The Baltimore Sun from Baltimore, Maryland • 31

MARITIME FINANCE SUN PAGE C7 PAGE CT BALTIMORE, FRIDAY, AUGUST 27, 1071 Emergency Or Not? HONEYWELL StrikeE ffect Debated InHawaii TRADE GROUP GETS ILA BIDS ONNEWPACT But City Meeting Ends TO SPLITINTO 2DIVISI0NS STOCK VOLUME DROP' DURING DAY Profit Taking Blamed As DJI Declines! 2.27 To 906.10 GE Computer Merger ith No Date Set For Talks Tq Begin Operation Cited In The New Plan Minneapolis W-Honeywell, yesterday announced a far-reaching reorganization which splits the company into two divisions, one for computer operations and the other for en vironmental controls. New York W-Stock market prices slipped slightly yesterday under the weight of profit-taking pressure. Trading was moderately active. The Dow Jones average of 30 industrials closed off 2.27 points at 906.10. Declines on the New York Stock Exchange led advances by a slender margin.

In the loss column were airlines, steels, rubber issues, and metals. Motors and drugs were higher. All other groups were James H. Binger, board chair Bjr JOSEPH S. HELEWICZ Baltimore representatives of the International Longshoremen's Association met with their employers yesterday to deliver "portions" of the dock workers' local proposals on a new contract.

But before the 30-minute meeting ended yesterday morning, issues concerning the master contract were brought out, and the meeting was concluded with neither management nor labor knowing when actual contract talks would be initiated. A spokesman for the Steamship Trade Association the Baltimore group that represents the The Honolulu City Council filed without action Tuesday a resolution that called for the council to promise to consider legislation to aid Mr. Fasi in his plan. Opponents of the resolution said they wanted to wait and see what the mayor had in mind. Although Mr.

Fasi declined to detail the plan he was putting to the ILWU, it was believed to involve the city chartering up to eight ships for use, with union co-operation, until the strike ends. Mayor Is Not Encouraged After his first meeting with ILWU President Harry Bridges Tuesday, the mayor admitted he was not encouraged by the union reaction. Mr. Fasi also planned to discuss the plan with the employer group, the Pacific Maritime Association. Negotiations continued for a second day between the ILWU and PMA in San Francisco.

The head of the state's emergency food division, agriculture director Fred Erskine, said latest surveys indicate no critical shortages in Hawaii's food supply, but said some basic food items are running low. With the outset of the strike July 1, wholesalers began air freighting in merchandise and passing the added cost on to the consumer with price hikes. The prices were frozen in keeping with President Nixon's economic program and state officials fear the merchants will discontinue bringing in goods if they are forced to bear the higher air freight costs. Mr. Burns telephoned John B.

Connally, Secretary of the Treasury, Tuesday asking that Hawaii be exempted from the price freeze. The Chamber of Commerce of Hawaii also appealed to Mr. Connally for an exemption from the price freeze. Honolulu UP) Does a state of emergency exist in Hawaii as a result of the eight-week-old West Coast dock strike? Mayor Frank F. Fasi of Honolulu says yes.

Gov. John A. Burns says no. Political groups and businessmen are lining up on both sides. Mr.

Fasi declared a state of emergency Monday, saying the strike has a stranglehold on Hawaii. He then flew to San Francisco to meet with International Longshoremen's and Warehousemen's Union leaders with a plan he hopes will bring a resumption of shipping to the islands for the strike duration. Mr. Burns, a Democrat as is Mr. Fasi, disagreed that a state of emergency exists, but did agree that the strike "poses a threat in jobs, inconveniences and is harmful to our economy.

"We have enough food, staple items and medical supplies," Mr. Burns said. The situation has not reached the point where he would consider an emergency law that enables him to charter ships to bring relief, he said, adding that he's watching the situation closely. GOP Support Picked Up Mr. Fasi's stand gained the support Wednesday of Republican elected officials who credited the mayor with stepping "into the statewide leadership vacuum created by the governor's inaction." "Surely no responsible person, least of all an elected, public official, can now fail to recognize that we are facing an emergency," said a GOP statement read by State Senator Fred W.

Rohlfing. The Republicans said Mr. Burns, who has always had political support from the ILWU, should use his "immense influence" with the union to try to reach a solution to the strike. man, attributed the move to "the successful completion of the merger of the Honeywell and General Electric computer businesses and the changes in corporate structure and philoso mixed. phy which became desirable as a result of this." Each of the operating units, to be headed by a vice president, longshoremen's employers declined to discuss the contract will be as autonomous as possi proposals.

