Nightly Business Report

That's business. The major American competitors in aircraft manufacturer are of course Boeing and McDonald Douglas. And the battle goes beyond the commercial marketplace since both our major military contractors. Tonight in part one of a two-part look at those companies Douglas Rutherford reports from our Wichita Bureau on Boeing's place in that area's economy. In a time when commercial aviation sales are in a slump, Boeing military airplane company remains a civil force in the Wichita economy, with a payroll of $473 million a year and a workforce of 14,700, Boeing is the largest employer in this city of over a quarter of a million people. It so happens that military contracts have been a very steady factor for our economy. And when commercial aspects of aviation and other areas have been down during the recession, the military contracts have helped really give us a much steadier rate through the recession.

You've constantly got programs phasing off, so you have to have to be achieving new business. There really isn't much instant business in the military side of the picture. It takes you anywhere from a year to five years to achieve any sort of a contract. So you've got to keep achieving these sorts of contracts as you go to keep your employment stable and your company growing. One contract Boeing received this summer is for maintenance on F4C fighters for the Air National Guard and Air Force Reserve. The company won the $27 million contract over McDonald Douglas, the plane's original manufacturer. The F4 will load the first airplane, the third of October, and we're going to about three hundred and three hundred and fifty people in February to March of next year, by February March next year. Most of those people we fear will probably come from within our own ranks and on our own payroll today.

Wichita currently has an unemployment rate of 6.5 percent. Chamber of Commerce officials say the city is less dependent now on the aircraft industry than it was ten years ago. In the early seventies when we had some difficulties we launched a major economic development program and we're very successful. We brought in companies involving distribution, computer technology, even house manufacturing, a wide variety of companies, and the percentage of people employed in the aircraft industry has declined fairly significantly from the high that we reached in the late sixties. Total earnings for the Boeing company last quarter were up thirty percent. Company officials say they expect employment at the Wichita planetary main level this year. This will assist in stabilizing the city's industrial employment base and help Wichita remain a city that has been well below the national unemployment average. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. Tomorrow? For many children, cheers to able to be the first day of a new school year. New kids and pets are now out buying school supplies at the business of America is ready

for them. Douglas Rutherford of our Wichita bureau reports on one company that always seems to leave its mark on a child's education. The Eastern Pennsylvania-based Binnie and Smith has been making crayon crayons since 1903. Binnie and Smith's Windfield Kansas plant was recently expanded and serves as a major shipping facility. The factory manufactures seventy-two different colors of crayon crayons at an average rate of four million per day. The crayon's accounts were around fifty percent of sales. Binnie and Smith has diversified its product lines to include liquid text, brand, professional quality materials, and a various array of products and activity kits under the crayola brand. I think last year our sales in the activities area jumped close to a hundred percent from what it had been year before. So that has been one of the biggest and quickest growing areas of the company. Binnie and Smith's largest customer of crayola brand products is the K-Mart Corporation.

This East Wichita K-Mart sells forty to fifty percent of its crayons during the back to school buying season. Crayons are still as much as staple for elementary school children as their paper and pencils. The children feel very familiar with using this material and these materials because they use them at home, most homes have crayons at home, and they feel very familiar and expressing themselves at rise with crayons. The Binnie and Smith products are still increasing in sales every year. It seems like children are brand conscious and of course Binnie and Smith is a nationally known brand and it's a highly image item, it's easily recognizable and recognizable as a value when they advertise it so consequently the Binnie and Smith are still a large percentage of the crayons sales. Binnie and Smith reports records sales and earnings for the first six months of this year

led by the Crayola markers and followed by the crayon line. Emphasis for future growth will be on developing new products which still carry the familiar Crayola name. In Wichita, Kansas this is Douglas Rutherford for the Nightly Business Report. Well, Paul, why don't you take out your Wall Street car and book and tell us what stocks ended up in the black and which in the red? So that's why you won't give me anything sharper than a crayon around here. Let's have a look at it. 1985 after accounting for inflation. As we reported yesterday the latest figures on new car sales were good news for all the domestic auto makers, but what about the used cars that people drove before they bought the new models? Many people traded those old cars in. But one segment of the business of America is providing some used car dealers with an alternative. Douglas Rutherford of our Wichita Bureau reports on how one new approach to selling a used car is working. Now there's a new way to sell your car. Look for the new car dealer in your town displaying this sign. National auto finders emerge. Wichita-based national auto finders started in 1978 with a $500 investment.

Today the company has 265 franchises nationwide that sell used cars on consignment. We have much like a real estate company and we help you sell your automobile like a real estate company. We help you sell your home. We have two types of contracts. One is a percentage contract. We would take a drug percentage of what the car sells for depending on what it sells for. And the other contracts is we have a car to add on and that's where the dealer and the individual get to get on a price for the car and then as a company we would sell to a bad luck price for their commission. National auto finders sells franchises to new car dealerships because they have the facilities and personnel to handle the cars. The dealers are also equipped to take calls, finance, give warranties and take trade-ins. This Wichita dealer charges a customer $35 for 30 days on the lot and can sell about 50% of the cars that come in. The national auto finder system is another way of providing inventory to a dealer basically that's the advantage to a dealer.

It's a cost-free inventory to him. It allows him to plan his inventory based on what's selling. Under the system the dealer and the customer work together for their mutual benefit. Officials at national auto finders say their customers usually get a higher price for the vehicle as compared to trading it in. Our whole goal from the very beginning was not to get the customer the most rich car. It does happen to where we are able to get him more than he thought he could get, but as our rule is, we are just attempting to get the individual more than we would on the trade-in. The national auto finders nationwide network sells between 1,300 to 1,600 cars a month. As far as future plans go, company officials say the business has grown so quickly that they will be primarily concentrating on making their current franchises more profitable. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. Well, Paul, at least it's easier to buy a used stock than a used insurance economy is improving and the people are being called back to work.

