Standard-Speaker from Hazleton, Pennsylvania • Page 34

Business Standard-' Speaker SATURDAY, NOVEMBER 4, 1995 Page 34 jobless rate hits seven-month low in midst of 'sof landing' Farmers9 Dairy, area landmark, closes doors Farmers' Dairy Store and Ice Cream Shop, a Hazleton area landmark for more than a half-century, closed its doors Oct. 29. Kimberly Culver, general manager of Farmers' Cooperative of Hazleton, said the board of directors no longer was interested in operating the combination dairy bar, sandwich shop and snack store. Asked if the closing will be permanent, Culver said the board "is looking at its options" concerning the business at 32nd and Church streets in Hazle Township. At the time it closed, the store on the west side of North Church Street (Route 309) employed "eight or nine" part-time workers, Culver said.

The dairy store originally was in West Hazleton, but moved to the present location when Farmers' Cooperative Dairy built the building in 1943. Farmers' moved its milk processing operations, along with milk, iced tea and lemonade packaging, to Clover Farms Dairy in Reading late in 1993, but continued distributing those products and manufacturing ice cream at the Route 309 site. The sit-down dairy bar and restaurant carried an ice cream, beverage, sandwich and light foods menu. The store sold packaged milk and dairy products, and snacks. in manufacturing payrolls in October.

But analysts noted the drop was the sixth in seven months and maintained that industrial production would remain soft until businesses trim excess inventories. Service industries, on the other hand, continue to create jobs, although at a slower pace than earlier. Payrolls increased 57,000 in October and 67,000 in September, well below last year's monthly average gain of 117,000. Although the health industry came up with 27,000 new jobs, business services dropped 10,000 slots after large back-to-back increases. percent annual growth rate in the second quarter, the nation's economy shot up to a 4.2 percent rate during the next three months, partly the result of a Fed interest rate cut in July.

However, recent reports suggest the economy is slowing again to a more sustainable pace of 2.5 percent to 3 percent. Even if it were to slow further, many analysts maintain the Fed would wait until after President Clinton and Congress complete work on a budget-reduction plan before deciding whether further rate cuts were needed to stimulate growth. The strike at the Boeing Co. contributed to a 21,000 decline By JOHN D. McCLAIN Associated Press Writer WASHINGTON (AP) The nation's unemployment rate hit a seven-month low last month I propelled by new jobs in construction, health care and real Restate.

Despite the improve-; ment, analysts said the economy is growing only slowly. "This is an economy that is in 'a subdued, sedate growth phase," said Robert G. Dederick, economic consultant at Northern Trust Co. in Chicago. "But it is a growth phase." The jobless rate edged down 5.5 percent, matching the fig-ure of last March, the Labor Department said Friday.

i Many economists believe that since an economic "soft landing" moderate growth without in-; flation is the target of Federal Reserve policy, the central bank probably will leave interest rates unchanged for now. "This is consistent with a soft-landing scenario but soft landing also means a soft economy," said Sung Won Sohn, an economist with the Norwest Corp. in Minneapolis. "So far this year, job creation is only half the rate achieved in 1994, so economic growth has slowed considerably." "It's steady as she goes," Labor Secretary Robert B. Reich said of the jobless rate.

"It's the 14th consecutive month below 6 percent, with no wage-push inflation in sight." The economy created more than 100,000 new jobs a figure that would have been even bigger except for a strike that idled 26,000 aircraft production workers. Wall Street reaction was mixed. Broad stock market indexes were mostly higher, with the Dow Jones industrial average rising nearly 17 points and reaching a record level for a second straight day. Bonds, however, lost ground over investor concerns the low jobless rate might jeopardize further rate cuts. In its report Friday, the Labor Department said the jobless rate dipped to 5.5 percent for the first time since last March.

It had stood at 5.6 percent in August and September and hasn't been as low as 5.4 percent since February. At the same time, the report said jobs grew by 116,000 and would have grown by more except for the strike that idled 26,000 aircraft production workers. On the other hand, the department revised its initial 121,000 estimate of September payroll growth to just 50,000. That meant job creation averaged just 95,000 during the two months, compared with 263,000 in August. After slowing to an anemic 1.7 State unemployment rate at 5.1 "When you have 'these millions of personal decisions," he said, "the total is a labor force that may decrease or increase from month to month." Preliminary surveys show more service-sector jobs opened up in October, Paisner said, but not enough to account for much of the decrease.

