Chicago Tribune from Chicago, Illinois • 77

(Ducaso (Tribune Saturday, January 22, 1977 Suss: Section 2 7. Cold forces Florida to put embargo on citrus Earnings report 4th quarter junip lifts Inland profits 'A 05 PER CENT Jump In fourth quar- ter earnings helped Inland Steel Co. post a 25 per cent profit gain in 1976. Frederick G. Jaicks, chairman, said the major factor underlying 1976 improvement "was the sustained high level of demand for sheet products throughout the year, the result of strong recovery In the automotive and appliance market sectors." the year, net earnings advanced to $104 million, or $5.20 a share, from $83.3 million, or $4.43 a share, in 1975.

SEALD-SWEET. a cooperative of 4,500 citrus growers," has raised its prices in two days by 50 cent a carton. "It's basically a half-cent per piece of fruit, or 6 cents a dozen, and citrus recently has been the cheapest it's been in five years," a spokesman said. 'Quality of vegetables will be poor and the prices will be high," said a' Miami food broker. "I just checked the price of fresh green beans.

A few days ago, they were $8 a bushel, but today they were $15. The price began jumping right at the farm." TOMATO LOSSES in South Florida LAKELAND, Fla. AP-The Florida Citrus Commission in the wake of record cold put an embargo Friday on all fresh citrus fruit. The embargo is effective at 11:01 Monday. Chicago time, will last 10 days, and will be followed by another two weeks when citrus shipments will be closely monitored by the state's fruit and vegetable inspection service.

Commissioners acted during an emergency session after four days of sub-freezing temperatures, which some perts say damaged 35 per cent of Florida's multimillion-dollar crop. THE EMBARGO will permit Careful Inspection of, and determination of pos-' sible serious damage to, the fruit, officials said. Withholding of shipment also is intended to prevent consumer dissatisfaction. I. 1 State officials said only about 14 per cent of each crop is sold as fresh fruit.

The rest goes into processed products such as concentrated Juices, y. Fruit processing is not affected by the embargo, but earlier this week, Tropica-na Products, and the Coca-Cola Co. Food Division said they had stopped taking orders for frozen, orange juice. Coca-Cola said the move is to prevent inventory shortages and said an allocation system may be set up in the near First National faces bumpy road in plan to establish branch I i I-ili 1 i- I pill lilillpif II lit --lX 'f ll'iMiliM i --ai warn top-? iaS- imam r-y mr it i fro i nifciirirtv. -Irvttr--' I jr-v immnfn.

i'WK 1 -i Sales gained 13 per cent to $2.33 billion from $2.10 billion. In the fourth quarter, net earnings totaled $22.4 million, or $1.08 a share, compared with $11.5 million, or 60 cents a share, in the final period of 1975. JAICKS SAID cold weather caused considerable difficulty in mill operations, but barring a lengthy continuation of the cold, shipments in the first quarter should be at, or above, fourth quar- ter levels. "We expect our profit margins to benefit modestly from the recent price increases," Jaicks said. orders have improved in recent weeks, Jaicks added, with sheet and strip demand continuing strong, and modest' Improvement shown for other products.

Occupancy drop sinks Canal-Randolph net CANAL-RANDOLPH Corp. said earnings declined in the year ended Oct 31, primarily because of a severe drop in revenues from the company's largest Chicago building, and the absence of capital gains achieved from sale of in-- dustrial properties in 1975. The building was vacated by two large tenants during the last year. Net earnings dropped to $1.3 million, or 88 cents a share, from $2.1 million, or $1.40 a share, a year ago. Sales were $36.2 million versus $36.7 million.

In the fourth quarter, net earnings rose to $361,198, or 23 cents a share, from or 12 cents a share. Sales also ira- proved to $9.5 million from $8.7 million. RAYMOND FRENCH, president, said "although the Chicago occupancy prob- lem is severe, its fortunes are not representative of the balance of our office buildings, which are modern and have high occupancy '-French said the company was placing major emphasis on expanding stock- yards operations, which recorded 1976 profits and "show promise of further growth. Becker and Warburg income rises By William Gruber THE FIRST National Bank of Chicago may face a bumpy legal road in its plan to establish a branch office on North Michigan Avenue. A dissident stockholder of Water Tower Trust and Savings Bank, 717 N.

Mich-; igan said Friday he intended to file suit later to prevent the Water Tower from selling a three-story building a block south of its office to First National. The two banks announced an agree-jnent for the sale Thursday, and First National said it expects to open- a branch in the building at 677 N. Michigan "sometime after July 1." feel that this would severely and 1 adversely affect the Water Tower Bank," said stockholder; Nicholas Karris, a Chicago attorney. "A smalt bank like this could not possibly compete with a branch run by a bank of that size a block away." Karris said the suit, to be filed in Cook County Circuit Court, would seek a temporary or permanent injunction, against the sale on grounds that directors of Water Tower Bank operated im-: properly and without approval of the bank's stockholders. 1 First National officers had no immedi- ate comment.

