The Los Angeles Times from Los Angeles, California • 55

v5 t'o SJimco Tart IV 1 rklay, January 23, 1981 Oil and Mining Issues Pace Latest Decline; Dow Industrials Drop 5.81 From Times Wire Services NEW YORK-The stock market continued its broad decline Thursday with oil and mining issues poL-t-ing sharp declines as analysts noted investor concern over the prospect of rising interest rates. The Dow Jones average of 30 industrial stocks, which lost 27.04 points the first three days of the week, gave up another 5.81 points to finish at 940.44 in moderate trading. Losers outnumbered gainers by a 5-2 margin among New York Stock Exchange -listed issues. Big Board volume reached 39.88 million shares, up slightly from 39.19 on Wednesday. Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 46.11 million shares.

The NYSE's composite index of all its listed common stocks was down 0.63 to 74.76. Large Blocks Increase On the American Stock Exchange, the market-value index dropped 2.75 to 340.78. The NASDAQ composite index for the OTC market closed at 197.12, down 0.97. Standard Poor's index of 400 industrial stocks fell 1.20 to 147.90, and 500-stock composite index fell 1.10 to 130.26. Large-block trades of 10,000 or more shares traded on the NYSE totaled 504 compared with 487 on Wednesday.

In London, the Financial Times make its mark on the economy. Analysts said the market may have been dampened a bit by a prediction from Salomon chief economist, Henry Kaufman, that the prime lending rate would climb above its 1980 peak of 21V6 in coming months. 'Back to Reality' Analysts also noted some disappointment, or "psychological letdown," as one described it, that President Reagan did not detail any specifics of his plans to invigorate the economy during his inaugural speech Tuesday. "The psychology of it is that after the hostages were freed and Reagan was inaugurated, you have to get back to reality. The euphoria is over," said Eldon Grimm of Birr, Wilson Co.

Inc. Oil stocks showed sharp declines, with Mobil Corp. easing 2V4 to 76. At mid-morning, the company reported its final-quarter 1980 profits rose about 5. Getty Oil, which reported that its earnings for the fourth quarter of last year climbed about 16, lost IVi to finish at 86V4.

Among other oils, Atlantic Richfield was off IV at 60 and Texaco dropped to 43V4. Mining stocks were broadly lower as gold prices fell in Europe. Home-stake Mining fell 2 to 59, while Dome Mines was down Vi at 81V6. ASA was off lV4at57V4. Among financial issues, Chase Manhattan was down IVi at 43V6.

Dow Jones 30 Industrials High I 961.28 Chang: NY8E Volume CIom 940.44 5 30,88 Million SharM Low I 834.13 JL 1 1 JJ -f 950 ii-L I 20 10 900 i 1 1 i 1 1 .125. 1212 1219 1226 J2 ji 221 SPENDING NYSE Volume Record: dd 8)1 92.89 Million Shares fj 76 Ill ff- 72 p-U 1 68 i NYSE VOLUME i.us Angeles T.mos 4 index of 30 industrial stocks closed at 457.1, off 4.6. The 1980-81 high of 515.9 was set Nov. 21. The low of 406.9 was set Jan.

3, 1980. The Tokyo Stock Exchange 225-share index closed at 7,293.28, off 22.05. The 1980-81 high of 7,315.33 was set Jan. 21, 1981. The low of was set March 28.

Bond prices were generally lower, with the sharpest drops coming in municipal bonds. In municipal bond activity, general obligations fell 2 points in moderate activity and dollar bonds were down 1V4 points in active trading. Corporate Bonds Lower Corporate bond prices declined, with industrials and utilities down point in light activity. Government issues dropped 432 in intermediate and 1232 in long maturities. Short-term governments declined 1232, according to the investment banking firm of Salomon Bros.

Three-month Treasury bills were off 15 basis points to 15.60; 6-month bills fell 3 basis points to 14.62 and 1-year bills were down 2 basis points to 13.12. Federal funds, the overnight loans of uncommitted reserves among commercial banks, traded at 19. The stock market has been sliding amid investors' worries about the high level of interest rates and their uncertainty over how quickly the Reagan Administration will Ruling for of A on Deposits Not Seen as Threat to Iran Pact By ROBERT MAGNUSON, Times Staff Writer A federal judge's ruling allowing Bank of America to retain about $91 million in Iranian deposits probably will not pose a significant legal challenge to the accord that freed 52 Americans from Tehran, U.S. government officials and private lawyers said Thursday. U.S.

