El Paso Times from El Paso, Texas • 16

FiVMA suffers $18.5 million net loss money to invest in new mortgages while collecting low rates for mortgages issued or purchased in past years. Fannie Mae "was established in 1938 as an agency of the federal government to aid expansion of the mortgage market. It was transformed into a for-profit, tax-paying corporation in 1968 4 WASHINGTON (AP) The Federal National Mortgage Association, a major purchaser of home loans in the secondary market, suffered an $18.5 million net loss in the April-June quarter of this year, the agency announced Friday. "The principal cause of the second-quarter loss was the corporation's record cost of borrowing, which increased more than the yield on FNMA's mortgage portfolio," officials reported. Thus, FNMA, commonly known as Fannie Mae, was suffering a somewhat similar problem as the savings institutions which originate a majority of home loans: having to pay high interest rates to attract Page 6-B Saturday, July 11, 1981 r.

3 restricted to basic listings Continental Airlines Judge clears way for stock plan SEE A DEMONSTR ATION OF THE COMPLETE COOKING STEM TO REPLACE ALL OTHERS SATURDAY, Jl LY 11TH 11 A.M. to 2 P.M. Exclusively from Jenn-Air. WASHINGTON (AP) The Senate Com mm the ESOP on the ground that the New York Stock Exchange would delist Continental stock if the purchase is consummated. However, Weil ruled that delisting was not cause for an injunction.

"I don't think delisting connotes that a company has done anything wrong," Weil said in denying the request. The ruling is the latest step in a five-month take-over battle between Continental, the nation's 10th largest airline, and Houston-based Texas International Airlines. TI, which already owns 48.5 percent of Continental, recently failed to win a similar injunction in federal court. LOS ANGELES (AP) Los Angeles County Superior Court Judge Robert Weil on Friday denied an attempt to block the sale of Continental Airlines to its employees. The ruling clears the way for Continental to proceed with its employee stock ownership plan if the carrier wins approval from the California corporations commissioner.

If approval is granted, Continental on July 15 could become the nation's largest worker-owned company, The suit, brought by Continental shareholder Nicholas Maris, sought to prevent T.V.4 AfPUANCICO. 3400 FOST BIWD sti tm EJZS3 1 1 HAWAIIAN MAILE LEAF merce Committee, bowing to newspaper publishers' concerns, unveiled an amended telephone deregulation bill Friday that would impose stingent restrictions on the types of information the American Telephone Telegraph Co. could offer consumers electronically. The bill would allow to provide its basic phone directory listings name, address and number electronically. But it would bar the company from packaging and offering its own advertising, news or other information in an electronic form that could be received by consumers on a TV set or computer terminal.

Dislosure of the new legislative draft, now scheduled to be voted on by the committee next week, came as unexpectedly announced it was canceling plans to test an electronic information service in Austin, Texas. The company cited "protracted regulatory and legal proceedings" stemming from the opposition of Texas newspaper publishers as the major reason for canceling the experiment. While the giant telephone company said it intended to find "other means to move ahead" in experimenting with such an electronic service, the new Senate bill would sharply restrict options. The bill is designed to update and modernize GOLD ELECTRO COVERED ACTUALSIZE New president takes reins Aug. 1 Maile leaves have long been a favorite of the Hawaiian people.

At one time, only Alii's (Royalty) used them for leis. They considered them to have spiritual essence which will bring good luck. This maile leaf has been hand selected from the island of Kauai and is guaranteed to be both 24 karat gold electro-covered and made in the Hawaiian Islands. Aloha from Hawaii-Cer- Feldman will retain the position of chief executive officer when he moves up to become chairman of the corporation. Robert F.

Six will remain chairman of the board until he retires in August 1982. Warde will fill a position vacant since the retirement of Alexander Damm in 1980 when Feldman assumed his duties. He became president of American Airlines in 1971. Continental Airlines will get a new president and chief operating officer August 1, the company announced to employees Friday. George A.

Warde, a senior vice president of Airbus Industries and former president and chief operating officer of American Airlines, will assume some of the duties of current president A.L. Feldman. I tificate of authentically TurniMiea wnn wane Also ovalloble by lomt process: filigree fern Leaf. ADVERTISED NATIONALLY ATS17.50 Conoco, Texaco raise cash, sparking merger speculation eaves; sand dollars, clam shells; and others. BEN WILLIAMS JEWELERS Certified Gemologist Accredited Gem Laboratory the 1934 law that now governs regulation of the entire telephone industry.

As such, it deals with many larger questions than the dispute, including whether must be broken up to ensure competition. El Paso radio stations bought by Georgia firm An agreement to sell El Paso radio stations KAMA AM and FM to Thrash Broadcasting Co. of Atlanta, was announced Friday by Jack R. McVeigh president of KAMA Radio Inc. Thrash Broadcasting owns KLLL AM and FM in Lubbock and has an interest in a television station in Greensboro, N.C.

The firm also operates a background music company in Savannah, and Hilton Head Island, S.C. No purchase price was announced. APPRAISAL SERVICE CUSTOM MOUNTING "It sounds to me like too much for general corporate purposes," said Constantine Flia-kos, an analyst for Merrill Lynch, Pierce, Fen-ner Smith Inc. He speculated that Conoco might be considering bidding for its own shares if that becomes necessary to fight off a hostile bid. Texaco, which previously discussed a possible merger with Conoco, is arranging a $5.5 billion line of credit with banks led by Chase Manhattan, banking industry sources reported, adding that it would be the largest such credit line ever.

