Oakland Tribune from Oakland, California • 57

This Indicator Very Reliable iMIew By WILLIAM DOYLE THE SUNDAY I I Tribune Financial Editor Business indicators abound but Lester Korn thinks he has one which leads the business cycle by six to nine months. Korn is the president of KornFerry International, the' largest executive recruiting firm in the United SStates, he says the requests for executives-he receives from the 250 listed companies who are his principal customers have proven to be a very reliable indicator of coming business activity. Tlic executive recruiting firm codifies those requests each month and every quarter produces an index of where the demand is geographically, what types of executives are most in demand and Reasons For Drop Not Clear Eastern Germany On Its Own aUAttbj.8Mbun NEW YORK (AP) More hopes for world peace, not' Russian gold sales, are bringing FDIC Hearing On Lending Rules Set Ready Tomorrow PusH-button banking comes to the Eastbay tomorrow when this fully automatic banking machine goes into operation at Crocker Bank's main Concord Robin Fibush is shown at the controls which allow -y the device to handle 1 1 banking transactions at time of dayrThisls'thS second such machine in ther-j Crocker system. Inland America Seeks Larger Share of Trade which originated outside the -country. Meanwhile, the zone brings! obvious economic benefits to- the area in which it is situated, Miller says.

NEW YORK (AP) Gerhard Beil, state secretary of East Germany, said there is no Western capital in his Communist nation and one of the reasons is because we want to solve our own tasks with our own" money. Beil, who is in the United States on a two-week visit, also told a news conference that the problem of credits in foreign trade with this-country is not difficult because we do not need them at the moment. He told a management seminar that American exports to his country would total about $60 million this year while East German exports to the United States would come to only about $10 million. Beil, who also holds the title of first deputy of foreign trade, said that East Germany planned to concentrate its American exports in the machine-tool category. Machines for- the textile, printing and optical industry constitute a particularly promising market, he added.

East Germany, in turn, is interested in importing complete plant and equipment machinery, especially for the chemical and consumer-goods industry, Beil said. Although his country is producing its own small com-puers, he added, it is cooperating with the Soviet Union and Hungary in importing more complex models and also is interested in purchasing data, processing equipment from the United States. Same Skill Needed to Succeed DALLAS Skill in working with people is still the basic ingredient to successful business management, Robert C. Wilson, president and chief executive officer of Collins Radio said in a talk here. He cautioned the students at the University of Dallas graduate school of management that they would face a bewildering array of changes and environmental factors which were completely unknown by managers of a few decades ago.

Wilson cited many modern resources and tools available to today's managers. But one basic ingredient to successful management will remain con-i stant, he said. Thats the ingredient of skill in working with people. Some 200 foreign trade zones A are already operating around the world. The United States -has several, in port cities such as New Yoj-k, San Francisco, Seattle, New Orleans and Tole-7 -do, and in Puerto Rico Hawaii.

Miller says the big ence is that the zone here -unlike any of the others in the nation would be funded and operated privately rather through local government. i A private operation is in the best position to put tion and full promotion into a zone, he maintains. Under ci- ties port authorities, he foreign trade zones have nev- er been fully developed. what industries need them. Looking to 1973 Korn said he thinks the economy is moving very nicely, that financial services and the public sector will be areas of expanding opportunity for executives and that the fields of communications, advertising and corporate law, which he said have been disaster areas, will enjoy a comeback.

The company president said he is talking about jobs in the $35,000 a year range and above. He said too that his company will begin an equal opportunity division in the near future as an aid to minority recruitment. The West Coast, and particularly the Bay Area, will thrive' economically during 1973, according to Korn. He said there are at least three major reasons why things are going well here now. They include: the West was hit hard by the recession, of a couple of years ago and there was a lot of executive unemployment.

There was a pool of unemployed executives to be reabsorbed and it took until the first quarter of this year to accomplish that. Now, new people are needed to fill vacancies or new demands. Then, he said, the financial services area was not hard hit and demand there has remained constant and at a nigh level. Pacific Basin Perhaps most important, is the emergence of the Pacific Basin as a market area for American goods and skills. He said the Bay Area is considered to be the heart of increased U.S.

participation in this area. He said too Japanese companies and banks are actively seeking American executives thus adding to the demand. Another plus, according to Korn, is the fact that Bay Area companies, in large part, did not participate in the first wave of expansion after the recession but planned more carefully, avoided the troubles that hit some firms which moved quickly and are now beginning to expand in an orderly fashion themselves. One area where he said there is a definite pickup in the West is retailing, a segment of the economy which he said has enjoyed little growth in demand for executives until now. Korn said that in almost every search now the company which is looking for a man makes it clear that his ability to increase profits is the key consideration.

