Northwest Arkansas Times from Fayetteville, Arkansas on May 16, 1974 · Page 24
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Northwest Arkansas Times from Fayetteville, Arkansas · Page 24

Fayetteville, Arkansas
Issue Date:
Thursday, May 16, 1974
Page 24
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Page 24 article text (OCR)

Northwest Arkanwi TIMES, Thurt., May 16, 1974 r«vrmv(Li.c. »HKAN»A* Effective Interest Near 14 Per Cent By J O H N CUNMKK NEW YORK (AP) -- High as they are, those rising interest rates being reported day after * (lay are even higher than is immediately obvious, in some instances by very s u b s t a n t i a l , and for some borrowers, critical amounts. The situation is causing con- siderable fear and among corporate frustration borrowers and some lenders, too. And to some, real distress. The prime lending r a t e for (he best corporate customers is now between 11.25 and 11.40 per cent at big n a t i o n a l banks, but relatively few customers receive those rates. More likely IRS Disputes Claim That Compensation Is Taxable LITTTLE ROCK (AP) -- The was of no consequence to the Competitors The Fiflh Avenue Kuilriing in Pine Bluff is the local campaign headquarters for Gov. Dale Bumpers, bill Monday Ihcre was a gianf sign sup- the sign painted hecause he p o r t i n g Sen. J. \V. Fulhrighf. is a supporter of Fulbright Scott Capps, who has an of- in his race against Bumpers, fice on the second floor, had (AP Wirepholo) With 'No Holds Barred' Attitude Milton Berle To Release Autobiography By BOB THOMAS LOS A N G E L E S ( A P ) -- The dedication of Milton Rerle'.s autobiography reads: "To the f u n n y men ... who were, who are, who will be ... heroes who faced the world naked, but for the weapon of laughter." Berle has finished a 2'^-year task of summing up Ins life. and he asserts that readers will discover the naked Boric, without the cover-up of his brash, breezy comedies. "They won't be calling me 'Uncle Miltie' any more." said the comedian. "I tell the story with no holds barred, and I use the kind of language I n o r m a l l y use -- not for shock t r e a t m e n t ; that's .111 at the way f speak. "It's the story of the kind of crazy Hfe-style t h a t comedian? ha ve to Jead, a ppea ring n akec : before every audience. There is also a strong silver-cord stoo about my mother and myself, "My mother -- God bless hci -- was mother, father, wife sweetheart, everything to me But there's no hint of incest this is no 'Oedipus Hex.'" Berle was c a r r y i n g gallej proofs of "My Autobiography.' which he wrote with magazine editor Haskell F r a n k e t . It wil be published bv Dclacorte or: Oct. 28. He displayed a feu and it indeed strong pages stuff. Unlike other show biz con fessionals, t h i s one is no con quest of alcoholism--"I never drank in my life, never likec the taste." Nor was Berle ever on dope--"1 was hooked show business." Although he said the bool will not he X rated, he a d m i t ted that it will depict bis ro maniic career, ]eginning wit' his loss nf virginity at !2. He will also tell about hi brushes with the M a f i a , whic owned many of the night club i which he appeared. In 1531 lis throat w a s slashed by a loodlum. "Why is it. Uial the things yon cmcmbcr most vividly in your fe are the bad things?" he 11 used. Among t h e m was the time in fl15 when he was trying out a loomed show, "Spring in Brail," in Pittsburgh ,and he was ivcrcotne by the neeri to sen iis wife, Joyce Matthews, and heir newly adopted daughter. 'The show was death. Joyce \na\ Vicki couldn't come to see me. and they scheduled a re- icarsal for Thanksgiving day," ierle recalled. "I became hys- erical and made a dive for the otel window, "My manager tackled me be- ire I could take the leap. ' ' He ca I meet me clown and lid I'd feel better if I had a meal. He started ordering Lur- Thundershowers Remain A Threat Across Nation By THE ASSOCIATED PRESS Throats of rain and thunder showers spread over most o! the nation today and golf ball size h a i l hit Grand Island. Neb., a f t e r a day in which 300 per sons were evacuated from Helena, A r k . , homes because ol rain-caused flooding. Rut the plains, centra] Gull and n o r t h e r n A t l a n t i c stales en joyed f a i r l y clear skies. Thundershowers r u m b t e c from South Carolina througl Florida, soaking Gainesville in Imosl an inch of rain in hours, and snow was reportec in Oregon. "U seemed like the rain slopped right liere in Phillip: County and