Democrat and Chronicle from Rochester, New York • Page 42

IOD DEMOCRAT AND CHRONICLE, ROCHESTER, N.Y., THURSDAY, NOVEMBER 29. 1984 rannra nrnr specialized nnniiET Businesses, both gay and straight, seek the patronage of the area's homosexual community. Read tomorrow in Business. Democrat anil (Cbromrii OO nTTTT Li i I X. i C2LP HASTES More jobs open up Index base, 1967 100 145-j 135 1 I I IT 11 1 United States 105 95 Democrat and Chronicle Business Help-wanted advertising, which had declined for the previous two months, rose in the Rochester area in October, the Conference Board reports.

Advertising of job openings also rose nationwide. The index that measures Rochester ads was 74 in October, up almost 6 percent from September and 37 percent ahead of a year ago. For the 51 papers included throughout the country, the index was 136, up 5 percent for the month and 23 percent from October 1983. The seasonally adjusted indexes compare current ad levels with those of the base year 1967, which is given a value of 100. "Although (U.S.) help-wanted advertising volume was up in October, it rose only to the level reached last July, suggesting that new hiring has slowed dramatically for the pace set in the first year and a half of recovery," cautioned Kenneth Goldstein, Conference Board economist.

The economy's growth rate has slowed to the point where the number of new jobs opening up in October only matched the number of people beginning a new search. Consequently, the unemployment rate remained virtually unchanged." 85 Stock market tumbles Associated Press The stock market fell sharply yesterday as Wall Street shrugged off most major banks' adoption of an 11 percent prime lending rate, the lowest since March. Much of the downturn came in the final hour. Blue-chip issues, which paced a broad advance on Tuesday, this time provided the downside cue for the overall market. Airline stocks also were notable casualties, along with retail, computer and auto stocks.

The Dow Jones average of 30 industrials tumbled 14.80 to 1,205.39, erasing its 7.84-point gain on Tuesday. The Dow Jones average of 20 transportation stocks also fell sharply, but its average of 15 utilities gained a fraction. Big Board volume slowed to 86.30 million shares from 95.47 million in the previous session. Airline stocks fell after Richard J. Ferris, chairman of UAL the parent of United Airlines, told securities analysts that profits for UAL and other carriers would remain under pressure next year and that the analysts estimates for the industry's 1985 earnings were "a little high." UAL's stock fell $2 to AMR, parent of American Airlines, tumbled $1.25 to Delta fell $1,125 to $39 and Trans World Airlines lost 37.5 cents to $9,625.

The Big Three carmakers General Motors, Ford Motor and Chrysler all posted point-plus declines. Among the blue chips, IBM fell $1,625 to $123,125, General Electric lost $1 to $56,375 and International Paper dropped $1.25 to $51,375. LOCAL STOCKS 1983-84 Sale High Low in 100 High Low Clot Chg 55 40 Vi American Can 373 50 49 49- 45V, AatoeDry Good 513 57 56 563. v. 29'.

17 Bauch Lomb 2672 25 25 25H V4 59' 44 Burroughs 3069 56 V4 54 54 -IVi 36 25 Canandaigua Win 21 34 34. 34 17 12 Champion Prod. 39 27 Citicorp 5243 36 35 35 66 49 Coca-Cola 2124 63 62 62 57 39 Col! 191 53 52 52 V4 24 8 Computer Consoles 848 9 8 8 28 21 Curtice-Burn 4 26 26 26 54 42 OuPont 2033 47 46 46- 78 60 Eastman Kodak 4091 73 71 71 -1 14 8 Fay's 209 10 10 10 48 33 Gannett 251 45 45 45 82 61 General Motors 5933 77 76 76 -1 54 39 General Signal 315 47 47 47 17 11 Gleason 17 12 12 12 13 8 Graham 42 22 Harrit 940 29 29 29 88 69 Minn. MiningMfg 1702 82 81 81 -1 32 23 Mobil 6477 30 29 29- 45 31 Pennwall 47 35 35 35- 19 12 RG4E 496 18 18 18 33 27 Rochester Tl 21 31 31 31 42 29 Sear 3563 32 31 31 25 16 Sybron 191 19 19 19 15 9 Voplei 16 9 9 9 52 33 Xerox 4837 38 37 38 52 week high; 52 week low; ex-dividend Rochester ONDJFMAMjjAsO '83 '84 Source ol data Conference Board Democrat and Chronicle Gold price, New York $330.75 dfc $2.75 Dow Jones Industrials 1.205.39 14.80 Wilshire value of 5,000 stocks $1,682,683 billion $10,134 billion Prime interest rate 11.25-1 1.75 unchanged Federal funds rate, near close 8.75 percent 0.125 point Xerox to rent space Gannett to print USA Today in Genesee County Batavia Daily News plant to expand to handle contract would conflict with USA Today. Spezzano added that there have been "early discussions" about using the Batavia site for printing certain sections of the Rochester papers.

