The Journal Times from Racine, Wisconsin • 22

usiness the oornl Time, Tudy, July 22, I960 lUCIne, WM. 4C Government paints bleak economic picture Judicious decisions needed fog a skillfully designed tax program to Improve economic performance." Charles Schultze, chairman of the president's Council of Economic Advisers, said the administration can "gala considerable advantage in waiting" so. (he president can work carefully with Congress on a tax reduction aimed at spurring Investment and productivity, he said. That view was sharply disputed by two private economists, who said the faster a tax cut Is enacted, the better. "The administration's predictions reinforce the argument for a tux cut," said Lawrence Chlmerlne, head of Chase Econometrics Inc.

of Bala Cynwyd, Pa. Otto Eckstein, head of Data Resources Inc. of Lexington, said a tax cut won't come close to offsetting automatic tax increases next year due to rising Social Security payments, tax-bracket creep from Inflation and oil profits. "These extra burdens will hold down consumer spending power," he said year's end, putting almost a million more people out of work, and will not Improve during 1981. Despite the dismal forecast, administration officials said there will be no proposal for a tax cut to stimulate the economy at this time.

"It is quite likely a tax cut will be desirable In 1981," said James T. Mclntyre director of the Office of Management and Budget But be added, "The administration believes strongly that the last months of a congressional session, In an election year, are not the time to make the leased its revised economic outlook Monday, and it was drastically different from the original estimates In March, casting out any hope of a balanced budget for fiscal 1981, which starts Oct. 1. The administration now Is predicting: A UO billion budget deficit for fiscal 1981, a far cry from the $18.9 billion surplus projected In March. A $61 billion deficit for fiscal 1980, up from the $36.5 billion gap expected In March.

A 3.1 percent decline in the na tion's overall economy between last year's fourth quarter and this year's fourth quarter, followed by only a 2.6 percent rebound next year the slowest recovery from a recession since World War II. Consumer prices will rise 12 percent between 1979's fourth quarter and 1880' last three months slightly better than the 12.8 percent pace predicted la March and 10 percent jump next year, a little worse than the earlier expectations. Unemployment will rise from its 7.7 percent now to 8.9 percent by WASHINGTON (AP) Tho nation facet a painfully ilow recovery from recession, with unemployment tuck at 8.9 percent through 1861 and pocket booki continually hit by double-digit Inflation, the Carter administration says. An even gloomier picture of the economy Is painted by the Congressional Budget Office, which Is expected to predict about a 9 percent unemployment rate when Its forecast is released Wednesday, sources said Monday. The Carter administration re Briefly Jobless claims rise in county A total of 6,446 unemployment compensation claims, Including 872 initial claims, was filed In Racine County week before last, the Racine office of the Wisconsin Job Service reported.

That was up from a total of 9,283, Including 727 initial claims, filed In the previous week, and a total of 1,973, including 232 Initial claims, in the year-earlier week. AMC joins in suit against EPA American Motors Corp. has joined four other U.S. automakers In a lawsuit filed against Environmental Protection Agency Administrator Douglas Costle for his Imposition of emissions performance warranty requirements. The complaint, filed in Federal District Court in Detroit, marks the first time all five major domestic auto manufacturers have joined in an action against EPA.

The suit charges Costle failed to promulgate two supporting regulations, on certification of after-market emissions control parts and the specification of proper maintenance for vehicles, prior to the time the performance warranty requirement takes effect. Others bringing suit are Chrysler Ford Motor General Motors and Volkswagen of America as well as the Motor Vehicle Manufacturers Assn. and a Detroit auto dealer. YrT i JM tJ.K' Westgate Mall store will open AP laserphoto Back on the street New York Post delivery trucks are loaded Monday night with the paper's new "early" edition after settlement of a wildcat strike that kept Monday's edi-, tions off the street. The drivers struck Sunday to protest new work schedules set up for the new morning editions, which would have the Post going to press from midnight to 5 p.m.

The Post instituted the new morning paper after the morning Daily News announced plans for new afternoon editions. A women's specialty store called Fashion Plus will open Monday in Westgate Mall, the retail development at 4901 Washington Ave. anchored by a Shopko discount department store. Fashion Plus will operate in 4,030 square feet of space. It will be the first store to open in the 110,000 square foot wing that extends west and north from the Shopko store, which opened last November.

Fashion Plus will be owned and operated by a corporation headed by James Wimpress 5 Greenwood Court, and will carry apparel in juniors and misses sizes. The store will be managed by Laurie Lamberton, 1217 Fairway Drive, who is completing work on a bachelor's degree at Carthage College, Wimpress said. Wimpress, 27, is a 1973 marketing graduate of the of Wisconsin-Madison. He was a manager with Gateway Apparel St. Louis, until Jan.

