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Show Urdir Univpruity of Utah Salt Lake U&a City, Utah 6cil2 VOLUME 16, NUMBER 40 SALT LAKE CITY, UTAH TUESDAY, FEBRUARY 29, 1972 W 'T Stigma Fading Utah Supreme Court Order Reversed 6 Year Statute of Umitation.on Medical Expenses The number of Amer(ACCN) icans turning to bankruptcy as a way out of their debts is on the rise again. Over 200,000 bankruptcy petitions were filed in 1971 up 3.6 percent from 1970. Bankruptcies have risen steadil) since World War II, setting new records each year until they reached an all-tihigh in 1967. They 3 to 2 Decision U. S. STEEL v. INDUSTRIAL COMMISSION LIAM ZELE, SR. & WIL- Industrial Commission . . . there is no Statute of Limitations in the section providing for medical payments. Supreme Court: Industrial Commission order reversed . . . six year statute of limitations applicable to applicant's award for partial disability has run. Justice R. L. Tuckett dissenting: "The fact that the action may remain dormant or inactive for a long period of time is not a circumstance which will open the door so as to permit the statute of limitations being interposed as a defense. Justice E. L. Ellett concurs in the dissenting opinion. Plaintiff counsel: Parsons, Behle & Latimer, Erie V. Boorman, 520 Kearns Bldg. Defendant counsel: Vernon B. Romney, Robert D. Moore, Gary E. Atkin, 530 Judge Bldg. declined somewhat in "68 and 159 and now are creeping up again. According to a recent survey by the Family Economics Bureau of Northwestern National Life surance Co., the number of has risen almost 600 percent since 1950,' when only 34,000 were filed. Over a billion dollars in debts is now washed down the drain every year. because of larger average size loans. The Veterans Administration, and., The HUD-FHacquired home the Federal Housing Administration set records in the number of loans property inventory, with 39,000 and respective agencies guaranteed units, was higher at the' end of 1971 or insured during 1971, the National than for the previous year. Association of Real Estate Boards $7.5-- $ 18 Million Assets reported! The VA recorded a high of Farmers State Bank 284.000 approved loans during 1971, addle the FHA recorded a Keeps Pace With high of 541,665 units. Donald E. Johnson, administrator Davis County Growth of veterans affairs, attributed the gain for the VA to three factors: Construction is still underway at A great improvement in the Farmers State Bank, which will general availability of mortgage provide an additional 4,500 square money for home building and feet This added space will account buying; the first full year of for improvements in the Real Estate operation under the Veterans Department, Consumer Lending and Housing Act of 1970, which restored Master Charge Departments, and eligibility to many veterans and include the addition of the Banks Drive-UTeller provided greater flexibility for the second and third GI loan program; and a reduction in Windows. Cost of this remodeling the maximum interest rate from a ' will be approximately $121,000 excluding the cost of the new teller high of 8 per cent to the current 7 windows. Construction is being per cent level. handled by Herm Hughes and Sons Gains were noted in other areas as General Contractor of Bountiful. well, Johnson said. Some 820,000 Architect for the project is Larry veterans requested determination of Jansen, also of Bountiful. Remodelloan eligibility, an increase of 64 per ing is scheduled for completion cent over 1970; 368,300 applied for early in 1972. While Davis County has enjoyed loans, an increase of 90 per cent; and a 52.9 increase in population over there were 625,200 requests for the last ten according to figproperty appraisals, up 60 per cent. ures releasedyears, 1971 Census, in the The popularity of the GI loan Farmers State Bank has more than program with younger veterans was kept pace with a 240 increase in underscored by the fact that about 70 assets during that same period. per cent of the 1971 home loans were From $7.5 million in total assets in made to veterans 35 years of age or 1962, the Bank has grown to over less. $18 million in total assets as of According to the Department of December 31, 1971. According to Mr. Newell P. ParHousing and Urban Development, Bank President, 'This record kin, the volume of HUD-FHmortgage of and expansion in both growth insured housing started during 1971 facilities and scope of physical reached 541,665 units, a part of e services results from 652.000 units