Detroit Free Press from Detroit, Michigan • Page 29

wwf nii'li't" This morning's business briefing: Thursday, Hov. 13, 1080 SYLVIA PORTER Dow-Jones Industrials 964.93 20.90 Lowest prime rate (Detroit banks) 15 Fixed-rate mortgage (20 down) 14 26-week Treasury bills 13.231 212-year certificates (highest rate) 12 Inflation rate (national) Inflation rate (Detroit) Michigan unemployment rate National unemployment rate Auto layoffs (indefinite only) 12.7 16 13.4 7.6 182,765 6B MUTUAL FUNDS 6D STOCKS 6-83 OPTIONS DETROIT FREE PRESS 5B 93 o)liOOQ(Bi disturbs black business Electio the fisEief lesson is that white folk play hard ball; they don't vote emotion. The moral majority did what black min isters say they do," Boston empha sized. SEVERAL SPEAKERS criticized the Democrats for being unenthu- Business inventories rise, but sales jump 3.1 percent Business inventories rose modestly in September, but sales shot up 3.1 percent after a revised 1.3 percent increase the month before, the government reported Wednesday. As a result, the important inventory-to-sales ratio declined from 1.47 to 1.43 in August.

Inventories are a crucial indicator siastic and disorganized. "Democrats chewed themselves up before the election" over the By MONTE I. TRAMMER Free Press Business Writer While the business community as a whole greeted last week's Republican landslide with optimism, representatives of Detroit's black business community expressed feelings of defeat, resignation and anxiety at a post-election luncheon forum Wednesday. The forum, hosted by the Booker T. Washington business organization, a 50-year-old group of black Detroit business people, reflected none of the excitement expressed by the major business community after Ronald Reagan's landslide defeat of President Carter.

The comments from the 25 people at the forum also tended to be more sociological than economic; indicating that members reacted to of the economy. If shelves get too stocked, companies will cut production and lay off workers, which could contribute to an economic slowdown. In contrast, when sales pick up, manufacturers may increase production, which could boost employment. jfu i iiimi 1 "i ii nmmn iiMmiwnii uuMvonwwu i. imn.iii.upMi mijh ax ffiwurit -mt I '( I Free Press Photos bv WILLIAM AKCHIE 1ul 0 I LaToya Pearson, right, owner of Hair Design I criticised Democrats for being unenthu- I siastic.

David Boston, above, owner of Boston lg? II Hair Products said there are lessons in the Republican landslide. The Commerce Department reported the value of manufacturing and trade inventories increased $2.5 billion in September to a seasonally adjusted $454.5 billion, compared with $452 billion in August. Inventories increased $900 million for manufacturers; $1.5 billion for retailers and $100 million for merchant wholesalers, the department said. Sales, meanwhile, rose from a seasonally adjusted $308 billion in August to $317.6 billion in September, the department said. It estimated auto inventories dropped slightly, from a seasonally adjusted $25.5 billion to $24.3 billion.

Sales were up from $13.9 billion in August $14.7 billion. Headlines U.S. STEEL CORP. plans a multimillion-dollar project to increase continuous casting capabilities of its Gary, works by 30 percent. Last month, the company announced plans to build a continuous caster at its Lorain, possible candidacy of Massachusetts Sen Ted Kennedy, said Carl Bolden a management consultant and board member of Wright Mutual Insurance Co.

That point was stressed by LaToya Pearson, owner of Hair Design Inc. on Grand River in Detroit. "The Republicans came to my door (distributing literature), but I had to go to a Carter-Mondale office and ask" for theirs, she told the crowd. Arthur Cartwright a real estate investment broker and former Michigan state senator, laid the Democratic defeat on economics and a poor performance by President Carter. Carter's mismanagement of the economy, Cartwright said, lowered the standard of living for many traditional Democrat supporters, including blacks and union members.

