Hawaii Tribune-Herald from Hilo, Hawaii • 6

6 Hawaii Tribune Herald, Tuesday, August 1 6, 1 98b iiiiiSiiiiliiliffiS Peopl By Martin Crutsinger Attociatedl Pras national survey by the Federal Home Loan Mortgage Corp. said fixed-rate mortgages jumped to 10.57 perc.t at the end of last week, up almost a VjJ. with further Fed pres- iv3 climb to 1Q.S 'vTCc-t UuJ ts-ii i months. i r'iI 1 1 zl fuiicr tihtenl-g Tceniage pwuu uu wu xuhhj While analysts said they dont expect another boost ia the discount rata until after the November election, they said the. Fed very likely will continue tightening credit by more subtle 7 "Since late If arch, the Fed has been the re rerves banks fcave available for moling loans, driving up a variety of short crta interest rates The federal funis :3, which is the interest banks charge to make overnight loans The meeting of the Federal Open Market.

cojt.cs one week after the Fed, a surprise move, boosted its discount rate by one-half percentage pciri to 6.5 percent, its highest level since Jly kss. 7 An increase in the discount rate, the, interest the Fed charges to make loans to commercial banks, is the most dramatic signal the central back can send of its intention to push interest rates higher as. a way of dampening demand and thus fighting inflationary pressures. The timing of the discount rate increase was a surprise for many, economists who had expected the all! Republican Fed board, led by Chairman Alan Greenspan, to shy away from such an overt crediUightening move in an election year. WASHINGTON Millions of Americans with adjustable mortgages and other variable-rate- loans are in for further shocks this year if the Federal Reserve keeps up its anti-inflation campaign as many economists are predicting.

Many Americans already have seen their credit costs rise this year because of credit tightening on the part of the central bank. As Fed policy-makers gathered to map monetary strategy behind closed doors today, some economists were predicting that the central bank already has decided that even higher rates are necessary to slow an economy being buffeted by rising inflationary threats. cj a perception by Fed 1 pCey-rrr ffrs thd the economy is rrov. -J -slrer said David Jon.a, econor.Lt at Aubrey G. ta-f it a :rr.aent secrritics prime rate ttsed to Calcutta a wife range of consumer loans, from adjustable mortgages to home eTiity loans, the rate hikes will be felt by consumers; analysts said.

1 They also predicted further increases in traditional fixed-rate mortgages. A Allen Sinai, chief economrt ti the Boston said fixed-rate mcries will hit percent within a roorth with the only question being ho- cuca higher they may go before the end of the year. "The economy has a tremendous head of steam, particularly ta the industrial sector," he said. "IZ-iory has shown us that once our economy develops boom-like conditions, it takes tougher restrictive policies to bring accelerating Inflation under control, to each other, has now risen to 8 percent and many economists predicted it would climb by another one-half percentage point in coming weeks, Major banks followed the Fed's lead last week and boosted their prime lending rate from 9.5 percent to 10 percent, a three-year high. Analysts HAMAKUA SUGAR: Projections fall short From Pace 1 Tuesday report president and general manager, and Richard Toledo field operations manager, resigned.

Poppe is Morgan's son-in-law. "It is with deep regret that I accept the resignations of these dedicated, loyal and multi-talented men. I thank them for their numerous contributions to my organization and wish them every success in their future endeavors," Morgan said. But Morgan also said of the resignations, "It's part of an overall program to make further improvements in our operations and to convince our lenders that significant changes are being made. "We still have difficult financial things to squeeze through this year.

I'm still very confident of the long-term future," Morgan added. This morning, Poppe said he did not want to comment on the situation except to say he "will help with a smooth transition. Hamakua Sugar has an $85 million debt with the Federal Land Bank and Production Credit Association. This year, the company was loaned another $10 million from the State Department of Agriculture at a 3 percent interest rate. Morgan told state legislators who took action to move the loan forward that the additional money was needed to ease cashflow problems at the plantation that employs some 1,000 people along the Hamakua Coast.

