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The Daily Tar Heel Tuesday, February 4, 19863
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Editors' Note: This is the first of a
four-part series on interstate bank
mergers in North Carolina.
Dy LORRY WILLIAMS
Business Editor
The regulation of interstate banking
has, by and large, been left to individual
state legislatures. And even though
interstate banking is restricted legally,
banks and holding companies continue
to expand across state lines.
North Carolina's interstate banking
laws went into effect Jan. 1, 1985. Since
then the state's leading bank corpora
tions haven't wasted time in expanding
into southeastern states.
Federal statutes restricting banks and
holding companies from acquiring
banks across state lines seem straight
forward in addressing the interstate
banking issue.
The 1927 McFadden Act limits
branching by a national bank to a single
state. The Bank Holding Company Act
of 1956 prohibits a bank holding
company from expanding across state
lines.
It's the Douglas Amendment to the
Bank Holding Company Act, however,
that has allowed the megamergers
associated with interstate banking to
occur. Under the Douglas Amendment,
state legislatures can pass laws allowing
banks from outside their state to come
in and acquire a bank.
Robert Eisenbeis, Wachovia profes
sor of banking in the UNC Business
School, said the Douglas Amendment
might seem contradictory to the federal
restrictions. But, he added, it "depends
on which side of the fence you're on.
"What's happened is . . . (the Dou
glas Amendment) is a way around the
bank branching restrictions of the
McFadden Act," he said.
Maine was the first state to pass an
interstate banking law. Under its
provisions any bank in the nation could
enter into interstate banking with
Maine, as long as that state would
permit a Maine institution to acquire
one of its banks.
Since then most states passing inter
state banking laws have included
' reciprocal requirements, which are
usually regional in nature.
North Carolina is one of those states
with a regional reciprocal interstate
banking law. North Carolina is part of
the Southeast Compact which also
includes South Carolina, Georgia and
Florida. The legislatures in these four
states have passed laws stating that
banks in any of these states can acquire
a bank across state lines.
Since North Carolina's law went into
effect, NCNB Corporation, W,achovia
Corporation and First Union Corpo
ration have expanded their services
imii-iii iiiuiif iiiifiiijMi'iKiiNr-il
By LORETTA GRANTHAM
City Editor
The Julliard School accepted Lar Lubovitch as a
dance student, although he'd never taken a dance class
in his life.
Dance critics from New York to San Francisco
accepted Lubovitch's choreography in "Big Shoulders,"
although the dance piece had no music.
And a Chapel Hill audience will have its own chance
to accept Lubovitch on Feb. 5, when the Chicago
native's dance company will perform in Memorial Hall.
"It's contemporary dance . . . what some people
would call 'modern,'" said Lubovitch in a telephone
interview, as his dancers prepared to rehearse in his
New York studio.
Three works choreographed by Lubovitch will
comprise the company's local performance, the second
event of this year's Triangle Dance Guild series.
The group's first piece, performed to Johannes
Brahms' Symphony No. 3, will feature the female
dancers in long dresses and the male dancers in
unitards, Lubovitch said. In the second portion of the
program, the dancers will don short white dresses and
white unitards for a dance set to a Wolfgang Mozart
concerto.
And finally, "Big Shoulders" will provide a
CaHDeir posooug a StHlS
Several students have received phone
calls from someone falsely claiming to
be conducting a survey for the Student
Health Service Advisory Board, but
board members said the person was not
affiliated with Student Health.
The board recently conducted a
survey to obtain information about
student awareness of and satisfaction
with SHS services, clinics and
employees, said Advisory Board Chair
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beyond the Tar Heel state.
"NCNB got into this activity directly
by a historical accident," Eisenbeis said.
The corporation owned a non
deposit trust company in Florida that
saw very little activity, according to
Eisenbeis. In the early 1980's when the
interstate banking laws were beginning
to go into effect, the company was
rediscovered. With no expansion lim
itations to restrict it from merging with
the Florida company, NCNB began its
interstate banking expedition by merg
ing that company with a bank.
"They had a jump on other banks,"
Eisenbeis said.
One of First Union Corporation's
earliest mergers was not with an out-of-state
bank; it was with Northwestern
Bank of North Carolina on Dec. 31,
1985. In November, First Union
acquired the Atlantic Bancorporation
of Jacksonville, Fla.
Interstate mergers obviously increase
a bank's holdings, but other reasons for
expansion may not be as obvious.
"Movement for a compact group is a
way to keep money centers out of the
Southeast," Eisenbeis said.
