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Perspective THE CAPITAL GOOSE H\ HON \U> !?K\G \N Mabley, Hallett Will "Expound HealthOptions PAGE 5 - PLAINDFAl KH - WEDNESDAY. APRIL It. 1978 What creates jobs, increases U.S. exports, boosts tax revenues and expands technology al' at the same time but is an endangered species? If you said "risk" or "venture" capital, you're right, according to the people who provide such capital to new, small high technology companies. • Edwin V.W. Zschau, chairman of the Capital For­ mation Task force of the A m e r i c a n E l e c t r o n i c association, presented some eye-opening testimony to a senate committee last month about the impact of these capital-hungry companies on the U.S. economy. An A.E.A. survey of 325 of its 900 members, divided those surveyed into three categories, "mature" (more than 20 years old), "teenage" (between 10-20 years old), "developing" (5-10 years) and "start up" (less than 5 years old). The 325 ac­ counted for $45 billion in annual sales. Employment Cirowth The survey showed that in 1976, employment growth for "teenage" companies was about 20-40 times the rate for "mature" firms. "Developing" companies had a rate nearly 55 times higher than "mature" and "start up" companies had the highest differential of all, 115 times the employment growth rate of "mature" companies. In 1976, according to A.E.A., the young companies created an average of eighty-nine new jobs-per-company versus an average of 69 for the mature companies. Of all the charts he unveiled for his senatorial audience, Zschau's most impressive was one showing the effects of each $100 of venture capital invested in the companies surveyed. In j 1976. they generated export I sales of $70. spent $33 on iresearch and development, paid $15 in federal corporate income taxes, >$5 in state and local) and generated $15 of personal federal income tax irevenue through the jobs 'created Altogether, the federal igovernment received a ,whopping $30 in 1976 for every $100 invested in the "start up" companies founded within the previous five years. So why is this seeming golden goose of risk capital an en­ dangered species" Becayse the differential between the rate of tax paid on capital gains and the rate paid on ordinary in­ come has been -^steadily narrowing, as a result of Congress' tax policies The maximum rate on long-term capital gains has gone from 25 percent in 1963 to 49 percent today And. the incentive to invest in higher risk new companies is drying up as the tax rates go up The result is that America's WINN PHILLIPS UIU4IAIU W« of Century 21 Cor* tool iatatc. Inc. or* pl*os*d to pr*«ont you with our wookly ••rioa of Informotlvo Rool Eftato Artldos. Often during buyer and seller negotiations a lot of misun­ derstanding can be avoided. It s wise when listing your home for sale to be sure the real estate salesperson properly notes the items (per­ sonal property) to be included in the sale. There is nothing that disrupts buyer-seller relations more than a dispute over whether or not a water softner, kitchen curtains, yard swing, etc. etc. stay with the home. There is a distinct difference between personal property items and items considered real estate. Our staff of Cen­ tury 21 neighborhood professionals are trained to properly list your home and determine with you what should be included in real estate and what is personal property. If you have a question on real estate phone Winn anytime . 344 1033 or 385-3395 Unri CARE REAL ESTATE INC. Phono tlS-344-1033 3717 W. Elm (Across from Jewel) McHenry, IL. Each office independently owned and operated. need for new capital « the New York Stock Exchange estimates $4.5 trillion will be needed over the next decade to support an annual growth rate of 3.6 percent) is not being met. 'Rigors And Risks' According to Reid Dennis, executive vice-president of the National Venture Capital association, a trade group, " T o d a y , p r o f e s s i o n a l managers will think long and hard before they will leave a high-salaried job in a large firm with an attractive pension program and expose them­ selves and their families to the rigors and risks of starting a new enterprise." In fact, according to Dennis, recent federal tax policies have produced these baleful results: competition is reduced; big companies are getting bigger; small, new companies needing capital are getting it from foreign investors. Foreign investment in high technology U.S. companies is growing at a steady clip. German and Japanese com­ panies have been especially active in making such in­ vestments. The solution? NVCA's Dennis says, "we should return to a system of positive incentives that reward success..." He and his fellow "venture capitalists" are calling for a greater spread between capital gains tax rates and ordinary income rates. This, he says, "could