started under all HUD planning by the Officers and Board programs. of Directors of the Bank. Home units started under FHA Recent advancements at Farmers inspection in December were above State Bank include the election of the 20,000 level for the 18th time in 19 two officers to the Board of Direcmonths. For 1971, home units started tors. Mr. C. Alan Murdock, Senior and staff member of were 301,200, 29 per cent above 1970. Farmers State Bank since 1964, and units were started Apartment Mr. LeRoy Parkin, Senior 240,454, up from 199,308 in 1970. and Cashier, a staff memApplications for proposed homes since ber 1954, were elected memtotaled 366,802 in 1971, up from bers of the Board of Directors. Re315,012 in 1970. For proposed Mr. garding these promotions, apartments, applications were Newell P. Parkin states, It is 250,341, up from 222,078 in the prior through the addition of such dyyear. namic young men to our Board that The 317,400 Title I loans insured in the Bank may look forward to a 1971 were fractionally lower than in continuation of policies geared to result in strong, heajthy growth in 1970. However, net proceeds at $674 service and facilities pillion totaled about $57 million , A 14-ye- ar 12-ye- ar p A long-rang- nt Vice-Preside- nt es Small Ones Count Some bankruptcies like those of the huge Penn Central Railroad or a member of the wealthy DuPont make newspaper headfamily lines. Although the vast majority involve small businesses and consumers who dont make headlines, -- higher, Vice-Preside- In- bank-notic- U.S. Agencies Housing Loans At Highs in 71 D.C. (ACCN) F63 91972 Personal Bankruptcy Rise Laid To Different Causes Industrial Commission WASHINGTON, yiSAJilS3 . the results of their bankruptcies are felt by every American. The losses written off by bankruptcy are reflected in increased interest rates all borrowers are charged and in the price consumers pay for goods and services. The Family Economics Bureau found several factors have contributed to the rise in consumer bankruptcies. For one thing, credit is easily available. Also, pressures are exerted on families to buy now tind pay later. Some consumers themselves may be faulted for their itch to spend and their inability at times to distinguish between luxuries and necessities. The new morality which tends to put a lower priority on financial responsibility, and harsh collection laws in some states are also contributing factors. Several Causes The reason for filing bankruptcy is Suit Against GM Domands Engine Mount Change - A $1 LOS ANGELES (UPI) billion damage suit against General Motors Corporation demands the automaker replace, not just modify, unsafe engine mounts in 6.7 million Chevrolets now being recalled by the factory. The class action, filed here, February 23, on behalf of the owners of affected models, also asks for $1 billion in exemplary damages. The suit said GM is planning only to install metal straps to reinforce the defective motor mounts, even though the company has been making a stronger type of mount for the past two years. The suit asked for a court order requiring GM to substitute the new type of mount without charge to the owners of 1965 through 1969 Chevrolets. The cost would be around $260 million for GM, the suit estimated. The recall was launched after some tests showed that when the mounts break, the engine can rotate. This, in turn, can cause failure of power brakes and steering and jamming of the accelerator. different for each individual, but in all cases there are both basic and triggering causes. The most common basic, or underlying cause, is poor money management. A desire to keep up with the Joneses, impulsive buying and failure to provide for emergencies all lead to careless and reckless use of consumer credit. Sudden fluctuations in earnings as a result of s or elimination of overtime are also primary causes. Other pay basic reasons include large hospital bills, medical expenses and casualty losses, such as caused by a fire or lay-off- Deficit Dollars Pump, Economy, Feed Inflation - ByLeeRuwttch Will confidence in the dollar be restored? Deficit spending by the Federal government should (ACCN) stimulate general business activity. This is based on the assumption that if the amount spent by the government tor goods and services is greater than the amount of taxes taken away from people, the total demand for goods and services will increase. Now with a $40 billion deficit, a substantial inflationary effect is likely and the foreign exchange markets are