The San Francisco Examiner from San Francisco, California on October 16, 1969 · 60
Get access to this page with a Free Trial

A Publisher Extra Newspaper

The San Francisco Examiner from San Francisco, California · 60

San Francisco, California
Issue Date:
Thursday, October 16, 1969
Start Free Trial

i .1 BUSINESS PAGES Thursday, October 16, 1969 Page 60 ktttekk Business editor: Jack Miller 'V. nit Hits Parvin-Dohrmann H.H BY THE EXAMINER BUSINESS STAFF EXAMINER BRIEFINGS SEC llihemia Bank Voting Trust Ilibernia Bank has applied tor a new voting trust that would include about one third of the bank's outstanding shares. This covers the stock largely held by the Tobin family interests. The new trust would run for 10 years, according to the application filed with the Department of Corporations. Ilibernia's former 21 year old voting trust, which expired in August, covered 87.4 percent of the outstanding stock. Voting trusts frequently are used to insure continuity of management and to ward off possibility of a takeover. Ueubleln Raises Dividend Heublein. Inc., parent company of United Vintners, lnc raised its annual dividend to 80 cents from 75 cents. First quarterly 20 cent dividend is payable Jan. 2, to stockholders of record Dec. 15. Other dividend actions; J Revuolds declared 60 cents quarterly, payable Dec. 5 to record Nov. 10. Previously paid 55 cents quarterly Continental Corp. raised its quarterly to 50 cents trom 4; cents, payable Dec. 15 to record Nov. 21 . . . Alabama (.as went to 27Mb cents quarterly from 25 cents, payable Dec. 1 to record Nov. 17. Trucking. Rate Boost Talked The president of the American Trucking Association warned in San Francisco freight rates might have to be raised if the trucking industry is not "permitted to make improvements in our industry economics - such as increasing the size of truck trailers. Speaking to the Al A s convention. Mark Robeson cited increased small shipment traffic, inflation, and the threat of further increases m motor carrier taxes as growing problems for the mdustiy. Robeson said "further increases in motor carrier f taxes would inevitably be reflected upon freight charges. Rail Volume Tops llM Week Railroad freight tonnage last week was about 16 billion ton miles, up 13.2 percent from a year ago the Association of American Railroads estimated in Wshington Carloadings on which ton mileage estimates are based totaled 594.505. compared with 599.957 in the previous week and 531.104 in the like week of 1968. Carloadings from the year to date totaled 22,234.382. compared with 22.276,392 a year ago. Davis Shaggs to Incorporate Davis. Skaggs & Co., a partnership, will incorporate effective Nov. 1. upon approval of the New ork Stock Exchange, George W. Davis announced today 1 he incorporation is in line with the trend set by most of the larger investment firms in the U.S. The firm name would become Davis, Skaggs & Co., Inc. Investors Bearish Survey Shows Investors do not expect the stock market to stage a major recovery until there is real progress toward peace in Vietnam, according to a brokerage firm's opinion survey. And they do not expect a recession in 1970, according to the poll by Paine, Webber. Jackson & Curtis. The survey also found that investors were bearish on business and stock prices for the rest of this year. "Our results show investors have retained their confidence in the basic strength of the economy despite a pessimistic short-term outlook," says Eugene F. Price, head of financial marketing for the firm. More in Manpower Program The Labor Department says 654.386 persons as of Aug. 31 were being trained or assisted under 10 major manpower programs. This was 142,000 more persons than took part one year earlier in employment, training and work experience programs. Secretary George P. Schullz said. Both totals included the Job Corps, transferred July 1 to the Labor Department from the Office of Economic Opportunity. The largest increase was in the concentration employment program, set up two years ago to get jobs for the hard core jobless in high unemployment areas. The largest of the 10 programs is the Neighborhood Youth Corps, which was helping 371,300 persons Aug. 31. Goal of $69 Million in Grants The Commerce Department has set a goal of $69 million in grants. $87 million in direct loans and $145 million in government guarantees of private loans in the Nixon Administration's black capitalism program. The department's office of minority business enter- j prises announced the goal of $301 million Tuesday alter ! making an inventory of 27 federal programs. Nixon said . during the 1968 campaign that to the extent black capitalism was successful, -'ghettos will gradually disappear." Crocher-Cithens Acquisition Olid The Comptroller of the currency announced approval of the application of Crocker-Citizens National Bank San Francisco to acquire Coast National Bank in Fort Bragg. ; Industrial Production Dips, Bui GNP Mounts Government economists rate of S759.8 million in Sep-could take some comfort to-jtember, a rise of $2.3 billion day of infla;'a7ales tion are starting to cool j drop,d about 4 percent for a they consider a decline in in- $5 7 billion total. The overall