The Philadelphia Inquirer from Philadelphia, Pennsylvania • Page 55

business Friday, Feb. 19, 1982 7-D Investment in looks like a hit, Taft says Phillies By Craig Stock Inquirer Stall Writer Taft Broadcasting Co. 's new affiliation with the Phillies was a smart investment for the company and its Philadelphia television station, WTAF-TV (Channel 29), Taft chairman Charles S. Mechem told a group of area financial analysts yesterday. Taft, which in October paid about $15 million for a 47.S percent interest in the Phillies, has a contract with the team to broadcast its road games on WTAF-TV for nine seasons, beginning in 1984.

Phillies games will be chem said. "We believe the team's, media value, including commercial television and cable television, is extraordinary," he said. For executives of Cincinnati-based Taft Broadcasting, another plus in becoming the largest shareholder in the Phillies, Mechem said, is that "it has helped those of us who are great Cincinnati Reds fans to finally get over the loss of Pete Rose." Ro D. Grignon, executive vice president and head of Taft's seven-station television group, said the Phillies games will help WTAF-TV's audience ratings, on which its advertising rates are based, in several ways. "Broadcasting the home teams helps with our local image," he said.

"Awareness of our station will be built by carrying the Phillies, and during the broadcasts we will have the opportunity to promote our other programming. Also, the ratings of shows leading into and following the games stand to benefit" Grignon, commenting that Philadelphia is the nation's largest television market with only one major-league baseball team, said the nine- time opposite first-run network shows and achieve high ratings. On WPHL, game ratings over the last two seasons have ranged from 8 to 16 (rating and audience shares have ranged from 16 to 30 percent. Movies, which are now run on our station during the comparable time periods, have an average rating of 4." Taft and the other owners of the Phillies could also profit eventually by charging cable TV subscribers to watch telecasts of Phillies' home games. year contract between the team and Taft was about twice as long as the usual baseball broadcasting agreement.

The 80 to 85 games a season that Taft will be able to broadcast will amount to about 240 hours of programming, Grignon said, or more hours of programming than all the 455 telecasts of "M'A'S'H" that it runs in a year. or any other top syndicated show, is not as valuable as major-league baseball," Grignon said. "Baseball can be run in prime broadcast this season and next by WPHL-TV (Channel 17), which has had the broadcast rights to the games since 1971. In their effort to tout Taft's investment value before a luncheon gathering of the Financial Analysts of Philadelphia, Mechem and other Taft executives outlined how the value of the baseball team extends far beyond its success on the field and at the turnstiles. The more than $30 million that Taft paid for rights to broadcast the Phillies road games was a bargain, Me- Dispute between 2 unions holds up new port service -jrrX; I i If I Arnold Zenker In 1967, as Cronkite's stand-in I 1' 1 Making the boss cool on camera By Terry Bivens 3 V---.

V. By Robert R. Frump Inquirer Stall Writer The first ship service in 15 years between Puerto Rico and the Delaware River ports, scheduled to begin this week, has been delayed by a dispute between the International Longshoremen's Association (ILA) and another union representing dock-workers. The two are fighting' over whose members have the right to load and unload cargo on new facilities planned on Petty's Island, a large island between Philadelphia and Penn-sauken, N.J., that is used mostly as a petroleum tank farm. At a time when ports along the Delaware River are facing a crisis of declining cargoes, the plans of Trailer Marine Transport Co.

(TMT) of Jacksonville, to inaugurate weekly service between Puerto Rico and Petty's Island have not received a warm greeting here. The company had planned to have its Petty's Island workers load a large barge, the San Juan, with 100 to 150 large containers of beer, according to officials at the Delaware River Port Authority. The barge remains unloaded because truck drivers carrying the cargo have declined to cross picket lines set up 10 days ago by three ILA locals. The pickets are protesting the company's use of members of the United Industrial Workers of North America, an organization affiliated with the Seafarer's International Union. "The first sailing has been postponed for a week due to picketing activity by the ILA which the company believes to be illegal," said Richard Simpson, a vice president of common carrier services for TMT's parent company, Crowley Marine Corp.

