Southern Illinoisan from Carbondale, Illinois • Page 15

Southern Illinoisan, Tuesday, October 8, 1985 TO Brokers' best betsC16 Page 15 65 We cannot afford to continue increasing (business costs) if we really want new jobs in Illinois. State Chamber President Lester Brann 55 1 ninie tore tadl tar DagoDi faiflrD wmm saw good acceptance of what we were doing during back-to-school. 'The general economy is not that much different it's flat but it's up to retailers to make the most of it," Stotlz added. "If you have what people want they'll buy." Robert McCosh of the Wal-Mart store in Benton said he expects a "very good" fourth quarter, and said this year in general has been "somewhat better" than the last couple of years. He attributes that to a greater public concern for finding value.

Bill Rendleman of Fager Builders Inc. of Murphysboro predicted a slowdown for the fourth quarter of 1935, and said that slowdown has already started. "The first three quarters were great," Rendleman said. "Lower in simistic about the outlook for at least the next year and a half. Some economic analysts are predicting a recession in 1986, which "doesn't auger well for the coal industry," Pensoneau said.

Southern Illinois and the Midwest in general never really came out of the last slump, he said. Greg Stoltz, general manager of J.C. Penney's in Carbondale, was more optimistic about the store's fourth quarter, because he said the product line this year has a wider price and quality range. "This year we were able to taylor more to the general community," Stotlz said. "Last year we appealed to higher taste levels, but now we have more of the 'better', We were a little too top of the line last year.

The first three quarters haven't been that good, but we terest rates always help, but I think there was just a pent-up need that hadn't been used in the last two or three years. But the way it's tending now we're in for quite a slowdown. The jobs are not coming in like they were. We have decent work to cover us through October and half of November, but the inquiries are slowing quicker than usual." Don Fisher of Marion Ford-Mercury said he expects the fourth quarter of 1985 to be down a little over the third quarter, but "that's simply because the third quarter was so good." Fisher said Marion Ford-Mercury sold more cars in September than in any other month during the past 30 years. He attributed third quarter sales to the 7.7 percent manufacturer financing.

He said he's hoping that interest in Ford's new mini-van, the Aerostar, and a new car called the Taurus will "encourage people to come if there are no special manufacturer financing programs. Dave Coracy of Travel of Carbondale and Marion said the travel industry's fourth quarter is usually "one of our best," but early purchase requirements on economy air fares may have shifted some fourth quarter business to earlier in the year. Business was abnormally brisk in May, June and July, and the economy fare purchase restrictions contributed to that, Coracy said. "I have seen a lot of stuff for Christmas fall in the last two months, that normally would fall in the fourth quarter," Coracy said. hoped this year.

A mild winter and a cooler-than-normal summer meant the utilities did not have a great need for that coal, while the record coal production of 1984 continued into the first quarter of 1985, Pensoneau said. "Now, as predicted, things have slowed down," Pensoneau said. "I don't look for a great amount of activity the rest of this year. The fourth quarter is going to be pretty sluggish as far as the coal industry goes. We might be lucky to hit 60 million tons this year in Illinois coal production, compared to last year's production of 65,289,191 tons, the second biggests production year since World War II." Pensoneau said the major layoffs by coal producers show the sluggish coal industry cycle has already started, and he added that he's pes General Radiator workers take pay cut to buy time Tln ROTORS COWwiffV MOUNT VERNON (AP) Nearly 250 General Radiator employees have agreed to take $3-an-hour pay cuts in exchange for time to develop a plan to buy the Chromalloy American Corp.

subsidiary, a union official said Monday. The workers now have until the end of the month to buy the operation. If they can't manage the purchase, the plant will be sold to a Canadian competitor and closed, said Dave Garner, regional representative for the Machinists union. Members of Machinists Local 1417 overwhelmingly approved the pay cuts and changes in contract lan guage Sunday after Chromalloy sought concessions to keep the plant open while it considered an employee stock ownership plan, Garner said. The parent company, based at Clayton, announced last month that it had signed a letter of intent to sell General Radiator to Long Manufacturing Ltd.

of Oakville, Ontario, for an undisclosed price. However, Garner said company officials agreed Wednesday at a meeting with the union and Illinois Department of Commerce and Community Affairs to give workers 30 days in which to incorporate, raise money and present their own buyout plan. He made no mention of a purchase price, but said workers would try to sell $250,000 worth of stock and, pending the outcome of a feasibility study, seek more money from the Illinois Developmental Finance Authority. "We'll hit them for $300,000," Garner said. The Commerce Department suggested further funding might be available through the Community Development Action Program, Small Business Revolving Loan Fund and the Urban Development Action Grant program, Garner said.

AP photo More jobs: Chrysler Corp. Chairman Lee A. lacocca (left) and Mitsubishi Motors Corp. President Toyoo Tate shake hands after announcing Bloomington-Normal is the site of the new $500 million auto assembly plant. All You Need To Know rfk About Buying A Business Telephone i i i Hi, i System PAfuaoom Systems I 100 S.

