The San Francisco Examiner from San Francisco, California • 58

San Francisco Examiner Aug. 19, 1976 Page 58 nJr ft Financial problems claimed at big bank Eliot Janeway should be directed toward developing and maintaining strong and efficient operations within its existing: Rtrnctnrp Associated Press WASHINGTON The Federal Reserve Board turned down today a proposed acquisition by Bankers Trust New York Corp. on the ground that Bankers Trust, the nation's seventh largest bank, is undergoing financial difficulties. The Federal Reserve decision consitituted a rare disclosure of a specific bank, In the past the central bank has guarded disclosure of the names of banks on its list of "problem" banks, which hold a high proportion of risky loans. Bankers Trust was not on the problem bank list of January 1975, published by newspapers about six months ago, and the Federal Reserve move today contained no hint that it is on that "problem" list now or is in a tenuous position.

But the 6-0 decision clearly served notice on the bank company to shore up its finances. The company denied the Fed's allegation. "We're disappointed, but as indicated by the board itself, this is merely a continuation of their signals to the banking industry to go slowly on expansion," Thomas Parisi, vice president for public relations of Bankers Trust, said in New York. "Our condition is very strong." The Federal Reserve decision said: "With regard to the financial and managerial resources and future prospects of applicant, information in the record, including all bank examination information available to the board, indicates that applicant has been experiencing financial difficulties that have detracted from its over-all financial condition and lessened its ability to serve as a source of strength for its subsidiaries. "It is the board's view that applicant's resources as ui me enu ui iusi jeai caimcia ui deposits totalling $10.9 billion, according to a magazine survey which pegged it as the nation's seventh largest, The Federal Reserve estimated its deposits at $10-4 billion at year-end.

The holding company controls nine banks and was applying to take over the First National Bank of; Mexico, New York. The Federal Reserve indicated it would have had no objection to the acquisition had Bankers Trust financial condition not been what it is. The board found the acquistion would have! increased Bankers Trust's share of commercial deposits in New York state by one-one hundredth of percent. Newest target for kidnapers: Top executives Carter's economics Q. 1 have been very interested in what Governor Carter has to say about the U.S.

economy and what should be done to improve it. Do you think these views can be put into practice if he moves into the White House next January? A. He doesn't know very much about the economy and everybody's better off because he hasn't really said much about it. The only serious test of his common sense in these matters developed when a McGovernite professor on his bandwagon slipped him the hot potato about canceling the tax deductibility of interest on home mortgages. Carter showed the old Roosevelt finesse in getting out of that jam by appointing a lot of new economics professors without firing this one.

But the most encouraging aspect of Carter's "economic" view fs its emphasis on transforming the old foreign policy of personal diplomacy and military muscle into a new foreign policy committed to old-fashioned Yankee trading: Getting advantages for America in return for trading away resources. This shows an encouraging recognition of my premise that America's basic economic problems are international. If this is so, no economic policy will do any good without a change in foreign policy, and a change in foreign policy will take the pressure off domestic economic tinkering. Q. My daughter recently became a doctor, and is presently practicing as an associate to another doctor.

She wants to start her own practice, but after subsidizing her through medical school I cannot afford to help her. Is there a national foundation or a lending institution that might be interested in helping out with funds? A. Your question is very timely and practical. Practitioners rendering all types of health services have caught the inflationary cost virus along with their patients and the government, which is supposedly By David Dietz When two thugs tried to kidnap Polaroid Corp. President William McCune last week, they picked a pugnacious target.

McCune, an avid skier, hiker and bicyclist who was once described by associates as "totally competitive," fought back when accosted by the shotgun-wielding pair and sent them fleeing. Although McCune escaped, the incident, according to private security agencies, dramatized the vulnerability of many top executives in the face of kidnapers -bent on political terrorism or financial ransom. Moreover, the attempt against McCune might signal an increase in efforts to kidnap corporate leaders, says Kyle Clarke, chief of executive protection services for Pinkerton's, world's largest security service. "The various groups more or less slacked off for a tell them not to take the same train to and from work and not to eat lunch at the same restaurant." Adds King, "Be alert for anyone following you in an auto or on foot." "Always keep in communication with your suggests Norbert S. Mack, operations manager for Boyd 2 Associates.

"When you leave the office, give your 2 family a call and let them know when you expect to be home." Clarke also advises corporate leaders to travel in groups both on trips to and from the office and on out- of -town business journeys. And he urges executives' wives to change recreation or shopping habits. Perhaps mindful of the McCune incident, in Vhicft the Polaroid chief was accosted while parking his car in the company lot, Mack recommends that executives park in attended areas. Executives with chaffeurs should arrange a-signaling system to indicate to one another that danger is either absent or present, says Mack. 1 "There also have been incidents in South America and so on and this bounces right back to corporate headquarters in this country," King adds.