But despite that trend, many Americans still face unemployment and other economic difficulties. As a result, there is still a need in many cities for programs to help these people. Douglas Rutherford of our Wichita Bureau reports on what some major businesses in Kansas are doing. In August, a group of Wichita business leaders announced the formation of the Kansas Food Bank Warehouse, the not-for-profit agency will collect non-salable food, which would be wasted, and give it to charities that distribute groceries to the needy. The organization is currently in the process of raising $35,000 to $40,000 in seed money for a January start update. Half of the money has already been raised from business contributions by Cessna, Coleman and Boeing. Lionel Alfred, president of Boeing Military Airplane Company, heads up the Kansas Food Bank Warehouse, and several Boeing staffers have helped in its organization. The business community has responded in a way that shows me that they're interested in hopping in any way they can, and I expect every large business as well as those who are smarter to be a part of it.

The Wichita Community Food Bank is one of the agencies which will receive food for distribution from the organization. The Wichita Food Bank is set up to give emergency assistance and serves 1,500 families a month. Several area food stores are regular contributors to the agency. I'm hoping that there will be very little overlap. I'm going to work very hard so that we not ended up in a competition situation with them hitting the same stores and agencies that we're hitting. There are enough organizations not being tapped currently that there should be no overlap. Some members of the Kansas Food Bank Warehouse say it will provide existing food distribution centers with added advantages. Well, I think it was needed here in Wichita because since I've talked to some of the organizations giving out food, they know this food was available and yet they have not been able to use it because they did not have the storage facilities or the handling facilities. We'll have over the road trucks available to us to go back and forth to pick it up at the various producers or manufacturers so that they were unable to do that.

The Kansas Food Bank Warehouse still needs to hire a director, locate a warehouse, trucks and other equipment before I can start collecting food. After six months of operation, they plan to join a cooperative group of more than 40 non-profit food banks called Second Harvest. This National Organization gathers surplus food donated by companies such as Campbell Soup, Craft, Quicker Oats, and Coca-Cola. The Kansas Food Bank Warehouse will then have access to surplus food supplies nationwide. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. These two nail lines are not... A's to permit the export of 1.85 million vehicles. What we hear the phrase higher the handicap, we may think of a person who can do only a simple or desk-bound task. But the business of America does not always take the traditional or expected approach, but that's been good for some handicap workers and cancers. Douglas Rutherford of our Wichita Bureau reports.

Wichita-based Kansas Elks Training Center for the Handicap provides job-oriented rehabilitation services for physically, mentally and emotionally handicapped adults. Catch Industries is the manufacturing arm of the facility, giving work to the handicapped individuals. The business manufactures everything from air filters to electronic parts. 1983 sales are up 37% from the previous year. On every bid for subcontract that we submit to any customer, it has to be competitive with the so-called private sector. So we get no unfair advantage. In fact, we have to have certification through the Department of Labor, more so than even the private sector. Our bids have to be competitive. The wages that we pay either on peace rate or hourly salary have to be commensurate with the marketplace. By running catch industries like a business and recycling the profits, the Kansas Elks Training Center owner relies on 25% of its current support from the government as opposed to 67% three years ago.

The center's success directly benefits its clients and helps to achieve the goal to make each individual as independent and self-sufficient as possible through vocational training. Bill Sanger has been trained at various jobs through the center and is now working on catch industries three-wheel vehicle. They really helped me out out here a lot and I'm real pleased with the work I'm doing out here. Using job skills gained through such places as the Kansas Elks Training Center for the handicap, disabled persons in Kansas earned a total of $1.5 million last year. Instead of being recipients of tax support, they paid taxes. For every dollar that the taxpayer has been in this agency, for all aspects of our program, they received $8 return by removing these people from the tax roles by allowing us to become more self-supporting ourselves. I don't know where in the investment community or the business community to return to your

stockholders for us being the private sector or society, the taxpayer. I don't know where the investment return is any better than that. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. The results are in on an audit of Eastern Airlines and two New York accounting firms say they're a study of the era. It often seems that the world is becoming less and less personal. Nowadays, a times people get money from machines rather than human tellers. They get calls from computers rather than people and they buy food at warehouse size supermarkets rather than at mom and pop grocery stores. Although not all segments of the business of America had dispensed with individual service, Douglas Rutherford of our Wichita Bureau reports from El Dorado, Kansas, on one company that still has the personal touch. Marvin Conner and William & Kirkpatrick bought the letter earlier in 1960. They delivered 12 hundred gallons of milk and milk for evidence and institutions in the town.

They were to say they were captured about 20% of the market in this town of 12,000. Little probably would have made me the customer if we didn't buy one glass. They can get paper cartons, they can get plastic bottles in the store, anywhere they go. And the glass bottle is what we're all in our customers here. Once in a while, we've run out of milk and they were closed and we get down to grocery store and get some milk and there's place more in those cartons and you can tell a difference. It's just like doughnut and dark. According to the latest National Day Council figures, only 1% of the nation's milk now comes in glass and just 2% of the milk is delivered to homes. Home delivery of milk is gone by the race side because the cost of fuel and labor make it un-economical. And as for glass bottles, they cost more than plastic containers. At one time, the other day there was a much larger operation and delivered more consumers to our new towns. Now, cartocopartic and three part-time employees do everything from processing and delivering the milk to maintaining their fleet of three DQM trucks, which are over 20 years old.

