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The San Francisco Examiner from San Francisco, California • 39

Location:
San Francisco, California
Issue Date:
Page:
39
Extracted Article Text (OCR)

-A A r.4'6 VUll zraiuiviu VAUiuiucr uec. 10, ioj ciiun May field Mall in its last days Jflr 1 Tho most outragoouo gifto OUTRAGEOUSLY priced gifts are always part of the Christmas scene, but the plethora of them this year tells us the nation's retailer is betting that our financial complexion is a lot rosier than we think. And the booming Yule business bears this out. JtA im Earlier, many forecasters were talking about a 5 percent to 7 percent holiday sales gain. The numbers are now being revised upward, and some economists say we'll now spend a record $128 billion svitaa ttiat maAtAtd-0 airs aiiap 1 0 tAMAnt 4T vAm 1 XL 9 the "82 peak of $113.2 billion.

Clearly the "if you've got it, flaunt if theme is much more prevalent in Christmas eift-eivine 83. i "nl "ItH be the most ostentatious Christmas yet," -I Tl TX-t KJ 1 I1 Bays my uiu iriena nay uevuc, mc ov-ycar-uiu investment strategist of the brokerage firm of Legg Mason Wood Walker. DeVoe's referring to the abundance of super- Crocker "4 to report loss, cuts dividend By David Diets Examiner business writer The parent of Crocker Bank, the nations 12th largest rocked financial circles today with the announcement that "lingering" loan problems would lead to unprecedented losses for the fourth quarter and year and a 50 percent reduction in its dividend next year. Crocker National Corp- said it expected to report a loss of $57 million for the quarter that would lead to overall 1963 losses of $10 million. Officials said the losses would be the first in Crocker's modern history.

Crocker's annual dividend, now $2.40 a year, will fall to $120, beginning with the April payout Before making the announcement, Crocker asked that New York Stock Exchange officials halt trading in its shares. Trading later resumed, and the stock closed at Midown 5 points rom yesterday's close. Crocker said $107 million will be charged against fourth-quarter profits because of loan woes principally in real estate and agriculture. Of the writedown, $96 million will be used to increase reserves against possible loan losses and $11 million for charges as a result of borrower defaults on real estate. Crocker said it will draw down reserves by $30 million for the quarter, leaving a year-end balance of $243 million, or 15 percent of loans outstanding.

On Sept 30, the reserve was $154 million, or Sfl percent of outstanding loans. "Despite today's actions, Crocker's fi'I nancial position continues. to be strong, said John Place, chairman of Crocker NaC tional. Last year, Crocker earned (711 million, or $359 per share. In the fourth quarter of 1962, profits were $17.8 million, or 89 cents a share.

Through the first nine months of 1983, the company reported profits of $4C million, or $221 a share. Place asserted that Crocker was not financially strapped and that it would keep its ratio of capital (shareholder equity, reserves, etcJ to assets "well above" the 5 percent minimum established this year byfederal regulators for multinational bank holding companies. See Page C4, col. 4 expensive nouaay girts gearea 10 me "naves. Ana i 4 By John Flinn Examiner staff writer MOUNTAIN VIEW At a time when frenzied Christmas shoppers are pumping life Into shopping centers everywhere, Mayf leld Mall looks a ghost town in the making.

On the shelves and in the display counters, merchandise is thinning out There are no lines at the cash registers. Santa sits alone, arms folded, waiting for children to visit "Yep, it's pretty dead around here," said Santa, without a hint of a twinkle in his eyes. These are the last few days." May-field Mall, which proudly calls itself the nation's first enclosed, carpeted shopping mall, will close its doors sometime in earry January. After nearly 18 years in business, It is a victim of competition and it own obsolescence, according to its owners. The mall will reopen soon after as an office, sales, service and product demonstration center for Hewlett-Packard, the giant electronics firm headquartered nearby in Palo Alto.

Hewlett-Packard announced Tuesday that it had reached agreement with May-field's owners Hare, Brewer It Kelley of Palo Alto to lease the 27-acre mall with an option to purchase it About 500 Hewlett-Packard employees, mostly in the sales and service departments, will be moved into the mall, according to company spokesman Roy Verify. The firm may someday use the facility for product assembly and testing, he said. For the time being, though, Mayf ield Mall is shopping center living out its last few weeks. Yesterday afternoon, with only lOtt shopping days remaining until Christmas, the mall had none of the typical holiday hordes. The ground-level parking lot was less than half full and upper-level lots were virtually empty.

