The Los Angeles Times from Los Angeles, California on September 27, 1968 · 61
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The Los Angeles Times from Los Angeles, California · 61

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Los Angeles, California
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Friday, September 27, 1968
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61
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T T T " " ' - - , - i m - - -- Atlantic Richfield Sticks to 15 Gain Prediction President Sees Alaska Discovery as Once-in-Lifetime Break for Company BY MICHAEL C. CHAPLIN Tin Staff Writer Atlantic Richfield Co. is holding to its previously disclosed prediction of a 15 increase in 1968 earnings, Thornton F. Bradshaw, president, said Thursday. Speaking before the San Francisco Society of Security Analysts, Bradshaw said the company is "on schedule and barring major unforeseen difficulties achieving the goal still seems reasonable." Earnings for the first six months of 1968 were $70.23 million or $2.33 a share, about 14.1 above the $61.54 million or $2.00 a share for the first half of fiscal 1967. Sales for the six month period were $840.3 million for 1968 vs. $727.7 million the year before. In fiscal 1967 the company earned $130 million for $4.28 a share as adjusted for the subsequent 2-for-l split on July 15 of this year. Based on Bradshaw's projection, Atlantic Richfield should earn about $149 million or $4.86 a share this year. Formed in 1966 Atlantic Richfield, formed by a merger of Richfield Oil and Atlantic Refining in 1966 has shown a surprisingly strong growth record. The year of the merger earnings jumped 25.6. Last year profits were up 15 and the company now ranks tenth among U.S. oil companies in crude and liquids output and petroleum products sales. Looking beyond 1968, Bradshaw told the analysts that "the same general factors would seem to indicate an annual profit growth of 10 to 12 for the next several years is a reasonable target. This sort of long-range objective assumes, of course, favorable economic conditions and reasonable prices." Bradshaw said that the recent oil discovery on the North Slope of Alaska, 390 miles north of Fairbanks, "provides us with a once-in-a-lifetime opportunity to reshape the company over the next five to ten years." Referring to an announcement by independent petroleum consultants, DeGolyer & Mac-Naughton of Dallas, which estimated the recoverable oil reserves of the North Slope at 5. to 10 billion barrels, Bradshaw said "we would not have let that statement go out if we did not believe the figures." He added that the foremost implication of the discovery is that it should put Atlantic Richfield "over the top" in petroleum self-sufficiency. "Self-sufficiency in the raw material of our basic business will give us greater flexibility in taking advantage of future Firm Relocates LG.I. Associates, space planning and graphic design firm, has relocated to larger quarters at 672 S. LaFayette Park Place, Michael Sanchez, president, announced. Auditors Atlantic Richfield Company has several openings on its Corporate Audit Staff in Los Angeles, New York and Philadelphia. These positions involve managerial and financial audits of all phases of the activities of a dynamic, integrated oil company. Opportunity for domestic or international travel (35). We are seeking individuals who are strongly motivated and interested in professional development and opportunity for advancement. Candidates must be college graduates, and a CPA or MBA is desirable. We require several years of business experience. All replies will be acknowledged and held in confidence. Please send resume, including salary history, to Roy Johnson. AtlanticRichfieldCompany P.O. Box 2679, Terminal Annex Los Angeles, California 90054 "An Equal Opportunity Employer" opportunities for growth, whether they pertain to our chemical and nuclear business or our petroleum operation." he added. Atlantic Richfield shares the North Slope lease with Humble Oil & Refining Co. Commercial development will require 3 to 4 years, but pipelines and transportation studies are under way. "The specific geographical