Gannett Rochester newspaper carriers probably would deliver USA Today under the new arrangement, he said. James W. Higgins, general manager of Johnson Newspaper, speculated that, as competition, a timelier USA Today "would have some modest effect on Rochester and Buffalo morning papers. You'd have an honest-to-God morning paper with all the Monday night football scores." Allen H. Neuharth, Gannett chairman and chief executive officer, said there would be no effect on Gannett Rochester newspapers, which have a combined Monday-through-Friday daily circulation of 244,075.

"USA Today is still an additional buy, for people who want the national perspective," Neuharth said. "I expect it will increase total circulation." Although Gannett does not release regional circulation figures for USA Today, the newspaper is bought by an average 5 percent to 7 percent of newspaper readers in a market, Spezzano said. Buyers of USA Today in Rochester represent only 1 percent to 2 percent, he said, which Gannett hopes to triple under the Batavia arrangement. Started in September 1982, USA Today has become the third largest daily newspaper in the United States, with the latest audited circulation at more than 1.3 million. It's printed in 26 locations.

"We started in the major markets, and now we're filling in some gaps," Spezzano said. "Western New York was a gap." By John P. Campbell Democrat and Chronicle Business USA Today, Gannett Co. national daily newspaper, has established a printing site in Batavia, Genesee County, for distribution beginning next July in the Rochester-Buffalo-Syracuse area, Gannett officials said yesterday. The move will enable late editions of USA Today with the previous night's sports scores, including West Coast scores, and other late-breaking news to be delivered in Rochester by the early morning, said John Garvey, vice president of production for USA Today in Rosslyn, Va.

That's about five hours earlier than current delivery, he said. USA Today editions that circulate in western New York currently are printed in New Kensington, and Harrison, N.Y., just north of New York City. "The last papers out the door leave at 5:30 a.m., and it takes six hours to truck them up to Rochester," Garvey said. Gannett signed a three-year contract Monday with Johnson Newspaper Corp. in Watertown, which owns the Batavia Daily News.

Terms were not disclosed. The Batavia afternoon paper, with circulation of about 14,000, was chosen because it's located midway between Buffalo and Rochester, said Vincent E. Spezzano, publisher of Gannett Rochester Newspapers Democrat and Chronicle ing sites by satellite. The addition will triple the current press size, Garvey added, and Johnson will be able to use the new presses for other printing as well. Hiring by USA Today for about 20 new Batavia jobs will start in April, Garvey said.

Two factors ruled out printing USA Today in Rochester, Spezzano said: the Democrat and Chronicle and Times-Union use letterpress presses that would be incompatible with the USA Today presses. And the Rochester presses run on schedules that and president of Gannett's northeast region. He also is president of USA Today's international group. Spezzano said the Batavia Daily News uses offset presses that can be easily enlarged to accommodate USA Today's high-quality color graphics. An addition at the Batavia plant, to house new presses and facilities to receive satellite transmission of each USA Today layout, will start next week at Johnson Newspaper's expense, Garvey said.

USA Today is electronically transmitted to print- Exxon negotiating to sell its office-systems business at Gateway Centre Xerox Corp. has signed a three-year lease for 42,000 square feet at the Gateway Centre, 1.50 E. Main that will be occupied by 300 administrative employees, who will be transferred from the company's Mid-town location and from Xerox Square. "We wanted all the administrative people in one location for a more efficient operation," said spokesman John Rasor. Xerox currently leases about 28,000 square feet at Midtown, but doesn't intend to renew the lease when it expires in March, Rasor said.

Also, the company's need for space at the Marine Midland building near Manhattan Square Park will probably drop from 30,000 to 15,000 square feet when the lease expires in January. The major tenant at Gateway Centre is Blue CrossBlue Shield, which leases about 200,000 square feet of the complex that underwent a major renovation by its owner, the Farash Corp. to make new 'hybrid' lens Bausch Lomb Inc. of Rochester said yesterday it will manufacture and sell a rel-'atively new "hybrid" contact lens developed by Precision-Cosmet Co. a subsidiary of Frigitronics Inc.

of Shelton, Conn. The Saturn lens combines a rigid gas-permeable center, known for visual sharpness, with a soft edge for more comfort. spokesman Franklin T. Jepson said final FDA approval of the lens is expected in the first half of 1985, but the company hasn't determined when it will start marketing the lens. Warren West, president of Precision-Cos-met, said the contract calls for to sell lenses made by Precision-Cosmet.

also gets non-exclusive rights to manufacture the lens on a royalty basis. State fines Rite Aid chain The Rite Aid chain, which operates 24 stores in the Rochester area, was fined $5,000 and agreed to change procedures when buying new pharmacies, New York Health Commissioner David Axelrod said yesterday. The case involved Rite Aid's acquisition last year of the pharmacy at 2918 Dewey Ave. The company admitted that it illegally dispensed controlled substances from that location without first obtaining state inspection and approval. Charges against the individual pharmacist were withdrawn.

