Star Tribune from Minneapolis, Minnesota • Page 8

"'O Minneapolis Tribune Tuesday, March 28, 1978 Business news Concern over tighter credit drops Dow Jones 3.29 points Migyf rw' I Miller fears slack in economy if rate of inflation rises 18.87 million shares from million shares Thursday. The mar. ket was closed Friday. Prices on the American Stock Ex change finished higher and the market-value index rose .30 of a point to 128.31. its highest level since it was set up in September 1973.

Advances led declines by 309 to 263. The NASDAQ industrial index fell 0.14 of a point to 110.30 and the composite index dropped 0.09 of a point to 105.30. Options volume on the Amex was light; 29,367 contracts were traded, down from 29,864 Thursday. marine and sports equipment, lost to 14. The company reported Thursday that it expected lower first-quarter earnings.

Sony led the active list and closed unchanged at 7 on a turnover of 535,800 shares. There was no news to account for the activity. Yates Industries, a producer of copper foil, gained 1 to 13. The company said it planned a cash tender offer for 400,000 of its common shares at $15 a share. Eaton, a manufacturer of auto parts, gained to 34.

Its directors approved repurchase of up to 500,000 shares of Eaton common stock in the next five years. Turnover on the Big Board fell to HI Associated Press Washington, D.C. The chairman of the Federal Reserve Board, G. William Miller, said Monday that if inflation continues to worsen, economic growth could slacken, possibly resulting in more unemployment. "In the absence of a strong anti-inflation program, events may require us to make some adjustments," Miller said.

He said the government also will need to act soon to reduce the nation's reliance on oil imports and, if Congress fails to enact a crude-oil equalization tax, he would favor an oil-import fee of $5 to $6 a barrel. Without an energy program and without progress against inflation, Miller said, "we might not be able to see the economy grow as fast as we would like." He said it appears that inflation has worsened in the last few months and "looks like it will be above" the 6-percent rate projected by the Carter administration for this year. He also said an economic slowdown probably would occur more or less automatically if inflation begins to worsen seriously, because it would lead to higher interest rates, which would reduce business investment and discourage housing construction. Miller said the government should take steps to show it is serious about fighting inflation and such action would give it credibility in asking private businesses and labor unions to restrain their price and wage policies. He suggested reducing a planned increase in federal pay from 6.5 percent to 5.5 per- Stocks at March 27, 1978 NYSE Mon Thur NYSE Index Close Chg.

Index 49 630.23 Industrial 52.840.29 Transport 39.37-0 14 Utility ..39 45 0.06 Finance 51.M-0.24 Dow Jones Dayton Hudson completes sale of 9 shopping centers G. William MiUer cent, placing a lid on the budget deficit and increasing sales of timber from federal forests. He said a strong anti-inflation policy also would help support the dollar on world money markets. He said that if the economy slows there probably would be even bigger budget deficits than the nation is experiencing because of increased federal transfer payments for such things as unemployment insurance payments and welfare programs. Centers involved include five in Michigan plus Southdale, Brook-dale, Rosedale and Ridgedale in the Twin Cities area.

Under the purchase agreement, Dayton Hudson's real estate group, Dayton Hudson Properties, will manage the centers under a long-term contract. Spokesmen for Dayton Hudson and Equitable said the sale will "have no material effect" on stores in the shopping centers. Dayton's, Hudson's and other Dayton Hudson retail outlets in the centers will continue under their present ownership, it was said. The sale of the centers is expected to be completed in May. a glance Dow Jones averages Open High Low Close Chg 30 Ind 755 20 758 14 750 52 753.21 3.29 20Trn 207 88 208 95 205 59 20681 15 UN 105.75 106.29 105 21 105.72 0 07 65Stk 266.81 268 00 264.87 266.05 -0 9 Amex Amex closing Index lts.ll Apprex.

