(Utjp (Earoltna 3Fittanrial ©imps
The South’s Leading Business Publication
Vohime 10, Number 24
Working Mothers
Child-Care Costs May Eat Up Income
by PEGGY PAYNE
Financial Times Contributor
RALEIGH—There is one route between
bed and work in the morning that leads
hurriedly through a cup of coffee, a
newspaper and a couple of sleepy stoplight
waits.
But for thousands of North Carolina
women, the early-morning ritual is much
more involved. They must rouse and feed
kids, match small tennis shoes and make a
stop at the day-care center.
They are women who work and have
small children.
For the parent who might otherwise
stay at home with the kids, the
early-morning routine costs money as well
as time. But the expenses only begin
there.
What’s left of a working mother’s
take-home pay is often further whittled by
the costs of child care, leaving some
mothers only a relatively small net income
for their weekly effort.
Mrs. Nilda Uyterhoeven is an elec
tronics assembler. She picks up her
three-year-old at a day-care center after
work. Day-care costs her about $25 a
week. The added cost of driving amounts
Carolina Compendium
A wrap-up of business and financial news from throughout
the Southeastern business community
...North Carolina insurance companies
will ask for a 10% increase in automobile
liability rates, the North Carolina
Automobile Rate Administrative Office
said last week. The industry asked
Insurance Commissioner John Ingram to
drop its earlier request for a 15.9%
increase. Several insurance companies
also said Ingram’s request for detailed
SPECIAL SUPPLEMENT TO:
The Anson Record (Wadesboro)
Bertie Ledger-Advance (Windsor)
The Courier-Tribune (Asheboro)
The Chowan Herald (Edenton)
The Dally Record (Dunn)
The Dally Southerner (Tarboro)
The Dispatch (Lexington)
Enfield Progress
Enquirer-Journal (Monroe)
Gates County Index (Gatesvllle)
The Herald (Ahoskle)
The Hickory News
The Johnstonian Sun (Selma)
Lenoir News-Topic
The Moore County News (Carthage)
The Nashville Graphic
The News Herald (Morganton)
Northampton News (Rich Square)
The Onslow Herald (Jacksonville)
The Pinehurst Outlook
Richmond County Dally Journal (Rockingham)
The Robesonlan (Lumberton)
Scotland Neck Commonwealth
The Southeastern Timas (Clarkton)
The Tlmes-News (Hendersonville)
WMmlnoton Mornlno Star
to about $4 a week.
She doesn’t buy extra clothes—“no
way,” she said. Then she also has the costs
of some lunches at work.
Mrs. Uyterhoeven estimates her SIOO
salary in the end produces enough to buy
the week’s groceries, which cost $45-SSO.
The extra income from her work is “not
really much," she said.
The money from working is worth it,
according to Rachel Gentry, a stenograph
er for Air Force ROTC at North Carolina
State University.
She also has one child, for whom she
pays $32.50 a week for day-care in
summer. If she had more children, she’d
have to make other arrangements, she
said.
“I’d probably find someone in the
family,” said Mrs. Gentry.
She doesn’t have any significant
additional transportation costs. Mrs.
Gentry buys extra clothes for work but
hasn’t calculated the costs. She has not
hired any additional housekeeping ser
vices.
Child-care costs may even reach $75 a
week or more for mothers who pay a
housekeeper the minimum wage to keep a
child in his own home.
(Continued on page 6)
statistics on individual auto charges were
unreasonable and would prove cumber
some, complicated and expensive. The
companies said some of the statistics are
not available. Deputy Insurance Com
missioner Byron Tatum called the
companies’ accusations “ridiculous.”
...Cannon Mills Co. has turned down a
proposal by Gulf & Western Industries
under which G&W would have acquired
20% of Cannon’s common stock. Gulf &
Western had offered to buy the stock in
exchange for 7% of its own subordinated
debentures (see story, page 2).
...Raleigh’s venerable Sir Walter Hotel
may be remodeled and renovated and
turned into a convention center. It was
reported last week a group of unnamed
investors is interested in buying the hotel
and adding a new facade, 70 new rooms
and an outside elevator. The hotel has
recently been used as an office building
with no hotel rooms.
...The Southern Furniture Manufac
turers Association reported that orders
for bedroom, dining room and occasional
furniture were up 61.4% for the first four
(Continued on page 13)
j— n, ict
a=saga=aaaaßaß»'
Bjf
TRIANGLE BRICK ncar Durham expects a steady
growth in sales this year following the 1974-75 recession.
Looking over Triangle's brickyard are prerident Ted
Tysinger [left] and executive vice president Willie Glenn
[see story, page 9].
Pinehurst Investors
Given Little Hope
by a Financial Times Writer
Two officials of Pinehurst
Mortgage & Loan Corp. were
indicted for securities fraud
by a Wake County grand jury
last week.
The next day, a federal
bankruptcy judge in Greens
boro told PML investors they
might recover only 20% of
their $2.4 million investment
in the insolvent company.
Indicted for securities fraud
were Pinehurst president
Robert P. Kelly 111 of
Southern Pines and former
company president Frederick
N. Boswell. Kelly, 29, was
arrested Tuesday.
Boswell, who has been free
on bond since appealing an
April mail fraud and conspir
acy conviction in federal court
in Jackson, Miss., had not
been located by late in the
week. His whereabouts have
been unknown for at least two
months, although he repor
tedly had $200,000 cash in
hand when he disappeared.
More than 600 North
Carolinians had invested in
high-interest PML securities
since 1973. Federal bank
ruptcy judge Rufus W.
Reynolds told investors dur
ing a hearing Tuesday there
was little hope of recovering
most of their money.
“In my opinion, there is no
possibility of making it a
going, continuing business,”
said Reynolds in Greensboro.
“I hope the trustee can be
successful in getting you some
money, but some of these
properties, you can’t expect
to get much out of.”
John A. Huffines, a court
appointed PML trustee, said
the company’s losses would
likely total about $2 million.
"We found no evidence that
anybody connected with the
company was a businessman,”
said Huffines. He said most of
the investors were from the
Asheville, Charlotte and Fay
etteville areas, where PML
had regional offices.
Investors were told their
funds would be invested in
real estate with a return of up
to 9.5%. But the state has
charged company officials
with pocketing the money or
using it to pay off old notes.
The company's assets have
been frozen by a superior
court order. A few investors
who invested money just
before the assets were frozen
may get their money back,
Reynolds said.
The company was prohib
ited from further financial
transactions by a federal
judge after it filed for
bankruptcy.