But Howard Johnson. president of Water Tower, said a stockholders meeting will be called soon to ratify the directors' actions. ALTHOUGH THE proposed sale price was not disclosed, sources estimated the The 800-room, $56 million Apparel Mart on Wolf Point-' twin-towered structure across the street from Mer- officially opens Saturday, and developers say the -f chandise Mart (right) is 95 per cent leased. Apparel Center looks good Audit prof ession sniping 'may stir more regulation' future for shipments of its Minute'Mald and Snow Crop brands. HUNDREDS OF THOUSANDS of acres of fruit and vegetables were ruined by the record-breaking low temperatures earlier this 'week.

Forecasters predicted moderating temperatures through the weekend, but it was too late for the farmers. "We have been hurt and hurt bad," said Richard Van Brackle of the Florida Fruit Vegetable Association. Virtually every crop in Florida was damaged by the freeze. Farmers said' consumers would be paying much higher prices on fewer tomatoes, limes, green beans, and watermelons. Trlbum Phots by William Ytte vacated floor is being filled by manur facturers of commercial and institu-i tional furniture.

The Mart is 100 per cent leased, she and "there are always people trying get in." Besides the million square feet of showroom space in the Apparel Center, the building has ground floor retail, and commercial space, a exhibition hall, and a hotel, the Holiday Inn Mart Plaza, which opened earlier this year. FORMAL DEDICATION of the building is scheduled for 9:30 a.m. Saturday. Participants are to include Mayor Bilandic; Sen. and Mrs.

Ed-' ward Kennedy Stephen and Mrs. Jean Kennedy Smith; Sargent and Mrs. Eunice Kennedy Shri- ver; Mrs. Patricia Kennedy Lawford; and Mrs. Ethel Kennedy.

Stock Market Jan. 21.1977 Compoll table VokinM28.789S0 laus traded 1,911 N.Y.S.E. Index B6.1S..... t0. Bud on N.Y.S.E.

MdM 1 i Trlbun Chart 3d losing week for market ends modest gain NEW YORK AP-The stock market staged a modest technical rally Friday as it closed out its third straight week of declines in the new year, v-: The Dow Jones industrial average closed up 3.40 at 962.43, to post net loss- es of 9.73 for the week and 42.22 since the start of 1977. Standard Poor's. 500-stock Index added 0.35 to 103.32, and the index of 400 industrials picked up 0.40 to 114.49.. The New York Stock Exchange composite Index advanced 0.22 to 56.15. Advancing issues outnumbered de-: clines by about a 5-to-3 margin on the i NYSE.

Big Board volume totaled 23.93 million shares, down from 26.52 million on Thursday. Nationwide, 28.79 million shares were traded. i': THE DOW HAD been up I points on Wednesday and down 9 on Thursday. Friday it stood at plus 1 early tn the session and down 1 at noon before get-; ting a mild advance together in the afternoon. Analysts said this reflected uncertain maneuvering among investors.

Brokers' forecasts have leaned heavily to the bullish side since late last year, but the market hqs refused fall in step. Marriott led the active list, up 12 cents at $11.75. A block of the stock traded at $11.25. -i Unchtnyd Dow Jonei InduiWili l'! 962.43,.;,. 3,40 500 10X32 o.iS alone were estimated as high as $43 million, with additional damages reported in central and southwest Florida fields.

Surviving tomatoes were expected to jump from 60 cents to $1.70 a pound. Texas citrus growers, bur-. dened byversupply and 70 days of rain that ruined the Christmas selling season, emptied their storage, shelves at Florida's expense Friday. The Florida freeze sparked the first major demand for the Texas fruit crops since their current harvest began. The immediate result was a 25-cent increase in price for Texas fruit Thursday, with another quarter increase appearing Imminent.

transaction would involve about $1.1 million. That figure would include a consideration paid by First National to Water Tower for waiving its right under state laws to a 600-foot protection of its home office from another bank facility. The proposed First National office would comply with another portion of the law which permits a bank to operate two limited branch offices one within ,1,500 feet of its main office and another within two miles. The First also said Thursday it plans to open a branch at Monroe Street and Wabash Avenue in April. i i Meanwhile, oral arguments are scheduled Feb.

