The Journal Times from Racine, Wisconsin • 29

fteel Dirodlys'GFy BmiSDdle-innieirinKDS gowe IPR pDoys By Stuart AiMrbach Because of its heavy debt burden. appear to have won wide acceptance in the steel industry. Since they were written, Wesson's suggested phrases and examples have been used extensively in speeches and congressional testimony of steel company executives and in briefings by company PR men. The steel quota bin has become the legislative priority of the American steel Industry, which still is suffering the effects of the recession, with production down to about 50 percent of capacity and employment running at slightly more than half the 1975-1979 level. As U.S.

production has dropped, imports have surged to 26 percent of domestic use, with Third World nations such as Brazil and South Korea becoming major suppliers. The industry contends that most of the imported steel is either dumped on the American market at prices below its cost of production or sold cheaply because of government subsidies. "We are bearing heavily on the concept of competition with 'government- the U.S. market to which they are somehow entitled that creating a historical share of market through unfair means somehow entitles one to that share." To combat the Idea that the 1982 agreement limiting steel imports from the EEC solved the domestic industry's problems. Wesson said he offers reporters "on strict background" the parable of a mugger who, when caught, plea-bargains a deal in which he stops mugging one day in return for getting free rein to beat people the rest of the week.

"The Europeans gave up a Sixth of their steel market here In exchange for a license to dump the other five-sixths," Wesson continued. He said that these new themes should replace "the good old standbys effect of imports on employment, community welfare, profitability, ability to modernize, etc. which have become old hat to the press." 'government-financed' steel companies," Wesson wrote. "Harry Holiday (chief executive officer of Armco Steel Corp-.) likes the term 'illegal Imports' and has instructed his PR men to use it," Wesson wrote in a Dec. 1 memo to steel company public relations executives and members of the AISI public relations committee.

"I am constrained from using it because it stretches the meaning of 'illegal' a bit," he explained. "However, it is a convenient handle of the kind the press likes, and which they feel the general reading public understands." He also told industry PR officials that AISI uses "developing countries" instead of "Third World" nations when discussing the source of imports to avoid political implications and the connotation of "We do not want to be put in the position of stomping on poverty-stricken nations," be explained. Washington Post WASHINGTON In memos that could be titled "The Making of a Steel Quota," an industry official advised American steel executives to sound common themes blaming the industry's financial "crisis" on government-supported foreign competition. According to the internal steel industry memos, these themes would "enlist the attention of the press and at least get a neutral, if not sympathetic, hearing" for a bill that would limit imports to 15 percent of domestic consumption. The memos, from the American Iron and Steel Institute's public relations director, Sheldon Wesson, advise: "Use the word 'crisis' liberally." "Foreign governments make great "We must cry that we are the injured party." The memos dated Sept.

29 and Dec. 1 "Brazil has become a sort of metaphor for the plight of developing nations which must export (to the United States) in order to pay their Wesson said. But he complained that the economists who insist that U.S. steel companies "abide by the judgment of the supposedly open marketplace" do not impose the same standard on Brazil for overbuilding its steel-making capacity. "Why should the American steel industry be uniquely held to that double standard? Why should Brazil be supported at the expense of American steel towns?" Wesson asked, suggesting points for steel executives to stress.

In the September memo to AISI President Robert B. Peabody, Wesson took a whack at Japan and the European Economic Community, which last year restricted their Steel sales to the United States. "We must destroy the myth created by the EEC types and the Japanese that there is somehow a share of Busoress More business, page 4 Classified, page 5 Obituaries, page 5 the Journal Times Thursday, Mar. 29, 1984 mi, III0 i GM says brake doubts arose in '79 Trade deficit mars improved economy IBM PC rules the office The IBM personal computer has won a place in the hearts and offices of the country's largest companies. A survey of large companies showed 87 percent operated at least one IBM, and 42 percent used one or more Apple personal computers.

Personal computers used in large companies, by brand Percent of companies using: Oveull Economic Aclivilk Feb. 1983 IM-jaMr! Jan. 1984 kjlfcir'wSiJ. 1 Feb.1984 Knii V- TSffiffy l.U-,.UH' AH JJ.mL IIIIIHIJ lllj) IU. I.IHHJI I IBM 4 87' Apple.

