The Los Angeles Times from Los Angeles, California • 67

2 Part IV I'riday, August 27, 1W2 Ooo Angclco Slimeo Large-Block Hit 2,388 on Trades on Big Board Record Volume Day Dow Jones 30 Industrials With i ii 111 ti 'I ii, i 111 II II I I II ii i I 'Hill I I -IM i Mill I I I 111,1, 'I''' If! 780 I 760 I I i h'rnm Times Wire Services Largo blocks of or more shares on tlu Now York Slock Exchange Thursday hit 2.388, compared to 1,828 on Wednesday, as trading volutin1 reached a new high. Nationwide turnover in NYSK-listed issues, including trades in those slocks on regional exchanges and in the over-lhe-counter market, totaled 160.45 million shares, also a record. Nearly 1.200 NYSK-listed Issues moved ahead, with gainers holding about a 3-1 lead over losers as the market's August rally stormed ahead. Technology, steel, auto, chemical and drug stocks paced the advance. The Dow Jones average of 30 industrials, up 9.99 points Wednesday after suffering a 16.27-point setback on Tuesday, closed with a 7.52-point gain at 892.41.

Ii had stood at 903.16 at 2 p.m. before falling back. Still, il was the measure's highest closing since Dec. 4, 1981, when it finished at 892.69. The NYSE composite index rose 0.62 to 68.01.

At the American Stock Exchange, the market value index climbed 4.74 to 276.37. Marietta Will Review Bid From Bendix Hy NANCY IUVKKA, Times Stnfl Writer Martin Marietta board will meet Monday to review an iinsoh cited takeover offer by liendix a company spokesman said Thursday. In the meantime, the first part of the Hendix takeover bid, which was revealed Wednesday, is under way, with the firm running newspaper advertisements of its tender offer to buy up to 45 of Martin Marietta's 35.8 million outstanding shares at. $43 a share, a Bendix spokesman said. The remaining stock of Martin Marietta, a major aerospace and defense contractor that also produces aluminum and cement, would be acquired by exchanging 0.82 Bendix shares for each share of Martin Marietta stock.

Bendix already owns 4'-j. of Martin Marietta, which is in Bethesda, Md. Takeover Fight Expected The results of the Martin Marietta board meeting will be announced "promptly thereafter," the company said. Analysts have said they expect Martin Marietta to fight a takeover. If the takeover, valued at about $1.4 billion, is successful, Bendix would become one of the largest aerospace and defense prime contractors in the country.

Bendix has been seeking a high-technology merger partner for some time. Bendix, based in Southfield is an aerospace subcontractor and a diversified manufacturer of automobile parts and machinery. A federal judge in Oklahoma City issued a temporary restraining order Thursday banning the use of the Oklahoma Takeover Bid Act if Martin Marietta were to fight a Bendix takeover. Martin Marietta owns at least two cement plants in Oklahoma. Martin Marietta was among the most actively traded companies on the New York Stock Exchange Thursday, closing at $42.25, up 3.

Bendix rose $1.50 to close at S50.125. Business Failures for Week Hit 50-Year High Pocord volume ol 137 33 million shares set August 26, 1982 723 730 86 813 820 827 flight to quality" by mvosiors concerned over the stale of the economy. Treasury bills, with the backing of the U.S. government, are easily converted into cash. In the secondary market, interest rates on three-month Treasury bills fell 43 basis points to 6.96';,.

A basis point is one-hundredth of a percentage point. Six-month bills fell 12 basis points to 8.80 and one-year lulls wore off 6 basis points at 9.56. In the secondary market for U.S. Treasury bonds, prices on intermediate maturities fell 1432 point and long-term maturities slid 1832 point. Short-term governments were virtually unchanged, according to the investment firm of Salomon Bros.

Inc. The movement of a point is equivalent to a change of $10 in the price of a bond with a $1,000 face value. In corporate trading, both industrials and utilities fell point in quiet trading. Among tax-exempt municipal bonds, general obligations fell 34 point in light trading and dollar bonds were down V2 point in moderate activity. ON TV Plans 24-Hour-a-Day Programming By DAVID CROOK and LEE MARGULIES, Times Staff Writers ON TV of Los Angeles, the nation's oldest over-the-air subscription television service and the largest in the Southland, announced Thursday that it will begin operating 24 hours a day beginning Oct.

