The Los Angeles Times from Los Angeles, California • 122

HACIENDA Continued from First ra; the iame number of promotional shares. No dividends have ever been paid and no shareholders meeting has 1 1 i The weekly Hit tactions on the Facifia Cot Stotk Exchanf will appear Monday, permitted Its license to terminate by failure to renew. Bayley testified his brokerage house's license here wajS allowed to expire at the time New York underwrit ever been held. former officer of the' Bank of flying; an air taxi service from here to Vegas. Following the committee hearing, Rees said he is puzzled about the corporations' operations.

"Records show the Haciendas are doing good business," the senator elect noted, "but the benefits are They next incorporated THE WEEK IN BUSINESS FINANCE Fler.es One 'Indicator That Indio Hacienda, issuing (XX) cash shares, plus 500,000 ers were attempting to float a $250 million stock issue to promotional shares, plus 8 debentures aggregating America here. Bayley, who now operates hLs multimillion-dollar hotel motel resort gambling empire from Las Vegas, and Wilson, who minds the store at the corporations' headquarters in Inglewood, appeared personally before the finance expansion of the Hacienda string of motels. He $780,000. The securities were not reflected in stock ap Wh sold iri units combining promotional shares held In escrow for management versely affect the cash shares sold to the public. He sal4 j7 the promotional Shares not participate in any divl.y dends until the cash shares have received dividends of at least 5.

In the event of a liquidation, he said, shares en news oour testified the underwrfting fi preciation. Of course, the is merges shares and debentures. No suance or ad many promo dividends have ever been paid and no shareholders nally Tell through because one of the Haciendas is in Ias Vegas and it was felt usiness Finance News Staff committee to vigorously de-l 'meeting has ever been held. tional snares raises questions. "Complaints received by the committee state that the fenrl themselves, ana ineir that a certain amount of stigma was attached to a gam- corporate activities.

No Dividends Finally, they incorporated Hacienda corporations not-be subordinate to' the cash Dissident shareholders who testified Oct. 17 were shares. only have loaned money Bakersfield Hacienda, issu Diing operation. Bayley told the committee he has an 82 interest in the separate organization bitter in their charges andljng 1,350,000 cash shares and After fighting Individual from one to another but also have loaned money to the accusations inai nayiey anu 1 million promotional shares. WilHon.

are running the 11a which operates the gaming corporation which operates Iy with Bayley for more than a year and getting nov where some of the stockholders sot together in No dividends have ever been paid and no shareholders ciendas to suit themselves the Vegas Hacienda's casim, without permitting share controlling interest of which casino in the Las Vegas Hacienda. He said he has a 97 interest in the Vegas meeting has ever' been held. After hearing testimony holders any voice in policies appears to be In Bayley's the summer of 1961 and hands. Strip's' plush New Frontier! and in transactions involve ing, finances. They also ex formed a shareholders tective association as pro that the state corporations commissioner has refused on several occasions to grant the Package Deal pressed alarm Bayleyand "In a 1 1 1 0 passenger! Wilson have made intercor Hotel.

Nevada Resort And he has used Vegas Hacienda funds, he testified, to buy up thousands of acres porate and other loans with out the knowledge of ap vided in the Code, were granted incorpo-; ration papers by the tions commissioner, raised (impounded by thev' commissioner for the bene-' fit of the association), andr Las Vegas, Indio and Bakersfield corporations further permission to sell securities, Rees commented: "The shareholders in this airplanes were purchased with Hacienda money to transport hotel patrons to Las Vegas. Yet the package deal for a weekend in Las of land around Mt Charles proval of shareholders. Stocks Drops BY JACK SEARLES, Timet A NEW KIND of indicator has emerged on the American business scene in the of George Meany, the redoubtable president of the AFL-CIQ, Whenever the economic news turns a bit sour, Meany cart be counted on to dust off his proposal for a 35-hour work week. Prompted by a rise in the Jobless rate (see INDICATORS), Meany did it again last week. The rise, he said, "is symptom matic of the very real and continuing disease which affects our economy America's labor force is growing at a rate of 1.35 million workers every year.