Dist. Judge Robert Schnacke signed a writ of attachment in San Francisco late Wednesday in order to guarantee the return of the bank's share of $141 million in disputed interest payments to Iran. The funds had been placed in an escrow account in London for future settlement. Earlier news reports had erroneously stated that the judge actually blocked the transfer of the bank's funds to the new account a move that would have had constituted a major challenge to the executive orders signed by former President Jimmy Carter on Tuesday. On Wednesday, a federal judge in Washington, D.C., denied the first request to temporarily block the transfer of some portion of Iran's assets currently held in U.S.

banks. 'Not as Significant' "Frankly, we have not sorted out (the Bank of America) action," a Justice Department spokesman said, "But it certainly is not as significant (as an order blocking a transfer of funds)." "My guess is that it would not pose much of a challenge," another government official said. And Andreas Lowenfeld, an international legal expert at New York University Law School, called the San Francisco judge's order another attachment" added to the more than 2,000 already filed by U.S. banks and companies as part of the massive legal tangle involving claims against Iran's assets. During negotiations that led to the release of the hostages, U.

S. banks and the Iranian government never agreed on how much interest the banks should pay on the $4.7 billion in deposits they held in foreign branches. The Iranians reportedly demanded about $800 million, while the bankers insisted on about paying about $660 million. Finally, the banks said they would pay the higher figure, provided that the difference of about $140 million would be settled through private negotiations or by an international claims panel. Called Illegal A spokesman for Bank of America said Thursday that the bank sought a court writ because "nobody knows how the international settlement system will work.

If for any reason we do not receive payment, we will have collateral to cover our loss." And, he added, the bank's position was to "keep our powder dry, and not depend on the government for assurances." Ford's International Sales Top Those in U.S. for 1980 DETROIT (D Ford Motor Co. sold more cars outside the United States last year than in its home country, apparently the first time international business has outstripped domestic operations. Ford officials in both international and North American operations said they could not confirm the turnaround because each lacked the other's figures for past years. Ford's international division Thursday announced that 1980 was its third-best year ever for vehicle sales and set a record for truck sales.

The division, which covers all parts of the world except the United States and Canada, where operations were integrated by auto makers long ago, said 1980 sales declined 7.3 to 1.982 million units from the year-earlier record 2.137 million. In 1978, the second-best year, sales outside the United States and Canada totaled 2.034 million units. International truck sales last year were 422,200, up about 5 from 1979's 402,300 units, the previous record. Car sales fell 10 to 1.56 million from the record 1.735 million in 1979. While Ford's North American car sales last year of 1.698 million units topped international car sales, U.S.

car sales alone, which totaled 1,543,823, were less than sales in all other foreign countries including Canada. Those sales were 1,713,734 units. Ford suffered in North America last year as combined sales fell 30 to 2,591,280 from 3,702,388 in 1979. That put worldwide car and truck sales at 4,573,286, down 22 from 5,839,488 a year earlier. The sales figures include vehicles sold under Ford name-plates, regardless of where they were made or who the manufacturer was.

Thus, cars and trucks manufactured in Japan by Ford's 25 -owned affiliate Toyo Kogyo and sold in the United States as Mazda models are not counted. DOLLAR: Posts Gain Continued from First Page ments. The U.S. currency also gained during the day from West Germany's decision to pump 6.7 billion marks into the money market. The rate on federal funds overnight loans of reserves between banks rose to 19 after dipping below 17 on Tuesday.

Late New York dollar rates Thursday, compared to late rates Wednesday, included: 2.0147 West German marks, up from 2.0122; 4.6575 French francs, up from 4.6432; 1.8247 Swiss francs, down from 1.8277; 200.80 Japanese yen, up from 200.02, and $1.1905 Canadian, unchanged. In London, the British pound slipped more than two cents against the dollar, to $2.4077 compared with $2.4300 Wednesday. In New York, the pound finished at $2.4124, down from $2.4285. Late European dollar rates Thursday, compared with Wednesday, included: 2.002 West German marks, up from 1.9900; 1.8282 Swiss francs, up from 1.8075; 4.6595 French francs, up from 4.6022; 2.1945 Dutch guilders, up from 2.1640; and 957.25 Italian lire, up from 946.45. Earlier, the dollar closed in Tokyo at 200.40 Japanese yen, up from 199.85 yen Wednesday.

Eric Lieberman, a New York lawyer representing the Central Bank of Iran, called Judge Schnacke's ruling "a blatantly illegal violation" of the agreement struck between the United States and Iran. And, he said, he might request that the Bank of America' claim to its share of the escrow deposit be forfeited by London courts. Private lawyers said Thursday they believe the executive orders issued Carter will stand in the courts. Nonetheless, they said, they expect a spate of court challenges in the weeks ahead which will slow the process of settling claims on Iran's assets. And one legal expert, Roger Fisher of Harvard Law School, warned that the Bank of America may suffer as a result of gaining the writ of attachment.

