The San Francisco Examiner from San Francisco, California on August 19, 1974 · 58
Get access to this page with a Free Trial

A Publisher Extra Newspaper

The San Francisco Examiner from San Francisco, California · 58

Publication:
Location:
San Francisco, California
Issue Date:
Monday, August 19, 1974
Page:
58
Start Free Trial
Cancel

BUSINESS Editor: Jack Miller Mon.,Aug. 19, 1974 irirtr jOJsxnmittrr-Page 58-. rices examiner News Services -. t, NEW YORK Prices ok anotner pounding on aie New York Mock Ex change today in an air of feloom over economic prospects and the Cyprus situa fcon. The Dow Jones average of 30 industrials was down 9.70 jo 721.84 a the close. 3 Its loss since Aug. 7 has seen more than 75 points. : 4 riefings THE EXAMINER fflCA securities doivngraded 4 Standard & Poor's said at New York it downgraded to Jingle A from double A RCA Corp.'s senior debt obligations, the new rating also applies to RCA's $100 million of 18-year Ifinking fund debentures scheduled for sale next week. IfSince 1967, RCA's profits and cash flow have achieved Jelatively little progress," said an S&P spokesman, "reflecting the sensitivity of the company's consumer electronics business to trends, in the national economy. During the Same period fixed charges have more than doubled, result-lg in a considerable narrowing in the earnings protection fforded to bond holders." 1st.. .. . ... . sv..w , . ; . ' -Late selling lowers grains C Selling in the closing minutes produced limit declines n some new crop soybean and soybean oil options on the Chicago Board of Trade. Soybean meal fell about $5 a ton. There appeared to be no particular outside reason for the yelling other than profit-taking and liquidation ahead of (expiration of contracts. Soybeans closed up to 20 cents a Ipushel lower, Chicago wheat was 5 to 20 lower, corn was uxed, and oats were about 5 lower. faouth African rand devalued South Africa devalued the rand for the second time in a toeek. The new rate is $1.45. Last Wednesday, the rate was bulled down to $1.47 from $1.50. Bankers were unconcerned about the basic health of the rand. t t 1 rt virtu Aiv hits a Idoicndraft Alcoa to quit foil market I Aluminum Co. of America announced it is pulling out of the household aluminum foil jmarket. Alcoa attributed the move to current shortages both of aluminum and of capital funds in the aluminum industry. Alcoa has produced household aluminum foil since 1931 and has somewhat less than' JO per cent of the market. The firm will continue to make foil for institutional uses. ' ' ' : phina rejects cursproposal gurate air service between tjie two countries by flying to Peking and Shanghai through-South Korean air space, ac- orcung 10 a anauian racinc Airunes uiucicu. aiiaua aas proposed a route over Korea earlier this month after Japan Ihad refused permission for Canadian Pacific to use Tokyo or refueling or to use the Japanese flight information area. SChina flatly rejected the Canadian alternate plan. filachinery outlook gloomy Manufacturers of non-electrical machinery expect a drop of 9 percent in orders during the second half of this year and a further drop of 4 per cent in the first half of 1975, McGraw-Hill economists say. The second half decline probably will reduce non-electrical machinery sales, for the whole year by 2 per cent from last year's record level. l , x- r i; t : r: Treasury bond, note delivery delay likely United Press International v . .. ii WASHINGTON Investors who bought .registered botes and bonds in last week's highly publicized govern- , itnent sale may have to wait more than two months before lithe securities are delivered, the Treasury Department said fjyesterday. f The delay stems from "the heavy demand by small' investors who flooded banks and brokerage houses with iprders for the attractive 9 per cent notes and 8 per cent Jjonds. ' ' I Most of the securities were bought in ''registered" -Jform, which means more bookkeeping for the treasury but 'Jvhich is safer for the iriveslor. It may be as late as Nov. 1 " before some subscribers receive their registered securities 'Jbut the late delivery date in no way affects the interest, wwhich starts accruing as of Aug. 15. Those who ordered securities in "coupon" form, a less Mecure method, will get their certificates quicker, the Treasury said. This is because note-holders must actually , clip a small coupon and mail it to the Treasury in order to (collect interest. Standard & Poor's 500- ! slock index dropped 1.10 to 57 prjce of "n ayer average 1 .common on the NYSE was Much of today's declines "came in the early hours in an apparent reaction to the news that U.S. Ambassador .Rodger P. Davies had been tilled as a Greek Cypriot mob stormed the U.S. embassy in Nicosia. But analysts also pointed BUSINESS STAFF After years of flying in ever higher altitudes of profit, Japan Air Lines has. hit a downdraft. Troubles have fallen like hail this year on the Japanese air flag carrier, long one of the big moneymakers among the world's major airlines. Jet fuel costs have more than doubled. Wage expenses are up. A diplomatic row with Nationalist China shut down the lucrative Tokyo Taipei route, which JALexec-' utives called their "cash box." Britain is threatening to close