began coming rtowi in sheets," Deputy Sheriff Dor ris Lee said at Helena, when eight inches of rain fell in 2 hours. No injuries were reporter Damage had not been esli materl. cy aid, the telephone. and I 'See if they have roast . "Isn't that like a comedian? ust after trying to kill himself, c wants to see if the kitchen as roast beef! " Berle recorded 511) hours of ape for the book and admilled hat the experience was the ·quivalent to being psychoanalyzed, which he never has been. He uncovered feel- ngs of guilt from his youth, when he was the breadwinner in his f a m i l y . At 65, Berle maintains the same working pace he has known v i r t u a l l y all his life. He recently played a dramatic role "Lepke" with Tony Curtis. He is taping two shows on comedy for ABC's Wide World of Entertainment and may appear with Frank Sinatra in Alaska iext month. Sills Wins Award Dr. Oren A. Sills Jr. was the recipient Monday of a certificate of merit for superior performance of duties as veterinary inspector in charge for the U.S. Department of Agriculture at the Cainpbell Soup Co. poultry processing plant in Fayetteville. The award carries with it a monetary stipend equal of w i t h i n - g r a d e increase amounting (o approximately $600 per year. Dr. Sills has served in the USD A Inspection Service approximately 35 years, and this award is one of several Dr. Sills has earned. Internal Revenue Service disputes the assertion that appropriations for public relations and upkeep of the state mansion are personal compensation to Gov. Dale Bumpers. Roger Mears of Little Rock, Pulaski County Democratic chairman, made the assertion last week, saying the governor received more than the $10,000- a-year salary in personal compensation. Mears has won suits in lower courts against cxjen,ses drawn by county officials and legislators, but the f i n a l judgment in those cases is pending before the stato Supreme Court. Also, those suits are hased on laws that d i f f e r from the statutes t h a t set up the appropria lions Mears questioned ir Bumpers' case. Mears said a $12,500 appro priation for public relations expenses and a $32,400 appropria lion for mansion upkeep were personal compensation, giving Bumpers a total of more thar $50,000 a year. But Emmett Cook, slate di rector of Ihe IRS, disagreec when he was asked about the IRS position on those two funds. Mears, a supporter of Sen. J W. Fulbright, Bumpers' oppo nent in the May 28th Democrat ic senatorial primary, said the money was personal com pensation because Bumper drew it before expenses were incurred. Cook said the time of with drawal compared to Ihe t i m i when expenses were incurrei RS in deciding whether the oney was personal income, ^ersona! income is laxable. Cook said the two f u n d s were xempL from taxes, if used for he purposes stipulated in the aw. "If the money is used fo unnirrg the mansion, paying he help, and so forth, it's no axable," Cook said Cook said it was not neces iary for Bumpers (o list the noncy on his lax return hen show t h a i it was decluc ible as business expenses. "We call on every new governor and go out and tell him low to account for his funds s can stay out of trouble if h wants to stay out of U," Coo" said. "We suggest to every gover nor that they keep good record and account for the money s lhat if he's ever audited an any questions are raised he \vi lave records it," Cook said. to substantial Pioneer Earnings DEWITT. Ark. (AP) -- Pi neer Food Industries. Inc., i DeWitt has earned $1,723.3' d u r i n g the f i r s t nine months i fiscal 1974 on sales i $60,680,694. F. A. 0'Daniel, president i the f i r m , said the earnings re| resent $1.35 per share con pared to 84 cents a share du ing the same period in fisc; 197,1. ey pay close to H per cent. Traditionally, The reason is a custom called p a n y borrowed e compensating balance that equircs corporate borrowers to eep on deposit--earning no i n rest--between 10 to 20 per ent of the loan's face value. In eory, Ihis compensates Ihe nder for various services--ad- ce, collection, bookkeeping nd the like. The added expense for hor- owers doesn't end there. The reasurer of a well known mul- i n a t i o n a 1 corporation cxlained: COMPENSATING BALANCE "It is d i f f i c u l t for a company i m a i n t a i n t h e precise com- Hnsating balance so you try to eep a bit more on deposit. And lat means your effective rate s higher still." Interviews with bankers and orrowers indicate that rates re even higher for