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Tucson Daily Citizen from Tucson, Arizona • Page 34

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Tucson, Arizona
Issue Date:
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34
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TUESDAY, FEBRUARY 24, 1970 A I I I PAGE 31 Ling-Temco-Vought To Sell Two Firms. Hold Steel Mill DALLAS, Tex. (AP) Ling- Temco-Vought has announced that it would sell its interest in Braniff International and Okonite Co. in order to retain controlling ownership of Jones Laughlin Steel Co. The announcement followed discussions between LTV and the Justice Department in Washington.

The Justice Department has an antitrust suit pending against the diversified company challenging its acquisition of controlling interest of Jones Laughlin Steel Co. in 1968. Interest Declines Begin To Appear NEW YORK (AP)' Interest rates are declining in some money markets, a sign that econo- GM Slates Layoffs At Varied Plants DETROIT (AP) General Motors Corp, says it will lay off 2,200 workers indefinitely March 19 at assembly plants in Baltimore, Kansas City, and Fremont, Calif. The nation's largest automaker also announced yesterday brief layoffs at numerous plants in the next month. GM said the closings are being made 10 bring auto production in line with sales.

Plants to be closed Feb. 27 include assembly plants in Arlington, Kansas City, Fremont, Linden, N.J., and South Gate, Calif. Closed March 2-3 will be assembly plants at Arlington, Linden, N.J., and South Gate, Calif. The plant at North Tarry town, N.Y., will be shut down March 2-6. Assembly plants at Doraville, and Janesville, will close March 6 and March 0.

The Chevrolet Fisher Body plant in St. Louis ith the exception of Corvette assembly, will close March 6 and March 13. Olsmobile-Fisher Body plant at Lansing, with exception of Toronado assembly, will close March 6 and March 20. On March 19-20, assembly plants also will close at Framingham and Atlanta, Ga. mists view as further evidence the economy is responding to the government's anti-inflation drive.

While they caution that these declines-centered in high finance-are a long way from affecting the consumer, it was pointed out it eventually could spell some relief in the hard pressed mortgage market. "The trends are truly down," said Tilford Gaines, vice president and economist for Manufacturers Hanover Trust. Interest rates on Treasury bills which even the small investor has bought for their higher return are dropping. The interest rate last week fell to less than 7 per cent, compared with more than 8 per cent two months ago. The latest rate is the lowest since last June.

The interest rates on Eurodollars-dollars held in. banks abroad-have dropped from last year's high of 13 per cent to almost 9 percent. Interest rates also have declined on promissory notes issued by large corporations to raise money as much as a full quarter point in the last few days. Interest rates on certain multi-million dlolar housing project notes have seen a drop to their lowest level since last May, the Department of Housing and Urban Development announced. Interest rates on bonds have declined.

Michigan Bell last week had to pay only 8.5 per cent interest on $150 million of bonds bonds which were snapped up by investors. This compares with the more than 9 per cent paid on another Bell system issue just two months ago. No firm agreement has been made, and any agreement would have to be approved by the federal court in Pittsburgh vhe Justice Department said. The department had filed the suit against LTV in March of 1969 in Pittsburgh to force it to divest its interest in Jones Laughlin, the nation's sixth largest steel mill. It had acquired 63 per cent of the company slock in 196S and Ford Tests New Device For Autos CAPE KENNEDY, Fla.

(AP) Ford Motor Co. revealed it has begun, in cooperation with the General Services Administration field the testign of a device to reduce exhaust emissions from older automobiles lacking pollution controls. Herbert L. Misch, Ford vice president-engineering, said preliminary tests at company laboratories indicate the device possibly will reduce hydrocarbons and carbon monoxide by up to 50 per cent and lower nitrous oxides by 35 per cent. Henry Ford II, company chairman, told a news conference earlier this year that Ford was developing an emission-control device for use on older cars and hoped to be able to market it for under $50.

Government cars assigned to the Cape Kennedy Space Center are being used for the tests. "The field test is a practical effort to confirm preliminary findings." Misch said. "It also should provide us with a clear indication of the effectiveness and the cost of the modification approach with respect to the vast number of unequipped vehicles in the total car population." Misch said the tests also should provide "sound information" for legislative proposals regarding emission controls. Ford is'using a newly developed emissions test laboratory to evaluate various modi- lications of the ignition and fuel systems of GSA used cars. later the Justice Department permitted it to acquire a maximum of 81 per cent.

The proposed agreement would require LTV to give up within three years either all of its interest in Braniff and Oko- nite or all of its interest in Jones and Laughlin Steel. The Okonite based in Passaic, N.J., reported a net loss of $680,000 or 20 cents per share in 1969. LTV owns 86 per cent of the common stock of Okonite. The company, which makes wire and cable products, showed increased sales of for 1969. compares wid net income of or a share, on sales of $190,848,000 in 1968.

