The Journal Herald from Dayton, Ohio • 7

2 JOURNAL HERALD Dec 16, 1980 Gas prices will rise a penny a gallon Saudis boost oil price percent TuesDay of Business Stocks Bonds The stock market finished mixed yesterday after the rally it began on Friday gradually faded. Two issues involved in takeover developments Hobart Corp. and Braniff International chalked up sharp gains. Blue chip Issues, by contrast, were generally weak. The Dow Jones average of 30 industrials dropped 5.55 to 911.60, wiping out more than half of its 8.70 gain in Friday's session.

Advances and declines were about evenly balanced in the overall tally on the BALI, Indonesia (AP) Saudi Arabia, in a bid for OPEC unity, raised its basic oQ price yesterday by a reported 7 percent, to $32 a barrel, to match the prices of other members of the world oil cartel Further price increases are possible today. Saudi Oil Minister Sheik Ahmed Zaki Yamani announced the increase on the first day of an OPEC price-setting meeting on this tropical east Asian isle. The 12-week-old war between two member nations, Iran and Iraq, has made the gathering unusually tense. Yamani said he would not reveal the amount of the Saudi increase until after he consulted with other OPEC members. But Venezuelan Oil Minister Hum-berto Calderon Berti and industry sources said the increase was $2 a barrel, to $32 for a 42-gallon barrel of Saudi light crude.

The price hike is retroactive to Nov. 1, the New York industry newsletter Petroleum Intelligence Weekly reported. The Saudi boost was a unilateral move, and Calderon Berti and other oil ministers said they hoped to work out a general 1981 pricing agreement Tues day for the entire 13-member Organization of Petroleum Exporting Countries. Iraq's oil minister, Tayeh Abdul Karim, speculated the final price structure might raise the ceiling for higher-grade oil by 8 percent, to $40 a barrel from $37. The $2 Saudi increase by Itself will raise U.S.

gasoline prices at the pump by an estimated 1 to 1 cents a gallon. Saudi Arabia produces 10.3 million barrels a day, 42 percent of OPEC's total, and supplies 8 percent of all oil consumed in the United States. Because it is retroactive, the increase will cost the four American oil companies that buy most of Saudi Arabia's oil Exxon, Texaco, Standard Oil of California and Mobil as much as $350 million in lost fourth-quarter profits, said Constantine G. Fliakos, oil industry analyst at the brokerage house of Merrill Lynch, Pierce, Fenner Smith in New York. At their last pricing meeting, three months ago in Vienna, Austria, the oil-exporting countries were unable to agree on a uniform price structure.

Most members adopted a basic "benchmark" price of $32, but the Saudis held said, There will be many who won't Increase (their They will stay at the same level, and others might go up." Yamani's announcement on the first' day of the conference may have been designed as a conciliatory gesture at a time when OPEC unity is under severe strain because of the Iran-Iraq war. Opening the OPEC meeting Monday, Indonesian President Suharto urged the two countries "to seek the best conceivable solution to their conflict as soon as possible." But the Iranians appeared determined to bring the hostilities into the OPEC meeting room. At the opening session, they placed a photograph of their oil minister, Mohammad Jawed Tonguyen, who is a prisoner of the Iraqis, in the seat he would have occupied here. Iran claims Iraq kidnapped him Oct. 31.

Iraq says he was captured by their invading forces near Iran's oil refinery in Abadan and is being treated as a prisoner of war. There were unconfirmed reports yesterday that OPEC security men had to insist on disarming Iraqi bodyguards at the conference site. to $30. Since then, the other members of the cartel had been pressuring the desert kingdom to bring its benchmark price in line with theirs. Karim said the majority of OPEC members supported the $32 benchmark, although almost all wanted increases at the upper end of the price scale.

It was unclear whether they favored retaining the $32 base for only a few weeks, or for a longer period. The Iraqi said Libya and Algeria were pressing for an increase in the base price. Karim also said Iran wanted prices In the range, apparently meaning for high-quality oil. Calderon Berti said the ministers were considering several general price proposals. The Venezuelan minister, whose country is regarded as a moderate on prices, has spoken previously of a system for gradual increases tied to inflation that might boost prices 2 to 3 percent per quarter in 1981.

Yamani was evasive about details of a possible price accord. He told reporters there would be a broad agreement on prices, "a loose one as we are used to since 1979." Referring to other OPEC members, he 7 fiO fO New York Stock Exchange. II jT Analysts described the advance on Friday as largely technical rebound after inree-wets suae oi bdoui iuu points in the Dow Jones industrials. They said it faltered today amid continuing doubts about when interest rates might peak. A major California lender, Home Savings Loan, raised its prime mortgage rate from 15 to 16 percent Apple Computer fell 1 to 27 '4 'bid in the over-the-counter market.

