St. Louis Post-Dispatch from St. Louis, Missouri • Page 8

8, May 19, 1975 ST. LOUIS POST-DISPATCH Funding Of Rises Dyv4i fgr CJ- 13 business briefs NEW YORK, May 19 (UPI) American companies plan to spend 10 per cent more on research and development this year and step up expenditures 29 per cent by 1978, according to McGraw-Hill Publications Co. McGraw-Hill's economics department said expenditures are expected to climb to 25.5 billion dollars in 1975. Douglas Greenwald, chief economist for McGraw-Hill, said "although inflation accounts for nearly all of the rise, there is some indication that this year will see the first real growth in since the mid-1960s." lie pointed out that energy-related research and development expenditures, which are exptected to climb 21 per cent this year and 51 per cent by 1978, are contributing substantially to higher outlay totals. The manufacturing sector plans a 10 per cent expansion in spending this year and 28 per cent over the next three years, the department's 20th annual survey of business plans for research and development expenditures showed.

Nonmanufacturing companies expect an 18 per cent increase in outlays this year, the company said, and a 59 per cent rise between 1975 and 1978. New products are expected to account for 14 per cent of total projected sales in 1978, but last year manufacturers allocated 18 per cent of 1977's anticipated sales to new products. The shift away from new products is apparent and in the plans of 48 per cent of the nation's manufacturers, which are using spending to improve existing products, the study showed. Although spending for pollution control should exceed 1.2 billion in 1975, in real terms the outlays will show a significant decline from 1974 levels, according to NORTHWESTERN COOPERAGE CO. at 42 Ferry Street is one of the nation's five largest businesses of its kind.

Founded in 1915 by Max Tureen, father of the present general manager, Boris Tureen, the company reconditions steel drums for their owners or purchases them for reconditioning and sale. In its early days, the company worked with wooden barrels at a one-acre site at Seventeenth and Division Streets. Today, Northwestern Cooperage, which was sold to Great Lakes Container Corp. in 1970, has a 12-acre site and 100,000 square feet of warehouse and manufacturing space. Workmen shown here are preparing the drums for reconditioning, a process which can return them to a like-new condition as many as 15 different times.

(Post-Dispatch Photos by Michael J. Baldridge) iii ii'ilBIHIlliriri ii iiiiiitil in Mm 1 mini local notes Jury Studies United Brands Case WASHINGTON A federal grand jury is weighing possible criminal charges against United Brands Co. and its top corporate officers as a result of admissions that the company paid $2 million to buy favorable business treatment in Honduras and Europe. In addition to demanding records of payments to 'Honduras or any other foreign country since 1970, prosecutors have also asKed for records of any payments involving Costa Rica, Panama, Italy and West Germany. Meanwhile, United Brands has rejected as too severe the Securities and Exchange Commission's proposed terms for settling the agency's suit charging the company with failing to disclose a bribe.

Last month the SEC charged that United Brands violated the agency's antifraud and reporting rules by failing to disclose a $1,250,000 payment made last year to an official of the Honduran government. It also failed to report cash payments of about $750,000 to officials of a European government. Philadelphia Port Most Active PHILADELPHIA (AP) The Port of Philadelphia was the nation's most active marketplace for international trade in 1974, according to statistics released by the Delaware Rjver Port authority. The authority reported that 1974 marked the first time in 10 years that Philadelphia did more international trading than the Port of New York. But the authority said that when domestic trade is included, New York is still the nation's leader.

The authority said total international shipping through Philadelphia in 1974 was a record 80,800,000 tons. New York moved 71,800,000 tons, followed by Hampton Roads, with 56,600,000 and Baltimore with 41,800,000 tons. 31,698 Oil Wells Drilled WASHINGTON (AP) The accelerated search for oil and natural gas during 1974 resulted in the completion of 31,698 wells in the United States, the American Petroleum Institute said. The institute's final drilling figures for last year show an increase of 19.2 per cent over the 26,592 wells completed in 1973. As in previous years, a large percentage of the wells' were dry holes that is, they did not produce any oil or gas.

