The Los Angeles Times from Los Angeles, California • 8

8 Part I Monday, March 29, 1982 Cos Attjjelea Slimes TELACU: Far-Flung Conglomerate Continued from Third Page knowlcdgcd. "I'm from a rich family and I'm used to a good life." Gonzalez-Reyes said that he worked out of a "lavish office" and spent funds supporting a life style that would make him appear successful in the fast-paced entertainment world. Even with help from government grants, Gonzalez-Reyes said, the company could not make it. "My life at TELACU was one of excuses to my friends and clients why I couldn't pay, why the films weren't ready." he recalled. TELACU now admits that the venture into the entertainment world was an unwise one, requiring too much up-front capital, according to former spokesman George I'la.

The Inter-American Entertainment Co. was shut down last year, but Pla said he hopes the company's films may some day be marketed at a profit. While conceding some heavy losses from this and other faraway business ventures, Paladines said that when he worked as president of TELACU Industries, he put the organization on a firm financial footing. "When I came to TELACU, TELACU did not have a line of credit with any bank zilch!" said Paladines, a certified public accountant, who took over from Rutkin in mid-1979. Under his stewardship, Paladines said, private auditors gave TELACU an unqualified good rating, which is not issued "unless a company is clean." Paladines continued said Paladines, explaining that a top executive at Control Data knew David Lizarraga personally.

Several months after the investment, Paladines received $200,000 from a Control Data subsidiary to set up his own export company, now located in a Century City high-rise on Avenue of the Stars. Paladines said, "I resent the implication that there is something odd, unusual or extraordinary" about Control Data's investment in his company. Officials at Control Data said that there was no connection between the transactions. TELACU spokesman Echeveste refused to comment. Attorney Rubalcava explained that TELACU has deliberately invested in businesses outside the barrio because, "If there's money to be made out there, it would be very provincial of us not to avail ourselves of those opportunities." The only example he gave of such a successful venture is TELACU's Community Thrift Loan, which has four branch offices in "middle-class bedroom communities or affluent areas" of Southern California.

Admits Bad Investments Rubalcava also acknowledged that TELACU has made some bad business investments, but dismissed the losses, saying, "A lot of people have lost money. Look at Chrysler, Lockheed or any of these large corporations." TELACU's Pla said part of the trouble was that TELACU grew too fast. "When you grow 700 in three or four years, you're bound to have some problems," Pla said. He added that the agency's far-flung business empire is now being consolidated. "For a while," Pla said, "we were into everything Wr Cy Mow through ttA April 3, Our lowest video prices ever! the strategy of investing outside the barrio.

"I went to a very good business school and I never heard that a decision for a business investment had to be predicated on a geographical location," he said. "What does 5 miles, 500 miles or 5,000 pe HiBaamBMsin I 1 1 Compare at $299! I I JleP pi ly anywhere and everywhere." "There appeared to be no rhyme or reason for the investments," said one former TELACU employee. "I just shuddered" at several projects, said former TELACU financial analyst Bill Vera. Recalling a $200,000 investment in the Blackfeet Indian Writing Co. in Browning, Vera said, "I remember looking at the books and thinking it was crazy." The writing company's president, however, said TELACU has made an "adequate return" on its investment, but he refused to say how much.

Justifying the investment, TELACU officials explained in a report that it "helped win over the support of some key people in the Economic Development Administration," which had also loaned money to the Montana company, which employs Indians in the manufacturing of pencils, pens and markers. Useful Contacts TELACU's contacts at the Economic Development Administration were "extremely useful" in helping TE 5cH feoTrri El Panasonic lightweight color sound video camera. Zoom lens is great for close-ups and action shots. 13-inch (diag.) portable color television by Sharp. View your favorite programs in brilliant color.

Perfect for your bedroom, workshop or kitchen. Rapid-on picture and sound. 'Model 13F22. il bunt-in micro- Jf liUW II phone makes I Built-in microphone makes I recordings come I 1 alive. Limited quantities, I 1 Model PK-700.

ome demos. I recordings come alive. Model PK-700. LACU get economic development grants to help build a miles (away from East Los Angeles) have to do with an investment?" The theory, he continued, is that profits generated elsewhere will be used for the benefit of the local community. However, not all the faraway projects Paladines pushed were winners.

