IBM Antitrust Suit Dropped

21 I'UK HKKAU). Kvi., Jaii. 8, 1982 '82 outlook tor Wall Street uncertain may be turnout... page 3 members of the Council of bing toward the 1,200 level over the closely to see how badly the reces product to increase by 0.1 percent in By Frank W. Slusser More of the same is expected in Elconomic Advisers and the Office next two years and other, broader sion has cut into corporate profits 1982, with all of that increase com the early part of 1982. But some of Budget and Management, in a UPl Business Writer averages also reaching all-titiie and what the slump will do to divi ing in the second half. The ad things should change around the major revision, predicted the 1962 highs. dend payouts. The gross national ministration early in the year had NEW YORK - The 1982 outlook middle of the hew year If Reagan federal 'budget deficit would be William LeFevre, Purcell product Is expected to plunge forecast a growth of 4 percent. for the stock market is about as cer administration projections and around $109 billion instead of 942 tain as President Reagan’s plans to those of many private economists Graham vice president who is con anywhere from 4 to 7 percent in the Manchester, Conn. THE BEST news that has billion without spending cuts and Bitterly cold cut huge budget deficits or the date prove correct. sidered the unofficial historian of fourth period. reached the investment community revenue measures. when the recession will end or the Wall Street, believes the Dow It is difficult to tell whether the tonight, Sunday Sat., Jan. 9, 1982 average will rise 13 percent in 1982 market has discounted that news is that inflation may finish under 10 day the prime rate will drop to 10 I THE RECESSION should be en In fact, the leaked reports said, "because that is the average since already. It gave signs of doing so in percent in 1981 for the first time in 25 Cents percent. ding about that time and the stock the deficits would be more than $100 — See page 2 . the war when the Republicans are in late Noveinber but the rally petered three years. TTie rate has fallen The 1982 forecast also may be market, which bistoricaily has billion for the next three years, with office.” out In early December. steadily from IS percent in 1979. ’The about as stable as crisis-ridden begun an upward movement at the red ink totaling $162 billion in 1984, a But in the immediate future, “ Hopefully, a good part of this decline has resulted from the reces Poland or the Middle East or Latin ciimax of an economic slump, year President Reagan originally many analysts believe the stock recession is behind us,” Robert sion and the Federal Reserve’s America. should be into a rally. , policy of keeping credit tight. TTie had hoped to balance the budget. The past year, filled with new Many investment experts agree market still will test the lows set on Ortner, chief Commerce Depart Fed has bera under pressure to economic plans, rising interest with the White House that the tax Sept. 25, when the Dow industrials ment economist, said in mid- December. “ We’re still thinking of ‘ loosen its reins but Chairman Paul rates, a recession and a declining cut that goes into effect next July hit 824.01 before launching a major new advance. an upturn by spring.” Voicker has said his battle against REAGAN ADMI’TTED last fall market-, was a difficult ope ^ r Wall will have a significant impact on the those goals could not be met but Street just as for everyone else in economy and on the stock market. Murray Weidenbatim, Council of^ inflation was paramount. Wall Street has been staggering gave no indication the deficit would the country outside star enter Analysts said they could see the IN TH E FIRST weeks of the new EkMnomlc Advisers chairman, said' since Dec. 7 when it learned be so large. tainers and athletes. Dow Jones industrial average clim year, investors will be watching he expects the gross. national IBM antitrust suit dropped — Manchester at Work- charged IBM — which has Both sides rested their cases last WASHINGTON (UPl) - The ad A memo to Attorney General said Baxter, in charge of the Barr told U.S. District Judge David June before Edelstein, who has William French Smith said a study department’s antitrust division. Edelstein that IBM “ said at the worldwide annual revenues of $23 ministration dropped its landmark presided over the trial for all of its Consultant: Jobs will of the case — the longest civil start of this case almost 13 years billion and U.S. revenues of $11 13-year-oId antitnist suit against He said it was “sheer coin billion — is monopolizing the six years. International