The Knoxville News-Sentinel from Knoxville, Tennessee • 32

C6 Wednesday July 6 1988 The Knoxville News-Sentinel Business Dairy earnings could decline 70 by cash income of dairy producers of between 50 percent and 70 percent For example she said in a telephone interview if prices of dairy concentrates rise 30 percent forage costs go up 10 percent and the market prices of culled cows sent to slaughter decline by 15 percent net cash income could be around $133 per each 100 pounds of milk sold Dondero said the figures were projected for a 12-month period July through June 1989 Income includes proceeds from the sale of animals culled from dairy herds in addition to milk marketed Before the drought sent feed costs higher the Agriculture Department reported its price index for feed grains and hay rose 20 percent last month the federation had expected dairy net cash income to average $251 per hundred weight of milk sold this year Still another factor will be government actions to reduce milk price supports again next year Dondero said If feed costs keep rising market prices of culled cows keep dropping and the current support of $1060 per hundredweight is reduced further on Jan 1 1969 by 50 cents net cash income of producers could fall to as low as 99 cents per hundredweight Dondero said Under 1985 farm law the USDA is required to reduce milk price supports when government purchases are expected to rise above 5 billion pounds of milk equivalent during the year Milk price supports have undergone a succession of cuts since rising to a peak of $1310 per hundredweight in 1983 The reductions were undertaken to help discourage surplus production and to whit tle down federal costs As it looks now to USDA economists dairy purchases will exceed the 5 billion pounds set by law as the trigger for further cuts in the support Some dairy state members of Congress have urged Agriculture Secretary Richard Lyng to forestall the next reduction because of the hardship imposed by the drought Lyng however has said the law gives him no choice Rep Sherwood Boehlert R-NY said the drought and rising feed costs have a reassessment of the regarding another 50-cent cut in milk supports next year Boehlert also said that Rep Charles Stenholm D-Texas chairman of the House Agriculture subcommittee on dairy livestock and poultry had predicted 99 percent that the Jan 1 By Associated Press WASHINGTON If drought keeps driving feed costs up and cow prices down dairy farmers may see earnings reduced by as much as 70 percent by 1989 according to a study by the National Milk Producers Federation Jim Barr chief executive officer of the federation said the rising costs of grain concentrates are at the heart of the grim outlook current milk and feed prices a 15 percent increase in feed costs equates to an effective reduction to the farmer of 50 cents for each 100 pounds of milk he said in a report sent to members this week Spokeswoman Doni Dondero said the analysts computed that there is a potential for a drop in the net 1989 reduction will not take place Joined by several colleagues including Rep Jim Jeffords R-Vt Boehlert introduced a bill last week giving the secretary of agriculture the authority to halt the Jan 1 cut in milk supports The bill also would give USDA the authority to increase supports by 50 cents per hundredweight for each 15 percent increase in feed costs Meanwhile dairy farmers began stepping up production again this year at least before the drought became rampant and forced feed costs up Based on the earlier indications USDA economist figured 1988 milk output would rise 2 percent to 3 percent from last 1425 billion pounds Milk output declined last year from the 1986 record level of 1434 billion pounds Sale of tall Oak Ridge complex considered Book firm charges plotting Discount business hurt lawsuit says company is the general partner in the plaza which is on the Oak Ridge Turnpike Because the 10-story building has 100 percent occupancy he said the investors may decide to keep it The tenants for Jackson Plaza a landmark for directions in Oak Ridge include Bechtel North American Power Inc Science Applications International Corp and Polaris Travel The building has about 158000 square feet and was sold about six years ago for approximately $115 million News-Sentinel Oak Ridge bureau OAK RIDGE The general partner in Jackson Plaza Oak tallest office complex has met with potential buyers and is considering selling the 