The Los Angeles Times from Los Angeles, California • 49

INSIDE THE MARKET Hot Cargo: Shares of Container Companies BY ERNEST A. SCHONBE RGEK, Times Staff Writer fciJSiansttaS'CtmtS 15 manager of the engine division, said, "PAC is making a multi million dollar investment in facility rearrangements, new plant additions and equipment. In fact, we have just completed our $1.5 million, thrust test cell, capable of handling the next generation of high thrust engines, of which the JT9D is the first." OLD WHALING SHIP TO BE CUT INTO 2 BARGES Western Offshore Drilling Exploration Co. plans to cut the former whaling ship Cruz del Sur into two offshore drilling barges. Western Offshore, subsidiary of Fluor said it has signed a contract with Mitsubishi Heavy Industries Yokohama, Japan, for the conversion.

The conversion will begin by cutting off 215 feet from the stern of the 665-foot Cruz del Sur. Then, following preparations to ready the upper portion of the ship to become the first barge, a horizontal "slice" will be made dividing the vessel into two separate barges. Each barge will be 440 feet long, SO feet in width and 30 feet deep. Completion of the first barge, to be named Wodeco VII, is scheduled for next May. It already has a drilling assignment off the North Coast of Borneo near Sandakan.

The company also has an option for conversion of the second hull into a fully outfitted drilling barge. Maintenance Pact Signed The airline industry's first JT9D power plant maintenance contract for the engines that will power the Boeing model 747 has been placed by American Airlines Inc. with the Engine division of Pacific Airmotive a subsidiary of Purex Lake-wood. Dollar amount of the three year contract was not reported. The contract is effective in May, 1970, when American Airlines is scheduled to accept delivery of its first Boeing 747.

The maintenance work will be performed at PAC's Bur-bank facilities with Ro-s a i H. a 1 1 in charge. James IT. Pviedmeyer, vice president and general FIRST FACTORS Factoring Accounts Receivable Financing loans on Machinery and Equip ment. 1060 Crenshaw l.A.

90019 Mr. lot or Mr. Tenneien 123.50 24 M0S.fl NEW TERMINAL Closed End Air Cond. Power '70 RIVIERA FOR All YOUR LEASING) NEEDS CALL 394-6774 means of working logeth- KEN PARR IEASIN0) er. "If they have a problem, they can pick up the phone and talk to us," the councilman said.

'bmce we signed an Wakava- agreement with For Limited Time: 14 MONTHS PREPAID INTEREST With Up to 97 Financing Excellent Capital Gains Potential High liquidity Minimum Total Investment $13,000 Minimum Loan $100,000 for Additional Information, Coll: NATiGNWBDE INVESTMENT CORP. 404 North Roxbury Drive, Suite el 9 Beverly Hills, California 90210 Caughlin ma Prefecture: noted, "our business with (213) 273-4271 the port of Wakayama has doubled." Wilkinson said both the port and International Airport are looking to Japan for further trade expansion. "We believe the future of our foreign trade is in the Pacific rather than Europe," he asserted. When a Japanese newsman asked if I.os Angeles supports a a a nc voluntary quota on textile exports to the United States as advocated by Secretary of Commerce Maurice H. Stans, Quinn replied that the question is more political than economic.

"As a port, we oppose trade restrictions of any kind," Caughlin TAX BENEFIT FOR SALE SPENDABLE IMG0IJE EQUITY BUILD-UP New 73 Unit luxury opartment convenient Hollywood location complete recreation center with pool, launa bath, etc. subterranean parking-completion, October, 1969 First Owner Opportunity. Excellent financing Full Price. Contact: Director of Marketing UNICAL BUILDING COMPANY 9800 So. Sepulveda Suits 207 Los Angeles, Calif.

90045 (213) 641-3730 Seatrain and Reynolds. He also likes Seatrain for its promise in supertankers serving Alaska. Seatrain's Brooklyn yard is the only U.S. yard big enough to make the behemoths needed for the Northwest Passage. Some foreign yards can make the required supertankers but ships in domestic U.S.

service must be built in this country. Hanscom thinks near-term support for the stocks is likely because of earnings that are currently coming on. He estimates Seatrain will earn $1.65 to $1.75 per share in fiscal 1970 currently underway versus $1.04 for the year ended June 30. Reynolds, he estimates, will earn $3.00 or $4 per share this year and $5 next year (and he additionally is impressed with Reynolds' acquisition program and recently announced plans for restructuring finances and the organizational network). Too Many Companies The ERA analyst thinks that container leasing companies, which have sprung up in great many parts of the country, should be avoided simply because there are too many.

