The San Francisco Examiner from San Francisco, California • 23

President's Pledge 4No White Box for This Firm's Tape' By DONALD K. WHITE Ciominir Finincitl Mitar sixth most actue issue on 68,100 shares. Second was up $1.62 on 59,300 market's early ability to receive some fairly big blocks at only a slight drop in prices San Francisco Examiner NEW YORK. June 27. lAP An irregular stock market ended Wednesday turnover of 38,300 shares.

Republic Avlation'i ipurt Indicated a pretty good re shares. Third was U. S. Steel, up 12c on 54,400 shares. with a burst of buying encouraged other aerospace rPHERE IS ABOUT as much relation between the strength and some substan serve of buying power.

Early losses began to fade as the day wore on and in Next came Xerox, up $6, and International Business Ma tial gains by the most active issues. Fractional gains were made by Boeing, United Aircraft and General Dynamics. issues. The er-all list, how terest warmed up enough in chines, up $13 at $333. 5C THURSDAY, JUNE 28, 1962 the final minutes to generate ever, was mixed, although most popular averages closed The ability of any stock to respond to news, in view of a buying wave accompanied the session with slight gains.

by a late ticker tape. the depressed psychology of gains of Is! by American Telephone and 'j by Consolidated Edison. Some technicians said the There were so many losses, hoeer, that of market "acted well" in han the market in general, was looked upon as good omen by some Wall Streeters. dling early offerings without the 1.282 issues traded, losers Late news that the Air Force Among issues involved In big offerings, White Motor yielded 12c, Corn Products -62c and American Tobacco 12c. Twentieth Century-Fox rose $1.50.

The stock began to move up in advance of news that veteran movie maker Spyros Skouras will retire as presw dent of the company on Sept. 30. market most of the day. Volume fell to 3.89 million shares from 4.63 million Tuesday. The Dow Jones industrial average, which had sunk as much as 4.05 points to 531.71 at noon, ended with a net gain of 1.22 points at 538.98.

too much of a break in prices, "Apparently, they're getting type of tape used in home lecording equipment and that used in the terribly sophisticated equipment at Cape Canaveral as there is between a Model and a Maserati. The production of this high-speed, high precision tape is one of the most ticklish jobs in scientific industry. An infinitesimal jlaio or a spot of dust on Vie tape can th'row computers oat of kilter. At a viissile launching site, this can cause misfires. A bum tape in a bank's computing department can raise hob tcith tlie customers' dispositions.

Many of the top tape manufacturers admit that as much as a third of the tape they produce for high science or big computer use can't be used for that purpose. outnumbered gainers by 529 to 486. New lows for the year totaled 154. There were no remaining well above Mon has awarded two contracts totaling about $144 million to Republic Aviation spurred Re day'i low which are gradu a little more courage down here," said one broker. Polaroid as the most ac ally assuming more signifi new highs.

public stock to a rise of $2.50 cance. They added that the It was a drab and cautious at $16.62, making it the day Utilities were bolstered by tive issue, rising $4.25 on Western Pacific Faces Big Year Good '62 i Ad Year Forecast INVESTMENT HINTS Mail Stock Not IFor Metirement This tape then winds up in an unmarked white box at a cut-rate price and is sold to the home re corder who merely wants to record the sound of his children's birthday party. Western Pacific Railroad should have one of its By ALFRED J. SCHNEIDER best years ever in 1962, barring a strike or a sharp nOWN IN SANTA CLARA a small new firm thinks The advertising business drop in business, shareholders were told here yester day at the company's annual meeting. it has the tape production problem whipped.

will be very good this year, despite the uneasy character of the stock market, the new Frederic B. Whitman, president, said WP could The firm's name is Memorex Corporation and its president, a voluble, young redhead named Laurence earn as much as $3.12 a share Spittcrs says resolutely that "none of our tape will president of the American Association of Advertising Agen compared with $2.69 a share earned last year. He expects ever end up in a white box." cies declared here yesterday. "Indices we see don't show At this point, Memorex lias no interest in selling to the home recording market, but is aiming its sights gross revenues to reach $36.2 million, an increase of $2.5 million over 1961. any diminution of advertij' ing, John Crichton told a hews conference at the Fairmont much higher.

purpose, but I don't believe that Southern Pacific or any other railroad stock would. Because of excessive regulation, multiple taxation and keen competition from other forms of transport. I can see little prospect for growth for Southern Pacific. I believe the road Is well managed and the income is secure, but I would prefer to see you In a situation with stronger appreciation possibilities. mentioned Magnavox hrre recently and I believe this stock would Hll (he bill for you.

