Arizona Republic from Phoenix, Arizona on June 5, 1981 · Page 114
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Arizona Republic from Phoenix, Arizona · Page 114

Phoenix, Arizona
Issue Date:
Friday, June 5, 1981
Page 114
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'in -yij.' VJ'IJ ''U1 WWV' it 1 y ) I '''I Tl"'l '" r"l"l " I 'r1 I """ ' " "I ' I " I " ''Tf""T " 1" 1 'I" T'l fTT-r'r,lr' F 'I "r1""'!" ' "I'l'VTi '' r u - t REPUBLIC FINAL The Arizona Republic Friday, June 5, 1981 0 A EM Kil Today Rates for home mortgages climb to 16.1 percen Dollar up; gold, silver down The dollar rose to its highest level in nine years Thursday as the British pound and key European currencies both came under heavy selling pressure. Gold and silver prices declined. Gold closed at $465.20 on the Commodity Exchange Inc., a drop of $4.60 an ounce. Silver fell to $9.95 a troy ounce before closing at $10.10. Merger approved The New Jersey Board of Public Utilities has approved a proposal by the Westing-house broadcasting interests to acquire Teleprompter Corp., a nationwide cable-television firm on condition Teleprompter fulfills commitments to upgrade services. Motorola official shifts Motorola executive Alfred Stein has been named Arrow Electronics Inc.'s president and chief executive officer six months after a hotel fire killed 13 of Arrow's executives. Stein, 48, assistant general manager of Motorola Inc. Semiconductor Group here, also has served as general manager of the integrated-circuit division. Before joining Motorola, Stein was associated for 17 years with Texas Instruments Inc., most recently as vice president and manager of its electronic-devices division. Chrysler foresees profit Chrysler Corp. Chairman Lee Iacocca confidently predicted to a stockholders meeting that lower interest rates could help the company, which lost a staggering $1.7 billion in 1980, to turn a profit or at least break even in the second quarter of 1981. Unionist backs pact United Mine Workers President Sam Church said he "wouldn't know what to ask for" if the union's 160,000 striking soft-coal miners reject a proposed contract Saturday. Deal with China Atlantic Richfield Co. and Santa Fe International Corp. announced an agreement with the People's Republic of China to look for oil and gas in the South China Sea. The area is a part of the same area in which ARCO and Santa Fe earlier conducted seismic and geophysical studies. Sears settles Sears, Roebuck and Co. and the Equal Employment Opportunity Commission have settled out of court four suits charging the firm with racial discrimination in employment practices. Farm subsidies The Senate Agriculture Committee approved legislation to eliminate the federal interest subsidy for farm ownership and emergency disaster loans and to reduce the subsidy for rural electric and telephone loans. Inside: Stock market The stock market finished with mixed results Thursday when several banks raised interest rates, putting a crimp into hopes of a spring-summer rally. Trading was moderately active. The Dow average lost 2.97 points, to 986.74. C5. Ramada will present $508,000 to agency A total of $508,000, raised by Ramada Inns throughout the United States and Canada, is scheduled to be presented to the National Easter Seal Society this morning at Ramada headquarters, 3838 E. Van Buren. Society Executive Director John Garrison and Matthew Huston, Arizona's 8-year-old Easter Seal poster child, are expected to be on hand to receive the check. The Easter Seal Society is a volunteer organization that provides services to disabled people. Ramada's Arizona hotels raised $53,250 and headquarters personnel donated $15,250. Associated Press WASHINGTON Interest rates on home loans for new single-family houses soared last month to an average of 16.1 percent, the highest since the all-time record of 16.59 percent in April 1980, it was reported Thursday. The Federal Home Loan Bank Board report seems to be in line with recent complaints by numerous housing-industry spokesmen that rates have risen so high that few Americans can afford loans for new houses. The average rate fell to 12.52 percent last August but has been rising since, along with interest rates in other parts of the economy. The bank board's average is based on a survey of loan commitments of large savings institutions offering 25-year mortgages covering 75 percent of the purchase price. The average for early May was more than one-half a percentage point higher than the 15.53 percent average recorded one month earlier, the board report said. "The sharp advance in rates reflected both substantial withdrawals of funds