Detroit Free Press from Detroit, Michigan • Page 48

-Tp MUTUAL FUNDS CZb rv 1 i li jn STOCKS ePb-ePd h-m Woiiflotw tat Dow-Jones Industrials 941.98 0.60 Inflation rate (national) 12.4 Lowest prime rate (Detroit banks) 17 Inflation rate (Detroit) 15.7 Fixed-rate mortgage (20 down) 16 Michigan unemployment rate 12.8 26-week Treasury bills 13.735 National unemployment rate 7.4 2'2-year certificates (highest rate) 12 Auto layoffs (indefinite only) 197,550 NYSE 6Dc OPTIONS 6Dd DETROIT FREE PRESS 6Da in on easy bankruptcy cash Wary investors await Reagan's economic speech The stock market was mixed in erratic trading Wednesday while investors awaited President Reagan's speech on the economy, scheduled for Thursday night. The Dow Jones average of 30 industrials closed up 0.60 to 941.98. The blue-chip index had gained 9.13 points Tuesday, "in genuine financial distress" to obtain relief. Though Congress did not intend the law to be a loophole for deadbeats, he said, "that is clearly what is happening today." "If these bankruptcy abuses are not ended," Kurth said, "creditors will not only be forced to pass the cost of bankruptcy along to all responsible borrowers, but credit criteria will be tightened to the point where a significant segment of the public will be denied credit." A spokesperson said the group's survey of 10,000 ads placed by lawyers found many of them touting bankruptcy, instead of credit counseling, as a way out. Bankruptcy, the spokesperson said, "is being peddled as a panacea" by the legal profession.

the 12 months ending Sept. 30, an increase of 171,072 over the year before. The new law went into effect Sept. 30, 1979. (In Michigan, 16,529 people filed for bankruptcy under the first year of the new law, compared with 8,000 from September 1978 to September 1979.

The filings were concentrated in the eastern district, which includes Detroit, where 10,962 people filed in 1980, compared with 5,691 in the earlier period. In the western district, 5,567 filed in 1980, compared with 2,309.) The association, which represents loan companies such as Beneficial, Household Finance, General Motors Acceptance Corp. and more than 700 other companies, said it ob tained the figures from the Administrative Office of the U.S. Courts. THE GROUP blamed the increase on the new law, the nation's economic difficulties and lawyers who advertise quick bankruptcies for cheap fees a trend that may have increased consumer awareness of the option.

The law, which replaced a haphazard collection of state statutes and federal court rulings, allows a person to file for bankruptcy in federal court, even though he or she may not be completely insolvent. The bankruptcy remains on the person's credit record for 10 years. Kurth said the Bankruptcy Reform Act of 1978 was designed to make it easier for those From UPl and Fre Press Staff Personal bankruptcy filings doubled in Michigan and rose 82 percent nationwide during the first full year of a federal law that made going broke easier, a loan industry group reported Wednesday. "Many individuals who could meet their credit obligations are simply taking advantage of a system which permits bankruptcy on demand whether their financial condition warrants It or not," said Walter Kurth, president of the National Consumer Finance Association. CALLING THE trend alarming, Kurth said 380,615 Individuals went bankrupt during but tumbled 15.02 Monday.

Advances outnumbered declines by nearly a 9-5 margin on the New York Stock Exchange. Big Board volume totaled 45.52 million shares, almost unchanged from Tuesday's 45.95 million. Alan Ponlp nf oidlnw Aflame and Pprlr Monthly domestic car sales drop 20 percent said the market is engaged in a "kind of quiet tug-of-war" because investors are uncertain about what the president will say in his address on the economy and whether specific details on spending and tax cuts will be unveiled then. The NYSE's composite index of all of its listed common stocks rose 0.16 to 73.64. At the American Stock Exchange, the market value index' was up 2.36 at 338.23.

The NAS-DAQ composite index for the over-the-counter market closed at 194.57, up 1.01. i Headlines the auto tally e1ite(8liBi4Bs 'immmmmm U.S. sales of domestic and foreign-built cars during January 1981 and 1980 as reported Wednesday by major domestic manufacturers, plus Import estimates and industry totals: 1980 1980 Market Share 1981 293,219 97,969 55,452 10,719 12,473 45.4 15.2 8.6 1.6 1.9 380,848 54,355 2.0 13,632 General Motors Ford Motor Co. Chrysler Corp. American Motors Volkiwagen (US) Total Domestic Sales 469,832 587,739 72.7 Toyota Motor Co.

