The Courier-Journal from Louisville, Kentucky on January 3, 1986 · Page 6
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The Courier-Journal from Louisville, Kentucky · Page 6

Louisville, Kentucky
Issue Date:
Friday, January 3, 1986
Page 6
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The Courier-Journal, Friday morning, January 3, 1986 Stocks down 8.94 to 1,537.73 Story, this page MARK1FTW AOK Kentucky Kingdom stands good chance of beating the odds By SUSAN TOMPOR Buslnast Wrttar It may not be quite as tough as grabbing the brass ring on a carousel, or winning a giant, stuffed bear on the midway. But most analysts agree that building a successful amusement park from the ground up today isn't easy. And Kentucky Kingdom an amusement park scheduled to open in 1987 at the Kentucky State Fairgrounds is expected to face its share of challenges. Though amusement parks overall had a strong year in 1985, the business isn't all fun and games. Some say the industry is at a point of saturation, with major parks being forced to find new ways to draw big crowds; the costs of doing that can be astronomical. One major crowd-pleasing ride, for example, can cost $3 million or $4 million. In addition, amusement park operators must confront rising insurance costs, competing forms of entertainment and an uncontrollable variable: the weather. The odds are against smaller, newer parks, according to Lee Is-gur, a financial analyst who follows leisure activities for Paine Webber in New York. "Most of these do not work," he said. Yet, some industry observers believe Kentucky Kingdom has a good chance of beating the odds. The Louisville market, they say, is large enough to support an amusement park. Plus, the park's developers are some of the most creative in the business, and they have the benefit of tying in their operation with events held at the fairgrounds. The idea, developers say, is not to try to lure tourists away from major theme parks, such as Opry-land in Nashville or King's Island near Cincinnati, both of which advertise heavily in the Louisville area. Instead, Kentucky Kingdom's goal is to create another form of entertainment in Louisville and to complement activities that are already here. The project is being built, designed and managed by Report raises AiMclattd Pratt WASHINGTON Factory orders rose a modest 1 percent in November even though demand for durable goods fell for the third consecutive month, raising concern about the strength of the economy. The Commerce Department said yesterday that factory orders totaled $197.4 billion in November, a $2 billion gain over the October level and the first increase in three months. However, all of the strength came in demand for non-durable goods, which shot up by 2.5 percent, the biggest increase in this category in five years. Demand for durable goods, such as cars and appliances that are expected to last three or more years, fell by 0.3 percent. This setback followed declines in September and October of 0.9 percent and 2 percent, respectively. Because orders for non-durable GAF again raises bid for Union Carbide Auociatad Prt NEW YORK GAF Corp. Increased its takeover offer for Union Carbide Corp. again yesterday, but Union Carbide rejected the offer and unveiled new defensive actions that included an offer to buy back more than half of its stock. GAF raised its bid to $78 a share in cash from $74, increasing its offer to $4.93 billion for the 89.7 percent of the giant chemical company's stock that it does not already own. GAF had increased Its bid by $6 a share last week. Union Carbide Chairman Warren Anderson said in a letter to shareholders of the Danbury, Conn.-based company that the latest GAF offer MONEY MAZE Jim inompwn Courier-Journal business writer Mutual funds Ol'm 20, married and have a one-year-old child. My annual Income is $30,000 and my wife's part-time job brings in $3,500. I'm Interested in mutual funds to round out my Investments that now include $11,000 in a six-month certificate of deposit, $3,000 in U.S. savings bonds, $7,000 in business invest Leisure and Recreation Concepts Inc. of Dallas. "It's a regional theme park. We're not looking to be a competitor with King's Island or something like that," said Doran Carrell, project director for Kentucky Kingdom. The park's theme will be Kentucky and its history. Planners hope it will attract about 400,000 visitors a year from a 50- to 100-mile radius. It will offer "family oriented" entertainment, including about 12 rides and four live shows. The company also will operate the Kentucky State Fair midway and has contracted with Cumberland Valley Shows, which managed the midway last year. During the fair, the amusement park's rides will supplement those on the midway; during the fair all rides will be operated on a per-ride basis. Admission to the amusement park is expected to cost about $7 for adults and $6 for children. That price