


                              MERCHANTS MESSENGER

                                VOLUME THIRTEEN

                                  NUMBER ONE

                                  SPRING 1997





                 VIVA LAS VEGAS: COME TO OUR SPRING CONFERENCE



       Participate in our Spring Conference in Las Vegas scheduled for

Wednesday, April 2, and Thursday, April 3.  Room rates for Harrah's

Casino, 3475 Las Vegas Boulevard, are as follows for Monday, March 31,

through Wednesday, April 2:  single and double - $63.00;  triple - $78.00;

and quad - $93.00.If you want to stay through Thursday night, April 3, the

rates are: single and double - $99.00; triple - $114.00; and quad -

$129.00.  Hotel tax is 8%.  You must negotiate weekend rates yourself

based on availability of rooms.

       You must call 800/634-6765 and refer to Group Code 103NFBM.  You

must guarantee the cost of your reservation plus tax for the first night

by check, money order or valid credit card.



                    MAKE YOUR RESERVATION BY MARCH 3, 1997.

       We plan to meet all day on Wednesday and adjourn by Thursday noon.

We scheduled a mid-week conference to get the best room rates.



                   IT TAKES THE FEDERATION TO WIN A VICTORY

                               By Charles Allen



       Many of you know that the Kentucky Business Enterprise Program has

a single vendor policy which the Vendors Committee was able to negotiate

with the agency in 1995.  The policy has been implemented through

attrition.  Of the five multi-vendor locations remaining, two involve

family members.  I myself have been alone since January 1, 1996.

       This policy change represents the end of a struggle that lasted

almost twenty years.  It involves the work of many Federationists such as

Dennis Franklin, who once served as president of our Louisville chapter

and as chairman of our Vendors Committee.

       Raymond Katon has served as president of our Louisville chapter and

has been a member of our Vendors Committee for years.  Who could ever

forget Russell Sanford, former president of our Kentucky Merchants

Division, who campaigned tirelessly for what he called "one-on-one?"  He

was a lifetime member of our national Merchants Division and served on our

Board of Directors.  Russ loved the Federation and attended conventions

and the Washington seminar regularly.  Dennis and Ray often attend

conventions and the Washington Seminar.

       Although different persons have led our struggle at different times,

our shared focus has never deviated.  The National Federation of the Blind

has been our source of strength over the years; faces may change - the

philosophy is constant.

       The last series of events that brought about change began prior to

the meeting in Washington, D.C. of the National Council of State Agencies

for the Blind with vendors from all over the country. The meeting's

purpose was to identify problems in the vending program. Our NFB Director

of Governmental Affairs, James Gashel, contacted Don Morris, our Merchants

Division treasurer, and me to get our input into a fact sheet he was

developing for the meeting.  The multi-vendor system was one of the

problems Mr. Gashel listed.

       The NFB fact sheet influenced the outcome of the NCSAB meeting and

had a favorable impact on our Kentucky Department for the Blind

Commissioner, Priscilla Rogers.  (We shall hope our efforts had a positive

influence on other administrators throughout the country.)   Commissioner

Rogers got to know and to work with Federationists throughout the country. 

She came to understand that it would be far better to put agency and

vendor resources into improving our program rather than to continue

spending time and money in arbitration.  It finally became possible to

negotiate the single vendor policy.

       Before the NCSAB meeting I had filed a grievance against the agency

because of the agency's placing another vendor with me when the

assistant's position became vacant.  With my wife Betty's assistance, I

filed for and won an administrative review.  The win was meaningless

because the agency had already filled the position.  I then lost the

evidentiary hearing.  The hearing officer said that, no matter how well I

could run a facility, the agency had the authority to assign another

vendor to work with me. My attorney, Stephen Bolton, was astounded at the

decision.

       When Commissioner Rogers received a standard notice from the

Rehabilitations Services Administration Commissioner, Fred Schroeder,

requesting that we try to negotiate a settlement, making federal

arbitration unnecessary, she, Stephen Johnson, BEP Director, and I began

talking again with our new single vendor policy in effect.

       I believed that the settlement had to involve fair treatment of the

vendor then assigned as my assistant.  He had been assigned to work with

me without being told that I was involved in a hearing process to

establish my facility as a single vendor operation.

       The National Federation of the Blind introduced me to an attorney

named Andrew Freeman who had wide experience in federal arbitration in the

vending program.  His ability and understanding were key elements in

developing a settlement acceptable to my former assistant and to me.  The

agency built a vending route for my former assistant who is pleased with

the outcome.  (Incidentally, he now holds office in two of our NFBK

chapters.)

       The Federal Regulations many times use the phrase "the vendor in the

location."  I am finally the ONLY vendor in MY location.

       In looking back over this long struggle, I am keenly aware that the

National Federation of the Blind has been essential to the continuation of

the battle and to its final victory.  We again recognize the significance

of the NFB in the lives of blind persons.



                               Financial Corner

                            by George Littrell, III



       Many of you will remember George Littrell, our Associate Member,

from the presentation he made at our spring conference in New Orleans,

1995.  The following article by George updates several important tax

changes and describes new pension possibilities as well as investment

ideas. Among those he includes is the Dow 10 Investment Trust.  It may or

may not work this way for you, but I invested in the Dow 10 Trust,

January, 1995, in the twenty-five months since, my return has been 70.8%.

