The Los Angeles Times from Los Angeles, California on July 1, 1966 · 55
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The Los Angeles Times from Los Angeles, California · 55

Los Angeles, California
Issue Date:
Friday, July 1, 1966
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i. PARVIN-DOHRMANN Continued from 12th Page be amended soon, to permit public companies to acquire hotels and casinos outright "Many if not all will be owned by public companies some day," he said. "Hilton and Sheraton are examining acquisitions right now." Parvin officiali described the acquisition almost in terms of a business coup. "It's such a good deal it's almost frightening," Sil-bert said. The $10 million price is subject to slight final change, based on a certified and warranted balance sheet presented by Fremont last night. Previously unaudited figures placed Fremont's net profit at $1.2 million for the year ended March 31. "Tonight we pay $1.5 million (15 of the purchase price) to Fremont owners and they pay us $1.7 million for the 125,000 shares," Silbert said. "Thus, for 125,000 shares we get the Fremont and a surplus right away of $170,000." Among the Fremont's assets, hie added, is about "$1.5 million and possibly $2 million in cash." The remainder of the payments on the Fremont are due over coming years ; with another $1.5 million next January. Harry A. Goldman, Par-vin chairman, told shareowners that Parvin-Dohrmann's earnings in 1966 will amount to about $1.2 million, or $1.25 a share, based on the 890,863 shares outstanding before the 125,000 is issued ($1.09 after). This compares with $910,672, or $1.11 a share, in 1965. Sales will be about $47 million, vs. $44.6 million. ' Thi3 doesn't include the Fremont. It could add about $1 a share to par-vin's earnings, Parvin officials said. Parvin stockholder Walter Smith stood up about midway in the meeting and said: "If it's such a good deal for us, why did the Fremont sell?" "I c o u I d n't answer that," Parvin said. "It's the way the ball bounces sometimes. It amazes us, too." ' Silbert rose and said; ; "One reason is that it was an opportunity for the Fremont owners to realize capital gain. They're getting $10 million; their cost base is about $1 million. Thus, their profit i3 about 10 times and it will be taxed on a capital gains basis. The matter of whether the price was $1 million or $2 million more wasn't as important in their mind3 as dealing I PIUS CURRENT If ANNUAL II RATE ;i call 627-9691 for details on Federal Savings it los AnjetFederal favings nd Loan iKoeiatioii NORTH AMERICAN SECURITIES COMPANY "' ' Investment Manager and General Distributor of the COMMONWEALTH GROUP OF MUTUAL FUNDS Announces that its Los Angeles Regional offices 'have moved to 3223 WEST SIXTH STREET-SUITE 705 Telephone 213 382-8311 July 1, 1966 ' - ANNUAL RATI YOUR FUNDS EARN 5.09 WHEN COMPOUNDED QUARTERLY AND MAINTAINED FOR ONI YEAR with a substantial company." The 125,000 shares amount to about a 10 interest in Parvin-Dohr-mann. However, since other Parvin officials own substantial shares in the company (Parvin himself owns 230,474 shares) it isn't by far controlling interest. The Internal Revenue Service has advised certain Fremont officials, including president Edward Le-vinson and vice president Edward Torres, that, consideration is being given to possible recommendation of criminal proceedings to be instituted for alleged understatement of casino income for the years April 1, 1966, through March 31, 1964. Discussing this matter In some detail, Silbert said the "charges" have been expressed only in letters written last fall to the men. "The federal government is attempting to prove that a casino should figure its income for tax purposes as a fixed percentage of the money played," Silbert said. "Most people who know Las Vegas feel there's no basis for the claim. There's even a split on the matter between the Nevada state government and the federal government, with the state believing the federal view is entirely incorrect." : A $5 million contingency fund has been set up against the purchase price, in case the government does prove understatement of casino income. .. "We really don't know how much the government wants," Silbert said. "We're left at sea on that matter. But it could be as much as $3 million." The possible tax problem was one factor in lengthening the negotiations. "At first we were going to buy the Fremont for $20 million cash, then decided on $17 million," Silbert said. "Later we decided on the $10' million (approximate) cash and purchase rights for 125,000 of our shares by Fremont officers." Mrs. Sylvia Sterling, a shareowner representing professional shareowner Lewis Gilbert of New York, asked if the books of the Fremont will be audited by an independent auditor. She was told they would be for the most re cent year's income, although no independent verification has been made of prior