The Boston Globe from Boston, Massachusetts • 26

FINANCIA The Eoston Globe Friday, January 23, 1970 DO.NALD WHITE Stocks log modest gain The New York Stock Exchange index of some 1200 common stocks rose 0.03 to 50.43, and Standard Si Poor's 500 stock index gained .04 to 89.95. included a 132,500 share block at 27'i. Other actives were Telex up 43i to 1514:: Mobil Oil off at 42U; Aurora Plastics, up 2'k at 157s, and American Research and Development up 3 to 92. As the Dow rose, so did the broader-based indexes. Profits still up Fuqua Industries admits it goofed Hanscom next? Only a 'rumor' rumor.

That's about the size of the latest rash of stories concerning the future of the Air Force Electronic Sys-t terns Division at Hanscom Field, Bedford. The word is abroad, for the umpteenth time, that the Air Force is thinking of moving the ESD operation to Rome, N.Y., location of Gnfrlss Air Force Base. That rumor used to crop up every year around budget time. This is the second time since October, however, and the cycle of speculation seems to have stepped up in pace. One reason Is that the Air Force has, indeed, been considering moving FSD to Rome.

But that is as far as goes. Here's the Air Force statement on the subject: "The consolidation or relocation of the two functions (ESD and Rome Air Development Center) at Rome was one of the items reviewed within the past year. "No implementation of that item is presently planned. Studies of this nature are not unusual and have been conducted frequently over the past years. "We will continue to conduct such studies in order to insure the most efficient organization and operation of the Air Force Systems Command and to accommodate to reductions in resources should they come about." To many of the civilians in the 3500 military-civilian ESD workforce that statement is not as reassuring as one might think.

They have been spooked by what happened to the NASA Electronics Research Center in Cambridge and by the budget-slashing binge that is affecting defense-cnented projects. There is also something that one Hanscom Field pokesman referred to as the "civil service syndrome." "In the civil service," the spokesman said, "you run STEAMY STROLL A Bethlehem Steel steam while working on dry docked vessel worker steps gingerly through veil of in Boston. (Joe Dennehy Photo) Associated Press NEW YORK The stock market managed a modest gain in fairly active trading yesterday. President Nixon's State of the Union address had a temporary and isolated effect on market prices. "Investors had hoped he would zero in on the future degree of monetary restraint, said one analyst, "but it was kind of philosophical." "I guess we'll have to wait for the budget message later this month to get details," he added.

The Dow Jones industrial average gained 3.83 to 786.10. About the time of the Nixon speech it had been slightly higher. Trading was a fairly active total of 11 million shares. Among the 1559 individual issues traded, there were 665 advances and 616 declines. Anti pollution stocks showed strong gains in a speculative runup during the Nixon address, but some later lost ground in profit taking.

General Signal rose 3 to 62, Zurn Industries was unchanged at 243A, Joy gained ls8- to 44Ts, and American Air Filter rose 2 J4 to 56. American Telephone "didn't do too badly," said one analyst, losing Sg to 488, after Wednesday's announcement of plans for a huge financing program through a debenture offering to shareholders with rights to purchase stftck attached. It was the second most-active stock on the Big Board with a turnover of 209,500 shares. Of the 20 most-active Big Board stocks, 11 advanced, 5 declined and 4 were unchanged. Gulf Oil was the most-active with 231,000 shares, unchanged at 28.

Volume a share Among major categories, mail order-retail, metals, tobaccos, and building materials were higher. The upshot, though, was that in 1969, for which audited figures are not yet available, Fuqua dropped $2 million, or around 15 cents a share, on Ward's sales of about $15 million. According to chairman Fuqua: "We'd like to sell it and get our money into something else." Fuqua's acquisition sleuths slipped up in their assessment of Ward's inventory. What they did not realize, chairman Fuqua said, was that "the inventory was out of date and couldn't be sold at any price and that the product line was obsolete." If Fuqua hangs on to Ward that operation should break even in 1970, the chief executive said. He told The Globe Fuqua will report an estimated $2.10 to $2.30 a share on sales of $310 million for 1969.

In 1968 earnings were $1.80 on sales of $223.7 million. For 1970, Fuqua predicted increases in both sales and earnings in the 20 percent region exclusive of acquisitions which will continue, he said, on a "selective basis." 1969 1963 58 4.6W.0f.S 61 2.im:?.i7 36 :8 87092 84 4 Mi TO 17 3.74: 010 ay, IVtWi; vsn rstusiMr i.iwun By Donald White Globe Staff Sometimes, in the wild and wooly world of corporate acquisitions, a company makes a mistake. Occasionally it may even admit it. Such a company is Fuo.ua Industries, an Atlanta-based operation with sales in excess of $300 million annually. Five years ago Fuqua's annual sales were less than $14 million.

