Democrat and Chronicle from Rochester, New York on April 4, 1985 · Page 44
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Democrat and Chronicle from Rochester, New York · Page 44

Rochester, New York
Issue Date:
Thursday, April 4, 1985
Page 44
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14D DEMOCRAT AND CHRONICLE, ROCHESTER, N.Y., THURSDAY, APRIL 4, 1985 THEIR HOUSE TO YOURS A local bank makes house calls to offer customers free financial advice. Read tomorrow in Business. Democrat anil (Chronicle -3 VAV Unease hobbles market Associated Press The stock market posted its second straight loss yesterday, beset by uncertainties over interest rates and the economic outlook. Airline, telephone and big-name computer and technology issues were among the leaders of the retreat. The Dow Jones average of 30 industrials, off 7.07 Tuesday, fell another 7.62 points to 1,258.06. Analysts said the market's recent sluggish behavior has prompted investors' interest in stocks to dwindle, at least for the moment. Though many analysts insist that the economy remains healthy, talk continues of a possible business slump starting later in the year. The firm of Oppenheimer & Co. recently forecast a recession beginning around mid-1985. The economy is "losing, not gaining, momentum," said Oppenheimer's Francis H.M. Kelly in a commentary published Tuesday. Brokers also say there is a great deal of uncertainty about the future course of the Federal Reserve's credit policy. Advance estimates are that the Fed's weekly report after the close today will show a large increase in the money supply. Hilton Hotels jumped $8.50 to $72.25 on word that Golden Nugget plans an offer of $72 a share for a block of Hilton shares held by the estate of Conrad Hilton. LOCAL STOCKS 1984-85 Sals High Low in 100 High Low CIom Chg 55 40 Vi American Can 1339 53 53 53Vi - H 61 Vt 45 Vi Auoc Dry Goods 171 58 57 58 V. 28 17 Vi BiuichlLomb 1681 26 26 26- 65 Vi 44 Burroughs 1277 59 58 59 36 25 Canandaigua Win 21 33 32 33 1 17 12 Champion Prod. 4 14 14 14- 47 27 Citicorp 1448 42 42 42 - 70 49 Coca-Cola 1347 69 68 68 - 63 39 Colt 231 59 58 58 - 19 6 Computer Coniolaa 727 8 7 7 28 21 Curtice-Burni 5 24 23 24 54 42 DuPont 2986 52 51 51- 78 60 Eastman Kodak 3887 69 68 69- 13 8 Fay's 99 10 10 10 - 58 33 Gannett 712 58 58 58 - 85 61 General Motors 6706 73 72 72- 53 39 General Signal 745 44. 43 43 17 11 Gleason 48 12 12 12 16 8 Graham 36 22 Harris 835 27 26 27 86 69 Minn. MiningMfg 2366 81 80 81- 32 23 Mobil 3277 29 29 29 40 31 PennwaH 34 39 38 38- 21 12 RG&E 676 u21 21 21 37 27 Rochester Tel 113 36 36 36 37 29 Sears 6488 34 33 33 - 22 16 Sybron 138 19 18 18 - 12 8 Voplex 2 10 10 10 - 46 33 Xerox 7609 44 42 43 -1 u - 52 week high; d 52 week low; x - ex-dividend Chasing February chills Democrat and Chronicle Business A cooler February pushed up energy consumption in the Rochester area, according to figures from Rochester Gas and Electric Corp. Utility customers used 509 million kilowatt-hours of electricity 4:4 percent more than a year ago, and 78.2 million therms of natural gas 13.2 percent more, said RG&E spokesman Richard Peck. It was "strictly weather" that caused the increases, Peck said. February was "a turnaround from last month," he said January was warmer than normal and demand for energy fell. For electricity, residential customers used 8.3 percent more than in February 1984 and commercial use grew 6.1 percent. Industrial and municipal demand fell by less than 1 percent each. Residential demand reflects changes in the weather more than other categories do, Peck said. Commercial use of natural gas showed the biggest rise at 15.1 percent, with residential use up 13.9 percent, industrial up 9.2 percent and municipal up 8.7 percent. Dow Jones Industrials 1.258.06 7.62 Wilshire value of 5,000 stocks $1,844,992 billion $13,396 billion Prime interest rate 10.5 percent t unchanged ROCHESTER AREA ENERGY CCHSUKPTI3M 520 500 480 460 440 420 400 In millions Electricity Natural gas 90 -rn 3 30 iI23ED xr 10 I I I I I I I I IIIIS FMAMJJASONDJF '84 '85 Source of data Rochester Gas and Electric Corp Democrat and Chronicle Federal funds rate, near close 8.5 percent 0.1875 point Gold price, New York $316.75 $5.00 Counteroffer made for Home State? Ohio bankers facing a deadline for matching an out-of-state offer to buy the closed Home State Savings Bank met privately with state banking officials yesterday, hinting afterward that an Ohio institution might make a counteroffer. Ralph Bolen, executive vice president of the Ohio Bankers Association, said the bankers were briefed in general terms about an offer from an out-of-state institution reportedly Chemical Bank of New York and that the Ohio bankers "are now on their own." Gov. Richard Celeste said on Tuesday that an out-of-state offer had been received for Home State, whose closing March 8 triggered a panic among some Ohio savings and loan customers. Celeste, however, gave Ohio banks until yesterday afternoon to meet or beat the out-of-state offer. The deadline passed and his office declined to say whether any offers were received. A news conference that had been scheduled for 5 p.m. was canceled. Briefly The Securities and Exchange Commission is "very much aware" that executives of Wang Laboratories Inc. sold $2.8 million