Questioned about the move of some companies from major cities and the influence preferences of executives may have had on the shifts Korn said that in most instances the moves have simply been to the perimeter. He added, however, that some of his clients have moved to small, remote communities and that they are now sorry because their people are spending a lot of time on airplanes going back to the cities to do business. Make Cities Livable Korn said the major thrust of corporations now is to cooperate in making cities liveable once more. Korn talked about a new search activity his company has entered in the last 18 months. That is the hunt for members of boards of directors.

He said a court decision of a little more than three years ago, which increased the liability of directors for actions of the companies on whose boards they served, has brought about some rethinking. In connection with this, executives, most of' whom were serving because some friend asked them to, found they were being paid far under what they normally receive pep hour from their own companies. Given the press on their time, the low pay and the increased liability many decided not to serve any longer. Then, companies decided to seek replacements in auu uuiaij 111L the same way they chose a company president-through an announce(f that by mutual down gold prices, some international bankers say. Whatever the cause, the lower gold prices in Europe are good news for the United States.

With gold cheaper, rjt there is less pressure on the fT U.S. to raise the price it will for gold. This promises More News More financial news and tables will be found on pages 58 and 59 in todays paper. more stability the complex system of international exchange values. In turn, stability will help Americas foreign trade.

Gold fell $1.34 an ounce in London Friday, to $60.10, the lowest mark in two months. And in Paris the falling price was accompanied by the heaviest trade since September, when the quotation was rising toward $70 per ounce. Gold is the traditional hoard when war is around, said Eugene Birnbaum, Chase Manhattans vice president for international monetary affairs. Confidence, in peace and in the future, is bad news for the gold bugs. Now there is less international tension not only in the Vietnam situation but in the rest of the world.

Look at the East German-West German agreement and the Russian trade negotiations. People are selling their gold and buying dollars or stocks which can earn them a profit. There does seem to be some selling of Russian gold as the Soviets buy dollars to pay for their American grain imports. these sales are still not a big enough factor to account for the abrupt fall in the gold price. More important, some other observers think, is the effect the gold sales will have on international confidence in the dollar.

If the gold is sold for Eurodollars, that will not reduce. by much the pool of these dollars, those owned by European investors and central banks. But, by providing a market for Eurodollars, the brisker trading will make investors more willing to hold them. It was efforts by holders to obtain gold for these dollars which forced the United States off the gold standard last year. A ton of gold is worth about a million dollars, so the two tons traded in Paris today was not enough to noticeably decrease the Eurodollar pool of some $60 billion.

However, the real significance of gold trading, the bankers say, is that it is a barometer foreshadowing coming storms or fair weather. In this case, the heavy trading on a falling market is a sign of renewed confidence that world peace is probable. Talks Called Off MAHWAH, N.J. Western Union Corp. and Comsi, --WASHINGTON (WSN) Hearings -on-a tough -set of-rules designed to prevent discrimination in lending have been scheduled for Dec.

19 by the Federal Deposit Insurance Corp. The FDIC rules will apply to state-chartered banks not in the Federal Reserve System about 7,000 banks. The proposed regulations would flatly prohibit bias in making housing loans or receiving loan applications on racial, religious or ethnic grounds. They would require the posting of equal lending notices in bank lobbies and similar logos in ads soliciting loan applications. More critically, the rules would require that banks keep records showing the race of loan applicants and, in the case of rejected applications, the reasons for rejection.

Each bank would be required to name a fair housing officer to monitor compliance with U.S. Nuclear Lead Could Aid Deficit CHICAGO (AP) The U.S. lead in nuclear technology could be exploited in the expanding international nuclear trade market to improve this nations balance of payments deficit, according to a member of the Atomic Energy Commission. It is paramount that the United States plan its participation in the international nuclear market not only to balance our international energy accounts, but to make the maximum contribution to an overall favorable trade balance, William O. Doub said.

