The Journal Times from Racine, Wisconsin • 19

UMon gflntelh puis Dimto spin DENVER (AP) Talks that could save Frontier Airlines from bankruptcy broke off today without agreement to resume, a day after the airline halted operations, forcing 17.008 passengers to scramble for The talks between the union representing Frontier's 600 pilots and United Airlines had began Sunday evening in a Chicago suburb. Frontier's parent company. People Express, announced early Sunday that Frontier was shutting down and would file for bankruptcy today if no agreement was reached between United and the Air Line Pilots Association. The shutdown of the Denver-based airline, which served 55 U.S. cities west of Chicago and four Canadian cities, idled nearly 4,700 workers, 1,000 in Colorado.

(Flights were available for many travelers flying Frontier at Mitchell International Airport, where the airline operated three flights daily.) Last month, United had offered $146 million for the 40-year-old regional airline, provided it could reach agreement with Frontier's five labor unions. Talks with the pilots' union, however, broke off over how soon Frontier pilots would receive the same salaries as United pilots, said United spokesman Matt Gonr-ing. A Boeing-727 captain at Frontier makes about $68,000 a year compared with $115,000 at United spokesman Joe Hopkins said. United's latest offer would have closed the gap in Ave years, but the union wanted it closed by April 1988, Hopkins said. "How many people do you know who get a $47,000 pay raise in 18 months?" he said.

In its announcement of the shutdown. People Express, which bought Frontier last fall, said it was taking the action because Frontier was out of money. "We deeply regret that this step had to be taken, but we were left with no choice," read the Newark, N.J.-based company's statement. After posting a first-quarter loss of $58 million. People Express announced in July it would sell Frontier, which has lost $10 million a month in the first six months of 1986.

"Unless an agreement (with pilots) is reached, Frontier will file for bankruptcy (Monday)." said Marilyn Mishkin, chief Frontier spokeswoman. People Express had indicated it would delay bankruptcy proceedings if United reached agreement with the pilots. United spokesman Kurt Stacker said. People Express spokesman Russell MarchetU said Frontier would not resume operations once it filed for bankruptcy. Gonring said bankruptcy would make the acquisition for the agreed price "not impossible, but much more difficult." At Denver's Stapleton International Airport, hundreds of travelers lined up by mid-morning Sunday at the ticket counters of Continental and United, which said tbt would honor Frontier tickets on a standby basis.

United also planned to hire 255 Frontier service and reservations agents to handle the increased load expected over the next two weeks, Hopkins said. A Continental spokesman said his airline will give pass privileges to Frontier employees stranded by the shutdown. 1 American Airlines spokesman Dan Whife said it would accept some Frontier-issueH tickets. Mishkin said factors contributing tfi Frontier's mounting losses included deregulation and fierce competition among Denver-area carriers. the Journal Times, Monday, August 25, 1386 Racine, Wis.

5B 3 thelournalTlnies Business Today Deere shute do wo Company idles 12,000 workers following 3 local strikes and in the Iowa cities of Waterloo and Dubuque went on strike early Saturday after their contracts expired. But union officials had instructed the 7,700 workers not on strike to report for work today. "If the members arrive at work and the company locks them out, the UAW will consider this a lockout and the members are then instructed to apply for unemployment benefits," said UAW vice president Bill Casstevens. Shoup said the company's action was not a lockout. "If you strike three of our factories, you strike them all because we earners in the world.

In addition to its nine plants ft Iowa and five in Illinois, Dee'r operates a non-UAW plant in Hori: con, and three plants 1 in Canada with UAW workers covered under another contract, Shoup said. Thoste four plants were in operation todaj company officials said. On Tuesday, Deere said it losi $39.6 million in the fiscal third quarter ended July 31, saying the deficit reflected the "continuing steep downturn in demand for farm equipment in North America." That brought the company's loss for the year's first nine months to $107.4 million. have one master agreement," he said. No negotiations were scheduled, he said.

