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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (Oct. 20, 1987)
■ Inside: ■ News Digest.Page 2 I Editorial.Page 4 I Sports.Pages ■ Entertainment.Page 5 University of Nebraska-Lincoln Vol. 87 No. 39 Reasons for stock market drop unknown By James M. Lillis Senior Reporter Monday’s panic selling caused the Dow Jones industrial average to plum met 508 points to 1,738.74, the causes and effects of which are hard to pin point, said two University of Ne braska-Lincoln professors. The plunge followed the heaviest day of trading in the history of the New York Stock Exchange. The point drop represented a one-day loss of 22.4 percent. The great crash of Oct. 28,1929 — Black Monday — was a drop of 12.8 percent. The closing figures for the year 1929 was 248.48 on the Dow Jones industrial average. The 1959 year-end average was 679.36. In 1979, it was 838.74. Keith Broman, a finance professor, said the 22.4 percent drop is “stupen dous.” He said the figure translates into “hundreds of billions of dollars.” The drop erased $503.18 billion in stock maifcet value, according to Wilshire Associates’ index, which closed at $2.31 trillion. “I’m puzzled,” Broman said. “I’m one of those who thought the market would go higher.” Broman said it is difficult to pin point any event that could have trig gered the fall. “Obviously, this will shake confi dence in the market,” he said. Wallace Peterson, professor of economics, said the effects of the drop are hard to predict: “How much this will spill into the economy is anybody’s guess.” Peterson said many people arc scared right now, given the highly speculative nature of the market. He said ihc rumor lhal ihc market was going down caught on and investors started selling. “The wheelers and dealers here are young people who have known noth ing but a rising stock market, have a lot of money and little experience,” Peter son said. The Associated Press reported that Suresh Bhirud, an analyst at Oppen heimer & Co. in New York, said he didn’t “have words to describe this.” “Unless you can make a case for a major recession or World War III, we cannot really justify such a severe decline,” Bhirud said. According to The Associated Press, not long after the close, the White House issued a statement saying that President Reagan watched the market decline “with concern.” Reagan watched the market fall with advisers, and the administration emphasized that the U.S. economy is healthy. “I think everyone is a little puzzled because—I don’t know what meaning it might have — because all business invoices are up,” Reagan said. “There is nothing wrong with the economy.” Goebel: NU Police respond positively to investigation By Mary Nell Westbrook Staff Reporter John Goebel, University of Nebraska-Lin coln vice chancellor of business and finance, said he agrees with the report about the short comings of the UNL Police Department that was submitted to his office earlier this semes ter. The report, from the Nebraska Office of the Public Counsel/Ombudsman, addressed pos sible changes to be made in the department’s policy. The investigation began last June because of complaints made by several officers in the department. Because of restructuring in the department about every nine months, the offi cers said, ordinary complaints had com pounded to “crisis proportions.” The immediate problems addressed were related to foot patrol and the accidental firing of a gun in the police station. “We consider the response (to the UNL Police Department problems) positive and helpful,” Goebel said. Examinations like this are useful, he said, because they give a department a chance to discuss any problems it may have with an objective party. The police department will review its policy as a result of the report, Goebel said. Goebel said he will try to “maximize the efficiency of the foot patrol.” He said this was one of the report’s positive actions. The accidental firing of a weapon in the station was one of the personnel matters that Goebel said he couldn’t comment on. “As far as I’m concerned, the personnel matters have been resolved,” he said. In a response to the investigation earlier this month, Goebel said that after reviewing the policy on the discharge of weapons, the policy may have to be rewritten if warranted. Goebel said all lines of communication have been open and those involved have cooperated with the investigation. State film office draws movie crew to Nebraska By Terie Clement Staff Reporter The Nebraska