dustrial production, the ' dip was the same for durable small rise in personal income (goods while non-durables and a decline in retail sales. scored a 5 percent advance But this hope may be over a year ago. dimmed somewhat by a big But government eco no-leap in the nation's gross na-j mists' spirits may droop with tzonal product. the strong bounce in the Industrial production, the GNP. It spurted $17.5 billion Federal Reserv e Board said j in July, August and Septem-today t.a Washington, jber. the Commerce Depart-dropped in September for the ! ment said, the fig u r e second consecutive month, j brought the total market val-The index fell a 173 8 per-jue of goods and sen ices to cent of the 1957-59 average an annual rate of S942.3 bil-from 174.3 in the previous lion tor the third quarter, month. Little could be read in Additional signs the infla-. automobile production re-tion battle is being won was, ports. U.S. manufacturers in the Commerce Depart-: plan to build 188.880 cars this nient's report that personal I week, a gain of les than 1 income last month scored the ; percent over last week and . smallest gain in 17 months. 7.3 percent under the like j The figure was an annual j week oflast year. WASHINGTON (API -The Securities and Exchange Commission today asked a federal court to enjoin Parvin-Dohrmann Co., its chief executive officer, and 12 other individuals from further alleged violation of federal antifraud laws. In a complaint filed with the federal district court in New York City, the SEC said Delbert W. Coleman, the company's chief execctive 0 ficer. filed "false and mis leading reports with the commission and the American Stock Exchanct" in his suc r Smile Prelty, Please George Christopher, former San Francisco Mayor, operates the camera which took the first pictures today for Commonwealth National Bank's new "picture perfect" Master Charge Cards. The bank has instituted a quick method of taking a color photograph cf card holders to insure picture perfect identification. Along with the person's signature, the picture is permanently bonded to the credit card. Christopher is founding chairman of the Commonwealth National Bank. Housing Starts Gain-Called 1-Month Wonder WASHINGTON-(UPI) -The rate of housing starts apparently registered an increase in September, the Commerce Department said today. However, an economist said the upsurge was not significant and was due entirely 10 the Federal Housing Mortgage Association pumping greater amounts of money into the housing market. He forecast a downturn in October. The C 0 m m e r c e Department said preliminary estimates showed privately owned housing starts were at a seasonally adjusted annual rate of 1.518 million units an increase of 135,000 over the August rate. Preliminary estimates a Can't Overlook Long Shots Just because credit is tight, banks mustn't overlook the "long shot" loans for futile growth. A. W. Clausen told a regional meeting of the California Bankers Association last night. ' uth the shortage of credit, many of us find the tenp-tation is to go win the longtime established customers and apply our mos stringet ratining to he newcomers." the Bank of America vice chairman and expected successor to President Rudolph A. Peterson noted. "But just like in a horse race, it is often the long shots I that pay off most handsome- j ly. Picking those long shots j the ones with sound! management, a marketable j product ami real growth potentialwill become inereas-j ingly vital to profit-oriented I bankers." larger Returns j He added that "it is often in J the case of these young com-1 panies where bankers will want to seek a piece of the aciion by some method which brings the equivalent of a larger return on the loan." In urging bankers to help fledgling firms. Clausen commented that "all too often a young company will overcome all the initial tech cessful attempt to take over the company, then tried to manipulate Parvin-Dohrmann stock. Also named in the complaint were Albert B. Parvin, who headed the business until last January, and actrtss Jill St. John. The SEC contends also that the Valley Bank of Nevada, in Las Vegas, violated credit provisions of its regulations concerning a $3 million loan to Harold Butler, a restaurant owner, in connection with his plans to buy shares of Parvin-Dohrmann. . . month ago of the annual rate for August were $1,336 million units. But in today's report, the department raised the August estimate to 1.383 million. The rate of starts had declined each month since January until the slight upturn in August and the larger surge in September. But Michael Sumichrast, chief economist for the National Association of Home-builders, said he would not place "too much significance" on the increases. He said September was an "abnormal" month and noted that the 129,200 actual housing starts in September, although higher than the 126.200 in August, was below the 130,900 in September, last vear. nical and financial problems inherent to starting a business, only to fall flat on its face suddenly." Usually, the company "was not getting all the advice and counsel it needed from its banker." Younger Men He also cited several instances where younger men in their forties took oyer businesses and broadened their success. "When such men as these begin moving to the top." he warned, "Their .bankers had better move SPECIAL: XEROX COPIES 3f "on Multiple of 10 or more copies odd original (8"xia"antU'a"11) 4c up to 10 MINIMUM 20C POURS U0JtM.