The Kansas City Star from Kansas City, Missouri • 9

I BUSINESS The Kansas City Star Wednesday January 11 1989 Pat TT Meeting holds fate of merger Farmland must become unified president says US savings bonds have special extras Midwestern Steel Division in Kh-i sas City has formed a marketing joint with a Belgian steel company to sell products used in mineral processing The new company AR-DEL will be the sales and marketing arm for high chromium grindpg bails made in foundry in northern Italy Delloye Matthieu a unit of the Belgian-owned Cockefr-ill Sambre Steel Co will have a minority Interest ARDEL will have offices in Belgium and will be Responsible for worldwide sales including the United States Armco said Armco also produces grinding media in Kansfcs City Ishpeming Mich and Duluth Minn soybeans packing the beef and pork producing the fertilizer and he said That consolidation has increased the need for a strong cooperative alternative Rainey said would be our purpose to be that he said To meet that goal Farmland would have to become more unified Rainey said a unified system we believe can stand up to the Cargills and the he said referring to two of the largest farm suppliers that are not cooperatives Rainey also called for a phaseout of federal farm subsidies to make US agriculture competitive in the world market Although the payments have been a major force in helping agriculture in Kansas and other Midwestern states recover from the debt crisis of the mid-1980s they will hurt farmers in the long run Rainey said The subsidies he said prompt farmers to the government and make decisions that go against market signals diminishing the competitive edge the United States has in agriculture reliance on the subsidies also make them economically vulnerable to federal budget cutting Rainey said there will be budget he said Selling a revamped Farmland and the proposed merger will be important in Kansas More than a quarter of the voting delegates at 1988 annual meeting were Kansans appearance was part of the annual gathering of delegates of about four dozen farm organizations who advise state leaders on their views on farm issues In a system that is unique to Kansas the delegates also will elect the directors of the state board The state board then appoints the Kansas agriculture secretary The agriculture board meeting continues through Thursday By Dirck Steimel The Star's agribusiness editor A meeting Friday will be crucial in determining the fate of the proposed merger of Farmland Industries Inc and two Minnesota cooperatives Farmland President James Rainey said today know which way going after Friday" Rainey said about the meeting with representatives from Land Inc and CENEX The merger would create the largest farm cooperative in US history A report commissioned by the three cooperatives showed they could save up to $60 million by consolidating operations But the biggest thing pushing the merger is not savings but the pace of restructuring in US agribusiness Rainey told the annual meeting of the Kansas State Board of Agriculture a few years like it or not only a few firms will be milling the flour crushing the Hallmark adds to TV chain 14000 to convene in KC By The business financial staff tion eventually will become available in FCC filings If the FCC approves the acquisition the Univision network will consist of nine full-power stations and six low-power stations The stations carry local programming as well as programs produced by the Hallmark-owned Univision network That network is available to 85 percent of the US Hispanic community Phoenix is the 14th-largest Hispanic television market in the United States with 110000 households Univision officials said its work The convention will draft delegates from within 400 miles of Kansas City The society met here two years ago and has agreed to meet in Kansas City each of the next four years said Beverly Metzger a spokes man for the Convention and Visitors Bureau of Greater Kansas City Convention organizers said improvements made at Kemper Arena in the last year were a factor in the decision to return she said Tax-exempt treatment applies only to Series EE bonds The income on bonds bought before Jan 1 1990 even if used for the same purpose still is taxable when the bonds are redeemed The income is tax-exempt only if used for educational purposes by the taxpayer or spouse or for a dependent To qualify you need to be at least 24 when you buy the bonds a provision designed to rule out students as purchasers Because the use of the funds is limited to a spouse or dependent grandparents cannot buy the bonds for their grandchildren and qualify for the tax-exempt feature But grandparents qualify if they use the bonds to pay for their own education Two added benefits to parents holding the bonds in their own name: One it eliminates one of the perils of giving money to children under the Uniform Transfers