Press and Sun-Bulletin from Binghamton, New York • 13

13-A The Evening Press Binghamton, N. Y. I October 4, 1933s 2 economic sectors looking good Digest By The Associated Press The latest economic signals from Washington point to con tinued improvement in the construction and industrial sectors, even as gold prices sink to a one-year low. In separate reports yesterday, the Commerce Department said new orders to factories jumped 1.1 percent in August, while construction spending rose 2.4 percent. lhe increase in spending on new construction was the fifth straight monthly gain.

The rise in factory orders was a turnaround from the 1.7 percent decline reported the month before. ing above $500 last winter. In its report on construction spending for August, the Commerce Department said the value of new construction put in place during the month was $276.1 billion at an annual rate up 2.4 percent from July and 19.2 percent from a year ago. David Ernst, an economist at Evans Economics Inc. in Washington, said he considered it encouraging that spending on construction of private housing rose 1.8 percent despite a rise in mortgage interest rates.

He also called the 5.2 percent rise in private non-residential building "another piece of fairly good news about the economy." In other economic developments In New York, Citicorp's economics department said it was encouraged by recent signals that economic growth slowed in late summer. "There's no need to fear that the recovery is becoming derailed," the report said. "Instead, we think the latest news signals a more self-sustaining pace of expansion." American Telephone Telegraph Co. asked permission to cut its interstate long-distance telephone rates by an average 10.5 percent, starting Jan. 1.

said it would be the largest rate reduction in its history. The effects of the new rates, however, would vary widely. Agriculture Secretary John R. Block told the 7th World Congress on Agriculture Credit in St. Louis that last summer's drought will boost U.S.

retail food prices in 1984 about 1.5 per- cent beyond the levels expected had there been no drought. means that food prices will rise only 6 to 6 percent, which is consistent with the rest of the economy and which will leave food a real bargain," he said. The Supreme Court left intact a ruling that upheld the Commerce Department's imposition of $75 million in duty fees on Japanese importers accused of "dumping" television sets on the American market. The decision ended a decade-old dis- pute in which several U.S. television manufacturers and labor unions had alleged that the government settled too cheaply in accepting $75 million from the Japanese television makers.

Treasury Secretary Donald Regan said Congress should give President Reagan more control over federal spending through "line-item vetoes." Such authority, currently denied U.S. presidents, would allow Reagan to selectively reject parts of spending bills without vetoing the entire bills that i-might well contain sections he badly wanted. There has been 1 no big White House push to win such authority at the federal level, but Regan told reporters after a speech to the National Alliance of Business, "I'll be pushing for it." On international gold markets, the price dropped below $400 an ounce yesterday for the first time in a year. One of the reasons cited by analysts was a growing impression in financial circles that inflation will remain moderate in the near term. Gold fell $11 an ounce in New York trading to $390.90.

Earlier, it lost $15.50 in London and $14 in Zurich, the most pronounced gold price moves since February. Besides the brighter outlook for restraining inflation, analysts cited slack demand for bullion and concern that debtor nations might sell off gold reserves to help pay their bills, thereby adding to the supply on world markets. Gold prices hit an all-time high of $875 an ounce in January 1980, but fell below $300 an ounce by June 1982 before rebound IBM opens science and art gallery Corey switches to Ford Motors Broome County has a second Ford dealer. Jack Corey's is shedding his affiliation with American Motors to become a dealer for Ford Motors. The papers were signed Friday and the first shipment of Ford cars and trucks are expected to arrive tomorrow, said James E.

Corey, vice president of dealership located at 1279 Front St. in the Town of Chenango. "We've got 76 cars and trucks on the road to us Corey said. Plans are now being made to shift the American Motors franchise to another dealer. Corey said negotiations for a transfer of the dealership to an unnamed party are now under way.

"Ford has a full line. It manufactures the entire gamut," Corey said. "American Motors is just a small car manufacturer and we have that with Mazda." Corey said he will retain the Mazda dealership, but that operation will be moved to a new building to be constructed on his five acre site near the Northgate Plaza. "We've done a really good job with the Alliance, but Ford's has just one car that's the best selling car in the world (the Escort)," Corey said, explaining the reason for dealership change. Ortega sworn in as treasurer Former banker Katherine Ortega was sworn in as U.S.

treasurer. Her signature will appear on 5.8 billion notes with a value of nearly $60 billion during the next year. Her signature will read Katherine Davalos Ortega, to include her mother's maiden name. At a swearing-in ceremony in the White House Rose Garden, she was praised by President Reagan as "a true professional. OSHA to conduct inspections The Occupational Safety and Health Administration said it will conduct about 700 inspections in the next year looking for violations of rules on asbestos exposure.

