Detroit Free Press from Detroit, Michigan • Page 25

i l)ir TC Hf rfr SB BRIEFLY Market likes Somalia action Business People, Page 10 Michigan Memo, Page 10 Call Business: 222-8765 Detroit 4frce Stress JOBLESS RATES DROP AGAIN The national and Michigan unemployment rates kept declining in November, good signs for the economy. State jobless rate falls for 4th month mm The stock market ended a three-day losing streak Friday, closing up in response to the lower unemployment rate in November and President George Bush's plan to send troops to Somalia. The Dow Jones industrial average rose 12.15 points to 3,288.68. 12 I III I I THE DOW Mutual Funds, PagellB NYSE, Page 12B AMEX, Page 13B I 7J Kchjgatj 0 Jertptoyroeiit I I wefflptoymentj 2 1 I I I Pircart at aria Uxr ferce, teasoiulj agisted 0 i Associated Press Michigan's unemployment rate in November fell to 7.9 percent, the lowest since January 1991, the U.S. Bureau of Labor Statistics said Friday.

It was the fourth consecutive monthly decline and the number of people looking for work was also its lowest since January 1991, the bureau said. November's rate was down from 8.6 percent in October. Nationally, the unemployment rate dropped to 7.2 percent, the fifth decrease in a row and strong evidence the recovery is taking hold where it counts in the job market "I think it's maybe the best economic news in two years," said economist Mark Zandi of Regional Financial Associates in West Chester, Pa. "This report suggests that businesses are finally beginning to hire and that's what's needed to sustain an economic recovery." The new national rate, down from 7.4 percent in October, was the lowest since April. It was the largest decrease since February 1989.

An accompanying report showed a bigger-than-expected advance in employers' payrolls, which rose by 105,000 jobs to' 108.6 million, the third consecutive monthly gain and the best since July. Technically, the economy has been recovering from the recession for a year and a half, but growth has been so lackluster that consumers and, most importantly for President George Bush, voters did not feel as if the economy was improving. For most of the so-called recovery period, unemployment continued to worsen, hitting an eight-year high of 7.8 percent in June before starting a slow decline. Economists dismissed the first few rate drops as flukes. Now, with a wide range of statistics showing improvement, they believe the job market is on the mend.

The unemployment rate still is substantially above the 5.2 percent level just before the recession began in July 1990, and analysts predicted it won't fall appreciably below 7 percent until late next year. That's because, as the economy improves, jobless people once too discouraged to even look for work will start hunting again. Nationally, 9.2 million Americans remained unemployed in November, 2.4 million more than at the recession's start. In Michigan, 364,000 people were unemployed, the fewest since 328,000 jobless were reported in January 1991. The number of people working, 4,267,000, was the most since July 1990, when 4,271,000 were employed.

Hoi'H Kn'92 Source: Michigan Employment Security Commission Detroit Free Press -rr I it 'Jf -V Japan to open Detroit consulate fA .0 'jr ft i I Girl wins $20.5 million in Jeep case A girl, now 12, who was left with paralysis and brain damage after she fell from a Jeep as it veered into a ditch in 1983 won $20.5 million from the company that made the soft door and roof. A federal jury in New York ruled that the now-defunct White Automotive Corp. was responsible for Olivia Slade's injuries. Slade's attorney said it may be impossible to collect. White Automobile lawyers said the company's insurance will cover only $6.3 million.

NJ. goes into receivership New Jersey's largest savings and loan, Carteret Savings Bank, was placed in receivership by the Office of Thrift Supervision, which blamed bad commercial real estate and residential development loans. Carteret's 41 branches, 31 in New Jersey, nine in Florida, one in Washington, D.C., remained open. In Carteret's place, federal regulators chartered Carteret Federal Savings Bank, run by the Resolution Trust Corp. Office parties on upswing After several years of playing Scrooge, many companies are putting on more lavish holiday parties this year, according to a survey of 100 companies by the Battalia Winston International executive search firm.

Dale Winston, the firm's president, says the office party is a "fun economic barometer." Catered champagne and caviar followed by prime rib means the economy is healthy. Requests for pot luck casseroles or no party at all signal that times are still rocky. Despite the upswing, the ostentatious bashes of the 1980s are still out of fashion, the survey shows. Pan Am failure is noted Hundreds of former Pan American World Airways (slogan: You're better off with Pan Am) employees will gather today in Miami to mark the one-year anniversary of the pioneering airline's death. Pan Am was founded in Key West in 1927.

