European Stars And Stripes (Newspaper) - July 27, 1986, Darmstadt, Hesse                                Sunday july 27,1986 the stars and stripes Page 19 investor s guide by William a. Doyle q. I submitted an account application form to invest $4,000 in a municipal Bond Mutual fund an enclosed my Check for that amount twelve Days later i received transaction notice stating that the $4,000 had been invested in a Gin Nile Mae Mutual fund managed by the same organization. As i already had an account at the Glennie Mae fund i asked that the $4,000 in vestment in that fund be cancelled and the Money returned. Ten Days after that i received a$3,943.32 Check. It Cost me $56.68 for their error of putting my Money into the wrong fund. This fund Organiza Tion claims Tobe no  its literature says it has no Sale or redemption fees was this a legitimate charge for correcting a mistake Doyle they made was t this a pretty High handed Way to treat an investor a. In order the answers arc Heck no and heavens  someone or some computer a that fund organization fouled up. There s no reason you should los Money because of the error. When you sent in the application and Check the $4,000 was used to Purchase full and fractional shares of the Ginnie Mae fund. When you spotted the mis take and asked for your Money Back those shares were redeemed and the proceeds were sent to you As the $3,943.32 Check. Obviously the per share value of the Ginnie Mae fund dropped be tween the time of the Purchase an the redemption. As a result the shares were Worth $56.68 less. The fund organization expect you to Swallow that loss. Tell them you re mad and you re no going to take it. Demand the $56.68. If you get no results con tact the securities and Exchange commission. Q. I was distressed when the value of my investment in a no Load municipal Bond Mutual fond declined. I discussed this with my broker and he recommended that i simply buy individual municipal Bonds directly from him. He said his firm would retain the Bonds and keep tabs on them for me. Would that be better than invest ing through the Mutual fund a. There s no Flat answer to that. You might or might not do better. Unless you buy in very Large amounts your total Cost almost certainly would be higher buying individual Bonds. The Price markup on relatively Small purchases of Muni Cipal Bonds usually is substantial. Also you reduce your risk through diversification when you invest through a Mutual fund be cause it holds Many different securities. Lots of people invest in individual municipal Bonds. Some leave their Bonds with brokers. Other stake Possession of their Bonds. But More and More investors like the diversification and convenience of Mutual. Ooh Wrt Wim in qum Sonj. Bul to pm pros. Timm on rough an column. C King future sykut business news administration predicting faster economic growth Washington not the Reagan administration is now forecasting substantially More economic growth in 1987 Thanet expected just 5 i months ago according to confidential budget documents. The new forecast also acknowledges that economic growth this year will be less than estimated in february when president Reagan sent his budget to Congress. Despite the weakness in the Economy confirmed by several statistical reports the administration estimates that the Economy will grow by 4.5 percent from the fourth Quarter of this year to the fourth Quarter of1987, according to the documents. The february forecast predicted Only 4 percent growth. Both figures Are adjusted to eliminate the effects of inflation. The new forecast is being used As the basis for the annual re estimate of the president s budget known As the mid session review which is scheduled to go to Congress the week of August 4. The economic estimates Are developed jointly by the office of management and budget the Treasury and the president Council of economic advisers. The documents show Gross National product inflation unemployment personal in come interest rates corporate profits expected social Security Benefit increases and other indicators from 1986through 1992. The numbers Are still subject to minor technical corrections Bueno major changes Are expected budget officials  said that the administration s estimates were within the Range of reasonable forecasts but were almost certainly More optimistic than the projections to be issued by the congressional budget office on aug. 6 or 7. Lawrence Chimerine is chairman an chief economist of Chase Econometrics a subsidiary of the Chase Manhattan Bank. When informed of the administration s new figures he said there was Little evidence to support such an extremely optimistic forecast for 1987.he said he expected the rate of real eco nomic growth to be closer to 2.5 Percenta year Lor the next 18 months. The new administration forecast shows a dramatic decline in inflation for 1986 and 1987, mainly because of lower Oil prices. The revised economic assumptions show crude Oil prices averaging$15.46 a barrel in 1987. In late Decem Ber the administration assumed that the average Price that year would be $23.98. The lower Oil prices May have produced a slowing in economic activity this year but will result in a stronger econ omy next year administration officials say when the Low prices gradually beg into stimulate general business expansion. Here Are details from the administration s new forecast the Economy will grow at an an Nual rate of 4.s percent in the fourth Quarter of this year after adjustment for inflation. The president s budget had assumed 4 percent growth. Real economic growth As measured by the level of the Gross