Independent Star-News from Pasadena, California • Page 40

C.10-- INDirtNDINT STAR-NIWS, SUNDAY, JAN. Jl. ml San Gabriel Valley Business Scene By CHARLES STERIINC Anil Editor IN CM- Products Under Development a I Wham-O Edward E. Heaclrick. vice president-general manager ol Wham-O Manufacturing Co.

in San C.abriel, told a i of stockholders last week dial 3S products arc now in various stage? development wliicli will enable Hie firm lo equal or exceed 1967 sales of 511.011.227.and earnings of $1,111,077 during the fiscal year ending Sept. 30 of Ihis year. lleadrick pointed out Ihat sonic of the products will not be marketed unlil 19G9 bul said that a new system of fluorescent lighting now being lest marketed by Wham-O for Mentis Electronics and Development a subsidiary, is gaining wide reception due to an exceptionally low power drain. The product is adaptable (or (he home, trailer, camper, boat or aircraft and opens a new field ol endeavor. Wham-O shareholders voled lo increase authorized capital from 1 million shares of common slock, par value of 50 cents, 5 million shares "lo mce! possible future corporate needs." Directors A K.

IMelin. Richard P. Knerr, Kenneth A. Millard, Thomas H. Wells and Ben G.

Sumnci were reelcclcd lor the ensuing year. ROYAL INDUSTRIES, with corporate headquarters in Pasadena, has completed acquisition of Hulchinson Manufacturing a Kansas-based manufacturer of agriculture equipment. The transaction was made for Royal common slock and will result in a pooling of interests. Hutchison sales are approximately 5-1 millioj'i annually and the acquisition i.s in keeping wilh. Royal's expansion into the agricultural equip- menl field.

In of 1H57 Royal acquired Ilinson a a ing Co. ot Waterloo, la. with sales running al an annual rale In excess ol $6 million. -A- VSI CORP. of Pasadena reports a 20 per cent gain in net Income on a 16 per cent increase in sales (or the six months ended Dec.

31. 1967. Net income lor the period was $1,867,831 or 68 cenls per share on 2,730,802 shares outstanding. This compares with nel Income ol 57 cenls a share on 2,721,402 shares outstanding for the equivalent six months ol 1966. Per share figures are adjusted lo relied a two-lor-one split effective in November of lasl year.

BURROUGHS COR1 1 reports orders for commercial electronic data processing systems, mosl of them a a at me Pasadena facility, arc 75 per cent above a year ago. The Pasadena facility is the largesl Burroughs operation in the and employs 2,800 persons, a gain ol 60 per cent in the past year and nearly double a of two years ago. CITIZENS COMMERCIAL TRUST AND SAVINGS BANK has. elected M. K- Stevenson to vice president and manager of the La Canada office.

He has been wilh Citizens since 19M and entered banking at Tucson, Ariz, in 19-11. SANTA FE RAILWAY has announced the pending retirement of C. P. McPake of South Pasadena afler 47 years of service. Assistant general freight agent at.

Los Angeles since 1930. McPake joined Santa Fe In (Jie general freight office in 1020 and his entire career was spent in that field. THE PASADENA BOND CLUB, the oldest organization of Its kind on the Pacific Coast, will hear Mason Phelps, president of VSI at the regular monthly meeting scheduled for Monday, Feb. 5, al the Huntington-Sheraton Hotel. SEAHS, ROtBUCK CO.

has begun distribution of 1968 spring and summer general calalog. The newest edition has 1,596 pages and offers a number of innovations in the sporting goods, clothing and houseware dcparmienls- ITT CANNON ELECTRIC, a subsidiary of International Telephone and Telegraph elected W. M. Wochos ol Pasadena to president of Ihe firm succeeding James A. Yunker, group general manager.

Wochos joined the ITT division in 1961 as general manager ol a Phoenix, Ariz, facility and moved lo Los Angeles in 1963 as director of engineering. He became director of operations in 1965 and was elected a vice president later that year. In 19S7 he was named executive vice president. VAN DE KAMP'S appointed Lois J. Hoover of Pasadena to director of sales supervisors for the 53-year-old foods service organization.

