On California Business

As publisher of California Business from July, 1979, to September, 1985, I want to inform you that there were several erroneous statements included in the March 31 Times article on the magazine (“California Business Magazine Starts on Comeback Trail”).

- Office Rent: It is not true that the rent for the new offices was $19,000 per month as was printed. It was $16,266.60 per month. Moreover, we subleased 1,500 square feet, which reduced our total rent to $13,566.60 per month. This represented a $79,620 savings over a 60-month period had we stayed at our old offices and renewed the lease.

- Profits: It is not true that the magazine only made money once in 1984. There was a substantial reduction of losses from 1979 to 1984.

From 1979 to 1980, the losses were reduced from $1,250,000 to $750,000. From 1980 to 1981, the losses were reduced further to $250,000. From 1981 to 1982, there was a net profit of $1,200. In 1983, there was an expected $50,000 loss due to circulation promotion and in 1984 there was a net profit of $25,000.

- Vacations: It is not true that employees had seven weeks of vacation. The company policy provided one week of vacation after the first year, two weeks after the second year and three weeks after the third year.

- “Free Cars”: No employee received a free car. Since 1980, leased automobiles were assigned to the sales staff throughout California and to top management for business use only and were calculated as a part of their compensation.

I hope this sets the record straight.

HERSHEL D. SINAY

Publisher

East/West Network, Los Angeles