The Cincinnati Enquirer from Cincinnati, Ohio • Page 1

Ira Joe Fisher Accepts Offer Of MY Station July Is Jazz Month In Cincinnati Tempo, Page D-6 Tempo, Page D-1 2 MAYNARD FERGUSON THE CINCINNATI ENQUIRER FINAL EDITIONNEWSSTAND PRICE 25t FRIDAY, JULY 1, 1983 A GANNETT NEWSPAPER Lindner Has Made Offer To Buy Reds Sports, Page B-1 pi SEC Gives Baldwin Stock Market Breather BY GREGG FIELDS Enquirer Reporter Trading In Baldwin-United Corp. stock has been suspended for 10 days by the Securities and Exchange Commission (SEC) at the Cincinnati company's request. The SEC granted the suspension Thursday after rumors of impending bankruptcy sent Baldwin's stock plummeting In price this week. At Its close Wednesday, Baldwin stock was selling at $8,625 a share, down from more than $13 within the last three weeks and from a high of $50,625 last fall. The SEC suspension Includes securities of MGIC Investment Corp.

and D.H. Baldwin Co. MEANWHILE, THE company is believed to be meeting with some of Its creditors this week In an effort to secure across-the-board agreement on a debt "We are working together with our creditors toward a standstill agreement," the company reiterated Thursday in announcing it had requested the SEC to suspend trading In its stock. It added that "once this agreement Is obtained and Information has been made available relating to our first quarter financial results, there will be a sound basis for restoring an orderly market in our publicly-traded securities." A SOURCE close to the company said that as many as one million Baldwin shares out of a total of 20 million shares have changed hands In recent days. The large volume, analysts note, apparently has been fueled by recurring rumors that Baldwin will file for bankruptcy on Its own, before one or more of Its creditors forces the firm Into It.

The company has consistently dented It plans to do so. Financial analysts note, however, that extension plan proposed by the company last month. The arrangement between Baldwin and Its major creditors, expected to take effect as soon as today, would leave smaller creditors and Baldwin Investors with even less security than they have now. This has prompted some analysts to speculate that a smaller creditor may upset Baldwin's carefully-laid plans by demanding payments the company Is unable to make, thus forcing the corporation into bankruptcy. Baldwin owes approximately $900 million, which It is unable to pay.

More than $600 million of that amount comes due July 15. The company has not yet computed Its financial results for the first quarter, but previously It has said It expects to report a loss of more than $100 million for the January-March period. point, he said, the company Is protected from creditors as It attempts to work out a financial restructuring plan to pay Its debts. "During this time you may sell off divisions, and even return to profitability," Swartz said. Once a plan Is devised, the creditors must approve It, Swartz noted.

If the creditors can't reach agreement, a company may go Into liquidation proceedings under Chapter 11 as well. Swartz said that If a company Is liquidated the holders of secured debts those backed by company assets are paid first. Unsecured debts are paid off next, then subordinated debts. "By law, stockholders are the last In line," he said. The process, he added, Isn't quick or easy.

"To complete It In one year Is uncommon," he said. "Two years would be more likely." If some of Its creditors press for payment, Baldwin might not have any choice but to file bankruptcy for Its own protection. AMONG THE leading holders of Baldwin debentures are the First National Bank of Chicago and Cincinnati attorney Irving Harris, trustee for holders of about $30 million In company debentures. Neither group could be reached for comment Thursday. Bob Swartz, a bankruptcy expert with the accounting firm of Main Hurdman, said bankruptcy for Baldwin if It happenscould take two forms.

One form of bankruptcy Is Chapter 7, which Is a basic liquidation of assets. Usually, he said, this Is forced upon a firm by Us creditors. But Swartz added that this usually Isn't done because "A company Is worth more as a going concern." The other form of bankruptcy proceeding Is a Chapter 11, In which, Swartz said, all liabilities get frozen. At that Garden Hilltop's Owners Owe U.S. At Least $500,000 Cut In Tax To Fatten Paychecks Extra Cash Likely To Boost Recovery FROM ENQUIRER WIRES WASHINGTON -The third and last phase of the 1981 Reagan tax cut takes effect this month.

