The Los Angeles Times from Los Angeles, California • 48

ft Saudis to Shun Investment in West, Official Declares Arab Adviser Says Attitude of Suspicion in Congress Casts Doubt on Safety of Holdings BY HOBART ROWEN The WoKhMstaM Post i civil court procedure, Rehnquist wrote. Moreover, he said, it is much easier to prove whether an actual buyer or seller was misled by management's statement's than it is to show that such statement influenced someone not to buy or sell the company's securities. For example, a person who had never read a prospectus later found to be misleading could go into court and claim he had decided against buying or selling securities because of the misinformation it contained. The door would be open, Rehnquist said, "to recovery of substantial dam-amges on the part of one who offers only his own testimony to prove that he ever consulted a prospectus that he paid any attention to it, or that the representations contained in it damaged him." loi Snsjrlrt Cimr 11 lues, June 10, 1975-rart ill STOCKS Continued from 7th Page The preliminary count on large block trades of 10,000 or more shares, traded on the NYSE, was 127 compared with a revised total of 162 for Friday. Big block trades included 105.000 shares of Avnet at 8V6.

up W. 86.200 of Gulf Resources at 23V4. up of Pacific Gas at 20V. off W. 79.900 of Walgreen at ll3.

off 70.000 of ITT at 23. off V4; 72,600 of Lockheed at 11. off 1V6; 62.600 of Times Mirror at 18, unchanged: of Denny's at 17, unchanged; of Fluor at 3434, up 59.700 of City Investing at 81. up 57500 of Continental Corp. at 4234.

up and 60.000 of Damon Corp. at off Vs. Volume climbed to 2.74 million shares on the Amex. Among the 963 issues traded. 294 advanced and 379 declined.

There were seven blocks of at least 10.000 shares traded, against 10 Friday. Sales in the OTC market totaled 6.65 million shares. Declines led advances 555 to 327 among the 2.488 issues traded. BLUE CHIP Continued from 7th Page been neither buyers nor sellers of Blue Chip stock. But an appeals court overruled that action, leading Blue Chip to appeal to the Supreme Court The high court, in an opinion written by Justice William H.

Rehnquist, based its position on several grounds: The legislative history of the Securities Exchange Act of 1934 and the language of the SECs Rule lOb-5, which makes it unlawful to use deceptive devices or make misleading statements "in connection with the purchase or sale of any security." The court concluded that the law and the rule were intended to limit the right to sue purchasers and sellers. The enunciation of this doctrine in a 1952 case, Birnbaum vs. Newport Steel Corp. The court noted that Congress has had ample time since then to change the prevalent judical view of such matters if it so desired. The problems that would be created if the court enlarged the opportunities for bringing securities fraud suits.

Plaintiffs in such suits have the power to tie up company officials for weeks on end with prolonged questioning and examining of corporate documents permitted under federal I r- Merger Vote Set LAKE PARK. Royal American Industries Inc. shareholders will vote June 19 on a proposal to merge with Royam Industries a unit of Bankers Life Casualty Co. which already owns nearly 75 of Royal American's stock. United States.

Less than 10 of the oil the United States consumes comes from Arab countries, and less than' 25 from OEPC over-all he said. "We get only 30 of the final price of oil. and 70 goes to the American government through taxes." according to Akhdar. That OPEC is a cartel "A cartel supposes that a group of sellers or buyers get together and face a perfectly competitive market," he said. Since the energy-consuming nations have formed their own "front." he argued, "and are colluding against us," the situation is more like a "bilateral oligopoly" than a cartel.

That the Arab nations will not recognize Israel. "The problem is not between the Arabs and Jews, never was and never will be, but between the Arabs and the international Zionist movement, represented by the expansionist policy of the State of Israel," Akhdar said. If the Palestinian problem could be solved, there would be no hesitation in recognizing Israel as a state: The existence of the State of Israel is not debated." he said. "We have come a long way in saying we would recognize Israel," he said. But diplomatic relations would not necessarily follow, so far as the Saudis are concerned.