uneasy as our dollar continues to give ground against most other currencies. Until the U.S. economy shows signs of improvement little confidence will be regained. JAPAN MUST DROP her illegal import quotas. Germany and Japan must eliminate restrictive import licensing. Japan must hold down its lopsided trade surpluses with the tornado, often inadequately covered by insurance. The triggering cause, or the straw that finally breaks the camel's back and sends the debtor to bankruptcy court is usually threatened or actual garnishment of Attachment wages. and . repossessions of such things as a car used to get to work and harassment by creditors are also triggering causes. Four Debtor Types Studies have shown there are four types of debtors. The first is the debtor who is the victim of circumstance the honest person struck misfortune. Second is the by mismanager, who, while honest, simply lacks the ability to budget his income and gets deeply in debt. These two comprise the majority of all debtors. The other two types are the wont pay, who has no intention of paying his bills, and the who leaves town after skip, running up huge Nils. The average consumer bankrupt is not lazy or dishonest. He works hard. He is 30 years old, married and has a He is a larger-than-avera- ge blue-coll- ar family. worker with a 10th grade education and few marketable skills. He owes money on furniture, his car, appliances, tools and clothes. He is also behind on his rent or his mortgage payments, and he owes money to a small loan company, his wifes doctor and the childrens dentist. But the largest portion of his debt is owed banks and loan companies. Medical and dental Nils are another large item. In one bankruptcy court a study , revealed that 78 percent of the debtors surveyed had at least one hospital or medical bill; for three UJS. percent, health expenses were more Little progress has been made than half of their total debts. Two Procedures with Canada on trade concessions. e Eighty-fivAs foreign Central Banks take in percent of all to sumer debtors file straight bankmore dollars Government U.S. ruptcies. This discharges all deNs gold) they buy except taxes, alimony, support bonds, which reduces Washington's need to come to market for more payments and liaNlity for injury to another person or to property. borrowing. The remaining 15 percent file TRADE CONCESSIONS obtained under Chapter 13, the Wage-Earnby the U.S. are disappointing, especially from the European Plan, enacted in 1938. This enables a countries and Japan. Delays and debtor to work out a plan, subject to talks continue as the juice of gold approval of his creditors, to pay his deNs under court supervision over remains high $49 per oz. Many fear that one devaluation generally an extended period of time, usually 36 months. Chapter 13 is suitable leads to another and more exchange when the debts are not excessive and controls could result. to restore the debtor has sufficient earning U.S. Dont expect the convertibility of the dollar to gold for capacity to pay. While under court several years. supervision, a Chapter 13 debtor is have protected from garnishment, THE REPUBLICANS effort to conlaunched an all-orepossession and harassment. In Chapter 13 cases, a percentage vince voters that the economy is of the deNs must be paid to a healthier than the 6 percent unemtrustee. In straight bankobvious It is ployment figures imply. the that the 4 percent unemployment bankrupt loses whatruptcies, ever assets he has, except those goal is unattainable this year. Auto tire ratings have the orexempt under state law. confused customer Stigma Fading highly dinary There is still a stigma attached to with no uniform tests or measurement. Labeling and grading going bankrupt, although doing so no have little relationship to quality longer means financial ruin. When levels. What is not alarming is that money is tight, it is doubtful that a some new tires arent even perfectly bankrupt can get a home mortgage, but this is not true when money is round. THE ENGLISH COAL STRIKE relatively easy. He would not have business off a brisk year any trouble in obtaining new credit may turn that was on to a good start. The for any item that can be repossessed. Some retailers eneconomy showed signs of when the crippling strike courage a bankrupt to open new in the layoff of about 1.2 lines of credit, knowing that the law resulted million workers. prevents him from filing bankruptcy 1 again for six years. (non-convertib- - le er ut court-appoint- ed - |