Press and Sun-Bulletin from Binghamton, New York • 8

The Evening Press Business 4-C Nov. 7. 1974 Ji I Business Beat Brief Coal Strike Expected WASHINGTON (AP)- The chief coal industry negotiator in contract talks with the United Mine Workers (UMW) says an agreement could be reached by this weekend to keep short an expected nationwide miners strike. Guy Farmer, chief negotiator for the Bituminous Coal Operators Association, said Wednesday he thought the two sides might reach an accord "in two or three days." provided no new snags develop. "I don't think we're that far apart.

That's not to say we don't have some real knotty issues which need to be resolved." Farmer said. UMW President Arnold Miller said there could be a tentative agreement before the current contract runs out at midnight Monday, but not in time to prevent at least a brief work stoppage. Miller would not comment when asked about the possibility of a breakthrough this weekend. "What we do every day (at the bargaining table) will affect the duration of a stoppage." Miller said. Under the union's ratification dures.

it takes about 10 days for the membership to approve a tentative settlement. nun Anti-Utilities Activists Gather Representatives of the Community Action Agency in Binghamton will attend a conference of community groups interested in regional action against the power-generating utilities. Attending the meeting, which will be held at the Holiday Inn in Ithaca tomorrow and Saturday, will be 70 activists from community and labor organizations throughout the East. A major topic of discussion will be the creation of an "upstate power project" which will coordinate regional action against rate increases and expansion plans of New York State Electric Gas, Rochester Electric Gas and Niagara-Mohawk, meeting organizers said. The conference is being sponsored by Cornell University's Human Affairs Program.

Earnings Reports Kroehler Manufacturing Co. Kroehler Manufacturing Co. reported net income for the third quarter ended Oct 6 of $348,000 or 27 cents a share before an extraordinary credit estimated to be $5,000 for an insurance settlement of tornado damage. Net income during the same period in 1973 was $761,000 or 59 cents a share. Sales during the 1974 third quarter were $42,499 million, compared with $43,877 million a year earlier.

Kroehler, the nation's largest upholstered furniture producer, has its largest plant on Binghamton's East Side. Columbia Gas Systems Columbia Gas Systems. which owns Columbia Gas of New York, reported net income for the third quarter ended Sept. 30 of $6,838 million or 21 cents a share on sales of $237.99 million. During the previous year Columbia said net income was $8,529 million or 26 cents a share on sales of $177,455 MESS AIR PHOTO BY GEORGE E.

BOWEN Sauare-foot store is scheduled to onen Oct. 1 197S The rnn(4mr. COVER STORY A couple of hundred yards north of the Montgomery. Ward store at Oakdale Mall in Johnson City is the beginning of a new Fowler, Dick and Walker store. The tion of the Fowler's store and a Bradlee's department store are part of the second phase of building at the mall.

Justice Department Files Restructuring Urged to Break IBM Hold In the Tier any competitor over time will exist at the tolerance of this dominant company." RCA internal documents reveal similar agonies. "To attack IBM headon amounts to attacking a well-led army with a commando company in an open field." an RCA executive said in a memo in July 1971. The department said the evidence it is amassing for trial "will be essential to the court in fashioning effective relief The purpose in bringing this case was to obtain effective relief and any thing less than major structural relief would leave that purpose unfulfilled." the millions that have been examined In the pre-trial brief, the government gave the most comprehensive, integrated outline of its case since filing a complaint against IBM on Jan. 17. 1969.

the final business day of the Johnson administration. The company, through a spokesman at IBM headquarters in Armonk. N.Y.. said the brief is onesided "like all briefs in an advocacy proceeding" and can be answered only with a reply brief. The department depicts IBM as a giant whose 1972 profits were exceeded only by civil proceeding, he will preside over the biggest anti-monopoly trial in the 84-year history of the Sherman Antitrust Act.

The trial "can be expected to be a long one in part because IBM's power bases in the relevant markets is very broad, touching a very large percentage of the commercial establishments that are the heart of U.S. commerce and industry." the antitrust division said in the brief. "Its conduct in maintaining that broad power base will be largely reflected in IBM's own documents, culled down from those of General Motors and Exxon, accounted for two-thirds of the total earnings of all computer mainframe manufacturers and amounted to a 17 per cent return on invested capital. Even such corporations as General Electric and RCA quit the computer business in the face of IBM's unmatched power, the department A 1970 GE document cited in the department brief said. "If our studies have any validity, they suggest that no one dwarf can make more than a temporary, highly selective impact in this industry.

In the absence of now unanticipated severe constraints on IBM. By MORTON MINTZ Tht WasMngton Pott WASHINGTON The Justice Department said Wednesday that only a major restructuring of IBM will break its power" and bring true competition to the computer industry. The company said the department was presenting "only its side." The government urged the break-up of 'IBM in a 338-page pre-trial brief filed with Chief U.S. District Judge David N. Edelstein in New York City.