Miss Hoover succeeds Mildreth L. Slolfel who retired last month afler 40 years of service. SOUTHERN' CALIFORNIA GAS COMPANY'S $27,571,000 plant budget (or Ihc current year includes $1,627,900 lo provide for Ihc gronlh and development anticipated in the Northeast Division composed of Alhambra, Monterey Fark, Pasadena, Soulh Pasadena, Alladcna, Highland Park, Eagle Rock, San Marino and portions of Ihe San Obricl Valley. A portion ol the budget, mil be used lor additions lo the Pasadena division office and Ihe purchase and replacement of furniture and equipment. -NEW YORK LIKE INSURANCE CO.

named I. Fred Sommers, C.L.U., fo general manager of the Pasadena office. A resident of Arcadia, Sommers joined New York Life in 1956 as an agent and two years later was named an assistant manager. Since 1966 he has been regional superintendent of training with headquarters in Los Angeles. PACIFIC TELEPHONE CO.

will spend just over $400,000 to provide Ibe Pasadena city offices with a modern communications system to facilitate direct dialing to various departments. In June an SSOO.OOO information office will be opened In Arcadia with an initial staff of some 50 operators with plans lo double the work force. Another project scheduled for this year is a $303,000 expenditure for additional (elephone cquipmcnl and services in El Monlc. The projects are a portion of an overall S212.7 million for new conslruction and services lo be spent by the telephone facility in Southern California i 1968. SOCTHER.V CALIFORNIA EDISON CO.

reports record year-end earnings with net income tor the 12 months ended Dec. 31 totaling $99.3 million as compared lo a net $90.8 million for 1966. Earnings per share of common slock were $2.39 for up 6.7 per cent from the $2.24 reported for 1966. Sales of electrical energy totaled 36.4 billion kilowatt- hours In 1967, an 8.1 per cent gain over Ihe 33.7 billion recorded for 1966. CANADIAN PACIFIC AIRLINES has appointed Grant H.

Williams to sales manager, U.S. West, wilh headquarters to be located in San Francisco. A veteran of 25 years with CPA in Canada, Japan and Uie U.S., Williams was formerly district salts manager in Ixis Angeles. ELECTRO-OPTICAL SVSTKMS oj Pasadena will design ani build a special arc hsalcr for Mch-leniperature research under a contract awarded by Die Boeing Co. of Seattle, Wash.

The more lhan $100,000 contract calls for EOS lo design, fabricate and test the arc heater for use in a high-temperature research flow system by Boeing's Missile and Information Systems division, BUSINESS AND JINANC! ATOMIC POWER--The Son Onofre Nuclear Generating Slalion, one of Ihc world's largesl alomic power plants, has been placed in complete operation generating 450,000 kilowalls of eleclric power lor the Southern California Edison and San Diego Goi and Eleclric enough power to supply a city of well over half a million population. The $87 million facility will be shored by SCE and SDGE on an 80-20 basis 5CE holding the larger percenlage. Nuclear components are housed in Ihe huge steel conlainmenl sphere near Ihe cenlor of Ihc photograph. Regency Life Co, Initiates New 2-Way Savings Plan Urgency Lite Insurance Co. of Pasadena, working in conjunction with several Southern California savings and loan associations, lias come up with a new life insurance plan lor savings and loan passbook holders.

The plan cnlilles savers at specified savings and loan associations lo purchase 20-year decreasing term insurance at a savings 2o per cnnl over Ihc company's normal premium rates lor Hie same coverage. Currently Ihe specified savings and bans are Stale Mutual of Los Angeles, Investors Savings, Pasadena Federal Savings, Mutual Savings of Pasadena, and Southland Savings of San Diego. The program, lermed 2-Way Savings Plan, requires Ihe passbook holder to maintain a certain minimum balance in his savings and loan account for a period ol seven years. However, the 25 per cent insurance savings applies for the full 20 years of Ihe policy. Minimum Varies The required minimum balance varies wilh the amount ol coverage.

TlieK are no limitation's on amounts of coverage. For example, under Ihe plan a 42-year old man could have SIOO.OCQ of insurance for S415 a year. Cost for the same protection at Regency's regular rales is S553 a year. Projected over Ihe 20-year term of the policy Ihe savings in insurance premiums amounts to S2.760. Meantime the money in the savings and loan is earning the full prevailing inleresl rale allowed in California, incidentally, only Uie minimum balance need be maintained for seven years, not the interest earned by thai balance.

At age 42 the required minimum balance in the pavings and loan account is 510 for each of coverage. To put il another way, a 42-year- old man with an existing balance of, say, 5400 in a "designated" savings and loan could purchase S40.COO of insurance at 23 per cent off the normal rale--if he agrees to keep S400 in Ihe account for seven years. According lo Glecson L. Payne, Regency's president, the actuarial justification for Ihe reduction in rates lies in the costs of lapsed policies. "When an insurance company puts a new policy on Ihe hooks," Payne said, "Ihe company loses money (high first a commissions to the agenl, underwriting expense, medical examinations the administrative costs of issuing the new policy, This loss is heavy.

