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Show National Enterprise , June 2, 1976 Page Two Innovative Financing Plan Paves Beehive Expansion Beehive Medical ElectronAccording to Ed Arthur, vice a ics, Inc., (OTC 6.00, 6.50), president of commercial loans Salt Lake City manufacturer of at Commercial Security Bank, has the present interest rate for a computer systems, announced plans to build a similar conventional loan $2.3 million plant at the Salt would probably be about 10 Lake International Center. 14 to 11 percent. The announcement was made to the Salt Lake City Commission Tuesday, May 25, by Emmanuel Floor, operator of the Center, and Warren B. Clifford, Beehive's president and chief executive officer. Clifford said construction is expected to begin this week, and building completion is scheduled for December, New Form of Financing The mortgage is a brand new form of financing, according to Peter A. Louis, mortgage financer who arranged the loan for Beehive. Working from a New York firm, Whitbread-Nolan- , Inc., Louis is a specialist in industax-exem- pt trial revenue bonding and financing. Beehive is financing conAlthough laws authorizing struction of the new plant with industrial revenue bonding an innovative form of commerwere passed by states since cial financing, provided by 1954, they have not been used Prudential Federal Savings. by businesses until the last Called a tax exempt mortage, few years, Louis said. Whitbrethe financing was authorized ad-Nolan has specialized in e the financing method for the by Salt Lake City. It is to lenders and has lower last two and a half years, he interest rates to the borrower added. than the conventional comThe mortgage mercial loan. It is similar to an security has been created only industrial revenue bond. this past year, Louis said. Clifford said Beehive will be Behives loan was one of the 7 34 percent interest first twelve in the country we paying on the mortgage. have closed, he said. 1976. tax-exem- pt tax-fre- tax-exem- tax-exem- pt pt Amicor Subsidiary Opens Texas Offices The conventional interest rate has become prohibitive. ATLANTA, Ga-C- .E. Companies have been curtailTennesson, Jr., president and ing their capital spending chief executive officer of plans because of the high cost AMICOR Incorporated (OTC Louis 3.75, 4.125) has announced of financing, explained. This new form of that Sella Valve Corporation financing has been able to has opened general offices he and central distribution facilibring the cost down, added. ties in Houston, Texas. Last year many companies Sella Valve Corporation, obtain the newest division of Italicor, attempted to most but financing, a subsidiary of AMICOR, will attempts ended up in the through an organization of This selected sales and service courts as test cases. year more loans are closing, representatives, market the Louis said. Sella valve line throughout the Awareness of this kind of Western Hemisphere. The a at remained has financing new Houston facility will steady level. The problem has include a wide inventory of been putting together the Sella valve products and will package and tieing it in with provide all necessary support the mortgage, Louis contin- to service the Sella line for ued. present and future customer In addition, requirements. Major Factor major pipe valve and fitting tax-exem- pt The mortgage was a major factor in our decision to remain in the area, Beehive President Clifford stated in an interview. Other communities around tax-exem- pt are amenable to industrial revenue bonding. Fortunately we were able to work out an Continued on Page Nine selected inventories of Sella products in key market areas. These distributors will draw upon the Houston facilities for inventories and service. Sella valves are manufactured by Sella, S.P.A., another division of Italicor, located in Milan, Italy. It is planned to expand the Hous full-sca- le valves in that location. Houston was selected because it is the hub of a large concentration of engineering consultants, major oil com- panies, petrochemical and The geoof Houston location graphical is ideal as a shipping port for both North and South Amerchemical plants. ica. E. Frank Mausser has been selected as president and general manager of Sella Mr. Valve Corporation. Mausser has a long and successful career and a wide range of experience in the valve business. He comes to Sella from Rockwell International, where he has for the past several years served as a senior marketing executive for valves. In his new capacity, Mr. Mausser will report directly to John A. Owens, president of Italicor, whose offices are in Milan. AMICOR is a multi- national manufacturer of industrial equipment, based in Atlanta, Georgia. SEC Skirts Disclosure Issue THE NATIONAL BY Orrin G. Hatch Subscriptions $24.00 per year 35 Cents a Copy The Notional Interprise is published weekly by the Notional Enterprise Publishing Company, Inc, 500 Continental lank Bldg., P.0, los 1171, Pioneer Station, Salt lake City, Utah 14147. (101) 6 S33-05S- Second Class Postage Paid w Salt Lake City, Utah R George Gregereen Publisher Atone E. Bentley Editor Ryoa B. Poulton Business Manager Mery McMHten Gabor Terry Stranger Stall Reporters Peter Hontson Operations Manager I distributors will maintain facilities, in the near future, to include assembly operations for Sella ton Oorts Wardto Circulation Manager In an address given by former SEC Commissioner A. A. Sommer, Jr., before he left the Commission last month, he said, It is neither the function nor the purpose of the Commission to articulate a standard of morality or legal conduct for corporations overseas or in this county, but rather, when a corporation is engaged in a course of conduct that may bear upon investment the Commission is obliged to see to it that that conduct is disclosed. Sommer made the point that the SEC requirement of disclosure of corporate misconduct, both domestic and for eign, has resulted in a serious activities. disillusionment of the American public concerning the actions of corporate leaders. Even the SEC is having great difficulties determining how far it should go to require corporate disclosures of bribes, In the rush to avoid even worse problems, many com- under-the-tabl- e payments, panies have voluntarily disclosed their improper foreign or domestic payments. It is understood that these companies have a total sales of nearly $219,000,000,000. cloudy support of foreign govFrankly, these companies add ernments and intermeddling up to more than 10 percent of in foreign political affairs. all the companies on the The SEC seems to take the Fortune 500 list. position that the leaders of The SEC is suggesting that if corporate industry should develop a code of ethics for new legislation is enacted, it business throughout the should impose greater civil Furthermore, the and ciriminal sanctions for country. SEC is promoting the confailure to keep proper books tinued use of outside directand records rather than rules ors, who may be greater that would merely try to policemen of inside corporate outlaw various kinds of payments and various types of actions. Actually, more than 100 large companies have disclosed past illegal payment practices and most all have agreed to terminate such practices. There are some companies which will disclose, in their prospectuses, and in other messages to shareholders, their continuation of some of these questionable payments, bribery and facilitation payments in order to obtain licenses or the ability to violate local laws. But it is also expected that some companies will just plain refuse to disclose any improprieties. Naturally, this dangerous activity will result in even further regulation by the SEC One must give serious thought to the deterioration of corporate morality in this continued on page Twelve i ( |