The San Francisco Examiner from San Francisco, California • 64

EXAMINER BUSINESS PAGES Thunday, Oct. 14, 1971 Page 64 Business Editor: Jack Milter 3RIEFEVGS ri THE EXAMINER BUSINESS STAFF me Rate Cut can tell, he sug- than now' jested. By Jack Wilier Busine. Editor The president of the pow-e 1 American Bankers Association, in San Francisco for next week's annual convention, today said he's not sure the prime rate is ready for a cut yet. charge is a reflection of "all other kinds of forces in the money market." Since he earns his living as president of the Security Bank Trust of Owa-kinna, "a small unity bank with about $34 million in assets," lie doesn't have to worry about setting the prime rate.

"The big banks do that and we just follow," he said. It's generally conceded in financial circles that BY I I Japan Leads in Reserve Gains Total reserves of 14 major Industrial countries rose to record $83,601 billion at the end of August from $65,746 billion at the end of 1970, the 118-country International Monetary Fund reported in Washington. Japan's foreign Jfxchange holdings almost quadrupled to $11,009 billion 'since the yearend, while those of France and Germany rose sharply. Exchange holdings of the U.S., Den-mark and The Netherlands declined. Dock Strike Hits Venn Central Perm Central Railroad, struggling to keep its trains operating during recovery from financial woes, reported today in Philadelphia it is.

losing $4.6 million a week as a result of the continuing East Const dock strike and nationwide strike of soft coal workers. Penn Central has been forced to lay off 2000 employes. Penn Central's losses will reach about 91,000 carloads of traffic and $18.8 million in revenue for each month of the strike. Canada September Jobless Up ing a "floor" on rales. Adding fuel to the downward drift in rates, the banker observed, is the fact "money is plentiful." The Federal Reserve System has been adding to the money supply in recent weeks and personal savings are up substantially.

At the same time, he said, consumer loans are up sharply, suggesting "perhaps people are starting to buy even though they are continuing to save." What's the ABA outlook on the economy? "We believe it will improve for the balance of this year and the trend will accelerate into 1972," the banker said. 14.000 bankers and their, wives to Sun Sommer noted that "we; have a real headliner" for one of our speakers. lie's John B. ConnallyJ Secretary of the Treasury, who will bring the industry) the latest word on cconom ic developments, I What's the No. 1 item on' the convention's agenda? "Inflation it's the top- problem for all bankers government and the pub- lie." Sommer said wilt urge the bankers "to con-' tinue to think in terms public interest and to ex-; pand services" in areas' like student loans a d' loans to minority groups.

The convention runs through Wednesday. With rates trending "away from firmness," the banker scoffs at pressure from labor and other groups for a freeze on interest rates generally. He cited the 6 percent prime rate now as an example and said: "The forces are not hitting at 6 percent at all." The ABA president said 's not against giving President Nixon "standby power" to control interest rates. That would be sufficient, he added, noting the association "hasn't taken any official position as an organization." Elaborating on the prime rate, Sommer pointed out that this- key 1 ending But Clifford C. Sommer, who is winding up his one-year term as head of the trade association that claims it represents 97 percent of the commercial banks in the nation, concedes "interest rates are drifting downward." Whether the drift is sufficient to produce a reduction in the price banks charge their biggest and best customers is" something ordv more softness changes jn the prime rate herald changes in ether rates that affect the small borrower, too.

Which may be why Sommer noted any ceiling on interest rates at the same time also winds up provid- CLIFFORD C. SOMMER Here for convention Referring to the convention, which will bring about IlilHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIt 'A. 1 of A Net Runs Well Above '70 Unusual Book Binder Canada's seasonally adjusted unemployment rate in September rose to 7.1 percent from 6.5 percent in August, the Bureau of Statistics said today in Ottawa. The September rate is the highest jobless level in 10 years. The fiumber of unemployed in September dropped to 434,000 from 455,000, while the number of employed persons dropped to 8,138,000 from 8,517,000.