Only when a policy is in force far several years does It begin to become profitable. "When a policy is lapsed-and most'lapses occur after the first year when Ihe second premium is due--the insur- Mosl Active Stocks Salei VitaK Lew CIHC Chp. BrnUEl TOVj LiNon In erojto TJ ir, --it McDonD -H'l Am Phclo 7ISJ05 19'i ISVj 42'1 sotrrv m.m sy- a jr.t-r.i 173Ji H2Ji 117 --T3 17'', 17 -4- 'i tPi JSVi llti 13 'i JKi i't iJfj 73 1 i i WHAT MARKET DID TWO TMl PrtT. Ytnr VMrl Wlik wclh Jin 7M ante company lakes a real lops on a i sale. To make up for Ihis, life insurance vales are always adjusted upward lo cover Ihe costs ol anticipated lapses.

From experience, we know they're going lo occur. In short, those people who keep their policies in lorce must pay exlra for Iheir insurance because of those who lapse. "The minimum balance in the savings and loan account is a guarantee Ihat the policy won't lapse. If the policy lapses the insured forfeits the minimum balance." Earns Highest Ttafc "From the saver's point of view it's really a two-way savings. He's acquiring protection a I a minimum.

Meantime his money is earning Ihe highest rate available anywhere- For example, at the rates currently prevailing in Calilornia a i and loans, a $1000 balance would be worth something above in seven years. This has Ihe effect of reducing the ac- a insurance even more." Payne said ho felt Hie plan would have particular appeal lo people wilh existing savings accounts in banks and savings and loans and lo businesses who purchase "key-man" insurance on lop pxnrulivfs. Knr the savings and loan associations involved Ihe moli- valiou is obvious. II serves to help allracl savings' dollars from olher i a i a inslitu- lions iulo Ihe associations. It helps solve one of Ibe biggest problems lacing Sfi-L's, savings account turnover.

Since California SL's compound interest daily, ndlhing is lost by pulling Ihe balance out ol one SL and pulling it another for some kind of "free gill." Also, people lend (o use their savings account like a checking account in some instances, withdrawing and depositing all the lime, to meet current expenses. Financial Whirl By LOU SCHXEIDEH OEcHnei 1114 III 101 furor tilMi llsj II'J HIM hl hi I7 111 KM vwir il 4 il Banking and business leaders accept wilh askance President Johnson's State of the Union Message. They recall a in his fiscal 1M7-68 budget he mentioned a deficit of SS.l billion, asked for a 6 per cent surtax, and ex pressed a a determination to bring about lower interest rales. It is known Ihat (he fiscal 1957-68 budget deficit will be around S20 billion, lie is now asking lor a 10 per cent sur- fa.v, and I rales climbed lo the highest level in 100 years. They also recall mat in his January 1966 Slate of Ihe Union message President Johnson proposed a budget of S112.8 billion including S58-3 billion for defense, and predicted a 1966-67 fiscal dclicil of S1.8 billion, lie also expressed the hope of completely eliminating (lie balancc-of- payments deficit.

What aclually happened was Ilial fiscal 1966-07 spending turned out lo be S125.7 billion including S67.7 billion for (te- tense, and (he deficit was 59.9 billion. As for the balance-of- payments problem, il is slill wilh us and worse a ever. Bluntly, afler a couple of weeks of serious consideration, banking and business leaders accept LBJ's latest Slate of Ihe Union message cum grano salis. But one said: "Betler make a a sack of salt." Top-level banking executives believe I a President Jolmson got Iiimsclf into fiscal quicksand early in 1065 when he simultaneously began esca- laling inlo a major war and proposing a massive social welfare program. That combination, they say, has never been accomplished by any nation.

Today (lie nation is in a fiscal mess tnd accounts for the inflation waves. The only way to bept It Is by. imposition of economic restrictions and higher taxes. What they are driving al is the n.c 1 presidential elections. Many fear Ihat the master politician must pull an economic and fiscal-rabbit out of the ha I Ihis summer or Ihe Democralic Party may b'e defeated In November.

'Hie year 1967 was catastrophic for Ihe nation's fire and caiualty insurance uidus- PAGE C-10 PASADENA; CALIF.VSUNDAY, JAN. aaVi Calm Before Storm? Eurodollar Unusually Quiet By LAWRENCE MALKIN An international dollar market possibly starled by the Russians holds one key to the success or failure.of President Johnson's effort lo hall the U.S. dollar drain. The crucial maikel deals in "Eurodollars," which don't even cxisl in cash greenbacks. They arc hank deposits and bonds in dollars which arc dc- posijetl and circulated only i I i Slates.

