Hartford Courant from Hartford, Connecticut • 81

gtye Bartforb fjourant SECTION SATURDAY JUNE 17, 1989 Of Norwich, the Thermos and Japan Insurers' group poses subsidies on auto policies If aSl Robert tLi Weisman 4" A I A ft Other states are considering similar rollbacks. "I think the voters in California told us the urban auto issue is one we have to deal with," said Jason Wright, a spokesman for Aetna. "It is ironic that people who live in the urban areas where rates are the highest are people who can least afford the product The industry has to open its eyes to alternative solutions." The association's proposal departs from the insurance industry's traditional cost-based pricing charging motorists solely according to the likelihood they will have accidents. "There was a lot of soul-searching," said David Snyder, the association counsel who devised the proposal. "But we were serious about wanting to address the problems of urban and low-income people." Under cost-based pricing, urban drivers including many poor and minority drivers pay far higher rates than drivers in less-populated areas.

The industry says the rates reflect heavier urban traffic, which increases the chances city drivers will be in accidents. Consumer advocate J. Robert Hunter said cost-based pricing Please see Insurers', Page B2 By JOHN F. FITZGERALD Courant Staff Writer WASHINGTON Responding to California's forced rollback of rates, a major insurance industry organization has proposed that states such as Connecticut drop compulsory auto insurance and consider subsidizing car insurance for poor people. The American Insurance Association, whose members include such Hartford companies as Aetna Life Casualty Travelers Corp.

and the Hartford Insurance Group, said subsidies are more effective than laws in persuading poor people to buy insurance. The association said it will support subsidies for low-income drivers as part of a comprehensive auto-insurance reform package that includes strict no-fault insurance. The subsidies would be paid either through state tax breaks to insurance companies or surcharges on the policies of wealthier drivers. The association proposal is a reaction to the passage last fall of Proposition 103 in California. Motorists there many of them urban dwellers irate about soaring auto insurance costs voted to roll back rates 20 percent and subject the insurance industry to tough new regulation.

Associatd Press Frank and Mary Jean Kranack stand with their law- no's Pizza franchise. The Kranacks blame yer, Kenneth R. Behrend, outside a suburban Domi- Domino's delivery policy for a 1985 auto accident. Lawsuit against Domino's makes issue of fast-delivery guarantee Employers to limit coverage, study says the law." Ed Kelley, police chief in St. Petersburg Beach, said in 1987 his department had to crack down on speeding Domino's drivers.

"When we catch them, it's going to be one driver to go," Kelley said at the time. Hingst said Domino's dominance of the home-delivery pizza business is based on its famous 29-year-old promise to deliver pizza within 30 minutes of a telephone order. Last year, Domino's sold about 230 million pizzas, delivering about 90 percent, from about 5,000 owned and franchised stores in the United States, Hingst said. The company has grown from just 300 outlets in 1980 in part on its boast it would deliver the pizza for free if its drivers were late, within a specified distance. Now, Hingst said, Domino's gives a $3 refund for a late pizza because some customers, particularly college students, deliberately gave imprecise directions just to get free food.

Please see Lawsuit, Page B2 In eastern Connecticut, we always felt a special pop of pride unscrewing the plastic tops of our Thermos bottles. We knew that, stamped on the bottom of the vacuum flasks, were the words "Thermos Norwich, U.S.A." That was my hometown, the place where Thermos bottles rolled off assembly lines to an-appreciative world. And the words "Norwich, would be there even if you picked up the ubiquitous bottles at a construe- tion site in Cleveland, a kindergarten in Kalamazoo or a truck stop on the New Jersey Turnpike. Soon the words on the Thermos bottle could be "Made in Japan." Long before Thursday's announcement that Thermos corporate parent was being ac-, quired by Nippon Sanso of producer of industrial gases, Thermos had ceased to be much of a factor in Norwich life. Norwich's top employer in the 1960s, when as many as 1,200 workers punched in daily, can Thermos Bottle Co.

was pur- chased by Household International Inc. in 1969. The new owner, gradually shifted production" south and west, and in 1987 moved the Thermos division headquarters to Freeport, 111. Last year, Thermos idled 250 workers at its last Norwich in the Taftville section. The plant i continues to operate on a small scale, shipping and warehousing products, but it was not included in the sale to Nippon Sanso.

