The Los Angeles Times from Los Angeles, California • Page 119

I i I J. -J (SECTION March 19 cct FRIDAY HIGHLIGHTS INDUS. AVG. 5.485.62 New Owners Plan to Widen OCN Coverage Broadcasting: Cable channel would grow into a network and include news from Los Angeles while sticking to 24-hour format. 0.72 elf i .11.

"ir T'T llll" MORE BOND TURBULENCE I Stocks closed broadly but modestly lower in the wake of another wild day in the bond market, where higher yields attracted buyers. D2 Orange County PLANS FOR OCN: Century Com-' munications plans to use the 24-; hour news channel as part of a local news network that will include Los Angeles coverage. Dl NEW DAY DAWNING: Disneyland will begin overhauling its long-outdated Tomorrowland on Monday with reconstruction of the old Carousel Theater site. Dl BANKRUPTCY FRAUD: A federal crackdown reveals Southern California is not only the U.S. bankruptcy capital but the bank- ruptcy fraud capital as well.

D6 I More Orange County Business Coverage, D6-D7. By DON LEE and GREG BRAXTON TIMES STAFF WRITERS The company that is buying Orange County's cable news channel is planning to expand into Los Angeles, which cpuld create the region's first 24-hour local news network. Century Communications a Connecticut-based cable firm with about 400,000 subscribers in the Southland, agreed this week to acquire Orange County NewsChannel (OCN) from Freedom Communications Inc. The price was not Mis-closed. A senior Century executive said Thursday that the plan is to build on OCN's experience and combine that with Century's cable subscriber base to create a local news and public affairs cable channel that would appeal to viewers and advertisers throughout the Southland.

It is expected to take three to five years to complete the cable network. "OCN's experience tells us there a crying need for more quality, up-to-date and more frequent local news," said William Rosendahl, a senior vice president at Century Communications in its Santa Monica office. Please see CHANNEL, D7 Photos by ALEXANDER GALLAHDO Los Angeles Timet The rails are all that is left of Tomorrowland's once-innovative People Mover, which word has it won't be coming back. A New Tomorrow a Theme parks: The formerly futuristic section of Disneyland launches an ambitious updating Monday with transformation of old Carousel Theater into hands-on Innoventions expo. A By MARLA DICKERSON TIMES STAFF WRITER ANAHEIM Disneyland's long-awaited Tomorrowland revamp is set to begin Monday, when construction crews will begin transforming the former Carousel Theater into Innoventions, a hands-on technology expo that will be the centerpiece of the themed area, sources inside the park have confirmed.

But the king of plastic surgery won't survive the Tomorrowland face-lift. "Captain Eo," a 3-D film starring ThetvVice President Richard Nixon and his family help Walt Disney dedicate the monorail system in 1953. Budget-Taxed IRS to Audit 18 Fewer Returns This Year Money: But penalties remain so harsh that noncompliance is considered unlikely to rise. 17 troubled pop star Michael Jackson, will be scrapped in favor of "Honey, I Shrunk the Audience," a family comedy starring Rick Moranis. Slated for completion in 1998, the New Tomorrowland will also feature a new thrill ride called the Rocket Sled.

But park visitors should wave goodbye to the People Mover. The beloved but doddering electric tram that Walt Disney envisioned as the future of public transportation will be scrapped as part of the Tomorrowland redevelopment. Full details of the New Tomorrowland Elsewhere COMPANY TOWN THEY'LL RATE: Major entertain-' ment firms have committed them-! selves to warning labels on TV programs. Al THE BIZ: Trade barriers have receded as an issue in Hollywood, James Bates writes. D4 OTHER NEWS MILKEN ACCORD: Michael Milk- en has agreed to remain on proba-, tion for at least 90 days longer as the Securities and Exchange Commission investigates whether he violated terms of a court settlement.

Dl LITTON VICTORY: A federal jury ordered Honeywell to pay $234 million in damages to Litton Industries for monopolizing a market for aircraft guidance gear. Dl FARM LEGISLATION: The louse gave final approval to a sweeping farm bill that would replace traditional crop subsidies. D2 COLUMNS MARKET BEAT: Americans are saying and investing more, but how is unclear, Tom Petruno writes. D3 CONSUMER BRIEFS: A leading credit card issuer has extended its credit limit to $100,000 on some MasterCards and Visas. D3 INDEX Tomorrowland has been a part of the Disneyland experience since the beginning, and has undergone many changes over the years.

Here's how it evolved: 1953: Disneyland opens with Tomorrowland as one of five themed areas. 1353: Vice President Richard Nixon dedicates monorail system, based in Tomorrowland. 1337: Revamped Tomorrowland opens with seven new attractions. 1975: Flight to the Moon attraction updated with the opening of Mission to Mars. 1977: Astronauts Scott Carpenter, Gordon Cooper, Wally Schirra and Alan Shepard dedicate opening of Space Mountain.

a 1SS6: "Captain Eo," a 3-D film attraction featuring pop singer Michael Jackson, debuts. 1SS7: Star Tours, an attraction designed by "Star Wars" director George Lucas, opens. 1S94: Skyway to Fantasyland ride removed. 13S8: Plans for refurbishment unveiled: "Captain Eo" to be removed and new attractions added, including Rocket Sled ride. G'odes Some Tomorrowland attractions of yesteryear and the dates they were removed: Skyway to Fantasyland, Flight Circle, 19GG House of the Future, 19G7 Flying Saucers, 19G6 Sources: Watt Disney "Mouse Tales: A Behind the Ears Lock at Disneyland" by Davtd Koenig; Times reports; Researched by JAMfci L.