47121 Nissan Mtr(Datsun) 33,103 47,068 5.1 Honda Mtr Corp. 31,234 30,575 2.2 4.8 Total Import Sales 176,000 27.3 Industry Totals 645,832 WISCONSIN PIPELINE the natural gas-transmission arm of American Natural Resources of Detroit, will buy 100 million cubic feet of gas a day for 10 years from; TransCanada Pipelines Co. of Toronto. Approval by U.S.I and Canadian regulatory agencies is expected in time for; delivery to begin in November 1982. Michigan Wisconsin buys from Canada about 1 5 percent of the gas it needs to i supply 245,000 homes in Michigan and Wisconsin.

GOLD PRICES climbed above $500 an ounce Wednesday! before dropping below that level to finish lower for the! day. Gold rose to $507.50 in Zurich, up $20, and closed in London at $505 an ounce, up $16.75 from Tuesday. But in i New York, gold for delivery this month closed on the Commodity Exchange Inc. at $490.50, down $4.20 from Tuesday. i AMERICAN TELEPHONE TELEGRAPH CO.

earned $6.08 billion in 1980, an increase of 7.1 percent from the; previous year and the largest annual profit ever reported' by an American corporation. profits were billion In 1979. Earnings per share rose just 1.9 percent to' $8.19 from $8.04, reflecting the issuance of more Exxon Corp. ranks second in terms of annual profits, $5.66 billion for 1980. MASATAKA OKUMA, executive vice-president of Nissan; Motor Co.

Ltd. says he has no second thoughts about; Sales of Plymouth's Horizon, above, and the Dodge Omni fell 27 percent in January. Chrysler offers compromise on cutback plans in Canada By GUY DARST Associated Press Automotive Writer Sales of domestic cars fell 20 percent in January, compared with January 1980, but the news is not as bad as it sounds because January sales last year were unusually strong. The five major producers Wednesday reported deliveries of 469,832 cars for the month against 587,739 a year ago. In the Jan.

21-31 selling period, sales plunged 26 percent, from 277,817 to 204,767. The 18 largest importers boosted their market share to a January record of 27.3 percent, up from 26.98 percent last year. But because the overall market was so much smaller, their sales of 176,169 cars were down 19 percent. The import total incorporates a company estimate of 2,600 for Renault, which, because of a computer breakdown, was unable to provide exact figures, according to a spokesperson. The seasonally adjusted annual selling rate was 9.1 million domestic and imported cars, a little better than analysts expected.

Last year, the January rate was 1 1.5 million, a rate partly inflated by sales contests at General Motors Corp. and Ford Motor Co. dealers. The January rate this year broke down to 6.8 million domestic cars and 2.3 million Imports, compared with 6.1 million and 2.5 million in December, and 8.8 million and 2.7 million in January 1980. Actual 1980 sales were about 6.6 million and 2.4 million.

CHRYSLER CORP. sales fell 6.4 percent in late January, breaking a run of six consecutive sales-period gains. But Chrysler still finished the month two percent ahead of last year. Chrysler is offering buyer rebates of seven percent of the sticker price. Chrysler sold 22,875 cars in the final period, down from 24,427, and 55,452 for the entire month, up from 54,355.

building a $300 million truck plant in Tennessee, despite being jeered and booed at during groundbreaking ceremonies Tuesday. Hundreds of union members protested the hiring of a company employing some non-union workers to build the facility near Nashville. The plant will be Nissan's largest facility outside Japan and will produce I IV 4 I A 4 1 Chrysler's new front-wheel-drive K-car had its second-best month at 21,876. But sales of the subcompact Dodge Omni and Plymouth Horizon were off 27 percent for the month, and sales of larger models were off 30 percent. Chrysler has restored planned February production cuts for the subcompacts, and some dealers said January plant downtime and dealer reluctance to restock inventories, because of high interest rates, meant buyers were having to wait for cars.

American Motors which cut sticker prices 10 percent on Jan. 14 for five weeks, sold 10,719 vehicles in the month, down 10 percent from 11,904. AMC does not report 10-day sales, but based on estimates its sales of 4,919 in the final period were up 9.1 percent from 4,508. GM SALES fell 23 percent for the month, from 380,848 to 293,219, and 32 percent for Jan. 21-31, from a period record of 188,948 in 1980 to 128,398.

Volkswagen of America sales of U.S.-built Rabbits dropped 8.5 percent, from 13,632 to 12,473, and rose nine percent for the final period, from 5,362 to 5,844. Ford sold 27,679 of its new Escort-Lynx models, driving its subcompact sales up 89 percent for January; the Escort and Lynx were not available In January 1980. But all other Ford models were down 40 percent. GM, with no all-new models entering the market until May, suffered sales losses on all sizes. AMC's marketing vice-president, Thomas Staudt, said Its reduced prices gave "dramatic increases" in sales that yielded January totals above December's 9,594 for the first time in six years.

