The Los Angeles Times from Los Angeles, California on July 4, 1973 · 59
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The Los Angeles Times from Los Angeles, California · 59

Los Angeles, California
Issue Date:
Wednesday, July 4, 1973
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Japan Shocked by U.S. to Cut Soybean Export ! BY SAM JAMESON Tlmea SUH Writer r , TOKYO Japanese government and industry leaders expressed shock and disappointment Tuesday over the United States' decision to slash export contracts in soybeans to Japan and other countries by 50. One, the chairman of the Japan Cooking Oil & Fat Assn., branded the decision "a form of economic War which must be considered a grave problem." ' The statement, made by Yukio Sakaguchi, president of Nissei Oils Corp., was the most radical reaction to what wa3 called here an unexpectedly severe limitation, i Elsewhere, the reaction was somewhat calmer, but in the same view. All evening newspapers in Tokyo, except the Main-ichl, gave banner play to the U.S. Department of A g riculture's announcement. I . Ministry Shocked The Japanese agricultural ministry, which had made no secret of its expectations that Japan America's best soybean customer would be given special treatment, was reported particularly shocked by the indiscriminate nature of the Wash ington announcement which cut all export contracts in soybeans by 50 until Sept. 15. ' japan, it said, faced the "danger of running out of soybeans sometime in late October. - Ministry officials said RECRION PURCHASE Continued from 7th Page : . The last financial statement for General Mortgage showed 1972 net income of $1.1 million on revenues of $2 million. Recrion is considerably larger. During 1972 it had earnings of $8.1 million on revenues of $74.2 million. In the first quarter of thi3 year, Recrion earnings totaled $2 million, up from $1.6 million. Revenues reached $18.5 million compared with $16.7 million. The acquisition agreement calls for Delbert W. Coleman and members of his family to sell their 20' interest in Recrion. The Coleman group, consisting of himself and his children, would receive cash and Goodrich debentures, and would have no equity interest in . Goodrich. '. ' ; Involved in Suit Coleman was chairman and chief executive of Par-vin-Dohrmann Co., Which later changed its name to Recrion. In 1969, the Securities & Exchange Commission filed a civil suit charging that Coleman Snd 17 other defendants manipulated Parvin-Dohr-mann stock. The stock had jumped 300 in the previous year. Parvin - Dohrmann, Coleman, and the corporation president, William C. Scott, later consented to a court injunction barring them from future violations of securities laws. They agreed to the injunction without admitting to the allegations in the SEC suit. Parvin-Dohrmann stock was suspended by the American Stock Exchange from October, 1969, until February, 1970. ? Coleman resigned . as chairman in 1970 and placed voting rights to his stock in a trust. The Goodrich offer is "beneficial'' to Recrion shareholders because it represents a premium over Recrion's recent market price, a Recrion spokesman said Tuesday. Recrion's closing price Tue'sday on the American Stock Exchange was $23.62 a share, up $1.37 a share for the day. "Volume wa3 22,400 shares. The stock had ranged this year between $16.37 a share and $27.87. The announcement came at mid-day, well before the close of the trading. t Under the agreement in principle announced Tuesday, Recrion shareholders would have the choice of two packages. The first includes $23 in cash and one share of a new 7 cumu-Iative preferred stock issue by Goodrich, with a $17 par value. The package also includes two 13-year warrants, which give the hold they would call together wholesale representatives to set up a domestic allocation system, adopt special antispeculation measures, seek more imports from Brazil, and again request the United States to refrain from any more slashes in soybean exports after September. The supply of soybeans was expected to fall about 10,000 tons short of demand by late October with no guarantee that shipments from the new American harvest this fall could reach Japan before the beginning of December. The U.S. move, which came after years of urging Japan to buy more agricultural products and repeated assurances that the American market could be depended upon, was certain to add a major new. irritant with Japan doing the griping this time to troubled U.S.