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CCLB 10-06-08 A 1 CCLB 10/3/2008 3:44 PM Page 1 $1.50/OCTOBER 6 - 12, 2008 Community STRIKINGLY SIMILAR banks see Three men alive during the traffic push Depression have faith in the As big institutions falter, local little current economy, yet see familiar guys experiencing uptick in business trends in today’s troubles By ARIELLE KASS [email protected] By DAN SHINGLER [email protected] The country’s financial crisis is producing a steady stream of patrons — and questions — at community o most people, the Great Depression is SPECIAL COLLECTIONS, CLEVELAND STATE UNIVERSITY LIBRARY banks in Northeast Ohio. a large but distant specter from the lives ABOVE: Clevelanders line up for relief orders and surplus commodities on With large banks such as Wachovia and Washington of their parents or grandparents. But to Professor Avenue in what is now Tremont, in 1933. (Photo by James Meli). Mutual biting the dust and local giants such as KeyCorp people in their 80s or 90s, it is an event BELOW: Cleveland's unemployed gather at Public Square in 1930 to receive and National City Corp. posting huge losses, leaders at Tthat shaped their lives — and one they hope the hot coffee and rolls. (Photographer unknown.) some community banks said they’ve seen more deposits nation can avoid repeating. coming through their doors from customers who are Omer Blodgett was about to turn 11 when the nervous about the status of their accounts at other banks stock market crashed in October 1929. His family and are looking for a safe haven. in Duluth, Minn., owned 23 William Valerian, chairman, president and CEO of COMMENTARY: How the Great Lakes freighters that Liberty Bank, said customers with larger banks are Great Depression affected carried pulp wood from moving money to his Twinsburg bank. Neither he nor one family. Page 10 Minnesota to paper mills in officials at other banks would specify how many new Ohio, and salt and lime- customers they’re seeing nor how many new deposits stone to Duluth. they’re capturing. But all those who are experiencing “But that kind of work was going down, deposit increases said the numbers are significant, not down, down when the Depression was coming See BANKS Page 33 on,” said Mr. Blodgett, who at age 90 still works as a senior design consultant for welding products maker Lincoln Electric Co. in Euclid. FOR THE RECORD See DEPRESSION Page 31 CRAIN SURVEYS INVESTMENT MOVES ■ Financial news weekly Investment News and the four city “In both cases, the excesses business newspapers of Crain Communications Inc. are con- of people caused this ducting a three-question online survey to determine whether people are moving their investment dollars during the cur- problem, individual people.” rent financial market turmoil. Crain’s readers can participate – David Morgenthaler, founder, in the survey by visiting www.CrainsCleveland.com/survey. Morgenthaler Ventures continued on PAGE 3 Officials alter campaign strategies amid absentee changes By JAY MILLER general against Republican Mike sure how much money his tion and 25 days before a presiden- [email protected] Crites. “It really changes the game.” campaign will have available to tial primary. This “no excuse” rule That’s not just a Democratic spend once it draws closer to the boosted voting in the 2006 elec- For some Ohio voters, Election notion. Nov. 4 finish line. tions, but will have its full impact Day has come and gone. “Early voting changes a lot of The change in absentee voting this year due to the interest in That reality, brought by the Sept. things” in terms of campaign rules actually came before the 2006 the John McCain/Barack Obama 30 start of absentee voting, has strategy, said Jim Trakas, a Repub- elections, but this is the first high- presidential campaign. altered the way politicians go about lican who’s trying to unseat U.S. turnout presidential campaign Whereas in the past 10% to 15% of the business of wooing voters. Rep. Dennis Kucinich, the Demo- under the new law. total votes statewide were cast in “Election Day is now 35 days cratic incumbent in the 10th The Ohio Legislature in 2005 advance, that percentage is expected long,” said Leesa Brown, communi- Congressional District. Mr. Trakas passed a law allowing any voter to to rise beyond 30% this year, candi- cations director for Richard Cordray, began his first wave of broadcast cast what used to be an absentee dates and campaign observers told the Democrat running for attorney ads last week, even though he isn’t ballot 35 days before a general elec- See VOTING Page 34 40 SPECIAL SECTION 6 Crain’s for the