The inspections for the use of the material, a known cancer agent, will be made both in the construction and manufacturing industries. Companies will be picked at random for checks, OSHA said. Japanese TV ruling upheld The Supreme Court left intact a ruling that upheld the Commerce Department's imposition of $75 million in duty fees on Japanese importers accused of "dumping" television sets on the American market. The decision ended a decade-old dispute during which several U.S. television manufacturers and unions had alleged that the government settled too cheaply in accepting $75 million from the Japanese ft i Mil ji-51 By CHARLES BABCOCK Business Editor NEW YORK IBM has opened a Madison Avenue gallery to showcase art and technology, and in it, one can sense technology's accelerating pace, said Jack D.

Kuehler, one of IBM's chief engineering spokesmen. In opening ceremonies yesterday, Kuehler, a senior vice president of the information systems and technology group, revealed plans to match the performance of 400-cubic foot 3033 IBM mainframe with circuitry concentrated in a one-inch cube. "There are no laws of science standing in the way" of the dramatic shrinkage, he said. Instead of needing 50,000 watts, the miniature version could function with 160 watts. It will be developed within the next 15 years, a period that Kuehler indicated left IBM with plenty of elbow room.

Kuehler offered his example of future gains to be made in computer performance in a 196-seat auditorium associated with the new gallery. Outside the auditorium in 11,500 of display space were 300 machines chronicling the 20th century's march of calculating technology. From the mechanical punch card tabulators, collators and calculators to IBM's first, digital computer, the 701 introduced 30 years ago yesterday, the exhibit displays some rapidly disappearing equipment. It opens to the public tomorrow. Most of the machinery is set off by blond wooden frames and red tile bases; the gallery itself is carpeted with material that resembles a businessman's grey flannel suit.

The gallery is located in a new 43-story office building that serves as IBM's eastern regional headquarters. It was built on the site of the former D3M world headquarters at 590 Madison Ave. The gallery will serve as IBM's New York showcase for both art and technology. Exhibits will be shown on a rotating basis. Thomas J.

Watson Sr. was one of the first chief executives to start a corporate art collection. During the Thirties, he purchased works of art from each country with which IBM did business, and later followed up the move with purchases from all the states, said IBM spokesmen. Eugene L. Fairfield, IBM director of communications programs, said IBM will also be a frequent sponsor of art exhibits, bringing to New York "exhibitions that would not be seen otherwise." He emphasized IBM's support to New York's established museums will continue and IBM will avoid competing with their exhibits.

Several IBM oldtimers attended the gallery opening, and one of them, John McPherson, 72, a former vice president to Thomas J. Watson Sr. "at a time when there were only four or five," recalled the half steps that took IBM from mechanical devices into computers. Until the late 1950s and 1960s, much of the business world recorded its data on punch cards, resembling modern computer punch cards, and stored them fully indexed in tubs, he said. An insurance company employee, wanting information on a policy holder, could find it himself by flipping through the right section of the alphabetized cards in the storage room.

There was a debate within IBM over how quickly the new computers would replace punch card machines mainly because early computers had no convenient storage system that could replace the punch card tub, McPherson said. "Mr. Watson's whole life was the punch card business. Some conservative depart- n- lit IBM's 1947 Selective Sequence Electronic Calculator was the first computer to combine electronic calculation with stored instructions. base to satisfy," McPherson recalls.

They went on to found Univac, one of the first computer manufacturers and a potential competitor of IBM that later failed. Watson's son, Thomas wholeheartedly embraced electronic calculating, and one of IBM's contributions to the field was developing mass storage devices for quick information retrieval, McPherson said. ment heads at IBM pointed out they were solving customer problems with punch cards that the computer couldn't solve," he said. As the company debated, two professors at the University of Pennsylvania developed the first modern digital computer, ENIAC, "because they didn't have any customer Endicott is still a prime IBM location television maKers. Compiled from staff and wire reports Today's report NEW YORK (AP) The stock market rebounded from a week-long decline with a moderate rally today.

