The Los Angeles Times from Los Angeles, California • 65

2 Part IVFriday, October 5, 1984 CosAngcles Slimes Market Rebounds; Dow Gains 4.53 Dow Jones 30 Industrials Thursday, Oct. 4, 1984 mart Tests 10 Financial Centers in San Diego Area By ANTHONY RAMIREZ, San Diego County Business Editor SAN DIEGO-K mart Corp. said Thursday that it has opened 10. financial -service centers on a trial basis in its San Diego -area stores that are expected to offer higher savings rates than free-standing savings and loans. The program, which cost $1.1 million to start up, is being operated with San Francisco-based First Nationwide Savings, the nation's sixth-largest with $9.1 billion in assets.

First Nationwide will run the branches with 30 part- and full-time staff members. Robert E. Lackovic, executive vice president of First Nationwide, said in an interview that, because of the branches' low overhead, he expects First Nationwide to be able to offer interest rates on money-market accounts, individual retirement accounts and certificates of deposit that will be one-quarter to one-half percentage point higher than those of banks and savings and loans. "With this program we will attract people who aren't normally mart customers," Lackovic said. "There are customers who will want the marble columns and the pin -striped suits" of a bank, said Lackovic, "but they're going to have to pay for it" in the form of lower rates on savings accounts.

The Kmart "modular branch operation" occupies about 64 square feet and resembles a brightly colored booth at a county fair. Staffed during regular store hours (usually 9 a.m. to 9 p.m.), each booth is placed next to a Kmart store's front door, where an estimated 10,000 customers pass every week. A free-standing savings and loan branch with three or four staffers can cost anywhere from $300,000 to $500,000 to start up, said Lackovic. By contrast, the martFirst Nationwide booths cost $7,000 to set up, plus monthly rent, which mart officials didn't disclose.

From Times Wire Services NEW YORK-The stock market bounced back from a four-session decline with a modest rally Thursday. Analysts said a drop in open-market interest rates gave stocks a lift in a relatively quiet session. The Dow Jones average of 30 industrials, down 33.90 points in the last four trading days, rose 4.53 to 1,187.39. Volume on the New York Stock Exchange slowed to 76.70 million shares from 92.40 million on Wednesday. Brokers said some traders were shopping for "bargains" with the market at a two-month low.

Buying was encouraged by an improved bond market. Prices of long-term government bonds, which move in the opposite direction from interest rates, showed gains of $5 to $10 for every $1,000 in face value. Chart -watchers also were heartened that the Dow Jones industrials steadied late Wednesday at around 1,180 a point considered an important support level by some technicians. Nevertheless, brokers said questions persisted in the wake of the announcement by First Chicago Corp. on Wednesday that it would post a loss of between $70 million and $74 million for the third quarter.

First Chicago shares, which fell 3V4 points Wednesday, recovered Vto20V6. Walt Disney Productions led the active list, down 4V6 at 55V6 in trading that included a block of nearly 3 million shares at $61 sold by investor Irwin Jacobs and purchased by the Bass family of Texas Tidewater, in which Jacobs holds an 8.9 stake, gained to 22. After the Disney deal, Tidewater was presumed to be more likely to be acquired by Jacobs. Retailers Mixed Retailing issues were mixed as the major companies in the industry posted what analysts described as good, but not spectacular, sales gains for September. mart rose Va to 33, J.

C. Penney to 51 and Sears, Roebuck to 32V4. But F.W. Woolworth was unchanged at 34, Associated Dry Goods slipped Va to 56 and Federated Department Stores lost to 50V4. Thompson Medical climbed IVt to 17.

The company reported earnings for the quarter ended Aug. 31 of 55 cents a share, up from 47 cents in the like period a year earlier. Advancing issues outnumbered declines by about eight to seven on the Big Board. Nationwide, turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 92.57 million shares. The NASDAQ composite index for the over-the-counter market picked up 0.39 to 245.20.

At the American Stock Exchange, the market value index closed at 211.43, down 0.09. Large blocks of 10,000 or more shares traded on the NYSE totaled 1,476, compared to 1,759 on Wednesday. Most bond prices rose as a key short-term interest rate, the federal funds rate, remained below 11. The federal funds rate, the interest on overnight loans between banks, traded at 10.438, down from 10.675 late Wednesday and from levels above 11 earlier in the week. Analysts are divided on whether the Federal Reserve System is encouraging lower interest rates.

