The News Journal from Wilmington, Delaware on July 17, 1979 · Page 13
Get access to this page with a Free Trial
Click to view larger version
July 17, 1979

A Publisher Extra Newspaper

The News Journal from Wilmington, Delaware · Page 13

Publication:
Location:
Wilmington, Delaware
Issue Date:
Tuesday, July 17, 1979
Page:
Page 13
Cancel
Start Free Trial

Page 13 article text (OCR)

t" BUSINESS Evening Journal, Wilmington, Dl., Tuesday, July 17, 1979 13 Coal Stocks Dig Up Early Winnings in Carter's Energy Program higher. The company's coal operations this year are benefiting from higher production levels. Although it is too early to pinpoint companies that would participate in a program for synthetic fuels, several issues that might become beneficiaries moved ahead. In an appraisal issued yesterday and prepared prophetically before the president's speeches the Standard & Poor's Outlook noted: "The push for synthetic fuels should clearly bolster the whole industry from the coal producers to the railroads to the mining-machinery manufacturers. Synthetic fuel plants would probably be built on a mammoth scale, with companies like Combustion Engineering, Fluor Corp. and Chicago Bridge and Iron candidates for contracts." Chicago Bridge, a strong performer recently, showed little change yesterday in the market. But Combustion Engineering and Fluor each rose by more than a point. It was hard to spot winners in solar energy stocks yesterday since this endeavor typically involves small segments of large companies. However, Texas Instruments, which recently announced a breakthrough in solar energy, did move ahead by a fraction. The Chicago Sun-Times Service reports lists of the most active stocks in over-the-counter trading are peppered with the names of "penny stocks representing more or less exotic, energy-related companies. For instance: Solar Metrics Inc. and Solar Industries Inc. And Bio-Gas of Colorado, Wulf Oil, Extractive Fuel, Credo Petroleum, Energy Reserves and Altex Oil. The highest triced stock in that group one day ast weeks was Energy Reserves company but also its largest coal company. Exxon is likely to benefit from almost any progressive development on the energy front. Arguing for its purchase of Reliance Electric, Exxon mentioned one possibility far down the road: Between its own scientists and the expertise of Reliance Electric, Exxon just might develop a practical electric car. Conoco is another oil company in the same category. Conoco has been doing some heavy spending on explorations for oil in this country and it also has a significant stake in North Sea oil. It is one of the largest coal companies. Texas Instruments, the great semi-conductor company, provides another example. Recently Texas Instrument let it be known that it is at work on developments in solar energy. The stock shot up five points. and it was selling for less than $6 a share. But the volume of trading was of an amazing order. More than 487,000 shares of Solar Metrics changed hands in one day at 25 cents a share. Everybody, it seems, is looking for the Xerox or the Polaroid of the 1980s. That is, the stock that will zoom from next to nothing to fabulous highs as billions of dollars, government and otherwise, flow into that battle to break America's dependence on foreign oil. For instance, there's the Fischer-Tropsche process for converting soft coal to gasoline and petroleum products. That's the German method, the one Hitler's Germany used to fuel its tanks and planes. It has been proven and improved on a commercial basis by South Africa, which has no oil of its own. There are companies like Exxon, not only the cpuntry's largest oil N.Y. Timet News Service NEW YORK - Coal-related stocks were the initial winners in response to the energy program President Carter unveiled Sunday night and amplified somewhat yesterday in his speech in Kansas City. The development of synthetic fuels, the increased use of solar energy and legislation requiring utilities to shift from oil to coal were parts of the president's speeches that drew special attention on Wall Street. Analysts noted that, while the ambitious program to reduce oil imports by 4.5 million barrels daily by 1990 remained veiled in generalities, the coal sector of the stock market provided a vehicle whereby traders and investors could readily respond. 1 As a result, Burlington Northern, which operates the largest railroad .' i U.S. Is Seeking Drilling Sites For Atlantic Ocean Oil Leases U AW Accuses GM Of Vote Tampering . .i. 1 1 ii lowai k :-, .., i .' ' ' r. f XT She said the government is also asking federal, state and local agencies, universities, environmental groups, other industries and the public to identify areas that should be excluded from the sale because of other uses or environmenta reasons. Karlen said the areas selected will undergo further study by the government. Of 19 exploratory wells drilled in the Baltimore Canyon Trough so far, there have been three strikes of natural gas or oil, 14 dry holes and three still being drilled. One Ten-neco well 105 miles east of here struck both natural gas and oil in the same hole. Passenger Group Lashes DC-10 Order WASHINGTON (AP) - The Airline Passengers Association is challenging the Federal Aviation Administration's order restoring the DC-10 jets to service. The association, in written arguments filed yesterday with the District of Columbia Circuit Court of