area covered by the North Slope reservoir extends beyond our acreage, so other wells will have to be drilled, both on our acreage and that held by others, before the definite limits are known. We are moving ahead with plans to find out just how much . crude oil is recoverable from the reservoir," Bradshaw said. In the meantime he said, "we intend to operate the business so that our profit growth continues to be incrementally better than the rest of the industry as a wThole." PRIME RATE Continued from 16th Page - In Seattle, First National Bank, largest in the Northwest, dropped i t s rate to 6 14 despite "pretty heavy loan demand." The Central National Bank of Cleveland, Cleveland Trust Co. and State Street Bank & Trust Co. of Boston also dropped to 6 14. The Trust Co. of Georgia reduced its rate to 6. South Carolina Bank First The first move in the series of reductions was on Aug. 16 when National Bank of South Carolina lowered its rate to 6 14. It was followed on Sept. 10 by First Pennsylvania Banking & Trust Co., Philadelphia's largest. On Sept. 18, the National City-Bank of Minneapolis announced a one-half percent cut to 6, followed by a cut to 6 by First National State Bank of New Jersey. In January, 1967, Chase Manhattan also cut its prime rate (before a round of increases) to 5V2 from Cosmodyne to Acquire Utility Helicopters Inc. Cosmodyne Corp., Torrance, has signed a definite agreement to complete the acquisition by Oct. 15 of Utility Helicopters Inc., privately-held Long Beach firm, for an undisclosed amount of Cosmodyne common stock, on a pooling of interests basis. Utility Helicopters has been offering transport service to the West Coast offshore oil industry since 1961. Sales for its last fiscal year were under $1 million. Cosmodyne' s sales for the first half of 1968 were $11.9 million and net earnings $480,680. Rexall Drug Buys Canada im f x m9nUl9CllirGr Rexall Drug & Chemical Co., Los Angeles, announced Thursday the acquisition of John Walter & Sons Ltd. of Kitchener, Ontario, Canada, for an undisclosed cash price. The Walter firm manufactures decorative . wall accessories and furniture carvings which it markets in Canada under the trade name Durwood. Walter's 1968 sales are estimated at $750,000. A Rexall spokesman said the Canadian firm will continue to operate with current management as a unit of Rexall's Home Furnishings and Syroco divisions. Rexall also announced an $18 million expansion and modernization plan for the Thatcher Glass Manufacturing division of its Glass Container group. Of the expansion budget, $15 million will be spent over the next year to increase capacity of bottle plants in Wharton, N.J., and Lawrenceburg, Ind. The balance will be allocated to modernization of other company plants. 6. Then, too, the majority of the industry differed, dropping only to 5 34, which prevailed for almost three months. W. James Robertson, vice president in charge of loan administration for Wells Fargo in Southern California, said: "The demand is there now to keep the rate at 6V. It's not tremendously different from 90 days ago. But for competition, the rate would still be 6." He said Western banks "have to get in line if New York reduces the rates" or prime loan applicants would seek their money in New York. Franklin Stockbridge, senior vice president of Security-Pacific, said "demand is not causing any overpressure," however. He said key changes In the short-term money market "in the last few weeks" include reductions in rates on Treasury bills and commercial paper. But Stockbridge said it is probable rates will bounce higher again. "Looking to the future," said Stockbridge, "even this period of ease is likely to be a temporary phenomenon in terms of months, and that a year from now the rate is quite likely to be back up to 6V." He also noted that the lowered prime rates do not automatically mean a lowering of consumer loan rates and that Security is not cutting its consumer rate now. This announcement is not an New Issue Copies Bear, Stearns & Co. Hayden, Stone Incorporated Bacon, Whipple & Co. Faulkner, Dawkins & .. i- v - - . Laird McDonnell & Co. Oppenheimer & Co. C. E. Incorporated .Incorporate ' . . .. PARVIN-DOHRMANN Con tinned from 16th Pago much. The company's earnings slumped sharply last -year to 48 cents a share, vs. $121 in 1966. The drop, Parvin said, was due principally to what he termed "start-up costs" incurred from a move to a new expanded headquarters complex. Parvin told shareholders that his forecast for 1968 was dependent upon (1) inclusion of Aladdin Hotel earnings and (2) "that the Parvin and Dohrmann companies will be able to install and invoice the work scheduled for completion this year." Business John Lundegard has been named to the new post of assistant to the president of May Co. of California, Los Angeles ' . . . Donald G. Malcolm has been named vice president-Western Region, Los Angeles, for Computer Applications Inc. He succeeds Dr. Ward C. San-, gren who has been named Coordinator of Computer Activities for UC . . . H. B. Watson has been elected a director of Houston Fearless Corp. Watson is president of California Electric Construction Co. O. M. Bell, president of Macrodyne Inc., has been elected a director of Intel-lectron Inc., Sherman Oaks . . . George Corliss, formerly president of Continental Bank of Beverly Hills which has been merged ' into the United States National Bank, has been named vice president-manager of the Beverly Hills office of U.S. National Bank. $ p Kleiner, Bell & Co., Incorporated announces a New York Over-the-Counter Trading Department The following nine telephone lines provide direct access: (212) 425-0190 through 425-0198 Our Beverly Hills Principal Office provides trading facilities directly through: (213) CR 8-1300 or (213) TR 8-1300 Kleiner, Bell & Co. 140 Broadway New York, New brk oiler to sell or a solicitation of an offer to 700,000 Common Stock ($.10 Par Value) Price $13.00 per share of the Prospectus may be obtained in any State from only such of the several underwriters, Including the undersigned, as may lawfully offer these Securities In such State. F. S. Smithers & Co. . Dominick & Dominick, - , , " . Incorporated Clark, Dodge & Co. Goodbody&Co. Incorporated VV. E. Hutton & Co. Walston & Co., Inc. Blair & Co., Inc. Carter, Berlind & Weill, Inc. Sullivan Securities Inc. The company earned 31 cents a share in the first six months, vs. 16 cents in the yearago period. Prell Hotel Corp. operated at a loss ($63,961) in the year ended last Nov. 30, but had a net profit of $290,250 in the four months ended March 31. However, from December, 1965 to last March 31, it has accumulated a retained earnings deficit of $937,882. March 31 liabilities were $2.5 million and assets were $1.2 million, for a working capital deficit of $1.3 million. Parvin - Dohrmann & People Dr. Augustus B. Kinzel, metallurgist, has been elected a director of Men-asco Manufacturing Co., replacing Raymond H. Rice who has resigned ... Richard A. Marymee, James E. Peterson and Kenneth R. Taylor have been elected vice presidents of the Charles W. Carter Co., Los Angeles. Aerojet-General Given Contract Aerojet - General Corp., El Monte subsidiary of General Tire & Rubber Co., Akron, Ohio, has been awarded a $6 million contract for construction and startup of a new telecommunications facility in Morocco. When fully operational in 1978 the station will have a 132-channel capacity linking Morocco with the United States, Europe, the Near East, and other African countries. INCORPORATED buy any of these Securities. The offering Shares GYBER-TRONICS, INC. Gregory & Sons loaned Prell "51.25 million ' during the course of negotiations but Prell is current in its repayments, Parvin said. Due to restrictions in Nevada law limiting publicly held companies from acquiring casinos (each stockholder has to register with the state, a practical impossibility, for companies with thousands of shareholders), the Aladdin was acquired through a dummy company, in the same manner as Parvin-Dohrmann's acquisition of the Fremont. " This "fictional company" is owned by the parent and in turn owns the two casinos. It makes its profits through collection of rents from the casinos. Vice President Silbert said after the meeting that hopefully publicly held companies will be able to avoid this roundabout method (which