That is to say, that every one hundred dollars is now worth $170.80, after

only twenty-five months. Call George at Merrill Lynch 1-800-595-4204. Don

Morris



                                Tax Law Changes

       We have seen some big changes in retirement planning and pension

plans.  The Small Business Job Protection Act of 1996 has many provisions

that will affect both small and large businesses.  I will outline a few

here:

Spousal IRA

       The spousal IRA contribution has been raised to $2,000 from $250. 

This means that everyone can contribute $2000 to an IRA every year. (The

old limit was $250.)  Everyone should consider putting away money in an

IRA.  Most people do not make IRA contributions because they are not tax

deductible.  The main benefit on an IRA contribution is not the tax

deductibility, but the long term tax deferral.  The worst enemies of your

savings are inflation and taxes.  The IRA or other tax deferred accounts

eliminate taxes on your savings.  From that point your job is to make good

investment choices with your IRA dollars, so that you can keep your money

growing faster than the inflation rate.  You should look for ways to earn

at least 5% to 8% on your retirement dollars.

Repeal of the SARSEP

       Although the basic SEP plan is still in place, the Salary Reduction

SEP has been put on the shelf.  If you did not have a SARSEP opened by

12/31/96, you can no longer use this plan for your small business. (All

plans in place before 12/21/96 are grandfathered)  However, the have

introduced the 401(k) SIMPLE and the SIMPLE Retirement Accounts for small

businesses.



401(k) SIMPLE and SRA (SIMPLE Retirement Accounts)

       The government has created a new retirement plan for the small

business.  This plan applies to businesses with less than 100 employees. 

SIMPLE (Savings Incentive Match Plan for Employees) allows employee salary

reduction, like the SARSEP, but requires employer matching contributions

to certain levels.  The SIMPLE is a pretty fair plan for a small business. 

They removed the participation and percentage limits on the employer

contribution to a retirement plan in exchange for a small matching

contribution for the employees.  The employer must match the first 3% of

each participating employees' contributions.  The employer does not have

to make contributions for non-participating employees.  The good news is

that the percentage limits on the employer's personal contribution have

been lifted.  The problem with the SARSEP and regular 401(K) is that the

employer could contribute very little, if the employees did not make

substantial contributions.  The cap on the employer's personal

contribution is set at $6000 in the SIMPLE.  This should make them very

attractive to employer's who will have little participation from there

employees or had low average contribution rates.  The only complication is

that each plan must file a form 5500 each year.



Dow Ten Investment Strategy

       I have spent some time on how to save for retirement, here is an

investment to use for some of those retirement dollars.  The Dow Ten

Strategy is very simple and has been very successful over time.  Just take

the 30 Dow stocks and put them in order from highest dividend yield to

lowest dividend yield.  You then buy equal amounts of each of the top ten

yielding stocks and hold them for 12 months.  At the end of a year, you

re-rank the list.  Sell the stock that have fallen off the list and buy

the stocks to replace them.  The results have been well above the Dow

average and the S&P average over the last 10 years.

       If you have any questions please call (800) 595-4204 or write P.O.

Box 841, Frederick, MD 21705



                              From the Bookshelf

       Although the following books are not about our industry, they are

about innovative thinking and creative/intelligent problem solving in

business.

       The first book titled "The Goal" by Elihau Goldratt and Jeff Cox, RC

30293. The book is narrated by Roy Avers and is complete on seven sides.

From the annotation: This guide for improving your business is disguised

as a novel. Alex Rogeau, Division Manager of a manufacturing plant, has a

business and marriage that are both about to collapse. With the help of an

old friend, who offers instructions about creative approaches to improving

productivity and profitability, all is saved.

       This book is about progress, about the creation and acceptance of

improvements - change for the better. It is about a process of ongoing

improvement. This global perspective of organizations can be used to

prevent the decline of manufacturing (even as practiced within our

facilities). Whether the operation is a one-man band or whether there are

many employees, identifying bottle necks is the first step in this process

of improvement. As in our enterprises, inventory control, order

processing, customer satisfaction and management decision making are all

problems which Alex and his colleagues identify and solve. The book is

recommended to learn creative approaches, and problem solving which can be

applied to our business.



Another recommended reading:

       A question often asked or a statement made is, "I want to go into

business, what shall I do?" Those of you who read this and are in business

recognize the many missing ingredients in the question. A book titled,

"The Entrepreneurial Mind" RC 31825, is a good primer for would be

business owners.  Written by Jeffrey A. Timmons, narrated by Phil

Reagensdorf, it is complete on five sides. 

       Annotation: A professor at Babson College and Harvard Business

School writes a how-to book for entrepreneurs based on his experience as

a teacher, researcher and practitioner. Some of the topics covered are

skills that are needed; forming a new venture team; the family business;

the entrepreneur and the law; planning and goal setting; and getting

feedback from others.

       What are the attributes, attitudes, philosophies and strategies of

successful entrepreneurs? How are entrepreneurs born and made better? What

are the myths and realities about the entrepreneur? What competencies must

entrepreneurial managers have to lead an organization? This book offers a

wealth of new information drawn from the venture capital industry and from

research.

       The author puts his money where his mouth is.  In addition to

teaching, he is an advisor and investor in emerging firms.

       Following are some chapter titles which are indicative of the book's

subject matter: The Elements of Success; Start Ups and Early Growth; The

Nature of Success, What Does It Take? What Skills Are Needed? Forming the

New Venture Team; Rewarding the New Venture Team; The Family Venture;

Personal Ethics and the Entrepreneur; Planning and Goal Setting; Shaping

a Personal Strategy; Assessing Entrepreneurial Attributes and Roles.



                            Newsline for the Blind:

       Enclosed as an insert in this issue of the Merchants Messenger is a

brochure describing Newsline For The Blind. This is a wonderful service. 

