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Show Sunday Morning, August 8, 1982 Section I Iuce 1 I Up and Down the Street Fallout Continues After Finance Bankruptcy Action By Robert H. Woody Tribune Business Editor The resentencing of the former president and owner of the bankrupt Grove Finance Co. last not week does the conclude matter. The fallout of the Grove fiasco continues despite unconcluded bankruptcy pro- ceedings and court actions. Court actions involve not Mr. Woody Grove but two securities firms, A. G. Edwards and Dain Bosworth Inc., and three former JU account executives. Basically, the thrust of the complaints is that the account executives improperly encouraged customers to invest in Grove debentures as safe and sound. They further charge the securities houses failed to exercise proper supervision over the salesmens activities. One case has been settled out of court. Trial is pending for the others. Amounts Relatively Small Considering the total that may be involved, the amounts sought by plaintiffs are relatively small, on the order of a few hundred thousand dollars. As for Grove total losses, William G. Fowler, attorney for the trustee in bankruptcy, estimates that deposits totaled about $19 to $20 million. By fall. Grove, in obvious financial disorder, was put in federal bankruptcy court Encouragement of Salesmen? The action against the two securities houses rests upon the presumed involvement of their salesmen in encouraging customers to put their money into Grove. Plaintiffs contend the securities houses salesmen acted in conspiracy with Haycock and his salesman, that they knew Grove had financial problems, and that they received commissions from Grove. The question is whether an account executive, sitting behind his desk at the brokerage or whether making suggestions to a casual listener at a cocktail party, is at all times acting as an agent of his employer? - - - JJUi-nri- So far, the trustee has recovered about $5 million to $6 million in assets, he said. Given that ratio, creditors might expect to get about 30 cents on the dollar when it comes to distribution time. The matter broke in April 1980, when then commissioner of financial institutions M. D. Borthick ordered Grove to end sale of debentures it offered. The commissioner held that sale of the debentures, in fact, amounted to taking deposits" upon which interest was being paid. Grove, an industrial loan company without thrift authority, was supposed only to lend owner money. It did not have a depository charter. Mr. Borthicks effort to assert authority, however, was not backed by Utahs old financial institutions law. m m m mmmm presumed to be prudent and sophisticated did not note some obvious warning signals such as the fact that Haycock backdated some debentures, thereby pledging to pay even more interest than was due. And, it contends, receipts for the purchase of the debentures was issued by Grove, not the securities house. And finally, the institution, while it does supervise its salesmen, could not have known of the alleged illegal activities of those in question. The securities houses would contend not. For example, A G. Edwards counsel says the activities of the salesmen involved were not condoned or known of by the institution, nor was such practice pervasive among the account representatives. It holds, too, that in some cases some of the plaintiffs had struck their own deals with Haycock and that, in fact, some knew that the debentures and the interest offered on them were too good to be true. Questionable Conduct? Questionable conduct of salesmen in other securities houses has been of issue in recent years. And some managers nagged by nightmares of Further, some of the conversations between the former account executives and the plaintiffs did not occur within the brokerage environment. And, in some instances, the plaintiffs See Page IM5, Column m Clothing May Fashion the Way to Success We must present an appearance of neatness, not too punctilious or exquisite, but just enough to avoid slovenliness. Cicero Consumer-Le- d Recovery Is Looking Like a Flop level of May and June and a 9.4 percent jobless rate in April. It was the highest unemployment rate since the government began keeping figures in 1948. The previous high was the annual unemployment rate of 9.9 percent in 1941. These indicators, taken together, suggest the initial stages of this recov- -' ery will be very modest. The recovery will have little or no staying power, said Jack Lavery, chief economist at the private consulting firm of Merrill Lymch Economics Inc. Lavery said he expects consumer spending for goods and services to rise by less than 2 percent in the current quarter. He also is predicting a "decidedly weak economy for the first