1. As a result, the Spanish -language programming now broadcast over KBSC Channel 52 will be dropped. ON currently operates its pay-TV service over KBSC for about eight hours a day on weekdays, beginning at 5 p.m., and for more than 12 hours a day on weekends, starting at noon. ON TV's signal can only be seen by subscribers, but at other times KBSC's Spanish-language programming is available to any TV viewer in the Southern California area. The decision to expand ON's current schedule of sports, specials and movies means KBSC will be a full-time pay-TV channel, similar to pay services such as Home Box Office and Showtime, which operate exclusively over cable-TV systems.

The move was made possible by the Federal Communications Commission's recent decision to deregulate the subscription television industry. The regulatory agency previously had required broadcast stations such as KBSC to carry at least 28 hours a week of programming that was sent out in the traditional manner so that anyone could watch. ON TV said its basic monthly fee will remain at $22.63 when the schedule expands. However, the late-night "adults only" package of films it now offers will be broken off into a separate service that will cost subscribers an additional $5.95 a month to receive. NEW YORK (P-Business failures reached a 50-year high last week and economists warned Thursday that recent sharp declines in interest rates will not prevent more major casualties in the months ahead.

Two recessions since 1980 have weakened the nation's businesses, with prolonged periods of high interest rates and declining profits leaving corporate finances in the worst shape since the Depression. Dun Bradstreet a private credit-information service, said the 572 business failures it recorded last week surpassed the previous 1982 peak of 548 in the week ended June 17, and put the corporate casualty count "at the highest level since the early 1930s." The figures reflect not only the effects of recession and high interest rates but also recent changes in federal laws that make it easier for smaller firms to file for bankruptcy. The mounting toll comes at a time Ex-Airline Chief Sued MEXICO: Business Suffers Standard Poor's index of 400 industrials rose 1.10 to 132.32, and composite index was up 0.97 to 118.55. The NASDAQ composite index for the over-the-counter market closed at 178.17. up 3.24.

In London, the Financial Times index of 30 industrial slocks closed up 7.7 at 576.1. The 1982 high of 594.0 was sol June 8. The low of 518.1 was set Jan. 5. The Tokyo Stock Exchange 225-share index closed up 26.78 at The 1982 high of 7,938.83 was set Jan.

29. The low of 6,864.56 was set Aug. 17. Wilshire Index Up The Wilshire index of 5,000 equities closed at 1.212.525, up 12.928, or 1.08, from the preceding trading day. A year ago the index stood al 1.318.516.

For the 12-month period, the index high stands at 1,326.217 and the low at 1,051.115. Bond prices fell, but finished above the day's lows after the Federal Reserve Board announced its fourth half-point cut in the discount rate since last month. Yields on three-month Treasury bills plunged, in part reflecting "a when the stock market is soaring on a euphoric buying binge triggered by a tailspin in interest rates, raising hopes for a recovery from the recession. "One can be very encouraged by developments with interest rates in the past eight weeks and yet realize it may be coming too late for a number of firms," said Thomas Thomson, chief economist at Crocker National Bank in San Francisco. The spurt of business failures in the week ended Aug.

19 raised the weekly average of business failures to 459, compared with 318 in the same period a year ago. The last time there was a higher business failure rate was 1932, when the weekly average was 612, according to Dun Bradstreet. "The wave of bankruptcies and cracks in the financial system are the fallout from the modern-day counterpart to the Depression," said Allen Sinai, an economist at Data Resources Inc. head of the Chamber of Commerce. "As we begin to recover, we will fulfill out commitments totally," he added.

Meanwhile, unemployment is growing. According to the government news agency, Notimex, more than 500,000 construction workers have been laid off because the cost of building materials has shot up by 50. The automobile and auto parts industry has also been hit hard. A spokesman for the industry said that at least 15,000 employees of Ford, General Motors and Chrysler in Mexico have been let go or will be soon. Auto sales are expected to drop by 50.

So far, unemployment has not caused serious problems because Mexican law requires generous severance pay. However, there is no unemployment insurance to support workers without a job after the severance pay runs out. Mexican labor leaders have counseled patience and cooperation with the government and private enterprise. "We do not want to resolve the problems by way of a general strike, nor do we even want to think about it," said Fidel Velasquez, the head of the nation's most important labor federation. Labor leaders have also agreed not to ask the government to impose salary increases.