Norman Lean, senior vice-president of Toyota Motor Sales the No. 1 importer, said his company thought it saw "some improvement in the market" despite a 16 percent sales decline to 47,121. An industry analyst requesting anonymity said, "We're right back to where we were before the November interest rate scare." Bank prime rates peaked at 21 percent in November and now stand at 19 percent. From AP and Frea Press Staff Chrysler Corp. has offered a compromise on planned cutbacks in Canada and is preparing for more talks with the Canadian government on the automaker's plans for staying alive.

Canadian approval of Chrysler's reduced spending plans is essential to the package of concessions the automaker needs to get another $400 million in loan guarantees from the U.S. government. In December, Chrysler told the Canadians it Intended to eliminate car but not truck production in Canada and reduce new investment there from about $850 million to under $600 million. Earlier, in return for the commitment to spend $850 million in Canada by 1985, the Canadian government had agreed to guarantee $170 million (U.S. dollars) in loans to Chrysler, starting in 1982.

Chrysler Is now negotiating with the Canadians to maintain that $170 million level, despite the firm's planned investment cutbacks. As part of the negotiations, Chrysler confirmed Wednesday It has agreed to restore limited small-car production to one of its two Windsor assembly plants for the 1985 model year. CANADIAN INDUSTRY Minister Herb Gray met Tuesday night with representatives of the UAW. Afterward, he said he wanted Herb Gray, Canadian industry minister, wants more talks and soon. more talks with Chrysler as soon as possible to "firm up details about the nature of production, the quantity and the time period." Walt McCall, spokesman for Chrysler's Windsor-based Canadian subsidiary, said Wednesday: "We are standing by for a call from the minister.

When it happens, it'll be on short notice." 120,000 Datsun pickups annually by 1983. It will employ 2,200 people. National Detroit buys stocks National Detroit parent company of the National! Bank of Detroit, has purchased stock in at least 10 banks' outside Michigan. The investments are below the federal limit of five percent interest in the banks, said Jack Ennest, director: of corporate planning at National Detroit. Among the 10 banks are First Maryland Bancorp, of Baltimore, parent of First National Bank of Maryland, and First Union Bankcorp of St.

Louis, parent of First National Bank I in St. Louis, Mo. National Detroit's $75 million stock-investment program is part of the corporation's plan to get "geographic diversifica- tion and attractive investment returns." Ennest said that at the 1 end of 1 979 $35 million had been invested. He says that figure is now $62 million. GM plans 2 division moves General Motors Corp.

said Wednesday it would move the; headquarters of its financing and insurance divisions from; New York City to Detroit later this year. GM notified 700 employes of General Motors Acceptance, Corp. and General Motors Insurance Corp. by letter that the! move "is simply to achieve operating efficiencies and cost reductions which will result from a location of our headquarters' close to the principal operating headquarters of General Motors, where the more extensive management, technical and other facilities of GM are immediately available." GM said a small group of employes involved in borrowing and other financial operations would remain in the New York office, located in the GM Building on Fifth Avenue in Manhattan. GM will continue to maintain New York headquarters in that building.

The new offices of the wholly owned subsidiaries will be in Detroit's New Center area, near GM headquarters. A spokesman said the move will likely be accomplished by late summer. McGoff probe to proceed The Securities and Exchange Commission's broad probe of! the financial dealings of newsnaner nuhlisher John P. McGoff i Utility earnings down, but Dow Chemical gains profit picture American Natural Resources, parent firm of Michigan Consolidated Gas reported 1980 profits down 24 percent from 1979 levels, although income before special items was up slightly in 1980. Net 1980 income was $113.2 million ($4.89 a share) Dow Chemical Dow Chemical Co.

says a strong fourth quarter with sales of nearly $2.8 billion and profits of $242 million helped the company register a 14.8 percent sales increase in 1980 compared with the previous year. The Midland-based firm reported 1980 earnings of $805 million ($4.42 per share) on sales of more than 1 0.6 billion, up from $784 million ($4.33 a share) in 1979 on sales of $9.26 billion. "We're encouraged by the signs of an apparent recovery from the recession in the United States," Paul Oreffice, president and chief executive officer, said. Oreffice said the company experienced a sharp drop in business In the spring and summer, when operating rates were less than 65 percent of capacity. They had rebounded to 75 pei cent of capacity by the end of the year.

"35BT compared with $148.7 million ($6.47 a share) in 1979. Before special items, 1980 income was $118.2 million, up from $118 million in 1979. But ANR took a $5 million write-off in 1980 involving its trucking subsidiaries. The 1979 net income had been boosted by a $30.7 special gain because of an accounting change. American Natural is preparing to spin off Michigan Consoliated, which serves 1.1 million customers, as a separate company, Seder can go ahead, the U.S.

