The Los Angeles Times from Los Angeles, California • 8

knee 6ime NewYork Stocks Late Final Circulation: 1081050 Daily 1340743 Sunday Monday January 3 1983 LF 84 pages! Copyright 1983 Los Angeles Times Daily 'Common Sense' Era Piled ed A it -mu ip I All (I) Imam AI TN C144g 1L7 Deukmejian Takes Oath as Governor Dow Starts Year Off JUT From Times Wire Services NEW stock market suffered a sharp setback today yielding to a late wave of selling The Dow Jones average of 30 industrials closed down 1950 at 102704 New York Stock Exchange volume was about 5908 million shares compared with 4211 million Friday Tables in Business Section 2 Die in Catalina Crash -t '''WNi121AW 40-: lott I 1 111A' 454 4 i Sr) 7' :::4::: (40' i 4:: 11: '111W' 0 tiol cv eb i Ji lici0-: A 40021P10041 A PFP ITTR 106iblOblO AP 44 'Ag i 7 41 12 tA NA gx 14 4111111111111111111111111111 Associated Press With his wife Gloria at his side George Deukmejian is sworn in by Justice Frank Richardson 1Luuma mommommennow With his wife Gloria at his side 'Z George Deukmejian is sworn ita Of rat "0021PIP4t A419'' 711 Associated Press in by Justice Frank Richardson From Associated Press Two people died and two others were injured today when their plane apparently ran off the end of the runway at Airport in the Sky on Santa Catalina Island and crashed while landing officials said The identities of those aboard the Piper Cherokee and the plane's point of origin were not immediately known The plane crashed about 12:15 pm said Barbara Abe ls a spokeswoman for the Federal Aviation PLO Contact JERUSALEM Minister Yitzhak Shamir was quoted today as obliquely confirming that Israel was in direct contact with the Palestine Liberation Organization to secure the release of its prisoners of war Israel radio quoted him as telling Parliament's Foreign Affairs and Security Committee that Israel was taking action on humanitarian grounds which ordinarily it would reject on political grounds Harriet Parsons Dies I At a separate ceremony former Dist Atty John Van de Kamp is 1 --41411 A- 4t 11:4 co foloofr47 (4) )t't 1'114' 1 '1''''9141 113) 44110wwwitamoof ALINNmIL CI T'-''''''61-'i 4r1 41 4' (v '44 i 4K Rigi'VEMRNCLP 44 Cf: i't6Eir VgiN a Harriet Parsons pioneer woman motion picture prcducer and daughter of the late Hollywood columnist Louella Parsons died Sun lay at St John's Hospital in Santa Monica after a two-year battle with cancer She was 76 A contract producer for RKO Studios between 1943 and 1955 she made only six feature films but one of them "I Remember Mama" starring Irene Dunne enjoyed considerable box office success During the late '30s and early '40s she worked as a columnist for Photoplay and Liberty magazines and as a Brazil Floods k- i'''' I NettSWIi Hinted Harriet Parsons feature writer for the Los Angeles Examiner and the Hearst Universal Syndicate 5 Kill 40 Death Toll The summit is the first since May 1980 Andropov 68 was named general secretary of the Communist Party on Nov 12 two days after President Leonid I Brezhnev's death The seven Warsaw Pact members regularly meet every two years Officials in the Czech Foreign Ministry said in Prague in early November that a meeting would be held in early December but the meeting was postponed after Brezhnev's death The leaders of the Warsaw Pact East Germany Czechoslovakia Hungary Bulgaria and met Andropov twice in Moscow recently Andropov saw the leaders during Brezhnev's funeral and again two weeks ago during Kremlin observances of the 60th anniversary of the founding of the Soviet state 1 (t i -'--i Ai By DOUGLAS SHUIT Times Staff Writer Republican George Deukmejian promising a "Common Sense Society" and sounding the same tough law -and order theme that catapulted him from the attorney general's office to the state's top political job was sworn in as California's 35th governor today Deukmejian frequently drawing cheers and applause from a crowd of about 8000 also called for deep spending cuts as a cure for the state's deficit-ridden $255-billion budget He was openly critical of policies of outgoing Democratic Gov Edmund Brown Jr Deukmejian though he said he was still opposed to a tax increase appeared to leave the door open to some kind of tax shift by Saying the budget should be balanced "without a net tax increase" Softening Opposition Seen Democratic legislative leaders who have been calling for temporary increases in sales and other state taxes said they interpreted his statement as a softening of his earlier opposition to any kind of tax in crease Deukmejian said he is greatly concerned by the potential $15-bil lion deficit in the current year's budget noting that the state is spending $4 million more a day than it is taking in in tax receipts But he said the public is clearly opposed to a tax increase "Repeatedly over the past few years the voters have expressed the strongest of sentiments that the government already collects too many taxes" said Deukmejian flanked by the state Senate and Assembly state constitutional officers members of the Supreme Court and other dignitaries including outgoing Gov Brown 'Fiscal Responsibility' "Therefore because I believe our first obligation is to listen to the people we must make every effort to restore fiscal responsibility without a net tax increase" he said Deukmejian made several barbed references to the policies of Democrat Brown and got his strongest response when he promised to make crime his highest priority and appoint judges "with more balanced views who will protect the rights of victims as well as protecting the rights of the accused" Deukmejian also promised to stimulate the state's business climate and vowed to change the tough regulatory climate associated with the Brown Administration Also Sworn In Deukmejian was sworn in by state Supreme Court Justice Frank Richardson Also sworn in on the historic day in different ceremonies were Controller Ken Cory Atty Gen John Van de Kamp Secretary of State March Fong Eu Treasurer Jesse Unruh and Lt Gov Leo McCarthy They are all Democrats as are the majority of members of the Senate and Assembly Outgoing Gov Brown said Deukmejian "spoke with conviction" "I enjoyed it" Brown said after the ceremony "I enjoyed