The Los Angeles Times from Los Angeles, California • 47

Dow Slumps 7.58 on News of Hike in Prime nessi finance I Analysts Say Move to 10 Rate Spurs Jitters on Wall St. From Times Wire Servicei NEW YORK A record-tying 10 prime lending rate posted by a New', York bank sent a chill through the, stock market Monday. The Dow Jones average of 30 industrials dropped 7.58 to 839.96, and the New York Stock Exchange com-1' posite index was down 0.52 to 49.03, putting both indicators at their lowest closing levels since mid-'! February. Losers swamped gainers 1,115 to1 323 among the 1,778 issues traded on the Big Board. Attorney Agrees to Buy 31 of Recrion, Plans to Seek Rest BY HARRY ANDERSON Times Staff Writer A San Diego attorney agreed Monday to buy a 31 stock interest in Las Vegas-based Recrion Corp.

from its former chairman and to make'a cash tendcr offer for the remaining Recrion shares at $44 each, well above the recent market price. If Allen R. Click buys all of Re-crion's outstanding stock at that price he will spend nearly $61 million. Glick, a San Diego real estate developer, is principal owner of the Hacienda hotel-casino in Las Vegas. Recrion owns and operates the Stardust and Fremont hotel-casinos in the same city.

A press release announcing the purchase agreement was put out Monday by a New York public relations firm which said it was representing Recrion, which formerly was based in Los Angeles and until 1970 was known as Parvin-Dohrmann Co. Glick and officials of Recrion could not immediately be reached for comment. The release said Glick had agreed to a share for the 421,844 Recrion shares now held in beneficial trust for Delbert W. Coleman and his family. Coleman resigned as Recrion chairman in 1970.

The release said that closing of the Coleman purchase is conditioned on Glick's making an offer for all of Re-crion's common stock at $44 a share, and purchase by Glick of at least 80 of all the company's issued and outstanding shares including those of Coleman. Glick expects to make the tender offer for the 960,156 Recrion shares not owned by Coleman "within four months," according to the. release. In case he does not make the offer, Please Turn to Page 16, Col. 3 ENTERPRISING That's the word for Earl G.

Graves and Black Enterprise magazine, a publication he pioneered in 1970 to reach black businessmen. The magazine is designed as a forum for the ideas, ambitions and needs of black entrepreneurs. Times photo by Mike Mally AMONG THE MEDIA Publisher Can Cite Self as Black Enterprise Example Bankers Trust Co. of New York an-1, nounced shortly before trading' opened it was raising its prime rate to 10 from 9V2, directly on the heels of Friday's general move in banking industry to a 934 rate. The news touched off a sharp," decline in early trading, after which' the market leveled off.

"There was no great rush to sellA today," said one analyst, noting the. Big Board volume of 10.74 million'- shares was the second lightest of the year, Friday's volume totaled 11.67 million shares. A rising prime rate usually prompts a negative reaction in the stock' market because 'it means an increased cost of money for porations. Shares of real estate investment trusts were mostly lower. Great American Mortgage fell 134 to 12 Continental Illinois Realty at 11V4 was off Diversified Mortgage In vestors at Ill's was down lVs andj.

Citizens Southern Realty at 21 was down l34. In commenting on recent losses in i the REIT group, Barron's magazine said: "What's taken the treat out ofr, the REIT's for investors has been combination of misfortune from bouts of tight money to the cur- rent slump in housing." Please Turn to Page 16, Col. 11" the 10 prime does spread to the majority of other big banks, it would 5 be the fifth general increase in less--' than two months and would match the record high set last fall. William H. Moore, chairman of 10 was prompted by sharply interest rates in the money market.

(On Monday, $100,000 negotiable1 certificates of deposit a chief source of bank funds were quoted at 10 and higher. Also, the federal" funds rate, which is the interest! banks charge each other for overnight loans, was between 10 and" 10 14.) In response to press queries, spokesman for the Nixon Adminis--' tration's Committee on Interest Dividends said it would have no' comment on the Bankers Trust announcement. Into Winner ROBERT E. WOOD Times Financial Editor Bankers Trust Hikes Prime to 10; Others Poised to Follow Part III 7 fuel but no change was made gasoline prices. Cyclops Empire-Detroit Steel division raised surcharges on several steel products, effective April 15.

