The Los Angeles Times from Los Angeles, California on May 21, 1969 · 59
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The Los Angeles Times from Los Angeles, California · 59

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Los Angeles, California
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Wednesday, May 21, 1969
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59
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m&iiiill,nwwili.i.i l'lf ii Minima nil r,ffi """"I Deliberate Low Bid Hinted in C-5A Contract Lockheed Denies Charge by Air Force General Before House Committee iisincss & finance 2 WEDNESDAY, MAY 21, 1969 Part III g National News NYSE signed an agreement for block trading automation devices. Bunker-Ramo Corp. will provide desk-top terminal equipment for the new block computerized system to be installed by the New York Stock Exchange. The contract provides for installation and service of $2 million in equipment for subscribers to the system. It will provide computerized matching of buy and sell interests for subscribers with blocks of 5,000 or more shares, or blocks with a minimum value of $200,000. The system is expected to be in operation by next year. New car prices are dropping, with dealers pushing discounts. Some buyers are getting cars for $300 less than it would have cost them in April. Further price cuts are expected during the summer with the impending introduction of 1970 models. Some West Coast General Motors dealers are already getting an immediate 5 rebate cn sales. The rebate, often passed on o the buyer, usually isn't offered until new models are introduced. Time Inc. bought 10 semi-weeklies in the Chicago north shore area. Lloyd Hollister, Inc. and two affiliate companies sold the tabloid size semi-weeklies for an undisclosed price. The papers have 350 employes, a total circulation of 65,000, and grossed $5 million last year. The income figures included revenue from commercial printing. Fannie Mae increased its rates on short-term discount notes. The new rate schedule includes an increase to 6.10 on 30 to 59 day notes, up from 5.90, said the Federal National Mortgage Association. The rate on 60 to 80 day notes was raised to 6.30 from 6.25. The rate for 90 to 270 days note?? will be 6.45 up from 6.35. Airlines made final pleas to the CAB for new South Pacific routes. Each of the four applicants-American, Continental, Eastern and United tried through oral arguments to convince the Civil Aeronautics Board that it and it alone should be granted a new route from mainland cities via Hawaii through the South Pacific to Australia. Final approval of the route and carrier selected by the board is up to President Nixon. He previously rescinded a South Pacific award to Continental that had been approved by Lyndon Johnson. Gulf Oil reported promising ore findings in Canada uranium. A Gulf subsidiary and an associate have encountered "ore grade mineralization" in six holes in a uranium prospect, Gulf reported. Three rigs are working on the prospect, in the Athabasca region of northern Saskatchewan. The ore grade holes are at various locations within 400 feet of the discovery hole. Mineralization has been encountered to about 700 feet, but the lower limit hasn't been located, said Gulf. Gulf Minerals Co., a wholly owned subsidiary and Gulf Oil Canada Ltd., an affiliate, are drilling the holes. Shoe Corp. shareholders voted a stock split and a name change. The common stock will be split two for one and an additional share distributed for each share of record on May 23. Shareholders at the annual meeting also voted to change the company's name from Shoe Corp. of America to SCOA Industries Inc. The Ohio firm will merge into a Delaware subsidiary with the new name changing the state of incorporation. American Broadcasting predicted record second quarter earnings. Leonard H. Goldenson, president, told the annual meeting that profits for the second quarter, which ends June 30, should "exceed" the record $4.3 million or 92 cents per share reported for the second three months of 1968. "With a continuation of the favorable business environment, particularly in broadcast advertising, we look forward to a higher level of earnings for the full year 1969 compared with 1968," Goldenson said. Last year, American Broadcasting earned $2.66 per share. DuPont and Armstrong Cork Co. announced some price reductions. Prices on Nomex nylon paper used for electrical installation will be reduced by an average of 12, DuPont Co. announced. Armstrong Cork said it was cutting prices by about 7.7, effective immediately, on two major lines of vinyl corlon sheet flooring. A price increase of 5 on aluminum siding and accessories, rain carrying equipment and shutters was announced by Aluminum Products Inc., an operating unit of Am ax Aluminum Co. Allegheny Ludlum Steel boosted base prices on a variety of nickel-bearing products which will be raised a quarter of a cent per pound for each 1 of nickel content. A cable television spokesman accused the FCC of harassment. Frederick W. Ford, president of the National Cable Television Association, said that Congress should transfer regulation of the industry to the Commerce department. The FCC has made proposals and rulings to "restrict, harass and contain" cable television, he told a House subcommittee studying legislation on regulation of CATV. Ford said his association has 1,000 members serving