It crumbled after massive losses, an asset sell-off, a bankruptcy filing and, finally, shutdown on Dec. 4, 1991. Pan Am and its creditors still have a suit against Delta Air Lines, which they argue killed Pan Am by backing out of a deal to bankroll a revival. Dave's way is basic way Wendy's founder Dave Thomas is pretty down-to-earth for a guy worth nearly $100 million. But everyone knows that they watch iMmii iMfiilfcT TUT' 1 New York Times Photo Cheryl Stewart of Toronto bought Jake, a yellow labrador, in New York.

But the labrador is ill, with dysplasia. Canada is considering curbing U.S.-bred dogs. A DOGFIGHT ON TRADE the Wendy commercials that Dave stars in. Thomas, a high-school dropout, made his fortune selling Kentucky Fried Chicken through four franchises he owned and sold in 1968, when he was 35. His company now has nearly 4,000 restaurants and annual sales of $3 billion.

His motto: "You had better take care of the BY NORIMITSU ON1SHI Free Press Business Writer The Japanese government will open a temporary consulate in an undisclosed downtown Detroit hotel on Jan. 11, as officials seek a permanent office in the same area. The presence of a Japanese governmental office in the Motor City, the focal point of much cross-Pacific anger, will help smooth over nettlesome trade issues between the United States and Japan, officials of both countries predicted. "We need such governmental people," said Hiromu Mokumoto, a senior vice president of Mitsubishi International and president of the Japanese Society of Detroit, a business and cultural group. "They will surely head the effort to make both people aware of each other." Two Tokyo officials will open the temporary consulate next month and begin providing limited services, such as issuing passports and visas, until a permanent location and a consul general are selected.

Japanese officials are considering a handful of downtown buildings for a permanent site, said Genichi Terasawa, a consul in the Chicago office. "It will take several months because they will have to get authorization from Tokyo headquarters," Terasawa said. A permanent consulate will have a Tokyo staff of four, including the consul general, as well as local employees. "The new consulate will be very important for U.S.-Japan relations, so the figure might increase," Terasawa said. Terasawa said the temporary and permanent office locations be disclosed after the Japanese conclude lease arrangements and obtain approvals from the U.S.

State Department. The consulate will boost Detroit's image and improve business relations, said Gary Konop, director of Asian business in the state department of commerce's inter-' national office. "It'll raise the international stature of Detroit. It's a pretty gutsy move for them to go into downtown Detroit," he said. Konop said that more locals now might take advantage of exchange programs run by Japanese consulates, such as the Japan Exchange and Teaching program which sends Americans younger than 35 to teach English in Japan for a year.

BY CLYDE H. FARNSWORTH New York Times Dave Thomas Canada proposed puppy trade ban would breed resentment in U.S. ORONTO A new trade war is breaking out in an unlikely industry: dog breeding. The Canadian gov free-trade pact. Otherwise, puppies would be added to a broadening list of trade disputes between the United States and Canada that affect steel, autos, softwood lumber, beer and carpets.

The new regulation would revise Canada's Health of Animals Act to disqualify American distributors from selling Ameri- See PUPPY, PagellB pact with the United States and the General Agreement on Tariffs and Trade, the global good-conduct charter for trade. American trade officials are urging Canada to shelve the proposal in favor of negotiations, as called for under the ishing North American canine trade. The prospect has Washington worried. Under pressure from breeders, distributors and equipment suppliers, trade officials in Washington are warning that the proposed restrictions violate both Canada's free- customer. You have to give people their money's worth." Delta mulls pay cuts Standard Poor's said it is reviewing Delta Air Lines' credit ratings.

