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6-A THE BAYTOWIS SUN Thursday, December 2, 1982 Fractionation Plant To Begin Operations Soon THIS NEW NATURAL gas liquids fractionation plant, capable of fractionating up to 80,000 barrels per day of ethane, propane and other natural gas liquids, began operations this week. (Sun staff photo by Charles Gallatin) Data Bases, Programs By CHARLES GALLATIN A new natural gas liquids fractionation facility, capable of fractionating up to 80,000 barrels per day of ethane, propane and other natural gas liquids, will begin operations this week at the Gulf Coast Fractionators Inc. plant near Mont Belvieu, according to • Daryl Southard, general manager of operations for Cities Service Co. Gulf Coast Fractionators is a joint venture of Cities Service Co. and Mitchell Energy and Development Corp. Cities Service Co. will operate the facility. Raw liquid products for the plant, located west of Mont Belvieu on FM 1942, will come from west Texas, the Austin chalk area and as far away as the Rocky Mountain area, said Southard. The natural gas liquids fractionated by the plant will go to markets in the petrochemical industry, including refineries both local and in Lake Charles, he said. Engineering and construction on the new plant is by John Brown Process Engineering and Construction, a British firm. Southard said that approximately 35 workers will operate the plant once it is on line and fully functional. S1NESS Working For A Cause 'Superleaders' Promote Employee Motivation Publishers Develop New Services By BABSON'S REPORTS INC. WELLESLEY HILLS, Mass. (Sp) — Publishers of books are developing and marketing new types of products and services such as providing information through computer data bases and instructional programming (software) for distribution via computer terminals. Although this has only begun to materialize in the last few years, book publishing firms are beefing up their capabilities in this newest technology in order to counter the growing intrusion of computer system manufacturers, software developers, and diversified newspaper publishers into their business sector. For the first time in over three decades, unit sales of paperbacks for the mass market and general trade books have declined because of buyer resistance to rising prices. Also, in view of the peaking of full-time student enrollments last year, college textbook sales are stagnant, as are sales to elementary and secondary schools. Thus, the book publishers are incorporating their vast reservoir of information into electronic data bases as a vehicle for more sales. In the opinion of the research department of Babson's Reports the delivery of computer-based information into offices, schools, and the home represents a multibillion-dollar market. Long-term growth for the book publishing companies should revolve around their ability to respond to such new media channels. 7he future proliferation of personal computers into every avenue of our society presents a unique opportunity for book publishers. Electronic data bases with online interactive retrieval systems can provide instantaneous access to all types of information. A few companies, currently, are specializing in providing business and government information on data basis. While this market is expanding, the real growth is expected to come from the consumer sector. Book publishers with their successful, well-established hard copy instructional material are in an exceptionally good position to benefit from the burgeoning demand for easy-to-obtain knowledge. The number of persons returning to school in search of new job skills is constantly increasing, especially under slower economic conditions. The rapid formation of two-year community colleges, vocational and technical schools, and continuing adult education programs are additional outlets for computerized data bases. Thus, those publishers with aggressive marketing staffs are expected to orient their strategies toward getting a good share of the information market. Over the next five years, higher birth rates should begin to have an impact on elementary school enrollments. Later, the secondary school population will also rise. So, book publishers can look for a decade of uninterrupted growth in their basic markets. Production costs for the years just ahead should remain more stable. Overall, receipts of U.S. book publishers are projected to grow at an average annual rate of 3.28 percent in constant dollars through the decade. Foreign demand for U.S. books is currently strong and should remain so through the 1980s. With the easing of inflation in the years ahead, the publishers should hold their costs and selling prices on a steadier course, spurring sales of paperbacks and trade books. In reflection of the rapid