would cover all rides all day. It has not yet been decided whether children's prices will be set according to age or height. By comparison, King's Island draws its business from a 250- to 300-mile radius. It offers about 40 rides and 12 shows for a one-day price of $14.95 for guests 7 years old and up. The charge for children 3 through 6 is $7.45. Opryland attracts about half of its guests from within a 400-mile radius, with the rest coming farther. It offers about 20 rides and 12 shows at a cost of $14.95 for visitors 4 years old and older. That single ticket, however, is good for admission on three consecutive days. In 1985, King's Island attracted nearly 3 million visitors. Opryland attracted a record 2.5 million, up about 19 percent from 1984. On a smaller scale, Holiday World in Santa Claus, Ind., attracts many Louisville area visitors. The park, formerly called Santa Claus Land, had a record attendance of 264,144 last year. It charges $8.50 a day for unlimited admission to all 20 rides and six shows. Children 2 and under are admitted free. Kentucky Kingdom's rides are to include a two-story carousel with 8,000 lights; a log flume; bumper cars; antique cars; and an enclosed roller coaster. concern about economy goods are filled as quickly as they are placed, they provide little indication of future production. However, analysts said the declines in durable-goods orders was particularly troubling because it could be signaling future plant shutdowns and layoffs. "We have been forecasting a slowdown continuing into the first half of 1986, and this is evidence that it is occurring," said David Berson, an economist with the forecasting firm of Wharton Econometrics. Berson said economic growth for the October-December period is likely to dip to 2.8 percent from the 3 percent rate in the third quarter. He said economic growth would fall even further to 2 percent in the first three months of this year before beginning to rise again as the effects of a lower dollar, falling Interest rates and oil prices begin to revive activity. Michael Evans, head of Evans was still "grossly inadequate, unfair and highly conditional." GAF later issued a statement saying it was "disappointed that the Union Carbide board has refused to enter into negotiations with GAF." Union Carbide Initially had countered GAFs unsolicited bid with an offer to buy back 35 percent of its own shares, swapping each share for $20 in cash and securities the company valued at $65. In rejecting the latest offer, Union Carbide said it would accept more than 50 percent of its own stock, instead of an initial 35 percent, in a buyback offer. The company also said it would sell its battery, plastic wrap and ments, and $4,000 in a money-market account. rri funds and I need information on the different ones and the positive and negative points. I would want to be conservative with the $11,000. but could take some risk with the money-market funds and $250 a month I have to invest. Current income is not a priority. (Name and address withheld.) A There are over 600 mutual . funds and about 100 fund "families," so it is impossible to know everything about every one. You could, however, read some of the financial publications that follow mutual funds, such as Money magazine, Barron's, or Forbes. Answer some of the advertisements in this newspaper or The Wall Street Jour 11 A) BROADBENT V WCVW 'O' The map does not show all The carousel, being built in Venice, Italy, is expected to be operating at next summer's Kentucky State Fair. Also open then will be an information center that will provide a glimpse of the theme park. Clarence Duggins, president of the Kentucky State Fair Board, said the idea for an amusement park at the fairgrounds has been discussed for about 10 years. Two earlier attempts fell through. Louisville has been without a major amusement park since 1969, when the 80-year-old Fontaine Ferry Park closed after a night of vandalism and theft. The park's manager attributed the disturbance to racial tensions. Before the problems, though, Fontaine Ferry was a Louisville tradition. It wasn't unusual for people from across the state to come here to visit the park, Duggins said. He believes Kentucky Kingdom might provide a similar attraction. Duggins said the theme park could be marketed by area hotels Economics in Washington, said a string of weaker reports had caused him to revise his estimate of fourth-quarter growth down to 3 percent. The government in a "flash" estimate before the quarter was over said the gross national product was expanding at a 3.2 percent rate in the fourth quarter, but that estimate is subject to major revisions. The overall gain in factory orders In November was the largest since a 1.5 percent advance in August. Orders had declined by 1 percent in October and 0.7 percent in September. The sharp jump in orders for nondurable goods came from demand for food and petroleum