As time went by and labor began to get a little bit more expensive and we got to where we couldn't afford to hire the help. Well, we decided we'd just kind of pull in and start doing everything ourselves. Carpathic and Carnas, they gave up getting rich a long time ago. They're grateful to have had such steady work and they say they've made lots of films with the business. We'll deliver half a dollar milk and glass bottles for a bottle of swimming pool of milk. And we'll make a worth nearly half of it to live on, that's just here. The other way they can, this is Douglas Radford for the Nightly Business Report. My guess market monitor this week is Mr. Raymond F. DeVoe, the author of the well-known DeVoe report and the chief market strategist for the... During the period last year, we're boosted by cut rate financing and rebates. We've been reporting for some time on the activities of the nation's big banks as the federal government deregulates the banking industry.

But while the banking segment of the business of America revolves around national and regional money centers, it is also thriving at smaller institutions, sometimes much smaller. Douglas Rutherford of our Wichita Bureau reports on a case in point. Since 1927, the students, faculty and staff at Seaman High School and Topeka, Kansas, have been able to write checks, make deposits, and obtain loans at their own high school bank. The bank is recognized as a class called Money in Banking. Under the supervision of their bank sponsor, ten students get class credit for running the bank five days a week during the lunch hour. The bank currently has 175 accounts and assets of $65,000. The high school bank is self-supporting and makes money for supplies and equipment by depositing cash into local banks to collect interest. The bank also profits from loaning money at 10% interest.

I will loan up to $300 to any faculty member or student. It has to be school-related. The ten students rotate between the various jobs of the bank, thus gaining an overall working knowledge of the system. Before being in the bank, I thought I'd be an engineer and now that I've been in the bank, I'm thinking more business, sometimes a business career. It does give the students a start on a future vocation and plus with the experience that they gain in the seamen bank, it makes them desirable to use the local banks as part time and front time employees. The students at seamen high school are gaining a good first-hand look at how to financial institutions that they'll be dealing with as adults work. And additionally, the students have the added advantage of having hands-on experience in a working bank when they go looking for that all-important first job. In Wichita, Kansas, this is Douglas Rutherford, for the Nightly Business Report.

In past, this... In Salana, Kansas, one college offers its students a money-back guarantee on getting a job after getting an education. In Minneapolis and around the nation, some of those already on the job are getting a wider choice of the times they come to work and leave to go home. And in New York, William Roman discusses the fallout from Martin Feldstein's stand on the federal deficit. It's fowled to 2.7 million in the week that ended in November 19th. Last month's drop in unemployment to its lowest level in two years is a sign that many Americans are re-entering the workforce, and one college that's preparing people to become a part of the business of America is making its graduates a special deal on getting a job.

Douglas Rutherford of our Wichita Bureau reports from Salina, Kansas. Brown Mackey College is a private business school which has been operating since 1892 in Salina, Kansas. The school offers courses such as bookkeeping, court reporting, secretarial training, and computer programming. What sets Brown Mackey College apart from other business schools is that any student this year who fails to find a job in his or her field within 120 days of graduation will become eligible for a tuition refund. I feel that the tuition refund is the ultimate accountability that you could have in education. We are willing to stand behind the service that we provide. We have been having an outstanding placement rate for many, many years in excess of 95%. Last year we set a record at 97.9%. I think it's really a nice idea, and it'll help a lot of kids because a lot of times they won't come into it because they're afraid they won't find a job. Certain conditions have to be met before the business college will grant the refund.

The student must be willing to relocate, be physically able to work full time, and must not set unreasonable demands for a job such as an exorbitantly high salary requirement. College officials say the job placement rate has been high because they make a point of finding out what types of jobs are in demand and adapting their curriculum to correspond. The fact that the placement department is constantly aware of the job opportunities and knows how to obtain that kind of information certainly enhances the graduate's opportunity for jobs. Even though the officials at Brown Mecky College expect to make some refunds, overall they believe their program will continue to be a successful one. In order to have a satisfied customer, you have to have a good product. What we're saying through this program is that we believe that we'll have satisfied customers. If not, we'll refund the monies that were put into the product.

In Salina, Kansas, this is Douglas Rutherford for the Nightleaf Business Report. Well, Paul, I wonder why a brokerage firm doesn't take a cue from that school and offer its customers a money back guarantee. Well, maybe one will, but I'm afraid they better sell only Uncle Sam Savings bonds. Let's have a look at those closing averages again. The Dow industrial's locker contract calls for a wage freeze for employees hired after January 8th. It also allows for the consolidation of certain jobs of which the union had opposed. Many refineries across the nation have already been idled, not by labor problems, but by an abundance of oil and gas products already on the market. However, the oil refining segment of the business of America is making a bit of a resurgence in places like Pholpsberg, Kansas, a small town in the north central part of that state, far from oil centers like Houston. Douglas Rutherford of our Wichita Bureau has this report. This refinery in Portland, Kansas has been closed for 20 years now. Other refineries across the country may be destined to the same fate.

