The San Francisco Examiner from San Francisco, California • 67

EXAMINER BUSINESS PAGES Monday, December 15, 1969 Page 67 Business Editor: Jack Miller BRIEFINGS l-t Insurance Building Rush for Tax Savings BY THE EXAMINER BUSINESS STAFF much space is occupied by its insurance companies) may be deducted. By beating the construction deadline, Transamerica could deduct half or possibly all of the $1 million a year. Here's how: If Transamerica registers the building in the names of Premier Insurance Co. and Transamerica Title Insurance Co. which it both owns, it can deduct property taxes to the extent those companies are paying taxes (2.35 percent) on the premiums they take in.

In the fiscal year 1967-68, these companies jointly paid the state $402,105 in premium taxes. If business and premiums remain at that level, these Transamerica-owned companies won't have to pay a penny in premium taxes because it's more than cancelled out by the property tax deduction. Even if business more than doubles and the premium tax would be as high as $1 million, the companies still wouldn't owe the state a dime ever. By Donald Canter Urtwrt Affairs Writer Millions of dollars are at stake in a statewide gold rush that comes to a halt at midnight, Dec. 31.

when the mine insurance companies have been working for decades gets closed. That mine is an old section of the State Constitution allowing insurance companies with headquarter buildings in California to deduct their property taxes from their premium taxes. Although California companies owning such buildings before Jan. 1, 1970, or having them under construction by that date, may continue that practice, anyone unable to meet that deadline is out in the cold. The reason is a constitutional amendment passed in 1966 and taking effect the first of the new year.

That amendment stipulates that after the cutoff date, insurance carriers may only deduct that portion of their property taxes applicable to the amount of space the companies themselves occupy in the structure, the same rule applying to out-of-state companies. Since many of the companies rent out a major portion of their buildings to other tenants, this would mean a terrific cutback in the tax windfall. That's the reason companies like Transamerica, Continental Insurance Co. and West Coast Life have been in such a hurry to begin construction on their planned San Francisco skyscrapers. Depending on which insurance companies Transamerica owns will get to own its 48 story pyramid, this one holding company alone has millions at stake in beating the deadline.

Here's why: Based on a $13 San Francisco tax rate, Transamerica will have to pay about $1 million property taxes annually on its $30 million pyramid. If the building is not under construction by midnight Dec. 31, only a small portion of those taxes (depending on how Only if business was so booming that premium taxes would exceed property taxes on the pyramid would the companies' owe the state something. Companies having had their headquar-" ter buildings in San Francisco for years are living on easy street. For them the tax mine will remain as profitable as ever, with no closing date in sight.

Fireman's Fund Insurance for example, which deducted $230,214 in proper-, ty taxes from its $2,533,572 in premium taxes for l'J67-68, may go on deducting those taxes no matter how much the tax rate goes up. The Insurance Bureau of the California-; State Automobile Association saved more than $73,000 in property taxes for Pacific National life Insurance Co. re-. ceived a $167,000 tax windfall the sains, way that year for its San Francisco offices, together with countless others. Last year, California insurance companies were legally allowed to forget about almost $5 million in property taxes.

Executive Profile Stimulus Lacking, Stocks Sag Slowly NEW YORK (API Th stock market lark-in? iHm. A Bid in the Building Game ulus to sustain any sort of rally, reverted to its losing torm today auer a neauny opening. The Dow Jones industrial average retreated slowly to a closing level of 784.05, off 2.64. Analysts attributed the morning gain to 1 1 1 buying of issues in an over sold market. However, inves tors apparently took to the while seven lost ground, and three were unchanged.

Prices of other Amex active issues included: LTV Aerospace 134. off Hi; "Mil-go Electronics 72. uo 33i: sidelines later in the day to await President Nixon's speech tonight on the Viet Slick 20', up l'4j Astrodata nam War, as well as to see if up Telex 1027. off the market can build a base i 31 and eeco Instrument! again. iJ up T.

t-i i Air West Sale OKd by CAB The Civil Aeronautics Board in Washington today approved, the acquisition of Air West, Inc. by Hughes Air which is to be 78 percent-owned by Hughes Tool Co. Howard Hughes will own the remainder. This is the second time the CAB has approved the purchase of Air Wpst by Hughes. Last summer, the CAB approved the purchase of Air West by Hughes Tool.

