Detroit Free Press from Detroit, Michigan • Page 32

Business briefing; Dow-Jones Industrials 1769.40, 9.14 Prevailing prime rate 7.5 Fixed-rate mortgage (30 20 dn.) 10.75 Six-month Treasury Bill rate 5.34 Donoghue Money Fund Avg.7-Day Yld. 5.38 AUTO FOCUS 1QC NYSE 11C MUTUAL FUNDS 13C Inflation rate (national) 2.0 Inflation rate (Detroit) 1.0 Michigan unemployment rate 8.9 National unemployment rate 6.9 Tax-exempt bond index 7.15 DETROIT FREE PRESS 8C bJnM. the ticIieF mart will spend 3 billion Japanese car output in U.S. to triple? The annual auto production capacity of Japanese firms in the United States will more than triple by 1990, to nearly 1.9 million vehicles, according to a new forecast by Exxon Chemical Co. Domestic auto output by the Big Three during that period will shrink by more than a million vehicles, to 6.2 million or less in 1990 from 7.5 million in 1986, predicts Exxon Chemical, a subsidiary of the giant oil company.

In a presentation in Detroit, Ronald Fornshell, Exxon Chemical's director of automotive development, predicted U.S. car sales will grow from about 11.1 million this year to 12 million by 1990, but all the growth will be realized by imports, with their sales climbing from about 2.8 million to four million. Imports together with so-called "transplants" Japanese-designed cars assembled in U.S. plants could account for nearly half of all U.S. car sales by 1990, Fornshell said.

The phony boxes bore the familiar Ford blue oval, but carried the initials "QRP." rev imxm Last rites or phony parts Ford Motor Co. bulldozed $100,000 in counterfeit auto parts into a landfill Wednesday to publicize the problem it says consumers should avoid. The parts destroyed Wednesday were the proceeds of a case which was concluded recently in U.S. District Court in Detroit. The firms sued by Ford, L.D.

Industries and Sherfield Enterprises, agreed to permanent court orders barring them from making further parts and agreed to pay unspecified monetary damages. Free Press Pholos bv PATRICIA BECK Some $100,000 in counterfeit auto parts were bulldozed into the landscape. in Michigan i Documents and testimony show Stoddard's use of bank emnloves Aug. 27, 1983, and Dec. 2, 1983, while to expand By BEVERLY HALL LAWRENCE Free Press Business Writer mart Corp.

executives said Wednesday the retailer will spend $3 billion to add 150 mart discount stores and 840 specialty stores in the United States and Canada by 1990. Aggressive store expansion plans by the Troy-based retailer are intended to "continue improvement in mart's four percent share of the mass-merchandise market," said Joseph Antonini, president and chief operating officer. mart stock closed on the New York Stock Exchange at $46, down $1 with 376,500 shares traded. UNVEILING THE plan to financial analysts Wednesday, Antonini said the bulk of store expansion will be in the specialty store group, which the company hopes will generate 18 percent of sales by 1990. In 1985, the specialty store division contributed $2.3 billion or about 10 percent of mart's $22.4 billion in sales.

The specialty division includes 192 Pay Less Drug Stores, 56 Builders Square home improvement stores, 986 Walden-books stores, 79 Designer Depots, and 168 Furr's and Bishop Cafeterias. Plans call for the addition of 250 Pay Less drugstores, 130 Builders Squares, 360 Waldenbooks and 100 Canadian Bargain Harold's Stores. mart's general merchandise subsidiary, mart Canada bought Bargain Harold's for $16 million in 1985. The Bargain Harold's stores are deep discount stores offering general merchandise, apparel and packaged groceries. In the past three years, mart has spent $913 million to acquire and build this specialty division group, and Antonini indicated that future acquisitions in specialty retailing will be explored.

"These acquisitions will be exclusively in retailing, most likely in the United States and they will be characterized as being in segments of retailing with above-average growth potential," he said. ANTONINI SAID mart will continue its efforts started in 1980 to modernize the chain's 2,340 discount mart stores as well as building 150 new stores. To take advantage of the favorable consumer reaction to the new apparel merchandise in mart stores, Antonini said, mart plans to allocate an additional 4,000 square feet of apparel in about 800 full-size stores in major metropolitan markets. Glenn Smith, president and chief executive of ficer of mart Apparel Corp. said, "Last year, mart stores did almost $6 billion in volume in family apparel placing us in the top five retailers in this country." To upgrade its chainwide computer system, mart is Installing a $500 million retail-automation program that will enable the company to better track consumer, buying patterns and replenish inventories more quickly.

