDON 'API The dol'ar turned 'h a mined performance on European rurrtney markets in thin trading early today Gold bullion prices were little changed Currency dealers said markets were ouiet ahead of reports later in the day on the weekly MM.WAUKEE IAP) Wednesday's rattle market choice steers 4 00-67 00, choice heile'S 62 00-65 00 good to choice Moistein steers 55 00-65 00: standard steers 41 00-54 00 dairy heite'S 40 00-52 00. utility cows 44 00-41 00. canners and cutters 3 00-44 00.

commercial bulls St 00-J4 00 Common bulls 41 00-50 0 Wednesday's cait market: choice veal 60 00-75 00. good veal 45 00 -60 00: feeder bulls 60 00. 80 00. replacement heiters 60 00-70 00 Wednesday's hog market sows 300-350 lbs 40 00-42 00. 450-500 lbs 44 00-47 00, over 500 lbs 47 00 50 00.

butchers 220-250 lbs 45 00-46 00, boars 33 00 and down Wednesday's lamb market: good to choice 00-54 00, ewes and bucks 6 00-10 00 Today estimated receipts; 700 cattle, 500 calves, 100 hogs and no lambs 171 IM tm'H hi' iii'i I l5" VM 0144 0051. tl A IW5 740 0W 17J 4591 fired a rer ommended midmorning rjold prire ot 1191 60 an Oume. down 20 cents Irom late Wed nesday In Zurich, gold was bid at 5191 50, down from SJT2 54 Earlier in Hong Kong, gold tost SI 47 to finish at a bid of 5392 99 Silver was quoted In London at S9 S3 an ounce, down from 19 S9S Wednesday growth of money supply and durable goods orders for February Midmorning dollar rates compared with late Wednesday included.