Slate Film Office has suc ceeded once again in bringing a piece of Holly wood to the state with the movie “Bom to Lose.” Dawn Novacek, one of two employees at the film office and a senior broadcasting major at the University of Nebraska-Lincoln, said she is helping to draw income to Nebraska through the state’s broadcasting market. Novacek recently set up the itinerary for a visit to UNL by Don Schain, co-producer of the motion picture tentatively titled “Bom to Lose.” The company wants to shoot some scenes in Morrill Hall, she said. Novacek and her supervisor, Janet Traub, spent several months working to lure the com pany, Focus on Nebraska, Inc., to the state. Novacek said the film’s possible economic impact is $750,000. Her work with the company, which started shooting in Fremont earlier this month, is on going. “I just got the company visitor parking per mits for the shoot at Morrill Hall sometime in late October.” Novacek says the film office, which opened Clarification The Daily Nebraskan reported Monday that anti-gay-rights activist Paul Cameron said everyone who had previously pulled out of a debate with him was a homosexual. Cameron was not referring to people who had pulled out of Tuesday’s AIDS panel discussion, but to a previous debate. in 1984, “sells” Nebraska to film companies looking for locations for their productions. The office has been involved with such productions as “Terms of Endearment” and the TV movies “Miracle of the Heart: a Boys Town Story” and “Amerika.” “Producers need information about the state’s resources, climate, film and work laws, and on specific locations,” Novacek said. The film office has created “Nebraska Film Locations,” a color portfolio of picturesque areas and cities in the state, and “The Nebraska Film Resource Directory,” a reference guide for producers. The directory contains informa tion on locations, colleges and universities, Nebraska laws pertaining to out-of-state com Kanies, and Nebraska businesses that could elp the companies in preproduclion, produc tion and postproduction. A producer calls tne office, Novacek said, and asks for information on certain locations, or he may describe the type of site he wants. “When we geta request, the first thing we do is a prospect analysis to sec what kind of a production it will be,” she said. “Directors usually request photos on a certain area. We research and send them in-depth material and contacts that can give them further informa tion.” Novacek said the office tries to do this in a 48-hour “turn-around.” Novacek said her work at the film office is an “extended internship” that started last Janu ary. Her initial project was to design a resource data base to give the office quick reference to the information on areas and cities in the state. Novacek said many people are interested in Nebraska. “We’re getting calls every day,” she said. Andrea Hoy/Dally Nebraskan Beverly Schaefer, co-owner of the Roca Berry Farm just south of Roca, arranges pumpkins for weekend sales. Her husband, Jeff, said 7,000 to 8,000 pumpkins were sold this season. Nebraska is poppin' pumpkins By Sharon Miller Staff Reporter Despite poor pumpkin seasons in other states, Nebraska’s having its best crop ever, according to some Nebraska jack-o'-lantern raisers. Pumpkins in Iowa and Illinois ripened early and are now rotting in the fields, said Ed Schaeffer, a pumpkin grower in Bellevue. But conditions in Nebraska have been good. Although the Agriculture Statistics Divi sion of the Nebraska Departmentof Agricul ture doesn’t keep statistics on the pumpkin crop, farmers like Schaeffer have raised one of tneir better crops this season. “Some farmers put their crop in earlier this year, but we haven’t seen a lack of pumpkins,’’ said Don Janssen, a Lancaster County extension agent “Best I’ve seen in years,” Ed’s brother Jeff Schaeffer said. Jeff Schaeffer runs the Roca Berry Farm near Roca, 10 miles south of Lincoln. De spite insect problems and an early freeze, he said his crop this year was belter than previ ous ones. Ed Schaeffer, who owns the Bellevue Berry Farm, said he also had an excellent season. His only complaint was that the amount of early rain created smaller pump kins than normal. The Schaeffers said more people than ever arc coming out to the farm to pick their own. Despite rumors of a shortage, most Lin coln stores have as many pumpkins as they have had in the past. A Lincoln merchant said pumpkins sell for between 8 and 11 cents a pound. A large pumpkin is between 5 and 10 pounds. I I 0