The Indianapolis Star from Indianapolis, Indiana • Page 25

The Indianapolis Star Tuesday, October 10, 2000 In New York trading Monday: NYSE TABLE 2 NASDAQ TABLE 3 1 MUTUAL FUNDS 4 Dow Jones industrials Nasdaq 30-year Oil Composite 500 T-bonds (Nov. bw. crude) I 3,355.56 1,402.03 Yield: 5.85 $31.86 usiiiess 10,568.43 InfoLlne: 624-INFO (4636) Online: www.starnews.com mm AJ Man who was selling suspect Kenneth Payne home to Heartland fraud loses property for now. "They didn't tell us anything," he said. "They just took it.

We haven't seen a single thing from the court." Federal officials involved In the case could not be reached for comment Monday because their offices were closed for Columbus Day. The government also took over a second house in Carmel last week where Payne's estranged wife, Bet-tie Payne, was living. Kenneth Payne agreed to surrender the houses as part of a fraud lawsuit that the Securities and Exchange Commission brought against Heartland on Aug. 9. The SEC alleges that Heartland and several related companies ran an elaborate "Ponzi scheme," using money from new investors to pay the returns promised earlier ones.

The U.S. Attorney's office has accused Payne of laundering $40 million that the companies collected from customers but never actually invested. Payne spent most of September as a fugitive. He failed to showup at a meeting with federal Investigators on Sept. 6 and was on the run for three weeks.

Payne was arrested Sept. 28 after U.S. marshals found him in Cancun, Mexico. He was immediately deported to the United States and is currently See SEIZURE Page 5 By Christopher Carey STAFF WRITER Mike Mitchell never Invested any money with Kenneth R. Payne, the jailed president of Heartland Financial Services Inc.

But he counts himself among Payne's victims. 'f tj 1 1 i v' a i i ii i miium ii if vamp A 5 The federal government has taken custody of a house in Geist that Mitchell was selling to Payne under an installment contract. Mitchell said Monday he was surprised by the move and already has incurred several thousand dollars In legal fees trying to find out why It happened. ROSELYN'S v. 1 1.

1- ill i i rt RETURN At' ft, --r' I 1 I i- -a kit- -r' s. rtsSp-. 5n. Ml t'l v'4-VSv Thomas P. Wpan Techfalloff benefits Lilly share price Anyone testing the truth of the phrase, "This, too, shall pass," need look no further than the stock market.

Shares of generic drugmaker Barr Laboratories surged when it won a patent battle with Ell Lilly and Co. in August. Lilly got plastered. But since the second week of September, the companies' stock charts have traded places. After slipping below $70 a share, Lilly has climbed nearly 20 percent.

Barr Labs, which traded above $75 after Labor Day, has shed about 20 percent of its value since then. Lilly has several promising new drugs in the pipeline, analysts say. But the recent good news for its share price has less to do with a promising future than with a volatile market, says Michael Krensavage, who follows Lilly for Raymond James Financial. With tech stocks imploding, investors are searching out safer havens, he says. "They've turned to pharmaceutical stocks, which tend to have more steady growth." That's despite the uncertainty that comes from the presidential campaign debate over Medicare drug coverage for senior citizens.

Investors turned skittish on Barr, another analyst says, because of doubts about profits after Barr brings its generic Prozac to market. Environmental goals Toyota puts an environ- mentally friendly spin on plans to run its North American plants, including the Indiana assembly plant at Princeton, leaner and cleaner. Making no Ironclad promises, Toyota on Monday offered goals to be reached by 2005: Cut electricity, natural gas and water use by 15 percent. Reduce paint solvent emissions by 30 percent. Slash hazardous wastes going to landfills by 95 percent.

After spending for new equipment, though, the Japanese carmaker acknowledges the changes could create considerable savings. Spokeswoman Barbara McDaniel says Toyota has no estimates of costs or savings. Here's one option Is there no limit to Baby Boomer determination to make everything pleasurable? Apparently not. Even in death. A Batesville Casket Co.

survey just released says the typical boomer wants friends and family to approach his funeral as an occasion for celebration and laughter. That apparently means a thoughtful remembrance. (It doesn't mean hoisting a mug because you're the beneficiary of a market-fattened stock account.) For Batesville Casket part of Hillenbrand Industries the business challenge lies In turning boomers' tastes into earnings. Those prospects are squeezed by growing demand for cremation and even burial at sea. Enter Batesville's Options division.

Its products include a $300 biodegradable sea urn that disintegrates within five minutes. Bon voyage. Cummins workhorse Try dropping this power plant in a Formula One body. At a mining Industry trade show Monday in Las Vegas, Cummins Inc. unveiled the largest diesel engine available In the industry.

Here now is the QSK78, by the numbers Cylinders: 18. Liters of displacement: 78. Horsepower: 3,500. Vroom, baby, vroom. Contact Thomas P.

Wyman at (317) 444-6424 or via e-mail at thomas.wymanstamews.com Eye-catching display: Margaret Lauk, food service manager at the new Kroger store on Pendleton Pike, stocks a special table with Roselyn treats. Roselyn's familiar blue-and-white logo attracts many former customers of the bakery chain. Sales soar as products gain trust Yahoo! rolls out telephone portal Company holds off on voice-activation features because of doubts over quality of technology. 1 By Bruce Meyerson ASSOCIATED PRESS NEW YORK Flexing its muscle on a new Internet battlefield, Yahoo! Inc. is launching a free telephone service that enables users to call and have their e-mail, news and other information read to them.