Long-term trends are more accurate, he said. If the number of job hunters were growing as the unemployment rate dropped, the job market would clearly be improving, he said. "But we haven't seen that peso tumbles anew By CASEY COMBS Associated Press Writer PHILADELPHIA (AP) The drop in Pennsylvania unemployment to its lowest rate in nearly two years does not necessarily indicate the job market has improved, a U.S. Department of Labor spokesman said Friday. The jobless rate fell from 6.4 percent in September to 5.1 percent in October, said Alan M.

Paisner, regional commissioner for the department's Bureau of Labor Statistics. The rates are the highest and lowest of the Battered By JOSEPH B. FRAZIER Associated Press Writer MEXICO CITY (AP) Mexico's already battered peso plunged Friday amid rumors of a military coup and of increased army activity in the rebellion-wracked state of Chiapas. The currency closed Friday afternoon at 7.365 pesos to the dollar (13.57 cents), just shy of the record low close of 7.45 on March 9. It fell as low as 7.67 to the dollar during Friday's trading, underlining the market's sensitivity.

A spokesman for President Ernesto Zedillo dismissed the coup rumors as "complete nonsense," especially as they came on the heels of several important announcements aimed at helping Mexico out of its 10-month-old crisis. On Sunday, Zedillo announced the Alliance for Recovery, a package of incentives to spur employment, raise wages JaiKLS'l TZ --licr lyr- C( fTvvJ if feiC VALLEY ORIGINALS GRAND OPENING Valley Originals owner Diane Bonanni, left, and area artist Mary Theresa Hoegg, ,1 right, stand in Valley Originals new store in the Route 93 Plaza in Conyngham. Valley Originals recently held its grand opening, and the store offers a place for local artists like Hoegg to sell their work. 2 1 YTD thought Friday's rumors began among their New York counterparts. The White House was asked about the rumors by reporters at a regular briefing in Washington.

"Our understanding via our embassy in Mexico City is that there is nothing to substantiate those rumors," said White House press secretary Mike McCurry in Washington. Nonetheless, the plunging peso signaled Zedillo's inability so far to restore investor confidence to markets still jittery over the December devaluation. Nora Lustig, a Mexico expert and political scientist at the Brookings Institution in Washington D.C., noted that trading was light Friday and the low volume made the peso vulnerable to any negative news. She added she was concerned about the source of the rumors that swept trading floors Friday morning and wondered whether they were planted to destabilize trading. "In sum, you have a market that is thin so rumors can cause troubles to that market," she 6aid.

"Did someone just start the rumors or is this a calculated strategy by someone who wants to purposely introduce instability in the Mexican economy?" Mexico's military maintains a generally low profile. The last coup was in 1920 and the armed forces have traditionally remained subordinate to the Institutional Revolutionary Party, which has governed Mexico since 1929. In an unusual step, the army issued a statement Wednesday saying it supported Zedillo's Alliance for Recovery. Commentators questioned whether the over the last six months," Paisner said. The number of residents without jobs in October was down to 297,000, a drop of about 80,000 since September.

The number of working Pennsylva-nians jumped 41,000 in October to 5.5 million people. The number of employed residents has increased by 84,000 since October 1994. The number of people in the work force, either employed or looking for work, fell from 5.84 million people in September to 5.80 million in October. military had overstepped its traditional role of national security to discuss a matter of economic policy. Commission OKs ten road projects HARRISBURG (AP) Funding uncertainty will not stop 10 road projects worth $220 million from moving through the development phase, the state Transportation Commission has announced.

Transportation Secretary Bradley L. Mallory said Thursday the projects will advance through August, when the commission will re-evaluate all road projects. Mallory is commission's chairman. "The uncertainty of transportation funding in the federal budget and the lack of revenue growth in the state's own Motor License Fund have combined to cause us to reconsider what investment level will actually be available in both the near term and the long term," he said. But the commission is committed to finishing the 10 projects, Nonferrous metals NEW YORK (AP) Spot nonferrous metal prices Friday.

Aluminum 76.4 cents per lb, Oondon Metal Exch. Fri. Copper $1.4000 Cathode full plate, U.S. destinations. Copper $1.3600 per lb, NY Comex spot Fri.