According to the American Petroleum Refiner's Association, about 120 refineries now sit idle with few buyers in sight. The situation is due primarily to reduce demand for petroleum products. However, one refinery in Pholpsberg, Kansas, has bucked this trend and is coming back into production. Closed in late 1982, the farmland industry's Pholpsberg refinery reopened last month to supply asphalt for 10 co-asphalt products, which operates a roofing single plant in town. Prior to the closing, our primary reason for running the refinery was to produce refined fuels for our farmers. That we serve, however now, that priority has changed, and we were primarily opening it to produce asphalt, and secondary to provide refined fuels to our farmers. Farmland industry officials estimate the cost of reopening the refinery at $450,000. The refinery will operate at about one third of its capacity, processing 8,500 barrels of crude oil in a day.

The initial contract is for one year, but 10 co-asphalt officials foresee a long-term arrangement. When we enter into a contract with anyone, we try to look down the road for 10, 15, 20 years. And when we are all at our national, we certainly need no salvation for us enough for the refinery. Pholpsberg is a town of over 3,000 residents, and welcomes the 30 new jobs the refinery will create. This will help offset the 130 jobs lost where the refinery closed last year. Most people are real optimistic, they don't think we'll see much of an effect from possibly two or three months, but because the families are some of the men that have moved back are not here yet, and so we won't see any effect yet, but we think it will help in two or three months, particularly in the housing situation where a lot of empty houses. In Pholpsberg, Kansas, this is Douglas Rutherford, Philadelphia Business Report. My guest market monitor this week is Mr. Andrew L. Addison. Two Swiss francs, down from 2.23 francs, Dealer said the dollars decline came on speculation

that tomorrow's GNP report may show slower than expected growth in the U.S. economy. Science fiction, sometimes comes closer to science fact than you may realize. In a famous episode of the television series Star Trek, we learned about small furry animals called tribbles, and an exotic genetically engineered feed grain called Quattro Tritiquely. The business of America may not have beamed us up to that future just yet, but genetically engineered grain that is especially disease resistant is already a reality in the Midwest wheat fields. Douglas Rutherford of our Wichita Bureau reports. Even with less acreage planted last year because of the federal government's payment and kind program, Kansas harvested its second largest wheat crop. The average yield for 1983 was 41.5 bushels an acre, and as the chart shows, this is a far cry from the per acre production of 13 bushels prior to 1940 and doubled that of 1960. Wheat production has improved over the years because of better wheat varieties, the use

of nitrogen fertilizer, and improved farm management. Researchers at the Kansas Agricultural Experiment Station, located at Kansas State University, are constantly experimenting to develop a better variety of wheat. A new variety must be more resistant to bugs and disease and give higher yields, yet be the quality that makes a good loaf of bread. The most important variety that's been released by Kansas State University recently has been the variety Newton, and it was developed here in the agronomy department. In just a few short years, it rose to take about 40 percent of the Kansas acreage was planted to that one variety alone, and so it had a tremendous impact on the state's ability to produce wheat. Researchers at Kansas State University say it takes about 12 years to develop a new wheat variety at an estimated cost of $300,000. The work done at such institutions also helps private companies that market the seed for wheat.

People I can to state and other research institutions that work on these new harbours, we use them as parent lines, and this is really beneficial. We also have our own program, we're developing our own parent lines that we use to make harbours. Improved wheat varieties and new hybrids provide not only higher yields, but also greater resistance to disease. Researchers say an average of 13 percent of the Kansas wheat crop in the last five years has been lost to disease alone. So we constantly have to be introducing new forms of resistance and the form of new varieties to protect the wheat varieties from the resistance or protect the farmers from economic loss. Farmers are quick to recognize the economic benefits of a higher yielding wheat variety or hybrid. As the world's population increases and the amount of land for agricultural use decreases, this type of research that yields higher crop production may become even more important than ever.

In Newton, Kansas, this is Douglas Rutherford for the Nightly Business Report. As Paul noted earlier, the... Well, mark it up a quarter on those advertised health system bonds fed funds rate 9.5 to 9.7.16 on the close, and that's our Wall Street wrap-up, you know, like of all. Earlier in the program, we heard about moves to eliminate the pesticide EDB for the nation's food supply because of health concerns about the chemical. Now is also a nationwide push to restrict or eliminate another alleged health hazard, cigarette smoking from public places and offices. Along with that push, some parts of the business of America are coming up with ways to get smokers to kick the habit. Douglas Rutherford of our Wichita Bioro reports on how some companies and smokers stand to game if those efforts succeed. Cegregation between smokers and non-smokers in an office environment is nothing new. As a matter of fact, a total ban on smoking has been an effect at one Wichita company for quite a while.

It came probably 15 years ago or so when we noticed that the majority of our people here did not smoke and preferred not to be in a smoke-filled environment, and only a very few who did, and so we asked those few who did if they could live with a policy that said they don't smoke during this period of time, and they said they could, and so we said, this is the policy and everybody else coming on since then has understood it, and obviously those people who said we can't live with that, they go to work somewhere else. The office employees at Martin E.B. Construction Company have accepted the no smoking policy and also claim fewer benefits on their medical insurance. I costs a lot of lower, where they tell us, in the range of 30%, that sounds like an awful lot, and there may be other factors, maybe the average age of our group, but certainly the non-smoking aspect of it is an important part of it. Another company, this one in Salina, just issued its ban on smoking at the first of the year. With the ban comes a promise of a $500 bonus to the smokers at the Salina Journal who can totally quit for 90 days.

We have about 115 employees, and 31 of those were smokers. So far, to the best of my knowledge, we only have five that have fallen off. The other 26 are still not smoking. Rick Levine is the Salina Journal's oldest employee, and has smoked for 45 years. The ban at work, plus some prompting from his wife, gave him the incentive to quit smoking. I've worked with the Journal before World War II, and I went into Navy, and I was serving in the Aleutian Islands in 1943 for Christmas, and the Salina Journal sent me five cartons of Chesterfields, and for Christmas that year, and that was 30 years ago last December. And now they're all from me, $500 by Quit smoking. According to recent statistics from the American Lung Association, which were compiled by the Gallup Organization, it costs an employer $400 a year to employ a worker who smokes, as opposed to one who doesn't.