42 Radio Shack 21 Hewlett-Packard 12 Wang 11 DEC 9 I Osborne 1 9 Lr' Compaq Ts jjf Grid 4 ti 4 WASHINGTON (AP) Reports about early locking of the rear brakes on General Motors Corp. 1980 X-cars prompted high-ranking company officials to question how the cars reached the market with such problems, according to a government witness. Robert Hellmuth, chief of the defects evaluation division of the National Highway Traffic Safety Administration, said internal GM documents from 1979 contain references to rear brake lock-up and state that the cars could tend to "yaw" or swerve from course during some stops. One GM official, identified by Hellmuth as corporate project engineer Don Nordeen, indicated oh a 1981 GM briefing paper that the 1980 X-cars could be "unstable" when stopping because of the braking system design, Hellmuth testified. "Why didn't the brake engineers flag the problem?" Nordeen reportedly wrote on the document.

"It's hard to believe that they were surprised." Hellmuth said F.J. Winchell, GM's vice president for engineering at the time, responded to a 1979 briefing paper referring to rear lock-up of the brakes by writing, "How can General Motors put out such a system? We have to understand why these things happen." GM is on trial in U.S. District Court for allegedly marketing the cars even though it knew they had design defects that could cause premature lock-up of the rear brakes, resulting in dangerous skids. The government is presenting internal memos from the corporation as well as the experiences of car owners as evidence in its case against the carmaker. Another GM memo from July 1979 warned that "the new front-wheel-drive cars (1980 X-bodies) were showing more of a tendency to yaw or spin," Hellmuth said.

Seasonally AOiusted Figures Source Commerce Department By Martin Crutainger Associated Press WASHINGTON The government's main gauge of future economic activity rose 0.7 percent in February, the government reported today, as the economy continued to show surprising strength. The government's February Index of Leading Economic Indicators was down from January's 1 percent rise but still stronger than many economists had predicted. That optimistic outlook was clouded, however, by a separate report that the nation's foreign trade, deficit posted a record in February of $10.1 billion. It marked the second straight month that a record has been set, seeming to confirm pessimistic forecasts that the trade deficit for the year will easily top $100 billion and far surpass last year's record of $69.4 billion. The increase in the index was the 17th rise in the last 18 months as the nation has climbed steadily out of the depths of the 1981-82 recession.

Since March 1982, when the index hit its low point, it has risen 23.2 percent, posting a better improvement than the average 17.8 percent rise over similar time periods for economic recoveries following World War II. But so far this year, the index has performed much better than in the closing months of 1983. The index is designed to forecast economic activity in the next six to nine months. Five of the 10 indicators available Other IT 3 Note: sum of figures ex cede 100 percent due to mixed use of systems. SOURCE: Mike Stone.

Future Computing. Inc QlnfoGraphks 1984 FCC to probe BelB profits for February contributed to the increase in the index. Improvements were shown in new state unemployment claims, net business formation, building permits, money supply and vendor performance, which shows how fast companies make deliveries to customers. As in January, the best improvement came from a surge in building permits. Four of the indicators decreased.

They included manufacturers' new orders for consumer goods and materials, contracts and orders for plant and equipment, the price of sensitive raw materials and stock market prices, which contributed the largest amount to the One indicator, the average workweek, remained unchanged. companies have been authorized to target their rates to produce a 12.75 percent profit margin on their investment in long-distance facilities. "That rate of return may lead to unjust and unreasonable rates charges by these carriers," the FCC said. "Interest rates and the rate of inflation (have) changed (since 1981). Also, with the breakup and the growth of competition, the riskiness of investing in many or all of these carriers currently may differ from the riskiness in May 1981.

"The public interest requires reexamination of authorized rates of return in the face of changing economic conditions." rates and services. That is because sets its customer rates and the Bell companies their connection fees for long-distance firms with the goal of earning whatever profit margin the corrtmission has authorized on interstate services. said Wednesday evening it was confident any review of its profit margin Would show that if anything, its rate of return should be raised. The seven new Bell companies created by the breakup of earlier rejected a suggestion by that they should accept a lower profit margin. Word of the new Investigation surfaced late Wednesday when the FCC released an 18-page order addressed primarily to a continuing controversy over telephone "access charges." The commission is currently reviewing fees that would be levied by local phone companies on long-distance firms for switching connections, as well as fees that would be levied on large business customers to help reduce local subsidies now paid by long-distance callers.

In examining the proposed fees, the FCC said Wednesday it had concluded it must also reconsider the profit margin it established for the Bell System in 1981. For the past three years. and the Bell By Notman Btacfc Associated Press WASHINGTON The Federal Communications Commission is' launching a new investigation that could lead to changes in the rates of return, or profit margins, authorized for American Telephone Telegraph Co. and the Bell System companies. The commission gave no indication in an order issued Wednesday night how it might change the profit margins.

