The Los Angeles Times from Los Angeles, California on December 12, 1987 · 1
Get access to this page with a Free Trial

A Publisher Extra Newspaper

The Los Angeles Times from Los Angeles, California · 1

Los Angeles, California
Issue Date:
Saturday, December 12, 1987
Start Free Trial

mm Circulation: 1,127,607 Daily1,411,000 Sunday Saturday, December 12, 1987 CCtt 134 Pages Copyright 1987The Time Mirror Company Daily 25$ Wall St. Looks Back Speculators' WildRide Led to Crash By MICHAEL A. HILTZIK, Times Staff Writer NEW YORK-Late in the afternoon of Oct 19, with the stock market cataclysm raging about him, Stanley Druckenmiller began to have trouble remembering telephone numbers. It was a fitting end to the long day. For more than six hours the portfolio manager for Dreyfus Corp. had watched the torrential selling throughout the financial markets stretch out of recognizable shape the numerals and mathematics he had spent his professional life comprehending. Things moved faster and farther than anyone on Wall Street had ever seen. Just as you absorbed the shock of seeing the Dow Jones industrial average down 300 points, it was already down 400, then 508. "I must be more shook than I thought," he said to himself, struggling to recall the numbers of brokers and stock analysts he customarily called three or four times a day. Still Shaking Even today, two months after the greatest crash in Wall Street history, the financial markets are still shaking. The stock market has yet to regain composure after the one-day loss of 508 points, or 22.6, in the Dow Jones average. Market shifts are sometimes subtle, but to traders, investors and executives, Oct. 19 marked a transition to a bear market as dramatic as anyone could imagine. Stocks have continued to slump and Wall Street has embarked on a round of painful layoffs, thousands of workers at a time. It is tempting to regard the debacle of Oct. 19 as a one-day event. That would be misleading. For the crash, which struck not only the stock market but related futures and. options markets, could not have happened without the wave of euphoric speculative buying preceding it all year, capping a historic bull market that began in August, 1982. Many Tiny Panics What appeared to be a solitary headlong panic Oct. 19 was a composite of millions of tiny panicssplit-second decisions made by millions of traders and investors provoked to dump their shares at any price by the sight of something fearsome building in the markets or unfolding that day. For some it was the realization early on the morning of Black Monday that a great speculative bubble had been punctured. Some feared the spread of panic would destroy their own wealth unless they reached the exits first. Still others, horrified by mechanical breakdowns appearing in exchanges flooded by orders, feared the very system would not survive the day. On normal days even heavy selling eventually attracts buyers who believe prices have fallen to bargain levels. That is an equilibrium-producing condition so reliable it is the closest thing to a rule of the market. But as one prominent trader put it some weeks later: "There were no rules that day." Please see CRASH, Page 30 Jascha Heifetz, 86, Hailed as Greatest Violinist, Dies X Associated Press Jascha Heifetz in 1950. SKwTss rnrn : -rx- i I in ww,cur . K I Iff cl iff v3:i li.vr. . . . An Israeli soldier an instant after he fired his rifle in the direction of Palestinian demonstrators $2.47-BiIlion Dalkon Shield Fund Ordered By JONATHAN PETERSON, Times Staff Writer The company that marketed Dalkon Shield contraceptive devices must set aside $2.47 billion to pay off thousands of remaining injury claims, a federal judge said Friday in a two-minute announcement that could settle a lengthy and bitter legal wrangle dating back to the product's use in the early 1970s. The finding, which comes more than two years after A. H. Robins Co. filed for Chapter 11 bankruptcy protection under a torrent of lawsuits, left unclear when 200,000 women claimants might be compensated. "It's not over yet," said Bradley Post, an attorney representing the women. "I would be very surprised if it wasn't another year or more before any money flows out of the trust." Legal Nightmare Claims by Dalkon Shield users of pelvic inflammation and other ailments have turned into a legal nightmare for Robins, a family-controlled company based in Richmond, Va., that began as a single drugstore in the 1860s. Just to process the demands for money, the U.S. District Court has hired an extra staff of about 70 clerical, statistical and scientific workers, who take up more than two floors of a downtown Richmond office building. Robins has already paid $520 million to resolve 9,400 cases. In July, the company revealed plans for a $1.75-billion fund to settle the claims as part of its proposed merger with Rorer Group Inc., a large pharmaceutical company based in Fort Washington, Pa. The amount set Friday by U.S. District Judge Robert R. Merhige Jr. was greater than that but far less than the $7.2 billion demanded Please see DALKON, Page 34 ByLOISTIMNICK, Times Staff Writer Jascha Heifetz, regarded as the greatest violin virtuoso since Paga-nini, died Thursday night at Cedars-Sinai Medical Center, several weeks after undergoing brain surgery after a fall at his Beverly Hills home. He was 86. The intensely private musician