fetal sales Most active Volume Close Chg. Average STPCoro 117,400 AmdahlCp ...105,900 ShenanOII 89,900 POE 9.30of 88,700 StdMelals 75,000 HouOilA 70400 Alleg Airl .69400 CMICocp ......69,400 IntSvsCont 63.600 Asamera ...57400 21 47t 2 79J te 26 9'A 20H 1 5 20 Vt lll Amex gainers Last Nel Pet. Simplex Ind 5' 20 Nexus Inds 2 'A 14.3 Punla borda Is 14J Roy Palm Col 2 14.3 ThorotAS JI 13 Amex losers Last Net Pet, Dvnaiect Vi 10.1 UvlndW! 2 'M 8 7 Weshngtn Horn '4 13 Berg Ent Inc 3- 7.4 Cameo Inc 114 9 Advanced 579 Declined 765 Unchanged 509 Total issues 1852 New hlgni 44 New lows 27 7)7 609 505 1831 66 22 Approx. total sales 11,870,000 Most active Volume Close Chg. Sony Corp 535.800 7 SearsRoeO ...478,600 22! AmTT pfB ...357,100 48 Carrier Cp ...280,800 1614 54 Pittston Co ...251,400 2214 4 Fla Pow 237,400 30' 4 Clllcorp 227,300 I9H Brit Pel 214,500 14V Kmart 214,400 23-te Boeing 202,200 33Vi I1 Merck Co 184,900 48' 1H USSIeel 183 400 26 Weston El ....178,600 16 4t Pan Am 175300 5 Berkev Pho .173,900 6 1 NYSE gainers Last Nel Pet.

FarahMfg 4 115 Yalestnd 13 15.6 ChlMllwCpPf 1V 12 8 Bormans Inc 3'1i 12,0 CMMIIwCp 7 105 NYSE losers Last Net Pet Venice 'A 10.5 Superscope 10' IV4 103 Akiona. 13 l'A 8 8 MestaMch 21 I3 7.6 Chris 9 a 7.2 snm 11 1 1 1 aeaULaJaeJeaaUi I I 1 I 1 in points Monday Signing of a definitive agreement under which Dayton Hudson Corp. will sell nine shopping centers, including four in the Twin Cities area, to Equitable Life Assurance Society of the United States was announced Monday. Terms of the agreement are essentially the same as those in a preliminary agreement announced in October 1977. The purchase price will be not less By Alexander R.

Hammer New York Times Service New York, N.Y. Concern that the Federal Reserve Board may tighten credit to combat inflation sent the stock market lower Monday in slower trading. The Dow Jones industrial average finished down 3.29 points at 753.21 and losers on the New York Stock Exchange outnumbered winners 7 to 5. Federal Reserve Chairman G. William Miller said last week that he would seek tighter credit if the recent acceleration of inflation continued and analysts said yesterday that Investors were worried that the government would report a sharp increase in the Consumer Price Index today.

Traders generally ignored the news that the United Mine Workers had returned to work after a 110-day strike. Another negative factor was the dollar, which fell to a low against the yen in Tokyo. European currency markets remained closed because of the Easter holiday. Reflecting the weaker trend yesterday, 10 of the 15 most actively traded issues fell, two rose and three were unchanged. Sears, Roebuck dipped V4 to 22.

The stock has been under pressure since the company reported a 19.5-percent decline in quarterly earnings. Alaska Interstate, a natural gas distributor, fell 154 to 20 after an increase of 2 Thursday. The company said it knew of no reason for the activity. A big loser was Superior Oil, which dropped 7 to 258. On Thursday, Superior reported 1977 earnings of $15.63 a share, up from $12.84 a share in 1976.

Some analysts had expected the company to report an even larger increase. Inland Container, which makes corrugated fiber boxes, dropped l'g to 26i8. The stock rose 6 points on takeover speculation last week. General Tire and Rubber, which reported a decline in quarterly profits, dipped to 24. Brunswick, which manufactures 4.V regional index averages of 85 securities of malor firms In Minnesota, North Dakota, Montana, Iowa.

Nebraska end western Wisconsin; compiled end reported dv Dain, Kaimeo 4, Quail. Inc. Indices as of Dec. 31, 1965. Cng Chg Food 1314 -017 130 93 0 02 Finance 109 77 0 62 160 35 0 12 Retail 132 27 0 00 7 49 0.29 Trans.