Casstevens said the union decided to strike the three plants because they have local problems that warranted local strikes. The latest company proposal, rejected by the union, called for a 37-month contract which "preserves" current wage rates, and provides the opportunity for a raise. The company didn't elaborate. Shoup said the average UAW-represented employee at Deere makes $24.64 an hour in wages and benefits, making them among the highest paid manufacturing wage UNICO, UW SHARE TECHNOLOGY GRANT: The Wisconsin Department of Development said a grant of $285,000 from the state's Technology Development Fund has been awarded to Unico 3725 Nicholson Road, and the University of Wisconsin-Madison's School of Engineering, for development of a metal-forming and plastic-molding press "that uses a linear motor activator in a sophisticated closed loop control system-' Unico, a maker of electronically controlled drives and controls for automating industrial processes, has about 300 employees. In a news release, the development department said its projections indicated that the grant could eventually result in 130 new jobs at Unico and add $12 million to the 'company's annual sales.

Tom Beck, Unico's president, said the company's annual sales are now about $30 million a year. CHANGES JOBS: Marine Bank South, 500 Wisconsin said Donald L. Keller has joined the staff as an assistant vice president and will oversee the bank's Racine-area retail lending activities. Keller previously was an assistant vice president of Heritage Bank Trust, 4001 N. Main St.

1 IN NEW POSTS AT CASE: The J.I. Case 700 State said John R. Maher has been named director of product engineering for the company's Wausau operations. Thomas R. Brown succeeds Maher as manager of product engineering for Burlington, Iowa operations.

Brown previously was chief engineer for new product design, industrial wheeled tractors, at Burlington, pr Case said it is consolidating engineering groups in conjunction with its previouly-reported plans to close plants a Terre Haute, Bettendorf, Iowa, and Rock Island, 111. NEW FAST-PRINT STORE OPENS: Robert J. Herman of 919 Perry Ave. said he will open a printing business called American Speedy Printing Center of Racine Tuesday at 2710 Green Bay Road in Menard Plaza. Herman said he will operate the business under a franchise from American Speedy Printing Centers Birmingham, Mich.

The store will offer a range of printing and copying services, from business cards and forms to booklets and invitations, he said. Herman retired in June from the Journal Times, where he was lead copy editor in the news department. premier mmajmB 2 iumi I f. r-SK-v i VI yen te- 1 11 1 11 1 uuniuijiiiijiiwiiuauii'i MOLINE, 111. (AP) Fourteen Deere Co.

plants in Iowa and Illinois were closed today, and 12,000 workers idled in the wake of United Auto Worker strikes at three factories over the weekend. "Deere Co. considers the union's decision to strike three of its facilities as a strike against all Deere factories under the UAW master agreement," company spokesman Bob Shoup said Sunday. In retaliation, Moline-based Deere, the nation's largest farm-equipment maker, said it would close all 14 plants, while the company and union try to reach a new contract. A total of 4,300 workers in Milan Gas cost jumps 1 12 cents LOS ANGELES (AP) American oil refineries anxious to take advantage of cheap foreign crude raised their rates the past two weeks, causing gas pump prices to jump nearly cents a gallon, an oil industry analyst said.

Refineries have raised their gasoline prices to wholesalers by just under 4 cents a gallon since early August, analyst Jan Lundberg said Sunday. Wholesalers, who are replenishing their inventories with cheap overseas crude, have been able to raise pump prices because of the higher summer demand for gas, he said. Meanwhile, the retailers' profit margin has fallen by 2V4 cents since Aug. 8 because increased competition on the street has held back increases at the pump. "The price increase has been rather moderate and is stabilizing," said Lundberg, editor of the Lundberg Letter, a weekly analysis of the world oil market.

"That will continue for at least a little while." The price of all grades of gasoline nationwide jumped 1.4 cents to 87.51 cents from Aug. 8 to Aug. 22, said Lundberg, whose survey of 16,000 gasoline stations nationwide found self-service regular unleaded costing an average of 79.9 cents a gallon, and full-service premium $1,193 nationwide. Lundberg said refineries, now operating at 85 percent capacity to move as much of the cheap foreign crude as possible, eventually will have to reverse the trend of rising prices when consumer gas-buying drops in the fall. Less driving will cause the wholesalers' storage facilities to reach capacity, meaning they won't buy as much fuel from the refineries, which in turn will lower prices, he said.

