The Fresno Bee from Fresno, California • 53

INSIDE Stock listings F3 Briefly told F5 Care plan for mentally ill OK'd F6 THE FRESNO BEE Wednesday April 8 1987 Dow tumbles on inflation fears Business -s A- Stock Exchange composite index fell 261 to 16835 By PHILLIP WIGGINS New York Times V' tion weighed heavily on market sentiment The dollar closed in Tokyo at a low against the yen before trading in New York in a narrow range trade deficit evidently lacked the bullishness that was expected and may have been somewhat unsettling to the he said but added see any reason why stocks should remain down After a shaky start Tuesday the Dow gave every indication it was comfortable in the 2400 territory By midday it hovered around 2417 By midafternoon however renewed investor anxiety over interest rates the dollar and inflation had combined with some arbitrage-related sell programs to push the stock market lower Declines on the Big Board outnumbered advances by 1121 to 527 as volume swelled to 1864 1 i million shares from 1737 million shares Monday On the American Stock Exchange the market-value index dropped 059 to 34164 as declines moderately exceeded advances In over-the-counter trading the NASDAQ composite index fell 377 points to 43401 Analysts indicated that a variety of other factors combined to batter stocks in addition to the credit weakness and dollar worries have been up so much this year that institutions were probably looking for an excuse to take said Roger En-gemann president of the Pasadena Growth Fund statements on Analysts said investors in both the bond and stock markets were especially nervous in advance of the meeting in Washington today between Reagan administration officials and representatives of major industrial countries including Japan Britain West Germany and France Also comments by Paul A Volcker chairman of the Federal Reserve did not allay fears in the stock market that the Fed might step in to raise interest rates to help the battered dollar Broader stock indexes yesterday mir-e The Standard rored the decline 500-stock index dropped 526 points to 29669 while the New York Hans-Peter Wild left and his brother NEW YORK Higher interest rates and renewed fears about a lower dollar delivered a blow to the stock market Tuesday with the Dow Jones industrial average plunging 4460 points to 236094 The drop was the biggest since it fell 5739 points March 30 me day before it began an unchecked advance to a record 240554 Monday "The nearly one-point drop in bond market prices was the main reason for the market's said Michael Sherman chairman of the investment policy committee at Shearson Lehman Brothers They had been under pressure all By late in the day interest rates on long-term bonds had risen sharply as the fears of a weaker dollar and higher infla- Defense contracts listed By NORMAN BLACK Associated Press WASHINGTON Eastern Seaboard and Pacific Coast states paced the nation last year in Pentagon contracts but Mountain and Deep South states had the biggest gains a Pentagon released Tuesday said Among states the biggest gainers in fiscal 1986 were South Dakota Tennessee Oregon and Arizona The biggest losers were Montana Maine and Louisiana The report Contract Awards by Region and covers the 12 months that ended last Sept 30 The report said spending totaled $1588 billion in fiscal 1986 dov down about $49 billion from 1985 The report focused on distribution of $136 million excluding $228 billion either because the work was done outside the United States or involved contracts worth less than $25000 The report found the Pacific Coast region California Oregon Washington Alaska and Hawaii led the other sections of the country last year receiving $317 billion in military work Next came the South Atlantic region with $222 billion and the Middle Atlantic region with $173 billion However all three regions suffered a decline from 1985 The Pacific dropped from $341 billion in fiscal 1985 the Smith Atlantic Delaware Maryland Florida Georgia the District of Columbia North Carolina South Carolina Virginia and West Vuginia from $225 billion and the Middle Atlantic New Jersey New York and Pennsylvania from $18 billion The two regions that placed last in the the overall rankings posted the largest gains The Mountain region Arizona Colorado Idaho Montana Nevada New Mexico Utah and Wyoming received $62 billion in contracts in fiscal 1986 up 174 percent from the $525 billion awarded in 1985 The East South-Central region Alabama Kentucky Mississippi and Tennessee received contracts worth $495 billion up 23 percent from $4 billion Of the remaining regions only one posted an increase in Pentagon awards in 1986 New England Another region the West South-Central matched the previous total the East North-Central and West North-Central regions had declines The Pentagon said New England received contracts totaling $1575 billion up from $155 billion The West South Central Texas Arkansas Louisiana and Oklahoma won contracts totaling $141 billion the East North Central Illinois Indiana Michigan Ohio and Wisconsin $128 billion and the West North Central Iowa Kansas Minnesota Missouri Nebraska and North and South Dakota $11 billion South Dakota had a 646 percent jump in awards to $1276 million followed by Tennessee with a 458 percent jump to $115 billion Oregon with