"In elections, people vote their stomachs. It was strictly poor management," that defeated the president, Cartwright maintained. The association, an affiliate of the National Business League, has sponsored post-campaign analysis discussions since 1948. the election more in racial than economic terms. IN GENERAL, they saw the election more as a popular reaction to an ailing economy than as evidence of a conservative groundswell.

But they counted as contributing factors mounting conservatism, a disorganized Democratic party and a perception that American prestige abroad has beep weakened. Some forum members saw the Reagan election as a harbinger of Ohio, works that will initially produce more than 500,000 tons of steel a year and create 300 jobs. DELTA AIR LINES INC. will buy 60 Boeing 757 medium-range jets for more than $3 billion. Delta believes the order leaner times with less emphasis on affirmative action, especially in access to federal contracts.

But David Boston, owner of Boston Hair Products said "Let's not lose our perspective and get all excited." He recalled that Lyndon Johnson was criticized for his conservatism before he became president, but Johnson "turned out to be one of the cratic party. The Republicans won the presidency and gained strength in Congress by eroding traditional Demo-cractic strongholds. "There is a lesson there. The best friends black people ever had," Boston said. Boston suggested, however, that part of black America's disenchantment with the Republican victory stems from its loyalty to the Demo to be the largest ever within the airline industry, topping a previous $1.6 billion by United Airlines, also for Boeing jets.

The twin-engine 757s will replace McDonnell Douglas DC9s and Boeing 727 aircraft in Delta's fleet and will serve medium- and short-range markets. Delta will decide on engines in mid-December. PATRICK PETROLEUM CO. of Jackson said its subsidiary, Patrick Coal has purchased the assets of Virginia- based Commonwealth Resources Inc. for $4.45 million.

The purchase includes coalfields expected to yield an Carter asks end to domestic bias in U.S. contracts estimated five million tons of low-sulfur coal, a coal-preparation facility, equipment and 90 acres of land. Patrick Coal also will take over six contract mines from Commonwealth. MORE THAN 400 GALLONS of PCB-tainted fuel oil de stroyed in a May test burn at the Chevrolet plant in Bay City left no detectable amounts of the toxic chemical in the atmosphere, General Motors Corp. said.

GM said more than 99 percent of the PCB in the oil was destroyed. GM will apply to the Environmental Protection Agency and the Michigan Department of Natural Resources for ap proval to burn an additional 40,000 gallons in storage at tne Bay City plant. Newhouse News Service WASHINGTON As one of his final acts in the White House, President Carter plans to ask Congress to eliminate the advantage domestic companies have over foreign firms in bidding for U.S. government contracts. About $27 billion in.

federal contracts could be involved. The proposal to amend the Buy American Act is expected to intensify a bitter dispute between the administration and business and labor groups over the rights of foreign businesses in bidding for government contracts. Carter is proposing elimination of the domestic bidding advantage to carry out the spirit of informal multinational trade agreements among the United States and 97 other countries. Administration officials said a new federal procurement policy had been developed and sent to Congress for NATIONAL DETROIT parent company for National Bank of Detroit, will buy Wolverine State Bank of Sandusky in an $11.2 million deal. The acquisition is subject to approval by government regulators and Wolverine shareholders.

THE INTERNATIONAL Trade Commission's refusal to put limits on imports of Japanese autos apparently has killed Free Press Drawing bv Art Director DICK MAYER approval. Representatives of President-elect Ronald Reagan say the chances for a meeting between President Carter and Prime Minister Togo Fumihiko, White House press secretary Jody Powell says. Carter announced in October that he would meet with the Japanese prime minister "soon incoming administration has not taken a position on the matter. (Locally, American" Motors whose AM General Cracker Jack is wooing the adult market by putting coupons for toy-filled station wagons into some of its boxes of caramel corn and peanuts. Adults bite for big prizes division sells many vehicles to the federal government postal delivery vehicles, for example was not aware of the proposed change and said it would investigate it before after the election.