The Initiative, being announced today, pits Yahoo! against America Online and some high-profile startups In a race to "voice-enable" the Web so people who are not near a computer still can get online information. The urgency to introduce listening-based Web access was evident in Yahool's decision to roll out its telephone portal without any of the speech-recognition or voice-activation features offered by Tellme and BeVocal, pioneers of the new niche. In other words, users of the new Yahoo! portal for now will be required to enter numbers on a touch-tone phone keypad to select the information they want to hear. AOL has yet to add a telephone-based version of its Internet service, but recently acquired a startup voice portal named Quack and owns a stake In SpeechWorks, a developer of speech-recognition technology. One major advantage AOL and Yahoo! boast is that their users already have online profiles with personally tailored information preferences, making it unnecessary for those people to re-create everything from scratch for the telephone versions of those services.

"I think people may try out TellMe. But if they have very extensive profiles someplace else, the novelty may wear out," said Megan Gurley, a Yankee Group researcher. "I don't want to set something up again. I'd much rather use Yahoo! What the large portals are banking on is that their relationship will garner more users." As part of the theme of the announcement, Yahoo! will unveil a new service, powered by Net2Phone, that will allow online users of instant messenger to make free calls through a computer to any phone nationwide. Like competing telephone portals, the new "Yahoo! by Phone' service has a toll-free number, though many of the more likely users those calling with mobile phones still would be expending minutes from their calling plans.

The Yahoo! service also can take voice mall messages at the same phone number. Yahoo said it decided to hold off on voice-activation features because it still was dissatisfied with the quality of speech recognition through the latest technology. Share your credit data horror stories Have you been denied credit because of negative information in your credit report? Has your credit report contained inaccurate information about you? Tell us your experiences by calling InfoLine at (317) 624-4636 and entering category 4013. A reporter may contact you for a story. Partnerships with Chicago bakery and Kroger rescue company, expand sales and satisfy most former fans.

By Dana Knight STAFF WRITER After shutting down his family-owned bakeries in the aftermath of serious health violations, Roselyn Bakeries' President Jeffrey A. Clark resigned himself to the inevitable fact the days of zebra squares and sweetheart coffeecakes were over. The tarnished reputation of his 56-year-old business would follow the Roselyn name most thought forever. And the Idea that the products would find more success after last year's July shutdown was nearly unthinkable. But it happened.

Clark said it took a carefully devised plan that started with the obvious hiring a bakery with a squeaky-clean reputation. Then, he clinched a deal with a grocery chain, offering customers a different and convenient venue to buy the same product. In its fifth month of sales at Kroger, Roselyn Recipe is being gobbled up by consumers and doing so well that the Chicago bakery that produces the goods is set to hire an entire assembly line devoted to Roselyn products. "The people who liked Roselyn were very, very loyal people," said Kroger spokeswoman Sonya Saunders. "The people who liked it then still buy It now and will forever." See ROSELYN Page 6 Staff Photos Frank Espich Roselyn's history 1943: John S.

and Mildred Clark opened their first bakery at Meridian and 22nd streets. 1943-1999: Nearly 40 Indiana stores operate 56 years as leadership is shared among Clark family. John R. Clark takes the reins in 1976 and adds another 10 bakeries. John Clark's son, Jeff, operates stores in the 1990s.

July 1, 1999: State closes Roselyn's baking plant at 2425 E. 30th St. for health violations. July 5,1999: State inspects and clears plant to reopen. July 6,1999: Roselyn's 36 central Indiana stores reopen.

Aug. 6, 1999: Roselyn ceases operations, saying adverse publicity had caused severe financial losses. Aug. 31, 1999: More than 20 former Roselyn sites are auctioned off. Two others are sold.

May 11, 2000: Roselyn announces it will resume operations, now named Roselyn Recipe, by hiring Heinemann's Bakeries of Chicago to bake its goods and sell them through Kroger stores. September 2000: Roselyn reports sales in Kroger stores are higher than in Roselyn Bakeries. Roselyn Recipe goods are sold in 113 Kroger stores in the Midwest. Same family touch: Chicago's Heinemann's Bakery has workers instead of machines plop dollops of icing on Roselyn brand tea cookies. New businesses can't shake that at bakery sites familiar look take away that sign," said Michael De-Courcy, a Franklin lawyer who purchased the former Roselyn site at 99 W.

Jefferson St. "I was Just trying to make that Roselyn look go away." DeCourcy's store was one of 19 former Roselyn buildings auctioned off last year after Roselyn shut down its 56-year-old business. Today, the sites are filled with everything from cell-phone stores to auto dealers to a shop devoted entirely to Bob By Dana Knight STAFF WRITER Customers wouldn't have forgotten Roselyn Bakeries, even if the goods hadn't reappeared on store shelves. How could they? The blue signs bearing the Roselyn name still twirl at many sites. And the buildings, even the ones filled with new businesses, have the uncanny and familiar look of the former outlets.

"I put up a raised flower garden and paid $1,000 to have someone come and File Photo See LOOK Page 6 The old Roselyn Bakery sign at Pennsylvania and Washington. 1 1.