Lansing State Journal from Lansing, Michigan • Page 19

What's up today 1 Michigan Technology Council holds 'Auto- mated Factory' seminar at MSU's Kellogg Center. 1 Michigan Bell opens Lansing office for hearing-impaired customers. Lansing State Journal Thursday, Nov. 7, 1 985 8B Consumers studies Midland plant options Update On thrifts The United States League of Savings Institution's annual convention in Dallas this week was filled with controversy and saw changes that could affect the industry for years to come. Federal Home Loan Bank Board Chairman Edwin J.

Gray announced a new government-funded corporation will manage the assets of failed thrifts, and Vice President George Bush declared support for keeping a separate regulatory system for thrifts. Director quits board Associated Press JACKSON A.H. Aymond, who led Consumers Power Co. as chairman for nearly two decades, resigned from the board of directors on Wednesday to give the utility's new management "a fresh start" Aymond, 71, was chairman from I960 through 1978 and had worked for the company since 1947. He was appointed to the board in 1957.

"I believe that with a new management taking over at Consumers Power, it is an appropriate time to end my long association with the company," Aymond said. "This will help make a clean break with the past and a fresh start" for the future, he said. Knopick said Consumers could not take any steps beyond the study without PSC approval. In October, the three commissioners told Consumers it could not spend any money on the defunct plant, including money to study the feasibility of completing the plant, either as a nuclear, coal- or gas-powered facility. "The commission has an obligation to ensure that Consumers Power Company rigidly adheres to that condition, which includes money spent for studies on the facility, as well as other conditions," the three commissioners wrote.

The commissioners were responding to Consumers' plea for reconsideration of a PSC order setting out conditions for a $94 million, six-year rate increase. Neither Fischer nor the commissioners could be reached for comment late Wednesday. Consumers stopped construction on the $4 billion Midland plant in July 1984 amid legal and financial troubles caused by cost overruns. The plant was about 85 percent complete. By CAROLYN K.

WASHBURN Lansing State Journal Consumers Power Co. will study options for the future use of its abandoned Midland nuclear power plant, despite a ban issued last month by the Public Service Commission (PSC) against spending any more money on the project Roger Fischer, chief of staff of the PSC, sent a letter Wednesday to Consumers Power Chairman Robert McCormick saying such a study does not require PSC approval, said Paul Knopick, spokesman for the Jackson-based utility. "We do not need commission approval to do a study on the future of company properties," Knopick said Wednesday. "We are pleased by the letter and we will do our Midland option study. "It is a study simply to give us direction," he said.

Following Fischer's letter, Knopick said the Consumers Power staff would do an internal study expected to be completed by spring. He said he did not know how much the study would cost. What is the U.S. League? Am Headquartered in Chicago, it's the country's largest thrift trade group. With about 3,500 member institutions, the league represents 98 percent of the nation's thrifts almost all savings and loans and a few savings banks.

How many officials attended? About 7,300 officials gathered for the league's annual convention this year. Spartan Cab hits roads on Monday What were the convention themes? A. Thrift officials heard news of record profits, but were warned their industry is endangered. They heard predictions of lower interest rates and were told that not even cheaper funds would save some 300 institutions on the brink of failure. For example, some federal officials said the thrifts' insurance fund the Federal Savings and Loan Insurance Corp.

is in desperate need of cash to handle the growing number of problem institutions. Still other officials insisted the fund could muddle through its troubled times. SEC looks into erratic trading By JERRY ESTILL Associated Press WASHINGTON The Securities and Exchange Commission (SEC), concerned with heavy stock trading fueled by takeover rumors, is investigating the possibility that insider violations are responsible for some of the activity. But in confirming that the agency is looking into recent topsy-turvy trading patterns, SEC enforcement chief Gary Lynch emphasized that he has no preconceptions about what he will find. "I don't know why there is all this rumor activity and I don't know why stocks are jumping," Lynch said Wednesday in a telephone interview.

"But we intend to find out" Lynch noted that cases involving stock market rumors are notoriously difficult to track and that such rumors, on their face, do not necessarily constitute a violation of law. For example, he said, market attention may shift from one chemical company that is a takeover target to a company that may "look equally attractive" when the original acquisition fails to jell. In that instance, the second company's stock price could well jump in a legitimate manner. "Truly speculating that a company may be a takeover candidate" and acting on that belief would not be a violation of law even though such a move by a 1 major trader might spur a sharp runup in the stock price, he said. On the other hand, "spreading of false rumors to influence the marketplace, particularly coupled with Who took what view? A The convention showcased a rare public difference of opinion between fellow top leaders of the same regulatory group: Bank Board Chairman Gray and Bank Board member Donald Hovde.

