Chicago Tribune from Chicago, Illinois • 42

2 Section 3 Chicago Tribune, Thursday, September 20. 1990 finnrriA Fed says economy healthy in Midwest I I cK Lazarus On marketing But activity is 'uneven' in August Segal Napier Psychology Today sees '91 tomorrow same attention. Lipstein reports he has signed on Marilyn Webb, former features editor of Woman's Day, as editor-in-chief of Psychology Today. New American Magazine also publishes Mother Earth News and Smart for Men. Segal Barreling along There is nothing eerie about the jumbo business being done at Crate Barrel's new flagship store, notwithstanding the fact that this structure is located at North Michigan Avenue and Erie Street Two weeks following its -opening, boss Gordon Segal has only one word "unbelievable" to describe volume at the retailer's 30th store.

Crate Barrel's accessories (housewares) business is just about double what had been forecast, and its furniture volume is excellent, the combination "outrageously good," Segal told this column Wednesday. However, Segal, savvy merchant that he is, wants to wait a while (four or five months) before terming the new store an unqualified success. Considerable hype, shopper curiosity and interest and events (including a splashy Metropolitan Home magazine party this week), have fueled sales. What most impresses Segal is that the new store is getting a brisker traffic flow than a former location a half-dozen blocks to the north at Chestnut and Michigan. "We had some concerns that we might not draw the crowds we had at the other location," he says.

"After all, we had plenty of shopper traffic and potential there, especially because we were right across from Water Tower Place. But we're doing better at the new store." Crate Barrel, a Northbrook-based firm, has total annual sales of $140 million to $145 million, sources indicate. Wilson boosts Napier River Grove-based Wilson Sporting Goods Co. named George Napier, recently head of its international operation, to the post of president of WilsonUSA, its domestic operation. Napier assumes a post held by Glenn A.

Rirpp, who continues as Wilson chief executive officer. Named presidentWilson International Was Chris Albright, who, has held international management "downward pressures on the prices of a variety of goods," and one major chain reported that "prer Christmas-type discounting by competitors is already beginning to occur." A manufacturer of heavy moving equipment "reported prices declining in the face of weaker demand," the Chicago Fed said. Reports by other Fed banks contained in the Federal Reserve System's beige book, a summary of economic conditions in their districts, were mixed. The summary was compiled for use at the Oct 2 meeting of the Federal Reserve Open Market Committee, when members of the Fed board of governors and the presidents of Fed banks will review credit policies. The Chicago Fed report gave art optimistic assessment of crop con; ditions in the Midwest- i "A high proportion of the corn and soybean acreage is rated good-to-excellent in district states," it said.

Recent warm temperatures seem to have enhanced harvest prospects while easing fears that late-maturing crops might be hurt by an early frost, the report several companies, including General PepsiCo International. Wilson sales totaled $525 million for its fiscal year February. Domestic sales account for percent of the total. move: Kathy McKay promoted to associate director of Gannett's USA magazine, remaining based in Chicago. Johns, a VP at DDB Needham Chicago, to jl group creative director, and appointed an account supervisor at Personal: Birthday greetings to Ann Kenner, James D.

Hawkins, Bill Dennis Malinowski, Gwen Pippin Hayter. Warner Inc. set up a new entity under Warner Publishing banner as the new Time Inc. Magazine Co. and Time total revenues of more than $3 chairman of the new entity was "Reg" Brack who continues as president and chief executive officer of company.

Reporting to Brack is who retains the posts of chairman of Time. Inc. Book which consists Brown; Warner Books; Time-Life Book-of-the-Month Club. will soon get a whiff of an Elvis line named after the king of rock 'n' roll mass-market-priced line of colognes, an after razor relief balm will be introduced by Trend Media, an Atlanta firm. launch of this licensed product will at an Oct 1 function in New For Psychology Today magazine, the slate was wiped clean for 1990.