Appeals, argued the planes should be grounded again until any design problems are solved. In response, the government said the plane is safe to fly and noted continuing inspections of the airplane are required. On Friday, the FAA issued an order returning the planes to service. Last month, the association won a court order grounding the jets following the May crash of a DC-10 in Chicago in which 273 persons died. ATLANTIC CITY, N.J. (AP) -The federal government is asking the oil industry and the public to suggest new areas for drilling off the mid-Atlantic coast as the third lease sale of Baltimore Canyon rights is readied. The Interior Department is asking for comments on which areas should be offered or excluded in the sale scheduled for December 1981. The area includes 19.5 million acres of the Atlantic Ocean off the coasts of New York, New Jersey, Delaware, Maryland, Virginia and northern North Carolina. The closest potential tracts lie in as little as 33 feet of water three miles offshore and extend to water 8,202 feet deep as far as 1 45 miles at sea. Under U.S. Supreme Court decisions, the states have control of waters up to three miles offshore. In August 1976, the Interior Department leased 93 tracts, each measuring three miles by three miles, off the coasts of New Jersey and Delaware in the first Baltimore Canyon area sale. In that sale, the oil industry paid $1.13 billion for the right to drill on the tracts for five years. In a second sale held on Feb. 28, the oil industry bid only $41.7 million for 39 additional tracts off New Jersey, Delaware, Maryland and Virginia. The tracts in the first two sales are from about 58 to about 117 miles offshore and are in less than 500 feet of water. Barbara Karlen, spokeswoman for Interior's Bureau of Land Management, said the government is asking the industry to nominate areas it would like to bid on in the next sale. A . DETROIT (AP) - The United Auto Workers union is accusing a General Motors Corp. plant management of fighting the union when it's supposed to stay neutral and the accusation is delaying the industry's first labor negotiations. The opening of talks was delayed for the first time in memory yesterday as UAW President Douglas Fraser and other top officers upbraided Chairman Thomas A. Murphy and President Elliott M. Estes in a rare pre-bargaining meeting the second in three days. Talks open at Ford Motor Co. today for 197,000 workers and start tomorrow for 110,000 Chrysler Corp. workers. GM's cover 471,000. The traditional handshake across the 52-foot, 7-inch bargaining table was held up for an hour and 45 minutes as Fraser complained that activities of the management of the new assembly plant in Oklahoma City violated a 1976 agreement by which GM said it would neither oppose nor support UAW organizing drives. The 2,200 workers at Oklahoma City vote Thursday on whether to be represented by the UAW. Because of that election and the union accusations, the negotiations were recessed Anli-unionisls Sieve Ilciiin, left, a nil John Knovilton distribute T-shirts in their effort to defeat u UAW vote in Oklahoma City. system in the United States, climbed 2 points to 60 . It is an important coal carrier. Another Western hauler of coal, Rio Grande Industries, moved ahead 2 to 36 . Both of these coal carriers showed strength even prior to the president's latest speeches. Meanwhile, certain coal-hauling roads in the Eastern part of the country also displayed higher prices. Gaining more than a point each were Norfolk & Western and Seaboard Coast Line Industries. Leading producers of coal-mining machinery posted higher stock S rices. The standouts here were Joy lanufacturing, up 3 to 34 V2, and Ingersoll-Rand, up 4 to 55 Vi. Conoco, formerly Continental Oil, and Occidental Petroleum moved ahead by fractions in active trading. Both companies have large coal holdings. Eastern Gas and Fuel Associates also edged fractionally until Friday for top union officers to go to Oklahoma City. GM said it also was sending headquarters executives to the scene to help settle disputes. Fraser told reporters he gave Murphy and Estes "what I thought was evidence that a conspiracy existed between people in management and the anti-union forces there. "I was assured by Mr. Murphy that he wouldn't tolerate it." Murphy and Estes had given similar assurances before and repeated them on Saturday, Fraser said. But yesterday morning, Fraser said, "T-shirts by the thousands' (bearing anti-union slogans) were carried into the executive garage and distributed on company time." George B. Morris, the vice president heading the GM bargaining team, said, "The problem is that every report we get is diametrically opposed to reports that the union gets." He added that plant managers were "doing their dame-' dest to remain neutral." Murphy, Estes and Morris were not being devious, Fraser said, "But somebody's playing games with us at that point." Both sides said they might sign a shorter agreement than the usual three-year contract because of increased economic uncertainy. $903,000 tax benefit that resulted when Phoenix was allowed to apply previous losses against current earnings to reduce its tax bill. For the six-month period ending June 30, the company earned $1.9 million on sales of $78.28 million after a loss of $664,000 on sales of $59.13 million in the year earlier period. President Eugene D. Hug attributed the brighter financial