Bridgeport. Brass unit of National Distillers Chemical Co. raised surcharges for copper and zinc content in its products, Texasgulf Inc. of Toronto raised price of zinc 3 cents a pound, bringing the top grade in the United States to 35.8 cents a pound plus 7 cents duty. PPG Industries is raising liquid chlorine $4 to S79 a ton.

U.S. report soys many firms arc slashing 1 974 investment plons. The Commerce Department report the energy crisis has forced cutbacks ty any industries, but it noted that a 7.3" increase in investment by the oil industry will nearly offset the declines elsewhere. Total 1974 investment by all industry, is estimated at $112.7 billion," down $60 million from what had been planned before the energy crisis. The airlines, with a 3 cut back in spending, led industries planning to' reduce investments.

National Airlines asked for new routes to seven European cities. The carrier asked the Civil Aer-' onautics Board in Washington to approve flights from seven Southern cities to major European sites. The schedules would include nonstop flights between London and Houston, Miami, Tampa, Atlanta, and Dallas-Ft. Worth; and one-stop service from Las Vegas and New Orleans to London. Also proposed are new round-trip flights between Paris and three U.S.

cities. The FHLBB sought more power to. curb takeover of savings loans. Federally insured savings and loan firms can be and are being acquired, under present Jaw, by conglomerates whose activities are totally unrelated to the business Thomas R. Bomar, chairman of the Federal Home Loan Bank Board, told the Senate financial institution subcommittee.

He asked for legislation to provide that holding companies, like bank holding companies, may engage only in specified business. Bomar also said there is "se-rioUs danger" that takeovers of savings and loan firms by bank holding companies could be harmful to home financing. The CAB raised the fuel surcharge for military contract flights. The Civil-Aeronautics Board announced in Washington it ordered increase to 7.64 from 5.1 in surcharge paid by the Military Airlift Command for overseas contract flights operated by U.S. airlines.

It was the third increase in two months because of soaring international fuel prices. The CAB also adopted new procedures under which rates paid by the Military Airlift Command to airlines will be automatically opened for review on the first of each month to permit quick upward adjustment where necessa- World The Bonn government refused to comment on revaluation talk. The West German government declined to take a public stand on a prediction by two economic study institutes that it might have to revalue mark or withdraw it from a linked West European currency float. The prediction was made by two out of five research organizations in an annual report to the government. The minority report said government efforts to stabilize West German economy could be counteracted by outside forces, as shown by the central bank's recent purchases of foreign currency.

Briefly Told Ideal Toy Corp. expects to earn 70 73 cents a share for the year ended Jan. 31, vs. a restated 55 cents in fiscal 1973. officials said in New York Chemetron Corp.

expects earnings for the first quarter to rise about 20 from the 62 cents a share reported for a year ago, the firm told analysts in Philadelphia. Domestic steel production was 2.91 million tons last week, up 1.45 over the week before Continental Airlines flew 458 million revenue passenger miles in March, vs. 420 million a year ago Texas International Airlines flew 67 million revenue passenger miles in March, up 19.8 Diversified Mortgage Investors said Moody's Investors Service has withdrawn its commercial paper rating, which had been D-2 Liquifin extended to April 29 its restated offer to purchase Ronson common stock Deere Co. is raising prices of its agricultural and industrial products by an average Trane Co. is raising prices average 5 May 1 for products including furnaces and air conditioners for residential and light commercial use.

9, 1974 TUESDAY, APRIL National Deliveries of generol aviation aircraft fell slightly in March. Manufacturers delivered 1,213 light airplanes in March, down 3 from a year earlier, the General Aviation Manufacturers Assn. reported. It was the industry's first year-to-year decline for any month since June, 1971. Value of the March shipments was S69.4 million, down 0.3.

from a year earlier. For the full first quarter, however, shipments were 7 higher. The March decline reflects changes manufacturers made in production schedules last November, after initial fuel cuts were announced for the general aviatiqn industry, the association sakl. Allocations have been, increased since then. A new contract in export-grade wheat started trade in Chicago.