He said the organization was given "a portion of the ble by reducing corporate staff functions and control to a mini dock worker's! demands," ex mum, said Mr. Binger. plaining that he expects to have 2 Businesses Noted The Information Systems will include all computer operations while the Control Systems will the remainder of the proposals a week. No Meeting Date Set "But no meeting date Ito dis ROUP'S ON! But not exactly rice soup, despite the similarity in appearance. This soupy-looking mixture is nylon chip resin being spot-checked during processing operations at Firestone Synthetic Fibers Company in Hopewell, Va.

Chips from this stage are dried, then melted and spun into textile nylon yarn for use in making hosiery and lingerie. Yarn is one of 44,000 diversified products of parent Firestone Tire and Rubber Co, include environmental controls Previous Gains Profit taking had been expected because of the huge gains scored by the market in response to President Nixon's economic address 11 days ago. The Dow Industrial average over an eight-session span had advanced some 52 points by the close of trading Wednesday. Analysts said the profit taking was partially offset by the new3 around midsession that a St. Louis bank had cut its prime rate, the interest charged by commercial banks to their most credit-worthy corporate borrow-.

Shortly thereafter the market turned upward only to pull back somewhat later in the session. Consolidation "The cut in the prime rate only temporarily disrupted a broader framework of profit cuss the contract has been for homes and buildings, in CARGO STUDY SET set," according to James M. Fortune, manager of the trade dustrial automation and aero New York's Chemical Bank Cuts Consumer Loan Rates space and defense activities. association. He estimated that Information Systems is head BY HOUSE GROUP the combined submission of additional proposals, a review of Department Stores To Open ed by Clarence W.

Spangle and Control by Edson w. Spencer. the union's demands, and the filing of a counter-proposal may Garmatz Unit Will Explore For Labor Day Shopping take several weeks. The longshoremen's contract, Aids To U.S. Shipping "As our business has evolved and grown we have found that we are in essentially two businesses: the computer-related information systems business and our diversified controls busi which covers dock workers in By RALPH SIMPSON ports on, both the East and Gulf All Hecht and Hochschild, By Sun Staff Correspondent Washineton-The procure Kohn stores, including those Coasts, expires September 30.

Following, yesterday's meeting, Willis N. Schonowski, presi ment of cargo for American-flag taking," said one analyst. ness," explained Mr. Binger. You're still in a consolidation "Each has special character ships will be the subject oi extensive hearines scheduled next All four big department stores in Baltimore said yesterday they will open their suburban stores for holiday shopping on Labor Day, following the example set last year by the Hecht Company, but only Hochschild, downtown but not the Hochschild's in Columbia, and all Hut-zler's and Stewart's, except the phase." istics and a distinctive operating dent of cargo handlers Local 829, said he "turned over quite a few proposals to the trade," but month bv the House Merchant Among individual issues, Ana environment." and mortgage loan rates at this time would provide a stimulus to the economy as well as helping the individual during the President's 90-day wage-price freeze.

"We, at Chemical want to act on behalf of what we consider a strong program that will contribute to restoring economic health to this Mr. McCall said. Prime Reduced He added that he thought Chemical's move would "in some small-measure help the President's program work a little Earlier yesterday a small St. Louis bank announced a reduction in its prime rate, an action Marine and Fisheries, Commit conda, which announced it major stores on Lexington street, will be open from noon "Single Face" Urged tee. added he is "compiling more." vMr.

Schonowski said that the Kohn and Hecht's will be open He said Honeywell believes it until 5.30 P.M. Hochschild, would omit its third-quarter dividend, closed off 1 at 16. Big Board volume dropped to 13.99 million shares from 18.28 million downtown. union leaders described some of New York (-Chemical Bank cut the discount rate charged on all its consumer loans Vi per cent yesterday and reduced home mortgage rates to 7 per cent from 1xk per cent, effective immediately. The reduction in the discount rate was equivalent to about 1 pef cent on an annual percentage rate basis.

"Actions' speak louder than words in supporting President Nixon's wage and price controls," said Chemical President Howard W. McCall, Jr. in announcing the new rates. Vacation Included "Our rate reduction, as it affects the consumer, will not only extend to his new car purchases, but also to property improvement, vacation and other personal loans," he said. Mr.

McCall said that Chemical Bank felt a cut in consumer can assign the large business Edward A. Garmatz chairman of the committee, said vesterdav that within the next the proposals to the trade asso Kohn's new branch in the Columbia Mall will be open from 9 entities a very full authority for self-determination without jeop two weeks a tentative list of ciation members, but "they began questioning our right to in A.M. until 6 P.M. ardizing the principle of showing Louis B. Kohn 2d, chairman of the board at Hochschild, Kohn, said his store decided to open on the holiday because "We can't give the other people the fran witnesses "from 1 all segments volve ourselves in the master of the American economy as "a single Honeywell face." In another announcement, Mr, well as the government" will be A spokesman at one of the stores said the trend was nationwide, adding that shoppers preferred to shop in the suburban stores where they feel more chise to our business.

