THE
MARKETS
Wall Street won't dance
NEW YORK (AP) — The
conomic news has been making
c lot of sweet music lately, but
Vail Street is declining to dance.
Rarely in recent memory have
he various measures of eco-
romic activity looked better than
hey do right now. Growth is
frisk, unemployment dropping
fast, inflation almost negligible
— and the Christmas selling
season is living up to high
txpectations at retail stores
«cross the country.
When the Labor Department
•eported Friday that producer
jrices of finished goods posted
in unexpected 0.2 percent drop
n November, there was under­
standable glee in the Reagan
idministration. Larry Speakes,
tie White House spokesman,
tailed it "remarkable news that
indicates that we are well on
target for sustaining economic
growth with lower inflation.”
In the stock market, however,
the report stirred little enthusi­
asm. Stock prices went nowhere,
just as they have been doing
most of the time for the last six
months.
Over the last week the Dow
Jones industrial average dropped
17.89 points to 1,242.17, for its
third consecutive weekly de­
cline.
The New York Stock Ex­
change composite index fell 1.54
to 93.86, and the American Stock
Exchange market value index
was down 2.52 at 219.62.
Volume on the New York
Exchange averaged 85.12 million
shares a day, against a volume of
Bond pace will fall
NEW YORK (AP) — An
influential Wall Street invest­
ment firm, Salomon Brothers
Inc., says it expects the volume
of new municipal debt will fall
off in 1984 from its record-
setting pace of the last two
years.
But the impact on interest
rates is expected to be minimal,
the firm says, because demand
for the issues from institutional
investors such as insurance com­
panies and mutual bond funds
also will be down.
States, local governments and
agencies such as housing author­
ities have turned to the credit
markets with increasing fre­
quency in the last two years as
the recession hurt their cash­
flow and interest rates fell.
The bonds and notes they
issue provide income that is free
of federal taxation to investors.
This tax-free feature allows is­
suers to pay a lower interest rate
on their debt than they would
have to pay if the income were
subject to taxation.
As local governments saw
their tax revenue shrink in the
1981-82 recession, they issued a
record $77.2 billion in bonds and
$43.4 billion in shorter-term
notes in 1982. The combined
total was more than twice as
much as in any of the previous
three years.
A decline of nearly four per­
centage points in interest rates
on municipal issues also at­
tracted some issuers to the
credit markets. Some of them
sold bonds at the lower rates to
replace older bonds carrying
higher interest costs.
According to the Bond Buyer,
a newspaper covering the credit
markets, its 20-bond municipal
index fell to 9.56 percent at the
end of 1982 from 13.30 percent
at the start of the year.
Rates have risen slightly in
1983 — the 20-bond index
reached a 1983 high of 10.04
Grain prices mixed
CHICAGO (AP) — Grains
were mixed and livestock and
meat prices higher last week on
commodities markets.
Wheat for delivery in Decem­
ber settled Friday at $3.46*4 a
bushel on the Chicago Board of
Trade, compared to $3.40*4 the
previous Friday; December com
was $3.27 Vis a bushel, compared
to $3.30%; December oats were
$1.86% a bushel, compared to
$1.80%; and January soybeans
settled at $7.81 a bushel, com­
pared to $7.82%.
Livestock and meat prices
were higher at the Chicago
Mercantile Exchange.
Live cattle for delivery in
\
Some Teleconnect workers al­
ready have moved to the com­
95.70 million the week before.
If there is a single cause for
Wall Street’s refusal to join the
party, most analysts agree, it is
the federal budget deficit — a
problem that seems to grow ever
more in tra n sig e n t as tim e
passes.
Nothing significant has been
done this year to deal with it.
And it appear^ increasingly
likely to many financial analysts
that "nothing significant” is
again on the agenda for 1984.