many com- tanies. Sound but not prime lorrowers generally must pay 1 ir 2 per cent over the staled trime rate. Thus, some concerns now are .laying more than 15 per cent lo jorrow from banks, and 20 per cent or more to borrow From nig finance companies that of- er loans secured by equipment and accounts receivable. Even at bank rates in excess if 15 per cent, many corporate borrowers still cannot be cer ain that rising borrowing costs end there. when a com- al a specified interest rale it could be certain t h a t Its money costs would be a certain number of dollars for a certain period of lime. That certainly no loncer exists. To reduce t h e i r risk during these unprecedented and unpredictable interest rate increases, many banks have introduced a lexible prime rale. When the prime rises for n e w ' l o a n s , il also rises on existing ones. Another technique is the disposition of some big lenders, such as life insurance com- lanles, to demand not only an nlerest return but a piece of .he action as well. CONDITION OF LOAN Builders are especially f a m i ,ar with this practice, in whicr :he lender obtains a share ol ;he building's rental income as a condition of making the loan. When a company declines t pay high rates, or is refused money, it still has an option open: It can finance Use! through equity, by seling an in t crest in Ihe company rathe i than borrowing. For many companies, how ever, this escape temporaril has been shut o f f . The cquit markets are also in poor shape since investors for the time being seem to prefer Icndin; money at high rates and real Lively low risk. New issues o stock are selling poorly, if White smaller companies, especially those hoping to issu« jublic shares for the First time, lave been having a tough time f it, some of the larger companies also have been forced to postpone or reJuce stock offer- ngs. The HOME BUYER home buyer, too, has been affected by the tendency "or true borrowing costs to exceed posted rates. Mortgage enders increasingly seek to lave borrowers become depos- tors too--at a lower interest rate than they could get elsewhere. Lenders also are inclined to reserve the right lo refinance mortgages at the end of f i v e years, t h u s escaping the usual ZO-year commitment at a set rale that has been traditional win mortgages. Although not new by any means, poltns are common on mortgages today. When interest ra I es rise above s la le usu r y laws or the upper limits of government backed mortgage rates, a lender has a choice: Slop m a k i n g loans or charge points. A point is I. per cent of the loan, paid at the time of the transaction, by either the buyer or seller. Nobody, it seems, is entirely exempt from Ihe consequences of a distorted money markel. Doug Brandon has fought for good legislation throughout [12 years in the General Assembly. For example/ he wrote the Arkansas Rural Road and Highway Act, which appropriated 33 million for highway construction with 59 million set aside specifically for rural roads. Dong Brandon has th* legislative experience t h a i Arkansas needs for its Lieutenant Governor. Doug Brandon FOR LIEUTENANT GOVERNOR raid tor by Meek Koonro and Ceo I Weather Forecast Cooler weather, bat with snn- my skies, is forecast for most ·f the nation Thursday. Shower* are expected (or the northern Pacific coast a n d from West Virginia to h e lower Great Lakes. Warm weather is forecast for t h e Soulh and Atlantic coast dates. (AP Wirepbot* Map) The greening of a drink. When the Bullfrog originally occurred to us, we had some serious second thoughts about it. Granted it was wonderfully refreshing. But it seemed so simple and obvious that we were afraid someone might snicker if we suggested it. Limeade, after all, is about as sophisticated as playing Monopoly on the back porch. And never cheating. We decided to try the drink out on a few of our more jaded friends. They would tell us the truth.Their reaction? The drink was too good to keep under wraps. That gave us the courage to suggest the idea. And now that we have, you might want to try a Bullfrog sometime. It tastes as fresh-faced as summer itself. The Bullfrog: j To make a Bullfrog, pour one and one-half ounces of Smirnoff into a tall glass filled with ice cubes. Fill with four ounces or so of limeade and stir. Qmirnoff leaves you breathless? f VODKA.EO K»FJJOOr.C'5TlLLEOfROM GSAIN.$l£,PIEfifttS.ftRNOf FFlS.lOrV^ONOFHEUELEIW.INC.JHflRTfQfJO.CONNECTrCUT-

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