The Honolulu Advertiser from Honolulu, Hawaii • 37

-epSS f-' yniy- I 111 "I I' l'I'TI ip nr'r ''f' I I I -iir(iii r-ymfmy ij -(-y--1 T' a 'I "'a yyyyy C7 stocks Market report 7 Shipping MlOlTD The Honolulu Advertiser Friday. June 23, 1989 Welfare insurance battle heats up ftHil-Alk Market Data Bank Kill Hi KPT June 22, 1989 men D0W; 248117 ,17 Si 3 322,32 1.84 NYSE 1 80.05 40.87 Jh Gl3nC6 AMEX 362.21 1.14 I NASDAQ 445.33 1,47 Federal government says Medicaid involvement unfair few years ago. after Hawaii enacted no-fault. Aleshire By Ilene What happened was that some years Latest economic reports send Dow up by 17 The GAO concluded that the state is shifting welfare recipient's medical bills, which should be paid by the insurance companies, to Medicaid. It also said that Hawaii repay more than $1.4 million in Medicaid funds that were spent on welfare recipients whose bills should have been picked up by private insurance companies.

The state disagreed, saying that the Joint Underwriting Plan is not a "private insurer" but rather a plan to protect the public from uninsured drivers. If the GAO analysis is upheld, deputy attorney general Thomas Farrell said, the state faces the choice of abolishing free insurance for welfare recipients or forcing private insurance carriers to pay medical costs that would normally be covered by Medicaid. In 1987, 7,340 vehicles received free no-fault insurance, representing 1 percent of the insured vehicles in Hawaii, excluding motorcycles, according to the state insurance division. The basis for the federal challenge is a section in the Social Security Act relating to Medicaid that became law a few years Xlrerliurr Gmxumtr Writer The slate and federal governments are locked in a battle that will determine whether Hawaii can continue to offer free no-fault automobile insurance to welfare recipients, and at what cost. When Hawaii enacted its no-fault law in 1974, requiring everyone to carry automobile insurance, it provided that people receiving welfare could obtain basic liability coverage for free through a Joint Underwriting Plan.

The cost of the plan, which also includes high-risk drivers, is spread among all the automobile insurers in the state, who may then pass it on to their customers. The theory was that this is more fair than having a few unlucky people bear the cost of oeing hit by an uninsured motorist. (Liability coverage only pays someone who is injured by the insured driver.) Hawaii's free no-fault program specifically excludes medical coverage for welfare recipients, even though someone in the vehicle who is not on welfare is covered, the federal General Accounting Office said when it reviewed the program a ago insurers were putting provisions in (their policies) saying Tf you hit a Medicaid recipient we're not going to Farrell said. "Under such a policy, if an insured driver ran over John Q. Citizen, the insurance company would have to pay for Mr.

Citizen's expenses. But if the same driver ran over a welfare mother, the insurance company would get off scot-free and Medicaid would be stuck with the bills." The federal government rightly saw this as an attempt on the part of some insurance firms to welsh on their obligations. Farrell said, and cut off federal Medicaid funds in such cases. The federal government has also, however, said that Hawaii's plan providing free liability insurance to welfare recipients falls in the same category. Hawaii already has lost an administrative appeal and.

late last year, it filed suit in U.S. District Court against the Secretary of Health and Human Services, Otis Bowen. seeking a judgment that the no-fault program doesn't violate the Social Security Act. Tokyo Markets The Nikkei average of 225 Tokyo Stock Exchange issues closed at 33,530.71 points, up 205.74, on Friday (last night, Hawaii time). The dollar closed at 140.35 yen, down 1.05 yen from Thursday.

By Gerald M. Connors Ynrk Vaily Sew N'EWYORK The slow, low no theory of economics, dubbed "soft landing" by analystsV took hold in the securities! 'markets yesterday, propping "up" both stock and bond Wo'stfects and predictions thaOrfle economy will slow while inflation stays low with no 'recession carried the Dow Jones-industrials 17.26 higher to 2.482.17 and the transportation index to its third straight record high, up 7.28 to 1.177.88. The trading pace on the New York Exchange quickened to 176.5 million shares from 168.8 million Wednesday, and advancing issues led losers, "It's not superaggressive buying:" teald First Albany chieTrot institutional trading, Ron Doran, "but I get a sense that people are willing to addon In the news, the Commerce Department revised first-quarter gross national product growth upward to 4.4 percent from the 4.3 percent previously estimated. However, an impor- tant inflation the implicit price deflator, was reduced to show a 3.6 percent rise from the earlier reported 3.9 percent. Analysts said the inflation news buoyed both the equity and fixed-income markets in that it gives the Federal Reserve Board more leeway to reduce interest rates.