He argued that the dispute over interest payments eventually will go to an arbitration panel. When it does, he said, the Bank of America may be among the last to present its case. "Iran is likely to say 'Go to the end of the line' to anyone who has dragged their feet in this thing," Fisher said. "I think (Bank of America made) an unwise move." SEC: Officials Blast Report Continued from First Page has been praised but who has also aroused the ire of some in the business community by leading aggressive enforcement efforts against market manipulation and corporate bribery. Reduction in Staff The Reagan team's report proposes cutting the enforcement division's Washington staff to 50 from 200.

With that kind of reduction, Sporkin said, it would be impossible for the SEC to properly police securities violations, "unless everybody suddenly becomes honest, and then you wouldn't need anybody. I don't think that's going to happen." Asked about the prospects of Sporkin's removal, Williams said he "can't imagine that happening." And he predicted it would require an act of Congress to make sweeping changes in the role and responsibilities of the SEC. Sporkin under civil service law cannot be fired without cause but can be removed as division head. He said he will wait until a replacement for Williams is named before he decides how to approach his own future. "I haven't determined what I'll do.

That will depend on the new chairman," he added. Warns of 'Mortal' Crisis Williams' luncheon address to securities lawyers at the Hotel del Coronado was his fourth, and final, speech to the group. In it, he warned that "corporate America is facing a serious, potentially mortal crisis" because of business' increasing preoccupation with short-term gains and a lack of accountability. "The corporate system has become structured so that, in many instances, important participants in it may have an interest in milking American business, or, at least, an insufficient interest not to," Williams said. And, he noted, the growth of stock ownership by institutions has reduced the traditional involvement of stockholders to the Business and People MORTGAGE: Rate May Dip systems group, which will become part of the new sector he will oversee.

Med Dayton, Ohio, announced the election of C. Greene Garner as chief executive officer, succeeding James W. McSwiney, who will continue as a director and chairman. At the same time, Burnell R. Roberts was elected president of the firm.

Garner was president and chief operating officer of Mead. The office of chief operating officer was discontinued. Alton G. Marshall, president of Rockefeller Center New York, announced he intends to leave the privately held real estate, entertainment, manufacturing and energy company in the spring to pursue other business interests. Robert C.

Marville, executive vice president of the center, will become acting president. Sanford C. Sigoloff, vice chairman and chief operating officer of Kaufman Broad and David Marks, executive vice president and chief operating officer of Union Financial have been elected to the board of directors of Comp-U-Med Los Angeles. Robert K. Swanson has been elected president and chief operating officer of Phoenix-based Del E.

Webb succeeding Robert H. Johnson, who remains as chairman and chief executive officer. Swanson was formerly president and chief operating officer of Greyhound also of Phoenix, resigning suddenly, after only eight months on the job. Donald K. Ross, 55, has been elected chairman of New York Life Insurance Co.

and Jacob B. Underhill, 54, as president. Both are effective May 20, 1981. Ross was also designated chief executive officer and Underhill as chief administrative officer. Robert E.

Miller has been appointed chief financial officer of GAF New York, succeeding Jay R. Olson who was recently elevated to president and chief operating officer. George E. Solomon has been appointed executive vice president and general manager of TRW electronics and defense sector, a new operating segment that will grow out of a combination of the two, effective March 1. Solomon, 55, is currently vice president general manager of the Cleveland-based firm's defense and space Continued from First Page One way the industry hopes to do this is to have the Government National Mortgage Assn.

(Ginnie Mae) sell securities backed by conventional home loans in the same way that it now sells securities backed by government -insured or -guaranteed mortgages. The key to this change will be the development of standardized loan documents, which the mortgage bankers hope will be done this year, Aylward said. There is some resistance in the financial markets to the idea of investing pension fund reserves in home loans, Aylward ssid, "but there is only one money market out there now. There is no longer a housing market" separate from other capital funds markets. "I believe the American public has adjusted to higher interest rates and that the pension funds will make money available at those rates," he added.

Another goal being pursued by the mortgage bankers is a floating loan rate for FHA and VA mortgages. "It is vitally important that we get a free FHA-VA interest rate," Aylward said, but he conceded that "there will be a lot of resistance." Without freely adjustable rates, he said, it is difficult for builders or mortgage bankers to make advance commitments for development funds. Last summer, he added, lenders were charging as much as 16 points, or 16 of the loan, to compensate for the 12 FHA-VA ceiling then in effect. point that "it has become rare to find a major public corporation controlled, in the absolute sense, by anyone." Business in Brief cember in Havana. Talks held earlier this month in Mexico City cleared the way for the projects, which are set to begin during the first half of this year.

man for Toyota said the temporary layoff is due to a slowdown in light truck sales caused by the U.S. government's 625 increase of the tariff on lightweight cabchassis units. The Long Beach plant builds cargo boxes for cab-chassis truck units which the company assembles in Japan and ships to the United States. Toyota officials added that they expect foreign auto makers' share of the U.S. car market to drop to around 23 this year because of increased competition from fuel efficient domestic cars.

