European Stars And Stripes (Newspaper) - May 4, 1986, Darmstadt, Hesse                                Sunday May 4, 1986 the stars and stripes Page 19 the week on Wall Street by Ellen Freili ii up business writer new York the Slock Market fell sharply lost week with the Dow Jones Industrial average suffering ils second worst weekly Point loss. The Dow dropped 60.89 Points ending Fri Day no 1774.6h, the record weekly loss occurred during the week ended april 4, when the Blue Chip barometer plunged 82.50. The Market mustered a mixed performance monday but news of the Accident at the soviet nuclear reactor precipitated four straight Days of declines the drop wednes Day 41.91 Points on the Dow Jones Industrial average was the largest one Day Point loss. Analysts said the Market had been poised far o drop and the news from the soviet Union weighing especially on the already weak utilities gave investors an excuse to sell. Falling Oil prices and lower interest rates have fuelled the Slock Market s rally and both those trends were reversed last week analysts noted. Larry Wachtl of Prudential Bachese purities said it was not surprising that the Market was under pressure through Friday. The downward trend this week and the violent move wednesday ordained that Fri Day would be a soft Day. He said. Wachtel said investors were dealing with major uncertainties related to this week s economic Summit in Japan and the upcoming Treasury auctions of $27 billion of new securities. Wall Street will be looking very carefully to see whether the Bond Market will be Able 10 absorb that new Supply without Rais ing rates he said on the trading floor at to was the most Active nose listed Issue unchanged at 24ft. Phillips Petroleum followed easing it to 9t/t. It reported lower first Quarter earnings and Cut us quarterly dividend to is cents from 25 cents. Southern co. Was third falling in to 22w, among other actively traded utilities american electric Power gave up it to 26w, Lone Island lighting fell 5i to 12w and Middle South utilities Tost to 12t i. Gulf states utilities fell in to 121. After postponing a decision on the payment of its quarterly dividend. Commonwealth Edison fell in to 31 to an Illinois court ordered it to Roll Back a $491.8 million annual rate increase instituted last october. Concern that interest Rule declines May have ended Hurt rate sensitive financial and insurance issues As Well As the Utility Sec Tor. Dreyfus fell a to 9i. . Morgan lost 511 to Sou and first Boston dropped 4h to 56w. Mori on Bank bucked the trend rising 7vi to 52. The new Jersey Bank agreed to merge with chemical Bank As soon As the Law allows interstate banking Between new York and new Jersey. Ray chem was the neck s biggest loser plunging 24h to 99% after it reported fiscal third Quarter earnings hat Tell far below Wall Street s expectations. Stacks of some other chemical companies also re Ticatch. Cela Csc fell 8 to 1mb. Rohm & Haas dropped 5ft to 95. American brands was the week s biggest Winner rising 8ta to 94b amid takeover speculation. Ism fells to i54vj, it set a 52-week High at 61vi tuesday and then lost momentum. John Akers its president and chief executive officer said at the annual meeting that ism and the computer Indus try have not yet put the problems of 1985 behind  other big movers among the technology stocks included digital equipment which fell 7w to 175ft, and Texas instruments which lost i of to 13554. Marriott inns jumped 4w to 165 to. The company declared a 5-for-l Stock split and forecast a 19 percent sales gain for 1986. News of disappointing earnings Hurt some stocks . Steel fell w to l9 i. It reported a first Quarter loss but declared a regular quarterly dividend of 30 cents a share saying it foresees no Cut in its dividend this year contrary to what some analysts had predicted. Eastman Kodak fell 3� to 56w, it announced a 58 percent drop in first Quarter profit. General dynamics fell 6 to 78h after reporting a 24,4 percent decline in its first Quarter profit. Overall 1,5 i 1 issues posted losses while 482 gained among a total of 2,200 issues traded. The Dow transportation average dropped 24,41 to 786,56. The Dow Utility average retreating As interest rates Rose in the Bond Market and radioactivity Rase from the so Viet reactor fell 5.29 to 181.41. Hrand Market