Some 770,000 subscribers wont see a single copy of the magazine this year, Psych Today hasnt been published since last December, victim of a shaky financial position and a tight advertising climate. Next year is a different proposition, though, according to its publisher, New American Magazine which says Psychology Today will be reintroduced in January. However, Owen Lipstein, the Manhattan-based firm's chairman, hasn't yet deckled on the new publishing frequency, advising this column Wednesday that "it might be a monthly or a bimonthly." The magazine also might be published 10 times a year, as it was until a combined December-January issue rolled off the presses 10 months ago. Lipstein, whose firm recently received a cash infusion from a 50 percent equity position taken by Japanese Independent Communication had hoped to relaunch Psych Today with an issue dated this month. But without advertising and editorial stalls, following cutbacks, publication was out of the question.

With a new issue scheduled in January (industry observers are still skeptical about Psychology Today resurfacing), "We can do a real good job in selling advertising," Lipstein said. Hopefully, the editorial product will get the oadS lit -j I -p By William ruber Economic conditions are holding up better in the Midwest than in most of the rest of the nation, according to a new report issued Wednesday by the Federal Reserve Bank of Chicago. The bank said the general economy in its five-state district "continued on the slow growth path" of recent months even though the picture was "somewhat uneven in August" Consumer spending "generally showed modest growth, except in Michigan," it said. Surveys of manufacturers showed a "slow expansion" in that sector, the report added. One steelmaker reported "full order books" for the third quarter and brisk bookings for the i fourth quarter of the year.

"Construction and real estate activity slowed, but remained healthier in the Midwest than in the na-I tion as a whole," the Chicago Fed I said. i Despite the increase in oil prices during August, the bank said it de-! tected "no acceleration in the over- all inflation rate" in its district i Some retailers, it said, told of Continued from page 1 negotiators reach an agreement Another reason, he said, is that long-term interest rates can, drop only if there is a multiyear pact that steadily reduces federal borrowing. Greenspan's dour outlook, isn't uncommon; private economists have been predicting an. imminent recession and accelerating inflation since Iraq invaded Kuwait Aug. 2, triggering a 60 percent rise in oil prices.

But until Wednesday, the i usually cautious Greenspan had 'stuck with forecasts that called for continued modest economic growth and tolerable levels of inflation. Greenspan said a sustained $10-a-barrel rise in oil prices which is less than the price runup of the last seven weeks would add $30 billion a year to the na-I tion's trade deficit and would duce economic growth by 1 percent a year. Given that most economists had expected the economy to expand by little more than 1 percent before the Iraqi invasion, he noted that unless oil prices fall, the recent increase would slow the economy to a virtual halt. And even a quick drop in prices may not rescue the economy. Several surveys taken since the start of August show a marked drop in consumer confidence, which typically signals a slowdown in consumer spending.

Consumer spending is vital to growth, accounting for two-thirds' of the economy. "It would be surprising if the recent developments did not give Greenspan Tribune photo by John Bartley credited with bringing AIDS philanthropic mainstream. Johns A Krim, of AmFAR; Anne and, Philip Field's under Miller was credited with bringing AIDS funding into the lucrative mainstream of philanthropic giving, beginning with the Field's-sponsored 1987 gala, "A Show of Concern: The Heart of America Responds." The show raised about $1.2 million for the AIDS Foundation of Chicago and the American Foundation for AIDS research, and was the Midwest's first major AIDS fundraiser. The success and the acceptance of the show encouraged other mainstream groups to consider AIDS benefits, say many fundraisers. "Their corporate -leadership has allowed other corporations to get Exchanges Continued from page 1 money," said Melamed.

"The goal is of a monumental nature, and its achievement will be to the benefit of all our members, clearing member firms and the public." The decision to discuss a limited merger comes at a critical juncture in the history of the exchanges. Trading volume at the Merc and the Board of Trade has slowed after a banner 1989, and futures exchanges in London, Paris, Tokyo and elsewhere are grabbing ever-larger shares of the world futures trading pie. "The exchanges are not about to get married; they are not even engaged. But they are going steady, and that could, down the road, lead to a marriage," said Merton Miller, a University of Chicago professor of finance and a public member of Merc's Board of "What we are looking at is what the experts call the advantages of economies of scale," Miller said. Some of the savings to be reaped from such a consolidation are immediately obvious.