worth of Wang stock two months before the computer maker announced an earnings decline, an SEC official said yesterday. "It's not going unnoticed," said Willis Riccio, SEC regional administrator. "But I can neither confirm or deny an official investigation." First National Bank of Boston took $300,000 in old $100 bills from a reputed organized crime family and exchanged them for cashier's checks without reporting the transactions to authorities, the chairman of the House Banking Committee said yesterday. Rep. Fernand St Germain, D-R.I., who led more than four hours of questioning of bank officials, said it was a case of "the bank that didn't care." However, Bank of Boston Chairman William Brown blamed the mistake on poor judgment by a branch manager who has since retired. Oil company raider T. Boone Pickens Jr. told Congress yesterday that his sights remain trained on the Unocal Corp. but, "I think we're about at the end of the trail in mega-mergers" among energy companies. Pickens, chairman of Mesa Petroleum Co. of Amarillo, Texas, urged the House Judiciary Committee to cast asiae a variety ot legislative proposals designed to discourage hostile takeover bids for major companies. Two officers of the failed ESM Government Securities Inc. and an accountant were charged yesterday with forging the will of the firm's late chief operating officer. Former ESM President Ronald R. Ewton and Vice President Nicholas B. Wallace, both 45, signed as witnesses to a will purported to be that of Alan Novick, who ran the day-to-day operations of ESM until he died of a heart attack Nov. 23. Accountant Jose Gomez was also charged. The will was ruled invalid by a probate judge March 20 after a handwriting expert testified that Novick's signature had been forged. State Supreme Court Justice Bruce Wright in Manhattan ruled yesterday that Consumers Union cannot prevent Remington Products Co. from advertising that CU's magazine gave a high rating to Remington's electric shaver. Techtran Industries Inc., a Rochester-based manufacturer of telephone cost management systems, said it signed contracts worth $3 million for seven branch offices of Executone to market Tech-tran's products. A Techtran spokesman said he expects to sign up 15 more Executone branches by June. Three long-time employees of Faro Industries Inc. in Rochester have assumed ownership and operating control of the company, which fabricates a variety of plastics. The new officers are W. Scott Uhl, president and chief operating officer; Daniel A. Jachimowicz, vice president and secretary; and William H. Ellis, vice president and treasurer. The former owners will provide consulting to Faro and will pursue other business interests. Bond prices fell. Silver price: Handy & Harman, $6,500 per troy ounce; New York Commodity Exchange, $6,445 per troy ounce. Compiled from reports by Democrat and Chronicle, Associated Press and United Press International Oct. 1 still last day for RG&E to provide steam, but . . . jfNWSt t a fill 4 offor nrKon vonantol rtiiiUiMnn 1 3 a ... Heat customers will get a break if the alternate sources aren't ready By John D. Campbell Democrat and Chronicle Business Oct. 1 is the final date for city steam heat users to get steam from Rochester Gas and Electric Corp., unless . . . Those businesses that join the new Rochester District Heating Cooperative aren't ready to take over the reconfigured steam district. Some of those that can't join the cooperative haven't finished installing their own replacement boilers. Both situations are likely to occur. RG&E, which has operated the steam system since 1890, plans to abandon it Oct. 1. Soaring fuel costs following the 1973 Arab oil embargo, fewer customers after urban renewal razed buildings downtown in the mid-1960s, and other problems prompted RG&E to get out of the steam business. Yesterday, the state Public Service Commission upheld its authorization of the Oct. 1 abandonment The decision rejected arguments by the cooperative that it would not have enough time to assume operation of the steam system. The response from RG&E: Don't worry. "If the customer has made an honest attempt to get converted by Oct. 1, we're willing to continue service, if we recover our out-of-pocket cost," said David Lan-iak, RG&E's vice president for corporate planning. The Public Service Commission ruling yesterday said RG&E is free to continue service after Oct. 1 "at existing rates." Laniak said it might be too much trouble to try to raise rates to recover costs, but added that such details haven't been worked out. The cooperative projects it could operate the system by charging $14 per 1,000 pounds of steam, compared with the current average of $20. Next week cooperative President Armand A. Lartigue, a facilities manager at Xerox Corp., will start negotiations with RG&E to transfer a portion of the steam district to the cooperative. The cooperative must secure financing for the purchase (an estimated $2.9 million over 15 years) and part of the operating costs (from $5.9 million the first year to $12.5 million by the 15th year). It must complete construction of a new boiler facility to replace the boilers RG&E will tear down or convert to generate electricity. And the cooperative, which so far has commitments from 18 potential