indicators also fell Stan Dard & poor s 500-Slock Index dropped 7.50 to 234,79 the new York Stock Exchange composite Index declined 4.13 to .135.39. Big Board volume shrank to 692,560.130 shares compared with 736,103,400 a week earlier and 504,641,720 during the same investor s guide by William a. Doyle q. All my Slock is in my name Only. I understand that when i will the Stock to an heir be heir s Cost basis will be the Market glue of the Stock on the Dale of my death. If while i am still bring i name the person who will be Ray heir As joint owner with right of survivor ship will the same bub Rale apply a. No. In that situation Only half of the Stock s basis will be its value As of the Date of your death. If you put the Stock into joint ownership with that other person he or she will be come half owner of the Stock. Then when you leave this Vale of tears that person automatically will become the sole owner at that Point the basis for half of the Stock will become its value on the Day you die unless the executor or administrator of your estate uses an alternative valuation Dale. The basis on the other half will re main unchanged. Here s an example. Say you bought 100 shares of Xyz Slock at $10 a share. Your basis is ,000. Say that Xyz is Worth Iso a share at the Lime of your death. If that Stock is in your name your heir s basis becomes 15,000. If the Slock to jointly owned the surviving joint owner s basis becomes . That s because half of the Buie j500 on the half he or she already owned remains unchanged and the basis on the other half Steps up to s2.500. It s important to keep track of the basis. When Slock or any other capital aT1 � sold the difference Between the basis and the proceeds from the Sale is either it Capi Tal gain or capital loss and must be reported on the seller s income tax return. Q. It re in the process of settling Al estate and Selling its assets i House stocks Etc. To distribute the Money among Hunt. Your column confirms that the basis of All the asset is the glue at the Date of death. However we Don t want Sny tax sur Prises. Where is it written that the internal Revenue Smice relinquishes ils share by not levying capital gains to on the differ nce Between the prices it which the assets were purchased and the values at Lime of Deil a. In the internal Revenue code. The tax Reform act of 1976 would have made the basis of inherited assets the value of that property As of dec. 31, 1976 a so called fresh Start Date and would have resulted in heirs getting hit with More capital gains tax. That provision also would have required everybody who owned any capital assets including houses securities jewelry furniture even my Roll top desk to have inventories of value us of that Dale if thai crazy system had been put into effect heirs would have had much lower basis and higher capital gains tax when they sold inherited assets. That provision of the 1976 tax act caused so much confusion and so Many complaints to Congress that our lawmakers in a rare demonstration of common sense repealed it before it became effective. Don t fret. You re in for no surprises in the farm of capital gains tax on appreciated assets in that estate you Are settling. We Kii year ago. Composite volume for he week was. 822,789,450 shares Down from 869,6011,630 a week earlier. On the american Stock Exchange de Clines outpaced advances 538-248 among 914 issues traded. Volume was 56,444.450 shares compared with 71,927,825 the week before and 34,099,885 during the same week a year ago. Wicks led the Macx actives casing a to  Australia prime income Trusi followed rising w to ii. . Industries was third casing i to 6-1/fi.Survey reports financier top paid us. Executive new York a the highest paid executive in the United states last year was Victor Posner a Miami Beach financier whose si2.7 million in salary and other compensation outpaced his holding company s profits according to a Survey by Busi Ness week Magazine. The Magazine s annual Survey of 258 companies indicates that Posner out earned such Well known executives As Lee Iacocca chairman of Chrysler corp., and t. Bronc Pickens chairman of Mesa Petroleum. The Survey also indicated that Jackie pc scr president of the International brotherhood of teamsters received �534,143 in salary and expenses for the four Union posts he held