The Knoxville News-Sentinel from Knoxville, Tennessee • 36

Pap 4 The Knoxville News-Sentinel Sunday April 26 1970 Cmi Business Week index 1705 1605 1603 The Week in Finance Mine Firm Meets Old New Rules Coal Crisis May Cut Power Tha ipmdlng Impact of tha trucking itrika glvai tha In Pax anothar downward puah this week Layoff! aia riling in al acted kiduatriaa in kay (hipping cental Auto output ton to Ha towaat point this yaar and whita itaal production roaa tha mini ara having problama delivering thair piwivnm wintering meir Gloom Deepens ion Wall Street a aL product ainca hauling rlga ara out too 1970 By THOMAS MULLANEY 1771 Nft York Times New Service NEW YORK April The pervasive gloom in Wall Street deepened this week as financial and investor took a decisive turn for the worse no particular new reason In some quarters the mood "Who says our Government contract's not being renewed?" 'Junction Has Identity Crisis by Laffitte Howard Second Merger Due for Chadbourn MEMPHIS April 25 W-The nation is faced with a power shortage so acute that rationing is being considered by public power suppliers the general manager of the American Public Power Association said here Alex Radin blamed a coal crisis as the reason for the prospective power shortage Radin said publie power suppliers report the price of coid has increased 25 per cent in the past two years Nixon Asked to Intervene He said he had sent President Nixon a letter apprising him of the coal crisis for public power suppliers and urging him to intervene The coal output is dropping he said and listed these reasons: demand for coal for use in producing power in many parts of the county is far outrunning quantities offered by coal companies Contracts Not Filled number of bidders for coal contracts has dropped and prices are escalating at alarming rates Coal companies in some cases are rationing their supplies among contract customers In other' instances contracts are simply not being Radin said electric power may have to be rationed in many parts of the country tills summer "The critical coal shortage may lead to increased electric rates to consumers he said (Coal production in Eastern Kentucky and Tennessee and Southwest Virginia has fallen sharply in recent weeks because many times have been closed by restrictions of the new mine safety THE EDITOR) A 400-acre tract In Sevier County that may be pardoned if it has an identity crisis In the past 10 years been the Rebel Railroad then a real Western Gddrush which in turn has become a mountain village And the end of this change from farmland to fun land has not yet come over the mountain Right now Goldrush Junction is growing as fast as 40 men can build log cabins and a swimming pool and a trailer park and a lot of other things their eyes ever on the May 30 opening Even the name will change before dogwoods dot the hills again with the winner of a name-picking contest getting a trip to a doubleheader pro football game as guest of the owners the Cleveland Browns knows the needs of his homefolks Born and reared in Sevierville the son of JN Fox who was part of Atchley Fox dry goods store and a prime mover in establishing the Smokies Park After attending UT John Fox worked for ALCOA did construction work for Du Pont (Hi the X-10 plant at Oak Ridge was with the American Museum of Atomic Energy and ORNL there and for the past nine years was public relations director at Carson-New-man College He's married to the former Ruby Maples daughter of Ott Maples a retired Fulton machine shop superintendent and she's as busy as her husband getting ready for the grand opening just five weeks away A $3 entrance fee covers anything you want to do in the center proper except food and the souvenirs you buy Outside and for free is the Bert Vincent Nature Trail picnic areas and the bears want to see Mr Fox said we believe be one of our biggest Two bears to be bought from a zoo will be fenced in a large area at the foot of the hill where the Nature Trail winds and can be seen from the trail Bill former zoo keeper at Tampa Fla has been hired to see to the comfort and safety The Oliver Springs Mining Co has met Department (X Labor standards under an old mining safety act of 1936 which the department earlier charged it with failing to meet Not only that according to a Labor Department attorney the company has almost met the new standards under the Federal Coal Mine Health Safety Act of a regulation much dreaded by some coal companies