After almost' six years of skirmishing in the complex B.T.S. Tiretown. the tire store chain, has opened its fifth store, located in Norwich. The store employs six persons, a company spokesman said. A new restaurant at the Chenango Country Gub.

Chenango Bridge, opened yesterday. Owned by J. Clifford Signor of Binghamton. the restaurant will be run in conjunction with other facilities at the club, which opened in March, a spokesman said. Gas Cutbacks for 8 Area Firms Getting Rough The Broome County Chapter of the International Management Council will meet at St.

John's Memorial' Center. Johnson City, Nov. 12 at 6:30 p.m. Paul Staiger. the featured speaker, will discuss "how to handle the problem employe." Market Barometer creased in price during the past year.

He said that every part of the business can be switched to oil heat except the dryers. Kradjian said that even with the 50 per cent reduction there will be enough gas to operate the dryers. But he added that prices may be going up to allow for higher oil prices. He said that oil prices have gone from 21 cents a gallon a year ago to 35 cents a gallon of number two heating oil this year. He said that with the gas allocation in force oil will have to be used from December through March.

Kradjian said that he doesn't plan to reduce any part of the business operation. tion," Hanson said. He said he felt basing the allocations of fuel this year on a company's 197172 consumption was "hardly fair." "We cut the devil out of our consumption last year. It makes it rough," he said. FAIRBANKS INSTALLED a $200,000 boiler heating system last year to make its gas consumption "infinitely more efficient." Hanson said.

"We can't make our plans now until we know what we're getting," he said. Harry S. Kradjian. manager of Bates Troy said that almost every product used in the laundry business has in company involved so that we can use our expertise in assisting them in meeting their allocations." he said. The Binghamton area companies involved in the gas cutbacks are Endicott Forging Manufacturing Fairbanks Bates Troy Binghamton Brick GAF IBM Specialty Foods Corp.

and Binghamton Container Co. Inc. WILLIAM S. WORK, president of Endicott Forging Manufacturing Endicott. said he was "concerned" about the additional natural gas curtailments effect on the company's production.

"Wehave several plans (for adjusting operations to meet the cutback) under consideration, but we haven't made "More gas was used during September and October than was anticipated. We have tak- en gas that would have been used during the winter, and used it to keep up with demand." he said. THE ALLOCATION will be effective through March 31. and will affect 15 industries throughout the state. Weinkauf said.

There are no planned cutbacks for homes, he added. "This doesn't mean that if problems become more acute that we won't expand beyond the base of the 15 largest users. Any increase or decrease will depend on weather, conservation and changes in future gas supplies." he said. "We are working with each any decision yet. Call me back in three months and I'll tell you what its effect has been." he said.

Work said he was consulting "outside people" in an attempt to adjust company operations to the reduced gas allotment. As far as production suspensions and employe layoffs, he said. "That's always a possibility." James S. Hanson, vice president of Fairbanks a Binghamton valve manufacturer, said. "The gas company told us last week they were going to send out teams to go to various large users and determine a fair way to cut back (allotments).

"We know they will be cut. but how much is the ques By STEPHEN CARPENDER and SUSAN SCHWARTZ Beginning Dec. 1 the eight largest natural gas users in Broome County will have their supplies cut 50 per cent based on 1971-72 consumption. Charles E. Weinkauf district manager of Columbia Gas of New York said that the reduction, which ernes on top of a 30 per cent usage cut throughout November, is necessary because of a supply deficiency projected by the wholesale supplier.

Columbia Gas Transmission Corp. "Columbia System has increased the reduction to us. and we have in turn reduced allocations to our major industrial suppliers to meet the demand." Weinkauf said. A Justice Department motion to restructure Inter national Business Machines late Wednesday accelerated selling after the market had moved strongly higher. The motion, which restated the Justice Department's 1969 antitrust suit to break up the computer giant, was "unsettling" to the market, one analyst said.

Other analysts were disturbed the Dow Jones average failed to close above the 680 level which it has approached several times recently. "This is a psychological resistance line." one observer said. Area Firms NEW YORK (UPI) The stock market, uncertain about coal negotiations and concerned about a Justice Department motion, opened lower Thursday in moderate trading on the New York Stock Exchange. The Dow Jones industrial average, which lost more than five points Wednesday, was off 1.33 at 667.79 shortly after the opening. Declines led advances.

146 to 103. among the 367 issues crossing the tape. Turnover amounted to around 330.000 shares. Most investors believe a nationwide coal strike by the United Mine Workers is inevitable, but there were hopes it would be a short one. As the Nov.

12 contract expiration deadline approaches without a settlement, however. Wall Street has become nervous. 5 Steps to Figure Year-end Tax Strategy now order to triple your benefit next year? A. No-for first, this tax reform may not even be passed and taxes alone should never govern your investment strategy. Also after offsetting your losses against the $1,000 of ordinary income this year, any losses that remain unused may be carried forward indefinitely.