Wall Streeters point out that
the deficit troubles investors for
several reasons — the upward
pressure many people believe it
exerts on interest rates, the
inhibiting impact it has on the
Federal Reserve’s credit policy,
and the general drain it creates
on economic resources.
With government fiscal policy
pumping billions of borrowed
dollars into the economy, the
Federal Reserve, in setting mon­
etary policy, is very wary of
doing anything to stimulate busi­
ness activity further.
The Fed’s chief concern at the
moment, almost all analysts
agree, is that expansion might
overheat, leading to a resurgence
of inflation and interest rates.
Thus, every bit of "good news”
lately on unemployment, retail
sales or industrial production
has been taken on Wall Street as
a potential harbinger of credit-
tightening by the central bank.
To many analysts, the scene
appears set for credit-tightening
by the Fed in the early months of
the new year.
percent last week compared with
9.48 percent at the start of the
year — but the flood of new
municipal bonds continued.
Salmon Brothers said it ex­
pects a record new bond volume
of $79.2 billion for 1983 while
the volume of municipal notes
falls to $38.3 billion.
The report predicts the vol­
ume of new municipal bond
issues will fall to $69.5 billion in
1984 while the volume of munici­
pal notes dips to $37.4 billion.
Subtracting those bonds and
notes that have matured or have
been refunded early, the decline
is even more pronounced.
The net increase in bonds and
notes outstanding had been
$63.6 billion in 1982, fell to an
estimated $52.6 billion in 1983
and will fall to $43.9 billion in
1984, Salomon Brothers said.
The decline reflects "reduced
demand for funds by governmen­
tal issuers rather than a major
reduction in investors’ appetite
for tax-exempt securities,” the
report said.
One reason for the decline is
that Congress failed to act on
legislation this year that would
have renewed a program allow­
ing state and municipal agencies
to issue tax-exempt bonds and
use the proceeds to make loans
for single-family housing loans.
It is expected that the program
will be extended by Congress in
January but the Dec. 31 cutoff
date will have passed.
Rising interest rates have also
reduced the incentive to issue
bonds to refund earlier, more
costly offerings, the report said.
Individual investors will pick
up about $20.1 billion in munici­
pal offerings next year, up from
an estimated $19.7 billion this
year.
But Salomon Brothers said
both short- and long-term inter­
est rates should rise by 1 to 1%
percentage points in 1984, and
probably more in 1985.
December settled Friday at 66.85
cents a pound, compared to
65.32 cents a pound the previous
week; January feeder cattle ad­
vanced from 68.35 to 68.55 cents
a pound; December live hogs
settled at 48.10 compared to 46
cents a pound; and February
frozen pork bellies settled at
63.95 compared to 62.57.
Precious metals futures were
lower for the week.
Gold for delivery in December
finished the week at $372.60 a
troy ounce, down from $388.40 a
week earlier and $398.70 on Dec.
2. Silver fell to $8.60 from $9,377
a week earlier and $9.52 two
weeks earlier.
pany’s new headquarters at 185
50th Ave. SW, and the rest are
scheduled to move this weekend
from the former headquarters
building at 2037 North Towne
Lane NE. Here in the computer
room of the new headquarters
workers were continuing to
string wires above the ceiling
last week while Denise Mitchell
of Cedar Rapids, right, operated
a computer terminal. This room
also will contain the company's
own telephone system.
Teleconnect gets
new, larger home
By Bruce Fishwild 000 customers for its long distance
Gazette financial editor service and is adding about 6,000
As 1983 draws to a close, Telecon­ customers and about $350,000 in
nect Co. of Cedar Rapids has more additional revenue each month. The
than 12 times as many employees as company now ranks in the top 10
it had when the year started. companies in the country in resale
Not only that, but the company’s of long distance telephone service,
sales during the year were nearly and is the only one in Iowa. Long
five times as high as those in 1982 distance calls placed with it are
— and nearing $20 million. expected to represent about 10
In its first year — 1980 — sales percent of the state’s total next year.
