The Baltimore Sun from Baltimore, Maryland • 46

PAGE 12C THURSDAY JUNE 6, 1985 DJI UP 5.26 TABLE PAGE 16C THE SUN Fairfax gets access to $20 million in Old Court deposits i Ml rP- nh deposits. Fairfax said MSSIC had promised to guarantee $20 million the deposited at Old Court, but after Old Court was placed under conservatorship May 13. MSSIC said it would no longer be able to guarantee those funds. Fairfax then went to court, and Judge Joseph H. H.

Kaplan granted Fairfax the right to attach $20 million of MSSIC's assets as a means of securing its deposits at Old Court. The seven-page settlement, in effect, means that the state will guarantee all the principal and interest Fairfax has earned to date and will earn for the next year on the Old Court deposit. By June 5, 1986, Fairfax will have the right to withdraw all of its money. The settlement also gives control of the $20 million to the clerk of the court. Should Fairfax need funds to qualify for federal deposit insurance or to maintain its liquidity, it will have the right to obtain those funds.

When Fairfax does obtain funds from the $20 million controlled by the court, it will have to surrender to Old Court certificates of deposit equal to that sum. Fairfax will continue to collect interest on its certificates of deposit at Old Court, and the settlement pro-See FAIRFAX, 13C, Col. 1 By Brian Sullam Fairfax Savings and Loan Association has reached an out-of-court settlement with the Maryland Deposit Insurance Fund Corporation that allows the access to the $20 million it had deposited with Old Court Savings and Loan Association. "We are quite happy," said Malcolm Berman, president of Fairfax. "We have our money guaranteed by the state, and we can get our money when we need It." An attorney for the insurance fund, Francis X.

Pugh, said, "As far as we're concerned, it's an amicable settlement." For Fairfax, the settlement means that it can count as assets $20 million that earlier was in dispute. For MDIF, lt means that the insurer no longer controls about $20 million of its assets. In addition, its insurance fund, which contains about $160 million, has been effectively reduced by $20 million. The settlement ends a lawsuit that Fairfax filed May 16 against the Maryland Savings-Share Insurance Corporation, the private insurance company that used to guarantee the deposits at 102 Maryland associations. MSSIC was absorbed May 18 into MDIF, which assumed all of, MSSlC's functions, powers and obligations.

Including the insuring of ASSOCIATED PRESS GM Chairman Roger B. Smith (left) and Allen Puckett, chairman of Hughes Aircraft, at press conference. Hughes: small firm to defense giant; GM chairman had long-range plan Biggest port local seeks talks on new contract Majority of sales go to government EL SEGUNDO. Calif. (AP) Hughes Aircraft Company, which is being purchased by General Motors Corporation for more than $5 billion, has grown in the past 53 years from a small airplane builder into a giant in defense electronics and satellites.

It has become the nation's leading manufacturer of tactical missiles and military aircraft radar, and it also produces weapons-control and guidance systems, military and civilian satellites, navigation and communications equipment and industrial electronics and Instruments. It no longer produces airplanes, however. Financial analysts estimate that Hughes, which is privately held, made a profit of $200 million to $250 million last year on revenues of $4.9 See PROFILE, 14C. Col. 4 Carmaker expands technological base Knlght-Ridder News Service DETROIT When Roger Smith was elected chairman of General Motors Corporation in early 1980, the U.S.

auto industry was heading Into its deepest slump since the Great Depression. Even as he was steering GM out of that financial crisis, Mr. Smith was looking 20 years down the road, plotting the automaker's future. His most dramatic achievement is GM's acquisition of defense-aerospace giant Hughes Aircraft Company the culmination of a far-reaching, multiblllion-dollar drive launched three years ago by Mr. Smith and GM's top executives to expand the automaker's technology base and broaden Its operations as a See SMITH, 1 BUSINESS --BRIEFLY Open house at GM The GM Broening highway plant will hold an open house today from 10 a.m.

to 2 p.m. and from 5 p.m. to 9 p.m., The public Is Invited to view the assembly of the plant's new Chevrolet Astro and GMC Safari mini vans. Other GM vehicles will also be on display. The plant is celebrating its 50th anniversary this year and will be open to the pblic for the first time since production of the vans began.

Visitors may park on the GM lot across the street from the plant. I Wang to lay off 1,600 i Wang Laboratories, project- ing an operating loss in its fiscal 1 fourth quarter, said yesterday it would immediately lay off 1 ,600 em- ployees, 5 percent of its work force. The computer-maker, based in ell, also said it canceled sala-' ry increases for six months and was taking other steps to cut costs quick- "The layoffs affect employees across the board: manufacturing, administration, clerical and profes--', sional everyone," said a Wang lt spokeswoman, adding that 1 ,000 of i the layoffs would be in setts. COMSAT sale COMSAT announced yesterday that on January 1, 1988, it will sell its 50 percent interest in three Earth stations those at Etam, W.Va., Roaring Creek, and Jamesburg, Calif. to American Telephone and Telegraph Company for about $50 million in cash.

