Chicago Tribune from Chicago, Illinois • 37

i Section 3A (Ehicarjo (Tribune Tuesday, January 30, 1973 Mr tocks slide a Shultz predicts less inflation in 1973-74 Dow below 1 Statistic on what stocks did ore on page 6. From Trlbuni Wirt Service! NEW YORK, Jan. 29-The ttock market sagged again today in moderate trading and closed at its lowest level since mid-November. The Dow Jones industrial average fell 7.08 0,70 per cent and finished at 996.46 its first close beneath the 1,000 level since Nov. 15, the day after it bad closed above 1,000 for the first time in history.

No specific news developments were responsible for the market's decline today. It has been falling ever since President Nixon announced the details of Phase 3 of his economic program on Jan. 11. THE CUMULATIVE loss in the Dow Jones index since then has been 55.24 points and it has declined in nine of the last 11 market sessions, demonstrating that Wall Street is concerned about the possibility will not trigger a new round of inflation. He observed that these contracts come up in three-year1 cycles, and for the first time in the last few years real earnings have been on the, upswing prior to a series of contract bargaining sessions.

SHULTZ urged the maintenance of discipline with respect to the budget and said the $12.7 billion deficit in the budget to be released later today is necessary to help the economy. In New York City, Herbert Stein, chairman of the President's Council of Economic Advisers, told a meeting of businessmen that the basic thrust of the administration's economic policy in 1973 will be to slow the rate of economic expansion to avoid a new outbreak of inflation. two trouble spots in this prospect." HE SAID one is pumped-up federal spending that would "release the same forces that caused earlier inflation" and a continued rapid rise in food prices. Shultz said the administration will resist both these dangers vigorously. He observed that the antiin-flationary policies of the last four years have sharply reduced the inflation rate.

HE SAID the government will be monitoring Phase 3 so "private behavior will be consistent with the national goal of reducing inflation to 2.5 per cent or less by the end of 1973." Shultz also indicated he is somewhat optimistic that upcoming major labor contracts From Tribune Wire Services WASHINGTON, Jan. 29- Treasury Secretary George Shultz told the Senate Banking Committee today that "prospects are exceedingly favorable for further economic -expansion and reduced inflation in 1973 and 1974." Shultz was testifying before the committee on hearings to extend the Economic Stabilization Act for one year beyond its April 30 expiration. Sen. John Sparkman banking committee chairman, said he is considering legislation to establish specific wage and price control guidelines as part of a one-year extension of the President's authority to impose controls. As for the next two years, Shultz said they can be "the best years in America's economic history but there are of renewed inflationary pressures and tight money.

The New York Stock Ex-change index of common stocks lost 0.28 to 62.77, while Standard Poor's 5o0-stock index was down 0.44 at 116.01. Declines led advances 927 to 512 among the 1,812 issues traded on the New York Stock Exchange. There were 97 new 1972-73 lows and only six new highs. President Nixon's formal budget message today was not deemed a market factor, except to the extent that Wall Street doubts the administration's ability to put a lid on federal spending and to reduce the federal budget deficit. VOLUME on the New York Stock Exchange totaled 14.68 million shares, down sharply George Shultz best years ahead.

Tsai quits as head of mutual fund firm from 21.13 million Friday. It was the slowest session since Dec. 26, when only 11.12 mil ONE OP THE star money (managers of the "perform-pnee" era of mutual funds in (the late 1960s is leaving the Marriott plans big park G. D. Searle net, sales seen at high lion shares changed hands.

The reduced volume encour aged analysts who had been waiting for the selling pressure to abate. Nevertheless, an apparent absence of bids indicated that most of the buying power was sticking to the sidelines, so prices continued ed a net loss of $397,000 after extraordinary items for 1972 compared with a net loss of $13,631,000 a year ago. Operating revenues rose to Tsai Management Research Corp. yesterday said Khat Gerald Tsai Jr. has tendered his resignation, effective (Feb.

28, from the mutual fund management company he founded in 1966. According to the announcement, Tsai intends to enter the brokerage industry and is negotiating to acquire controlling Interest in a New York Stock Exchange member firm. TSAI Management was ac to slide. The investment community has been concerned about the $319,238,000 from $301,569,000, but, the company said, sales market's inability to rally, especially in the face, of such fundamentally bullish news as were outpaced by expenses, resulting in an operating loss the cease-fire in Viet Nam, of $6,031,000 in 1972. and today's performance of fered little consolation.

Gerald Tsai Jr. seeks new 'approach Nicholson characterized Tsai as "an outstanding young man" who had made outstanding contributions to CNA. Tsai also resigned as president of five funds, for which the management firm acts as adviser or distributor. By Alvin Nagelberg Real Estate Editor MARRIOTT CORP. is planning to build a giant theme park similar to Disneyland in Anaheim, CaL-on 650 acres of land near Gurnee, it was disclosed yesterday.

