European Stars And Stripes (Newspaper) - September 29, 1985, Darmstadt, Hesse                                Sunday september 29, 1985 the stars and stripes Page 19 european unemployment keeps rising Paris a unemployment in Europe is Likely to continue rising slowly and could reach a postwar record of More than 11 percent in the second half of 1986, the organization of economic cooperation and development says. The 24-nation organization s annual employment Outlook said employment growth in the United states and Canada is Likely to slow Down As the economic recovery eases. Employment should grow by i to 1.5 per cent in Japan. The report said there May be above aver age employment gains in Britain West Germany the Netherlands Denmark nor Way and Finland. However the report said the projected employment growth is unlikely to match the continued growth in the labor Force so Recd unemployment May resume its up Ward Drift. Reaching 31.5 million per sons in the second half of 1986, an unemployment rate of 8.5  the report by the Paris based Organiza Tion that monitors economies of the major industrialized democracies said there is Little Prospect for improvement for the two groups most affected by unemployment youth and Long term jobless persons. While the youth unemployment rate in North America in 1986 May be slightly Tower than in 1984, and remain stable in Japan the report said it May continue to Rise in the four major european countries Britain France West Germany and Italy to nearly 23  the report said a particularly disturbing feature is the Sharp increase in the number of persons who have been unemployed in Many european countries for two or More years. It appears that Many who became unemployed during the last recession have remained unemployed the report said. Discussing the report at a news Confer ence at Recd Headquarters Ronald Gass director for social affairs manpower and education said the figures in the report Are disturbing and unsatisfactory. The Situa Tion becomes More unsatisfactory when you see How they Are distributed particularly among the Long term unemployed. He said there was no single answer to the problem and cited three main reasons for the Rise in unemployment in member coun tries since 1970. These Are weakness of demand in Europe compared to the United states rising labor costs and the squeeze on profile Blitz and rigidities in the labor capital and product markets of Many european countries. Gass said that governments and the pub Lic should address All three factors if a last ing solution is to be found. He said change will not come about if a number of hatchets continue to be aimed at Supply aiders advocates of the welfare state Ana proponents of Job Security. The report noted Many Calls for govern ment programs to Aid Small firms As a Means of encouraging employment growth. However the report urged caution in addressing such claims. Evidence on the dynamics of employment growth indicates that a net increase in jobs comes from the birth of new firms both Large and Small rather than Only Small firms. In order to encourage new firms the re port said governments should follow poli cies that create a general economic environment conducive to risk taking. Such As lowering the Barrier to entry and the encouragement of research and development and venture  the report devotes considerable attention to labor Market flexibility and says the Issue cannot be viewed solely in terms of wages. Flexibility can be achieved by changes in work organization work Force mobility and human capital formation As Well As by investor s guide by William Doyle q. Because i was unable to foresee the Correct amount of my estimated Federal income tax for 1985 by april i sent the internal Revenue service a Check equal to 100 percent of the income us i paid in 1984. I now know that because of in creased dividends interest and profits from the Sale of stocks my tax Bill will be higher. Should i hate sent the irs an amended estimate and More Money in june or sep tember should i do so in january will i be in violation if i do not a. You re in the Clear. There s no need for you to pay any More tax on your 1985 income until april 15, 1986. Anyone who will owe the irs $500 or More this year is required to make quarterly estimated tax payments due on april 15, june 17, sept 16, 1985, and Jan. 15, 1986. Yes those Are strange quarterly dates. Because it s virtually impossible for most folks to come up with accurate fore casts of How much they will owe there now Are two ways to stay Square with the Reveno oers. 1. Make estimated payments equal to last year s tax.2. Pay estimated tax equal to 80 percent of the previous year s tax computed by annual zing your taxable income. Before this year there were two other methods but they were scrapped by the deficit reduction act of 1984. The first method listed above is far and away the easier and is the better one unless your income has fallen. It s the one most people who must make estimated tax payments use. We do at our House. Because you already have paid Esti mated tax equal to your 1984 tax bite you have met All the requirements. But you did t have to pay All that tax in april. You could have spread your payments out in four instalments. Over the years a fair number of readers have written in to say they prefer to do it As you did because it saves them the Botner of paperwork and sending in three More estimated vouchers with checks. However you be lost the use of Money that could be earning interest until you re wage adjustments the report said. But. It adds that lowering rigid its in the labor Market would be More effective if accompanied by similar trends in product and Capi Tal  Gass identified employment Security As being another Factor in the labor flexibility debate and said there is a Clear trend to Ward Japan nation in Many big firms particularly automobile companies. There is a danger because Job Security for some cannot be achieved at the Cost of jobs for others Gass said. General foods oks Sale for record $5.6 billion required to part with it. I hold to the theory that everyone should pay All of his or her taxes but should cough up the Cash at the latest possible Date. Q. On dec. 28, 1984,1 sold some Slock to loss for tax purposes. The settlement Date fire business Days after the Trade Date was Jin. 7,1985. My broker did not Send me a form 1099-b, listing Ibe Sale. Telephone