20 — MANCHESTER HERALD. Thursday. Oct. 13. 19«3 G O P school candldato Spend a crisp fall day Save energy BUSINESS takes on 4 Democrats swing Vermont’s sights this winter ... page 11 ... supplemwit Insld^ Business What do financial supermarkets mean? ... page 3 In Bnef What does the development of the so-called ’’financial supermarket” mean to you — one of our again bank manipulation of their own stock prices M d Labor surplus areas named nation’s savers, investors and depositors? That the the dumping into customer portfolios of questionable concept is spreading rapidly from coast to coast is Y o u r securities (low-quality bonds of Latin American- HARTFORD — Bridgeport, Bristol and 10 other beyond dispute. That the financial supermarket is nations) ? Connecticut communties have been designated being accepted by most of you with remarkably little M o ney's Do we want the funds we deposit at banks to be used Manchester, Conn. labor surplus areas making them eligible for question also seems clear. But what does it mean? - in tbe inherently risky securities business? Do we Partly cloudy tonight: Friday, Oct. 14, 1983 preference in (be awarding of federal contracts. Answer; A lot more than you probably suspect. The W o rth want tbe government also to take on tbe massive job of mostly sunny Saturday The federal Labor Department said the supermarkets offer you a range of services from one Sylvia Porter Insuring banks against mistakes in stocks and bonds? Single copy: 254 Connecticut cities and towns are among 79 in New source and emphasize convenience. Obviously, that’s — See page 2 England and more than 1,400 across the nation advantageous to you. THE TIM E HAS COME for Congress to re-examine' manrtjpstrr Mpralfi targeted for assistance because of high But they also open the way to abuses that the United tbe entire issue of how the financial services industry unemployment. States has successfully avoided for a full half-century is structured, says Ed O'Brian, president of the Employers in Ansonia, Killingly, Plymouth, — since the Glass-Steagall Act forced a separation of more choices. As the concept of a financial Securities Industry Association. ’’Congress should Putnam, Seymour, Thomaston, Thompson, Tor- banking from the securities business. supermarket grows, several giant organizations are look at the legal underpinnings of the industry, see rlngton, Voluntown and Winchester also can emerging that offer a wide range of services under where changes are necessary, and keep those that receive preference in federal contracts for the WHAT IS BECOMING imperative is a moratorium one roof. Sears, for instance, is now as much a protect customers.” fiscal year that began Oct. 1. on the creation of the supermarkets until we can find financial services conipany as a merchant, with Right now, federal regulators are ignoring the law„ Employers must agree to perform at least 51 out whether the hodge-podge of financial institutions Allstate (insurance and savings). Dean Witter and making arbitrary decisions about which bank percent of the contract work within the is in our nation’s interest. Congress must order: Reynolds (investments) and Coldwell Banker (real activities are anck are not legal. To add to the designated areas. STOP! while our lawmakers debate and decide what estate) under one umbrella. confusion, states have separate regulatory schemes. O ’Neill won’t ask new ground rules are necessary. Citicorp and other major banks are aiming for the And banks have been "shopping” the states to find a Bus fare increases asked Not so long ago it was easy for us to answer such supermarket goal, too. Citicorp owns a savings and state legislature willing to change the laws to suit questions as: What’s a bank? What’s a brokerage loan in California, a credit operation in South Dakota their needs. W E fflE R S F lE L D — A request by Greyhound firm? What’s a savings and loan association? But the and wants the law changed in Delaware so it can enter No! This is a free-for-all that endangers our entire Bus Lines to hike intrastate passenger fares 30 . lines between these entities are blurring. the insurance business. This surely spells financial structure. We’ve enjoyed the best financial percent in Connecticut will be heard Friday by Just as an illustration, BankAmerica, the nation’s convenience. system in the world for half a century. We deserve no chairman to quit -------------- ^ the state Department of Transportation. largest bank, now owns Charles Schwab & Co., the But is. your ’’supermarket” representative In­ less in the future. The bus firm, which provides service through­ nation’s largest discount stockbroker. formed in all the services offered? Are the prices of out the state, has filed a petition with