Court of Appeals in Washington has Consumers Power is spending about $650 million a year on construction, most of it for completion of its Midland nuclear power plant. Rate-making rules associated with that construction add $27 million to annual income, even though the firm doesn't start receiving the money until the plant is completed, about 1984. An Increase in the number of shares outstanding and rising construction and fuel costs combined to hold down earnings. Revenue from sales of electricity and natural gas to the company's 8,000 industrial customers decreased more than 1 1 percent while fuel sales to residential and commerical customers were practically unchanged, a spokesperson said. Although the company received two rate increases in 1980, residential natural gas use produced almost no increase in revenue because customer conservation caused use to drop about 14 percent, the spokesperson added.

Detroit Edison Detroit Edison Co. reported 1980 earnings of $137.5 million ($1.75 a share), down 7.9 percent from 1979 when adjusted for the Increased number of shares outstanding. The company attributed a 6.7 percent increase in revenue $1.8 billion in 1980 from $1.6 billion in 1979 to a strong fourth quarter and a rate increase. But Increased operating expenses and the greater number of shares outstanding held down earnings. Edison's 1979 earnings were computed on 69.8 million shares outstanding; 1980 earnings are based on 78.7 million shares, The company, which has 1 .7 million customers in southeast Michigan, recorded 1980 sales down 7.2 percent from 1979.

A spokesperson said Edison's 2,200 automotive and industrial users required 13.9 percent less power in 1980 than in 1979, while residential and commercial sales were up 1.4 percent. ruled. A three-judge panel of the court upheld SEC demands for information to test whether McGoff secretly used South African government money in his efforts to buy U.S. newspapers, Including the Washington Star. McGoff is president and chief stockholder of Panax which owns the Macomb Daily, based in Mt.

Clemens. Last year, Panax sold its six Upper Peninsula newspapers to Britain's Thompson News in part because the subsidiary does not contribute enough to its overall profits. Michigan Consoiidated's 1980 profits were about $12.4 million, compared with $9.2 million in 1979 and a high of $37 million in 1977. Chairman Arthur Seder Jr. said colder than usual weather at the end of the year helped boost fourth-quarter earnings, but natural gas sales for the year were still down six percent, reflecting the effects of the recession and energy conservation measures.

Consumers Power Consumers Power supplier of about 40 percent of Michigan's electricity and natural gas, blamed reduced industrial act! vity for a five-percent drop in 1 980 earnings compared with 1979. The company reported 1980 operating revenue of $2.3 billion, compared with $2 billion for 1979, and income of $224 million ($3.08 a share) last year vs. $204 million ($3.24 a share) In 1979. Detroit Edison DETROIT EDISON CO. Three months Dec.

31 1980 1979 Net Income $42,840,000 $31,256,000 A share 52 cents 42 cents Sales $481,344,000 $406,716,000 Year Dec. 31 Net Income $137,529,000 $132,572,000 A share $1.75 $1.90 Sales $1,812,514,000 $1,698,511,000 Dow Chemical DOW CHEMICAL CO. Three months Dec. 31 1980 1979 Nel Income $242,300,000 $194,300,000 A share $1.33 $108 Sales $2,772,300,000 $2,447,300,000 Year Dec. 31 Nel Income $804,500,000 $783,900,000 A share $4.42 $433 Sales $10,625,800,000 19,255,400,000 American Natural AMERICAN NATURAL RESOURCES CO.

Three months Dec. 31 1980 1979 Net Income 160,969,000 A share $264 Sales $969,921,000 $797,528,000 Year Dec. 31 Net Income 13,219,000 $148,854,000 A share $6.47 Sales $3,038,546,000 $2,505,622,000 Includes extraordinary write-off of operating rights of S5J017.OOO (22 cents). Consumers Power Co. CONSUMERS POWER CO.

Three months Dec. 31 1980 1979 Nel Income $71,617,000 $40,863,000 A share 9B ce.ils 58 cents Sales $723,415,000 $573,475,000 Year Dec. 31 Nel Income $223,798,000 $203,787,000 A share $3 08 $3.24 Sales $2,303,983,000 $2,021,234,000 papers Ltd. for $21.5 million. The SEC; opened its probe in July 1979, aiming at! McGoff, McGoff and two companies he controls, Global Communications Corp.

and Sacramento Publishing Co. There is no indication when the investigation will be finished. McGoff already has turned over most of the documents sought by the agency, because the Supreme Court earlier had rejected McGoff 's first challenge to the SEC subpoenas. Compiled by KATHY WARBELOW.