The company then said it was forming a new corporation to be known as Hughes Air and asked that the acquisition be approved for the rew company. 2 Big Stores Open This Sunday Two big retailers in San Francisco will open the doors of downtown stores on the last Sunday before Christmas. RoosAtkins stores at Fourth and Market and Post and Powell will be open Dec. 21 from noon to 5 p.m. And Joseph Magnin's main store at Stockton and O'Farrell will be open the same hours.

Both previously have opened suburban stores on Sunday. civ Consolidated Foods Chief Directors of Consolidated Foods meeting in Chicago, today elected William A. Buzick, president, to the additional position of chairman and chief executive. He succeeds William Howlett, who will continue as a director Howlett in a statement blamed a disagreement on a basic, corporate policy matter as the reason for his replacement. Howlett said the basic disagreement was with Nathan Cummings, the founder of Consolidated who is chairman of the executive committee.

FNMA Stockholders Form Group A stockholders protective committee is being formed to take "such action as it considers necessary" in the disputed ouster of Raymond H. Lapin as president of the Federal National Mortgage Association. A spokesman for Lapin in Washington, said the committee wants to elect a board of directors which "will represent the interests of stockholders." President Nixon dismissed Lapin from his post in the mixed government-private corporation Dec. 2. However, Lapin is fighting the action in court contending the President has not specified "good cause" for the fir- High Sailing Marine Industry For the fiscal" year ended Aug.

31, the marine industry posted record sales of $3.2 billion, Donald A. Milton, president of Chrysler Outboard and Chrysler Boat Corp. reports. Here to scout the San Francisco National Sports and Boat Show opening next month, Milton predicted the record sales pace for the industry will continue next year. Gold Marketing Accord Talked Gold prices weakened on market in The United States and abroad in quiet trading today.

Traders were cautious amid reports that the United States and South Africa may reach an accord on gold marketing. London gold was down 17 cents to $35.20 an ounce. Paris gold dropped 17 cents to $36.70, Frankfurt gold was 17 cents lower at $35.56, and Zurich gold was 25 cents lower at $35 even. Handy Harman dropped its New York posting 15 cents to $35.35 and American Express International Banking Corp. lowered its quotations 15 cents to $35.20 bid, $35.50 asked.

New Airline Radar Tested A radar device that would enable pilots of Lockheed's L-1011 TriStar jetliner to "see" airport runways while landing in rain and fog has been successfully demonstrated in flight tests by Texas Instruments Incorporated, a Lockheed-California Company spokesman disclosed today. The device, called an independent landing monitor (ILM), displays a realistic picture of the airport and runways on a screen in the cockpit. It is being developed by Texas Instruments, of Dallas, to meet requirements for "new generation" wide-bodied jetliners, such as the TriStar. Lockheed's new jetliner will begin entering airline service late in 1971. Until now, no system existed permitting a pilot to visually monitor performance of an.

aircraft's automatic landing system during approach and touchdown under low visibility conditions. Congressmen Ask Beef Probe Two Congressmen have asked the Justice Department to investigate whether the American National Cattlemen's Association engaged in an "illegal conspiracy" by urging a 5 percent reduction in the nation's beef supply. The Association immediately termed the suggestion baseless and said it would welcome an investigation. The request for an inquiry was made by Reps. John S.

Monagan, (D-Conn.) and John Wydler, in a letter to As-, sistant Attorney General Richard W. McLaren, who handles antitrust matters. The Congressmen suggested that the Justice Department take any other action it deemed advisable. ROBT. ROTHSCHILD JR.

Likes double 13 luimnrr fiidihriis A total of 11.1 million shares changed hands, about half a million shares below Friday's figure. Of 1.612 issues traded, 777 lost ground, 563 advanced, and 272 remained unchanged. Industrial Production Index Slips WASHINGTON (DJ) -I Industrial production last month fell to a seasonally adjusted 171.1 percent of the 1957-59 average, down 1.2: percent from October's 173.1 percent, the Federal Reserve Board said today. of manufacturers alone last month fell to an adjusted 1718 percent from October's 174 percent and a year ago's 169.1 percent. Output of durable goods makers fell to 172.7 percent of the average from 171.1 percent a month earlier and that of non-durable goods makers rose to 170.6 percent from 170.2 percent in October.

