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Show r I lint V,rmimnu 1 tttcU ' ' ' ' ?, i ft ' V ', .1 w r; ' vk ' !.V v "V Robert H V, uody Tribune Business Editor While notices of layoff for nearls .BOO were going out. there was still the possibility Kennecott could continue operations at the present levels at the Utah Copper Division, the firm said Friday But that can only occur if the company and its unions reach agreements enabling the company to sustain operations in face of continuing losses, said G. Frank Joklik, president, and Judd R. Cool, senior vice president-humaresources. So far, neither the Kennecott unions nor their national representatives have responded, they said. And while the company would n.iliiiii 5br jialt akf (Tribune 1 June 2). Saturday Morning Section Utah Technical College and Granite and Jordan school districts have formed a task force to deal with impending" layoffs. The task force is couperating to give early assistance to dislocated workers and to lessen impact of unemployment. Kennecott will inform affected workers of company benefits. Other agency services will include "benefit certification, voca-tioncounseling, financial counsel- - consider industrywide meetings with the national copper union leadership to consider "ground rules," it would, in no case, consent to industrywide contract agreements, Mr. Cool said. It has been the historic practice of the copper companies unlike the steel companies to reach individual company agreements in keeping with local conditions. Meanwhile Friday, Kennecott an- - CKOPIUEU- - 5AUMDE-R- 6ST upreort I? covering wholesale distributor Fast Ripples Spread by IBMs Cuts By James mJ - IBM's price cuts personal computers are quickly rippling through the industry. The most notable effect is on companies that make computers compatible with software designed for International Business Machines Corp.s own desktop computers. The success of these makers depends on their products at a ability to sell me-to- o lower price than IBM's own computers, or at least to offer a similarly priced machine that has more features than IBM's. But IBM recently threw those companies a curve by slashing prices by up to 23 percent across its line. entire personal-compute- r Have No Choice Industry trackers said the makers had no choice but to follow suit and some did this past week. ITT Corp. in New York cut prices on some of its Xtra personal computers by up to 24 percent. Corona Data Systems Inc. of Thousand Oaks, Calif., dropped prices from 11 percent to more than 20 percent on its computers and from 22 percent to 34 percent on add-o- n products. A week earlier, Columbia Data Products Inc. of Columbia, Md., reduced prices on its entire line of computers 10 percent to 15 percent below IBM's new lower prices. Eagle Computer Inc. of Los Gatos. Calif., also has said it plans price cuts to keep its prices below IBM. Raise Questions While it was agreed the companies had to follow IBMs price cuts, their actions 'j), w Officials Weighing New Bailout Plan For Ailing Continental Illinois Bank By Robert Furlow Associated Press Writer WASHINGTON A government-supporte- said Friday, Obviously, we're doing our own thinking" in case further federal involvement is necessary. But he declined comment on reports of the new $4.6 billion proposal. Under that plan, as described by sources who commented only on condition they not be named: The Federal Reserve Bank of Chicago would lend $2.6 billion to help a newly formed national bank buy Continental's $4 billion in problem loans. The $2.6 billion loan would be guaranteed by the FDIC, which might still have recourse to Continental assets if the loans eventually yielded less than $2.6 billion in repayments. FDIC also would lend Continental $500 million. And the agency would replace its current $1.5 billion cash infusion in Continental, part of the original $7.5 billion rescue plan, with a $1.5 billion note. Also on Friday, FDIC Chairman William Isaac commented extensively on the Continental situation in a speech prepared before word of the new proposal began showing up in published reports. No FDIC Loss? In his speech, prepared for delivery to the Association of Bank Holding Companies in Newport, R.I., he said, "It is too early to predict, but it is certainly possible that the permanent solution will not result in any loss to the FDIC. d billion program of loans and guarantees is among proposals being weighed by federal offirecials trying to fashion long-tervival for the ailing Continental Illinois National Bank & Trust, sources said Friday. The proposal, suggested by Continental's investment adviser, calls for splitting off the bank's $4 billion in overdue problem loans, putting them in a separate new bank and thus making the remaining Continental more attractive to potential acquirers who could put it back on solid footing, the sources said. And, despite the initial outlay in federal money, the plan apparently would at least leave open the possibility that the governments insurance agency, the Federal Deposit Insurance Corp., would lose no