At his direction, more than $100,000 of SBA money was invested in Michigan Peninsula Airways, a fledgling, minority -owned air cargo company now beset by creditors. A TELACU subsidiary even bought a modified DC-8 jet and leased it to the cargo company. Company owner George Reasonover, a Detroit businessman, recalled that the plane was one of two the company flew, both of which "didn't have any navigational equipment." However, Paladines defended TE-LACU's jet as a "good, sound plane." TELACU invested in the air cargo company in December, 1979, Reasonover recalled. Venture Justified Paladines justified TELACU's investment in the airline, saying Michigan Peninsula Airways looked like "a company that had a good future." But he acknowledged that it did not turn out that way. "Nobody has a Ouija board," he said with a sigh.

TELACU's stock in the company is now "worth zero," said Reasonover, who had once hoped to establish the airline as a thriving cargo carrier to South America, the Caribbean and Europe. The company has floundered despite investments by TELACU and extensive financial support by Minneapolis-based Control Data Corp. It was Control Data that encouraged TELACU officials to invest in the air cargo company in the first place, jj 46-acre industrial park near East Los Angeies, me report continued. The industrial park was built in the hope of generating jobs for barrio residents and attracting labor-intensive companies to the area. TELACU invested government grant money in a San Jose bank and a San Fernando Valley wallpaper company, with plans to move them into its industrial park.

But neither company has relocated, and today the president of the bank said the proposed move was "kind of an idle dream." The owner of the wallpaper company refused to be interviewed. Another company that TELACU wanted to acquire and move into its industrial park was a furniture manufacturer, Stephen Edwards then located in Comp-ton. Negotiations to purchase the firm broke down with TELACU filing a lawsuit for breach of contract and the Please see TELACU, Page 9 Limited Quantities. Some Demos. Panasonic VHS 246-hour videocassette recorder with remote control.

Take command with the magical convenience of a full-function remote control. 4 state-of-the-art video heads deliver optimum color and picture in the 2, 4. and 6-hour modes. Hitachi 19-inch (diag.) color television. Quick-start system so you won't miss a moment of your favorite shows.

'Model CT1911. ADVKKTISKMKNT irjMnlgigMwgWgggtM Below dealer cost Stop 10 71 rvm 'E3 23 gj sa I c--i I V. aSS.iiS.. Below dealer cost! mmm Limited quantities, some demos. Lesson 1 Panasonic 246-hour VHS videocassette recorder.

Record up to 6-hours ol your favorite programs. Records show while you're away so you can play them at your convenience. Remote pause control lets you edit out commercials. Feather-touch control won't jam tape 'Model PV-1270. use a positive approach 19 inch (diag.) color TV with remote control by Sharp.

6-function remote control lets you pick up any channel from your easy chair. Rapid-on picture and sound so you won't miss a moment ol your favorite shows. 'Model 19E85. -R. This free lesson will help you to stop smoking in one week.

Without scare tactics, hypnosis, behavior modification, or smoke blown in your face. It will also help you to stay off smoking. Without gaining weight. Or being irritable towards others. stopping and staying off smoking.

So you will be getting a lot out of those two hours. You will be discovering how to overcome the major blocks to stopping smoking. You'll begin to develop the positive motivation you need to stop smoking without gaining weight or reacting irritably. And when the meeting is over you'll he on your way to successfully stopping smoking, within a week. where W.

Los Angeles Offices, 2265 West wood Blvd. Wed. or March 31 or April 1 afrfl-- mm heres how Save Even More on Demos and Discontinued Items! Hurry! Hurry! Quantities are limited and subject to prior sale. Not all items are in all stores. Some demos.

Some discontinued items. All sensational bargains! DON'T MISS OUT! Sony SL-5800 Beta videocassette recorder with remote control. Save $270. Sharp 17D50 17-inch (diag.) dual screen TV with remote control. Save $64 W.lwMdBI 22M 5 VS San Oiroo wt 2 tninuUi from any of these exits'.

San Diego Fwy Rt. on National Blvd. tail. Irfl on Wrstwood to 225. San Diego Fwy OlympicPiro Blvd.

mil, rt. on Sawtrllr rt. on Olympic, rt. on Wrstwood to 22fi5. Santa Monica Fwy OverlandNational mil turn rt.

on National, which bfcnmn Wrstwood, to 22H5. Santa Monica Fwy Rt. on Overland exit, left on Olympic, left on Wrstwood. '899 '477 We do something for you that no one else will. Schick won't do it.

Smokenders won't do it. Nor will any other group, plan, or program. We guarantee that you will stop smoking in one week, or you pay nothing. And we guarantee that you won't pay us until after you've stopped smoking, and only at the end of our program. We also guarantee to let you use your monthly cigarette money to take our program, if you wish.