"They have a growth objective," he
said. "They want to get bigger. They
don't want to be an acquisition
candidate."
Mark Flannery,- associate professor
in the Business School, agreed with
Eisenbeis.
"A lot of banks are seeking to protect
themselves for the time when New York
and Chicago can buy banks in North
Carolina," Flannery said. "(Through
expansion) they can survive the day
Editors' Note: This is the second of a four-part series on
interstate bank mergers in North Carolina.
By ROBERT KEEFE
Staff Writer
Shareholders of Citizens Dekalb Bank of Clarkston, Ga.
voted recently to approve a $10.4 million merger with First
Union National Bank of Charlotte.
The merger, pending approval from the Federal Reserve
System, will result in the acquisition of $40 million in assets
presently held by Citizens DeKalb, and it will give First
Union 48 new offices in Georgia.
"The purchase of this bank will allow First Union to expand
its service to existing customers in Georgia and to capitalize
on new banking opportunities in the thriving Atlanta area,"
said Edward E. Crutchfield Jr., chairman and chief executive
officer of First Union Corporation.
According to Barbara K. Massa, vice president of investor
relations with First Union, negotiations are expected to be
completed by March 31 of this year.
The Citizens Dekalb acquisition- marks the fifth such
merger announced by First Union since November of 1985.
Mili i run iii -riiirji jr. lot ivm
contrasting finale to the show, Lubovitch said. The
colorfully dressed dancers will not move to the sounds
of music but to a soundtrack of construction noises.
The work takes its name from a poem by Carl
Sandburg about Chicago, the choreographer said, and
its theme is one of architecture and energy.
"Big Shoulders" has received critical acclaim across
the country, and one New York Times reviewer said
the piece "shows the choreographer back in the
inventive movement phase, always maximizing the
sleek technical polish and energy of his excellent
dancers."
Neither choreography nor dance, however, was what
Lubovitch had in mind for a career when he was
studying art at the University of Iowa. Young
Lubovitch saw a performance by the Jose Limon dance
troupe and decided to leave college, go to New York
and seek an audition at the Julliard School.
When asked about his rather unorthodox method
of gaining acceptance into the competitive school,
Lubovitch simply said, "I auditioned with a dance that
I'd choreographed myself, and I got in."
Although he switched to dance as a profession,
Lubovitch's art training continues to help him as he
selects settings and costumes for his works, he said.
Lubovitch supported himself while he was at Julliard
woman Laura Files. She said someone
not affiliated with SHS had called some
students and asked questions of a
personal nature. '
SHS Director Judith Cowan said she
believed the caller was male.
"I'm concerned about someone using
Student Health for (obscene) personal
uses," Cowan said.
The calls have been reported through
the housing department or directly to
the Student Health Service.
Lieutenant Walter Dunn, of the
campus police, said that the calls were
Annette Garcia
Tucson, AZ
A lffv
when larger banks come in."
Interstate mergers also help banks
protect themselves, Flannery said,
adding that when banks merged more
economic factors were important and
the good and bad economic news
equaled out.
For example, in North Carolina
many bank customers depend on
tobacco and textiles for their incomes.
When those industries experience bad
times customers dependent upon them
begin to pull their money out of the
bank.
Florida's economy, however,
depends on more diverse things. For
a company owning banks in both states
it would be unlikely for both states to
experience bad economies at the same
time.
Flannery also said bank mergers
often combined two institutions with
complementary skills. "You get bigger,
better, broader and more diversified
skills (with mergers,)" he said.
Eisenbeis said unit costs for providing
some- services could go down when
mergers happened. He added that banks
might be more able to offer interna
tional services or scope economies that
could better satisfy the needs of par
ticular customers.
"There is a question about whether
there are efficiencies," he said.
"Research tends to suggest there are
not." - ,
Flannery agreed that interstate
mergers gave corporate customers
improved access to services. But he said,
"Better services in terms L of retail
customers are nill."
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sujiireyoir
still under investigation but that anyone
caught would be arrested.
Files said this year's survey had been
completed. "Any further calls in our
name are misrepresentations and
should be reported," she said.
"We were disturbed to hear of this
infringement of student privacy and
regret the negative and incorrect
implications which may have been
drawn," she said.
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The average consumer may be able
to travel out of state and still have access
to his bank account. Or heshe could
move into a state where hisher bank
has merged and not have to change
banks.
"But not many people think about
that," Flannery said. "The changes are
more likely to be noticed by corporate
customers than retail customers.
"The harm is smaHer than the gains,
but both are pretty small. I don't think
"there are any detrimental effects (of
mergers)."