The Dow Jones average of 30 industrials, off 29.47 points in the last five trading days, rose 7.83 to 1,239.13 by noontime today. Gainers outnumbered losers by about 3 to 2 among New York Stock Exchange-listed issues. Analysts said the upswing was mainly "technical," with stock prices having fallen to the point where they attracted increased buying interest. But they also said traders appeared to be anticipating good news, on balance, from the third-quarter earnings reports to be issued starting this week. Blue-chip issues, which have been a bright spot in the market over the past several months, continued to stand out today.

International Business Machines rose 1 to 129; General Electric to 54; American Telephone Telegraph Vi to 65, and Eastman Kodak to 70. The NYSE's composite index of all its listed common stocks gained .37 to 96.36. At the American Stock Exchange, the market value index was up 1.02 at 229.74. The 650 was important not so much because of technological advances, he said, but because IBM sold 1,500 to 1,800 of them more than all the company's previous sales combined. Also in the gallery is what Bashe cited as the second of the contributions: the Model 1401.

It replaced tubes with transistors and IBM sold 10,000 units in six years. "It was the first machine designed to spartan specifications and the costs held down" enough to attract new customers to computers, said Bashe. IBM-Endicott's continuing successes included portions of the 360 and 370 large-scale business systems of the 1960s and '70s, through the development of the 4381 midsize computers, introduced at the Glendale lab Sept. 14. All are represented at the exhibit.

But, Bashe added, Endicott contributed more than whole computers, and some of those machines and devices are also on display. The lab developed printed circuit boards and packaging technology used in all IBM computers. Also, high-quality printers developed at the lab helped IBM gain new business customers. By KEVIN MANEY NEW YORK IBM Corp. operates 46 plants and 29 laboratories worldwide.

But about half of an exhibit of IBM's history opening tomorrow in the company's sleek, black office building on Madison Avenue consists of products developed and manufactured in one location: Endicott. "Of all of our locations' contributions, Endicott is one of our most creative," said Jack D. Kuehler, IBM senior vice president and group executive of Information Systems and Technology Group, to which IBM-Ehdi-cott, including the Glendale laboratory, belongs. "They (IBM-Endicott) really haven't stopped making major contributions," said Charles J. Bashe, manager of the Technical History Project.

Bashe, an IBM engineer for 35 years, is working on a book on the company's history. The exhibit, titled Innovation in IBM Computer Technology, will open to the public tomorrow and runs through Nov. 19. It is housed in the IBM Gallery of Science and Art, which is the latest addition at 590 Madison Ave. Executives invited the press for a preview yesterday.

Walking through the exhibit, Bashe said IBM-Endicott is one of his favorite subjects. "Traditionally they're a little under-recognized. They (D3M planners) have tried to legislate computers out of IBM-Endicott. Every once in a while, some master planner would say it would be more economical to build computers elsewhere," said Bashe. "But IBM-Endicott wanted to build computers, and they kept coming up with such good products that they said, 'OK, build he said.

"The Endicott lab and manufacturing operation have for years given us new products that are very successful," Kuehler said. In fact, he said, new laboratories such as those in San Jose, and Raleigh and Charlotte, N.C., had been spun off of Glendale "because they were spawning so many ideas." The earliest Endicott product featured is the Harvard Mark completed in 1944 as the first "automatic sequence controlled calculator." The exhibit showed pictures and a model because, as Bashe noted, it weighed five tons, and when it was made "they had to take a wall out of the lab." A Model 603 Magnetic Drum Calculator was, however, on display. The 1946-vintage 'Of all our locations' contributions, Endicott is one of our most creative. Jack D. Kuehler Senior vice president machine, which stored information on a spinning magnetic drum for quicker access, is descended from Endicott laboratory designs.

Bashe said just 100 were sold "because by the time it was out, we already had so many ideas of how to do it better." In 1948, IBM-Endicott shipped to New York the Selective Sequence Electronic Calculator. The one-of-a-kind machine was assembled in Endicott and was noted for taking up a whole room with vacuum tubes, Bashe said. Just one rack of the tubes is on display. Following those developments, Bashe said, IBM-Endicott in the late-'50s to early-' 60s came up with the two most important contributions in the early history of IBM. Both are on exhibit one is the Model 650.