The Chicago Board of Trade Monday started trading contracts for future delivery of hard red winter wheat, the high-protein variety involved in the record 1972 sale to Russia and now in worldwide demand. Hard red winter wheat is the kind used in baking bread and rolls. The board of trade will continue the 125-year trading in soft wheat futures, the kind used mostly in cakes and other baked goods. The new contract permits wheat to be delivered in Kansas and Missouri at prices that include shipping costs to either Houston or New Orleans, the major Gulf of Mexico'grain export terminals. Raytheon Co.

will modernize Saudi Arabia's defense missile setup. The Lexington, Mass. company said the Saudi Arabian government awarded it a $260-million contract to update the nation's Hawk missile defense system. Raytheon said it will-supply improved Hawk air defense systems over the next five years. The work will be done at its missiles systems division at Bedford, Mass.

The contract has been endorsed by the U.S. State Department. Ray-, theon supplied Saudi Arabia with its original Hawk defense system in the mid-1960s. Interest on Treasury bills rose again at this week's auction. The return to investors on 13-week Treasury bills rose for the seventh consecutive week, to an average of 8.648.

This was up from 8.358 last week and the highest since 8.786 was paid Sept. 17. The Treasury said it sold S2.5 billion of 13-week bills at its regular weekly auction. It also sold $1.8 billion of 26-week bills at an average of 8.393, up from 8.211 a week ago and the highest since 8.832 at the Sept. 17 auction.

Prices of metals, chemicals and petroleum products were raised Shell Oil Co. said it has raised wholesale prices for products ranging from home heating oil to indus- mm wm 10 900 SO 80 70 60 850 40 30 YESTERDAY A NEW YORK The Dow Jones 30 industriol-overoge dosed ot 839.96, down 7.58. High during thedoy wos 847.23; the low, 834.25." The Amex dosed off 1.18. LONDON The Finonciol Times index of 30 industriol stocks dosed ot 284 9, up 1.0. The 1974 high of 339.3 wos set Jon.

2. The 1974 low of 263 6 wos set April I. TOKYO The Tokyo Stock Exchonge 225-shore index closed ot 4,448.46, up 0 39. The 1974 high of 4,61 0.69 wos set March 4. The 1974lowof 4,151.00 wosset Jon.

10. 24 r- I IN MILLIONS I 22 1 r'20 ,18 tr 31 3 315 322 329 4S 412 trial in Co. and the A said an the the the to 5 an BY JOHNGETZE Times Staff Writer SOBLE Writer "I started from ground zero," declared Grayes. "1 knew nothing about publishing." Graves' survival training began in Brooklyn's Bedford-Stuyvesant ghetto, 'broadened substantially while he was earning a bachelor's degree at Morgan State College in Baltimore, and was polished as a Green Beret in the Army where he rose to captain. His interest in politics led him to Sen.

Robert Kennedy's office in 1965. Graves served as staff assistant in the senator's New York City office until Kennedv's assassination in 1968. It was at that point that Graves decided to try a publishing venture. Graves wanted to start a magazine that would reach that fraction of blacks who were successful businessmen and those intent on making it. To do this, he needed at least two things: a loan to get his idea off the ground and a way to guarantee advertisers that they would be reaching, the black businessman.

Graves talked New York's Chase Manhattan Bank into making him a $175,000 loan which he said will be fully repaid in two years. Chase received a 25 interest in Black Enterprise as part of the loan package. That interest, he said with a pleased expression, is now estimated by Chase to be worth about $450,000. To reach the nation's black decision-makers who have a median income of $20,000, Graves spent months putting together what he said is the only list of its kind culled Please Turn to Page 10, Col. 3 NEW U.S.

