Galesburg Register-Mail from Galesburg, Illinois on June 28, 1973 · Page 10
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Galesburg Register-Mail from Galesburg, Illinois · Page 10

Galesburg, Illinois
Issue Date:
Thursday, June 28, 1973
Page 10
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Golesbur Thursda i m J T Astro Crane Illinois Power Co. brought its astro crane to Galesburg last week to 'aid in a road-widening project on South Henderson Street. The crane, which extends 93 feet in the air, is stationed in Belleville. From the top of the crane workers said they phrey.) (Register IRS Outlines reezi By KENNETH JOHNSON (Staff Writer) Illinois banks, traditionally a powerful coalition united by vast resources and political influences, have split into two wanting oamps over the issue of branch banking. Several of the state's leading banking insitittitions triggered a revolt last week against the Illinois Bankers Assn. At a meeting in Chicago, more than 100 banks announced formal withdrawal from membership in the IBA pnd creation of a rival group, the Association for Modern Banking in Illinois. THE DECISION to leave the IBA, sources said, stems from two actions taken by ifche organization; this year against branch banking. In January, an IBA committee voted by a 34 margin against a limited branch proposal Having lost (the first round, proponents of the measure regrouped forces tand decided to try a different approach. At the IBA's annual convention last month, the pro branch- banking faction petitioned the IBA to remain neutral as a political lobbying group am the issue of branch banking, thus allowing the proposal to stand or fall on its own merits. However, the 1,150 members — which are represented in the organization by a one bonk, one vote system overwhelmingly smashed the proposal to remain neutral. Advocates of the measure said that hundreds of small banks, located in rural communities with no competition from other lend ing institutions, formed the backbone of opposition to the branch banking concept. "THAT WAS .the straw that broke the camel's back," said J. Homer Kennedy, president of the Bank of Edwardsville. "It wtas a slap to the face." And so ffihe icMfalavietrsy con- imiues. In alts sdmjplest fonm, e torn' banking sfenidiure. Under this setup, banks imay have one (facility wilMn 1,500 (feet of the home bank. Since this facility tabbed a drive tfladionB within the IBA -has been political Historically one of the most (powerful special afaberesit groups in Springfield, (the IBA has lobbied against branch -banking, while rival groups — which later rebelled to form tihe Association for tMtadem Banking for branch banking. lobbied banks withdrew Irom the IBA and farmed the maverick AMBI. With 149 dues-payiing members, spokesmen staid the AiMlBI target is 324 members wiiih $40.8 billion, or 72 per cent, of all bank assets within Illinois. While ilihe Iiinois Bankers Obviously something had to Assn give. THEODORE S. ROBERTS, executive vice (president of Harris Trust Go. in Chicago, ome oif the state's largest banking instiltultionis said that the IBA "ais a lobbying arm could molt repaiesenlt our in- fteraslhs." As a result, Harris Trust amd moaie ithan 100 other more than ZOO legislative bills last year to beibalif of banking services, the onganizati on's hierarchy was outspoken in its foppoisitim to branch banking, iwhdch (today is outlawed in only two isJBaJtes in thie nation. PRESENTLY ILLINOIS banks are governed by legis- laftion -known as the 1 -uniiit Central Soya Sets Records Central Soya Co. achieved record sales and earningis in the third quarter of the current fiscal year, Dale W. McMillen Jr., chairman of the firm's board of directors, reported today. Earnings for the first nine months increased 68 per cent over the same period last year. Company officiate stated 4 hat fourfh-quarter earnings should approximate 'those of the third period. Th ey also predicted that the 1973 fiscal year will be the most piwfeble in Centra! Soya's history. Net earnings for the third quarter were $6,762,689 on net sales of $341,159,492. During the same period last year, the company had earnings of $3,460,603 and sales of $223,187,352. "Total sales dollars were importantly influenced by the high price levels of soybeans, grain, soybean meal, poujltiy and animal feeds," McMillen said. NEW MANAGER-Don Ross, a native of Peoria, has been named staff manager of the Galesburg branch of John Hancock Life Insurance Co., 202 Bondi Building. He attended Bradley University and was a member of the Theta Xi fraternity. Ross and his wife, Nancy, will reside at 119 W. North St. i J i L I SPRINGFIELD - Leon C. Green, district director of Internal Revenue for central and southern Illinois, today announced several items of importance concerning President Nixon's freeze program. Green stated that the pre- vi ously established exemption of small businesses with less than 60 employees was now suspended as well as all approved price increases which had not not been put into effect by June 1973. 