Fines were also imposed on two Rochester businesses for violating state health laws. Israel Bakery. 1248 N. Clinton paid a $500 fine for unsanitary conditions. Scott's Grocery, 642 North was fined $200 for unsanitary conditions.

The case was referred to the state attorney general's office because the store has not settled the fine. Briefly Detection Systems Inc. of Fairport continued to sustain losses and lower sales in its second fiscal quarter, ending Sept. 30. The manufacturer of security and energy management systems reported a net loss of $195,849 on net sales of $2.2 million, compared with year-earlier sales of $2.5 million and a loss of $157,650.

For the first six months of fiscal 1984, DSI had net losses of $393,657 on sales of $4.6 million. For the same period in fiscal 1983, DSI reported losses of $273,398 on sales of $4.9 million. Duff Phelps Inc. of Chicago announced that it has upgraded its ratings for Rochester Telephone Corp. first mortgage bonds from 2 (high AA) to 1 (AAA) and debentures from 3 (medium AA) to 2 (high AA).

U.S. business productivity dropped 0.7 percent in the third quarter of this year, breaking a two-year string of increases and reinforcing recent indications of a sharp national economic slowdown. Declining interest rates in October did not boost the building industry as sharply as some analysts had expected, as the value of new construction contracts inched ahead 2 percent from September's lackluster leveL Most major banks settled yesterday on an 11.25 percent prime lending rate, a half-percentage point lower than had prevailed at the beginning of the week and the lowest level since March. The only major bank that remained above the 11.25 percent level was No. 2 Citibank, at 11.5 percent Bond prices fell.

Silver price on the New York Commodity Exchange, $7,080 per troy ounce; Handy Harman $7,095 per troy ounce. Compiled from reports by Democrat and Chronicle. Associated Press and United Press International Britons crowd banks to buy Telecom shares Associated Press LONDON History's biggest stock issue ended yesterday in Britain with thousands of investors, from experienced brokers to first-time capitalists, jamming banks to apply for shares in the soon-to-be denationalized communications giant British Telecom. Since Nov. 16, as many as 2.5 million people were reported to have applied for the 1.17 billion shares that will be sold domestically starting Monday.

The government of Conservative Prime Minister Margaret Thatcher is selling 50.2 percent of British Telecom as part of its campaign to return to private enterprise Britain's mostly money-losing state industries. A total of 3.012 billion Telecom shares is being offered, to raise 3.9 billion pounds ($4.7 billion) for the government. Shares will also be sold in the United States, Canada and Japan at prices yet to be announced. Since the government fixed a price of 1.30 pounds ($1.56) per share for the stock going on sale domestically, Britons have been applying to invest in the utility, encouraged by brokers' predictions of huge profits and a slick advertising campaign portraying a high-technology future for the company. So hectic was the rush to buy that the Bank of England ordered 1.5 billion pounds ($1.8 billion) made available to banks to make up for what investors were withdrawing to pay for shares.

In the City of London, as the capital's financial district is called, there were scenes of delight and anguish as applicants lined up 10-deep at banks to submit the required forms by the 10 a.m. deadline. Some reached the door only to see it shut. "I had 1,500 pounds ($1,800) to invest," sighed Edward Kieran, who arrived too late from Chelmsford, northeast of London. "I suppose it will have to go back to the Abbey National," a savings and loaii bank.

Published reports said there were many more buyers than blocks of shares available and the price would probably jump 20 to 30 percent when trading begins Monday. Individual investors will not know until Dec. 7 whether they own stock, but large companies and groups have stocks available. Unlike the deeply indebted state-owned coal, steel and shipbuilding corporations, British Telecom the world's fourth-largest phone utility after those in America, Japan and West Germany is a big money-earner. Pretax profits last year were 990 million pounds (then $1.49 billion) and are forecast to rise to 1.35 billion pounds ($1.65 billion) by the end of this year.

prise. "While we normally do not respond to rumors about our organization, I will say that discussions regarding the sale of Exxon Office Systems are being held," said Juliet McGhie, an Exxon spokeswoman at the company's New York headquarters. She called the report of a $1 billion writeoff "absurd," and put the net assets of the office-equipment business, excluding cash and accounts it has yet to be paid for, at about one-tenth that size. That, she said, represents "an extremely small part, about one-quarter of 1 percent, of the Exxon organization." Exxon's assets totaled $63 billion last year. It had earnings of $4.1 billion on revenue of $72.7 billion in the first nine months of this year.

