University Daily Kansan / Tuesday, February 14, 1989
Campus/Area
3
Lawrence banks oppose S&L plan
by Steven Wolcott
Kansan staff writer
Local bank officials, along with savings and loan officials, expressed mixed feelings about the proposed legislation that can for the savings and loan industry.
"We are glad they finally have some concrete proposals to deal with," said Richard Holmister, an associate director of Savings and Loan Association 1023 Iowa St. "Something should have been stoned to two three years ago."
Jean Milstead, senior vice president of Douglas County Bank, Ninth and Kentucky streets, said that most bankers were not in favor of the plan because of the proposed increase in FDIC insurance premiums. The plan proposes an increase of no more than 7 cents for each $100 of insurance protection. The FDIC insures bank deposits up to $100,000.
"I just don't feel that we should have to护 for their mistakes." Milstead said. "They should go after the people that did the illegal
The president's proposal also includes $50 million for the Justice Department to investigate wrongdoing in the thrift industry.
None of the officials could give figures as to what the bailout plan would cost their institutions.
"In the end, the increased costs will be passed on to the consumer in some way, by increased fees or lower interest rates." Milstead said.
Terry Sutcliffe, president of Lawrence National Bank, 647 Massachusetts St., said that the plan had some good points but that he wasn't pleased with the proposed increase in FDIC insurance premiums.
"The commercial banking system is being asked to support the savings and loan problem." Suillcite said. "One side of me says that they created the problem, and they should have to solve it."
Despite a record $8.1 billion outflow of money from savings and loan associations in December, local office said the industry as a whole was so weak.
Holzmeister said that about 10 percent of the nation's S&Ls were insolvent.
"It's tough getting up in the morning and reading all the bad press," he said.
Holzmeister said that none of Capitol Federal's customers had expressed concern about the safety of their money.
"Most of the comments we've heard from customers is that it's too bad the healthy SALs have to bail out mismanaged ones." Holzmeister said.
An ABC News poll of 509 adults, conducted Feb. 8-9 and released Sunday, showed that while most of
Regulation part of Bush's answer
These are the important points of
the Bush administration's rescue
plan for the savings and loan industry,
and will must be approved by
 Congress.
The sale of an additional $20 billion in government bonds to go along with a $4 billion bond sale commitment by the Reagan administration. The money would pay the costs of closing or selling the failed thrifts. Both the taxpayers and the savings industry would pay interest on the bonds. The government would come from higher premiums for federal deposit insurance.
The merging of the administrative functions of the FSLIC and the FDIC, but the money would be kept in separate funds.
- Changes in regulations, including rules to reduce the kind of risky investments that caused the crisis, and the role for the Treasury Department.
■ The placing of insolvent S&Ls under the control of the newly combined agency.
■ Increasing the capitalization requirements for S&L owners to the same level as banks. By June 1, 1991, the requirement would be 40 percent.
- In addition to more money to the Justice Department for investigations, civil penalties against financial institutions would be raised to $1 million a day, and criminal penalties for executives convicted of wrongdoing would go as high as 20 years in prison.
the adults had heard of the S&L crisis, few planned to withdraw their money.
The poll found that 4 percent were aware of the crisis, and 49 percent of those surveyed had a savings account at a savings and loan.
Of that 49 percent, 6 percent said they planned to withdraw their money from a savings and loan because of the crisis.
Ralph Lewis, the president of Pioneer Savings, 2301 St. Indiana, said, "The healthy and well-run segments of the industry have done so much for us. There has been forgotten in all the wild stories about out-of-control lending."
Jack Gaumnitz, professor of business, said that for people to move their money out of an $&L on the basis of risk was unfounded.
"The federal government has committed itself to backing the savings and loan industry 100 percent." Gaumitz said.
Hospital visitation Families have place to stay
by Jennifer Corser Kansan staff writer
KANSAS CITY, Kan. — Dorothy Williams, 18 months old, lies in bed, blankets pulled up to her neck. She looks exhausted from a long day of treatments and examinations from doctors.
The Ronald McDonald House serves as a home away from home for families of seriously ill children who are being treated at the University of Kansas Medical Center.
Dorothy has leukemia. But because she can stay at the Ronald McDonald House, Dorothy and her mother are together in a home-away-from-home while waiting for more treatments.
The Ronald McDonald House, next to the University of Kansas Medical Center, provides room and board for families of children in the hospital, said Charlene Bickeson, assistant manager of the house. For many, staying in the house is an alternative to a motel because of the family atmosphere and cheaper rates.
The house can accommodate 11 families, who are charged $7.50 a night. Bickeson said. Five families are on the waiting list.
However, if a family cannot afford to pay, the charge is dropped. Through donations, the house also supplies food.
"We have families come here that absolutely cannot pay for food. Bickeson said, "Some do insurance; some do not have cars."
The house, which is one of two in the Kansas City area, operates on donations, she said. Volunteers help out and fill in for the live-in care workers that takes drugs off. Many charities donate food, toys and other supplies.
Donations come from various places, including wills and memorials. The house also receives the coins from the fountains at Oak Park Mall in Overland Park.
"This is why the Ronald McDonald House was started, for cancer patients," Bickeson said. "And we're still honoring that."
Families can stay at the house if they live at least 50 miles away from the Med Center and the child is in critical condition, usually cancer, which takes priority.
The house provides many of the comforts of home. The large kitchen has fully-stocked shiles. The dining area includes books for reference, and each
bedroom has an adjacent restroom.