OK for Contracts Thursday in a hearing in Nashville a Federal examiner said he would recommend to the Secretary of Labor that the Oliver Springs company be considered eligible for Federal contracts In March the company was charged at a Knoxville hearing with having insufficient safety posts clearances and ventilation among other things An examiner gave the comoany until last Thursday to improve the situation Marvin Tincher Labor Department attorney said last week that the company has adopted a "positive safety program of its I addition he said that the company had met all the requirements of the new act with tiie exception of certain types of circuit-breakers now on order by the company The company will be allowed to operate by the Federal Bureau of Mines until the circuit breakers are installed Old Act Prepares for New Mr Tincher said Curt Owens general manager of the company said in Thursday's hearing that the company had prepared for regulations of the new act through tiie Labor enforcement of the old act The department had inspected the company last year Its enforcement caused the company to be better prepared for regulations of the new act which became effective April 1 Mr Tincher said The company had to close one week for improvements after April 1 but other mining companies are still closed because standards at their mines are not up to par The companv which has two mines near Oliver Springs has been awarded over $4 million in Federal contracts for coal in the past four years Stockholders of Continental Strategics Corp of Chattanooga have approved a proposed merger with Chadbourn Inc oi Charlotte NC Chadbourn is also in the process of merging with Standard Knitting Mills here Continental Strategics makes and sells carpets and and clothing Under the agreement worked out with Chadbourn Continental stockholders would receive one share of Chadbourn common for each 275 shares of Continental common Chadbourn closed Friday on the New York Stock Exchange at A late quotation on Continental Strategics was 2 bid and 3 asked Chadbourn makes hosiery pantyhose and knit products work clothes leisure wear for men and boys and nylon yard and packaging materials for its own plants Aluminum Plant Loses To Close BUT FOR THIS SUMMER the Pigeon Forge place will be Goldrush Junction but with the songs and plays and costumes and music and such changed to reflect the region (X which it is becoming an increasing part what we want to said John Fox a Sevier County native come back to manage Goldrush want to be a part of the community and going to tty to be as authentic as Williamsburg in making this a mountain village as they used to After the Cleveland Browns bought Gold-rush Junction from the Robbins brothers of Blowing Rock a year ago they spent $100000 and propping for last summer Since then spent a half million on everything from landscaping to cutting a trailer park out of the side of a hill and laying sewer lines to each site Further expansion will depend on the popularity of Goldrush which is becoming a complete vacation center This summer be a village of log cabins moved in from other sites where candles will be made and corn ground into meal For the adults if they can stay off the railroad or flume ride also be a tobacco exhibit by Bill Mullins of New Farmers Tobacco Warehouse here Hourly an auctioneer will give his chant and then alow down so that the uninitiated can tell what prices he has been offered for the leaf Car Firm Moving to Hull-Dobbs Site CYNTHIANA Ky April 25 VI of the Kawneer Co aluminum plant here have announced tiie plant will dose because Of business losses Wallace Hicks personnel manager said the decision was based on sharp losses suffered by Kawneer in the first quarter of this year About 250 of more than 350 employes at the plant one of Cyntiana'a two largest employers have been on strike since Feb 12 THIS CARE with which the bears are confined is a part of Goldrush plans to become a part of the community "We want church groups to come and have picnics and bazaars in our shelters outside the center Mr Fox said artists can show their wares and families can hold reunions We need more of families getting Additionally a coon dog bench show a gun display and a Miss Goldrush contest are planned for the summer More than 200 boys 12 to 17 have signed up for a free football clinic June 24-27 and the Goldrush pool will be the home of the Sevier County -Goldrush Junction swimming team which will