Had the commission endorsed controls, the leaders would have discussed substituting a voluntary reduction of Japanese imports. But the commission's decision apparently has removed the basis for the meeting. commenting. General Motors, which does only a small amount of federal business, also had not heard of it.) From New York Times and Free Press Staff Reports THE BUY AMERICAN ACT of 1933 was passed by Con cases in 1977, and that the market share had increased to 55 percent in the same period. gress to stimulate the U.S.

economy and support employment during the Depression. The act requires that federal tax money be used to purchase American-made products, provided the CRACKER JACK spends an estimat domestic price is no more than six percent higher than the import price. In industries with high unemployment, the ed $3 million a year for those little surprises that cost about a penny each to Compiled by KATHY WARBELOW Entenmann's heading here Local fans of Entenmann's baked goods no longer will have to smuggle them in from the East. The famous New York bakery will begin selling coffee cakes, Danish and other goodies in Detroit area supermarkets in January, according to Warner-Lambert which owns differential can be as much as 12 percent. manufacture.

Beginning in January, if Congress approves, the United Company officials estimate more States will drop the price advantage for American companies than 16 billion toys have been packed in the confection over the last 68 years. To This nation and the -97 other countries have tentatively agreed to end discrimination against foreign Suppliers after Insure variety, 600 different toys are used to stuff the boxes each day. That means 25 million toys of a particular Entenmanns. Entenmann's is to pastry what Coors or Stroh's is to beer. Devotees say the products' appeal is in their ingredients, series are purchased each year.

Garrett said Federal Trade Commission rules require Borden to give away the prizes by Jan. 22, 1981. They will be doled out through some other method if no one buys the lucky boxes. THE UPGRADING of the prizes was part of a $6.5 million marketing campaign to halt the erosion of the brand's market share since 1973 by wooing adults l)ack to Cracker Jack. Company officials would not provide specifics on the slippage, but said Cracker Jack now holds more than a 50 percent market share of the caramel corn business.

"We knew that there were still many adults eating Cracker Jack," said James Grau, product manager. "It had always been a fun product with a deep heritage, but adults still ate it for the taste. We added more peanuts to Cracker Jack in 1979 in an effort to draw more adults. Ever since 1912 the company has been putting toys in the packages. We just felt it was time for an update perhaps time to give Cracker Jack a new image." Grau estimated that sales have risen 30 percent, to 31 .7 million cases about 400 million boxes from 26.8 million CHICAGO Has Cracker Jack ever got a surprise for you! Since January, prizes intended to light up the eyes of adults as well as children have been put in some of the red, white and blue boxes of caramel corn and peanuts from coupons for Mazda station wagons filled with thousands of dollars of toys to combinations of Mattel games, tricycles and Barbie dolls.

The tin whistles, rings, toy soldiers and tops have not been entirely replaced, however; only 57,000 boxes holding the so-called Super Surprises were scattered among the 400 million boxes of Cracker Jack lining store shelves this year. Since the initiation of the Super Toy Surprise coupons in January, company officials say sales have climbed to record levels. And a bigger Super Surprise promotion is planned for 1981. But no one has yet won one of the five toy-jammed Mazda station wagons offered, said Betty Garrett, manager of product Information for Borden in Columbus, Ohio. Borden owns Cracker Jack.

five years of negotiations for a 'new international trade agreement. J': The U.S. and most European nations adopted the provisions, including the government procurement code, in 1979. But Japan, India and pother countries have agreed only in principle. The Carter administration hopes dropping the domestic bidding advantage will lead other countries to open their government markets to American firms.

Later this month, the company will start advertising its Christmas Sweepstakes, which promises a "super visit" to 20 families from a modern-day Santa quality control and superior taste. "It's word of mouth," said Nancy R. Meyerson, who handles public relations for the bakery firm. "People who grew up with the product say, 'I've got to have Entenmann's, who will deliver $450 worth of Mattel toys via Federal Express on Christmas Eve. Cracker Jack was founded by F.W.

