Lubbock Avalanche-Journal from Lubbock, Texas • Page 46

10-0 IIIIIOCK EmUii. H.v 3 NEW YORK RECENTLY DOWNGRADED Lower Credit Rating Can Be Costly For Big Cities By JOHX CUNX1FK NEW YORK (AP) More than one municipal official has pounded a dosk at Standard Poor's or Moody's after those investment service houses lowered a city's credit rating. To drop a rating from A to BBB might forc the city involved to pay one-half of one per cent more for the money it borrows. Thi mounts up. On a 510-million bond issue it means 550,000 a year additional in interest costs.

A bad rating could oven damage the ability to sell at any price because of legal obstacles. Banks, for instance, are limited 1I1U1M Reserve Board officials in out of ratings except in one sit- As a rosuK, New York City's finance administrator, Roy M. Goodman, has a date with Fed Washington this Thursday. Goodman's plan is to ask the Fed to set up a competitive bond-rating agency. Such an agency would provide an additional check of fiscal soundness from an institution that has traditionally showed its independence.

But this route would have to be engineered through a maze of obstacles. Aren't Sure First. Fed officials aren't at ail sure that their charter would permit such a rating agency. by law to the grade of securities it would put the Fed into competition with private business. Third, every senator has and representative would feel they can purchase.

Bothers Many The problem thai bothered so many city officials is this: Why should these private businesses exert such power over a city's financial affairs? Why should their opinions count so much? The latest to ask the question 5s New York City, whose bonds were downgraded to BBB from A by Standard Poor's and from A to BAA by Moody's, thus costing the city" an estimated million dollars a year more in interest charges. compelled to exert his influence for a high rating for constituent cities. One thing seems clear: neither Moody's nor Standard Poor's would object strenuously to another rating agency. As they view the situation, they are performing a public service. "Somebody has to do it," said Lewis Schcllbach, executive vice president of Standard Poor's.

"We'd have no objection to other opinions. We'd love (don't fasten your seat belt) Pubfished to Hves in cooperaffort-wfth The Adverti'sing Council. The National Safety Council and The International Newspaper AdverUsing Executives. Published by The Avalanche-Journal SAN ANQELO SAN ANTONIO COMFORTABLE NEW COACHES REST ROGW-S ON COACHES HIGH CONTfGLLED LIGHTS ADVANCED BAGGAGE SPACE NO METAL SPRINGS SUSPENSION TRAVEL BY BUS AND SAVE THE DIFFERENCE 4 Schedules Daily IV LU8BQCK 1:20 AM LV IUB30CK 7:00 AM LYIUBBOCK 11:40 AM LY IUBBOCK 5:00 PM PACKAGE EXPRESS SERVfCE YOB can now jhip Bus Express C.O.9. Collecr Prepoid.

Hove pockqge ot dcsfinction ifssttcd of enroute vio leit, economical package express ssrvice. ele- porturti for cenysnience. For infrnr.ctioB POJ-3798. T.I1MAO them." Wouldn't this mean a loss of income? ''We make no money uation," he replied. an insurance company is taking al! of a debt issue and asks for a rating we'll charge it." Always Done Jt Why do it then? "We've always done it.

In the old days it was one way of selling our services. People wanted to know what we thought of an issue. We have a bond service advisory and it was thought best to set up a system to rate bonds. Gradually these ratings became benchmarks." Would you rather not have the responsibility, Schellbach was asked? He replied that the prestige of being a rating agency was important. As a service to customers it probably have to continue rating anyway.

Standard Poor's rating group meets each week to assign symbols to 40 or 50 municipal bond offerings. They study a report already worked up by'an analyst who is an authority on the community or the area. Among factors considered are these: Economy value of homes, savings, and debt structure, tax collection records, income levels, crime rate, sociological structure, physical etc. Through AAA is the prime rate, the 'highest possible rating because it affords the ultimate in protection to the lendee. AA is a high A upper medium, BBB and so on through D.

i Moody uses different rating I symbols. I With increasing frequency, it I seems, some of the large decaying urban centers, which need for redevelopment and a of social problems, are it more expensive to i borrow. Middle-class families are fleeing these cities and are being replaced by more poorly educated, lower income fami- Welfare costs are rising. Crime and fire prevention costs jare rising. Ratings are droping.