We must find jobs for them." As he had done two months before, Meany went on to argue that a shortened work week would provide jobs for more people. The administration, which opposes the idea, insists that the way to solve the unemployment problem is to step up the pace of the economy, Another rot-too-happy development, besides the unemployment picture, is the finding by the Commerce" Department and the Securities and Exchange Commission that qapital spending by industry, will probably decline for the first time in two years during the first quarter of 1963. Spending for new plant and equipment during the quarter figures to drop to an annual rate of $37.7 billion from the current rate of $38.4 The President is expected to outline ton, 30 miles north of Las case didn nave a cnance Shareholders, too; were Vegas includes not only Please Turn to Pg. 5, Col. 1.

transportation and hotel ac and to construct a new resort the, Mt. Charleston Idge and Rec concerned about the the promoters. There nf their islwere no meetings, no bal- commodations, but also show selling over-the-counter at ance. sneets, ana snarenoid- reservations at the New 3 reation Center, a develop- 1. i 1 1 rpnts hid.

40 cents asked: ers were denied access to launched Skybolt is produced at Douglas Aircraft's Santa Monica plant 'Congress appropriated about $350 million for the Skybolt this year. The Presi- dent-has said plans call for a total of $1 billion to be spent on, the project The Skybolt; has flunked- five performance tests. It is being developed for the Air Fprcei which says the "program is proceeding according to schedule despite the failures. LOCKHEED AIRCRAFT received $1.5 billion in military orders from the government last year, making the company the nation's No. 1 defense, contractor.

Next in order came General Dynamics (which had been first the previous three years), with $1.2 billion; Boeing, $1.1 bil-7, lion; North American Aviation, $1 then General Electric, Martin-Marietta, United Aircraft and American Telephone, Lockheed's share of U.S. military con- tracts Increased from 5.2 of the totala year, earlier 'to 5.6 in the fiscal-year ended JastiJune 30. The company pro-' duces fire types of aircraft, the' Polaris missile, the Discoverer satellites and the Agena space vehicle. HTt; rJ'Jl'HE COUNTRY'S No?" 1' aluminum producer Aluminum Co. of America; and; No.

2, Reynolds Metals, followed the lead -of third-ranked Kaiser 'Aluminum Chemical Co. in reducing the basic ingot price from 24 cents to 22 cents a Jb. The price for semi-finished aluminum was cut from 25.3 cents to 23.7 cents. The world biggest producer, of Canada, lowered its prices to the same levels, which now are in line with those of the world market liiieut wnic.n couia uetwmc Las Vegas Hacienda, 4.HJ0; uie im 01 leg-jthe VL a Arrowhead of Indio (units). 9f cents bid; psiauon Tieenea.

inai win Nevada Frontier Hotel, the controlling interest of which also rests with Bayley. "This situation Is appalling." Bayley denied that the Bakersfield Hacienda 20 -'prevent this from 30. mg Beyond that, the Hacienda corporations also own a $1 million fleet of eight planes vtf ho. nf bobieskl told the commit 1.111 UlllkVU WMfc, V. that, the commissioner's -1 rt V.

ti stocks in view of the gen policy from 1917 to 19G0 was to permit the issuance of -f 1t MR, SALESMAN: era! decline this year of the stock market, particularly cash shares and promotional shares at the ratio of one to DivmiFY YOUR savings INVESTMENTS IN VIGOROUS one for speculative the- counter stocks was not the most severe cri-, tlcism leveled by a e- VENTURA COUNTY. CALIFORNIA'S HEWEST FAST-GROWING AREA, Are you qualified to wear both? But since 19G0, Sobieski holders. As one stockbroker A points out: 'They (share 9 holders) could have been on his own initiative as commissioner has changed this policy so that the current al-lowed ratio is two cash shares to one promotional share. 'if 1 1 i. 1x0 hurt much worse in other stocks.