-Japan economic relations. Japan buys 92 of its soybean imports from the United States. After 12 months in which overall consumer prices have shot up by nearly 12, the U.S. announcement came as a particular shock to the government of Prime Minister Kakuei Tanaka. Only last August, President Nixon cajoled him into agreeing to a special purchase of U.S. agricultural products, including soybeans, in an attempt to help balance an American trade deficit that reached $4.1 billion in 1972. Now, with the tables er the right to buy Goodrich common stock at an exercise price of $8.50 per share. (Goodrich closing price Tuesday on the Pacific Stock Exchange was $4.50 per-share, unchanged from Monday. Volume wa3 2,500 shares.) Second Package The second package available to Recrion shareholders includes $21 in cash and a new issue of Goodrich subordinated debentures, with a 5.87 interest rate and a $19 par value. The debentures will be due eight years after issuance. Coleman has agreed to : accept the second package, but all other stockholders will have their choice. .. Goodrich can redeem the preferred stock at $17 a share. The exercise price of the warrants will be $8.50 per share for the first three years, and mil increase by $1 every two years until they expire. Thus, in the 13th year, when the warrants run out, the exercise price will be $13.50 per share. The proposed acquisition requires the approval of the shareholders of both firms, and various regulatory agencies including the Nevada Gaming Commission. Statements must be filed with the SEC, and the states of New York and New Jersey. Recrion shareholders may be able to vote on the deal late this year, a spokesman said. Both firms will have their annual meetings in the late fall. Changes Unlikely Goodrich doesn't plan changes in the management of the Stardust and the Fremont if the acquisition takes place. "This is good real estate with good management," Morris Weissman, executive vice president of Goodrich, said Tuesday. In a formal statement, Goodrich Chairman Cohen said the proposed acquisition "will broaden the scope of Goodrich Realty's diversified real estate activities." Goodrich and its affiliates currently have 16 projects under development, including apartment buildings in New York, a mobile home park in Las Vegas, an office building in Denver, and shopping centers in six states. The firm directly owns and operates shopping centers and garden a p a r tments throughout the country. Cohen conducted operations as a developer during the past 15 years through a private partnership. He took his business public by forming Goodrich, which then purchased General Mortgage Investments. Decision Contracts turned, it was expected to lbecome Japan'3 turn to present a shopping list of products it wants to buy from the United States when Secretary of State William Rogers and other U.S. Cabinet members come here for two days of trade and economic talks with their Japanese counterparts July 16 and 17. Violation of Justice Sakaguchi called the U.S. action "a violation of international justice" and charged that the U.S. government was "creating chaos in international economic order." "This is a type of economic war which must be considered a grave problem," he said. The firms in his association, which produce cooking oil from soybeans, constituted the largest single group of Japanese purchasers of U.S. soybeans. Feed manufacturers also reported that they would be unable to meet demands in the fall. Manufacturers of soybean curd, however, reported that they had enough stock on hand to tide over the period of U.S. export curbs. Makers of soybean paste, an ingredient in a favorite Japanese soup, were reported concerned mainly that China, which supplies 70 of the soybean imports used for thi3 product, might use the U.S. shortage as an excuse to raise Chinese export prices. Price Rise Feared Higher prices were feared for cooking oil, salad oil, oil used for cooking tempura (fish), and margarine with the expected animal feed shortage driving up prices of beef, pork, and milk in a chain of secondary reactions. Japanese diplomats, however, saw one ironic side effect of the U.S. announcement. They said U.S. demands that Japan lift its remaining quotas on 23 agricultural products, including oranges, were bound to lose "persuasiveness" as a result of the American cutbacks. The Ministry of International Trade & Industry reported that the Japanese offer, made last month, to curtail purchases of scrap iron in the United States should in itself fall within the limit Washington clamped on exports of this item. Japan would be able