The announcement late in the day by the Fed that the nation's basic money supply fell in mid -September, a larger drop than economists had expected, had little effect on the bond market. Yields on 30-year Treasury bonds wound up at 12.29, down from 12.40 late Wednesday. In the secondary market for Treasury bonds, prices of short-term governments rose point, intermediate maturities rose 1232 point to 2232 point and long-term issues were up 3A point, according to the investment firm of Salomon Bros. In corporate trading, industrials and utilities rose XA point. Among tax-exempt municipal bonds, general obligations were unchanged.

YORK: Weighed by Army WEEK ENDED 97 914 921 928 105 1220 III 1200 1180 "HIGH -CLOSE -LOW 1160 1140 New York Volume Millions of shares 170 RETAILERS Continued from Page 1 ample, cooled sales, which rebounded once temperatures dropped, according to Philip M. Hawley, chairman and chief executive of Carter Hawley. The chain operates The Broadway, Neiman-Marcus and Bergdorf Goodman. At Carter Hawley 's Eastern divisions, "business was pretty good all through the month," Hawley said. The company, which posted the biggest September gain among the -top 10 U.S.

retailers, has phased out most of its appliance business. Analysts expect stores nationwide to continue heavy promotions throughout the fourth quarter. They are projecting industrywide sales increases of 8 to 11 for December and the fourth quarter. Sears' 4 September increase was of little concern to analysts. Greenstein says the nation's largest retailer had targeted sales for the month to be up between 4 and 5.

"Sears was at the low end of the plan, but they still made it." Meanwhile, Mervyn's, the Hay-ward, division of Dayton-Hudson posted a 24 increase, outpacing the 14.4 gain for the parent company, which has been the pattern for months. 160 150 140 130 120 110 100 1- 90 80 1 97 914 921 928 105 1 40 MONEY: Declines M1 Currency in circulation, plus demand deposits and other checkable deposits at banks and thrift institutions. It includes Super NOW accounts. Weekly averages in billions of dollars. liiiiiiiiaiiiiB Continued from Page 1 tern altogether if its problems cannot be corrected, a decision that will be made next September.

The Sgt. York gun, which accounts for 25 of Ford Aerospace's $l-billion sales each year, has come under a flurry of criticism recently from Congress, federal auditors and the Pentagon. Nevertheless, Louis F. Heilig, vice president of Ford Aerospace, said: "I don't think anyone is seriously considering a complete cancellation" of the program. Heilig said Ford Aerospace expects "at the very least" to build 263 of the tank-mounted gun systems, or about 40 of the 618 units the Army originally planned to buy through 1990.

That means that even if the program is ultimately canceled, he said, Ford Aerospace still will have enough orders for the gun to prevent layoffs until late next year at its production facilities in Orange County. Throughout its almost eight-year history, debate has raged in Continued from Page 1 The Fed tries to provide enough money for sustained without fueling inflation. investor looking for lower interest rates, in Ml is a good sign," said Maury Harris, Paine Webber Group Inc. drop will start to renew the discussion the Fed could start easing its market let the (federal) funds rate come funds rate is the interest on overnight banks. On Thursday, it traded below low as 10.375 during the day.

essentially no change in the bond and after the numbers were released," it's down about a billion more than the predicted, why didn't the market react? possible explantion. They also released You did see one statistic that credit up pretty well." commercial paper, or corporate IOUs, in the week ending Sept. 22, bringing $227,127 billion. In the previous week, it number was moderately bearish," Harris terribly worrisome." report on bank loans was bullish, he said. Reserve Bank of New York reported industrial loans at major New York $1,129 billion, compared to a gain of week earlier.

NESTLE: Boycott Ended Key Money supply Fed target 4 8 1983 1984 Dec. Feb. Apr. June Source: Federal Reserve Board. DISNEY: Larger Stake Business in Brief Congress and in the Pentagon over whether Sgt.

York works. Several Army officials testified at the Senate hearings this week that while the system has had problems, they are being worked out. The favorable testimony has been overshadowed, however, by public attention on Weinberger's recent statements and to a Sept. 10 report on the weapon by the Pentagon's inspector general, who audits military procurements. The report says that misleading test results for Sgt.

York were submitted by the Army to higher officials and that the gun has fallen below specifications for reliability, accuracy, reaction time and ability to function against electronic jamming. Heilig insisted that Weinberger's act of freezing funds and publicly announcing possible cancellation is merely an attempt "to satisfy the unbelievers" and that he is confident that Weinberger at least will protect the Army's option to buy additional guns in several weeks. to those that triggered the boycott, he said. A spokesman for Abbott Laboratories said he had not heard of the committee's charges and so could not comment. No spokespersons for American Home Products and Bristol-Myers could be reached for comment.