Rueckheim, a German immigrant, in 1893. The company first issued coupons In the boxes that could be redeemed for household items such as baby buggies, lamps, glassware and linens at an outlet store in Chicago. In 1912, the first toy surprises went into the boxes. it's the People in Indianapolis go to New York for the weekend and come back loaded with Entenmann's. They do the selling job for us when we come into a new market." Entenmann's Midwest ex-, pension plans began last year, BUT SOME LEADERS of American business and labor are worried that other governments will not immediately reciprocate, and that the elimination of the S.

bidding advantage will lose sales and jobs to foreign competitors. Although American firms will face increased competition at home, they will not be able to vie in the markets of their foreign competitors until the U.S. completes negotiations. "A Japanese company can submit a bid to the government and win a contract for millions of dollars, but the Japanese government won't even accept my bid," says G.L. Flynn, president of the Hardie-Tynes Manufacturing a turbine Entenmann's baked goods will be in Detroit area supermarkets.

when the firm bought the Burny Bros, bakery in Northlake, 111., Stock market surges to six-month high and valve manufacturer in Birmingham, Ala. said Walter Weglein, Warner-Lambert manager of consumer communications. Products were introduced in the Chicago, Cleveland, Pittsburgh, St. Louis and Albany, N.Y., areas. Detroit area stores will be supplied from the Chicago bakery, via Entenmann's store-door delivery system, in which An AFL-CIO economist said the United States continues to think its trading partners want a "free market" when they NEW YORK (AP) The stock market ran up its gan rising sharply at' well.

Texas Instruments picked up 3 '4 to actually want to sell here but protect their home market. salespeople deliver items from their own route trucks. The number of routes here hasn't been determined, Weglein said, though hiring of salespeople has begun. Douglas Newkirk, assistant trade representative at the White House, is confident an agreement will be reached by the Entenmann was founded in 1898. It had one bakery, in Bay Shore, Long Island, until 1975, when a second was opened in end of the year.

If not, he said, the U.S. will continue to require Japanese suppliers to bid six to 1 2 percent lower than domestic 134, Teledyne 44 to 203'4, Control Data 3 to 70 and Comdisco two to 18. ANOTHER MARKET leader was Boeing, which nosed out IBM at the top of the active list and rose 2 lt to 39 The company got a big order for jets from Delta Airlines. Since President-elect Reagan's landslide victory a week ago, a few stock groups such as the defense issues have been consistently strong. But the overall market was erratic until early this week, in part because of worries over still-rising contractors to win government contracts.

But even in countries that have agreed to comply with the sharpest gain in more than six months in heavy trading Wednesday. Analysts said a strong showing by International Business Machines stock and an improving bond market aided by hopes for an early peak in interest rates lifted investors' spirits. The Dow Jones average of 30 industrials climbed 20.90 to 964.93, for its biggest gain since a 30.72 jump on April 22. New York Stock Exchange volume, bolstered by heavy activity In the last hour, reached 58.50 million shares against 41.52 million Tuesday. International Business Machines soared 3 to 70 on turnover of more than one million shares.

The company announced a new top-of-the-line computer system. Once IBM shares took off, analyst Charles Jensen at MKI Securities noted, numerous other high-technology issues be Miami. In 1978, the family-owned firm was acquired by Warner-Lambert for about $242 million. Since then, annual sales have climbed from $168 million to an estimated $290 million this year. Entenmann's plans to expand next year into other Midwest markets and should be in 80 percent of the country's major new multinational pact, there is evidence there may be attempts to circumvent it.

West Germany pressured the city of Bremen to deny a $5.5 markets by 1985, Weglin said. interest rates. In the last day or two, however, hopes have risen that interest rates might soon peak. Prices in the bond market have climbed sharply on those hopes, prompting further optimism. million computer contract to Burroughs the Detroit-based company said in a lawsuit.

Burroughs said Bremen accepted the bid of a German company after the German government threatened to cut off funds to the city. Locally, Entenmann will compete with the Fred Sanders confectionary and Awrey Bakeries among other firms. Stuart Elliott A 'i1 ni "i i rf rf 0t mtm'i Hi tt lm i ii.