The Los Angeles Times from Los Angeles, California • 57

USINESS Cos Angeles (Timcs Friday February 25 1983 CCtPa rt IV II) I) Candidates for Key State Regulatory Posts Stock Market Records Recovery Hopes Ignite Shattered as Broad Rally 3 From LA Nominated to State Posts I 1Q4'' James A Edmonds Jr a semi-retired mortage i' A banker with Long Beach-based City Suburban Mortgage Co i i 1 has been nominated as it Real Estate 7'11114 Cr commissioner i oiol WWNPRWASSMON07 4: I Franklin Tom a partner I 1 Avoltsii wit- in the Los Angeles law P' -7-41- 't 1 't "AA -0 46 firm of Parker Milliken A4: A '-'1k 0 r'0 Clark O'Hara has been nominated as Corporations tizroliksiorl commissioner ti --e: 0 kigie James A Edmonds Jr a semi-retired mortage banker with Long Beach-based City Suburban Mortgage Co has been nominated as Real Estate commissioner I 041: Franklin Tom a partner in the Los Angeles law firm of Parker Milliken Clark O'Hara has been nominated as Corporations commissioner for the over-the-counter market closed at 26231 up 232 Analysts attributed the broad surge to optimism about an economic recovery that they hoped would be fueled by further cuts in interest rates and falling oil prices Paul A Volcker chairman of the Federal Reserve Board gave strength to those hopes as he again said he expected further declines in interest rates As if in confirmation of his forecast the federal funds rate the interest on short-term loans between banks traded at 8375 down from 8675 for most of Wednesday Federal funds had slipped as low as 775 late Wednesday but that rate often is subjected to wide swings on Wednesdays the day banks settle reserve accounts they must maintain with the Federal Reserve System Most bond prices rose In the secondary market for Treasury bonds intermediate maturities rose 632 point and long-term issues were up 1032 point Short-term governments advanced 432 point according to the Markets at a Glance Thursday Feb 24 1983 11011-frla DOW 30 NYSE AMEX NASDAQ WILSHIRE L-j L-1 Christy Mary Campbell a banker with Los Angeles-based First Interstate Bank has been nominated as director of Economic and Business Development Earnings Roundup Christy Mary Campbell a banker with Los Angeles-based First Interstate Bank has been nominated as director of Economic arid Business Development wk LIA From Times Wire Services NEW stock market records were shattered in a broad rally Thursday as the Dow Jones industrial average swept with ease past the 1100 mark to a historic high The New York Stock Exchange's composite index rose 151 to a record 8625 as winners outdistanced losers by a 2-1 margin on the Big Board Standard Poor's 400 industrials climbed 332 to an all-time high of 16828 and 500-stock composite index gained 281 for a record close of 14960 The Dow Jones industrials extending a 1654-point gain from Wednesday soared 2487 points to close at a historic high of 112181 That continued a dramatic 6-month climb from the 2-year low of 77692 reached last Aug 12 Other key indicators also scored impressive if not record advances The Wilshire index of 5000 equities closed at 1560885 up 25408 its highest close in the 12 months A year ago the index stood at 1171713 The American Stock Exchange's market-value index was up 475 at 37964 NASDAQ's composite index CAB Suspends Special Fares From Canada By PENNY PAGANO Times Staff Writer Civil Aeronautics Board on Thursday suspended special low air fares to the United States offered by Air Canada that were scheduled to take effect today Since Jan 21 when the special fares went on sale Air Canada said about 56000 tickets had been sold including 17000 to California-bound travelers Canada had agreed to allow six US airlines to match these fares but needed the board's approval before instituting its fares for US routes While lower fares would benefit consumers the board said its order reflected larger aviation policy disagreements between the two countries including a "continuing reluctance" by Canadian aviation authorities to allow US airlines to compete equally with Canadian airlines on other routes "The government of Canada has repeatedly rejected innovative low-fare filings by US carriers" the aeronautics board said Wouldn't Approve Requests The board cited a continuing refusal by Canada to approve requests by Continental Air Lines to match fares now offered by Canadian Pacific Air Lines on routes to the South Pacific via Los Angeles President Reagan declined to stop the order before the Thursday midnight deadline a White House spokesman said "We're disappointed at the outcome and we're studying the order" said Air Canada spokesman David Pember "We're going to try to minimize disruption" Proposed round-trip fares ranged from $79 for a trip of up to 500 miles to $209 to a destination of more than 2300 miles The board said it will continue to press for greater cooperation between the two countries to provide the public with low fares "In the interim we cannot allow Canadian carriers to dictate fare levels unilaterally in any major market" it said Disney Names Watson Chairman Miller Chief 1 -f'04: )11 T-1) 00- i Al 21' 1 Lawrence Taggart senior vice president at San Diego-based Great American Federal Savings is reportedly the governor's choice for Savings and Loan commissioner Lawrence Taggart senior vice president at San Diego-based Great American Federal Savings is reportedly the governor's choice for Savings and Loan commissioner By TOM FURLONG Times Staff Writer investment firm of Salomon Bros Inc The movement of a point is equivalent to a change of $IO in the price of a bond with a $1000 face value In corporate trading industrials and utilities gained Vs point in moderate activity Among tax-exempt municipal bonds general obligations and dollar bonds were unchanged in light trading Yields on 3-month Treasury bills fell 2 basis points to 792 A basis