Two Jointly owned stations at Andover, Maine, and Brewster, will be phased out by January 1 1 987. COMSAT said the steps were partly a response to last December's decision by the Federal Communications Commission to permit common carriers to own and operate their own multi-purpose International earth stations. COMSAT'S proposals regarding the Jointly owned stations are subject to FCC approval. 3 sign steel pacts The Reagan administration says lt has signed steel export agreements with three more countries as part of its program to reduce the foreign share of the U.S. steel market.

The latest five-year agreements, retroactive to October 1 were reached with Romania, Czechoslovakia and Hungary. Deputy U.S. Trade Representative Robert Lighthizer said. Romania agreed to limit its exports to the United States to 1 50,000 tons per year, Czechoslova-1 kia to 40,000 tons per year and Hungary to 34,000 tons per year, Mr. Lighthizer said.

Last year, American imports from those coun-' tries totaled 376,0000 tons. The agreements bring to 1 1 the number of steel pacts negotiated so far. Citicorp expansion Citicorp, the biggest American bank holding company, has acquired a 70 percent stake in Banque Sud Beige, Belgium's 10th largest bank, the companies announced yesterday in Brussels. Citicorp already owns Famibanque in Belgium, the country's fourth largest bank, whose activity includes mortgages, personal accounts and deposits. Nashville hub planned American Airlines, moving to expand in the Southeast, said yesterday it plannmed to establish a hub in Nashville by late 1987.

Nashville would become American's third major connecting center along with Dallas-Fort Worth International Airport and Chicago's O'Hare International. American, the principal unit of Fort Worth-based AMR Corporation, said it might eventually schedule as many as 135 daily flights from Nashville Metropolitan Airport to 60 destinations. It also said the new hub was expected to create at least 1,350 jobs for the Nashville area. GM's victory is Ford's bitter loss 1 Hughes Aircraft at a glance Origins Founded by industrialist Howard Hughes in 1932 to build airplanes, the company no longer makes them. Now owned by the Howard Hughes Medical Institute, of Bethesda.

Main lines of business Defense weapons and electronics Military and civilian satellites Industrial electronics and instruments Headquarters El Segundo, Calif. Employee (43085) More than 73,000 Financial data Estimates from industry analysts. Revenue 1984 $4.9 billion 1983 $4.7 billion 1982 $4.3 billion 1981 $3.4 billion 1980 $2.6 billion Earnings Between $200 million and $250 million in 1984. Estimates of previous years' earnings were unavailable. planning to issue securities to help finance a winning bid.

Ford lost, analysts say, simply because Its bid wasn't high enough. GM offered more than $5 billion in cash and marketable securities. Ford never disclosed its bid, but Wall Street analysts estimated that it was between $4.5 and $5 billion.nation's seventh-largest defense contractor, would have helped Ford lure more defense business from the federal government and boost the compa ny's potential involvement in the Reagan administration's proposed tion on a back-to-work agreement, the remaining sticking point in the strike, had not changed. The company said it "will not bargain" with the pilots union concerning the status of three employee groups honoring picket lines. United said those groups flight attendants, management pilots and 500 newly trained United pilots who have not started working are out of the pilot union's jurisdiction.

The company does not consider the 500 new pilot trainees to be United employees. Steve Crews, a pilots union spokesman, said the flight attendants union was bargaining for itself but "our position Is simply that we See UNITED, 1 Knight News Service DETROIT There's no question that General Motors Corporation's victory in acquiring Hughes Aircraft Company is a bitter defeat for Ford Motor Company, a rival bidder for the giant defense and aerospace company. Ford entered the bidding war with GM and Boeing Company in hopes of doing more to diversify its highly volatile auto business and move into another high-profit industry. The automaker had even hinted that it was "Star Wars" defense program. Market analysts were uncertain yesterday how much the defeat will hurt Ford and how Ford is likely to spend its cash hoard of $5.9 billion.

Ford, which has been more aggressive than GM in going after aerospace and defense business through Its Ford Aerospace Communications Corporation subsidiary, will probably shop elsewhere for diversification, analysts say. Rumors have been circulating for See FORD, 14C.Col. 4 Koppers 'guards' out of the doghouse United turns down call to resume negotiations By Miles Maguire Local 333 of the International Longshoremen's Association, the largest in the port, is moving to reopen contract negotiations after voting this week to reinstate Garris S. McFadden as president. "I will notify the Steamship Trade Association by letter today Wednesday that we are working without a contract and 333 will be looking to negotiate a new contract in a 30-day period," Mr.

