The San Francisco Examiner from San Francisco, California • 60

1 EXAMINER BUSINESS PAGES Friday, January 21, 1972 Page 60 Business editor: Jack Miller avmg9 Prime Cuts Spread Here The 7 percent prime mortgage rate has been a reality in the Bay Area for several weeks and it has been spreading in recent days. The hooker: The downpay-ment and other terms can vary enough to erase the apparent reduction. Wells Fargo, which has been boasting how strong its loan demand has been, said it's still good. The prime reductions reflect the generally softening money mar-kets, it explained. Savings and loans, which are paying from 5 to 6 percent on savings, are locked in with these rates at least until April 1.

For they already have promised those rates for this coming quarter. But the scuttlebutt in the industry is that a cut could come by midyear at if the current interest softness continues. Some leaders have been prodding regulatory authorities to cut the ceiling. They want the Federal Home Loan Bank Board to do the dirty job for them. But Preston Martin, chairman of the board, has The Wells Fargo savings rate cut is the second on the West Coast and the third in the nation.

Crocker Bank broke the ice Jan. 1 with an across-the-board reduction of one-half of 1 percent. Crocker, in going to a 43i percent prime, again is leading the way in California. Even giant Bank of America was awaiting further developments on both borrowing charges and savings interest. Predictions in money circles here we that the latest reductions in both will spread.

Today's events strengthen the likelihood. Wells Fargo, in taking the unpleasant step downward in savings interest, tried to take some of the edge off the bad news by simultaneously announcing reductions in top quality home mortgage rates to 7 from 7 percent. Wells also included cuts in personal and home improvement loan charges. Crocker Bank, which hasn't enjoyed its leadership in cutting savings rates, quickly joined in reducing home mortgage and consumer loan charges. By Jack Miller Business Editor The price banks charge on big corporate loans and the interest paid on savings crumbled further today in San Francisco and New York.

The result: The 4 percent interest on basic savings accounts appeared destined to take over the 4Ms percent rate and the 5 percent prime was yielding to and percent. The percent loan charge to a bank's best corporate customers broke out in New York today while Crocker Bank here snapped the 5 percent line by going to a 43i percent prime. While additional Eastern institutions were jumping aboard the 4 percent prime bandwagon, First National City Bank went down to 45t percent. The significance of all this to the small saver could be read in a Wells Fargo Bank's announcement that it was cutting its passbook savings rate to 4 percent Feb. 1.

Fixed term, fixed amount accounts, paying up to percent were unchanged. BRIEFINGS BY THE EXAMINER BUSINESS STAFF Sugar Traders it I cry Sugar prices on the London market today rose to an eight-year high in what brokers described as a nervous session. The London daily price was set at 79 pounds a ton, up 1 pound from yesterday's fixing. Commodity observers locally attributed the high sugar prices to a speculative market due in part to rising consumption and reportedly lower crop yields this year. Some sugar speculators are somewhat jittery or indecisive, whether to take their profits now or wait and see if the good prices recently will climb higher.

Competition Wrought Closing The wrought products department of the specialty metals division of Westinghouse Electric near Blairsdville, will be phased out of operation within the next few months, the company reported. Westinghouse blames depressed market conditions, including intense competition, for closing the facility. About half of the plant's 500 workers will be laid off. Inflation Off in Canada Canada had the least amount of consumer price Inflation through most of last year among the 14 leading industrial countries of the world, says the International Monetary Fund. But the rate of inflation was increasing as the year wore on, in contrast to prices in the U.S., where rapid increases early in 1971 tapered off.

Peking Woos U.S. Businessmen The latest product of the Chinese rumor mill passed on by a Hong Kong newspaper says Peking is preparing a list of 200 top American businessmen, mostly arming and food processing' executives, to be invited to attend Canton's SDrin? Fair in Anril. TTnuever. 1earHn? AmpriVan A Dire Need To Encourage Search for Oil Slocks Dip, Then Rally Near Close Consensus View Market Still Has A Distance to Go traders say they know nothing about the gesture. Probably because the invitations haven't been printed yet and besides how many U.S.

businessmen read Chinese fv XI lrf jib fJJ fy I mere were lewer noney bees last year and they apparently did not work as hard, the Agriculture De NEW YORK (AP) -Stock market prices were slightly lower at the close today. A late rally trimmed back an earlier slide. The Dow Jones average of 30 industrials closed off 2.86 at 907.44. At one point during the session it was off nearly 6 points. Instutional activity accounted for much of the activity, analysts said, and the number of blocks of 100,000 shares or more changing hands was higher han usual.