Japan Airline Halls Boeing Order All Nippon Airlines said today in Tokyo it has decided Ko postpone the purchase of three Boeing 747 jumbo jets it as originally planning to buy during the fiscal year beginning April 1. Earlier the airline had announced it would buy only three Boeing 737 twin jets next year instead of seven it originally intended to buy. Bank Interest Rates Loner A Federal Reserve Board survey of interest rates charged by banks, released today in Washington, showed- Martin Testifies, Defends His Plan WASHINGTON (DJ) William McChesney Martfr former chairman of the Federal Reserve Board, denieel today that his concept of a central stock exchange market would be dominated by the New York Stock Exchange, anyone else. Testifying at the Securities and Exchange Commission's stock market hearing, Martin sought to offset criticism of his recent stock market report to the Big Board. Martin told the SEC, the NYSE would not dominate his proposed integrated stock market system any more than the New York Federal Reserve Bank dominates the banking Growth in earnings and strong deposit increases highlighted the performance of BankAmerica Corp.

in the nine months ended Sept. 30, A. W. Clausen, president, announced today. Consolidated income before securities transactions rose to $126,038,000, or $3.66 a business.

Several hundred prominent California businessmen', publishers and educators are backing production of a novel machine that its inventor claims makes book binding quick and easy. William H. Abildgaard, M.D., invented and is producing an office-size bookbinder that makes an instant book out of loose paper. An 'engineering student Martin also told the hear that rates generally fell in the second half of August after President Nixon's wage-price freeze began. The survey of 295 banks indicated that changes in effective interest rates between the weeks ended Aug.

14 and 28 generally were small and decreases substantially outweighed increases. i x- v. vHA 1 y.y XPu, i. iLJ share, an increase of 7.3 percent over the comparable 1970 figure of $117,183,000, or $341 a share. Net income totaled ing two other essential elements for a healthy future marketplace are uniform regulations of the market and a specific legislative exemption from antitrust laws.

Separate Marketplace He denied his central market proposals would put third market securities firms out of business, asserting that his objective is to enlarge the access of different securities 62 Million To Sew a I .1 Home by '75 More than 62 million in the United States will A S3 million helium-filled airship is to be built in Britain by the U.S.-owned Goodyear Tire and Rub-, ber Goodyear announced yesterday. To toe named Europa it will be the first airship to be seen in English skies since the Bournemouth flew in 1952. Europa, which will be built at the Royal Aircraft establishment at' Cardington, Bedfordshire, is expected to be ready ler test flight next -April. Goodyear To Build Airship 362,000, or $3.79 a share, compared with $117,589,000, or $3.42 a share, for the first three quarters of last year. Profits on securities were $4,324,000.

In the last 12 months deposits increased 15.7 per cent to $28,668,936,000, Clausen said. Consolidated resources firms to the central market and said the over the counter markets would form a sepa before World War II, Abildgaard subsequently became a doctor. Later, he invented a disposable surgical glove and had to drop his medical practice to de- vote his time to the venture. He sold that concern after seven years' in 1966 to create his book binder. The concept, called Velo-Bind, rents for $50 a month and up, with cost per binding running about 10 cents, he said.

rose 16.7 percent to be sewing at home by 1975, an increase of 28 percent over the previous high of 45 million in 1970, George Schmidt, group vice president and president of Singer consumer products. (division, said today at a press conference. Singer's' operation in the Eay Area includes the Friden division in San Leandrb, business machine manufac rate marketplace from the exchange system. Martin's proposals also came under fire at the hearing by officials of two insurance trade associations. Causes Ignored The officials charged Martin had prescribed a remedy 599,195,000.

Loans amounted to while investments in securities were of which represented direct or guaranteed obligations of the U.S. government. As of Sept. 30, total capital funds and reserve for possible loan losses were Dr. William Abildgaard and his latest pride 1000 go at a rate of about for current fragmentation of Rockwell and Bechtel Corpr "We anticipate placing about 400 binders a month by next year," Abildgaard said, "and within 18 months our machines will Abildgaard Laboratories, based iri test placed about 200 binding machines a month in such places as Bank of America, North American the marketplace that ignores the two principle causes of such fragmentation: Fixed units per month." While only operating in California, the firm plans to go nationwide within the next year and a half, Abildgaard said.