"The refiners will be forced to give cuts to keep moving the product through," Lundberg said. The decision of the Organization of Petroleum Exporting Countries earlier this month to hold back product' has had little effect on prices, he said. The average price for all grades of gasoline reached an all-time high of $1,378 a gallen in March 1981. The average price in January of this year was $1.20 before the big price slide began in response to dropping crude prices. SUCCESSOR NAMED AT OCEAN SPRAY: Ocean Spray Cranberries Plymouth, said John S.

Llewellyn Jr. has been named successor to its president and chief executive officer, Hal Thorkilsen. Thorkilsen, 60, is scheduled to retire in December i987. Ocean Spray also named Llewellyn, 51, to the newly-created post of executive vice president and chief operating officer. Llewellyn, who previously was senior vice president, joined Ocean Spray in 1982 from ITT Continental Banking, where he was general manager of its Continental Kitchens division.

Ocean Spray is a marketing cooperative of about 800 cranberry and citrus growers in the U.S. and Canada, and operates a processing plant in Kenosha. American Motors Corp. It's due in spring A Renault Alpine sports car gets the onceover Sunday at the Racine County fairgrounds in Union Grove from Jesus Peon, American Motor vice president for manufacturing, and Jenny Moser 6, of Sturtevant. Jenny's father works at AMC's Kenosha main plant.

The Alpine, a $30,000 car made in France, is to be offered by AMC dealers next year. The Al- pine and other AMC and Renault vehicles were on display for AMC employees and their families in a day-long outing that drew about 10,000 people. The program included a preview showing of the Renault Premier, a wedge-shaped mid-size family sedan that AMC will put on the market next year. The car will be built at AMC's new plant at Brampton, Ontario. i i Future bleak for steel: USW nada is "vigorously opposed to free trade." Armco Inc.

chief economist John Corey, for one, sajd nearly one-fourth of the nation's steelmaking capacity, or about 30 million tons a year, must be shut down t-i'ore supply can balance demand and operating rats become efficient and profitable. Imports of low cost steel get much of the blame aid publicity in the steel industry. But the problem a Jo rests with the diminished appetite of industrial America for steel, Corey said. 1 "There's a number of factors at play there, the downsizing of products like cars, the use of substitute materials like plastic and aluminum," he said. The nation's largest steelmaker, USX may close plants that make 10 million tons of steel per year, or 40 percent of its 25 million ton annual capacity, according to Wall Street analyst Michelle Galanter App-baum of Salomon Brothers Inc.

4 But Williams said he thought that the plants woujd have closed by now if USX needed to. LAS VEGAS (AP) The president of the United Steelworkers says the bargaining table won't solve all the problems of what's been called a crisis in American steelmaking. "That crisis involves questions of public policy and financial policy and many other issues," union President Lynn Williams said Sunday. "But to the extent that we can deal with it at the bargaining table, the needs of the workers must be addressed as well as the needs of the companies," he said on the eve of today's opening of the union's biennial convention for several thousand delegates. Williams said that broader international agreements were needed to stabilize trade.

"The idea of opening up the advanced countries to the forces of market economies without regard to the consequences is simply to increase the invitation to our multinationals to move all their work offshore, to force labor into wage competition with the lowest wages in the world," Williams said. He said organized labor in the United States and Ca NORFOLK SOUTHERN WITHDRAWS BID FOR CONRAIL: The Reagan administration's 18-month battle to sell Conrail to Norfolk Southern Corp. has ended with the railroad's withdrawal of its bid to purchase the government-owned freight line. The announcement Friday clears the way for Congress to move ahead on legislation that would sell Conrail through a public stock offering and maintain it as a single railroad. Conrail serves 15 states from the Northeast to to Missouri.

FED VOTES TO LOOSEN CREDIT: Policymakers at the Federal Reserve decided at their July meeting to loosen credit conditions in an effort to stimulate the sluggish economy, according to minutes of the meeting. Members of the Federal Open Market Committee voted 10-1 to follow a strategy that would push interest rates lower despite objections from one member that such a course might threaten renewed inflation later, minutes released Friday said. Since the meeting on July 8-9, the Fed has twice cut its discount rate, the fee it charges on loans to financial institutions. The rate now stands at 5.5 percent. FRUEHAUF EXCEPTS BUYOUT OFFER: Asher B.