Salesclerks stood Idle, scanning the mall for potential customers. "Forced to Quit the Mall! Everything Goes! Sale: 3060 off said the sign at the Keepsake Diamond Center. "Going Out of Business Sale," advertised the House of Blue Jeans. "40 Off Everything in Store!" announced Woolworth's. "We'll be through in about 10 days EamiArJoh Star SHOPPER BROWSES THROUGH QONQ OUT OF BUSINESS' SALE RACKS MaytWd Man Is boing takon ovor by Htwlott-Packard for a aalas cantar from now," said Ed Devereaux, acting manager at Woolworth's.

Like other store, Woolworth's is not replacing merchandise as it is sold. As a result the store has a barren look, particularly for the Christmas season. Paula Cut Mayfield's marketing director, said things arent as bleak as they seem. "We've always been a weekend mall," she said. "On Friday this place will start filling up There are some fantastic bargains here because a lot of stores are closing out." But privately, merchants say business has been incredibly slow for a holiday season.

Some suggested people may be shopping elsewhere because of news of Mayfield's imminent closure. There were no such problems in 1966 when Mayfiekt Mall sprang up along San Antonio Road in what was then a largely rural Mountain View. As the first enclosed mall, it drew customers from throughout northern Santa Clara and southern San Mateo counties and helped spawn a shopping culture unique to suburbia. It was a collection of sookalike franchise stores and an after-school mecca for teen-agers. Mayfield's success helped deliver the -See Page according to his calculations, there are about 5 percent to 10 percent more of them this year than a year ago.

For the past several years, DeVoe, in a pitch to get a better understanding of how the retailing fraternity sizes up the financial mood of the consumer, has scoured the holiday catalogs for the affluent as well as personally visited a number of stores that cater to the wealthy. AND HE TELLS me the gaudy side of Christmas economics is much more conspicuous this year. How well many of these lavishly priced items may do is open to question but DeVoe figures sales are likely to climb this year, given a peppier economy, rising real disposable income and the big stock market gain. Ego also has a lot to do with super-expensive gift purchases, DeVoe believes. For growing numbers of people, he says, it's as important to show that they made it as it is to know they made it.

And giving an outrageously expensive present is saying "I've arrived." What's the most outrageous present this year? DeVoe's choice is a month's cruise for the sea lover and up to 69 of his closest chums. The ship is the legendary Sea Cloud, the largest passenger-carrying tall ship in the world. You have a crew of 60, your choice of the Mediterranean or the Caribbean, and you sail under your very own flag. The price: A mere $750,000. If that's a bit steep, but you're still intent on that "something different, something better" holiday gift, DeVoe points to such possibilities as: A one-of-a-kind ostrich attache case $4,500.

A bottle of 25-year-old Glenfiddich scotch, the world's most expensive $2,100. A gold toothpick $125. An Aston Martin Lagonda auto $150,000. Let's not forget that "something special" for the small fry. If your daughter yearns for one of those Cabbage Patch dolls, you can have one made to your very own specifications.

The price: just $1,000. A CURIOUS CODE OF ETHICS? An abuse of inside information? You be the judge. Just two days before he gave a glowing Interview to the Wall Street Journal on his company's prospects, Richard Hart, president of Seligman It Latz, tho natlnn'a larsacl hnantv calnn niwntnr and rot ail. as interest rates climb Gulf acknowledges Market interest in Superior Today's stocks "Kaufman's statements had a negative Impact on the market," said John PisteU of Stires It Co. "Also, the fact that short-term rates moved up was disturbing" On the trading floor, American Express, a big loser earlier this week after its Fireman's Fund unit said it would have a fourth-quarter loss, was the most active NYSE-listed issue, up UtoSOU.

USF6G lost Hi to 56. Some analysts believe what happened to Fire-nun's Fund which boosted its reserves will happen to other insurance companies. American Telephone Telegraph when-issued was the second most active issue, unchanged at 18V4. "old" stock followed, off Vi to 63H. IBM.

which lost a point yesterday, shed 1 to Some expert have predicted the stock will fall more despite projections of higher NEW YORK (UPD The stock market skidded for the third consecutive session today when short-term interest rates rose and the administration rejected tax measures to cut the federal budget deficit Retail and high-technology issues were among the hard hit issues in the profit taking that occurred as Investors adjusted their portfolios. The Dow Jones industrial average, which skidded 924 yesterday, lost 9.86 to 1236.79, its lowest level since mid-November. The Dow has fallen 50.41 points since hitting a record high of 126720 on Nov. 29. An afternoon rally attempt fizzled after presidential adviser Edward Meese said the administration rejected any plans for taxes in 1984 or 1965 to cut the budget deficit that analysts contend Is keeping Interest rates high.

