10—The Daily Collegian Friday, April 6, 1984
'rime rate up to 12 percent, highest level in a year
By JAMES F. PELTZ
Associated Press Writer
Major banks nationwide raised their prime
lending rates by one-half percentage point to
12 percent yesterday, the highest level in
more than a year.
The increase was the second in the key
borrowing rate in three weeks. But some
economists said they did not expect the rate to
climb again in the next few weeks, and for
interest rates overall to stabilize.
While the boost had been anticipated on
Wall Street, stock prices nonetheless fell to
their lowest level in nearly a year, with losers
outpacing gainers by more than 3 to 1 on the
New York Stock Exchange.
The Dow Jones average of 30 industrials
tumbled 18.01 points to 1,130.55, its lowest
close since it stood at 1,124.71 last April 8.
Space,shuttle Challenger:
Astronauts all
By HARRY F. ROSENTHAL
Associated Press Writer
CAPE CANAVERAL, Fla. The
shuttle Challenger was set yesterday
for its highest and most ambitious
space voyage yet, a mission to stalk,
capture and restore an ailing satellite
to health.
One of the five astronauts had a
close call when his training jet hit a
flock of birds as he was preparing to
take off on a practice flight. One
engine failed and the flight was
aborted, but he escaped injury.
At an afternoon, weather briefing,
the crew was told that conditions
should be "super" for today's 8:58
a.m. EST launch from Kennedy
Space Center: scattered clouds at 25,-
000 feet, light wind, and visibility of
more than seven miles.
But Maj. Donald Green, an Air
Force weather officer for the shuttle,
cautioned that there was some con
cern about 70 mph winds at 15,000
feet. NASA said if the winds per
sisted, NASA would send up a weath
er bAlloon 45 minutes before launch to
make a 'final decision on whether to
go ahead.
The countdown for the 11th shuttle
flight was marred only by a failed
electronics unit used for relaying
information between shuttle comput
ers and its various systems. Techni
cians removed the "black box" and
replaced it with a unit from Discov
ery a new shuttle awaiting its first
flight in June. Workers hoped to have
the replacement completed in time
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First National Bank of Chicago, the nation's
eighth-largest commercial bank by deposits,
led the latest round of prime -rate increases. It
quickly was followed by second-ranked Citi
bank and No. 3 Chase Manhattan Bank in New
York, and by industry leader Bank of Ameri
ca in San Francisco.
The move lifted the banks' prime, or base,
lending charge to its - highest level since
October 1982, when it also was 12 percent.
'the big banks had just raised their prime
rates to 11.5 percent from 11 percent on
March 19. But credit analysts said the latest
increase was warranted given economic con
ditions.
The prime rate is a lagging indicator, in
that it usually follows changes in other inter
est rates. Since rates in general have contin
ued to edge higher in recent weeks, they
ready for launch today after 'close call'
for fueling to begin on schedule early satellite, an elaborate observatory to
Friday. study the sun, was placed in orbit on
Should any problems force the Feb. 14, 1980. But after 10 months it
launch to be postponed, NASA said it lost its ability to point with fine preci
would be rescheduled for Sunday sion toward the sun. As a result, only
morning. three of seven instruments are work-
Challenger is scheduled to land on ing.
the Kennedy runway after six days Nelson and van Hoften nick
and 92 turns around Earth. It will named "Ox" will unplug the satel
orbit at 300 miles altitude, the highest lite's attitude control system and plug
ever for a shuttle, to snare the satel- in another one during their first six
lite and to release it later. hour excursion outside the cargo bay.
Commander Robert L. Crippen, a Two days later, they'll go into the
46-year-old Navy captain, will be satellite's main electronics box to
making his third shuttle flight. It's make another repair. If the fixes
the first trip for the other four crew- work, Solar Max will be returned to
men: pilot Francis R. Scobee, 44; and orbit. Otherwise the shuttle will bring
mission specialists Terry J. Hart, 37; it to Earth for repair.