years' income. Vol u metrics Moves ' Volumetrics Inc. ha9 moved to larger facilities at 1025 Arbor Vitae in In-glewood. A COMBINATION NEVER BEFORE AVAILABLE IN LOS ANGELES FEDERAL CHARTER PROTECTION EARNINGS COMPOUNDED QUARTERLY NO MINIMUM CERAMIC PIGGY BANKS FOR ALL MAIN OFFICE 645 S. Hill St. Lot Angelei 90014 WILSHIRE FINANCIAL DISTRICT 6500 Wilihtr Blvd. Los Angeles 80044 CRENSHAW Shopping Center 3690 W. Santa Barbara Av. SAN FERNANDO VALLEY Valley Plaza Towar 12160 Victory Blvd. HOLLYWOOD Sunset-Vine Tower 6290 Sunset Blvd. PARK FREE EFFECTIVE JULY 1 ON PASSBOOK ACCOUNTS NO MINIMUM NO TIME LIMIT DIVIDENDS PAID QUARTERLY INSURANCI TO $10,000 FUNDS S&Ls Continued from 12th Page the higher rates had not changed. "As far as we're concerned," he said, "these new actions which now appear to be defensive, don't do much more than firmly identify Brentwood as among the conservative element in the industry. "And just how promising are the prospects of holding these fractional rate increases for very long under added operating costs, pressures and with regulatory legislation threatened?" he asked. The First Charter subsidiaries American Savings & Loan Assn., Whit-tier, and American Savings & Loan Assn. of California, San Francisco, had year-end assets . totaling more than $2 billion. S. Mark Taper, president, said his associations, along with others which have raised rates, will offer a V-point bonus plan on minimum balances of $5,000 held for three years. In raising the rates above the 5 passbook rate recommended by the FHLBB, the associations forfeited their right to borrow for loan portfolio expansion purposes from the Federal Home Loan banks. Although the FHLBB does not have authority to directly regulate interest rates paid by S&Ls, it atempts to do so indirectly by withdrawing the borrowing privileges. Home Led It Home Savings & Loan Assn. last week touched off the round of rate increases to 5 14. The prevailing rate had been 4.85, but Home already had been paying 5. Lyt-ton Savings & Loan Assn., a subsidiary of Lytton Financial Corp., LoS Angeles, quickly followed by raising its rate to 5U, compounded daily. The others are compounding their rates quarterly. The Lytton plan offers an effective yield of 5.39 on funds held for a year. If interest is compounded on a quarterly basis the yield is 5.35. It was understood the Federal Home Loan Bank Board met Thursday in Washington to consider placing a 5 14 "ceiling" on" savings rates. However, opinion wa9 divided as to whether the board would move in that direction. Acquisition Told Brown-Jordan Co., El Monte, reports the acquisition of Thinline Manufacturing Co., Inc., Los Angeles. The purchase price was not disclosed. TMt OLDEST AND URCEST FCOEDH SAVINGS ASSOCIATION) KIIVIM 10S ANGELES SAVEM EXCLUSIVELY SINCE 1UD. LOS ANGELES FEDERAL SAVINGS Un ' I 1 CHARTER $10,000 Bonus Certificates I PROTECTION RECEIVED OR POSTMARKED STOCK MARKET Continued from 12th Fag best groups. Gains of from 1 to 2 points were the rule. Many of the glamour issues acted better than the market, a 1 s a Fairchild Camera, for instance, boomed ahead 7 points to Polaroid was up ZVi, Xerox 2lA and Litton Industries 1. Some of the major shares on the losing side of the ledger were Eastman Kodak, down 2 points, General Electric AT&T H and U.S. Steel Vs. The long-depressed international oil shares were generally higher. Both Jersey Standard and Standard of Calif ornia added about 1 point. The general upward price trend continued in late trading on the still-open Pacific Coast Stock Exchange. Fairchild Camera added another IVi to 170 as 200 shares changed hands. General Dynamics was up 3A to 53Vfc on 400 shares and Douglas Aircraft rose Vi to 63 on 400 shares; On the American Stock BANKS Continued from 12th Page my pencil and see if I could get along without a loan," he said. He noted that in the past he's been "disturbed that in some quarters businesses simply pass on the costs and go merrily on their way," when money costs go up. Another banker said he thinks the banking industry generally would like to have a 6 prime rate in order to increase the margin between costs of money to the industry and the rates at which it lends. "But at the same time we hate to see the rate go up," he said. An executive of a third : major bank said he's not sure the increase in prime rate will have the immediate effect of raising interest rates on real estate loans. "They've already increased considerably beyond the increase in the prime rate," he noted. - GEORGE H. KLINE Vice President, Secretary and General Counsel Allstate Insurance Co. and Allstate Enterprises, Inc. . .. r Y' ' ..