Lead 46 cents per lb. Zinc per lb, delivered. Tin $4.3256 Thu. Metals Week composite price per lb. Gold $382.55 Handy Harman (only daily quote).

Gold $382.40 troy NY Comex spot month Fri. Silver $5,305 Handy Harman (only daily quote). Silver $5,273 per troy NY Comex spot month Fri. Mercury $250.00 per 76 lb flask. New York.

Platinum troy N.Y. (contract). Platinum $409.30 N.Y. Merc spot per troy oz. Fri.

million "BBB outstanding cumulative monthly income preferred securities, series remaining $128.7 million "BBB" series A shelf registration, and the proposed $135.0 million "BBB" trust receipts representing PECO Energy Capital, L.P. cumulative monthly income preferred securities, series B. The credit trend remains stable. Also removed from FitchAlert are first mortgage bonds and shelf registration and Lehigh County Industrial Development Authority's (PA) 9.375 percent first mortgage pollution control bonds rated preferred stock and shelf registration rated and commercial paper rated "F-l." The credit trend remains stable. Fitch intends to review the company's competitive position and credit outlook in the coming weeks.

year, respectively. "We are leery of making too many firm statements based on one month's change," Paisner said. "Next month we could go back to the highest rate." The drop is "statistically significant," he said, but does not necessarily mean many more jobs were created. Rather, he says, many people decided to stop looking for work in October for various reasons. Some may have been dissuaded from job hunting after learning of the high unemployment rate in September, he said.

Mexican and encourage industrial growth that was agreed by representatives of business, labor and government. The plan would raise prices for gasoline and electricity. It also would cut government spending by 4.75 percent while expanding social services and training programs a promise that will be hard to keep. Mexico has lost more than a million jobs since December, and the peso has fallen by more than 50 percent against the dollar since then. Prices have climbed by 40 percent this year alone, and the economy has shrunk by 5.7 percent.

A $52 billion bailout package in March by international financial institutions, including a $20 billion loan from the United States, has saved the Mexican economy from collapse. But the peso has remained under intense pressure. Mexico City traders said they earlier this week. Jamesway secured Gordon Brothers because they are experts in handling liquidation sales and the arrangement guarantees Jamesway creditors and shareholders a swift return, a Jamesway spokesman said. Jamesway had fired half its headquarters staff here in mid-October in anticipation of the bankruptcy filing, which was made Oct.

18. Liquidation is permitted under Chapter 11, which is generally used to reorganize a company's finances. Jamesway blamed weak sales, continued losses and tight credit for the bankruptcy filing, which listed total assets of $185.3 million and total liabilities of $127.7 million. It had announced Oct. 6 that the filing was possible.

Jamesway emerged Jan. 30 from IVt years of Chapter 11 protection and began trading in its new common stock. The last day it traded, Jamesway stock closed at 614 cents a share, down from a 52-week high of $4.25 on Feb. 17. The chain operates stores in New York, Pennsylvania, New Jersey, Delaware, Maryland, Virginia, and West Virginia.

Jamesway operated 122 stores in 1992, but closed 14 before its first bankruptcy filing in July 1993. It closed 18 more before emerging. has uabie since toon company earned $5.8 million on saies of $872 million. The com- wo $38miIIion sales of 'million last year. Judge OKs Jamesivay liquidation sales Nam Dlv PE Last Chq Chfl NUI .90 26 16 to 14.9 NatEdu 7 -'A 87.9 NatFGs 1.62 15 30 to 17.6 NtSvIn 1.12 15 29 to 15.6 NevPw 1.60 14 217B -V 7.4 NEngEI 2.36 13 39V 22.2 NYSEG 1.40 10 25(2 34.2 NflkSo 2.08 14 76 -Vt 26.6 OOkiep 16 50.0 Olin 2.40 12 64 25.7 Onbcp 1.12 30V4 -to 30.1 OwenC 10 42 34.5 PECO 1.741 11 29 20.9 1.67 16 23 '4 21.1 PennEn 2.20 60 35V4 28.8 PermTr 12 13 2 Polaroid .60 75 43 2to 34.2 PIcyMg 47 '4 13.7 PotmEl 1.66 36 25to 36.7 RochG 1.80 10 23V2 12.6 SBC Com 1.65 19 56V4 39.3 SCANAs 1.44 17 25 to 22.5 ShellTr 3.36e 13 70V4 14 7.5 SIvKing 82 31 1 190.7 TECO 1.06 16 24 -'A 18.5 TexUSI 2.00m 37'A 'A 16.4 Tokhem 7 -to UGI 1.40 50 21V2 'A 5.5 UJBFn 1.16 11 32'A -1 33.7 UMeridn 16 15.5 USIndsn 15 'A 8.7 UtilCo 1.72 15 29 to 9.4 VWRSci .12) 13 52.9 WaCS .861 24 57 to 99.6 WashWtr 1.24 13 17to to 24.5 WstAtlas 26 45 1 19.6 YTD Nam Dlv PE last Chq Chg ADT 17 13 -V 29.1 AGCOs .04 7 45'A '4 49.0 AllgPow 1.64 14 26Vz 21.8 Alltel 1.041 19 30 .8 AtlEnrg 1.54 17 19'4 -V 9.2 Atlas 1V? BallyEnt 90 11 A 91.8 BarnNbl 42 37 -V2 18.4 Bayport 50 412 -V4 50.0 BetzLb 1.48 16 40V4 -to BostEd 1.82 11 27 -1A 14.6 CSX 2.081 17 86 24.1 CTEC 79 22to 11.3 CaroPw 1.76 1 4 33to -to 24.4 CedrFr 2.30f 12 31 9.5 CentEn.