from thrift institutions, which are typically large mortgage -lenders, and the general rise in long-term interest rates," the report said. The bank board had reported earlier that the nation's federally chartered savings-and-loan associations experienced a record $4.63 million "outflow" of new savings deposits in May. In the second half of 1980, the housing industry had recovered somewhat from its severe slump of earlier in the year. But the picture has darkened again in the first months of this year, with poor results reported consistently for housing starts, building permits, sales of new houses and resales of old ones. The government reported earlier this week that sales of new houses fell 13.5 percent in April, and Bob Sheehan, an economist for the National Association of Home Builders, said sales may have worsened since then because "May is when rates really took off." Jack Carlson, chief economist for the National Association of Realtors, said recently a substantial recovery in sales "is not likely until mortgage interest rates recede from the current level of 15 to 16 percent." "There's a real fear among builders that I haven't seen before," he said. "They are fearful that this thing isn't going to get better soon enough for them to survive." Windmill that lifts water in a breeze is turning heads of Chinese, Navajos By Frank Vaughan Republic Staff The Navajo Indians, China and a Scottsdale firm that has a manufacturing plant in south Phoenix share an interest windmills. That interest resulted in a visit Thursday by Chinese Ambassador Chai Zemin to the Wind Baron Corp.'s manufacturing plant, where a new type of windmill is being developed. Today, the ambassador will visit a test site for the windmills in the Window Rock area of the Navajo Indian Reservation. "The Navajo people would like to contribute to conserving energy, and one of the areas of concern is providing our people with water for domestic and livestock uses at minimal costs," said Samuel Pete, executive administrator for the Navajo Nation. He said the Navajo are interested in alternate forms of energy, such as solar and wind. "Coincidentally, the Chinese people are also interested in the same forms of energy," Pete said. For the past year, the Navajos and Wind Baron have tested a windmill that can pump water with winds at speeds that previously weren't sufficient to lift the water. According to Richard Sutz, Wind Baron's president, windmills normally require winds of at least 15 mph to pump water from 300 feet. Unfortunately, winds that strong only occur 20 percent of the time over the Earth's surface. Windmill, C4 If i jsSk jjK - ' I f g - .tjL "' r rj jL" Jl' TWMfiifiiiiirir'lf"fiir-'"ifTiA,ifJf'-i""'iii'it 'ffiiiYnl Mmb MauiiiiittiW xWv:v,. r' iawiinfam. Chai Zemin, ambassador to the United States from the People's Republic of China, examines part of the rotor of a new type windmill that pumps water efficiently using winds as low as S mph. The windmills are produced by the Wind Baron Corp. of Phoenix. Big U.S. retail chains report healthy sales gains for May K mart Corp., based in Troy, Mich., and the second-largest retailer, said its' May sales rose 9.9 percent, to $1.24 billion. J.C. Penney Co. Inc., ranked No. 3, said its May sales rose 8.2 percent, to $802 million, from $741 million a year earlier. Walter Neppl, vice chairman of the New York-based J.C. Penney, said demand was strong for seasonal fashions, sporting goods and home furnishings. F.W. Woolworth Co., the fourth-largest retailer, said its May sales rose only 1.2 percent to $550.8 million. Woolworth, which also operates the Woolco chain, said its overall sales were hurt by a 7.6 percent decline in its foreign sales expressed in U.S. dollars because of foreign exchange differences. Its domestic sales rose 6 percent from a year ago. Montgomery Ward & Co., the Chicago-based unit of Mobil Corp., posted an 11 percent increase in May sales, to $413.2 million, from $372.5 million. Associated Press NEW YORK Most of the nation's major retailers Thursday reported healthy sales gains last month compared with May 1980, when retail sales were depressed by recession and credit controls. Some companies and retail analysts also attributed the gains to a strong demand for durable goods and steady growth in consumer confidence to acquire more debt because they feel inflation is slowing. "Within the context of a slowing economy, the year-to-year figures look pretty good," said Jeffrey Edel-man, a retailing analyst with the investment firm of Dean Witter Reynolds Inc. Sears, Roebuck and Co., the nation's largest retailer, said sales for the four weeks ended