| OCR Text |
Show W $alt Business akt Srilumr Wednesday Morning Section B Detroits Financing Deals Pay Off non-aut- Harvard University to bolster its legal attack on a federal judges ruling relieving Texaco Inc. of a Texas requirement that it post a $12 billion bond while appealing a record damage award. Laurence H. Tribe, a professor at Harvard Law School, was retained to help Pennzoils efforts to overturn U.S. District Judge Charles Brieants decision that Texaco would have to put up no more than $1 billion to appeal the judgment, Pennzoil attorney John Jeffers said Tuesday. The 2nd U.S. Circuit Court of Appeals in New York said Tuesday that it will hear arguments on Pennzoils appeal as early as the week of Feb. 10. Brieants decision marked cos first major victory in a legal ColluyiiilH v 2,100,000 2,100,000 I 4. Cotton Bowl 2,000,000 5. Sunklst Fiesta 1,100,000 e stronger growth in the months ahead. "All the concern about high debt driving consumers to zip up their wallets and stay home is proving unfounded, said Sandra Shaber, director of consumer economics for Chase Econometrics. But people shouldnt go overboard and think that consumer spending will drive the economy. That isnt going to happen." However, some optimists are calling for growth to top 4 percent in coming months, the best performance since the first half of 1984. The strength of the December retail-sale- s figures, coming on top of the bullish employment figures for December, should mean that we ended 1985 with a bang, not a whimper, said John Alber-tinpresident of the American Business Conference, a coalition of companies. "Once again, the consensus economic forecast has un - at Some technology issues received support Tuesday from a prediction by the semiconductor industry that it expects this year to be significantly better than 1985. One example, Texas Instruments, closed up 28 at 105 hi. Industry leader International Business Machines rose V, to 1494 and was among the most actively traded issues on the Big Board. Food stocks benefited from an announcement Monday that government price supports for wheat and corn are being sharply reduced. Archer Daniels Midland, also among the actives, finished with a gain of lYs at 274. At the close, International Harvester led the actives list. The company, which plans to change its name to Navistar International, to rose 1,519.04. Bernadette Murphy, senior vice president of Shaw & Co., said the stock market is still reeling from the shock of last weeks massive decline. She said Tuesday represented a continuation of the downward trend" that began last week when the Dow industrials lost 35.67 points. 113,920,000 SHARES UNCHANGED ISSUES 415 TRADED 2,038 DOWN 670 119.210.02 N.Y.S.E. Index S. & P. 206.64 - 0.08 Comp. Dow Jones Ind. 550,000 Bowl th)l Conimittuvs 1,519.04 -- 1.49 bond-tradin- stock-brokerag- dicated full-servi- 9. third-ranke- S.L. Chamber Votes to Lift Press Ban dent and general manager, pointed to The Tribune's editorial which correctly noted the press ban was merely being considered. He said: The board did consider it but recognized it would be a bad idea not to have the press attend our meetings. And, in fact, we welcome and need the press. modified at a future board meeting. He said the board was merely exploring ideas to make discussions at the meeting more meaningful by making members feel less inhibited by the press and the chamber staff. Ms. Randolph said the board didn't address the question of whether the chamber staff could attend future meetings. But she said a number of staff members attended Tuesdays meeting because they were scheduled to give reports to the board. The Tribune reported the board's decision to close its meetings to the press and chamber staff in a news story and then editorialized against the press ban. The Deseret News also editorialized against the restriction. In explaining the board's decision Tuesday, Fred S. Ball, chamber presi Ms. Randolph said comments board members made at Tuesdays meeting to explain why they wanted the press to attend their meetings included: The perception of what were doing is almost as important as what were actually doing. The benefits of the press at- serious management problems in the company and was probably a factor in the reshuffling. E.F. Hutton & Co. is the nation's second-largeindependent, brokerage firm, after Merrill Lynch, Pierce, Fenner & Smith, and has about 7,000 account executives and about $18 billion in assets. Merrill Lynch and Paine Webber Mitchell Hutchins reorganized along similar lines about IV years ago, McCoy said. Unlike some other brokerage firms that have expanded into such fields as real estate and credit cards, Hutton intends to remain focused on its current lines of business, Nelson said. "We are not a financial-service- s conglomerate. Our mission is narrower, the company said in a news release. Robert Rittereiser, who has been president and chief operating officer of Hutton since last summer, will take on the additional position of president of the E.F. Hutton & Co. subsidiary, the company said. Scott Pierce, formerly president of E.F. Hutton & Co., will become vice chairman of the parent company, where he will have overall management responsibilities and assume additional responsibilities," the compa- Meetings Closed Since December The board of governors