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Reunions
USCGC Yakutat (WHEC-380), 3-5 April *987, all Vietnam hands, 20th reunion. New Bedford, Massachusetts. Contact: Capt. Lawrence J. O’Pezio, USCG (Ret.), 25 Holly Lane, Mattapoisett, MA 02739. (617) 7584582 or Capt. Eugene E. Moran, USCG (Ret.), 3317 Kindlewood Crescent, Chesapeake, VA 23321. (804) 484-8210.
^SS Burns (DD-588), 10-12 April 1987, Lharleston, South Carolina. Contact: Frank H. Thames, 2753 Wyckersham PI., Fullerton, CA 92633. (714) 738-3547 or Sam E. Wilson, 9/85 Hefner Village Blvd., Oklahoma City, °K 73132. (405) 722-2760.
LSS Laffey (DD-724) and 42nd memorial of ■ne battle of Okinawa, 15-18 April 1987, atriots Point Museum, Mt. Pleasant, South Carolina. Contact: Charles B. Black, Box l3°l, Little Rock, AR 72203.
L*SS Alabama (BB-60, SSBN-731), 29 April- May 1987, Mobile, Alabama. Contact: John K- Brown, P. O. Box 501, Keller, TX 76248. (8*7) 431-2424.
L|SS Arkansas (BB-33), 7-10 May 1987, Vir- !'n‘a Beach, Virginia. Contact: Roy L. Alton, /809 Denton Drive, Clinton, MD 20735. (3°1) 868-6029.
USsPortland (CA-33), 27-31 May 1987, enver, Colorado. Contact: USS Portland .Union Association, P. O. Box 515191, Dallas. TX 75251-5191.
LSS Barnett (APA-5), 5-7 June 1987, Staple- °n Plaza Hotel, Denver, Colorado. Contact:
0 n E. Kolstad, 2213 Ming Ave., Bakers- fie>d, CA 93304.
SSS Zeilin (APA-3), 5-7 June 1987, c aumburg, Illinois. Contact: Thomas A. nffman, 35444 Ave. H, Yucaipa, CA 92399.
7 4) 795-5318.
^.SSHickox (DD-673), 12-14 June 1987, arnott Crystal Gate Hotel, Arlington, Vir- ’n,a. Contact: Bob Crockett, 2 Ripley Lane, est°n, MA 02193. (617) 899-2624.
Vangtze River Patrol Association and Task u “UP 78.2, 17-21 June 1987, Doubletree “R n- Denver> Colorado. Contact: C. W.
Lavine, 1893 So. Filbert Ct., Denver, CO 80222.
J^*ver patrol force, Seawolves, sea-air-land "miesweeping boats, naval support UnV1^ detachments, landing support its—West Coast reunion, 19-20 June
1987, San Diego, California. Contact: Gamewardens of Vietnam Association, P. O. Box 7897, San Diego, CA 92107.
USS Wake Island (CVE-65) and predecessor USS Pybus (ACV-34), 26-27 June 1987, Oregon, officers and wives. Contact: Richard Turner, 2384 SW Madison St., Portland, OR 97205. (503) 223-4733 (H)/(503) 226-6786 (W).
USS Belle Grove (LSD-2), USS Ashland
(LSD-1), 9—12 July 1987, Midway Motor Lodge, Elk Grove Village, Illinois. Contact: Del Catron, 14732 Van Buren St., Midway City, CA 92655. (714) 897-1787.
USS McGowan (DD-678), 10-11 July 1987, Boston, Massachusetts. Contact: Don Rogers, 30 Hurd St., Lynn, MA 01905.
USS Captivate (AM-156), 15-19 July 1987, Portland Hilton, Portland, Oregon. Contact: H. W. “Mac” McPherson, 5732 Washington St., Downers Grove, 1L 60516. (312) 9683530.
U. S. Asiatic Fleet 4-stacker destroyers, July 1987, Eagle, Pennsylvania. Contact: Doris (Betty) Holt, 37 N. Turkey Trot Rd., Dadeville, AL 36853. (205) 825-6995.
