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Show Pge SO - THE HERALD, Provo, Utah, Thursday. March 17, 1983 Business Saudi Arabia Implements Agreement by Oil Cartel - (UPI) Saudi Arabia has cut OPEC's benchmark crude oil by $5 a barrel in two separate steps and implemented the oil cartel's agreement to lower its base price for the first time in history, industry sources said LONDON Wednesday. An industry official said OPEC's other Persian Gulf producers had been waiting for the Saudis to take the lead and would announce their own price drops. OPEC's base price is pegged to Saudi oil, which had been at $34 a barrel since November 1981. "The Saudi price reduction comes in two stages, the first backdated to Feb. 1 which takes the price down by $4 to $30 a barrel," said a Western oil company executive who asked not to be identified. "In the second stage, the Saudi price comes down another $1 a barrel, effective from Marc l 15," he said. The Organization of Petroleum Exporting Countries agreed Monday to slash its base price 15 percent to $29 a barrel from $34 a barrel to prevent a global pricing free-for-al- l. OPEC Secretary General Marc Nguema told Radio France International that if a price war broke out and world oil prices sunk to $20 a barrel, only OPEC would be able to sell its oil, the OPEC news agency reported. "OPEC is necessary," Nguema said, "If it did not exist, one would have to invent it." He said Mexico, a major OPEC rival, had acted in "conformity" with OPEC in the current oil price crisis. Mexico lowered its best oil to $29 a barrel only after OPEC reached an accord, which barred members from backdating reductions before Feb. 1. Proposed price cuts for Britain's and Norway's North Sea crude also have been backdated to Feb. 1. Industry sources said Saudi officials were holding talks with the four U.S. partners in the Arabian-America- n Oil Co., which produces the bulk of tip Hnrtom': nil and non-OPE- C M would announce the price cuts shortly. "Other Persian Gulf countries are waiting for the Saudi announcement. They won't announce their prices until the Saudis take the lead," an industry official said. In Kuala Lumpur, analysts said Malaysia's d state-owne- oil com- pany is expected to match OPEC's price cut and to raise its production by 30,000 barrels a day to oifset an estimated $500 million decline in oil revenues. member, Malaysia, a currently produces 330,000 barrels a day and exports 270,000 barrels a non-OPE- C day primarily to Japan. "Malaysia can expand produc10 to 20 percent without affecting world prices," a Western analyst said. Taiwan announced it would lower its domestic fuel prices as much as 16.2 percnt and reduce electricity prices an average 3.5 percent to reflect the OPEC price tion by rollback. Federated Dept. Stores Earnings Go Down sales rose (UPI) last record ated Department Stores Inc. CINCINNATI Feder- Wednesday reported a 9.9 percent drop in 1982 earnings despite record profits. Earnings for the fiscal year fourth-quart- ended Jan. 29 were $232.8 million, compared with earnings of $258.3 million the preceding year. On a pershare basis, earnings were $4.79 compared with $5.33 in fiscal 1981. Fourth-quart9.7 profits $142.4 million percent to a or $2.93 a share, against $129.8 million or $2.68 a year earlier. Federated officials express "cautious optimism" regarding 1983 results. Sales for year $7.69 billion, up 8.9 percent over sales of $7.06 billion the preceding year. For the ' fourth quarter, sales totaled $2.59 billion, 12.9 percent higher than Beware of 'Boiler Room' Scams, Warns Postal Officer Small businesses in Utah are being hit by "boiler room" fraud schemes. According to John Mallory, a U.S. Postal Service Inspector based in Salt Lake City, over a dozen complaints about such scams have been received within the last two weeks, and many more are probably going unre- ported. Boiler room is the name given to offices used by telephone solicitors. In these cases, supplies and advertising specialty items are being sold deceptively. A typical scam, said Mallory, would operate like this: a solicitor calls a business and tells them they may have won a prize such as a color TV, video recorder or a vacation trip. To be eligible for the prize, says the caller, the company must buy several hundred key chains or pens imprinted with the company's name. The items are sent COD (collect on delivery) and when opened, "are not what was ordered, are