Mr. Spear cannot answer all mail personally but will answer all questions possible in his column. By ROGER E. SPEAR "I am 60 years of age, working steady, but have no pension except Social Security. I am thinking of buying Southern Pacific and California Packing.

Is this advisable or would you pick something else?" F. O. A You sound like i man who has several years of useful work ahead of him before retirement. I would say that what you need are stocks that appear to have a good chance to appreciate in price through growth over the next decade, so that your retirement will he cushioned. California Packing would qualify for this The railroad executive told "We're just starting our sales effort," says Spit- the shareholders he was only Hotel.

This is because most of the other Industries we watch are rising, he said. ters. "but we expect to have sales of $2 million in the making guess" about revenues and profits. NEW president of Air Reduction Pacific Company, ubftidiary of Air Kedm lion Company, Is Em-mctt W. MacCorkle Jr.

(above). He hits Itren lr president since 1918 and succeeds II. P. Filer, ho retires Julv 1. Crichton said estimates for next 12 months.

Our plant has the capacity to pro duce $10 million a year in sales." the next decade indicate that OUTLOOK FACTORS "Before the year Is out there may be a railroad advertising volume will be be Savings II an Us (niii Hue to Slock Sluuii NEW YORK, June 27. (AP The stock market decline was partly responsible for a record Increase of $184,000,000 In deposits in member Institutions, the National Association Savings Banks reported Wednesday. This compares with a $111,000,000 gain in May 1961 and the previous record of $181,000,000 in May 1958. The Association said the increase reflected the relatively high Interest rates paid on saving accounts compared with recent Investment yields. Spitters, a one-time investment banker with tween 50 per cent and 100 per Blyth Company and later assistant to the president cent greater than it is now Most advertising gains have strike." Whitman said.

"While we now have a gradual Improvement of business, we do of Ampcx which he left in 19G0, started putting Memorex together in 1961. The company has about been in the food and drug not know what effect the categories, Crichton said, add 30 shareholders, including seeral institutions. stock market drop may have ing: "The appetite of the on the future. American public for new con venience foods is enormous." rPlIE COMPANY'S PLANT, a sparkling white build ing in an area that was once an apricot orchard The advertising executive The profitable railroad, for which Southern Pacific and Santa Fe are bidding in a case now before the Inter looks for an increase in news Anchorage Stock Broker Suspended Paul Nichols, Anchorage stock broker, was suspended by the Pacific Coast Stock Exchange yesterday for not keeping enough capital in his has an interior like few other plants. paper and radio billings.

In Since dust is the bugaboo of tape production, the state Commerce Commission, is working closely with both June Construction Hits Another High part of the plant given over to the actual making the case of newspapers, Crichton said, advertisers can use so much of the newspaper tape is more sterile than most hospital operating of these lines on the joint use of facilities. Such use may save Western Pacific as much rooms. media because it is so flexible, lie also thinks the arrival ot Amex Voles lo Overhaul Board NFAV YORK, June 27. (AP) Members of the Ameri ''We've borrowed tie techniques of sterile-room ROP (run of the paper) color has created a "tremendous as $200,000 a year, said Whit man DIVIDEND VOTFD WASHINGTON, June 27. (AP) Construction activ Public construction reached an annual rate of $17.9 billion, amount of interest." Following the shareholders' can Stock F.xchanp nnnrnveri ity hit a record high this At a meeting of the A.A.A.A.

northern California firm. Nichols, who opened the first stock brokerage firm in Alaska seven years ago. is the only broker from that state who is a member of the meeting, the company's board Mrmda corning up from $17.3 billion In May. The biggest gain here was in Council, Crichton cailcd for of directors met. re-elected of tne eschange constitution highway activity, with some month with private outlays increasing over May at double the normal rate, the Commerce Department said Wed officers and declared the reg positive action against criti by a 439-to-22 vote.