Morgan told the Tribune-Herald this morning that he will eventually replace Poppe and Toledo, but is not yet ready to make new appointments. "We are very thin at the top right now. We're pretty stretched out and I am looking at what to do," Morgan said, adding that he will be "deeply involved in operations." His daughter, Patricia, who is Poppe's wife, will remain in top position as executive secretary in charge of land operations and governmental affairs, "She does a multitude of things in an administrative capacity," Morgan said. His son, David, also, will remain at Hamakua Sugar Co. Morgan said creditors became concerned because a- mid-year forecast showed the company would not reach its projections for the year.

Part of the problems continue to stem from the low sugar price. Early year rains added to production troubles, and the consolidation of the Ookala and Haina mills at the Haina plant did not go as smoothly as expected. "With the larger volume, there was an overload at the Haina plant, resulting in lower than expected sugar production. But he added that during the off season in March, some of these problems were The company also ran over its expense budget, Morgan said, adding that creditors needed a sign that "something major" would be done to change the situation. "They had to see it was not going to be business as usual," Morgan said.

On the bright side, Morgan said Big Island Meat, a feedlot, slaughterhouse and meat processing company run at the plantation, is now operating in the black and is expected to make a year-end profit this year. And Morgan believes drought this summer on the mainland will help boost sugar prices next year. "There was a record beet sugar crop last year which is still being marketed," Morgan said, adding he believes the beet sugar production will fall off next year because of the drought. He also said he expects Refinery in California will pay higher prices next year for raw sugar. "There have been improvements at and the quality of our sugar has improved which will reduce refining costs.

We should get a better return on our sugar next year," Morgan said. Hamakua Sugar, with its vast 35,094 acres of land, produces about 160,000 tons of sugar annually. When the State Board of Agriculture approved the $10 million loan to Hamakua Sugar in June, officials said the company had adequate collateral. But during the legislative debate on the issue, State Sen. Malama Solomon called on the company to give assurances in writing there was sufficient collateral for the loan.

"If the state is going to act like a bank for private industry, then it should expect the same things a bank would," Solomon said, adding that in the banking business this would be considered a high-risk loan. Along with the financial audit of the company conducted by the State Department of Agriculture, Solomon also had requested a management audit, but that suggestion was not supported by her colleagues in the Legislature. During the last session of the Legislature, Solomon said, "I thought a management audit was reasonable, but I couldn't get the Big Island delegation (of legislators) to go along with me." But she said the highly publicized debate and media coverage of the loan "has sent a message out there that things are changing. We want to know what's going on." Morgan bought Hamakua Sugar from Theo H. Davies Co.

with hopes that sugar prices would rise. But prices have been severely depressed since the purchase. But Morgan remains optimistic that prices will improve next year. 10 more DUI arrests last week Big Island police arrested 10 people last week on suspicion of driving under the influence of alcohol. Of those arrests, four were in Kona, four in South Kohala and two in HilO.

There were numerous other multiple arrests stemming from the 10 DUI arrests. Six drivers were arrested for not having no-fault insurance; five for driving while their license was suspended or revoked three for driving left of center; three for speeding; four, for open container of liquor, and two for lane usage. There were 14 other arrests for traffic and criminal violations. There was one accident involving a drinking driver. So far this year, there have been 543 DUI arrests, compared to 405 for the same period last year.

There were 203 citations or warnings issued for seat belt violations and 13 citations or warnings issued for violations of the child restraint law. DUI roadblocks and patrols will be continued on an islandwide' basis. Old Kona Airport meeting topic The County Council's Public Works Committee tomorrow is to again consider a resolution urging the state Department of Land' and Natural Resources to turn over the remaining 80 acres of the Old Kona Airport site that are still under state control to make way. for development of a community sports complex. The panel meets at 10 a.m.

At an earlier session, members heard from State Sen. Robert Herkes regarding legislation seeking the shift of the park land from the state to the county and appropriating money for a state master plan of the site. Also tomorrow, the Economic Development Committee meets at 1:30 p.m., when members will consider a resolution introduced by members Lorraine Jitchaku-Inouye and Russell Kokubun commending U.S. Department of Agriculture researchers for the development of a "dry heat" method of fruit fly disinfestation for. papayas.