Dr. Carl L. Angst, Nestle executive vice president, said that in two cases Nestle's market share fell 40 percentage points in two years because of competition. He declined to name the companies involved. main said that "no banking legislation will be finalized by Congress this week" before adjournment.

As a result, they said, legislation "addressing the competitive and regulatory framework of the financial system" will be the first priority of Congress in 1985. A House committee assailed the Continental rescue. House Banking Committee Chairman Fernand St Germain dismissed as "absurd" an assertion by federal banking regulators that more than 100 small banks would have gone under if Continental Illinois had been allowed to fail. The panel submitted a report contending that only six banks would have failed and 22 others would have been put at substantial risk, compared to federal regulators' assertions of 66 potential failures and 113 other banks at substantial risk. As expected, Bieber was elected to Chrysler's board.

The United Auto Workers president replaces retired union leader Douglas Fraser. Owen Bieber's election followed a prolonged debate between Chrysler and the UAW over whether the union had a right to continued representation on the board after Fraser's decision to step down earlier this year. MGM Grand Hotels, Las Vegas, said it will remain "neutral" toward the tender offer announced Oct. 1 by Tracinda Corp. Communications Technology, Los Angeles, was acquired by Acme-Cleveland, Cleveland, for $33 million in cash Seattle-based Pay'n Save said it will close its 12 Seattle-area Sportswest stores and has sold the rights to 10 of them to United Merchandising, Los Angeles.

560 550 540 530 520 510 maaaa 500 .490 Aug. Oct. Disney stock changed hands Thursday, making it the most active issue on the New York Stock Exchange. The price of the shares closed at $55,125, down $4,125. The Basses acquired nearly 3 million shares during the day, bringing their total holdings to 8.4 million shares, or 24.83.

Sources have estimated that the Basses gained their initial 5.5 stake of Disney for a mere $6 to $10 per share, because the Bass group invested less than $30 million in cash to acquire Arvida the Florida-based land development company acquired by Disney last June. The Basses' total cash investment in Disney stock now exceeds $400 million, analysts said. The Basses did not begin buying Disney shares, on the open market until last month. In the past week, however, the Texas family has bought several large blocks, including one reportedly held by Ivan Boesky, a stock speculator. KAUFMAN Continued from Page 1 nounced, Kaufman Broad officials said it provides for payments to the owners of Capitol Life, coupled with an infusion of new capital.

Kaufman Broad has been conducting a "preliminary" examination of Capitol Life for the last 60 days, the company said, and the three-week exclusive option agreement will allow for a "more extensive and detailed" review of its operations. The company said officials of Kaufman Broad have already met the commissioner and deputy commissioner of insurance of Colorado, to whom Capitol Life has submitted a "plan of action" promising, among other things, to reduce sales and sell common stock and real estate and invest the proceeds in interest-bearing economic growth "For the the latest drop an economist at "This latest that before long, operations and down," he said. The federal loans between 11, falling as "There was market before Harris noted. "If consensus "I have one credit statistics. demand is holding Outstanding rose $677 million the total to rose $2,216 billion.

"The paper said. "But it's not The latest The Federal commercial and City banks fell $359 million a Continued from Page 1 the code but advised that "much remains to be done." Johnson accused three companies of trying to "steal" Nestle's share of the infant-formula market in some underdeveloped nations. He said Abbott Laboratories of North Chicago, 111., American Home Products Corp. and Bristol-Myers both of New York, all had pledged to implement the WHO code as Nestle had done. Now, however, the firms are practicing marketing techniques similar Betty Crocker Magazine.

It changed its name to Cuisine in 1978 and in 1982 sought protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. CBS acquired it days later from its Santa Barbara-based publisher, Forum Communications for $2.7 million. After December, Cuisine subscribers will receive Gourmet as a substitute. Phibro Salomon said two top officers resigned.

New York-based Phibro Salomon, a large international investment and commodities company, gave no reason for the resignations of Co -Chairman David Tendler and President Hal Beretz, but industry sources traced the resignations to an internal power struggle dating from the 1981 merger of Philip Bros, and Salomon Bros. In what the company said was an unrelated move that had been planned for months, 65 New York employees were fired and another 185 employees worldwide will be laid off as part of a reorganization. Air bags will be offered to fleet buyers of some models. Air bag crash-protection devices will be offered as options on 1985 Ford Tempo and Mercury Topaz automobiles sold to fleet buyers, Ford Motor Co. said.