Largely outside the direct control of U.S. monetary aullion- lies. Eurodollar's, have played a major role in expanding in- a i a Irade and finance during Ihe past decade. Hauliers Niil Sure The President's curbs on U.S. investment overseas are giving the Eurodollar market Ihe shivers.

Bankers are not a will happen when (Jiis major source of domestic dollars to (ced the foreign Eurodollar market is shut But first indications are thai Hie L'uropwiits Ilicnisclves are trying lo control Ihc market on an international scale, one Dim of Ihc President's program. If Hie market gels out of control, runaway iulcrcsl rales could Ihrcalen all of Europe's currencies, and Ihe American dollar itself. Some authorities say the Eurodollar market began because the Russians held some dollar credits in Ihe mid-1950s and feared they would be confiscated it cashed in the Unil- ed Slates. About 15 years ago. try.

Indications are thai lfl6S may be as bad. The insurance people paid out more than a billion dollars last year on tires, earth- a windstorms, explosions, a continuing string of automobile accidents, etc. Now threats of more race riots loom this year, which could mean giant fire losses. beiore has the industry asked for any government assistance. A ways fell il would encourage intervention.

Now it is asking, the federal government to limit Ihe, industry's liability in civil disorders. The Treasury a along with some members of the House and Senate Tax and Finance committees, want to make all tax-exempt bonds taxable. Bul dealers in tax-exempt bonds aren'l bitter. In fact, one suggests a i with financing necessary to pay for President ever- climbing budgcl rleticit, il would pull out vast amounts of money from, the American public if LBJ got Congress lo make U.S. savings bond interest (ax free for a limited period of years.

Question answered: Knowledgeable financial analysts don't see a i bullish in Ihe President's State of the Union message, nor do Ihcy c.vpect anything bullish out of his budget or economic report. Said one analyst: "The investment air is slill crowded with problems." The uncertainties overhanging Ihe stock market are the Vietnam war, a lax increase, balance ol payments deficit and narrowing of corporate profit margins. All railroads are diversifying into Ihe real estate field. The latest lo jump on that bandwagon is Norfolk Western Railway. It has joined a eslale firm in building an $18 million gardeivaparliient complex in Hammond, Ind.

Financial Analysts whether earnings of the broad- 1 casllng induslry will Ihis year show a lurn-about from the dip last year. Reasons: Klsing operating costs, soaring programming outlays and cautious advertising budgets may account for a protracled earnings squeeze. when there was a dollar shortage, Ihe Russians began'- lending their dollars to banks in Europe at higli interest. II was good business" American investment, military spending, foreign aid and tourism began pouring dollars into the market. Scores of U.S.

banks opened a in London lo profit from Ihe Eurodollar pool. It now totals about S15 billion to $IG billion. The system has advantages disadvantages Ihe i States a foreign 'countries. Because llic Eurodollars are acceptable almost aimvliere in the capitalist ivorlrl, bankers Ihcy demonstrate confidence in the dollar. If the Eurodollar holders lost conti- dencc- they could cash in Ihe money (or gold and-clean out Fort KIIOX-.

The fad Ihat they have nol done so has helped maintain Ihe U.S. gold now $12 billion. But the threat is always there- Speeds Trade For foreigners, Eurodollars provide Ihe nearest thing Ihe world has lo an international currency. The money moves across frontiers wilhin minutes via interbank cables. II speeds international trade and is nol.subject various and conflicting national controls.

About five billion Eurodollars are believed invested'in long- term bonds 16 finance foreign private, and even government, industry. Since the President's pro- gram was Year's Day, the Eurodollar market has been unusually quiet. may. Be realm before the storm. Wilh'their main source of investment dollars' cut, oil, the European branches of American companies are getting ready lo borrow more from the Eurodollar market- than ever.

If Iliey float Hie loans, their demands on a restricted pool can nnly have result higiier interest rales'. Eurodollar rales already are higher than U.S. interest rales by at leasl a percentage point. a happens if runaway demand skyrocket's interest rales to crisis levels of 9 or 10 per cent? Cnuld Cancel (Juins Prof. Rohcrl Trillin ol Yale, a international economist, predicted that foreigners vvhn invcsl in American bonds or keep their money on deposit in New York would pull out Iheir money and put it in the Eurodollar market to earn more in- Iciest.