What alarmed Hacienda shareholders the the tax program which he Will present to the 88th Congress when Tie addresses the Economic Club of New York on Friday. One report -which may influence Mr. Kennedy's thinking on how large a tax cut he will seek may be the consensus of 209 economists canvassed by the F. W. Dodge the construction information service.

most: they have little "voice CURRENT JL ANNUAL HATS PAID FOUR TIMES A YEAR 'Making It Hot in the affairs or the companies they "own. Sobieski also testified his Bayley testified before the office was "making it hot" committee that the Haciendaifor the Bavlev Wilson corporations "are fine ones, brokerage concern in Bever- if so, our next question Is: Are you wearing these hate to the best advantage? This caif only be answered afteryou compare your current situation with our Franchise Com minion incentive Plan which, to the best of our knowledge, la the first Plan of He kind ever offered the dually licensed sales man. For full details, contact Mr. Henry Martin, In charge of Weet. Coast Sales stcuamr lunDiNe-sum PASADENA, CAIIFOIMA fhtMtSY 2-335 carefully handled." ly Hills because of com- Yentmup, I toi Not.

7 louth Oik rMt Bayley related he was'rjlaints from investors re- granted a permit In 1948 sales tactics. the state corporations com- "We decided it would be mwsioner to issue shares in, better to get them out of Standard Motels (Fresno) Sobieski testified. TRADE IMPORTS in October totaled $1.4 billion, an increase of 6 from September. For the first 10 months of the year, imports totaled $13.4" billion, about 12 ahead of a vear earlier. Exports fell to the lowest point in nearly three years in October $1.5 billion or 22' below September; The decline labor, troubles on-East and Gulf Coast clocks; EUROPEAN COMMON "MARKET countries plan to import 13.6 more U.S.

coal in the first quarter of 1963 than a year earlier. Our coal mines can produce and to sell them to the hearing was set on the Vtnturt, California, Miller 1-2844 lie at $1 par value, and to revocation of the license of, deduct 20 for sales costsJa salesman, but the hearing ACCOUNTI INIUWD TO I19.0QO It fCOCIAJ The outlook, the economists say, Is for little change during the first six months of next year, followed by moderate improvement in the second half. And business leaders surveyed by the First National Bank of Chicago predict the fol lowing trends for the first half of 1963; retailing, petroleum and natural gaslip; autos and construction machinery, hold-1 Ing their 1962 gain? railroads and con-; struction; possibly dipping before lng any improvement; steel, not likely to make meaningful gains. INDiCXTQRS DEPARTMENT STORE SALES in the week ended Dec. 1 were down 2 from a year earlier (Comr-arison with the.

previous week, which included Thanksgiving, would be meaningless.) Sales on the- West -Coast were tip 3. For the weeks ended Dec. nationwide sales were up 2 from a year earlier, Promotional Share neve" came 10 conclusion overv rash ahar sold because the brokerage housej. to the public, Bayley was entitled to issue one promo tional share, with the provi anqghip coal to Europe ana unaerseu ao- so that the promotional mestic mines even withthe transport (plxaii nmrr) shares must be held in es 1, your name. Tddress cm crow and could receive divi 'I.

V- dends only after dividends of J5TATE- at least bo had been re BID ceived by the cash shares. IIOMZ PHONE. PHONE. By the end of ard Motets had sold 2,803,000 2. Yeur Investment Objectives: (If more than one ebjactiot, indicaU order of Important.) shares to the public, and sub sequently issued about 000 shares to investors as stock dividends.

The remain I am primarily interested In good quality stocks that should increase in value over die years. I am interested is attractive I am Interested io relatively arabla aecuritiea with excellent dividend record i. I'm looking for itoclcj that are paving liberal dividends. ing 1,868,297 shares of promotional stock i3 held by the management. The last share holders meeting was held March.

