Daily News from New York, New York • 189

DOW JONES Down 14.34 "We have in effect declared war on excess volatility, both in the short term and the long term." John Phelan NYSE chairman i "irtfiiTnlVi-ifn i r- 'i iilii'iiiirt Friday, November 3, 1989 Nog it pains JlSusJi to say Making Kodak shutter The International Union of "Electrical Workers plans a drive at Eastman Kodak which has long staved offorganization attempts by offering workers generous bonuses and benefits. I UE organizer Edward Young said when he used to talk to Kodak workers about unions, "they'd spit in your eye." But now Kodak plans to lop 3,500 jobs, freeze workers' pay and change its bonus system. Copy choppy A deal to lower the capital gains tax is dead for this year, legislative leaders conceded yesterday. President Bush and Senate Republicans said they were giving up on their attempts to attach a capital gains tax cut to crucial debt legislation because of Democratic opposition. The stalemate over capital gains has delayed the legislative agenda to the point where the government is threatened with default next week because the Treasury's $2.8 trillion debt limit has not been raised.

By removing the capital gains provision, there is a better Bush's main campaign themes. In September the House passed a measure that sharply reduced the taxes on profits from the sale of stocks, bonds and real estate. The longer an asset was held before selling, the greater the tax break. New York City's real estate industry was one major sector that was expected to be greatly affected by passage of a capital gains tax. Real estate experts predicted that there would have been a rush to sell to take advantage of the lower tax rate offered for a limited time.

Surprised Senate Democrats had no immediate response but said they "would not reject the offer out of hand." News Wire Services chance that legislation to increase the federal debt limit will pass in time. "We have tried to work constructively and cooperatively with the Con-, gress in a true spirit of bipartisanship," said a statement from Bush. "Now the stalemate must be broken." He said he is still "firmly committed" to cutting the capital gains tax and "will continue to seek every opportunity" to pass it But yesterday's concession means his first realistic chance won't come till next year. Capital gains are the profits Americans make on investments. Under current law, these profits are taxed the same rate as ordinary income.

Reducing these taxes as a means to stimulate the economy was one of 1 1 r- i mii i i ntJl Xerox Corp. plans to drop the ax on 300 workers, or 25 of the staff, in its Crum Forster Personal Insurance unit, as part of a plan to "centralize" the operation. Random selection The man who built Random House into an international publishing power is stepping down unexpectedly after 23 years. Robert Bernstein, 66, had said three years ago: "I want to be a publisher until I'm carried out" But he explained that his decision to quit evolved out of talks with S.I. Newhouse chairman of Advance Publications which owns Random House Inc.

Toys Recall This Toys Us Inc. is recalling 15,000 Crib Pals "Play Shapes" sets because the small shapes could pose a choking hazard for kids. The sets are imported from Taiwan and marked SKN 157198. They contain four plastic pieces one is a circle with a ball that rattles in different shapes and colors. Production number The nation's manufacturing productivity improved at an anemic 1.4 annual rate in the third quarter.

rv-i i if with output gains at a three-year low and unit labor costs rising at the fastest rate since the 1982 recession, the government said. Time has money Time Warner Inc. said that 38 commercial banks have agreed to lend it $11 billion for the two-stage, $14 billion acquisition of Warner Communications Inc. A phone-y thing will jack residential phone leasing fees from 25 cents to 95 cents month. The new prices, due in January, February or March of 1990, depending on the customer's billing "cycle, will be in effect till 1992.

The Traditional rotary phone will lease for $3.50 instead of the Traditional Touch-Tone to $5.10 from the Princess rotary to $5.70 from $4.75, and the Princess Touch-Tone to $6.45 from $5.50. Fifth and 48ih. Shortly after closing shop here, the chain was bought by Waldenbooks. The new location gives Brentano's its 52d bookstore throughout the U.S. Stuehr says Brentano's intends to "bring back the old-fashioned, sedate atmosphere bookstores were meant to have." jack smith daily news BY THE BOOK: John Stuehr presides over yesterday's opening of Brentano's flagship bookstore in the landmark 1912 Scribner Building at 597 Fifth Ave, which until recently had been occupied by Scribner's own bookstore.

Brentano's last operated in the city six years ago, just across the street at THE ASSOCIATED PPESS 0 Earnings JAGUAll DETROIT Ford Motor move to acquire Jaguar PLC for $2.5 billion would give the No. 2 U.S. auto maker a prestige-laden addition to its luxury car Loews, $183 million or $2.43 per share in third quarter of '89, vs. $161 million or $2. 12 per share a year ago Kodak, $329 million or $1.02 vs.

$435 million or $1.35 Ralston Purina, $45.2 million or 65 cents vs. $84.9 million or $1.24 Prime Computer loss of $104.8 million or $1.85 vs. vs. $11.7 million or 24 cents. line, while further investing the huge cash hoard it that the U.S.

car maker uled for the end of the built during its recent re- would pay $13.35 a share in 'month. cord profitability. cash, for: Jaguar pending The deal, which com-: Ford ann'JagiiaT Approval from 75 of Jag- bines the vast resources of firm, is expected to further the interests of both companies in the interna-tiortai marketa'-for luxury carsj. nounced tiaras irtocftholdqraracshaieb Jgordrwiflr thrrhigfcstyletrfn See FORD Page 36 wbeci ttir ycY wf Vr.v TlrVl I.