And an American Bankers Association group of economists predicted growth this year and next at close to 2 percent, with further easing of credit conditions by the Fed. The 2 percent rate, the panel said, would not trigger an upsurge in inflation and would be sufficient to maintain economic prosperity. The economists also forecast a dip in inflation to 5 percent. If i 4 i- Dow Jones industrials "'Vi? 1 I -own High 2,489.76 Low 2,452.77 '-'MKMV 2500 NYSE Average jtI3S'jh L(J 111 25 32 15 22 May June 17 F2300 2,482. Up 17.26 June 22, 1989 KITV gets offer from L.

A. firm Station considering sale to Cassara By Greg Wiles Mherlher Bunhtem Writer KITV-Channel 4, long the subject of sale rumors, is considering an offer from a Los Angeles television executive. Jim Matthews. KITV general manager, yesterday confirmed an offer was on the table and being considered by Tak Communications, a Vienna, Va. company that a little more than two years ago paid S50 million for KITV and its two satellite stations, KHVO in Hilo and KMAU in Wailuku.

The sale price was a record for a Hawaii television station at the time. Matthews said the offer no figure was given from television executive Anthony Cassara had not yet been accepted by Tak. A number of rumors have circulated in recent months about the sale of Honolulu TV stations, the most recent being the possible sale of KHON-TV. Cassara's name was mentioned at that time as being the suitor. In recent days Cassara's name resurfaced in connection with KITV, ranked number three in the ratings among Hawaii network television stations.

Knowledgeable industry sources said several days of ne- 2100 25 52 8 15 22 'May June Most Active Stocks ew Yot Advertiser photo Activity on the KITV news set earlier this year: sale to Los Angeles firm may be imminent Close Chg EchoBay 290 200 14 FiAust 285.100 9' MtchlEng 262.500 Trends Market Indexes New Yor Close Change lnde 180.05 087 Industrial 215 60 Transport 176.18 1.92 Utility 87 96 0 74 finance 153 22 0.10 American Close Change Wed rdex 362.21 1 14 617 NASDAQ 842 Close Change 495 NMS Compos 194 35 -065 1954 NMSIndust 169 70 0 71 71 OTC Compos 44533 1 47 22 Slock Sales BuBoswn. 7 366.600 SwfOj. 3.270.200 Navistar 2 240.700 RJRHWpt 1.978.700 ,872.200 Svnlei 1.783.500 1752.100 stereo 1.749.600 IBM 542.100 UnCarbde. 1 437.100 WrmCmm. 1 434,000 'cDnld 1.347,400 Gentle! 1 290.100 Nmnt 1 239,400 ntegRw 1.222.400 28'.

20' 5'- 23 11 51 36' 2 109'i 2B 59' 291 53H 40' 4 1'i 4 Chg 3 it 1 New York Thy Advanced 8' 3 Declined 626 Unchanged Total 1967 New highs 67 New lows 15 American Thu Advanced 303 Declined 278 Unchanged 256 total 837 New higns 20 New tows 8 gotiations have taken place with Cassara and that reportedly Tak may retain an ownership interest in the ABC affiliate if the sale goes through. "It would be a very attractive station to purchase depending on the price," said Richard Grimm, general manager at KGMB-Channel 9 who formerly held the same position at Channel 4. Grimm said he believed Cassara's interest in buying a Hawaii television station dates back to the early 1980s, when he was part of a group that looked at buying KHNL-Chan-nel 13. Kravis. Roberts a private investment banking company.

The relationship he developed with the Kohlberg, Kravis apparently has paid off. In 1985, the group made headlines when it turned a $265 million profit in selling KTLA for $510 million. "He knows a lot about running independent stations," Grimm said. Cassara subsequently became president of the broadcasting group at Wometco Enterprises, a company purchased by Kohlberg. Kravis for $842 million.

