The Los Angeles Times from Los Angeles, California • 39

a INSIDE THE MARKET Federal Rules to Curb Bank Robberies Issued Observers See Denny's Ahead Without Caesars BY ERNEST A. SCHONBERGER, Times Staff Writer Merrill Lynch invites investors to a forum on over-the-counter securities WASHINGTON iS) New rules to make the 33,000 national and state banks harder to rob were announced Monday by federal regulatory agencies. There were 2,551 federal bank robberies resulting in losses exceeding $15 million during 1967, the last year for which firm figures were available. These robberies resulted in 23 deaths and C8 injuries. in 19GS The Federal Bureau of I stigation estimates there were 2,658 bank robberies during 1968, compared to 526 fifteen years ago.

Bank security officers will be required to consult with local law enforcement officers and to install the degree of protection dictated by the incidence of crimes in the area. Each bank is required to name a security officer this year and file a report by March 15 on its existing protection facilities. By July 15 each bank must' develop a written security program approved by its board of directors. By next Jan. 1, the bank must have this program in effect including installation of a vault area lighting system, tamper-resistant exterior door and window locks, an alarm system, and other essential security devices.

The agencies issuing the regulations were the Federal Reserve System, the Comptroller of Currency, the Federal Deposit Insurance and the Federal Home Loan Bank Board. Get the facts on the bigest security market in the country. Many investors miss opportunities because they don't understand the over-the-counter market. Here's your chance to learn what that market is and how it operates. To find out what kinds of securities are traded over-the-counter.

To get a thorough briefing on how to buy and sell over-the-counter securities don't miss our: Over-the-Counter Forum Tuesday evening, January 21 Sportsmen's Lodge, Vista Room 12825 Ventura No. Hollywood starting at 8:00 PM sharp Be sure to bring your questions with you! There'll be plenty of time to answer any questions you may have about the over-the-counter business. If there are any stocks you'd like opinions on, just ask; and we'll be glad to find out what our Research Department has to say about them. Reserve your seats today. Simply call or mail in the coupon below.

No charge or obligation, of course. Creative Investment Ideas Fibreboard to Buy Rest of Lumber Firm SAN FRANCISCO (DJ) Fibreboard which has owned a 50fi interest in Pickering Lumber Corp. since 1965, has entered an agreement to acquire the remaining 50 interest from Yuba River Lumber Co. in an exchange of stock valued at about $11 million. The transaction will result in Pickering becoming a wholly-owned subsidiary of Fibreboard on a polling of interest basis.

The acquisition will be completed before the end of the month. John V. Vaughn CHAMBER Continued from 7th Page was elected board chairman of the chamber. Gordon was chamber president last year. William A.

Simpson president of the construction firm bearing his name, is the chamber's new senior vice president. Elected vice presidents were Gordon L. Hough of Pacific Telephone; Arthur W. Vienna of General E. Thilip F.

Walsh of Southern California Water and E. E. Wall of Standard Oil of California. Kai Jorgensen of Hixson Jorgensen was named treasurer. New directors are Howard P.

Allen of Southern California Edison; Donald M. Anderson of Sunkist Growers: Norman Barker Jr. of United California Bank; Warren H. Crowell of Crowell Weeden; Maurice J. Dahlem of Price Waterhouse; and Albert A.

Dorskind of MCA Inc. Also newly elected to seats on the chamber's board are Frank M. Gue-rin of Southern Pacific; Philip M. Hawley of Broad way Department Stores: Durward Howes Jr. of B.

D. Howes Son; W. M. Jacobs of Southern California Gas; Frederick Llewellyn of Forest Lawn Memorial Parks; and Leonard Marks Jr. of Times Mirror.

Other new directors are Ruben F. Mettler of TRW; William Neff of Trans World Airlines; Albert Quon of Quon-Quon Edward Tillman of Bank of Finance; and Hale Warn of Title Insurance Trust Co. moved around sharply on being linked to Caesars. Vernitron rose $6 a share one day just on rumors of discussions, then fell back when Denny's disclosed its efforts.) Kaplan thinks Denny's management could be successful running Caesars hotel, food and other service operations "but the casino is a gamble. It's not as controllable." He said the main attraction of Denny's stock has been that the firm has exercised very good controls.

"Even with the hotels, it's a big risk thing. I've seen a 1t of hotels go broke in Vegas. Denny's doesn't need that kind of risk." Jay Sarno, financial vice president and a major stockholder of Caesars, disagrees about the risk. "Caesars Palace more than any other hotel can expect earnings increases because we have alert, flexible management. We're not afraid to make changes." Sarno says the food service operation at Caesars has lower profitability than a normal restaurant operation.

The liquor profitability he calls "decent-normal." Net income from running the hotel, he says, is "lower than normal because we don't have the rate structure. A hotel in New York would charge half again as much." 'Profit Area Is Gambling' For Investors who might think about buying into any other listed company that considers joining the Caesars takeover race, Sarno has some other pointed words that indicate the acquiring firm better know how to run a casino or find a ready manager: "Let's face it. The main profit area is gambling." Nonetheless he disputes Kaplan's inference that a lot of area operators went bankrupt. He says the Bonanza Hotel was the only one to declare bankruptcy in about five years and that struggling firms are few and far between. As to the stock of Denny's minus Caesars Kaplan thinks it "still could be a winner in 1969" despite its climb of more than last year.

He says Denny's has some other acquisitions planned. His views jibe with those of the Eastern investment banker as to Denny's likely earnings growth 30 to 40 a year for at least two or three years. Net in the current fiscal year is estimated by various analysts at 80 to 90 cents a share. Several think investors who buy at current prices will be well ahead in several years. Said one: "I don't see anything negative now that the Caesars merger fell through." He said a major factor is that Denny's has developed a young, "first rate" management team.