.80 6 10 -to 12.7 ConEd 2.04 10 30 -to 18.0 DVIInc 23 13to 28.6 DanaCp .92 10 267A to 14.4 DialCp .641 15 24 to 14.7 DuqpfA 2.10 29 EMPI 38 227A 157.7 FtKeystn 74 19'4 85.5 FleetEn .60 13 21 16.0 FlaProg 2.02 13 33 12.5 GPU 188 12 31 '8 19.5 HarteyD .20 20 27 Harris 1.361 15 6OV4 1 41.8 HertgBc .92 25 HomeSh 8 -'A JDNRty 1.82 20 20 3.1 Judicata 2 ULCo 1.78 9 17 10.6 MMT .58 6V4 -to 6.1 MinnPL 2.04 11 29to to 15.3 GRAND Removed from FitchAlert SECAUCUS, N.J. (AP) All 90 Jamesway department stores are to sell their entire inventory and close by Christmas under a liquidation plan approved Friday by a federal bankruptcy judge in New York. The shutdown of the discount retail chain had been expected since last month, when it entered Chapter 11 bankruptcy protection for the second time. It will put about 6,000 workers in seven states out of work. Jamesway is the latest retailer to stumble in the competitive industry.

Bradlees, Caldor and Smith Home Furnishings, an Oregon-based company, are also in bankruptcy. "We plan to begin offering substantial discounts during go-ing-out-of-business sales which will soon begin at all stores," said Jamesway vice president Michael J. Sherman, a consultant brought aboard to oversee the bankruptcy. The sales will continue until all merchandise is sold, the Secaucus-based company said. Buyers be aware: all sales are final no returns, no layaway.

Jamesway is no longer accepting checks, either. Gordon Brothers Partners Inc. will conduct the sales for Jamesway after prevailing in a court action Friday. Gordon Brothers agreed to pay Jamesway 53 percent of the total current retail value of all its merchandise. The firm would keep the remainder as its fee.

The total current value of Jamesway inventory is at least $207 million, Jamesway said ORIGINAL PIZZA III 12 BROAD ST. BEAVER MEADOWS 450-6 "3 1 8 dill NEW YORK PECO Energy (NYSE: PE) and Pennsylvania Power Light securities are affirmed and removed from FitchAlert, where they were placed with evolving implications on Aug. 14. The action follows PECO Energy's withdrawal of its offer to merge with Resources Inc. The following PECO Energy Co.

securities are affirmed and removed from FitchAlert: $4.16 billion "A-" first and refunding mortgage bonds; $134.2 million "A-" collateralized medium term notes, series $250 million shelf registered "A-" collateralized medium term notes, Dtl 1C9 MJ9 V. IIIIHWII MJMJMJ I 1 4 I nn dddj. uif i preferred stock, Other securities removed from FitchAlert are PECO Energy Capital, L.P.'s $221.5 COMING OUR DINING ROOM! Visit our other locations also WEATHERLY CONYNGHAM 208 Carbon St 300 Main St. 427-9876 788-7870.