products. The 0.3 percent drop in orders for durable goods represented a revision from an advance report last week that showed a 0.9 percent increase in durable goods orders. automotive products businesses and split its remaining stock 3-for-l after the stock repurchasing is completed. The consumer products businesses Union Carbide decided to sell include the makers of Eveready and Energizer batteries. Glad plastic wrap and bags, and Prestone, Si-moniz and STP automotive products. The company also declared a special dividend to holders of record of shares on Feb. 15, and payable on March 1, of the excess from the sale proceeds of these businesses over their book value of $1.1 billion. In addition, Union Carbide is increasing the regular annual dividend on outstanding shares from $3.40 a share to $4.50, before the stock split nal for information on "no-load" funds and talk with a stock broker about "load" funds that might meet your need. Marilee Heydt, a broker in the Louisville office of Prescott, Ball & Turben, specifically likes American Capital Pace or Carnegie Cappiello Growth Trust for a person in your situation. King Investment Co. OWhat happened to the King In- vestment Co. that operated in Louisville in the early 1970s? Z. W., Glendale, Ky. A Harry J. Klein, the owner, died in 1979. Bertram Klein, chairman of the Bank of Louisville, the rides that are planned for an as part of a entertainmentlodging package. The fair board and state finance officials have approved a 20-year lease for the operators to run the park and fair midway. Investors are to pay the state a minimum annual rent of $175,000 the first 10 years, plus a percentage of gross sales. The park, which will be built with private money at an expected cost of $12 million, will be built on 17 acres along Crittenden Drive on the west side of the fairgrounds. The general partner is the Michael A. Jenkins Investment Co. Jenkins is president of Leisure and Recreation Concepts, which offers consulting and design services to theme parks and other attractions. Kentucky Kingdom will be the first park in which Jenkins has actually been an owner. He Is considered to be "one of the more creative people in this industry," according to John Graff, executive director of the International Association of Amusement xTcKERlSre From Staff, Dow Jonas and AP Dispatchas Two named to Fed board A Lawrenceburg banker and Glasgow construction executive have been named to the Louisville branch of the Federal Reserve Bank of St. Louis for three-year terms. Reappointed to the board is Allan S. Hanks, president, Anderson National Bank. Replacing Henry F. Frigon is Lois H. Gray, chairman of the board of James N. Gray Construction Co. Inc. Treasury note sale The U.S. Treasury will sell $6.5 billion worth of seven-year notes on Tuesday and $4.75 billion worth of 20-year, one-month bonds on Wednesday. Both are available in $1,000 minimum denominations. Purchase offers must be submitted by 1 p.m. on the day of sale or by noon on the sale day to financial Institutions making purchases for customers. Dean Foods buys Ryan Milk Ryan Milk Company Inc., which is based in Murray, has been acquired by Dean Foods Company, according to both companies. Ryan, a processor of long shelf-life specialty dairy products, had sales of about $50 million last year. No personnel changes are expected at Ryan, according to a news release. Construction spending up U.S. construction spending rose 0.5 percent in November, pushed upward by strong advances in construction of office buildings and shopping centers, the Commerce Department reported yesterday. was named executor of the estate and is liquidating its assets. You can write Klein at the Bank of Louisville, 510 W. Broadway, Louisville,. Ky. 40202. Van Kampen Merritt Ol'd like the address for the Van Kampen Merritt fund. Also, can I buy direct from the fund or do I have to go through a broker? (Name and address withheld.) 4 Van Kampen Merritt, part of A. the Xerox Financial Services Co., is located at 1901 N. Naperville Blvd., Naperville, 111., 60566, or you can call toll-free at 1-800-468-5900. You can buy direct from the company, although you'll still pay a MODEL OF KENTUCKY 1 . Log-flume ride 2. Chair swing 3. Cinema ' 4. Restaurant 5. Kentucky Crafts Village 6. Main entrance amusement park that is to be Parks and Attractions in Alexandria, Va. Others agreed Jenkins' involvement is a plus but noted it's difficult for smaller parks to do well. "The biggest problem is the second year attracting people back again," said Harold Vogel, an entertainment-industries analyst for Merrill Lynch & Co. in New York. While bigger parks may cost significantly more for admission, some people may perceive that they offer more for the money, he said. But Tom Powell, editor of the trade publication Amusement Business, strongly disagreed with other analysts who questioned Kentucky Kingdom's chances for