May 30 were. $1.44 billion, up 12.7 percent from $1.28 billion in May 1980. Edward Telling, chairman of Chicago-based Sears, said durable goods including refrigerators, television sets and other "big ticket" items led sales. Indicted Teamsters president easily is elected to 5-year term United Press International LAS VEGAS, Nev. Indicted Teamsters leader Roy L. Williams was elected overwhelmingly Thursday to a five-year term as president of the nation's largest union. "I'm tired," Williams told reporters as he walked off the convention floor. "I'm going to do the very best job I can. I feel we can make great accomplishments in the next five years." Williams, 66, defeated dissident leader Pete Camarata, 35, of Detroit, who conceded after one hour elapsed in a roll-call vote. Williams said only 10 of the 2,100 delegates voted for Camarata because all those who had not voted before the end of the roll call were placed in his column. Williams will be sworn in today as head of the 2 million-member International Brotherhood of Teamsters. Del Webb Corp.'s trial on federal count to begin in Nevada Conspiracy, tie to fraud alleged in hotel addition By Susan Carey Republic Staff A trial on charges stemming from a federal indictment of the Del E. Webb Corp., a Webb vice president and six other defendants is scheduled to begin Monday in U.S. District Court in Las Vegas, Nev. U.S. District Court Judge Edward C. Reed Jr. of Reno, Nev., will hear the case, which is expected to be limited to the first count of a 43- count indictment handed up on Sept. 4, 1979. Webb is named in only the first count The charges are conspiracy to commit mail fraud and wire fraud and interstate transportation of money and property obtained by fraud. According to the 1980 Webb annual report, "the matter arose out of the construction of the high-rise addition to the Aladdin Hotel, for which the company acted as general contractor." The report said, "It is alleged the company, through its representa tives, agreed to facilitate the diversion and misappropriation of Teamster pension-loan funds to certain of the other defendants by concealing payments to them as fees, finder's fees and commissions." The Phoenix-based Webb Corp. and James Comer, vice president of its Nevada Contracting Division, are named as defendants, as is the Aladdin Hotel Corp. Court records list the five other defendants as Lee Linton, Sorkis Webbe, Fred Kennedy, Robert Tindell and Dennis Piotrowski. The trial has been delayed repeatedly by proceedings initiated by the U.S. attorney's office. Jeff Anderson of the U.S. attorney's office in Las Vegas is the prosecutor Webb has retained Las Vegas attorneys John Lusk and Samuel Lionel Webb, which holds a 50 percent, interest in a partnership in a nearly renovated casino hotel in Atlantic City, N.J., is awaiting a temporary casino permit from New Jersey gaming officials. According to the annual report, those officials "have indicated that they will oppose the granting of a temporary casino permit ... unless (the) indictment ... is resolved to their satisfaction." An alternative would be to remove Webb from management of the property, the Claridge, until the case is resolved, the report said. "In the event issuance of a temporary casino permit or casino license is denied or revoked ... by New Jersey casino authorities ... the company - Webb, C4 Job-organization founder urges new crusade to help poor Demand-note plan proposed for ailing thrifts A plan to allow troubled thrift institutions to bolster their assets with credit certificates from federal insurance agencies would not require legislation and could buy the firms time until economic conditions improve, Deputy Treasury Secretary Robert Mc-Namar said Thursday. McNamar attended the annual National' Convocation of the Opportunities Industrialization Centers of America here. The non-cash certificates called demand notes would be issued by the Federal Savings and Loan Insurance Corp. or the Federal Deposit Insurance Corp. to thrifts whose net worth was in danger of falling below statutory Reserve limits, McNamar said. The notes could be counted as assets on the firms' balance sheets and also could be used to get cash from the insuring agencies if needed. The notes would stave off regulatory actions and credit-rating agencies until the savings institutions had a chance to recover. he said. Although profits are off industrywide, interest rates are coming down and recovery could come as scon as the third quarter, McNamar said. "This is a temporary problem," he said. "There may be isolated failures ... (but) we're confident the thrifts will pull through." The