When you carry them forward, they still retain their status as long-term or short-term losses and the new $3,000 offset would apply to these carry-over losses. Sylvia Porter Under current tax law definitions, the gain or loss you realize on a capital asset (stocks, bonds. reaL estate) you've held for more than six months is long-term. Either (1) half of your long-term gain is taxed at your regular rate in the regular way. or (2) the first $50,000 is taxed at 25 per cent and half of any excess is taxed at your regular rate.

The gain or loss on the asset you've held for six months or less is short-term. Short-term gains are taxed as ordinary income. Q. Is there any year-end tax-cutting strategy for you. the taxpayer who has invested most of your free cash this year in high-interest savings certificates, money-market funds and bonds? Can you make any wise moves if you now have lots of interest income fixed and taxable just as your salary is taxable and if whatever stocks you did buy in 1974 you hold at sickening losses? A.

Yes. Go through your list of stocks to see if you have any that qualify as short-term losers held for six months or less. If these appear likely to turn into long-term losers, take a sufficent loss to offset up to $1,000 of your interest income. For. as Prentice-Hall's top tax experts emphasize, you can use net short-term losses to offset up to $1,000 of ordinary income dollar for dollar.

If you have long-term losses, you can use them too to do the same job. but it will take $2 of long-term loss to offset $1 of your taxable interest income. Q. WHAT IF YOU want to stay in the stock because you think it is heading up and possibly, quite soon? A. If you're not anticipating the big rise in the stock within the next month, sell to take your loss for tax purposes, wait 31 days and then reinvest in the same stock.

You must wait the 31 days because otherwise, it's a "wash sale." and you can't deduct the losses real tax trouble. (It's a wash sale if. within 30 days before or 30 days after the sale, you buy the same securities you sold at a loss. If you're afraid to wait the 31 days because you might miss out on the action, invest in a similar stock in the same industry. If the industry is hot and you buy a comparable company, your new stock almost surely will go up too.

1 The following quotations are turniihed by E.F. Hutlon Co. and represent an indication ol current market value in trading as ot about 10:30 a.m. today. 8id Asked Atteqheny 5' Bank of NV 37 Bankers Trust NV 37 '1 Becton-Oickinson Wt Bendi- 21 Champion Products II JH Charter NV 30 Columbia Gas 21 '4 Crowley's 3' 3 Fays Drugs 3' GAF Vm Gannett 33 GE 3 Gladding IBM in Keith-Clark 'b 7 Kroehler Wit 10H Lincoln First 16 16V LS.Oood Vi Maple Press Marine Midland 17 McDonough 7'i 74 Melville Shoe 6' Morton-Norwich 13-k 17 174 Raymond Vh Vi RoDintech 32 Sears.

Roebuck S34t Sinqer 17 Spaulding 71 8'4 Subaru of America I Union V't Universal Instruments Victory 2'i 3' Yesterday's Slocks' NEW VORK (AP) Dow Jones closing stock averaqes: 30 Indus. 669.13 -5 63 or 0 3 per cent SOTran. 153 5S 0.50 or 0.33 per cent IS Utile. 69.69 or 0. IB per cent 65 Stocks 313.77 or 0.43 per cent Saly 23.930.000 shares.

Franklin Bank Acquisition OK WASHINGTON (AP) The Justice Department indicated Wednesday it had no objection on antitrust grounds to the acquisition of the Franklin National Bank of New York by a European banking group. However, the department's antitrust division revealed in a series of letters released Wednesday that it had raised questions about proposals that three other banks acquire the assets and assume the liabilities of Franklin National. The bank was declared in-. solvent before its assets were purchased last month by the European-American Bank Trust Co. of New York, which is jointly owned by six European banking institutions.

BEFORE YOU CAN make any intelligent yearend tax strategy decisions, you must figure out exactly where you stand. So: (1) Add up all your long-term gains (if you have any after prolonged stock market disaster.) Add up all your long-term losses. Offset the totals against each other. The result is your net long-term gain or loss. (2) Dp the same thing with short-term gains and losses to find your net short-term gain or loss.

(3) Compare the net long-term total with the net short-term total. If you show gain in both departments, treat both separately. Add the short-term gain to ordinary income. Compute the long-term gain under the rules shown above. (4) If you have more net long-term gain than net short-term loss, offset and treat the result as your long-term capital gain.

If your net short-term gain exceeds your net long-term loss, treat the net result as short-term gain. (5) If you have both net long-term and net short-term losses, use them as this column has suggested and carry over an rinvt vpar. i I THE SPECIAL RULES for capital losses are (1) net short-term losses can be used to offset up to $1,000 of income $1 for (2) net long-term losses offset up to $1,000 of ordinary income but only on a $2 for $1 basis. If tax reform legilsation before Congress is passed, long-term gains would be given more favorable treatment, depending on the holding period. Moreover, capital losses could be used to offset as much as $3,000 of ordinary income in one year.

O. ShwM you then hold off taking any paper losses "i ft r-i i fci ft irSnfhi i ftti aft t..