As the Salina Journal helps clean up the environment for all employees, it also translates into a real dollar savings as well. In Salina, Kansas, this is Douglas Rutherford for the Nightly Business Report. My guest-market monitor this week is Mr. Patrick Page to Patrick Page Kill Doyle, he portfolios areas at this time. However Clark said his views on such drilling could change during his term in office. Recent studies show that many women who made it in business succeeded because they had the opportunity to learn from mentors who already knew how to run things. In the past, finding a mentor was pretty much a hit or a mis-popposition. But now, one segment of the business of America is trying to provide a more organized forum for women to study business management. Douglas Rutherford of our Wichita Bureau reports on one mentor program. The Wichita Chapter of the National Association of Women Business Owners recently set up a mentoring program. This program, which started in December and will run through September, will give an opportunity for young women to work with other women who own established businesses.

We are working with five young ladies here in the Wichita area, and our beginning screening process worked through some of the college papers, high school papers. Word of mouth got around that our ladies from the organization were going to be working with a select group of young women. And we took their applications, screened those. We picked the young ladies that would be very favorable for the organization, and that would like to learn how to network and work with the women. Then we matched them up, depending on their interest with five of our members. The young women will have the opportunity to learn more about the business side of their career choice. Along with the individualized training, the mentoring program also includes various workshops on subjects such as goal setting and business finances. One woman is learning the ropes at an advertising products firm. And when I heard about the mentoring program, I thought that would be an excellent opportunity to actually be with somebody who started a woman, especially, who had started her own business, and kind of followed her around, learned from her, learn what the pitfalls and opening a new business, starting a business is, and just see for myself what it would be like.

Without having to make the initial capital investment, and in this way, I get the experience too. She's new to sales. She's never done it. She's always been in the office, and it's something she's always wanted to do, but never had anyone around to kind of guide her. And we would like to see her in a year be one of our top salespeople. The mentoring program underway in Wichita will also serve as a prototype for the National Organization, the National Association of Women Business Owners, hopes that this program will help the young women realize that business ownership is a viable alternative as a career choice, and that support and guidance is available. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. My guest market monitor this week is Mary Epp. In Paul Kangus' absence, we're using our last word segment to look at some unusual aspects of the business world.

Tonight, one small part of the auto industry. Douglas Rutherford of our Wichita Bureau tells us that some people are making a U-turn to the past days of the automobile, and they are producing some shining examples of what once were popular road cars. The art of antique auto restoration demands the services of skilled craftsmen. One place where people can learn this trade is McPherson College in Kansas. It is the only college in the country that offers a two-year associate's degree in auto restoration. The courses attract students from all over the country. The freshmen completely take a part of Model A Ford or Model T Ford, clean and reassemble the parts. We try to use authentic materials and parts. Rust-ed-out panels are usually removed and replaced with new material. An authentic restoration is very important, and research takes a lot of time, and it's stressed in the program so that everything has been correctly. The goal is a complete restoration. Both for the chassis and the mechanics, so that the car is eventually in the same condition

as when it was first driven off the assembly line, even after putting in 25 hours a week in the shop, students are required to take courses in business and accounting to broaden their background. I would like to use business and restoration together, maybe work with someone else that owns a business as business is concerned, and help manage it as well as restore some of the cars. Restoration, to me, is more of a hobby. I don't want to make a living at it. From what I've heard, it can be a pain, and you really have to be real good at it to make a profit. So I just want to apply it for myself, my own benefit, really. The students will graduate knowing exactly what it takes to completely restore an antique automobile, from fabricating missing parts to researching just what type of headlight is needed. The students become familiar with the types of restoration problems that they will encounter later when they're working on cars for a living or for a hobby. We are not producing skilled craftsmen.

We are not competing with professional restoration shops, and we are rather trying to provide employees for professional shops. The students can go into many areas that are not directly related to restoration with the instruction that they get here. The instructors at the college see the restoration program as a type of art conservation effort. The courses not only teach the students a trade, but help to preserve a real piece of Americana with the restoration of antique automobiles to the way they were when they were new on the road. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. And that's it for this edition of the Nightly Business Report. It's at a precedent for other bank loans to developing countries. When we think of the interconnection of the Royal Economy, we in the United States frequently overlook the trade ties between our capitalist nation and major communist countries. Tonight, in two separate reports, we look at some examples of economic ties between East and West that are stronger than most Americans realize.

Douglas Rutherford of our Wichita Bureau reports on how a tractor race between Soviets and Americans is developing in the wheat fields of Kansas. The Soviet-made Belarus tractor is marketed in 97 countries, including the United States, which has 215 dealers in 22 states. Last year, Belarus sold over 500 tractors in this country, accounting for an annual gross of $2.5 million. The state of Kansas just got its first Belarus dealership in February. Waldo Freys, along with his sons and brother, run this dealership near Inman, Kansas that exclusively sells and services the Belarus line of tractors and irrigation engines. Freys says the Belarus tractors are durable, efficient on fuel, perform well, and costs less than other makes, primarily because of low Soviet labor costs. If a Kansas farmer is reluctant to even consider buying a Russian-made tractor, Freys says looking at these advantages may help change his mind. After a while, they realize that some of the other brands are built in communist countries like John Deere and Alice Chalmers, and some of these other brands are built.