If you are not familiar with Newsline, read the brochure. See if your

chapter (city or State) can sponsor the service or can find donors to

sponsor it.  Newsline for the Blind is the best way for blind people to

stay current in detail with today's news and information.



                           Vending Machines Tell All

       Charles E. Hamilton, Director of the Business Enterprise Program of

Minnesota, called me the other day, with exciting news.  Rather than me

trying to repeat it, Chuck has provided two letters which are self

explanatory.  Finally, somebody is listening and responding to the needs

of blind vending machine operators.  Presumably we will be able to access

all of the digital information eventually.  Read the letters for more

detail and talk to Chuck at our spring conference.



                   Introduction of the 1996 Series Currency

                      by Gary Lowman, U.S. Secret Service



       There will be no recall or devaluation of U.S. currency already in

circulation. The United States always honors its currency at full face

value, no matter how old.  The new $100 notes, the first in the series,

were introduced into circulation in March 1996. The new designs of lower

denominations will be introduced later, one at a time, at intervals of

approximately six to twelve months. As older notes reach the Federal

Reserve from depository institutions, they will be replaced by the newer

notes.

       This multi-year introduction of the new currency is necessary

because of the time-intensive processes involved in engraving and

producing the new designs.  Sufficient inventory will be produced to

ensure worldwide availability of the new series.

       The Bureau of Engraving and Printing will provide machine

manufacturers with new notes so they can prepare vending machines, ATMs

and other cash-handling equipment. While machine manufacturers will have

to make modifications to accommodate the new bills, they will have a

broader field of machine-readable features from which to choose to

authenticate currency.

       In conjunction with the Federal Reserve, the Treasury Department

will conduct a worldwide public education campaign with two primary

objectives, communicate to the general public that there will be no recall

or devaluation; and provide information about authenticating the new

series to the public as well as central banks, depository financial

institutions, other cash handlers and law enforcement agencies.

       The New Design - The new currency will be the same size and color as

the old notes, with the same historical figures and national symbols. "In

God We Trust" and the legal tender wording also will remain on the new

bills. This continuity will facilitate public education and universal

recognition of the design as genuine U.S. currency-an important

consideration since there will be dual circulation of the old and new

currencies around the world.

       A larger, slightly off-center portrait Is the most noticeable visual

change. The larger portrait will incorporate more detail, making it easier

to recognize and more difficult to counterfeit.  Moving the portrait away

from the center, the area of highest wear, will reduce wear on the

portrait, shifting the portrait off center will provide room for a

watermark, making it harder for counterfeiters to print. The watermark

will depict the same historical figure as the portrait.

       Serial numbers on the new currency will differ slightly from old

currency. The new serial numbers will consist of two prefix letters, eight

numerals, and a one-letter suffix. The first letter of the prefix will

designate the series (for example, Series 1996 will be designated by the

letter A). The second letter of the prefix will designate the Federal

Reserve Bank to which the note was issued. In addition, a universal

Federal Reserve seal will be used, rather than individual seals for each

Reserve Bank.

       The use of a unique thread position for each denomination will guard

against counterfeiting.  Among the other counterfeit deterrent features

are color shifting ink, micro printing and concentric fine-line printing:

       Color shifting ink changes from green to black when viewed from

different angles. This feature will be used in the numeral in the lower

right-hand corner.  The numeral in the lower left-hand corner will

incorporate micro printing, a printing technique using lettering that can

be read with a low-powered magnifier.  Extremely small print ("USA 100" on

the $100 bill) appears as a thin line to the naked eye and yields a

blurred image when copied. On the $100 bill, similar micro printing will

also be used on the lapel of Benjamin Franklin' s coat.

       The background of the Franklin portrait on the $100 note will

incorporate the technique of concentric fine-line printing, as will the

background of the picture of Independence Hall on the reverse side. This

type of fine line printing is difficult to properly resolve on scanning

equipment and to accurately replicate by other means of printing.

       Although all denominations of currency will have security features,

the number of features will vary according to denomination. The $100 note

will have a full package of features, while the $1 note will have fewer

and less sophisticated features.  The basic appearance of all

denominations will-not vary.

History of the Redesign - Until the late 1920s, U.S. currency was

redesigned frequently. There also were several types of notes in

circulation: United States Notes, National Bank Notes, and Silver

Certificates. Since the introduction of the Series 1928 Federal Reserve

Notes, changes in the design, including the use of micro printing and a

security thread in Series 1990, have not affected the overall architecture

of U.S. currency.

       The counterfeit-deterrent features added in Series 1990 were the

first stop in responding to advances in reprographic technologies.

Although these features have proven effective and will be retained,

additional measures are necessary to protect against future threats posed

by continued improvements in copy machines and scanners. The new design,

beginning with Series 1996, is the culmination of a five-year study aimed

at staying ahead of the counterfeiting threat and is part of a continuing

process to protect U.S. currency.

       Authority to change currency design and security features rests with

the Secretary of the Treasury, but Congress has been informed throughout

the redesign process. The New Currency Design Task Force, comprised of

representatives from the U.S. Treasury Department, Federal Reserve System,

U.S. Secret Service and the Bureau of Engraving and Printing (BEP) made

its recommendations to the Advanced Currency Deterrence Steering Committee

which then made recommendations for the new design and security features

to the Secretary of the Treasury. A National Academy of Science (NAS)

Committee on Counterfeit Deterrence Features conducted complementary but

separate studies.