LTV owns about 55 per cent of Braniff, an LTV spokesman said. Braniff earned $6.2 million in 1909 with operating revenues of $325.6 million. This compared to the previous year's earnings of million on operating revenue of million. ATT Lists New Bonds With SEC NEW YORK (AP) The American Telephone Telegraph Co. has registered its record $1.57 billion 30-year debenture offering with the Securities and Exchange Commission.

The bonds will be offered along with warrants to purchase a total of 31.4 million shares of common stock. Holders of record as of April 10 will be eligible to subscribe for the offering. ATT said it expected to start the mailing of rights certificates and a prospectus covering the offering on April 13. On that day, the company will establish the interest rates on the bonds. The company said the rate would be "generally comparable with the going rate on Bell System issues at that time, with the intent that the initial market price of the debentures, exclusive of any value for the warrants, will be approximately equal to their principal amount." THE PROFIT SQUEEZE Most Blue Chips NEW YORK (AP) Many, but by no means all, of the big blue chip corporations appear to have resisted the 1969 profits squeeze better than their smaller and, in some instances, marginal cousins.

An analysis of 559 companies, all listed on the New York Stock Exchange, shows that profits dropped 10.89 per cent from a year earlier. The 10 largest these, however, showed decreases of only 5.39 per cent. Big variations were noted within the biggest 10. General Motors and Gulf Oil fell 14.43 and 15 per cent respectively. But increases of 3.65 by American Telephone and 5.32 by Mobile Oil buoyed the During the recent years of growing inflation, it was often the marginal companies that were best able to take advantage of rising prices, and, in many instances, their stock prices also soared sharply.

Many of the larger, established companies were unable during these years to show strong earnings improvements and, as a consequence, their stock prices languished in the shadow of the so-called glamor stocks. The companies examined in the survey represent close to one-half of those listed on the big board. All reported earnings before mid-month, and the figures were then analyzed by Wright Investors' Service, Bridgeport, Conn. Adjusted for ersoion of the dollar because of inflation, the profit figures look even worse. The profit decline of 10.89 per cent, for example, grows to 16.05 per cent when stated in terms of 1968 dollars.

only industrial companies are included in the analysis, the earnings decline comes to 14.69 per cent, or 19.C3 per cent adjusted for inflation. In restating last year's figures to make them comparable with 1968 returns, the apparent boom of 1969 begins to sound like more of a firecracker, and a small one at that. The total of all goods and services produced familiarly known as the Gross National Product rose by 6.79 per cent in terms of inflated dollars. But adjusted, the increase is shown to be less than one percent. Likewise, the 8.3 per cent sales increase for the first 559 big board companies to report their earnings shrinks to 2.2 per cent with inflation wrung out of the figures.

Evidence that the older and larger companies managed to retain more stability than smaller and newer firms is demonstrated by analyzing returns of the first 20 companies whose shares go into the Dow Jones Industrial Average. At first glance, the figures of these blue chips appear to show a disaster, with earnings down 29 per cent from 19G8. Eliminating Chrysler however, and averaging out only the first 19 to report, the decline shrinks to 4.G per cent. Chrysler earnings plunged last year to million from $290.73 a year earlier, including a loss of million during the final quarter of 1969. Declines by Chrysler and the other major automotive companies made that group the worst in performance, relative to 1968.

Aerospace was close behind for the booby prize, with transportation and diversified companies also doing poorly. The best performing industry group, based on reports to mid- month, were metals producers, with earnings gains of 29.5 per cent, financial with 12.03, drugs 11.42, electrical 8.01 and paper 7.52. In general, the analysis shows that while companies maintained their sales near or above those of 1908, their profit margins shrank. The automotive industry, for example, had a mar gin of 7.Gfi in 1968; last year it shriveled to 1 per cent. Reluctant Taxpayer My family sold part of a larger parcel of land in 1963.

The title company goofed, and title to the whole piece was transferred in error to the buyer. Last month, we finally received back a quit-claim to that part of the land which had not been sold. Now we can market that piece of land. But how do we measure the capital gain? Is the holding period measured from the date we originally bought the larger parcel (1954) or the date it was quit-claimed back to us? And what value do we put on the land for measuring the gain: The cost in the value when the title was mistakenly transferred 'in 1963 or.the value when it was quitclaimed back to us this The answer to all this is beyond our knowledge, but the difference in values at the various dates is enormous. By WILLIAM L.

RABY A The title company's mistake doesn't change the tax consequences. You owned the land all along for income tax purposes, even though it might have taken legal action to establish your title. You will measure your holding period from 1954 and your gain will be based on the difference between what you sell the land for and what it cost you in 1954. In years past, I have "borrowed" from the Internal Revenue Service by sending in my 1040 without enclosing a check. In a month or so, IRS would bill me.