Instead, they have agreed to negotiate such increases with employers, even though the employers have indicated that they have no way to offer salary increases at this time. to the National Assn. of Securities Dealers. The banking industry has in recent months made a number of forays into the lucrative securities business. Last November, for example, BankAmerica Corp.

agreed to acquire Charles Schwab which operates the nation's largest discount stock brokerage. A number of non-bank financial service firms including Prudential Life Insurance Co. of America, American Express Co. and Sears, Roebuck Co. also have acquired major brokerages.

The moves are seen by some analysts as part of an inevitable process that has blurred the traditional distinctions among financial New York Volume 618 625 72 79 7 16 PARTNERS: Continued from First Page he lent Kenison more than $150,000 virtually all his cash reserves by the spring of 1981, when Kenison was "putting together" Jet America. "I introduced him to several personal friends and clients who invested $35,000 each in the airline's first restricted offering," Roth's statement in the court papers said. "I also invested $35,000 I knew he needed cash but never dreamed he would compromise his personal integrity to obtain it." After Kenison left the mortgage loan firm July 1, 1981, to join Jet America, Goodson discovered that the mortgage firm's trust fund account at the Central Bank of Oakland was $120,000 short, Roth said in his declaration. The pressmen's union reached a deal with the paper last week and that was also announced at the time the drivers' deal was reached. The contract would run from 1984 to 1987 and would include the paper's demand to cut the equivalent of full-time jobs.

In return for the cuts, the News management agreed to pump $92 million in the 63-year-old newspaper over the next two years to keep it alive. The agreement has not yet been ratified by union members. net worth fell 20.1 in July from a year earlier. The net worth of the nation's federally insured savings and loan associations assets minus liabilities dropped 2.5 last month to $24.08 billion, the Federal Home Loan Bank Board reported. Accounting adjustments had produced a slight rise in June, following 17 consecutive months of decline.

The July, 1981. level was $30.14 billion. Mortgage lending dropped $1.81 billion to $3.74 billion in the month. A year earlier $4.90 billion in mortgage loans were made. American Airlines pilots OKd productivity concessions.

The new 30-month contract ratified by Allied Pilots Assn. officials grants the Dallas-based carrier an estimated $20 million in annual productivity improvements in exchange for a guarantee against furloughs of any of the 3,600 pilots currently working. About 500 American pilots were currently on furlough. United Airlines last year signed a similar no-furlough contract with its pilots. American, which reported its second-quarter earnings had fallen to $466,000 from 1 Continued from First Page Much of the problem stems from the government's desperate need for foreign currency to pay its mul-tibillion-dollar debt and avoid the even more serious problems that bankruptcy would entail.

"The Central Bank is sucking up every dollar it can find," said an American banker who asked to remain anonymous. Thus, businessmen are having a difficult time getting dollars to pay off their own debts. As the demand for the dollar grows, the peso plunges in value. Earlier, the government set up a "preferential" exchange rate under which specified Mexican importers and those who owed money abroad could obtain each dollar they needed with only 49.5 pesos. So far, however, this has been an illusory rate, because the government has taken all the dollars to pay its own debts.

"Businessmen should be aware that this rate will probably never be available to them," said Gerardo Valdez, the assistant director of the Center of Economic Studies, a private organization. After the first devaluation of the peso in February, the center said its surveys showed that one out of every seven businesses in Mexico was faced with possible bankruptcy. "Naturally, things have become a lot worse since then," Valdez said. "We don't know the magnitude of the problem, but we certainly know the direction." "Our external commerce is limited by the lack of foreign exchange," said Ernesto Rubio del Cueto, the Roth then examined the mortgage company's books and "discovered a pattern of carefully concealed embezzlement by my friend and tax client," the document related. Kenison was called to a meeting July 8, 1981, and came with his attorney, Billips, Roth's statement continued.

It quoted Kenison as saying, "I have been taking money that isn't mine" and "I have been a bad boy; I had my fingers in the till." Goodson made a declaration to the court corroborating that account. Billips told The Times, however, that the purported admission by Kenison is "an absolute lie." He declined to discuss specifics of the suit on grounds of legal ethics. Roth's declaration said that after $27.8 million last year, has been seeking productivity concessions for some time. The concessions are expected to increase pilot flight hours, among other things. The dollar rose despite news of a cut in the discount rate.

Gold prices, meanwhile, soared to a 10-month peak, closing at $427.30, up $19.40 from Wednesday, on the Commodity Exchange Inc. in New York. It was the highest since Nov. 6, 1981, when the metal closed at $427.70. The dollar made strong gains before its value was undercut by the Federal Reserve's announcement of a half-point cut to 10 in the key rate charged to banks (a decline in a key rate reduces the dollar's attractiveness to investors).