had been hospitalized since Oct. 16 under the name Jim Hoyl, an alias he used as a composer of popular songs. A Cedars spokesman said the family had requested that no details of his illness be released. Other sources said he died of complications arising from two separate falls and subsequent neurosurgery to remove two blood clots. Heifetz was a magnetic performer who set the standard for technical excellence, recorded extensively and continued to teach Please see HEIFETZ, Page 34 Panel OKs Stringent Ride-Sharing Program Smog District Strategy Affects 1.5 Million Commuters, Could Cut Rush-Hour Traffic 25 By LARRY B. STAMMER, Times Staff Writer The most comprehensive ride-sharing program ever proposed for Southern California, affecting 8,000 businesses and 1.5 million commuters, was unanimously approved Friday by the South Coast Air Quality Management District board. Morning rush-hour traffic could be cut by as much as 25 in the four-county South Coast Air Basin under terms of the ride-sharing regulation, which is the first in a series of new clean-air strategies to roll back air pollution in the nation's smoggiest urban area. Emissions of carbon monoxide Pennzoil OKs $3-BillionPlan in Texaco Fight By DEBRA WHITEFIELD, Times Staff Writer NEW YORK-Efforts to settle the mammoth legal dispute between oil giants Texaco Inc. and Pennzoil Co. . took a large step forward Friday as Pennzoil and a committee representing Texaco shareholders put aside their differ- . ences and agreed to jointly propose a$3-billion settlement. Other details of the proposed agreement are still being worked out. But Pennzoil said it expects to file a joint plan with the bankruptcy court next Friday, at the earliest, proposing to settle for "not less than $3 billion in cash." The agreement between Pennzoil and the shareholders' committeein which Texaco's largest shareholder, Carl C. Icahn, played a major role was unexpected, but some parties active in the court-directed Chapter 11 reorganization of Texaco now predict that the two companies will finally negotiate a settlement after almost three years of trying, and perhaps as early as this weekend. "We certainly regard what we've heard as hopeful," said Jef- Please see PENNZOIL, Page 22 INSIDE TODAY'S TIMES Aatrology VIEW 6 Bridg VIEW 6 Comic VIEW 7 Croaiword CLASSIFIED 30 Path PARTI 34 Editorial METRO 8 Enf rtalnnwnt CALENDAR LltTi METRO 9 tUllglon METRO 6,7 TV-Radio CALENDAR 11,12 WEATHER: Moitly elaar, windy and coldw through Sunday. Clvlo Cantor lowhigh today: 8170 Details: Part II, Pago B. and the two main ingredients of photochemical smog nitrogen oxides and hydrocarbons would see modest reductions. Still, those reductions were viewed Friday by state and federal regulators as essential if progress is to be made in cleaning up the air. The vote, after a day of testimony, was in marked contrast to the board's defeat of a less-stringent ride-sharing program two years ago and signaled what many said is the beginning of major changes in how automobile-conscious Southern Californians get to work. "I think this is going to signal the beginning in a change in life styles," AQMD board member Marvin Braude, a Los Angeles city councilman, said after the vote. "To me, we're taking a first and very important major step in more directly involving people in an individual way in solutions to clean up our air," said AQMD Board Chairman Norton Younglove, a Riverside County supervisor. Please see PLAN, Page 26 Pope Approves Beatification of Father Serra By WILLIAM D. MONTALBANO and MARK I.PINSKY, Times Staff Writers VATICAN CITY-Pope John Paul II on Friday approved the beatification of 18th-century missionary Father Junipero Serra, advancing the controversial "apostle .of California" one step closer to sainthood. The papal action endorsed : a formal finding last week by Vatican investigators that Serra's intercession was responsible for curing an American nun of a serious neurological disorder. No date has been set for Serra's beatification ceremony, but members of his Franciscan order here and a diocesan spokesman in Monterey said they expected that the Please see SERRA, Page 35 Senate Passes Spending Bill The Senate voted to provide an additional $9 million in aid for the Contras as it passed a $600-billion spending bill. Page 2. Seoul Warns 'Radicals' South Korea, seeking to ensure a fair presidential election, said it would arrest and punish "radicals" who commit violence. Page 1 7. Wholesale Prices Unchanged Wholesale prices held steady in November as declines in energy prices offset higher food prices, the government reported. Business. Mm Associated Press at the Balata camp in Nablus. 