Business Machines proceedings in U.S. history — con ago that the government’s position cidence” that the case was dropped general-purpose computer industry Corp. Friday with an admission that vinced the government there was was without merit. Following Ronald Reagan’s elec only hours after the government an and should be broken up. In his the government probably could not little likelihood it could win. “ IBM has been completely vin tion, there were reports transition nounced a settlement of a 7-year-old memo to the attorney general, win its case in court. Baxter said the chances of win lawsuit involving American dicated.” officials for the incoming ad Baxter said continuing the case ministration were discussing drop go begging in 1980s ning the suit were slim and the Telephone & Telegraph Co. That Under the rules of federal would have cost the government Assistant Attorney General ping the suit. prospect of lengthy appeals could settlement requires A’T &T to divest procedure, Edelstein said, a federal William Baxter announced the between $1 million and $2 million a raise “ the ultimate horror” of the itself of 22 of its local operating judge has no jurisdiction to approve Published reports have said the government was dropping the case year for the foreseeable future. case dragging into the late 1980s companies within the next 18 the agreement because “ when the Justice Department and IBM have By LeRoy Pope outside the Sun Belt will find it harder to attract scarce that has cost the government $13.6 “ One cannot ignore the with facts that were 20 years old. months. parties agree to drop a case the ap held at least eight sessions since Oc trained workers such as data processing people and million since it was filed on Jan. 17, significance of these costs in the UPl Business Writer proval of the court is not required.” tober 1979 to try and reach a settle engineers,” he said. _ 1969, the last working day of the “ It seemed to me the only sensible At a court hearing in New York current fiscal climate,” Baxter ment. NEW YORK — There will be more jobs avabilable in He said Barry and other management consulting Johnson administration. thing to do was to dismiss the case,” City, chief IBM lawyer Thomas In its suit, the government" said. the coming decade than people with the qualifications to firms are being besieged with demands for help in im fill thern^ Theodore Barry Associates, a national proving management practices and increasing produc- management consulting firm, says on the basis of its «tiv ity in order to help ease the people shortage own annual survey. problems, Barry found that, because of .the slowing population growth, there will be fewer potential jobholders than available jobs in the 1980s. The survey indicated in Ma Bell to end dustry will create 1.6 million jobs a year while popula tion will increase by only 1.7 million a year and the i. number of youngsters reaching employment age will be small enough to create a tight squeeze. 4S$ HMnnilD no. “ Population won’t catch up with job demand until the 1990s,” said James A. Fields, vicofresident in charge MMKHESTER 643-$230 of Barry’s Atlanta .office. He also said the big demand I pay ysar IMso, nm C6 A CM phone monopoly growth will be for white collar workers; 30,000 more I M m wim ■ n Nat I computer technicians yearly, 17,000 more openings an nually in engineering than there will be candidates to fill SPECIAL SAVINOS ON them, an explosion of job demand in the medical field to WASHINGTON (UPl) - The dependable and readily available 11 million workers from 6.7 million now and a 28 percent Justice Department and American SNET telephone service.” overall growth in the decade in demand for clerical Telephone & Telegraph Co. an Baxter, who last March promised workers to 21.7 million by 1990. G e n tru in r intam ins nounced Friday they have reached to litigate the ATT case “ to the unaffected eyeballs,” called the agreement “ a But James B. Ayers, a partner in Barry’s home office COUPON' an agreement in a 7-year-old an in Los Angeles, conceded that the firm's survey and titrust case that will force a major very good one’’ and said it predictions do not address themselves to a problem that restructuring of the nation’s HARTFORD (UPl) - “ completely fulfills the objectives has concerned many persons looking ahead in the 1980s OurRei^Low j telephone network. Southern New England the antitrust department has been — the dim employment prospects of blacks and other AT&T agreed to divest itself of Telephone Co., which serves all pursuing in this litigation.” minorities.

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