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May Index Signais Fail in Economy J GoH Spills Errors Water hazard Oil congeals In Delaware; Shaky Brewers outlast Boston / I I to be studied /3 Newport seaman won’t talk /6 f®aitrljPBtpr UrralJi Wednesday, June 28, 1989 Manchester, Conn. — A City of Village Charm Newsstand Price: 35 Cents May index signais fail in economy By John D. McClain The Associated Press WASHINGTON - The govern­ ment’s chief economic forecast­ Index ing gauge plunged 1.2 percent in May. the biggest decline since the of Leading stock market crash in late 1987, the Commerce Department re­ Indicators truMK, 1962 • lOO ported today. The decline in the Index of 146 Leading Economic Indicators was the third in the last four months, as the gauge designed to 142 foretell economic activity six to Patrick Flynn/Mencheeter Herald nine months into the future continued to flash strong signals BEATING THE HEAT — WalterTreschuk of 29 Carter St.. at Bolton Lake. The National Weather Service predicts of a significant decline in eco­ Bolton, keeps a close eye on his grandson, Alex Bahm, 2, that Thursday will be mostly sunny and cooler with less nomic activity. of Farmington, as they seek relief from the heat and humidity. The 1.2 percent decline was significantly steeper than ana­ humidity during an outing Tuesday at Indian Notch Park lysts had been expecting. How­ JJASONOjfMA ever, economists generally be­ May 88 Apr. '89 May *89 lieve the economy can escape a recession this year, although they I 141 5 I I 145 5 I 1143.8 I are looking for a major slowing in Bush to propose high-level pay hikes economic growth accompanied by rising unemployment. to the overall downward trend By Rita Beamish As of today, the president was mention a specific proposal, but senior executive branch em­ The 1.2 percent drop in May this year that has worried many The Associated Press not planning to ask for a specific said he favored a raise, and that ployees early in his administra­ followed a 0.6 percent gain posted economists. tion. But Congress, amid a public figure, the administration source he would like to see congressional in April. The index had fallen 0.6 Today’s index figure reinforced WASHINGTON - President said. increases considered separately clamor opposing such increases, percent in March and 0.3 percent Bush on Thursday will propose a in February quashed a 51-percent in February. recent government and private In April, Bush endorsed a 25 from those for judges and other industry reports that show almost pay raise for members of Con­ top executive branch positions. pay raise that would have taken The May decline was the steepest percent pay increase for federal every sector of the economy gress, judges, and top-level ad­ judges. “ Now whether the Congress is effect automatically earlier this since a 1.8 percent plunge in contracting because of the Fed­ ministration officials, four willing to do what I’ve suggested, year if the lawmakers had not November 1987. That drop re­ months after public outrage The Washington Times, quot­ I don’t know. But I will have voted it down. flected the shock to the economy eral Reserve Board’s efforts to ing unnamed sources with access raise interest rates to control killed a 51-percent increase, an suggestions when we make our from the 508-point plunge in the to Office of Management and Bush endorsed the 51-percent inflation. administration source said today. announcements on Thursday — Dow Jones index of 30 industrial Budget information, said he salary increase for Congress in Bush was to include the prop­ further announcements along stocks on Oct. 19, 1987. For instance, only two of the 11 would ask for raises of up to 25 January at his first news osal in a speech centered on this line — as to what I think needs The April increase had allowed forward-looking business statis­ percent in his proposal. conference. campaign reform and gerry­ to be done. ... This is a matter of the index to steer clear of the tics that make up the composite Bush on Tuesday was asked mandering of congressional dis­ considerable concern.” That would have taken congres­ traditional signal of a forthcom­ index — higher stock prices and tricts, said the official, who spoke about the pay raise issue at a Bush backed pay raises for sional salaries from $89,500 to ing recession — three declines in on condition of anonymity. news conference. He did not members of Congress, judges and $135,000. a row. But the May report added See INDEX, page 10 More reform likely H ouse not rushing on for Eastern Europe By Barry Schweld such delicate issues as who sits flag issue The Associated Press next to Bush at dinner. A four-man ruling body has sharply By Larry Margasak WASHINGTON - The pace of reduced the power of General The