10-year-old building Al DiBenedetto senior vice president for Bank Atlantic Savings and Loan Holding Co said Tuesday timing is to dispose of Jackson Plaza However he said the plaza has several investors and any sale would be up to all the partners The Coral Gables Fla holding By AMY TODD GEISEL News-Sentinel staff writer Briefs Al FuchsNews-Sentlnel staff Dan Mendenhall in his Knoxville book warehouse Retail bookseller associations their members and publishers have conspired to drive volume discount booksellers such as Giant Book Warehouses out of business a lawsuit filed Tuesday charges Dan Mendenhall owner of Mendenhall Enterprises Inc which in 1987 operated about 75 Giant Book Warehouses filed the federal court lawsuit against the American Booksellers Association Southeast Booksellers Association Random House and the officers The lawsuit seeks at least $186 million from the associations their officers and the publisher Random House Volume discounters sell damaged and unsold books called and in the trade that retailers return to publishers at prices usually 50 to 90 percent below the suggested retail price Mendenhall claims that from 1985 to 1987 that the associations and their members coerced publishers by threatening to boycott ing to the complaint Mendenhall of West Knoxville says his company once was one of the fastest growing in the nation The Giant Book Warehouse chain grew from 10 stores to about 75 in 1987 while sales grew from $3 million to $10 million he says in the lawsuit Now as a of illegal and anti-competitive conduct Mendenhall has been forced to close some Giant Book Warehouses them to prevent the selling of books to volume discounters As a result of the threatened boycott many of the other publishers discountinued sales of books to Mendenhall the lawsuit alleges One publisher still sells to Mendenhall but his supply is insufficient to meet the volume discount demand the lawsuit says Random House canceled a contract to supply 10 million books annually to Mendenhall accord- very survival is now the lawsuit claims The Knoxville warehouses on Casey Drive and Kingston Pike are currently advertising going -out-of-business sales Bemie Rath executive director of the American Bookseller Association said he could not comment in detail because he had not seen lawsuit He said however pretty convinced that we broken any Stocks rise to post-dive high Trader who exposed scandal freed sent to halfway house NEW YORK Dennis Levine the former investment banker whose squealings led to Wall biggest insider-trading scandal was freed from prison Tuesday and transferred to a halfway work-furlough program Levine was a mergers specialist at the investment firm of Drexel Burnham Lambert Inc He was arrested in May 1986 after the Securities and Exchange Commission accused him of making $126 million from illegal trading on inside information Park West appoints chief operating officer Tyree Wilkinson has been appointed to the new position of chief operating officer at HCA Park West Medical Centers Wilkinson was regional director of a Blue CrossBlue Shield health maintenance organization plan before joining Park West Knox firm buys radio station Radio station WBZW-AM has been bought by Southern Diversified Industries Inc a Knoxville company The new call letters are WQBB which stand for Quality Big Band" The station broadcasts at 1040 AM on the radio dial Jim Staley is the new general manager Lynn Davis will continue as station manager New Knox bank names vice president First National Bank of Knoxville on Tuesday announced that former Knoxvillian Paul Boyd has been named vice president and chief financialoperations officer of the bank The bank expects to open for business in August investing show set for Channel 20 a new series on investing begins this week on Channel 20 Community Television of Knoxville The show whose host is Ken Haney an investment broker for Hilliard Lyons Inc will be shown at 7:30 pm on Thursdays and 9 pm on Fridays Names in the news Deborah Novak marketing representative for Whittle Communications has accepted a position as account executive with the Henderson Agency Inc an Atlanta-based advertising firm Daniel Sherwood division manager for mid-Atlantic sales division in Marlton NJ has been given the additional title and duties of vice president of national accounts for buying groups and power retailers for the Magnavox brand of Philips Consumer Electronics Co QualPro Inc of