Antonini said that mart's point-of-sale and store scanner cash registers will reduce customer check-out by at least 25 percent and will help reduce selling, general and administrative expenses by 1.5 percent by 1990. IN THE COMING years, mart will shift its mix of merchandise in the discount stores "to make selling space more productive," Antonini said. The development of "power departments," such as home-care centers, the Kitchen Korner and garden supplies will help emphasize areas where mart was not seen as particularly strong. Larry Parkin, executive vice-president of mart Stores said, "Our goal is to broaden our assortments, particularly in the higher price points of merchandise." "The real growth ahead for mart is selling higher-ticket, better quality merchandise at mart discount prices while continuing to emphasize lower-priced items," Parkin JOHN RYE, former chairman of one of Michigan's largest high-technology firms, was found guilty Wednesday of failing to report $1.3 million in income by a federal court jury after a two-week trial. Rye, 67, was chief officer of Lamb Technicon Corp.

of Warren, an auto industry supplier that designs and builds automated manufacturing systems. A UNION LAWYER claimed "complete victory" after a contempt of court ruling was issued against Somerset Inn of Troy and its manager, Scott Frickman. Among other things, the hotel was must cancel a requirement that workers ask permission to go to the washroom and must pay back wages to a union steward who lost her job after a three-week strike last year, said John Adam, lawyer for Hotel and Restaurant Employes Local 24. INDEPENDENT BANK CORP. of Ionia will pay a 10-cent regular dividend and 2.5-cent special dividend Oct.

20 to shareholders of common stock Oct. 10. GREAT LAKES FEDERAL Savings and Loan of Ann Arbor agreed to increase its third-quarter dividend by 33 percent to 10 cents a share, payable Oct. 17 to holders of record Oct. 3.

NBD BANCORP INC. said it had reached agreement to buy OmniBank Corp. of Wyandotte for $51 million. OmniBank, with $366.9 million in assets, is holding company for Wyandotte Savings Bank, which operates 15 banking offices in the Detroit area. NBD, the state's largest bank-holding company, owns 25 banks and on June 30 had $18.6 billion In assets.

THE LABOR DEPARTMENT has ruled that former employes of the shut-down Coleman Products plant in Iron River can apply for trade adjustment assistance benefits, which can include extended unemployment benefits, training, and job search and relocation help. MICHIGAN'S LOTTERY ranked sixth nationwide in revenues earned during the 1985 fiscal year, according to a Laventhol Horwath Gaming Study. Pennsylvania topped all states, earning more than $1.3 billion, followed by New York, $1.29 billion; Massachusetts, $1.23 billion; Illinois, $1,208 billion; New Jersey, $936 million; Michigan, $891 million; Ohio, $856 million; Maryland, $681 million; Connecticut, $344 million, and Washington state, $150 million. Bought a building in Ludington Sept. 1 3.

1 979, for about $34,000 and donated it to the Mormon church Dec. 14, 1981, when it was appraised at $80,500 to $92,500. Stoddard claimed a charitable contribution of $86,500 on his 1981 tax returns. Bought a building in West Branch Aug. 2, 1977, for about $22,500 and donated it to the Mormon church Dec.

12, 1978, when it was appraised at $45,770 to $55,000. Stoddard claimed a charitable contribution of $50,350 on his 1978 tax returns. Bought a building in Charlotte Dec. 11. 1980, for about $36,000 and donated it to the Mormon church Feb.

2, 1982, when it was appraised at $49,000 to $51,000. Stoddard claimed a charitable contribution of $50,000 on his 1982 tax returns. Also testifying Wednesday was Stoddard's mother Jennie, the 84-year-old widow of Howard Stoddard, the bank's founder. She said when bank employes added a closet to her Harbor Springs home, she asked them to give her the bill personally, and finally ended up calling the corporation when she did not receive a bill. She said she sent the bank a check for $1,584 to cover the cost of adding the closet to her home.