passing the reins of power" Senate President Pro Tern David A Roberti (D-Los Angeles) said Deukmejian gave a "positive speech The theme was bipartisan cooperation "He did not seem to close any doors (as far as a tax increase)" Roberti said then added "Maybe there's still a foot in it" Deukmejian pledged to stay closer to the people and said he wants more peace than was experPlease see INAUGURAL Page 2 INDEX Art Part VI CALENDAR Pagel Astrology II METRO 3 Books VIEW 2 Bridge VIEW 4 Classified VII CLASSIFIED 1-12 Comics VIEW 7 Crossword VII CLASSIFIED 12 Dear Abby II METRO 3 Editorials II METRO 45 Films VI CALENDAR 1-6 Local News II METRO 1-36 Markets IV BUSINESS 1-14 Music VI CALENDAR 1 Sports III SPORTS 1-14 TV-Radio VI CALENDAR 16-8 Weather Deaths I 14 Associated Press general by Chief Justice Rose Elizabeth his wife Andrea center watches Los Angeles sworn in as festive House ceremonies the Senate met only an hour and 40 minutes before adjourning until Jan 25 with Vice President George Bush swearing in the 33 new members in groups of three No legislative business is scheduled in either house until after President Reagan gives his State of the Union speech Jan 25 and submits his budget Jan 31 Later this week after completing its housekeeping chores the House will join the Senate in adjournment until then Reagan's budget will present the lawmakers with their first major problem: a deficit expected to approach or top $200 billion Reagan consistently has insisted that he will not accept tax increases or cuts in his military budget leaving domestic programs to suffer any cuts to hold down the budget Both Democrats and Republicans have served notice that they will not place the whole burden on domestic programs however Numerous issues are left over from the 97th Congress which struggled out of Washington one day before Christmas Eve They include financing of Social Security attorney Bird as BELO HORIZONTE Brazil floods swept through Brazil's third-largest city killing at least 40 people and leaving 1500 homeless police said today Officials said heavy rains started Sunday Within a few hours the rain-swollen Arrudas River overflowed its banks sending the water racing through the center of this industrial city of 2 million people Congress Opens Ready for a Fight House Argues on Rules Senate to Tackle Filibuster Issue Low Traffic From Associated Press Traffic accidents took 268 lives -during the three-day New Year's holiday nation's lowest highway death toll of any holiday weekend since the 1949 Memorial Day count of 253 The lowest previous New Year's weekend toll was 269 also in 1949 The National Safety Council had said that between 300 and 400 people could be expected to die in traffic accidents during the period beginning 6 pm Thursday and ending midnight Sunday Top Soviet Officials Leave for Warsaw Pact Summit Meeting creation of jobs whether to build the MX missile revision of immigration laws and a restructuring of bankruptcy laws But O'Neill made clear in his opening House remarks that jobs unemployment hitting 108 be the No 1 priority for Democrats Reagan forced the Democrats to drop a $54-billion public works jobs program at the end of the last session "The time for waiting for jobs has passed" said O'Neill "The time for action on jobs is at hand" Senate Republican leader Howard Baker Jr refused to say whether he would support a public works jobs bill He said he expects Social Security to be "the most contentious" issue But the session began with anything but cooperation as House Democrats and Republicans battled over the body's rules especially one that would limit riders on appropriations bills The proceedings opened with calls from both Democrats and Republicans for bipartisan cooperation on the heavy problems they will face during the next two years Three firemen received minor in in fighting the blaze at the two-story home of Lester Deutch A woman at the house who was not identified was treated for minor burns The cause of the fire was under investigation firefighters said they were told that it began in or around a Christmas tree on the first floor WASHINGTON UPI) 98th Congress convened today to face the worst unemployment since the Great Depression the largest budget deficits in history and a Social Security trust fund running dry Both the Senate and House were called to order at noon for opening ceremonies the swearing-in of members and a battle over House rules changes that would place the Democratic leadership in firmer control A Senate battle over filibuster rules was brewing for later in the session House opening ceremonies were festive and filled with cheering and backslapping The House floor was crammed with members wives a few House Speaker Thomas (Tip) O'Neill was easily reelected to his post and swore in new members Ceremony Takes Seconds The swearing-in ceremonies of all 434 members as a group took only a few seconds and the new House broke into cheers The House remained in Democratic hands by a 269-165 margin 26 more Democrats than last year with the Senate retaining the same ratio of Republican control 54 to 46 There were 80 new House members five new senators By contrast to the lengthy and 1982 Market Analysis in Business Section An analysis of stock market activity in 1982 and tables showing full-year results for all listed stocks appear in today's Business Section $12-Mil lion Beverly Hills Fire MOSCOW leader Yuri Andropov and other top Kremlin officials left Moscow today for a Warsaw Pact summit in Czechoslovakia Tass the official Soviet press agency reported The delegation included Defense Minister Dimitri Ustinov Foreign Minister Andrei A Gromyko Premier Nikolai Tikhonov and Kon stantin Rusakov secretary of the Communist Party Central Committee Tass said THE LATEST WEATHER Fair skies are forecast for Tuesday with a downtown high of 72 Tonight's low should be 47 11 A fire gutted a Beverly Hills home destroying 18 valuable paintings and causing about $12 million in damage the Beverly Hills Fire Department reported today The fire Sunday night in the 700 block of North Palm Drive caused $700000 in structural damage and destroyed the paintings and other possessions valued at $500000.