The Los Angeles Times from Los Angeles, California • 66

BUSINESS Saturday, March 21, 1981 Eos Angeles (imee Part III 15 NYSE Composite Transactions Transactions for Friday, Mar. 20, 1981 Money Supply Rises, Could Stall Recent Interest Rate Drop NEW YORK STOCK EXCHANGE INDEX NET CHANGE HOURLY FLUCTUATIONS CLOSE POINTS PERCENT 11AM NOON 1PM 2 PM 3 PM. 77.09 0.45 0.59 76.87 76.87 76.82 77.06 7722 89.89 0.57 0.64 89.61 89.60 89.56 89.89 90.08 77.08 0.23 0.30 76.79 76.69 76.84 77.06 77.17 38.32 0.05 0.13 38.28 38.30 38.22 38.21 3828 75.41 0.69 0.92 75.10 76.27 75.16 75.28 76.43 1961 HIGH LOW HK3H LOW 79.44 72.07 Comport 77.22 76.82 93.11 84.08 Industrial 89.89 89.55 78.67 70.17 77.1 7 76.69 39.73 37.03 UtllttMj 38.32 38.21 73.72 65.16 Financ 76.43 76.16 Factory Orders Up in February WASHINGTON CB-In mixed news for the national economy, the Commerce Department reported Friday that factory orders for durable goods rose slightly in February while an indicator of future industrial investment fell sharply. Economists said the 0.4 rise in durable goods orders was in line with forecasts of generally sluggish performance by the economy the rest of the year. Commerce said separately that a 14.5 drop in new orders for non-defense capital goods industries an indicator of future business investmentwas the largest monthly decline in nearly 10 years.

Overall, durable goods orders rose to a seasonally adjusted annual total of $81.7 billion last month after declining a revised 1.6 in January, Commerce reported. The orders had risen each month since last August as the economy recovered from last year's recession. DOW JONES STOCK AVERAGES HOURLY FLUCTUATIONS NET CHANGE CLOSE POINTS 992.80 622 PERCENT 0.63 OPEN 986.13 416.22 108.88 380.69 418.59 1.94 0.47 109.13 025 0.23 382.89 1.98 0.52 1961 HK5H 1004.69 427.13 117.81 387.70 NOON 1 PM. 991.71 991.53 2 PM. 3 PM 996.13 418.59 109.02 383.61 996.06 418.10 108.95 383.11 416.10 108.84 381.77 417.01 108.88 382.03 11 A.M.

992.35 416.77 109.02 382.19 LOW 931.61 379.18 105.41 358.59 HIGH' 1.002.07 421.68 109.61 385.94 LOW 98127 30 Indus. 20 Trans. ISUtils. 65 Stocks 413.68 10829 378.64 SALES: 30 Industrials. 5262,100 shar; 20 1.097200; 16 Utilitiss.

813,400: 65 Stocks, 7.162.700 Naw 1 96041 High Nm 1961 low Avaragn of the highs and lows retched at any tme during the day by the ndmdual stocks. THE MARKET DID HOURLY VOLUME NOON 1 PM 2 11.340.000 8.330.000 7.500.000 11 AM 14.180.000 3 PM. 9.660.000 4 P.M. 11.400.000 I Issues Trd'd Advances Declines Unchanged New Highs New Lows FRI. THU.

182,020 145.088 437.999 364.509 2.581 1.779 "NYSE NETCHG Close Points WHAT FRI. i 1.980 1.928 1.058 489 381 169 12 THU. WED. TUE. MON.

AGO 62.440 65.740 65.920 49.940 68290 1.945 1.948 1.979 1.952 1.933 868 966 836 1.086 978 692 619 763 498 600 385 363 381 368 356 136 118 140 129 142 11 7 7 9 6 ODD LOT TRANSACTIONS THU. WED. TUE MON Purchases: 169.801 161.475 175.501 171.060 Sales: 384.385 419.130 480.161 462.009 Short Sales: 2.290 2.163 3.205 2.040 Volume only Thouaands ol shares STANDARD POOR'S AVERAGES NEW YORK-A broad measure of the nation's money supply increased more than expected in mid-March, and Wall Street analysts said it could stall or reverse the recent decline in interest rates. The Federal Reserve Board reported Friday that M1B a measure of funds available for immediate spending, including cash in circulation and deposits in checking-type accounts in financial institutions, rose $2.1 billion in the week ended March 11, to a seasonally adjusted $421.8 billion. The report was released after the close of trading on the New York Stock Exchange, but bond prices tumbled 1 point, or $10 for each after it came out.