McFadden said. An attorney for the ST however, said the management group "is under no duty" to reopen contract talks. "It is quite clear that we have a contract and he Mr. McFadden is bound by it," said the attorney, Paul B. Lang.

"We would hope that he would not be so foolish to try a strike, because he will be right back in court with Judge Miller," Mr. Lang said. During last year's dockworkers strike, U.S. District Judge James R. Miller, issued an injunction ordering members of Local 333 back to their Jobs after they had boycotted a ratification vote taken by the other ILA locals in Baltimore.

Lester L. Murray of the Koppers Senator Harry McGuirkjtjin Sailor M4 flM I i V- THE SUN1983 GARRIS S. MCFADDEN Reinstated as president of local Last month Mr. McFadden said he thought his union had been working without a contract in the wake of a federal appeals court decision that vacated Judge Miller's order. See MCFADDEN, 1 THE SUNYV ALTER McCARDEU, JR Company (left) and former state as Mayor Schaefer looks on.

it. i if I ii CHICAGO (AP) United Airlines rejected yesterday a call to resume talks with Its striking pilots, dashing hopes for a quick settlement in a walkout that has crippled the nation's largest air carrier for nearly three weeks. United told the National Mediation Board it would not attend a proposed meeting today with mediators and the Air Line Pilots Association in Washington. Representatives of the 5,000 striking pilots already had agreed to the meeting. Under federal law, the board can request but cannot order a resumption of the talks.

The board made the request on Tuesday. United has been operating about 1 4 percent of its 1 ,550 daily flights. United told the board that its posi Sailor and Canton return to duty By Jesse Glasgow After a bath and a new paint Job, the two cast-iron dogs that used to stand guard at the front door of Hay-ward, Bartlett Co. have become watchdogs at the headquarters of Koppers Company's Engineered Metal Products Group in South Baltimore. Lester L.

Murray, vice president and general manager of the group, which acquired Hayward, Bartlett almost 60 years ago, said the dogs once were regarded as good luck charms. Mayor Schaefer, who took part in the unveiling, said the dogs might have been responsible for a change in yesterday's weather. After morning showers, the sun broke out a few minutes before the ceremony. While the dogs were on guard at the foundry Hayward, Bartlett built at Scott and Pratt streets in 1851. the company prospered.

Among its other products, the company furnished the architectural front for the Harper Bros, publishing house in New York and ironwork of several kinds for the Treasury Building in Washington and a half-dozen customs houses. When Hayward. Bartlett opened a new office at Scott and McHenry streets shortly before the turn of the century, the two dogs were not given posts at the front door but were stored. Soon, there was a business recession and the Baltimore company's fortunes declined with it After the dogs were displayed again, business improved. The partners who created the See KOPPERS, 13C Mo.

court upholds curb on Icahn's TWA quest Bank bill progresses A House panel moved yesterday toward an interstate banking system that would temporarily allow states to join in exclusive regional banking compacts. However, the measure would eventually require states engaged in any interstate banking to allow banks from any ST. LOUIS (AP) Missouri's court of appeals upheld yesterday a lower court ruling that temporarily blocks investor Carl C. Icahn from buying more stock in Trans World Airlines, Inc. Mr.

Icahn's investor group already owns 32.8 percent of TWA's common stock and has offered $18 for each of the remaining shares. TWA is fighting the takeover effort. Mr. Icahn asked the appeals court to overturn a temporary restraining order issued Tuesday by St. Louis County Circuit Judge Bernhardt Drumm.

The order prohibited Mr. Icahn's group from purchasing additional TWA shares until June 17. when another hearing is scheduled in Judge Drumm's court. In arguments before the appeals court yesterday, one of Mr. Icahn's lawyers, Robert Hoemeke.

said Judge Drumm's order was unconstitutional and that it was crucial it be overturned Immediately. "Time is not incidental," Mr. Hoemeke said. 'Time is what this battle is all about. TWA is trying to buy time to prevent Mr.

Icahn from doing what is his right buying common stock." Lawyers for New York-based TWA and the city of St. Louis, where See TWA, 13C.Col.3 other state. Groups of states, including Mary- land, have sparked a Supreme Court case by banding together to allow entry of each other's banks, but not banks from states outside the com- I pact. Farm supplier falters Massey-Ferguson the Canadian farm-machinery maker, said yesterday its fiscal first-quarter 1 profit fumbled 83 percent from a year From Staff and Wire Reports i-.