But I would wait. When they sent me a second notice a few weeks later, I would finally pay. I did not, mind Baying the 6 per cent interest IRS charged. Especially since I was able to deduct the interest that I paid on my next return. However, I understand that in addition lo the interest I now will also face a penalty of 5 per cent per month (up to a maximum of 25 per cent).

A The Senate version of the 1969 Tax "Reform" Act said it just like you said it. But the Senate-House conferees watered the penalty down so that it is now about as much a penalty as mini-miniskirts are skirts. The penalty is .5 per cent instead of 5 per cent that is of 1 percent per month. The interest charge is an added .5 per cent per month. Not sending in your check with your 1969 1040 return will thus cost you the equivalent of 12 per cent per year, of which only half (the interest part) will be deductible on your 1970 return.

Copyright WO Food Powder Experiment Is Proposed LOS ANGELES (AP) A 32 million pilot project to determine if the hake, a Pacific Ocean bottomfish, can be turned into a cheap, high-protein food powder will be undertaken by three Los Angeles firms. The project will be located near Aberdeen in the Grays Harbor area of Washington State, on a acre site provided to the federal government by the local park district. Ocean Harvesters Inc. will build and operate the plant, to be jointly owned by Sweco Inc. of Los Angeles and Star-Kist Foods Inc.

of Terminal Island, Calif. Pima Tops State In Silver 15.V KICIIA1U) E. WILBUlt Citizen Business Editor Leading the state in production of silver and gold is Pima ounty, Arizona's top copper producer, a report from the State Mineral Resources Department said today. Pima County produced 40.5 cent of Arizona's silver in 19(58, latest year for which figures are available, according to the report. The stale agency listed Final County as ranking next, with 15.8 per cent of the state's silver production.

Gold production in Pima was 30.5 per cent of the state total. Next largest producers weix- Cochise County, 25.1 per cent, and Final, 24.5 per cent. In copper, Pima led with 33 per cent of the total produced in Arizona, followed by Final, 22.8 per cent, and Greenlee, 17 per cent. Molybdenum recovered in Arizona mostly as a byproduct of copper production, as arc gold and silver continues to increase in importance in the slate's mineral economy. Value of molybdenum production in Arizona was $19.2 million in 196S, a threefold gain over the I960 value, the state mineral resources agency said.

For 1969, the preliminary estimate is $20.7 million, 8 per cent above the 1968 total. Silver production in the state was valued at $10.6 million in 1968, and gold production at million. South of Tucson, two new mines will "add materially to Arizona's molybdenum output in 1970 and beyond," the state report said. They are Duval Sierrita Mine, about 30 miles from here, and Anaconda Twin Duties Mine, 24 miles south of Tucson. Seven of the 25 largest gold and silver producing mines in the nation are in Arizona, according to the state agency.

Reports of "two rich silver strikes" in Arizona "got into news media and caused considerable excitement in 1968 and early 1969," said the mineral resources agency, adding: "One, at Tombstone, did not hold up but the mine is being operated in a small way. The other in the Kofa Mountains was greatly exaggerated." Of the Tombstone report, the stale agency said Austral Oil Co. of Houston stopped exploration and development of the Sanla Ana Mine, gave up its lease and option agreement, and the owners, Ernest B. Escapule and son, later resumed operation. The Kofa Mountains strike and aftermath was described this way in the state report: "In early 1969, a rich silver strike was reported by Continental Dynamics Inc.

at their Black Diamond property in the Kofa Mountains in Yuma County. Early reports by Continental, a subsidiary of Dyn-0-Tex of Amarillo, put the mine's value in the billions of dollars. "By October, the earlier excitement had subsided and four men were reported working some small silver veins." Hobo Joe Shop Opens Photo By Gary Towner New Eatery Opening today at 2701 E. Broadway is this new restaurant, operated by Broadway Restaurants Inc. Henry Kirkwood president, helps a Hobo Joe statue offer greetings.

New Industry Slated To Outline Plans Here Announcement is to be made at 4 p.m. today of "establishment of a new research, development and manufacturing operation in Tucson," according to the Development Authority for Tucson's Expansion (DATE). The forecast is in invitations sent out by DATE'S board of directors. Recipients are asked to attend a reception "honoring officials of a major national corporation who will announce" the project. Karl Meyer, DATE'S executive director, declined to identify the corporation or give any delails of the operation prior to the 4 p.m.

reception. He said at least 100 invitations had been sent, moslly lo business leaders here. Plans of a small electronics firm to move here from the West Coast, and to hire initially about 10 persons, were discussed earlier this month at a meeting of Tucson Industrial Development Enterprises Inc. (TIDE). The electronics company is a subsidiary of a major national TIDE president Joseph B.