In the news background, several banks trimmed their prime lending rates. The government reported the cost of living index rose four tenths of 1 percent in December. Also, it said the GNP By Lindsay Arthur THE MAJORITY view is that the market will suffer, selling; pressure from time to timetbut the advance, whick began in November, still has a distance to go. i Alexander Hamilton Institute says: "No doubt thers; will be a consolidation period. But further gains lie ahead." Recommended is Arvin Industries, supplier of exhaust systems, as a beneficiary of brisk auto sales.

Moody's Stock Survey is equally confident: "Money rates will stay low and the business upturn will be turning Moody's, too, likes the automotive equipment makers, especially Borg-Warner, investment grade; Eaton, medium-grade, and Hayes-Albion, speculative. In this atmosphere, E.F. Hutton Co. is distributing its first 1972 Investment Quarterly. The Hutton analysts: think the Dow Jones industrials this year will pierce 1000, but not necessarily on the first try.

The recommended list includes: Cessna Aircraft on the growing importance of the company plane in transporting key people quickly. Mobile Home Industries, as an undervalued stocfc in relation to competitors. Bees No So Busy partment says. Honey production totaled 206.3 million pounds last year, down 11 percent from 1970, the Crop Reporting Board said. That was produced from 4,346,000 bee colonies, 5 percent fewer than the previous year.

Officials said the average yield of honey per colony last year was 47.5 pounds, down 3.2 pounds from 1970. climbed 6.1 percent during LONG BEACH II. J. Haynes, president of Standard Oil of California, cautioned today that government policies must do more to encourage domestic oil exploration, if a future energy shortage is to be averted. The oil executive said that "if an energy shortage should occur, it will not be nature's fault but rather our country's for failing to adopt, and to properly coordinate, policies that stimulate development of energy from all potential sources.

"The need for close coordination of such policies can not be over stressed," he emphasized, "for decisions affecting the supply of one fuel inevitably affect the supply and demand for all others." At the same time, the Standard officer stressed that "governmental energy policies no matter how encouraging to petroleum or other industries will not of themselves discover another barrel of oil or ton of coal." Speaking to the petroleum industry committee of the Long Eeach Chamber of Commerce, Haynes said the energy industries "alone can and must provide the management leadership and technological skills, and be willing to take the economic risks, that are so essential to solution of the energy problem." He urged oilmen to contribute to solution of the problem by advancing technology for discovery and production, improving the percentage of oil now recovered economically from known fields, and raising their overall productivity. Even assuming maximum domestic activity, it appears unavoidable that U.S. consumption of foreign oil will rise higher and higher in the years ahead, Haynes said. Thus, he pointed out, "our energy policies must recognize not only the need to foster domestic development, but equally so the vital necessity of retaining access to overseas oil. Oil's ability to expand domestic energy supplies will be contingent on its ability to the final three months of Datsuhs Average 325 Higher H.

J. HAYNES urges close coordination 1971. Volume on the New York Stock Exchange totaled 18.81 Nissan Motor Corp. in U.S.A., importers of Datsim cars and trucks, issued its third 1972 model price list. Prices of Datsuns, affected by the international monetary situation and excise tax repeal are, according to the list, an average of about $325 a car higher than in the 1971 million shares, compared with yesterday's 20.21 million shares.

Of the 1750 issues traded, 583 advanced, and 830 de clined. Standard Poor's 500-stock index lost .23 to 103.65. Allegheny Power was the most active issue on the Big Board, losing to 22Vz. generate capital with which to finance future exploratory activity, Haynes told the audience of approximately 500 on board the Queen Mary. "If petroleum is to fill its crucial role as a supplier of America's energy, public policies on oil will have to transcend political considerations," he said, "and encourage far more vigorously the high level of capital investment required to stimulate greater supplies." In this decade alone, the U.S.

oil industry will have to invest about $150 billion in capital and exploratory expenditures to meet increased energy demands, compared with only $60 billion in the 1960s, Haynes said. Improving oil's capital situation will require a variety of remedies involving government, public and industry action, he said. after removal of the excise tax, but before adjustment for surcharge and currency changes. Week's Retail Sales Off 1 Retail store sales last week were $7.18 billion, down 1 percent from the previous week but 7 percent above the week a year ago, the Commerce Department reported. Durable goods sales at $2.21 billion were up 13 percent from a year ago while nondurable goods sales at $4.97 billion were up 4 percent.

Sales in all major categories rose except drug and proprietary store sales which were unchanged. On the American Stock Ex change, the price-change index rose .03 to 26.71. Amex prices inclined vol ume leader Guerdon Industries, off 3 to 30 and TnE ANALYSTS at Eastman Dillon Investment Research chart their projection of the 1972 market: a zig-zag rise to midyear; a brief slide; an advance; a sharper slide; another rise at the yearend. Their 1971 forecast was correct but only for the first half, the Eastman team admits. 'I The firm's Donald Mishara" continues to favor such utilities as Florida Power, Middle South and Mid-Continent Telephone.

