The Los Angeles Times from Los Angeles, California • 43

rr7 j-rr" EiSFl 60 of Aramco Taken iismess finance Over by Saudi Arabia r- ir- i ji i-VMt 4 xiMo Jbwiri tim a iin' -ir-iriVriri-iirtr-im--iriani-tBrnT -it lv vva imawrwn i ii. own n-m 5 i 9 9 1 7 7 U.S. Oil Firms to Negotiate Details; No Price Set Yet NEW YORK Wl Saudi Arabia has taken has taken oyer 60 of the Arabian American Oil Co, the world's, -largest oil producer, Aramco said Monday. An Aramco spokesman said the agreement is retroactive to last Jan. 1.

He said the company is presently operating under an interim plan and that a more -detailed agreement would be formulated in later meet-ings between the Saudi Arabin government and the four American oil companies which currently own 75 of the company. No price for the takeover deal has been agreed to, the spokesman said. 1- He said that the four American owners, Exxon, Mobil, Standard of California and Texaco, would have a contractual arrangement to buy most of the oil produced from the government's share of the com pa- ny's operations. The spokesman said the four r. American owners would meet with Saudi Arabian representatives in July to work out the details of the new ownership arrangement.

Current Aramco oil production is -estimated at 8.5 million barrels a r-'A day, nearly as much as the total domestic production of the United -d States. There are two other firms -operating in Saudi Arabia but they i produce together only about 260,000 barrels a day. A change in Aramco's ownership rf status had been expected for some i time, but Monday's announcement I was the first official word of what the arrangement will be. Some in- liustry experts had suggested that the Saudis would take complete con- i trol of the company. it In an interview last week.

Raw- 4 leigh Warner Jr, chairman of Mobil, I said that fundamental-changes in 't the relationship between the Ameri- can owners and Saudi Arabia were coming soon. y-i He said that he hoped the even- -international oil companies will have less control over production foreign oil and increasingly become buyers and marketers. He said that he hoped eventual agreement with Saudi Arabia would be similar to one reached recently in Kuwait. Kuwait also ob- tained 60 ownership of oil compa-' ny operations. Stocks Pull Ahead After Small 'Dip; Dow Gains 5.95 From Times Wir Swvicw NEW YORK The stock market weathered a mild early setback to carry its June rally through a sixth consecutive session Monday.

The Dow Jones average of 30 industrials, which had backed down about 4 points during the morning, finished with a 5.95 gain at 859.67." That left the Dow with a gain of more than 65 points over the last eight trading days, and at its highest close in a little more than a month. Frices moved higher on the American Stock Exchange and the over-the-counter market Monday. Advances outnumbered declines 834 to 551 among the 1,770 issues changing- hands on the New York Stock. Exchange. The Big Board turnover throttled down to 13.54 million shares from 19.02 million last Friday.

Analysts said a round of profit taking and short selling, or the sale of borrowed shares in anticipation of price declines, had been expected. When it proved to be mild and shortlived, some investors were encouraged into some buying later in the session, brokers said. The preliminary count on large block trades of 10,000 'or more shares, traded on the NYSE, was 76 compared with a revised total of 140 for Friday. Big block trades included: ITT, 135,000 shares at off Weyerhaeuser, 90,000 shares.at 39, off Winnebago 55,600 shares at 6Vfc, off Airwick Industries, 54,100 shares at 2ZA, off Vk, and Union Oil of California, 50,000 shares at 39, off H. Other big block trades included: TRW, 46,000 shares at UV, off S.

S. Kresge, 42,500 shares at 38V6, off Melville Shoe, 36,600 shares at 914, unchanged, and two blocks of Motorola, one of 32,100 shares at 52, off 3V6, and another of 30,000 shares Please Turn to Page 1 7, CoL 3 JUST CHECKING General Dynamics inspector T. S. Williams looks over aluminum cases made for his firm by Zero Manufacturing Co. in Burbank.

Zero is manufacturing the containers, which will hold a shoulder-fired guided missile, for the Danish government. General Dynamics is prime contractor on the job. Times photo by Steve Fontanini Nevada Looks Into Financing Behind Shenker Bid for Dunes BY AL DELUGACH TimtJ SUH Wriltr II, 1974 Port III 7 either renew or pay off the $3.2 million 8 convertible note which came due Jan. 20. He said negotiations with the investment banking firm which holds the note presently hinge on the banking firm's desire to convert the nate to stock of Beverly Enterprises, which Christensen said his company opposes at this time.