"Many companies are looking for advice on what we call executive protection programs." The commercial bodyguard business has grown from 10 to 15 per cent company wide for Burns and about 22 per cent at another industry leader, Waeken-hut Corp. Guardsmark Inc. estimates that the number of bodvguards will grow from the present 20,000 to about 70,000 by 1980. Tom Keating, vice president of American Patrol Service, notes that much of the heightened activity is not readily visible. "Many of the top corporate executives in the Bay Area have employed protection directly through their own companies," he says.

Clarke says the most important step for kidnap-wary executives is to alter daily routine. "When we are called in to protect a businessman and his family against kidnaping, we give them special training as to their daily movements and routine. We while," Clarke says, "but they are starting up again." Clarke declined to identify the groups but noted that politically motivated kidnapings were rising. "You know who they are," he says. The uneasy atmosphere has created lucrative business opportunities for Pinkerton and other companies in the field.

Corporate leaders, says Clarke, have replaced celebrities and wealthy individuals as the average customer for protective services." American Banker magazine reports that 329 bankers were kidnaped last year and more than in ransom was paid. There also have been the celebrated kidnapings recently of J. Paul Getty III, steel executive Jack Teich and Seagram liquor heir Samuel Bronfman II, all involving substantial ransoms. Largely in response to the Patricia Hearst kidnaping, Burns International now provides bodyguard or A sour note in and sugar ads substantiated prior to making the: representation, and difference or: superiority is discernible to or of; benefit to the class of consumers to" whom the representation is direct' ed." The negotiated settlement also; prohibits the company from mentioning in its ad that competing brands do not disclose the source or origin of their sugar unless it also says why there is a difference that would be important: to the consumer. WASHINGTON and Sugar has agreed to stop claiming its product is different or better because it comes from sugar cane grown in Hawaii, the Federal Trade Commission said today.

The agency said the California and Hawaiian Sugar Co. of San Francisco and its advertising agency, Foote, Cone and Belding-Honig, agreed to stop an advertising campaign suggesting sugar derived from beets or coming from somewhere other than Hawaii was inferior. "In truth and in fact, for the purposes consumers generally purchase sugar, there are no differences in granulated sugars," the FTC said. It said all granulated sugars are 99.9 per cent sucrose and the and brand is not different from or superior to other granulated sugars. The agency had proposed a complaint against and on the basis of television commercials showing shoppers puzzling over sugar labels or being interviewed and saying they thought there was a difference between cane sugar and other kinds.

Under the order, and may not repeat the claims unless "the differences or superiority represented relates to a consumer use of such sugar which is specified in the ad, the difference or superiority is subsidizing both of them. Young graduates whose parents borrowed to pay for their training are not the only ones strapped for cash; since malpractice awards to patients and Insurance premium costs to practitioners got out of hand, practitioners with six-figure incomes have been going broke too. But money is always on the lookout for ways of teaming up with people to render a service. In Cincinnati and St. Louis, responsible and legitimate specialists in the financing of health services are already filling this breach.

Consult your local professional society to see whether these specialists have a counterpart in business in your area. The need is nationwide. Q. I am 57 years old, and will have at least one child in college for the next eight years. I have been holding 1,000 shares of a reputable common stock (average price, $70 per share) hoping to use the dividends to help pay my children's educational expenses (my earnings are sufficient for all other needs.) I recently realized that the dividend return will not provide the income I need.

What do you advise me to do? Shall I sell the stock and reinvest the money, or hold on to it for interest and appreciation? Can you suggest an investment that would bring me a greater return? A. Fortunately for you your problem is easier to cope with under today's topsy-turvy market conditions than it seems on the surface. The stocks which have been doing best are the ones which have been paying higher returns than most of the old leaders of the growth stock parade. Ask your broker to recommend switches into lower-priced, higher-yielding stocks likely to go up in price as money rates fall. This will serve the double purpose of enabling you to own more shares and generate more income, the chances of making money from a security hinge on owning more rather than fewer shares.

An investor owning ten shares of a $100 stock won't do as well if it goes up 50 per cent as he or she would owning 100 shares of a $10 stock which went up only six points. Data Corp. leaving Santa Clara Data 100 based in Minnetonka, said today it will close its magnetic disk operations in Santa Clara and move them to a plant near company headquarters. The shift will affect 180 employes at the Santa Clara facility. Some will be offered jobs elsewhere in' the company, group vice president Thomas G.