       More than 120 security features were examined and tested, including

those submitted in response to a BEP solicitation, those used in other

world currencies, and those suggested by the NAS. Evaluation criteria

included impact on security, proven reliability, ability to be

manufactured in large quantities, and durability over time. Among the

features evaluated were holograms, color shifting films, thread

variations, color patterns, and machine-readable enhancements.

       The strategy of the Design Task Force is to incorporate as many

features as are justifiable. The new features have proven successful in

other countries as well as in test environments at BEP and the Federal

eserve. The Design Task Force will continue to see and test new security

features as technology further evolves.

       Cost - The total cost of developing the new design was approximately

$765,000. Included in this cost was funding for the National Academy of

Science Study -- $265,376. Another $500,000 was spent to purchase test

quantities of features and carry out internal evaluations.

       Current notes cost 3.7 cents each, and BEP produces about nine

billion notes each year. Security enhancements will increase the cost by

a fraction of a cent. The Federal Reserve System is funding the

development and introduction of the new currency through earnings the

Federal Reserve receives from interest on its holdings of U. S. government

securities and on fees charged to depository institutions for providing

services such the processing and clearing of checks.



                       NFB LEGISLATIVE AGENDA FOR 1997:

       The following important information was distributed at the

ashington Seminar.  These three points were the theme and purpose for the

hundreds of Congressional visits that were made espousing these positions. 

You can help secure this needed legislation by making yourself familiar

with each of these issues.

       Public policies and laws affecting blind people have a profound

impact on our entire society. Most people know someone who is blind. It

may be a friend, a family member, or a co-worker on the job. The blind

population in the U. S. is estimated to exceed 700,000. Fifty thousand

Americans become blind each year. By themselves, these numbers may not

seem large, but the social and economic consequences of blindness directly

touch the lives of millions. In the form of its social consequences and to

some extent its economic consequences, blindness affects virtually

everyone.

       Public policies and laws that result from misconceptions about

blindness or lack of information are often more limiting than the loss of

eyesight itself. This is why we have formed the National Federation of the

Blind. The Federation's leaders and the vast majority of the members are

blind, but membership is open to anyone who wants to join in the effort we

are making to win understanding and equality in society.  Our priorities

for the first session of the 105th Congress reflect an urgent need for

action in three specific areas of vital importance to the blind this year.



(1) Congress should restore work incentive equity for blind individuals by

re-enacting the identical earnings exemption threshold for blind and

senior citizen beneficiaries under title II of the Social Security Act. 

       This proposal seeks to reduce (or eliminate altogether) the work

disincentive of the Social Security earnings limit as it now affects blind

beneficiaries. In spite of a law passed in 1977 creating a logical and

identical earnings exemption threshold for blind people and retirees,

beneficiaries who are blind were singled out for exclusion from a series

of seven specified annual increases in the exempt amount mandated under a

new law solely for seniors. This means that a lower earnings limit for the

blind--S12,000 as compared to $13,500-is now in effect. By 2002, when the

exemption for seniors becomes $30,000, the lower limit created by Congress

for the blind in 1996 will be less than half the amount allowed for

seniors unless the law is changed.

       People of working age who are blind must not be forgotten now that

the earnings exemption for retirees has been raised. Just as with hundreds

of thousands of seniors, their positive response to the higher amounts of

earnings allowed will bring additional revenues into the Social Security

trust funds. The chance to work, earn, and pay taxes is a constructive and

valid goal for senior citizens and blind Americans alike. This is why the

statutory linkage of the exempt earnings amounts which existed under the

law for almost twenty years should be restored. For more details and an

explanation of the need for this legislation, see the fact sheet entitled

"WINNING THE CHANCE TO EARN AND PAY TAXES: HOW THE BLIND PERSON'S EARNINGS

LIMIT IN THE SOCIAL SECURITY ACT MUST BE CHANGED."



(2) Congress should amend the Individuals with Disabilities Education Act

(IDEA) to include provisions for strengthening programs of Braille

literacy instruction. 

       This can be done by enacting Braille literacy for blind persons

provisions as part of the Individuals with Disabilities Education Act

(IDEA). Goal Five of the National Education Goals declares that by the

year 2000, "Every adult American will be literate .... "For blind people

this means having the ability to read and write in Braille at a level of

proficiency which makes performance on equal terms possible. Without

legislative change, today's blind children will not be able to meet this

national goal.

       As many as 34% of the blind students enrolled in elementary and

secondary schools in the U.S. during the last school year were classified

as "non-readers." Fewer than 10% read Braille. Current federal and state

laws require that an appropriate educational opportunity must be provided

to children with disabilities. Each such child is to have an individually

planned program of instruction to meet identified needs, but growing

illiteracy for blind children has been the result. Remedial federal

legislation, similar to laws now enacted in 28 states, can help to reverse

this trend. For more details and an explanation of the need for this

legislation, see the fact sheet entitled "BRAILLE LITERACY AND THE

INDIVIDUALS WITH DISABILITIES EDUCATION ACT."



(3) Congress should enact legislation this year to reauthorize the

existing federal/state program of vocational rehabilitation. 

       This program, as currently authorized under title I of the

Rehabilitation Act of 1973, is now in its final year before action must be

taken to continue grants to states for serving persons with disabilities,

including people who are blind. During the 104th Congress, vocational

rehabilitation was among the programs first included but later removed

from a proposed job training, education, and employment system

consolidation bill. Nonetheless, with the program's reauthorization due

for consideration this year, the possibility of consolidation with other

programs has been discussed and could be proposed again.