3 Killed in 3rd Day of Violence on West Bank By DAN FISHER, Times Staff Writer NABLUS, Israeli-occupied West Bank Israeli troops shot and killed at least three Palestinians and wounded at least 10 others Friday in the third straight day of the worst violence in years in the occupied territories. Among the victims were an 11-year-old boy, a 17-year-old girl and a woman in her 50s, all killed when troops opened fire to quell a disturbance after religious services at the Balata refugee camp in Nablus. Army sources confirmed the death toll and said seven additional Palestinians were wounded at the camp. But reporters saw eight injured Palestinian youths at the Al Ittihad hospital, and doctors said another was in the intensive-care section with critical wounds. Boy, 14, Repotted Killed Palestinian sources said another boy, age 14, was killed at the camp, and that uncounted additional wounded were inside. Under a tight army curfew, the reporters were prevented from entering the camp to investigate the reports. Friday's toll, including three Palestinians wounded by army gunfire in a separate incident in the occupied Gaza Strip, brought the number of Arab casualties from three days of unrest in the West Bank and Gaza Strip to at least six dead and more than 50 wounded. Friday's clashes coincided with a report in the authoritative newspaper Haaretz that the military command had decided to take "strong-arm measures more severe than in the past" at the Balata camp, which is considered a hotbed of Palestinian nationalism. The newspaper quoted unidentified Israeli security sources as saying that troops had tried to Please see WEST BANK, Page 14 Confront Indifference, Hostility Soviet War Wounded Find Little Joy in Homecoming By WILLIAM TUOHY, Times Staff Writer MOSCOW-Disabled Soviet veterans of the war in Afghanistan are returning home to face wrenching readjustment to a future marked by hardships and society's indifference or even hostility for their sacrifices. Such is the view presented in a sensitive description of their plight which appeared recently in the weekly newspaper Moscow News under the headline, "Afghanistan Veterans! Society Owes Them." The article deals with wounded soldiers in a military sanitorium in Saki, a resort town in the Crimea on the Black Sea, and the problems facing the men maimed in Afghanistan since the Soviet government sent in troops in December, 1979. Western sources in Kabul, the Afghan capital, estimate that of the CutinlCBM Forces Seen in 6 Months Ebullient Reagan Says 'Star Wars' Obstacle Cleared By JACK NELSON, Times Washington Bureau Chief WASHINGTON-Top Administration officials, reviewing progress made at the U.S.-Soviet summit that ended here Thursday, expressed optimism Friday that the two superpowers will agree within the next six months on a treaty slashing long-range nuclear missile arsenals in half. These officials, who have participated at the highest levels in the Geneva arms control negotiations as well as the summit, say that while difficult problems remain, the Washington negotiations brought the two sides into accord on the basic form of a strategic arms reduction treaty. And although the complexities of the issues have made others skeptical about how quickly final agreement can be reached, the officials said chances now appear good that a treaty can be ready for signing at the fourth summit meeting between President Reagan and Soviet leader Mikhail S. Gorbachev-expected next May or June in Moscow. 3 Types Covered The treaty would cover land-based intercontinental ballistic missiles (ICBMs), submarine-launched ballistic missiles and bombers carrying cruise missiles. Reagan, clearly savoring his .summit success, insisted Friday that the Soviet Union is no longer using its unhappiness with his "Star Wars" anti-missile program to obstruct progress toward a strategic arms reduction treaty or START, as it is often called. Declaring that the dispute over "Star Wars" formally known as the Strategic Defense Initiative-was not simply sidestepped but "eliminated," the President declared, "I don't think there's any impediment there at all." Other Administration officials, including Secretary of State NATO urges quick Senate approval of INF treaty. Page 5. George P. Shultz, cautioned that as they understand the accommodation between the two sides on "Star Wars" the Soviets remain free to raise the issue again as an obstacle to a START accord. Yet that view did nothing to dampen the euphoria that prevailed at the White House on the morning after the superpower summit. Shortly after he arrived for work in the Oval Office, sources said, the President received confidential polling data showing that his approval rating, which sank sharply a year ago during the Iran-Contra affair, had risen to 61 . In addition, Reagan was applauded enthusiastically by leaders in Congress during an early morning White House meeting that stood in stark contrast to the many bitter confrontations of recent Please see MISSILES, Page 10 115,000 or so Soviet troops in Afghanistan, about 50 are wounded everyday. According to the reporter, Viktor Turshatov, when severely wounded men arrive at the hospital they are told bluntly: "You have fulfilled your duty and sustained serious wounds. Many of you have lost legs or arms. Life is going to be very difficult for you. But you must summon your courage, acknowledge the terrible truth and remember that you are citizens of your country like anybody else, and the makers of your own destiny." Most of the men arriving at the sanitorium have already had many months of hospital treatment. They are at Saki to rest and recover, and most will have to go on to other Please see SOVIET, Page 12

Clipped articles people have found on this page

Get access to

  • The largest online newspaper archive
  • 22,300 newspapers from the 1700s–2000s
  • Millions of additional pages added every month

Publisher Extra® Newspapers

  • Exclusive licensed content from premium publishers like the The Los Angeles Times
  • Archives through last month
  • Continually updated

Try it free