agencies that regulate financial institutions the Federal Reserve Board and the Federal Home Loan Bank Board already have sufficient authority to approve demand notes, McNamar said. The notes could be presented by the institution if it was having liquidity problems. If trouble persisted, the institution "probably would be regarded as failing and be merged," he said. In the case of a failure, one of the insuring Thrifts, C4 Industry asked to aid in cutting unemployment By Linda Stowell Republic Staff The Rev. Leon Sullivan, winding up the national convention of a jobs organization he founded, pleaded for a new crusade to build an army of volunteers and for industry to create more jobs for the poor. Sullivan, who founded the Opportunities Industrialization Centers of America 17 years ago, said, "By 1982, I want OIC to have 25,000 more volunteers, and by the end of the decade, I want OIC to have 1 million volunteers. I want 10,000 businesses to commit themselves to youth and OIC by next year. If business wants free enterprise to work, it must help the poor." Sullivan told the 2,600 listeners at the closing banquet Wednesday tha this country is in a "crisis" because of unemployment. "Something must done about jobs in this country before the restless youth explode. We can't sacrifice our youth on the altar of a balanced budget and anti-inflation programs," Sullivan said. "It's easy to say it isn't so bad when you have a job." Another speaker, Robert McNamar, deputy secretary of the Treasury, said despite the troubles the nation has faced during the past 20 years, America's "spirit" has lived on. "Even though we have had assassinations, racial riots, political upheavals and a tragic war, I still see the American spirit," McNamar said. "I see it in a bunch of kids on the American hockey team, in the American space shuttle and in Sugar Ray Leonard." He said inflation and unemployment fall hardest on the poor and disadvantaged and noted that the Reagan administration supports the efforts of the OIC, which provides training and job placement to the poor and disadvantaged. Other comments supporting OIC's projects Industry, C4 KOOL officials file countersuit against minority stockholders Gene Autry. Gulf United accused of racketeering The second salvo in a bitter corporate battle was fired Thursday in U.S. District Court in renponse to allegations that three Phoenix broadcasting executives were attempting to sytematically "loot and ravage" the assets of KOOL Radio-Television Inc. Officers of KOOL (Channel 10, a CBS affiliate) accuse the company's minority stockholders, Gene Autry and Gulf United , Corp. of Florida, of racketeering, breach of contract, defamation of character, intentional interference with business and attempted theft by extortion. The filing is a denial and counterclaim to a suit filed May 13 by Gulf United and Autry in which KOOL President Tom Chauncey, his son, Tom Chauncey II, and Homer Lane, company vice president, are accused of misuse and misappropriation of the company's assets for their personal gain. The 33-page countersuit categorically denies the previous allegations and details charges. The suit describes an "unusually close personal and business relationship between (the older) Chauncey and Autry" extending "through the years." It says that relationship began to break down in 1978, when Autry "began attempting to induce and persuade Chauncey to enter into an agreement with Signal Oil whereby Signal Oil would be given an option to purchase Chauncey's interest in KOOL upon Chauncey's death." Chauncey then began to negotiate for acquisition of Autry's interest in the company, the suit says. Those talks ended April 28 when Autry "abruptly advised Chauncey that he had sold his stock to Gulf United Corp." Gulf United bought half of Autry's interest and acquired and option for the balance. Court records reflect the current ownership percentages to be: Tom Chauncey, 49.89; Homer Lane, 2; Gene Autry, 24.055; and Gulf United, 24.055, The suit says Chauncey was defamed by Autry when Autry provided information to Gulf United that led the to charges of unlawful misappropriation of company funds detailed in the May 13 suit. KOOL's countersuit also alleges Autry and Gulf United attempted to buy Lane's share of the company by various "threats" and that those threats constitute attempted "theft by extortion (racketeering)" on the part of Gulf United. The counterclaim also charges that the Gulf United-Autry suit damaged Chauncey "in excess of $25 million." The KOOL suit asks an for unspecified treble-damage judgment.

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