Lubbock Avalanche-Journal from Lubbock, Texas on April 3, 1975 · Page 4
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April 3, 1975

Lubbock Avalanche-Journal from Lubbock, Texas · Page 4

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Lubbock, Texas
Issue Date:
Thursday, April 3, 1975
Page:
Page 4
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6-A-lUBiOCK AVAIANCHE.JOURNAU-Thursday Momfcu. April 3, 1975 BURKED COTTON — Firemen 'are extinguishing the last smoldering bale of cotton one of 58 on the R & T Truck Lines trailer The fire started about 12:09 p.m. Wednesday 3n the 5400-block of Avenue A, according to firemen. The cause of the hour-long fire that destroyed approximately $8,000 worth of cotton was under investigation late Wednesday. (Staff Photo) INVESTORS'GUIDE By SAM SHULSKY Q. I would like some Informa lion on retirement, including the list of stocks you recommended in a recent column. 01 is it too late to plan? I am C8. A. It is never too late to plan although the earlier is always the better plan. What I want to make clear to all readers, retired and otherwise, is that I do not recom- anend specific stocks in the column. And I am reluctant to discuss specific stocks even in per- Bonal messages. To broadcast such recommendations could do considerable harm because the investment needs of all readers are not the same. I do have .suggestions on retirement planning; I do have lists of stock which are considered long-time dividend providers; I do have a list of suggested growth stocks. But it would be foolhardy of me to advance a specific stock or group of stocks "recommended" as of the moment. That is not my business, and I am certain the SEC would take a very dim view of my acting as a market tipster. • • O Q. We would like some Information on short-term investments, but with no experience, we do iwt know which way to RO. Where can we >;ct information on bonds, Commodities, etc.? Whore, can one Ret a u..^..v*i *-^*^t..i t,iji~, ait caaiiig tucir fear of "long-term" investment when that is exactly wnat they should have. Bonds arc generally long- term investments. Commodities, except in the hands of professional hedgers, are hardly an investment at all but more likely an outright speculation. You can get a list of brokers by writing to the various stock exchanges or by simply looking through the telephone bork' Check their reputation ]W, as you would check that of /* doc tor or lawyer. "Tips" — forget about them e o o Q. Please <cll me what per ------- -..- — ....*_, &*.'* <i, -*j"* of brokers and how docs one chuoso a reputable firm? How does one. get "tips" on stocks, bonds? A. To start with, "short- term" means different things to different investors. A corporation treasurer can put a million dollars to work for only four days. A Treasury bill, which runs only up to one year, is considered the basic factor in all short-term investing. A bond dealer will talk of a bond due in five years as "short-term" (as contrasted with, for example, a bond issue due in the year 2005). I haven' the slightest idea what you have in mind or for that matter whether you should consider short-term investing at all. I find, al too often, readers who confess to little or no fin- cenfage of a "return of capital dividend is used to reduce the tax cost of a stock. I have been told you deduct 15 per cent of Hial dividend from <ho cost of the stock. My broker says I deduct the full amount. A. I am with your broker — 100 per cent of such a return of capital dividend must be used to reduce the tax cost of your stock when you figure capital gam or loss on a sale. I don't know where you got :ho 15 per cent figure, unless you are confusing it with the act that in some cases only 10 per cent or 15 per cent or 30 >or_ cent, etc., of the total cash dividend may be considered as a return of capital. Whatever be . — --v-j.»i v»« M, i that portion is, all of it used to reduce th e tax cost © • • Q. Wo art? in our 70s „„„ substantial investments. What changes would yon surest so tliat we ,can do the hcst for ourselves and our children? A. Let's take one thing at a time. Your combination of high grade bonds and good quality, generous yielding utility stocks is excellent for your purposes and should not be disturbed. When your children inherit this money, it will be time enough for them to make any changes which suit their needs best. • • • Q. I have sonio money invested and tJio income is hurting me tax-wise, i j,lan to retire in 1080. ITow can I invest so as to Rime my fax Imrden until tb*>,n, after which my bracket will drop sharply. A. E bonds are one answer. General obligation tax-exempt bonds issued by your- state and due in 1980 are another. • '• • Shulsky welcomes written questions, but he will be able to provide answers only through the column. For information on mutual funds, please include a self-addressed, stamped envelope. Address your requests to Sam Shulsky, care of The Lubbock Avalanche-Journal. Box 491, Lubbock, Texas 79408. Survey Shows Hospital 'Slump' CAMBRIDGE, Mass. (AP) — People have begun to postpone surgery because of the recession, and hospitals are now op- terating 10 to 20 per cent below their usual levels, according to a survey conductel by a private research