Knoxville announces that Wendy Lloyd Hudson is the newly appointed director of marketing and public relations Patsy Stair former manager of customer relations has been named director of corporate development and Peggy Wadhams joins the staff as customer relations assistant Oil prices stable traders ignore Iranian threats By Associated Press NEW YORK Oil traders ignored outrage Tuesday over the US destruction of an Iranian jetliner and said the aftermath of the Persian Gulf incident probably would not affect petroleum shipping or inflate prices On the New York Mercantile Exchange a sensitive barometer of world prices the contract for August delivery of West Texas Intermediate crude oil rose 15 cents a barrel to $1509 in light trading Traders ascribed the rise to short-term speculative buying ahead of the American Petroleum weekly report on US oil stocks but emphasized that the market remained depressed because of oversupply and the outlook for prices was down is small and supply is great and as we see it right now no going to listen to what the Iranians said Thomas McKieman head of McKieman Co an energy-futures trading concern in New York Others said they were more concerned about the waning influence of the Organization of Petroleum Exporting Countries the 13-nation cartel that once was able to dictate prices through its ability to constrict supplies from a sharply higher oil sector Charles Jensen chief technical analyst at MKI Securities Corp said stocks are to gather a following because people are realizing not going down when bonds are off (investors) have to jump aboard despite the action in the bond With the stock market closed Monday for the Independence Day holiday the Tuesday session marked the first opportunity traders had to react to the shooting down of an Iranian passenger plane Analysts said the incident was largely overlooked appears that the market is suggesting that this event as tragic as it is will Johnson said Fundamentally analysts say oil prices remain on the decline As measured by Wilshire index of more than 5000 actively traded stocks the market gained $31081 billion or 114 percent in value The NYSE index was up 189 at 15557 Standard index of 400 industrials rose 477 to 31852 and 500-stock composite index closed at 27581 ud 403 At the American Stock Exchange the market value index closed up 059 at 30959 The NASDAQ composite index for the over-the-counter market closed at 39611 up 142 By Associated Press NEW YORK The stock market climbed Tuesday to its highest levels since the October plunge in moderate post-holiday trading driven by futures-related buying The Dow Jones average of 30 industrials gained 2703 points to finish at 215861 its highest post-dive level since it closed at 215220 on June 22 Advancing issues outnumbered declines by nearly 2 to 1 in nationwide trading of New York Stock Exchange-listed stocks with 939 issues up 520 down and 447 unchanged Volume on the floor of the NYSE totaled 17179 million shares down from 23833 million in the previous session Nationwide consolidated volume in NYSE-listed issues including trading at regional exchanges and on the over-the-counter market totaled 19891 million shares A weaker dollar lower bond prices and the US downing of an Iranian passenger jet over the weekend had convinced many traders that the stage was set for a selloff While the market did open moderately lower the Dow average moved into plus territory around midday and steadily climbed for the rest of the session The Dow average also got a solid boost Nine Farm Credit System banks to merge By Associated Press eight districts voted to merge with the central bank in Denver and those in four other districts opposed the plan NEW YORK IAP) NASDAQ National Market trades lor Tuesday Close Clto 11 '4 1- 13 25 '4- 42 1 '4 914 10- 4 3 3-16 12 19 8 17- 4114 14 17 '4 19 20 4 24 12 6 16 11 18 13 12 32 11 8 14 CmpCr s40 CCTC CptAut CmpPr Cncptl Connght CnPap 1 CtIMed Contln Convgt Convex CooprD Coors 50 Copytle Cordis CoreSt 150 Costco CousP 60 CrckBrl 10 CrwfCo 64 Crestor 112 CrstFdl Crftlcre Cronus CrosTr CwnBk Culum 36 CumbFd 24e Cyprus lOe CypSem Cytogn A Credit System a $50 billion network of borrower-owned cooperatives that taken together represent the largest farm lender The Farm Credit System which was established in 1933 has 13 banks for cooperatives that each offer a complete line of financing and related services to agricultural cooperatives rural utility