.George D. Nelson, 33, and James D. The satellite cost $77 million, but its
van Hoften, 39. replacement cost today would be $235
Nelson, a doctor of astronomy who million. Dr. Frank Cepollina, man
is balled "Pinky" by his colleagues, • ager of the project, said the repair
will don a jet pack on Sunday and flit cost will be $45-$55 million.
about 200 feet to the satellite. He will Also aboard Challenger for the
attach himself to the slowly spinning flight are 3,300 honeybees whose abil
satellite and use his nitrogen jets to ity to build honeycombs in weightles
stabilize it so the shuttle's robot crane sness will be evaluated.
can latch onto it and haul it into the Hart and Van Hoften had
cargo bay for repair. . planned'to do some proficiency flying
The crane also. will be used Satur- in T-38 jet trainers, but the exercises
day to deploy an 11-ton research ' were, scrubbed when one of Van Hof
satellite carrying 57, science, technol- ten's engines quit on takeoff.
ogy and materials experiments, in- NASA spokesman Steve Nesbitt
eluding one that consists of 13 million said the plane ran into a flock of birds
tomato seeds. After 10 months in and one apparently was sucked into
space, another shuttle crew is to the engine, damaging it.
retrieve the satellite next February Van Hoften was not hurt, but NASA
and return it to Earth for studies of spokesman Steve Nesbitt said that
how the long exposure in space af- had the flameout occurred seconds
fected the materials. - later, there could have been a danger-
The 5,000-pound Solar Maximum ous situation.
raised the banks' cost of obtaining funds for
lending.
For example, the federal funds rate, the
interest on overnight loans between banks,
has climbed to nearly 11 percent from 10
percent on March 19 and 9.5 percent at the
start of the year.
Also, as robust economic growth has contin
ued, so too has demand for loans. That rising
demand, together with the huge credit de
mands of the federal government, is putting
further upward pressure on interest rates.
"Loan demand has definitely picked up in
the last six weeks; as the'economy expands,
,business develops a need for external financ
ing," said Elliott Platt, an economist at the
investment firm Donaldson, Lufkin & Jen
rette Securities Corp
_. in New York.
At the same time, the Federal Reserve has
tried to restrict the availability of credit to
prevent the economy from overheating and
fueling inflation. But the central bank's
stance also has prevented a substantial de
cline in interest rates.
However, some economists now expect the
economy's growth to slow in the second
quarter, and for the Federal Reserve to avoid
a further tightening of credit.
As a result, "I would expect stability in
short-term interest rates in the next few
weeks," said Ted Gibson, senior economist at
Crocker National Bank in San Francisco,
which was one of the banks raising its prime
rate. •
The latest prime-rate increase came one
day after Treasury Secretary Donald T. Re
gan predicted interest rates would soon reach
a peak and then decline slightly by the end of
the year.
In an interview with The Associated Press,
Regan said he was "very concerned" about
the level of interest rates, but said that if the
prime rate did rise to 12 percent, "it will slow
the economy but it won't kill it."
The prime rate is the base upon which
banks compue interest charges on short-term
business loans. Large; creditworthy borrow
ers frequently borrow at below the prime rate
while smaller businesses typically pay one or
two percentage points above the prime.
While the cost of an individual's loan might
not be tied directly to the prime rate, the
prime rate still is an indicator of how lending
charges generally are moving.
The prime rate, which reached a record
high 21.5 percent in December 1980, gradually
worked its way down to 12 percent in October
1982 and then to 10.5 percent in February 1983..
It then climbed to 11 percent last August.
..,• , • , •
Democrats lead GOP h •
T e Lindbergh Kianapping is
•
i
t n voter registration . / s widow
Federal judge dismisses suit brought by Hauptmann's
By The Associated Press mated 8.3 million people over the By PAMELA BROWNSTEIN But the judge left open a few legal issues on In court papers, Mrs. Hauptmann and Bryan
age of 20, according to 1983 fig- Associated Press Writer which he heard arguments last December. Those contended that the lawsuit was timely because
HARRISBURG Democrats ures. were the claims he dismissed yesterday,, includ- she did not learn of additional information that
NEWARK, N.J. A federal judge yesterday ing the widow's claims for $lOO million in dam- would back a lawsuit until 1981 when New Jersey
have widened their registration In Philadelphia, the state's larg-
lead over Republicans to 945,927 est Democratic area, the party dismissed the last of the claims in a suit brought ages from the state. state police files on the case were opened to the
for Tuesday's primary, a 39 per- boosted registrations from 895,720 by the 85-year-old widow •of Bruno Richard He dismissed the claims with prejudice, mean- public.
cent increase since the November to 909,458. Democrats lost ground, Hauptmann, convicted and executed for the 1932 ' ing they cannot be filed again. But Lacey disagreed.
1982 election,' according to state however, in a number of counties. kidnapping and murder of the infant son of famed Robert Bryan of San Francisco, Mrs. Haupt- Lacey said Mrs. Hauptmann could not contend
figures released yesterday. aviator Charles A. Lindbergh. mann's attorney, said in a telephone interview that the state police files put her on notice that
Philadelphia Republicans also U.S. District Judge Frederick B. Lacey said that Lacey's ruling was "not the end of the case."