to Minors Act Once the money is given to your child it belongs to him Should the little darling decide to spend the money on a hot car instead of Literature 101 the parent has no legal recourse Second the money earmarked for college until it is used for that purpose So if your child go to college then the bonds may be redeemed with the normal tax consequences The tax-exempt status of bonds used for education is phased out in stages beginning at an adjusted gross income of $60000 for parents filing jointly and is eliminated when that figure reaches $90000 For single taxpayers the phase-out range is $40000 to $55000 Those income ranges will be adjusted for inflation after 1990 Only income necessary to cover the qualified tuition and fees for that year is eligible for tax-exempt treatment Bond income above that amount is taxable for federal purposes at the time of redemption Stephen Meyerhardt spokesman for the US Savings Bonds Division of the Treasury Department in Washington said one unresolved detail is how taxpayers will report the income Another is the definition of higher education clear the benefit applies to tuition and fees but how about room and board? Congress offered a definitive answer nor has it clearly defined how institutions will qualify By The Star's business financial staff The Spanish-language television network of Hallmark Cards Inc has agreed to acquire a Hispanic station in Phoenix Ariz The Univision Station Group Inc said it would acquire KTVW-Channel 33 from the Seven Hills Television Co pending approval from the Federal Communications Commission Also included in the purchase is a low-power station in Tucson Ariz which rebroadcasts the shows that appear on the Phoenix station The sales price was not released Purchase informa By Anthony Carideo Minneapolis SI Paul Star Tribune US savings bonds are a wonderful investment easy to buy and virtually risk-free The interest income which is exempt from state and local taxes is not taxed for federal purposes until the bonds are cashed More than 47000 companies nationwide offer bonds through payroll savings plans and most banks and savings and loan associations sell bonds over the counter They can be bought with a face value as low as $50 and even in installments if you buy them through payroll deduction Federal regulations prohibit those who sell bonds from charging commissions or fees Not only is your original investment backed by the faith and of the US government but a minimum guaranteed interest rate as long as you hold the bond five years or more (The current floor is 6 percent) If rates are higher your bonds will earn a higher rate What more could you want? Well in a little over a year the income from those bonds used for college expenses will be exempt from federal taxes too which turns a good deal into a great one The 1986 Tax Reform Act you may recall shot down strategies that parents were using to save for the college educations of their children All investment income in excess of $1000 for children under 14 is now taxed at the highest rate That hold for savings bonds because the interest is not taxable until the bonds are cashed That means parents can buy bonds for their children under 14 hold the bonds five years or more to ensure that receive the guaranteed minimum interest rate and then cash the bonds after the child is 14 when the income will be taxed at the child's presumably lower rate Tucked into the Technical Corrections Act a bill President Reagan signed Nov 10 is this entirely new benefit: Accumulated income from bonds bought after Jan 1 1990 is tax-exempt as long as it is used to pay for college tuition and fees Upper-income families however are excluded from this benefit Many of the details are yet to be worked out but here are the basics: The Watch Tower Bible and Tract Society announced today it will bring 14000 people to Kansas City for a convention this summer The convention June 23-25 at Kemper Arena will be the second-largest in the city this year The National FFA convention in the fall is the largest The society a corporation affiliated with the Witnesses is one of several corporations through which BUSINESS BRIEFING rT" topic WediiHdiy't market Great race The stock market turned in a mixed showing this morning The Dow Jones industrial average rose 322 to 219643 by 10 am today But losers held a 6-to-5 edge over gainers on the New York Stock Exchange 1989 Gary Meyers Associates Ltd As of Jan 6 Rate On Wall Street The midmorning Value Line index of about 1700 stocks on which the Kansas City Board of stock-index futures contract is based was 23576 compared with 23589 at the close Tuesday Money Over The Counter Stock Money Market Fund Upper Mutual Funds 3 1 2-year CD 90-Day T-BIII Gold S'hrer 30-year T-Bond ij Blue Chip Stock Muni Tax-free Bonds 1400 $1500 Gold lower late Tuesday: 1827 West German marks down from 18355 62265 French francs down from 