Bond prices fall when interest rates rise. The Fed said the nation's basic money supply, known as MIA and including cash in circulation and non-interest-bearing checking accounts at commercial banks, was unchanged from the previous week at a seasonally adjusted $365.7 billion. Expectations Doubled Maury Harris, a money-market economist at the investment house of Paine, Webber, Jackson Curtis said that while the rise in M1B doubled Wall Street expectations, one week's figures alone would not change the long-term outlook for continued declines in interest rates. "But a continued trend of these numbers would mean that rates would turn around and up," Harris said. "What these figures mean is that the recent decline in interest rates will come to a pause right now." Robert Sinche, an economist with the brokerage house of Bear, Stearns said, "It is possible rates might turn up a bit." Since peaking at 21V in late December, the prime lending rate has fallen as low as 17 at major money-center banks, although most banks are quoting a 17Vi prime rate.

The interest rate on federal funds short-term loans of uncommited reserves among banks averaged 14.13 in the week ended Wednesday, down from 15.53 the previous week and off sharply from the record 20.06 average in the first week of the year. Banks have been lowering their prime lending rate because of reduced costs of funds and slackening loan demand. The latest Fed figures showed further declines in business loan activity. Reserves Watched Sinche said investors would be watching Fed open-market transactions to see if the central bank would continue to encourage declining interest rates by making reserves available to the banking system. For the latest four weeks, MIA averaged $365.7 billion, a 22.5 seasonally adjusted rate of decline from 13 weeks ago.

M1B averaged 419.1 billion, a 4.6 rate of increase for the statistical quarter. Other indicators for the week ended Wednesday, March 11, included: Commercial and industrial loans on the books of the nation's large banks fell $841 million, compared with a gain of $318 million the previous week. The Federal Reserve Bank of New York reported commercial and industrial loans at major New York City banks fell $187 million, compared with a gain of $126 million a week before and a rise of $412 million in a similar week a year ago. Low ADVANCE-DECLINE VOLUME FRI. THU.

WED. TUE. 132.50 134.08 0.62 149.96 161.78 0.76 MON. 34.175 16.886 4.679 25.721 36,614 34,415 9,854 5.784 3.472 24.64 24.83 0.08 Adv. 41.421 27.866 50.62 51.06 0.10 Dec.

15,215 28,915 14.64 A 14.81 0.04 Unch. 5.344 5.659 1981 High Low 126.58 143.76 22.90 48.96 13.15 134.68 157.02 25.29 53.97 14.77 500 Index 135.29 400 153.18 20 Trans 25.04 40Utils 51.37 40 Fin 14.96 Hi LtW 14 AAR .40 52 27Vi ACF 2J0 25 llVi AMF 1.24 24 KAMIn 11 els APL 17 7a ARA l.M 91ft IS ASA 5a 23 I ATO 45 II' AVX 31 61 34 AbMLb 1.44 35 It AcmeC 1.40 5 AotnOg.04 17 11 AdaEx lilt 7Vj MAdrnMIJOi 44ft 20 AMOS 40 AetrtLf 132 25 IS AhmmUO 6 2 Aim 54 V'k AirPrd JO 26ft 15 AirtFrt 1J0 High -A 15 7 20 11 1I1M Si i 2 237 UVi I5l5j4 7ft 7 7 HJpppS 12 4 226 II 9 40? Sj' if 3-- 8 a 72 1 IS jjj 25 24 25 1 14 4 4 THE LEADERS BR wrW Hist. Cm. SI SALES CLOSE CHANGE 1.168.670 27V, 1 ISgM 1 -8 "BSS Champ 904.700 29V. 27S jmTeliJO I WW1 EE00" JS'SS wx -J1 i 649.900 63Vi irnvll.40 36 35 35- ft AtlRichtl 611200 61 Vi 17 II Crl-lwd 6.1..

36 IT 1414- PSgeft UMMI. Mattel Inc 601,800 8Vi 1 tt 55 46ft SmTpl 43 14 14 55 5 55 eoi.eoo ffiSsf UVtIt iittig PotaroM 698.100 29 1 Vi 8 'SgStil 2W 7 mm 3 lm vi 567.600 17 fiif, mbrntlV US 4 47 4646- Santa 546200 43 1 66ft 3 IU 1 53 SSffllt I 606.800 31- Vi jfoSKSal 9" I jL Exxon 604,300 68 10 1ft pi ISVl IJm HTffll Ml I If II 1MB MM I I hTI ibtj uitna L.I 7 tMV IM tWTJ sTM sT Zf? it! A u.1 1 4 8 rf rrfi5 Midwest 379.700 5 Jta.f- 1 Ml tt NASD 1J74J30 1 I'itV 3 1 S3 3 313.500 ft J. taj- Rt, Exxon Says It Won't Market Motor Speed Control Devices Dow Gains 6 in Rally Paced by Mining Stocks From Times Wire Services NEW YORK-The stock market advanced broadly Friday in a rally paced by gold and some savings and loan issues. The Dow Jones average of 30 industrials rose 6.22 to 992.80, closing out the week with a net gain of 7.03. The daily tally on the New York Stock Exchange showed about two gainers for every stock that lost ground.