The tctal footage drilled was more than 150 million feet the equivalent of 28,514 miles, the institute said. This was an increase of 14,000,000 feet over the 1973 figure. The State of Texas led with the most wells drilled 9529. Hearings On Xerox Agreement WASHINGTON (AP) The Federal Trade Commission will hold public hearings June 4 on the negotiated settlement of its antitrust complaint against Xerox Corp. The commission announced last month it intends to accept the agreement with the Stamford, copying machine manufacturer.

An earlier agreement with Xerox was thrown out in February after opposition from the company's competitors, who contended the intial agreement was too easy on Xerox. The latest agreement is more restrictive in dealing with Xerox's pricing policies and patent licensing to competitors. Canadian Unemployment OTTAWA (UPI) Canada's seasonally adjusted unemployment rate remained unchanged at 7.2 per cent in April, continuing at the highest level in 14 years. Statistics Canada said the total number of unemployed Canadians dropped by 45,000 to 795,000, but the drop was not enough to offset seasonal adjustments programmed to anticipate a normal increase in employment for the month. Option Trade Rise Impressive.

trade options. However, this does not mean that every registered representative is an expert. The investor should proceed cautiously. For the more sophisticated, there are naked options. Many investors have heard of naked options, but few are able to explain them.

When someone buys a call on a given stock, the seller of that call promises to deliver the underlying shares if the buyer exercises the right to call them. Some sellers do not own the underlying shares and their options may thus be deemed to be "naked." The exchanges require substantial cash from sellers of naked options to assure themselves that the sellers will be able to meet their obligations. If the market begins to move away from a naked seller, he can protect himself in one of two ways. He may buy the underlying shares a substantial investment or he may buy an offsetting call option on the "1975 New York Times News Service NEW YORK, May 19 Since the Chicago Board of 'Options Exchange began trading options two years ago, this market, in which investors pay for the right to purchase 100 shares of a given stock at a set price, has shown phenomenal growth. The board's volume in options, measured by the number of shares the options control, is now second only to the volume of the New York Stock Exchange.

By that measure, the options exchange is doing twice as much business as the American Stock Exchange. And when the board's success prompted the Amex to begin trading options itself in January, the response was strong. An air of mystery about this business remains, and many small investors have entered the arena only to lose substantial sums of money. For though the appeal in the options market is that it requires only a relatively small stake, the whole sum is at risk, as many a speculator has learned to his sorrow. Paul Farmer, director of marketing for Marsh, Block explained that many op tion traders have made substantial sums since January in the generally upward mat-ket but are unaware that they can lick up their profits and thus protect themselves against a sudden market reversal.

"Suppose you were one of the fortunate few who bought a call on Digital Equipment back in January," Farmer said. "You might have paid as little as $800 for the right to buy 100 shares of Digital at a contract price of 50. "The stock is now selling at over $100 a share. If you had bought the underlying shares in January, you would have doubled your money by now. "But the option on the shares is now selling at over $5000.

You have sextupled your money and it's time to take protective steps. "If you still believe Digital will continue to advance in price, you should sell the option at $50 and use part of the $5000 proceeds to buy a new call on Digital at $100. The new call would cost you about $1500. Put your $3500 aside. You're still in the Digital business and no matter what happens you have the $3500 in the bank." He said that he had recommended to his customers that they generally should lock up profits in this manner after every 10 points of advance in the market of the underlying shares.

Farmer was asked what he recommended for his customers who lost everything when the underlying shares failed to reach the striking price before the option ran out. There are three-month, six-month and nine-month options, and if they are unexercised before expiring they lose all value. One advantage of the trading market in options is that the investor need not ride his option all the way down, Farmer explained. He can limit his loss just as he can in the stock market. Farmer said that he tried to get his customer out while he still has 75 per cent of his investment intact.