The whole question of Saudi financial surpluses and investment potential constitute the final "misconception," Akhdar said. -T Dividends L.A. Markets Transactions for Monday, June 9, 1975 P- SI. olPay-i rlod Rate Record it IRBEGIILAB Mvan mvesiora ACCOUNTS RECEIVABLE FINANCING Health Care Field Total Support System Specializing in Financing and Processing Claims of Medi-Cal, Medicare and Private Insurance Companies Tel Enterprises Phone: 870-9982 714 1 4-tOi Mil 4-10 4-10: 7-15. 4-20 4-23 .41 .11 .05 .25 Live vohm orices al ram too type km Canadian PacLM 42.100 neat) delivered al plant i-7.

weight- Consult MutlHw ed average 0.05. at rant. 3 weighted Dnui f7 average 4.01. Roasters 4,400 head. 55 per CI ui Recreation cent at 34 cents, 4S per cent undetermined.

NjU Invslrs Cp Unit Liberty Life 4-27 44 4-23 e-4 4-4 4-20 4-0 4-10 4-27 4-21 FORM FIT Aglow from extreme heat, a high-strength alloy precision bolt, destined to become part of NASA's space shuttle, is shaped by a hotheading press at Jenkintown, plant of Standard Pressed Steel Co. STOCK Computer 25k Ct RKTMIiM. 2K INCREASED Ala lata .0 Computer Election .04 Fst Ala Sancsnars .24 Natl CitvCo Cnt .425 Pneumo Corp .15 TiMwattr Marim .175 CITRUS Citrus prices unchanged. Sunkist reports representative grange auction prices by site steady and higher. Sunkist first grade 40s SOS 4.00.

I2S Ml. Us 4.11. Ills 5.41, 120s 4.00. M3S Is. HAY Alfalfa S.

No. 1 17-7. U.S. 1 71-71. U.S.

No. 2 Leafy 74-74, US No. 2 Green 74-74; Oat hay 70-72. Grain hay unchanged. CARLOT WHOLESALE BEEF 7-1 4-27 4-20 7-1 0 7-25: 714 7-1 i 0-25 7-15 1 0 WASHINGTON A key economic adviser to the Saudi Arabian government, the major producer in the oil-exporting cartel, has revealed that his government is not interested in making investments in the Western world, especially in the United States.

Farouk M. Akhdar. an American-educated economist who is chief of the technical affairs office of the Saudi central planning agency, said that Saudi Arabia would not buy into companies, or try to acquire real estate or other properties in Western countries. Akhdar said that an attiti.de of suspicion in Congress leads the Saudis to believe their investments here might not be safe. "We are not going to invest in the Western world at all," Akhdar said.

But if the Saudis could be assured of "friendly relations." he added, "we might reassess this decision." Akhdar's flat statement ruling out investments here is in contradiction of assurances recently given Asst. Treasury Secretary Gerald L. Parsky by high Saudi monetary agency officials that the government is interested in portfolio investments here, not to exceed 57c of any one company. Akhdar rejected as inaccurate published reports that his mission in the United States is to use "the money weapon" to induce American pressure on Israel to compromise on outstanding issues in the Middle East. He said he is in this country on a speaking tour to dispel "misconceptions" about his country, and to meet with American officials.

He distinguished between investment, and what he called "savings." The latter category includes placement of a portion of surpluses earned on oil sales in U.S. Treasury bills and similar short-term deposits. "The U.S. is getting its share of (Saudi money in) deposits." Akhdar said. But he left the clear implication that if the Saudis could negotiate "friendly" deals with European nations that would provide a better rate of return, his government would pull its "savings" out of Treasury bills.

The principal misconceptions about Saudi Arabia, Akhdar said, are: That price rises in oil made effective by the Organization of Petroleum Exporting Countries have had a serious economic impact on the Nelson Corp. Lenders Convert Debt to Equity L. B. Nelson Menlo Park, said its major unsecured lenders completed previously announced plans to convert about $10 million of unsecured debt into about 560,000 shares of the company's convertible preferred stock. The stock will be convertible into 1,120.000 common shares, it said.

Choice 500-700 lb. local production steer beet 40. Breaking utility local cow bee) OMITTED SI. PRODUCE Rocor Intl Avacaddi: SoCai 20 layer km and cartons kaes 40s 0.00. REGULAR Cantaloup: Mei.jvmbocrat.es 34s 21.00 Aetna IncomShrs .00 Strawberries: Santa Maria and WatmvilK Alcoa Labs .04 MARK ANTHONY Realtors Builders Developers Apartments Shopping Centers Office Blags.