cism of advertising. decline registered for military facilities and water sewer Eighty-six pages of amend exchange. ular quarterly dividend of 23 cents a share, payable Aug. nesday, I The amount of criticism ments to the basic law of the Before the exchange action 1j to holders of record Aug. 1.

of advertising in this coun nations second largest or yesterday, Nichols had al So far this year, total new try is difficult to measure, Crichton said. He added that ganized securities exchange will become effective Sept. 4. construction has amounted to $27.7 billion. This was 6 per cent above the $26.1 billion Toronto Stocks most criticism today is on "the grounds of taste." Dan A.

Kimball manufacturing from the pharmaceutical smjs Spitters. "We use dust filters similar to those employed in atomic energy facilities to prevent the, escape of radioactive particles." The company has also borrowed the principles of automation, production-line monitoring and process control more common to the pharmaceutical and chemical industries than to magnetic tape firms. Louis Higashi, Mcmorex's senior research chemist, has had eight years experience with Monsanto Chemical, while V. L. Noon, vice president in charge of manufacturing, was with Cutter Laboratories, Dow Chemical and Ampcx before joining the new company.

"Memorex was organized to meet a technical challenge and to exploit an economic opportunity," Spitters says, managing to sound at the same time like a graduate of the Harvard Business School and an attorney. Which is not surprising because the aggressive young redhead is both. Ui StOCkl CltW The meeting was Crich- Chairs New Bank ton's first appearance on the coast since becoming presi Conioitn Hutk? 471 13 Cattior Ait il Cwi Mm it' IMi DomtM MHi 1.11 Woo ilr Mm 1.H Total spending for new construction put in place reached an annual rate of just under $G3 billion In'June an increase of $2.2 billion over the May rate. These figures ere adjusted to take account of normal seasonal fluctuations. For private projects the annual rate this month was $45.1 billion, compared with $13.5 billion in May.

The largest gain was in nonfarm residential construction. SACRAMENTO, June A. Kimball, presi ready announced he was voluntarily suspending the operations of his firm because its capital of about $114,000 "has suffered serious erosio.ii due to the sharp drop of the market, a corresponding drop in business and other factors." "We are not going out of business now," Nichols said. "We are merely pulling back while trying to determine whether to go on 1)15 FoKonbrtoM M' dent of the A.A.A.A, last month. Prior to taking this position, he was with Adver spent in the comparable period last year.

Municipal Bonds The Bond Buyer's 20-bond municipal yield Index held unchanged last week at 3.26 per cent for the third week, indicating steady municipal bond prices. dent of Aerojet-General Corporation, has been elected board chairman of the new WTO Ounnjr M46 Hollmoor yt.tt 4ti kobrador 14 J)5! Nortno Pc Pttrol H.M nn tt 'lS Miorritt Sl Rock 1 II Tri oh i. HIM Unit Ktno I Bank of Sacramento which tising Age Magazine for more than 20 years, serving as editor for the past three plans to open in 90 to 120 days years Western Economy ut Work Tours Office Expanding Business World Custom-Aire to Merge Truck-Aire surance and Trust Co. T. K.

Miles was appointed Random Tours, said to be one of the world largest manager of staff administra Marshall Johnson and Nor-j no Federal income taxes last I fice is at 315 Montgomery San Francisco. duction, according to David Packard, president of the Palo tion for Shell Oil Company's year. first class rail tour operators, has recently quadrupled the man Biltz $150,000 for the firm. Alto -based electronics firm. size of its executive and salt's The new 30,000 square foot Crocker-Anulo Crocker-Anglo National Reich plans to expand the Richard A.

Hearst, assistant vice president of United California Bank's Burlingame office, retires July 1 after 35 years of service. The bank has transferred John Buck Ducato, assistant cashier, from branch administration, northern district headquarters to its San Francisco main office K. Hey man was appointed assistant industrial offices in the Pacific Build ing. Pacific Industries, Inc. has bought the Tuck-Aire Furnace Company here and ill merge it with its Custom-Aire Products division, it was announced yesterday by Henry L.