compete in the Knoxville Interclub League Goldrush is also helping with the Sevierville Teen enter How much the Browns expand the center in the future will depend on how well the turnstiles turn this summer but thinking of a bobsled run and outdoor ice skating And the Junction's future has another big thing going for it When Bob Brodhead the Duke football star of the late '50s was discharged from the service at Ft Campbell Ky-i he and his wife and daughter spent a night at Pigeon Forge and he still remembers the delight striding the Rebel Railroad Today Mr Brodhead is controller of the Browns and the man directly in charge of Goldrush and he's still in love with the place tally because their reports had not yet been issued They may alter the final results on the down side The manufacturing sector showed a more pronounced drop in the earnings survey On the average profits were down 9 per cent from a year earlier with sharp drops reported by the electrical equipment steel building materials and aerospace industries On the other hand the bank said earnings in the food drug nonferrous metals office equipment and instrument industries showed sizable gains Yields Near Record Levels In its broad price retreat this week the bond market saw yields of many issues return close to the record levels of late A utility bond was offered at a 9 per cent yield and the bond index of municipal yields jumped 23 basis points in the week to 673 per not far from the record 690 per cent level that was touched in the middle of last December The bond market took on a de-cidedly bearish complexion from two fundamental influences: The signs that the economy might be pushing upward again soon creating uneasiness about the prospects for ultimate victory in the fight against inflation and the rapid growth in the supply on bonds for sale at time when investment bankers were expecting some moderation in new offerings Other Developments Other major financial business and economics developments included 1 The Justice Department's suit against Westinghouse am two Mitsubishi companies in Japan charging restraint erf trade in their patent-licensing agreements 2 The $320 million drop in the United States' intemationa monetary reserves during March to a total of $1735 billion 3 The entry of the International Business Machines Corp into the office copier field drawing a patent-infringement suit from Xerox 4 The disclosure that the Soviet Union had asked the Ford Motor Co to help in building a truck manufacturing plant capable of turning out 150000 vehicles a year 5 The moderate about 500000 in the short-in-terest position on the New York Stock Exchange in the latest month to a total of 14204656 shares after three months of declines I The strike of 23000 rubber union members against Good year following rejection of a 25 per cent three year contract offer 7 le 16 per cnt rise in steel output this week bringing the output so far to 40448000 tons or some 11 mil'ion -ns below the 1969 level at the cum parade time Down Move Decisive The downward movement in the stock market this week was decisive and broad as the leading market averages rang up their widest losses in three or more months Almost 700 stocks reached new lows for the year while stocks that declined for the week outnumbered these that advanced in a ratio uf b--ttcr than 7 to 1 Only 27 issues touched new highs for 1970 There were 1446 stocks in the Arlington Auto Sales soon will move from 3820 Broadway to the former location of Fountain City HuU-Dobbs 4683 Broadway Hull Dobbs sold the building to Arlington Auto Sales when the agency derided to consolidate its dealership into one operation at 835 Central Ave Claude Hall Jr Arlington sales manager said the agency will open a new Fiat and late-model used-car distributorship at the Fountain City location In 30 Claude Hall Sr will be general manager of the firm Bordered cm despair with trades brokers analysts institutional managers and the public $1 fairly-: convinced nothing would develop in die near future reverse die long downward course of stock and bond prices Nevertheless some security analysts struck an optimistic giord in their assessments of the utlook' contending that the iharket was vastly oversold and $ie at least for a technical ftbound I "The only encouraging thing I Can said Robert Allen of fliearson Hammill Co 1 me fact that the recent action is topical of what happens in the last stages of bear No Panic Selling Another positive