"The Meese statement hurt" said Alan Acker man of Hertzfeld Stern. 1 think there is real concern the VS. PITTSBURGH (UPP Gulf Oil Corp Chairman James Lee says the No. 5 oil company may be interested in acquiring Superior Oil Co. of Houston, but has not yet decided whether it can afford to make an offer.

Pittsburgh-based Gulf has been 'Too busy" fighting off dissident investor T. Boone Pickens to look into other Issues, Lee told a group of Wall Street analysts yesterday; Gulf officials also said they needed to know more about Superior before making a decision. Superior has not put itself up for sale, but Howard Keck, the son of Superior's founder and the company's; largest stockholder, has indicated interest in finding buyer tor his 18.7 percent stake in the company. Gulf also may want to buy some of Superior's petro-; leum reserves, but Lee said "we have not really deter- mined whether Superior's reserves are something we caa -afford to bid on Finding new reserves will be Gulfs "No. 1 priority" as faces tough market conditions and challenges from Pick1 ens, leader of a dissident investment group holding percent of Gulf 's stock, Lee said.

Pk kens, chairman of Mesa Petroleum Texas, wants to spin off Gulf's reserves Into a royalty trust. er of cosmetics and jewelry In department stores, purchased 2,000 shares of StL's stock at 17V. The shares the only ones he owned ran up to a new "83 high of 18 in reaction to that bullish IntoruliMu itirtilh inlntwl a fnrwsc rtt a ficral is getting extended militarily at a time when the nation is bogged down with huge budget deficits." There is a lot of nervousness about the direction of interest rates," said Richard Schmidt of Advest Hartford, Conn. Federal funds rates climbed to 10 percent, banks hiked their broker loan rates and bond prices faltered. Henry Kaufman, Salomon Brothers economist, yesterday predicted fed funds would climb to 11 percent or more late In 1984.

He also predicted the Federal Reserve would tighten credit to slow the economy. The government reported Industrial production rose OA percent in November, the time as in October. fourth quarter profit of $300,000, vs. a year-earlier $1.8 million net loss). rkn tkn rt that a IImIa m'Ar tttrAA U'aftlrt lator a deal was announced for SiL's acquisition at $23 a thai-a hv Pitv Ktnroc u.hirh nunwi a lilllp twcr 12 Business report Compiled from staff and Examiner nawt aervicet reports percent of S4L's stock.

And in reaction, the shares rose to another new high of x. Accordingly, Hart is sporting a paper-profit of close to $9,000. That may not seem like a big deal, but clearly the man's ethics are open to question. Hart, who earns about $275,000 a year, refused to take phone calls to discuss the ethics of his act. But the company's counsel.

Amy Tenney, was quick to give her boss a clean bill of health saying It was known earnings were Improving and that there was a possibility City Stores might make a bid to acquire the company. Maybe so, but the fact the shares ran up both limes to new highs on the basis of those revelations sueffesti strongly that Hart Possessed material Inside Information. Further, would the sellers of the S4L shares which Hart bought have unloaded their stock had they known of the impending bullish WSJ story and the prospects of an imminent acquisition? We all know the answer to that one. Good nowobsd nowo 1. John Couch, a group vice president of Mabon.

will take over as chief ojntatuig officer of Mataon. If eif er. ho fc chairman of the board and chief executht officer of MaUmn as well as of At will assume the additional post of president of -Mataon pfeiffer said the appointments art part of the company's program to provide for an orderly transititm in management upon his retirement. If eif fer ill be 65 In March of 1W5 but la espected to be asked by the AiB board to continue as the company's thief opmting of fker beyond that date. Teb eemings up 15 for second rsctl querter TAB PRODUCTS Co, Palo Alto, reported record revenue and earnings for Rs second fiscal quarter endd Nov.

3U Revenues rose 15 percent to fAJ60O0 from the I25J0M.O00 of the var earlier period Earnings were up prrcent to SIJULDOO or 57 cenU a share from t81.nm or 29 cents a share Harry W. Lr (lare. Tab preMdeat, attrsbuted the amprovrd earnings to the combination of tutfut revetHMS and coaKvttaig nmnmres. Wcehington farm buys wiod-f errn dsveleper nOttfO CORP, Kent ash. annouiicHawacquaiunaer Wandfarms Ltd of Saa rranrtaca for 173 rttlion in rash and convert aotea.

rbWfcnd devetops and setts oindpowef facgai. Windfanra lid a owr4oper of Ind farm hat arqutrai or teased more than 1000 arm of pnrar wind prorrues and newer tatet conirtns cf more thaa TO tneftwans la Cahf onua, Oregoa and Htwaa. decline will be recovered by the end of next year. Graves added that the country's defense buildup win provide strength to California's economy in 1984 and beyond. Sixty thousand more people win be employed in aerospace industries in California than just two years ago Dechttl posts losses of $41 FLUOR the second targest engineering and construction company In the nation behind San Franciarbaied BecMd Corp, said lost 141 million in Ka fiscal fourth quarter.