The Merc and the Board of Trade each spend about $1 million annually to support a marketing office in Tokyo, a cost that could be cut by about half in a consolidation. Similar offices are maintained by each exchange in London, Paris and Washington, D.C. But the parties that stand to gain the most are the futures brokerage firms, known as futures commission merchants, which are clearing members of both ex-, changes. These firms employ expensive back-office staffs to clear customer trades and provide other important functions. Presumably, posts with Foods and worldwide ended last about 65 On the advertising Weekend Fran promoted Mard Barth the agency.

Strictly Cassin, Keith Roxworthy, and John Time the Time parent of its Inc. Book billion. Named Reginald chairman, the magazine Kelso Sutton, and president of Little, Books and Americans of fragrances This shave and a in early 1991 Details of the be announced York. Miller. Miller was funding into the rise fo some pullback by consumers and businesses," Greenspan told the committee.

Still, he said, there is scant evidence today of a downturn in consumer spending. But businesses appear to be scaling back outlays on capital goods because of uncertainty over the health of the economy, Greenspan said. Layoffs will increase as a result, and that will further dampen economic growth, he said. If there are few signs that consumer spending is dropping, there is solid evidence of mounting inflation. On Tuesday, the government said prices at the consumer level rose last month at an annual rate of almost 10 percent.

Much of that rise was attributed to the sharp increases in energy costs. I Greenspan said he expected another big rise in consumer prices in September, noting that the boost in oil prices alone will lift the annual inflation rate by 1.5 to 2 percentage points. "Despite the general sluggishness in business activity this year, the underlying trend in inflation -has not improved," Greenspan said. "In fact, the core rate of inflation in consumer prices may have crept higher." Greenspan said the higher energy prices have not led to demands for higher wages. And they may not if prices stabilize, But if prices continue to go higher, he said, workers will demand pay boosts to keep up with inflation, a situation that could easily lead to a wage-price spiral similar to the one that plagued the U.S.

in the 1970s following oil price shocks from the Middle East. CAR TO CAR BAG I Makes phone portable and usable from car to carl Including antenna end cigarette lighter adapter. MftOMfO fJUJS 0fWOf envrr CniULARCHZ NORTHFIELD (703) 441-5200 1650 Willow (Vt bM. o( Edene) Noithftsld Houra M-F: 8 30 a -6 00 m. SAT- 10 00 00 pm ASK US ABOUT Feature Paks Corporate Account Programs The On Club8M $(pocr Field's Continued from page from Dayton Hudson.

ran oi inai concern stems irom the wording of a letter sent by Field's to prospective applicants for $300,000 in special end-of-the-year grants offered by Dayton Hudson. A major priority in these guidelines is to fund "social action" efforts that arise from "creative proposals for programs which prepare young persons ages 14 to 20 for a lifetime of productive employment" Dayton Hudson's second major priority is to fund arts programs "that oner access to the arts for economically disadvantaged youth or develop artistically talented minority youth." A summary the criteria under wfiich grants are made notes: "We do not usually support health education institutions, recreation, therapeutic and residential programs, housing and living subsidies, care of handicapped people or emergency care." "Well, that's what we do," said one employee of an AIDS care-giving group. Dayton Hudson will not turn its back on the AIDS volunteer community, Davis said. The new Field's has agreed to honor several multiyear charitable commitments made by Field's former managers, including a 5-year agreement to give $15,000 annually to the American Foundation for AIDS Research, she said. She hopes that a Field's execu-.

tive will continue to sit on the board of the AIDS Foundation of Chicago, filling a job left vacant by an executive who left Field's in the takeover by Dayton Hudson. Field's is still expected to provide merchandise to the annual "silent auction" fundraiser sponsored by the Howard Brown Memorial Clinic, which serves people with AIDS, she said. And next year, when the newly created Field's public affairs committee begins to dole out Field's portion of Dayton Hudson's charitable funds, AIDS programs will be considered for some of the grants, she said. Fundraisers can seek these ornnts hv nnnlvina under the "mis cellaneous" category, to which 20 percent of the corporation's charitable funds will be devoted, she License nnnniiM renm nam pens" he said. The company will continue Cri nick-Inn mi a nmorammino nn the station, he said.