be done with no loss of tax revenues and the color would soon return to the cheeks of the golden goose." Losing Battle Eating all you want of everything you don't like is a sure way to lose weight. "Expanding the Options: Preventive Medicine and Community Health Action" is the theme for the Thursday evening, April 27, annual meeting of the Health Systems agency for Kane, Lake and McHenry counties (HSA- KLM). Chicago Tribune columnist, Jack Mabley, and Northwestern university professor, Stan Hallett, will discuss innovative approaches to solving health problems. The discussion will begin at 8 p.m. in the planning agency's new office at 188 S. Northwest high­ way in Cary. Marjorie Quandt, ad­ ministrator. of the North Chicago Veterans ad­ ministration1 Jiospital, has been nominated fon president of the HSA. Also nominated are Lou Anne Majewski, Algonquin, for vice-president, Esta Pekow, Highland Park, for secretary, and James Eisner, Geneva, for treasurer. Dr. Stan Hallett is lecturer in Ethics and Urban Affairs at Northwestern university's Center for Urban Affairs and vice-president of the South Shore national bank. Hallett's research and teaching interests include inner-city banking, h e a l t h m a i n t e n a n c e organizations and neigh­ borhood-based technology. In addition to writing for the Tribune, Jack Mabley is president of the board of Skokie Valley Community hospital. Mabley is also an executive committee member of the A m e r i c a n H o s p i t a l association's Trustee Advisory board. After the speakers have made their initial presen­ tations, all HSA members and other interested persons will be invited to ask questions and discuss the issues, f This portion of the meeting will begin about 8 p.m., im­ mediately following elections and other annual meeting business. The business meeting will begin promptly at 7 p.m. HSA-KLM recently com­ pleted a five-year Health Systems plan and an annual I f implementa^on plan which contains specific goals and recommended attrSns for improving the health of Kane, Lake and McHenry County residents. Additional information about the HSA or the Annual Meeting agenda may be obtained by calling the HSA-KLM office, 312-639-0061. The McHenry Plaindealer Established 1875 3312 West Elm Street Phone 385-0170 McHenry, Illinois 60050 Published Every Wednesday 4 Friday at McHenry, Illinois Second Class Postage Paid at McHenry, Illinois By McHENRY PUBLISHING COMPANY Subscriber* or* rtqiMilad to provide (mmodioto notico of chango of addmi to Tho McHenry Plolndoolor, M12 W. Elm St., McHonry, III. MOM. A deduction of on* month from tho expiration of a subscription will bo mode where o change of address Is provided through the Post Office Department. Larry E. Lund-Publisher Adele Froehlich-Editor V. N E W S P A P E R / NATIONAL NEWSPAPER MSOCUTION FltKtl 1115 Frtt Prist CI NNA SUSTAINING ,My m MEMBER-1978 SUBSRIPTION RATES Year. 812.00 1 Year. In McHenry and Lake County 317.00 Outside McHenry and Lake County McHenry State Bank Founded in 1906 - STATEMENT OF CONDITIONS CONSOLIDATED REPORT OF CONDITION of McHenry State Bank of McHenry, Illinois 60050 And Foreign and Domestic Subsidiaries, at the close of business Mar. 31, 1978, a _state banking institution organized and operating under the banking laws of the State and a member of the Federal Reserve System. Published in accordance with a call made by the State Banking Authorities and by the Federal Reserve Bank of this District. ASSETS Cash and due from banks 7,029, U.S. Treasury securities 13,563 Obligations of other U.S. Government agencies and corporations 3,253, Obligations of States ond political subdivisions 16,997 Federal Reserve stock and corporate stock 180, Federal funds sold and securities purchased under agreements to resell in domestic offices a. Loans, Total (excluding unearned income) 66,757 b. Less: Reserve for possible loan losses 549 c. Loans, net 66,208 Bank premises, furniture and fixtures, and other assets representing bank premises. 1,053 Other assets 896 TOT At ASSFTS (sum if ite-f » *>"v H) • •.. , . . . . . . . . . 1 0 9 , 1 7 9 Official Publication 000.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 LIABILITIES Demand deposits of individuals, partnerships, and corporations Time and savings deposits of individuals, partnerships, and corporations. Deposits of United States Government Deposits of States and political subdivisions Certified and officers' checks TOTAL DEPOSITS IN DOMESTIC OFFICES a. Total demand deposits b. Total time and savings deposits TOTAL DEPOSITS IN DOMESTIC AND FOREIGN OFFICES Federal funds purchased and securities sold under agreements to repurchase in domestic offices Other liabilities TOTAL LIABILITIES (excluding subordinated notes and debentures) 19,441 73,426 ... 336 .3,851 ... 854 97.908 21,910 . 