LSM-24, July 1987, Norfolk, Virginia. Contact: Del Catron, 14732 Van Buren St., Midway City, CA 92655. (714) 897-1787.
USS Callaway (APA-35), 4-6 August 1987. Contact: R. L. Stambach, 4283-B Island Circle, Fort Myers, FL 33907. (813) 481-0359.
USS Bon Homme Richard (CVA-31), 14-16 August 1987, Ramada Inn, Tupelo, Mississippi. Contact: Ralph Pound, P. O. Box 1531, Tupelo, MS 38802. (601) 842-8247 (H) or (601) 842-0572 (W).
USS Dayton (CL-105), 20-22 August 1987, Dayton, Ohio. Contact: Edwin Chapman, 36 Rossen PL, Bloomfield, NJ 07003. (201) 3388410.
USS Boston (CA-69, CAG-1, SSN-703), 2123 August 1987, Sheraton-Rolling Green, Andover, Massachusetts. Contact: George W. Colvin, 2 Herbert Rd., Chelmsford, MA 01824. (617) 256-5912.
USS Brush (DD-745), 23-28 August 1987, Reno, Nevada. Contact: Ted J. Dvorak, Jr., 8418 15th Ave., Kenosha, WI 53140. (414) 658-1997.
Fleet Patrol Wing Four, WW II Aleutian squadrons (VP-41, VP-42, VP-43, VP-45, VP-61, VP-62, VPB-131, VPB-135, VPB- 136, VPB 139), 26-30 August 1987, Oak Harbor, Washington. Contact: Jack “Ole” Haugen, 4976 South Point, Byron, CA 94514.
USS Blackfish (SS-221), August 1987. Contact: J. M. Fitzgerald, 1628-163 St., White- stone, NY 11357. (718) 746-6012.
Airborne Early Warning Squadron II (VW-11), 1955 to 1960, proposed 1987. Contact: Dick Anderson, 1093 Sheerbrook Dr., Chagrin Falls, OH 44022. (216) 338-8903.
------------------------------------------------------------------------------------------------- (Solution to the January puzzle)
The book is Coral and Brass (Washington, D. C.: Zenger Publishing Company, 1949), written by Holland M. Smith. The quotation reads: “We had generals who were admirals and admirals who wanted to be generals. Generals acting as admirals are bad enough, but it was the admirals who wanted to be generals who imperilled victory among the coral islands.’’
Pass-Down-the-Line Notes
Index to Advertisers
Six accredited graduate-level courses in acoustics and signal processing will be offered 1-27 June 1987 by Pennsylvania State University’s graduate program in acoustics and the university’s applied research laboratory. Courses may be audited. Contact: Dr. Alan D. Stuart, Summer Program Coordinator, the Penn State Graduate Program in Acoustics, P. O. Box 30, State College, PA 16804. (814) 863-4128.
Naval Postgraduate School seeks resumes from personnel qualified to teach military history and maritime strategy. Courses to commence in summer and fall 1987. Positions may be adjunct or tenure track. Primary consideration to those with Ph D. and strong publishing record. Mail curriculum vitae to James Tritten, Acting Chairman, Department of National Security Affairs (Code 56Tr), Naval Postgraduate School, Monterey, CA 93943. (408) 6462521.
A patrol-craft sailors’ society is proposed
for sailors who served on patrol craft and patrol escorts in war or peacetime. Contact: Patrick Ward and Wes Johnson, 6484 N. Park Ave., Indianapolis, IN 46220. (317) 2534801.
