Show 8A Standard-Examine- Friday October 21 1988 r G Cost of living up 02 1988 By KRISTINE LOOSLEY Standard-Examine- staff SALT LAKE CITY — The cost ing for residents of the Wasatch of livFront increased 02 percent during September thanks to increases in cost of utilities housing health care and groceries First Security Corp said today The inflation rate increase marks the second consecutive month of higher overall prices in Utah said First Security economist Kelly Matthews “It appears inflation is under control” Matthews said predicting only a slight increase in prices through the rest of on Wasatch Front local rates means very little because costs of clothing food and housing were all affected by the return of college students to campus something that happens only once a year If local figures are annualized they equal an rate of 21 percent Decreases in prices in Utah were measured by First Security in September for cost of transportation clothing and restaurant food During the past seven months — the time First Security has been conducting price comparisons along the Wasatch Front — Utah inflation has increased “We see prices remaining pretty flat through the rest of this year” he said While this is good news for consumers it may be viewed differently by retailers and those in the housing industry The local inflation rate compares to a 07 percent increase in adjusted prices nationwide The US Bureau of Labor Statistics reported the rate this morning but noted the annualized inflation rate equals only 03 percent Matthews said the dramatic difference in adjusted national and non-seasona- 03 percent increase shown nationwide 04 percent Health care costs have increased every month during the survey September showed an increase of 03 percent and reflect a third consecutive period of higher prices for drugs he said Local health care costs are keeping pace with national prices increasing 32 percent in the past seven months compared with a 35 percent increase nationally Housing costs in Utah broke a two month downward trend increasing 07 percent in September compared with a Overall in the past seven months Utah housing prices have dropped 14 percent which has a significant impact on holding local inflation down because people spend such a high percentage of their income on housing Transportation costs fell 22 percent in Utah in September compared with a 01 percent rise nationally Utahns paid less for clothing in September with prices declining 17 percent compared with a 46 percent national CQHsffmWpfices Business Percent change from prior month 06 IN BRIEF -- 03 OND JFMAMJ J 1987 Sep '87 103 S A s 1988 Aug ’88 Sep 88 04 03 'Y State regional Sj&t non-prof- Source: US Dept of labor APStandard-Examins- r graphic ? Food Y ft prices climb pr WASHINGTON (AP) — A rekindling of higher food costs brought on by the drought sent retail prices up 03 percent last month the Labor Department said today Nearly balancing the Steeper grocery prices was the sharpest drop in gasoline costs since February The overall consumer price rise was considered moderate and was down a notch from the 04 percent rises of July and August The good news was that gasoline prices dropped 17 percent the bad news was that food prices rose 08 percent More significant than any of those numbers for some 384 million Americans was the effect today’s report will have on their Social Security checks beginning in January Those checks will be up 40 percent — or $21 a month for the average recipient That will be the second highest boost in the last 6'j years Breaking down the new report the department said two components — food and clothing — accounted for 70 percent of the September increase On grocery store shelves consumers saw fruit and vegetable prices climb 45 percent with most of that reflecting residual effects from the summer's drought Also rising were beef prices up 11 percent and poultry prices up 13 percent Poultry is now 237 percent more costly than at the beginning of 1988 The overall gain in food prices was up dramatically from a 05 percent August advance and was the sharpest since a 09 percent July gain which had also been Blamed on the drought The other bad news: Clothing costs shot up 22 percent as prices for nearly all items of apparel reflected higher prices for fall and winter lines Drivers however found significant good news in today’s report September’s steep drop in gasoline prices sent pump prices 273 percent below their peak of March 1981 Home heating oil costs were down 2 percent while the price of natural gas and electricity taken together rose 06 percent The 03 percent rise in the overall Consumer Price Index if ' it persisted for 12 months would amount to an annual inflation rate of 41 percent From January through September prices rose at an annual rate of 45 percent up a notch from the 44 percent gain posted for all of 1987 Economists expect this moderation in prices to continue for the balance of 1988 as falling energy-priceshould counter further drought-drivefood price gains - 1 s n A legislative study has recommended tightening control of the Utah Technology Finance Corp it a private corporation created by the Legislature five years ago to help develop new businesses The report by the Legislative Fiscal Analyst’s Office said the corporation has little oversight from the state although it receives several hundred thousand dollars of state funds each year The report recommended UTFC be made a division of the Department of Community and Economic Development Richard W Kieffer 50 executive vice president of operations and administration of First Interstate Bank of Utah has been named president and a director George Rothell continues as chairman and chief executive officer The president’s post had been vacant since Leon G Harmon retired a year ago Harmon continues as a member of the board Lit ‘ - L: 4 ' VV ’ Y 'V J : Plenty of copiers Associated Press Balloons clowns and musicians help production workers at Xerox Corp in Webster NY celebrate Thurs day The company marked production of its 2000000th copier Friends’ lives take similar paths SALT LAKE CITY (AP) — The lives of investment brokers C Dean Larsen and J Gary Sheets have been intertwined for 35 years from the day they entered college together until when both were Wednesday charged with fraud Sheets founder of the CFS Financial Corp faces a federal indictment alleging fraud and embezzlement involving $18 million Larsen former president of Granada Inc a real estate investment and development company faces 50 state fraud security and theft charges involving more than $19 million Authorities say the charges against Sheets 54 and Larsen 53 are unrelated and there is no