-v. L. ' i y MWeHiJeMNHB These SUT6 the men who made the Metropolitan goes to 5V4. These are the men behind Metropolitan Savings. The men responsible for maintaining the leadership, financial stability and customer-oriented philosophy at Metropolitan. Individually, they rank among the country's business leaders. Collectively, they represent 131 years of business experience. southern Federal SAVINGS AND LOAN ASSOCIATION " ESTABLISHED 1924 HEAD OFFICE! Ittl WILSHIRE lOUUVAltD, IOS ANCEIES, lU t-!3tS TARZANA BRANCH) 11731 VENTURA uvo. 35-8614 HUNTINGTON BEACH BRANCHi 7443 EDINCtR AVENUE, I47-4S01 ON OR BEFORB JULY 11, EARN FROM JULY 1 SAVE - ftV Exchange, 392 Issues declined and 186 advanced. The price index slipped 9 cents to 15.26. Volume totaled 2.06 million shares, compared with 1.17 million the previous day. TWA warrants topped trading activity and surged 3 points to 69T's. Westec rose 1V4 to 59V5 in heavy trading. National Video lost Va to 72 and Solitron Devices dropped 214 to nm. RonsonCorp. Sees Profit Hike in 1966 Ronson Corp., Wood-bridge, NJ., forecast 1966 earnings of $2.25 per share and sales of $90 million in a presentation to Los Angeles security analysts Thursday. The small appliance maker earned $4.5 million or $2.07 per share on sales of $76.3 million last year. Louis V. Aronson II, president, predicted per-share profit Would rise to $2.50 next year on sales in excess of $100 million. The firm's target for 1970 is sales exceeding $150 million and earnings of $4 per share, he said. Going Cordless The executive said the firm would introduce its first cordless products this fall, an electric shaver and an electric toothbrush. Among other new products slated for distribution in the second half of the year is a "Foodmatic" multi - appliance kitchen unit. It mixes, blends, juices, grinds meat and coffee, shred s salad, crushes ice and sharpens knives and scissors.; Aronson said the firm planned to continue pay-; ing a regular quarterly 15-cent- cash dividend and a year-end stock dividend of 2 this year. In subsequent years, Ronson plans to pay out approximately 30 of earnings in cash dividends, he said. laiiiliiiiif Eitiiiiiiiiiiiiiii STUART C SADLER Controller, Pacific Coast Territory Sears, Roebuck and Co. DONALD W.HANSEN President Allstate Financial Corp. Vice President, Allstate Insurance Company and Allstate Enterprises, Inc. Bank Debits Show Gains Los Angeles bank debits for June and the first half of this year continued their upward climb over the similar periods a year ago, the Los Angeles Clearing House Assn. reported Thursday. June bank debits, the total of all check transactions, were $14,017,522,-288, up more than 20 compared with $11,369,-619,223 in June last year. Debits for the first six months rose to $80,399,-059,591, up 18 from $68,-188,131,213 in the 1965 , first half. . , TUi oivtriktntni b mdUur Mcculloch Copies of tht Prespeetm may bo obtained m y ttott in which this amunmemtnt h ckodatod from only ruck of tit ttvtnl mitrwrltm os may kwnttf ogr Oust sttmim in tuck StaU. SHEARSON. HAM MILL S CO hayden, Stone v Reynolds & Co. dempsey-tegeler co inc goodbodysco. Lee higginson corporation tucker, anthony i r. l day walston co inc bateman elchler,hlll richards, incorporated crowell.weedon co. irving lundborg co. BlRkWlLSON& COjNC. MORGAN. OLMSTEAD ALLEN -, . f, ., rft A i Til rettltfci, DONALD F. CRAIB, Jr. . Chairman and President Metropolitan Savings Vice President, Allstate Enterprises, Inc. ' Assistant Secretary, Allstate Insurance Company They are the Board of Directors at Metropolitan. The men who make the important decisions. Like paying a full 5V4 on all accounts-with no minimum amount. Or 53A on "Bonus Interest" Accounts. And with safety, too. Your account is insured to $10,000 by an agency of the U.S. Government. Knowing who's behind your savings institution is as important as knowing how ft ft - MAH, Wi FAY POSTAGE, THI MOST CONVENIENT WAY l022in2tltZtmt2 ., .. HAWTHORNE SAVINGS 00 AND m egtr to stU nor teOdlattonof am offer tobtfOHjof tkso ttemUm. Jkt ojjtrii u mad only by Uu PrespuUa, 205,000 Shares oil corporation of Common Stock (50iParValut) Price $9375 per Share MARK A. POSS JOHN H. TWISS Vice President and Assistant Vice President -. Controller Allstate : and Regional Manager ' ? Insurance Company and v Allstate Insurance Company Allstate Enterprises, Inc. much you will earn. Just two good reasons why Metropolitan is an excellent place to save. Come in savings r n ii fl A MAIN OFFICE: 818 WilsWre Blvd., Lot Angela . MA 7-6765 LONQ BEACH, 5901 Atlantic Avenue 423-5451 , , RESEDA, 18160 Sherman Way 345-3625 ' EFFECTIVE JULY L ON SPECIAL BONUS 'TERM AfifinilHTS" IL.11111 nuvvwiuv of '5,000 or more (In multiples of 1,000) when held for 3 years ANNUAL RATI FRU JULY 1, 1 966-Porf ill J7 LOAN ASSOCIATION " MAIN OFFICE. Hawthorn Boulevard, Hawthorn CT-im BRANCHi Hawthorne Avenue near Canoe Street Torrance mtm IMNCKi Lincoln I Manchester Blvds, West Westchester ITttoU IOUISi S-4 Monday ttn Thursday. S I Friday f t ? - :tt i June 30, 1966 x California decision. person or save Dy mail. and loan association 1 TO SAV1

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