However, he added that once an option had dropped below 2 $200 per option it generally paid to hang on if it had three weeks or more to run. The fact is that an option selling for $175 or so represents a small salvage value and frequently these low-priced options will double in price in the last few weeks, Farmer said. Many investors are unaware that nearly all leading brokerage firms doing business with the general public same stock. For example, if he sold the Digital option naked at 50 and got worried when the underlying shares reached 60, he would simply buy a call on Digital at 60. The call would have cost something about $800 when Digital reached 60 some months ago while the underlying shares would have cost $6000.

Office Vacancy Rate Put At 13 Per Cent Tiffany Industries, Inc George D. Hartmen Jr. has been promoted to vice president sales from sales manager in the Superior Steel Buildings Systems division. Direct Mail Corp America Dave Lehleitner has joined the firm as vice president, account supervisor. Peabody Coal Co.

Wallace W. Brown has been promoted to assistant director-purchasing on the corporate level from purchasing agent here. Midcoast Aviation Services Inc. John L. Bauer former advertising manager at Anheuser-Busch has been appointed manager of corporate aircraft sales at Midcoast Aviation.

National Supermarkets, Inc. Raymond J. Mikesch has been appointed warehouse superintendent in National's grocery warehouse here. 1 Ralston Purina Co. Russell H.

Nehrig Jr. has been named product group director and Clyde A. Vandivort product manager, both in the grocery products division. FS Services, Inc. Robert W.

Hopping sales training manager was named director of the newly created management and sales training division at the Bloomington, 111. firm. Dalton Manufacturing Co. Norman J. Sutter was reelected chairman and chief financial officer.

Others reelected were: Leslie M. Sutter president and Mary Frances Wehlermann, secretary. Norman J. Sutter who ajso is president of Ballwin Products the firm's plant in Fenton, announced that the company has expanded it's product line to include wrought iron ware for national distribution. St.

Louis Railway Supply Co. had been appointed a manufacturer's representative for the Amcar Division of ACF Industries Inc. Robert M. Close, John W. Close and Walter J.

Winzen will represent ACF in freight car parts sales in Missouri, northern Arkansas, southern. Illinois and Indiana. Rising Insurance Agency Glen A. Risinger has announced he will move his offices to 12541 Bennington Place in the new West Pointe convenience center from 9191 West Florissant Avenue, effective June 1. Society of American Military Engineers Edward H.

Barker, vice president in charge of client relations of Sverdrup Parcel and Associates, was honored with the society's award of merit. Small Business' Administration Michael F. Shanahan, president of Numerical Control, Inc. here, tomorrow will be presented the 1974 small business prime contractor of the year for Region VII award, by Christopher S. Bond.

James L. Wilhite is chairman and chief executive of the firm and James V. LaBarbera is vice chairman. Small Business Administration Don Walsworth, president of Walsworth Publishing Marceline, has been named by Governor Christopher S. Bond, as 1975 Missouri small businessman of the year.

National Association of Accountants Harold E. Thayer, chairman and chief executive of Mallinckrodt will address the final dinner meeting of the executive association's At. Louis chapter at 5:30 p.m. nest Tuesdya, at Holiday Inn-West, Interstate 270 and St. Charles Rock Road.

Hunter Engineering Co Naval officers representing over 30 foreign countries toured the Hunter plant, office and training school facilities in Bridgeton, Mo. Retail Sales Gain WASHINGTON, May 19 (Dow)-Sales by retail stores last week increased 0.9 per cent from the previous week to a seasonally adjusted 10.9 billion dollars, the Department of Commerce said. Last week's sales were 5 per cent above a year earlier, matching the 5 per cent average rise of the four most recent weeks, but trailing the 7 per cent advance so far this year. The 5 per cent year-to-year rise means physical volume actually declined in the past 12 months, since inflation has been running about 10 per cent. Durable goods sales, including autos, totaled an adjusted 3.22 billions last week, up 2.8 per cent from the previous week but 2 per 'cent below the year earlier period.