Like Stiger Axles are built in Hungary, and I think with that in mind, I had the same feeling when I first heard about it. A Belarus 300 horsepower tractor lists for $57,000, but Freys will offer some discount on that price. A 305 horsepower Alice Chalmers lists for $93,000, and a John Deere 325 horsepower tractor lists for $122,000. These lists prices do not take into consideration dealer discounts between 15 to 30 percent that John Deere and Alice Chalmers dealers can offer. If Freys is what they're looking at, they may look at a Belarus, but I think they're also going to be a serious prospect for a used American-built tractor down in the price range of a new Belarus. You might be able to buy a Belarus for several thousand dollars last, but in the long run, parts of availability, service availability, and just generally having a dealer that will

take care of the farmer is worth a lot, and I think they'll stick with our American-built tractors. Freys says he isn't worried about a Russian freeze on parts because there are also warehouses in Canada, Mexico, and Australia, as well as in this country. The parts that I do not have in stock are in Milwaukee, Wisconsin, and it takes about two days UPS to get them here. So far, Freys Implement has sold two tractors and four irrigation engines since opening a month ago. They plan to build up the dealership by advertising and exhibiting at farm trade shows. From Inmancansis, this is Douglas Rutherford for the Nightly Business Report. The nation's railroad industry is still assessing Allegheny Corp. Risk order profits rose less than 1% to $1.25 per share.

Mexico said cost and curative, it's take over of Getty Oil, held down its earnings. We've reported on innovations in alternative sources of energy, such as the Sun and the Wind. Now Douglas Rutherford of our Wichita Bureau reports on another energy source that has been discovered in the Midwest, but his potential remains untapped. Hydrogen is a chemical element. It's the lightest gas known and can be used as a non-polluting fuel. The use of hydrogen as a fuel, though, has been limited due to the high costs of extracting it from methane or water. But the discovery of the largest known field of hydrogen gas in North Central Kansas could increase the potential for use of hydrogen. The hydrogen field is estimated to cover at least 100 square miles and lies primarily underneath farm and ranch land. Oil-wild-catter dawn clerk discovered the hydrogen while drilling for oil. I'm anxious to get started on a development program to see how much we can produce today, how much industry can be generated from this.

What is really the potential for the economic development of the hydrogen? Clark sold most of his mineral rights to the Billings Corporation in exchange for 1.3 million shares of their stock and a 6 and a quarter percent royalty on production. In addition, the land owners will get a 1.8-royalty interest from the hydrogen. Billings Corporation, located in Independence, Missouri, has been involved in hydrogen research for over a decade. We have, in the past, used hydrogen to power cars and trucks and buses. We have built a hydrogen-powered home that was completely run by hydrogen, everything from the barbecue grill to the fireplace, to the kitchen stove, home heating. Hydrogen can be used for most anything to replace any other energy source and we have used it at least in a demonstration scale to show that that is not only feasible but very practical. Officials at Billings Corporation estimate the hydrogen field to contain over a trillion

standard cubic feet of hydrogen gas, a geologist from several universities, are also studying the field. If there is a substantial amount, then it has practical application as a fuel. It could be used for chemical processing of foods. It could be used in the chemical industry in general without any difficulty. On the other hand, we don't know at this point how much there is. So there's no question that the hydrogen is there, the problem is how much and that we haven't tested yet. Dr. Zeller also stresses that the technology needed to get the hydrogen out of the ground isn't proven yet. The first well should go into production within the next few months. Officials at Billings say they will probably sell the hydrogen to chemical companies and also use the supply to aid their research. We're going to try new ways of using the hydrogen that we haven't yet experimented with. For instance, running a large turbine, running a fuel cell on a large scale, things like that.

We're able to do with this field that we weren't able to before. As of the very low level of pollution, extremely low level of pollution from engines running on hydrogen plus the efficiency of such engines, which is quite high. For these reasons, I would think that hydrogen does definitely have a possibility for major development and that it certainly has prospects to become a fuel of the future. This is Douglas Rutherford for the Nightly Business Report. It aside of an energetic economy. This is one of the biggest factors, but the high-tech sector of the business of America includes companies working in a variety of fields, and many of them are located quite a distance from California's Silicon Valley. Douglas Rutherford of our Wichita Bureau reports on one firm that's bringing its brand of high-tech to Kansas. Wichita-based Electromech is a privately held company that manufactures motors and components for use in aviation, defense, and industry. The company started out as a basement operation in 1968 and has doubled its manufacturing capacity every four years since then.

Several years ago, Electromech developed an aggressive growth plan to capture a larger share of the high-tech market. As a result, the company developed a one-and-a-half-inch diameter motor for a striker corporation of Kalamazoo Michigan to use in its cordless surgical instruments. It was able to diversify with an existing product range, and it was a very low-risk strategy to increase sales and to provide for future earnings. The striker corporation was looking for a stronger, more durable motor to power the cordless surgical instruments, which are used mainly by orthopedic surgeons. The life of the original motor, the company tried, was only two to four hours. After six months of testing, Electromech developed a new motor with an estimated life of 200 hours. It ties in nicely with the hospital's desire to cut costs, with the new federal regulations. Because this will almost allow them to take one person out of the operating room. They will not have to worry about the sterilization of the cord that's continually falling on

the floor or getting involved. Officials at Electromech say its penetration of the medical equipment market will increase from zero in 1983 to a level representing 8% of the projected 1984 sales of 4.5 million dollars. They have grown as a company over the past 10 or 15 years by developing new products and utilizing the technologies that they develop in those new products in different ways. And particularly in the latest development of this motor, they were able to get into some totally new fields, which I think spelled a totally different direction for the company in the next 10 years. Electromech has already increased its workforce by 10% in the past two months and projects further hiring increases within the next year and a half. Electromech plans additional applications for the small motor in both aviation and defense and is actively engaged in the design of other motors for medical use. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report.