in- crease in the market prices of the pure publishing companies, the research department of Babson's Reports is not currently recommending th-cii stocks. However, we are advising purchase of Raytheon Company stock. This is graded as speculative and is now trading near 44 on the New York Stock Exchange. Raytheon is a diversified aerospace company with extensive interests in consumer businesses. Included among these are both computer terminals and book publishing (D.C. Heath). Market Studies Show Home Costs Are Down By JOHN CUNNIFF AP Business Analyst NEW YORK (AP) - With housing markets likely to revive by spring, assuming no additional problems arise from interest rates, potential buyers are asking: Have housing prices really fallen into the bargain basement area? That contention has been spread widely by authors, some stock analysts, and certain members of the housing industry. Is it true? Over the past year nominal prices of existing homes rose about 1.5 percent, according to the National Association of Realtors. But, says Realtor economist Kenneth Kerin, that means prices actually declined, probably by 6 percent to 8 percent, because of inflation and the costs of below-market seller financing. By some estimates, the need for sellers to include financing in the sale package reduced actual prices by as much as 25 percent. The amount financed varied greatly, but many sellers in effect lent $10,000 or $20,000 to buyers at rates several points below existing interest rates. Apartment house owners who converted to cooperatives and condominiums often "bought dovvir" rates, frequently by three to five percentage points for three years, the assumption being that economic conditions would improve by then. On a $40,000, 30- year mortgage such a buy down amounts to at least $3,468. In the past year the median price of new, single-family homes remained almost stationary at $72,000, according to the National Association of Home Builders. But, says Robert Sheehan, director of economic research, as the economy recovers prices should slightly exceed the inflation rate. The lack of price appreciation in the past, however, doesn't by itself mean that current prices are relatively low. The product itself has changed; as with so many other items, the size if not the quality has shrunk. A Realtor survey of prices showed the average for existing homes sold this fall was $147,000 in San Francisco and only $54,600 in Detroit. Washington, D.C. averaged $104,200, but 130 miles away in Philadelphia the average was £65,100. If anything, the evidence suggests once again that real estate is not just a local rather than a national market, but that it is a market of houses separately and independently priced. Averages are a guide. But they do not set the price of houses. By THE ASSOCIATED PRESS LOS ANGELES (AP) — Why do people work hard for one boss and loaf under another? Dr. Warren Bennis, professor of management at the School of Business Administration at the University of Southern California, says it depends on whether the boss can imbue his office with the energy of a mission. "People would rather dedicate their lives to a cause they believe in than lead lives of pampered idleness," he says. "The "leader of a cult, a traditional religion, an army or a dynamic corporation can tap this desire." Bennis, a management expert, set out four years ago to determine what makes a "super-leader." To do so, he interviewed 90 of them, including chief executives of some of the nation's biggest corporations, university presidents, public officials, newspaper publishers and the coaches of consistently winning athletic teams. On average, the "superleaders" were 56-year-oid males who graduated from college and made about $300,000 a year. Most of them, he also found, were enthusiastically married to their first wife. Statistics aside, Bennis identified five traits his superleaders had in common: —Vision: the capacity to create a compelling picture of the desired state of affairs that inspires people to perform. —Communication: the ability to portray the vision clearly and in a way that enlists the support of their constituencies. —Persistence: the ability to stay on course regardless of the obstacles encountered. —Empowerment: the ability to create a structure that harnesses the energies of others to achieve the desired result. —Organizational ability: the capacity to monitor the activities of the group, learn from the mistakes and use the resulting knowledge to improve the per^ formance of the organization. Bennis found that his superleaders did not pay much attention to popular theories on management and motivation. ; "When talking to these people, I didn't hear about humanizing the workplace, the Japanese form of • management, better working conditions or innovative