The tost chopped earnings for the year ended Oct SI to t27 3 million, compared with a prof of $125.1 million at fiscal 1962, the company said. Amfec to raster nswecssaen stock A2FAC KC. has takes steps to register up la 12 mflboa shares of new common stock to be sold by Salomon BrotlwnlM.attetjmgaWehotder. Salomon Brothers w1B obtain the sham from Amfac in exchange for up to tM ariluoa frinrtpsJ amount of various scries Amf art debt awurttaa Salomon Brothers acquiring these aVttasnsrttMS fronaratSMtaasMdaweaton. Greyer Ateocbtes pcets record revenues CftCmR Ajsoriaua, Santa Ctara.

said revrtHieii for quarter ended Nov. 27 were a record 122 4 nauoa. 19 percent snore than the 1121 maaoa of the rst rkcat quarter of (be prevtous yar Earrings were 821 naaoo er rJ read a share 81 rnSboo or cestfs a share a year before. Gransxr Btodoroi otgnal signal or earing and St tet miinMJiiiiatujijf equlpmeuL DoHsrrisscJows, gold prices mixed THE DOLLAR climbed to new peaks today against the Kalian lira and French franc, but was mixed against other major currencies in foreign exchange trading in Europe. Gold price were mixed, rising in Europe after falling earlier in Hong Kong.

Dealers attributed the doOara strength to continuing high UA. interest rates and tmxiont over the Middle La situation. The dollar let in Tokyo to ZR06 yen, down from 235A5 yesterday, London, the pound cloned at 11 4216 vs. $14178 a day earner. Other late dollar rates In Europe compared Rh late rates yesterday: 2 7655 West German marks, up from 2 7615, 2 2083 Swiss francs, dow a from 22183; a record 1 4490 French francs, up from 4275; 8 1000 DuU guilders, torn front tlOXi, a record 1,675.75 Kalian Ire, up from L67230; and 1249S5 Canadian doUart, down from 13M06.

Gold fel 81.72 an ounce to ctow at tSB 40 in Hong Kong as the trading day brfan Uter in Europe, gotd row SO cents to M7i a troy ounce ia London. Construction, etrocpeco workers est cood nzza tXNTV ceartrarttoa br among the Cahforniam wt 1l aiuiM find emfto)-neal at tbc state 1 rroaotny rxpandi and eutpaces eronomtr rvrsvery in America, Benrty Partfc Bank EctXKxnM Ton Crtvca predicted He said bonwbufldmg eqwrtmclng a strong recovery. Rnidevtjal howanjl ferrtta, hk1i numbered ZXMB0 la WT7 and rtm apwsrd to MBjOOO avfoaiatiom in ISM EJftitj thousand eowtrwtioB Jobs that fcad ben lot during (be tevere Topps Trowsers notes increasing losses Franciacobased mens apparel and computer software retailer, announced a loss or the 13 weeks ended Oct of $501238 on sales of K411MB. This compares wfch a low of on sale of t4jnftjM8 for the like period last year For the 39 weeks ended Oct 30, the company reported a bat of $1JM7JBB6 on tales of $1 1,47715 n. to a toss of SlttJM on salea of I12.XKJB7 for the 1X2 period Ton fc Trowsers said is selling or rioting 15 unprofitable stores.

Activlxlon, Ateri to form venture ACTrVtSON lnc, of Mountain View and Atari lnc, a unl of Warner Communicatinn lnc, have tgrrri in principle to form a yjint venture company to distribute software etertronicaRy to the home. The two said the venture company would transmit software to a home receiver that plugs koto video computer system. Tha sen-ire would be extended later for use home computers TV proposed service would at ewe software from a variety af supptiers Intiudvig AriivMoa and Atari, the) said tapper Ukes poet ct pcrcnt l3CHfL ASACZ, wileij of Saa Praaxtro4atse4 Matsoa Nastfation, has bera named to the net) rreated port ot aeiuor eervtjv vtr preiaoVtit ItoBoMutiased Aanander and Baldwin, putUng bsmtohrwforatoaapotattbe thwrufipd concern Matsoa a aa A1B ubHdiao AAB chairman RJ ffetfTer said Waaart fl assume his new port Jan. atawta IWtftTU ill I MNf I.

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