Most recently, in another tropical setting, Cassara headed up a group of investors that bought WKAQ-TV, a Spanish-language station in San Juan, Puerto Rico for $160 million. Cassara is most often described as the former general manager of KTLA, a successful independent Los Angeles station that at one time was owned by singing cowboy Gene Autry's Golden West Broadcasters. Cassara stayed with the station when it was sold for $245 million in 1983 in a leveraged buyout put together by seven KTLA managers and Kohlberg, American Slock Satoi Close 1 734 600 103 TeiasAirCp. 702.300 15' Haswo 533.500 21 V.stDigrtal 419.100 9 KoqerEqt 363.500 19 MCorp 343 800 31 300.800 7 Wed PS Gold, Silver o.j Yesterday Previous Gold 371 00 372 40 'I Silver 5 292 5.285 503 70 606 00 Foreign Exchange Fgn. currency Dollar in in dollars fgn.

currency Thu. Wed. Thu. Wed. 1-ArgentlAusirall 0046 .0046 219 34 210 34 Australia (Dollar) 7744 7635 1,2914 1.3098 Brazil(NewCruzado) .7123 .7189 1 4040 1.3910 Britain (Pound) 1.6425 1.5485 ,6483 .6458 Canada (Dollar) .8386 .6383 1.1924 1.1929 Colombia IPeso) .002695.002695 371 00 371 00 d-Egvpl (Pound) 3856 .3856 2 5932 2 5932 FrencelFranc) 1607 .1483 6 6340 67425 Greece (Drachma) .005935 .005910 168 50 169 20 Hong Kong (Dollar) .1283 .1282 7 7950 7 7975 y-lndia iRupeei 0607 0606 16 470 16 500 Indnsia (Rupiah) .000568 000568 1760 00 1760 00 Israel (Shekel) 5263 .5263 1 9000 1.9000 Italy (Lira) 000703 .000699 1421 50 1442 00 Japan (Yen) 007080.006964 141 25 143 60 Jordan (Dinar) 1 7969 1 7969 .55650 .56650 i-Meiico (Peso) 000420 000420 2380 00 2380 00 Nethrinds(Guilder) 4540 .4467 2 2025 2 2385 N.

Zealand I Dollar) .5864 .5750 1 7060 1 7390 Norway (Kronel 1405 .1388 7 1165 7 2025 i-Phiipms (Peso) 0478 0476 20 90 21 00 006088 163 00 164 25 Saudi Arab (Riyall 2668 2666 3 7503 3 7507 Singapore 5118 5'07 1 9540 1 9580 So Korea (Won) 001500 001493 666 60 699 70 So Alnce (Rand) 3631 3693 2 7540 2 7830 Spain (Peseta) 008045 00798 124 30 12630 Sweden (Krone) 1612 1493 6 6150 6 7000 Switztrlnd (Frtnc) 5917 5817 1 6900 1 6900 Taiwan (NT 0388 0388 25 80 25 77 UAElDirhemi 2723 .2723 3 6720 36720 Grmny (Mark) 5084 6080 1 9670 1 9685 Yugoslav (Omar) 000064 000064 15685 3 15685 3 Dow Jones Stock I Open High Low Close Chng 30 irdus ...2462 82 2489 76 2452 77 2482 17 17 26 20 T'ans 87 1184 18 1164 46 1177 88 7 28 '5UMs 07 207 68 204 48 207 21 2 08 65 Stock 961 63 961 81 946 92 858 32 6 87 Standard Poor's High Low Close Chng 400 368 4S 366 22 368 43 1 87 20 T'ans 272 02 268 93 272 02 3 09 40 Utils 133 39 131 58 1 33 38 1 56 aOfncis 30 65 30 52 30 65 0 05 500 Stocks 322 34 320 20 32 1 84 1O0 Slocks 296 46 296 94 298 16 0 72 Sugar Futures World sugar No. 11 futures Open High Low Settle Chg. Jul ...,1365 1403 1358 1399 84 Oct 1370 1400 1356 1391 84 Jan 1 1210 12 10 12 10 12 60 50 Mar 1255 12 76 1255 12 76 60 1250 1J63 12 47 1283 50 Jul 25 1245 1225 1245 50 12.33 Domestic sugar No. 14 Mures Open High Lew Settle Chg. Sep 22 36 23 41 23 33 23 40 .08 Nov 22 65 22 79 22 65 22 78 14 Jan 22 31 22 33 22 31 22 33 04 Mar 22 32 22 32 22 32 22 31 08 May 22 32 07 Jul 22 38 22 38 22 38 22 30 05 in line with other public worker settlements this year.

UHPA, in a revised counterproposal, is seeking a raise of somewhere between 20 and 27 percent in a two-year contract. L'HPA and the UH began meeting daily this past Monday to try to reach agreement on a new contract for 2.900 professors before their current pact expires June 30. Five other public worker unions representing about. 42.000 stale and county employees have already ratified their new settlements. up the thorny issue of salary hikes when talks resume.