Mclntyre, president of Pacific Industries. James Tuck, president of the company bearing his facility operated by a subsidiary firm, Hewlett-Packard operation In the electronics field. He said the firm's an Founded in a 317 square GMBH, replaces a smaller Bank has leased quarters to house its second office in Stockton. The new office will foot office in 1958 by Freder leased facility established by nual volume has been around financial organization in New York Carlton F. Grady retires Saturday as manager of the property tax division of Standard Oil Co.

of California. He will be succeeded by Ralph B. Bevans. Citv of Paris Slorc Borrows The City of Paris Depart ick C. Sullivan, Random will $2,000,000 and that employ occupy 3.600 square feet at Hewlett Packard in the same area in 1939.

It is currently ment was down to 100. At 6023 Pacific Ave. in part of ji SsJ occupy 2.600 square feet of floor spac in its new fifth producing more than 30 one time the firm employed the space now used by the different types of electronic agent for the Santa Fe Rail name, will become a vice president of Custom-Aire. The deal was made through an exchange of an indisclosed G. T.

Horst Furniture Co. which will consolidate its op way at San Francisco sue measuring instruments for the European market, Packard floor headquarters. The executive branch of the new headquarters will include offices for the president, Frederick Sullivan; do RHEEMETALi erations and sales facilities at 623 Swain Road at Pacific said. ment Store has borrowed $2 feeding F.J.Rossi who moves to Salt Lake City as general L. C.

Johnson succeeds Heyman as traveling freight agent at San Francisco and Pacific indunt. Ave Xevnda Firm Sold racuic industries re as many as 400 people, he said. ttoothe Leunlnq Boothe Leasing Corp. has organized a computer leasing division to provide an alternative to the rental arrangements available through computer equipment manufacturers. Headquarters of the new division will be at the firm's New York City office 445 ported net income of $606,091 or 32 cents a share on sales of million on a long term mortgage loan from the Woodmen of the World Insurance Society of Omaha, it was nounced yesterday by George Nevada Air Products mestic operations head, Elwood F.

Odermatt; international operations supervisor, Mark Guerin and controller Harry O. Schatz. Adjacent to the executive offices will be the new north amount of cash and notes in Pacific Industries. Mclntyre said the merger should bring more than $2 million in additional annual volume to our heating and air-conditioning operations. Hewlett Packard Hewlett Packard Company's new plant near Stuttgart, West Germany, is now in full pro kuiidi M.dem, IWcl.nf cuitom amgnt in flMitlw Avallmbltt School $tof Offir Hom Awto Louixirltl tilouront Strici Station! Canopiai Shopping Canton Dairy Drivo-ini IXCLUSIVI DtAlIR Mcdonough STEEL COMPANY 0O-75ih Art OAKIANO, CAtlf.

Bum Ntotm l-00 Pieno electronics firm $17,784,684 for the nine months ended May 31. Comparable figures for a year ago were A. F. Hartun fills Johnson's' present position as city freight manager in the rail-; May's foreign freight department, San Francisco. Jackson Moffett was elected a vice president of Title In changed hands yesterday.

The new owner is Wendell Reich, of Los Altos Hills, former ern California regional tales pre-tax earnings of $1,152,586 or 67 cents a share on sales of S. DeBonis, president of the store. DeBonis said the money ill be used for working capital. offices managed by James G. Palmer.

vice president of Chicago Pneumatic Tool Co. He paid Park Ave. Boothe's main of- $12,988,921. The company paid WVv''ifc jf r. Home Mutual Savings AND LOAM ASSOCIATION a m.

USB an Aecoant injured by permanent D. S. Government Agency, Washington, D.CL Conservative, profitrminded Saa Franciscaaa have preferred Horn Mutual for over three-qnartet of century for trust; pension, mstitatkmal fundi. fuw Our S17I KFie FOUNDED 1885 31 lttk Emit TSri a frvlnf Nlk'Stcnmoflt tin Irvirtf it-irt MQniim 1-390 1(10 Pttk SUM fHoc VVii SS31 lfry Si. 24SC3 1 WtHko-DjIjetf I S.i; tU Wmn titit tlioprxf Conto) fcurai oor B'l' 0" Co I.