75,998 97,908 000.00 000.00 000.00 000.00 000.00 000.00 ,000.00 000.00 ,000.00 .2,517,000.00 . .1,372,000.00 101,797,000.00 EQUITY CAPITAL Common stock....a. No. shares authoriied 160,000 b. No. shares outstanding 160,000 (par value) 1.600,000.00 Surplus.. 3,900,000.00 Undivided profits 1,819,000.00 Reserve for contingencies and other capital reserves 63,000.00 TOTAL EQUITY CAPITAL (sum of items 32 thru 36) 7,382,000.00 TOTAL LIABILITIES AND EQUITY CAPITAL (sum of items 30, 31, and 37) 109,179,000.00 MEMORANDA Average for 30 calendar days ending with report date: a. Cash and due from banks (corresponds to item 1 above) 6,583 000.00 b. Federal funds sold and securities purchased under agreements to resell (corresponds to item 8 above) 48,000.00 c. Total loans (corresponds to item 9a above) 66,748,000.00 d. Time deposits of $100,000 or more in domestic offices (corresponds to Memoranda items 3a plus 3b below) 1,100,000.00 e. Total deposits in domestic and foreign offices (corresponds to item 24 above). . . 96,489,000.00 f. Federal funds purchased and securities sold under agreements to repurchase (corresponds to item 25 above) 2,961.000.00 Standby letters of credit outstanding as of report date 2,353,000.00 Time deposits of $100,000 or more in domestic offices outstanding as of report date: a. Time certificates of deposit in demonimations of $100,000 or more... .• 1,000,000.00 b. Other time deposits in amounts of $100,000 or more 158,000.00 I, Edwin J. Becker, Jr. Vice Pres. A Cashier, of the above-named bank do hereby declare that this report of condition is true to the best of my knowledge and belief. Edwin J. Becker, Jr. We, the undersigned directors, attest the correctness of this report of condition and declare that it has been examined by us and to the best of our knowledge and belief is true and correct. Ormel J. Prust, Thomas F. Bolger , Lenora E. Frisby, Directors State of Illinois County of McHenry ss: Sworn to and subscribed before me this 10th day of April, 1978 Pomelo A. Spengel, Notary Public DIRECTORS ESTHER CAREY WILLIAM A. NYE, M.D. ROBERT L. WEBER THOMAS F. BOLGER ELMER P. ADAMS JOHN L. COWLIN LENORA E. FRISBY ORMEL J. PRUST FRANCIS M. SCHMITT WILLIAM COWLIN OFFICERS WILLIAM A. NYE, M.D., Chairman of the Board ESTHER CAREY, Vice Chairman ROBERT L. WEBER, Chairman of Executive Committee THOMAS F. BOLGER, President ORMEL J. PRUST, Executive Vice-President LENORA E. FRISBY. Vice-President and Trust Officer ROBERT B. SCHNEIDER, Vice-President and Trust Officer EDWIN J. BECKER, JR., Vice President and Cashier JAMES E. LARKIN, Vice-President RONALD J. VACULA, Vice-President RICHARD A. LANE, Vice-President ROBERT POWERS, Assistant Vice-President DONALD H. MEYER. Assistant Vice-President JOHN MURPHY. Assistant Vice-President LILLIAN CAIRNS. Assistant Cashier DONALD H. WATTLES. Assistant Cashier KRED KUPSTIS. Assistant Cashier PETER J. KELLER, Auditor CAROL SCHOLLE. Assistant Auditor YVONNE RYDEN, Credit Officer PHILIP OEFFLING, Assistant Loan Officer spurgeons Spring Things for the Fuller Figure • \ S Soft Silhouettes, Now in Half Sizes! *15 V. m Your fashion is showing! And you look lovely in a soft and sunny polyester print. New looks with pretty details like shirred yokes, button shoul­ ders, capelet sleeves. A spir­ ited collection in sizes 141/2 to 24V2. Now! Half size pant sets, skirt sets and long dresses priced from $12 to $25 Day­ time cottons $9 and $10 x I Free Layaway I v poo The Look! Tops and Jeans Right Up-to-the-Minute Tops Jeans 35°_$8 1150. $14 The larger size keeps on the casual side! Knit fashion tops in solids and stripes. Pick your sizes up to 44. Basic tops come in sizes up to 46. Hurry! Cotton denim pre-washed jeans with different pocket treat­ ments, elastic waist backs, fly fronts. Your choice in sizes 32 to 38. "Snip-It" Fashions Adjust to Any Length! Slip Petticoat 450 Undercover agents of cling-free DuPont Antron® III nylon! Tiers of em­ broidery artkehain stitched to snip and pull for individual fit. Pretty in bright white. Slip comes in sizes 46 thru 52. Petticoat in sizes X-XX-XXX. Regular sizes $6 and w Sleep in Loungeweight Nylon! Shift $ 8 Long Gown $< A dream of petal-soft nylon with shirred yoke or ecru lace. Body of soft ivory or luscious bright melon. Sizes X and XX. Also in sizes S-M-L. Shift $7, Gown $8 if A i,\. Lovable "Full 'n Pretty" Bras for Comfort, Beauty #849 Full fashion seam-free, gently fiberfilled. White. B36-42, C38- 42 . .$4. D36-44. .4.50 #764 Full fashion lace in white. C34- 46 . .$4. D36-48 . .4.50 Stock UP! "Big Mamma" Fine-fit Nylon Pantyhose ^99 3 for 5.60 The ample figure needs a pantyhose to fit well, comfortably. These with a cotton crotch have a 30 day wear guarantee. Beauty in beigetone and tantone. ML-L and XL. spurgeons 4400 W. RTE. 120 McHENRY 385-4100 Daily 9 to 9, Sat. 9 to 6 Sunday 10 to 5 395-4520 I BF ALJtY SAION MON »-» TOM *-» WtO THURS »•» F«l f-» SAT »•»