half of next year, with no significant or sustained recovery until By Steve P. Rosenfeld AP Business Writer NEW YORK Reports this past week that unemployment rose to a high, auto sales fell to a low and sals remained sluggish for major retailers have raised doubts that a consumer spnding spree will lead the economy into a sustained recovery from recession. d The consumer-le- d recovery has been a flop, says economist David Jones at the investment firm of Aubrey G. Lasnton & Co. I havent seen the slightest hint of an improvement in the near term." Reagan administration hopes for economic recovery have been based on heightened consumer buying power as a result of reduced inflation coupled with the 10 percent tax cut and a 7.4 percent increase in Social Security benefit payments that took effect July month-to-mont- ar By Robert Bryson Tribune Staff Writer Clothes may make the man or woman, and the wrong attire may be the unmaking of employees who dont dress as though they mean business, officials say. Many employers in the Salt Lake area have written employee dress codes or regulations. Others, area personnel directors and officials report, have no written policy, but may require acceptable business dress. The requirements vary: beards, long hair and sideburns are den male employees at the Church of Jesus Christ of Latter-da- y Saints. At First Security Bank and its subsidiaries, supervisors and those in public contact positions are asked to wear dress shirts and ties, if male,, or coordinated outfits or business suits if female. Nearly all of the written regula tions caution against extremes in styles and ask employees to appear neat and well groomed. A newly appointed editor at The Salt Lake Tribune City Desk said he hadnt considered a dress code for employees until one worker wore a emblazoned with the words: an Have A Nice Day , obscenity added. The editor promptly banned sneakers, grimy clothes, shorts, soft-poand suggested that employees are professionals representing a professional organization and should dress accordingly. Much the same view is expressed in the employees handbook at the IDS Church. much-vaunte- Workers Savings a church employee, you shirt collar. A neat, well-groom- haircut and a clean shave are essential, it says. Electrical Muscle Stimulation Treats Spinal Deformations New York Times An improved WASHINGTON method of treating scoliosis and other spinal deformations by electrical muscle stimulation has been invented by Jens Axelgaard, director of spinal research at the Rancho Los Amigos Rehabilitation Engineering Center, Downey, Calif. He was granted patent 4,342,317 this week, assigning it to the Professional Staff Association at the Rancho Los Amigos Hospital. Scoliosis, defined as lateral curvature of the spinal column, has severe forms, sometimes requiring spinal surgery. The improvements credited to the treatment are in the stimulation of Cheerful View more cheerful assessment came from the Conference Board, a business-- ' finance research group, which reported its July survey of 5,000 households' showed heightened confidence in future economic growth and increased plans to make major purchases during thf next six months. With workers concerned about their As A neatly trimmed moustache is acceptable, it adds. Women should wear hose and be mindful about fit, style and length of dresses. Pant suits are not acceptable. Hair, it says, should be clean and neatly combed and arranged in an attractive sytle. Immodest clothing is not acceptable, it notes. All employees of the LDS church are expected to maintain high standards of personal hygiene and cleanliness and shoes should be kept in good repair. The Salt Lake Board of Realtors separate muscle sties surrounding the reports 124 properties sold for $9,443,178 through its Patients dia gnosed as suffering from scoliosis, kyphosis or similar conditions are screened, and if the electrical muscle treatment is found suitable, the target muscle groups are selected and the electrode placement is determined. Pairs of electrodes can be positioned on the outer skin surface, percutaneously or subcutaneously. for the week ended The government has rights to the invention under a contract originally granted by the Department of Health, Education and Welfare. The written policy at First Security Bank divides workers into officers or supervisors, those in public contact positions and those who are exempt. JBs Revenues SaIes Multiple Listing Service Saturday. Residential sales amounted to 112 properties for $8,486,128; condominiums, seven for $375,550; two apartments or duplexes for $143,500; one commercial property for $378,000 and two vacant lots for $60,000. The average new residental cost was $75,769 with 455 new listings. jobs, any savings