       Vocational rehabilitation has been recognized as a specific

responsibility to be shared by the federal government and the states for

77 years. The mixture of this program (intended to address essential and

complex disability-related needs) with generic job training, education,

and employment programs for the general population is a fundamentally

flawed concept. For someone who becomes blind in mid-career, unemployment

is only one of many consequences. By comparison, however, the need for

special help to deal with blindness is by far the most profound initial

problem. This is why vocational rehabilitation services should continue to

receive dedicated federal funding to support a targeted and identifiable

service delivery system. For more details and an explanation of the need

for reauthorization see the fact sheet entitled "BLINDNESS,

REHABILITATION, AND THE NEED FOR SPECIALIZED PROGRAMS."

       People who are blind are asking for your help in securing positive

action by Congress in the areas outlined here. Legislative proposals will

be offered to achieve each of our specific objectives. Many priorities

confront this session of Congress, and the needs of the nation's blind are

among them. By acting on these priorities in partnership with the National

Federation of the Blind, each member of Congress can help build better

lives for the blind both today and in the years ahead.

       The following is the text of a letter generated by Congresswoman

Barbara B. Kennelly of Connecticut.  It was sent to all Members of

Congress. Restore Fairness and Equity to the Blind! 



January 29, 1997 



Dear Colleague: 



       Since 1977, the linking of the blind to senior citizens for the

purposes of the Social Security Earnings Test has assisted in helping many

blind individuals become self-sufficient and more productive. This is no

longer the case. Beneficiaries who are blind were singled out last year

and excluded when Congress raised the earnings limit for seniors. This

means that a lower earnings limit for the blind--S12,000 as compared to

$13,500-for seniors is now in effect. By 2002, when the exemption for

seniors becomes $30,000, the lower limit created by Congress for the blind

in 1996 will be less than half the amount allowed for seniors.

       Blindness is often associated with adverse social and economic

consequences. It is difficult for blind individuals to find sustained

employment or for that matter employment at all. The blind want to work

and take pride in doing so. Our action nearly twenty years ago provided a

great deal of hope and incentive for blind Americans. We should not roll

back the successes of the past two decades. Therefore, I plan to introduce

legislation next week to re-establish the link between the blind and

senior citizens for the Earnings Test which we were so wise to do in

1977.  If you would like more information or would like to become an

original cosponsor to my legislation, please contact Adam Rak in my office

at (202)225-2265.



Sincerely,

BARBARA B. KENNELLY

Member of Congress





                              Things to Remember:

       In 1997 Membership Dues for the NFB Merchants Division are now due

and payable.  Dues are $10.00.  Please remit to Don Morris, Treasurer,

16547 Old Emmitsburg Road, Emmitsburg, MD 21727-8927. Do it now while you

think of it.



       Urgent!!!!!  Division Spring Conference April 2-3, 1997 at Harrahs,

Las Vegas, Nevada.  1-800-228-3427 - Group Code 103 NFBM. See Charlie's

article elsewhere in this Messenger for specific details. DON'T DELAY. 

Merchants Division presents national seminar New Orleans, LA, Sunday, June

29, 1997 9:00 a.m. - 11:30 a.m.  Don Bell, president, Management

Management, a long time Federationist and nationally recognized public

speaker and motivator will entertain, enlighten and educate.  Don will

raise your sights and your spirit and help you add purpose to your life. 

Seminar fee $20.00.  See article elsewhere in this issue of the Messenger.



       DIVISION RAFFLE TICKETS available.  Please contact Wayne Shevlin,

919-847-3470; Charles Allen, 502-875-2436; or Don Morris, 301-447-2795; to

secure raffle tickets for our annual $1,000 prize awarded at the National

Convention Banquet.  Proceeds from raffle ticket sales go a long way in

covering the costs of the Messenger Newsletter and other division

expenses.  Free Booth Space Available At National Convention.  The space

that's free and available to you is behind the Merchants Division table. 

The space is available for you to sell raffle tickets, Snak-Paks, and

flowers.  Its also a great place to meet and greet fellow Federationists

and to give free soda-pop.  Please contact Joe Van Lent or Charles Allen

if you are willing to make time for this important project.  Try it,

you'll like it.



       Snak-Pak Items NEEDED

       When you pack for your trip to New Orleans don't forget to include

a 24 or 48 count package of candy, gum, mints, or other such product to

include in the SNAK-PAKS.  Sugar free items are very popular.  Contact Don

Hudson, Colorado as soon as you arrive in New Orleans so your contribution

to the SNAK-PAKS can be included early on.  Also let Don know if you're

willing to help assemble SNAK-PAKS.



                                  NAMA REPORT

                               By Charles Allen



       Attending the National Automatic Merchandising Association's 50th

Annual Convention and Trade Show in St. Louis last November was definitely

a highlight of 1996 for me.  NAMA provided Mark Russell as the speaker at

the opening meeting.  Hearing his political satire was worth the price of

membership.  Accompanied by my wife Betty, I spent hours looking at new

developments in the vending industry.  Crane National Vendors has come out

with a fresh look in the design of vending machines.  Their "Millennia

Styling" line has a rounded front similar to can drink machines.  Crane

also has developed a machine that serves both hot and cold drinks. The

"Twin Drink Center" has four versions making different combinations of

fresh-brew and freeze-dried coffee with bag-in-box cold drink and

conventional cold drink.  All of these options can offer regular and

decaffeinated coffee, tea and hot chocolate plus options for cappuccino,

espresso or caffe latte.  This machine can also vend four carbonated cold

drinks plus sparkling water and ice water; options include iced coffee,

iced tea and iced cappuccino. If that were not enough, the machine offers

the option of three cup sizes.  It allows the vendor to change the product

to match a change in customer demand.