point is one-hundredth of a percentage point Six-month bills fell 2 basis points to 8 Big Board volume rose to 11322 million shares from 8410 million Wednesday making it the busiest trading day since 12729 million shares changed hands on Jan 7 Much of the volume was in large-block trades: 2044 blocks of 10000 or more shares changed hands compared to 1394 on Wednesday Nationwide turnover in NYSE-listed issues including trades in those stocks on regional exchanges and in the over-the-counter market totaled 12920 million shares Watson left to form his own development firm in Newport Beach after Irvine Co was sold to a group of private investors for $337 million Although Watson has been on Walt Disney's board for 10 years he plans to assume a more active role in the company particularly concerning the future of Disney World near Orlando he said in a telephone interview Thursday His experience at Irvine Co will be particularly valuable company officials believe because Disney World sits on a 43-square-mile tract of land that remains largely undeveloped Please see DISNEY Page 2 Raymond Watson In an interview Maynard dined to identify his backers in the planned purchase of the newspaper But he said the newspaper will be "locally owned" and promised to identify the other investors in the deal within two weeks Financing of the deal is contingent on approval of the contract by unions representing editorial employees truck drivers press workers typographical and graphic arts employees and mailers Frankel said the circulation work force will shrink as the paper converts to a delivery system that has a higher percentage of adult workers but fewer total employees Frankel said the change became necessary when the Tribune switched to morning delivery Because of school few children and teen-agers take jobs delivering papers in the morning Frankel said Please see TRIBUNE Page 2 11 -N 4 I 43' 1' ::::::4::::::::1 As 1 4 Governor Expected to Select San Diegan as Commissioner By JOHN BALZAR Times Staff Writer George Deukmejian has nominated three Los Angeles-area residents as directors of key business-related departments in his Real Estate Corporations and Economic and Business Development The jobs all carry annual salaries of $54566 and require confirmation by the state Senate Additionally it was learned that the governor is prepared to nominate a San Diego savings executive as commissioner of Savings and Loan Named as Corporations commissioner was Franklin Tom 41 a Los Angeles attorney and a Democrat Tom is the second Asian-American and the first of Chinese extraction to be selected as a department director or equivalent by Deukmejian Marie Shibuya-Snell a Japanese American was previously named director of the Department of Consumer Affairs A partner in the law firm of Parker Milliken Clark O'Hara Tom received his law degree from UCLA Additionally he holds degrees in accounting and finance Edmonds for Real Estate As chief administrator of the Department of Corporations he will have regulatory responsibility for state laws covering business franchises and the sale of securities and for "lender- fiduciary" statutes such as the escrow law The department also has some regulatory responsibility over prepaid health plans Appointed state Real Estate commissioner was James A Edmonds Jr 62 a semi-retired mortgage banker from Long Beach the governor's home town Edmonds a Republican founded and later sold Long Beach-based City Suburban Mortgage Co which has continued to employ him part time in its governmental affairs operation He has been active in real estate-related trade associations The Real Estate department licenses nearly 400000 real estate brokers and sales agents in the state and regulates mortgage loan brokerage activities Appointed director of the Economic and Business Development Department was Christy Mary Please see POSTS Page 2 Black TV Unit Approved to Use Channel 68 By KATHRYN HARRIS Times Staff Writer An administrative law judge has granted permission to operate a new non-commercial TV station on Channel 68 in Los Angeles to the Black Television Workshop of Los Angeles Inc the Federal Communications Commission said Thursday The nonprofit group formed more than a year ago to seek the station permit has pledged to offer a minimum of 30 hours a week of locally produced programming designed specifically to serve the needs of the black population in Los Angeles In awarding the permit Administrative Law Judge Walter Miller said a competitive application by Creation House Research Institute of Science Technology Inc failed to submit any evidence demonstrating how it intended to serve the needs of the Los Angeles community 50 Days for Appeal Miller's decision will become effective in 50 days unless an appeal is filed within 30 days the FCC said Clint Wilson a journalism professor and director of the Media Institute for Minorities at USC is chairman of Black Television Workshop Wilson said the group has estimated its station construction costs at $315 million It is seeking $236 million in proposed funding from federal sources he said Wilson when asked whether the group has discussed a pay-television format for the station for any portion of its broadcast day said "Yes we have only not full time The FCC is considering some new ways in helping non-commercial stations meet their financial obligations and it is possible that they will Please see BLACK Page 2 Sale of Defense Unit Gives Chrysler a Profit for 1982 In a surprise development Walt Disney Productions said Thursday that one of its long-time outside directors Raymond Watson 56 a nationally recognized land-development expert from Orange County will become chairman on May 1 succeeding Cardon Walker The Burbank-based entertainment company also said Ronald Miller 49 will succeed Walker as chief executive on May 1 Miller a son-in-law of