Volume on the Big Board totaled 61.98 million shares compared with 62.44 million on Thursday. Nationwide turnover in NYSE- listed issues, including trades in those stocks on regional exchange and in the over-the-counter mar ket, totaled 70.88 million shares. Standard Poor's 500-stock index rose 0.62 to 134.08, and the NYSE composite index gained 0.45 to 77.09. The American Stock Exchange market-value index surged 5.77 to 352.39, and the NASDAQ composite index of OTC stocks advanced 1.84 to 206.29. Block Trade Ease Big block trades of 10,000 or more shares on the NYSE totaled 895 compared with 921 on Thursday.

In London, the Financial Times Index of 30 industrial stocks closed at 500.9, up 4.2. The 1980-81 high of 515.9 was set Nov. 21. The low of 306.9 was set Jan. 3, 1981.

The Tokyo Stock Exchange 225-share index closed at 7,220.94, up 24.14. The 1980-81 high of 7,322.06 was set Feb. 2, 1981. The low of was set March 28, 1980. In the bond market, industrials fell point and utilities were down point Trading was moderate.

Government issues were down 6 32 in intermediate and fell 432 in long maturities. But short-term governments advanced 232, according to the investment banking firm of Salomon Bros. Three-month Treasury bills were up 24 basis points to 12.60; 6-month bills rose 27 basis points to 12.01, and 1-year bills were up 5 basis points to 11.64. In municipal bond activity, gen-Please see STOCKS, Page 18 Business in Brief The dollar stabilized as the price of gold soared. For the first time since January, the price of gold soared to $540 an ounce, as concern over labor problems in Poland mounted.

The dollar was steady. In New York, the price of gold closed at $540 an ounce, up $30 at Republic National Bank. Most of the surge came after the close of European markets. Gold closed in London at $516 an ounce, up $7.25. In Zurich, the metal gained $2, as it closed at $511.50.

Late rates for the dollar in New York included: 2.0630 West German marks, up from 2.0623; 4.8725 French francs, up from 4.8700; 1.8800 Swiss francs, down from 1.8830; 208.05 Japanese yen, down from 208.65, and 1.1786 Canadian dollars, down from 1.1840. The British pound dipped to $2.2550 in New York, from $2.2758 the previous day. Chrysler scaled down its rebate program to just three models. Following the lead of General Motors Chrysler Corp. announced a scaled-down rebate program to replace one that expired Friday.

The new program offers a 6 discount off list price including options and destination charges to retail purchasers of 1981 Dodge Mirada and Chrysler Cordoba and Imperial models. The discounts range from $456 to $1,247.80 and apply to eligible cars soid or ordered from participating dealers March 21 37 IBiSSlOI "ii ') 33 32 ffii lfi 34 CIjrOifl 12 11 231 33'4 32'A 33'A jm ttttAKppi'Di VuJ ii ri AMEX 7.100 fCkwS lfi 4 i nviASuSil 4) Tf 3 hwtlnt System 23.300 41 11 I BSPP TOTAL ANNUAL 1 1 I 1 1 lift iS 8 il fel TRANSACTIONS 'ffi ij 1 '8 rtAMMs-S LM. J.ld. 46 ffi jn iff! fJ 4JJJ jfij 41 1 MAESi4b Si! 4liSS 1980 2.669.990 40 llftAlpnPr 9 12 1979 1.518,420 US 3l IS SS SSl ft mai a 111? tlg'i fill II 76 MftAmlJpll fl 1 74 MVi 7 Qorox jT I 13 12 12 3 phnroUt 6 A gft fl HftI 12Ja. Hjl li5 ife, 'ffi 5 2AHwP'H? 1 5 H45 5 8 Vi TT4PEi4J Wsk Le Ont Cl Ijp Ju, Jt 8Hl 2J IM lfmiffi-IOi 24 14BvvWJ2 14 mi 1 fa 'jikSff IS lit 15 M4AmA- my 14 14 14 Btnftes 20 59 4 5 5-iSJ J5SS2Sia ii ffi 8f JS x-u 1, liS IS jmllSSij a 351 54 sj 5S fi52ar a SIS 8 ii IN ilif I i ilia ii pps i2 mtikl i 10 26 25 26 nsSclio 3 'i 115 41 4l-" 56ft 3MAnSm3.44 i 43 47 42 IT BlnrWf Mil 5 26 Bft 2 26 MftCwIplli? E4 13 jl 2J- 3S 15a5lfjo i IsLjo i 2jgfi 7jft jiftiwEptw Mm 14 lMhpt0 I 5 rwf 8 4ckOrl6 i 2J Mft 21.