Interim Standby Permanent Quick Competitive Commitments Af.lERICAH FUKDIHG "We Umdartiamd row Problem!" REAL ESTATE LOANS DIRECT LOANS COLLATERAL LOANS 9570 WILSHIRE BOULEVARD BEVERLT HILLS (213) 2 78-30 J4 11-pint trays 15M.0O. financial CP Beam: San Diego County improved Ken- fnj Three indust lucky wonders per pound 20-25 cents. Cucumbers: San Diego County 14-404 car S1 J.T'i1 tons 5 50-4 00 Campbell Indust Lettuce: Salinas iceberg cartons 24s 1.75- Canadian industris 4.00. Dona Corp Onions: Coachella and Imperial valley' fla Gull RltvTr and Ariiona SO-aouM sacks yellow grane Aluminum medium S.SO-4.50. large S.00-4.00.

(ar Products .12 .20 .11 .10 .10 .34 .12 .05 .05 4-4 7-1 4-11 7-10 4-13 4-0 7-25 4-10 -27 4-H 4-20 4-25 4-14 4-11 4-30 4-25 1.075 Potatoes: Klamath Mane 50-POjnd carton; muusi i company revised record date. e. russets 70-M-OOs 7.004.00. sauOr isiMM r-MMh. uaiiatt Kidde.

Walter .20 .10 4-10 7-31 7-10 4-25 4-27 i 7-1 I and lugs small to small-medium 3.S0. Lemirt Lodoes Tomatoes: Mei breakers and riper carton Mar ley Co and lugs place pack S-bv-4 and largei Plantronks Polymer Materials Pro" Weekly feedlot and range sales ending Sharon Steel Friday: Demand good lor the very short sup. I sterling Stores .15 .05 .05 .25 .35 .05 .20 .20 .07 4-H 0-11 4-17 4-14 4-14 4-11 4-r 4-10 4-14 union inco fa 4.27 4-20 7-1 7-1 1 Wash National Wieboktl Stores invite, wvh vraoc sieer mei only lair pe- mand as the price spread between good and choice carcass beet widened. Slaughtered steer 240 mostly good, pounds 544.50 lor July delivery with four pet cent snrink. Slaughtered cows ISO utility grade standatd and good pourd young cows 33.00.35.00, utility range cows 1.000 sounds 24.00, three to four Re Bank Debits cent shrink.

Slaughtered calves 50 good and choice 470 pound heifers 3.00, three per cent shrink ttm i ammuc n. im Tr los Angeles Clearinghouse Assn. re- linn o. ui. ZZJTSX Pons Mondays gt 31.00, 100 standard and good 400 steers Conlinucd from 7th Page oil money, as has been rumored, Weinberger replied: "We searched worldwide for the money and were unable to secure it all the conventional, legitimate sources of financing.

"But with a $150-160 million price tag, no lender was willing to take that much of a risk at one shot." The Mark Anthony was the second recent unsuccessful effort to finance big new Las Vegas hotels in the class now occupied only by the Hilton (ex-International) and the MGM Grand. The other attempt was at the Tropi-cana. There, owner Deil Gustafson also failed to obtain financing for a high rise tower and resort-convention addition. He recently sold control of the ailing hotel-casino. Caesars World inserted the Mark Anthony obituary notice in a financial news release announcing that net income for the first nine months of fiscal 1975 included a $1 million writeoff of the accumulated predeve-lopment costs for the hotel.

"Management has determined that it was not possible to pursue this particular development concept." the announcement stated, "but is continuing to evaluate and discuss several alternative courses of action for the Thunderbird Hotel property. 'The company may have additional writeoffs if it has not made substantial progress with regard to this property by fiscal year-end." Asked for clarification, Weinberger said that Caesars World "under no circumstances intends to let that property lie fallow." He said the company has "lots of good ideas," but doesn't want to elaborate at this stage because of the experience with the ill-fated plans for the Mark Anthony. He denied recurrent reports that the 450-room Thunderbird, operated by the company, is up for sale. Asked why the departure in the customary spelling of Mark Anthony. Weinberger theorized that it was misspelled in the original announcement and that the company found it easier to continue the style.