firm. Among its other effects, the economic slowdown contributes ;o problems hospitals are having paying their bills and reduces demand for medical supplies, according to Richard L. Hughes, director of health care study for Arthur D. Little, Inc. "We tend to think of all hospital care as being emergency, but a segment of medical needs are things that are postponable, such as cosmetic surgery," Hughes said. "That's where we're seeing the lighter load. /'Most of the demand for hospital space is still there. It may be 80 or 90 per cent. But instead of hospitals running at 100 or 101 per cent of capacity as before, it's down now." The reduction in demand has been felt most sharply by suburban hospitals, he said. Big city teaching hospitals are as full as ever. Among those who are avoiding hospital stays appear to be people who have been laid off and have lost their group health insurance. "During a recession, people think long and hard before they go into a hospital and take on a serious debt unless it's an emergency," he said. At the same time, private medical insurance companies are trying to cut expenses by challenging claims that they ordinarily would let pass without question, Hughes said. This means that the companies are slower to pay hospitals. And as people rely more heavily on government insurance programs, these funds, too, are slower in getting to hospitals. "Ninety per cent of payments to__hosj)ilals come from these Busy Summer Slated For Area Scouts It will be a busy summer for Boy Scouts in the South Plains Council who will he holding family picnics, going to summer camp and to high-adventure bases. More than 80 Scout troops and Explorer posts with 300 members will be attending Camp Post and Camp Tres Ritos, the summer training camps of the South Plains Council, BSA, located near Post and in the Carson National Forest, New Mexico. The Scouts and Explorers from this area will take part in canoeing, rifle range practice, archery, forestry, conservation work, hiking, and survival skills, according to Jack Baker, council president. In addition, high-adventure programs will be the-features of summer travel by more than 90 boys and young men who will attend Philmont Scout Ranch, located in northern New Mexico, and the diaries L. Sommers Wilderness Canoe Base by Ely, Minnesota. Cub Scouts will be taking part in many types of outdoor activities with their families. One of the highlights will be the Cub Day Camp held one day during June, July and August, at Camp Post, Also, the Lad and Dad overnight camp out at Camp Post will be held for the older Cub Scouts and their dads. bird parties," he said. "The problem is one of time lag. It .akes so long for the hospitals get money in the front door that they are having a hard ,ime paying their bills." Hospitals used to take 45 to 60 days to pay their bills to medical suppliers, Hughes said. Now they often take 180 days. This, along with tapering de-stop mand, has put a squeeze on the makers of such medical supplies u X-ray film, sutures, bandages and drugs. "Hospitals are trying to cut back where they can and maintain their inventories," he said. "Companies that make medical supplies have begun to lay off, to shorter work weeks making certain lines." Demand for medical supplies has grown at a rate of 10 to 15 per cent for the past 10 years, Hughes said. Now the rate has dropped to 1 or 2 per cent. Hughes said the survey, conducted for investment firms and medical suppliers, reached 230 hospitals representing a or cross-section of the 7,000 hospi- Itals in the United States. ^•^ ^^ Dillard's A memory you can count on! Texas Instruments TI4000 A desk-top calculator with an electronic memory that stores — and instantly recalls —answers to complex problems. Adds, subtracts, divides and multiplies (with a constant} into the BILLIONS with its 12-digit display. Full floating decimal. Mixed chain calculations, credit balance and automatic percentage. AC operation. Stationery 89 95 Factory Opens Again As Sales Increase ANN3STON, Ala. (AP) — A clothing plant that was to remain closed until August reopen-s this week after an unexpected rise in sales, the firm says. Plant Manager Chuck Gashler said that s o m e 200 em- ployes, about half the normal work force, were recalled to the Imperial Reading Corp. factory. The plant makes jackets, jeans and pants. RGJI ALL NEW RCA PICTURE TUBE S 148 C Most model* Price include! • Service calt • Free pickup & delivery • Sel thoroughly checked and adjusted Vlfendel's .-44- V Famous Label Leisure Suit for under S 25 THE most famous name in casual suits! Reg. 38.50 value! WHAT'S A A giant value! Now YOU can have a casual leisure suit... just like everybody else! It's so comfortable — loose fitting jacket, no tie and, if you wish, rolled back cuffs! A great way to live ... anytime! Made by a maker of casual and western wear. The jacket (in sizes 38-46) features a pair of big lower pockets and shirt styling. Slacks (in sizes 30-42} are flared and have wide belt loops. 100% polyester double- knit. Choose from brown, burgundy and navy ... or have ALL THREE! • Men's Leisure Suits SHOP DILLARD'S SOUTH PLAINS MALL STORE MONDAY THROUGH SATURDAY 10 AM TO 9

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