apparent connection between the investigations A Salt Lake City physician who now-defun- nt ct requested anonymity told the Deseret News he went to college with Larsen and Sheets who enrolled together and joined the Sigma Chi fraternity “They’ve always been good friends both in business and socially” the doctor said adding that his college friendship with the pair later cost him more than $500000 in investments he lost in both companies Sheets told the newspaper in a 1983 interview that he was interested in medicine and law but lasted only three days in law Larsen was Sheets’ lawyer for a time and when Sheets sold the doctor an insurance policy in 1971 Larsen drew up the papers and notarized the documents In 1971 Larsen founded Granada Inc and Sheets established CFS Both asked the doctor to invest in their companies and he obliged CFS was a financial planning and property management company that later branched into pension plans renewable resources d projects equipment leasing and a gold school mining operation Larsen did graduate from law Granada managed developed school and focused much of his and sold real estate and also was a real estate brokerage sale compractice on helping doctors incorporate their businesses pany Sheets went into the insurance In the early years both compabusiness after college but the nies flourished In 1983 Sheets doctor told the newspaper the told the Deseret News CFS was three stayed in touch He said averaging 80 percent growth a energy-relate- year and Granada did as well CFS began to fail in 1985 In early 1986 Granada became a general partner in several CFS projects successfully selling some of them while watching others slip into bankruptcy Granada took over CFS’s interest in two apartment complexes in Atlanta one in Indianapolis and another in Muncie Indiana Three complexes were sold but the proceeds from one remain in litigation Sheets filed for personal bankruptcy in February 1986 listing 2260 creditors — most CFS investors Larsen filed for bankruptcy in June 1987 listing 967 creditors and debts of $11 million However more than $18 million in claims have been filed since National The nation’s 384 million Social Security recipients will get a 40 percent benefit increase in January the second highest boost in 6V2 years the government said today The Social Security Administration said the increase promises an extra $21 a month for the average retired worker who now gets $516 a month from the huge pension and disability insurance program The Senate ended a century of hesitation by giving its approval to a treaty giving American artists and writers copyright protection in 76 nations around the world World The economic reforms enacted under President Mikhail S Gorbachev have produced a new problem — how do Soviet statisticians measure inflation? Nikolai G Belov deputy director of the state committee on statistics said Thursday that his department hasn’t figured out how to measure the rise in the cost of living and therefore doesn’t know how serious inflation is in the Soviet Union IHC says CEO earned relief on the Drought way $175000 in bonuses Box Elder County declared economic disaster area SALT LAKE CITY (AP) — By JIM SAWDEY Ixamer staf Box Elder County has been designated an economic injury disaster area by the Small Business Administration because of the 1988 drought said R Kent Moon SB A District Director in Salt Lake City As a result of the designation small businesses and small agricultural cooperatives in Box Elder County may qualify for working capital loans of up to $500000 to meet unpaid financial obligations because of the disaster Moon non-far- m said “The disaster was declared to help those small businesses impacted by the drought which has a negative impact on their current cash flow The SBA stands ready to assist them through long-ter- loans" he said Interest rates for loans are 4 percent for small businesses and 9 percent for small agricultural cooperatives The loan term may he extended for up to 30 years but is dependent upon the applicant’s ability to repay the loan Eligible businesses must demonstrate substantial economic injury as a direct result of reduced farm income and must be unable to offset such injurynon-far- m - through use of their own resources he said Enterprises primarily engaged in farming or ranching are ineligible for disaster loan assistance under this designation But those concerns may be eligible for Farmer’s Home Administration loans if they had a 30 percent crop income loss due to the drought SBA has will answer questions all day Oct 28 and 29 at the Community Center 150 South Tremont Trcmonton to help applicants Loan officers will be on hand to explain filing requirements Business owners unable to attend the meetings can get information by writing to SBA PO Box or by call13795 Sacramento CA 95853-479- 5 be remust All applications ing ceived by SBA by June 12 1989 Moon said applicants should be wary of loan packaging firms claiming to have a connection with the SBA “We caution the public against using loan packaging firms that claim any affiliation We do not endorse packagers Some people will assert that they can get (applicants) a higher percentage rate of approval That’s simply not true" he said Health Care Inc the state's largest health care provider has confirmed that Chief Executive Officer Scott Parker received $175000 in bonuses this year above his $211000 salary However IHC Senior Vice President Steve Kohlert said Thursday that the bonuses — which brought complaints from some employees particularly nurses who have had to cut back their hours — were “very much in line” with those given execuit tives at comparable hospital organizations In its Wednesday night newscast KUTV television reported that the employees became upset after learning that IHCs top officials are paid an average of $14000 a month and receive large bonuses on top of those salaries But Kohlert confirmed he too had received bonuses non-prof- but would not say how much — asserted the practice of giving incentive compensation has become quite widespread in the hospital industry He said IHC’s incentives arc not unusual though the company understands how some employees might feel seeing their managers earning bonuses while "they are really squeezing and perhaps even working less hours “Even though these salary levels seem high” Kohlert added “they arc very much consistent with and even very conservative” in the hospital industry Kohlert said the company decided to reveal the salary and bonuses given Parker in order to refute rumors that IHC executives were earning $1 million a year IHC runs many of Utah’s major hospitals including McKay-De- e in Ogden |