members, hopes to sign on another 40 businesses. Lartigue projects the cooperative can Start ODeratin? bv th snmmpr -f long past Oct. 1. RG&E has informally agreed to operate the system and sell steam to the cooperative for 18 months after the deadline, Lartigue said. ' ; ' The other group concerned with that deadline consists of 35 to 50 businesses and property owners who aren't eligible for the cooperative because they're outside the reconfigured service area. For example, Equitable Life Assurance, which owns the Marine Midland Plaza building, is installing its own boilers at a cost of about $500,000. Equitable plans to have the boilers working by Oct. 1, said Robert Weeks, who works for the building's maintenance firm. Genesee Hospital hasn't yet decided whether to join the cooperative or in-. stall replacement boilers. If it chooses the latter route, the hospital could not meet the deadline, said hospital Executive Vice President Albert Charbonneau. Job training grants announced for 22 programs hocnester, Monroe to get $1.5 million from federal project By Ed Lopez iod TnniMHG GnnuTS Programs in Rochester and Monroe County Democrat and Chronicle Business The Private Industry Council announced grants worth $1.5 million yesterday to fund job training programs for more than 1,100 Rochester and Monroe County residents. The money, obtained through the federal Job Training Partnership Act, will support 22 programs offering training in a variety of jobs, from electronic assembly to clerical employment. The programs will last from July 1 through June 30, 1986. "Those who have found employment as a result of our currently operating programs include persons who normally would find it difficult to obtain good jobs," said Matthew Augustine, chairman of the Private Industry Council and president of Eltrex Industries Inc. in Rochester. The council, along with the city and county, administers the funds. Although the funding is $1.5 million, the net gain to the community will be more than $4.4 million, Augustine said. First-year wages for people employed after the training programs are projected to be $4.6 million, and those people will pay $500,000 in taxes, according to the council. Employment is also expected to eliminate $850,000 in welfare payments. Program Amount of Program Amount of operator contract operator contract ARBOR, Inc. $138,275 Singer Education Division Rochester Tooling and Vocational Rehabilitation Machining Institute . $143,350 , Program $123,750 Urban League OVft-OJT Project $13,824 of Rochester $248,698 Ibero-American City School District Action League $146,782 of Rochester Regional Council Electronic Assembly $40,435 on Afling-GROW $80,098 World of Work $123,300 City of Rochester Office of Assessment Services . $ 13,310 Employment and Training $12,960 Association for Monroe-Orleans BOCES 2 $21,630 Retarded Citizens $45,000 Monroe Community Rochester Jobs, Inc.' College $7,264 On-the-job Training $162,509 Rochester Jobs, Inc $39,525 Co-op Program $19,566 Rural New York Job Service Division, Farmworkers Opportunities $70,389 New York State Department of Labor $61,203 Combining city and county programs Source ol Data Job Training Partnership Act The Job Training Partnership Act was proposed by the Reagan administration to replace the old CETA program. Unlike CETA, the replacement program gives the private sector a greater voice in job creation and is designed to provide jobs only through the private sector. Although the goal is to enlist the private sector to help pay for job training, the $1.5 million in local grants all came from federal sources, Augustine said. The Private Industry Council projects Democrat and Chronicle that 972 persons will enroll in the city program. Of those, 508 are expected to be placed in jobs and 222 are expected to return to school or take "other positive actions" such as continued training. In Monroe County, about 161 persons are expected to enroll in programs, 113 are expected to get jobs and 21 others are expected to continue their education. The projections are based on the council's experience with the program during the previous funding period, when 437 of 1,006 city applicants found jobs and 56 others returned to school or took other actions to increase their chances of finding a job. Of 349 county applicants, 203 found jobs and 24 sought further training. Augustine said that while more and more people need skills training, money for training programs is shrinking. "We want to do business where we see the most success for the shrinking dollars we have to allocate," Augustine said. Loretta C Bowman, director of the Office of Employment and Training for the city of Rochester, said JTPA funding for city programs this year was $1,985 million, a 2 percent increase from $1,947 million in the previous year. However, fund ing for Monroe 1 1 1 '.'.'ww.'.'