totaled about $1 million. Last year • In the coming year, the telemar­
they were $4 million. Next year the keting staff, which has so far been
company has budgeted $65 million. concentrating mostly on getting new
Clearly, Teleconnect, a four-year- customers for Teleconnect, will start
old service company with a decid­ doing telemarketing for other busi­
edly high-tech operation, was in the nesses, providing "a tremendous
right business at the right time and amount of growth” for the company.
was ready when opportunity A training center that is a part of
presented itself. State officials de­ the new headquarters building will
Gazette photos by Duane Crock
scribe it as one of Iowa’s fastest be used to train both Teleconnect
growing companies.
Consider this evidence:
employees and employees of other
companies with telemarketing jobs.
Carol Simmons of Marion, office systems manager for Teleconnect,
was pictured at one of the work stations provided in the new building.
• Teleconnect was organized in • A part of that division also will At its former headquarters, several people occupied offices designed
late 1979 with four employees. At have a national "response center,” for one.
the end of the first year it had 12. At using "800” telephone numbers to
the end of last year it had 30 and it take orders for other large firms.
now has about 370. It expects to
double the number next year.
• Its first office included 1,000
• Teleconnect’s own long distance
bill is more than $100,000 a month. High Current Interest Rate
square feet of space formerly occu­ • A test is planned next year of an TAX DEFERRED ANNUITY
pied by a doctor’s office. It is "electronic mail box” concept which
moving this weekend into a south­ will serve as a sort of message
west-side building containing 40,000 center for the company’s customers.
12.00%
GUARANTEED FOR FIRST CONTRACT YEAR
square feet and beginning already to • All of this has been done with IN A NO LOAD ANNUITY
plan for an addition. Cedar Rapids money. Sometime MINIMUM GUARANTEED INTEREST RATE
IS 5.5%
• At first it operated only in next year, the need for additional
Featuring
Cedar Rapids, but it now has branch funds is expected to lead to the first Built-in Annuity Income Privileges
offices in Des Moines, Omaha, public offering of the company’s Transfer Services
Waterloo, Dubuque and Davenport. stock. The stock now is held by a Prompt Payment of Benefits
• Sales of telephone systems, small number of people, mostly No Market Value Adjustment
‘A’ Excellent Best’s Rating
Teleconnect’s original business, still active in the company.
are growing but amounted to about Teleconnect was organized in late ▲ I / 1 irst V<iri< il >k -1 jf c GARY D. SPEICHER. CLU
/j li is t ir< u i r e (;< r r i| r< i\ 1113 2nd Ave. SE, Suite 4
35 percent of its business in 1983, 1979 by Clark McLeod, still the ik w
Cedar Rapids, IA 52403
while 65 percent of the business was president; John Marshall, now semi­ ’ Plaza W es! Building
319-366 2436
Little Rock. Arkansas 72 20 5 (501) 6 6 1 1 5 0 0
in long distance telephone calls. retired; and T.L. Van Zante, a vice TH E S E R ATES A R E A V A IL A B L E O N LY AS LONG AS THIS SERIES IS B EIN G O F F E R E D (6500-20)
• Teleconnect now has about 70,- • Please turn to page IOC: Phones CO NTRACT FO RM 6500 9/82 7/18/83
See us for the LARGEST SELECTION OF
COMMERCIAL CARPET!
“ • Special Commercial Prices .
• Professional Service
ASK DAVE BOWER
A
OIRPET KING
Locally owned and operated
last Idge of Marion on 151 Phone 377-6311
LET’S GET PERSONAL ABOUT
MorAmerica Financial Corporation
LEASING
is now offering:
T h ree Y ear C ertific a tes 11%
(E ffe c tiv e 1 2 /1 2 /8 3 )
Effective A n n u a l Y ield 11 . 62 %
In v e s t $ 1 ,0 0 0 .0 0 o r m u ltip le s th e re o f. Y our in te r e s t
w ill be co m p o u n d ed d aily a n d p a id s e m i-a n n u a lly o n
J u n e 3 0 a n d D ecem ber 31 o r c o m p o u n d ed to m a tu r ity for
a GREATER RETURN of $ 390.43 FOR EACH $ 1 ,0 0 0 .0 0
CHARLIE KRIZEK INVESTED. R ate s u b je c t to c h a n g e w ith o u t n o tic e . A
Lease Mgr.