17 in another Circuit Court suit filed late last year by Karris and a second Water Tower: stockholder, Leo Waxman, an attorney. with the same as Karris. THAT SUIT alleges that four Water Tower directors were in conflict of interest in approving the waiver for the building's sale because they previously bad sought a loan from the First National to cover a loan to the bank from La Salle National Bank. Karris said the $425,000 which he believes First National agreed to pay for the waiver "was far too small it should have been substantially greater for an asset of that Johnson said the suit is "without merit," and denied that a loan was sought from First National. He also said the La Salle loan, which was taken to help finance the opening of Water Tower Bank in 1973, is "current and in good shape." some quarters in Washington to redefine the auditor's mission by requiring him to be a gumshoe who must ferret out any and all departures by management from a set of vague standards of behavior and report them in unspecified detail to an ill-defined audience," Kanaga said.

tie cited these recent activities pointing to more government intrusion: A House subcommittee issued a report declaring' the Financial Accounting Standards Board had accomplished virtually nothing toward resolving fundamental accounting problems. That indicates further pressure for the SEC to begin prescribing standards for accounting and auditing. A Senate subcommittee staff report released last weekend was an all oat attack on the accounting profession which misused information in support of preconceived notions. The report "exhibits an enmity toward the private sector which we can only view with deep concern." The corporate payoff bill would make it a criminal offense for "a client executive, an employe, or even bankers, lawyers, or Indian chiefs to make false statements to an auditor." It would Inhibit free -exchange of confidences between client and auditor, reducing the reliability of the financial statements themselves. i.s which Includes gains on security transactions and recognition of tax loss carry forward benefits, was $3.9 million, $3.26 a share, against a consolidated net loss of $11.3 million in 1975.

Joseph G. Lutz, chairman, the Improved performance was attributable partly to reducing operating costs as well as "exceptional" gains from bank's bond portfolio and its bonds trading activities. National Boulevard earnings increase National Boulevard Bank of Chicago's net income in 1976 rose, 8.7 per cent to $2.1 million, or $10.63 a share, from $1.9 million, or $9.77 a share, in 1975. Earnings before securities gains were $2 million in 1976 and $1.9 million in The nation's economy appears to be moving ahead slowly and should eventually lead to an increased demand for good quality Henry K. Gardner, president, said.

u-. Regular passbook savings at year-end were up 30 per cent from a year earlier to a record $60.5 million, he added. SATURDAY IS GRAND opening day for the Apparel Center and the $56 million, dual-towered building at Wolf 'Point finds itself in an enviable position. The with 800 showrooms designed for clothing manufacturers to display their, goods to wholesalers, is 95 per cent leased. In addition to manufacturers from Chicago, New York, and Dallas, the center also has "a few hundred California clothing lines that have never been here before," a spokeswoman said.

i "More and more people are trying to cash in on the Mid-America mar-. ket," she said. "In the past, there just was no room for everybody wanted to be here." OFFICIALS ESTIMATE sales gener 'BECKER AND a -Paribas Group, said net Income for its Ds- cal year ended Oct. 29 rose 7.3 per cent to $7.5 million, or $3.99 a share, from $7 million, or $3.80 a share, the previous year. Consolidated revenues amounted to 1135 million, 'against $136 million last BECKER AND.

WARBURG-Paribas Is privately held securities holding com-fpany established in 1974 by the amalgamation of A. G. Becker and fWarburg-Paribas, Inc. Paul R. Judy, president, said that i while the firm was buffeted in 1976 by complex changes in the nation's equities i markets, "at the same time, we took advantgage of unexpectedly favorable credit securities markets, and expanded our corporate and public finance serv-: ices to a growing domestic and interna-i tional clientele." Crop increases expected A POTOMAC posse of vigilantes and unwarranted internal sniping at the ac-counting profession's rule-making proc-, ess is threatening to bring far more federal regulation on all business, the head of a major accounting firm said Friday, William S.

Kanaga, managing partner of Arthur Young criticized, in particular, Harvey Kapnick, chairman of Arthur Andersen for his recent charge that the Financial Accounting' Standards Board "is a mere catspaw of the Securities Exchange Commission." The charge is baseless, Kanaga told the Executives' Club of. Chicago. "It: seems to me almost perverse for someone to plead for the right of the private sector to regulate itself and then turn around and accuse the private organiza- tion created for that purpose of being a 'quasi-government authority'," he con- tinued. KANAGA SAID that ill-founded criticism reflecting a longing for total freedom from external restraints and demanding immediate solutions possible only by abandoning due processes present a danger to the board. And, he said, the criticism may well have stimulated some skepticism voiced in Wash-, Ington.

"There appears to be an inclination In ated at the Apparel Center in its first year at $3 Nine of the 11 floors in the 25-story building contain showrooms for manufacturers of women's and children's A single floor will be occupied by men's and boys' clothing man- ufacturers and another will be the home of the European Fashion Fair, comprising foreign manufacturers. The Apparel Center; like its big brother to the east, the Merchandise Mart, is owned by the family of the late Joseph P. Kennedy and some ten-, ants in the Mart are moving to the center. Women's and children's clothing firms that have occupied the Mart's ninth floor are moving to the new building to join firms serving the same market. HOWEVER.