The stock went public at $22 a share on Friday, and then climbed as high as 29 '4 bid after trading in it began. Nautilus stock lost 5'4 to 30 Monday on top of a 9-point drop in Friday's session. WASHINGTON The average discount rate on 13-week Treasury bills reached a record 16.667 percent at yesterday's auction, the Treasury Department said, up from 16.335 percent a week ago. The discount rate on 26-week bills, meanwhile, increased to 15.423 percent, compared with 15.069 percent last week, Treasury said. It was the highest level since March 24, when it stood at a record 15.7 percent.

As a result of the auction, banks and thrift institutions may pay up to 15.673 percent on popular six-month money market certificates, effective Thursday. Eastern, Braniff airlines might merge MIAMI (AP) initiating merger talks with Braniff, airline industry analysts say Eastern Airlines chief Frank Borman is taking the first steps towards acquiring Latin American routes he considers vital to the financial well-being of his company. Eastern yeterday announced that the two airlines were holding preliminary talks that might lead to a merger sometime in the future. But why would Eastern which lost Corporate Reports Price Brothers chairman retires providing it won Miami-London, but that went down the drain when the U.S. government signed an agreement with the British saying no new American airlines could fly to London's crowded Heathrow Airport.

"We lost out on London so our major aspirations will be to the south," Borman said in a recent Interview. "But they're very difficult to acquire because most of those South American airlines are very protective of their national carriers." Eastern is ready to compete with Pan Am and Braniff to South America if the CAB ever gives the airline permission. But that isn't likely because bi-lateral treaties in force with South American countries restrict the number of airlines each country can allow on any given route. Therefore, analysts say, Eastern's only hope to get the routes is to merge with Braniff and pray the federal government doesn't take them away from a combined carrier. $34.7 million in the first three quarters of this year be interested in absorbing Braniff, which posted a $51.6 million net loss for the first nine months of 1980, cut back its route system approximately 35 perecent and is selling some 30 percent of its fleet? Industry analysts agree Borman has his eye on Braniff's extensive Central and South America operations, a route system Eastern has coveted for some time.

Even though Civil Aeronautics Board figures show Braniff had an operating loss of $13.2 million in its Latin American division for the 12 months ended Sept. 30, It showed a $24.7 million profit in 1978 when airline industry as a whole was In better shape. Eastern began seriously looking south after It lost out to Pan American World Airways in the fight for the lucrative Miami-to-London route. Eastern had planned a massive expansion to Europe and the Middle East Harry S. Price son of the founder of Price Brothers has retired as the company's chairman.

He has been succeeded by Gayle Price who will retain his present duties as president of Price Brothers. Price Brothers Is a pri precast concrete building components, and fiber-reinforced plastic pipe and pipe-making machinery. Harry Price, who joined Price Brothers 48 years ago, will remain on the company's board of directors as vice chairman and chairman of the finance committee. His father, Harry S. Price founded the company in 1899.

In another management change, Emerson W. Heisler has been appointed to the new position of executive vice president. Heisler formerly served as group vice president, concrete pipe. In addition, Donald N. Lorenz has been named treasurer, succeeding Delber L.

James, who has retired after 30 years with Price Brothers. Dayton Malleable Inc. yesterday announced a first-quarter loss of $51,000 or 3 cents a share, compared with a loss of $1.8 million or $1.24 a share during last year. Earlier, the company predicted breakeven results for the first quarter, which ended Nov. 30.

First-quarter sales declined sharply, to $29.2 million from $37.2 million last year, largely because Dayton Malleable has sold its Columbus plant and has made other reductions in its production capacity The Daytonian has affiliated itself with Best Western International, alodging chain with 2,600 hotels, resorts and motor inns in the United States and 18 foreign countries. By joining Best Western, The Daytonian will benefit from the organization's advertising program, its worldwide toll-free reservations system, and wholesale purchasing programs, among other things. The Daytonian also will be listed in Best Western's Road Atlas and Travel Guide. Harry S. Price Jr.

vately held, that produces Dayton-based company precast concrete pipe, jplMMMMMMMMMMMMMMMMiMMMMMMM Money Matters 1 I CASH-N- CHRISTMAS CARRY SUPER SA Progressive Industries declared a special cash dividend of five cents per common share, payable Jan. 7 to shareholders of record Dec. 26. ChemLawn Columbus, announced a quarterly dividend of six cents per common share, payable Jan. 10 to shareholders of record Dec.

31. This advertisement appears as a matter oi record only. Advanced Robotics Corporation $2.4 Million Common and Preferred Stock mmmmmmmmmmmmmmmmimmmmmmmmmmJt Its AUilia Tim rt I unnninu imdlco FULL SUSPENSION FILES Sturdy Heavy Gauge Steel The Nation I 1 The undersigned acted as iinancial advisor to the company and arranged and negotiated the private placement ot these securities with professional venture capital investors. 4 DRAWER ft $77 4-jr-J 2 DRAWER WLOCK 55 LOS ANGELES (AP) With the Christmas rush at hand, Continental Airlines and, striking flight attendants reached tentative agreement yesterday on a new contract, the airline announced. Details of the agreement were not immediately released, but company spokesman Julian Levine said specifics would probably be announced as soon as a back-to-work agreement was worked out.