Edelman five-month battle to acquire Fruehauf Corp. ended abruptly when the investor agreed to drop his hostile offer and Fruehauf accepted a sweetened bid from a friendly merger partner. The agreement reached by the three parties also calls for Fruehauf's friendly suitor, a group led by the investment firm Merrill Lynch Co. and certain Fruehauf executives, to buy Edelman's 9.4 percent stake in Fruehauf, a Detroit-based maker of truck trailers and auto parts. Edelman withdrew his offer on Friday.

EARNINGS DROP: The Labor Department said Americans' average weekly earnings, after adjusting for inflation, fell 0.5 percent in July. That weakness came from a drop in both hourly earnings and the number of hours decline left average weekly earnings just 0.3 percent higher than they were a year ago, the department said. APPLIANCE SHIPMENTS RISE: The Association of Home Appliance Manufacturers said shipments of major home appliances rose 20.7 percent in July, to 3,984,600 units from 3,300,900 units in July a year ago. The association listed these shipment gains in specific product categories: garbage disposers, 7.5 percent; electric ranges, 8.3 percent; microwave ovens, 22.6 percent; automatic clothes washers, 23.5 percent; automatic dryers, 20.3 percent; automatic dishwashers, 5.4 percent; refrigerators, 9.2 percent; freezers, 6.7 percent; room air conditioners, 111.4 percent; dehumidifiers, 148 percent. REACHING POINT OF NO The compromise tax overhaul bill awaiting final action in Congress opens the door for a bold experiment that by the early 1990s could allow 30 million people to avoid filing federal income tax returns.

The bill calls on the Internal Revenue Service to report within six months on the feasibility of launching a return-free system. Should the IRS find the system workable, taxpayers with the simplest returns all income from wages and interest and no itemized deductions would be offered the option of not filing a return and allowing the IRS to calculate their tax from documents supplied by employers and banks. MOTO PHOTO SEES PROFIT FOR '86: Moto Photo Dayton, Ohio, expects to post its first full-year profit ever in 1986, said Michael F. Adler, the company's president and chief executive officer, the Wall Street Journal reported. Second-half profit will more than offset a $293,457 loss in the first six months, he said.

In 1985, Moto Photo had a loss of $788,042 on revenue of $3.9 million. David A. Mason, the company's executive vice president and chief financial officer, estimated that revenue in 1986 will range from $9 million to $12 million. Moto Photo franchises and operates photo processing stores. There is a franchised Moto Photo (tore here at Regency Mall.

Grain futures Nov 4.7 4.7V Jan 4.U Mar 4.41V 4.44V .03 Hi 4.77 .02 4.44 .01 4.41 4.41V 4.44)4 4.74 4.ISW 4.41 4.41 on tha CHICAGO (AP) Futimt tridlnfl May Jul s.un .01 ...4.47 4.41V Auo. Sap Nov 4.41' 4.44 4.44V 4.41 Other dollar rates at midmoming. compared with lata Friday: 2 .0430 West German marks, up from 2.0410 1.0460 Swiss francs, up from 1 (4450 6 6945 French francs, up from 6 6400 2.3050 Dutch guilders, up from 2 3035 1.404 25 Italian Hra. up from 1.404 00 1.3010 Canadian dollars, up from 1.3015 In Europe, tha British pound ws quoted it 01.4620. compared with SI .4028 Friday.

London gold and silver bunion markets were closed. In Zurich, gold wss fetching bid price of 1378 25. down from 03(4 late Friday. Hong Kong markets stso wars closed for holidsy. Thus opan Int 5M2I, up 414.

Chg. 011 03 14 031, 02', Cmcjgo Board of Trade Friday: WHEAT 5.800 bu. minimum; Dollars par bu. Opan High Low Last Sap J.52'1 2 S3 J.M'l Dac I.M 57V, 5SV, 1.S7 Mar S3 3.5a Mav Jul 3'' 1.1 l.M Sap salas 4,17. apan Int 34,30, aH 11.