RAILWAY BY RONALD Times Stiff In publishing, where the attrition rate is frightening, it takes more than a bundle of cash and a good idea to start a new magazine. It takes a nod from Lady Luck, too. And if you happen to be a black man starting out in the white publishing world and selling your product to white advertisers, it also takes a certain amount of daring. Earl G. Graves made this quality work for him and the result is a successful magazine called Black Enterprise, begun in 1970 on a shoestring.

He expects it to gross almost $3 million in revenues this year. It's making a profit, he indicates, but he won't say precisely how much. During a recent business trip to Los Angeles, the 39-year-old Graves exuded confidence about his magazine's future. For openers, he emphasized that "I'm a businessman who happens to be black not a black businessman." That also happens to be the underlying objective of Black Enterprise, to put the black businessman on an even footing with his white counterpart. The magazine is aimed at the black businessman who has made it and the potential black entrepreneur who wants to make it within our economic system.

U.S. Consumption of Gasoline Falls 7.9; Shell Leads Sales BY ROBERT A. ROSENBLATT Times Staff Writer U.S. gasoline consumption plunged 7.9 during January, and Shell Oil retained its newly won position as the nation's leading gasoline marketer, according to survey figures released Monday. Gasoline usage was rising 7 a year before the energy crisis hit the United States in 1973.

The January drop of nearly 8, therefore, means that the amount of gasoline consumed by U.S. drivers during the month was 15 below normal demand. The gasoline shortage was pointed lip in a national "share of the market" study showing consumption fell by 646 million gallons during January, compared with the same month in 1973. The nation's vehicles burned 7.54 billion gallons in January, down from 8.19 billion a year earlier. The study was conducted by the Lundberg Survey a North Hollywood marketing information company.

January marked the second straight month of declining gasoline usage, an event unparalleled since World War II. Consumption dropped 4.8 in December. Statistics for February and March, now being compiled, are expected to show further substantial drops in consumption. Gasoline supplies have improved in recent weeks, but are still sharply limited. Dealers for major oil companies now receive between 80 and 96 of the volume they sold in April, 1972.

While supplies lag behind 1972 volumes, there are millions of more cars and trucks on the road. This Please Turn to Page 8, CoL 8 Jordan's Job: Roll 7 Losers Bankers Trust Co. of New York, the nation's seventh largest commercial bank, Monday increased its prime lending rate to a record-tying 10 from 912. Only two small banks immediately followed People Trust of New Jersey and First National Bank of Tulsa but banking sources said they expected the 10 rate to become industrywide by the end of the week. "We would have gone to 10 today except that it was too soon after the last increase," said a San Francisco banker Monday.

"It wouldn't have looked good." Last Friday, 22 of the nation's 25 largest commercial banks increased their prime lending rate the interest banks charge their biggest and most creditworthy corporate loan' customers to 9 34 from 9Vfc. If PRESIDENT BY Times photo. For an executive about railroads, ambitious job: bankrupt ones Jordan left Los company, the U.S. Railway corporation with a scheme rail And to do it Jordan sees off the a task for business complex a decision, lore of one to be his Arthur D. Lewis, president of of the "We've generally on the said in an "For me, the up an organization, procedures and going.

These Jordan, a UC degree in seems to thrive came to Pinehurst Vfff vf jf ik :) VK -I 'v wit i a who admits he knows nothing Edward G. Jordan has taken on an figuring out how to make seven into winners. the presidency of Pinehurst a Angeles-based insurance brokerage and services last week to become president of a government-chartered a mandate from Congress to devise for reviving the bankrupt Northeastern carriers. by 1975. the job of getting the huge rail complex government dole and into the black as generalists those skilled at reducing situations to the basics and reaching not for specialists steeped in the industry.

Both he and the man nominated boss fill the generalist description. investment banker and former Eastern Air Lines, is to become chairman USRA. concluded that Lewis will concentrate outside, and I on the inside," Jor-don interview here. problem now is staffing, building setting up administrative getting the planning function things we have under way." Berkeley graduate with a master's business from Stanford University, on the short-term assignment He only 15 months ago with a back- Please Turn to Page 10, CoL 1 Edward Jordan.