NEW SCHOOL COMPLEX SILSBEE, Tex. (AP) Cornerstone ceremonies have been ihcld for the $1.5 million Sils- jbee High School complex. The complex will open in September 1,050 pupils and will accom- odate 1,500. The TV ::30 10:00 10:30 11:00 CIIA.NMO. U-LPBBTKTt Black Denote Color iaj- 3.

1357 Aaotbtr 1:30 Ion Don't Sly 3:00 Match Gamt Farm Today Buctaroo 11 Pat ROODS Hollywood Jeoparnj fje Guess Newj Corn. Mais 3:30 Uatinr Garne Doma 4:30 Lone Ranstr Btaver Huntler-Brink N'eiri. Weather Clos-up The Virginian Deal ID StIO Hmitlej-Brtnk. oo News The Vlrjlalin Daniur Thomai 11 JO Mate A DeaJ 10:30 TonlrSl 1:00 Day Oor Ures 12:00 Sia O-I Uortort CHA.NXEL AMARITJJ) HeJooday, 3. 10 THERE OUCHTA BE A LAW By SHORTEN AND WHIPPLE GET VCHJR CATS A iCtWtHlliG FOSTf TUEVU USE )TTO EXERCISE TW8J? CLANS' IT'LL WEEP 'EM PR HARMIMG VOUR.

BOUGHT HER TABBIES AT THE PET SHOP- TO FIND WE 1HWGIM THE HOUSE THEY HAVEUt PIPPED 2t Engineering Leads Enrollment At COLLEGE STATION, Tex. (AP) Engineering was at the bead of the class for spring enrollment at Texas University. College of Engineering stu- denis totalled 3,070, or 31 per cent of Hie 9,884 enrollment. The Liberal Arts College had 2,805 students, representing 28 per cent. In third spot was the College of Agriculture with 1,885, or 19 per cent.

Kansas City, is situated in parts of three counties. Radio Stations -VETWORK STATIONS KFVO (CBSl 735 KI.BK (ARC) 1310 KCBO IJiBO ISSn KDAV (JIBS) 580 NO.N-XETWORK STATION'S KJJJ. I MO KSEL -ttO F. M. STATIONS KUSK-FM 34.5 KBFM.

KT.XT. 11.9 meiacri'lei J3.7 mncacyrtM YOUU SAVE MORL RIGHT NEXT DOOR! SIATOM.TEXAS Lemon Flavor Rtdpt Checks Rheumatic and Arthritis Pain If you nmgeini minor palru of rhetuMtiim. or thif tnuccnuTt rv- Sn that tnouundi luinz. ol RU-EX Compound, a 1 todiy. Mix it with a ot waur.

flavor with of 4 Hi Xo all and ni You 0 Ir fult 2 a dmy, within 4t heart IS.T.ffT* ult do not quieldr and if you i.lfVjE'r BrB th EU-EI ft WAL6RIENSI For Your Want-Ad-DUl PO3-93U BUY, BUILD REMODEL OR RENOVATE YOUR HOME! Come folk with us We have loan money AVAILABLE 1 Dividend. Compounded Quarterly on your Insured Savings INSURED AND L.DAN ASSOCIATION 16'7 BroiSdwcjy PO 3 8278 Shop 9:30 a.m. 'til 7 p.m. Daily; 9:30 a.m. 'til 9 p.m.

Thursday and Saturday Another Good Reason to Buy Your Home Seirs Of Llrei 10:00 10:30 Toclzbt CHANNEL LCBBOCK Sun. 1:30 Houie'partr Fopeye 2:00 Gen. Hospital Farm It Rzaci 2:30 Edze ot Mibi Stonn if 011 5 "Cacjhr 1 Last co Riu em an CnwHtc News. Weather Arfiy II terry f.y) Jn Space jhvO Vaa Dyke 7:30 Rer. mutinies :1:00 ia-t ot Lifs nomtr a oo Bewitched 11:43 GuMinr Ulht 9:30 Lore Rooftop 12:00 News.