6, 1954, and the last dividend was paid March 5, 50-M eves 60 1959. 3. Personal Information: Sex Mala Marital Status Single Age 20-30 Femala Married 030-40 Widowed 40-50 Occupation or In 1956 Bayley and Wil son incorporated Iis Vegas taiowi Hacienda. They sold. 000 cash shares and issued Numbet and age of dependents.

for you! CORPORATIONS DIRECTORS of R-'X Reynold? Tobac-: "co and Pacific Ha wafian Products, au-; thorreed an agreement looking toward acquisition of Pacific Hawaiian by a Reynolds subsidiary. The agreement Involving an exchange of stock, is subject to approval by Pacific Hawaiian stockholders at a meeting. to be held next February." WILLIAM ZECKENDORF, chairman of the Webb Knapp realty firm, said he and a group of fellow stockholders in Arnerica a film, steel partition and gaU jcompany, planned to pull out of America Corp. Under the plan, the Zeck-endorf group would surrender their 1 million common shares' to the firm's treasury and also pay $3.8 million in cash $150p0 in M'iln Teturn. they.wbuTd receive AmerK ca" "48 1,000 shares of common and warrants Universal American a diversified company, and 265,000 common shares of -Republic the 1 rjnovje firm.

Earlier' plans to merge: America Corp; and Republic were dropped after opposition developed from the Justice Department CONSTRUCTION i SPENDING on new construction projects declined in November to art. annual rate of about $61 billion, compared with a rate of $63 billion in October. A slight slowdown in residential building was one factor in the decline. PEOPLE GLEN H. BOLIJNGER, 70, co-founder of Sparkletts Drinking Water was the company's president.

He as- sumes the post which had been held by rRurton N. Arnda who died Oct "Bollinger and Arnds esUblishcd Spark letts in 1925. The firm then had two.de-;-:'livery trucks. It is now the world's larg-V eat bottled water concern Any close connections with any company listed In portfolio 4. Financial Information: Approximate annua income from all sources other than security Accumulated cash or savingL Cash now available for investment Approximate annual savings Amount of life Insurance Real Other Approrimate tax braclcet UNEMPLOYMENT during November rose to 3.8 million or 5.8 of the labor force.

This compares with 5.5 in October and 6.1 in November, 1961.. The Labor Department attributed the rise in the jobless rate to an unexpected increase of 150,000 among unemployed teen-agers. Total employment fell 900,000 to 68 million. Thia wag the highest level foe any" November. CONSUMERS exhibited confidence during October, Increasing their install' ment debts by $417 million.

This pares with a rise of only $165 million in. -September. half the Octobef involved auto purchases. INTERCJTY: tRUCK TONNAGE? the week ended Dec. 1 was down i.71' from a year Railroad carloa dings'.

were down 2 1 zi: AUTOMAKERS turned out 172,600 new cars last week against 172,400 thej previous week and 161,400 a year lier. A strike at a Ford plant in New Jer -sey trimmed output last week by several thousand units The industry turned out 688,000 new cars in November, resulting in the best total for the month since 1955 STEEL MILLS poured 1.87 million tons In week ended Dec. 1, up 1.7 from the previous week'. Mills are operat- -lng at about 62.3 of capacity. So far this' yearproduction stands 2.5 ahead of the 1961 CONTRACTS THE DEFENSE DEPARTMENT Indicated that no funds for future work on the Skybolt missile project are likely to be Included In-the budget for the year to start next July 1.