Coming up, Arthur Lafer looks at supply side economics in an overseas context. GER is a growing sport in America for the most part, professional soccer teams enjoy less fan support than many college squads. However, the business of America can sometimes help teams put customers in the stands. That's just what has happened in Wichita. Douglas Rutherford reports from our bureau there that local businesses are getting a real kick out of their pro soccer team. Wichita is one of the smallest cities in the country with a major league sports franchise in Wichita Wing's soccer team. After struggling through its first two years, the team now plays to near capacity crowds. We have 14 general partners and 38 limited partners, a total of 52 owners who put together the equity necessary to support the losses that this team has. We will be depending on how far we go in the playoffs that we're now involved in. We'll be anywhere from break even to probably negative $300,000.

The business community sees us as a very important asset to the town and also there's a wonderful togetherness in the city of Wichita that makes people support each other and businesses have certainly gone out of their ways not only to enhance their business, but to enhance our team with the support that's given us. Wichita leads the major indoor soccer league in advertising sales. The rest of which revenue comes from ticket sales, souvenirs, and radio and TV packages. Wichita Wing's has never had a losing season and ended this year in second place in the western division of the major indoor soccer league. With the team's growing reputation, it's getting easier to repeat players. Sometimes while our players might not be paid, as well as maybe someone in New York, the number one thing is that the people show a lot of affection towards them. Number two, they know the salary is going to be there for whatever length of time we tell them they're going to get paid, that's the way it's going to be.

Wichita, we're not going to sneak out overnight, like some sports fund chisers do. But Wichita Wing's is doing as well as it possibly can as a business. The major drawback to making more money is the size of the arena the team uses. It has less than 10,000 seats and team officials say they can fill at least 4,000 more. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. Let's find out what the final score was in Wall Street, Serena, today in Wichita. In the world, Keymark shareholders met a company headquarters in Troy, Michigan. American can companies, stockholders, assembled in an unusual location. Martin Luther King, Jr. High School in New York City. American can is a benefactor of the public school, funding programs such as security training. It's part of a program which is bringing many businesses into classrooms nationwide as Douglas Rutherford of our Wichita Bureau reports. The Target West discount department store in Wichita and the White House share a common project.

They both have adopted public schools in their area. President Reagan has proclaimed this year as the National Year of Partnerships in Education stressing private sector involvement. Currently, 37 major cities throughout the country offer similar programs designed to strengthen the educational process by having businesses share knowledge and resources. Target West has outfitted an entire room at Dodge Elementary School. What we thought would be exciting to begin with was the concept of the on-target room. And what we have donated in regards to that are such things as an entire video game, home computer various puzzles, various tapes, equipment to put in this on-target room. Since then, we're now looking at planning out that it's the spring, planning some trees and shrubs around the school. We have a art project going on and we've had various projects from transportation where we've gone on field trips with the students as well as spoken to the students. Target employees also help staff the room along with parents. The students at Dodge Elementary are able to use equipment and games they wouldn't or nearly have.

Well, it's an incentive program. Each teacher sets her own, his or her own criteria, how the children earn the right to be here. The primary is based on hard work or perhaps improvement of behavior. So far, 10 businesses in Wichita have adopted schools. School officials say to schools and businesses are satisfied with the partnerships and the program should continue to expand. At this point in time, Memphis City Schools has all of their schools adopted as of last week. We know the potential is there for Wichita also with 100 schools that we have in our district and with the number of businesses and organizations that we have in our community. There's no doubt that what we will at some point in time, hopefully, within the next two to three to four years, have all of our schools adopted. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. The federal government is nearing a credit crunch that could force it to be. In New York, Neil Kavuto for the Nightly Business Report.

See it's safe. The oldest form of advertising is outdoor advertising. Ancient Egyptians use stone tablets containing sales messages along the roadside. In ancient Greece and Rome, outdoor ads also appeared. They remain in important means of advertising in the United States and have been just that for many years. Douglas Rutherford of our Wichita Bureau tells us how billboards got their start in this country. In colonial America, posters were used for outdoor advertising, and they provided a cheap instrument for communication during the American Revolution. Later posters were used for commercial purposes, mainly advertising circuses, traveling museums, and theatrical companies. In the late 1800s, the first billboards appeared when the companies began leasing out space on wooden structures, and when the automobiles became commonplace, billboards flourished along the roadside. Today, as the population has shifted to urban areas, so have the outdoor ads. According to the Institute of Outdoor Advertising, there are 230,000 billboards nationwide. 1983 was a record year for the industry with over $1 billion in sales.

Don Ray Outdoor Advertising Company in Wichita, Kansas has about 500 billboards in the area. Company officials say the last two years have been slow, but businesses picking up now as the general economy gets better. Don Ray offers its customers two types of standard outdoor ads. One is the poster board, pre-printed panels designed the last about 30 days. The second is the painted bulletin, hand-painted one at a time, and usually leased on a one-year contract. The average cost nationwide to rent a painted bulletin averages $1200 a month. The cost for the poster board is $250 a month. The primary advantage that we have is low cost, cost per thousand, and it's far lower than any of the other media. The other types of advantages would be the largeness, the boldness, color, the fact that it's out there 24 hours a day, seven days a week.