the DOT A group of savings banks and savings and loan the services competitive with those offered by ("Sylvia Porter’s New Money Book for the 80s,” the Democratic Party, ” O’Neill ine plans to build a shooting range Bv Mark A. Dupuis Plymouth following controversy basing its second rate increase request this year associations offer stock brokerage services through a companies specializing in each service? Are you 1,328 pages of down-to-earth advice on personal in on rising costs for labor, materials, supplies and subsidiary organization called Invest. Dreyfus, the receiving the services your patronage deserves? money management, is now available through her United Press International McGuigan’s complaint charged over the proposal this week during fuel. large mutual fund organization, has purchased a bank And now the most vital point. While a number of the column. For your copy send $9.95 plus $1 for mailing, that Fitzfferald and Grasso were a special legislative session. Under the proposal, the one-way fare between in New Jersey and now makes car and mortgage nation’s largest banks feel Glass-Steagall is outmoded and handling to "Sylvia Porter’s New Money Book for; HARTFORD - Gov. William “R’a going to be looked at very. Hartford and Stamford would rise from $8.53 to loans.' and have tried to circumvent it, this law has the 80s,” in care of this newspaper, 4400 Johnson O’Neill said today he will not urge S e c t i c u t very closely.” O’Neill said. ’We ll $11.10, while passengers traveling between New prevented abuses that led to the crash of 1929 and the Drive, Fairway, Kan. 66205. Make checks payable to' D em o cratic State C hairm an p ^,„ary campaign of former Pres- take it all under review before any Britain and Bridgeport would face hikes from SO WHAT DOES it mean to you? It cert'ainlymeans bank failures of the early 1930s. Do we want to risk Universal Press Syndicate.) James M. Fitzgerald to resign Carter dollars go forward, $5.10 to $6.65. because of allegations the chair- allegations against The governor said the dispute in The cost of travel between Stamford and New man was Involved in the collection O’Neill said he spoke the Legislature over the shooting Haven would increase from $4.35 to $5.65 and the of illegal campaign contributions, leaders of his election cam- range brought to his attention that rate between New Haven and Hartford would rise Survey on money O’Neill also said he had no paig„ last year and they confirmed the state "tikht be spending too from $4.20 to $5.45. knowledge of any Illegal contribu- ^ contributions much if it went ahead With the $1.7 tions when he was Democratic . million shooting range, Firm manages conversion slate chairman and his elertion Democratic Rep. William Butterly Jr„ D- campatgn last year at no time took chairman himself he had no Watertown, held up f nal approval NEW HAVEN — United Illuminating Co. has Americans in debt but stiii optimistic illegal contributions. knowledge of illegal contributions of O Neill’s $41.9 million road and hired a Boston engineering firm to manage Chief State’s Attorney Austin J. ^g„yy,i^ bridge package In the special construction for the $45 million conversion of its McGuigan has alleged Fitzgerald |® to ’• O N^H said session by an amendment to stop NEW YORK (UPI) — Americans are preoccupied Bridgeport Harbor Station Unit 3 to burn coal. One out of 10 Americans has no savines or Indebtness may be a way of life for Americans since and Thomas Grasso, husband of another topic the governor the shooting range. ’The amend- UI said Tuesday that Stone & Webster with money and one out of 10 has no savings or investments and 44 percent have less than $is,000 put 74 percent have some form of loan obligation. the late Gov. Ella GrasM were y^ j.,„geiy exam- ment eventually was defeated. * Engineering Corp. will provide field supervision, investments, but most men and women are satisfied away, the survey said. Americans are spending more money on necessities involved in collection of illegal clerical support and record keeping, and cost and with their financial status and believe they are better The national average for savings and investments Is such as food, transportation, insurance, medical bills contributions in 1980. r _ _ ’ schedule control of the project. off than their parents, a nationwide survey shows. $34,900, but this figure reflects the 22 percent of and clothing and less on luxuries than a year ago. O’Neill said he didn’t believe ' The Harbor Station unit conversion is sche­ The financial profile of Americans that emerged Americans who have set aside $25,000 or more. duled for completion in January 1985 and is from interviews with 2,553 adults in a study sponsored In an important finding, 28 percent of U.S.