NEW YORK (AP) Conoco Inc. said Friday it has boosted its line of credit to $3 billion and sources reported that Texaco Inc. is arranging to borrow $5.5 billion, which would be the largest bank credit line in history. The stockpiling of cash immediately aroused speculation that Conoco may fear its planned merger with Du Pont Co. is in trouble and is raising a defense fund in case it has to fight off an unwanted suitor.

Conoco said the $3 billion line of credit from domestic and foreign banks was arranged "for general corporate purposes," but that explanation was doubled by some. McRae Wedqewood Eastwood Knoll's Center 598-2469 HOURS: MONDAY FRIDAY 9:30 A.M. 6:00 P.M. SATURDAY 9:30 M. P.M 7 No interest rate relief seen Fed reports money supply dip fm EL PASO NATIONAL CORPORATION pav; Tfiw, Julv 9, 19R1 NEW YORK (AP) A decline in the nation's money supply was cheered in the nation's credit markets Friday, but there was little indication interest rates would fall.

The news triggered a rally in bond markets where "a modest decline" in rates occurred, said Maury Harris, an economist with the investment firm of Paine, Webber, Jackson Curtis Inc. "The markets are reacting in a very bullish fashion," he said. But there is concern that next week's the Federal Reserve will report a bulge in the money supply, when figures will include the deposit of Social Security checks in accounts at the nation's banks. Those checks, which often swell the money supply, will also include the first payments of an 11 percent increase in Social Security benefits. Harris said that because the money supply has been receding recently, a slight increase next week could be tolerated.

The Fed said that in the week ended July 1, the nation's basic money supply, known as MIA and including cash in circulation and non-interest-bearing checking accounts, fell FOR IMMF.MATF RELEASE RE: TRAniNC OF EL PASO NATIONAL CORPORATION COMMON STOCK El Paso National Corporation, an Fl Paso, Texs, domicile'' multi-bank holding comnany, announced today that management of the comnanv had become awar" that unusual trading volume and price increases in the company's $5.00 par value common stock in the past few weks were possiblv based upon rumors that a sale of a m-ijor hlock of shares was imminent. Management confirmed that several major stockholders hove been approached concerning the sale of their stock, but emphasized that to the knowledge of management, no agreements with any party have been reached as yet, and that there can be no assurance that any such agreements will be reached. Management also commented that any sale of a r.ajor block of the El Daso National Corporation stock would be subject to approval by several rpgulatory agencies, and could be delayed a period of time pending such approval, or prevented altogether if such approval could not be obtained. El Paso National Corporation is the parent corporation of F.l Paso National Bank, First State Bank, Northgate National Rank of El Paso, Border Citv Bank, Chamizal National Bank and West El Paso National Rank, all commercial banks operating in El Paso, Texas. It additionally owns East El Paso National Rank, chartered bv the Comptroller and awaiting opening of its offices in El Paso in October, 1981, as well as several nonbanking subsidiaries.

$500 million to a seasonally adjusted average of $361.1 billion. Money readily available for spending, known as M1B and including cash in circulation and in checking-type accounts in financial institutions, dropped $1.3 billion in the same week to a seasonally adjusted $427.3 billion. In the last four weeks, M1B averaged $428.5 billion, a 2.5 percent rate of increase in the statistical quarter. Money supply growth in recent weeks has been well within Fed targets, easing fears that the central bank would tighten credit reins further, driving up interest rates. Too fast growth of the money supply, it is feared, spurs inflation.

Meanwhile, in Washington, the Fed's policy arm, the Federal Open Market Committee, released minutes of its May 18 meeting and it was clear the Fed is committed to sternly controlling money growth, as a tactic against inflation. The committee sharply cut back its April-June target of M1B growth from 5.5 percent, agreed to in March, to 3 percent or less. The May meeting followed an unexpected surge in the money supply in April. Farmers expect good corn harvest WASHINGTON (AP) Farmers are expected to harvest 7.12 billion bushels of corn this fall, 7 percent more than the drought-shriveled harvest of 1980, the Agriculture Department said Friday. If the crop materializes as experts said in their initial forecast, it would be the third-largest harvest on record, exceeded only by the yield of 7.94 billion bushels in 1979 and 7.27 billion in 1978.

Even so, the corn outlook now is for a smaller 1981 harvest than many experts counted on before heavy rains delayed plantings this spring in much of the eastern Corn Belt. The wheat harvest, in progress now, was stimated at a record 2.81 billion bushels, up from about 2.37 billion last year, the previous high, the department's Crop Reporting Board said. Agriculture Secretary John R. Block called the corn estimate a "bullish report" that could signal some increase in the prices of feed grains. However, Block said the "magnitude of change would mean practically nothing to consumers" in the way of higher food prices.

Officials said the estimates were based on surveys made July 1 and cautioned the figures will be subject to revisions as the crop season progress. Bank board proposes interest plan WASHINGTON (AP) The Federal Home Loan Bank Board is proposing to allow its 12 regional banks to pay interest on the demand deposits of member savings and loan associations, the board has announced. The bank board, the prime regulator of federally insured offers those institutions a broad range of financial services "but has been prohibited by regulation from paying interest on demand deposit accounts," the announcement said. Authority to pay interest on those accounts "would enhance the ability of the banks to serve the thrift industry and would allow member institutions to make more productive use of their funds," it said. A relatively small amount of money is kept in federal home loan banks by which have most of their assets tied up in long-term mortgages.

But additional income from interest on the demand deposits would still be welcomed by the which have suffered net outflows of new savings deposits for a record three straight months. board agreed Thursday to formally propose the change, allowing 30 days for poblic comment before deciding whether to approve it as a final rule. 9IJ M(SU DALH III It PACO HS.