picture to an increase in the company's share of the market and to better Violating Law the year and we won a victory on a snow day," Little said yesterday. "We're going to insist that they pay for snow days this year too." On Feb. 6, 1978, after a near-blizzard paralyzed the East coast, Gov. Pierre S. du Pont IV declared a state of emergency lasting until Feb. 8, telling non-essential state employees to stay home. Du Pont Co. closed its Wilmington headquarters buildings on Feb. 7 and, according to the union, paid workers who stayed home. But the Edgemoor plant and the company's Newport pigments plant remained open that day. ) There's No Place Like Hilton Meeting ISHtOll Banquet IlilfGil Seminar llllf OE1 Wedding HilfOR Conference Hilton BRANDYWINt . E11LT0J 1-95 & Naamans Road CLAYMONT,. DELAWARE (302) 792-2701 Phoenix Continues Its .in imnwii , . I lit;""1 "' -" sJ vJ increase held to the 7 percent originally established by the Carter administration guidelines and much stretched since. Morris said the guidelines as now interpreted by the Council on Wage and Price Stability left room for "a generous settlement that takes into account everything the autoworker really needs." Showing A $32.2 million federal loan that some observers say is essential to the company's survival is hung up in U.S. District Court in Philadelphia where rival Lukens Steel Co. of Coatesville, Pa., has filed a suit to block it. Phoenix plans to use the money to modernize its plants at Claymont and Phoenixville, Pa. Although a government attorney predicted that Phoenix will not survive without the money, Hug has denied it. Phoenix produces steel plate, steel heads, clad and seamless pipe and tube. 1 seminar it. in . A? X AP WirephotO CAREER! rs r Ascntjr) HomeOffice Safe Insulated protection agamsrfire, '"eft ind loss Fire walls equal to 3 ft of concrete U L fire-tested up to 1 700 F fcr 1 hour 3 number changeable combination lock Cash i carry Re9ularly$.84OofJ0W0nly $1 1 9". They agreed to establish their first subcommittee, to explore the union's principal demand, pension increases for retired workers. Fraser has said the union will seek a "substantial" wage increase and improvements in the cost-of-living formula. The UAW, he said, would accept "equality of sacrifice" but would not settle for an Profitable operating performance. Although orders have dropped off slightly during the past few weeks as the U.S. economy slows down, Phoenix still expects a profitable third quarter, he said. "This year we'll approximately double our sales, which is much greater than the rate of inflation," Hug said yesterday. "That's evidence that we are gaining acceptance." Since 1967, Phoenix has had only one profitable year, with aggregate losses during the period of $84 million. Inflsiisn tizlp from Union Park Car & Truck Leasing No Down Payment Union Park Le2s!&3 An makct Penna. Ave S DuPont Si. Wilm 658-7245 GO FOE A Free ummsr MATTUZWS OFFICE FURNITURE CENTER 308 E. Basin Road New Castle, Del. Phone 313-0666 Hours: Mon.-fri, 8 a m. -5 p.m. ii ii- - "'W'l' mmw if-" niwiiiminiiiiii jiwin n" m iui"."""-i. By MARY ROWLAND Financially troubled Phoenix Steel Corp. posted a second-quarter profit yesterday, providing the Claymont-based specialty steel maker with two consecutive quarters in the black and fueling hopes for the first plus year since 1974. Phoenix reported net income of $1.82 million, up 14 percent from the same period in 1978 on sales of $42.36 million, an increase of 23 percent from last year. Nearly half of the earnings came from a DuPont Pays for The National Labor Relations Board ruled yesterday that Du Pont Co. violated federal labor law last year by docking the pay of employees at its Edgemoor plant when they were unable to get to work because of heavy snows. The NLRB ordered Du Pont to pay up for two days in early 1978, according to Thomas L. Little, attorney for the plant's independent union. John Kane, plant manager, said he had not yet seen a copy of the board's decision and could not comment on it. The Edgemoor Du Pont Union, representing about 600 production workers at the pigments plant, charged the company with unfair labor practices , when employees were docked for failing to show up on Jan. 20 and Feb. 7, 1978, after heavy snowfalls. The union claimed that the company refused to negotiate on what amounted to a change in working conditions at the plant. In its decision, the NLRB ordered Du Pont to cease and "desist from the unfair practice and to pay employees for the two days. "It's the hottest day of ATLANTIC CITY Save Parking Feel & Gas Take The Bus (1EMENTE TRAVEL CENTER freePorkina 328-4900 JULY 18fh IS mi DAY ITewark Stationers Invites You To Their 5th Annual Open House Wednesday, July 18th 8 A.N. to 9 P.M. RE Everything (Including NamMataa 1 StottMMry (dnWMn uU i ; DOOt BUSTtR on in f ho Sfore! ipaclal ordri Aeim ik Accnuriu Mi hm (Mn 3 SPECIAL! REFRESHMEMTS- EASINESSES 1 INDIVIDUALS WELCOME! rl sns. now '89 JZ ' " A M'.MSOVNT y DOOR PRIZES- ACCUTRO TIMEPIEC by Bulova "ONIT 30VHAHI' July 24, 7pm to 8:30pm To register call (302) 998-8814 Parents Welcome! M.C. I.A.VISA WSFS CHECKS ACCEPTED goldey beacom college 4701 LIMESTONE ROAD (ROUTE 7) WILMINGTON. DELAWARE 19808 Seeking ii Job; Look News Journal into Classified 44 E. MAIN ST. -NEWARK, BE. (302) 368-4032 icor,..iA.'

Get full access with a Free Trial

Start Free Trial

What members have found on this page