By GERTHA COFFEE Fret Press Business Writer ANN ARBOR Testimony and documents Wednesday showed former Michigan National Corp. Chairman Stanford (Bud) Stoddard used bank employes to improve the worth of buildings he donated to the Mormon church and deducted as a charitable contribution for his taxes. Government lawyers said Stoddard profited personally through the bank's work. They said Stoddard had buildings appraised just before donating them, and "it appears he had had (the work done) to have the appraisals higher." "His main defense is that the work was a charitable contribution by the bank, and that's why bank employes worked on the buildings. No defense has been raised as to why he should be able to go out and have bank employes work on the buildings prior to the time he donated them," said government lawyer Ellen Broadman.

Stoddard bought a building for use by the Mormons In Albion May 21, 1979, for $25,000. Mormon Bishop John Moser testified Wednesday that members of the Mormon church stopped using the building in November 1981. Documents reveal most of the work by bank employes occurred between the church was not using the building. Stoddard contributed the building to the Mormon church Dec. 12, 1983, and it has remained vacant since, according to government lawyers.

At that time, the property was appraised at $60,000 to $65,000, and Stoddard claimed a charitable contribution of $62,500 on his 1983 tax returns, the median of three appraisals. Moser said extensive work was done on the Albion building by bank employes, Including the donation of a used refrigerator and stove. The testimony came in the fifth week of a hearing in which the U.S. Office of the Comptroller of the Currency seeks to ban Stoddard from participating in federally insured banks and fine him $500,000. Stoddard, 55, was chairman of Michigan National Corp.

until July 1984, when he was ousted by the board amidst charges he misappropriated bank funds. Documents agreed to by government and Stoddard lawyers also indicate Stoddard: Bought a building in Oscoda March 8, 1978, for about $15,000 and donated it to the Mormon church Dec. 13, 1979, when it was appraised at $67,500 to $75,000. Stoddard claimed a charitable contribution of $71,250 on his 1979 tax returns. Even a Noid can't topple Domino's etcetera said.

Saturday hours might cut profits dealer By RICK RATLIFF Free Press Business Writer A new Domino's Pizza commercial features an animated clay creature called the "Noid," who specializes in ruining delivered pizzas by squashing them or making them cold. The Noid, however, cannot work his mayhem on Domino's pizzas and is brought to temporary justice when a Domino's pizza box unexpectedly opens, smashing him in the face. The 30-second ad, which will debut nationally Monday on all three networks, was develoDed bv HOUSING CONSTRUCTION edged up 0.4 percent in August to a seasonally adjusted annual rate of 1.82 million units, the first gain since April, the Commerce Department reported. THE UAW said it plans to launch a newspaper advertising campaign to outline the union's side in its 25-day selective strike against Deere Co. in Illinois and Iowa.

ABOUT 6,000 FLIGHT attendants for Republic and Northwest Airlines will vote by mail next month on whether the Teamsters or the Association of Flight Attendants will represent them in bargaining when the merger of the two air carriers is complete. By MARCIA STEPANEK Nike shoe commercials, MTV music videos, and "Return to Oz," a feature film. Brian Treisch, Domino's al marketing director, said the Noid "is a personification of consumer doubts about delivered pizza. The Noid emphasizes the Domino's Pizza difference The campaign will feature print and radio ads, and Domino's plans to have more commercials featuring the Noid. The first Noid print ad also will appear Monday in USA Today.

The campaign, which is the first Domino's campaign to use an animated character, replaces the chain-reaction campaign in which Domino's was hyped using more than 30,000 tumbling dominos. IN) Free Press Washinoton StaH WASHINGTON Customers might like it if more Detroit car dealers were onen mch Saturday hut enrh hours "probably" would erode dealer profits, a suburban Detroit car dealer said Wednesday. Robert ThomDSOn. oresident of Thomnsnn fhrvQlpr. Plymouth Inc.

in Southgate, testified at a government 1 iL.iiL. f.4 'i ti Compiled by SUSAN IHNE netinng mai me ueirou area nas a lot more dealerships per SQUare mile than most U.S. cities. VPt nnt nprpssarilv mnrp Group 243 an Ann Arbor ad agency using the Portland, animation facilities of Will Vinton. Vinton also has produced animation for Aim toothpaste and Domino's Pizza commercials will fea customers.