$393.50 $4.50 S10.380 $.050 Handy Harmon Dow Jones NEW YORK (AP) Dow Jones closing stock av- Suicide prompts hunt for lost gold lConsumerPricesl 1231.30 or 0.15 percent 560.79 or 0.14 percent 135.16 0.48 or 0.36 percent 488.58 or 0.08 percent erages: 30 Indus 20 Trans 15.Utils 65 Stocks Sales: 77,230,000 Percent change from previous period, seasonally adjusted managing the intends to appoint independent management to take charge of the comDanv as soon as possible." Rental equivalency replaced homeowners' costs beginning January, 1983 Mrs. Saxon, who found her husband's body, is "deeply saddened over the death of her hus-hand." the statement said. Last March, Mrs. Saxon filed for dissolution of her marriage, and the action was pending when her husband died, according to Superior Court records. Bullion Reserve sold precious metals to investors, who either accepted delivery of bullion or MO: Area firms the following quotations are furnished by E.

F. Hulton 4 Co. nd represent an indication of current market value at the dost of the last trading session and at 12:15 today. NEW YORK STOCK EXCHANGE Oosinj Car- dosinaj Car- 1 Price iwtOmw fm mnUunts Adam Drue 22 22 -fit E.F.Hutton 37' 374 -V Allied 57 5H IBM 1M2M.1 AMTH 65 Irving Bank 502 SO ft V4 lankolNY MH 61 KroeMer 21 21 -V4 Bankers Trust NY 44 43 -V. Marine Midland 23 23 BectcmOktinsn 40 40 Morton-Thiokol 73 73 Chase Manhattan 48 48 NYSEG 21 21 Chemical NY 42 42 Orion Pictures Cora.

17 18 Columbia Gas 33 32 PepsiCo 33 33 OdVer 32 32 Sain 8 i CAE 14 14 Sinter 24 24 Gannett 58541 Union 5 GE 53 54 USAir 27 27 AMERICAN STOCK EXCHANGE CtampionProd. 1415 Great Amet. Ind. 22 EaysOnits 11 11 Rnbinlech 1 OVER THE COUNTER 1 hkti AsW Cladding Raymond 30 31 Lincoln first 45 45 jubjru 81 82 Ma Pre 1 Victory 18 18 ffyou have a story idea, question or comment regarding business news, call Business Editor Charles Babcock at 798-1152 between 8 a.m. and 3 p.m.

that the company filed for protection from creditors under Chapter 11 of the federal bankruptcy law. "When it became apparent to the company that Mr. Saxon was dead and that it was a suicide, my firm was engaged by the company to investigate the impact of the death on the company," Osborn said. 'His firm hired Touche Ross to audit the company and "established internal security to protect the assets and the financial records," he said. Osborn said auditors found only $900,000 worth of precious metals in the company's Salt Lake City repository less than 2 percent of what it claimed to be storing, Fishlow said.

The Los Angeles County coroner's office said Saxon had left a tape-recorded message "saying his inability to meet obligations to his investors was at least partly responsible for his actions," Fishlow said. Attorneys for Saxon's wife, Susan, said in a statement that she has been appointed special administrator of her husband's estate, but "inasmuch as Mrs. Saxon was never involved in LOS ANGELES (AP) With up to $60 million worth of precious metals missing from its vaults, a gold trading firm whose chairman committed suicide last week has filed for protection under federal bankruptcy laws, officials said. A preliminary audit of the Bullion Reserve of North America, conducted after chairman Alan D. Saxon was found dead of carbon monoxide poisoning, showed that the company had in recent months loaned $41 million to Saxon, his wife and subsidiary companies, according to David Fishlow, a spokesman for New York Attorney General Robert Abrams.

The audit of Bullion Reserve by the accounting firm of Touche Ross Co. also showed that "somewhere between $55 and $60 million of precious metals supposedly in their repository was not there," Fishlow said yesterday. Saxon, 39, was found dead last Wednesday, the day Abrams ordered Bullion Reserve to produce financial and sales data in an ongoing investigation of precious metals traders. Saxon had connected a hose from a motorcycle to a sauna in his suburban Venice home. Richard G.

Osborn, a Beverly Hills attorney representing Bullion Reserve, said yesterday received certificates and paid the company to store the metal. The company suspended trading last Thursday. Fishlow said Abrams has been investigating i 1982 1983 precious metals traders since the collapse of International Gold Bullion Exchange of Fort Lauderdale. Fla. That company was ordered closed bv a Florida court after hundreds of complaints DJ FMAMJJASON Cncago Tribune Chart, Source Department o( Labor Bureau ot labor Statistics ana scores ot lawsuits over unaenverea gom, silver and nlatinum.

Saxon's firm came to the attention of New York investigators because it used the same kind of advertising as the Florida company, Fishlow Chart shows varying price gains 3 JL.