Officials at Don Ray say some of the businesses in Wichita that use billboards heavily are motels, restaurants, auto dealers, and financial institutions. Officials at the Ridge Plaza Inn say next to the best Western travel guide, billboards are the most cost-effective method of advertising the motel. Because they're at a premium, it's like a game of an apple if you don't want the other person to have it either. As far as the effect on the working business, that is business with that previous reservations, I don't say that they're quite effective. Some of the businesses are new to outdoor advertising, St. Joseph Medical Center in Wichita started using billboards a year and a half ago, and now 10% of its advertising budget goes for billboards. We have rentables because we thought that billboards are cost-effective, type of advertising. Also, we have discovered that by reaching the driver and the passengers, we are attracting patients.

It's very interesting. We have attracted patients because of our breadboards. People have told us this. What sets outdoor advertising apart from other types is its sheer size with a message painted on the board 48 feet wide by 14 feet high. As long as America continues to be a nation on wheels, billboards are likely to remain a primary means for advertisers to drive home their message. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. The advertising industry changes constantly. The audit also disclosed that Rockwell International overcharged the Air Force by almost $380,000 for spare parts used in the production of the B1B bomber. We normally think of automobiles and other vehicles that roll off the assembly line as finished products. And for most of us, most of the time, that is just what they are. But for some specialized parts of the business of America, the end product of the auto manufacturers is merely the starting point for their own companies. Douglas Rutherford of our Wichita Bureau explains. Collins Industries is a publicly held company based in Hutchinson, Kansas, that manufactures

specialty vehicles and wheelchair lifts. The company markets the vehicles through a network of over 650 dealers nationwide. Here's the fact that they have acquired the classic van and that they have all these other vehicles, the diversity that that provides gives them a little bit of leverage so that as the economy changes, they can either increase production in one area or decrease in another. Collins Industries recently introduced the Active Van, a vehicle designed for use by the handicapped. The Active Van uses the new Chrysler Minivan chassis and is equipped with a wheelchair lift. In the past, with a full-size vehicle and with as many manufacturers of adaptive equipment as there are, very often a person would have to go on a shopping trip to find all of the pieces of equipment that he needed to make his van accessible and unusable. And it's our goal to produce a completed vehicle with the exception of driving controls.

Officials at Collins Industries say the Active Van is easier to handle and is more economical than the large vans that are usually equipped for handicapped operation. The vans are slated to sell for less than $20,000. However, production plans hinge on availability of the vans from the manufacturer. Particularly since the new many vans are of such tremendous public acceptance, it's almost impossible to secure the vehicles for making into the handicapped product. However, this year we will still attempt to build approximately 100 units. Collins Industries also produces large Cadillac funeral coaches and limousines. These vehicles cost between $32,000 and $40,000. The Cadillacs are literally cut in half to come up with the finished product. Company officials say the funeral vehicles represent one of its most rapidly growing markets. Collins Industries recently purchased additional facilities for expanding production of its mortuary vehicles and limousine lines.

In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. Well, we had a session on Wall Street today that was custom made for the long-suffering bulls. Let's have a look at those closing averages again. And the Downdust feels up 19 and a half points. What a comeback from recent sessions. Transport's up 11. I've had a strong currency. If this administration wants to remain in office or better yet do a good job in managing the economy, it must maintain a strong dollar. A strong dollar means lower interest rates and a strong economy. I'm Martha Laffer. And now it's the last word here is Paul. We all know that the key word of fashion is change, and that skirt lengths and jacket lapel widths are subject to the current styles. Well, Douglas Rutherford of our Wichita Bureau has this fashion report on one accessory that could be ahead of its time. Hats aren't really as popular as they once were in stores that are devoted exclusively to hats, are few and far between, but at the Wichita hat works a customer can buy a hat off the rack, have a hat cleaned and blocked to be reshaped, and even have a hat custom

made. 25-year-old Jack Kellogg, nicknamed the hat man, has owned the Wichita hat works for three years before that he had six years experience cleaning and blocking hats. Started out with my hat collection. I've always worn hats and fashion I always like to wear the Humphrey Bogart style in the high school, and I ran across a need to get them cleaned and blocked, so I met a man who had a shop and decided to teach me the trade. Kellogg says that hats, aside from being utilitarian, can also enhance a person's looks, retail over the counter sales of hats account for the largest portion of the store's income. With only one other full-time employee, personalized service is a key factor in Kellogg's business. It's difficult to find hats that fit. The reason I really like to come see the hat man is because he can take a hat and shrink it a little bit or stretch it and have it fit your head just perfect, and then he can put in the extra tilt or the snap in the brim that really gives it character and makes it fit the customer just perfect.

And that's hard to find nowadays. I feel if I give the customer a good product and a good service that they will come back and they will tell their friends, I am a great believer in what goes around, it comes around. It's an old cliche that I think works fairly well in business. With most of the old-time hatters out of the business, the Wichita hat works receives a lot of out-of-state orders for cleaning and blocking hats. Kellogg is also building up his reputation for making custom hats, celebrities such as Blue Singer, BB King, and the riders in the Sky Cowboy Band that hats specially made. As for the future of his business, Kellogg is optimistic. I will continue to learn and improve upon my craft, and one day, my hats and my custom hats will be a force to be reckoned with. In Wichita, Kansas, this is Douglas Rutherford for the Nightly Business Report. And we're going to top off tonight's program in style.

I'm glad to see you're brimming over with enthusiasm.