The Los Angeles Times from Los Angeles, California • 43

Market Scores Sharp usiness Finance Gain Wit TUESDAY, OCT. 1969 Part II! DJ Up 12 t. "i i ft I I fti National News A former Johnson economist urged easing the brakes on the economy. Arthur M. Okun, a Brookings Institution economist and formerly chairman of President Johnson's council of economic advisers, said the time is approaching for a gradual relaxation of the brakes on monetary policy.

He told a congressional joint economic subcommittee that a reduction of monetary restraint should get first priority, but that "maintained application of the fiscal brakes" would be needed in the months ahead. Unemployment will probably rise somewhat above 4 this winter and spring, Okun predicted, adding that "some improvement in our price performance" is expected within six months. in futures contracts for delivery of foreign currency is an entirely new concept, the exchange said. The market will be open for only two or three contracts at first, until traders and the financial community get used to it. Norfolk Western said it cleared another obstacle from its merger.

Agreements with the Grand Trunk Western Railroad, headquartered in Detroit, removed one of the remaining blocks to the merger of the Norfolk Western and Chesapeake Ohio railroads, said. In a petition filed in Washington with the Interstate Commerce Commission, the lines said they agreed to sell interest in the Detroit, Toledo Shore Line Railroad to Grand Trunk for $3 million, and to grant that line trackage rights to a Ford manufacturing plant in Michigan. That leaves only Penn Central and New York State as major opponents to their merger, the railroads said. ai. 'ltr' Si ky tjJ i SATELLITE TESTER Mass of electronics racks ot Hughes Aircraft Co.

in El Segundo forms part of test equipment that will check out the Intelsat IV series of communications satellites. Operating display is Bill Cussen, an engineer with British Aircraft Corp. In background are Jack Bremner and Pat Fisher. Headaches Put Manager of Satellite Program Into Orbit BY JOHN GETZE Times StaH Writer High Court Refuses to Block Gasoline Price Fixing Trial WASHINGTON (DJ) The Supreme Court ruled Monday that a group of the nation's major petroleum companies must stand trial for allegedly fixing gasoline prices. By refusing to review the case, the high court, in effect, upheld a lower-court decision that the oil firms stand trial on their indictment in 1965.

A Federal Grand Jury indicted the companies on charges of fixing gasoline prices in New Jersey, Pennsylvania and Delaware, and of conspiring to monopolize sales in the three-state area. The companies indicted were Gulf Oil Humble Oil Refining a subsidiary of Standard Oil Co. of N.J., Mobil Oil American Oil a subsidiary of Standard Oil Co. of Indiana, Atlantic Refining now Atlantic Richfield Sinclair Refining a subsidiary of Sinclair Oil Corp. which was merged into Atlantic Richfield last March, and Cities Service Co.

along with its subsidiary Cities Service Oil Co. In another ruling Monday, the Supreme Court left standing a lower-court decision that a stock broker who's a member of the New York Stock Exchange can be held liable under the exchange's "know your customer" rule for trading losses incurred by an insolvent customer who subsequently went into bankruptcy act proceedings. The broker liability issue was raised in a suit brought against Merrill Lynch, Pierce, Fenner Smith Inc. by the bankruptcy trustee for Dobich Securities Corp. The bankruptcy trustee alleged in his suit that Dobich Securities as a result of transactions in its accounts with Merrill Lynch lost about and went into bankruptcy.

After Dobich Securities went into bankruptcy, some of its customers filed claims with the trustee for more than $2.5 million to recover payments for securities that were purchased from Dobich Securities but never delivered to the customers. The trustee sued Merrill Lynch to recover certain amounts that Dobich Securities transferred to Merrill Lynch. The suit asserted that Merrill Lj-nch should be held liable under the securities laws for Dobich Securities trading losses because NYSE rule 405 was written pur ability to relay only 240 two-way telephone circuits a far cry from Intelsat IV. Two-way television was also available, but on a limited basis. The satellite is still occasionally used today, and may last another 15 years or so, some experts say.

Three satellites composed Intelsat II, also built by Hughes. Two of the spacecraft, which were essentially the same size and offered the same capabilities as Early Bird, were launched across the Pacific and one for the Atlantic. Communication satellites are sent up in an orbit that matches exactly the 24-hour revolution of the earth. Consequently, the satellites remain "motionless" over a predetermined spot. The Intelsat III program was controlled by Redondo Beach-based TRW Systems Group of TRW which is still sending up satellites under the contract.