For this, each side said the other was waiting for Gov. John Wai-hee to return from a short trip to Washington. D.C. Salaries appear to be the prime obstacle hindering settlement, although the UH Professional Assembly says arbitration, course loads and winning sick leave eligibility for some 1.400 union members are equally as important. The state has offered a four-year pact with annual salary increases averaging 5.25 percent.

Negotiators for the state and the University of Hawaii faculty union are taking a short break from four days of intense contract talks and will pick up discussions again Monday. The two sides held "good, collegia!" talks on important issues including changes in arbitration procedures when professors dispute tenure decisions and recognizing non-classroom work in course loads. UH Personnel Director James Takushi said. But aside from a friendlier atmosphere, no progress was reported and negotiators will take UH faculty, state taking short break Dividends Earnings Hawaiian Air shuns $30 million loan Dal Americana Hotel HOUIOATINO 8 00 830 81 INTERIM 1 0256 7 7 25 Dividends Company Per. Ami Dec STOCK Medlionic mc I 10 tg 1 spw 831 BrHish SteeiADR I appron this year had backed away from a deal to purchase HAL for $110 million after spending 75 days reviewing the airline's operations.

In the past week rumors had circulated REDUCEO 78 7 5 7 14 MGt Propeties Oiigear Co INCREASE 0 .11 6 30 7-10 Eemmos Winnebago industries Inc. JidUtr Veer Ago J01 000 S4 900 000 $002 8020 7 28 81 84 731 720 7-17 FsrfedSvgs MT. Memrrion G'p Iowa Resources Medf omc Inc MuttuiWi fncl Poop Oekib 75 7 14 7-11 7 10 710 7-3 .03 42 35 20 .145 9 0 Net rnco Per Sha'a Hawaii Stocks, Mutuals about HAL backing away from the deal. Three sources within the company said they were told the loan had been shelved perhaps because of onerous lending requirements the 0 have been welcomed at the company, which has faced losses because of heavy unscheduled maintenance expense and lower charter revenue. But HAL last week received a financial shot in the arm when it completed the sale of DC-9-81 aircraft to United Aviation Services Inc.

The sale was expected to net the company more than $8 million, according to a first quarter filing with the Securities and Exchange Commission. The same document also revealed that Hawaiian obtained a $12 million bank loan at the end of March. Some $2 million of that has already been repaid with the remainder due by March 1900. HAL said it had retained CitiCorp to help with any possible merger or sale of the company. John H.

Magoon HAL chairman, has said he would take a look at offers by prospective buyers. Pollock said there are no active sales talks. A local source said at least one potential Mainland buyer has made inquiries about the airline. By Greg Wiles Mlwrtisrr liuiirirn Writer The parent company of Hawaiian Airlines yesterday said it has decided against taking up to $30 million in financing from PacifiCorp Finance, Inc. In addition, HAL Inc.

announced it had retained an Investment banking firm as a financial adviser on the possible sale of the company. "The company has terminated further discussions with PacifiCorp Finance Inc. regarding loan financing, said a state ment released by HAL. "No agreement could be reached on the terms of the financing, which included a term loan portion and a revolving credit portion." The action came more than seven weeks after HAL announced it was obtaining the funding pending completion of "definitive documentation and other conditions The Portland-based PacifiCorp earlier from 8 Havre Securities Sales Dm Chng Sales Clse Chng 182.200 37 -V4 Maunloa 3,300 10 "a -v, 5.300 53 va 'a MidPacAir NT 1VdB unci) 1.000 204 uncrt MolRanch NT 52 unch 84,700 33 PaclntSvc 75.800 1 316 Vt NT 18 unch Raalnclnv 2.600 107 unch 700 22V SNL Fincl 200 6Vi Vi 53.000 11 328 unch Mutual Funds 15.100 2 1 a r-om r.st PaotK Manaoa-ent Corp 53.100 39 unch SeN Buy Chng 700 26 IstHawMuni 1022 10.22 16.300 33' MawnTaxFf 1090 11.35 NT 13'B unch leahiTaiFr 1260 1286 AktiiBId BlflctHaw Bar CEBncshrt CFB Inc Cy-tnotech Firttfed FirstHsw HAL Inc HawElecIn IntHldCap Mauilanrj company would face. Lindsey Pollock.

Hawaiian Airlines senior vice president of marketing, declined to give specifics, only saying this "particular offer was not acceptable." "Basically we couldn't reach an agreement on it." he said. The added financing presumably Wkjuld NT 210B unch SeiigTaiEi .124 7.60 Mi Jtk -M B.jfciiiwfc ir- ifl it ff i afk ft iT (1.