"TMT operates with union labor at all terminals in the South Atlantic, Gulf and Puerto Rico and pays area standard wages," he continued. "We are dedicated to resolving the labor issues so we can get on with doing business in a free-enterprise atmosphere." Knowledgeable maritime sources believe although TMT officials did not say so that the company favors the Seafarer's affiliate because its labor costs are significantly lower than the ILA's. The company filed two complaints of unfair labor practice with the National Labor Relations Board (NLRB) on Feb. 10 alleging that the ILA was illegally picketing "in furtherance of a jurisdictional dispute" at a time when the United Industrial Workers had been recognized as the bargaining agent for the Petty's Is- land dockworkers. Peter W.

Hirsch, regional director (See PORT on 8-D) i XtifV Philadelphia Inquirer J. KINGSTON COLEMAN ILA members warm up during picket duty at Petty's Island Wall Street brokerage acquires E.W. Smith Co. 't 'its' Inquirer Stall Writer Arnold Zenker, the beleaguered corporate executive's reincarnation of the hired-gun Paladin, laughed as he recalled an encounter several years ago with a panic-stricken businessman. "The guy had come up in the company through the finance department, and here he was confronted by television reporters asking questions," Zenker said.

"He said, 'My God, I'm an accountant. What do I know about show Enough, apparently, to call on Arnold Zenker. Since 1973, Zenker, a product of Wynnefield and a former stand-in for Walter Cronkite, has advised businessmen on how to deal with reporters or government investigators and their uncomfortable questions. The impeccably dressed, sophisticated Zenker hardly resembles Richard Boone's gruff character, but his knowledge of the ephemeral concept of "image" has proved as useful today as hard fists and bullets were in the Old West. "The basic premise is the average executive doesn't understand the media, he doesn't grow up with a microphone in his hand," Zenker, fresh from a session with an unnamed Philadelphia company, said during an interview yesterday.

(No, it wasn't SmithKline target of a recent "60 Minutes" segment, Zenker said; he said he has worked with the Rohm Haas Co. and the Sun Co. in Radnor.) "So in walks Mike Wallace with a (See ZENKER on 8-D) 4 HAT tion would enable Gruntal to establish "a meaningful presence" in this region while providing Smith's clients with a wide range of additional services. He said Gruntal, which was founded in 1880, has embarked on an expansion program that has added five new branch offlCPS in the rnrriAnr in By Ewart Rouse Inquirer Stall Writer E.W. Smith a Philadelphia brokerage, disclosed yesterday that it had been acquired by Gruntal one of the oldest brokerages on Wall Street, for an undisclosed amount of cash.

Under terms of the sale, the E. W. Smith Co. will be renamed the E. W.

Smith division of Gruntal, the parties said. Marvin A. Welsch, president of E. W. Smith, termed the acquisition "a great opportunity for E.

W. Smith to participate in the future growth of the securities industry with a firm that intends to become the primary regional firm in the Northeast corridor, from Boston to Washington." Howard Silverman, a- managing partner at Gruntal, said the acquisi the last two years. The acquisition of E.W. Smith, which has offices in Philadelphia, Newtown and Portland, Maine, will give it eight additional offices. Gruntal is a partnership with 14 active partners.

E. W. Smith, a privately held company, was founded in 1937 and has about 100 employees, according to Welsch. He said he would hold the title of special partner in Gruntal, while the other officers are being admitted to Gruntal in various other capacities. Philadelphia Inquirar JAMES L.

McGARRITY Today, Zenker advises firms on media techniques Factory use declines to level of 1975; auto plants set a 34-year low spread throughout manufacturing last month. It did not give an exact rate for the auto industry, but said utilization there was "lower than in any month since the beginning of the series in That would put factory use for automobiles and parts below the 45.4 percent rate recorded in November 1970. Preliminary, figures out of Detroit indicate at least a slight pickup in February. But a new surge in interest rates would be another severe blow troleum would be expected to drop during a recession: With companies operating at much less than full capacity, they would be. using much less fuel for machinery, heating and other uses.