62555 and 1201 Canadian dollars down from 12012 $9693 $100000 I $97500 $100000 $602 oz 908 $7207 share 777 The nation five major bullion dealers fixed a recommended midmorning price of $40350 down from $40475 bid late Tuesday Dollar declines The dollar was mostly lower in busy European trading late this morning In Tokyo the dollar rose 125 yen to a closing 12695 yen In London the British pound rose to $1776 compared with $17643 late Tuesday Other dollar rates at midmorning compared with rates $1000 $1100 $1200 i i i Delilah Smittle Star business financial writer Ten Japanese banks will lend $51 billion to help finance Kohlberg Kravis Roberts buyout of RJR Nabisco Inc a bank official said Tuesday The loan believed to be the largest ever by Japanese banks for such a transaction was in line with industry expectations People on the move Tax-free municipal bonds have been added to this lineup of 10 consumer in vestments Commissions fees and other charges have been subtracted from the $1000 investments where applicable rf Wilson Chapman Inc has added two to its staff Ron Boyd Volume Shoe plans to lay off 90 in Topeka By The Associated Press which employs about 400 will be virtually untouched by the layoffs layoffs are occurring because the retail business is getting very competitive especially in Nida said solidating some said Rick Nida manager of corporate communications The layoffs will occur mainly in the corporate office which employs about 900 persons Nida said The distribution center A I Monthly Rental A Syetem Sale 4 967-0700 6484416 Volume Shoe Corp says it will lay off about 90 persons in Topeka by the end of January "We are eliminating and con Ron Cindy Boyd Meyer EARN TOP RATES ON CERTIFICATES OF DEPOSITS The Merchants Bank and Metro North State Bank ONE-YEAR CD TWO-YEAR CD Overland Park advertising agency The law firm of Morrison Hecker Curtis Kuder Parrish has added David Winn as director of administration Winn formerly was a partner with the firm of Deloitte Haskins Sells in its Omaha Wichita and Kansas City offices Intertec Publishing Corp has added Chris Khan as technical editor for its Computer Graphics Review publication Khan formerly was vice president technical services for Mid-West CAD Inc in Summit Seminars meetings The Kansas City chapter of the American Marketing Association will be host for a presentation on marketing and product management after a leveraged buyout by Robert Hatch chairman of Interstate Brands at 11:30 am Tuesday at Kansas City Marriott Plaza 4445 Main St The cost is $17 for members and $19 for non-members or members without reservations The reservation deadline is noon Friday For more information call 676-7136 The Art Directors and Print Production Club will sponsor a dinner and presentation on using computers in design at 5:30 pm Monday at the Marriott Plaza Hotel 45th and Main streets Seminars and an exhibition will be from 1 to 7 pm Tuesday at the Allis Plaza Hotel 200 12th St For more information and prices call Mike Cawthon or Sarah Johnson at 931-8969 Contributions to this column are welcome Write to the Business Scene The Kansas City Star 1729 Grand Ave Kansas City Mo 64108 3 4 925 EFFECTIVE ANNUAL YIELD 888 950 EFFECTIVE ANNUAL YIELD 911 CURRENT RATE 4 is an art director He had been an art director for agencies and in-house advertising departments in the retail agriculture and automotive industries Cindy Meyer is an advertising assistant She had been a regional tabloid coordinator in the advertising department of Payless Cash-ways Inc Shughart Thomson Kil-roy has elected Daniel Murphy Kirk Goza and Joel Mosher as shareholders and ftiembers of its board of directors Thirteen associates also have been added to the law firm: Thomas A Sheehan Casper Yost Mary A Schmitt Kurt Tilton Todd A Johnson Mark A Olthoff Kevin Gunkel Robinette Schultz David Pursell Weston A Sechtem Michael Norton Geoffrey Hall and Patricia Peters Hickerson Powell Phelps Associates Inc a Kansas City advertising marketing and public relations agency has promoted Jeanette Stein-man to account administrator Steinman formerly was account coordinator at Christenson Barclay Shaw Inc an CURRENT RATE i i sV vt S7 Minimum $10000 to $85000 Subttonhol interest penalty for early withdrawal of certificates Annual yield assumes a reinvestment of funds at current rates for one-year period No financial institutions please Each depositor insured to $100000 by the Federal Deposit Insurance Corporation Rates suoject to change daily INCLUDED (RHvrTranefre) CONVENIENT LOCATIONS: METRO NORTH STATE SANK THE MERCHANTS BANK UOHl wont Wtutl tWPWinOM 9th Mam I 2th ft Grand 43rd A Mam Westport Rd Broodway 79th Ward Parkway 3400 Red Bridge Rd Call George Harrison THI MERCHANTS BANK 471 1700 ext 262 or 255 B370N Ook Trfwy 4 1 36 Ook Tfwy Metro North Moll Hwy 7V I liberty Drive (liberty MO I Call Susan Wiss METRO NORTH STATE BANK 436-6400 axt SOI or 502 do 7.