of such inferior quality that the company would be too embarrassed to give them to customers, or maybe the package is even empty," said Mallory. "And the prize is never received." Because the items are sent through the mail, this is mail fraud and is punishable by five years in prison and a $1,000 fine, said Mallory. There are many variations on the fraud scheme, said Mr. Mallory, adding that most of the of $2.3 billion for the period er scams reported in Utah have been based out of state in California, New York or Connecticut. One is that the seller mails two COD packages. The first looks like what the buyer is expecting but actually is something else and has the name of another company oh the return address. If questioned, the seller says he knows nothing of the first package and that the buyer is obligated to pay for the second one. "Be wary of buying unsolicited items over the telephone and when you are accepting COD packages," said Mallory. "We cannot make refunds on COD packages," he said, adding that the Postal Service is only a transmitter of packages and is bound by law to send COD payments to the seller. "The Postal Service can investigate frauds after they occur, but we have no way of knowing what's in that package until you pay for it, open it and then make a year. ts Dollar Suffers Fall Zurich Gold Down NEW YORK (UPI) In Zurich gold plunged $14 an ounce to close at $420.50 from Tuesday's $434.50. In London the drop was $13, to $419.50 from $432.50. In New York, where the downward spiral began Tuesday, gold plunged to $417 from $426. The New York Commodity Exchange settled the March contract at $418.10, down from $426.20. Silver tumbled to $10.65 an ounce from $11.05 on the cash market. The Comex settled the March contract at $10,617, down from $11,057. Martin McNeill, vice president at Sinclair Group Companies, attributed the weakness in both metals to "the oil price situation and the probability that we will Traditions of Audi excellence continue to inspire engineering art Presenting the Audi 5000 Turbo Diesel: the ultimate luxuries in a family sedan. Diesel fueled. Turbocharged. Enough for family any maybe just right for yours. priority recall rights. Smith said there has been no further discussion between GM MJTMUTC (3) EMM X toy. ma HI Example: Stock 5416 List Uie minuted mpg ' companion Mileage vanet with speed, (rip length and neither Actual highway mileage will probably be le Price: Peterson Motors Discount: Factory Rebate: Your Net Price: 1983 AC, Suisse, New York, said. In London the pound fell to $1.5080 from $1.5145 Tuesday; it was rated at $1.5085 in New York. After an earlier rebound in Europe, unfounded rumors that West Germany would pull out of the European Monetary System float agreement, freeing the mark to rise, brought downward pressure on the dollar. f JT$285 rmw i II I nkT Kl Sftftfl siJ cruise, power windowssteerinbrdkeVdoor locks, turbo diesel engine and more. non-OPE- C dealers will undercut the cartel's prices," Daniel Holland, corporate trader at Credit oil 1? $16,835 model (eat u res Automatic. have lower prices." He said lower oil "mast certainly will mean worldwide inflation, and that is bad news for gold." Another trader said "most professionals believe gold is going to test the $400 area again soon, but the pros have been wrong before." The dollar traded lower against most currencies except the pound, which came under renewed selling because of speculation that Britain will be forced to lower prices on its North Sea oil. "Most of the pressure on sterling was due to the belief that J Turbo Diessl! I Ir IIV - c-- super-concentrat- See your Utah PorscheAudi dealer in Provo: Quito nice can. Quite nice prices. Quiet, nice dealership. 400 S. University Q () Provo 374-175- 1 SaletServlceLecwlng complaint." Mallory says anyone receiving sounding of- fers should check with the Better Business Bureau before ordering. And anyone who feels they have been a victim of a scam should report it to the Postal Inspection Service or their local Postmaster. "Some people are too embarrassed to admit they've been taken in by a scam," said Mallory. "But the only way we can put $1,000 minimum Deposit or withdraw any amount at any time Insured to $150,000 by a major private insurance company fraudulent boiler rooms out of business is if people let us know they've been victimized." The insured Money Market Passbook from n Citicorp Itmm Person-to-Perso- SALT LAKE CITY Downtown Brickyard Plaza 1178 Brickyard Rd. 10 W. First South Reg. 995.00 10 76-10- Acoustic Coupler Dot-Matr- ix Save big on the Transmit and receive data Typewriter-Styl- e Keyboard from your office computer With Digital Keypad and information networks 15 lb. Attache-Typ-e Case while on business trips. Prepare printed reports, too! Ends 32683 Hurry-- Sal Thermal Printer Citicorp Person - to -Person Financial Center of Utah PT-21-0! effective annual yield is based on 10 current rate compounded daily. Interest is based on money market rates and will change the 26th of each month. Account size may be limited. 