National product for the entire year not just the fourth quarters estimated at 2.6 percent in 1986 and 4.3 percent in 1987. The com parable figures in the president s february budget were 3.4 percent and 4 per cent respectively. The annual average consumer Price Index for Urban wage earners is expected to Rise a Mere 1.3 percent this year and2.8 percent next year. These figures arc much lower than the assumptions under lying the february budget 3.5 percent and 4.1 percent respectively. Because of lower inflation the administration assumes that social Security beneficiaries will receive a Cost of living adjustment of Only eight tenths of i per cent next year. The president s budget had assumed a 3.7 percent increase for1987. The new forecast envisions a 1988 increase of 3.5 percent As against the 4.3percent assumed in february. The average Price of Oil will Rise from$15.46 a barrel in 1987 to $16.43 in 1988. $17.58in 1989,$i8.8i in 1990and$20.13in 1991. The president s budget had assumed prices in the Range of $23 to $25 forthe entire period. Officials said the lower prices could have an Adverse effect on the deficit in the Short run because they would reduce receipts from the Windfall profits tax and from Mineral royalties on the outer Continental shelf. The interest rate on 91-Day Treasury Bills will average 6.5 percent this Yea Rand 6.4 percent next year then 5.6 per cent in 1988 and 5.1 percent in 1989.the comparable figures in the presi Dent s february budget were 7.3 percent,6.5 percent 5.6 percent and 4.8 percent. The administration predicts that the annual unemployment rate will average 6.9 percent this year or two tenths of percentage Point higher than projected in february. Business names they Are a Changin new York a Singer is spin Ning off its sewing machines. . Steel is moving away from steel. Itt former International Telephone and Telegraph is Selling most of its International Tele communications business. Penn Central which was one of Amer Ica s rail giants has t owned a train in years. International Harvester no longer makes reapers and has changed its name. And now american can is Selling i scan and Carton business. All Are . Companies that helped create their industries. For these and other companies times have  business that was very successful in fast generations is no longer the ticket to Strong growth now or in the future. American can co., or example is jelling the packaging business that once was us foundation. Its leadership As a Container producer made it one of the nation s leading manufacturers pan of Wall Street s Blue Chip list of Dow Jones Industrial stocks. American can now wants to concen trate on financial services and specially retailing. That s where it s been making most of its Money recently and where it sees rapid growth in the years ahead. Thus it plans to sell the packaging business to Triangle industries inc. For about $570 million. After the Sale Amer ican can will change its name. For some companies abandoning the businesses that made them famous was not so much an attempt to exploit faster growing markets As a matter of survival. International Harvester co., for exam ple decided a.?r years of heavy losses to sell its farm equipment business in early1985. It now makes trucks not reapers. Stock pulse to unwed Prau Man Mol c 1n  29,199 Nyu Czipot of incl Loti Volu i pm div vol cum Eimi be Vul my 3.339.900 39k s 3.30 11.0 8.2 3.159.900 27k 2.32 12.0 3.1 Srur i. -1.034.900 24% 1.49 19.0 4.9 1.345.700 81. 378 11.0 2.7is so �o7, Slock fathom had a Kim . La Connie Auino  Stor rasp of Dunloy vol come Ira be old 664.000 6 4 s 068 9.0 33 598.100 14x496.700 5% 0.11 51.0 454.000 14 0.3s 40.0 1.1 0.32 12.0 0.34 19.0 2.00 14.0 4ik386.200 315.900. -279.300 28% 243400 8k 199,800 5%199.000 i 0.25 22.0 0.9 "1 Aimi comport log i no chm Stock com Cal o. Eora be Vul Mommi b 98 11lmpumc 37% 5 0.98850 Trystm 1 � 3k 2.7akipub 90 t 2k 1.93 31.0 0.7  183 .2 9.95 29.0 0.7 thu Ymir us in 0.77 19.0 Atte "4 in 49 71k 1k 0.9 94-1h 9414211 8.4818.0 12r �m9 mntt2 and recently changed its name to Navis tar International corp. Penn Central transportation co. Went bankrupt in 1970, and nearly All of its Railroad properties were transferred tothe government owned consolidated rail corp., or Conrail. A successor com Pany Penn Central corp., is involved in Energy natural resources and electronic and telecommunications products. Also in telecommunications a major Force for decades was new York based itt. Now the company built to be the International counterpart to american Telephone and Telegraph co., has agree to sell control of its telecommunications business to Compagnie generate d elec trinite a state owned French conglomerate. Itt found that despite its Long history in the Field increasing competitive pres sures and the rapid change in technology weakened its ability to be a leading Force in the Industry analysts said. So itt will now concentrate on serv ice industries including its Sheraton hotel Chain Hartford insurance another financial services. Another institution in american corporate history has just changed its name. . Steel corp. Is now us corp. Changing the none stood to reason since steel now accounts for Only 30 per cent of us sales compared with 73percent in 1979. Singer still has its name but it soon will sever its roots to sewing machine maker Isaac m. Singer who founded the company in 1851. Singer plans to spin off its sewing machine and furniture businesses to its stockholders. The Singer that remains is an Aero space electronics company making such products As flight simulators and navigation and guidance systems