These craft two have been launched since December, 1968 each weigh 632 pounds and can handle up to 1,200 two-way phone conversations or four television transmissions. This is roughly one-fifth of the capacity planned for Hughes' Intelsat IV. Which brings us back to Albert Owen and the problems of putting Please Turn to Page 13, Col. 4 Late Surge of Buy Orders Recoups Loss; Volume 13.6 Million NEW YORK The stock market rocketed to its biggest gain in a month in a last-hour burst of strength Monday. The advance was an expansion of a mild rally that began last Thursday when the market drew back after nosing against its 1969 low.

The Dow Jones average of 30 industrials zoomed for a gain of 12.34 to 819.30, after having been up only 5.28 an hour before the close. This was its sharpest rise since a like advance Sept. 10. "There were a lot of good things going to encourage investors," said one Wall Street analyst. He mentioned scaled-down fighting in Vietnam and accompanying rising peace hopes; a Senate committee's vote to maintain the tax-free status of municipal bonds and to keep the current capital gains tax allowance; and increasing hopes that federal monetary restraints would be eased.

The New York Stock Exchange: index rose 0.65 to 52.63. Standard Poor's 500-stock index was up 0.99 at 94.55. The advance covered a wide front, with 1,046 issues rising and 32Q falling among 1,594 traded on the Big Board. For the first time since May 16, new 1969 highs topped the number of new lows. The margin was 58 to 50.

Volume ballooned in the final hour, and the New York exchange's ticker lagged by two minutes in reporting floor transactions. The total of 13.62 million shares was the highest since 15.07 million shares were traded on Aug. 1. A considerable number of large blocks were traded on the Big Board. Brokers said institutional investors, who have accumulated huge amounts of cash while remaining on the sidelines, were moving into the market.

Please Turn to Page 11, Col. Port of Los Angeles Lands Contract to Handle Nissan Cars BY DON SHANNON Times Staff Writer TOKYO The Port of Los Angeles, which lost the Toyota Motor Co. auto export business to Long Beach last month, has recouped by signing Nissan Automobile Co. Bernard J. Caughlin, general manager of the Port of Los Angeles, told reporters during a visit here that Nissan has agreed to ship all its Southern California exports 4,000 to 5,000 cars a month through new Los Angeles terminal to be completed next March.

Toyota, when it announced the move from Los Angeles last September, said it would send 47,000 cars through Long Beach in 1970. Los Angeles officials noted the present program of expanding' container facilities on Terminal Island and wharfs in the southern harbor which will double the port's capacity will be completed within three years. Councilman Robert M. Wilkinson and Caughlin described the current projects for the addition of a wharf and 50 acres of space on Terminal Island to the present Matson container terminal, which has 250 feet of wharf and 30 to 40 acres of backland. The $7.5 million additional ter-, minal, to be completed in its first phase by next October, will contain freight storage, machine shops and office buildings.

Three cranes will' be able to handle a container every three minutes, they said. "We're planning another container terminal with 30 acres of backspace for Terminal Island by Please Turn to Page 15, Col. 5 Tight Money Cited as Denny's, Parvin-Dohrmann Call Off Pact Atlantic Richfield took a second option for a Maine refinery site. The oil company said it took an option on a second tract of 3,500 acres near Machiasport, giving it a total of 7,000 acres as a potential site for a crude oil refinery. The first option was taken in July, when Atlantic apparently went into competition with a proposal by Occidental Petroleum of Los Angeles.

Occidental startled the oil industry by asking Maine to seek a free-trade zone around a proposed refinery for importation of foreign crude oil. Atlantic, based in Philadelphia, also said this week it will release up to 1,250 acres of its site if the state needs it for a foreign trade zone. Merrill Lynch said it won't fight a 'reasonable' odd-lot fee hike. James E. Thomson, chairman of Merrill Lynch, Pierce, Fenner Smith, said in Chicago that an increase in commissions for small-lot trades may be inevitable.

But, he added, "we shall oppose an increase that clearly is intended to make the small investor subsidize volume discounts." Proposals have been made in the industry to raise commissions for small investors while reducing the charge to purchasers of large blocks of shares. Thomson also backed the concept of a nationwide clearing and settlement system, coupled with transfer agent depositories and machine-readable stock certificates. The Treasury was reported studying tax incentives for U.S. exporters. Removal of complex tax obstacles to exporters is getting precedence over any border tax system, sources in Washington said, but such direct measures as export subsidies are also being considered by the Treasury to help the nation's deteriorating foreign-trade position.

Although the study is still in its early stages, some officials said, they've already found plenty of evidence that an array of highly complex and relatively obscure taxation practices is simply discouraging American companies from exporting and encouraging to build factories abroad. Coca-Cola started testing a new experimental plastic container. Coca-Cola U.S.A., the domestic soft drink division of the Coca-Cola said it has begun testing a highly experimental plastic container for packaging Coca-Cola. The company said the container is undergoing laboratory tests and will later be by consumers. It's a 10-ounce, no-deposit, no-return container in the traditional Coke bottle shape, Coca-Cola said.