Caesars World also reported net income for the nine-month period was $2,279,408 or 43 cents a share on $88.7 million revenues, compared to $6,927,597 or 85 cents on $70.3 million revenues a year earlier. Last year's figure included a $3.2 million extraordinary net gain on sale of marketable securities, which was equal to 46 cents a share. The company did not make a third quarter figures available. responding date last year, 52,104,311,400. San Francisco Clearings, 5100400,000.

pound steers 20.00. Mostly good 000-pounc heifers 20.50. three to tour per cent shrink Delivery current, f.oA. weighing point MALIBU i Treasury Bonds NOTICE To Certain Former Holders of National General Corporation Warrants of Class Action Determination: This notice Is liven parsvnrt to Rule 23 of the Fesenl Relet of Civil Procedure and pursuant to a Order of hdie RoOort I. Kelleher of the Ceatral District of California filed April 10, 1070 (Me "Order).

TM United States Olttrict Court for IM Central Oistrict ol California his, Oy Its Order, determined that the above salt may be maintained as a class action on behalf of all aerwei ntw owned National General Corsoralioo (hereinafter referred to as $40 aurtheM warrants on or before January 10, 1472 and who subseauently sold (a) between January II, 1073 and January 23, 1073 la eaen nirket transactions and (b) to American Financial Corporation (hereinafter referral to as "AT C) pursuant te its tender offer of January 21, 1071 as eitaeded. Itelueed from the class are persons who purchased after January 10, 1073 and also eiclud-ed are the individual oefeaoaits, their families and nominees, as well as partnerships, corporations, or other persons controlled by the defendants. CLAIMS ASSERTED IN THE ACTION The plaintiff commenced the above action on January 30, 1073 ayainst AFC, NGC, Eugene V. Klein and Daniel Schwartz and filed an amended complaiRt on February 7, 1073. The amended complaint illctei.

Inter alia, that defendants eniited in a fraudulent scheme to deflate the price of NGC warrants so that the warrants could be purchased at a more advm-tat eoos price. The complaint further alleges that false and misleiding statements were made in connection with AFC'S tender for the warrants and, further, that AFC failed to disclose material facts to the warrant holders. It is alleged that defendants violated various sections of the Securities Act of 1031 and various sections of the Securities Cichangi Act of 1034, as amended, and rules and regulations promulgited thereunder by the Securities and Eicnange Commission in that the Schedules 130 filed by Arc and the invitation to tinder published in various newspapers as well as other public announcements failed to disclose: That the closing prices for the warrants lilted in the invitation to tender were substantially lower than the closing prices siity days prior to the publication of the invitation; that the January 12, 1073 drop in the market price of the S40 warrant was a direct result of the actions of AFC and the other defendants; the ilternatives of eilrcising, holding, or tendering the $40 wamnts under the anti-dilution provisions of the warrant agreement and the impact of each course of action; the summary of the terms and conditions of the agreement by which AFC bad agreed to purchase approiimitely 1,000.000 shares of HOC common stock referred to in Paragraph 0 of the invitation to tender; whether prior offers to purchase had bean made; that certain officers of NGC had just rigned substantial employment contracts; and, finally, wtMther the beard of Directors of NGC had approved the tender The complaint further alleges that the defendants breached their fiduciary duty to the warrant holders. The complaint alsa alleges that the tender offer was part of a plan to squeeze out the warrant holders and to eliminate their call on the eeuily of NGC. Defendants have filed answers denying all liability or wrongdoing with respect to the allegations of the plaintiffs and have asserted various defeases.

The court has not passed on the merits of the claims or on any of the defenses thereto. Thoj) Right to Boa Excluded Elfosct of 0(jdgmnl and Rlgtit to Appooair By Countojl VOU ARE HCRERT NOTIFIED that the court will oicludc yea from the class if you request eiclusion by July IS, 1075. Any lodgment entered in the action whether favorable or not will be binding upon all members of the class who do not request eaclusien. vou may, it you so desire, enter an appearance through your own counsel if you do not request eiclusion. Tou must enter your appearance by July IS, 1075.