Thirteen mutual funds held blocks of Denny's at the end of November, according to Vickers Guide to investment company portfolios. Their holdings totaled about 700,000 shares, including an Enterprise fund position of 425,000 shares worth about $15.3 million at current market prices. As much as it would appear that investors were "enthusiastic about Denny's Restaurants' proposed acquisition of Caesars Palace, some financial observers think Denny's is better off now that the deal has been called off. A Hollywood-based broker, in effect an analyst of the firm, says Denny's offered too much considering Caesars' earnings (estimated by Caesars management at $3 million in the year ending April 30, 1969). He feels, furthermore, that Denny's was taking too big a risk getting into casino operations in contrast to its forte in food service.

Holders Reported Nervous An Eastern investment banker, who asked not to be quoted, says word around "Wall Street has it that some holders of Denny's were nervous about the prospect of 2 million shares winding up in the hands of a few big holders from Las Vegas. And Denny's itself although stressing negotiations were halted by mutual consent doesn't seem upset that its first fling at the glamorous world of gambling didn't work out. The firms, which had agreed to the acquisition in principle, announced over the weekend they couldn't reach a definitive agreement. F. Wayne Withers, financial vice president of La Mirada-based Denny's, said Monday: "As we got further into the thing, we decided mutually not to go ahead with it." He said the decision was made Friday.

He and a Caesars spokesman said there were a number of complicating elements but that tax bottlenecks were probably the most difficult. So now Denny's slock is back about where it was before the proposal was announced after a roller coaster ride. The stock spurted $15 a share to $52 in a few trading days in late December. It had slipped to $38.87 by last Friday and to the $35 range Monday. Withers called Las Vegas "a rapidly growing tourist area" but gave no indication Denny's would try another way of getting into gambling there.

He did note that his firm has six Denny's Restaurants there, one Sam's Roast Beef house and some Winchells doughnut driveins. First Outside Venture This would have been the food service company's first venture outside the field. Withers said his company would consider other non-food businesses "should the right opportunity present itself." What kind? Could be motels, travel or hotels, he said analysts have been told. Marvin Kaplan of the Hollywood office of Merrill Lynch, Pierce, Fenner Smith, thinks Denny's offer of 2.12 million shares of stock which bounced around in value from about $70 million to $110 million was "much too much." Other offers for Caesars reportedly had ranged up to $60 million. (Many stocks Please reserve seati for your Over-the-Counter MORGAN, OLMSTEAD, KENNEDY Forum Tuesday, January 21 at the Sportsmen's Lodge.

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We don't claim that they're foolproof, of course. In fact they're only presented for our more sophisticated customers people who want the rewards and That's the title of something we think is must reading for anybody who thinks of himself as a thoroughly seasoned investor. Because this is the booklet we asked Leslie Pollack, our Partner in charge of Re Curbs on Speculation III NAME 0 ADDRESS 7 ZIP XV CITY STATE PITTSBURGH (DJ) i nghouse Electric Corp. said it has been "approached" by several companies interested in acquiring the company's molecular electronics division. The company announced last month it was dropping outside sales of integrated circuits.

This would free production facilities at the Elkridge, plant. between the United States and South Africa. The source said that this agreement is being kept tacit and no statement is being issued because it was felt that any written statement might imply that the measures aren't temporary and therefore might be subject to political scrutiny and can afford the risks of market speculation. If you feel that you fall in that category yourself, get a copy of "Basic Strategy for the Aggressive Investor." You can call, come in, or simply fill out the cou search, to prepare specifically for the benefit of Reynolds' customers who fall in that category. Here, in just 12 fast-reading, fact-packed pages, Pollack takes you step by step through ten of what he thinks are the most important rules and ZURICH (DJ) The central bankers meeting in Basel ended Monday with a decision to impose limited national monetary discipline until a major a i speculative defense system can be worked out.

A source close to the Swiss National Bank said it was now up to the central banks individually to try to sort out the problems as they arise and seek remedy in temporary measures as in France and Sweden. The source said these are temporary decisions until better proposals can be worked out and the gold problem settled pon below. Please send me a free copy of "Bask Strategy for the Aggressive Investor." "The feet that our analysts are reaonaHv located Name Address City Telephone MERGERS ACQUISITIONS Rapidly expanding dynamic public growth corporation seeks to acquire profitable privately owned concerns. Management will be continued. P.O.

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But in order for him to intelligently recommend electronics stocks to buy, he must visit electronics companies in other regions around Boston, for example. "And third, the analysts travel to a central location, usually Chicago, at least once a month to compare notes." After a mo- t- We are pleased to announce the installation of a direct private wire to Singer Mackie, New York Our investment analysts are located in New York, Chicago, Los Angeles and San Francisco. The logic: so they can be near the companies they analyze. But recently, Fred Davidson, our controller, complained, "Their travel expenses don't seem to be any lower than if they were all in New York." Here's the explanation we gave him: "First, the purpose in locating our analysts in different regions is not to save money. It's to enable them to quickly gather, first hand, large numbers of facts about most of the companies they analyze.

"Second; the analysts are not restricted to' their regions. Our electronics analyst, for example, is located in Los Angeles because. most publicly- Fred said. "But shouldn't their expenses uc ai Lester, Ryons Co. I Transamerica Corporation has acquired Foreign Study League tht undersigned initiated this transaction and Assisted in the negotiations leading to its tomplttion.

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