The dry heat process is touted by irradiation opponents as the answer to the papaya industry's fruit fly problems. Homeless coalition gets grant The East Hawaii Coalition for the Homeless has received a grant of $27,863 from the Hawaii County Economic Opportunity Council to be used for a homeless shelter. The coalition is planning to open a homeless shelter for families and individuals at 115 Kapiolani St. It will be the first homeless shelter on the Big Island. v.

1 The grant money will be used to provide direct services for the homeless, purchase needed equipment and help defray staff salaries for the first year of Coalition members said the HCEOC grant is an example of government working with a nonprofit group to provide emergency shelter services for people in the community. Coalition members specifically thanked George Yokoyama, director of HCEOC, and his staff for their support. HSTA endorses Rep. O'Kieffe The Hawaii State Teachers Association has endorsed Republican Mike O'Kieffe in his bid for re-election to the 6th District state House seat. O'Kieffe's name was inadvertantly omitted from a list of candidates endorsed by the teachers union run as part of a story in the Aug.

11 Tribune-Herald. Another outage hits area Hawaii Electric Light Co. suffered another power outage this morning in the Hilo area at 6:38 due to problems with a faulty cable at a Kanoelehua Avenue generator plant. A Helco spokesman said this morning that all power was restored by 6:45 a.m. Affected areas' were Kaumana, Puueo, downtown Hilo and Kanoelehua Avenue.

7 CONVENTION: Bush picks Dan Quayle From Page 1 to New Orleans. "I checked it out with Barbara," he said. "She stayed awake for the whole thing. I feel comfortable with what we've got Bush, after watching the convention on television in ally charged valedictory speech to a Superdome audience packed to the rafters. "But George, just one more personal request: go out there and win one for the Gipper." For an account of the president's speech, see Page 3.

Washington, was flying here to pick up the torch from Reagan. Trailing in the polls, Bush pledged to "do my level best to fill those big. shoes of President Ronald Reagan." "George, I'm in your corner," Reagan declared in an emotion his vice presidential choice, Bush said he also was ready with the speech he will deliver Thursday night, an address that delegates say is crucial to set the tone for his fall campaign. Bush said he practiced the speech on the plane on the way KHBC: Settlement reached in union battle Hilo area as well as some of Puna. KHNL also hopes to extend its signal to West Hawaii and Maui through completion of a From Page 1 practices brought by the International Brotherhood of Electrical Workers Local 1260.

The station went off the air at midnight on June 30. The union charged that station owner William Evans threatened to close the station if the union drive were successful and fired 17 employees for their union sympathies. A hearing scheduled for today on the matter has been "postponed indefinitely," according to Tom Cestare, head of the NLRB's Honolulu office. Cestare said the proposed settlement, which involves the payment of back pay to the fired employees, has been forwarded to Washington, D.C. for review and approval by the agency's general counsel and board.

According to IBEW attorney Herbert Takahashi, the settlement provides for the payment of more than $18,000 to the 17 fired employees. He said the payments represent full compensation for wages lost "between the specific date they were let go and the date Evans decided he would sell the station." The agreement also provides for the rehiring of those fired should Evans change his mind about selling the station and instead reopen KHBC. Evans, who also owns radio stations KKON and KOAS in Kona and the New York-based Clio advertising awards, purchased the independent television station in May 1987. Evans has maintained that both the lay-offs and the station's closing were necessitated by economic problems and were not related to the unionization effort. Evans claimed operating losses of more than $50,000 a month at the time he closed the station.

He told reporters that he resisted the NLRB but gave in to clear the way for a sale to KHNL. Evans has complained of unfair treatment by the NLRB and has bitterly denounced the unionization effort, using terms' such as "socialism" and "gesta-poism" to describe the effort. Takahashi said the IBEW supports the transfer of the station's license to KHNL, which has employees represented by the union. The transfer would not likely result in an increase in IBEW membership, as KHNL reportedly plans to use the Hilo transmitter simply to relay signals from the Honolulu station and has no immediate plans for the kind of extensive local programming produced under Evans. According to Keith Aotaki, KHNL's director of engineering, the station's coverage in East Hawaii would be similar to KHBC's, reaching much of the transmitter atop Haieaicaia in December.