Hong Kong to JAL's planes. The airline lost $39.4 million in the first quarter of the Japanese fiscal year. k : ..i: rr: : i u again to a continuing underlying concern over inflation, high iterest rates, and economic prospects. Pressure growth stocks. continued on "It's the Favorite . Fifty being turned into the Unfa-vorite Fifty," one analyst said. "And the market just hasn't hit a ground in which it can find any buyers yet." A $485 million fight over oil firm Dow Jones NEW YORK - International Paper Co. re-entered the fight for control of General Crude Oil Co. with two sweetened bids it hopes will lure the oil company away from its planned merger with k a subsidiary of Dow Chemical Co. International ; Paper proposed a merger with General Crude in June but withdrew the bid last month. REGIONAL M. GERALD BITTON M. Gerald Bitton has been named general manager of the new Liberty House San Francisco flagship store, to open Sept. 28 at the corner of Stockton and O'Farrell. A native of London, England, Bitton began 'his retail career with the May De partment stores. He later became divisional merchandising manager for May's Strouss Hirschberg store in Youngstown, Ohio. In Aug. 1973, he was appointed general manager at the Liberty House City of Paris store. BanCal stock sale BanCal tri-state Corp., holding company o f the Bank of California sold an additional 50,000 shares of BanCal's common stock to ; Baron Edmond De Roths-. child at $22 a share. . The sale is the first of two installments of 50,000 shares 1- . each; - During the past year, BanCal has sold 400,000 shares Profit results niixed fo major retailers r . Three big retailers today reported mixed profit results for three months and six months through July while Mervyn's, 19-store Northern California retailing chain, reported sharply higher earnings. The largest of the four re- porting was parent of Ward. Marcor Inc., Montgomery i Net income in the July . quarter was $32.7 million, equal to $1.03 a share, compared with $21 million, or 65 cents a share a year earlier. . Sales climbed to $1.1 billion " from $968 million , in the May-July period of 1973. ; Leo Schoenhofen. Marcor chairman, said- in Chicago that a strong showing by Container Corp. of America, which the parent company also owns, offset a lower second quarter for Montgomery Ward. He attributed this decline to "substantially ' higher interest costs on short-term borrowings to finance -Ward's credit business.". .. i In the latest six months, Marcor earned $64 million, on gloomy market Among the glamour issues, Xerox, Upjohn and IBM were down several points each. Oils,' a group particularly favored by institutions in the past few years, also showed some sharp declines. Evans Products, a Big Board volume leader lost in trading that included a 91,-QOO-share block at 3. The company lowered its estima- Subsequently, General Crude agreed to merge into a Dow subsidiary in an exchange of stock that would have been tax free. On Friday, International made a second offering of $47.50 a common share of General Crude and $190.60 for each share of preferred. It had originally offered $45 a share for common and $180 for the preferred. The proposed transaction, unlike of its stock in 100,000 share installments to Baron De Rothschild or a company controlled by him at $27 a share. Levi Strauss loan Levi Strauss & Co.' said it has arranged a 71,2-year $100 million revolving bank credit with a group of banks led by Crocker National. The company said up to one-third of the loan may be drawn in currencies other than the dollar." Interest rates weren't disclosed. The other banks incUide Bank of America and Security Pacific National. Vanguard Studios sold Vanguard Studios Inc. of Chatsworth said i t and Kirsch C o.,, of Sturgess, Mich., have agreed in principle for the acquisition of Vanguard by Kirsch. Vanguard said the total purchase price before payment of expenses will be in excess of $6 per .share. No other details were given. Recrion merger An arrangement has been made for the merger of the Recrion Corp. of Las Vegas into the Argent Corp. of La Jolla, attorneys for Argent said. The California firm's lawyers said the owner of the investment company, Allen R. Glick, received approximately 64 per cent of Rec-rion's outstanding stock at a tender offer of $44 per share. The Recrion Corp. is the owner of the Stardust and or $2.02 a share, on sales of $2.2 billion vs. $41.1 million, or $1.26 a share, on sales of $1.8 billion. S.S. Kresge, recent star performer among the retailer, in six months earned $64.7 million, or 54 cents a share, on sales of $2.49 billion as compared with $55.4 million, or 46 cents a share, on sales of $2.02 billion a year earlier. In London, F. W. Wool-worth & Co., Ltd., 52.7 per cent owned by the U.S. retailing giant, recorded higher sales but lower earnings. Sales in six months through July 31 came to $494.8 million as against $478.3 million. Net income was $9.4 million vs. $15.2 million. - Mervyn's, the Hayward-based retailer of apparel, home goods, toys and similar lines, said net income in 13 weeks ended July 28, was $569,000, equal to 27 cents a share, vs. $452,000, or 22 cents a year earlier. Sales in the latest quarter were $27.4 million, vs. $17.6 