The Honolulu Advertiser from Honolulu, Hawaii • 17

0. Housing market FRIDAY, Jan. 4, 1991 The Honolulu Advertiser A17 Dow JonM Commodity kKtomt Recession may bankrupt unemployment funds State urwTptoyrnorrt trust tunds are running out as more workers lose their Jobs. States whoso funds are almost gone: May bt bankrupt by mid-year May have sufficient fund Many Mainland states running out of jobless funding 1 1 Tzvrol 1 1 1 1 1 1 1 3 May be bankrupt by December Oct. SOURCE: Ubar Department.

AP Associated Press WASHINGTON A deep recession that continues putting Americans out of work could bankrupt the unemployment trust funds of at least eight states by midyear and another 20 states by December, according to government figures. The strain on the nation's unemployment system already eroded and providing benefits to less than half of America's 7 million jobless -will only worsen in coming months as the economic slump persists and more layoffs occur, predicted Rep. Tom Downey, acting chairman of the House Ways and Means subcommittee on human resources. Since June, an additional 1 million Americans have been added to the ranks of the jobless. Many analysts say the recession acknowledged Wednesday by the Bush administration could put another 1 million Americans out of work this year as unemployment rises to as much as 7 If state unemployment fund3 do go bankrupt, no workers who qualify for benefits would be in danger of going without, because states can borrow from the federal government's $3 billion reserve fund.

A Labor Department official said it is "highly unlikely" the federal reserves would ever run dry. Still, critics of the current system say its inability to help more people, and its threatened solvency, demonstrates that Congress and the states should have been beefing up unemployment trust funds during better economic times. They complain that fewer Americans are receiving help in 1975 about three-quarters of the out-of-work Americans received benefits because states have tightened eligibility requirements to avoid raising taxes on businesses. "Bad times are here and we've ignored all the warning signs," said Downey, who failed in each of the past two years to get Congress to raise taxes on businesses to bolster unemployment trust funds. December's unemployment Knight-RkMerTrlbunt NewiWENDY COVER said his figures showed only about a third of the unemployed were receiving benefits.

The number has shrunk because states have changed the rules to require, for example, that workers have more tenure with a company and earn larger paychecks before qualifying for government aid. In addition, the federal government has trimmed its payments to states for administra- See Jobless, Page A19 Today's Record payout in pension case In the biggest payout ever for violations of federal pen. Bion law, Continental Can Co. has agreed to pay $415 million to employees laid off under a secret, computerized plan to keep them from qualifying for pension benefits. 1 In some cases, laid-off workers were within weeks or months of qualifying for the pensions, which amounted to $300 to $600 a month and carried a $300 to $400 monthly supplement until age 62, as well as health and life insurance through retirement.

The settlement affects more than 3,000 former Continental Can workers at more than 45 plants across the U.S. U.S. computer chips gain bigger market U.S. semiconductor makers increased their share of the world semiconductor market for the first time since 1979, due in part to strong sales by Intel and Motorola, a report said. The study by San Jose-based Dataquest Inc.

shows that semiconductor sales by U.S. companies grew to 36.5 percent of the $58.4 billion worldwide market in 1990 from 34.9 percent in 1989. The market share of Japanese companies declined to 49.5 percent from 52.1 percent. Sears lays off 21,000 employees Sears, Roebuck and Co. has started eliminating 21,000 jobs from its stores nation- numbers come out today and many analysts think another 150,000 jobs were lost last month and that the nation's unemployment rate probably jumped again from November's 5.9 percent level, probably to over 6 percent.

The Labor Department said as of December, roughly 3 million of the nation's 7 million jobless, or 43 percent, were receiving unemployment benefits. Jim Ellenberger, an unemployment expert at the AFL-CIO, wide In an effort to streamline operations and maintain profits, the nation's largest retailer announced yesterday. Sears began sending employees pink slips this week and will continue cutting administration and operations positions at its 863 stores through June 1, a Sears spokesman said. Beech-Nut to offer organic baby food Baby food giant Beech-Nut said it will introduce a broad line of organic infant foods. With the debut of the 22-item "Special Harvest" line, Beech-Nut becomes one of few major food concerns to attempt to answer consumer demand for more food grown without synthetic fertilizers and pesticides.

Beech-Nut, a division of St. Louis-based Ralston Purina controls about 17 percent of the $1 billion baby, food market. Bilzerian loses court appeal An appeals court has upheld the conviction of former Singer Co. chairman Paul Bilzerian, a renowned 1980s takeover investor who received a stiff sentence for securities and tax fraud violations. Bilzerian, who had been free on a $250,000 bond pending his appeal's outcome, was convicted in June.

1989 of nine counts. He was sentenced to four years in prison and fined $1.5 million. A three-judge panel in Manhattan federal court yesterday rejected Bilzerian's argument that he was denied a fair trial. 'i Chrysler cars top state's 'lemon' list U.S. manufacturers garner the most complaints again Robert Aim, director of Commerce and Consumer Affairs, said the average cash refund awarded to owners of Chrysler-built vehicles $20,000 was more than two and one-half times those awarded to customers of any other auto manufacturer.

Chrysler vehicles include Dodge, Eagle, Jeep and Plymouth General Motors-built vehicles also garnered 25 complaints, but their market share is considerably larger than Chrysler's, Aim said. During the one-year period GM sold 85,256 cars and light trucks, for 43 percent of the market. Chrysler sold 5,108 vehicles during the same period. Aim singled Toyota but for special mention. With 11 percent of the Hawaii auto market, it only received one complaint, or one percent of the total filed.