KHNL broadcasts a mix of local sports programming, Fox Broadcasting Network programs, movies and other shows. The station's broadcast day runs from about 6 a.m. to midnight or slightly later. The station's signal is already available to more than 13,000 subscribers to Com-tec Cable Television in East Hawaii. Aotaki said KHNL's Hilo operation will not require a separate full-time staff, adding that maintenance work on the transmitter will likely be handled by an engineer on contract to the station, According to Evans, KHBC's once emplyed a staff of 35.

Crime Stoppers LAVA: Break registers on isle seismographs Info sought on burglary HilO police are currently investigating a burglary which occurred at a residence on Kulaimanu Road in Pepeekeo on July 10 sometime between 7 a.m. and 1 p.m. Unknown person(s) entered the residence by butting the screen of the bathroom window, opening the latch and removing $500 in U.S. currency ($1 bills) and $100 in U.S. coins (25 cents) from the master bedroom.

If you have any information on this case or any other case, call Crime Stoppers at 961-8300 or 323-3300. The numbers are answered 24 hours a day. You will be given a coded number and your identity, will remain anonymous. You may be eligible for a reward of up to $1,000 if your call leads to an arrest, indictment or the recovery of property. From Page 1 tion to the lava visibly going into the ocean east of where Kupapau Point used to be, Wright said.

He said apparently there were no witnesses to yesterday's geologic event called "slumping." Some observers familiar with, the new coastline who viewed the area after the lava chunk broke off said it appeared to be about 100 yards by 20 yards in size. Wright said that the piece was irregular and probably several yards thick, but not seen by either scientists or by rangers with the Hawaii Volcanoes National Park. The size of the jolt and the way it registered virtually islandwide on the observatory's network of seismometers leads Wright to suspect that there may have been a significant breakoff of new lava beneath the water's surface as well as the above-water breakoff. Wright said the incident illustrates his concern that people who trespass across private property to approach the "active lava bench" to get a better view of the eruption are putting their lives in danger. Concern about the public's safety last week led Civil Defense Administrator Harry Kim to ask state and county law enforcement officers to help come up with a way of patrolling the area near Kapaahu Homesteads where most unauthorized visitors enter into the area despite signs and roadblocks.

i Wright and Kim will meet with police and enforcement officers of the State Department of Land and Natural Resources this morning. The HVO role is not to control access, Wright said. The reason he is meeting with Kim is to document for all of the officials who need to. be concerned about the danger, just what the hazard is. Since early July, the hazard from the breakoffs of lava has been a worry, Wright said.

HVO scientists do go down and check the coastal area about once a week, but it's been determined to be too hazardous for HVO crews to go freely onto the lava platform as' they were used to doing before the series of collapses started, he said. Wright said he has banned his own staff scientists from going onto the active lava delta, even though the ban results in a cutback in scientific observations. The instability of the area, combined with a lack of any warning of the big lava breakoffs, simply makes it too dangerous to venture any closer, he said. The slumping is the result of lava building up. at the water's edge and gradually extending over deeper water.

Eventually the depth and slope of the coastal area beneath the lava is unable to support the weight of the new shelf of rock and it breaks off and slides further into the Kilauea Volcano began its current eruption Jan. 3, 1983. It now is the longest running eruptive event in Big Island history. Obituaries Survived by her husband, Robert Manzano-Hill of Hilo; three sons, Joshua Morrow, Lucas Morrow and Hanu Manzano-Hill of Hilo; her parents, Gregorio and Louisa Man-zano of Hilo; and her mother-in-law, Annie Baird Hifl of Florida. Carrofl Marten Manzano-HUI, 38, died Aug.

14 at Lucy Henriques Medical Center. Bom in Pepeekeo, she was a homemaker. Friends may cal from 6-7 p.m. tomorrow at the Dodo Mortuary chapel, where a rite of Christian burial win be nek) at 7 p.m. at the chapel.

Casual attire..