And he feels that it is too easy for anyone to enter the business of building container boxes and that therefore Fruehauf, a favorite of some Wall Streeters, won't have too long standing an advantage. As to the larger shipbuilders, Hanscom thinks their recent runup is not justified on the basis of maritime potential because they will require much greater Navy contracts to really prosper. Some recently contemplated Navy programs would entail government spending some 10 times greater than the anticipated maritime subsidy. Frank Nedelka, analyst with Weis, Voisin, Cannon, Inc. thinks Seatrain could earn even more than Wall Street expects this year if it can get by without port tie-ups.

He prefers it to Reynolds or any other containerization investment. Paul Gangemi, transportation analyst with E. F. Hutton says he views many companies in the industry as "favorable for the long term." But for the near term, he says, "I don't think you'll see the stocks doing very much more. Except for American Export Lines, all of the companies have been in vogue for a while." Suggests Stock Package Gangemi suggests that investors willing to buy now for the long term purchase a package of Seatrain, American Export, and Gilbert Flexi-van.

Gilbert is the most capable leasing company, says Gangemi. And he sees American Export developing into a mammoth intermodal transportation company on land and sea. For now, however, he says American Export is having trouble working out the bugs "in a very complex operation." Although he has some questions about buying it at the current price, Gangemi says he "likes Fruehauf. They're going full blast. They can't make containers fast enough.

And they also have their Maryland shipbuilding drydock." The E. F. Hutton analyst says it pays to be a little cautious about the industry. He pointed to Integrated Container Service, an over-the-counter issue, which slid from 70 a share to 18. Gangemi said it was because the firm was unable to develop a piggyback railroad operation which it purchased from Railway "The box had one of its biggest days in the stock market Monday.

In former years that term might have meant radio stocks, a resurgence in TV, or a mysterious, new electronics device. Eut todav Wall Street uses the term more literally. The stock market is getting more and more interested in the "containerization. revolution" use of a huge box for land, sea and even air shipment of all kinds of cargo. Investors are attempting to capitalize on containerization in many ways.

Monday's trading brought about these gains: Seatrain Lines was up 34 to 0IV2 on SS.lOO shares and Reynolds Tobacco (which this year acquired McLean Trucking and its Sea-Land Division) rose It to 43V4 on 50,300 shares. On Friday both had even bigger gains on heavy volume. Each operates increasing numbers of containerships. Seatrain also is a builder of containerships, having leased the Brooklyn Navy Yard when the United States abandoned it. Litton Stock Climbs Litton Industries, a diversified giant which includes the Ingalls shipbuilding operation, climbed 1SA to 49? on 104,000 shares.

It was as high as 503,4 its best price in many months. Bath Industries, another huge diversified com-pany, advanced 9 to on 0,900 shares. Todd Shipyards jumped 23i to 46 on 6,900 shares. General Dynamics, whose shipbuilding division is said to be In trouble, slipped a fraction. Fruehauf manufacturer of truck bodies and maker of an increasing number of the mammoth container boxes, gained Is to 42! 2 on 14,900 shares.

Maritime Fleet Expansion Wall Streeters think most of Monday's action was due to a report that the Nixon Administration is days away from announcing proposals to expand the maritime fleet. The program is expected to include $300 million in construction subsidies. (President Nixon signed Monday a $384.6 million authorization bill, including funds to build twice as many merchant ships as he had originally asked. Congress added $121.6 million, most of it for ship construction, to Mr. Nixon's $263 million request.) Action last week stemmed in part from excitement over Reynolds' leasing 16 giant container vessels from U.S.

Lines, a division of Walter Kidde (doubling Reynolds revenue potential from shipping). Investors have been cheered, too, by the success of the SS Manhattan in breaking through the Northwest Passage. Jersey Standard's Humble Oil subsidiary leases the Manhattan from Seatrain. One of the biggest bull3 on the industry's prospects is Equity, Research Associates. President John Westergaard says there's little doubt recent activity in the group includes buying by mutual funds and other institutions.

Earlier Buying Spree Earlier this year there was a buying spree when container ship operators' stocks were at lower prices. For instance, about a dozen mutual funds had positions in Seatrain about midyear, including almost a half million shares in Dreyfus Fund. There are about 13 million Seatrain shares. Equity Research analyst James Hans-com prefers to "play the container boom by purchasing the two operators Continued from 3th Page the fall of 1971," Caughlin said. South of Terminal Island and within the breakwa-t additional development should provide another 80 berths, the harbor manager continued.

An Army Corps of Engineers study, using a model of the port to determine wave and current effect, is under way and the development should be completed in three to three and a half years. "It will double the size of the harbor," he declared. Bulk cargo handling facilities, now accommodating 1 million tons of iron ore pellets a year exported to Japan, will be expanded, Caughlin said, in order to attract incoming bulk cargo. Deputy Mayor Joseph M. Quinn and Wilkinson, who, with Harbor Commissioner Fred I.