Norwich today is no longer the lunch-pail city of smokestacks-and textile mills where Thermos had been King Jug. Today, city residents labor at a more diverse range of small manufacturing' and service businesses. Many, commute from Norwich to jobs at Electric Boat in Groton or Whitney in East Hartford. Culturally, the city has changed as well. B.

B. King now performs at the Rose Arts Festival. Nick Nolte appears downtown to shoot a film. And on Laurel Hill, overlooking the Thames River, the main Thermos factory is being converted into condominiums, soon to house yuppies who might scoff at the notion of toting a Thermos bottle to work. But many still remember the heyday of Thermos in Norwich.

"When I was growing up in Norwich, Thermos was as American as apple pie," says Glenn Car-berry, chairman of the Norwich Area Chamber's economic development council. "My grandmother worked there for many years and still collects a pension." "Thermos was our claim to fame," says Norwich stockbroker William Stanley. "It brought the name Norwich all over the world. When you'd watch World War II movies, the guys in the bombers would say, 'Pass the The book "Norwich Century of Growth," by Eleanor B. Read, describes the city's efforts to lure the American Thermos Bottle Co.

away from Brooklyn, N.Y., in 1912, when it was seeking larger quarters. William Walker, the company's owner, asked the people of Norwich to provide Laurel Hill land and a building as a good-faith gesture. "In return, he Walker) agreed to pay five times the cost before he took title to the property and promised to include the name of Norwich in his national advertising," the book explains. A citywide fund-raising campaign was begun to buy the land. "The Norwich musicians sponsored a ball which netted $2,000.

A group of 100 leading citizens, calling themselves the 'Norwich sold 'Boomer Badges' for $1 apiece. The City Hall bell was rung whenever a particularly large donation was received. On Feb. 17, 1912, the city reached its goal. The citizens went wild.

Crowds of cheering people filled the downtown area, and the factory bells and whistles rang throughout the city." The book reports that "Thermos bottles went to the South Pole with Lt Shackelton, to the North Pole with Robert Perry, to Africa with Richard Harding Davis and all over the world with the American troops in both wars." Ironically, in light of the Thermos sale to the Japanese, the book also observes that, "By 1922, when William Walker died, his famous product was being sold as far away as Japan." Robert JA'eisman is d. Courant business niter. By DIANE LEVICK Courant Staff Writer The nation's employers, already trying to restrain the cost of insuring workers, are planning to limit health-care coverage for workers' families, says a new study by a Minneapolis insurer. Eighty-nine percent of 400 company executives surveyed said they are planning to restrict health insurance for workers' family members, said Northwestern National Life Insurance Co. The insurer hired IMI Research Corp.

in Minneapolis to conduct the telephone survey in January and February, part of a $24,000 project on the future of employee benefits. The responding companies represent 3.9 million workers. Nearly all employers who insure workers also provide general hospital and medical insurance for family members and usually pay part of the cost. But the survey found 53 percent of the companies expect to restrict or exclude coverage for mental health, drug and alcohol problems for workers' dependents. Many employers have said those problems make up the fastest-rising portion of their health-care expenses.

Thirty-one percent of those surveyed predicted they will screen family members before insuring them. Screening is usually done to deny coverage, increase premiums paid by the insured person, or impose a waiting period before coverage begins for known ailments, Northwestern National said. For instance, an employee with a teenager who has been treated for drug abuse would have to pay higher premiums because such teenagers have a high relapse rate, the company said. Also, 28 percent of the executives said premiums for family members should be based on age and sex, as is usual in auto insurance. Families with adolescents, considered a high possible.