Energy and chemicals busin- esses accounted for nearly all the profit. Exxon has been trying to penetrate the office-systems market since the early 1970s in an effort to diversify from its primary business of energy, chemicals and minerals. Its products include Qwip facsimile equipment for transmitting printed information over telephone circuits, Qyx electronic typewriters and microcomputer components and Vydec word processing systems. Associated Press NEW YORK Exxon Corp. said yesterday it is holding talks about the possible sale of its office-systems business, a venture to diversify the world's largest oil company that failed to make inroads in a rapidly growing industry.

It did not identify the potential buyers. The disclosure that the office-automation business was up for sale did not come as a surprise, considering Exxon's struggles to get a foothold in the business against competitors such as International Business Machines Digital Equipment Data General Wang Laboratories Inc. and Xerox Corp. "It was like being in a room full of Mr. Ts and you're a 97-pound weakling you're not going to last very long," Joseph Levy, a vice president at International Data an office-automation research firm, said of Exxon's position in the industry.

Mr. is an actor who portrays heavyweight brawlers in movies and on television. Exxon issued the statement in response to a report yesterday in the Washington Post that it is quitting the office-equipment business and is preparing to write off an investment of more than $1 billion in the enter Certain ARM payments are going up while market interest rates fall Isaac Newton would be shocked. If he watched an apple leave its tree today, it would probably fall up. hat, at least, is the law of gravity as propounded by many owners of adjustable-rate mortgages (ARMs).

Interest rates have been going down, but if you're holding an adjust able-rate mortgage, it is possible your own mortgage pay ments are rising. Average rates on new fixed-rate mortgages have dropped more than half a percentage point since July, but on new ARMs, the rate is hardly changing at all. 1 his discovery has shocked many home buyers. Thev knew their ARM interest rate would rise when general market rates went up. But they expected to benefit from lower payments when rates went back down.

Their hone will come true if interest rates stay low enough, long enough. gage rate could be going up while others are going down. Your ARM may have a floor that doesn't let the interest rate fall much below your initial payments. If you're thinking about taking out an ARM, you'll find a lot of useful information in two free publications: the Consumer Guide to Adjustable Rate Mortgages (write: ARMs Brochure, Federal National Mortgage Association, P.O. Box 23867, Baltimore, 21203) and What You Should Know About ARMs (write: ARMs, Mortgage Bankers Association, 1125 15th St N.W., Washington D.C.

20005). But neither tells you all of the risks listed above. The interest rate on brand-new adjustable-rate mortgages has been holding pretty steady in recent months, which makes them less attractive vis-a-vis the fixed-rate loan. In New York City, ARMs are now only 1 percentage point cheaper, which has convinced many borrowers to lock in fixed rates instead. Elsewhere in the country, ARMs tend to be 2 percentage points cheaper.

One thing holding new ARM rates up is the built-in inflation protection that borrowers have been demanding. They want 1 percent to 2 percent limits on how high the interest rate can rise in any year, and a rise of no more than 5 percentage points over the life of the loan. These guarantees cost the bankers money, and they have been pricing new ARMs accordingly. Write to consumer columnist Jane Bryant Quinn care of the Washington Post Writers Group, 1150 15th St. N.W., Washington, C.

20071. inriE dryhit oumn ferent interest-rate indexes, and not all of those indexes are going down. Many savings and loan associations, for example, link their ARMs to the average contract rate of the Federal Home Loan Bank Board. That index rose from April to September, spelling higher payments for consumers, even though the interest charged on new fixed-rate mortgages started down in August. An airline pilot in California filed a class-action lawsuit last May against the Bank of America, claiming that the bank misled him about his mortgage terms.

His ARM rate has risen steadily since 1979, even though the general level of interest rates took a dive between 1981 and 1982. The pilot's loan was linked to the average cost of funds for in California, Nevada and Arizona an index commonly used for ARMs in the West. But it reflects the higher interest have been paying on savings, so it is keeping mortgage rates for ARM borrowers up. Generally, the best ARMs are tied to the one-year Treasury-bill index, which most rapidly reflects interest changes. Your bank may be able to apply interest-rate increases retroactively.

Say, for example, that under your loan agreement, your mortgage rate can rise no more than one-quarter of 1 percent every six months. If rates actually went up 1 percent in that period, the bank could save the unused three-quarters of 1 percent and apply it later. Your mort tsut in the meantime, AKMs are like an apple falling up. 1 here are several reasons why your monthly ARM pay ments not be responding to lower interest rates: You got your loan last year at a promotional, interest- rate discount. In the second year, your payments have to rise to the current mortgage rate, whatever it may be.

Many of these discounted loans were actually programmed to carry higher interest rates in the later years. I he payment on your ARM may change only once a year. So for many borrowers, it is still too soon to feel the effect of the drop in interest rates. If rates go back up again in a tew months, your payment may not change at all. You picked the wrong ARM.

The interest rate on an adjustable-rate mortgage can be tied to one of several dif-.