-5.DBP.ff. PENROES COPY SERVICE 681 MARKET AT THIRD (Munodnock Building) RM. 217 SAN FRANCISCO Telephone D0alas2-73S3 n II K, , . , Hi j : M 111 11 The SEC said: Coleman concealed the true identity of participants in his takeover group, and the circumstances surrounding the fact that some were able to buy Parvin-Dohrmann shares at $35 each "at a time when the market price for such shares was substantially higher." After acquiring control, Coleman and "certain other defendants" tried to manipulate the stock's price by purchasing substantial amounts, thereby inducing others to buy and restricting the float Stocks Move, Then Turn NEW YORK - (AP) -The stock market responded to a surprising North Vietnam peace proposal with a spectacular advance today, then slipped back as the situation became uncertain. The market was moving in a narrow range at midday when Ambassador Henry Cabot Lodge announced that North Vietnam had proposed direct and private talks between the United States and the Viet Cong. Investors, whose rising hopes of substantial developments in the Paris peace talks sparked a sharp rally Monday and Tuesday, reacted with a surge of buying. The Dow Jones average of 30 industrials, which had been up only 1.65 al noon. Taper Slates $48 Million Stock Sale S. Mark Taper, president of First Charter Financial Corp. is going to make another pitch at selling one million shares of the stock he and family trusts own in the savings and loan holding company. At today's price of about $48 a share, that would amount to a cool $43 million. Taper, founder of the firm which owns American Savings & Loan, withdrew a secondary offering for the same number of shares last May when the price of S&L stocks went into the doldrums. The one million share offering amounts to about 10 percent of the holding company's outstanding stock. Taper and his family still would own about 38 percent of the company. with them and, if possible, stay a couple of jumps ahead of them." The banking expert suggested it won't do much good for bankers to wait until times get less risky to take chances. "While we hope this (current) inflationary trend can be dampened." tie said, "we are still going to be faced with a financial environment filled with crosscurrents of short liquidity, high interest rates and heavy demand." W-?rirs ; ing supply in the market; touting the shares to large investors and making available to them "certain material non-public information" to help investors make decisions; arranged for purchases of large blocks of the. stocks off the exchange market to keep them from being sold in the open market; and distributed misleading press releases. Coleman,. William C. Scott, president of Parvin-Dohrmann; Edward Torres until recently manager of the company's casino and hotel Soar on zoomed to a gain of 13.06 at 2 p.m. But as the session approached the close, news that Lodge had rejected the offer dampened investors' enthusiasm. The momentum waned, and the industrials closed with a shrunken at 838.77. gain of 8.71 The advance covered a ; broad front, with 958 individ-; ual issues rising and 423 fall- i ing among 1607 traded. Vol- j ume was 19.5 million shares against 19.95 million Tuesday, which was the sixth largest in history. Lum's which began trading on the New York exchange yesterday, led the most active list, off Vi to 23 on 296.800 shares; Of the 20 most active issues, 12 advanced, five de- Top Nixon Adviser Sees Interest D WASHINGTON - (DJ) Two of President Nixon's top economic advisers said today the Administration will "persevere" in its present policies of economic restraint, Following a meeting with the President, White House Counselor Arthur Burns told reporters: "We will very definitely persevere in the present policy of restraint. We will not budge from it." Chairman Paul McCracken of the Council of Economic Advisers concurred. Time to Make Ads Servant, Not Master NEW YORK - (UPI) -Virginia II. Knauer, President Nixon's special consum-! er adviser, said today the time had come to make advertising "the servant and not the master of mankind." In a luncheon address to the New York Advertising Club, Mrs. Knauer said too much advertising is dishonest distorted and deceptive and cited recent actions by Financial Tables, Reports Begin on Preceding Page BASIC INCOME TAX COURSE Free Class Your first class will be free so that you can compare. Highest per consultant income predicted for 1970 tax season. Taught by Professional Tax Instructors in a professional school with over 180,000 graduates. Most comprehensive tax course in the industry. Corf plete the course before Christmas.