Gray took the pessimistic view on the insurance fund, and Hovde the sunnier one. Amid rumors of a pressure campaign by administration officials to push Gray out of the chairmanship, Bank Board watchers asserted that Hovde used the convention to campaign for the post. By PAT McCAUGHAN Lansing State Journal Spartan Cab green-and-white taxis will start rolling down Lansing's streets at 6 a.m. Monday, bringing a second taxi service to the capital city, according to Spartan President Richard Jury. Jury's 12-cab operation, which will create about 36 full-time jobs, will become Yellow Cab lone competitor in an arena where competition has been lacking for at least five years.

"We feel there is room in the market without any negatives to the existing cab company," Jury said. "There are contributions our cab company can make." Spartan Cab won't just be picking up and delivering people. It also will handle deliveries of documents and packages, as well as blood and donor organ transplants, he said. Seven of Spartan's cabs are licensed for use in Lansing. The others will operate within a 20-mile radius of the city.

"I thought of it in terms of providing services that heretofore weren't here. Competition's healthy," Jury said. But Yellow Cab President Du-ane Tacobs disagreed. "I don't think another cab company will increase ridership in any way. Competition is good for business, but I fail to see where it can be good in this case," said Tacobs, who also runs a package and delivery service.

Tacobs, who has been, in the Lansing taxi business 38 years, said he recalled when there were four cab companies in town, including the Lansing Cab the Red Top Cab Co. and an earlier Yellow Cab, all of which closed. His company, originally called Courtesy Cab, was started Jan. 14, Is Gray on the way out? A In his speech. Gray indicated he will stay on for a while longer.

Many at the convention, however, predicted he will be gone by the end of the year. Hovde reportedly has the backing to take over the post of U.S. League President William O'Connell. Lansing State JournalGREG DeRUITER Richard Jury, president of the new Spartan Cab prepares to give Lansing its second taxi service starting Monday Is the industry healthy? a profit motive, that would be a violation of anti-fraud law," he said. The most typical insider trading cases brought by the SEC involve corporate employees who buy or sell stock based on information not available to the investing public.

But Lynch said, "A lot of our cases have involved lawyers or underwriters, people who basically have bought information and are trading on it." He said the stocks of six companies rose sharply one recent day because of takeover rumors and that 20 stocks that week were unusually active for the same reason. Copper mine ready for Monday start Associated Press A The thrift industry is healthy despite the "bad press headlines" said Dennis Jacobe, league research director. "About 90 percent of our institutions are operating in the black and many will have record profits this year Given stable interest rates in 1986, we should set another record," said Gerald J. Levy, the league's new chairman. corporate relations for Michigan State University and a lobbyist for the National Association of Manufacturers.

He also once owned the Williamston Athletic Club, a bar and restaurant, which he sold in May 1984. "I feel there is a market that right now is not being provided for. We will provide quality cab service and are willing to work in a cooperative spirit," he said. "We're going to be using a marketing program in an industry that heretofore felt, 'We'll wait for you to call us. Well, I'm going to call you," Jury said.

1947 the last of the four to open. When Yellow Cab closed in November 1972, Tacobs purchased their assets and operated the two companies under the same management. With the purchase of Varsity Cab, an East Lansing company, in 1980, Tacobs said he decided to adopt one name Yellow Cab which today has 73 employees and 40 licensed vehicles, including seven in Lansing. The Lansing-born Jury, who says he's invested "many thousands of dollars" to start his cab company, is a former director of What about the pessimists? A Bank Board Chairman Gray, and others, such as former Bank Board official William J. Schilling, don't disagree that most of the industry is profitable.

But they warned the FSLIC will be merged with the Federal Deposit Insurance Corp. if the industry does not step in to save it At a panel discussion. Schilling said, "The industry must come up with the recapitalization of FSLIC or you are going to have to plan ahead on how the insurance funds are State Chamber's building plans OK'd WHITE PINE The White Pine copper mine, idle for three years, will start producing ore next, week under joint ownership of Northern Copper Co. and the United Steelworkers, the company's president says. AH that remained to begin production was the signing of legal and financial papers in the $26.7 million purchase, scheduled for today in Denver, said Russell Wood, Northern Copper president Recalled workers will take physicals on Friday and go into the mine on Monday, Wood said.

"By the end of the week, we ought to fire the first blast in the mine," the first step in getting ore from the ground. Wood said. Wood estimated the mine can produce 60,000 tons of copper and 1.3 million ounces of silver annually. The company will market its copper through Salomon Brothers of New York, Wood said. What if they're combined? issue $1.5 million in tax-exempt bonds to help finance the project The bonds must still be authorized by the state Treasury Department Lambert said the architectural firm designing the building Smith, Hinchman Grylls of Detroit consider the proposed site "one of the gateways to downtown Lansing." The chamber has owned the site about 18 months.