The difference between then and now has been acquisitions, 20 or more major ones of which have moved Fuqua into the five broad areas of leisure, shelter, agribusiness, transportation and education and in the process "made us into a completely new business," according to chairman J. B. Fuqua. Fuqua's mistake in its acquisition caper was Ward Manufacturing maker of camping trailers and mobile camping equipment. As the chief executive admitted, it was a huge one.

It happened in 1963 and Fuqua said "We were so carried away with it that we used it to illustrate the cover of our 1968 annual report." 1963 RESOURCES across something you do not encounter in private industry. For some reason or other the stability of civil sen-ice jobs seems to produce a psychological effect that makes people disaster prone they seem to feed upon this sort of rumor." There may well have been some politics behind the most recent rumor-go-round. Congressman Alexander Pirnie, has apparently been touring some Air Force bases. Significantly, he is a member of the House Subcommittee on Military Installation Disturbances. Perhaps even more significantly, however, his district includes Griffiss and Rome and he undoubtedly is out to do what he can for his own constituents.

Rome, perennial rumor-mill choice as a site to which ESD will move, has taken its lumps including loss of the Air Material Area operation. Pirnie is probably doing nothing more than showing his district he is trying. There are some grounds for optimism on Pirnie's part. The Air Force is reportedly considering a merger cf its Ground Electronics Engineering Installation, now at Scott Air Force Base, with the Rome operation. It should be added that the rumor mill is just as active in Rome as in Bedford.

The difference in New York state is that there the speculation always has Rome's operations moving to Hanscom Field. Meantime, though close to its personnel complement, ESD at Hanscom is trying hard to recruit some of NASA's secretaries from Cambridge. In addition, a $2 million, 100-unit housing project is moving toward completion at the base and will be occupied this year. "So you see," said one Hanscom spokesman, "it hardly looks as though we are moving. Do me a favor, though.

Don't get Sen. Brooke to say there is no danger of the operation being closed. "The memory of the NASA closure in Cambridge is indeed still fresh." Financial noles Raytheon LEXINGTON Raytheon Corp. reported yesterday earnings in 1969 of $35,232,000 or $2.35 a share of common stock after provision for preferred dividends on total sales of $1,285,134,000. In 1968, Raytheon reported profit of $31,720,000 or $2.12 a share on sales of $1,196,507,000.

First Boston Corp. as manager of the underwriters announces public offering of $100 million MARATHON OIL CO. 8V2 percent sinking fund debentures due Feb. 1, 2000. The debentures are priced at 99 percent to yield 8.52 percent.

Kennco Explorations Canada subsidiary of Kennecott Copper plans to commence a diamond drilling program this month on the proprty of Continental Copper Mines Ltd. in Cargill Northern Ontario. Salomon Brother Hut-zler as manager of an un-derwriting group, announced the public offering of $50 million HILTON HOTELS CORP. 54 percent convertible subordinated debentures due Jan. 1, 1995, at 100 percent.

WOODALL INDUSTRIES INC. said a favorable ruling has been re Bulova 6 Convertible ceived from the Internal Revenue Service on its previously proposed merger into LIBBEY-0 WENS-FORD CO. and said Feb. 2 has been set for the completion of the transaction. Public offering of $35 million FIRST MORTGAGE INVESTORS 6-li percent convertible subordinated dobentures due Jan.

15, at 100 percent plus accrued interest is being made by Eastman Dillon, Union Securities Co. and Paine Webber Jackson Curtis as managers of the underwriting group. KIRSCH CO. filed with the SEC $10 million of con Xerox profits Associated Press STAMFORD, Conn. Xerox Corp.

reported yesterday that its net income for the year ended Dec. 31 increased 25 percent to $161.4 million or $2.08 a share, from $129 million or $1.68 a share in 1968. Revenues rose 21 percent in the latest period to $1.5 billion from $1.2 billion the year before. The company declined to disclose its results for the $21,179,300 Mere we grow sugsiim Norfolk grows in resources because it grows in customer service TOTAL RESOURCES 1969 $243,904,395.15 1968 $226,997,316.15 1969 NET GAIN $16,907,079.00 NYSE may list Bell warrants vertible subordinated debentures due 1995 for sale through underwriters led by Goldman Sachs Co. Goldman Sachs Co.

and associates said the registration statement covering $21,179,300 of BU-LOVA WATCH CO INC. 6 percent convertible subordinated debentues due Feb. 1, 1990, is effective. BASF AG, Ludwigshaf-en, West Germany, and CENTURY DATA SYSTEMS Anaheim, an affiliate of California Computer Products, have announced agreement to permit BASF to manufacture disk drives for use with digital computers under license from CDS. up 25 percent fourth quarter of 1969.