Calls and letters produce no results. It seems the brokerage firm s computer is programmed to Issue 1099-bs, based on settlement dates. Accordingly it will Issue a 1099-b in 1985 for my 1984 tax loss Sale. How can i avoid trouble with the inter Nal Revenue service on this a. Attach a note to the 1985 Federal income tax return you file next april. Explain the situation just As you did in your letter to this column. You reported the capital loss on the Sale of that Stock on your 1984 income tax return just As you should have done. You realized that loss on the Trade Dale the Day you sold the Stock. Brokers Are required to Send 1099-bs for the Sale of stocks and other capital assets to Sellers and the irs. On scheduled where you report Capi Tal gains and losses there s a place to list the totals reported on 1099-bs. When the number you list there does t match the total on 1099-bs the irs receives the revenooers1 computers should go tilt and you la probably hear from them. If the irs questions your 1984 return on which you reported that capital loss but for which no 1099-b was issued pro Duce the broker s confirmation statement. It lists the Dollar amount of the Sale and the Trade Date. The note you attach to your 1985 re turn should head off irs problems with that return. If it does to you la again have to show that you sold that Stock in 1984. There Are Many horror stories about brokerage firm goofs on 1099-bs. If i were in your shoes i d change brokers. King Fhi urn Coli Enlil Doh   but a can provide an a Only through hmm bin. Vouch Orllo to him in cart of the Itari and St Lxi. Apo omit. . Fofcw.1 new York a general foods corp. Has agreed to be purchased by Philip Morris cos. Inc. For about s5.63 billion in what would be the largest non Oil acquisition in corporate history. The merger also would create the nation s largest consumer products company. Under the agreement Philip Morris is to acquire All of general foods 46.9 million shares outstanding at $ 120 a share in Cash. The merger is subject to the approval of both boards of directors the companies said. Board meetings arc scheduled for monday. Hamish Maxwell chairman and chief executive officer of Philip Morris and James l. Ferguson who holds the same titles at general foods said they would strongly recommend that their directors approve the merger and they indicated that approval was Likely. General foods which makes such products As jello desserts Kool Aid powdered drinks Post cereals Birds Eye Frozen vegetables and Maxwell House Coffee would operate As a separate company within the Philip Morris Structure and maintain its Headquarters in Rye Brook n.y., the companies said. Principally a tobacco company Philip Morris net income declined 1.7 percent last year to $888.5 million on worldwide sales of j13.8 billion. Its cigarette brands include Marlboro the no. 1 Selling Brand in the United states and the world Benson & Hedges 100s, Merit parliament and Virginia slims. It also owns seven up co., Miller brewing co. And Mission Viejo realty group inc., a Community development company in Southern California and Colorado. It has 68,000 employees. General foods net income edged up 2.5 percent to $324.9 million on sales of $9.02 billion in its fiscal year ended March 30. There has been a spate of acquisitions in the food business in the 1980s. Recently. . Reynolds industries inc. Acquired Nabisco brands inc. In a Friendly Deal valued at $4.9 billion and Nestle a the Swiss company acquired Carnation co. For $2.9 billion. The previous largest non Oil takeover was the $5.2 billion merger Between Southern Pacific and Santa be creating Santa pc Southern Pacific corp. General foods management would continue to operate its businesses and Philip Morris docs not plan to divest any of Gener Al foods businesses. Maxwell said. General foods which was rumoured to be a takeover target for months had announced tuesday that it had received an offer to begin negotiations Over the possible Purchase of the company and said its Board would hold a special meeting sometime this week to weigh the proposal. It declined to identify the suitor but speculation on Wall Street entered on Philip Morris. Friday morning. General foods and Philip Morris separately asked the new York Stock Exchange to delay trading in their stocks pending announcements. The trading halt proved irrelevant How Ever because the new York Stock Exchange decided not to operate because of Hurricane Gloria. General foods Stock Rose $6.25 a share to $117 As 28,200 shares traded hands on the Midwest Exchange before that Exchange also was closed. After general foods released its first announcement tuesday its Stock soared $16.62 a share to close at $101.50. It Rose $5.25 More on wednesday and a further $3.50 thursday to $110.25 in composite new York Stock Exchange trading. Philip Morris closed Down $1 a share at $75.87 i on thursday. Space losses of boost Cost of insuring Safe fifes Rome up aerospace Industry insurers in chaos after sustaining $600 million losses in 19 months promised higher costs and possible changes for Commer Cial satellite coverage. Stung by an unprecedented loss of seven satellites since february 1984 three of them in a single week earlier this month aerospace insurers told an International space insurance conference Friday that higher premiums were unavoidable. We Are in chaos said James Barrett president of International technology underwriters Intel the world s leading underwriter for space technology. He spoke to Industry Leaden including Lloyds of London Japan s Tokyo Marine fire and Italy s Auric Grazioni general As Well As to senior officials from Nasa and the european space Agency. Barrett denied published reports that the company which handles More than $30 million a year in satellite insurance was dropping out of the commercial satellite insurance business. However Barrett said the recent string of disastrous satellite failures required the Industry to rethink Basic policies and reallocate at least part of the risk to satellite manufacturers. In the last 19 months seven satellites insured for $600 million have failed. The worst string of failures occurred Between sept. 6 and sept. 12 when an $85 million military communications satellite owned by Hughes communications inc. Of los an Geles failed and a French ariane rocket failure destroyed two other communications satellites Worth $149 million