       Do you remember our conference in New Mexico when Larry Posont found

the bubble gum machine of his dreams?  Now you can get a combination of

machines that will vend bubble gum and candy.  This combination has a

number of vertical rectangular units that resembles the Sears Tower in

shape if not in size.  A number of rounded units can be attached to these

vertical units.  You can call Machine-O-Matic Limited, located in Ontario,

Canada, at 800/265-6772(USA) for more information.

       If you have customers who want to buy fruit. Royal Apples has a

machine, the Nutri-Matic 602, that vends fruit - apples, oranges and

pears.  Its six columns hold approximately 165 servings.  Customers can

look through its glass front to make a selection.  For more information,

call 616/940-2744.

       A machine I truly liked is from California Fruit and Vending -

Captain's Pop Hot Air Popcorn.  The machine vends a folded container.  In

the container's side pockets are two packets, one of salt and the other of

canola-butter flavoring. The customer opens the container and places it

under a spout which fills it up with fresh, hot, air-popped popcorn.  The

machine requires very little maintenance.

       We need to be aware of computer-linked systems which are becoming a

part of our vending business.  Kaba's Telak electronic lock system is IBM

compatible and would let you know every time a machine is opened. A

Windows for Vending system would allow an owner or a Business Enterprise

Program to track the movement of a machine from one location to another. 

The system can automatically calculate commissions, taxes or set aside for

any payment period.

       Prepaid cards for vending machines and cafeterias are available as

well as prepaid phone cards.  This still does not make currency and coins

obsolete.

       Do you have customers who would like to surf the Internet on their

breaks?  Call Net Vend America at 800/939-5374.  The customer buys time on

a computer pay terminal.

       Finally, I heard about the potential for the development of a new

United States one dollar coin.  In Canada, vendors may have to prepare for

a two dollar coin.  This NAMA convention could be described as one

emphasizing combinations, computers and coins.



                              Because You Asked 

       If you wish to set up an account with Vendors Supply of America,

call 1/800/671-0022.  Charles is at ext. 1771; Linda, ext. 1786; Troy,

ext. 1774.  There are no local office telephone listings in the VSA flyer. 

These folks should be able to tell you if VSA delivers to your location. 



               1997 National Federation of the Blind Convention



       Date: Sunday, June 29 -- Saturday July 5.

       Place: Hyatt Regency New Orleans, 500 Poydras Plaza, New Orleans,

Louisiana

       Hotel Reservations: For room reservations call the National Center

at (410) 659-9314 or write to National Convention, National Federation of

the Blind, 1800 Johnson Street, Baltimore, Maryland 21230.  Reservations

will be taken on a first come, first served basis, and no reservation will

be valid unless it has been made through the National Office of the

National Federation of the Blind.  Reservations made through the hotel are

not valid and will not be honored. The reason for this policy concerning

reservations is that we have only 1,100 rooms in the Hyatt Regency, so

after the 1,100 rooms are gone, the overflow will be placed at another

hotel. In order to make the situation workable and to be certain that we

get the maximum number of rooms at the Hyatt, we are handling reservations

in the National Office of the Federation. 

       Room Deposit: A $40 deposit is required when you make your room

reservation. Checks, money orders (made payable to: National Federation of

the Blind), and credit card numbers are accepted. The credit card account

will be charged immediately. If a reservation is canceled prior to June 1,

1997, half of the deposit will be returned. After that date deposits will

not be returned. Exceptions may be made in certain demonstrated emergency

situations.

       Hotel Room Rates: One in a room, $40 per night; two in a room, $42;

three in a room, $44; and four in a room, $46. There is also a tax of 11

percent plus $3 a night. There will be no charge for children under 12 in

a room with parents as long as no extra bed is required. If you want to

come a few days early or stay a few days late, convention rates will

apply. As in years past, these room rates apply only for those who

register for the NFB Convention.

       Convention Registration: Registration for the convention is $10 per

person and takes place throughout the convention between Monday, June 30,

and Saturday, July 5. We do not offer pre-registration. You must register

in person at the convention. Anyone who does not register for the con-

vention will be required to pay regular hotel rates. Persons who register

are eligible for door prizes. Drawings for door prizes are made throughout

the general sessions and the banquet.

       Accommodations: The elegant Hyatt Regency New Orleans is located

just eight blocks from the French Quarter. It features two towers--

Poydras, with 27 floors; and Lenai, with 11 floors. The huge room on the

third floor of the Poydras Tower will easily accommodate both the general

sessions and the exhibit hall.

       In addition to a swimming pool on the seventh floor, the Hyatt also

features several restaurants, cocktail lounges, and a large shopping mall.

A shuttle service to and from the French Quarter will be provided to hotel

guests during the National Convention.

       Convention Schedule:

       Sunday, June 29--seminars for parents of blind children, blind job

seekers, and vendors and merchants; several other workshops and meetings;

and special activities for children and youth.

       Monday, June 30--convention registration, exhibit hall open all day,

first meeting of the Resolutions Committee, other committees, and some of

the divisions.

       Tuesday, July 1--meeting of the Board of Directors (open to all),

division meetings (including the annual meeting of the National

Organization of Parents of Blind Children, 1:00 p.m. to 5:00 p.m.),

committee meetings, continuing registration, and exhibit hall open all

day.

       Wednesday, July 2--opening general session, evening gala, and

evening IEP Workshop for Parents and Advocates.