657,328,000, compared with $1,482,376,000 a year ago. During the third quarter, Clausen noted, Bank of America reached its goal of extending $100 million for turer and the housing division, also in the East Bay city, which builds homes, apartments and duplexes. The Friden unit employs about 1300 people, and the housing concern has 600 employes. The firm also owns the Air Force Link Trainer operation minimum commission rates and the prohibition against institutional membership on major stock exchanges. The testimony was given by representatives of the American Life Convention and the Insurance Association of nome loans to low income Lower Court Rulinir families throughout California, and committed another $100 million to the special program.

Film Producers Get Loan The president of the Motion Picture Association of America says the Export-Import Bank of Washington, D.C. has agreed to loan domestic film producers up to 80 percent on foreign film rights. Jack Valenti said in a statement released today the bank's action comes at a time when the motion picture industry is searching for, ways to increase domestic film production. All But Chrysler Show Gains With the exception of Chrysler, Detroit's automakers had passenger car sales increases during the first eight days of October compared with a similar period last year, according to figures released today. Chrysler reported gales of 30.633 cars during the Oct.

1-10 selling period compared with 49,726 during the nine-day selling period last year. General Motors which suffered from last year's strike, showed a big gain with 139,050 new car sales compared with 92,026 sold a year earlier. Ford showed sales of 76,953 new cars compared with during the 1970 period. And American Motors reported sales of 8579 cars compared with 8461 last year. Mismanagement Suit Dismissed A stockholders suit charging mismanagement of the Reading by the Chesapeake Ohio Baltimore Ohio Railway System which owns 45 percent of Reading's stock was dismissed by the Pennsylvania Supreme Court suit had earlier been turned down by the Philadelphia common pleas court.

IIR Freight Tonnage Off ailrad freight tonnage last week was about 13 bil-hon ton miles, down 16.5 percent from a year ago the wSSon estimated Thursday in Washington. Ihe Association said carloadings on which ton mileage estimates are based totaled 444,882 last week compared with 514.135 in thp Reversed in Oxy Case Cartoonist To Address S.F. Ad Cluh Milton Caniff, creator of Steve Canyon, a daily feature in The Examiner, will in Sunnyvale, which employes 300. Singer's U.S. division of the North American const- mer products group operates 1300 retail stores with 500 dealers, Schmidt said.

America. They charged Martin's recommendations would cause millions of investors dealing with insurance companies and other financial institutions to "suffer rather than benefit." NEW YORK (UPI) -The U.S. Court of Appeals nullified a lower court ruling ordering Occidental Petrole- Dollar Drops To New Low Against Yen TOKYO (DJ) The dollar today dropped to a record low on the Tokyo foreign exchange market, closing at 329.80 yen in interbank dealings. It was the first time the dollar dropped below 330 yen since the currency was floated Aug. 23.

It represented a yen revaluation of 9.2 percent. The yen had opened at 329.80. It closed at 330 Bigger Corn Cror WASHINGTON (AP -The nation's corn crop is expected to total 5.4 billion bushels this year, more than 600 million bushels larger than the previous record set four years ago, the Agriculture Department says. Gude Price Hiked JAKARTA (UPI) Indonesia has raised the price of its crude oil exports by 39 cents a barrel to cope with the virtual devaluation of the U.S. dollar, a spokesman for the state-run Pertamina said.

present a chalk-talk and give away cartoons as door prizes on Newspaper Day at the Oct. 20 luncheon meeting of the San Francisco Advertising Club at the Sheraton-Palace Hotel. George Wilt, editor of Editor Publisher, will present awards for newspaper color ads. Chairman of the day is board member Lyman B. McBride, head of the Newspaper Departmental Inventories Up In -Month, Hit $176.2 Billion WASHINGTON (UPI) The nation's business inventories, spurred by large buying by retailers, increased $675 million in August, more urn Corp.

to return $23.5 million to stockholders of a land holding firm. At the same time, the court dismissed further litigation against Occidental brought by the Kern County Land of California. The land company was expected to appeal the verdict. The suit had its beginning in an attempt by Occidental to merge with Kern. Repulsed, Occidental made an offer to stockholders to buy all of the company's 100,000 common shares.