Guests are asked to treat the house as if it were their home, Bickeson said. They clean their rooms and cook for themselves.
And, much like a home, the guests support each other, said Richard Ryan, Linden resident.
"You know everyone here is in the same situation you are in," he said.
When parents and families first arrive, they are depressed and feel that the worst thing possible happened to them. Bieckenau said, "You begin talking with other parents and families with similar problems.
Ryan's 8-year-old daughter last week had her second open-heart surgery at the Med Center. This time, Ryan and his wife are staying at the house instead of sleeping in the waiting room.
"This house is a peer group for parents," Bickeson said. "They become very close."
Parents often return after their child has been released from the hospital to check on the other children, she said.
Children also are not forgotten by those still at the house. A large bulletin board in the kitchen is full of pictures of smiling children.
Overland Park rezones center's land
oy Thom Clark
Kansan staff writer
The Overland Park City Commission voted unanimously last night to rezone nine acres that border the northern edge of the 35-acre property reserved for the new Regents Center at 127th Street and Quivira Road.
The council approved the measure after the recommendation of the planning commission, which met earlier in the afternoon, to change formation of the property from multifamily or residential to commercial.
Larry Winn III, Overland Park lawyer, said Clay Blair, a KU alumna who worked at the arsenal plot to the Kansas University Endowment Association. Nine of the
acres will be for commercial use; 35 acres will be reserved for the actual Regents Center; and 114 acres will provide multifamily dwelling or apartment development.
Winn, Blair's attorney, said the nine-acre commercial plot would be used for day-care facilities, a bookstore and possible food stores.
Alie Speer, councillman, said the nine acres would be beneficial and would fulfill a vital need for the Regents who would use the Regents Center.
Speer said the commercial development would allow the students at the Regents Center to go to class, drop off children and shop in one
Originally the commercial location
Speer said she supported the measure because the concession was made to shift the commercial local location of the landlord, a particular plot was tied to the center.
was to be located closer to the northwest corner of 127th Street and Antioch Road, before community leaders felt likely to be moved about 800 feet north.
Some community members appeared at the meeting to voice concern.
Jay Thomas, Overland Park park,
asked the commission if they
would have passed the measure if the
president had made a statement
included in Blair's package donation.
Mary Birch, Overland Park resident, said the expansion of the satellite campus was positive and beneficial to the community.
Max Lucas, dean of architecture and urban design, and chairman of the center's building committee, said that the plans for the Regents Center would include computer rooms, a library and about 20 classrooms of various sizes.
The new teaching facility will replace the Regents Center at 9900 Mission Road. Formerly an elementary school, it was considered too small and continuing to serve the increasing demand for high-level courses.
The Board of Regents approved the $6 million satellite campus on Dec. 15. The Legislature has been asked to finance $1 million of the cost.
Flying Jayhawks see the world
Alumni Association travel group plans trips to 17 destinations Flying Jayhawks see the world
by Scott Achelpohl Kansan staff writer
Flying Jayhawks will be landing in countries all over the world in 1989.
Flying Jayhawks, a program started by the University of Kansas Alumni Association, gives KU alumni an opportunity to travel to destinations worldwide and in the United States.
Donna Neuner, director of membership services for the Alumni Association, said about 5,000 association members have visited destinations since the program
began in 1969.
"The Flying Jayhawks program is one of many that helps strengthen the bonds between alumni and the University." Neuer said. "Alumna act as kind of informal ambassadors for college students, especially in world. Often they will meet people on their trips who have gone to the University or who have heard of it."
began in 1978.
She said 17 trips would be offered in 1989, including trips to the Hawaiian islands, the Swiss Alps, Portugal and Spain, Kenya, Egypt, the French Riviera and the Soviet Union.
The trips are paid for by the association members, she said, with transportation and living accommodations available at group discount. Starting dates for this year's trips are spaced roughly three weeks apart.
The program is offered to members and associate members of the association and their families. Most trips will last from one to two weeks.
Neuner said she had been on trips to Moscow; Hong Kong; Beijing; and Copenhagen. Denmark.
"The response to the trips has been positive in the past and remains so today." Neuner said.
'T.
The Flying Jayhawks program is one of many that helps strengthen the bonds between alumni and the University. Alumni act as kind of informal ambassadors for the University to places all over the world. Often they will meet people on their trips who have gone to the University or who have heard of it.'
Donna Neuner
director of membership services. Alumni Association
by the University, Tacha said. She was part of a trip to Kenya from Jan. 24 to Feb.7.
and co-owner of Owens Flower Shop. 846 Indiana St., said she and her husband heard about the flying Jayhawks through mail from the association. She and her husband are longtime members of the association.
Deanele Tacha, president of the Alumni Association and a 1968 KU graduate, said the trips were con-
"We went to China through the program in 1986." Owens said. "The trip cost my husband and me around $4,000 a person.
"I think the association is used to dealing with alumni who can afford trips such as this," she said.
environs RECYCLING EXPERIMENT IN WESCOE HALL
tracted by the association through local travel agencies. The expense of the trips is not incurred in any way
*Look for recycling bins next to trash cans*
*Each of us in the US discards nearly 2000 lbs. of solid waste from home each year.
Only 10% is recycled.
*The waste stream is composed of 41%
paper, 21% food, 12% glass, 10% iron and
5% plastic.
ALUMINUM CANS • NEWSPAPERS