about 50 of the nation's cable television subscribers. The former Armour chairman quit as a Greyhound Corp. director. William Wood Prince was forced out as Armour's chairman and chief executive last month by Greyhound and General Host Corp., which together own 90. of Armour. Prince resigned Tuesday from the Greyhound board, Greyhound president Gerald H. Trautman announced at the annual meeting. Shareholders voted to increase authorized common shares from 36 to 50 million. The company said it has no immediate plans for using the additional shares. Trautman said Greyhound is involved in dual negotiations to keep its Armour shares or buy additional ones. California Zoecon Corp. continued its sharp price and volume rise on the PCSE. The spinoff of the Syntex Corp. hit a high of 60 Tuesday and closed at 5678 on volume of 44,000 shares. The initial trading price was in the low 20's when the stock was listed on the Pacific Exchange in early February. Rumors that it had developed important biological pest control materials drove the stock in the 30's. Barron's reported early in May that the company was ready to market a product which killed pests without leaving a trace on plant or animal life. The stock closed up 10 34 points last week and was the third most active on the exchange. A company spokesman said Tuesday he knew of no reason for the sharp price jump. National General, Parvin-Dohrmann ended their talks concerning merger. Both companies said they have terminated exploratory discussions about the possibility of National General acquiring Parvin-Dohrmann. Preliminary talks between the two Los Angeles-based companies started last week in New York. National General, a movie theater operating company, has expanded into other activities including insurance. P a r v i n - Dohrmann, which operates three hotel-casinos in Las Vegas, has been" under investigation by financial agencies over the control of its stock. . Cooperation was urged between the Los Angeles and Long Beach ports. Hints of friendlier relations between the feuding ports came in a World Trade Week speech Tuesday by Dr. Robert Fenton Craig, president of the Los Angeles Harbor Commission. William A. Harrington, of the Long Beach Harbor Commission, was in the audience of the Los Angeles Transportation Club and the National Defense Transportation Assn. at the Bilt-more. Now that oil revenue is not so accessible, Dr. Craig said, the ports should work together to boost shipping revenue. He also predicted that both ports soon will be hard pressed to handle the expected growtn of ocean traffic. Briefly Told National Cash Register Co. forsees a 10 growth in profit and sales this year over the earnings of $3.74 a share recorded on sales of $1.1 billion in 1968 . . . National Airlines recorded a 34 rise in air cargo volume during April. Philip Morris issued a formal offer of $12 a share in Canadian funds for each share of Canadian Breweries . . . Texaco Inc. plans to expand the capacity of its Port Arthur, Tex., refinery from 310,000 barrels a day to 390,000 by 1970 . . . U.S. Steel announced plans to build a plant in Haverhill, Ohio for the production of polystyrene resins . . . Liquidonics Industries, Westbury N.Y. which holds a majority interest in UMC Industries, St. Louis, is considering a merger of the two firms ... Pyroil Co. La Crosse, Wis., ended previously announced merger talks with Torite Enterprises Inc. Richmond Corp., Richmond, and American Finance System Inc., Wilmington, Del. are holding negotiations on the acquisition of American Finance by Richmond . . . Realty Equities, New York, which says it owns about 3.5 of the outstanding stock of American Bakeries Co., Chicago, has ended discussions about merging the two firms. LL" : t READY, AIM ... Mrs. Marilyn Rabinoff gets ready to return ball (arrow) fired her way by automatic pitching machine. TV camera at left records Dow Drops 9.76 as Profit Taking Bites Deeper Into Market NEW YORK LT) With profit taking again reported weighing on it, the stock market pulled back on a broad front Tuesday and closed with another sharp loss. "The retreat," brokers said, "was a continuation of Monday's consolidation phase" in which the Dow Jones industrial average skidded 8.23 points. The Dow industrial lost another 9.76 Tuesday and closed at 949.26 for its biggest daily drop since March 13 when it fell 10.38. The market has made some good advances recently, an analyst said, with the Dow industrial gaining more than 40 points during the past three weeks, and the profit taking, which has cropped up sporadically in previous sessions, "now seeming to be really biting in on some of the sharp gains that were run up." Wait on Sidelines Brokers added that some investors were cautious and on the sidelines while waiting for positive developments in the Vietnam situation, and that others were concerned by the possibility of another boost in the prime lending rate. Volume improved a bit on the New York Stock Exchange, with turnover for the day coming to 10.29 million shares, compared with 9.79 million Monday. Blocks of 10,000 shares or more traded on the Big Board totaled 47, compared with 45 Monday. Losses took an early lead over gains and expanded their edge as trading continued. Of 1,591 issues traded, 983 declined and 386 advanced. There were 18 new highs for the year and 75 new lows. Please Turn to Page 11, Col. 2 107 106 105 104 103 102 101 100 99 20 18 16 