The Boston Globe from Boston, Massachusetts • 23

THE BOSTON GLOBE SATURDAY. JUNE 30. 1984 23 Other tables 22' Two new reports point to a slackening economy although increases in recent months have been modest. Commerce and the Department of Housing and Urban Development said May sales of new single-family houses were down 4.4 percent from April, a decline that industry spokesmen blamed on rising home loan rates. The 612,000 annual sales rate was the slowest since last September.

The decline in the leading Indicators was so small that It could well disappear when revisions are released next month. But If it stood, it would end the longest string of monthly increases since World War n. That would not be seen as bad news by many government and private economists, who have said a gentle slowing in overall economic expansion might well be desirable, easing pressures on inflation and interest Associated Press WASHINGTON The government's forecasting gauge for national economic health edged down in May for the first time since 1982, in another sign of a general slackening In the once-robust expansion. Sales of new homes also declined for the fourth month in five, as average prices topped the $100,000 mark for the first time. However, government officials and private analysts showed only mild concern Friday, saying the economy, was merely slowing, not failing.

And there was no talk of a new recession anytime soon. In the two reports: The Commerce Department said its Index of Leading Indicators slipped 0.1 percent from the April level. That was the first decline since August 1982. rates and thereby lessening chances the recovery will be cut short. Other reports have shown such major parts of the economy as industrial production and retail sales already slowing this year.

Commerce Secretary Malcolm Baldrige noted that the leading Indicators had averaged Increases of 0.5 percent during the last six months after rising 0.9 percent per month during the previous half-year. "Past experience indicates that this slowdown is signaling less vigorous economic growth during the second half of this year," he said in a statement. But a single slight index decline hardly seemed to indicate anything worse than a slowing. In contrast, the indicators dropped five times in seven months preceding the beginning of the 1981-82 recession. Besides a decline In average work week to 40.7 hours from 41.2 hours in April the index was lowered by declines In net business formation, building permits for future construction, prices of sensitive raw materials, stock prices and the number of companies reporting slower business deliveries.

Positive indicators Included the increase in plant and equipment orders, increases in the money supply and in orders for consumer goods and a decline in initial claims for state unemployment insurance. The housing report, besides showing the decline in sales, said the average price of new homes sold last month rose to $101,000 from April's $95,900, passing the $100,000 mark for the first time. The median price rose from $79,400 to $80,900. meaning that half the homes sold for more than that figure and half for less. ess Argentina and banks in accord on interest approves bankruptcy court bill -j IL iiu ai is "-'rir if tit i if 111 fifim 1 IV I rS i iir The Cape Cod Hyannis Railroad train arrives in Bridgewater.

GIOBE PHOTO BY GEORGE RIZER Hyannis, Falmouth-All aboard! south BRAINTREE holbrook MIDWfBOROSk 'ARNSTABLt'' (ft iff to )M Nantucket) (( Marthas Vineyard) Associated Press WASHINGTON Congress broke a two-year legislative deadlock yesterday passing without a word of opposition a bill designed to give the nation a lasting and constitutional bankruptcy system. The House voted 394-0 for the overhaul of bankruptcy courts and the Senate concurred by voice vote, sending the measure to President Ronald Reagan. His quick signature would avoid further disruption in the 600,000 cases before bankruptcy courts. Sen. Howell Heflln (D-Ala.) said he's "not happy with all provisions" but added the legislation contains "many significant substantive reforms of existing law." Once hopelessly stuck In a web spun by competing special interests, the bill sailed through the House as a fine-tuned report written by conferees from both chambers, and accepted as the best compromise possible.

"They said it couldn't be done, and we did it," said Rep. Dan Lun-gren Rep. Peter Rodino chairman of the House Judiciary Committee, added that the long struggle was ending "to the surprise, amazement and relief of many." Congressional authority for bankruptcy court operations expired at midnight Wednesday, but cases are proceeding under emergency rules set by the governing board of the federal Judiciary. The conferees finished their work Thursday night on a successor system to one ruled unconstuti-tonal by the Supreme Court In 1982. In the two years since the decision, lobbyists for consumers, business, labor, Judges, farmers and other groups flocked to Capitol Hill, trying to persuade Congress to include provisions favorable to them.