486-226- 1 532-338- 3 Fashion Square 195 E. 6100 South Valloy Fair Mall 3601 So. 2700 West 262-543- 6 969-721- 1 OREM OQDEN 2350 Washington University Mall Suite . 1983 Tandy Cop IW3 Citicorp Available to Utah residents only. U3 Blvd. 621-711- 0 224-222- 2 Accounts insured to 10.52 Our Local Computer Center Serves You Better Orem, Grand Central Plaza. 384 East & 1300 South 2 $150,000 1 by a major private insurance company J I I I T, Save $1SS Of TANOV CORPORATION dol- s, SALE! PORTABLE PRINTING TERMINAL DIVISION The GM-Toyo- ta TRAINING A - lar fell in New York Wednesday against all major currencies except the British pound and French franc. Gold and silver tumbled on an expected drop in inflation and some dealers believe gold will test the $400 area. For SERVICE Built-i- n U.S-Japa- Jose Archuleta It Distributor LEASING Whisper-Qui- et ANN ARBOR Motors Corp. Toyota Motor Co., which will jointly build cars in California, have begun preliminary meetings needed before talks can open with the United Auto Workers, a GM official said Wednesday. John Smith, GM's director of worldwide product planning, made the comment at the third n Automotive Industry Conference at the University of Michigan. Smith said labor experts for the two automakers have begun briefing each other on the vast differences between the American system of labor management relations and the Japanese system. GM and Toyota announced an agreement last month to jointly build at GM's vacant Fremont, Calif., assembly plant. At the time, Toyota Chjairman Eiji Toyoda said the Japanese automaker wanted to have a free hand in hiring workers. GM maintains the UAW will get some of the 3,000 jobs at the plant but it has not yet been made clear whether laid-of- f workers will have and Toyota on whether the UAW members will be hired. "Earnings for the year were "What is in agreement is that in ChairFederated disappointing," order to have a final agreement man Howard Goldfeder comwe have to have a labor agreeweakena of "the result mented, Smith said. ing economy in the first three ment," He said the issue of a labor an of the economic quarters year, contract was so sensitive it was slump in some key Sunbelt marset aside during negotiations last kets ... and the costs of an aggresbetween GM and Toyota. The year sive expansion program." two sides agreed to deal with the problem after the agreement was reached. The meetings between the labor experts are "just starting now" and Smith said he did not know when they would conclude. Deputy U.S. Trade RepresentaSperry-Owe- ns tive David MacDonald praised the deal as an important Jose S. Archuleta has been ap- first step. pointed executive distributor of "We welcome this investment," a product of Sperry-OwenMacDonald said. "It is one way of Inc. of New York. Archuleta's easing away the intense political o address is 554 W. 200 N. pressure on the U.S. government P.O. Box 444, Provo. in dealing with Japan." is a MacDonald told reporters the liquid formula incorporating solid United States thinks the Japanese film lubricants held in colloidal market is "not open." He said the is added Reagan adminstration has forced suspension. Once to an engine crankcase, its invenJapan to admit that it has a tors claim it improves mileage problem in allowing U.S. auto and sluggish performance, re- imports in Japan and its exports duces operating temperatures, to this country. prevents mechanical breakdowns MacDonald would not comment and frictional drag. on auto industry officials' contenSperry-Owen- s, Inc., said it has tion that the labor cost advantage added the name of Archuleta to its to the Japanese is now $2,000 up' Distributors growing list of from the $1,500 mark the industry from coast to coast. had said it stood at last year. SALES Cat. No. Toyota, G-Begin Talks On Joint Pact (UPI) - General and |