The company earlier this year agreed to produce 5,000 Tempos equipped with air bags on the driver's side for the federal General Services Administration. Those cars will be delivered in 1984. Banking legislation is dead for this year. Far-ranging banking legislation, presumed dead last month, was buried by the chairmen of key congressional committees. In a joint statement, Sen.

Jake Garn (R-Utah) and Rep. Fernand St Ger HRT: Offer Continued from Page 1 McCrory, however, agreed to buy out Schottenstein last spring for $4 million in a deal that is scheduled to close in January. Schottenstein has put down $1 million so far in the deal, Green said. Green said he has held discussions with other minority shareholders concerning the McCrory merger plan. In addition to Smith Vasiliou, which bought its shares from First National Bank of Chicago, HRT shareholders include Manufacturers Hanover National Bank, Bank of California and City National Bank, Green said.

ON: Talks End Continued from Page 1 a general decline in the subscription-television market brought about by low-cost videocassette movie rentals and the proliferation of cable operations, among other things. Today, ON-TV, which offers movies, sports events, rock concerts, old TV series and some original programming, has about 200,000 subscribers. SelecTV, which is an all-movie service, has about 80,000 subscribers. Hartney said Oak Industries, which intends to continue to operate the Los Angeles system, "is not now involved in any other negotiations but we would certainly consider any offer to buy it." For the Record Security Pacific Corp. expects third-quarter earnings to be "moderately" above the $67.4 million it earned in last year's third quarter.

The Times reported Thursday that Los Angeles -based Security Pacific's earnings would be reduced because of an increase in its loan-loss reserves. However, that reduction will be offset by an extraordinary gain from the sale of the firm's headquarters building. Continued from Page 1 to unseat Miller and to install a new management team of former Paramount Pictures President Michael D. Eisner and former Warner Bros. Vice Chairman Frank Wells as chairman and president, respectively.

Gold scoffed at the critics who contend that the Roy Disney group has suffered a defeat. "Nonsense. Roy had absolutely no control in the company for 15 years. He's now gone and gotten it (redirected) in the entertainment industry" and prevailed in the choice of the Eisner-Wells team, he said. Gold, 41, manages an investment portfolio for the Roy E.

Disney family and also serves as president and chief executive of their Bur-bank-based company, Shamrock Holdings Inc. Gold, when asked to respond to speculation that the Basses might spin off the studio to Roy Disney, said: "There has been no discussion, no talk whatsoever as to that issue." Paid $61 a Share In his prepared statement, Bass said: "The acquisition on our part represents a total commitment to the new management and to the long-term development of the assets of the company in the best interests of all of the stockholders." The Basses paid $61 a share to purchase the 2.6 million shares held by Jacobs, who had recently threatened to seek control of the company. The usually accessible Jacobs could not be reached for comment Thursday, but previous disclosures to the Securities and Exchange Commission indicate that he profited by the sale. Despite his profits, Jacobs did not improve his stature on Wall Street, where skeptics have questioned his ability to raise enough money to launch a Disney takeover. Lee Isgur, an analyst with Paine Webber Mitchell Hutchins said the Basses "allowed Irwin to save face.

They were willing to give a little bit more money than he deserved." More than 4.2 million shares of President Reagan signed a compromise airline bill. The legislation deals with issues growing out of the demise of the Civil Aeronautics Board, which will cease to exist as of Dec. 31. The bill guarantees that airlines will still have to provide no-smoking sections, pay for lost baggage and compensate passengers bumped from overbooked flights. The CAB is in charge of enforcing those rules, and it was feared that the rules would be eliminated once the agency went out of business.

Smart Final and Casino signed a merger agreement. Under the definitive agreement, Casino USA will pay $123.50 per share for all the remaining Class A and shares of Smart Final Iris Corp. (formerly Thriftimart Inc.) through a tender offer. The tender offer is expected to begin Tuesday. Casino now owns about 10 of Smart Final's Class A stock and 87 of the Class B.

Casino is a Santa Monica-based subsidiary of Etablissements Economiques du Casino, Guichard-Perrachon et a French holding company. General Host confirmed the sale of its frozen -foods unit. The Stamford, Conn. -based company confirmed the sale of Van de Kamp's Frozen Foods division to Pillsbury Co. for about $100 million in cash.

General Host Chairman Harris J. Ashton made the sale announcement before the New York Society of Security Analysts. The sale must receive government clearance before its scheduled closing Nov. 5. CBS will fold Cuisine magazine after December.

Cuisine, a food magazine with a circulation of 687,000, was first published in 1972 as Sphere, the.