THE spokeswoman said Mart Occupancy won't be hurt. The the basis of the record 1976 harvests, have predicted retail food prices will rise 2 to 4 per cent this year, close to the 3 per cent 1976 increase. THE DEPARTMENT said farmers plan to reduce spring wheat plantings 16 per cent. The decrease means combined 1977 winter and spring wheat acreage "would be cut 7 per cent as a result of a record 1976 harvest, which sent prices down sharply and built up a heavy surplus. The report also indicated that farmers plan to step up cotton plantings 10 per cent, but intend to reduce rice acreage 8 1 cent and sugar beets 7 per The report made no production forecast.

1 rJ Business til Ticker year earlier. Durable goods sales drop-, ped 8.6 per cent to an adjusted. $3.9 billion, but were up 3 per cent from a year ago. Nondurable receipts eased 1.7 per cent to an adjusted $8.6 billion and were 8 per cent higher than a year ago. Before seasonal adjustment," all major categories showed increases, led by a 12 per cent gain for gasoline stations.

The Federal Reserve Board said the nation's basic money supply fell to a seasonally adjusted average of $14 billion in the week ended Jan. 12, from $314.7 billion a week earlier. i 4 Rebate widens The compact Hornet wagon, formerly called the Sportabout, has been added to i. American Motors rebate list, AMC said buyers of any 1977 model ordered by Feb. 10, or any 1976 'or 1977 model purchased from dealer stock through March 10, are eligible for a $253 cash rebate, AMC also offers $253 i rebates on the Pacer sedan and wagon, and previously reduced the Gremlin price by $253 to stimulate small car sales and reduce inventory buildups.

1 to WASHINGTON UPI1 Farmers In-tend to Increase 1977 corn acreage one-half per cent as a result of last year's record crop, and tEey plan to increase soyDean plantings 6 per cent, the Agri-: culture Department said Friday. The t.vo crops play a major role in determining consumer food prices because they are the basic raw materials for livestock foods such' as meat, milk, id poultry. Officials had expected a slight decline in corn plantings and a bigger boost, about 10 per cent, in soybean planting. r- If farmers carry out their intentions, experts say, 1977 corn acreage will be the largest since 1949. Department experts, acting largely on Mutual iinds reach sales of $660.9 million Mutual fund sales other than money market funds reached $660.9 million in BankAmerica income, net up for year, 4th quarter aSaMeIiank Realigns its management LA SALLE NATIONAL Bank Friday announced a realignment of its top management, which included the naming of a new president.

James G. chairman of the executive -committee, was elected to the additional post of president to succeed Milton F. Darr who was named vice chairman of the board. COSTAKIS WILL continue to share the principal executive responsibilities of the bank with Harrison I. Steans, fxhalrman, the bank said.

VThis realignment permits Milt Darr mnr time tn nnrcim hid mnnv nutslita interests," Steans said, "while preserving his deep and longstanding relationship i with the bank and its customers." I Smart Chart by Stansbury '''They released me over a con-' flict of Interest I was in--vterested in being paid, but I wasn't Interested In BANKAMERICA CORP. reported Friday that its income before securities transactions in 1976 was $335.9 million, or $2.40 a share, versus $301.7 million, or $2.18 a snare, in 1975. Net income after securities transactions rose to $336.8 or $2.41 a share, from $302.8 million, or. $2.19 share, tho previous i Fourth-quarter net income before se- curitiei transactions was $93.6 million, or 65 cents a share, against' $82.8 mil- lion, or 60 cents a share year earlier. Quarterly income after securities 'transactions was $94.3 million, or 65 cents a chare, compared with $83.2 million, or 60 cents share.

i Central National turns a prof it CENTRAL NATIONAL Chicago holding company for Central National Bank of Chicago, Friday reported con-, solidated operating earnings from con-. tinuing operations for 1976 of $941,000, or 56 cents a share, in contrast to a net loss of $10.1 million in 1975. Consolidated net income for toe year, December the highest level since January, 1969. The Investment Company Institute said the total includes $99.6 million of an exchange fund offering. Fund sales were $445.9 million in No- vember and $363 million in December, 1975.

Redemptions also' rose last month as investors cashed in $627.8 million 'worth of shares, up from November's total of $418.6 million, and $410.2 million a year earlier The industry had net sales of $33.1 million in December, com-' pared with $27.3 million in November, and net redemptions of $47.2 million in December, 1975. For sales increased to $4.3 billion from $3.3 billion in 1975, and redemptions rose to $6.8 billion from $3.7 billion. V' 'Sales, money decline Retail sales, reflecting the cold weath-' er, skidded 3.9 per cent week to a seasonally adjusted $12.5 billion, the Commerce Department reported. Sales, however, were 6 per cent higher than a.