Silbert termed "legal gymnastics") in the future. . Nevada has softened its law, allowing public companies that meet certain qualifications, such as $50 million of net worth, to acquire casinos. Such firms could be licensed only if each director and holders of 5 or more of the stock qualify for a license. Under the rules, Parvin-Dohrmann doesn't qualify, so it had to take the Name ohnn. jJWdress j 9756 Wikhire Boulevard Beverly Hills, California is made only by the Prospectus. September 27, 1968 Hirsch & Co.; Incorporated Unterberg, Towbin Co. dummy company" route again. In terms of profits, the results are the same, but the method is bothersome, Silbert said. Nevada now is considering a further liberalization The frlan from Merrill Lynch talks about tax-free income;; from municipal bonds If you're in one of the highertax brackets, you ought to find out about municipal bonds. They provide a steady income that is not subject to Federal income tax. For some people they can mean a substantial saving. . - You'll receive a thorough briefing on tax-free municipal bonds at a special forum we're holding. Our speaker will explore the many investment potentialities of these securities. He'll also be glad to answer your questions about municipal bonds and how they might fit into your portfolio. Whether you own any municipal bonds or not, it might pay you to attend our: Municipal Bond Forum Tuesday October 8 in the Conference Room of Balboa Bay Club Newport Beach 1221 West Coast Highway starting at 7:30 P.M. sharp Want to come? Simply call Mrs. Waller at 547-7272 for reservations or mail in the coupon below. No charge or obligation of any kind. Please reserve seats for your Municipal Bond Forum on Tuesday, October 8 at Balboa Bay Club, Newport Beach. Name. Address. City & State-Phone ETC QI MERRILL LYNCH, PIERCE, FEN1MER S. SMITH IN 1001 NORTH BROADWAY, SANTA ANA 92702 Telephone: 547-7272 For th convenience of investors our office it open daily from 7 a.m. fo 5 p.m. and Saturday from 9 a.m. fo 12 noon. Visit any Empire Savings office and show us a savings passbook any savings passbook, or just come in, We think you'll be pleasantly surprised at the very interesting, informative gift Empire Savings has for you as a reward for being thrifty. FREE SAFE DEPOSIT BOX when you maintain an account of $1,000 or more EMPIRE SAVINGS accounts insured to $15, 50C (5 .25) Bonus Accounts pay 5 regu-lar passbook daily interest quarterly plus .25, current annual bonus rate, after 36 months on accounts of $1,000 or more in multiples of $1,000. 5.1375.00" compounded daily and maintained a year. "INSTANT INTEREST" on all accounts. Funds earn regular interest to day of withdrawal, when in 3 months, and from data of receipt, paid or credited quarterly. ' , EMPIRE SAVINGS AND . You Can Make Money Trading- And you can lose too. Flitting from one stock to another is hardly advisable. A well devised plan makes more sense. Trading . takes capital, dedication, good advice and steady nerves. We don't recommend it for everyone. However, if trading interests you, ; call us. We'll try to prevent the kind of 1 results that caused one hapless trader to remark, "There ought to be a better way to start the day than by getting up in the morning." S 3 - noin Mm Jackson &Gmy,im Un Ml I Memben of the New York Stock Exchange I OkOk Memben of Pacific Coast Stock Exchange I Lot Angelts: 811 West 7th St MA 0-1089 I . San Bamardlno: 350 West 5th St TU 5-3483 I Van Nuyi: 14547 Victory Blvd. 787-8100 oa Snfftlr 0 Zimtit 17; Fri..Scpt.27.1968-PartlB, of its restrictions on publi companies acquiring casi-l nos and will decide early! next year, Silbert said. ' ZipuL Earn 5.13 on all accounts when our 5 current annual rate is LOAN ASSOCIATION 1A m-J. 0? Sunst' BM. fw f at Westwood Blvd. I 1 ' t 'J 1 Westchester I f I 1 On Sepulveda Blvd. I at Manchester Ave. IL (Main Offic.) I k 1 Van Nuys and I Vjnowen Pilot Vtrdtt S Estates 1 jmg" k 36 Maliia Cove rtlt V I Jt&gm -jgk Pecoime fWW jpw On Nordheff If JPJJm! 1 and Woodmia I Ufwss'"" I linf Beach I f I Downtown at I I 5th 4 Pacific I I Santa Ana I 1 I On W. 17th 000 1 1 E. of Bristol I

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