They may run a stop sign, go over speed limits or make illegal turns." Domino's denies Behrend's contention, says the company constantly reminds its drivers that safety is important and disqualifies delivery people with three or more serious moving violations. Behrend said he has gathered information on at least 30 serious accidents in recent years related to Domino's speedy delivery. Ron Hingst, Domino's spokesman at its Ann Arbor, headquarters, said the company knows of 20 fatalities involving Domino's drivers, but that accidents are bound to happen in such a large fleet, believed to be about 75,000 to 80,000 drivers. Jesse Colson apparently was Domino's most recent death this year. Colson, 17, of Plainfield, a Domino's driver working 18 miles southwest of Indianapolis, was killed June 3 when his small pickup truck skidded on a rain-slicked road and hit a utility pole.

His mother, Suzanne Butros, said he was speeding and called Domino's guarantee "an invitation to break Paramount share, and Paramount fell to $58.12. Analysts said there was still speculation on Wall Street that the Paramount bid might succeed, and that prevented Time stock from falling further. Time's rejection of the Paramount offer ending 10 days of silence on the bid said the bid was not in the best interests of Time because it was financially inadequate and highly conditional. Time officials said they anticipated a higher offer from Paramount, but believed Paramount still would ultimately fail because its offer was conditioned on acquiring rights to about 800 cable-system franchises that Time holds. Time President Nicholas J.

Nicholas said in an interview Friday there has never been a hostile takeover of a cable franchise, and he predicted Paramount would be unable to operate the systems and therefore would not have the assets needed to secure its takeover debt. Today's data DOW JONES AVERAGE (Friday's close) 30 Industrials 2,486.38. Up 11.38 points T-BILLS 12 month 8.40 6 month 7.79 3 -month 8.13 MORTGAGES (Average, based on local survey) Adjustable, 1 11.65 Fixed, 30 yr 10.69 Inside Robins' plan approved A federal appeals court approved the reorganization of A. H. Robins Co.

Pag B2. Housing construction falls Housing construction fell 2.1 percent in May to tte lowest level since 1982. Pag B2. Associated Press PITTSBURGH After a Domino's Pizza delivery car hit Frank Kranack's station wagon outside a suburban Domino's store, Kranack said the manager rushed to the wreckage and demanded, "Let's get this pizza on the road." "With all the damage there, I just didn't believe he was worried about the pizza," Kranack said this week. Kranack, 42, an accountant, said he suffered whiplash injury in the October 1985 accident.

His wife, Mary Jean, 42, claimed neck and back injuries and says her right arm, nearest the impact, is permanently disabled. The Kranacks' attorney, Kenneth R. Behrend, filed a lawsuit for damages not against the 18-year-old driver, but against Domino's Pizza contending in part that the company encourages dangerous driving with its trademark 30-minute delivery guarantee. "People are being injured all over the country," Behrend said. "These drivers are trying to deliver pizzas within 30 minutes, and sometimes it's just not physically Time rejects Associated Press NEW YORK Time Inc.

unveiled its defense against a $10.7 billion unwanted takeover by Paramount Communications Inc. Friday, rejecting the bid and making its own $14 billion tender offer for Warner Communications Inc. to succeed an earlier Time-Warner merger plan. Paramount quickly said it would press ahead with the unsolicited $175 per share cash offer. Most observers said the Time-Warner announcement only complicated the three-way struggle for Time.

Time outlined a two-stage tender offer under which it would pay $70 per share in cash for 100 million Warner shares and then exchange $70 per share in cash and securities for the remaining 100 million shares of Warner stock. Time stock skidded $9, to $162.50 per share in New York Stock Exchange consolidated trading Friday. Warner rose $3.62 Vt, to $59.25 per Ramirez could not be reached for comment Friday. Shurberg's attorney, Harry F. Cole, said the decision puts his client one step closer to obtaining a licence to operate the station.