$ 5 ,0 0 0 m in im u m in v e s tm e n t q u alifies y o u to re c eiv e a n
Thinking of Leasing a Car or Truck? in te r e s t c h ec k m o n th ly .
Then, think a bit about who you lease
from. In leasing, you want the kind of
We’re th e F in a n c ia l P la n n e rs . O ur p r o g r a m s p ro v id e
special attention and service that’s y o u w ith a v a rie ty of in v e s tm e n ts w h ic h w ill m e e t y o u r
become a specialty at Jim Arenson
Chevrolet. W e view leasing as an on­
p e rs o n a l needs.
going relationship . . . one that The se c u ritie s a re offered by P ro sp e ctu s only to bona-fide re s id e n ts of Iow a w ho p u rc h a s e for in v e stm e n t and
deserves the personal touch. So, n o t for resale. This is n e ith e r an offer to sell n o r a s o lic ita tio n of a n offer to buy.
before you decide, give our leasing
T h is Is n o t an obligation of a b an k an d Is n o t In su red by th e Federal D eposit In s u ra n c e C orp o ratio n
manager, Charlie Krizek, a call. Let ? o w a ° 6 2 4 0 ? 18 m ade by The U o rrls P lan S ecu rities Company, 100 A m erican Building. Cedar Haplds.
Charlie tailor-make a lease plan that’s
best for you.
We Lease All Makes and Models
HIGHWAY 150 . . . CENTER POINT
PHONE 849-1233 MorAmerka/Morrb Plan
100 American Building, 363-0261
665 Marion Boulevard, 373-1371
1211 Edgewood Road, SW, 366-2441
Call free anywhere in Iowa, 1-800-772-2051
^ e^ '? , C5da. r Raplds’ Davenport, Waterloo, Iowa City, Des Moines, Burlington, Dubuque, Clinton, Sioux City and coming
soon to Muscatine.
1-380 IS COMING OUR WAY’
10c T he C e d ar R ap ids Gazette: Sun., Dec. 18, 1983

Phones
From pogo BC
C.R. hiring prospects
president now working in the Des
Moines office.
dim for three months
Just a year later the company Employers in the Cedar Rapids figure was the highest for the
moved to 2037 North Towne Lane area see hiring prospects as dim for quarter in five years.
NE, which it occupied until this the next three months, according to Twelve percent of employers na­
weekend. The space has been so the quarterly employment outlook tionwide said they expect to reduce
cramped, says President McLeod, survey conducted by Manpower Inc., their work force in the first quarter
that the building actually has stym­ the tem porary service firm. — the lowest first quarter figure in
ied the company’s growth. John Gavin, owner of Manpower’s the survey’s eight-year history.
The new headquarters, at 185 Cedar Rapids office, said that "over­ For the Midwest, 19 percent of
50th Ave. SW, formerly housed the all, only three percent of area employers reported hiring plans tor
Coors beer distributorship. Remod­ employers polled plan to hire addi­ the quarter, up from l l percent a
eling has included splitting a high- tional workers during the first year ago, and 14 percent planned
ceiling warehouse area into two q uarter of 1984.” reductions, down from 19 percen: a
floors. In addition, 23 percent expect year ago.