of the Salt Lake Area Chamber of Commerce voted overwhelmingly Tuesday to allow the press to again attend its meetings. Chamber spokesperson Paula Randolph said only one board member voted to continue the press ban. She declined, however, to identify the board member. The press has been invited to the boards meetings for at least 15 years. reactBut in December, the board ing in part to newspaper coverage of a September board meeting noting concerns about the chambers role in economic development decided to close its meetings to the press and the chamber staff. Board Chairman Robert H. Garff told The Tribune at that time that the ban stood a good chance of being 000,000 was reorganizing its operations and shuffling top management to improve its efficiency in serving customers. Hutton said it will lump its brokerage arms operations into two "strategic business groups," one covering services for individual investors and the other covering institutional and capital markets. Hutton may emphasize attracting institutional customers more as a result of the new organization, said Brenda Davis McCoy, an analyst for firm of Mahon, Nuthe gent & Co. that follows Hutton. E.F. Hutton & Co., Hutton's subsidiary, pleaded guilty in May to 2,000 counts of mail and wire fraud involving a scheme to earn extra interest by deliberately overdrafting its bank accounts. Hutton spokesman Steven Nelson said the company had intended to reorganize itself before that. But McCoy said the overdrafting scheme in- increase. VOLUME 00 0 9. Florida Citrus g Jan. 14, 1986 UP 660,000 - The National Association of Manufacturers law that will predicted a new balanced-budge- t force spending cuts of nearly 5 percent this year will compel the government to declare a major tax New York Stock Exchange 953 8. Liberty Bowl By Peter Coy AP Business Writer NEW YORK E.F. Hutton Group Inc., shaken by a scheme last year, said Tuesday that it U.S.-mad- The Market In Brief mance Tuesday as the blue chips encountered renewed pressure. After spurting ahead about six points in the first hour of trading, the Dow Jones average of 30 industrials lost ground and spent the rest of the day drifting in negative territory. A late buying wave lifted the blue-chi- p barometer above the low levels of the session, and it closed 740,000 E.F. Hutton Reports Plan to Reorganize Seesaw Market Rides to Mixed Showing The stock NEW YORK (AP) in a mixed perfor- 7. Cherry Bowl Efficiency Is Aim Major automakers said domestic sales in the industry reporting period would translate to 8.4 million for the year on a seasonally adjusted basis, more than 1985s actual sales of 8.2 million e cars. However, the U S. manufacturers had to continue relying on rebates and reduced-rat- e auto loans to prop up sales. high-growt- h market turned 830, v SOURCE. NCAA Jan. e, JO 6. Gal or Bowl 10, dis- Earlier, Texaco retained its own constitional expert, Charles Alan who represented former Wright, President Richard Nixon during the Watergate proceedings. Texaco, the nations third-largeoil company, had argued it would be Texas destroyed by the law that would require a $12 billion bond while it appealed the damage award. In his opinion issued Friday in White Plains, N.Y., where Texaco is based, Brieant called the idea of requiring a company to post a $12 billion bond "absurd. Loch Team $5,800,000 Sugar Bowl Sales at stores, a category that includes department stores, rose 0.3 percent, down sharply from a 1.7 percent gain in November. For December, sales of durable goods, a category that includes cars and other products expected to last three or more years, rose 4.3 percent; sales of goods were up 0.6 percent. In other economic news Tuesday: The government said consumer installment debt posted the smallest increase in November in more than two years as borrowing to finance auto purchases slowed sharply. The Federal Reserve Board reported that consumers took out $4 .88 billion more in consumer debt than they paid off in November, down sharply from the October increase of $8.12 billion. Texa- pute over its 1984 acquisition of Getty Oil Co., which previously had agreed to a merger deal with Pennzoil. A state court in Houston has ordered Texaco to pay Pennzoil $11.1 billion in damages. Tribe said that the federal courts intervention threatens the sovereignty of state judicial power and might allow large corporations to shop unfavorable rulings to other courts until they get the decision they want. Bowl Gomes Ranked by Income Guaiantemf 2. Orange Bowl (lie) Blue Chips Bounce Up and Down off 1.49 by Brendan Barf 1. Rose Bowl o general-merchandis- non-far- HOUSTON (AP) Pennzoil has enlisted a constitutional scholar from 11 Page e cut-rat- Co. l!)Mi BOWL BUCKS derestimated the strength of the recovery." The rise in auto sales in December accounted for more than half the overall increase in retail sales last month. Without the auto gain, sales would have risen by 0.9 percent, still the best advance in the category since August. The strength in autos compensated for some sluggishness, particularly in department-storsales where retailers complained that car purchases had forced consumers to spend less on Christmas presents. g Pennzoil Hires Scholar for Texaco Battle 15, Einfrvr Car Sales Fuel Jump in Retail Trade By Martin Crutsinger Associated Press Writer WASHINGTON