first time honors the region’s NEWSPAPER coolest places to Entire contents © 2008 71486 01032 work ■ Page 17 by Crain Communications Inc. Vol. 29, No. 40 0 CCLB 10-06-08 A 2 CCLB 10/3/2008 1:29 PM Page 1 2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 6-12, 2008 CORRECTION COMING MARKET WATCH The full name of the author of a Page Homes in 25 Northeast Ohio counties in the second quarter of 2008 took nearly a 26 Adviser column in last week’s NEXT WEEK week longer to sell than they did in the like period a year ago, according to the Legal Affairs section was omitted. Fall 2008 edition of the “Real Facts” newsletter from Real Living Realty One. Not Stanley Dub, a Cleveland attorney Small Business surprisingly, months of inventory of homes on the market also has increased in 700 W. St. Clair Ave., Suite 310, who specializes in franchise law, wrote almost every category; the exception — homes priced under $100,000. Mother Nature can leave Cleveland, OH 44113-1230 the column. Phone: (216) 522-1383 nd nd businesses vulnerable to 2 quarter 2008 2 quarter 2007 Fax: (216) 694-4264 destruction after a disaster. www.crainscleveland.com REGULAR FEATURES Average inventory 33,412 36,794 Three businesses that were Publisher/editorial director: Months of inventory 9.7 9.3 Brian D. Tucker ([email protected]) Choice Bits..................15 destroyed by fire last year Under $100K 7.3 9.0 Editor: Classified ...............32-33 demonstrate how loyalty Mark Dodosh ([email protected]) and determination can pave $100K-$199K 10.0 9.0 Managing editor: Editorial ......................10 Scott Suttell ([email protected]) Going Places ...............16 the path for $200K-$299K 12.4 10.8 Sections editor: rebuilding. Amy Ann Stoessel ([email protected]) List: Accounting $300K-$499K 14.8 13.1 Senior reporter: Stan Bullard ([email protected]) firms ...................28, 30 $500K-$999K 20.6 17.3 Reporters: Stocks.........................35 Shannon Mortland ([email protected]) Days on the market 102.3 97.6 Jay MIller ([email protected]) Tax Liens.....................12 John Booth ([email protected]) Median sales price $100,803 $119,414 What’s New..................35 Chuck Soder ([email protected]) Dan Shingler ([email protected]) Arielle Kass ([email protected]) Designers/reporters: Joel Hammond ([email protected]) Kathy Carr ([email protected]) Research editor: Deborah W. Hillyer ([email protected]) Editorial researcher: Kim Ratliff-Null ([email protected]) Cartoonist/illustrator: Rich Williams Online editor: Jeff Stacklin ([email protected]) Marketing/Events manager: Christian Hendricks ([email protected]) Marketing coordinator: Laura Franks ([email protected]) Advertising sales director: Mike Malley ([email protected]) Account executives: Adam Mandell ([email protected]) Art Bouhall Jr. ([email protected]) Andrea Rubin ([email protected]) Dirk Kruger ([email protected]) Nicole Nolan ([email protected]) Classified advertising manager: Don Schwaller ([email protected]) Office coordinator: Toni Coleman ([email protected]) Western accounts manager: Ellen Mazen, 323-370-2477 ([email protected]) Production manager: Craig L. 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Adams: complement your services and expand your role as their trusted advisor. Group vice president technology, circulation, manufacturing The continuing objective is to enhance and preserve your clients’ wealth. Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Patrick Sheposh: Trust is something we earn. Corporate circulation director G.D. Crain Jr. To experience the Private Client Group in Cleveland, Founder (1885-1973) Mrs. G.D. Crain Jr. call Barry Robinson, Market Executive, at 216.222.7272. Chairman (1911-1996) Subscriptions: In Ohio: 1 year, $59; 2 years, $102. Outside of Ohio: 1 year, $102; 2 years, $180. Single copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation De- partment, Crain’s Cleveland Business, 1155 Gratiot Av- WEALTH PLANNING | Investments | Private Banking | Trust & Estate Services enue, Detroit, Michigan 48207-2912. 1-888-909-9111 or FAX (313) 446-6777. NATIONALCITY.COM/PRIVATECLIENTGROUP Reprints: Call 1-800-290-5460 Ext. 136 Audit Bureau of Circulation ©2008, National City Corporation® 64892_66298_CCB10.indd 1 9/26/08 7:02:58 PM CCLB 10-06-08 A 3 CCLB 10/3/2008 4:37 PM Page 1 OCTOBER 6-12, 2008 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Campaign on for $600M Solon megaplan for the proposed “Central Park of as equal parts retail, office and CENTRAL PARK OF SOLON Developer, city officials urge voters to Solon” project that Coral wants to residential, with 25% of the acreage create.