Such a leakage could cancel Ihe gains ol much of Ihe President's program, aim- ing tor a 53-billion cut in Ihe U.S. balance of payments deficit. U.S. officials concede I a '-such a leakage is a risk. They doubl il will lake place on a large scale.

Bankers doubt it, too. Some say the big rush for U.S. companies lo invesl in Europe was finished by the lime Ihe President dosed the gates. '68 Stock Trader's Almanac Full of Aids to Investors By GKRALD M. LOfcB Almanacs have been used since medieval times lo predict Ihe rising and setting of the sun and moon, the tides' and the like.

There are those thai go lur- Iher and attempt lo predict the weather. lias just been published for 1968 "The Stock Trader's Almanac and Record." This; 116 page hall diary and half le.xl is crammed with investor information. There are some forecasts. The portions devoted to what might happen in a given hour, day, week or month, give Ihe patterns of Uie past. What is the best hour of the day to fill an order? My experience is that there exists a pattern of sorts, ft varies win the slock in question, and whether Ihe broad trend of the market is Up or down.

II can be sensed by the experienced lane reader much better than it can be written as a rule or formula. Mixrd I'criod The almanac takes a mixed period, March 19S4 to July 1967. It considers only Ihe Dow Industrial Average. The editor finds the pattern changing comparing 19G2-C4 with 1967. As it works out Ihe most frequent daily average strength is around 11:00 a.m.

and weakness occurs mosl often at the close. Wednesday noon lends to show the greatest av- a gains, arid Tuesday closes Ihe most decline. January averages the mosl buoyant and June the mosl reactionary. Presidential clec- lion years follow a different pattern, as obviously do any tt-ilh a world conflagralion. Yale Hirsch, who compiled the book, includes brief male- rial on almost every conceivable topic of interest to investors.

There are pages on taxes, forecasts for the possible effects of peace, Ihe influence of the eleclions, leverage, shorl selling, puls and calls, market psychology, etc. The book is unique and in- lercsting if its are understood. If it.is properly ns'ed to spur your own thinking, rather than to supply an automatic answer. My own comment purely from ex'pe I and not backed by any computer research. 1 think I a ordinarily investors do their most concentrated planning at the start of a new year and after Labor Day.

Major events or very un: usual markets will naturally make for extra periods of more than average attention. tax influences are out of the way the January action of individual slocks can be mosl prophetic. This is less true of September. If you i through a chart hook you will nole how rjtten these actions occur. I also do more thinking about their portfolios weekends.

A great deal of material is mailed over Ihe weekend. Thus, Mondays are likely to move jn the major di- rection.of (he market, i.e., up in bull movements and down in bear swings. In my experience Tuesdays lend lo be counter-lrend days. The extra rush of Monday orders have been filled. In a very strong trend, Fridays seem to me to go with the trend.

There are many olher patterns supposed and I i c. There are llxise thai buy soft drink stocks In Ihe fall and sell them Ihe next spring. arc all better labelled as tendencies lhan anything stronger. II also should be understood Ihey are all considered relatively and nol absolutely. al- manac talks of June as a weak month, It only means It is likely to average lower than April or In fact, Uie almanac's projection for 1968' suggests Ihat the year starts at botlom and ends al top with January 1968 Ihe lowest monlh and December the highest.

11 will pay to give some thought lo this subject. We dn have warm days in winter and cool ones in summer. They are always the exception. You might be surprised, the or even points, you might save considering buying during the lunch hour ol a strong uplrend, rather than at Ihe opening or close. The same reasoning applies lo studying Ihe seasons, lax influences, dales ol analysts i earnings statements, etc.

WOPSCHALL A I I 446-4431 The STOCKBROKERS TO KNOW invite you to be their guest ot a free lecture on Tax Free Retirement Plans for Self-Employed-Persons "IN DEPTH DISCUSSION" Time: 7:30 p.m., Feb. 6 Place: 740 E. Green Pasadena Speakcn: Triad Williorm; Jack Herron, piti. Vance Sanderi Co. Thesa lecluni will cover tubjecti 01: How to establish an investment objective How lo select the proper investment for you Market outlook Amplt lime will be allowed, for questions from audience.

Admission is bul you 'musl 'e To make.yours, call our e.fice, or (ill out and maH thii oaverlrsement. Gentlemen: Please register me for your free lecture NAMf; PAINE, WEBBER, JACKSON 4 Memberi of me New York Slock Exchange 740 Ecu! Green St. PoWena.