       Thursday, July 3--general sessions, tours (interesting ones

throughout the New Orleans area), and afternoon cane travel/orientation

and mobility workshops for parents and kids.

       Friday, July 3--General sessions and banquet.

       Saturday, July 4--General sessions and adjournment.



                         Attention All Federationists

       Once again the Merchants Division takes great pride in presenting a

program conducted by Don Bell.  Bell, of Des Moines, Iowa is president of

Management Management.  He is a national recognized speaker and motivator. 

When Don last spoke at our national convention seminar more than 200

people attended.  The room was literally standing room only.  Don will

entertain you and at the same time energize and motivate you.  His

presentation will follow the theme of Personal Growth. "A Positive View

for a Positive You." In this up-beat presentation, Don Bell helps people

examine their attitudes.  He looks at three things that affect self

concept and shows how to control all three.  You will learn to discover

and build upon your strengths and to help associates, family and friends

build upon theirs.  You will learn to use two disciplines for personal

growth.  What we want sometimes is not what we get.  The discipline of

Personal Mastery lets us continually examine what we want in life, weight

our wants against the reality of life, then bring the two closer into

balance.  Mental Models are ideas we have about the way the world works

that are often assumptions rather than hard facts.  We learn to identify

assumptions so they don't control our lives.

       This worthwhile presentation will commence at 9:00 at the New

Orleans Hilton.  Please check the pre-convention agenda for the room

location.  Tickets will go on sale at 8:30 a.m.  The program will begin

promptly at 9:00 please come early so that all can be accommodated. Come

and share with Don, you will have fun and a few laughs in the process.



                               MONETARY MUSINGS

                               By Charles Allen



       Nestle continues to use white chocolate in developing new products. 

Look for a white chocolate Crunch bar coming out soon.  

       H&L Yogurt Products offers a Kosher certified Wild Rose Yogurt Nut

and Fruit Bar (containing raisins, peanuts and sunflower seeds) and a Wild

Rose Tropical Fruit and Nut Bar (containing peanuts, papaya, pineapple and

almonds).  This excellent product costs about thirty cents wholesale and

comes in a 6/24 count case.  For further information, call 800/330-2151.

       Frito-Lay, Inc., has developed an excellent line of low fat potato

crisps that now dominates the market.  The first low fat crisp, Baked

Lay's Original, was so popular that the company had difficulty keeping up

production to meet the demand.  Frito-Lay has added two more flavors -

Baked Lay's KC Masterpiece and, most recently, Baked Lay's Sour Cream and

Onion. Frito-Lay is a company that is flexible enough to adjust its

product to meet the changing demands of its customers.

       Look for a new line of "Peter Pan" snack crackers in April from

Frito-Lay.Cracker Jack is now available in two ounce bags which are good

for use in vending machines.  Their two flavors, Original and Butter

Toffee, are also available in a fat-free version.  Cracker Jack removes

the peanuts from the fat-free versions, but leaves the flavor and the

prize.

       Are you looking for an individual size serving of dip to go with

chips or raw vegetables?  Portion Pak, Inc., has three flavors packed in

two ounce cups:  Salsa Del Sol Mild Salsa; Salsa Del Sol Jalapeno Flavor

Cheese Sauce; and Taste Pleasers Gourmet Cheddar Cheese sauce.  The two

cheese dips can be micro waved.

       Sauces Unlimited of San Antonio, Texas, has Alamo Street salsa in

four ounce cups as well as individual servings of Picante sauce.

       If you want sugar and lemon in your tea, pour in a packet of Dixie

Crystals lemon-flavored Quick'n Sweet sugar with CrystaBlend sweetener. 

You can also get these individual sugar packets with a peach flavor or a

raspberry flavor.  What a convenient way for us to serve plain iced tea

and allow our customers to choose the flavor.

       Land O Lakes has introduced Cocoa Classics premium hot cocoa mix in

single service packets.  Combined with chocolate are twelve excellent

flavors including cinnamon, mint, raspberry, French vanilla and black

cherry.

       The Snack Factory from Princeton, NJ, has four fat-free snacks which

have excellent flavor:  pretzel puffs, caramel popcorn, toffee coated

pretzel nuggets and maple glazed rice puffs.

       You are invited to submit information about new machines or

products.  Do you have a favorite machine (brand, type) that works

exceptionally well?  Those of you in cafeterias should think about recipes

that your customers particularly like.  Share information!



                               Colorado Lawsuit

       The following is an update regarding the current status of the

lawsuit between three blind vendors, including Merchants Division Board

Member, Don Hudson v. GSA and a negative arbitration decision which

permits destructive competition between licensed blind vendors and foreign

registered corporations.  Don Hudson from the Colorado Vending Program is

one of the vendors whose allocated space is less than 250 square feet

required by the Randolph Sheppard Act.  But that's only one of the

problems.  GSA has permitted a non-program cafeteria to sell items in

direct competition with Don even though the items are defined as part of

Don's facility.   Predatory practices and pricing make competition not

only unfair but destructive.

       Jim Chalat, Esq., the attorney representing Don Hudson and the other

blind vendors, is no newcomer in the fight to secure vendors' rights.  Jim

Chalat is the attorney who represented Don Hudson and Richard Jack as well

as blind vendors across the country when they and the NFB defeated the

United States Post Office intention to split one vending facility and

install two blind vendors.  The NFB as always supported our cause in that

important case and this one too.  Mr. Chalat sent us the following

regarding the current case.



For immediate release:

       Colorado blind vendors and the Department of Justice have agreed to

a temporary truce.