"We feel that Toyota's excellent record deserves special mention," Aim said. "We believe this survey reflects the degree to which the different auto manufacturers have provided defect-free automobiles, as well as the degree of their responsiveness to their customers' complaints during the past year." In 1988 the Legislature passed a law requiring car manufacturers to replace or refund the price of a new car that is "substantially impaired in its use, market value or safety." The lawmakers also set up an arbitration program to help consumers who are unable to resolve their problems with See Autos, Page A19 By Christopher Neil Advertiser Business Writer U.S. car manufacturers top the state's annual "Lemon List" for the second year in a row, the state Department of Commerce and Consumer Affairs said yesterday. Heading the complaint list was Chrysler with only 6 percent of the state auto market but with 27 percent of the 92 complaints filed against auto manufacturers during the one-year period from September 1989 to September 1990. Under Hawaii law, a car qualifies as a lemon if it has been repaired three or more times for the same problem or has been out of service for 30 business days during the warranty period.

Two projects at Ko Olina fall behind Mr ir -Trnli'K. i. Developer Herbert Horita, a partner in the Royal Ko Olina project, was not available for comment yesterday. But a spokesman said Horita probably will address the project's status in a statement today. 5 yK tractor working on Royal 4i i.

loughed workers had not been recalled, but the driving of 4,300 piles for Royal Ko Olina's foundation is still going on. The site for the planned hotel project was sold to Town Development in September 1989 for $75 million with the stipulation that work begin in a year and be finished by the end of 1992. Ground has yet to be broken for the project. Moreover, the company originally named as the manager of the hotel recently said it would not be overseeing the property. Loews Hotels said it had been unable to reach an agreement with the developer.

Town Development, which also bought four other hotel sites at Ko Olina for $110 million, could not be reached for comment yesterday. The company does not have a telephone number listed in Honolulu. By Greg Wiles Advertiser Business Writer Work on one project at the new $3 billion Ko Olina Resort on Oahu's leeward coast remains stalled while another one is several months behind schedule. While piles are still being driven for the 331-unit Royal Ko Olina condominium, one of the most expensive condominium projects ever planned in the state, workers furloughed in September have not been recalled. And a planned hotel is several months behind its originally projected ground breaking.

Two other projects at the massive resort site are continuing on schedule, however. Pan Pacific Hoteliers' $9 milliorrgolf course clubhouse is scheduled to open in February and its 400-room Hotel Ihilani is targeted for completion late next year. The golf course opened early last year. struction temporarily laid off 125 workers when construction slowed. A required permit for structural work had not been obtained and caused rr i i i lii'l MIIIWHI lT' 'v said at the time.

Horita ine cuy jjepariment oi Building yesterday said the permit has not been issued and is awaiting a zoning approval. A General Construction Co. spokesman said the fur 1 00 ooooo ALL NEWCARS KITV parent files for Chapter 11 OKUMURA TAKUSHI FUNAKI WEE Announces the retirement of Joseph K. Wee, the departure of Shuichi Miyasaki, and the change of the firm name effective January 2, 1991 to TAKUSHI FUNAKI WONG Ei STONE AIR-CONDITIONING. Offer available on Oahu, Maui, Kauai, Hawaii and Molckai January 1-February 14, 1991 (excluding January 8-14, 1991 on the island of Hawaii).

Plus FREE Admissions, Meals and Gifts worth hundreds of dollars to save you even more! On Oahu, phone 599-2205 for information and reservations. 7s it to sell off some of its stations and repay its debts. "Because of their own mounting financial and regulatory problems, some of the banks wanted to force us to take steps that would not be in the best interest of our employees and the public we serve," said Sharad Tak, president and chairman of privately-held Tak Communications. Sharad Tak said while his company has more than enough cash to meet its current debt schedule and cover operating expenses, the banks want the firm to pay its loans off faster by selling off at least one major broadcast station in a depressed market The petition for reorganization will protect the company's assets while allowing it to continue negotiations with its creditors, he said. Dick Schaller, KITV general manager, said yesterday the station has just had its second best year ever and that "we will conduct our business as usual tomorrow and into the future and we expect no layoffs or changes." By Christopher Neil Advertiser Business Writer Tak Communications parent company of KITV-Chan-nel 4, yesterday said it filed a Chapter 11 bankruptcy petition to gain protection from its banks, who are pressuring it to sell off some or its broadcast stations.

KITV executives said the move will allow it to reorganize, and that it would not affect the station's operations or result in any of its 108 employees being let go. Last November, Tak said It had reached a tentative accord with its banks that would allow it to restructure its debt and "continue to build operations around the country." As a result of that agreement, Tak said, the banks withdrew a request for a federal court to appoint a receiver for the company's nine stations. KITV executives said a consortium of East Coast banks -including the financially troubled Bank of New England filed suit in federal court against Tak in October to force Wayne M. Tanna Roy E. Takushl Alfred M.K.

Wong James N.H. Yee Aaron S.H. Yoo Robert M. Ehrhom, Jr. James T.

Funaki Ann Kurihara Dickson C.H. Lee Christine E. Mural Peter T. Stone Rent a Car Bent and save from a company you can trust! In Waikiki, Airports and Sears locations. Suyeki Okumura, Of Counsel TAKUSHI FUNAKI WONG STONE ATTORNEYS AT LAW, A LAW CORPORATION SUITE H00 GROSVENOR CENTER 733 BISHOP STREET HONOLULU.

HAWAII 96813 PHONE: (808) 543-9800 FA (808) 543-9669. 599-1950.