Whether small banks can effectively
compete with million dollar megabanks
is a question that remains to be
answered, Flannery said.
Eisenbeis said that while some people
believed mergers would create compe
tition for smaller banks, those compet
itive pressures were already there before
the interstate banking laws went into
effect.
There is also the fear that interstate
mergers will lead to a small number of
banks dominating the banking field.
"With regional interstate banking there
is more of a chance of that than with
national interstate banking," Eisenbeis
said.
Although the interstate banking issue
has been left to individual legislatures
to handle, Congress was expected to
take some form of action on the matter
last year. It did not, and Eisenbeis said
it probably would not for a while.
"Congress never runs off on these
things without a reason to do it," he
said. "And there's no pressure to act
on it now."
On Nov. 15 of 1985, First Union acquired the Atlantic
Bancorporation of Jacksonville, Fla. On Dec. 1, it acquired
Northwestern Bank of N. Wilksboro, N.C., and on Dec.
31, First Union merged with Central Florida Bank
Corporation.
In addition to the Citizens DeKalb merger, First Union
wants to complete negotiations on the acquisition of the
Southern Bancorporation of Greenville, S.C., by the end
of March. It also plans to begin negotiations on a merger
with First Bankers Corporation of Pompano Beach, Fla.
in the near future.
Massa said when the federal government began dereg
ulating banks, First Union was ready to move.
"We were one of the banks with very strong capital," she
said. "So we could begin (interstate banking) almost
immediately."
Massa said the mergers should not effect services to
customers of First Union. "If anything it will benifit them,"
she said.
At the end of 1985, First Union had $8.1 billion in assets
in 468 offices in 30 U.S. states and in four foreign countries.
The corporation's total assets are expected to exceed $17
billion when all announced mergers are completed.
H 17 f7
by drawing portraits with colored chalk at a small
art shop in Greenwich Village.
After graduating from Julliard in the early '60s,
Lubovitch appeared with a variety of companies that
featured modern, ballet, jazz and ethnic dance. He also
worked five nights a week as a professional go-go
dancer in New York nightclubs. "It's all dance," he
said, in discussing his after-hours job. "It was a great
experience."
He said he later joined a ballet company and was
typecast as "the resident monster," playing such parts
as the rapist, the bat, the bad kid, the lunatic and
the drunk. "I was the modern dancer in the ballet,"
he said. "It gave me a hungry condition for
choreographing."
Lubovitch formed his own company in 1968, a group
that has performed in the United States, Canada,
France, Poland and Portugal.
While he sees little difference in audiences worldwide,
Lubovitch said he noticed a freshness in university
audiences. "They're made up of younger people, and
they're more receptive," he said.
Lar Lubovitch Dance Company will perform Feb.
5 at 8 p.m. in Memorial Hall. Call 962-1449 for ticket
information.
Cost: $3.00 for 25 words or
less. Add 5$ for each word
over 25. Each ad will bo
boxed In red at no additional
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Amount Enclitsed
Phorw Deadno: Wednesday,
February 12th at noon
EncloM check and man or bring by th
OTH ofSc. 1 04 Carolina Union.
Cy DEMISE JOHNSON
Staff Writer
The Elections Board will break
another election-night tradition this
year, as this year's results will be
tabulated in the Fastbreak area of
the Student Union instead of the
Great HalL
In years past, candidates for
student offices gathered in the Great
Hall anxiously awaiting the results
of the vote counter. The evening
ending late, with champagne toasts
for the winning candidates and tears
on both sides.
Chris Shearer, Elections Board
treasurer, said the board decided to
move its tabulations to the Fastbreak
area because "we just don't need all
that space in Great Hall."
"We're just basically experiment
ing right now," he said. "If we find
that we're crowded, well move back
to Great Hall (next year)."
Polls will close at 5 rather than
7 p.m. this year, Shearer said, to
prevent late results. He projected
that the results would be tabulated
by 9 p.m.
"We hope to speed it up so
everyone can watch the Georgia
Tech game," he said.
Last year, alcoholic beverages
were banned for the first time in the
Great Hall, and Shearer said the
policy would remain this year.
"Allowing alcohol is too big a
hassle to pay a policeman to be there,
pS0s inniysnc at Caf Cradle
Inures Briftilfo-lDto nuwasSoini
By JAMES BURRUS
Staff Writer
Once a month, all the English
graduate students and professors get
together at Cat's Cradle to listen to some
of that '60s music they grew up with.