Wilcox told the meeting. in Saturday's Citizen CASH FLOW DOWN? BUSINESSMEN: WE WILL BUY THOSE PAST DUE ACCOUNTS RECEIVABLES TODAY. NOTES AND JUDGEMENTS ALSO BOUGHT. TELEPHONE OSCAR HUNT- 624-0419 (MORTGAGE AVAILABLE FOR GOOD PROJECTS Contact Mr. Robert Brown TUCSON flEflLTy "Since i i a L)uW 20 SO.

STO.M-, I (2 1-1 INSTANT PRINTING CENTER SPECIAL-- 100 PRINTED COPIES 79 1000 PRINTED COPIES WHITE BOND PAPER "t'XCCLLfNT PRINTIHG WHILE-U-WAIT!" Call 327-1761 2520 N. Campbell Tucson He declined to identify the com pany or corporation. He said the firm was "generated as a prospect" for Tucson by DATE. Dry Copies faiter, easier, and at lowtr cost Copies everything, Even 3-dimensional FETTERLY'S Office Equipment K. Hnimlwjiy The first of three Hobo Joe's Joffee Shops opened its doors today at 2701 E.

Broadway. The Mesa-based firm "will lave three shops in Tucson with- 18 months," said Henry Kirk- vood Jr. president. The building has 4041) square eel under roof and cost approxi- mately $250,000, not including the land. Tucsonian Murray; Garland will manage the restau-' rant, which will employ 50 pei sons.

The coffee shop will feature sit-down dining for the family; with widely varied, moderately priced meals available, said Kirkwood. I'licifir I Co. I a Tiilc llllje. Tucson, Arizona 6 2 3 1 7 1 Bid Asked linn Savings Great Western Bank Kalcienbaugh Mortgage Tucson Dnt; Center Inc. IVi 6 ft .65 Sli it on to nor felicitation of OA offer buy the ncuriliei herein Tradings lo iiono- PriCM ind-caled approximate.

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PoliroM, Xerox, fairchlld. Tins Gulf, ZM- ln, XTfM, Fill out ing; (2) Model Stock Portfolios (3) Ou; ind return Ifit coupon today. No utuman Mailer Llit of Ricommendetf Stocks: (4) Ou will call. tubicrlbin only.) MAIL COUPON DOW THEORY FORECASTS, TSC 2-24 P.O. Box 8309 Chicago, Illinoii 60680 PlMii und mi prompt roui inicifle lirj-Sell-HiH fticinniadatiuii Oi 111 I nun ind inter my trill lubscrlpllon to Dow Theory forecasts for the next 4 wejki.

I uniJiriUnd li i vilui il rteuiar sutscripiion rjtts hul I enclose Jl In full payment which will bi refunded If I am not lalislled. I also ttntterstind I am to ticciii as part ol this olfer, your 2 Llstl "I Slicks Tl Split tiftri Jirni 1" and your advice on "22 Valatili luuu." thli li only i liiil-no other obligation. (Cannot aislgnid without mi constnL) NAME ADDRESS cm ZJP. WESTERN-SOUTHERN LIFE 8 2 A A A DECEMBEK 31,1969 ASSETS Cash on Hand and in Banks 41,365,442.53 United Slates Government Bonds 14,759,024.59 Municipal and Corporation Bonds 258,233,770.27 Stocks Mortgage Loans--Guaranteed--FHA VA Mortgage Loans--Other Home Office and Regional Office Properties Investment Real Estate Policy Loans Accrued Interest and Rents Net Due and Deferred Premiums, etc 15,441,373.98 ,040,282,458.79 110,977,104.42 27,797,002.91 13,589,902.04 72,535,299.88 10,211,209.14 65,361,308.96 TOTAL 1,770,553,897.51 LIABILITIES Statutory Policy Reserves 1,512,638,439.00 Policy Proceeds and Dividends Left Company Policyholders Dividends Payable in 1970 Policy Benefits Currently Outstanding Premiums and Interest Paid in Advance Accrued Taxes Payable in 1970 Funds Held in Trust Other Liabilities Security and Mortgage Loan Reserves SURPLUS 29,102,731.55 18,854,953.3.26,200,915.89 7,834,769.32 5,517,556,22 16,705,738.79 16,274,857.56 21,188,384.56 136.235,551.30' TOTAL $1,770,553,897.51 INCREASE IN ASSETS 85,294,764.18 SURPLUS AND SECURITY 157,423,935,8.6 INSURANCE IN FORCE WESTERN-SOUTHERN LIFE INSUKANCE COMPANY CINCINNATI, OHIO A MUTUAL COMPANY WILLIAM SAFFORD, PRESIDENT.

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