to obtain an adequate supply of scrap, the ministry said. Fairchild Camera Gets New Line of Bank Credit Fairchild Camera & Instrument Corp., Mountain View, reported it has established a two-year, $33 million line of domestic and international credit with six banks led by Se-curity Pacific National Bank. At the same time the company signed an amendment to its long-term loan agreement with an insurance company. The two new loan agreements remove the previous prohibition on the company's current ability to pay a dividend. However, no decision has yet been made on resumption of dividend payments, the company said. NEW ISSUE PREMIUM RETAIL LIQUOR & WINE STORES 100,000 SHARES-COMMON STOCK $5.00 Offered to the public only by the company: KINGS CELLAR INC. Corporate Offices 1635 E. Del Amo Blvd. Carson, California 9074S (213) 774-9611 (213) 537-8121 r This advertisement shaft not constitute an offer to tell or tht solicitation of an offer to I ' buy nor shall there be any tall of thes securities in any State in which such offer, to- i natation or sale would be unlawful prior ' cunties laws of an such State. GENTLEMEN: PlfiASE SEND ME AN OFFERING CIRCULAR AND SUBSCRIPTION FORM CONCERNING YOUR, COMMON STOCK OFFERING: 'NAME. C3 ADDRESS. i CITY. .STATE. PHONE. Borrowing by Consumers Up During Month WASHINGTON Wi Borrowing by consumers rose sharply in May, an indication that money for consumer lending still is plentiful. , The Federal Reserve Board Tuesday reported that outstanding consumer credit increased $2.22 billion after seasonal adjustment in May, an increase of $484 million over the April figure. But the board noted it was below the record increase of $2.47 billion in December, 1972. Instalment credit increased $1.99 billion, led by the first increase in automobile credit in four months. Auto loans increased to $728 million, still below the January high of $909 million. Instalment . credit for non-automotive consumer goods increased $587 million and personal loan credit hit a new high of $592 million. The growth in nonin-stalment credit increased $232 million in May from $335 million in April. Charge account credit increased $108 million on a seasonally adjusted basis to a total $8.3 billion. Total outstanding consumer credit at the end of May was $164.2 billion. The Federal Reserve said repayment of instalment debts totaled $11.9 billion in May, a decrease of $120 million from April's record high. Seasonally adjusted extensions of instalment credit increased $467 million during May to a new high of $13.9 billion. Business The L03 Angeles Chapter of the National Assn. of Accountants has named as vice presidents: George L. Nicholas, administration, manager for Cooper Lybrand, Los Angeles; and Ray Hayes, education, a tax accountant for U.S. Borax & Chemical Corp., Los Angeles . . . Max D. Kemp has been elected a vice president and controller of Intelcom Industries Inc., San Diego . . . Paul A. Corey has been elected vice president and controller of Menasco Manufacturing Co., Burbank ... Charles II. Bone has been named second vice president of Williamson Park Co., a subsidiary of Palo-ma Financial, San Diego. Stan Young ha3 been named vice president, engineering and operations, for the Huntington Beach Co., Huntington Beach . . . Balfour, Guthrie & Co. Ltd. has appointed as vice presidents of the Steamship division: Guy W. Crum, European services, and Robert B. Swenson, in charge of Latin American and Pacific Services Joseph N. Kemple has been named president of the Flxible Co., Ohio-based subsidiary of Rohr Industries Inc., Chula Vista . . . $500,000.00 to registration or qualification under the se-. JSP. SEC MOVES TO KEEP BANNED BROKERS OUT WASHINGTON Iff) The Securities & Exchange Commission Tuesday took a step aimed at keeping stockbrokers and dealers who have been involved in rules violations and negligence in past unsuccessful securities operations from becoming registered broker-dealers again. . The SEC said it proposes amending broker-dealer application forms to inquire whether the person has ever been an officer, director, partner or 10 shareholder or controlling person of a brokerage or dealership for which a trustee has been appointed under the Securities Investor Protection Act. The commission said many of the failures of broker-dealers "have involved a gross failure to maintain proper books and records and substantial violations of the financial-responsibility rules." ' It said the purpose of the change would be to "detect an attempt on the part of persons responsible for such