The U.S. steel industry is expected to rebound in 1981. However, the Commerce Department said that the comeback won't entirely make up for losses suffered last year. The industry growth rate is expected to be less than 1 a year during the next five years with profits and productivity picking up around the middle of the decade. U.S.

steel companies will ship about 91 million tons to domestic steel users in 1981, an increase of 11, which follows last year's drop in orders of 18. ly earnings in 2V years. Data General, based in Westborough, is the nation's third largest manufacturer of minicomputers. Long-term auto layoffs inched upward again this week. The five major U.S.

producers said they had 195,350 production workers at home without a recall date. Last week, the figure was 191,450. Layoffs in assembly plants being closed next week to keep a lid on inventories were put at 23,250, down from 25,350 this week. Meanwhile, the total output of cars declined by 2.5 to 117,886 and truck plants scheduled 38,010 assemblies, or 5.6 fewer than last week. million from Universal Subscription Television Inc.

in Burlingame. Neither STV system currently is operating, but a STAR executive said the company plans to have both on air sometime between April and June. STV is a form of pay TV which sends a scrambled signal to a decoder box in the subscriber's home. Universal Subscription Television, a unit of Winnipeg -based CanWest Capital currently operates one STV system in Boston overWQTV. DOE Mid refiners are not putting dealers out of work.

The Energy Department's report to Congress said there is no evidence to support the charge by independent owners of full-service stations that major refiners are trying to drive them out of business. The report said that changing economic and marketing conditions are mainly responsible for the trend toward high-volume self service stations. The report also recommended complete decontrol of gasoline marketing and vigorous antitrust enforcement to foster competition in the gasoline market National Albritton bought 13 of Riggs National Bank for $29 million. Joe Albritton, who once owned the Washington Star and currently operates three small daily newspapers and three television stations, purchased 386,645 shares of the largest bank in Washington, D.C., at $67.50 per share. The transaction brings Albritton's holdings in Riggs to more than 15.

The shares were purchased primarily from Jorge E. Carnicero, chairman of the McLean, Va. -based Dynalectron Corp. He is also a member of the Riggs board of directors and the largest individual shareholder. Two subscription TV franchises were sold for $1.9 million.

Satellite Television Associated Resources a Santa Monica-based company which began trading its shares publicly last fall, said it agreed to buy the STV franchise for WGPR-TV in Detroit for $1.1 million, the STV franchise for KSTV in San Jose for $800,000 and broadcast equipment valued at $2.1 The nation's supplies of heating oil and diesel fuel fell 5 last week as unusually cold weather boosted fuel demand. Texas International said initial tests show that it has made a major discovery of natural gas in the Eloi Bay Field located in St. Bernard Parish, La. Douglas said it would exercise its option to acquire a controlling interest in CoaLlquid a maker of a fuel for power plants that could save industrial consumers about 10 of their fuel bills The first unit of the UAW to vote on pay cuts to help save Chrysler approved the reduced contract trial of financier Kirk Kerkorian's breach-of-con tract suit against Columbia Pictures Industries in federal court in Las Vegas has been postponed to April 7. Kennecort purchased an additional 498,100 shares of common stock in Curtlss -Wright The value of harvested crops rose to a record $83.7 billion in 1980.

Megatek rescinded its merger deal with Data General Corp. Megatek a San Diego-based computer graphics company, said it was canceling the previously announced agreement to exchange its privately held stock for 280,000 Data General shares in a deal worth approximately $17.2 million. Data General shares closed at $61.25 on the New York Stock Exchange on Jan. 7 when the deal was announced, but trading dropped to the low 50s after Jan. 13 when the company announced its lowest quarter World Mexico said it will explore for Cuban oil and remodel a plant.

Petroleos Mexicanos, the Mexican national oil company, said it will start looking for oil off Cuba's northwestern coast and conduct land studies in Cuba for petroleum deposits. Pemex will also provide technology to help Cuba remodel a gas liquefaction plant. The agreement between Cuba and Mexico is part of an accord signed last De California The Toyota plant in Long Beach will close for two weeks. In the first production rollback ever at the Japanese auto maker's only U.S. manufacturing plant, 355 workers will be put on leave for two weeks beginning Jan.

26. A spokes I.