lapping All other . Labor Union officials. According to the Survey by business week and Sibson i co., a new Jersey based consulting firm salary and bonuses averaged s679.000 for the top executives included in the Survey a 9 percent increase Over the previous year. In fiscal 1985. Posner received is 2,739,000 in salary and bonuses while dog corp., his holding company pasted a $5.6 million profit. During the first nine months of the 1986 fiscal year dog lost $5.9 million the Magazine said. Among the dozens of companies under dog Are Royal Crown cos., which was acquired in 1984 Evans products co. Which filed for bankrupt.? court reorganization last Yean and Sharon Elcel corp., which lost j209 million the past two years. Iacocca ranked second with total compensation of 111,426,000, including Mare than s9.8 million in Long term compensation. Business week said. Pickens who led the 1984 ranking of top Money makers was third last year with total pay of 58.431,000, rounding out the 10 highest paid executives were Warner amex chairman Drew Lewis $6 million Robert l. Mitchell vice chairman of cd Lance corp 14.76 million Sidney j. Sheinberg president of Mca inc., 14.48 million Robert Anderson chair Man of Rockwell International corp., $3.63 million Cliftn c. Garvin jr., chairman of Exxon corp. S3.5s million David s. Lewis chairman of general dynamics corp., $3.35 million and John h. Gut fecund chairman of Phi Bro Salomon inc., $3.2 million. The Survey found that 146 executives earned is million or More compared Wilh four who were paid that much in the 1980 Survey. Part of the increase was linked to a j7 percent Rise in compensation from Long term incentive plans which can include Slock options or performance bonuses Given at a future Date. The Survey said More than half of the total compensation of the top 25 executives Wos from pay tied to the performance of the Stock Market which boomed in 1985. Business week also said that Michel a Bergerac chairman of Revlon inc., got a Golden Parachute compensation package totalling $35 million last year after the com Pany was taken Over by pantry Pride inc. Such packages can be collected by executives if their company is acquired by an other and they leave the company Bergerac s payment far outdistanced the no. 2 Golden Parachute payment of sfi.4 million to Beatrice cos. Inc. Chief executive William w. Granger or. Granger earned his payment when the company was acquired in a $6.2 billion leveraged buyout by Kohlberg Kravis Rob erts & co the Golden Parachute for David Lipson Beatrice chief financial officer was s4.27 million the third largest in 1985. Among Union leaders. Pc scr s Pav was More than double that of the second highest paid labor official. Air line pills Assoc a lion president Henry a. Duffy who earned 1263,436 in salary and expenses other Union lenders among the top 10 included Thomas w. Gleason president of the longshoremen 1173,021 Fred a har Din president of the United transportation Union 1165,845 William h. Wynn presi Dent of he food and commercial workers $162,600 Edward to Hanley president of the hotel and restaurant employees sl57,567 or Aldo. Mcewlee president of the slate and municipal employees $ 137,200 Shannon j. Wall president of the maritime Union 1136,398 Marvin j. Floe de president of the plumbers Union ii 35,250 and Richard. Kilroy president of the railway and airline clerks 1135,000. Stock pulse by undid part nth Miltonl fruit Miv to nose Coo Ikichi Molt act Tun by Vum Slock div Vul cd Mearns be old pm Ielpi 2,Sii,2w 9h t  1.0 i Aew 2.415,700 is 2.40 11.0 it in turn 2.ss4.mo 3 a 4.5 9.0 1.1 ctn Law i.7m.4w jul �.0 7.j us sit i Shioo Lin imn of  com red i.12s.9w 31 4 4.4s 7j 9.4 Guthu i.172.9w i0b 1.15 5,0 19,1 ism i.1w.4m in. 10.71  2.9 Ltd i.h2.9w 7 Hyse Chiw Mik Lirt hit conc Slock cum of Gariup eve a 2551" it Ilo " merc is 9jw � us 11.0 1.7 Uji Vbk a 9vk 349 110 " Squibb " i 3 -41 22.0 l. Ass11" Canol Brwn Brut. Am Mil  11 0.9 i m Slock Lurt 1.s7 1.0 mum 114.700l?t,4mtieamm i7l.m a . Limit he Willow crv0a earnt be old i 61 t i.6s 1301hh he 075 1s3.0 10sh a 1z.4b t-4 0.5 re Kwh 11 3hi 010 2j.o 1.1 Olid 47 4 241 0.9 Takh Dpi � 2\� 2.s7wvfi i i lip Turuc in t thy Timo t � it Binfor b 1914 up a ctn � in new in ilk two in i Joxen Chi kind not urn ii nun tax . Pm 110 Jim 0 ?.tt 21.0 1.0 id 13.0 2.0