The tunes are played by the eclectic
band Scrapyard, consisting of Joe
Viscomi on drums, Mike Schaeffer and
Ted Johnson on guitar, Brennan
ODonnell on bass, and BUly Hooper
on keyboards, flute, banjo, and an .
occasional cowbell.
- ODonnell and Schaeffer are English
doctoral students, and Viscomi is an
assistant professor in the English
department on leave for a year as a
National Endowment for the Human
ities fellow. Johnson is a graduate
student in environmental engineering,
and Hooper is in his second year at law
school.
The band was formed through an ad
that Viscomi placed in the English
department lounge inviting people to
come to his house to jam on some '60s
favorites. After a while, the same people
kept showing up week after week, and
as the five grew tighter musically, they
finally decided to play for an audience.
According to Schaeffer, "We decided
to play out because of a goal," but
Viscomi quickly added, "We don't hope
to go out on the road. We're too busy
Night MBA offered
The UNC School of Business Admin
istration will hold a free information
session about its new evening master's
degree program on Wed. Feb. 5 at the
Governor's Inn in Research Triangle
Park.
The new "MBA: Executive Section,"
to begin in the fall, will provide area
managers an opportunity to earn an
MBA degree without interrupting their
careers. The evening course will be
identical to the business school's ,
daytime class.
School representatives will be at the
Governor's Inn from 1 1 a.m.to 6 p.m.
Presentations will be given at noon, 3
p.m. and 5:30 p.m.
Executive Section applications will be
accepted through June 1. For more
information, call (919) 962-3238.
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I
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THEINSmUTE
raPArLBGAL
TRAINING
Approved bit the
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(and) we have to clean up after the
event," he said.
The tradition of holding the
election results in the Great Hall will
be missed, said Jimmy Greene, a
candidate for student body president
and two-term Campus Governing
Council representative.
"I liked it in Great Hall where they
would put it on the wide screen,"
he said. "It is traditional and has a
better atmosphere."
Ray Jones, a candidate for Res
idence Hall Association, said: "I
always enjoyed the bigness of Great
Hall. IVe been picturing it in there,
and I just think they're trying to find
some use for the Fastbreak area."
Jaye Sitton, a current CGC repre
sentative and candidate in this year's
election said the move to the Fast
break area was not important.
"Whatever is most convenient for
them," she said. "If it's big enough
to . hold everyone, I don't see a
problem."
. Greene said he would miss the
champagne celebrations after the
votes were counted. "(Not having
alcohol) puts a damper on things,"
he said. "But you have to take it in
stride."
The no-alcohol policy, however,
probably will not put a damper on
the winners' celebrations. Jones said:
"IVe never been drunk before, but
if things turn out well, I may consider
it. But I may just go home."
with other careers, our real careers."
They all agreed they still play for the
fun of it. -
Scrapyard has played at Cat's Cradle
every month since October, and on the
strength of a demo tape, the band is
now. getting other gigs in the area. On
February 14 the band will play at The
Fallout Shelter in Raleigh.
On this Friday night at Cat's Cradle
though, Scrapyard played some original
rhythm and blues 'tunes, some reggae
stuff and some rearranged early Stones,
Bo Diddley, and Bob Dylan songs. The
band decided to rearrange the Stones'
"Under My Thumb" with Hooper
playing flute and O'Donnell and Vis
comi providing a solid back beat which
resulted in a funkier sound. Dylan's
"Knockin' on Heaven's Door" was
rearranged in a similar fashion, yet the
crowd of 100 still liked it because of
its danceabiltity.
While the band does plan out and
rearrange most of the songs on their
play list, they an also-just-stand on
i: ..'iL t i
&iagc aiui jam wuu several suius turning
off different instruments. Schaeffer tries
to organize all this originality through
visual signals from the other band
members. However, once in a while,
Hooper will go off on his own tangent
just to keep things interesting.
The highlight of this night, though,
was a guest appearance by Professor
Tom Stumpf, who came on stage to
sing some rhythm and blues songs from
the '50s. Stumpf set the people's feet
tapping and dancing with his sincere
energy and soul sound.
For one number, he invited friend
Suzie Bolotin to join him in a harmon
ized version of the old Coaster's 1957
tune "Searchin."
In the future the band would like to
invite friends, including Stumpf, to sing
more songs with them. According to
Viscomi, "If we had all night to play
we'd do just that."
Having fun is what this band is all
about. In fact, according to Viscomi,
"to get people up and dancing" is the
band's only goal. "I think we are pretty
good at doing that," he said. On this
night, the crowd at the Cradle thought
so too.
Dwcsu of Lzbcr Statistics,
21768
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