"Our goal is to make the station bigger and better. We are looking to expand local coverage and improve the quality. We understand i that the Latino community has been concerned, asking, 'Are they going to take our station away from Monroe will explore the possibility of buying some of Video 44's facilities and of hiring some of its employees, said Fickinger. "We haven't been in touch with .1. m.mm MnnnAAtMAtt It's nAen- ble they will want to discuss a sale of the stuff, and maybe they won't Weiust don't know, he said.

The FCC has taken away television licenses five times before because of challenges, said Professor a ii i i .1 i Alien acnocnocrgcr vi uic ijuyuiu University Law School. "The most notorious centered on a Boston case that centered on financial dealings. Another case in THE CAR PHONE THATCONVERTS BAG PHONE SPECIAL! Joel Weisman and Dr. Mathilde film director Mike Nichols; and said. This category is intended to fund projects that suit specific community needs; for instance, funds in this category were used to provide $25,000 to the Joliet area Red Cross to help tornado victims.

Davis acknowledged, however, that little, if any, of the $300,000 made available by Dayton Hudson for the special year-end grants will fo to AIDS-related programs, hat's because Field's eliminated the "miscellaneous" category from this round of grants to prevent confusion, she said. But the move has led to some concern in the AIDS fundraising community, just as Dayton Hudson finds itself in the midst of a flap over its decision to halt education grants to Planned Parenthood of Minnesota. Some Dayton Hudson credit card holders, believing that the corporation caved in to pressure from anti-abortion groups, have been canceling their cards and boycotting the Minneapolis stores. Dayton Hudson, which is reconsidering the cut, said its decision had nothing to do with pressure from a special interest group. (No such action has been called for in the Chicago area, where the Planned Parenthood group was not affected by the Minneapolis cut, a spokesman, for the group said.) St Louis had to do with racial discrimination.

Three affiliates of RKO lost their licenses in 1980 because they didn't disclose that another affiliate had bribed some foreign officials in an unrelated matter," he said. Such an FCC action is "shocking because it happens so rarely," said Schoenberger. "If this Wednesday's action turns into an indication that the FCC is going to be more active in this area, a lot of people are going to be concerned." WSNS, like most other stations, no longer carries subscription TV. "The FCC is making a decision on the basis of an experiment that failed," said Schoenberger. "They are saying that the relevant time is when the challenge was made, not what the station did after that The FCC had granted Video 44's renewal application last year, but an appeals court ruled in April that the agency had put too much emphasis on the station's "renewal expectancy" and not enough on the change in its format and performance or the obscenity charges.

The court sent the case back to the FCC with directions to reconsider it A i i 1 i m-A into this area," said Greg Harris, president of the board of Open Hands Chicago, a meals-on-wheels program for AIDS patients, which receives funding from the AIDS Foundation of Chicago. "I just hope we don't lose that commitment with Dayton Hudson." i "Their priorities are different from Marshall Field's corporation," said Marcia Lipetz, executive director of the AIDS Founda-ton of Chicago. "I have a feeling it will mean a decreased amount of support for AIDS funding," she said. will notice the change in ownership, and we will miss Phil Miller," she said. Chicago futures exchanges Founded: 1848 Membership: 3,642 Volume: 138.3 million contracts traded in 1989 Trades: 30 futures and futures options including wheat, corn, oats, soybeans, soybean oil, Treasury bonds and Treasury notes Trading space: 51,000 square feet Employees: 781 I Founded: 1919 Membership: 2,724 Volume: 105 million contracts traded in 1989 Trades: 32 futures and futures options, including cattle, pork bellies, hogs, lumber, financial products, currencies Trading space: 40,000 square feet, with an additional 30,000 not used.

Employees: 1,000, Chicago Tribune Graphic these staffs could be cut dramatically if the exchanges consolidated such work. Exchange leaders acknowledge that their decison to explore the limited merger is born of a fruitful working relationship that grew as they faced several common challenges recently, including development of an after-hours trading system. UJfmm Photo (how likeness of phone in bag. Full featured Technophone Mobile Phone with hands free, antenna and Installation. New Cellular One service required (or 120 days or add $300 to phone price.

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