The airline, meanwhile, said it is considering pay cuts for early 1993 a year after it gave workers across-the-board raises of 5 to 8 percent. Delta lost a record $506 million for fiscal 1992 and lost $107 million in the first quarter of fiscal 1993, which ended Sept. 30. Delta has nearly 80,000 employees. The cuts would not affect Delta's 9,400 pilots; management is bargaining separately with their union for concessions.

ernment, responding to public unease about the health of thousands of puppies imported each year from the United States, is preparing new regulations that would severely curb the flour- Ford eyes Mazda deal to build cars in Asia In the United States, meanwhile, Ford's vehicle production capacity is stretched to the limit, and the No. 2 U.S. automaker might need to open or buy another called Autorama, co-owned by Mazda and Ford. "There are tremendous advantages to getting closer to Mazda," said Benton, who met with Mazda officials in Japan last week. But he added that Ford doesn't plan to increase its 25-percent stake in the financially troubled Japanese 1.

IK it Japan if it only exports U.S.-made vehicles. "If we're going to be a player in Japan and the Far East, we're going to have to develop product there, and we're going to have to integrate our operations, just as we do in Europe." Currently, Ford cars are sold in Japan through a dealer network 1 BY JOANN MULLER Free Press Automotive Writer Hoping to increase its sales in Japan, Ford Motor Co. is eyeing a deal with Mazda Motor Co. to build cars in Asia, Ford President Philip Benton Jr. said Friday.

During a year-end interview with reporters, the retiring Benton said Ford can't make a dent in U.S. factory soon, Benton said. Ford needs a second factory for its popular Explorer sports utility vehicle, Benton said. But he would not confirm reports that the site is See FORD, PagellB OfficeMax will buy BizMart office products chain Auction action for Land Rover Defender Land Rovers for AIDS charity The 500th and final North American Land Rover Defender 110 of the model year (it looks like a traditional safari vehicle) was sold for $51,000 at an auction to raise money for AIDS research. The winner, Don Wildman of Malibu, bid against actress Melanie Griffith last weekend.

The event raised $135,000 for AIDS research. The weekend also included the Land Rover 24 Hours of Aspen endurance ski race. Edited by Janet Braunstein from staff and wire reports BY CECILIA DECK Free Press Business Writer Kmart OfficeMax division lost a bidding war last year to buy BizMart a smaller chain of office products superstores. But on Friday, OfficeMax emerged victorious, announcing it is buying the chain now bigger for a lower price per store than Intelligent Electronics Inc. paid in June 1991.

"The more difficult the struggle, the greater the victory," gloated Michael Feuer, president and CEO of Cleveland-based OfficeMax will pay about $270 million for the 104 BizMart stores, or about $2.6 million per store. When Intelligent Electronics acquired BizMart, it paid $196 million for 57 stores, or about $3.4 nullion per store. BizMart's Dallas headquarters will be merged into OfficeMax headquarters in Cleveland, and BizMart stores will be renamed and converted to OfficeMax's format, Feuer said. Thirty BizMart stores will be downsized from sizes up to 40,000 square feet to the typical OfficeMax size of 23,000 to 25,000 square feet. tives.

Analysts praised the BizMart acquisition. Kmart stock closed at up 50 cents, and Intelligent Electronics stock closed at $11.62, up $1.75. "This is an exciting fit," said Walter Loeb of Loeb Associates in New York. "BizMart had been suffering under Intelligent Electronics." Patrick McCormack, analyst at Dean Witter Reynolds said the acquisi-. ton will add only about $500 million to Kmart's $38 billion in annual sales, but it fits in with the retailer's strategy of buildingts specialty business.

office products chain with 264 stores, just behind Delray Beach, Office Depot Inc. with 290 stores. Less than a year ago, OfficeMax had only 79 stores. In June it acquired OW Office Warehouse of Virginia Beach, a chain of 46 superstores, and it opened 40 new stores this year. It plans to open 20 more stores this year and 55 stores next year.

OfficeMax closed five stores after acquiring OW Office Warehouse. Kmart acquired a 22-percent interest in OfficeMax in 1990 and increased the stake to 92 percent Isfst year. The remaining 8 percent is held by Feuer and other execu The chains carry similar merchandise, but BizMart concentrated more on computers, which accounted for about 45 percent of its Isales compared with 15 percent at OfficeMax, Feuer said. Exton, Intelligent Electronics is primarily a distributor of microcomputers to franchised retail stores. "BizMart became sort of an office products superstore and computer superstore and lost its focus," Feuer said.

"They confused the customer." The acquisition catapults 4-year-old OfficeMax into a national operation and the second-largest Y01M0NEY Come back to the Free Press Monday through Friday far advice, information and news on personal finance..