14 12 10 IN ll IONS a 4H 418 425 52 59 316 523 WUKS fcNDING YESTERDAY -fir- NEW YORK-Stondard & Poor's 500-stock index closed ot 104.04, down 0.93. High during the day was 105.16; the low, 103.56. The industrials closed at 113.82, down 1 .04; the rails at 49.70, down 0.58; the utilities ot 66.99, down 0.47. The "500" 1969 high of 106.16 was set May 14. The 1969 low of 97.98 was set Feb. 25. Volume rose to 10,290,000 shares, compared to 9,790,000. OVER-THE-COUNTER The Notional Quotation Bureau index of 35 industrial stocks closed at 406.89, down 1.62. The 1969 high of 425.86 was set Jon. 6. The 1969 low of 384.35 was set March 7. LONDON The Financial Times index of 30 industrial stocks closed at 427.1, off 7.3. The 1969 high of 520.1 was set Jan. 15. The 1969 tew of 422.2 was set May 15. Tennis Practice Range Assures Smiles Customers on Camera BY PAUL E. Timet Staff "They say it takes 25 years for any new idea to take hold," says Dick Bradlee. "I'm doing it in 10." Well, maybe. Bradlee is a bouncy, 57-year-old tennis gadfly whose 1962 book, "Instant Tennis," claimed most of the nation's tennis coaches were teaching the game all wrong. Few of the coaches changed their style as a result of the book, although it still makes for some heated courtside and cocktail-party conversation every once in awhile. Bradlee's idea, which he originated in 1960 and which he says is now finally near fruition, is to create a tennis version of golf's driving range. Ten weeks ago he set up a pilot 20th Century-Fox Earnings Decline in First Quarter BY ROBERT E. DALLOS Times Staff Write NEW YORK First quarter earnings of Twentieth Century-Fox Film Corp. dropped to $2,464,000, or 31 cents a share from earnings of $3,636,000 or 52 cents a share in a similar period a year earlier, Darryl F. Zanuck, president, told the annual meeting. The first quarter earnings of last year were adjusted to reflect the 10 income tax surcharge. The per share earnings for this year's first three months were based on 8,006,-108 shares outstanding while last year's first quarter earnings were calculated on 7,035,285 shares outstanding. During the 2V-hour meeting at the Waldorf Astoria, Zanuck declined several times to answer shareholders questions about the earnings decline. 'Not Off Sharply' But the executive had this to say in an interview following the session: "The earnings were not off sharply. The first quarter earnings are higher than they were for the first quarters of the four years since we've been in business (a group headed by Zanuck took over management of the film company in 1962.) What do you expect us to do? Hit a home run every time we come to bat?" Pointing a finger at a reporter, he added: "Babe Ruth hit more home runs than anyone else in the history of baseball. He also struck out more than anyone." The film executive was also asked numerous stockholder questions about reports in recent months that Please Turn to Page 11, Col. 4 Onassis Loses Oil Concession Battle With Archrival Niarchos ATHENS m The battle of the Golden Greeks escalated Tuesday as the Athens government junked a $400 million deal with Aristotle Onassis and the word was that the contract has gone to his archrival, Stavros Niarchos. The announcement called for new international rights to Greece's third oil refinery which Niarchos has been trying to corner with a half-billion-dollar package deal The government move knocked the props out from under the tentative deal Onassis had worked out a few days after his marriage to Jacqueline Kennedy in October 1968. Onassis has been closeted with government officials for the past 10 days, but apparently he could not her form on videotape as daughter Caryl waits her turn and coach Dick Bradlee looks on. Bradlee hopes to franchise his "tennis ranges" nationally. Times photo by Cal Montney STEIGER Writer version of his system in a $275-a-month rented storefront on Santa Monica's Lincoln Blvd. And now, he says, financial arrangements are nearly ready to inaugurate in Anaheim, Las Vegas and Winchester, Mass., the first of what he hopes will be a nationwide chain of franchised "automated tennis ranges with TV playback." The concept is simple enough. Pitching machines (similar to those used by baseball teams for spring training batting practice) fire tennis balls toward the participant, one every few seconds. He then can practice his forehand, backhand, or whatever moves need work. The balls are hit into a netting arrangement and automatically funneled back into the pitching machine's hopper. Meanwhile, as the customer flails away at all these tennis balls, a special TV camera records his moves on videotape. When he is finished, he can play back the tape and dissect each action. By means of a split screen technique, he can also compare his movements with slow-motion films of top tennis stars. Bradlee has set up the pilot system in conjunction with his own coaching. But he claims a franchisee need not be a tennis expert. "The whole thing can be operated with coins, if need be," he says. The charges range from $1 for 100 balls and no coaching to $10 for a private, half-hour lesson. Bradlee says about 200 people have come in since the tenni3 range was opened. There are still some kinks to be worked out of the system, however. The splitscreen arrangement hasn't yet been debugged, so Bradlee's customers now first watch their own actions on the television monitor, then view the