systems and other borrowers Under bailout legislation approved by Congress last December banks for cooperatives in WASHINGTON Officials of the Farm Credit System announced Tuesday a merger that will combine nine of the banks for cooperatives into one lending institution vote is a landmark in agricultural said Edward Breihan of Lubbock Texas chairman of a committee on banks for cooperatives structure The merger decision was announced by the Farm Credit Council an arm of the Farm Bd ADC AEL ASK AST Acadln AcmeSt Actmed Acusn AdacLb 16 33 '6 16 19 14- 16 25 '4 16 21 16 27 4 17 '4 '4 516 16 17 4 13 14 15 14 47 '4 17 16 25 34 36 '6 16 6 42 4 15 14 21 25 14 4 10- 29 6 24 16 AMS ANtlns 140 ASvWA ASoft ATvCm AmFtBk Amrltr 1 Amgen AmskBk 64 Anloglc AnchSv AndvBc 72 Andrew ApogEn 16 ApoloC AppleC ABIoscI ApIdBlo ApIdMt ApIdPw 20e Archive ArooGp Arnch Armor Ashton AtlAm AtlSeAr Autylk Avntek Avatar Avndle 21e 14 District banks for cooperatives voting to merge with Denver were Baltimore Columbia SC Louisville Ky St Louis Omaha Neb Wichita Kan the Texas Bank for Cooperatives and Sacramento Calif Those opposed were Springfield Mass Jackson Miss St Paul Minn and Spokane Wash 29 35 32 17 21 11 4 1514 14 11 14 14 13 14 1614 23 32 4 7 9 4 11 14 14 1516 25 '4 18 1814 13 51 34 2 26 28 35 29 2 5-16 BIckD 58b BIckE BoatBn 2 BobEvn 24 Bohema 20b Bon IP BostBe 60 BstnFC 72 Brand 06 Brkwt g05e Brnkmn Brunos s10 Budget Buffet BulldT BurnpS BurrBr ButlrJ 16 ButlrMf 132 APTBLDGOWNERS ChkPt Chemfx Cheroke Cheshre 72o ChfAut ChldWId Chilis ChlpsTc Chiron Chronr ChrDwt 22 ClnnFn 176 Clntas 13 Cipher ClrdEx CtzSoCo 112 CtiFG 76 CtiU A CftU sl34 CftyFed 04 CtyLTr 225c CtyNC 64b CltyBcp 112 Clarcor 1 CleanH Cloth CoOpBk 50 CoastF vICoatSI CobeLb CocaBtl 88 Cognos Cohernt ColFdl 20 CoInGp 40 ClnGas 168 ColoNt Comalr 24e Comcst s12 Cmcs sp s12 Cmerlc si 80 CmBsh 120 CmClr 140 CmcFdl CmITek 56 16 16 '6 9- 1516- 16 '4 1 1-16 1934- '4 14 16 28 3 3-16 5-16 5 16 40 '6- '6 15 14 17 4'6 414- 16 1316 17 14 14 15 '6 11 184- 29 '6 '6 2016 11 29-94 716 5 1216 914 14 14 17 11 14 1516 '4 20 16 1616 5 18 Tennessee livestock AdlaSv AdobeS AdMkSv AdvPoiy AdvTel Advanta AdvoSv AfIBsh AgncyR Apnlco 020 Air Wise AloFdl S40 Albnyln 19e AlcoHIt 06e Aldus AlexBr 16 AlexBI 80 Alleco AlegW 30 Alllant Allwast Altos Amcast 44 AFTxEx 170 AWAIrl ABnkr 50 Am Carr AmCItv reet 66 AGre DBA DEP DNA PI DBncSSe DST 16 Dahlbrg DaisySy DalSem DartGp 13 Dta lO DtSwtch Datscp Dauphn 128 DebShp 20 Dekalb 56e Delchm 28 DepGty 144 Dest DlagPr 32 Dlasonc 2 11-321-32 Diceon DlgMIc 17 23 11 4 30 8 16 10 10 8 73 -1 '4 7- 46 30 Ifi' 32' 3' 42Vi A FLAT FEE to refinance Call Laurie Silver 800-243-9990 USFCAPTaI GROUP CCX Nt CEM CFISt PC CPI 20 CTEC 92 CUC Int CVN CXR CbrySc 165e Cadence 7 Cadrrfx Calgene Calgon 20 CalBlo ColMIc Cambrx CamBS Cononl 32e Canonle CrdnlD 08b Carlngtn '4 17 7 13'4 14 19 14 34 -25 5 67 9 50 '4 6 18 13 46 1 '4 26 17 15 35 424 12- 13 1334 24 33 '6 2 55 8 12 7 56 -1 22 24 '4 9 '4 68 BEI 24e BMA 120 BakrFn 1 BokerJ 06 BldLyB 20 Baiord BnPnc Sl40 BnPop 132 BcpHw 176 Banctec BkSou 44b Bnkest 48 Bklowa Bankvt 24 BkWorc 80 Banto 44 Barrls Bulls Yg 1-2 1100-1700 lbs 5200-5800 Feeder classes steers: medium and large frame 1 200-300 lbs 10500-11500 300-400 ibs 9300-10200: 400-500 Ibs 8550-9600 Medium frame 2 300-400 Ibs 8650-9300 Heifers medium and large frame 1 300-400 Ibs 7500-8500 400-500 Ibs 7000-7500 500-600 Ibs 6400-7000 Medium frame 2 300-400 Ibs 7000-7500 400-500 Ibs 6300-7000 Replacement cows Lot medium and large frame 7-6 yrs old 1000-1200 Ibs 5-6 months bred 50000 a head Small and medium frame 8 yrs and older 850-1050 Ibs 5-7 months bred 40500-50000 Cow and calf pairs Medium frame 6-9 yrs old 800-1050 Ibs 46500-66500 a pair NASHVILLE (AP) Here are the Tennessee livestock auctions for Monday July 4 at Lexington Chattanooga and Cross Plains: Cattle and calves Recipts 400 compared with the same sales one week earlier prices on slaughter cows steady except Lexington 600 higher bulls YOO-200 higher feeder steers and heifers no! fully established but higher undertone noted Slaughter cows 33 percent of supply boils 2 percent feeders under 600 lbs 4 percent over 600 lbs 6 percent feeder and -or replacement cows 17 percent Slaughter classes Cows breaking utility 2-3 4100-4625 cutler and boning utility 1-2 43 00-4650 can ner and low cutter 3500-4300 few 4575 AmHfth AHSId AIM 84249e Ibur National Wholesale Commercial Funding Source Continued on page C7 I.