The package is an experimental product of Monsanto Co. and is not in commercial production. Fewer U.S.-built autos were sold in early October than a year ago. The industry's overall total fell to 265.735 new cars sold in Oct. 1-10 period, vs.

298,105 in the same nine selling days of 1068. Losses were taken by Ford and General Motors, whose new models were introduced later last year, giving an edge to the sales of the year-ago period. Giant GM dropped to 138,807 cars, a 13.3 loss from the record 160,225 of a year ago. Ford fell to 75,933 from 87,420 a year ago. Chrysler and American Motors, however, both edged up to new records.

Chrysler sold 42,594 cars, up from 42,153 a year ago. American Motors sold 8,311, topping the 8,307 sales of the 1968 period. A new market was announced for the trading of currency futures. The International Commercial Exchange is scheduled to start trading in the futures contract Imarket fn foreign currencies around 13. It will deal in the British pound sterling, the Swiss franc, the French franc, the West German 'mark, the Italian lira and the yen.

Operations will be conducted on the floor of the New York Produce Exchange, which is sponsoring the new market. Trading California Monogram Industries announced it bought 55 of Public Management. Los Angeles-based Monogram Industries, which manufactures aircraft systems and industrial equipment, said it entered the field of specialized education services by acquiring control of Public Management formerly a privately-held firm based in New York. Terms were not disclosed. Public Management designs, manages and supplies proprietary materials for a wide range of programs for private industry, government, schools and municipalities in the U.S.A.

and overseas. It has developed educational materials and is operating 10 rapid-learning schools under government and corporate contracts. Briefly Told Trading in Chris-Craft Industries preferred stock, issued in connection with its offer for Piper Aircraft, opened on the New York and Pacific Stock Exchanges The Belgian airline Sabena joined the move to cut round trip excursion fare3 between Europe and New York The SEC continued through Oct. 23 its suspension of trading in Rajac Industries Fairchild-Hiller said it got contracts leading to more than $90 million of work on the Navy's new F-14 fighter plane, from Grumman Aerospace, prime contractor Sperry Hutchinson agreed to acquire Daivid M. Lea a furniture manufacturer Allis Chalmers postponed its annual meeting for the 13th time and set it for Nov.

3, pending a court ruling in its battle against takeover by White Consolidated Industries Titanium Metals jointly owned by National Lead and Allegheny Lud-lum, cut titanium tube prices 50 for condenser grade used in desalting and power plants, and 30 for chemical plant grade Ramada Inns dropped its plan to acquire Americar TelePrompTer agreed to acquire Volt Information Sciences for $51.6 million in stock. 95 9129)9926 TO3 101010I7 WEEKS ENDINO YESTERDAY Ut NEW YORK-Standord Poor's 500-stock index closed at 94.55, up 0.99. High during the day was 94.86; the low, 93.20. The Industrials closed at 1 04. 1 3, up 1 the rails at 41.48, up 0.06; the utilities at 57.22, up 0.78.

The "500" 1969 high of 106.16 was set May 14. The 1969 low of 89.48 was set July 29. Volume rose to 13,620,000 shares, compared to 12,210,000 on Friday. OVER-THE-COUNTER The National Quo-' tation Bureau index of 35 industrial stocks closed at 383.43, up 2.49. The 1969 high of 425.86 was set Jan.

6. The 1969 low of 347.49 was set July 31. LONDON The Financial Times Index of 30 industrial stocks closed at 375.7, up 4.9. The 1969 high of 519.2 was set Jan. 30.

The 1969 low of 357.4 wes set July 28. 94 j-4 93 -j 92 1 91 (141.41 16 lUMiinnm 14 suant to the Securities Exchange Act. Lower courts agreed with the trustee. The Supreme Court also agreed Please Turn to Page 13, Col. 1 SEDERBERG StaH Writer for Parvin-Dohrmann.

When the deal was announced in June, the value of Denny's stock to be exchanged exceeded $200 million. In the downward revision of terms in July, the value to be exchanged dropped to about $140 million. The stocks of both Parvin-Dohrmann and Denny's have fallen sharply since the companies announced merger plans. Parvin had a 1969 high of $141. Last Friday it closed at $69.62.

Trading in the stock did not open on Monday. Denny's had a high of $43 and closed Monday at $24.62. Butler denied that the decision to call off the merger had anything to do with his appearance last week before the Clark County Liquor and Gaming Licensing Board concerning his personal ownership of 88,000 Par-Please Turn to Page 15, Col. 2 TO EXPAND Some day, Albert T. Owen may-write a book entitled "How to Make Satellites for Fun and Profit or For $72 Million, Who Needs Fun?" As program manager of the Intelsat IV contract awarded to Hughes Aircraft Culver City, last fall, Albert Owen has a lot on his hands: Supervising the assembly of two of the four communcations satellites to be built under the program.