compensa-' tion schemes,'' he says. "One of the most dynamic leaders I discovered was working in an eight-by-ten cinderblock of* fice," he says. "But that office was the heart of a vortex of excitement and involvement he had created. His employees had been working 80 hours a week for 18 months because they knew they were on the brink of developing a brand-new computer that would make the company famous." Woolco To Close All 336 Discount Stores By 1983 Psychologically Driven Market Creates Forecasting Difficulties By JOHN CUNNIFF AP Business Analyst NEW YORK (AP) — The fellows who forecast by the numbers, including some White House economists, have a terrible time figuring out what the ordinary American is likely to do over the next few months. One well-know forecaster, Albert Sindlinger of Media, Pa., explains to his clients ,that his projections are always based on economic fundamentals, and that forecasts which aren't are merely "guesses, hopes or wishes." But precisely because they are based on fundamentals, Sindlinger has joined some others in missing some short-term developments, or, as some of the fraternity like to call them, aberrations. "Fundamentally based forecasts sometimes may be off on timing and magnitude," Sindi- inger told clients after interest rates failed to go higher, as forecast. Those times, he said, are when "psychology drives markets." "Sindlinger cannot forecast psychological moves because there is nothing to substantiate them," he explained. "Psychologically centered ] movements are volatile and can reverse themselves for no basic reason." Such "bubbles," he advises, "later appear as short-run aberrations. The fundamentals always outlast and win out." And so, he forecasts, interest rates will rise to a "peakout" in February or March. By then, he projects, conventional mortgages will be back up to 16.5 percent from their current levels of about 14.25, and the prime rate, which has just been cut to 11.5 percent, will rebound to 16.8 percent by Feb. 23,1983. The psychological factor repeatedly has confounded those forecasters who say the consumer "should be" out there spending up a storm. Why not, they say, when credit obligations have been reduced and savings have been rebuilt. Why not? Because of psychological factors. Insecurity, for instance. Hardly a family exists without a relative or neighbor out of work. Hardly a person can be found who has forgotten the damage wrought earlier by overspending. A flotilla of forecasters has been sunk by following the numbers instead of the psychology, and that probably includes many of those who advise the White House. Note if you wiil the year-long delay in the recovery's arrival. It has been true too in the stock market, in disdain of pronouncements by some of the most highly paid gentlemen of the forecasting fraternity, some of whom have then sworn that the market rather than they were wong. Everybody deserves a chance to make it on their own. National Urban League 500 Kast 62nd Struct New York. N.Y. 10021 NEW YORK, (Sp) — The Woolco division of F.W. Woolworth Co., which has a store in Baytown, reported the Beverly Hills- based firm of Sam Nassi Co. has been retained as a consultant for the liquidation of inventories totaling $1 billion in all of its 336 U.S. Woolco discount stores located in 40 states. The going-out-of business sale, believed to be the largest in U.S. retail history, is expected to draw crowds of bargain- hunting shoppers. Selected price reductions are already in effect in all Woolco locations. The sale, which began Nov. 22, involves all brand new, currently styled, factory-fresh merchandise and includes apparel, shoes, appliances, home electronics) toys and sporting goods. The company an^ nounced itj September that all Woolco stores in the United States would be closed in early 1983. The Woolco liquidation will not affect the 1,300 Woolworth variety stores which continue to operate nationwide. Gray Pharmacy 2306 N. Alexander Baytown. Texas 77520 (713) 422-8221 PRE-CHRISTMAS SALE 10# OFF ON ALL GIFTS NOVEMBER 29 THROUGH DECEMBER 4 To our special customers: Our store is loaded with gifts and they are all yours at a 1Q% savings during our annual pre-Christmas sale, Monday, November 29 -through Saturday, December 4. All gift items in the whole store will be 1Q% off. Included are fragrances, our boxed Christmas cards, gift wrap, and many gift lines. We are offering additional savings on some items, such as j All Timex Watches - 20f 0 off All Amity Billfolds - 2Q% off All Playskool and Fisher Price Toys - 20fo off All Parker, Shaeffer, and Cross Pen Sets - 20% off Our free gift wrap will be available, of course. And if you prefer to use our lay-away, we will hold your purchases until Christmas. Shop now since quantities on some items are limited.