And we guarantee to trust you. If at the end of our program you tell us you've stopped, then you owe us our fee. as agreed. However if at that time you tell us that you did not stop, then you don't owe us even one penny. No one else will offer you these guarantees.

Hut we can. Hecause we know that our program will work for you, once you use it. Sawulla 81 Thrrc ia ample on-the-atreet parking. Orange County Offices, I 2 1 5 F. Chapman Orange Wed.

or March 31 or April 1 Panasonic CT-959 19-inch (diag.) color TV with remote control. Save $53 469 Panasonic PV-4500 or PV-4510 portablehome VHS videocassette recorder with tunertimer. Save $240 949 I SI Santa Ana Fwy (5) Chapm I I 31 AvSlatr Collrar Bl. rait turn JT i. I Santa Ana Fwy Chapman Avr.

oLf flfil Kast rail go itramhl. r.ast rail gf Chapman Panasonic CT-3020 13-inch (diag.) color TV with electronic tuning. Save $41 299 Bohsei 19B081R 19-inch (diag.) color TV with remote control. Save $38 $359 Bohsei C9124A 19-inch (diag.) color TV. Save $31 $274 Panasonic PV-1300 VHS videotape recorder.

Save $212. 799 Magnavox ODDESSEY 2 video game console. Save $31 129 jj Orange Fw Avr.Orangi Newport wy gr rail tum Irlt. UJ ChapmaVXn imTV Guam bonlar 1221 wy or Chan- here's why Panasonic CT-9020 19-inch (diag.) color TV. Save $40.

'339 man AveOrange exit. go straight. Garden Grove Fwy (22) Tuslin Ave. exit, turn left to Chapman. Riverside Fwy (91): To any fwy listed above (Newport best).

RCA FER-488WR 19-inch (diag.) color TV with remote control. Save $54 488 when Sony SL-5600 Beta videocassette recorder. Save $331 titi Panasonic CT-9010 19-inch (diag.) color TV. Save $36. '699 '319 in The problem that most people have is they find stopping smoking to he worse than smoking.

The result is they either don't stop, or they stop, but they can't slay off. So. you're invited to attend a free two hour meeting on how you can mkikc stopping smoking and staying off smoking better than smoking. (In fact, our approach is called Positive Realism.) The meeting times and locations arc listed below. You don't need to bring any money to the meeting.

Hut you're certainly welcome to bring your cigarettes and your questions. Hecause within two hours you'll find out how you can stop smoking, and stay off, in a positive way. Without gaining weight, or reading irritably. And without having to go through torture lo do it. Panasonic CT-9060 19-inch (diag.) color TV with remote control.

Save $83 499 Sony TV-513 5-Inch (diag.) Black and White TV with clock. Save $18 149 JVC GX-77UVFC-509U Video Sound camera and electronic viewfinder. Save $127 749 Sanyo 61T64 16-inch (diag.) Black and White TV. Save $30. 99 There are thousands of people who are not smoking today, hecause Ihey attended one of our free meetings.

There's no reason why our program can't work for you. In fact wc guarantee it will, or you pay nothing. The meeting limes for both locations are 1 00 a.m.. I p.m.. 0:00 p.m., and p.m.

acli meeting will last two hours. (Of course, you can use your monthly cigarette money to take the program, if you wish. You don't give us a penny until after you've slopped. And we trust you. If you tell us you didn't stop there's no charge.) The only lliing to worry about is pulling off slopping smoking.

Hecause you know thai once you put it oil you keep on putting il off. The result being you never slop smoking. So if you don't want to end up being someone who always promises themselves they'll stop hut never does, you need to do something about it. without delay. I he thing to do is to attend one of our free meetings.

Ami instead of living with broken promises and unsuccessful attempts, you'll successfully stop smoking, in one week. And you'll be feeling good about it. luK2. Slop I in I ('nip. IMilrv WfsIwimxI Ml, I what you'll get You'll work with trained counselors who arc ex-smokers and who have helped thousands of people to successfully slop smoking, In fact, you will be using the program thai has the highest rate of success on record.

You see. we're lie ex-smokers at and we've been helping people to successfully stop smoking since The reason thai can do so much for you is thai we know all the lips and downs of Check the white pages for the Pacific Stereo nearest you. Stated savings are based upon Pacific Stereo's national average selling price lor Individual components sold during the period February 1, 1982 to February 28, 1982. Prices may have varied in dillerent markets or individual stores. Aclvfi isi'if (oml Ihiouiili S.iluul.iy, An il 3, 1982.

1982 Pacilic Stereo A Unit ol CBS Inc..