New York exchange rates, compared with Wednesday, included: 6.8750 French francs, up from 6.8725; 2.0765 Swiss francs, up from 2.0550; 2.4350 West German marks, up from 2.4348; and 254.90 Japanese yen, up from 252.63. The British pound fell to $1.7501 compared with Wednesday's $1.7570. Chase reduced its exposure in Lombard-Wall's bankruptcy. New York-based Chase Manhattan Bank said recent court proceedings caused the bank to reduce its exposure to potential losses from dealings with Lombard-Wall Inc. and its Lombard-Wall Money Markets Inc.

subsidiary from $45 million to less than $3 million, all of which is secured. The bank said it has no unsecured exposure to Lombard-Wall, which has received permission from a federal judge to resume business as a government securities firm. Recent rulings have allowed creditors to sell securities held un- the July 8 meeting a continuing audit disclosed "more and more carefully concealed embezzlement," including Kenison's signing of notes obligating the mortgage company to repay loans made to him by other persons. The suit alleged that Kenison obtained about $200,000 from fraudulent issuance of checks on company accounts for personal use and issuance of post-dated checks, which were not deducted on the firm's books. Kenison's cross-complaint accused Goodson and Roth of slandering him with false accusations to Wells Fargo Bank and other lending institutions and inferences that he "committed certain felonious crimes." It also accused them of causing him emotional distress with "harassment." der repurchase agreements.

Meanwhile, Standard Poor's Corp. said it has affirmed ratings on 55 issues with proceeds invested in repurchase agreements with Lombard -Wall. One issue, which did not identify, is under review for possible reduction. Assets of the nation's money market mutual funds rose S3.74 billion to a record $227.19 billion in the week ended Wednesday, the Investment Company Institute reported The Pension Benefit Guaranty Corp. said a federal bailout of Braniff's four pension plans will likely cost between S37 million and $59 million, noting that those estimates were "considerably less" than earlier forecasts of as much as $70 million McDonnell Douglas said Martinair Holland, a Dutch charter carrier, ordered one DC-9 Super 80 jetliner, bringing total firm orders to 112 Hawaii Express won FAA certification and inaugurated Los Angeles-Honolulu service Thursday Santa Fe International said it completed its previously announced acquisition of Andover Oil Co.

of Tulsa. for $150 million in cash. Anovcr is privately held Electric production totaled 447.29 million kwh in the week ended Aug. 21. the Department of Water and Power reported.

Usage is .53 below a year ago but .39 above last week's production City National Beverly Hills, declared a 10 stock dividend on its common shares and raised the quarterly cash dividend by 10 to 22 cents per share. Both will bo payable Oct. 15 to holders of record Sept. 30 Business in Brief The U.S. lowered its estimate of 2nd-quarter productivity.

The Bureau of Labor Statistics said non-farm productivity rose at a seasonally adjusted annual rate of only 0.5 in the period between April 1 and June 30. In a preliminary report issued July 29, the bureau had said that non-farm productivity rose at an annual rate of 2.3. The revised figures apparently reflected more accurately the effect on productivity of the recessionary business slowdown. The bureau also reported that according to preliminary figures, productivity in non-financial corporations increased at an annual rate of 2.3 in the second quarter. The FTC cleared Occidental's bid for Cities Service Co.

Los Angeles-based Occidental Petroleum Corp. said it had been advised that the Federal Trade Commission, with the concurrence of the Justice Department's antitrust division, had granted early termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Thus, with potential antitrust obstacles out of the way, Occidental can begin buying shares of the Tulsa -based firm Sept. 9. Occidental and Cities Service agreed Monday to merge in a deal valued at approximately $4 billion.

The N.Y. Daily News reached agreement with its 11th union. The financially struggling New York tabloid newspaper made a tentative pact with the last of its unions the drivers on cost-cutting plans the newspaper has said are necessary to ensure its survival. SEC PAC: Brokerage Unit Continued from First Page Los Angeles-based Security Pacific, which operates the nation's lOth-Iargest bank, will be allowed under the ruling to buy and sell securities for its customers, to make margin loans for stock purchases and to pay interest on customers' account balances. It is prohibited under the Glass-Steagall Act, however, from acting as a "principal." which precludes it from such operations as underwriting a new stock issue.

The new subsidiary, to be known as Security Pacific Discount Brokerage Services will register within a week as a broker with the Securities and Exchange Commission and apply for membership 1.