However, according to the estimate of an industry observer, net income in the quarter advanced to approximately $45 million from $37 million in 1968. Xerox said that its revenue figures for both 1969 and 1968 consolidate for the first time the revenues of Rank Xerox the London-based company over which Xerox recently gained voting control. Iacarprat(4 It is understood that the NYSE's governing board in coming weeks will consider approving the policy switch to allow the trading. When Ma Bell starts to issue warrants to widows and orphans, we should consider changing our policy no question about it," a Big Board source told Dow Jones. Statement of Condition as of December 31, 1969 Cjih and due from BiM U.

S. Government 0b ticns 05 138.60,3I.S 10.73!,;: 65 NEW YORK The New York Stock Exchange is considering liiting the new five-year American Telephone Telegraph Co. warrants, Dow Jones learned yesterday. Such listing would represent a policy change for the Big Board which traditionally has refused to list long-term warrants. J.

PRESS FINAL REDUCTIONS 25 LIABILITIES DEPOSITS Demand Savings tri Other Tims Total Deposits Uiearned trcoro and Otner liabilities Reserve on Leans Capital Surplus fijannty fsri Capital Kesenes Udmdei Ficfits 1969 $:34.96,174.99 2.134.24401 SAX 300 icoco.oeooo 2.160,00000 5:5.727.34 1.647?15 2G9.C35.94.:3 12.931.404.01 S'ltt and Immoral Securities Other Bonds and Securities federal Funds So'd lojns and Discounts F.tn-Urt lutures aid Vats Other Assets TOTAL Watch Company, Inc. Subordinated Debentures due February 1, 1990 00 IfiM 2.004.:6i.C4 5.000,00000 euoo.oocoo 5I5.72.3& 15. fut cnm.it DIRECTORS 90305 TOTAL Th Company fa offering to holders of its Common Stock the right to aubscrib) for tha Debentures as set forth in the Prospectus. Subscription Warrants expire at 3:00 P.M, Eastern Standard Time, February 6, 1970, Subscription Price to Warrant Holders 100 of Principal Amount Prior to and after the expiration of the Warrants, the several Underwriters may offer Debentures to the public at the prices and pursuant to the terms and conditions set forth in the Prospectus. 111 OFF J.

PRESS FALL AND WINTER TOPCOATS OVERCOATS REVERSIBLES STORM COATS SPORT JACKETS GLOVES MUFFLERS 20 OFF J. PRESS FALL 5. INTER SUITS TROUSERS Upon request, copy of the Prospectus desxribmf them eeeuritiee and the business of the Company may be obtained within any Stare from any t'nderwntei who may regularly distribute it within such State. Tha aecurities are offered only by mans of the Proapectua, and thia announcement is neither an cBar to mil not a aolidtatioa oi any oBet to buy. PHILIP D.

BALCOM President, Abrasive Products, Inc. JOHN P. BIRMINGHAM President, General-Automatic Oil Heat, Inc. MATTHEW BROWN Partner, Brown, Rudnick, freed end Gesmer GEORGE S. BURR Chairman, Instron Corporation ELMER O.

CAPPERS Trusfes FRED A. CARLSON Vice-President end Treasurer, The HotUston Mills, Inc. DANA P. CARTER Direciot end Secretary, The VfUliam Carter Co. WIGHT P.

COISURN Consult ant KENNETH F. CORCORAN Consultant DANA H. DANFORTH President, Donforfh Associates, Inc. DOMINIC P. DiMAGGIO President, A-nericon lota Fibre Corp.

JOHN H. DRAPER, JR. President, Draper Bros. Co. JOHN F.

GRAHAM Executive Vice-President BERNARD D. GROSSMAN Treasurer, Grossman Industrial Propetlies, Inc. GEORGE HOWLAND President, Minot, 4 Maddison, Inc. JOHN W. KUNHARDT Vice President, Hunneman Inc.

DONALD J. MANN President, Buckle and Mann, Inc. JOHN S. MARSH PresiVenf HAROLD B. NASH Attomey-af-law FRANKLIN P.

PARKER Trustee ROGER P. SONNABEND President, Hotel Corporation oi America JOSEPH P. TYRRELL Vice-President and Treasurer, iojtcn Edison Co. RICHARD S. WILLIS Trustee JAMES P.

WINCHESTER Chairrran of the Board Goldman, Sachs Co. Blyth Inc. Eaitman Dillon, Union Securities Co. Hornblower eekj-Heaphill, Noyes Kidder, Peabody Co. larerat4 Lehman Brothers LoCb, Rhoades Co.

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