It obtained about 10,000 shares. Meantime, Kern County merged with Tenncco in a share exchange that appreciated Kern stock. Eventually the lower court held that the exchange constituted week of 1970. C.rT."' 11 Mm sale in than twice the July rise, the Commerce Department said today. Stage Coach Drive-In Restaurant Block to the busiest intersection in Reno.

lotaled 20,303,130, compared fllTwVyei ago Japan Government Will Resume Textile Talks LEGAL NOTICE Ihe figures, which reflect two weeks of the wage-price freeze, showed a $000 retail inventory increase during August, adjusted for seasonal variation. The biggest factor a sale, thus was a violation of the rules of the Securities Exchange Commission. Occidental was ordered to return the profits on the Kern stock it held. voluntary controls on exports to the United States. The Seats approximately 60 people.

Building and equipment $65,000 Principals only. Call (702)329 0016 a i I I unnea states, however, agreement in wanted a writing. 13 or write 1492 So. Virginia Reno, Nevada Now leasing '72 Models Lowest rates en Chrysler Products I Dodge Trucks 9502 TOKYO i UPI) Der spite the firm opposition of the Japanese textile industry, the government will resume negotiations with the United Stales tomorrow on a textile agreement. The announcement came from Kakuei Tanaka, minister of trade and industry, following a talk with David M.

Kennedy, special U.S. embassador. Tolks on a possible government-to-government agree-nwnt collapsed earlier this year after the U.S. Congress On Ottobtr 1, 1971, thr wot filed ita FtJrn? Commumcotioni Commimofi in Wojhington, D.C, on oppli-tohon inciting ill conmnt to lh omgnmcnt of licsni of Station KEMO-TV, Son Froneiieo, California, from U.S. Communication of California, Inc.

to Lean A. Crotby. Th following or itit of'icri, director ondor ownnri of 10 or mo! cf th itoclc of U.S. Communication ol California, Frank H. Rciehal, Jr.

Frank H. Minner Leonard B. Stcvtnt Thomo V. Lefevr Somen K. Steelmon Frank S.

Boldwin, III Shtrill C. Corwin U.S. Communication Corporation Lton A. Croiby, 'bo ott'gn, it an individual. Station KEMO-TV oproti en Chonnol 20 ot San Fran-Ciico, California.

A copy of th application and related material i on fiU for public iniptction ot 2509 Morin Street, San franciieo, California, djrmg regular bunnet hsurt. in the rise was a $640 million buying spree by automobile dealers, largely ref lecting the arrival of new models from Detroit. Manufacturers and whole-sale inventories virtually were unchanged from the previous month, the depart-m said. Manufacturer sales in August declined 1.25 percent, however, due almost entirely to lower steel (shipments following the steel-worker strike. Wholesale sales were almost unchanged from July.

Total business inventories in August, seasonally adjusted, and subject to later revision, equalled $16.2 billion, Example: "Freeze Special" (last ft i irltt I (cm Ti crttitt 72 DODGE $69 Emerging from his meeting with Kennedy, Tanaka told newsmen that the U.S. attitude allowed no room for compromise. The United States has threatened to impose import quotas on textile goods from the Far East by tomorrow unless a written agreement is worked out. The Japanese textile inHns. 36 monthly payments open DART Hardtop Nicely equipped tr r-9 r3 i f3 riclsry Air tS 00 MitiontU try has estimated that Japan's exports to the United States would be cut in failed to approve legislation mandating quotas on textile imports.

Subsequently the Japanese lextile industry broadened GOLDEN GATE LEASING 1535 Van Ness Avenue an compared with' $175 6 billion nait next year with such agreement. in July. i.