8, further Green irms computing their based on sales stated that freeze during price, June 1 through June 8, may not exclude any temporary special sale, deal or allowance in effect during the freeze base period. Green also outlined the freeze price listing and posting policy which became effective at 11:59 a.m., June 24, 1973. Under the new policy, each seller must maintain freeze price records for all commodities and services at the location where pric- (Continued on Page 35) ing decisions with respect to those items are ordinarily made and they must be made available upon request to IRS representatives. Retail food chains with sales of $25 million or more and derive 50 per cent or more of total sales from food have the option of posting their freeze price information either: (a) in a complete price book listing all items, prominently displ ayed and readily accessible to consumers (i.e., cannot be located in manager's office); or (b) on signs in each department for the 40 items which had the highest dollar sales in the last fiscal year ending before June 13, 1973, or for those items which accounted for 50 per cent of sales umiabte to negotiate loans or set up savings accounts^ it's coirtsiifdeired merely an extension of the bank's teller windows. As a result of these strict regulations, drive-in fa- is for First Galesburg Ntaibional Bank & Trust Co., the Bank of Galesburg, Farmers & Mechanics Bank and Cfo e Ctommunii ty Bank of Gafosbuing -aire consfbructed at or near 'the home building. Under existing Jaw, none of the four local banks can set up facilities, for example, at the proposed Sandburg Mall. As a result, most people shopping at the North Henderson Street complex would have to drive downtown to do their banking. Since there is an obviouisi inconvenience factor involved here, construction of the Sandburg Mali! would seem to signal the need for new banking facilities on this month side of town. At this time, Community Bank of Galesburg is the only banking institution in the •area of the proposed mall. AND COMMUNITY is also the only local bank to attack the branch banking concept. Both the Bank of Galesburg nd First Galesburg National Bank have announced their support of branch banking and joined the AMBI group, while Fanners & Mechanics Bank is taking a "no comment" stand on the controversial issue. While branch banking is thei crux of the problem between the IBA and AMBI, there ana other differences. One revolves abound multi-unit holding rampany banking. a The Associa 1 for Mod- New Idea in Recreation LOS ANGELES An ultra- See 'IRS modern recreational vehicle that doubles as a sleek-looking family car has been developed by Toyota Motor Sales. Galled the RV-2, the prototype is a 186-inch-long yehicle, which seats or sleeps four. Toyota officials say the car is suit-) able for around-town or long­ distance driving and can fit into a standard-size garage. When the car is parked, a rear clamshell-shaped canopy can be erected, providing adequate sleeping and dining space for the passengers. The prototype features a 5- speed manual transmission with a 6-cylinder, 156-cubic-inch engine. The car is 52 inches high, 70 inches wide and has a 107- inch wheelbase. Converting the RV-2 from a family car into a recreational vehicle is similar to putting up a tent. After the rear side sec- em Banking is on record as a strong supporter of holding company banking. Under this type of arrangement, smaller) banks — principally those in downsifeate Illinois — could pool their resources and assets to accommodate large corporations and organizations, IN THE PAST, an industrial giant could locate in an average doiwnstate community only to find that none of the banks have the necessary assets to handle their financial needs. As a result, the company is forced to go to a larger Chicago bank in order • to secure assistance. So instead of being used locally, money is funneied into a Chicago bank, which, obviously, shows a profit on the loan. James Oberwortinann, president of (the Bank of Galesburg, is one of the most outspoken local critics of the Illinois Bankers Assn. When tions are unlatched and folded as ked to describe 1-unit bank- out, a fabric canopy can be stretched across aluminum struts to form overnight or weekend outing accommodations. Since the RV-2 is a development prototype, no specific marketing plans for the vehicle ing structure, the flamboyant bank president retorted: "You can't do anything." HE SAID 1-unit banking "is outdated and regressive. Today a good bank tries to give its customers the very best in service and convenience. We have been released by Toyota, need branch banking and chmpmy holding banking In order tO'ajdcampUsh (his." Has the Baric of Galesburg formally withdrawn ,fmm the Illinois Bankers Assn.? "You're damn right," Ober- wortmann replied. "We thM branch banking and holding company banking would be a great thing for Illinois. Instead of sittding our larger customers to Chicago because we don't have the assets to accommodate them, downstate groups would be able to take care of these groups by pooling thoir resources. Thus, we keep the money in downstate Illinois where it belongs." Was this the Bank of Galesburg's main reason to join the maverick AMBI group? "THIS IS NOT a maverick group — this is a progressive group. There are' only two states in the mate that; don't have branch banking or some form of holding company banking. Illinois is one of the two states. Sincewe're mounting a movement to change our present antiquated