STRICTLY BUSINESS: DOW JONES CHANGES WITH TIMES

Iron horses have given way to the computer age, rapid telecommunications and multinational corporations.

The Dow Jones Industrial Average, which shows the trends of prices of stocks and bonds, is a changing, although infrequently.

Although the Dow Industrials have changed with the times, some companies have been in the Dow for more than 65 years.

So, what is the Dow? For an answer to this question, we turned to some people who are in the know -- stock investment professionals.

The Dow Jones Industrial Average was invented 98 years ago, in 1896, by Charles Henry Dow, not to be confused with Herbert Henry Dow.

Charles Henry was a publisher of the Customers Afternoon Letter, a stock market newsletter that was a forerunner to his now-famous Wall Street Journal.

Herbert Henry, meanwhile, was an early leader in the U.S. chemical industry. He founded the Dow Chemical Co. at about the same time Charles Henry was founding the Dow.

The first Dow had only 11 stocks -- nine of them railroads, which reflects the importance of the iron horse in the 19th century.

The Dow Average increased over the years, reaching 30 on Oct. 1, 1928. It still consists of 30 stocks, although many of the companies have changed.

The Average is still maintained by Dow Jones & Co., which publishes the Wall Street Journal and Barron's.

The Dow Jones & Co. should not be confused with Edward D. Jones & Co., a completely separate company and one of our sources for a look at the former's history.

The Dow Industrials have changed, with the most recent changes in 1991 when Walt Disney, J.P. Morgan and Caterpillar became Dow 30 stocks, replacing Navistar, USX and Primerica.

Some companies, which have been with the Dow since it became a 30-stock average in 1928, have had name changes. One such stock is Exxon, which was formerly known as Standard Oil of New Jersey.

Privately owned and maintained

Changes in the Dow are made solely at the discretion of Dow Jones & Co., because the Dow is privately owned and maintained.

It is calculated by totaling the most recent prices of each of the 30 stocks and dividing by 0.317153418, which is the current "Dow Divisor," which has been adjusted for stock splits and other changes in the Dow over the years.

For a listing of the current 30 Dow Stocks, we turned to the Wall Street Journal. Most of them are familiar names, including Coca Cola, Disney, McDonald's, Procter & Gamble and Sears. The complete list, in alphabetical order:

AT&T, Allied Signal, Alcoa, American Express, Bethlehem Steel, Boeing, Caterpillar, Chevron, Coca Cola and Disney.

DuPont, Eastman Kodak, Exxon, General Electric, General Motors, Goodyear, IBM, International Paper, McDonald's and Merck.

MMM, Morgan J.P., Philip Morris, Procter & Gamble, Sears, Texaco, Union Carbide, United Technologies, Westinghouse and Woolworth.

The Dow, say some market executives, could reach 5,500 to 6,500 by the year 2000, up from 6 to 9 percent a year over the current range of about 3,800 plus. The 1994 Dow Average has ranged from a low of 3,593.35 to a high of 3,978.36.

The experts tell us that to reach 5,500 by the year 2000, the average would need to appreciate at a rate of 6.8 percent per year, but to get to 6,500, the Dow stocks would have to increase an average of 10.2 percent a year. These same experts tend to lean toward the lower end of this forecasted range.

Two of major investment companies with branches in Cape Girardeau -- Edward D. Jones & Co. and and A.G. Edwards & Sons Inc. -- rate the Dow stocks for their clients.

The two firms differ somewhat on two of the most recognizable brand names in the world, "Coke" and "McDonald's."

Jones rates Coke and McDonald's as "attractive for purchase" at this time, for "long-term" investments. Edwards, meanwhile, has what it describes as a "hold" for "conservative buyers."

Coca Cola products, which include such brands as Coke, Sprite, Fanta, Fresca, Minute Maid, Nestea, Powerade, Fruitopia and OK, account for 44 percent of the world's soft-drink industry and are available in 195 countries.

Over the next three years, many stock brokers expect Coke earnings per share to grow 17 percent a year.

McDonald's owns, franchises and operates through joint ventures, about 14,500 restaurants in 72 countries. Over the next three to five years, McDonald's plans to open 900 to 1,200 new restaurants a year. Stock brokers expect to see a 13 percent increase in annual earnings-per-share growth over the next three to five years.

As with any stocks, investors are urged to consult with their local stock brokers to see if a potential stock purchase is appropriate for their investment needs.

New on the business scene

Great Financial Mortgage has joined the business scene in Cape Girardeau and Paducah, Ky.

Great Financial, headquartered in Owensboro, Ky., has acquired Fleet Mortgage at both sites.

All Fleet Mortgage employees will continue with Great Financial.

"The new company will maintain the same offices and loan processing staff," said John Cochran, of the Cape Girardeau office. "This will allow us to provide our real-estate clients fast, efficient loan processing, approvals and closings."

Great Financial Mortgage, formerly known as Lincoln Service Mortgage Corp., is owned by Great Financial Bank of Louisville. The mortgage operation was founded as a subsidiary of Lincoln Federal Savings and Loan of Owensboro 18 years ago and was acquired by the Louisville bank when it purchased the Owensboro Savings and Loan.

Great Financial also has offices in St. Louis and Jefferson City in Missouri, and in Florida and Maryland.

Antique Furniture & Craft Mall opened recently at 18 N. Sprigg.

New owner-operator of the mall is Dorthey Belongy of Jackson.

The structure has served as an arts and crafts and antique mall for the past six years, most recently housing Country Girl Creations, which closed earlier this year.

The new retail center features antiques, crafts, arts, collectibles and new and used furniture.

The business is open Wednesday through Saturday from 10 a.m. to 4:30 p.m. and Sunday and Tuesday from noon to 4:30.

Downtown Pawn opened in downtown Cape Girardeau this month.

Janetta Sachse-Ervin, who has been involved in retailing a number of years, is operator of the new Downtown Pawn shop at 38 N. Spanish.

"In addition to pawn items, we will specialize in new and used jewelry," Sachse-Ervin said. "We also have repair facilities for jewelry and will make new jewelry out of old jewelry."

The new store is open Monday through Friday from 8 a.m. to 5:30 p.m. and Saturday from 9 a.m. to 1:30 p.m.

Ivy Antiques Etc., an antiques and collectibles shop, opened recently in Cape Girardeau.

Steve and Debbie Hartwig are owners of the new retail business at 1027 Broadway.

Store hours are Monday through Saturday from 10 a.m. to 5 p.m.

"We have a wide range of antiques, including glassware, toys and quilts," Debbie Hartwig said.

The Country Hodge Podge shop has opened at Jackson.

The new business at 615 E. Jackson Blvd. offers crafts, gifts, antiques and collectibles. Booths are available for lease, and the business will accept items for consignment.

Merlin and Julie Williams own the new shop. Hours are Monday through Saturday from 9:30 a.m. to 6:30 p.m. and Sunday from noon to 5.

Tip of Illinois Health Services Inc. will hold an open house Friday from 3 to 6 p.m. to celebrate its new office in Olive Branch, Ill.

TIP, headquartered at Carterville, Ill., has a number of branch offices and provides physical therapy, speech therapy, occupational therapy, nursing, home health aide and hospice services throughout 23 Southern Illinois counties.

The new Olive Branch office serves residents in Alexander and Pulaski counties.