Therefore, he said, dealership rivalry is more ture an animated clay creature called the "Noid." jl 040 53 tax hotline cail 222-8769 intense man eisewnere ana uniform sales hours among dealerships is desirable for salespeople and many dealers. Thompson, 36, a former American Motors Corp. fleet manaeer and zone rpnrpspntativp in uachinotnn rweionri and North Carolina, also said he repeatedly has resisted demands from Teamster Loral in inrliirfp Sntnrrtav Court told some ENA stockholders were advised not to accept $250 offer closings in his contract with the Southgate sales staff. "I refused to cite specific hours because if one of my competitors changed his or her hours, it would tie my hands and I would lose business," he said. Thompson said his service and parts shop is open Saturdays.

Thompson's enmmpnts wprp a rtpnarti testimony in the Federal Trade Commission hearing in which i i i ucuuii aieti ueaiers nave oeen cnargea witn illegally conspiring to limit showroom hours. During a break, eovernmpnt lawvprs sairl Thnmncnn'e testimony was the first time a dealer has acknowledged a link hptwppn Satnrrlav viudin aim ucaici amp yi unto. Previous dealer witnesses have said closing on Saturdays and upplronlc llae nrnmntut k. i Rent is not deductible QI sold my double wide mobile home this year and moved into an apartment. Would I be able to deduct my rent for tax purposes? A Rent for your personal residence is not deductible under present law or the new tax proposal.

Would I be able to income-average my 1986 Income should the new proposal be enacted? M.C., Livonia. A Yes. The proposal would repeal Income averaging beginning in 1987, therefore 1986 would be your last opportunity to take advantage of the current Income-averaging provisions. Questions about the tax reform plan now before Congress are being answered for Free Press readers by tax experts at Seidman A Seid-manBDO, Troy. We'll print answers on the first business page Sunday-Friday.

Call 222-8769 anytime. piuuiyttu uy uuiuii iiuiimuauun ana an overall lack of showroom traffic during Hip into iqroc mH By BERNIE SHELLUM Free Press Business Writer After authorizing their family-owned company to buy back 40,000 shares of its own stock for $250 a share, some directors of the Evening News Association privately advised their close relatives to reject the offer, an attorney for former ENA stockholders who are suing the directors argued Wednesday. In his opening statement at the trial In U.S. District Court, attorney Paul Brown said ENA directors "called up relatives and said, 'Don't Brown did not identify which directors he was referring to. Brown represents 26 former ENA stockholders who contend that the ENA and its directors misled them aboutlhe value of their stock by with holding information they say federal securities laws required the company to disclose at the time of the buy-back.

Twenty-four of the plaintiffs sold stock to the ENA, and two sold ENA shares to Booth American a rival bidder, for about $275 a share. ON BEHALF OF the defendants, attorney John McCrory, of Washington, D.C., argued that by informing all of the stockholders that none of the directors would sell any of his own stock in response to the buy-back offer the directors had delivered "a clear message" that they believed the shares would be worth more in the future. McCrory also noted that former ENA Chairman Peter Clark did nothing to dissuade his father, the late Rex Clark, from selling 8,034 of his ENA shares to the company, "thereby diminishing his own inheritance." Peter Clark was the only offspring of Rex Clark, who died earlier this year. The buy-back was followed by a rapid run-up in the price of ENA stock, culminating in an August 1985 agreement by Gannett Co. Inc.

to buy all of ENA's shares for $1,583 a share or 1 ,333 a share more than EN A had paid eight months earlier. ENA was the parent company of the Detroit News and other media properties. IN A TRIAL that began Wednesday before U.S. District Judge John Fei-kens, the plaintiffs are seeking damages of more than $28 million the difference between what they received from ENA and what they would have received fpm Gannett if they had kept their stock. early 1970s, the time when most dealers decided to close permanently on saiuraays.

If most dealerships were open Saturdays, he said, area car salesmen probably would unionize to preserve their five-day workweek, thus increasing business costs to dealers, costs wincn mumpson saia wouia "De totally passed on to the consumer" by dealers in the form of higher prices. If salesmen unionized, "dealer costs would go up substantially," Thompson added. "I feel that the Detroit market is of such a competitive nature, price of (cftywide) union contracts would be totally passed on to the consumer.".