The board said a major strike in the electrical equipment industry, referring to the General Electric strike, affecting putput of consumer durable goods, i ess i and industrial material equipment and parts, accounted for about half of the November decline. The report also noted sizable cutbacks in auto assemblies with auto production down 6 percent from October. More Intprppt A new type of savings certificate, which earns 5V4 per-cent on funds held for only six months rather than the savings and loans' current standard of three to five years, now is available for savers on a limited basis from all branches of Security Savings and Loan Association, William B. Ross, president, has announced. Scars Drop Computer Firm Talks i In Chicago.

Sears, Roebuck St Co. and Cnmnntjr ITtac not specialize in hospital construction. Power plants are more challenging The most recent was Pacific Gas Electric Be Id en plant on the Feather River. An earlier, more exciting job was the power company's Pit No. 7 on the river of the same name.

This was a joint venture with Piombo Construction San Carlos. "We pushed the river from side to side by i 1 1 i and blasting, working upstream," Rothschild recalls. What about the future of heavy construction? Rothschild replies: "If the government has its, wish, the whole economy will slow down and 'construction will slow with it." For how long? "I am untrained a guessing these things." As of now R-R employs 400 persons of whom one-fourth are from minority groups. Is present-day construction safe? Rothschild says if there is an earthquake, he would just as soon be in an underground BART station as anywhere. He and his wife, Elizabeth, reside at Atherton.

Sons are Peter, 30, leasing manager for, Benicia Industries, and Robert, 26, project engineer with the firm. By Lindsay Arthur Soon after Rothschild-Raffin general con-tractors, moved into new quarters room 1313 in the 215 Market Street Building the Bay Area Rapid Transit District opened bids on the Rich-. mond maintenance yard. The R-R firm won that July day with a bid just $84 under the second best to capture a $4 million award. "That convinced me there was nothing wrong with this 1313 number," says Robert B.

Rothschild president. The firm is working on $30 million worth of BART contracts including Mission Street stations at Sixteenth and Twenty-fourth, the Lake Merritt station in Oakland, maintenance yards at Richmond and Concord and BART's Oakland headquarters. Asked about problems, Rothschild thinks first of water. "The problems are the unknowns underground." he said. "On Mission Street we put our wells down early and lowered the water level before we started to excavate." These two stations are scheduled for completion by next June.

Rothschild, 62, an born in Berkeley, says he had no trouble choosing a career as he "liked to tinker." He was graduated in Eight issues hit new hichs 1 Co. said they have stopped talking about Sears ing an interest in the other firm. No reason was Other mercer and ioi nmj, wniie mi mocks retreated to new yearly bottoms. Rubber issues, aircraft stocks, electronics, metals, chemicals, rails, airlines, and drugs finished mostly off. Oils were mostly up, and steels, motors, farm implements, utilities, tobaccos, and building materials were mixed.

Nine of the 20 most active issues gained, while 11 lost. tion developments: ri i mi iiedime rooas, jliuv cago, and Holiday Homesc Lynn, agreed. t5 1929 from the University of California college of civil engineering; in time became chief engineer and chief estimator for a construction firm. In 1944, he participated in forming a partner-sh i and this has evolved into the present co mpany with Rothschild and Bennett L. Raffin as the principals.

The firm is building a $10 million addition to Alameda County's Highland Hospital, a $4 million Community Hospital in Carmel and a San Francisco Convalescent Hospital costing $2 million at Pine, Hyde and Larkin streets. The hospital work likely is a barometer of the attention being given to health as Rothschild points out the firm does Monogram Industries, Inc. Los Angeles, will acquire the operations of Ring Los Angcies developer or garden apartment complexes. THe' acquisition represents Monti gram's entry into real development. i with Occidental Petroleum topping the list at 23n, up on 151,200 shares.