LOS ANGELES Home Savings and Loan Association, the na-tion's largest thrift institution, raised its home mortgage rate yesterday to 16 percent from 15 percent. From staff and wire reports I 24x36 4995 I McDonald Company 2100 Central National Bank Building Cleveland, Ohio 44114 31x42 $5995 9 Color Black or Sand MMORMMMMlWimim FOLDING CHAIRS FOLDING TABLES walnut Tops December. 1980 Liberal and unions far from agreement 1 1 47 49 $515 Beige Metal 30x60 30x72 30x96 55 Mitchell said many hourly employees are working short work weeks as the company tries to avoid further layoffs. The severance proposal would help cut benefits costs. Fahey said about half of his local's members are working less than 40-hour WOOD 2 DR.

FILES Wlocks WOOD EXEC DESK Walnut Finish Ohio Scientific, Inc. Aurora, Ohio has been acquired by MA-Com, Inc. By Judith L. Schultz Journal Herald Staff Writer Negotiations between Liberal Mar- kets Inc. and the meatcutters union broke off yesterday with both sides agreeing to request federal an official of the union said.

About 60 members of Local 430 of the Amalgamated Food and Allied Workers Union will continue working under the current contract extended until Jan. 17, Glenn Fahey, secretary-treasurer of the local, said. Liberal's retail clerks turned down a company contract offer Sunday and gave their negotiators strike authorization. About 300 clerks, members of Local 1552 of the United Food and Commercial Workers Union (formerly retail clerks union), will continue working at the 13 area Liberal stores under a contract extension until Dec. 31, according to Kenneth Mitchell, president of Local 1552.

He said his membership rejected the company's latest offer because It contained several what he termed ''take-away proposals." Mitchell indicated that If no progress Is made during another negotiating ses- The undersigned acted as financial advisor to Ohio Scientific, Inc. in this transaction. 30x60 M79" 36x72 229" 20x72 Credenza 219" 2 DR. VERTICAL. 2 DR.

$-MQ95 it SPECIAL! SECRETARY fi METAL SWIVEL ARM CHAIR I CHAIR I BOOKCASES I 8 During recent years, McDonald Company has assisted owners ol more than 60 Midwest companies in arranging andor negotiating successful sales or mergers of their businesses. Those interested in how we undertake such assignments are invited to call Buck Carr, Partner in Charge of our Corporate Finance Department at (216) 623-2023. weeks and a few are working as few as 10 to 12 hours a week. The voluntary severance proposal Is not at issue in contract negotiations. Nor is a proposed 25-cent-an-hour wage Increase, both union officials said.

The take-aways" the retail clerks are concerned about Include proposals to dispense with time-and-a-half overtime pay for the sixth day worked in a given week and for holidays; premium pay for night hours worked; allowing non-bargaining unit employees to do work traditionally done by union members; and a discontinuance of any non-negotiated, past work practices unless they are included In the written contract, i Local 1552 also wants Improvements In pension benefit contributions by the company. Mitchell, asked if the union would strike Liberal even if It meant financial death to the ailing company, said, "It will do us (unionized employees) in If these proposals are put Into effect." The meatcutters turned down a similar proposal in late November. The local gave Its leadership strike authorization at the same time. Twenty months ago Liberal employees accepted a 7 percent wage rollback, which was Increased to 10 percent In November 1979. Liberal at the time extended to its employees a 5 percent discount on food purchases made at Liberal stores and announced Its intentions to eventually transfer ownership of the company to employees.

'rSS I i I I fi 2100 Central National Bank Building Cleveland, Ohio 44114 byHON I I IM" I49H .52.95 SALE 89 I Black or Brown 1 30" 41.951 sion tommorrow, his local also will seek the Intervention of the Federal Mediation and Conciliation Service. Liberal, which has been fighting for Its survival under stiff competition from other supermarket chains in the Dayton area, also has offered Its employees a lump sum settlement If they voluntarily decide to quit their jobs, both union leaders confirmed yesterday. -The proposal, conditioned on ratification of a new contract, would give any employee who wants to leave the company an amount ranging from $500 to $1,200, based on the number of hours he or she worked In the eight weeks preceding Oct. 1. fin iiaIU iakaUaiima 1 NUIUUI IIVUIVIUW WCtlCIIUUdC fwuH II 11 RIvarvtAui f.jl:'l December, 1980 CDFC DADWIMrt OOft.fi I llkla I ni II III 1 VI bhW Ufflkl -CDI 0 Ia CAT A In 4 m.

iv wn iivn.