Beverly Enterprises reported the defaulted note in its latest annual report, and further disclosed that the default puts its $5 million revolving credit agreement with United California Bank in technical default. However, Christensen said the bank has waived the default until Jan. 15, 1975. At the Top Houston Naturol Gas Corp. elected a new president.

Joe H. Foy succeeds Robert R. Herring who continues as chairman and chief executive officer. Foy, formerly vice chairman, operating and corporate, also was named to the new post of chief operating officer. Houston Natural Gas operates an integrated Texas Gulf Coast gas system and had total revenues of $316.32 million last year.

Briefly Told First Pennsylvania Corp. said second quarter earnings per share will "probably be 10 to 12 higher" than the 74 cents a share last year "Weeden Co. reported a profit of $122,000 in May, vs. a loss of $251,000 for the same period a year ago Dow Chemical expects second quarter earnings of about $1.50 a share, up from 86 cents a share last year. San Diego Gas Electric applied for a $15 million electric rate increase to offset rising fuel costs Pacific Intermountain Express filed tariff proposal to offer money-back guaranteed service over major routes of the carrier's nationwide system Kaufman Broad, in an attempt to retrench for what it hopes will be a housing turnaround 1975, is selling off large parcels of land and peripheral businesses and reducing debt The chairman of Merrill Lynch predicted that by 1980 there would be 42 million individual investors, up from the current 30 million Shareholders of Burdett Oxygen voted to change the company's name to Burdox Inc.

Pan Am flew 1.67 billion revenue passenger miles in May, off 8.4 from the same month last year McDonnell Douglas said France's Union de Transportes Aeriens ordered its sixth DC-10 series 30 trijet. The company also said the first of six DC-9 twin jet transports ordered by a Spanish airline, Aviacion Commercio S.A., was delivered Monday Buttes Gas Oil reached final agreement for the previously announced acquisition of Chapman Drilling. 80 70 60 850 40 30 i i 20 10 800 90 26 24 22 20 18 16 14 12 10 8 mImmIw mwut IN MIUlONS 53 510 517 524 531 47 614 YESTERDAY A NIW YORK The Dow Jones 30 industriol overoge closed ot 859.67, up 5.95. High during the day was 864.60; the low, 846. 1 4.

The Amex closed up 0.81. LONDON The Financial Times index of 30 industrial stocks dosed ot 284.7, off 3.9. The 1974 high of 339.3 was set Jon. 2. The 974 low of 263.6 wos set April 1.

TOKYO The Tokyo Stock Exchange 225-share index dosed ot 4,640.45, down 41.48 points. The 1974 high of 5,610.69 was set March 4. The 1974 low of 4,151.00 wos set Jon. 10. TUESDAY, JUNE National Retail soles in Moy rose 1 from April ond 6.4 above a year ago.

The Commerce Department reported last month's sales climbed to a seasonally adjusted $44.38 billion compared with a downward revised $43.96 billion in April and $41.72 billion a year ago. Durable goods sales totaled an adjusted $14.13 billion in May, up 2.2 from the previous month, but 1.2 below the year before. Non-durable goods sales in May were an adjusted $3026 billion, up 0.4 from April and 10.4 above last year. Creditors filed lawsuit against Interstate, Riklis and bankers. The $40 million class action suit was filed by holders of $30,000 of a $20 million 4 debenture issued by Interstate Stores which is now in Chapter 11 bankruptcy proceedings.

It says their original debenture agreement states that additional issues of debt securities can't be issued which would be superior to debentures already issued. The suit claims that a new $90 million bank credit agreement is therefore illegal. Defendants include Interstate, its Chairman Sol W. Cantor and President Herbert B. Siegel, Meshulam Riklis, chairman of Rapid-American Bankers Trust Co, The Bank of New York and other officers and directors of Interstate.