a 329 percent 13401 million hike to $3401 million and Arizona with a 312 percent gain to $26 billion Rainer Wild at the Capri Sun production line Capri Sun owners open plant give praise to local work force f- The markets The Dow Jones industrial average fell 4460 to 236094 Meanwhile the dollar was little changed in the United States after falling in Tokyo to a Gold new lows against the Japanese yen prices rose Financial roundup F2 The economy WASHINGTON Americans took out $177 billion more in consumer credit than February rise was more than double the $789 million increase in January but still well below gains which averaged close to $4 billion a month last year The February increase translated into an annual growth rate of 37 percent compared with an annual rate of 16 percent in January Texaco petition HOUSTON Texaco Inc has filed a petition with a state appeals court in another bid to reduce the multibillion-dollar bond it must post to continue its state court battle with Pennzoil Co The petition was filed Tuesday with the 1st Texas Court of Appeals a day after the Supreme Court revived an order that the oil giant post an $1 1 billion bond to appeal an $85 billion court judgment for Pennzoil Buyouts takeovers NEW YORK General Partners has dropped its hostile $100-a-share tender offer for Gencorp Inc following decision to repurchase 54 percent of its stock for $163 billion But the group which paid an average of about $81 per share for its 218 million Gencoip shares stands to make a handsome profit $130-a-share buyback is part of a restructuring proposed Monday in response to the threat from General Partners NEW YORK Avon Products Inc has agreed in principle to buy Giorgio Inc the fragrance and fashion concern based in Beverly Hills for $185 million Avon the New York-based beauty products giant said Tuesday the proposed acquisition was part of its effort to become a major player in the retail fragrance business CBS settlement NEW YORK CBS board has approved a settlement that could exceed $43 million with Thomas Wyman ousted as chairman in a boardroom showdown last September CBS said In addition the company said Tuesday it has agreed to give Wyman an annual payment of $4OOW)0 for life and the right to exercise stock options worth an additional undisclosed amount CBS outlined terms of its agreement with Wyman in a proxy statement sent to shareholders in advance of an annual meeting set for May 13 Boesky figure settles WASHINGTON The former chief trader for Ivan Seemala Corp has settled a civil complaint accusing him of violating Securities and Exchange Commission regulations by falsifying trading records the SEC says The commission said Tuesday that Michael Davidoff 43 consented in a New York federal court action to permanent injunctions forbidding him from further violations He also agreed to accept a permanent bar against further involvement in the securities industry the SEC said Computer news CUPERTINO Apple Computer Inc has named Deborah A Coleman 34 chief financial officer and given David Barram 43 her predecessor the new post of vice president of corporate affairs the company said Tuesday Succeeding Coleman as vice president of worldwide operations is Ralph Russo 39 who currently is director of international operations HOUSTON William Murto who co-founded Compaq Computer Corp in 1982 is leaving the company to study religion the company said Tuesday Murto is the company's vice president for sales Murto told fellow employees on Mondav that he would leave the company April 20 and begin studying for a masters degree in religious education at the University of Houston Local notes Guarantee income property Shaw department will relocate to 1320 Ave Suite 155 effective Friday The department originates and processes all Guarantee's income property loans in the Central Valley Norm Clark is manager A 7000-square-foot Thomasville Gallery has been opened at Breu tiers furniture store The company also opened galleri Sacra leries at stores in Stockton and menta It also plans five more in May bringing to 15 its stores with floor space devoted exclusively to the Thomasville product line Bee Business stah and newts services Among individual issues Telex fell 5V6 to 84V4 after Merrill Lynch downgraded its opinion of the issue Texaco hurt by unfavorable decision in its continuing Supreme Court litigation with Pennzoil rose to 34 after falling 4 points Monday Fresno BmPmiI Kuroda vors with a ninth to be added later this spring The drinks all natural products are packaged in foil pouches In addition to die fruit juice that makes up 10 percent of the product die drinks contain of natural essences and flavors from fruits gathered around the world The packets are processed fat Germany Capri Sun in the United States is wholly owned by the Wild Co which works through franchises in many European and Far Eastern countries The Wild Co founded 54 earsaly the father of Hans-Peter and in Germany manufactures fruit juice drinks prepares and distributes fruit products throughout Europe for bakery and dairy uses and builds the equipment used in processing Capri Sun are very much specialists in fruit" said Hans-Peter Wild Rainer Wild a chemist oversees the research department which he said is the largest in the Capri Sun first was marketed in the United States in 1979 and was