It's a part Binger said Richard L. Post had been elected a corporation vice contract! items." Those items, which include money packages, length of the contract and other provisions applicable to coastwise negotia compiled. i Objects Outlined He said that shipping compa hies of associations, representa shares Wednesday. Of the 1,115 issues traded on the American Stock Exchange, 66 declined, and 370 advanced. Amex volume declined to 3.22 million shares from 4.04 million shares Wednesday.

Amex Issues The most active Amex issue was McCulloch Oil, off at 29, on a volume of 98,700 shares. Other issues on the most-active list included Western Union setting off a series of strong president, in addition to his posi comfortable in dressing casual of being in competition." He added that Hochschild's included its Lexington street store in the new policy because "we wanted to do it whole hog if we tions, have yet to be extensively tion as secretary and general counsel. Edward R. Marshall, ly. statements, from officers with larger banks who said the move was premature.

At the Hecht Company, how corporate controller, also be tives of American industry, government agencies and representatives of organized labor will be called upon "to lay be discussed in New York, where, traditionally the master con-( Continued, Page 9, Col. 1) I. A. Long, president of the ever, an official said he thought did it at all." came a vice president. fore the committee what is International, off 2 at 33y2; Rich- shoppers were attracted to downtown on the holiday because of the light traffic and plentiful parking facilities.

"It's really a dream to find conven Tax Credit Windfall' Seen Successful Investing ton International, off 1 at 15; and Weil-McLain, up 1 at 2278. Corporate bonds and govern being done, what cart be done, and what must be done to insure the success of the new maritime program. 'We will confine these hear President Of Marriott ient parking downtown," he By said. ments were higher. spear By ROGER Southwest Bank of St.

Louis, said his bank's cutting its prime rate to 5 per cent from 6 per cent was a move to support President Nixon's efforts to con-trolinflation. Loan Rate Cut extend Southwest Bank's prime rate reduction to the man on the street, the bank is also reducing the rate on new loans to individual customers," Mr. Long said. xS our considered judg ings to the subject at hand, and Question About 5 months Dow Jones Newt Service try to exclude all extraneous ago, I bought shares of Imper Unitec Reports Year Profit up from 35 cents in 1969's similar period. With better product prices, increased exports and rising production expected to prevail, Imperial should remain on the right profit track.

matters. Representative Garmatz said. "At the same time, we intend to explore any peri Washington Marriott Corporation's president J. W. Marriott, Jr.

said yesterday Nixon administration's wage-prize freeze and ial Oil at around $19. Now having a 7-point gain, I am wondering whether I should hold or sell and take the profit. What do pheral areas which could pro other economic proposals will After rebounding during the first nine months of 1971 from near bankruptcy a year ago, Stewart Parent Profit Reported ment i that only teamwork cent from airline and airport catering services. Marriott plans to open about 44 restaurants, cafeterias arid quick service food outlets in fiscal 1972. A total of 33 were opened, in fiscal 1971 bringing the number to 302.

The company last year halted franchising of its Roy Rogers roast-beef restaurants and took Question Practically all of you advise? P.M. Answer Hold, for two rea duce more cargo for American ships. He explained that, specifically, the committee expects to Unitec Industries yesterday re across the nation, involving all levels of our society, can bring about a meaningful program for the control of inflation," he said. ported earnings for the fiscal year ended June 30 which reflected another loss during the sons. First, since you have held these shares less than six months, you will pay a substantial capital gains tax if you sell hear testimony concerning the Southwest is St.

Louis's ninth fourth quarter. Alaskan pipeline; the. advantages and disadvantages of bilateral agreements; the admin your holdings now. Second, and the letters in your column deal with questions on medium-priced or high-priced stocks. 1 only have a few hundred dollars to invest and wish you would recommend some low-priced issues that have appreciation potential.

P.L Answer Generally, but admittedly not always, low price means low quality. Occasional a large writeoft on closedowns Although the company did not not have a significant effect on the company's operations although the 10 per cent investment tax credit should be a "windfall" if it is approved by Congress. However the investment tax credit is not, likely to stimulate any more capital spending over the short term than Marriott already plans "because we take anywhere from six months to a year just to select a site" for hotels and restaurants, he said. more important, Imperial Oil of some franchises alreadv largest bank. Closing Is Set shares carry additional potential istration of the cargo preference laws, and the possible extension for appreciation.

For Canal announce fourth quarter results, it said earnings for the entire year were 2 cents a share or $49,000. At the end of nine months, Unitec had reported income of $342,000 or 23 cents a Imperial, 70 per cent owned of cargo preference to areas not now covered by law, including the importation of oil. by Standard Oil of New Jersey, is the largest producer of crude oil and the largest refiner and The Army Corps of Engineers ly, but not frequently, one of these types of stocks turns out to has announced that the Chesa share. Yesterday, a spokesman for the committee, who said that Marriott derives about 40 per be a bargain. In comparison to opened.