violations to effect a re-entry, so that the commission could initiate a proceeding to deter-' mine whether any remedial action would be appropriate." ' ' Index Backs Farmers' Soaring Cost Claims WASHINGTON The index of feed prices kept by the Agriculture Department is providing support for farmers' claims that soaring production costs are curbing their output of meat, poultry and dairy products. In the month ended June 15, the USDA feed price index jumped 14 and averaged 69 above a year earlier. By contrast, the price index showing how much farmers receive for their products rose 6 in the month and was 38 over June 15, 1972. With the freeze on retail and wholesale prices, producers say that they are being locked in at a time when operating costs are the highest ever. The feed price index provides a comparison for judging what has happened. Meantime, USDA officials are hopeful that some adjustments can be made quickly in the freeze order to enable processors and producers some leeway in & People Russ Emerson has been appointed vice president-Asia for the Flying Tiger Line Inc., replacing George Zet-tler, who has served as senior executive in Asia since September, 1969. Zettler will return to Los Angeles headquarters where he has been appointed vice president, sales and service . . . Edward J. Egan has joined Avalon Savings & Loan Assn. as executive vice president . . . George B. Phillips has been elected vice president, corporate management development, for Menasco Manufacturing Co., Burbank. Leonard L i c a t a, vice president, operations, for General Telephone Co. of California, Santa Monica, has been elected a director, succeeding Paul N. Malmgren. Malmgren, former executive vice president, operations, retired June 30 and also resigned from the board . . . John J. Lorenz has been named senior vice president, finance, of Audio Magnetics Corp., Gardena subsidiary of Mattel Inc. i 1 per annum on minimum investment of $10,000.00. Full Paid Thrift Certificate! with terms of Five Years. California Residents Only. Los Angeles 462-1193 4620 W.Beverly Blvd. Santa Monica 395-3248 1218 Fifth Street . Ingltweod 674-3501 502 So. La Brea Ave. Downey 927-2666 7340 1 Florence Long Beoch 426-5564 3609 Long Beach Blvd.. Temple City '287-5281 9666 L Las Tunos Blvd. YonNuyt 981-5500 5424 Van Nuys Blvd. Pomona 629-4134 113 W. Center Street Santa Ana- 546-8811 230 W. Warner Ave. Conoqa Park 347-2560 639 Topanga Canyon BU FIRST THRIFT AMERICA counteracting the squeeze in agricultural food products. A g riculture Secretary Earl L. Butz in Kenans-ville, N.C., on Monday night, said the freeze policy is "self-defeating in the long run" and i3 forcing producers to curb output as processors themselves curtail some operations. The feed price situation is most critical in the broiler chicken industry, but dairy is running a close second, according to some important indicators. For example, the department's "milk-fed ra-: tio" is at the lowest ebb in a decade. The ratio, which expresses in pounds the amount of feed equal in value to one pound of milk sold by farmers, was 1.21 on June 15, down from 1.38 in May and 1.57 a year earlier. , The dip in recent months put the ratio at the lowest levels since the summer of 1965. The ratio is a guide used by economists to help gauge how well the dairy farmer is doing. It is not the only indicator, but it does illustrate in a single number what i3 happening. Under the milk-fed ratio formula, a higher number means that milk is relatively higher priced in relation to feed costs. Beginning in December 1967, the ratio rose for the first time to 1.70 and until last winter was near or above that mark. In the June report, the average price of milk was $6.34 per 100 pounds and the value of 100 pounds of feed was $5.22. That produced the ratio of 1.21 for June 15. A year earlier, by contrast, milk was $5.71 per hundredweight and feed was $3.43 per 100 pounds. The ratio on June 15, 1972, was 1.66. Y) ; n with ml Benedict Hills. North of Sunset Boulevard in the hills high above the smog. Stately homes on large sites with panoramic country side views. .Right between Bel Air and Beverly Hills. Quite likely the last homes you'll ever see built: up there. . Think for a minute what this means In terms of potential. And remember that for Benedict Hillsyesterday has yet to come. You still have an opportunity. So if you're in the market for a new home with an eye to the best possible potential for futures, visit Benedict Hills. And remember, today is as close as you'll ever come to