million. Both ' sales and earnings were records. tion of earnings for the year. On the American Stock Exchange, a volume leader was Giant Yellowknife Mines, down more than a point, , In Europe, prices continued to slide on the London stock market, hitting their lowest point since October 1958. Dealers speculated the Fi the exchange of shares the Dow offer, is taxable. in Yesterday, International Paper sweetened its offer again to $50 for each common and $200.60 for each preferred. All offers were made to Glenmede Trust Co., trustee of the Pew Memorial Trust, which owns 63 per cent of General Crude's common. The latest International ' Fremont hotel-casinos i n Las Vegas. Glick is already principal owner of the Ha- cienda hotel-casino. ARA hikes dividend ARA Services Inc., meeting in San Francisco, voted to increase the quarterly dividend to 36V2 cents per share from 33 cents. ' "This 10th .consecutive annual increase in the cash dividend reflects ARA's con-tinued earnings improvement" Davre J. Davidson, chairman, stated. The dividend is payable Sept. 16 to shareholders of record Aug. 30. ' Might break even Evans Products Co., Portland, said a re-evaluation of its earnings prospects for this year has caused it to ' ... .r nancial Times Industrial Index would shortly drop below 200. This compares with an all-time high of over 540 only two years ago.The index closed today at 201.5, clown 8.8. " Dealers reported steady selling by small clients, with almost all sectors of the market suffering. Banks, oils and leading industrials all slumped. proposal would have a value of about $485 million. International said negotiations, which had been terminated in July, were reopened at the request of a representative of the trust company. At a Friday meeting, the' trustees agreed to commit to Dow the General Crude shares the trust holds and also approved the merger plan. forecast lower earnings than were previously forecast. It said net earnings for 1974 "might approximate a break-even level." , Air Cal record ' Air California reported for the first six months earnings increased to a record $1,-580,876 or $1.80 a share, including an 86 cents benefit from loss carryforwards and invested tax credits. This compared with $1,117,695 and 96 cents per share for the corresponding 1973 period. Revenues totaled $15,-921,933, against $12,495,920. ' R. W. Clifford, president, said the 27 per cent increase in revenue passenger miles was influenced by the energy crisis and the resultant shortage in automotive fuel. ovft0tccAj.V 2 3' 4 firms indicted in Arizona dairy antitrust case Dow Jones , ,t WASHINGTON Four large dairy products com-' panics and six of their current or former executives were indicted by a federal grand jury on charges of violating antitrust laws in sales of their products in Arizona. . The indictment issued in Phoenix names Boi'den Inc., Carnation Co., Foremost-McKesson Inc. and Shamrock Foods Co. Individuals named are James E. Graves, Borden's general manager in. Arizona; Jack de Cordova, former Borden general manager in that state; James F. Bryant, Carnation's former general manager in Arizona; Ralph C Delong, Fore-most-McKesson's district manager in Arizona; and Norman P. McClelland, Shamrock Foods president, and Paul R. Dew, Shamrock vice president. The indictment and a companion civil suit filed by the Justice Department charge the defendants with conspiring to fix and raise prices, rig bids and allocate customers. The indictment and suit charge that the conspiracy allegedly began before 1966. The Justice Department said that in 1973 the companies combined sales in Ar-izona totaled $80 million, constituting about 90 per cent, of the wholesale dairy-product sales in that state. The maximum penalty for companies under charges listed in the criminal indictment is a $50,000 fine and for individuals a $50,000 fine and a year in prison. The civil suit, which names only the companies, asks the court for an injunction to halt the alleged illegal practices and seeks an unspecified amount in damages by the government as a result of the violations. The suit also charges that the companies filed false information in connection with to -- m mm m m " - r rv i t i VJ LA 1 V Dollar gains in Em ope; gold erratic United Press International LONDON - The dollar made new gains on world money markets today, climbing to its highest levef in five months in London and Frankfurt. Gold prices moved irregularly. Dealers attributed the gain to British weaknesses rather than American strengths. Early pressure on ' the British pound pushed the dollar up to $2.3217 in London. At the London close the dollar was $2.3245 to the pound. -; The dollar closed ' i h Frankfurt at 2.6475 marks, its highest value since March 15. - G o 1 d 's price bounced around most of the day. In London it opened at $155 an ounce, dropped to $153 at the morning price fixing and back up to $155.25 at the afternoon fixing. sales to the government. A spokesman for Foremost-McKesson in San Francisco said no one at the company has seen a copy of the indictment and he therefore declined comment. r m I mi : 0

Get access to Newspapers.com

  • The largest online newspaper archive
  • 19,100+ 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