13th A Herrin, II 62948 fore Chrysler-Mitsubishi officials. But those incentives that have been made public include a job tax credit for hiring displaced workers, an exemption from state and local sales taxes on any building materials purchased in McLean County and free land valued at $10 million. Such efforts are not without their critics. Some economists contend that if the state cuts taxes and opens its pocketbook to attract new businesses, the resulting financial burden will have to be borne by companies already located here. "You may well wind up losing some business to bring in other businesses," said University of Illinois economist A.

James Heins. Others say Illinois is hopelessly hamstrung by geography as the nation's population shifts to the Sun Belt. That shift played a key role in General Motors' decision to build the Saturn plant in Tennessee. "We have become a victim of not being in the right place," said Louis Masotti, professor of urban affairs at Northwestern University. criticism was couched in the rhetoric of jobs.

"If we want more jobs, new jobs in Illinois, we cannot continue to do one thing and say the opposite," he said. "We cannot afford to continue increasing (business costs) if we really want new jobs in Illinois." Some of Illinois' most ambitious economic development ideas are long-term plans, such as Thompson's $2.3 billion "Build Illinois" public works program and the education reform measures. But when it comes to luring businesses planning to set up shop next week or next month, the bait is dollars and cents. When Illinois was bidding for Saturn, officials offered breaks on property and sales taxes, preparation of highway and rail access to the plant site, $200 million worth of assistance in employee training and help for Saturn suppliers who located in the state. The state even offered to recruit and screen plant workers, and help them obtain home mortgages.

Officials have been tight-lipped about some of the lures dangled be LARGE TO SMALL GIVE US A CALL: By Ann Schottman Knol Of The Southern Illinoisan Southern Illinois business officials have mixed predictions for the fourth quarter of 1985. The coal industry is expected to remain sluggish; J.C. Penney's of Carbondale and Wal-Mart of Benton predict a good fourth quarter; the construction industry may slow again; new products and any new manufacturer incentives could keep auto sales strong; and early ticket purchase requirements for discount air fares could mean the travel industry's traditional fourth quarter bookings were made earlier this year. Taylor Pensoneau of the Illinois Coal Association said the coal stockpiles the industry had accumulated in case miners went on strike have not been depleted as rapidly as Jobs still Illinois' top priority SPRINGFIELD (AP) Whether the issue is roads, taxes, utility costs or even schools, the bottom line in Illinois these days is the same: jobs. "There is no more important task before us than devising a business climate that will protect and increase employment," Gov.

James R. Thompson said in his State of the State address last February. Illinois' unsuccessful bid to land General Motors' Saturn auto plant and its pursuit of the new Chrysler-Mitsubishi auto assembly plant have been the most visible signs of the state's efforts to pull abreast of the nation in its recovery from the recession. Those economic development efforts have commanded center stage in the General Assembly and in much of the state bureaucracy, producing everything from tax breaks and enterprise zones to a plan for Japanese-style schools to teach the children of visiting executives. With memories of double-digit unemployment still fresh in voters' minds, the word "jobs" has become an almost indispensable part of Illinois' political rhetoric.

While the nation's civilian unemployment rate stood at 7.1 percent in September, unemployment in Illinois was 9.4 percent. Jobs were a key point in Thompson's sales pitch for school reform legislation. One of former Sen. Adlai Stevenson's most stinging swipes at Thompson was the charge that the Republican governor had borrowed many of his most prized job-creating programs from Stevenson's 1982 gubernatorial platform. And when Lester Brann, president of the Illinois State Chamber of Commerce, blasted Thompson for signing a bill that Brann says will boost businesses' utility bills, his Telecom is back on line INDEPENDENCE, Mo.

(AP) A discount long-distance telephone company that halted service last spring has resumed operations in Missouri and Illinois, company officials said Monday. The resumption of service by Telecom Management International Inc. came as part of an agreement Bankruptcy Court. The agreement calls for the company to repay its debts and avoid liquidation. "We're convinced that it can be a viable long-distance company," said Chet Zoeller, vice president of Charter Communications, a Louisville, firm appointed to manage the Independence company.

Charter was given a three-year-management contract under the court agreement with Telecom Management's largest creditor, the Bank of Kansas City, which was owed more than $4.5 million. Service was restored during the last two weeks to customers in Missouri and Illinois, two of the five states previously served by Telecom Management, Zoeller said. He said he expected service to be restored within two months in Oklahoma and Kansas, but company officials have not decided whether to begin operations again in Iowa. Service for the company's 35,000 customers in about 30 cities was halted in May and June after Telecom Management hit shaky financial ground. Zoeller said he hoped most of the firm's former customers would return.

He said the Telecom planned to attract new customers chiefly among small businesses and in smaller cities where larger telephone companies are not marketing actively. Telecom officials will try to save customers money by not joining the equal-access dialing system that costs extra, Zoeller said. Instead, it will offer automatic dialers to dial access codes, he said. 618-988-1879 Authorized Dealer MFC NEC Telephones, Inc. andA "Contact Us For A Free Telephone System Evaluation Travel Service, Ltd FIFTH ANNUAL CRUISE NIGHT Featuring AMERICAN HAWAII CRUISES TO TAHITI RAMADA INN.

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