The increases In take-home pay from this final 10 Installment, effective today, the three-year, 25 tax cut start at as little as 10 cents a week. But In the aggregate they are expected to be a sparkplug for consumer spending and the economic recovery in the second half of this year. For single taxpayers, the Increase In weekly take-home pay runs from 10 cents to a maximum of $16.20. For married taxpayers, the weekly Increase starts at 20 cents and tops out at $21.60. But for most families and single people, the extra sum will range from $2 to $7 a week.

THE FIRST installment of the tax cut was 5 In October, 1981, followed by 10 last July and the final 10 today. The size of the reduction varies among Income groups; the 10 figure is an average applying to the entire tax system. The Increase in take-home pay will not be available to Individuals earning $5,000 a year or less, or couples with Incomes of $10,000 or less. Those groups already have received almost the entire benefit of the 25 reduction through bigger-than-average cuts during the 1981 and 1982 stages of the tax program. For Individuals making more than $36,000 a year and couples with Income above $50,000, the reduction will be less than 10.

People In those Income categories frequently have Income not subject to withholding, such as Interest from savings accounts and bonds or dividends from securities. Knowing that such taxpayers are likely to owe more money than Is withheld from their paychecks, the IRS Is giving them a smaller percentage cut In withholding. (See TAX, back of this section) SINGLE I -v. I $350...2...49.60...4.20 I $400 $500...2...89.30...10.40 I $600...2...120.60...14.00 $700...2... 1 55.50...

1 6.10 $900...2...227.60...16.20 according to Allen Herman of the Cincinnati HUD office. Section owns 15 units at the problem-plagued apartment complex and Section A owns 202. The U.S. Attorney's office has been In U.8. District Court since 1981 with foreclosure proceedings against REICO Section and HUD has recommended that similar action be taken against Section which Herman said Is delinquent In excess of $250,000 on Its mortgage.

In a court affidavit, HUD official Donald A. Myers said "each month that goes by the delinquency Increases and (the owners) have the use of money to Invest or otherwise use." In the meantime, Myers said, the federal government "Is required to borrow money at Treasury rates to support the Insurance fund." REICO A and are partnerships, consisting of a general partner and a number of individuals who are limited partners. Court records show the general partner In Sections A and Is Chelsea Ventures Inc. and the property manager Is Chelsea Moore. But Chelsea Moore, In a prepared statement, said, Chelsea Ventures withdrew from the partnership Feb.

13 because It could (See GARDEN, bark of this section) BY HOWARD WILKINSON Enquirer Reporter The present owners of the Garden Hilltop Apartments In Wlnton Terrace could lose all seven buildings through foreclosure because they are at least $500,000 In debt to the federal government. Just who owes the U.S. Depart-ment of Housing and Urban Development (HUD) may be in dispute because Chelsea Ventures the company that has been the general partner in the company that owns Garden Hilltop, claims It has withdrawn from the partnership, citing lack of financial support from Its limited partners. The owners of the buildings, Real Estate Investment Co. (REICO) Section A and Section have not made payments on their 40-year mortgage since 1979, according to court documents.

At the same time, however, the owners have been receiving direct rent subsidy payments from HUD up to $368,580 a year and rental Income from tenants. THE MONTHLY debt of the owners to HUD of principal, Interest, tax escrow and other expenses creates a total bill of more than $650,000, according to court documents. Reico Sections A and are two separate business partnerships, MARRIED 1 00 1 300...3...27.30...2.60 4350...4...32.50...3.20 $400...0...55.90...6.40 $450...0...66.90...7.40 $451.2...58.40...6.60 I $450...5...46.20...5.00 $500...4...61.00...6.80 $500...6...52.50...6.10 $600...6...75.60...8.00 800...4... 1 43.90... 1 6.30 $1000...6...198.30...19.80 Legislators Near Budget Agreement 2 'iff- BY JACKIE JADRNAK Index Brown's Lung Problems Make Condition Critical Six Sections, 143rd Year, No.