1, and earlier was with May Department Stores St. Louis, for about three years. Hleatt wiDfts oDd market Schlitz rebounds from loss Jos. Schlitz Brewing Milwaukee, reported second-quarter earnings of $10.1 million or 34 cents a share, compared with a loss of $1.2 million in the year-earlier quarter. The year-earlier results Included an after-tax charge of $4.8 million for the writeoff or equipment.

Second-quarter sales fell 3 percent, to $298.7 million from $305.1 million a year earlier. On a barre-lage basis, sales fell 15 percent, to 4.3 million barrels of beer from 3 million. For the first six months, Schlitz reported earnings of $18.1 million or 2 cents a share, compared with a loss of $2.7 million in the year-earlier half. Six-month sales fell 3 percent, to $531,1 mUllon from $547.8 million a year earlier. On a barrelage basis, six-month sales declined 14.2 percent, to 7.8 million barrels from 9.1 Frank J.

Sellinger, the brewer's vice chairman and chief executive officer, said a previously-announced capacity reduction, achieved through sale of the company's Syracuse brewery, "contributed significantly" to the second-quarter and first-half earnings Improvements. Net up 39 at Standard of Indiana NEW YORK (AP) Standard Oil Co. (Indiana), the first major U.S. oil company to report second-quarter profits, says it earned $488.2 million in the period, 39.4 percent more than it did in the second quarter of 1979. First-half earnings were up 52 percent.

The earnings did not match those recorded in the first quarter, when spirallng oil prices helped propel the nation's sixth-largest oil company to a $575.8 million profit, up 65 percent In the year. According to Wall Street analysts, the cooling of world oil markets in recent months also was likely to be reflected in a slowing of earnings gains at No. 1 Exxon whose quarterly results were expected today. Indiana Standard Chairman John E. Swearingen said the company's gains were due to overseas operations benefiting from "markedly higher worldwide prices for crude (oil) and refined products," and to higher domestic oil and gas prices.

"The company's prospects for the remainder of 1980 continue to be good," but "in light of the current economic recession," Indiana Standard "does not expect the growth in earnings in the first half to be sustained during the balance of the year," Swearingen said. Today's average world crude oil price of nearly $32 per 42-gallon barrel is about double its level at the 'beginning of the second quarter of 1979. The sharp price increase has resulted in declining oil use and a growing world petroleum surplus that have sharply slowed the pace of new oil price Increases. The Chicago-based Indiana Standard's per-share earnings rose to $1.68 from $1.19. Sales rose to $7.3 billion from $4.6 billion.

The company earned $1,064 billion in' the first half, up 52 percent from $700.2 million in the comparable period of 1979. Per-share earnings rose to $3.63 from $2.39, and sales rose to $13.7 billion from $9 billion. Return on equity or the ratio of net income to the book value of shareholders' stock for the 12 months ended June 30 was 22.7 percent, Indiana Standard said. The oil industry tallied a 25.2 percent return on equity in the year ended March 30, while 880 major companies in 40 industries had a 17 percent return, says Business Week magazine. Detroit paper reaches agreement DETROIT (AP) Striking Teamsters maintained picket lines at the Detroit Free Press but they were, preparing to vote Wednesday on a new contract.

Negotiators for both sides reached a tentative accord Monday after a four-hour negotiating session, a federal mediator said. Details were not disclosed. About 550 Teamsters Local 372 district managers, delivery and promotional workers struck the morning newspaper 10 days ago, On the eve of the Republican National Convention; For the past seven days, the Detroit News has published an abbreviated version of the Free Press, tucked inside its own morning edition. The newspaper, which carried the banners of both papers, was not distributed to Free Press home customers. "Assuming that there is acceptance Wednesday, we hope to be back in time to publish a full edition by Friday," said David Lawrence Free Press executive editor.

Teamsters officials were not available for comment Newell shows earnings up 10 Newell Leasing Systems an Akron, Ohio, frock leasing firm which has a faculty at 372 S. Pine Burling ton. reported fiscal year et income after taxes at $300,000, up 10 percent over the preceding year's sbow. Llberto, who helps run the G. Liber-to Bros, vegetable and produce stand.

"Nobody's out here buying. "It's too hot in here. We cant keep the stuff out here. And we've taken the cantaloupes off the shelves completely. In hot weather, they spoil within two hours," he said.

Several of the merchants com--plained Monday of Inadequate air conditioning in the 29-year-old building, built on the original building site. Part of the problem, they said, is the high ceiling. Serio and Liberto said their business has been down 20 to 30 percent for the past week, and said they have reduced the amount of produce they order. On the meat stands, the picture was equally bleak. J.