Other active issues included: International Telephone 573i, up 24; Polaroid 120V off Chrysler 34, off Signal Co. 21, off and Atlantic Richfield 81, off K. Amex Closes Lower The American Stock Exchange finished lower with the price index losing 5 cents to $26.29 on 4.25 million shares, about 250.000 shares fewer than Friday. Of 1095 issues traded. 519 declined, 345 advanced and 231 were unchanged.

Goldfield helped by a block of 98,900 shares, topped the list of the 20 most Miles Laboratories, lncvt" Elkhart, is buying- th-assets of Berkely Medical-Instruments, a division of Nuclear-Chicago for cash. USLife New York, Is acquiring Colonial Accept ante Chicago, in-sm exchange of stock, TFI Industries, Chicago (formerly Tastee Freer Industries) is acquiring Baton Products, Covina, Sales of Color TV Sets Trail '68 by 20 Percent with the exception of tape players, will be uniformly men confidently predicted color sales by distributors of anywhere from 6 million to million sets, against last I year's 5 8 million. Now, the down in 1969. It is expected December color TV sales will be 15 per fur cash and notes. Willcox ic Gibbs, New York, will acquire Sunbrand Corp Atlanta, for an undisclosed amount of Willcox Gibbs stock.

active issues on the Amex at 4Ti up l'a, on 145.500 shares. nies which have concentrated increasingly on color television as imports have gained in the lower-priced radio, tape, phonograph and black and white TV markets. Foreign-label items already account for about 80 per cent of all tape players, 60 per cent of all radios, 25 per cent of black and white TV sets and 20 per cent of phonographs sold in the U.S.. And the imports are showing healthy gains in all home-entertainment categories while American-label items, NEW YORK (DJ) -Color TV set sales in the fourth quarter are running 20 percent below a year ago after a 5.4 percent rise in distributors' volume in the nine months ended Sept. 30.

Besides the sharp drop in unit sales, which is continuing in December, buyers are increasingly choosing lower price models, dealers said today. The sudden softening of the color TV set market is a bitter pill for American compa Ten issues on the list gained. figure appears likely to fall between 5.7 million and 5.8 million. Most industry spokesmen said they expected anti-Inflation measures and the sluggishness in 1 sales to linger at least through the first half of 1970. cent below last December's.

In fact, industry sources said, the number of color sets sold in the fourth quarter, normally the distributors strongest period, won't even equal third quarter sales. Earlier this year, spokes- Inj ITT New Tactic-Will Bid for Hartford Stock Rammco Investment Corporation OBJECTIVE: possible growth for your investment. Civ wlngt words with the ntr, push button nor ttt EMBASSY announces the establishment of Regional Headquarters Offices and the appointment of Regional Investment Directors. 0 0 o( 1 1 io- ed by way of a voluntary exchange offer rather than by the merger route." Geneen and Harry V. Williams, chairman and president of Hartford, said Cotter's decision would be appealed in Connecticut courts.

Cotter rejected the proposal on the grounds it was "not in the best interest" of Hartford stockholders. Williams said he would recommend to the Hartford bqard of directors that it ''support the proposed program whereby ITT would offer its series 'N' prefered stock in exchange for Hartford stock. with Dkutw or Transcribing AcctitoriM NEW YORK (AP) International Telephone Telegraph Co. says it will make a tender offer for shares of Hartford Fire Insurance Co. A proposed merger between ITT and Hartford was blocked Saturday by William R.

Cotter, Connecticut state insurance commissioner. The merger would have been the biggest Incorporate history. ITT's assets total about $4 billion and Hartford's about $1.9 billion. JTT said the tender offer would be on a basis identical to that of the merger proposal- Harold S. Geneen, chairman and president of ITT, said he felt Cotter's expressed concerns would be satisfied if ITT bad proceed- Discover howtfci electronic marvf I can free you from paperwork drudgery.

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31 Montgomery Sree Stn frawciwo, Calif. 94104 without omeiTiod, piusi una tnt moshctui itotuu t8 I run JCCV F. A. THOMAS CO. So FfWUCiK Oakland A mm I Such an exchange offer would be subject to approval 536 20tfc SMt TE 24130 3434092 -Tt 2239 S.

CeHM Los Angeles 90067 Phona (213) 2774003. by the insurance commis sioner..