83 AROUND TOWN DO BOGGLE D-15 BRIDGE D-15 BUSINESS B-9-12 CLASSIFIED E-9-12, F-1-6 COLUMNISTS A-14-15 COMICS D-14 CROSSWORD D-15 PEAR ABBY DJ DEATHS D-15 EDITORIALS A-14 HEALTH D-2 HOROSCOPE D-14 HORSE RACING BJ JUMBLE D-14 METRO NEWS E-l-7 ROSENTHAL D-l SPORTS B-1-8 TEMPO D-l-16 TV-RADIO D-13 WHEELER B-T WORD GAME D-14 blennlum, while Democrats have praised It for the Individual tax relief and stability it offers to state government. Overall, the budget Includes about $678 million In Individual tax relief, $618 million In new business taxes In permanent law (some of them already had been temporarily Increased) and about a $1 billion Increase In funds for primary and secondary education. THE BILL also creates new seats on the Ohio Building thorlty and the Industrial Commission of Ohio, giving Gov. Richard Celeste the chance to appoint Democratic members to give him control over those bodies. With the 90 permanent increase In personal Income taxes approved by the legislature In February, this budget appears to be the first In the past couple of recesslon-rldden years that should have enough money to avoid deficits which forced spend-lngcuts In the past.

Businesses got a break with a 10-year, phased-ln reduction on tangible personal property taxes from 35 to 25. The top rate of corporate franchise taxes, though, was raised from 9.2 to 9.7 and the state's 5 sales tax was extended to computer and data processing services. Critics of that final tax complain that It will send high-technology companies out of Ohio. Gannett News Service COLUMBUS-Wlth the clock ticking toward their midnight deadline, Ohio legislators were preparing late Thursday night to approve a $25 billion, two-year state budget before the end of the fiscal year. The package Includes a compromise on personal Income-tax relief that lets the taxpayer decide for himself which route to take.

Faced with the decision of raising personal Income tax deductions from $650 to $1,000 or allowing a $20 tax credit for each dependent claimed, the House-Senate conference committee decided to allow either option. The tax credit Is expected to be a little more favorable for taxpayers who make less than $40,000, but each person will be able to choose which to take after he works out his taxes and determines which helps him the most. ONE OTHER budget hangup was resolved when trie conference committee decided to accept the Senate version of taxes levied on financial Institutions. It calls for a 15 mill tax on net worth, as well as additional mlllage for the next two years. Republicans have attacked the package for Its Increases In business taxes and the almost 28 growth In spending over the past DBaaaaanHKM BY GARY COHN and MICHAEL YORK Knight New Service LEXINGTON Despite public reports that his condition Is "stable," Kentucky Gov.

John Y. Brown Jr. has been In critical condition since he developed lung problems during his recovery from heart surgery last weekend, medical sources familiar with the case said Thursday. And his doctors now believe it will be at least two days and perhaps substantially longer before they can remove him from the artificial respirator, the sources said. The sources added that Brown experienced several wide swings In his blood pressure and heart rate soon after developing breathing problems Tuesday, although his blood pressure has been under control since Wednesday night.

He remained under heavy sedation and an Intentionally drug-induced paralysis. Meanwhile, doctors at the University of Kentucky hospital here are continuing to search for the cause of a serious lung condition Brown developed after the operation. The disorder, adult respiratory distress syndrome (ARDS), Is a buildup of fluid In the lungs that results in an Inability to provide oxygen to the blood. In a terse statement Thursday, the hospital said the governor remained In stable condition: "His vital signs and cardiac status are good. His lung condition Is Improved but progress is slow.

"His chest X-rays show some clearing of the lung fields and his lung function continues to Improve," the statement said. Brown's physician, Dr. Edward Todd, was not available for questions. Three medical sources familiar with the case said that the governor's lung condition was slightly Improved Thursday. But they 'Cautioned that progress has been slow and that the governor's condition is critical.

"Calling him critical but stable would be conservative," one source said. Brown, 49, underwent triple heart-bypass surgery Saturday. He developed ARD8 Tuesday morning. That afternoon, the governor began struggling wlth his artificial respirator, virtually stopped breathing, turned blue and suffered a partly collapsed right lung, Todd told reporters Wednesday. According to sources familiar with the case, Brown's blood pressure and heart rate exhibited wide swings earlier this week, the result of his reaction to the treatment.

The doctors are concerned that any prolonged episode of high pressure could rupture the delicate, unhealed bypass grafts In the heart, the sources said. If the grafts failed, the damage would be similar to a major heart attack, they said. Brown's prognosis depends on his lungs Improving and his other vital organs staying In good condition, the sources said. SPORTS RESULTS Telephone 369-1005 or 349-100 Mostly sunny and humid today, with the high'about 92. Partly cloudy tonight, with the low about 70.

Southwest winds 10-15 mph. Mostly sunny Saturday, with a high about 95. Chance of rain, 10 today and tonight. Weather map and details on Page A-2..