Hersch-bach said. Herschbach said the decision was based on revised marketing forecasts and potential cost savings in a smaller facility. Data 100 has operated the Santa Clara facility since September, 1975, when it acquired Iomec Inc. home protection service to some 20 Bay Area executives, says senior vice president George King. Bad day for stocks, Dow Jones off 11 NEW YORK Stock prices slumped today on the New York Stock Exchange.

Wall Street is worried about government statistics indicating a lull in the economy. The Dow Jones industrial average was down 2 or 3 points in early trading, skidded to a loss of 13.21 a half hour before the New York close, and ended at down 11.13 at 983.88. Losers were ahead of winners 11 to 2. Brokers said the slump was the result of continued selling that showed up yesterday when the Dow average went over 1,000 briefly. Brokers said investors were cooled off by government reports of a downward revision in the gross national product and a slowdown in the growth of corporate profits.

Costly goof on Peninsula By Peter D. Whitney The stock of Watkins-Johnson Company, manufacturer of sophisticated electronics for military and other purposes, took a beating today on the company's announcement that somebody had goofed at the Palo Alto main factory. The snafu "will have a serious effect upon third quarter sales and earnings," it said. Trading in the stock was delayed on Wall Street and the Pacific exchange. It opened down 5'fc and closed down 3 at New York.

A company spokesman explained that a wrong material had inadvertently been manufactured into a military product, and it was not yet clear whether the whole run would have to or whether the correct material could easily be substituted. The material itself isn't rare or hard to come by, he said. Business starts preceding page Truer than ever cars look alike Caldwell likes to point out how; the differences have been joined. "Americans were the first hr extensive use of comfort and conve-' nience items associated with larger, cars automatic transmissions power steering, air conditioning; and the like," he said. the same things the U.S.

buyer wants as stylish, dependable and useful a car as his budget allows," said Philip Caldwell, executive vice president for international automotive operations at the Ford Motor Co. "But the high cost of fuel, generally shorter distances traveled and fewer freeways tend to move the European buyer into smaller cars," he said. "But the Europeans were first with the technology associated with smaller cars rack and pinion-steering, front wheel drive and small overhead valve engines and now," Caldwell said, "we have; married the two concepts and are" selling small cars with convenience items in both North America and overseas." Crocker computerizes teller windows CAR SALES GAINS 1966 TO 1976 Crocker Bank has introduced a teller computer system in 80 per cent of its 358 branches that it says will United Press International DETROIT It used to be easy to tell the difference between a spartan foreign model and even the smallest American car. A chrome-laden luxury chariot from Detroit was easily distinguished from its expensive European counterparts. The energy crisis and an exploding world market have blended those differences.

Without looking at the name-plate, there are few motorists who can pick out the European Volkswagen Golf from its U.S. version, the Rabbit. And Ford's soon-to-be-introduced mini Fiesta not only looks like the Rabbit, but will be a multi-continent car. Twenty years ago, American and European cars were distinct in size and concept and the Asian auto industry was relatively underdeveloped. The automotive market has been on a long-term upward movement in the United States and Canada.

But since the mid-lSfiOs, worldwide car sales growth has far outstripped the U.S. and Canadian pace. "The European buyer wants JV 100i 80 60 40 20 greatly speed up service at windows. Crocker President Richard Wilmouth said yesterday customers, by use of a plastic card, can learn in a matter of seconds their balances in checking, savings and Master Charge accounts. The terminals also enable tellers to approve checks drawn on accounts at another Crocker branch and to stop payment on a check.

Wilmouth said the system provides terminals outside teller's stations that enable customers themselves to determine their account balances a first on the West Coast Bank of America says it is testing a device in Southern California in which customers insert cards into self-service terminals to perform a variety of banking services. Since 1967, Wells Fargo has had a system linking branches with a central file that enables customers to get account balances. Ill One recent development is the' so-called "world car," designed so it can be built and sold anywhere In the world. Caldwell says the Fiesta, built in Germany and due in the" United States next spring, is a good1 example of keeping substantial dc velopment costs to a minimum. That's the logic General Motors-used in bringing its "world car" ta this country last fall.

Chevette sales may not be as strong as originally predicted, but it's a good example of relying on the use of common' families of automobiles in world-' ide markets. AND CANADA 11.5 97 i OTHER COUNTHIES" 151 86 SALIS' 1976 1966 mrni ii kill t'it. SllWfl II () UMTS IN Mil i KNb IKOUI.HS ttlMui'l AMU MAIN! ANU MINA (hm.