immediate the Wilds said The Fresno plant has room for expansion and the Wilds said there may be variations to come in both packaging and product Taiwan buying state wheat By RICHARD HALL Bee business writer ALBANY The California Wheat Commission announced Tuesday the first sale of Hard Red Winter wheat to die Republic of China on Taiwan a deal worth $675000 The 5000 metric tons are considered a sample shipment Two technicians will spend a week in Taiwan teaching methods required to use the wheat Taiwan imports about 800000 tons of wheat annually Malcolm Leiser Wheat Commission chairman signed the ag merit with YS Miao Taiwan Mills Association Chairman climax ing three years of visits by Califpr-imission officials nia Wheat Commission hurst was master of ceremonies for the grand opening Hans-Peter Wild and his brother Dr Rainer Wild were accompanied by some of the top United States executives on their visit for the ribbon-cutting They presented a book on Heidelberg and its 600-year-old university as well as an original etching dating from 1840 showing scenes of Heidelberg and the surrounding countryside to Mayor Pro Tempore Tea Wills as gifts for the city The manager of the Fresno plant Erik Hermansen was even more enthusiastic than Wild about the quality erf the workers calling them smart fast-learning with no qualification whatsoever I could not be more Hermansen formerly with Tri-Valley Growers of Modesto came to Fresno last August to oversee construction and startup of the plant He said that five from another Capri Sun plant are i in Fresno The rest of the 45-memben force is local Capri Sun's American headquarters are in San Mateo The company has another plant in Granite City 111 Hans-Peter Wild said Fresno was chosen for a Capri Sun plant because of its UNblBnup employees ire working imberworfe location between the Los Angeles and San and bees Francisco mqjor markets and because it is a center for much of die fruit that the company uses in its soft drinks Capri Sun now is available in eight fla- ance could be placed on the internal ao I counting! The filing seeks the revocation of KMG Main Hurdman's California partnership license mid the revocation of the licenses of four of the certified public accountants who handled the Technical Equities audit A hearing before an administrative law judge will be conducted within three months which was filed for the board by the state Attorney General's office KMG Main Hurdman merged last week litchelf to form die with Peat Marwick Mit world's biggest accounting firm State officials said it was unclear now the merger would affect the revocation proceedings Richard Miller associate general counsel for Peat Marwick Mitchell said he was with the state's accusation which he said was "replete with factual inaccuracies By WANDA COYLE Bee business writer The German owners of one of Fresno's newest industries Capri Sun heaped praise on the local work force at the grand opening of the local plant Tuesday Hans-Peter Wild of the family-owned Wild Co of Heideibeig told Fresno officials gathered for the ribbon-cutting that the Fresno startup has been the smoothest for any of the company's plants in more than 40 nations around the world The reason he said is the able and dedicated work that Capri Sun has hired along with the support of the Fresno community Nearly all of the 40 employees hired locally by the fruit-drink company were supplied through the Private Industry Council drawing from a number of train ing programs designed to help find jobs of work for people who are out Capri Sun which has remodeled the old Market Wholesale building on South Orange Avenue is in Fresno's enterprise zone which offers companies state and local tax credits and incentives for hiring people who might otherwise be on government subsidies The Fresno Economic Development Council helped recruit Capri Sun to Fresno and FEDC President Daniel White- investors including sports figures Don Drysdale and Rick Barry to sink money Is ana unregistered se into real estate deals curities Authorities have estimated the losses at $100 million Many of the investors have said they were led into the deals by the slick appearance of the Technical Equities' operations including annual reports that carried KMG Main Hurdman's unqualified opinion that the company's finances were solid In its filing the state Board of Accountancy alleged that a March 31 1985 audit of Technical Equities wasn't conducted accordance with generally accepted auditing and was inadequately staffed It also said the accounting company's problem State regulators seek revocation of accounting state license Associated Press SACRAMENTO State regulators want to revoke KMG Main license to practice in California saying the giant accounting company made errors in auditing a San Jose investment firm called Technical Equities Technical Equities filed for bankruptcy Kection last year after a financial col-e that could mean hundreds of small investors never will be able to recover their savings The case is tangled in a snarl of lawsuits and investigations The state Board erf Accountancy filed a formal accusation late last week against KMG Main Hurdman saying questions about Technical Equities totally ignored or managed in a grossly negligent by auditors Technical Equities officials persuaded MHM.