Output by producers of petroleum products sank 7.1 percent last month, and was 5.9 percent below the 1981 average, Wednesday's report said. The overall manufacturing utilization rate for January was just above the 70.3 percent recorded in May 1975, during that year's severe Reserve figures showing the nation's industrial production falling 3 percent in January. Once again, the Fed said bad weather should get some of the blame. Last month's drop in capacity utilization reflected "both continued economic weakness and sizable cutbacks in work schedules prompted by the severe January weather," the report said. But no one was contending that weather problems were the main cause of the January decline, which fuiiuwcJ uiups of 1.7, 1.7 uiivl 1.9 per By Robert Furlow Associated Press WASHINGTON U.S.

manufacturers operated at 70.4 percent of capacity last month, the lowest level since 1975, according to government figures released yesterday. Among the hardest-hit in January was the auto industry, with an operating rate sliding to the lowest level in at least 34 years, the Federal Reserve Board reported. The decline of 2.6 percentage points in overall factory use was consistent with Wednesday's Federal centage points in factory use in the preceding three months, and which indicated that the recession was continuing to deepen. "The Reagan administration's hopes for an investment-led recovery are continuing to be depressed by utilization rates so low," said senior economist David Cross of Chase Econometrics in Bala Cynwyd, Pa. "You're not going to invest in new equipment if you're not using what you have." The new Fed report said large declines in facility use vvcic wide people buy cars on credit.

The new Fed report said other industries hard-hit last month included producers of petroleum products, a category that fell to its lowest utilization rate since May 1952 during a strike. Again, no exact figures were furnished. Cross said the continuing decline reflects "price-induced conservation" by Americans and greatly reduced business demand for leum products. The factory-use report itself gives tat leaauil buSii'icoa uCIUui'iu for pC- try, tccausc luuu First advance in a week for market Ford reports its 1981 loss topped the $1 billion mark Associated Press NEW YORK The stock market managed to post its first gain in a week yesterday, aided by a sharp drop in open-market interest rates. Trading was active, swelled by five block transactions of one million or more shares apiece.

The Dow Jones average of 30 industrials, which had fallen 9.03 points over the last four sessions to an ear-ly-1982 low at Wednesday's close, recovered 1.33 to 828.96. Volume on the New York Stock Exchange reached 60.81 million shares, against 47.66 million in the previous session. Moments after the opening, the second-largest block trade on record at the Big Board crossed the tape four million shares of Dow Chemical at 21. By the close, the stock had On the plus side, Sedco jumped 3 to 31. The company set an offer to buy at least 6.5 million shares of its stock for $33 apiece.

Hewlett-Packard, which came in with higher quarterly profits, added l's to 42. The company also reported a record level of incoming orders. On Wednesday most major banks across the country raised their prime lending rates from 16Vi to 17 percent. Nationwide turnover in NYSE-list-ed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 69.38 million shares. Standard Poor's index of 400 industrials picked up 0.12 to 126.86, and 500-stock composite index added 0.13 to 113.82.

At the American Stock Exchange, the market value index was off 1.19 at 271.01. Dow had said earlier in the week that it planned to swap four million new shares for about $140 million worth of its bonds held by Salomon Brothers Inc. Among the other million-share blocks that changed hands, two were in the stock of Sears, Roebuck and one each in Texaco and Boeing. Sears finished up Vi at 16, Boeing up at 19V2 and Texaco up at 30 Vi. American Telephone Telegraph, also heavily traded, fell 1 to 56.

Brokers said some investors were disappointed when the company's board decided Wednesday not to raise the dividend. Datapoint tumbled 5 to 28, resuming its recent steep drop. The company reported lower earnings for the quarter ended last month and announced a series of executive changes. security provisions at Ford. The company's 1981 loss came to $8.81 per share of common stock, compared with a loss of $1.5 billion or $12.83 per share in 1980, according to a statement from Ford chairman Philip Caldwell and president Donald Petersen.

Ford reported worldwide sales of $38.2 billion in 1981, up 3 percent from 1980. Earlier this month General Motors the leading domestic automaker, posted a $333 million profit for 1981, compared with a loss of $763 (See FORD on 13-D) Associated Press DEARBORN, Mich. Ford Motor the nation's second-largest automaker, yesterday said it lost $1.06 billion last year, including $346 million in the fourth quarter. The report was in line with the 1981 loss Ford had predicted during recent contract-concession talks with the United Auto Workers (UAW). The union's Ford Council has voted to recommend ratification of a tentative contract that would allow concessions in exchange for job- mm ira" Philip Caldwell Ford chairman reports loss climbed to 21 Vi, up Vi on the day.

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