. pmmmpmn Matt Augustine County fell 46 percent, from $980,127:to $528,844. The criteria for selecting programs to fund include the overall merits of the proposal, which groups are targeted such as youths or Hispanics and the past performance of agencies, Augustine said. A small weekly stipend $16 in the city and $32 in the county is paid to program participants during train ing. A I Araos io get i ayior instrument technology through new joint venture uecii yives luuai Tirrn its first order for new process control unit By Phil Ebersole Democrat and Chronicle Business Arab nations hope to gain a resource more precious than oil as the result of a new joint venture with Taylor Instrument Co. in Rochester and other units of Combustion Engineering Inc. .. Taylor executives say the deal will mean many sales of the MOD-300 process control system and other equipment made at its plant at 95 Ames St. during the next few years. It has given Taylor its first order for a MOD-300 system a $1.4 million unit for Iraq's petroleum industry. Taylor's entire sales to the Middle East region in 1984 were only $1 million. Although factory jobs at Taylor will probably continue to dwindle, the new venture may mean added jobs for engineers, marketing experts and other professionals, said Donald D. Welt, president of Taylor. The company now employs 563 hourly workers and 872 salaried workers in Rochester. The new venture is called the Arabian Engineered Systems and Controls Co., or Arescon for short. It is jointly owned by Taylor's parent company Combustion Engineering (40 percent) and two Arab companies, the Arab Petroleum Investment Corp. (40 percent) and the Arab Industrial Investment Corp. (20 percent). i ne goal or Arab oil-producing countries is to do more than merely pump crude oil and sell it. They want a petrochemical industry that can process oil into petroleum products such as gasoline, and chemical products such as plastics . and fertilizer. Such industries require high technology equipment such as the MOD-300, a computer-based system that monitors and regulates the many steps in processing oil into chemicals, pulp into paper and the like. "Technology is a resource base," said Hossam Beblawi, chairman of Arescon, during a stopover in Rochester Tuesday night. "Any nation that does not acquire high technology is not secure." Beblawi and Eugene Yon, a Combustion Engineering executive who's vice chairman of Arescon, will make a 90-mi-nute presentation at the Arab oil ministers' meeting in Algiers in early May. Yon said the length of time set aside for the presentation shows how important the oil ministers feel the joint venture is. The perception from the Arab side is that this is something truly creative," Beblawi said. "It means a lot not only in dollars, but (for) the whole development of the area." Earlier this week, Taylor announced a joint venture unrelated to Arescon with the U.S. subsidiary of Nokia Corp., a large Finnish electronics company. NokiaTaylor will provide equipment for pulp and paper mills, ranging from individual electronic instruments t.n nntn. mated systems that can operate a whole mill and its power plant. Welt hinted that additional joint ventures may be forthcoming. He said Taylor increased its sales last year for the first time in several years, and expects increased sales again ths year. Taylor made 10 MOD-300 systems last year, and plans to make 25 this year, he said. Negotiations for the Arescon joint venture began in 1981, when Taylor was still part of Sybron Corp. in Rochester, as the result of a chance meeting in Bahrain, a small Arab country, between Taylor's Welt and Beblawi, the Egyptian-born and U.S. -educated head of the technical division of the Arab Petroleum Investment Corp., a company for investing Arab oil revenues in Arab and other developing countries. "Taylor was eager to get into the Mideast market, and was prepared to transfer technology without qualification," Beblawi said in a stopover in Rochester Tuesday night. "This is key ... ' "The attitude of other companies was to get a quick buck and get out. They were not truly dedicated to (helping us) develop a technology base." Nevertheless, Welt said, negotiations probably would have fallen through if Sybron hadn't sold Taylor to Combustion Engineering in 1983. Taylor didn't possess all the technology that Beblawi wanted. For example, it didn't make valves, a key technology in any plant where fluids are pumped through pipes. Furthermore, Welt said, Beblawi had doubts about Sybron's commitment to the process control industry. Sybron's -main interest was, and still is, making medical, dental and laboratory equipment and supplies. Taylor's business fit in better with Combustion Engineering, a supplier of equipment to the energy, chemical, food and wood products industries. - Other units of Combustion Engineering included Simeon, of Bloomfield, N.J., a maker of simulation and control equipment and a trainer of controllers in petro-chemical plants, and Process Analytics of Lewisburg, W. Va., a maker of instruments for analyzing industrial processes. In 1984, Combustion Engineering acquired Jamesbury Corp. of Worcester, Mass., a maker of control and monitoring devices and of high performance valves. Taylor, Simeon, Process Analytics and Jamesbury have been made part of a new Combustion Engineering division, Engineered Systems and Controls, headed by Yon. All these units will contribute to the Arescon venture. Bijan Massavar-Rahmani, a researcher for the Harvard Energy and Environmental Policy Center, who's considered an authority on the Arab oil industry, said the Arescon venture sounds small in dollars TURN TO PAGE 10D

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