Democrats will have 3.17 million , boosted their numbers from 202,- . most of Anna Hauptmann's claims against the she had a cause for action. She already had filed
people eligible to vote Tuesday "We have have lost a battle but the war is not
her complaint by the time she inspected . the
817 to 203,047. GOP loses else- state, the FBI and the Hearst Corp. for its over," he said. Bryan said he planned to ask for a
while Republicans will have 2.23 records, the judge said.
where seemed spread across the reporting on the case were filed too late or did not new hearing and would appeal Lacey's ruling.
million! state. present sufficient evidence. "If Richard Hauptmann were alive today he In addition, Lacey noted that many of Mrs.
Democrats' advantage over Re-
,
publicans climbed by 39,515 since Democratic chairman Edward Lacey had dismissed the , bulk of the case on would be acquitted with the evidence I've got," Hauptmann's allegations appeared in the book
November. Democrats gained 555 Mezvinsky and Republican chair- • Aug. 11 when he ruled there was little or no Bryan said. . "Scapegoat," an account of the trial by Anthony
voters while Republicans lost 38,- man Robert Asher were not avail- evidence to support Mrs. Hauptmanns's charge Mrs. Hauptmann, of Yeadon, Pa., has con- Scaduto, published in 1976. Mrs. Hauptmann read
960 voters. In November 1982, able for comment when contacted that state officials had conducted a massive tended since the arrest of her husband for the one-third of the book, Lacey added.
Democrats were ahead by 678,075. by a reporter. coverup for 50 years to conceal the truth about "Crime of the Century" that she was with him the He also 'said key elements of Mrs. Haupt-
Statewide, there are 5.66 million The figures released Thursday the case. night 20-month-old Augustus Lindbergh Jr. was mann's wrongful death claims that the prospeople registered to vote, com- were based on unofficial returns The judge also had ruled previously that snatched from his crib in the family's East ecution had fabricated evidence such as the
pared to 5.56 million registered in from Erie Lancaster, McKean, • Hauptmann's civil rights were not violated dur- Amwell home. ladder allegedly used by the kidnapper and the
November. The state has an esti- Pike and Westinoreland counties. ing the investigation or his widely publicized. "I live through it everyday," she said after the chisel used to make it were brought out at the
trial. court hearing before Lacey last December. trial and on appeal.
Ambulance dispatcher is credited with saving baby
his lap but could not get him to ambulance was en route, then asked
breathe. He thought his son would die what the child was choking on.
DOYLESTOWN, Pa. When their in his arms. "I don't know," the distraught
18-month-old son Matthew choked on But the voice at the other end of the mother replied.
an orange slice and began to turn phone was steady. Robin Thoman, a Mrs. Thoman then asked how old
blue, a terrified Barbara and Robert paramedic for eight years, said she the child was and told his mother to
DiDomenico called for an ambu- thought of her own two daughters, bring him close to her and listen to
lance. now ages 6 and 9, and pictured what ' instructions. Mrs. DiDomenico hand-
By The Associated Press
"Hurry, please, my baby's chok- she would do for a choking child.
ing," said • the hysterical mother. Her calm voice and life-saving in
" Please hurry.' He's blue. Hurry, structions helped save Matthew Di
! please. What can we do?" Domenico's life last week.
DiDomenico, 32, held Matthew in Mrs. Thoman told the mother an
ed the phone to her father, Donald
Black, 62, at whose Warminster
Township home the family was stay
ing.
The conversation, taped as part of
the emergency routine, continued: time and wipe out his mouth of he "OK, all right," Mrs. Thoman said.
"What is he choking on, sir?" starts choking it up so he doesn't "Make .sure you wipe it out of his
"Carrots," Black answered. The swallow it back." mouth so he doesn't choke it back
family said later the boy had been" down ... All right, is he breathing OK?
"
eating carrots along with an orange,
His jaws are locked,
menico yelled. The baby was turning Mrs. DiDo-
Is he breathing K?"
and t h ey thought he had choked on"Oh, he's all right," the mother
bluer and his parents' sobs got loud
the carrots. , said in a tearful voice.
er. Black asked, "Can you get an
"... Listen to me, I'm going to tell DiDomenico said that about a min
ambulance here? "
you what to do," Mrs. Thoman contin-ute later, the Warminster police and
ued. "Put him over your hands. Turn Mrs. Thoman assured him an am- ambulance crew arrived. Matthew
him like on his stomach over your bulance was on the way. Then, again, was examined and later released in
arms ... Gently press on his stomach she repeated the first aid instruc- good health from Doylestown Hospi
and pat him on the back at the same tions. Finally, she heard a baby's cry. tal.
The Daily Collegian Friday, April 6, 1984-1