Wada, Caughlin, and Port Traffic Manager Kermit R. Sadler were in Nagoya last week for the signing of a "trade agreement," said Mayor Yorty will come here early next month to sign a similar agreement with the Port of Yokohama'. Asked hat sue agreements mean, Wilkinson explained they have no legal effect, but merely give two port authorities a SEC Approves New Drilling Fund Offering The Securities and Exchange Commission has approved sale of investment units in the $2.3 million PCA Petroleum Exploration Development Program for I960. The new drilling fund is being offered by Petroleum Fund Management a subsidiary of Petroleum Corp. of America, Studio City.

The fund is aimed at providing a reduction in taxes on current income while also seeking to build tax-sheltered future income and assets. Drilling work is expected to begin before the end of this month. Expertise in Mortgage Financing SONNENBIICK GOLDMAN ES OF CALIFORNIA EXCLUSIVE MANAGEMENT North American Mortgage fnvesforl $50 Million Avaihhk: Construction loans, Standby Commirmenfj, Sofe-leasebactu Murine Bankers, Realtors 1901 Ave. of the Stars, Los Angeles C13) 277-0600 New York Cliicaso Philadelphia Pittsburgh Washington, C. Stauffer, Shell Sign License Pact NEW YORK (D.T) Bangor Seeks Chris-Craft's Stock in Piper NEW YORK IF) David W.

Wallace, chief executive officer and president of Bangor Punta said Monday his company was discussing with Chris-Craft Industries the acquisition of Chris-Craft's 42 interest in Piper Aircraft Corp. Both Bangor Punta and Chris-Craft have been en-gaged in a prolonged battle to gain control of Piper. The fight has entered federal court, where Bangor and Chris-Craft both have pending lawsuits against each other contesting their respective holdings in Piper. Wallace said that the talks could not be classified as negotiations and said that nothing was "imminent." Chris-Craft Reply Commenting on Walla-re's statement, C. Leonard Gordon, vice president and general counsel of Chris-Craft stated: "The matter of control of Piper Aircraft is awaiting decision before the federal court of appeals.

No meaningful negotiations between Chris-Craft and Bangor Punta have developed." Gordon said, however, that the Securities Exchange Commission has filed a friend of the court brief supporting Chris-Craft's legal position in its lawsuit against Bangor Punta. The brief was filed last Sept. 19, he added. Bangor announced last month it owns 50.7 of Piper. Not Surprised William T.

Piper president of the aircraft company, said he was not aware of any discussions between Bangor Punta and Chris-Craft but that such discussions 0 1 not be surprising. "I'd say somewhere along the line the two companies would have to sit down and decide what going to do," he added. Piper man agemcnt, which supports Bangor Punta's bid for control, has not taken any part in the discussions and does not expect to, Piper added. HUGHES Continued from 9th Page the most powerful communications satellites into the air. Most of the program managers' headaches center around the same situation companies in 10 foreign countries are building the subassemblies for the satellites.

(The countries are Belgium, Canada, England, France, West Germany, Italy, Japan, Spain, Sweden and Switzerland.) Big Problem In itself, working with 12 different firms can be a bed full of cracker crumbs, but there's another hitch, and it's a big one for Owen Hughes must do practically all the buying of parts for these subcontractors. Each tiny electric part, solar cell, or bottle of glue must first be shipped to Hughes, packaged in kits for each subcontracting company, and then shipped to the respective foreign countries. "Boy, do we have problems," says the program manager. Owen says shipments are constantly being held up because each 'country has its own rules and regulations guiding customs officials. In addition small errors loom large.

"If a shipment of kits arrives at Swedish customs with all the paperwork written in Spanish, it's not going to get through for a few days." The word "kits" is misleading. "They sound like model car sets but are usually a stack of boxes the size of an executive's office," Owen explained. 'Immediately Available! Marnier unemicai to. announced Shell Chemical will produce vinyl chloride monomer under a license from Stauffer. Stauffer said it has 1 licensees for its vinyl chloride and related processes throughout the world.

imimmiim nmmm International financial organization interested in providing money (any currency, min. i'z mllion dollars) at rates between 10-12 to use for major construction projects capable of attracting bank guarantees. Write giving details to: Box Z-260-NA, LA Times. Life insurance that returns 100 of your premiums anytime you want? Senate Extends PARVIN-DOHRMANN mpossible? Read this. States' Pact to We have a policy foe of $35 the first year and $10 each subsequant year, regard' less of the amount of your insurance.