If the investigation actually results in lower margins for either or the Bell companies, however, it could ultimately affect a variety of long-distance State home sales up Business bits Compiled by David Pfankuchen MADISON (AP) The number of homes resold in Wisconsin increased 18.9 percent in February from the previous month, the Wisconsin Realtors Association said Wednesday. The association said 3,702 homes were resold in February. Lee Martinson, the association's research director, said the state housing industry's year-long climb from the recession is likely to continue through mid-year with interest rates remaining steady. The report showed: The median price of a three-bedroom home increased from in January to $57,562 in February. But, because more buyers selected smaller, lower-priced homes, the median price of all homes actually declined by $50 to $56,381.

The average interest rate on a conventional loan increased in Feb ruary to 13.35 percent from 13.25 percent in January. A conventional loan is one in which the interest rate is fixed for the life of the loan. Chuck Rushman, the association's president, said the improved housing economy should last for at least six months, but that realtors are worried that their rebound from the recession might be cut short this fall. Earlier this week, mortgage bankers said that interest rates will rise to 14 percent or 15 percent by year's end. The bankers said most people generally stop thinking about buying homes when interest reach that high.

Separately, a federal report today said that sales of new homes nationwide surged 7.8 percent in February to a seasonally adjusted annual rate of 721,000, putting sales for the first two months the year 22 percent ahead of the pace set in 1983. JOHNSON SHUFFLES: C. Johnson Son 1525 Howe said it made a series of personnel changes in a restructuring of its Corporate Information Resource Management (IRM) operations, including these: Thomas Hughbanks becomes director of IRM planning and policy; Nicholas H. Cottrell succeeds Hugh-banks as director of management support services; John B. Bradford succeeds Richard N.

Od-ders as director of network services; and Od-ders becomes director of corporate support. The restructuring, Johnson said, included decentralization of applications support to the company's business units, which brought these personnel changes: Michael W. Andersen becomes director of IRM support for U.S. Consumer Products; Richard D. Anderson becomes director of IRM for Innochem; and John H.

Anderson becomes director of IRM for Europe, Africa and the Near East. COLECO LAYOFF: Coleco Industries still feeling the effects of its troubled entry into the home-computer field, said it will lay off an additional 1,300 workers this week at its plant at Amsterdam in upstate New York, more than one-quarter of its total manufacturing workforce. "The elimination of the second and third shift of production of Coleco's Adam (home computer) and a planned reduction in the rate of second-quarter Adam production comes in anticipation of normal seasonal slowdown of consumer demand," spokeswoman Barbara Wrack said Wednesday. B.A.T. PROFIT UP: AT.

Industries PLC, a diversified British tobacco group, said Wednesday strong profit in retail and other businesses offset falling tobacco-related income in 1983, boosting pre-tax profit 14 percent, to $1.42 billion from $1.24 billion in 1982. The improvement came despite a 5 percent drop in profit from the tobacco division, which contributes more than half of the company's earnings. B.A.T. said the group's retailing, paper and packaging businesses and associated companies "more than offset" the decline in tobacco profits. "Retailing had an outstanding year," B.A.T.

said, noting that increased consumer spending in the United States helped B.A.T. U.S. subsidiaries: Saks Fifth Avenue, Gimbels, Marshall Field and Kohl's Department Stores. CORNER FILLED: A concession called Linky's, selling popcorn, cotton candy, caramel apples, ice cream, candy and soft drinks, will be opened by David Karls of 3621 Wright Ave at 223 6th where a restaurant called House of Min Soo closed at the end of 1982. Karls said he will open next week on a date to be set.

HE'S IN CHARGE: Richard J. Dovora-ny, chairman and president of Acme Die Casting 5626 21st St. has been named general chairman of the Society of Die Casting Engineers' 13th International Die Casting Congress Exposition, which will be held in Milwaukee June 3-6, 1985. Oil merger plan killed STORE 7,000 square-foot Fashion Bug women's ready-to-wear store, selling popularly-priced clothing in junior, misses and large sizes, opened today at Westgate Mall, 4901 Washington in store space previously occupied by a Lamberton's dress shop that closed early in 1983. The Fashion Bug store is the second, store opened in Wisconsin by Charming Shoppes a 400-store chain based at Ben-salem, Pa.