While the new building has four staff reductions, and 74 percent plan
tim es as much space as the north­ no change in staff levels.
east-side building, the company’s
plans for 1984 will fill the building
In a similar survey conducted a
year ago at this time, he noted,
WHERE ARE
and plans will be started to add
20,000 square feet on footings
seven percent of employers reported
intentions to hire and 13 percent THEY HOW1
already in place, McLeod said last expected reductions. Before the last
week. quarter of 1983, 23 percent of
John R. Cornwall, son of Mr. aid
As noted before, the company’s employers expected to add workers
Mrs. John Cornwall Jr., 2324 D Are.
original business was selling tele­ and three percent expected reduc­
NE, has been named president aid
phone systems — originally for tions.
chief operating officer and a m tn-
businesses and more recently for Gavin said staff reductions are
G azette photo by Jo h n M clvo r ber of the board of directors of
homes. Some of the larger custom­ expected by durable goods manufac­
Linda Shepard, above, is operations manager of the computerized switching center Teleconnect will MetLife Capital Corp., a new ftll-
ers in this area are Quaker Oats; turers, wholesale and retail m er­
continue to operate at 526 Second Ave. SE in downtown Cedar Rapids. service leasing company in Seatle,
Norand Corp.; Coe, Cornell, Mount chants, the finance, insurance and
Wash. MetLife was formed by ;he
Mercy colleges and Kirkwood Com­ real estate sector and public adm in­
"resale” business, with Telconnect increase its penetration in the Iowa He says no one can be sure acquisition of Seafirst Leasing Do.
m unity College; the cities of Cedar istration.
leasing lines from AT&T and North­ m arket — while perhaps also pro­ exactly what the changes will be, by Metropolitan Life Insurance Do.
Rapids and Waterloo; and Linn and Nationwide, the survey found 22
Black Hawk counties. western Bell and selling long dis­ viding the service in towns across but that there are always going to be percent of 11,000 employers expect­ Cornwall had been president of
W ith a lot of systems in its tance service to its customers at a the border from Iowa. volume discounts for companies like ing to hire additional workers dur­ Seafirst Leasing since 1979. He fe a
discount. The telephone business will un­ his. former employee of LeaseAmeica
market area aging, Teleconnect ex­ ing the quarter, compared w ith 14
pects its telephone system business Switching centers in Cedar Rap­ dergo a great deal of change on Jan. In addition to McLeod, top m an­ percent a year ago. The 22 percent in Cedar Rapids.
ids, Des Moines and the Quad-Cities I when AT&T is split up into a total agement of the company in Cedar Jean R. Oliphant, a former Cedar
to double during 1984. Also on the Rapids resident now living in ‘Au­
schedule for next year is introduc­ handle the calls, and a fourth is to of eight companies. But McLeod is Rapids includes Frank Yanda, vice
be added in Council Bluffs in the confident there will remain a place p re sid e n t of m a rk etin g ; Ja m e s rora, IU., has been awarded a U.S.
tion of a new line of residential
first quarter of next year. That will for his type of company. Cram, vice president of finance; C E D A R RAPIDS — M A R I O N patent and a Rockwell Intem atiaial
telephone equipment that will pro­ Switching System s Division cash
vide such things as intercom, speak­ give the company the opportunity to Bruce Thayer, vice president of FIRE • P O L I C E • R E S C U E
set up a microwave network of its "You have to picture us as a network engineering; Lavem Busse, award for software engineering de­
erphone and speed dialing — things AMBULANCE
own across the state at some future superm arket w ith an opportunity to Cedar Rapids branch manager; and velopment work. His patent is for a
which have been largely restricted
to business phone systems. date. buy from a large number of carriers. Al Beach, corporate public relations EMERGENCY O N L Y method of switching telephone calls
We select the right service for the director. from an autom atic call distributor
In conjunction with selling tele­
phone systems, McLeod said last
While it is not alone in the
business in Iowa, it is the only one
customer, and do it in a quality McLeod and Busse are the two dial 911 system with an overflow to another
system.
week, Teleconnect found itself giv­ fashion.” largest shareholders.
concentrating on Iowa and is by far
ing advice on how to save on long the largest here, McLeod said.
distance service and it saw "a big An indication of the size of this 10 years ag o
hole” in that m arketplace which the INSURANCE PROFESSIONALS
company decided to fill.
