Tucson Citizen from Tucson, Arizona • 21

Markets Stocks of local interest Yesterday's close Dow Jones dose 226571 2267 105644 1407 18267 071 66553 877 Yesterday's dose NASDAQ Bd Asked NYSE: Close Chance 30 Industrials 20 Transportation 1 5 Utilities 65 Stocks ASed-Signal GM-ttughes IBM Magma Pheips Dodge Pinnacle West SW Gas Tucson Electric Unchanged 608 Volume Shares Issues traded Composite 191873560 1959 28995 284 NASDAQ 40253 273 Gold $3839002' Copper $1474 lb $0019 I Down I Prices furreshed by Meml Lynch Pierce Fenner end Smith Inc Briefcase Stocks2 Mutual funds3 Friday March 3 1989 Tucson Citizen BUSINESS EDITOR JUDY LEFTON 573-4607 Channel 18 is changing cautiously By JUDY LEFTON Citizen Business Editor Phelps Dodge CoJp picks new chairman PHOENIX Douglas Yearley a Phelps Dodge Corp vice president will replace Robert Durham as chairman and chief executive of North largest copper producer Durham said yesterday The change will take place after the May 3 annual meeting Durham said Durham will retire June 30 Also Leo'nard Judd 49 will become president and chief operating officer lish its own identity (The letters do not stand for anything) A new logo and slogan on also will debut that day The from shows in the early evening to adult shows as the evening progresses will be improved by delaying the nightly movie by one hour until 8 pm he said Within five years Gear Channel will decide if it is economically feasible to provide five-minute news breaks and eventually half-hour news shows Channel 18 will become a top advertiser in print and radio with an advertising budget in excess of $100000 will know we are he said The station will put more emphasis on movies offering a different theme each week and a prime-time movie every night Some new adult programs will add variety to what had been a family-oriented program schedule Jollie said Two of the shows are Sheep and face it not every couple in their 40s wants to watch Disney movies all Jollie said But many of the programs the church bought and aired especially the popular situation comedies such as and will be retained Jollie said All 34 current employees will be retained too Jollie said although a few people were laid off when Gear Channel first took over and the programming and promotions departments were com- bined More layoffs will not be necessary because costs are already under control Jollie said way the station was bought took care of he said Jollie was referring to the reduced price Gear Channel paid for the station $224 million plus about $4 million to $6 million in contract liabilities The price was reduced because the diocese which CHANNEL continued5B New owner: Gear Channel Television of Houston a subsidiary of Gear Channel Communications which owns 16 radio stations and one other television station WPMI-TV near Mobile Ala The company plans to own six more television stations by the end of the year New general manager: Mark Jollie 31 formerly general manager at KWKT-TV an independent station in Waco Texas New call letters: KTTU as of April 10 New commitment to the community: nice to run public service announcements but not said Jolliei want to do things that will help the community Once I get everything in gear I hope to be behind this desk only one hour per The new general manager of KDTU-TV Channel 18 wants to change the station without turning off established viewers have a following and we want to forget said General Manager Mark Jollie on the other hand we are treating it as a sign-on Clear Channel Television completed its purchase of the station in January from the Roman Catholic Diocese of Tucson In a recent interview Jollie who started working at the station two weeks ago said the following changes are planned: Joie On April 10 the call letters KDTU will be changed to KTTU to help the new owner Clear Channel Television estab Eastern resume The Associated Press much all said National Media- tion Board spokesman David Bush- WASHINGTON Eastern Air- nell expect it will go right up to lines and Machinists union negotia- the deadline if tors bargained today over a new chief operating officer contract as President Bush called in in Miami Joe Leonard said ma-his labor and transportation secre- chinists were given a paid holiday taries to discuss whether to prevent and told to return to work for shifts a threatened midnight strike starting at 12:01 am EST tomor-Eastem meanwhile sent its ma- row after the strike deadline chinists home this morning citing is not a lockout and is not amounts ofi vandal- an attempt to affect the and saying the action was in- ing" Leonard said at anews confer-tended prevent sabotage -inthe ence He said management person-hours beforefhe strike deadline A tael would handle maintenance and federal court order allowed the ac- other ground duties for the rest of tion 1 the day Federal mediators who were Eastern pilots rejecting an unmeeting with the negotiators at an usual videotaped offer by airline undisclosed Washington location owner Frank Lorenzo in separate said the Eastern offer yesterday contract negotiations said yester-brought hope of a settlement in the day they would refuse to cross ma-1 7-month-old dispute likely will meet pretty EASTERN continued3B Workers inspect fence installed Money-market managers predict rise in interest rates Pinnacle West says it lost $125 million PHOENIX Pinnacle' West Capital Corp lost $1257 million in the fourth quarter last year the company reported yesterday Every subsidiary of Pinnacle but Arizona Public Service Co the largest utility lost money in 1988 Pinnacle West Chairman Keith Turley said yesterday MeraBank largest thrift lost $209 million last year and was primarily responsible for limiting Pinnacle yehr-end profit to $42 million he said The losses by other subsidiaries fueled concerns that Pinnacle West might use APS earnings to strengthen its non-regulated companies Turley has denied such criticism Sun City builder gets $24000 fine PHOENIX A Sun City construction company has been fined $24000 for safety violations that resulted in in- juries to eight men at the New Waddell Dam construction! site Feb 1 The fines ordered yesterday