The first, a Fashion Bug Plus unit, selling large, or plus, Sizes only, opened March 22 at Spring Mall in Greenfield on South 76th St. Kay Pride, formerly assistant manager of a Fashion Bug store at Zanesville, Ohio, is manager of the Racine store. She said Charming Shoppes will open five more Wisconsin stores by Aug. 1, at Green Bay, Madison, Fond du Lac, Appleton and Janesville, and plans to open 145 stores this year nationwide. OFFICE MOVING: Business Communications Services Mundelein, 111., an office-equipment dealer, said it will move its Racine office from 924 Goold St.

to 337 Main St. Plans call for opening at the new location by April 6. WASHINGTON (AP) The Senate has refused to impose a yearlong moratorium on oil-industry mergers. The lawmakers rejected arguments that some $29 billion in recent takeovers in the industry pose unknown threats to the nation's economy and energy supplies. Senators voted instead Wednesday to direct three committees to study the merger trend and report back this summer with recommenda tions, but did not impose any immediate restrictions on the industry.

Supporters of a moratorium said the alternative proposal was a hollow shell that meant nothing. But, said Sen. liennett Johnston, the sponsor of the moratorium proposal, "I know how to count votes. We've been beaten on this issue." His comment came after the Senate voted 57-39 against a motion to in effect kill the substitute plan calling for a study. tOVBCANS MM ku.

minimum) DoMar, gold Foreign exchange (Quoted In Amerlcen cents) iondon IAP1 The doller wes lower Local jritafwf Courtesy Robert Bolrd Co. Inc. Quotation et of 10:30 e.nv: Gnkt futunt CHICAOO (AP) Future trading on the Chicago Board ot Trade Wed. WHKAT MOO ku. mlnlmem) Oellara per buthel.

Open High Low Lett Chg. May J.59V. 3.41 3.54 3 SOW Jul 3 43' 344' 3.42VI 344 .01 Sep 345V1 3.4 IMVt iMVt Detlert per bethel. May 7 at 7 91 7 II 7 etvt 00 Jul 7 93 1 00 7 90V 7 95 Aug 7 13V 7 90 711V 717 4 00 '4 Sep 7 55' 741 7 54 740 02' Nov 731 7 14 7 30V 7.34V 07 Jan 7 43 7.44' 7 42 7 44V 01 Mar 7 54' .01 Mey 744V 01 Prev. telet 41,454.

Dec 3 40 JV sew yri mi Prev. dey's open Int. I12.054, off 520 140' OJ'4 Mar 3.4 3 71 IH'4 1.72 May lalM 17.197. ir 20 Mer 17 Vr. Ago 4440 I 4491 I 44)0 7024 7072 11)9 0311 0315 0000 9345 9440 S440 .0545 0550 050 oite oik .0700 oooo oooe vnt 1047 1054 .1141 1741 .1755 .1177 M4I 1070 4111 0097 0091 0119 1405 1424 .1470 0911 0914 0999 1740 I 1040 A.

0047 .0047 .0754 0004 .0004 0OO7 0O44 .0041 0041 0057 0045 A A. .1107 0074 0074 OHM 740 7MI 7099 0047 0047 .0071 1792 1100 .1179 4427 44S1 Mil Ma Inglend I Cenede Argentina Australia Autlrla Belgium Brtll Denmerk Frence Germany Greece Hoi lend Indie Irelend I Itreel Italy Jepen Mevlco Norwey Portugel Seudl Areble Speln Sweden Swltierlend I Prev. dey'i open Int. S7.951, up 42. CORN S.M ku.

minimum) Detlert ear bethel. May 354 3 54 3 52 1.57 Bid The center's five melor bullion houses leter fixed the recommended morning trading price of the precious metel et t390 15 In Zurich, gold opened et S190 but 50 up from Wednesdey By mid morning it hed eesed to set 90 Gold closed eerlier In Hong Kong et a bid price ot U92 up si 12 from Wednesday's close Silver was s9 77 en ounce bid in London, up from Wednesday's close of t9 45 Livestock MILWAUKEE (API Wednesday's rattle merket- choice steers 44 00-74 00, choice heifers 42 00-45 00; good to choice Holsleln steers 54 00-41 00; ttenderd steers 47 00 il 00, dairy heifers 47 00 51 00, utility cows 41 00-44 00. cenners and cutters 17 00-41 00; commercial bulls 50 0O44 00 Common bulls 47 00-49 00 Wednesday's call market choice veel 40 0O 75 00; pood veel 40 00-40 00, feeder bulls SO 00-00 00, replacement heifers 40 00-45 00 Wednesday's hog merket sows 100-150 lbs 42OO-44 00, 4SO-5O0 lbs 44 0O-49 0O, over 500 lbs 49 00 52 00, butchers 220-250 lbs 44 50 4 7 50, boars ii oo end down. Wednesdoy't lemb merket good to choice 11 00-54 00, ewes end bucks 4 00-10 00 Todey't estimated receipts. 400 cattle, 450 calves, loo hogs and no lambs.