factor was the absence of panic selling As the string of consecutive down markets extended through 17 sessions this week trading volume held within moderate bounds Sjpme observers however were talking for a day of heavy liqui- the traditional selling before the market Would start to build a base for aby upward move Jrf this activity the stock market declined sharply and approached the six-year lows established last January Many of the speculative stocks particularly those on the American Stock Exchange and in the over-the-counter Market suffered Substantial losses And the bond market also experienced significant price declines with yields returning toward their historic peaks The Great Bear Market that smarted late in 1968 is now nearing its 18th month Over that rtan it is estimated more than SJ50 billion or about 21 per cent has been chipped from the mar-Wt value of stocks listed on the New York Stock Exchange atone "Why all the bearishness in the financial markets lately? Explained Vhe answer basically is that tie- investment world has had vSfry little favorable news to digest recently What has happened has not been conducive to any Millish sentiment but mono of toe latest developments represented any especially new element Corporate profits are sliding $en more than anticipated in some cases the inflationary tjde is running strong: the general economic contraction has been rather moderate interest £tes remain extremely high and the political and international atmosphere is still quite tense in many on economic and social issues at home jid in the Cambodian Vietnam and Middle East situations abroad Except for the moderate relaxation of stringent credit conations and the cut in the prime lending rate of commercial tginks late in the winter there has been a dearth of good news tg buoy the stock and bond mar-tarts The overriding reason for the sparp erosion of stock prices however is the increasingly iScak outlook for corporate profits Another major reason for the current market malaise is the belief that there may be a sig uficant improvement in the economy even before the rate of inflation is brought under control That dims the prospects £iy further extensive rasing credit conditions in the minds many investors Misguided View? That view however may be misguided On the basis of the Business Notes New Industry Gets Site Near Bristol PART OF Goldrush policy of hiring the handicapped is Vincent Woody who has lost a leg But this does not keep him from turning out bowls and candlesticks and other small wooden objects of exceptional quality Fred Matthews of nearby Valley is blind but he can run the antique store and is talented in repairing old watches trying to develop a 12-month indus-try for people like Mr Fox said who FOUR AREA buildings constructed by Harkness Corp have received Awards of Excel lence in the annual contest of Stran-Steel Corp Harkness was Nawi-StfriiMl TrtCHtoa Buree BRISTOL Va April 25-A new $32 million plant which will employ 175 initially and 350 i in tta' ccive four awards The buildings: ncw Bristol-Washington County Nantahala Co Willing To Sell $598 Million Order Signed Walnut Trees Again Sought in Appalachia are Lavidge Associates Bear den Park Circle the projection room and refreshment center for Twin-Aire Drive-in Theater on Clinton Highway a building for Bailey Co in Loudon and a showroom for Price Motors in Morristown Va Industrial Park near here The Camac Corp of Waynesboro Va Saturday announced! work on the new plant will begin within two with completion due by early 1971 The plant to be built on a 27-acre site will include a 100000-square-foot building which will produce a continuous filament nylon OAK RIDGE April 25 (Special) Northern States Power Co Minneapolis has signed an agreement for the A EC to provide $598 million of uranium enrichment services under the toll enrichment program Sapirie manager of ihc Oak Ridge Operations said the contract calls for such services through the year 2000 The uranium will be used in fabrication of fuel elements for the Prairie Island Nu clear Generating Plant near Red Wing Minn due to begin operation in 1972 The A EC has so far signed 32 toll enrichment agreements 10 with US firms and 22 with organizations abroad Toll enrichment which began in 1S69 is an arrangement whereby privately owned uranium is enriched in Government plants Sales Earnings Dip CANTON NC April 25 Plywood-Champion Papers Inc has reported a decline in sales and