JONtSLoe Angeles Time Space Rocket ride preceded real-life space shuttles by decades. By RALPH VARTABEDIAN TIMES STAFF WRITER WASHINGTON The Internal Revenue Service will audit 18 fewer tax returns this year, resulting from a sharp reduction by Congress in the agency's budget, IRS Commissioner Margaret Richardson said in an interview Thursday. The agency is planning to audit 1.4 of all returns this year, down from 1.7 last year a cutback at a time when the agency is increasingly concerned that long-term changes in the economy could make it harder to keep track of taxpayers. Still, tax accountants said Thursday that the penalties for cheating remain so severe that the audit cutback is unlikely to spur a rise in noncompliance. Nationwide, the IRS is cutting 8,000 jobs, reversing an effort last year to add 5,000, Richardson said.

Plans for a major new audit program, in which selected taxpayers would be subject to a line-by-line audit, were canceled late last year. "Unfortunately, we got caught in the budget problem like many other agencies," Please see AUDITS, D2 reconstruction are to be revealed later this month. But Disneyland officials confirmed Thursday that the first phase of the rehab is set to begin next week at the shuttered Carousel Theater, which has been off-limits to the public and used as office space by the park's Entertainment Division since 1989. Disneyland spokesman Tom Brocato said park visitors shouldn't notice many changes during the first stage of the Tomorrowland renovation. "The lion's share of the initial construction is all interior work," Brocato said.

"Guests aren't going to be affected by a lot Please see DISNEY, D6 Lob Angeles Times Milken Probation to Continue Amid Inquiry by SEC American Composite DIP Dividends DIP Futures DIP Investor Spotlight D9 Market Roundup D8 Mutual Funds Dll Nasdaq DIP New York Composite D8 NYSE Highs-Lows DIP Pacific Exchange DIP Treasury Issues DIP 111111,1 1 1 I I I I' I Business Services By Phone Call TimesLine, 808-8463, and enter one of the codes below. Stock Quotations 2000 Foreign Exchange Rates 2180 Mnrt care Rates 2200 Pentagon's Top Cop Hangs Up His Ledger After 14 Years on Job Defense: Derek Vander Schaaf ends a career that included plenty of political bombshells, and saved taxpayers billions of dollars. By RALPH VARTABEDIAN TIMES STAFF WRITER WASHINGTON After sending scores of crooked defense executives to prison and ending the careers of just as many senior military officers not to mention saving taxpayers roughly $25 billion the Pentagon's top cop is handing in his badge today after 14 years. When Derek Vander Schaaf was named deputy inspector general in 1982, not a single defense contractor had been convicted of fraud since World War II, and many experts were convinced that waste was a deeply embedded affliction of the defense industry. Over the next 14 years, the Pentagon's investigative apparatus cast a wide net and made a remarkable haul that included criminal convictions of virtually every major defense contractor as well as thousands of individuals and smaller firms.

The investigations were often political bombshells charges, for example, of sweetheart contracts, defective weapons, secret bailout plans, overpriced spare parts and cover-ups of big cost overruns. Real Estate Prices 2450 BySCOTJ.PALTROW TIMES STAFF WRITER NEW YORK On the eve of being freed from the criminal justice system, Michael R. Milken agreed Thursday to remain on probation for at least 90 more days while the Securities and Exchange Commission investigates whether he violated terms of a court settlement In a hearing before U.S. District Judge Kimba M. Wood in New York, the former junk bond financier's lawyers agreed to federal prosecutors' request for the extension.

Richard V. Sandler, Milken's lead lawyer, confirmed that the SEC launched a formal investigation several weeks ago into whether he had violated an SEC consent decree that banned him for life from the securities industry. The SEC investigation was sparked by reports that Milken recently has earned huge fees for giving advice in large corporate acquisitions. These reportedly include $50 million he is to receive for advising Ted Turner on the sale of his company, Turner Broadcasting System to Time Warner Inc. He was also reportedly paid for advice to financier Please see MILKEN, D4 Associated Press Derek Vander Schaaf sent scores of executives to jail.

Not surprisingly, many in the Pentagon came to fear Vander Schaaf. "I have mixed feelings about Derek," retired Rear Adm. Frank Collins said. "He brought great zeal to his job, and I can't say I saw him do anything underhanded. But I have the same reaction to Derek that I do to the Internal Revenue Service." Indeed, Vander Schaaf's probes that delved into alleged misconduct by generals and admirals invariably were the most sensitive, and often created bitter enemies who assert to this Please see DEFENSE, Dll Stock quote Instructions, D8 Stock Guide The Times annual stock guide, with year-end data, is available now.

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