money at all in the end. Led Rescue Effort The FDIC led last month's temporary rescue effort to keep the nabank afloat tions seventh-largeafter talk of big losses on energy loans resulted in a "run on the bank's $40 billion in deposits. The $4.6 st stabilization government-privat- e effort apparently succeeded, using loans and $7.5 billion in short-terlines of credit as well as an FDIC guarantee that depositors would not lose their money in the event of Continentals failure, even if their accounts were over the legal $100,000 insured-deposlimit. Since then, the bank has been solution, with seeking a long-terofficials conceding acquisition by a stronger institution might be necessary. FDIC spokesman Alan Whitney other federal regulators took the best action they could "to give the FDIC, bank management and prospective investors or merger partners the time needed to resolve the banks difficulties in the most orderly manner possible at the lowest cost to the FDIC." Discriminatory Action? as Some members of Congress well as spokesmen for the nation's have said or implied small banks that a federal bailout of Continental showed discrimination against smaller banks, where failures have sometimes meant big losses for depositors with accounts over the $100,000 insurance limit. Isaac acknowledged the FDIC had in some test cases a modified payoff" procedure in which depositors over the insurance limit were exposed to the risk of loss. But he said, "If we had employed the procedure at Continental, it would have entailed an abrupt change of policy on a massive scale and would have threatened hundreds of small banks which maintained correspondent relationships with Continental as well as thousands of other businesses around the been using whether those new prices will seriously erode their profit margins. IBM, being the world's largest computer maker, has the economies of scale to be a low-coproducer, world. In short, it would not have been responsible under the circum- stances and small banks would have been among the principal victims." he said. Some critics have said his agency erred in the earlier rescue, that it should have forced an immediate merger with a stronger institution or simply should have allowed Continental to fail, as it has done with some smaller banks. it raised serious questions about st See Page B-- Column 1 . . Taiwan Economy Grows Taiwans TAIPEI, Taiwan (AP) economy is expected to grow 11.6 percent in the first six months and 9 percent for the full year, Economic said Friday. Minister Hsu h He said the growth rate this year was 12.3 percent, and second-quarte- r growth is expected to reach a 10.8 percent annual rate. first-quart- performing technulogical mk He will be succeeded by George U. I Hercules' field representatue al Air Force Base, Dayton, Ohio. Dr Uhlig. a former Air Force lieutenant colonel, mo research chief at the Aeropropulsioii Laboratory at Wright-Patterso- n Wright-Patterso- n AnheusLT-Buse- h . Re-Bui- ld Associated Press Writer amn Ronald H. Brown was also elected president and general manager. Elected "Man of the Year" for the industry in 1967, Keith Brown has served as the company's president since it was founded in 1954 Ronald Brown joined Brown Distributing in 1969 and has assumed responsibility M. for purchasing since 1982 Keith Midgley, vice president of First Federal Savings and Loan, has director of district been 12 of the Fin,.acial Managers Society Inc., a national professional organization. Mr. Midgley has taught many classes at the Institute of Financial Education including courses in executive development and finan. . Mark O. Jacial management cobsen, vice president of Inc., a building and remodeling contracting corporation based in Utah, has been appointed to a three-yea- r term as trustee to the National Remodelers Council. The council is a Nadivision of the 128.000-membtional Association of Home Builders. Mr. Jacobsen has worked on programs through the Remodelers Council of Greater Salt Lake to inform and educate the public about unlicensed and illegal remodeling contractors . . State Farm Insurance Co. has promoted David S. Randel to train new claim handlers and work in claim quality control activities at the Salt Lake Valley Service Center. Mr. Randel, graduated from the University of Northern Colorado with a degree in insurance, previously held the position of senior claim representative at State Farms Larimer Service Center in Fort Collins, Colo. Agents Dan Barrett, Dick Calvin, Jack Fisher, John Moore and Glen Phillips have earned membership in State Farm's Millionaire Club, one of the companys highest life insurance sales honors . . L. Blair Whiting, vice president with Newcastle Financial Group in Provo, Was among 100 speakers chosen to address Million Dollar Round Table members at this year's annual meeting in New York City in June. More than 5,300 members from around the world met to discuss current issues in the life insurance industry . . . Robert L. Schaefer has been named to the new position of manager of technology at the Hercules Aerospace Division Bacchus