Northern Ordnance Div. .. 21
General Quarters | |
Software........................... | .... 23 |
GM Allison Gas | |
Turbine Div..................... | ...104 |
Hampton Company........... | .... 19 |
Inco Alloys International | ....11 |
Lockheed Electronics.... | .... 22 |
Magnavox Electronics | |
Systems Company .... | .... 13 |
Aero/Space Visuals
Society........................................... 107
ALS Corporation.......................... 28
American Cyanamid
Company...................................... 110
Antheil Booksellers...................... 19
Bell Boeing..................................... 27
Bird-Johnson Company................ 1
CAE Electronics Ltd................... 15
EDO Corporation,
Government Systems Div. . 18 Ferranti Computer
Systems Limited.............................. 9
FMC Corporation,
General Electric Co., Fitchburg/Lynn,
Massachusetts............................... 4, 5
General Electric Co.,
Marine and Industrial Engines and
Service Div.................................... 17
McDonnell Douglas
Corporation______ 6, 4th Cover
Naval Institute Press................... 73
N.B. Fine Arts, Ltd...................... 24
Newport News
Shipbuilding.......... 3rd Cover
Northrop
Corporation........... 2nd Cover
Preston Hobby Models............... 19
Rockwell International—
Collins Government
Avionics Div................................... 25
Syscon Corporation....................... 2
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The Proceedings Puzzle___________
Black Medal-of-Honor Winner By Richard McDonough
CLUES
ANSWERS
- Of a European river; region known for wine
- Singleness
- Herdsmen
- Turkish sailor
139 149 98 49 11 57 71
68 51 131 92 63 142 18
79 29 119 21 108 126 89
93 84 32 182 116 175
113 22 184
- Cadences
- Church’s poor box with three locks
44 122 24 75 53 124 96
Unskilled seaman |
| U. Tm-base alloy | 127 174 82 27 111 90 | |
163 25 181 78 195 |
| 17 41 185 145 169 | ||
| ||||
Accessory in | 148 33 121 86 23 | V. Washington Monument is |
| |
| 66 171 43 114 188 |
| 16 36 129 62 88 166 85 | |
|
| W. Listened |
| |
March-April in Hindu calendar | 10 105 73 38 123 | uninvited | 193 110 140 199 152 65 170 15 155 | |
146 97 20 164 30 | X. Moray eel |
| ||
Surgical hook: plural of tenaculum |
| variety | 172 46 9 167 136 58 39 | |
160 35 12 154 70 94 192 59 |
|
|
- Moon rat
- Tenderfoot in Alaska (variant of Cheechako)
- Inexpressible
125 19 76 107
G. 1800s reformer’s diet; led to famous cracker
138 161 | 187 56 176 |
135 165 | 1 100 191 47 |
150 134 173 |
13 81 102 112 55 60 179
_____________________________________________ (Solution will appear in the March “Notebook”)
When you place the letters of the clues’ answers into the numbered squares of this acrostic puzzle, you will spell a quotation. Reading down, the first letters of the answers spell the name of the quotation’s author and the title of the work. Answers to all clues may be found in Merriam- Webster’s Third International Dictionary.
158 117 162 194
14 80 31 83 156
K. A little verse; versicle
- To incommode (obsolete)
183 54 5 103 28 147
101 115 151 26 159 40 50
87 132 3 45
M. Boomer (device binds log loads)
128 177 77 190
168 91 197 67 4 72
N. Gusts of odor
O. Forsaken
141 157 95 106 2 74
143 61 48 137
99 198 69 6 133
P. Food, drink, sleep
153 37 144 52
Money Matter!
Bonds Can Be More Fun
By C. Allen Baker
We know that the 1980s have been the decade to invest in financial assets. And as we enter the last third of the decade, We can expect this trend to continue, primarily because of the historical restructuring of the federal tax system. Under the new tax law, nearly all of the incen- hves for investing in real estate and natural resources have been eliminated, while the lowering of individual tax brackets and the elimination of favorable tax treatment of long-term capital gains has greatly enhanced the benefits of financial assets that produce steady, predictable mcome.
With these new rules, the most conservative way to play the game is by |*smg fixed-income investments—with °nds being the most logical choice. Undamentally, most bonds are nothing more than IOUs issued by government and business that promise to pay a set rate °f interest to you for a specified number 0 years. When the term is expired, the CaPital that you lent (i.e., the principal) is returned to you.
Although it sounds simple and safe enough, investing in bonds does carry w° risk factors: future interest rate levels and the potential for default.