"But we should do better this year," he said. Of 10 prof it centers in Marriott's restaurant group, nine turned a profit in fiscal 1971, Mr. Marriott said. Marriott has 15 company-owned hotels and inns and plans to add three more hotels in fiscal 1972. "From June 15 to the present has been not quite as strong in the hotel business as we would marketer of petroleum products peake and Delaware Canal will be closed to all shipping on the one stock which may skyrocket, there are a score or cent of its sales from restaurant and fast food operations, about 32 per cent from hotel opera Wednesday, September 1, from Associated Dry Goods Corporation, the parent company 'of Stewart's in Baltimore and Lord Taylor in New York, reported a sharp gain in net earnings on a slight increase in sales yesterday for the six months ended July 31.

Net sales for the first half were $368,636,000 or 7.2 per cent higher than $343,834,000 for the comparable period a year ago. Estimated net earnings were $8,570,000, equal to 71 cents a share, compared to 41 cents a year ago, a gain of 73 per cent. In the second quarter, earnings were $4,357,000, equal to 36 cents a share, compared to or 16 cents in 1970. Earnings in this year's period were a new high, the company said. In addition to Stewart's and Lord Taylor, Associated Dry Goods operates stores in Los Angeles, St.

Louis, Pittsburgh, Rochester, New York and other cities. Turnaround Noted The 1971 results showed a sharp turnaround, however, from 1970 when Unitec had a net loss of $4,482,000, which was more which sink inglonously 7 A.M. until 8 P.M. into oblivion. tions, and the remaining 28 per in Canada.

Well-positioned the Canadian Arctic, specifically the MacKenzie Delta, Imperial offers excellent participation in Canada's rapidly emerging role as a future North American energy source. me closing was ordered so that the Chesapeake Bay Insti I am very reluctant to make any general or specific recom equal to $3.51 a share. the first hearing is tentatively set for September 20, said that President Nixon's new economic policies are not expected to be brought into discussions. He feared that the hearings, designed to secure more cargo for American ships, would become "a sounding board" for individual problems. tute of the Johns Hopkins University can place measuring de have hoped," Mr.

Marridtt said, mendations on low-priced, speculative stocks because it may While the dollars and cents Sales for the most recent year declined slightly, in line with earlier quarters this year, to $34,721,000 from $38,090,000, a vices within the channel to aid in the institute's study of water "but we expect to have an excellent fall when the convention business begins." part of the Arctic payoff is sev lead to the purchase of such by individuals, like yourself, who currents in the canal area. eral years away, Imperial's present operations are generat year ago, ueorge J. Campbell, can ill afford to suffer any financial loss. Jr. the board chairman, an nounced.

ing record profits. For the first half of 1971 the company report (Mr, Spear cannot answer all, ii mail personally, but will on-swer all questions possibie in EASE YOUR 1972 AUTOMOBILE NOW ed a hefty 43 per cent gain in earnings to 50 cents per share, Yesterday's report was Mr. Campbell's first since he became chairman in March. his column.) 1 rsr T. ROl'E PRICE GROWTH STOCK Take advantage of the 90-day price freeze and repeal of the excise tax by ordering now for early delivery.

We lease any make or model domestic or foreign. The Reception Tor Francis X. Gallagher nominated The Orchid Touch. FUND, HIC. SEVEN STORY GENERAL and PROFESSIONAL OFFICES EM.

iM 6136 Reiittntown Road Baltimore, Md. 21215 A IW-L0AD FUND lliii i in i Jiuro K.WM I OCCUPANCY OctoberNovember, 1972 Investing In stocks selected for long term growth possibilities Individuals institutions are invited to request free prospectus NO SALES CHARGE Self-Employed Retirement Plan (Keogh Act) Available era. LEASE Completely Modem Ample Controlled Parking Unit Controlled Heating Cooling Full maintenance. lie A 72 Foil LESS XI PS passes the savlnas on to vou. So now you can lease a new car for less than ever.

Order your 72 now for immediate delivery. CALL 323-9440 SUBURBIA BUILDING 5604 Baltimore Natl. Pike (at Johnnycake Road) I T. Row Price Grow Stock I One Charles Center, Dept.H3 Baltimore, Md. 21201 For lease information SUBURBIA INVESTORS 606 Edmondson Avenue Baltimore, Md.

21228 Phone 788-5044 (Curley) Public Service Leasing VHiaaaof Cross Kpue flaJlirnnro 0101 mmxm 1LMI ilMIII. I I 752-3000 Answering Service Co. 200 1 lixlngton Strut i fclfciw for evtr 35 year. fa MmmSSSTdL.