In June of last year the company
began offering long distance service
operation is that the company logs a
half-million minutes of long distance
calls a day.
The company’s business strategy
N elson R ockefeller
resigned as governor of
New York and was
succeeded by Lt. Gov.
JOHN DEERE INSURANCE COMPANY IS
ACTIVELY RECRUITING EXPERIENCED
PROPERTY AND CASUALTY AGENTS
cKeller-cHull Co.
to its commercial customers. It is a for the immediate future is to Malcolm Wilson. IN CEDAR RAPIDS
q ffic e ju fh itu r e <£& su p p lie s
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To Learn More Of This Great Opportunity
PARKING
Call Toll Free
1 st A V E . S E 15th St. S t
JAMES F. PENCE
DISTRICT SALES MANAGER □ LAROE OFFICE FURN ITURE & SU P P L Y IN VEN TO RY
34th Ave. & 80th St.
Moline, IL 61265 □ CARPETING. DRAPERIES. W A LLC O V ER IN G S A N D A CC ESSO R IES

Frank B. Hall Insurance of Iowa 1-800-447-0633

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Suite 1000, The Center, 425 2nd St. SE INSURANCE CEDAR RAPIDS
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Our good name 6 the best insurance you can buy
Cedar Rapids, Iowa 42406

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r n r r.nmpan; tesna
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w ith daily com pounding. K e a d y - D aW® Ca<11

Y ield
8.80%

8.
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“New” MorMoney Demand Passbook. E arn this
prem ium rate w ith a $8,800 minimum balance.
In te re s t compounded daily. Rate quoted thro u g h
“ WE’LL DO WHATEVER IT TAKES TO HOLD
Yield 12-19-83 and subject to change each Tuesday.
9.80% MorMoney — 180 Day certificate. $8,800
OUR LEAD. SACRIFICE PRICING ON EVERY
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NEW CADILLAC SOLD BY DEC. 31."
Yield to change each Tuesday.
11.38% Here’s your chance to save thousands on
IRA (Individual R etirem ent Account). $800
18 .
08 % m inim um , 18 m onth fixed or variable rate. No fees
and daily com pounding.
the brand new 1984 Cadillac of your
choice. W e want to be sure we are still in
Yield first place when this prestigious Cadillac
t a c h in d iv id u a l's to ta l i n v e s t m e n t is g u a r a n t e e d to $10,000 or v a r y in g o w n e r s h ip m a y p ro v id e l a r g e r g u a r a n
a c c o u n ts T h r if t c e r t if i c a t e s a r e p r o te c te d u p to a m a x im u m o f t e n t h o u s a n d d o l la r s by t h e I n d u s t r ia l L o an
T h r if t G u a r a n ty C o r p o r a tio n o f Io w a , a p r iv a t e c o r p o r a tio n , r e g u la te d by t h e s t a t e o f Io w a h o w e v e r, t h r i f t
Sales Contest ends December 31 st.
c e r t if i c a t e s a r e n o t g u a r a n te e d by t h e s t a t e o f Io w a
That means selling every possible new
Cadillac we can at whatever the price.
Com e see us. Help us win and
w e’ll help you save like never
before.
MocAmerka/Morris Plan
IOO American Building, 363-0261
665 Marion Boulevard, 373-1371
1211 Edgew ood Road, SW, 366-2441
Call free anywhere in Iowa, 1-800-772-2051

O ffices in C e d e r Rapids, D avenport. W aterloo, io w a City, Des M oines, Burlington, D u b u q u e, Clinton, Sioux City and com ing
soon to M uscatine NEW 1984 CADILLACS TO CHOOSE FROM.
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