Egg CHICAGO (AP) WlscontW't egg merket Wednesdey wes firm with prices one 10 three cents higher, Supptiet were edmuete to empie, demand was no better then lelr. Prices Grede A large 91-92, mediutss SS-07 Ask 40' 44 14'A Jul J'1 )4TVt 3.47 1.4I' Over tha counter Merlne Corp Merthtll II Corp Steernt VerseTech Mutual funds egolnst key currencies In flu let early trading today, depressed by eipectellons of poor S. trade results for Februery end other economic factors. Gold prices edged up. Deelers sold there wes widespread specula- flon mat the trede deficit to be announced leter today could be es high es (12 billion, worse then predicted previously.

The doller hes been under pressure tor some time because of concern over hefty U.S. budget and trade deficits. The currency fell In S. tredlng Wednesday after It hed edvenced In Europe Deelers reported the sllppege came attar the Federel Funds rete, the Interest on overnight loans between banks end key short-term rete, dropped below 9 percent from 9 5 percent Lower Interest retes make the doller less attractive to Investors. Eurodollar deposit retes eeskd l-tth of point eerly today In Tokyo, the doller closed et 224 00 yen, down from late Wednesdey's 224 40 yen Sterling gelned It cost 1 4SJ0 to buy One British pound eerly today egelnst ti tans lete Wednesday.

Other morning rates compared to Wednet-dey's lete levels 7 97175 French franct. down from 0015 1 5700 German marks, down from 2 4020. 1 1425 Swiss tranct. down from 2 1400 1,403 75 Italian lire, down from 1,410 25 2 9010 Dutch guilders, down from 2 9145. I 2791 Canadian doners, up from 27015 Gold opened et a bid price of 0190 50 an ounce London, M.S0 Wednesday's close.

01 01 12lVi 3.I9 120 100! l.etVi 19914 100 104 104 High Low Lett Chng Alleg Int 24V 241 14' Am Motor 5' 5Ve 5' NC Amerlttch 45 45V 45 Ametek 24 24 241 4 Bucyrut 14 16 14 Cont. Cen 34 11 11 Dane Corp 24 25 25 -l Dayton Hud. Corp 21t 20 21 Emer. Elec ..,.,.41 41V 431 NC Event Ma 4 4 -v First Wis Corp 19 19 19 GnSloCorp 4 45V 45 Gould Inc 29 29V 29V -Ve 14 I4M 14' NC Wit 10 Lee 24'A 24' 24'4 Levi 34 34 30 NC Metsey 3 3 NC Mattel Inc I' Ova Mattel Inc. (pld) It1 -v Modlno U'M ftexnordlnc I NC Snap-on Tool VVa WW NC Tenneco 40 40 40 Tentron Inc TH ln NC Twin DIM lV NC Vulcan 40 40 40 -( Wlcor Inc.

21V4 IIVl Jlv NC 25 25. 25 Ve WllPSc 25 25' 25 AliPwfilLt 24V 24 MW Sap 120 Dec 299 Mer 104 May 1.10 1 II 1.0i 109V4 Jul 112V U1'4 3.12' 3.12' Prev. teles 34.020. Prev. day's open Int.

104,124, up 321 Prke 944 HI. L. II 40 1411 717 A II 91 L. L. N.L..

Value IN ....13 24 ...14 22 ,...10 03 7 4S A. ...11 OS ....24 40 9.41 Affiiioted fmM Century Shoret Trull Fidelity Fund Invettort Mutual Investor stoch Investors VerlebM Mestachusetts Inv. Massachusetts Growth. Newton Growth Nlchoies Fund Selected Am. Siver and gold Sliver Chlcouo Mid America 1.000 ounces April 9 00.

May 9 92; June 110 01; July 110 10; August 110 10, October 110 10, December 110 SO, previous seles, 91 contrectt. GOLD Chlceoo Mid America HI troy ounces April LIS! 00; June tJl 15; September taM SO, October 07 40; December (470 00; previous volume 244 contrectt OATS 5400 ku. mhrimem) Dellart per buthel. I Mey inv 102 JJ Jul 1.79 I I0V 1.79VI 179 01 Sep I TS i.75'4 I 74V4 175 Dec 1.77V 1.70 1.77V 1 70 -01V Mer 1.02 I tlVi 111 Prev. seles 495.

Prev. dey's open Int. 4,771, off 1..