       An appeal filed by the Colorado State Licensing Agency (Business

Enterprise Program) has been temporarily stayed pending settlement

negotiations. The temporary truce was called after three blind vendors

filed a motion to join the case which had originally been filed and tried

before an arbitration panel by the Colorado Attorney General. Because

their interests were central to the case, and believing they should be

named parties with separate representation in court, DON HUDSON, VERNEATA

ENGLAND, AND, MICHAEL LANG sought, and were granted permission to join the

lawsuit.

       The lawsuit started when Business Enterprise Program filed a

complaint with the Secretary, pursuant to the Randolph-Sheppard Act,

against the General Services Administration. The complaint requested an

arbitration, and alleged that Hudson, England and Lang were being,

subjected to unlawful, direct competition, from private vending facilities

at the Denver Federal Center.

       An arbitration board was convened and the arbitration was conducted

over two days in February 1996. The arbitration board gave its opinion

June 1, 1996, and concluded that the Act did not prohibit the private

vending facility operators at the Denver Federal Center to directly

compete with the blind vendors and to sell identical products as the blind

applicants.

       Business Enterprise Program through the Attorney General, filed a

petition with the United States District Court to review the order of the

arbitration board.

       Hudson, England and Lang were permitted to intervene, and we intend

to argue that the Randolph-Sheppard Act prohibits destructive competition

by private vendors against licensed blind vendors. Essentially, we argue

that the Randolph-Sheppard Act did not contemplate that a blind vendor

would be given a priority to operate, and then be subjected to destructive

competition, direct or indirect, such that the vendors inventory can be

duplicated and marked down by an adjacent private vendor with potentially

much greater capital, needing smaller profit margins, or short selling

vendors' products in order to attract customers for other products with

higher profits.

       The GSA will conduct a feasibility study of the cafeteria and food

services at the Denver Federal Center, a large federal reservation in

Lakewood, just west of Denver. Once the feasibility study is complete, we

will try to settle the case within the confines of the proposed

realignment and reconfiguration of cafeterias, and vendors. If we cannot

settle the case, then we will go to court, and argue that the arbitrators

abused their discretion in finding that Blind Vendors' priority to operate

food service facilities were secondary to the GSA's contract rights to

favor a foreign owned corporate food service operator.



                 CHANGES IN TAX LAW AFFECTING HEALTH INSURANCE

                             AND MEDICAL EXPENSES:

       Reprinted with the permission of Hodes, Ulmsn, Pessin & Katz, PA. Of

Columbia, Maryland, 410/470-2000 from their newsletter LEGAL FOCUS.



                           Simple Retirement Plans:

       Small businesses that normally employ 100 or fewer employees that do

not maintain another qualified retirement plan may establish a savings

incentive match plan commencing in 1997. This could be in the form of

either an IRA for each eligible employee or part of a 401 (k) plan.

Employees may make elective contributions up to $6,000 per year and

employers must make matching contribution.

       An employer contribution is required every year under a SIMPLE.

Employee contributions are based on a percentage of pay. The employer

contribution must either be a matching contribution of 100% of the first

3% compensation contributed by the employee or a non-matching contribution

equal to 2% of compensation of all employees eligible to participate in

the plan who receive at least $5,000 per year in pay. All contributions

are 100% vested.

       For taxpayers who file a joint return where one of the spouses has

no compensation, the maximum deductible amount is $2,000 for each spouse

if the combined compensation for both spouses is at least equal to the

contributed amount. This increases the limit from $250 to $2,000 for the

non-working spouses.

       Group health plans (including HMO Plans) will be required to expand

the availability of coverage for plan years beginning after June 30, 1997.

These new requirements are incorporated into the Internal Revenue Code as

well as ER. ISA and the Public Health Services Act. The new rules do not

apply to several types of plans such as disability income insurance,

limited dental or vision benefits, long term care insurance or hospital

indemnity plans and Medicare supplemental coverage under a separate

policy.

       Limitations on permitted restrictions for pre-existing conditions

are adopted. In general, pre-existing condition limitations will be

restricted to newly covered employees and dependents and are limited to

conditions that were treated or diagnosed in the 6 month period prior to

enrollment. After the initial 12 months or (18 months for late enrollees)

no new pre-existing condition limit may be imposed. Health insurers must

renew coverage for groups and individuals so long as required premiums are

paid. The 12 month period can also be reduced by counting certain prior

coverage toward the exclusion period.

       Work Opportunity Credit

       The former targeted jobs credit has been replaced with the "work

opportunity tax  credit".  An employer may elect this credit with respect

to wages paid to individuals in seven targeted groups.  This applies to

wages paid between October 1, 1996 and October 1, 1997.  The credit is

generally equal to 35% of qualified wages.

       Health Insurance

       The percentage of health insurance that self-employed individuals

may otherwise deduct against gross taxable income has been raised as fol-

lows:

Year                % Deductible

1997                45%

1998-2002           50%

2003                50%

2004                60%

2005                70%

2006 & Beyond       80%



Penalty Free Withdrawals from IRAs for Medical Expenses & Medical Insur-

ance

       Beginning in 1997, taxpayers may receive early distributions from an

IRA for medical expenses of the taxpayer, his or her spouse or dependents

without paving a 10% penalty, provided that such medical expenses exceed

7.5% of the taxpayer's adjusted gross income. Early distributions from an

IRA used to pay medical insurance for the taxpayer or the taxpayer's

spouse can also be withdrawn without incurring the 10% penalty, but only

if the taxpayer has received unemployment compensation for the preceding