conditions, I'd y oall that progressive." J. Barry Weber, president of Community Bank of Galesburg, said his bank will "continue membership in the Illinois Bankers Assn. We're satisfied with their policies. I see no reason to leave the organization. I'm not in favor of branch banking. I have made no statement and I will make ro statement at this time concerning holding company banking," he said. Cecil Hunter, president of Farmers & Mechanics Bank, was asked if he plans to join AMBI? "I HAVEN'T really discussed At yet with my board of directors,'' Cecil answered. "We've paid our dues with the IBA, so for at least the time being we're still a member of that organization." When asked about his opinions on branch banking and holding company banking, Cecil would only offer "no comment."' James P. GhigMeri, president of IBA and president of the Citizens National. Bank of Toluca, expressed concern that member banks elected to leave the Illinois Bankers Assn. 'and form a new organization. "Such action can only have a negative affect upon banking in Illinois and its ability to provide the best possible banking service in our state," he said. HOW MANY banks have jumped to the rival organization? "It is vmknov/n at this time how many plan to withdraw from IBA," GhigMeri replied. "Approximately 10 per cent of our members have not paid their membership dues which are due this month." One of those not paying dues is First Galesburg National Bank and Trust Co. Richard Bishop, president, explained why. "While we have not formally withdrawn from IBA, we are financially supporting the Association for Modem Bank- See 'Banks (Continued on Page 35) xoress Serv ce lanned Amtrak disclosed plans today for a new low-cost rail package express service which will go into operation July 1 between major cities across the nation. Three special express services — priority, economy and custom — will be provided under the new program. Amtrak's priority package express will be a high-speed, small-package service between 32 cities. The shipments — which must be under 25 pounds eech — will move on a priority basis. There will be a flat $7.50 charge between any two points. Amtrak's economy package express will cover normal, express-type traffic between 110 tuies that are served by trains carrying baggage and express cars. he rates per 100 pounds are T as low at $3 — depending on distance — with a minimum charge of $5 per shipment. Amtrak's custom express is an individualized, specialized service to accommodate frequent, regular express users, lie services and rates, also to J10 cities, will be tailor-made, depending on the service requirements and characteristics of the traffic. Galesburg Store Specializes In Speed Equipment ncials Will Give €ois" ':2l3ir at Peoria Fair Robert A. fjwyer. m.dwestern Winner's Circle Speed and regional director of tr .e Small Hu\\!.<-/:. ; Mr.i.::\:.\th\jA'.. said Custom, 154 W. Main St., r, part of a statewide chain specializing in speed equipment. The store, which opened ir; March, also handles some regular parts for cars, lejry Y*u\- liner, manager, said today. With stores located in large cities such as Joliet ami Pfcona Bu)liner said that "for no b.g- <4< T than Galesburg h \» I\AJ?.\ has been pretty good." Placement of officials at the fair is part of a concerted effort the SB A is making in Illinois to familiarize residents of smaller communities and rural areas of the aid the agency may provide them. ''Many SUA programs seem nounced today. BN Railroad Is Changing System On Local Route Work on a centralized traffic control system between Galesburg and Savanna, 111., will beg i n this s umme r, B ur 1 i ng to n Northern Railroad officials an- today t.o-s* SiiA off/:.ah will oe avaJ^o.'e for co >r/-.e:.r;g during tr-e Heari of Fair by, yer '/</i :..\ orga u:/jrf\<tU will rr.*f. < f//v:-. >.\ fair U?i!or-madfc to provide the spark hj>A v,;;i U :':>/;/ >AJ \ '/t.A.wt ' //fll(:il (Hn rf:k,nfJ te the econo- the centralized traffic control ftut:': of '.o many of our smaller 'om/r.>;o:»,e'; ' : An additional safety feature, f * § * J>wyer s a i d. • >ne people of these corn- tu e. tft^'-A be made aware ays tern replaces the manual block system over the 1 Simile route between the two cities. • 9 The first California per was printed on a vro/>-:r. hand-operated Hamate pre-,;.. f i ' f * t ' - * f < f * * - * f t - • If / </: jz /o-vfam--; It is this The automatic signaling de- a /*are.',ev : *nat v/e hope to de- ve.o,o U ./o*;;/.'; our appearances *a.:., b/o^oout Illinois." vices will be handled by persons under the supervision of i the dispatcher. N:'F :''i;iHi,i 'Ni |['jii('!! i !!! l .|r!||i!|j'ii);|ii|i'! |, 'iviiti ; '(i; l '''!'i' in'!|i|iH i i!'i | !|tti!!ii'i: , lii^fH" , !! , i | '!!i!l'l , ltl OTi!''!'!^'^)!!!!!'!!! 1 fi|II|tli!l|t!tH! I! ;i!!||l|||i|H|| , !|jl| t»ili Work on Plaza (Continues Work on the first phase of a $1.5 million shopping plaza- apartrnent complex near North and Broad streets is going at rapid pace. The complex is being developed on the site formerly occupied by the ilinchliif & Pearson Funeral Home ami Kroger Grocery Store. The project mils for construction of 10 shopping unils and 32-30 apartments. (Itcgislcr-Mail photo by Steve Stout.) \

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