ft CraatUO 4i i 1S21 4W4 ft 4W4 37 AmSdsla 36 37 9 8 iWPil IN 7 8 80- 9 USPsvi36 1.4 21 34 26 26 VI WasSS 17 1 W- 8 BBSrJnl 53 6 ST i. llVi CornK 2. 113 1 tt 30 20 AmSr I I 3 25 25ft jjS IM BiuLi 1 17 16 2W 17ft Compor 2j 146 24 24 24 lira fl. IsBLnitBsSF. feliU 1 I ft "i From Times Wire Services NEW YORK-Exxon which announced almost two years ago it had developed an energy-saving device that could save the equivalent of a million barrels of oil a day by 1990, said Friday it will not market the device.

Exxon said the device, which was to save energy by controlling the speed of electric motors, "could not be cost-competitive with alternate products under foreseeable conditions." The Exxon statement, in a brief news release, was in sharp contrast to the ebullient announcement made by Exxon in May, 1979 during the last gasoline crunch when it said the new technology offered promises of great energy savings. 'Dog-and-Pony Shows' That announcement was made at the same time Exxon announced plans to acquire Reliance Electric a major manufacturer of electric motors and generators, for $1.17 billion. Despite Federal Trade Commission objections, the merger was completed. Some critics have contended that through April 4. Chrysler's announcement came one day after GM announced a new discount program, offering $500 to $700 rebates on selected sports models and mid-sized sedans and station wagons.

The Chrysler rebates don't cover the company's K-car compact. Texaco reported another setback in its Baltimore Canyon search. The White Plains, N.Y.-based oil comany said it drilled the 19th dry hole in the exploration for oil and gas in the offshore Baltimore Canyon Trough off the mid-Atlantic coast. Texaco dry hole was within five miles of a cluster of 11 gas strikes and one oil strike scored by the industry in five exploratory wells. Inflation may fall below 6 by mld-'82, a forecast said.

Inflation also could fall below 5 by late 1984 and to 4 by late 1985 if the bulk of President Reagan's budget and tax cuts take effect, said John Rutledge, president of the Claremont Economics Institute, a forecasting firm that has done work for the Reagan Administration. However, if Congress and the Federal Reserve Board fail to implement the Reagan plan, inflation could start accelerating again by late next year and hit the 12 range by late 1984, Rutledge said. Rutledge also predicted drops in the prime interest rate to 12 by the end of May, Exxon's public relations campaign about the energy saving device was designed to counter FTC oppositions to the Reliance takeover. "Exxon was doing dog-and-pony shows to help assuage public opinion about its merger," Forbes Magazine says in an article recalling the campaign in its current issue. Exxon, however, had a different explanation.

"Exxon doesn't have the manufacturing and marketing expertise to achieve rapid commercialization" of the device, Exxon Chairman Clifton C. Garvin Jr. said two years ago. He said that was why Exxon decided to buy Reliance. "We are dealing with a technology that we are convinced will result in a significant saving," Joseph Graves, a top Exxon official, added at the time.

Reductions of as much as 52 in the the energy needed to run electric motors had been achieved, the company said. At the time, some in the industry said the Exxon technology was not as innovative as the company Please see EXXON, Page 18 2 Partners Go to Court Over ON-TV Dispute By KATHRYN HARRIS, Times Staff Writer The two partners who own the ON-TV pay television system in Los Angeles, after severing their pay-TV ties in other cities, have taken a local quarrel to Superior Court The issue is whether the managing partner, Chartwell Communications should have placed a new executive on the payroll at $400,000 a year despite the second partner's objections. Oak Television as a partner in the over-the-air pay TV service, has asked the state court to enjoin Chartwell and its owner, A. Jerrold Perenchio, from using partnership funds to pay William M. Siegel, who since July has been serving as general manager and chief executive of National Subscription Television-Los Angeles, as ON-TV is formally known.

Siegel, who headed the food division of Philadelphia-based ARA Services was recruited in March, 1980, by Perenchio with an offer of a 5-year contract as president and chief executive of Chart-well Communications which in turn is the general partner Please see DISPUTE, Page 18.