Marriott officials met with leaders of the tiny village in Lake County last night to discuss annexation of the land at Interstate 94 and Route 132. The amusement center, called Marriott's Great America, is expected to open in the spring of 1976 and attract 2 million persons a year from Wisconsin and Northern Illinois. MARRIOTT WILL spend $40 million on the initial development, said Tom Burke, vice president of corporate affairs for Marriott. Planning for the amusement park was disclosed exclusively in The Tribune Aug. 23, 1972, when it was revealed that William Brown vice president of Arthur Rubloff was assembling land for the THE BIG-Board's volume other 80 acres will be used for parking.

FUTURE PLANS call tor the development of a specialty plaza featuring restaurants and shops, a hotel, and light industry or a research and development park. There will be large areas of green space, Burke said. The theme park will employ 250 persons full-time and 1,500 on a part-time basis. The park will be open seven days a week during summers, and only on weekends in the spring and fall. It will be closed in the winter.

Marriott has established a separate division to handle the development of theme parks. "It's part of the corporate strategy to take advantage of the greater leisure time of families," Burke said. There has been a boom in family-oriented entertainment parks to replace the "thrill and spill" centers such as Chicago's Riverview Amusement Park, which has been razed and turned Into an Industrial park. The theme park will be one of three developed by Marriott. Another has been planned for the San Francisco area.

Marriott had intended to build an 800-acre amusement park at Columbia, but pulled out in the face of community resistance. A new site is being sought in the Baltimore-Washington, D. area. BURKE SAID the amusement center at Gurnee will be subdivided into sections and feature themes relating to various aspects of American heritage. Each section will have rides and restaurants keyed to an individual theme.

One area may resemble New Orleans, another the Yukon, he said. The full plan has not been developed yet. In charge of the planning is Randall Duell Associates, which has worked on Disneyland, Six Flags over Mid-America near St. Louis, and other theme (v The rides and restaurants in the Gurnee park will only cover 80 acres of the site, tho it could be expanded later. An The company added that the 1972 extraordinary item of $963,000 represented charges from certain unneeded rail quired in August, 1968, by CNA Financial Corp.

Elmer L. Nicholson, chairman and president of CNA said that "Gerald felt he wanted to take a sew approach in the investment world. We have gotten along very well in the past." leader was Automatic Data Processing. After a delayed opening it closed at G. D.

SEARLE Co. yesterday reported that preliminary results indicate sales and net earnings reached record levels in 1972. Also, the company announced it will recommend a 3-for-l stock split. Net earnings totaled or $3.03 a share, a 16 per cent gain over $36,004,000, or $2.62 a share, in 1971. Sales rose 20 per cent to $271,878,000 from $226,891,000.

Fourth quarter net earnings were $12,088,000, or 88 cents a compared with or 79 cents a Share, in the 1971 period. Volume increased to $77,615,000 from $63,237,000. The company said the stock split will be recommended to stockholders at the annual meeting April 28. It would apply to shares outstanding May 11, 1973. CHICAGO MILWAUKEE parent company of the Chicago, Milwaukee, St.

Paul 4 Pacific Railroad report- road properties retired at Spo down $5.50 on top of Friday's kane, Wash. loss of $11.87. Brokers said it was one of the stocks investors KENNECOTT Copper Corp. said net earnings for 1972 de had been avoiding lately because of high price-earnings clined to $47.4 million, or $1.43 ratios. a share, from $84.9 million, or Gulf Oil and Texaco were $2.56 a share, a year earlier.

second and third on the active list, but were unchanged. Gulf Sales totaled $1.17 billion, up from $1.07 billion in 1971. Ken-necott said earnings were at $26.87 and Texaco at $41.50. A.T. T.

warrants were off trimmed by expropriation of mines in Chile and liquidation 37 cents to $8 and A.T. T. common was off 12 cents at $53.12. International Tele of properties in Cleveland. phone, eighth-most-active, dip ped 12 cents to $54.62.

Business ticker THE DOLLAR plummeted to a new low of 3.634 to 3.645. Swiss francs in Zurich yesterday, six days after the Swiss National Bank ended support of the dollar. Dealers could offer no specific reason for the decline. ALLSTATE INSURANCE Co. has added Ford Motor Co.

and Volvo cars to its list of 1973 models which will qualify for 15 per cent discounts on collision insurance available to cars capable of withstanding a barrier impact at 5 m. p. h. front and 2 miles rear without damage. SUNBEAM CORP.

expects to report record sales and earnings in its third fiscal quarter and nine months ended Dec. 31, R. P. Gwinn, chairman, said. The report will be Issued in mid-February.

A year earlier, Sunbeam reported third quarter operating earnings of $6.5 million, or 55 cents a share, on sales of $159 million, before a special charge reduced net to $6.2 million, or 52 cents a share. In the nine months It earned $13.8 million, or $1.17 a share, on sales of $349.7 million. THE JAPANESE finance ministry approved the establishment in Japan of a wholly owned subsidiary of Montgomery Ward Co. The new firm, Japan Montgomery Ward, is capitalized at $260,000. DIRECTORS OF Wleboldt Stores, declared a 5 per cent stock dividend and a Vlx cent regular quarterly dividend, both payable April 1 to shareholders of record March 9.

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