Associated Press reform in Poland and Hungary is Secretary Karoly Grosz. "H e’ll still see the same Hun­ picking up even as President WASHINGTON - The House Bush gets set to visit the two East garians, but in what order?" said will not rush to nullify a Supreme European countries — with assu­ a U.S. official who assessed Court decision on flag-burning, developments on the condition he rance to Moscow he will not try to says House Speaker Thomas overhaul their economies or pose would not be identified. "W e’ve Foley, who contends the issue asked the Hungarians.” a threat to the Soviet Union. should not be used for “ crass In both countries Bush will While Bush on Tuesday was political purposes.” meet with prominent leaders of advising Soviet President Mik­ Moving Tuesday to slow down a the opposition, and he is bound to hail S. Gorbachev not to get possible stampede for constitu­ "uptight" about his trip to dwell on his session with Lech tional change, Foley announced Warsaw and Budapest, U.S. Walesa, the leader of the Polish that hearings will be held in July officials said privately the second trade union movement on setting aside the court ruling stage of elections in Poland and a Solidarity. that threw out flag desecration revamping of the Communist Poland has now had two rounds laws in 48 states. party leadership in Hungary have of elections, and Solidarity has 1 He acted only hours after done well. It’s won 99 of 100 Senate improved the trend to President Bush joined a chorus of seats, and the union has won all of democracy. lawmakers in proclaiming that a the contested races for the lower There is uncertainty who will constitutional amendment — a house. eventually become prime minis­ process used only 26 times in the A president is to be chosen by ter of Poland, however, and the nation’s history — is the only July 18. Bush will be in Warsaw reshuffling in Hungary may solution to change the 5-4 ruling. and Gdansk, the Baltic seaport require a change in protocol on Foley, D-Wash., said the House where Solidarity was launched, Reginald Plnto/Mancheeter Herald Judiciary Committee hearings July 9-11. SUPERMARKET SPREE — Rose Kvart grocery items as she could in three “ are not going to be rushed but There may be a caretaker they will not be obstructive.” government for a while, and it’s races through Highland Park Market minutes. The spree was sponsored by TODAY They will "be conducted calmly not clear if Wojciech Jaruzelski Tuesday trying to gather as many Mechanics Savings Bank. in the spirit of deliberation and will wind up wearing the twin hats care ... we are not seeking to In d e x of president and Communist inflame this issue,” he told 20 pages, 2 sections party chief. reporters. Speedy shopper nets $1,304.54 “ There is a lot of nervousness With senators already home for Business— — 9 Nstlon/World.j5-7 among the Poles because nobody their July 4 break, Foley gave .Classified - 19-20 Obituaries-------2 knows how all of this is going to By AAaureen Leavitt into shopping carts during a shopping spree Comics_____16 Opinion . 8 House members outraged by last work out,” said another U.S. Manchester Herald sponsored by Mechanics Savings Bank, which Focus______ 16 People-----------15 week’s ruling a chance to vent official, who also insisted on recently opened a new branch at 341 Broad St. Food_______ 14 Science---------18 their feelings. He scheduled an anonymity. "But we know the As Rose Kvart ran down the produce aisle of The speedy shopper managed to pile $1,304.54 Local/State Sports----- 11-13 Highland Park Market pushing her grocery cart worth of goods into three carts by the time the immediate vote on a non-binding way the trend is running, and we resolution expressing “ profound .2-4, 10 Television. ,17 Tuesday, she tossed a list of meats to the meat buzzer sounded at the market at 317 Highland St. welcome the trend." concern" over the decision, and packers and flew down another aisle, wildly Kvart wasn’t the only winner in the spree. In Hungary, he said, the the House passed it, 411-5. grabbing groceries. Bank President Edgar Gerwig presented reshuffling at the top of the party Senate Judiciary Committee WE DELIVER This was no ordinary housewife in a rush to get MaryAnn Palmarozza, administrative director Chairman Joseph R. Biden Jr., For Home Delivery, Call “ doesn’t change things much." home for dinner. of New Hope Manor Inc., 48 Hartford Road, a Democratic change is so far D-Del., said Tuesday he favors Actually, Kvart had three minutes to grab, advanced it is conceivable a seeking to nullify the ruling by 647-9946 push or pull whatever grocery items she could See SPREE, page 10 Monday to Friday, 9 to 6 See EUROPE, page 10 See FLAG, page 10 1 MANCHESTER HERALD.
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