Weather 11:31 World Tnraj 10:30 WIM West 1:00 Password Canarroa City KT.XT-TV. CHA.V.VEL i Wednesday. 3. 13ST KirKjerrartea 7:30 What's Nt-j Whal's New Profile Bti Picture A meld Tojiiras Armchair AiSv. 5:00 yewi Per.

7:15 TOM EL A R11J Dencle Oifor Wedneutey. May 3. 1ST7 Arnanllo Csl. Another n'orid Today Vou mi', Snap Jailzment Match Game i 1:30 Concentration Fit Bctxe 10:30 Hollywood Jeoparrty UJO Fjp Guess £1:55 Rnth Brtnt Early Arnencxa veneer 23 -in. Picture Measured Diagonally Rectangular Screen Regular 88 529 No Trade-in Required Enjoy 295-sq.

inches of color viewing area in either a rich walnut veneer cabinet, or in the honey tones of maple veneer. Powerful chassis has color improvement features: Colorguard and Chro- mk. Set-forget volume control and memory-fine tuning means you tune picture and sound only once. NO MONEY DOWN on Seara Easy Payment Plan UP TO MONTHS TO PAT Your Sears for s-'fO Jack Lasne Daric Sr-adrrsrs £u2-rmzmt IJ5 1:33 Reed zrr. CHANS El.

Hrrt.irvJa i Arr.anin Datsr 3iM 1 5:00 Petsr Jearjr.rs i 3:3) Have Gua S.CO Marshal CM Batman i The NeVj. 10:3 AMVRil.IO 3. i.OO Tsii tr.e Truth ljf.tr, Eiorm Kar.zarm r. Carvli') Mr. il.CT, of FIT.

ri HnrW Torni I'-ifil I Partr Seen CoreSerrice of Tocrr- Silre rtone TV Sctns highly trained wts loiwrc yoa service JWti'- £actkin with professional we scrr- whAt we sell, yon Uveor moTein toe 14-i Portable Color TV OQQ88 Low Price Trade-in Recrmred Portable eomreraence, pins lif color picture. tented pictare tnbe. Table optional 12.95 rr H-in. Maj 2. IH7 i Arjfl tiAi'.

Of r. Ariiy Hayberry Adm F'orhorn i rmnkltc rt- N'xvr World Tisrtu Hanny ro Year Tube Guarantee Free Home Pnw Home set-tier on SOv? Console Color TV (free Jn-store acrrio; on portables) if anj' part provm defective wjthjn SO of tialn. rtnlaccment of any part or tabe (mriudmic picture tub-) which proves ORfective within one year (transistors 5 from of Srrrioe ertn after 90 Compact Portable TT SolkJ-SUie Portable TV 88 98 Pletor. Table Model Coior TV 88 Semn 429 No Required riewinp. Legs indoded for use ConsoJette.

SAVE I8-in. Picture Itoqtirred Weal for a smafl table or stand. tinted safety shield and Low Price No Trade-in Plays anynrhere on rechargeable battery or A.C. power. Has earphone.

Batteiy 27.95 Silrertone Portable TV 98 88 Silrertone PofUble TV 88 124. Handsome set has tinted picture tube to reduce light glare. Enjoy pictare in any viewing Comw 1 in of 4 colors. 3. 1JO Don't Say Merchandise Available Both Downtown and 50th St.

Stores Boon. Ti yi Knmprt Row. tVflNWS Malf A Thomxs t)m UTri I Scr Ifl.OO Anotkfr World Tonltkl SHOP AT SEARS AND SAVE Satisfaction Guaranteed or Your Money Back Sears Rf-ARS. ROEntCK AM) CO. SW.V9336 8:30 a.m.

'Ul p.m. Mon fhru Sat. l.llh STORK HOURS: 0101 O.Sfl a.m. 'ill p.m., Sal. 8:30 a.m.

'til 7 p.m. Krl..