A. Regan, whose coolers are usually packed with beef and chicken, said his business is also down 20 to 30 percent. He said he is compensating for the heat and the loss In business by buying from local distributors instead of ordering from the West. All three merchants pointed to other closed stands. "There isn't any business, so they're all starting to take long weekends," Llberto said.

BALTIMORE The 200-year-old Lexington Market is known for drawing large lunchtime crowds from downtown businesses. But that hasn't been the case since a sweltering heat wave struck the Chesapeake region last week. Vegetables are wilting, icing is melting from baked goods and many stands are closed. "Nobody's coming out in this heat," said Tony Serio who helps his father operate the Tony Serio Sons produce and vegetable stand. Serio said the stand was selling much more cold, fresh fruit than usual, but that vegetables were suffering.

"Our vegetables are going bad. See this tomato? I put it out this morning and It was good. Now look at it," said Tony Serio Sr. as he picked up an overripe tomato that was squishy when touched. Greens, such as collards, kale and spinach, have been wilting quickly on the produce stands as temperatures range from the high 90s to over 100 degrees.

"This is the season for greens, but we can't keep them fresh," said Joe In the back of the market, at John W. Faidley Sea Food owner and Vice President Bill Devine said he had not cut back on his supply of fish, but "the variety is limited now. The hot weather is cutting the oxygen supply in the water and killing off the crabs." "And there's been a shortage of flounder, black bass and lake trout for the past several weeks," he said. At Muhly's Bakery, Icing was melting off of cakes. "It's getting real yukky," said Betty Lough, while a fan whirled on the counter behind her.

"It's too hot in here. Nobody's buying. We don't have nearly the same amount of food out that we usually have," she said, pointing to empty shelves behind the counter. She said business was so slow the bakery was closing a half hour early on Monday. "The people are afraid to come out," Regan said as the sun blazed down, "and I can't say I blame them.

Grain futures CHIC AOO (AP) Furore trading Friday on tn Chicago Board of Trade: Open Hlftt Lew Clou Chf WHEAT M0 bu.j Treasury bill rates down again WASHINGTON Interest rates on short-term Treasury securities slipped for the second week in a row after three consecutive weekly increases, the Treasury Department said after Monday's auction. The discount rate on 26-week Treasury bills declined to 7.906 percent from 8.110 percent. Based on this week's rate, in the week beginning Thursday savings and loan associations can pay up to 8.406 percent on six-month money market certificates and commercial banks can pay up to 8.156 percent. Meanwhile, the discount rate on 13-week Treasury bills dropped to 7.880 percent from 8.169 percent. 1 Nissan may delay U.S.

plant oetiert per au. 4)1 4 Jul 4 27 Dec 4 ilv, Mar 4v May 4 0 42 417 4S14 47 470 4.71 -03 -OS' 01 Over the counter 441V 4.M 4 72V 4 71V 4.21 44 4M 42V 41 Silver and gold Jul 4Ui SILVER Chiceoo Mid Amrlca 1,000 Ml Frl. J2.24. Total open inter! Frl. 4,1.

up 2.374 from Thurv COItW ku.j Ak ri 14 2) 24 12 1 10 14 14 21 I2' I'M IS DH Oil Franklin El Marin Corp Mart hail II Paott Stoarnt Vtru Tack Dalian per at Jul 121V .1 1211 121V 110 130 ounce Auouit IIS SpimMr i'i October IISH DKtmbtr Hi 10; Ftbfwy I4S, April II to, Junt 117 20, Oc(oMr 117 April III 30- fcltlrrxtod Mitt, contrct GOLD ChKMO Mid Amtrlci 1) 7 froy Ouncn J- SptmW Mil 00; OctotMT MM 00, DcmMr MM March MM 00. Apr MAI 00; Jon M73O0, DtcimtMr 1711 00. Eltimawd tain 1,104 Foreign exchange 3 13 )2J 1)1 'A I) in 1 17 1 II' 121 1.11 IP 1.1 -0M -07' -0 0v 0 -OfVfc Mutual funds Mar May 3 JH Jul 142 V) 144 14 Sale Frl. e4.ni. Tt open inter ett Frl.

102.240, up 107 Irom Thurv OATS Mel but Deuar per ArflliaMd Fun Century snare Trwt Fioaury Fund Invettor Mutual Inmter Stock tnvawor variable Mettecutt in Meuecnuwttt Jul I7 1iv I 72 72V At. t7 12. 7 10 DM 71 1)22 1)02 L. L. L.

L. 4 tn .11 4t .21 47 12 .1200 1JM 7 At the news conference, Ishihara denounced the suggestion put forth by U.S. auto executives that Japanese auto makers should voluntarily limit exports. "If Japanese' car makers impose self-restraints on exports, It is tantamount to admitting" that Japanese sales are hurting the U.S. Industry, he said.