- v Placement assistance (Free). . Compare If you have done income tax work before compare and see how you can earn far more with a Computerized tax service. operations in Las Vegas; Sidney R. Korshak, a lawyer; Marshall Korshak, a lawyer; Miss St. John; Gerald llerz-feld, Saul ilerzfeld and Nathan Her zf eld, New York businessmen; their company, Stephen Leedom Carpets Co., New York; Butler; and Denny's Restaurants, Inc., engaged in practices which unfairly favored certain defendants over public shareholders of the company. Coleman. Sidney Korshak. and Nathan Voloshen of New York filed false and misleading reports with the Peace dined, and three were un changed. Among the sues, Dennis most active )s-Manufacturing to 30. Chrys advanced 21s ler rose 1 to 4158, Occiden tal Petroleum declined 1 to 28;ii, Kraftco lost 138 at 432. and Xerox added 2''4 at 107:,s. Prices advanced on the American Stock Exchange, with the exchanges index rising 14 cents to $27.56. Of 1086 issues traded, 579 advanced and 329 declined. Volume expanded to 6.88 million shares from 4.92 million shares yesterday. ' Closing prices included Redman Industries, off 3!s to 46?8; Alloys unlimited, up 2 to 245; Fleetwood Enterprises, off 5ls to 671, i ; and Telex, up 4U to 734. rop He and Burns said Nixon told Congressional leaders at the meeting that he would veto a tax reform bill that gave away too much Federal revenue. Burns warned that if the recent big increases in construction wages spread to factory labor, the country will be in "very serious trouble." Burns predicted interest rates would "move down soon" even though he expects the Federal Reserve Board to maintain tight money for the present. the Federal Trade Commission in finding advertisers guilty of irregularities. "I. for one, am not satisfied with the direction in which we are moving," she said. "I think it's time to shift gears, to make advertising the servant and not the master of mankind." Mrs. Knauer said advertis: ing battles should be "fought over the merits of a product." that advertisers should "compete to give the consumer adequate and clear in-formation." and should "demonstrate the quality of the product." I ! Wary Address-I I Ofy Course State of SEC and the American Stock; Exchange; distributed false press releases, specifically one issued last May 8 in connection with the end ol the SEC's trading suspension on Parvin-Dohrmann stocki and a 1 1 e m p t e d to conceal material facts about the company, its conditions and operations. In addition, the three men tried to induce the SEC to end the trading suspension; Voloshen was engaged and paid $50,000 by Parvin Dohrmann to intercede wiifi the commission. The SEC also alleged that Coleman filed a false state ment with the commission regarding his acquisition ol contro. Parvin-Dohrmann operates a hotel supply business ant owns the Stardust, Fremont and Aladdin hotels and casir nos in Las Vegas. It was taken over, last fall by Coleman when Los Angeles businessman Albert Par vin sold his stock in the firm. Until last spring, the Albert Parvin Foundation was headed by Supreme Court Justice uilliam 0. Douglas. Douglas resigned from the $12,000 a year post as founda- tion president after his posi ! tion drew criticism in Con- j gress. 1 Takeovers Via Paper Questioned-;.:: WASHINGTON - ( AP) An insurance company with assets of about $700 million was taken over by another firm with an outlay of less than $4.5 million in cash. Congress was told today. Saul Steinberg, chairman of Leasco Data Processing Equipment Corp., related to a House judiciary subcommittee how his firm acquired control of Reliance Insurance Co. of Philadelphia in 1968. He said Leasco paid $4, 392.000 for about 3 percent of the shares of Reliance, and stockholders of Reliance were given convertible pre-i ferred stock plus warrants of i Leasco. for nearly 97 percent) of Reliance stock. The subcommittee, headed by Rep. Emanuel Cellers D-N.Y.),is investigating fte growth of conglomerates. At one point. Celler commented that if the public were foolish enough to gej into certain transactions, they might end up with "Chinese money or wall paper." Reliance stockholders are better, off today than before, Steinberg said. -;; SP Certificate i Sale Proposed Southern Pacific Co. said today it will issue and sell $9.9 million equipment trust certificates. The c 0 ai p a n y said it will invite competitive bids returnable Nov. 12. ;", The certificatts represent about 80 percent of the cost of two diesel locomotives and 672 freight cars, the railroad said. Spunish Exports v MADRID - (UPI) - The Spanish economy made great strides during the past year, according to recent statistics. Imports rose by only U percent over the previous fis cal year, while exports increased 14.8 percent. MAIL TODAY OR CALL: STATE & FEDERAL INCOME TAX CONSULTANTS, INC. Dept. CE2 1390 Market St. Fox Plaza Rra. 1107 San Francisco, Calif. Phone (415) 836-2826 ; Please send descriptive folder - Please send reestiation form and diss schedule j I understand I am gnder no obligatioa j JBt. -Phone. offered subject to apwova! by tbe California, Department of Educate I. i.

What members have found on this page

Get access to

  • The largest online newspaper archive
  • 15,600+ newspapers from the 1700s–2000s
  • Millions of additional pages added every month

Publisher Extra Newspapers

  • Exclusive licensed content from premium publishers like the The San Francisco Examiner
  • Archives through last month
  • Continually updated

Try it free