Doub told newsmen the United States currently dominates the hardware nuclear market and with proper planning, the effect on our balance of trade could be significant in the years ahead. Doub also said the United States should continue intensive research in ths area of fossil fuels to decrease its growing dependence for natural gas on imports. Specifically, he said the nation must develop a method to remove the sulfur from coal so that the resource could be restored to use as a prime fuel without harming the KANSAS CITY (AP) A group of Kansas City leaders hopes soon to bring a larger 'share of the traditionally coastal foreign trade business to the midst of inland America. The key to their plan is an old but comparatively unpublicized concept a foreign trade zone. Its supporters here, some of whom have already staked a good bit of money on the plan, tout it as a potentially powerful tool for stimulating- economic growth.

Its a complicated concept which many people dont understand, says Marshall Miller, secretary and general counsel for Greater Kansas City Foreign Trade Zone a nonprofit corporation which is seeking government authorization to begin a zone here by Jan. 1 The savings for companies, can be enormous. In simplest terms, a foreign trade zone is a U.S. Customs no mans land an area where items of foreign origin, whether raw materials, parts or finished goods, can be stored, displayed or processed duty-free under customs supervision. The duty is not paid until an item is brought out of the zone for delivery or sale.

Miller says this offers several advantages to the firms involved, including: Freeing money previously tied up unproductively in duty paid on merchandise that is not ready for sale. Providing for ready availability of imported goods for distribution and display. Permitting shrinkage, evaporation and waste which occur dunng processing and storage to take place before payment of the duty. Allowing the importer, in the case of goods containing both foreign-and U.S.-made parts, to pick the lower of two duties, either on the finished product or on only those parts of it 55 Nov. 19,1972 57 civil rights statutes.

The- FDICs proposed -rules, with the exception of the fair housing officer, parallel those proposed early this year for the nations savings and loan industry by the Federal Home Loan Bank Board. The record-keeping provision roused a storm of protest from the industry. executives complained that keeping the records would vastly complicate the loanmaking process and might offend customers by bringing up the subject of race. The question of nondiscrimination in any form has nev- er been an issue or problem in our area, but Im sure that due to your constant prodding and enforced regulation, you will make it one, a Pennsylvania executive wrote the bank board. In the face of massive industry opposition, the Federal Home Loan Bank Board held back the record-keeping section when it issued the rules in May.

Although roundly criticized by minority rights groups, chairman Preston Martin said his agency would wait to see what tack the other bank regulatory agencies took. Why should the savings and loans be at a competitive disadvantage? he remarked. The groups, organized by the Center for National Policy Review, a Ralph Nader spinoff organization in Washington, contended that record keeping was necessary to detect patterns of discrimination. Examiners auditing those records, they say, will be able to determine if certain areas of cities have been redlined by lenders that is, informally written off as bad risk areas. Redlined areas tend to be those of low-income and high-crime where adequate housing is badly needed, they add.

The proposed FDIC record rule goes beyond the one jiqjid-mg at the Bank Board by requiring that the census tract of a property be noted on applications to help detect redlining. Dividend Upped CHICAGO I Industries Inc. Friday declared a quarterly dividend of 30' cents per share on the common stock a 1-cent increase over the 29-Lj cents per share paid formerly and the maximum amount permissible in even cents under the governments phase II guidelines on dividend increases, the company said. TUESDAY DEC. 5 9:00 A.M.

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CREATIVE PROMOTIONS DECO-MART Fiset Daily NO LIMIT NO RESERVE Public mil In Ths Matter of Empire Foundry Co. Bankruptcy No. 4-72-19S4 Empire Foundry Co. OAKLAND, PUBLIC mmw 3 DAKS 2 LOCATIONS TUES. WED.

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PST Burroughs Corporation (Westlake Plant) 5411 N. Lindero Canyon Rd. WESTLAKE VILLAGE (LA. Area) CALIFORNIA 2nd 3rd DAY Wed. 1 Tburs.

Nov. 29th (30th 10.00 A.M. PST Each Day Burroughs Corporation (Mission Viejo Plant) 25725 Jeronimo Rd. MISSION VIEJO (LA. Area) CAL Multi-Million Dollar Replacement Value LATE MACH.

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Korn said it has worked and he expects more use of the technique. Inflationary War Should Be Hastened UNITED NATIONS, N.Y. (AP) A world financial official said here today that it was important for the major industrial nations to make far more rapid progress than hitherto in combating inflation, so as to reduce the inflationary bias in the world economy. Managing director Pierre Paul Schweitzer of the International Monetary Fund did not mention the U.S. price and wage-control program, but he governments need to make judicious but determined use of all relevant instruments to bring down the rate of inflation.

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