Works and will be responsible for strategic propulsion, process service projects and all technology contracts. Dr. Schaefer will continue to report to Director of Technology P.A. Bukowick and will have responsibilities reaching into all departments . feltz F. it Mr, Handel Mr. Schaefer Keith C. Brown has been elected chairman of the board ot Brown Distributing Co., a furniture and floor e A . ire a Tradewinds Steering Bargaining Commmittee for some sort industry-widtalks. NEW YORK iujumio " i4 few Mr. I'hlig on its 1 . t Friday. Mr Cuol said the firm had not only received no response from its unions, but no formal request from the Nonferrous Coordinated SCHOOL... rv Vr o-- . V -- t And. he said, that under ally circumstance. no company could ever say the number of jobs that could be maintained in new of ongoing changes in technology and market conditions SPECIAL C01R6E J r.rf 1etns 1 AT BU51NES5 rc y wide talk' un problems and inns for the mpper industry mid-Ma- HE PICKED IT THE WALTZ IN MV &I66WT CONTRACT ? IDEA THAT HE COUU? SIMPLY AND TAKE 5 Bruce I laminoml l .tiled tur And he said there was no assurance Kenncott would not lay oft workers even it the workers did make concessions Mr Cool said, however, Kennecott had asked its unit ns in for contract negotiations to he worked out before July But there has been no response, he said ing. job search woikshops. job placement, skills assessment and providing information on available vocational training and adult basic education programs." a statement from Kennecott said A week ago. Mr Joklik warned the company would cut its workforce by 2.000 from the present 4.400 and cut production by two thirds unless Kennecott unions consented to cuts in wages, benefits and cost of living allowances by July 1 Monday, meeting in San Francisco. the Nonferrous Coordinated Steering Bargaining Committee, whi ciirep re se nts t h n t crests of the ej Duffy i nan mail of the Nonterrmis Com diluted Steering Bargaining Committee said the Kennecott action was jii empiioiis and gave the unions little time to 1984 Page Training Administration, j 44, tin iuii - respond B nounced it and the Salt Lake Private Industry Council. Job Service, the Salt Lake County Employment and d ut Robert Business n mm. DID - cupper r r,iY Kennecott Operations 4Still Possible By .;. Agrees to Pay In Settlement LOS ANGELES (UIL Co Inc agreed Frida to pay the federal government million as part of an $2 t settlement involving charges that the company illegally monopolized beer supplies at most major league baseball stadiums. The Bureau of ALoiiul, Tobacco and Firearms alleged that the brewery offered financial inducements to stadiums in exchange for contracts to handle its beer to the exclusion, in whole or in part, of other beers The bureau had been investigatLouis-basecompany -ing the St. the world's largest beer brewer for the last year for sales made durBusch cooperated in ing the investigation. Terminates Pruhe The settlement tertjiinates the bureau's investigation into the marketing of the company's beer products at major sports stadiums, as well as a related inquiry by the U.S. Attorney's Office in Los Angeles, a spokesman for Busch said. The company said the compromise was reached in an effort to avoid the possibility of further legal proceedings and did not constitute an admission of by the company or its employees. Busch supplies beer to 24 of the 26 major league stadiums, although other brands are also available al some stadiums. In addition to agreeing to pay the $2 million, the company agreed to a consent decree that prohibits violations of certain trade practice regulations in connection with advertisd 1978-198- ing and sales arranagements involving certain types of retailers and sports stadium- - and similar facilities. Busch officials said the company has had and continued to have "a policy of strict compliance with the law and a pregram designed to obtain compliance with the policy." Contrary to Policy It added, "the instances involved in the charges by the BATF were contrary to company policy." Busch officials also said beer sales in connection with the instances involved in the bureau's investigation were immaterial in relation to the company's total beer sales during the period under investigation. Assistant U.S. Attorney Richard Drooyan said the brewery tempted stadiums to sell its beer exclusively with offers of credit or cash. NORTH SALT LAKE FOR LEASE 80.000 SQ. FEET 30' CEILINGS FREE STANDING. RAIL, DOCK HIGH CALL OWNERBROKER 972-250- 0 Isaac, dismissing the idea of simply letting the bank fail, said he and 11.10 1 3.40 U.S. GOVERNMENT BILLS Printed Logo U.S. GOVERNMENT NOTES AR 100 caps Interest Extempt From State of Utah Income Taxes E.F. Hutt:n is a Drimary Market Maker in U.S. Govt Bills and Notes. Please call David Payne, VP, at Toll Free Utah 800-662-42- 05 ITiSHIRTS Out 800-453-94- 08 of State, or mail coupon below. Based on June 20th Market Quotes 12 printed I 50 printed SI99001 Please send me information on U.S. Government obligations. 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