earnings during the first three months of 1970 First quarter sales were 102 per cent below those the same period of 1969 Earnings decreased 484 per cent Karl Bendetscn chairman and chief executive officer blamed the decreases on continued decline in building activity and the consequent reduction in prices of construction Two Named at Lynch LYNCH Ky April 25 (Spe-! rial)-Archie Moran has been appointed general superinten-i dent and Joe Hollingsworth as-1 sistant general superintendent of US Lynch District (Harlan County) Core vice presidcntHroal operations announced Lynch is a US Steel mining operation WAYNESVILLE April 25 Nantahala Power and Light Co of Franklin is willing to sell its generating facilities along with its distribution system Nantahala is willing to sell the distribution system separately and is also willing to sell its power plants and distribution system together to a re-ponsible President Walker said Rainhow Power Inc a nonprofit corporation reoresenting six southwestern North Carolina counties is exploring the possibility of buying distribution system and operating it as a quasi-public agency It is not known whether Rainbow will be interested in purchasing the generating facilities hare to bring that up and discuss said George Sloan of Jackson County chairman of a steering committee appointed April 2 to explore the possibility of Rainbow buying the distribution system County commissioners in the six counties expressed interest in buying OVES-THE-COUNTIS SECURITIES April 170 KpoivMMl Thoohk Quotation tram the NASD oro rooro-sontntive inter-dtaler price 4 imer-dNWr mark Knoxville Markets change throughout tht day Price at not retail markup include markdown dr comm salon MORRISTOWN April 25 The ex-walnut king of the Appalachians thinks a that so many walnut trees have been cut down Ernest Acker 233 Elk Are 1 i zabethton would like to see a 1 a grown again He has thought of trying to interest foundations in such a move Acker once had walnut plants in Morristown Bristol and Broadway Va That was before he went into military service started cutting down trees after they sell their walnuts he said Gets Many Letters He has many letters from people with whom he rid business and others Morristown Mayor Frank Davis recalled how Acker opened the Acker Black Walnut Corp in Morristown in 1940 business was large and successful and meant much to the low-income group in East Tennessee Kentucky West Virginia and western portion of North Carolina and other states who sold walnuts to the mayor said in a letter to him "The business grossed approximately $500000 a year Acker was called to the service during World War II and was absent from his business over two Shipped 3001 Tons Barnebey Crlumhus Ohio in a letter said that Acker had shipped about 3000 tins of' Computer Uses To Be Exolained TURNER BROS PRODUCE CO Hfod lettuce I24 SO Florida oranaes 12 25 lb white potato 12 71 Lfmont Icartonl 1SJ5-710 Banana 14 40 Cowry 1400 McKENRY PRODUCE CO Fryer IJC WHITE EROS Largo tout 34 medium smail 20-EAST TENN PACKING CO Sew Ne 1 bom Am Aacncy lle in An St C-abcin Appalachian Nat Le Boncn Bmotml Not Lite Cento Wnnutortinng Carolina Corrntan Franklin r4-r Downtowner Volet Iji- Cummin- 5jn the distribution system and re loss column for week and only purchased tailing electricity from TV A ROBIN (J IS MORE THAN OFFICE DECORATION 199 on the plus side of the ledger with 120 unchanged The weekly loss in three of business act! i v' which 'the market averages was the York Times weekly index The Data Processing Management Association of Knoxville has arranged two free lecture sessions and a tour to acquaint "mj mo: cor Am the public with the operation of Cow computers Godnepfi IreflKi i Vw CKP Good ird 24 31 MPdiv' 4fePii0iCewmonuil eirfll LCOV AWKPI Jpw Group Making Area Job Survey 9 tlllfAM LIVESTOCK L-0 The lextures will be Thursday CMCgo Ap is Tnerenmet veVpno-ty and May 7 from 7 to 10 pm at prices the post week et me CrogoVac- Vtwjmrntqt C-m Charts steel electricity paper-tvard and lumber production as well as freight loadings itap-gpars that output this month is tunning slightly below the March level (Moreover activity in the automotive industry this month is eratimiing to run below year-acn levels Sales for the middle IB davs of Apnl were down 105 per cent from a rear Jard A 500 indicator was sharpest since the last week of January while one index The New York Times combined average posted its largest decline since the third week in 1969 as it dropped 1606 points to 43103 dex fell 2865 to 74729: the Stan- Kirns High School The tour of four downtown computer centers will begin at 7 May 14 at a starting point to be' announced at the last lecture session An sessions are free k'o- B-oescotfirg AMocd 1-1 hiVcri IRffi bl- NT Corp 14752 SB tom 7 hood 1 15: 1-1 7W24 Not Sar ig Com ftt M2J 75 II BS-JM JS2S 7S ow no Cmp 2-4 IW-ir ft TUb-H-H: S4 1 Wia bw hf wiwmo L-e IMA24K ifoti 1-1 IT-W Nd anol Lid 72 00 11 SOM ft I SMI 25 baor PH-W I7CB-14SB ft 2: lion cw a-w er-m r7wr iT'a A Asc 32 1: The tour of computers will in-! 