champions' form on a second tape. The automatic ball retriever isn't fully operational. Bradlee has to dump the balls by hand into the pitching machine'3 hopper. Please Turn to Page 13, Col. 2 International Controls Revises Offer for Electronic Specialty BY RON Timet International Controls Corp. of Fairfield, N.J. disclosed Tuesday that its sweetened terms for the rest of Pasadena-based Electronic Specialty Co. involves a 10 instead of a 5 premium price over the market. ICC now owns 55 of ES stock as the result of a long struggle with ES management. It seeks to acquire the rest and merge a new wholly owned ICC subsidiary into ES. In spite of the increased premium for ES stock the outlay should be about the same as the previous offer better the terms of his $400 million offer to the Greek state. The government announcement said that during the negotiations with Onassis, "another proposal was submitted containing more favorable basic terms than that of Onassis." It said the new proposal was accompanied by a $20-million letter of guarantee from a Swiss bank. The battle for the oil concession is another round in a feud between the two shipping giants which began when they were husbands of the two Livanos sisters, daughters of one of Greece's richest shipowners, Stavros Livanos. Niarchos accused Onassis of misrepresenting the facts in hi3 proposal to invest $400 million in a power Please Turn to Page 16, CoL 7 BY JOHN GETZE Time Staff Writer An Air Force general told the House Armed Services Committee in Washington Tuesday "there's a possibility" that Lockheed Aircraft Corp. deliberately underestimated, the cost of the C-5A jet transport to win the multibillion-dollar contract.. Lockheed immediately denied the charge. Maj. Gen. Thomas S. Jeffrey, director of production at Air Force headquarters, told the congressional committee that the Air Force had estimated it would cost $3.4 billion to manufacture 115 of the planes between 1968 and 1973. He said the Lockheed bid on the contract was $3.1 billion, despite the ' higher Air Force estimate. When Rep. Samuel Stratton (D-N.Y.), a member of the committee, asked if Lockheed had genuinely underestimated its cost or whether it purposely "shaved" its bid, Jiffrey replied, "I think there's a possibility of both." Lockheed, based in Burbank, Issued a brief statement at its Marietta, Ga., plant, where the C-5A is built, saying Jeffrey's suggestion was not true. In other testimony before the -committee, Air Force officials estimated that Lockheed could lose $285 million in producing the first 115 of the C-5A jets. This officially confirmed what the Air Force previously had hinted at unofficially. Again, a spokesman for Lockheed in Burbank said the company "disagrees substantially" with the Air Force figure, adding that Lockheed has "a good chance to at least break even" on the project. Air Force officials told the house committee that the office of the. Secretary of Defense also disagrees with the $285 million figure, but had declined to make its own estimate. In related action Tuesday, Lockheed said it had laid off 700 production workers in Burbank and Van Nuys as a result of the Army's cancellation Monday of the production contract of the Cheyenne helicopter. Please Turn to Page 11, Col. 1 Reynolds Moves Up at Safeway Robert E. Magowan told stockholders of Safeway Stores Inc. Tuesday that he is resigning as chief executive officer of the company. He said, however, he will continue as chairman of the board and chairman of the executive committee. Quenton Reynolds, Safeway president and chief operating officer, will be recommended to succeed Magowan at the firm's board meeting today, the Oakland-based firm said. In other action at Safeway's annual meeting in Baltimore, stockholders elected 16 directors designated by management and ratified the board's selection of Safeway's independent auditors for the 1969 fiscal year. S. HEINZEL Staff Writer since Electronic Specialty stock has been dropping in price on the New York Stock Exchange in recent months. Under the revised terms, subject to certain limitations, present holders of ES stock would receive for each share held ICC common stock and Series A warrants having the greater exchange value of either $20 or 110 of the average closing price of ES stock for the 20 trading days immediately preceding the ES annual meeting which is tentatively scheduled for June 26. The offer does not apply to the 55 interest in ES that ICC currently holds. Directors of the two firms agreed to the revised terms on Monday, but withheld details until Tuesday. The merger is still subject to the execution of a definitive agreement and to approval by shareholders of both companies. If consummated, ICC would become the sole shareholder of ES. If the transaction is concluded, It will mark the end of a long-term struggle by ICC to acquire Electronic Specialty. Last August ICC made a tender offer of $39 a share for ES common stock through which it acquired Its 55 interest in the Pasadena-based aerospace and computer industry firm. ES management opposed the tender offer, failed in an attempt to get a court injunction against it preventing ICC from voting its shares at a stockholder meeting. At the oft-postponed meeting which finally was held in January, ES top management resigned and ICC put 6 representatives on Electronic Specialty's 7-man board.

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