Retail sales, powered by the return of attractive incentives, rose 1 9 percent in December for the strongest ga.n in three months, the Commerce Department reported Tuesday. The strong sales advance, coming after a big rise in employment, prompted the Reagan administration to proclaim that the economy is enjoying a significant rebound in growth. However, some private economists said they did not sec evidence for such optimism. The December increase helped boost retail sales for the entire year to $1.38 trillion, 6.3 percent above 1984. This boost was substantially below the giant 10.5 percent gain recorded in 1984 and many analysts have cautioned that sales in 1986 are likely to rise at an even slower pace as consumers n debt bu struggle with a record-higThe strength in Decemtx r came Horn a 5.7 percent jump in auto sales f. m Nove:Vr. The rebound reflected a new round of incentives instituted by General Motors Corp. and Ford Motor Co. that included financing as low as 7.9 percent on selected cars and trucks. The 1.9 percent December rise in overall sales followed a revised 0.7 percent increase in November and a 3.9 percent drop in October, a month when car sales plummeted after the first round of e auto financing was removed. The report on retail sales followed news last week that employment increased by a sizable 320,000 jobs in December as the civilian jobless rate dipped to 6.9 percent. At the White House, presidential spokesman Larry Speakes called the December figures exceptionally good news. But private economic forecasters were split over whether the December upturn was signaling January d ny said. tending the meetings outweigh the disadvantages. The board is the governing body of the chamber of commerce. Rittereiser was hired in June from Merrill Lynch & Co., where he was an executive vice president, and has consolidated authority quickly. The reorganization was based on a plan developed by Rittereisc--r ... the request of Robert Fomon, Hutton's chairman and chief executive, Nelson said. Nelson said Fomon discussed the plan with Rittereiser and had final say over all its aspects. Hutton spokesman Robert M. Sharkey said the company would shortly announce the appointment of a new chief financial officer and a new general counsel. They would replace executives who were criticized in a report the on g scheme by former Attorney General Griffin Bell. Magazine Says LDS Culture Hurts Business ? By Steven Oberbeck Tribune Staff Writer To say that many Utah business advocates, such as the Salt Lake Area Chamber of Commerce, were a bit dismayed at the article in the most recent issue of Inc. magazine would be an understatement. The well-reaand respected busid ness publication, which claims 600,000 paid subscriptions and bills itself as The Magazine for Growing Companies," said in its January isstie that the "insular Mormon culture that once brought economic prosperity to Utah is now a major liability for business owners. Quoting James Clayton, the dean of the University of Utahs graduate n school and a member of a committee on Mormonnon-Mormorelations, the Inc. article, written by contributing editor Greg Critser, says Utahs hierarchical, highly cohesive society may be to blame for the states tardiness in entering the Siliblue-ribbo- n con Age. "Utah may be a good place to have a lot of docile workers, but its not a place that encourages going against the grain, which is the essence of en- trepreneurship," Dean Clayton was quoted as saying. The Inc. magazine report received immediate criticism from the pres: dent and general manager of the Salt Lake Area Chamber of Commerce Fred Ball, who described the article as replete with errors and innuendos. Utah has always had a strong thriving entrepreneurial spirit," Mr Ball said. We have always had a hig:. Column 1 See The largest, most trusted computer and word processing supply company in the area. AVERY CUSTOM PRINTED COMPUTER LABELS Create your own identity with Custom labels from AVERY FORCE 4. GROUP MEETING VALUE PACKAGE Sib 000 1.'.y M,it" Includes: o'limiidalinns ol cm e;)tion,)l luxu1 y Cunlincmal H'e.ikl.iMs One Ho, ii Cocktail Reception Choice o! 6 Cco'eipni e 01 Banquet Rooms Complete A V ! Q'.iipmcol Complimei'Mry Anpnil Shuttle 1 ellenl Hcsl.iiii, tills S I ourqi'S ( ? pi'M.i N'V V ,r p,( i, pi), hie Or Pate Options $39 fVi Copper State Thrift & Loan, we dare compare our Jumbo Money Market Certificate rates with any bank or savings and loan: .i v Si 5 000 m r dT at ' prv-c.- ol i'l full 1. c, Vale O; os! v ,a rj rarvju 0 t'onusr', j!t" jf d trrms ( ' u-r- jtw, v 10.250 10.75 a Dank 8.00 8.00 iJl Rates effective through January Mention this ad and save 10o off regular price on your next order from Force 4 21 Avery Label y Stv SPRING CkLEKRTJJCR HO assistance $1,612 $1,200 $ 412 Savings Bonus p imprinted on shipping, addressing and other labels makes a lasting impression! Call today for design interest Earned a CST&: ri! m Yield Convenient validated pj'kmq at Exchange Plane ui 4th So & Main Do Mitojvri P0 Your logo and key information At 69 JACKSON WY 83001 04 j at oa't jVJSoi," M.m Lai e y in.'. 84 For reservations and further Information, call toll free ' i j ' 7 )m t , 'f r i .i ' i . ' ..f COMPtntB 1151 S. Redwood Road Salt Lake City, Utah 84104 i !' ' Ktl t rn r. A nm m. WOW PPOCC5SINU 90PPIF8 m rn M I 1 |