Alan R. Shaw at Harris, TJpham Co. thinks 1972 will be a higher year for the market, but we do not forecast a runaway bull trend." H-U's A. Rotnem names beneficiaries of devaluation, due to the large share of earnings derived from foreign operations, and these include Beckman Instruments, Colgate Palmolive, H.J. Heinz, Squibb Corp.

and Uniroyal. Merrill Lynch, Pierce, Fenner Smith Inc. analyze! the electrical equipment manufacturers, such as: Cutler-Hammer should show a good recovery in earnings in 1972. I-T-E Imperial as a leader in substation equipment and in new technology. Argus Research Corp.

thinks Mead Tappan Co. and Riviana Foods are candidates for purchase. Lockheed Gets Payment on C5A Locmeea Aircrau corp. receivea a miiuon progress payment on the C5A aircraft contract. The payment brought the total obligated on the big plane to the Air Force said.

Sears to Sell Video Tape Slock Buy lo Switch Dunes Casino Control Jeannette, which sharply reduced its 1971 earnings estimate, off 9 to 17. David Packard Hack on Job as II-P Chairman Directors have reelected David Packard as chairman of Hewlett-Packard the electronics concern announced today in Palo Alto. William R. Hewlett continues as president and chief executive officer. Packard, co-founder of Cliris-Craft Management Slate Triumphs NEW YORK-( AP)-Chris- Sears Roebuck Co.

plans to market an integrated videotape cartridge recording-playback unit designed primarily for home use. The system includes a 25-inch color television console which houses the videotape unit and a black and white lightweight camera. The system will go on sale in Chicago in June for about $1600. Sears will also introduce the unit into other major markets in late 1972. Craft Industries, said today it had defeated an attempt by an insurgent group of stockholders to win con trol of the company.

The company said tabula of Continental Connector stock to AITS were indicated last month by a federal grand July on charges of income tax evasion and conspiracy to pocket casino profits. The three identified sellers named in the indictment are Sydney Wyman, Robert Rice and George Duckworth. Alto indicted were Howard Eugel, Leonard J. Campbell and Charles Speck. All six pleaded innocent earlier this month.

tion of proxy ballots showed the incumbent management had received 2.499.739 votes. compared with 1.474.751 Rush of Orders For Stock Guide votes received by the dissi PENINSULA STOCKS extended their gains during the first half of January, reports Clark, Dodge Co. The Peninsula index shows 10 issues higher, four lower and six unchanged. i Raychem led the winners; Ampcx headed the losers. Sutro Co.

recommends Bank America Realty Investors and U.S. Leasing Real Estate Investors for a combination of yield and capital appreciation. Coopersmith Howard thinks John Breuner Co earnings will continue to show per share profit gains this year and next. Dean Witter J. Barth Research says acquisitions have reduced Areata National's dependence upon redwood lumber.

Thomson McKinnon Auchincloss believes moves Into consumer products and housing have enhanced DI Giorgio's prospects. Anthony W. Tabell of Delafield, Harvey, Tabell finds that the market tends toward a strong second half election years. dent group. The results were an NEW YORK (DJ) -AITS, a Boston-based tour packager and owner of a Waikiki Beach hotel in Hawaii said today it purchased about 20 percent of the stock of Continental Connector New York.

Part of the terms of the purchase will mean a change in the management of the Dunes Hotel in Las Vegas, Nev. A large stockholder in AITS is Meshulam Riklis, chairman and president of Rapid American Corp. AITS bought 461,567 Continental shares as well as options to buy 41,575 more. Isidore A Becker, vice chairman of Rapid American, didn't disclose the price paid. The sellers were listed as Sidney Wyman, Charles Rich, Robert Rice, George Duckworth and others.

They were identified as officers flounced at the company's Hewlett-Packard in 1939, served as chairman from 19C4 to 1969 at which time he was appointed Deputy Secretary of Defense. He resigned that government post last month. Gould Merger Step Nearer ST. LOUIS (AP) -Directors of Century Electric Co. have approved a formal agreement to merge with Gould, of Chicago, it was announced today.

The agreement is subject annual shareholders' meet ing which had been ad journcd from a Jan. 11 ses Chris-Craft said the com pany's directors had been re Zenith Subsidiary CHICAGO fUPI) Zenith Radio Corp. announced the formation of a subsidiary, Zenith International Sales Corp. elected, defeating a slate There's been a rush of orders for the popular Examiner Stock Guide by investors who want to get the complete background on a company before buying its stock. The 257 page easy-to-read booklet, compiled by Standard Poor's is jam packed with information on stocks on the major exchange plus over the counter issues.