3) 33 tj ct vw-uoo elude National Cash Remoter sna mi 2121x25 awl' 4ft IMS aNl tim ibbmMpp tab UR H11 The Tennessee Valley Personnel Association is making an eight-county survey in the Greater Knoxville area to fiiu out from business and industry what jobs are open and what skills are needed to fill them Robert Betts manager of industrial relations at the Oak Ridge Gaseous Plant and member of the association said job questionnaires are being sent out and that particular information will be treated as confidential However over-all results will be made public when the survey is complete Century 100 at the Courthouse sccm-wma eon's tMf ftGG WA ME In IB IWi CHffto UltaiGM A MV IBM 360 at Knoxville Utilities x-is-noc mMdpoaariw I to MMBE toMftVN drfw pm down 2-90 to 8277 and the Stock Exchanee Composite was off 176 to 4553 Trading for the week on the Big Board totaled 49 million £0 And production this week off nearly 12 per cent from Ia-t year was a more encourag tag cast to the recent statistics Bard a Inivac KM at tromc Computer Programming ft e-2 ihk im! Institute in the Valiev- Fidelity black walnut shells to his com-lBank Building and a Honeywell panv walnut shells were Henley St jt carbonized to produce primary Little miss dynamite Robin Jackson new member of the Dateline: Danger! reporting team I with Danny Raven and I Trey just eff the I campus (and are they glad to be rid cf her) and cut to change the world with her own style cf firebrand journalism Can Danny and Troy I take it? Will Robin get into mere trouble than the trouble she makes? One thirg is sure There'll be F'enty of action with Rctincn the scene fti the behavior of prices even1 shares against 50 million the tCnueh inCatinn remairs execs- sively strong But after season-! All but two of the 20 most ac tively traded issues showed siz- Weekly Stocks in the Spotlight charcoal which in turn was activated to produce gas mask Barnebev wrote resign NEW YORK April 25 The 20 most active stocks adjustment the rise i cun- aur-er prices for March showed J- 1 The findinpi are expected slight slowdown and wholes fcDavis tobe usrfuI Chambers of Com-price irerraw particular- 1 "free schools civic and go jv the food area Yw tuvred This fobowed a report of enimttal organizations for two consecutive months: The association! nonprofit it 4 i turnover nonpolitical organization An indication oir be nrl had a I a quantity of patrnal traded on the New York Stock Exchange this week: Cftw INMCT MOTSOI IAWYIK INOOGH PlUtAi CM! Ill SRC -4 24 1 It to a a 1 cmts lagsir sales and tbnr equities have l-vn k-! followed "Such would produce sufficient quantity of gas mask charcoal to fin about 5MM0 gas Acker himself says he was the only man in the Southern Appalachians to devote fu3 time to Mack walnuts Parke Hal Ip ftt oka ft ALTERATIONS pa Bn lent (tTPrita A waned Tel T4 Altai IrflKia Decaf ft Ft a Can Gut C4 htit-Nhvr -v fo! -To (JUMBLE hi Page A 3) IN re 1 tree could easPy have a potential of at Eeat 15 for its he Lewes- a -4 'rowing area" are grind for tof- ho 5 IT voVr-rv Rark of New American Telephone current-' National Ctv BarkofNew iB iw irg prosrir: finished un-f to Nrl Prof 1 Down jnpw! at as 5H0M jThe trrr segregate rt ptrf-ts at rSl dse ft- ft- 1 0 -T- CiTiViVioVli 7 Doft m-vAaseri nhot La i trees are val-jaNe Roe ftcCo-f fteity I try1 Builds Sewer Plant JPN Stor Dead Aw nr 9 it 4 lv 4 't: DATEUNE DANGER! -to pant Aide Named last Kkvs- I jm the comparable pen it a-d a of rcr TP 4 Ml re-t-ow CHATTANOOGA April 25 ftTVoWderi e-wr py CHURCH HILL April Hwd -w kv tve This town's new gewrr part har J-J bmn The II most active sxiu faded ra a Pe Arcncai Stock 1 -ft -4 t- acerrdirg to the lira huddrg rairterarce at VoJgrteer Army' tie structure Tomorrow in The News-Sentinel £zrge )r Seme es partic tree seed trn were stricture w-J ready thee dcfmitcty be pwrie Page C-16.