Future interest rate levels—The price a bond is inversely related to the general ievei 0f interest rates. As interest rates g0 Up, bond prices go down, and lce versa. This has no effect on you if L°u plan on holding your bond until it ^atures. But if for some reason you have sell your bond before it reaches matu- you would be subject to the daily rice fluctuations of the bond market varying inversely with interest rates), >ch can create either losses or gains. ’s is your interest rate risk.
As an example: You invest $5,000 thc'y'P3') m a corP°rate bond issued by . ^ ^ Corporation with a coupon (in-
20no rate or yield) 8% due in the year 0 (the date of maturity). Under the cerms of this IOU, you can expect to re- ^eive an jncome 0f J400 per year (probay $200 paid semi-annually) until the y ar 2000 when your $5000 will be re- rned to you. Suddenly, in 1992 for rea- dens unexplainable to you, your child Cldcs that he or she is going to Harvard rather than the Naval Academy. After futile attempts to dissuade this wayward child, you are forced to sell your most treasured assets—including your $5,000 XYZ bond at 8%—to help pay the first semester’s tuition. Let’s assume that in 1992 the annual inflation is 9% and the general interest rate is around 12% (a fair assumption since interest rates historically have equalled the inflation rate plus 3%). Because investors can now purchase bonds with a 12% coupon, you are forced to “discount” your bonds so that a buyer can eventually receive a return equal to the prevailing 12% rate, rather than the 8% that you expected to receive when you made your purchase in 1987. The discount you offer equals the difference between the $5,000 you paid for the bond and the $4,100 principal that the new investor will pay you for the XYZ bonds in 1992—i.e., you receive $900 less in principal than you would have received if you held the bond until the year 2000.
The potential for default—Logically, the greater the potential for default on a bond by the issuer, the larger the coupon the investor will demand. Government bonds are at the low end of the risk scale, and professional bond traders often use the most current 30-year treasury bond (T-bond) as a benchmark from which all other bond yields are measured. For example: Let’s say the 30-year T-bond is yielding 7.5%, and your friendly broker calls with a quote on an attractive 30-year bond of the Excelsior Widget Company that is paying 8.25%—but the company is just emerging from Chapter 11! Would you believe that this is a great deal when you can get nearly the same rate for the piece of paper backed by the full faith and credit of the U. S. Government? It is doubtful, to say the least.
However, not all investment decisions regarding yield can be made so easily by the individual investor because he or she does not have the time or the expertise to determine the creditworthiness of the multitude of government agencies and corporations issuing bonds. Luckily, there are two rating services—Moody’s and Standard & Poor’s—that constantly monitor and rate individual bond issues.
The ratings run from AAA—the highest quality (least risky) rating—to D— designating a bond in default. The bonds rated AAA, AA, A, and BBB are considered to be of sound investment quality with little risk of default.
Just as important as these ratings in judging the ability of a company to honor its IOUs is the fact that interest rates are established for each level of rating. A bond rated AAA will yield slightly more than the benchmark T-bond, the AA slightly more than the AAA, and so on down the line. By recognizing the current yield of T-bonds and the different levels of the rating system (all of which are available upon the investor’s request), the individual investor can be assured of receiving a fair return at minimal risk, and may occasionally be rewarded for recognizing a yield that, for some reason, is temporarily out of line with the general market.
Aware of these two risks, the individual investor may want to modify his or her strategy when considering a bond purchase. Here are some ideas that you might want to consider:
- Attempt to peg bond maturities to your future cash requirements. If you will need cash in 1992, tailor your bond portfolio so that your bonds mature and you receive principal payments that year. This eliminates interest rate risk and forces you to devise a sound savings program.
- When interest rates are rising, shorten the average maturity of your bond portfolio, and place a greater portion of your investment funds in money market instruments. This way you will moderate the price volatility of your portfolio. Also, investing in money market funds allows you to “ride the yield curve” by keeping your investment funds in assets with such short maturities (30—120 days) that there is no erosion of principal. You are constantly rolling your funds into higher yielding instruments.
- In times of poor economic conditions, make sure your bond portfolio consists of only investment-grade bonds. Don’t stretch too far to reap a higher yield by going for the lower-quality, below-BBB bonds.
Smooth sailing and good investing!