CORN 5.000 bu. minimum; Dollars par bu. Sap l.MV, l.aOVs 1.S4Vi...1.5i Dac 1.7D 1.70 I i Mar l.al'a IJIV4 l.7' I.7" May I.a7 1.17 IH'l I 54 Jul I S4H 1 I Nt) it Eggs CHICAGO (AP) Wisconsin's egg market In-day waa unsettled to weak. Supplies were adequate to ample, demand was lair to moderately good. Prices: Grade A large 62-55, medium Local Interest Courtesy Robert W.

Balrd Co. Inc. Quotations of 10:30 a.m.: Net High Low Last CKng Am Motors 2. 1 2 r.C. A merited! 141' 147' 147' Ametek It 25 24 Becor Western 12 ll's 11' Bristol Myers Co Nt 74, 79 all Dana Carp 24 2I 3t't 4tv, Dayton Hud.

Corp 45Vs 441, 45a at, Emer. Elec 17 44' 44', Vl First Wis Corp. 141 14l 14H ICC' On. Slg. 43' 43 v.

41 OeuM Inc. in 1' -'t marl 53 52' N.C Lee 25 15' 25' Matsey 2 1' 1', KC Mattel Inc I0 lot hUe Reinord Inc 21H 204 i Snap-on Tools 24 4 7'v, v. Tenners 40V, 14' 40' rtC Textron Inc 54H SSH 54 Twin Disc T. T. 15W flT.

Vulcan Mat 107 107V, 1071 Js Wlcor Inc 41V 42' 47' rV Wit El Pow 42V, 41' 410 WIS PSvc 40 40 4 Wit Pwr A LI StVt 51 Vt 01 '1 041, 01 001 Sap l.ai l.a it l.tav, Dac l.M l.WVi I.N .01 Dollar, gold LONDON (AP) Tha U.S. dollar bagan tha waak aligMly Urongar on Europaan markall today ouial trading, with daalars predicting little movement before Thursday'! hey meetmg of Weal German central bank policymakers. Gold waa down. A public holiday In Britain shut London financier markets, contributing to the kill. Tokyo, the dollar roee to closing 153 40 yen from Friday 1S3.40.

Later. In Europe. waa quoted at 151.70 yen. Dealer Tokyo attributed tha rite 10 heavy doNar-buytng by untdentHled traders in Abu DhaM. Heads of tha Bundesbank, Germany's central bank, are to dlecuee whether to react to last week'i cut In the U.B.

discount rata by hall a percentage point. Deelere In Frankfurt said they did not oipect the Bundesbank to cut any of the mam interest rates, because they did not want to stimulate any growth tha money supply. Mitt 14.177. opan int 122.MI. up Ml.

OATS 5,000 bu. minimum; Dollars par bu. Livestock MILWAUKEE (AP) Friday's cattle market: choice steers S3.00-S4.00: ohcMCS heifers 51 00. 64 00; good to choice Hotel etn steers 45 00-54 00; standard titers 40.00-44.00; dairy betters 40 utility cows 4 00-14 OO, eannera and cutters 2 commercial bulls 44.00-47.00: common bulls 41.00-41.00. Friday 1 caff market: choice veal 66.00-75 00; good vsst 50 00-65 00.

Friday's hog market: aows 300-360 lbs. 56.00-57 00; 4SO-600 lbs. 64.00-66 00: Over 500 lbs. 51.00-66.00; butchers 220-260 to. 6.

00-60 00; boars 45.00 and down. Friday's lamb market wss not eetaMiahed. Today's estimated receipts: 1.000 cattle, too i.io'i i.oa l.otvi Sap Dac ,00 1.04V 1.11V 1.21", 1.10V 1.14 1.11V 1.11 1.MW 1.1 1J0' 1.21V, 1.111 1.20 l.M' May Jul salas 144. opan ml 1,141, at) 44. SOYBEANS 5400 bu.

minimum; Dollars par bu. Sap 4.17' 4.44'1 4.7S 4.7 carves, iw nogs enu anwt. ,04 i 1 I 1 1 al. est, asLaal a sd (U1 stal 41 wi 1 sV sal at- na m4 assess. -1 -1 "-1 -1 i il i ess.