All other money you pay ia yours anytime you ask for it. That's how close we come to 1C0. Permanent life insurance with ready cash convenience. We call it Equity Sv logs Pian. Series I.

There's also Series it. You pay more In, but the benefits are greater. Both policies provide Increasing protection at a steadily decreasing annual premium feature unique to Equity Savings Plan. There's more advantages you'll appreciate (so will your accountant). If you're SO year3 of age or under, mail the coupon.

When it comes to life Insurance, it's impossible to make a better move. r.H. mann stock as a personal investment. "I'm still quite bullish on Las Vegas," he said. He added that Denny's probably would give up its plans to enter the Las Vegas hotel-gambling-market, because of the general unavailability of land or developed properties on the Strip.

However, the company will proceed with its plans to acquire Sierra Development which owns the Club Cal Neva Casino in Reno and the Cal Neva Lodge at Lake Tahoe. Previously, an announced merger between Parvin-Dohrmann and National General Corp. of Los Angeles had been called off. I I Hunter and Associates, Inc. ur tou? 8929 Wilshire Suite 200 Beverly Hills, California 90211 213652-4623 I would like full Information on your new Equity Savings Plan at no obligation.

Mr. NAME Mrs Miss ADDRESS. CITY ZIP -STATE. Continued from 9th Page vin-Dohrmann shares. The board did not approve Butler's request to purchase the 6.8 of Par-vin's shares, but will reconsider it at a meeting early in November.

Butler said that he has been approved by the Nevada Gaming Board, and that the Nevada Gaming Control Board, which investigates licensees, gave him a clean bill of health. Nevada 1 a vv specifics that large holders of stock in companies with gambling interests must be approved and licensed by the state. Butler said the liquor board wanted to know why he had personally paid $150 a share for I'arv in Dohrmann stock, vastly above the market value for Parvin stock. Butler told the liquor license investigators that his personal purchase was made because it would help facilitate the merger. He had said earlier he had bought the stock to eliminate certain stockholders from the company.

Butler purchased the stock from a group that included Edward Tories, manager of Parvin's Las Vegas properties, and Sidney Kor-shak, a Chicago lawyer who maintains a residence in Bel-Air and is a friend of Delbert W. Coleman, Parvin chairman. Butler paid will hold on to his rarvin-Dohr- DATE OF Sleepy heads sleep at these and other conveniently located Howard Johnson's Motor Lodges: Anaheim (Opposite Disneyland) 714-776-6120 Baldwin Park 213-962-8761 Sherman Oaks 213-981-5400 Redwood City 415-355-5500 San Bernardino (Colton) 714-825-5600 Claremont 714-626-2431 Riverside 714-682-9011 San lose (Airport) 408-287-7535 Thousand Oaks (Open Fall 1969) 805-497-3701 San Luis Obispo (Open Fall 1969) 805-5445300 Santa Maria (Open Fall 1969) 805-922-5891 Conserve Oil WASHIINGTON Ifl -The Senate extended for two years Monday the 29-state compact to conserve oil and gas. The passage, by voice vote, came after Sen. Edward M.

Kennedy (D-Mass.) offered, then withdrew, an amendment permitting the President to revise oil import controls periodically unless Congress objects. Kennedy's amendment was supported by other senators from New England, a hotbed of opposition to the oil import quota program. But Sen. Frank E. Moss (D-Utah) complained the amendment was out of order.

Moss, chairman of the interior subcommittee which drafted the compact, promised to hold hearings on Kennedy's proposal and Kennedy withdrew it. The compact has permitted member states since 1935 to reach agreements limiting production of gas and oil in their tates. Th compact was ex-tended throush Sept. 1971. 4 Equity Savings Plan is offered to you by Menlo Union Life Insurance Co.

Capital Group faulty Savlngi Plan It aviilebl throush tha NATIONAL CAPITAL CROUP tl Ufa tnurre Compenlei! In MENLO UNION LIFE INSURANCE CO. In Tet. The ALEXANDER. HAMILTON LIFE INSURANCE CO. In Anions, NATIONAL CAPITAL LIFE INSURANCE CO.

Signal Unit to Acquire Developer Signal Properties, a division of the Signal Companies Los Angeles, announced Monday an agreement in principle to acquire Shattuck McIIone Enterprises for Signal common stock. Shattuck McIIone, Los Angeles, a privately owned real estate developer, had gross sales of more than $22 million last year. It finances, designs, builds and cells residential developments, industrial complexes and mobile homes. Company Formed Surety National Bank, Encino, has formed a wholly-owned leasing subsidiary to be known as Surety Capital confined to tha leasing of motor vehicles. py under 3.