Initially, there were struggles over consumer debt repayment and the powers of bankruptcy Judges. Then last February, the Supreme Court touched off the bill's major debate by ruling that companies filing for bankruptcy could cancel labor agreements without awaiting a Judge's ruling. Compromise language on the labor Issue wasn't settled until nearly 3 a.m. Thursday. Conferees agreed there would be no unilateral contract cancellations and established new ground rules for judicial rulings to change collective bargaining agreements.

The labor provision will not apply retroactively to Continental Airlines or other companies that prevldusly ended their union contracts after filing for reorganization under bankruptcy laws. The new bill limits the power of bankruptcy judges over non-bankruptcy issues and establishes 14-year terms of office a section designed to meet Supreme Court Associated Press BUENOS AIRES Only hours before the deadline, Argentina yesterday announced that an accord had been reached with creditor banks on payment of overdue Interest on the nation's $43.6 billion foreign debt. Economics Minister Bernardo Grinspun said Argentina would supply $225 million from its currency reserves to help meet the payments due today. He said creditor banks would approve a loan of $125 million for a 45-day term, renewable on expiration. The other $100 million to meet the roughly $450 million owed in overdue Interest was deposited a week ago with creditor banks in the United States.

The actions announced by Grin-spun at a news conference will allow Argentina to meet another critical deadline for safeguarding its International credit. Settlement of the the interest payments was Important because Argentina was Involved In a confrontation with the international financial community over terms off paying back the debt. The six-month-old government of President Raul Alfonsin has resisted the austerity measures international financiers want him to impose. He has argued that the measures will make inflation worse and endanger Argentina's fledgling democracy. Had Argentina allowed the debts to be defaulted.

It could have set a precedent for the other countries that owe hundreds of billions of dollars in debts and are struggling to find ways to handle the debt burden. The $100 million Argentina deposited with creditor banks in the United States was left over from an emergency loan made to Argentina in March, Grinspun said. Argentina had been reluctant to dip into its hard currency reserves, estimated at $1.5 billion, to make the entire payment. If the interest was not paid by Saturday, the debts would pass Into the "nonperforming" category of the creditor banks' ledgers and the expected interest subtracted from the banks' profit-and-Ioss statements. Yesterday was the last banking day before the deadline.

Grinspun also said an agreement had been reached to extend by 30 days the deadline for paying back a $100 million loan from creditor banks and a $350 million loan from Venezuela, Colombia, Mexico and Brazil. Those loans were made March 30 to cover overdue interest that had to be paid on that date. Argentina is negotiating with the IMF for a $1.1 billion standby loan to make interest payments on the foreign debt. By Fred Pillsbury Globe Staff The first passenger train to Cape Cod In a quarter century left the South Braintree MBTA station at 11:05 a.m". yesterday, an hour and five minutes late.

But nobody on board seemed to care very much about the schedule. Even Mark Snider, the 27-year-old president of the Cape Cod Hyannis Railroad, which runs the service, said "That's what makes life exciting." The fault was not the railroad's anyway. Snider said an electrical problem in the railroad bridge over the Cape Cod Canal which is operated by the Army Corps of Engineers delayed the train on Its way up from Hyannis. Yesterday's trip, which went to Buzzards Bay and back, was mostly for the media and politicians. There were speeches on the brand new South Braintree platform, refreshments and jazz music on the train and more speeches and more jazz at the Capt.

Augustus F. Wagner Memorial Bandstand at Buzzards Bay before the train returned. Regular service to Hyannis and Falmouth from South Braintree and in the opposite direction starts this morning. 25 years to the day, the railroad says, since the last but most of the windows opened and the breeze was pleasant. At the various stops along the way Holbrook, Brockton, Bridgewater, Middleboro and Ware-' ham there was bunting across the old stations and kids on bikes came out to stare and traffic stopped as the reporters and camera crews and politicians popped on and off.

At South Braintree before the trip started Gov. Michael S. Dukakis said in an interview that restoring train service to the Cape "has been a dream of mine for a long time. One reason to do this is to test it and see what kind of interest 'there is." Even when the Southeast Expressway project is completed, he said, "there will be limits to the. highways' ability to handle people.

If it makes sense we should at least consider doing this in the summer." The present service, which Is not state-subsidized, ends in the fall but South Shore legislators spoke enthusiastically of it as the forerunner of regular commuter trains. Snider took a more relaxed view. When the trains speed up, he said, it will be better for commuters "but there's no way we'll be trying to be the fast lane to the city." Map shows route of Cape Cod train. bed is in shape. 60 mph will be the limit.