The chamber expects work on the building to start in March and hopes to move its 30 employees in by December 1986, he said. The new facility will allow the chamber to hold more of its functions at its downtown headquarters instead of renting meeting space in Delta Township hotels, Lambert said. "It's going to be a real addition to downtown," said Emerson Ohl, EDC executive director. By KATHY BARKS HOFFMAN Lansing State Journal The Michigan State Chamber of Commerce will move next year from its cramped quarters at 200 N. Washington Square to a new two-story building at the corner of SL Joseph and Walnut streets, chamber Research Director Dave Lambert said Wednesday.

The $2.5 million building will contain 20,000 square feet, with offices on the second floor and a large reception area, meeting rooms and a banquet room on the first floor, said Lambert. The reception area will be enclosed on the sides facing the SL Joseph-Walnut intersection by a zigzagging glass wall leading to a landscaped area outdoors that can be used for warm-weather receptions, he said. The chamber Wednesday received approval of the Lansing Economic Development Corp. (EDC) to A That possibility loomed like a cloud over the convention. "Protecting the FSLIC is one of my highest priorities," said Levy, "and that includes preventing its merger into the Federal Deposit Insurance Corp." However, sources say senior White House officials, including Chief of Staff Donald Regan (who is said by some to be leading the campaign to replace Gray), are supportive of merging the funds.

From USA TODAY Update. For more information call 703 284-34M. We ve been turning the wheels for six weeks already," said Wood. "We've got 60 to 80 people on the payroll now. We're putting the mine back together." Wood said the company would rehire miners "as soon as we get the word that we've got money to pay more folks than we've got now." Portfolio Also: GOT: carsaEss 0Ct.

21-31 Teleram computer firm goes bankrupt WHITE PLAINS, N.Y. Teleram Communications the company that introduced the first successful portable computer a decade ago, has gone bankrupt Analysts said it could not keep up with bigger companies with more market strength and cheaper, better computers. Ford lists hospital expenses DETROIT Ford Motor Co. spent $780 million including $20 million spent for 27,000 longer-than-necessary hospital stays on health care for its employees last year, according to a company report on how much it spent at 70 Detroit-area hospitals. The $780 million spent on employee health care last year added $275 to the cost of every Ford vehicle sold in the United States, the automaker said.

Indiana woos Toyota daily INDIANAPOLIS State officials are talking with officials from Toyota Motor Co. to lure the automaker's planned $500 million plant to Indiana on a daily basis, Lt Gov. John Mutz said Wednesday. An aide to Sen. Richard G.

Lugar also said the Indiana Republican made calls to Japanese and Toyota officials in the past week to urge selection of Indiana as a site for the auto assembly plant Compiled from staff and Associated Press reports. Prescott, Ball and Turben, one of the nation's leading investment banking firms, on Wednesday raised Michigan's general obligation debt rating from mid BAA to mid A stable, placing the state in the "low risk" investment category for the first time in three years. First of Michigan Capital Corp. reported Wednesday that consolidated net income for fiscal 1985 was $2.2 million, or 90 cents a share, the second-highest in the firm's 52-year history. Japan Air Lines said Wednesday that pretax profits could decline by about $73.8 million in the fiscal year ending next March because of the Aug.

12 crash that killed 400 people, the worst single-plane disaster in history. Rockwell International Corp. had a 20 percent boost in annual profits to a record $595.3 million on record sales of $1 1 .3 IBM expects to show growth GREENOCK, Scotland International Business Machines Corp. expects to show "some strong growth" in the fourth quarter of 1985, John F. Akers, IBM's president and chief executive, said Wednesday.

Akers would not give projections for fourth- quarter profits. IBM executives said earlier this year they expected profits for all of 1985 to exceed those of 1984, and the company has not backed off from that prediction even though fourth-quarter profits would have to jump 25 percent to achieve the goal after three quarters of declines. GM issuing 3 recall actions DETROIT In three separate recall actions Wednesday, General Motors Corp. is asking owners of 5,250 light and heavy duty trucks and 300 Chevrolet cars to take their vehicles to dealers to correct possible safety problems. The recall affects 1983-85 GMC Astro tractors for a check of rear air brake release, 380 1982-85 Chevrolet and GMC P-3035 light trucks with engine fan blades that may break apart and 300 1985 Chevrolet Celebrities with clutch cables that may have been improperly installed, causing a loss of brake fluid.

1985 1984 DIFFERENCE 3,939 1,621 -0143 STam 5,860 1,935 2203 KyiST 3,393 2,438 39 SMffc ttf 4-dr wraioa of tt 5omti Sales for all three Lansing-built GM20 cars were up in the Oct. 21-31 sales period compared with a year ago, which was shortly after their introduction..