success. "People want to be entertained," he said. "I feel it will definitely work, but it all depends on how they promote it." Powell noted that some smaller, regional parks are doing quite well. For example, Liberty Land in Memphis, Tenn., got off to a slow start in 1976 but is now flourishing, Farmers Home Administration ends foreclosure moratorium e Tha Washington Post WASHINGTON The Farmers Home Administration, ending a court-ordered two-year moratorium, will begin notifying farmers next week that if they are delinquent on federal loans they must immediately take steps to repay or restructure those loans or face foreclosure on their farms. Letters will be mailed out to farmers who were at least $100 behind in loan payments at the end of December. About 90,000 farmers, a third of all those who took out FHA loans, are estimated to be behind in their payments. The letters will tell the farmers Market gets sluggish start on '86 Associated Prasi NEW YORK The stock market got off to a sluggish start on 1986, drifting lower in quiet trading yesterday. The Dow Jones average of 30 industrials, down more than 12 points at its lowest levels of the day, was off 8.94 at 1,537.73 by the close. Volume on the New York Stock Exchange came to 98.96 million shares, down from 112.65 million Tuesday. Occidental Petroleum led the active list, unchanged at 31, while Mid-con was down '8 at 693g. Occidental agreed to acquire Midcon for cash and stock, topping a hostile bid for the company by an investor group. Union Carbide climbed 2 to 7314, and GAF tumbled 534 to 53i4 after GAF raised its bid for Union sales charge of 4.75 percent, which la rprlnrerl nn investments of $100,000 or more. Selling a single share O After I sold my Phelps Dodge stock, I found that I still had one share left. Is there any way I can sell it without costing me more in brokerage charges than the stock is worth? W. A., Hopkinsville, Ky. A Perhaps you could sell it to a friend for its current worth, then write the Phelps Dodge transfer agent to get the stock certificate reissued in the name of the new owner. There could be apmall fee for this. Otherwise, check around with many of the full-service bro- "yy,wg."' KINGDOM THEME PARK 7. Antique-car ride 8. Steeplechase 9. 300-seat theater 1 0. Crystal Carousel 11. Enclosed roller coaster 12. Children's area Stai built at the state fairgrounds Staff Map he said. In 1985, it attracted 280,827 people to its 17 rides and seven shows. Kentucky Kingdom will have at least one characteristic similar to Liberty Land. Liberty Land is at the fairgrounds of the Mid-South Fair in Memphis. That area also includes the Mid-South Colosseum, where the Memphis State University basketball team plays. Thus, both parks are located at a well-known fairground near a major sports arena. That eliminates having to educate people on how to get there, Powell said. "I think most people in Louisville know how to get to the Kentucky State Fair or Freedom Hall, so . that's a built in advantage." Although Louisville is not as large as Memphis, Carrell thinks Kentucky Kingdom will attract more visitors than Liberty Land be- cause of the high attendance at Redbirds games and the many major events held at the Kentucky Fair & Exposition Center. that they are delinquent in their payments, and spell out seven steps the farmers can seek to take, including having the loan restructured, deferring some payments, combining loans and applying for new short-term, low-interest loans to help with quick cash-flow problems. The farmers will have 30 days to respond to the notices. Vance L. Clark, the FHA administrator, said this week that the notices should not be interpreted as a decision to begin foreclosing on farms. Rather, he said, the letters will tell farmers that they are be hind in their payments and will out-; line the available options. Carbide from $74 a share to $78 a share. Losers among the blue chip industrials included IBM, down 3'2 at 152; AT&T, down at 24, and DuPont, off 1 14 at 66. Nationwide turnover in NYSE-list-ed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 121.88 million shares. Standard & Poor's index of 400 industrials lost 1.99 to 232.57, and S&P's 500-stock composite index was down 1.69 at 209.59. The NASDAQ composite index for. the over-the-counter market edged up .06 to 324.99. At the American Stock Exchange, the market value index closed at 246.50, up .37. 7 kers to see who'll give you the best rate. MatlV discount broker: hnva a $30 or $35 minimum charge. money ULr MAZE Q Questions about investments and money may be sent to Money Maze, co Marketplace, The Courier-Journal, 525 W. Broadway, Louisville, Ky: 40202. Every question cannot be answered, but all will be considered. Personal replies cannot be guaranteed. Advice given in this column is not intended as a solicitation or endorsement of specific securities.

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