Speed isn't really the point anyway Snider said as the six-car train creaked and rattled through the South Shore woods. The view is pretty, meals or snacks are available, depending on the train, and the tavern cars are well stocked. The cars, which range from a Pullman parlordining car built in 1912 to a 1957 tavern car, are painted an old New Haven Railroad green outside and light colors inside. There was no air conditioning Boston-Cape train. According to the timetable, the Hyannis trip will take two hours and 25 minutes and the Falmouth trip will take two hours and 15 minutes.

There will be two trains each way a day. The fares range from $4 to $8 oneway. That's not fast top speed yesterday was at the "furious clip of 30 mph," as state undersecretary of transportation Matthew Coogan put It but he said that in two years, when the state-owned road Stocks up modestly, Dow at 3-week high Associated Press NEW YORK Stocks retreated from a broad upswing but still managed a modest gain in active trading yesterday, with the Dow Jones Industrial Average hitting a three-week high. Auto, aerospace, financial and mining issues advanced, but several oil, computer and telephone stocks fell back. The Dow Jones average of 30 Industrials rose 5.85 to 1132.40, Its highest level since June 7, when It closed at 1132.44.

The blue-chip mea sure, up 1.33 for the week, had risen nearly 13 points earlier in the day. Advances led declines 4 to 3 on the New York Stock Exchange. Big Board volume swelled to 90.77 million shares from 77.66 million in the previous session. Nationwide turnover in NYSE-listed issues totaled 106.11 million shares. Prices were ahead for most of the session after the government released two reports signaling a slowing economy.

Investors hope the slowing economy will curb the rise in private credit demand that Is clashing with the Treasury's borrowing and producing upward pressure on interest rates. Electronic Data Systems rose to 41 and topped the NYSE's active list. EDS agreed to be acquired by General Motors, which rose Vfe to 65. An block of EDS crossed at 42. Elsewhere In computers, Burroughs rose 1 to 53'4 in heavy trading and International Business Machines gained V2 to 105.

First 'house-rich and cash-poor' owner taps reverse mortgage annuity their home. It would be most helpful for older homeowners who are awaiting space In an elderly development, a nursing home or another planned move." The reverse mortgage works for homeowners who own homes free and clear. The lender makes payments over an extended period of time usually three to 10 years. When the loan comes due. all principal and interest must be paid in full.

The house Is used as collateral for the loan, and In most cases, the loan amount equals 60 to 80 percent of the appraised value of the property. If the homeowner does not die before the loan comes due, he may have to sell the house, and can end up with no property. Some homeowners like it that way since they are buying time, and money, before moving elsewhere. health care, plus home maintenance and repairs far more than her fixed income. But because her, home is assessed for $124,200, the bank and state were able to strike a deal that will put her income at $26,000 a year after she receives the loan.

The arrangement stands to benefit another 267,641 homeowners aged 65 and over in the commonwealth. However, despite the advantages of the reverse annuity mortgage. Norma Moseley, director of the Ecumenical Social Action Committee, says the loan Is not good for everyone. "This type of loan would only be appropriate for someone seeking or needing additional Income for a short period of time, say, five to seven years. This Is not for people who wish to permanently, remain in primarily for those over 65, the loan is paid to homeowners in monthly Installments by the lender the reverse of a conventional mortgage.

"The EOCD wants to use this as an example of elderly people across the state who could use the money tied up In their home for other purposes," said Doro-. thy Altman, EOCD's coordinator for elderly housing. Last year, the agency made an $18,000 grant to the Ecumenical Social Action Committee to obtain information and work on home equity conversion programs for the elderly. For the widow, who is legally blind, diabetic and aided by a pacemaker, It was a timely deal. While her home was paid off years ago.

It costs about $25,000 a year to maintain her at home with 24-hour in-home By Desiree French Globe Staff An 87-year-old Jamaica Plain widow, in failing health and living on an annual Income of $9000, yesterday got a chance to make her life a little easier and more cash-abundant. With assistance from First American Bank for Savings and the state's Executive Office of Community Development (EOCD). the woman (who does not wish to be identified) took advantage of the first reverse annuity mortgage loan offered in Massachusetts. The mortgage already available In California, and In limited programs In Maine. New Jersey and New York enables "house-rich and cash-poor" homeowners to tap some of the equity in their homes.

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