Penny says remarks Play Jackpot BIngol Circus buffs, were misunderstood $1IM In prizes weekly don’t miss this pages ... winning numbers on page 2 ... page 11 Rain tonight Manchester, Conn. and Saturday Friday, Sept. 14, 1984 — See page 2 Single copy: 25<t Retail sales, wholesale prices fall The peaks are past, and figures indicate an economic decline Bv Denis G. Gulino Falling wholesale prices and retail Most analysts seem to agree the pace United Press International than expected by leading analysts who sales are more typical of an economic is stowed to something around 4 did not anticipate an outright decline. decline than a continuing expansion. percent to 5 percent, from the second Wholesale prices last went down in WASHINGTON — The nation's retail The falling sales have not been quarter's 7.6 percent. The first quarter November, by the same 0.1 percent. sales dropped 0.8 percent in August reflected in reports on borrowing. sprinted at a spectacular 10.1 percent But price, increases have been after plummeting 2 percent in July, the Earlier in the week the Federal growth rate. extremely moderate this year. In three Commerce Department said today, a Reserve reported American consu­ But the weak sales figures seem to months, April through June, the index dramatic setback from the sales mers added $7.1 billion to their confir'm the peaks are past, even if a did not change at all. ■ strength in the first half of the year. outstanding installment credit in July, boom in business spending continues. The Produce Price Index was 291.8, eg Sales in August were worth $106.2 the third highest total on record. The decline in wholesale prices equivalent to a cost of $2,918 for goods billion, $900 million less than July after Retail sales make up an important showed that both food and fuel got less that cost business $1,000 in 1967. seasonal adjustment. part of consumer spending, a major expensive in August, the Labor Depart­ The index, measuring changes in the The biggest surprise in the report driving force of the economy. But sales ment said. prices of nearly 3,400 categories of was the huge downward revision in alone do not directly reflect how the The government’s Producer Price goods from automobiles to animal feed, July’s figures, originally reported to be economy is growing, since they can be Index is running at a moderate 2.4 does not directly reflect prices paid by a 0.9 percent decline. declining while production increases. percent annual rate for the first eight consumers. During August, auto sales fell 4 In July factory production went up months of the year. But the wholesale trends eventually percent: food stores reported a 1.7 0.9 percent even as retail sales dropped Food prices dropped 0.1 percent, a show up at the retail level. percent decline: clothing stores were 2 percent. sharp turnaround from the strong 1.4 July’s big jump in food prices raised off 3 percent: department stores sales But seldom does production keep percent increase in July. fears a long-predicted meat shortage fell 1.3 percent. growing for long if sales keep declining. Energy prices dropped 2.5 percent, had finally arrived. But then it It was the first back-to-back declines Next week government economists more than in July. disappeared almost as fast. Consumers since February and March. take the existing economic data for Gasoline prices fell 4.2 percent and apparently balked at paying higher In a separate report today, the Labor July and August and add an estimate fuel oil prices went down an even pork prices, according to one depart­ Department said wholesale prices for September, to project how fast the sharper 4.6 percent. Natural gas costs ment analyst. dropped 0.1 percent in August, the first broadest economic indicator of all, the were up 1.7 percent. “ The big moves in food are behind decline since November. gross national product, is growing. The month’s price report was better us,’ ’ economist Donald Ratajczaksaid. GM, UAW Smoking dispute down to wire ieads to Bv Sarah E. Hall in bargaining Herald Reporter Because the town administration and two municipal workers’ unions continue to disagree over a hew By Mlchellne Maynard smoking policy in town offices, the state agent United Press International handling the dispute has ordered a formal hearing before the Board of Labor Relations. DETROIT — General Motors Corp. and the United Chief labor board agent Jack Kingston said today Auto Workers opened their final hours of bargaining that Kenneth Hampton, the assistant agent oversee­ today with GM’s chief bargainer under orders from ing the case, has set the hearing for Nov. 26. Kingston Chairman Roger Smith to avoid a midnight strike. said he and his staff have failed to resolve complaints The first order of business was a new economic by the Manchester police and town hall workers’ proposal covering wages and benefits made by the unions over the the new smoking rules. company Thursday, but sources indicated a great “ We really haven’t been able to agree on much of deal of work remained on the job security proposal anything,” Assistant General Manager Steven made by GM earlier in the week. The plan, however, Werbner said this morning. He said the town may call fails to cover a number of union goals. upon health experts to testify at the hearing because A source described as a "ranking UAW official’’ the unions refused to agree that cigarettes are told the Detroit Free Press the economic offer, while harmful to the smoker and others who inhale the not ideal, is one that “ could lead to a settlement.” fumes. The current contract covering 350,000 workers Whether smoking has been prohibited in certain expires at midnight, and local leaders across the offices in the past is also a matter of dispute, Werbner country said their members were ready to man said. picket lines. Only six GM plants will be Operating on Shortly after General Manager Robert B Weiss overtime shifts this weekend, so the effect of a posted*the new smoking policy in June, town unions walkout initially would be limited. protested that it amounted to a -change in working The union still has the option of asking that the conditions and should have been negotiated. The new UPI photo current pact be extended and could decide to do so if rules prohibit .smoking in town offices by Jan. Land it appears a settlement is close when the deadline Owen Bieber (left), president of the GM continue to bargain to avoid state that workers who smoke at their desks in the comes. There has been no official word from either United Auto Workers, greets union passing tonight’s strike deadline of meantime must use air purifiers. Only coffee rooms side since late Wednesday. and other designated areas are exempt from the ban U PI learned that Smith held a rare meeting members as he enters General Motors midnight. In the past, Edward Tighe, president of the Thursday with UAW President Owen Bieber. headquarters in Detroit. The UAW and Manchester Police Union, has complained that the According to a company source, the meeting town “ rammed the policy down our throats ” and then culminated with Smith telling his chief bargainer, attempted to discuss the union’s chief priority — job t^ried to “ muddy the waters ” by citing data on health “ We don’t want a strike — take care of it." However, the first set of talks between GM hnd the hazards linked to smoking Neither he nor Robert security — but "R oger kept him to it” (the wage union in 1982 broke off and the deal was not part of the The meeting between the GM chairman and the offer.) Fuller of the Municipal Employee’s Union were 'U A W president occured with just over a day ultimate concessions agreement. available for comment this morning Another discussion at the meeting involved cost of Earlier Thursday, union officials said privately remaining before the UAW contract expired, and living allowances, which the union wants increased Both bargaining groups are affiliates of the marked Smith’s first known participation in this they were discouraged at the sluggish pace the talks American Federation of State, County and Municipal in the current contract, the source said. were taking. year’s negotiations. Smith left the meeting — presumably held at the Employees. It followed presentation earlier Thursday to the At the same thne, an industry official close to the Already, thfi issue has been the siibjtjct of an GM headquarters building — and proceeded to a talks ratedthe odds of a walkout at 50-50, saying too union of a long-awaited GM offer covering wages waiting helicopter, the source said. As he was informal hearing and a fact-finding se.ssion At this and benefits. much remained to be done on the union’s goals. point, “ The issue must be adjudicated .. It’s not getting on board, the GM chairman turned to Warren Asked by a worker how the talks are proceeding, A concessions contract covering 350,000 hourly and said, “ We don^t want a strike — take care of it.” something -we can recommend for dismissal ’’ workers expires at midnight and veteran industry Bieber responded: “ It’s slow.” Kingston said. A GM spokesman said he did, not know if the One union source said the GM offer included wage officials were offering 50-50 odds the union woulcl call meeting had taken place, but' maintained “ it its first major strike in eight years.