against Ball Ball and Bro-samer Inc by the state Industrial Commission wererthe largest penalties ever assessed by the state against a single employer for an industrial violation said Tim Arbo-gast director of the state Division of Occupational Safety and Health Compiled by Rowena Wildin from local and wire reports Minding your and taxes On Monday Sylvia Porter lists eight areas on your tax return that require special care because they are most likely to trigger auditsi On the move Dave Johnson vice president and district sales manager at Great American First Savings Bank has been appointed to the board of directors of the United Cerebral Palsy of Southern Arizona organza- Johnson tion Lbn Ann Schroeder recently joined th'e Metropolitan Tucson Convention Visitors Bureau as director of sales Previously Schroeder was director of sales and marketing at Westward Look Re-' sort Tucson-southdrn Arl-' zona chapter of the Institute of Real Estate Management has Elected new officers: Pan-lette Woman of Amen As- sodates? 'president Scott' Townsend of Southwest Realty Investors vice president Boots Jang of JC Harry 'Associates secretary David Sirota Life Investors Realty Co treasurer union talks savings and loan savings account paying only 5 or 5y4 he asks The maintenance charges alone (given a small deposit) could service-charge the savings out of existence he says Donoghue says that if everyone took all their savings out of the banks (including funds stashed in bank money-market accounts) and put them into money-market mutual funds earn $120 million more a day a helluva lot of lost he says And no one has ever lost money in a money-market fund as presently constituted he says Dan Dorfman la a raportar and columnist who specializes In the stock market Hla column appears each Friday In the Tucson Citizen -i Associated Press in anticipation of strike oriented funds down to 28 days seldom see such low says Donoghue a profound statement about interest rates And if the managers are right you have to be a genius to know the stock market is a dumb place to Donoghue publishes the semimonthly Marketletter Based in Holliston Mass the 9-year-old letter has about 15000 subscribers Gearly Donoghue has an axe to grind in pitching money-market mutual funds But he argues that such funds are especially attractive right now given their high yields (an average of almost 89 percent) and the investment hazards for the stock market from further rate increases His top pick for consistently high money-market yields: The Flex- Bad news folks Interest rates are going even higher At least the bet of the managers of almost $280 billion worth of money-market mutual funds So that means ekeing out the highest yields not swinging for the fences in the stock market could be the way to go Or as summed up by William Donoghue 47 the dogged tracker of the money-market mutual fund industry: is in stocks are Why? Because Donoghue is convinced rates will continue to move higher One unmistakable sign: Money-market mutual funds especially those catering to institutional investors have become extremely short term-oriented in their investment strategy The reason as Donoghue ex- fund Money Market Fund in Dublin Ohio The current return is 94 percent Minimum investment: $2500 However if you prefer a big family of mutual funds where you can switch quickly into different investments Donoghue suggests either Vanguard Money Market Reserves Valley Forge Pa or the Kemper Money Market Fund Chicago yield is 94 percent while return is 92 percent The minimum investment for each is $1000 For parents who want to get their children saving 1990s-style Twentieth Century Cash Reserves Kansas City Mo is top choice You can invest as little as 1 and the yield is 85 percent you can get money market returns on a 1 investment why introduce your child to a bank or ii I -I-Til IIIIIIT- at Eastern Airlines facility i cj Dan Dorfman tLL plains it: They want to lock in the current high yields If they thought rates were going lower favor longer-term maturities By going short term signaling that they expect to roll over their money into even higher-yielding securities says Donoghue Typically maturity for money-market fund investments run? 30 to 50 days The current average maturity is 31 days with institutionally criminate The Internal Revenue Service yesterday issued 220 pages of regulations explaining to employers how they could comply with the law which is known as Section 89 The law was enacted as part of the big tax overhaul of 1986 and amended as recently as last November Although the law took effect Jan 1 the IRS laid employers need take no action to comply with it before July 1 Ini addition a good-faith effort to comply will be treated by the IRS as having satisfied the law at least until next Jan 1 Business representatives said the regulations do nothing to make the law more attractive 89 represents a major attack on our employee benefit said Karen Berg humanre- SOFTER continued3B Push is on to kill part of new tax law The Associated Press WASHINGTON The IRS is temporarily softening the sting of a new law affecting the group health insurance of many American workers but opponents say the only solution is repeal A bill to kill the law which requires businesses to demonstrate that their health plans do not discriminate in favor of upper-income employees has been signed by 183 members of the House Rep John LaFalce D-NY chairman of the House Small Business Committee says he expects a majority of the House 218" members to have signed his repeal bill within a few weeks One employee-benefits consultant estimates that almost half the companies with more than 1000 workers cannot say with certainty that their plans doot dis Syufy Enterprl 3600 people will be the largest in Arizona the -company said Construction should be com- -pleted by October this year The theater was de- -signed by San Francisco architect Vincent Raney MOVIES GALORE San Francisco-based Syufy Enterprises has released the architectural rendering of its new 1 2-screen movie house near the intersection of Interstate 10 and West Grant Road The theater complex which will seat up to I I.