Japanese auto executives do not agree with that assessment, the Journal noted. Instead, Ishihara said, Japan should oppose a boost In tariffs to 23 percent from 4 percent on small trucks Imported by the U.S. that threatens to reduce demand for the. trucks. Earlier, Nissan officials in the U.S.

said the higher tariff, scheduled to take effect in August, could put the company's truck-making venture in the U.S. In doubt Higher prices resulting from the tariff could limit the market and make a truck plant Investment unprofitable, the company said. -04 OS -05 05 -OSVk I 74 I II 1 tlv 201V 2 Nissan Motor the manufacturer of Datsun cars and light trucks, said it may delay plans to build a truck assembly plant in the U.S., apparently because it has yet to choose a site, the Wall Street Journal reported. At a news conference in Japan, Nissan president Takashi Ishlhara said he visited three possible plant sites but ordered more studies. He did not disclose any of the locations or give a reason for further study, the Journal said.

In April, when Nissan announced Its Intent to build small pickup trucks in the U.S., the company said it would choose a site before fall, either In the Great Lakes region or the Southeast. Sources have said that Nissan prepared to announce a site in late July, but that an announcement has been postponed, the Journal reported, adding that It was not clear bow much of a delay. If any. the new studies may cause. i au I KM 21 Mi l4 Dec 14 IH Mar low 3 at Mar 2 07 2 07 iete Frl 114 Total apen mttrptt Tltur.

Frl. llt up 117 from NKheiet Fund Selected Am. WiKomm SOVIIANI 11 Dollar eer aa. (Quetad In A mar lean conn I July 21 liny Vr Aoo "9iod iaol 1J752 I Jt Canada 'a tot ti Autirai.a I ItiS I. law I 121 Bgum 01 OM OM7 Brart 0HO -J Otniwt IM IMI Franca 4'4 2 JM Car many Sal $711 SK Greer 0 03a MOiie JJU 044 lreea I lJ I Itat 2 9M i tree, iey OOi Mil Mil jaoan 004 Mt Mi.ce horw TOPS TOM Portugal 0n 07OJ Svd Aree-e MM too 2t ie-n Sdn 2A 27 3 AJ jU3 4m 2 Jul.

2 70 7 71 7 .7 70 79 10 .1 77V .2 71V 7 71 tea III 71 71 -10 77V -7 47V 7H- 1144 -10 Local interest .71 Caurtety ooert Ca Inc .7 OMv Buaftiern et a IP P3 7v 7P -M 7 7 Mr 10 I II 0 01 SOI 101 -1 0 Mi 1 17 7 Jul A. rn so OPJ Tea open inter HI Frl 14X4 n), up I.Vti from THurv Lwt Cnnf At tC 24 liv 4-11 Potatoes 1M Low i 31 2Me mm 14 7VA ucyru Cool CPA. EnP Ftret WiCer. OA Carp I la, IIKO mart (API (UIOA) Me, or rod inippine pam I 1A Tuataev HA a tea aacu Tea Heaed n-a m. net iiim round red I) Ate earn ear pan km Dollar, gold decline Livestock Len ttrpua 4J 2 te 2V 2JJ ..2 4 1 Wa .47 .21 -M IJ II -l' -17 )M MlUf (Al a- Menoer cea ca- a Eggs CWCMO IAP) IUSOAI paed tc eer inc MOC am ini.

11111141 prtcaa anvil 'iae4. A er tra I e. A tar aooa io cok ees e. pee im ee' te Mw aa IWttrt 4 M-M ca 4 cawi ed earner m-1 VM Cnre 4 W-M mad ni (rnart II, cAactt D. Mender cxne ca ar lC Pee tl aXl SCM WO-.

ne Teee 7 IU 7 0 II 42 r- 17 3 IAJ which the dollar gained was the Japanese yen. Dollar rates in other European money markets at mldmorning Paris 40323 French francs, down from 4 0440 at the close of trading Monday. Frankfurt 1.7 06 marks, do a from 1.7383. LONDON (AP) The dollar dipped In Europe today after three major U.S. banks cut their prime rates.

The price of gold also fell back after bouncing up as much as 112 aa ounce the day before. Cold opened at S613 aa ounce tn London, down S3 dollars from Monday's closing, and K13.M la Zurich, dowa S3. The only key currency against Cash grain r4 n-w te 3 P) mar" hr Aie'ilat cievnt Kee marre A1 a. Aeery tv9er at -4i ft M. Awry lew.

12 eaJ to AJ- r- t7 Vf A) PX CMtCAOO-CAPt rd 1wmO-m der 4 menf ta I AV4V r- end mou le-i. er aire) 'ad mi it 73 can. Can tea I lHt 1 taeet OnHI neery I a. aain am. I Ma I rex can, Frtdwr pa AyJ ir taapparl ln fPr 4U.