Sales of nondurables at an adjusted 7.68 billions were up 0.1 per cent from the prior week and 8 per cent above the 1974 week. Automotive sales totaled an unadjusted 1.87 billions last week, down from the week earlier 1.97 billions and 1 per cent below a year ago. Sales of apparel and hardware also declined from the earlier level but receipts for all other major retail categories showed gains fromhe 1974 week, led by a 13 per ent increase for restaurants. ATTENTION INSURANCE INDUSTRY BROKERS INTRODUCING 2 NEW MISSOURI POLICIES HOMEOWNERS INSURANCE for URBAN Semi URBAN AUTOMOBILE INSURNCE Private Passenger Physical Damage Underwritten by Top Rated Stock Companies wHt prMnt portkutori Friday May 23rd, 1975 at 9 AM at Sheraton Westport Inn Page at 1-270 Before the big upswing make your swing to Sprmgwood Plaza newest Shopping Center in booming northwest County. 40 years or more renting at rates under $4 a square foot had the highest individual vacancy percentage.

The report noted, however, that there is over 2,000,000 square feet of office area under construction in the downtown area. In downtown Clayton, 19 competitive buildings with square feet of office area were reported to have a vacancy rate of 14.5 per cent, which is up from last year. This included Aragon Place, which has just begun its leasing program. First National Bank Lowers Prime Rate First National Bank in St. Louis said it will lower its prime interest rate Tuesday from 7'2 to V4 per cent.

Last week the Federal Reserve Board lowered its discount rate on lending to member banks from 6.25 to 6 per cent. It was the third decrease in the rate this year. Dividends Edison Brothers Stores, declared a quarterly dividend of 37 cents a common share, payable June 12 to shareholders of record on May 30. Mercantile Bancorporation Inc. declared the regular quarterly dividend of 55 cents a common share, payable July 1 to holders of (jecord June 10.

Office buildings in downtown St. Louis and Clayton have been reported as having a 13 per cent vacancy rate. The rate from May 1974 to May 1975, as reported in the 1975 office building occupancy report released by the Building Owners and Managers Association here, is slightly lower than the comparable 1973-74 period. The report covers 55 buildings totaling 8,304,260 square feet of office area. The breakdown of the two areas: 33 buildings in St.

Louis with 6,291,608 square feet of office area, and 22 Clayton buildings with 2,012,652 square feet of office area. The report included buildings which have offices to rent, which are referred to as competitive buildings. Also included are noncompetitive buildings, which are owned by the goverment, and single purpose buildings such as those owned the Seven-Up Co. and Southwestern Bell Telephone Co. It does not include office buildings in outlying St.

Louis County areas, however. In downtown St. Louis, 28 competitive buildings totaling 4,637,640 square feet of office area had a vacancy rate of 16.2 per cent, against 16.8 per cent last year. New and refurbished older office buildings leasing at rates of more than $4 per square foot were reported to he 95 per cent occupied. Older buildings of ArfvawK ItoMrvottoni Rvqutod by WMrfay, May 2 lit PRESENTED BY R.

M. Schoenfeld, Insurance Assoc. AND When things really start looking up, don't be caught looking tor the right business location. Beat your competition to Sprmgwood Plaza 10200 West Florissant, just north ot Chambers Road Great location, easily accessible (rom anywhere North, An inviting plaza area with fountain, rest areas, lots of parking space. 80,000 households within a 2 mile radius.

Schnucks Grand Opening here was their biggest ever! Join Schnucks and these other fine retailers in the newest shopping center in booming northwest county: Gasen's. The Thoughtful Shop. Studio I Interiors. Fashion Inn. Ltd George Turner's Gym.

London Aire Coiffures. Century Finance and a new Italian restaurant opening soon Lease from 1000 square feet on up. We'll make you an offer you won't believe. Call or write: Roy Smith Real Estate 50 Crestwood Executive Center i St. Louis.

Mo. 63126 314-842-2333 We will attend: Agency I Address I Phone I No. Attending MAIL TO: I. M. Schoenfeld Inssrjnce I Associates P.O.

Bo 12886 American International Insurance Agency PHONE 569-0617 Creve Coeur, Mo. 63141 I i.