the late Walt Disney currently is president and chief operating officer Miller will retain the president's title Walker 67 is stepping down after 45 years with the company but will stay on as a director and chairman of the board's restructured executive committee His departure as chairman and chief executive has been expected for more than a year The announcements were made in Orlando Fla at the company's annual meeting Walker in a statement noted that it is a "logical" time to pass the torch because the firm recently has completed or nearly completed several major projects including a Disneyland-type park in Tokyo the SI -billion Experimental Prototype Community of Tomorrow development in Florida and the launching of a cable television channel Although Miller's ascendancy to chief executive was widely expected Watson's new role was not Until 1977 Watson was president of Irvine Co a large privately held land development company in Orange County that is nationally known for its planned residential and commercial developments circulation workers would lose their jobs and he declined comment on possible layoff of typographical workers Earlier this month the prospective buyer Tribune Editor and Publisher Robert Maynard said he expected no layoffs as a result of his plan to save the ailing newspaper The agreement was announced Wednesday but no details of the unions' concessions were disclosed at that time The pact would enable a newly formed private firm headed by Maynard to buy the company from Gannett Co the Rochester NY-based communications firm on April 1 Negotiators for the the six unions which represent 650 of the paper's employees have tentatively approved the contract after a confidential review by a union-paid auditor of the Tribune's profit and loss statements Writer The loss in the fourth quarter compares with a $669 million loss in the same quarter of 1981 Sales declined 9 to $221 billion Analysts said a major reason for Chrysler's improved financial results for the year was the strong sales of its larger rear-wheel-drive cars of older design That was laid to declining gasoline sales and the fact that the recession tended to spare more affluent customers who buy that sort of car While Chrysler's total US and Canadian car and truck sales fell 4 sales of those highly profitable larger cars surged by 114 The company also managed a 22 improvement in sales of its trucks another profitable product Touche Ross Co Chrysler's outside auditor had offered qualified opinions of the company's financial statements for each of the last three years "Chrysler continues to face uncertainties some of which are beyond its control" the accounting firm said in its latest report "However in 1982 Chrysler generated significant cash from working capital management and the sale of Chrysler Defense Inc and demonstrated its ability to produce positive cash flow from its automotive operations and to realize its assets and satisfy its liabilities in the normal course of business" Robert Miller Chrysler's executive vice president for finance said the Touche Ross unqualified opinion for 1982 "gives us back our financial driver's license" The decision by Peugeot to withdraw from the proposed small-car venture was prompted by "the general condition of the small-car market" said Michel Bernard a spokesman for Peugeot in New York Please see EARNINGS Page 2 Buyer Unions Reach Tentative Accord Oakland Tribune Pact May Cut 61 Jobs By DONALD WOUTAT Times Staff Corp said Thursday that it earned $1701 million last year its first year in the black since 1977 despite a loss of 8961 million in the strike-plagued fourth quarter The company also disclosed that French auto maker Peugeot has pulled out of an agreement with Chrysler to jointly develop a small car for assembly and sale in this country by 1985 Chrysler said it is proceeding on its own As expected Chrysler said it lost money on operations in 1982 But the firm said it would have had a small operating profit if it hadn't been for a costly strike by its Canadian workers in November and December The earnings performance despite the domestic auto industry's worst sales year since 1961 prompted Chrysler's accountants to give an unqualified opinion of the firm's financial statements the first time that has happened since 1978 The earnings were in line with expectations of analysts and included 8239 million from the sale of Chrysler Defense Inc early last year Thus Chrysler's loss from continuing operations was put at 8689 million Because Chrysler calculated the losses from the Canadian strike at 8125 million the company said its operating earnings would have been roughly $71 million for the year if there had been no walkout Chrysler also blamed the economic crisis in Mexico where the company's subsidiary is the top seller of cars for 855 million worth of red ink The company's auto sales fell by 33 in Mexico last year The full-year profit contrasts with a loss of $4756 million in 1981 Sales of $1004 billion were up less than 1 from $997 billion in 1981 By PAUL RICHTER Times Staff Writer As many as 50 circulation workers and 11 typographical workers may lose their jobs at the Oakland Tribune under a tentative contract agreement reached between six Tribune trade unions and the news-paper's prospective buyer a source close to the negotiations said Thursday The agreement also calls for an across-the-board loss of one's week vacation time reduced sick leave benefits and a series of work-rules changes designed to ensure the profitability of the 900-employee daily newspaper the source said The proposed contract calls for no layoffs of editorial employees but like earlier Tribune contracts would leave management free to make such layoffs later according to the source Tribune General Counsel Larry A Frankel generally confirmed the terms but said no more than 45.