yesterday. M VENTURA BLVO. l urn HOlUWBa Mff DEEP CANYON OA. A Development Sunrise Corporation and ALODEX Corporation OIL Continued from 7th Page now be considered by the National Petroleum Board which will weigh a large number of offers which some bidders made to sweeten the pot. Most notably these proposals include offers to assist with the establshment of refinery operations which South Vietnam now lacks totally. The front-runners in such considerations would likely be Esso and Shell, which already have distribution rights in South Vietnam. The' South Vietnamese government is highly interested despite the slow pace thus far. Big Oil Importer The. economic pinch is being deeply felt since the withdrawal of U.S. forces and the parallel decline in the nation's dollar reserves. South Vietnam must import about $70 million worth of oil annually and the rate i3 growing about 12 each year. During the war years, South Vietnam's military machine was also consuming $200 million worth of oil annually the bill being paid by the Pentagon. That figure has been sharply eut since the Paris cease-fire agreements began to be taken seriously but is probably still running at a rate of perhaps $100 million annually. For these and other rea- Brockway Glass Acquires Firm BROCKWAY, Pa. (DJ Brockway Glass Co. said it has completed the purchase of Prototype Packaging Inc. for an undisclosed amount of cash. Prototype Packaging, which has annual sales of about $1.8 million, produces containers from a range of compound 'resins including polyvinyl chloride. JOINT VENTURE OPPORTUNITIES c OHDQf.iirn We supply financial backing and expertise for an equity position to builders and developers who are owners of multifamily zoned land. We afso will buy complete package. CONSTRUCTION FINANCING with or without lalu-ouri available FOR PROMPT ATTENTION PLEASE CALL: CREATIVE EQUITY CORPORATION 211 Yacht Club Way, Suite 341 Recfondo Beach, California 90277 213-54210 ' Yoa Can PASS tkt Slot Ceafrector'a Uctnst Exam, (ASS the First Law . . . LAW & TRADE Section BE READY IS JS HOURS Exptrl Cfdint. VaetuHtianal Guarantee i OFFICES fffc CONTRACTOR'S LICENSE SCHOOL Lot Anoetear. Main Oftica Encino 15720 Venture Bf. (213) 986 - "United Slates Silver Coins'" Price fix 10 A.M.; July 3. $1003 Face Bags $2043. (Plus 2 Comnv) Up ?50 For more Information, write or celt . IMERICAM COIM EXCHANGE 9301 Wilshire Blvd., 8 M. 911210 m02?0 Itimetobuy i prime real n is yesterasiy Beverly Hills, Bel Air, Trousdale, Brentwood.7 Great neighborhoods. What made them great? ' Prime locations. And what makes them greater each passing year. Location. A little too'fate for yesterday's pneesthere. But nowthere will be one more great neighborhood. . worn iuu,uuu 10 Safes and Information Office) 2880 Benedict Canyon Drive, Beverly Hills, California 90210 1213)271-5621 BeNeftcr hills The NewAltemativD Wed., July 4, 1973Part l sons the U.S. Establish ment in South Vietnam has been actively encour aging and advising the; South Vietnamese in theif . offshore oil ventures. ')' INTERNAL CGMBUSM STEAM ENGINE Inventor Seeks Partners or .Investors to produce I demonstrate simple piston engine that operates on the normal-stroke principle 2 succeeding steam power strokes. Steam is internally produced from residual heat normally lost thru cooling jacket I radiator. Thermodynamic dynamic analysis indicates double etliciency. Can be produced with current Detroit toolint believed vastly superior te rotary or strati' lied charge type. For details call Mr. Crower- 714 422-2239 or 463-375S. LEASE A HEW 73 M.BENZ- Ot 450SL CPE. U LU Li MO. 39c plua tax. Open end for 48 met. on approved credit. (Ser. 010328) WITH CAP REDUCTION FEB GIANT LEASING DISCOVER THE ADVANTAGE Of lUStNQ DIRECTLY FROM A NEW CAR DEAIER CaS! 748-5105 Choice Office Space (Century City) Prtsant lanant will sutleast ft itu counted rata. Fully improve wltk par. titions, carpets, drapes, leobf, storat area with (delving, conferenct raw. Available area up to 5,0OQ se, ft a 15th floor. Contact Mr. Simmers for Appt. (213) 553-6677, Eit 213 . Project i ngfncsr andor Istteatnf GC has Immediate opening for qualified! person for commercial, industrial public vvorkl. Send Resume to: Box X 266 MA, LL Times Pnfitablt finance -leasing umian WANTS TO ACQUIRE matt to medium, active or kiecttvo, awfl-taolo or unprofitable finance company or Leasing company P.O. lex HI, Terione, Cat, 13J4 1880 Orange), Ventura Counties h estate i4u,uuu HUacWUMS OPPOHTUMTO Psfl i isTAiiuxnim.

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