from tax cuts are being used either to pay off debts or are set aside for hard times, says Jones. U.S. automakers reported July sales of 429,908 new cars, down 13.5 percent from a year ago. The daily sales rate of 16,535 was the lowest since 1961. Several major retailers reported sales defined in July from the same month a year ago, including No. 3 J.C. Penney Co. and No. 4 F.W. Woolworth Up Although current economic statistics range from indecisive to discouraging, the latest message from the consumer is distinctly positive, said Fabian Linden, executive director of the boards Consumer Research Center. Consumer raadings are now suggesting that the U.S. economy could show stronger growth in the second half of this year than many forecasters are projecting. Co. Sears, Roebuck and Co., the largest Kmart retailer, and second-rankeCorp. both reported slight sales increases, with Sears failing to keep pace with inflation. d 21 Percent Realtors List apex of the curvature. One muscle site contracts while the other relaxes. A church spokesman noted the policy in the handbook applies to most employees. It does not include employees of the church education system, which would include Brigham Young University. But, the spokesman said, the Us standards are similar. 9.8 Unemployment The Labor Department reported the , nations unemployment rate rose to 9.8 ''percent in July from the 9.5 percent cfia M IniU'iSllnJ II In other business and economic developments this past week: The Agriculture Department estimated food prices will rise an average 4.9 percent this year, down from the 5.2 percent rise projected a month earlier. The department cited indications of another year of bumper harvests that Column 1 See Page D-1- 6, PRICE: Microdata Reality6000 Pick Data Base Operating System Basic Compiler 128K Core Memory 100 MB Diek (2 - 50M8 Reflex-- 1 Drives) (3) B ways 24 parts) (1) Tape drive 800 BPI, 25 IPS (1) 300 LPM Data Products printer (4) Microdata terminals Other related and compatible equipment (12 Beehive terminals (B) Micro S DM1-- (3 Micro SI 2) With work All Al Teletype 300 LPM Printer TTY-4- 0 equipment teleport Irom e port kke teleport atom the printer to terminal Software available) (The available between Aug. 1, and Nov. 1, 1tS8. Wi eel together or eeperataty equpment hae bean on mantananca agreement area pirchased Call (208) 356-366- 8 Aak for Floyd Boundy 6.00 Sq. FL LOCATION: JSSiSk THATS BURTON PLAZA JBs Restaurants Inc. has reported increases in revenues of 21 percent and net income of 60 percent for the third quarter. The quarter was the best third quarter in the companys history, said Clark D. Jones, president. Revenues were $14.1 million compared with $11.0 million last year at the same time. Net income was $531,580 or 30 cents a share compared with $332,453 or 19 cents a share Inst year. For the first 40 weeks of this year, Mr. Jones said, revenues were $33.1 million compared with $26.7 million last year, i 24 percent increase. Net income was $1 million or 58 cents a share compared to $654,904 or 38 cents a share last year. Mjjor factors, Mr. Jones said, included opening The Old Salt City Jail of Tucson and three new Big Boy Family Restaurants in Cedar City and in Gillette and Rawlins, Wyo. Beautifully Landscaped 500 Sq. R. to 9,000 Sq. R. Interiors Finished to Suit Tenant ALL THIS FOR ONLY Buuness Computer h A But if consumers have a greater share of their earnings available, they have yet to show signs of beating down merchants doors to spend those funds. TlfASR.lWTDM 6.00 Sq. Ft. (Net) (801) 263-350- 0 Exclusive Leasing Agent Commerical, Industrial & Investment Real Estate 5320 South 900 East, Suite 110, Salt Laka City, Utah Ml 17 JERRY E. NELSON has completed all the requirements to be certified as a QUALIFYING MEMBER OF THE 1982 QUALITY INDUSTRIAL SPACE FOR LEASE STARTING AT 7W MILLION DOLLAR ROUND TABLE an independent association of life insurance agents, each of whom must meet strict ethical and production requirements in order to qualify. Recognised internationally as the standard of life insurance sales performance, only 3 of the worlds life insurance agents qualify for the MI)RT each ear through high level client service and production. Amuricant INSURANCE ft II company imicaule Am mid-198- 1. represent the church. Your actions and appearance reflect the standards of the church. You should be modest, use good taste, dress, grooming and behavior, it says. The booklet discourages extreme hair styles for men. Long hair, beards and sideburns below the ear lobes are unacceptable. Hair must not extend over the 1 lii piSate: 3 Frecpof t LUcyt he absolute leefe Value In Industrial epees In the U.S. Call Georgs Ross at (801 1 778-084Bo PO 0 1276 Clearfield. Utah 0401 6 for moro Information. w |