Inspecting the other two spacecraft to be assembled at a British Aircraft Corp. facility in England. Building three complete test centers to check out the satellites before and after assembly. And somehow organizing 12 foreign companies in 10 different countries into a tight, efficient manufacturing system. As manager of the 68-nation International Telecommunications Satellite Consortium (Intelsat), the U.S.

-con trolled Communications Satellite Corp. (Comsat) awarded the $72 million contract to Hughes last October. Spacecraft Assembly Hughes will supervise the assembly of the four spacecraft, each of which weigh 2,800 pounds, is 17 feet tall, and has a diameter of 93 inches. The satellites will be able to relay 12 simultaneous television channels or 6,000 two-way telephone circuits, or any combination of the two. "These craft are easily the biggest and best anybody has sent up yet," says Owen, who estimates the first launch will be sometime in early 1971.

Intelsat began with the Early Bird, built by Hughes and launched over the Atlantic in April, 1965. This first communications spacecraft weighed a mere 85 pounds and had the Britain's Overseas Trade Shows Profit During September LONDON UP) Britain's overseas trade, a key to the nation's struggling economy and the future of the Labor government, showed a profit for the second straight month in September on the strength of booming exports, the Board of Trade announced Monday. The trade surplus dipped $33.6 million from the record figure for August, but that still left a healthy profit of $62.4 million. British exports stood at $1.48 billion, second only to the August record of $1.51 billion. The Board of Trade said that in the three months from July through September there was an average surplus of $24 million a month, compared with a deficit of $76.8 million a month in the previous quarter of the year.

Currency Rises The pound sterling rose by 7 points to $2.3885 on the London foreign exchange market as the favorable figures were announced. Officials contended last month that the August surplus showed Britain was on the road toward recovery from its chronic financial crisis. Monday's figures seemed to indicate another step, and a boost for Prime Minister Harold Wilson's Labor government, whose chances of winning an election in the next 18 months depend largely on its economic showing. BY ARELO Times Merger plans between Denny's Restaurants Inc. and Parvin-Dohrmann Co.

were abandoned over the weekend due to tight money, Harold Butler, Denny's president, said in an interview Monday. "Both companies felt they'd be better off proceeding separately in today's tight money market," he said. "Both need to raise money for expansion." Denny's, based in La Mirada, operates about 500 restaurants and doughnut shops around the nation. Parvin-Dohrmann is a Los Angeles hotel supply firm that owns three Las Vegas hotel-gambling casinos the Stardust, the Alladin and the Fremont. Based on present stock values, Denny's would have exchanged about $116 million worth of its stock ECONOMICAL WAY Middle-Sized BY MARTIN ROSSMAN Timet Stall Writer SANTA BARBARA The middle-sized advertising agency the one billing between $2 million and $10 million a year is the greatest target for merger within the industry, John Crichton said in an interview Monday.

Crichton Is president of the American Assn. of Advertising Agencies which is holding its Western Regional convention here. In a sample group of 78 such agencies, Crichton said, "More than one-fourth have merged within the last 10 years." Why is the middle-sized agency so avidly wooed? "They've got a good future," Crichton said, "and a lot of them are growing fast. I see them two to four times as big as they are now over the next 10 years." The merger trend, he said, "is a Ad Agencies Takeover Targets uprooting of people. And there ar some economies of scale; a bigger billing base can enable an agency to serve his accounts better." Actually, "middle sized agency', may be a misnomer, Crichton "From $2 million to $10 million is: really pretty good size.

Of the 7,000 agencies in the country, only 4,000 have a payroll that is, are more than one-man shops. And only 550; bill $1 million or more a year." Although the Four-A's is usually considered a "big agency" organiza-: tion, Crichton says its median' agency probably bills about million a year. Agencies belonging to the Four-A's have quintupled their volume since 1950, he said, and are now billing about $6.1 billion a year. That's about 79 of the advertising volume handled by agencies, he said. built-in condition of the business.

Obviously, there's a growing interest in a desirable market. I believe every major agency on the West Coast, for instance, has had repeated opportunities to merge. This is particularly true in Los Angeles and San Francisco." It's the nation's major cities that provide happy hunting grounds for merger-minded agencies, he said. "The other markets are not nearly as romantic." The merger trend, Crichton said, has been going on to some degrees since the mid 1050's. "Sometimes," he said, "it's a matter of geographic representation; an agency needs an office in Chicago or a base on the West Coast.

Usually it's more economical to invest in a going agency or merge with one than to start from scratch. "That way, too, reduced the At ftfci. fc iii JtiAt iftfe. 4.