Copies of the notice are being mailed to the holders of record (as appears on the transfer records of NGC as of Jin. vary 10. 1973). All inquiries with respect to this Notice should be directed to Nelson. Liaer Merrifield.

attorneys for the plaintiff, whose address and teleplwni number ire as follcws: Sid Asked Bid Chg VM Rat Mat date S'l Aug 1475 0 ISXf Beach Octaoi Frotrfagg THE FINEST CONOO000NRM HOMES VET OEVELOPEO ON THE MOST DESIRABLE PRIVATE STRETCH OF DEEP SANDY BEACH OF 24 ONLY 11 REMAM UNSOLD $13,000 TO $11500 MODELS Open Doily 10 OJIL-Sunsot THE MALIBU 100.1 100.1 L2262S Pacific Coast Hwy. 4S84777 i FREE STANDING COMM. BLDG. I 2 Stoxv. 30.000 Sa 100.24 100.10 100.17 1 00.21 .1 100.22 1 00.24 .1 1 11 100.1 .2 100.4 1 00.14 .1 101.11 101.22 .2 41.24 11.21 .2 100.12 100.14 .2 11.31 100.3 .4 102.21 102.25 .1 100.12 100.14 .4 101.14 10t.1l .3 W.21 01.25 .5 102.11 102.15 .2 100.1 100.10 .5 41.10 100.2 .4 101.0 .4 101.5 101.0 .7 1014 102.10 .1 111 40.3 .4 11.21 01.25 101.5 101.0 100.10 100.11 .4 104.0 1044 .4 100.1 100.5 .7 MiiWilskireOist IMinitefJ ParkiRt Ptwereol far ijy yj, Covrtesi to Braker; 382-8274 102.1 102.1 102.11 .12 Mobile Home Park 165 Spaces it Desirable San Bernardino County, family park.

$250,000 dn. Shows over $19,000 cash flow in 1st. yr. of ownership. Principals only pleas.

10.10 10.24 .11 IRS Closes Loophole on Family Trusts 100.14 100.22 .0 101.21 101.25 .0 104.10 104.27 .0 Seo H7S Nov 1075 Dec 1075 Feb 1174 Feb 1074 Mar 1074 May H74n May 1074 May 1074 Jun 1074 Aug 1074 0 Aug 1074 Aug 1074n Sep 1074 Oct 1074 Nov 1474 0 Nov 1174 Dec 1474 Feb 1477 Feb 1077 Mar 1077 Apr 1077 May 1177 May 1077 May 1077 Aug 1077 Nov 1077 Feb 1071 May 1071 Aug 1071 Aug 1071 Nov 1070 May 107 Aug 1070 Nov 1074 Nov 1070 Feb 1000 May 1100 Aug 1N0 Nov 1000 Feb 1011 Feb tool Aug 1001 Nov 1001 Feb 1012 May 1002 Jun 147041 Aug 1004 May INS May 107545 Nov 1044 Feb ion May 1000 Aug 1017-42 Feb tooo-oi Feb 1001 Aug 130-01 May 1400-04 Feb 1015 May 1tt3-M 44.30 07.4 .12 4.04 7 7 S'l 44 5 41 4 4l 9t 4 4i 4a 4 i Ifk 7 44 7' 4 70 av. 4 VH 4 4t 7 4 4i 1 7 71 4H 1'. 4 4'a I'l l'4 4 4 44 iji 4' I 1 7 ft f'l Vt Robert J. Kelleher ROBERT J. KELLEHER UNITED STATES DISTRICT JUDGE Nelson, Litter Merrifield 606 South Olive Street Los Angeles, California 90014 Alt Richard G.