Earnings going back to 16, the dividend record and other pertinent information are readily available for the inquisitive investor. Fill out the coupon below and mail with $1 to the address noted. Allow three weeks for delivery. presented by the dissident group. Leaky Roof? Avoid Jndoor-Outdoor Winter living and directors of MIR Invest ment a Continental subsidiary and owner of the Call a Contractor to fix it A leak in th rnnf meiani trouble.

Dunes. Under the purchase, the management contract under So gel that re-roofing done promptly voia maoor-ouiaoor winter living. which Sidney Wyman con STATE OF CALIFORNIA SERVICE Thf D'tnimfnl ol Humjn Knowcfi lrti'jpmnt is plinnin im wml fni. ,0 m. tit (KlVj fnr wmcci in the Lot HM and the iin fiinciiauGMnml iiti Binki f'tormiy.

1972 londi thf lob Bi will utiloi on dtily bnit. Miiioiii of 0fci cvnwm. bmw ollftH Hinufh Bio Imployirmrt Santctra ot th SUt by omplnrMi witti It tt 1 tiifttt Iht ctttloi will contpulw prmtout pusiffj tt fomi oiMrttltta It Imum It tlw lob Hn Book Hjtd copy mill be imnlfi Iw contiol tnd ditpliy psrpowl It O'tm eontrKtot must Ik able to o'lwuJf Iht hlltwmi urvi' tt nn i b.n 1. Pit dlt from the lob Hint Ctnleu Rot Itttr I V) M. tor pnenunt uHMmd fQijiifdtiuil)ylOOK Key I nlry ot data lotm luitrtli IN compote proemm Cvputn oeeutiont Computei prnit ami MiNsff to preeM fob lent iU be tuppiK4 by Hit KM Cttodiiint lob Rat firt) lot hi, Bar cofit n1 ol wttoti Dite to fbe Itf oiiuTwt morAO ran ft nrn, I) lo prf me bate III' rt tstimatrd that )'') 1'iS or ntm and JI3JI) Oisai Ciin mil be narav.au for I nle tun wlbit trntimt ttmitalmni ft pmrattua tetiaiit bate hlei and meat (be tin rim- lumij, rl rttilimtlid Uitt a JbftMl nttb anl 114 One Diwn will ba nauiea lor ee San ftawnco leb Rant i be dwii4 m'a two Sexton e'tmiM that a 1HVV) num pieot.

with end 14 l)nt Dum will be uttioent tobendia wortinaitt Ibet ea 4 cont turatiMn pndei coniidfatia W'Jll topped; penetic tape d'iei, cad noder and llOOIHepunlert. Oti.tf type Mmpnent comptHle tc that Mtd it (b) arte! bewe mtj) be otad rWvtf ft toot tt equipment or proaem oditn.atn will borne bylbe eendor bOTT s-mifc1 ti at later rmtmnt ot tt Stantaidired tub Ha- till eoold 'pi the top rromrementt demret Iron wbet it luted ie J. a abna Ihairlurr, your roqett to ot. tor IK' III pleata include list ot ymii ttuipment pi It rwrnbti. type and trt 4 ot mir totii.be and ear O' terybeid ropy 4 Oaity delivery ot Inb bant boi by -10 1 trJt momma, Oeiti.B tian of prior dart lot, bank boott If mi feel ttiet rm tre qualified lo pertor fne time Mtn and wontd ta tt "tihm4 tar 'opniel Mf) tor either or twin of tbe two ateas rta wmie-l te wnMe.

not later lean laantre 3), It2, tbt teairtawtt if Pbh Itieefti letyieeoeet IN tiMil Mill iHrroeott. oweet'ta rr'n l-eM leea im tip trolled the board of directors to approval by Century Electric stockholders. The company said directors of Gould are expected to approve the merger at its next meeting. The merger agreement calls for the exchange of nine shares of Gould for each 10 shares of Century. 2-I)ay Conference A two-day regional conference of Pacific central and northwest officials of Wal-ston and the Travelers Insurance Companies will be held at the St.

Francis Hotel in San Francisco, January 23 and 24. Ana sure you can a iicensea, intured rooting contractor who mployt trained union craftsmen. He oilers a two-vear ouarantee and and the management of Mill Slock Guide P.O. Box 3100, Rincon Annex San Francisco, Calif. 9 1119 Send copies of Stock Guide at $1.00 Name City Zip mkt check payiblt to P.

Cuminar) Invest ment Co. has been terminated. At least three of the sellers protection from winter leakt. LICENSED, INSURED ROOFING CONTTWCTOR Sam SliuNky On Preceding I 'age aria eouMTiit aooFiwa woum promotion run.