93.58 0.80 Survey finds consumers expect higher inflation Industrial NASDAQ index High Low Last Chg. Comp ...105.36 105.21 105 30 -0 09 Inds 110.41 110.20 110 30 0.14 Tran 95.76 95 30 95.49 0.12 Ulil W1.25 100.97 101.10 0.15 Apprex. total salts .7.444,700 f-wV Kill 1 it- i 1 1 1 14- 10- 0- -4- -16-I 1 I Price change DKQ Statistical Dakota, South based on 100 Comp. Ind Mtg Utility What! You haven't seen the Kodak copier in action? See it now March 29 through 30. 0 than $185 million in cash, and Equitable will assume existing mortgage debt totaling about $120 million.

The agreement also calls for possible additional payments to Dayton Hudson in 1979 and 1980 if the centers perform beyond certain levels. The formula could provide additional payments of as much as $50 million, the companies said. Dayton Hudson said last fall that the proceeds of the sale will be used for corporate expansion. worsen, researchers said. One in 10 respondents said inflation was the main reason they doubted business conditions would Improve.

On the average, consumers said, they expect prices to increase 7.8 percent in the next 12 months the highest expected rate of inflation the survey has found since the recession years of 1974-75. And a greater portion of respondents than at any time in the last three years, 62 percent, said inflation was causing more economic hardship than unemployment. Confidence in the government's ability to combat inflation remained at the low levels reached late last year. Just 12 percent rated the government as doing a good job; 26 percent said it was handling inflation poorly. The university has conducted the survey since 1951.

government payments. A second crucial fact is that farm incomes fluctuate much more than the incomes of nonfarm earners. As their costs go up and prices paid to them drop, many farmers are turning to other sources of income. Today, nearly 60 percent of the income of farmers in this country comes from nonfarm sources. At the lower end of the income scale, the trend is toward full or part-time jobs In factories; at the top, the reliance is more on investments.

Almost 40 percent of land in agricultural production today is leased. The farmers working this land neither own it nor receive the prime tax advantages of the actual landowners. Most notable of these tax benefits is that when farmland is sold at a profit, the gain is treated for income tax purposes as a long-term capital gain and therefore is taxed at a favorable rate. Tomorrow: Complex price-support programs. General Mills advances two Bernard Loomis, president of Ken-ner Products a subsidiary of General Mills, has been elected a group vice president of the parent company.

Joe Mendelsohn III, who was senior executive vice president of Kenner, has been named president of the subsidiary and a vice president of General Mills. Loomis now heads General Mills's craft, game trod toy group. Associated Press Ann Arbor, Mich. Consumers don't expect business conditions to improve in the near future, but they don't expect them to deteriorate much either, according to a University of Michigan survey released Monday. Uncertainty continues to cloud spending plans for the average consumer, according to the university's latest Survey of Consumer Attitudes.

The Index of Consumer Sentiment, based on a February 1966 base of 100, was 84.3 in February; it was 83.7 in January. Researchers said the modest rebound in optimism was largely confined to families with incomes of more than $10,000. Fifty-four percent of the 1,276 people interviewed nationwide expected business conditions to remain the same for the next 12 months rather than to improve or Second in a series You, a city consumer, can begin to understand protesting farmers only if you gain some knowledge of what farming is like and how dramatically it is changing. The first thing all of us must grasp is that, while retail prices are rising and will be up in 1978 by at least 4 to 6 percent, not much of this will be translated into higher income for farmers. It will "disappear" into costs of processing, packaging, transportation and labor charges all along the line.

Ninety-nine percent of U.S. farms are still family projects, but there are many huge corporations in agribusiness. In general, corporations play a major role only in fruit, vegetable and parts of the poultry industries. But you will find very large farms some incorporated, some not in many states. Large-scale hog-feeding operations are emerging in the Mid west.

Heavy use of machines, fertilizers and pesticides are as muclw a part of family farming as they are of corporate operations. The standard measure of farm size today is not the number of acres owned or the number of cattle raised, but the value of production sold or the "sales category." The "classic family farm." as an illustration, reports annual sales between $20,000 and the average farm family in this sales class disclosed a net before-tax income of $13,000 in 1976. with about 3 percent of this from direct V) I Sylvia rt1lPorter Customers tell us the Kodak Ektaprint copier makes the best copies in the business. At a speed of 4200 copies an hour. And it comes with a wide choice of automatic features: Reduction copying feeding and collating automatic finishing for completely finished sets.

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