Ritchie (213) 485-1521 DATED: April 30, 1S75 10213 102 21 .25 7.01 04.21 17.4 .14 7.05 40.2 10.10 .14 7.07 11.14 H.24 .12 4.10 17.4 10.4 .4 7.00 11.17 10.25 .17 7.11 104.22 104.30 .11 7.31 Sap tntoTat lnagjnittrit (213) 378-0321 44.2 05.2 .12 17.21 10.4 .10 11.22 11.10 .20 10.4 01.4 .12 101.7 101.15 .17 7.34 7.11 7.45! 7 41 i 41 20 04.20 .10 102.4 102.10 .20 7.541 0O.2 01.2 .14 4.10! 14.4 15.4 7.11 I 71.30 00.30 .14 5.00 2.4 13.4 .14 4.511 11.2 12.2 .2 7.15 10.0 11.0 .20 5.30 101.2 101.10 .10 745! services may be his or her regular employment, with the paychecks being made out to the trust instead of the person holding the job. In one case, the husband, his wife and a third party were the designated trustees of the family estate. By majority vote, they could spend money in any way they wished, while also paying themselves fees from the estate and living in the residence that was transferred to the estate. But the IRS ruled that the individual is treated as the owner of a family estate trust and therefore is required to include the income, deductions and credits of the trust in his taxable income. In addition, it said the federal estate tax is applicable to property owned by the family estate upon the death of the person who transferred property to it during his lifetime.

It ruled that the family estate arrangement is an association taxable as a corporation and also that transfers to a family estate by a trustee do not qualify as gift taxes under federal law. Among precedents the IRS cited for its trust ruling was a 1973 ruling that a person who earns income cannot avoid taxation by diverting it to another entity. IRS Commissioner Donald C. Alexander earlier this year had included the family estate trust as an example of "tax avoidance schemes being promoted as loopholes in tax law." WASHINGTON (AP)-Family estate trusts cannot be used to avoid payment of income or estate taxes, the Internal Revenue Service said Monday in a ruling aimed at closing so-called tax avoidance schemes. A spokesman said family estate trusts have been promoted as way of avoiding taxes in 26 states, especially those in the West and Midwest.

"We have received information that this was being promoted, and we came out with this ruling," he said. The way the scheme works, he said, is that an individual transfers his or her property and "lifetime" services to a family trust. The property may include a home, income-producing securities, and the T(S sto 1.0 1 2.0 .14 5.05: 10.10 11.10 .30 5.40 N.20 01.20 .24 7.43 17.2 11.2 .11 7.70 i 1.10 .22 5.74 N.10 0.10 10.14 0.4 11.10 .24 4.42 11.14 .22 741 1.4 .20 4.15 far mm NOV 1TII 1.04 May 1H4.H 10J.J1 104.211.0 Feb 1415-00 11.14 11.101.0 7. IU May 200045 102.0 102.4 1.4 1.05 Treasury Notes. Bid and asked prices ouoted in dollars and thirty seconds.

Subject to Federal taxes but not to State income taxes. CLASSICAL-CHIC 3S We mind our own business. Gives our analysts' thinking on how the current economic Rlunicipal bonds. It's excellence. Said Fortune in 2 i -ovo.

d-ijpi tin rC aTV aT The people in Security Pacific Bank's bond department are specialists; all of climate could affect the OTC market. Included: background information. 1974 and estimated 1975 earnings, pe ratios, dividends and yields lor the over-the-counter stocks we're bullish on right now. For your copy, just mail coupon. No cost or obligation.

1 of the world's i their time and energy is spent selecting great known mi 1 bond issues for our customers, corporate and individual. L-J mm kV I match, or ev en rlV surpass more famous hotels in the fineness of "Over-the-Counter Bulletin" Mail to: Merril Lynch 1 P.O. Box 6260, Los Angeles, Calif, 90055J I pnnl I If you have a question about municipal bonds, or would like to know more about our services, let us send you free "A Brief Guide to Tax-Exempt Municipal Call our bond department, (213) 613-8455 and ask for Bob Fining. 1 Mr. Mrs.

Miss Address I City their furnishings and the excellence of their Exactly. Fashions change, but classical hotel traditions State have kept us everlastingly chic. Call 213-483-8791 or 800-252-0063, Chft HomePhone Business Phone Merrill Lynch customers: Please give name and oflicc address of Account Executive ii Taylor, San Francisco weUKa 1 0JCTuMSaTewp TEL III FT II SECURITY PACIFIC BANK Bond specialists for the individual. Merrill Lynch Pierce Fenner Smith Inc. Ql970 SPNB.