He said the decision invalidates the sale of the license to Astroline and almost obligates the commission to award the license to Sburberg. "The case will ultimately go back to the FCC," Cole said. "The directions given by the court make it clear that there is very little the FCC can do." FCC lawyer Diane J. Killory said it is too soon to say whether the commission will appeal the case to the Supreme Court "The policy obviously gave minorities a leg up," Killory said. But she said it is just one of several programs designed to help minorities get Jo broadcasting.

health risk by insurers, would likely pay more for insurance, Northwest National said. "What is most disturbing to us is that employers seem to be considering solutions that sound unfair and discriminating," said Michael Con-ley, vice president of the company's group-insurance operation. "Their frustration level must be very high." Employers who want to keep down costs should make changes in benefits that are fair to both employees and dependents, not discriminating against one group, said Marsha K. Johnson, spokeswoman for Northwest National. Also, employers should use employee-assistance programs, which provide short-term counseling to workers and avoid expensive specialists, the company said.

The company also suggests case-management programs, which monitor patients with long-term health problems and find cheaper ways to care for them than would normally be provided. Also, programs that promote healthy living to employees should be extended to family members, the company said. Sixty percent of companies surveyed said they intended to do so. Despite their intention to limit coverage, companies plan to continue insuring dependents because the benefit helps attract and retain employees. Eighty percent surveyed said their health plan for dependents is "very valuable" or "extremely valuable." Northwestern National commissioned the survey because "it helps us to keep our eye on what's happening in the industry" and share information with current or potential customers who are looking for ways to manage expenses, Johnson said.

The companies surveyed range in size from 100 to 48,000 employees. Forty percent are manufacturers, and 25 percent are service companies. the independent station, and sued in 1984 to block its $3.1 million sale to Astroline Communications Co. Ltd. of Saugus, Mass.

The seller was Faith Center Inc. of Glendale, Faith Center sold Channel 18 to Astroline under the FCCs "distress sale" provisions, which allow a broadcaster to avoid a disciplinary hearing by selling its station to a qualified minority buyer at 75 percent of its market value. By selling the station to Astroline Communications, which is considered a minority-owned business, Faith Center ended an ongoing dispute with the commission. However, Astroline, lead by managing partner Richard P. Ramirex, has since run into trouble.

The station has been under protection of Chapter 11 of the U. S. bankruptcy code since December as it tries to reorgatize operations and pay creditors, i takeover bid "If you can't get hold of the assets, you can't get hold of the bank loan," he said. Time officials also said they were betting stockholders would not want to wait for Paramount to complete the regulatory process, which Time estimated could take as long as one year. Paramount called Time's bid for Warner "a defensive device, pure and simple." "From the standpoint of Time shareholders, we don't see how it begins to compare with our offer of $175 a share in cash for all shares," Paramount stated.

Industry analysts have said the stock price of a combined Time-Warner is unlikely to rise to the $175-per-share level for two years. Nicholas vehemently disagreed, and said the combined cash flow of a Time-Warner would be high enough to improve the stock's value. A bid for Warner widely had been Please see Time, Page B4 30-year T-bonds ISjjS The rate on 30-year Treasury mi iii 1 bonds was 8.30 percent as of 4:30 p.m. Friday. PERCENT 865 8.45 5 6 7 8 9 12 13 14 15 16 in 8 25 i inn nn iJ Court not to reconsider Channel 18 sale By SANDRA CLARK Courant Staff Writer A federal appeals court Friday declined to reconsider an earlier ruling striking down the sale of Hartford's Channel 18, WHCT, to a minority broadcasting group four years ago.

The decision, by the U.S. Circuit Court of Appeals in Washington, means the battle for control of Channel 18 will move to either the U. S. Supreme Court or the Federal Communications Commission, which asked the court to reconsider its original ruling. That ruling called unconstitutional an FCC policy that allows minorities to buy television licenses from troubled owners at reduced rates.

On the winning side once again is Rocky Hill businessman Alan Shur- erg, who owns Sburberg Broadcast- ing Inc. of Hart He wants to buy.