The, air- Other resources (pension axpectations, paitidpatioa In profit Inaring plans, bequests, ate.) Fixed obligations (mortgages, loans, INCOME FOll LIFE FRor.rvouR GIFTTO EDUCATION My present holdings are If you own stocksor want to' It may prove profitable to answer these questions-mail In the form lor a complete analysis of your situation by our Research Department There won't be any charge, of course, and the information you supply will be held in strictest confidence. The only reason we ask for it is to help determine the best investment program for your particular circum- stances. Obviously, the ktod of Securities we suggest for a person who depends on dividends for most of his income will, differ, drastically from those for someone who can afford more risk in the hope of capital That's why we ask you to define your investment objective as you see it," to include any additional information you think might help us to do the best job possible. Date of No. of Bonds Purchase -cr thares Name of Security Unit Cost i I i.

Wfiat's Happehirig; to the Ecbh brri? v. .1 Jt-f 1 the Associated prepared by (list additional tecuritlei on teparatt theet) Year Ago 2,073,000 .15,954,000 189,269. 9,056,000 6,915,010 $316,900,000 .95.1 90.0 Prior' Week 1,844,000 7,100,960 $391,100,000 89.6 9V0- We mak no "lerctce of any kind Address: Research Department From a gift to- Pomona College you can receive in-; come for Ufa from, one of tha following three lifetime Investment plana 5 riaa I a life annuity paying up to 7.4 de- pending-on age. Plan II a life Income based on annual earnings from Pomona's pooled Investment funds-present rate 5.1. Plan a life income from tax-free municipal bonds.

Write today for free booklet "The Pomona Flan for Annuities and Life Incomes" and" learn how your gift to higher education can' serve both you and future generations of American POnOim-GQLLEGE "ftttmireti Svw Room202T, Sumrer Hall Claremont, California i Immb munmiLL lynch, piohcg, Fnirycp oiviith ino MEMBERS NEW YORK STOCK EXCHANQt ANO OTHER MINCIPAl STOCK AND COMMODITY KKCHANQEf The following 'selected indicator! ar PRODUCTION STEEL (net tons) ELECTRIC. POWER (OCXJ. KWH) SOFT COAL (tons) CRUDE OIL (barrels) ENGINEERING AWARDS 1 PAPER (per cent capacity) PAPEREOARD (per cent capacity) .1...... TRADS' CARLOADINGS (all freight) i CARLOADINGS (miic.) BUSINESS FINANCE 1 WHOLESALE PRICES (B.l.S. Index) 7 STOCK SALES (hares) BOND SALES (par value) business failures BANK CLEARINGS (000) DEMAND DEPOSITS (0C0) BUSINESS LOANS (CCO) EXCESS RESERVES (COO) TREASURY GOLD STOCK (COO) ESOKERS LOANS (000) MONEY IN CIRCULATION (000) MEMBER BANK BORROWINGS (000) last Week 1,876,000.

16,699,000 8,865,000 7,036,210 $437,700,000 92.9 87,0 306,469 100.3 23,901,600 $32,225,000 322. $33,624,943 $63,007,000 $34,669,000 $365,000 $15,997,000 $1,114,000 $34,854,000 $92,000 434,257 26397 100.4 27.509,910 $31,878,000 253 $61,986,000" $539X500 $15,998,000 $1,042,000 $34,803,000 $95,000 572,800 21,010,850 $35,899,000 356. $30,837,671 $63,906,000 $32,109,000 $454,000 16,995000 $1,278,000 $33,579,000 $35,000 ttis Angeles, 523 West Sixth McFie, Vice Pres. tos Angeles, 3500 Wltshlre f. Murdock, Mgr.

Hollywood, 6353 Hollywood i Grodin, Vice Prei. Beverly Hills, 454 N. Camden drive Dantly Vice Pres. Los Angeles (Wesiwood), 1013 Broxton Hornbecker, Sari Diego; 30 1 Street V. Glenn A.

Conner, Mgr. la Jolla, 7918 Ivanhoe Sheeran, Mgr. Pasadena, 575 E. Green i Berdan, Mgr. Fresno, 1 1 25 Van Ness Avenue John A.

Andrews, Mgr. Santa Ana, 1 001 North Broadway -Norman Dahf, Mgr. I.