Treosory bill interest rotes were down at the latest weekly auction. The average interest rate on 91-day bills dipped to 8.26 from 8.3 the week before. It was the lowest rate since 7.983 at the May 25 auction, the Treasury Department said. The average rate on 182-day bills was 8.324, down from 8.426 the previous week and the lowest since 8.203 also on May 25. The Treasury sold $2.6 billion of the 13-week bills and $1.9 billion worth of the longer term issue.

A CAB judge ruled out fines for "no show" oirline passengers. Robert L. Park, a Civil Aeronautics Board administrative law judge, said there is no need to impose financial penalties against airline passengers who fail to use and cancel flight reservations. Park began an investigation last December when the fuel shortage resulted in sharp cutbacks in airline service and the number of "no shows" increased substantially, especially over the Christmas holidays. Park concluded "subsequent events have taken a more favorable turn," but he did urge adoption of a contingency program.

Liquifin AG should divest its Ronson stock, a law judge ruled. The Italian firm recently acquired about 35 of Ronson Corp. under a tender offer and notified the SEC it plans a proxy fight to gain control of Ronson. The Woodbridge, N.J. firm has said a successful takeover would mean a divestiture of its Ronson Helicopters unit.

Monday a Civil Aeronautics Board administrative law judge ruled the proposed acquisition violates federal law requiring U.S. air carriers be owned by U.S. citizens. But he also ruled against a plan to place the firm under trusteeship of First National Bank of Washington to insulate the firm from foreign ownership. World Xerox's chief urged international regulation of multinational firms.

C. Peter McColough, chairman and chief executive officer of Xerox made the statement at a Paris meeting to announce the June 18 listing of Xerox common stock on the Paris Bourse. Commenting on the "understandable and sometimes justified suspicion even hostility" that -certain countries feel toward multinational corporations, McColough said he would welcome some kind of international or regional guidelines that would establish an external check and balance system on multinational enterprises. California Ernest W. Hahn Inc was aworded a $200 million development job.

The' Hawthorne-based company announced that it has been granted the- exclusive negotiating rights by the city of San Diego to develop the city's Horton Plaza re-development area. The project will be a mixed-use facility covering 15 blocks in the downtown area. Earnest W. Hahn Inc is one of the nation's leading developers of regional shopping cen-1 ters. Beverly Enterprises said it is renegotiating a note in default.

Roy E. Christensen, chairman and chief executive of the Pasadena based firm, said the company hopes to a in 1 World Slump Eases but Cost of Oil Threatens Monetary Order his request last April to finance a tender offer for Recrion Corp, owner of the Stardust and the Fremont. Shenker, 67, of St. Louis, best known as James R. Hoffa's chief de-.

fense attorney, lost out to 32-year-old Allen R. Glick for the deal. Coincidentally, Glick, like Shenker, has made a personal fortune in San Diego real estate in the last few years. A source close to the situation said the pension fund trustees reminded Shenker that he was getting on in years and might best look after the properties on which the Teamsters, have already lent millions. Shenker, who already owns 37 of the Dunes through his holdings in publicly traded Continental Connector has now come up with an agreement to buy another 8 of the company from two individuals and to make a tender offer for the rest.

The price would be $11 a share for a total of $16.4 million to acquire the 63 of Continental Connector not held by Shenker through his wholly owned UK Nevada Inc. Although he was trumped by Glick; on Recrion, the smart money in Las Vegas is betting that Shenker can get the Teamster fund to lend the money for acquisition of Continental Connector. The fund is still owed a $6 million balance on an old Dunes loan, and a new loan to Shenker could be considered as protecting the investment. The Nevada Gaming Commission and its investigative arm, the Gaming Control Board, have veto power over any tender offer for the stock of a corporation that is licensed for gaming in the state. This means that the financing arrangements must be satisfactory before Shenker can go ahead on the Dunes offer.

Aside from that, the gaming con-rlease Turn to Page 15, CoL 1 BY BERNARD NOSSITER Tht Washington Post BASEL The world economic slump is flattening out, the dizzy pace of inflation appears to be slowing down, but the huge bill for Middle East oil is threatening the international monetary order. This judgment was issued Monday by the Bank for International Settlements, a little known but prestigious institution that operates from this stolid Swiss city on the Rhine. The annual report of the bank is a much-awaited event in financial circles because it reflects the collective wisdom of the rich world's central banks who are the chief stockholders in the BIS. Perhaps the most important event of the bank's annual meeting was not its report but a scheme discussed by the central bankers to meet the menacing oil payments problem. It turns on mobilizing gold hoard of the International Monetary Fund to finance the deficits of nations in difficulty Italy, Britain and poor1 countries everywhere.

The plan has been urged by key officials at the BIS and would mean valuing the IMF gold stock close to its market price of $25 billion. The-United States has vigorously op-: posed any increase in the official price of gold. But the BIS hopes to. overcome Washington's objection by -maintaining a wide margin between the prices at which the IMF would sell and buy the metal. The BIS report on the state of the 4 world will be the last prepared by its chief economist, Milton Gilbert, who has enjoyed a unique role as a key American in an institution created by and for Europeans in the great1 depression.

Please Turn to Page 13, Cot. 1 v. i Nevada gaming officials have mounted an intensive investigation of the complex business affairs of Morris 'Shenker, who is, bidding to join the select company of Howard Hughes as an individual owner of a major casino on the Las Vegas Strip. The authorities are interested, among other things, in the source of financing for Shenker's proposed takeover of the Dunes. The Times learned Monday that the Teamsters Central States Pension Fund long a major money source for Shenker turned down $1.5 Billion Meal Price Fixing Suit Hits Safeway LINCOLN.

Neb. (UPI) A Nebraska cattleman Monday filed a $1.5 billion antitrust suit against The Great Atlantic Pacific Tea Nw York, and Safeway Stores Inc, Oakland, two of the nation's largest supermarket chains, charging that they conspired to fix meat prices at both wholesale and retail levels. The class action suit was filed in U.S. pistrict Court by Loran Schmit of Bellwood, a cattleman and a state senator. It asked treble damages on claimed actual losses of $507 million" in behalf of Schmit and other Nebraska meat producers.

Schmit said meat producers can't wait any longer for remedies to meat prices which he charged are weighted against both them and the consumer. "Some producers have already gone under and more will follow unless something is done now," he said. The suit charged that and Safeway "have been and are now engaged in an unlawful combination and conspiracy to restrain unreasonably interstate trade and commerce in livestock and fresh, frozen and processed meat products." It described Stores as the nation's largest chain operation, and Safeway, as the second largest. The petition said others were involved as co-conspirators and attor-. neys said the list of defendants might be enlarged The suit alleged that Safeway, and others like them control 75 of the meat industry through monopolistic practices.

The suit charged that through combined buying and selling power the two chains conspired "to pay suppliers uniform, arbitrary, noncompetitive and artificially low prices and in turn, it said, they conspired to "charge noncompetitive and artificially high prices" for the products when sold at retail. The suit is a twin to one filed in California in 1968 against the same two defendants and a third chain, The Kroger Co. That suit went to trial last Thursday. In Oakland, Safeway denied the charges and said, "From what we have been told of this antitrust suit, it is patently false and a malicious attack on the good image we have established for the distribution of meat products." NATIONAL INSURANCE MAY BE NEAR Costs Worry Prudential, Too .4 't 1 vrf :.1 a i 1 -V' I YY Health-Care BY ALEXANDER AUERBACH Timt Stiff Writer Robert Beck has the same problems as the rest of us: rising medical costs, inflation and the difficulty of investing his money where it will produce a good yield yet be safe. The difference is one of scale.

Beck is the president of the Prudential Insurance Co. of America, with some $35 billion' in assets and an income last year from premiums and investments of $6.3 billion. Beck, interviewed during a visit to Prudential's Western Home Office (the Newark, N.J.-based firm has eight regional home offices, each larger than many other insurance companies) talked about medical costs and their impact on the future of his business, which includes health insurance. "We really believe that a national insurance program of one form or another is an idea whose time has he said, acknowledging that it is "also an idea being pushed by the Administration and' by many members of Congress whose constituents can barely afford ordinary medical care, much less a catastrophic illness. Included in many of the various Please Turn to Page 17, Col.

1 iff ''i' -v Y. It v4 v'- i WHAT'S AHEAD National health insurance and consumer reaction to high inflation are only two of the many influences on the insurance market, says Robert Beck of Prudential Insurance Co. Times photo by Art Rogers.