Fort Worth Star-Telegram from Fort Worth, Texas • 23

fr'e 111' -b-- 0 oil 11o or 00 go 4 jf ''c''p w' 11 1 15: 0 '1 1 1 4' 01' 1 peog 0' I 0 1 sty oetdir ir fkr01( tr0164f rvii 1 1 ie 1 -y 1 4'b ir fr et 0 lb 0 kosillow 4 Starielegram THURSDAY OCTOBER 15 1981 Starie THURSDAY OC sntt2(DA-Tn(9(5r c160 MC19 business re I 141 WOW 71 0 I lkt -1111ENE141140mLim I -t 1- 0 0 4 0 3B 4 iscusses buying Memorex tape division discusses buying Memorex ta I 0 11 VVVVV Tar Tandy ucts which it sells through its approximately 8000 Radio Shack stores na tion wide That vertical integration has allowed the company in 1980 to achieve a fat 57 percent gross profit margin on sales making it a standout among retailers By JIM FUQUAY Star-Telegram Business Writer Tandy Corp said Tuesday it is discussing with Memorex Corp the possible purchase of Memorex'sconsumer products division that produces Memorex magnetic recording tape' an acquisition that presumably would add video tape cassettes to Tandy's Radio Shack product line and give it a second source of audio tape A Tandy spokesman declined to in By JIM Star-Telegram Tandy Corp sa cussing with Men sible purchase of! er products divif Memorex magne an acquisition would add videc Tandy's Radio and give it a seco tape A Tandy spokes dicate how far along the talks were saying only that Memorex officials were in Fort Worth recently Memorex based in Santa Clara Calif has recorded losses the last five consecutive quarters and the company has approved a preliminary cash acquisition offer from Burroughs Corp A Memorex spokesman said Burroughs' offer was for the entire Memorex line and that Burroughs "is fully aware" of the discussions with Tandy Memorex's consumer products division produces only audio and video recording tape and in 1980 generated revenues of more than $70 million That is less than 10 percent of Memorex's total revenues of $7687 million last year The remainder of Memorex's business comes from sales of computer equipment semiconductors and microfilm products A Tandy spokesman said that if the acquisition goes through Tandy will use the Memorex facilities in Santa Clara to continue to produce will not be affected by the acquisition Radio Shack does not currenty sell video tape According to financial analyst Eric Jager of Epp ler Guerin Turner in Dallas "Tandy's always interested in the whole consumer electronics market" and the Fort Worth company's strong financial position should allow it to buy the Memorex division if the price is right Tandy historically has made approximately 50 percent of the prod Memorex name brand tape plus make a video tape to be marketed under the Radio Shack name Retailers who currently sell Memorex brand tapes "would continue to offer a Memorex product both audio and video A Memorex namebrand product will not be sold in Radio Shack" the spokesman said He said Tandy currently produces in Fort Worth an audio tape sold through Radio Shack and the operation of the Fort Worth tape facility Tandy currentlyhas a strong bal ance sheet with debt only 24 percent of total capital and the company also has a cash surplus invested in term securities that should be avail- able to fund an acquisition usinesses start totaling damage brought by rain IptiNirt 1YrsqL1 rts41Ze 444 12 Se 4R -eTte'tiat'141 5 1 :11 70t-4 4-4 0 0 pplik71 4:76 4 I r4P P' S'01 4 16'a 474 4e nillib bt :1 1r 4e Ir r' 14-r1 --74: 1 "-N'''tAt-H 0----dy 1 0 o' li a 1 p1 'no m1mapA)" 4 L'-7 gtf Nr OtnieA077 I 'dr 4 012 'ole- 0 ::47 7 DZ I 4" tt 14140 114 tO 4 0 '''411''' 7 11' tie 1 411111A2 0 0-: 00t441P i 00''' a' 6415111 0' i4 0 1 0 i "Nrl'w7- Aor 4 4 4 4 0 -otro imiAliA1 I lit (1 1 7 4401 4 -a --Tolotv! 1114 21 4 4 Tr 401 I --s: '14- 1 -ir: I oi Je'xi- 41 724010104' 1- l' 1 41 Of -46 I 1'31' gt vir ')' 4 robi-4-' A 4 owAy 4 4:7 40t- 17 it -4461'441 rcii17 i' '9 00ife4 Noggnommewp ie oti 11 --ctir1 4' til-' i 44 '41' l''' -1111 1446 14 1 04 41 Alig 11W7 it 401A 0 a 110041P 2' dW A al It iiii''''''1 1 41 1e J47 4: 41 11 '0 4 '4 I 4 4 A 4 tiorwL 44 14?" ilifr tr 111 low 4r 1401krtt 4- 40 "Cgr it'de 4- mit oell at a i' ttVwr4o 11 It ilir 'IC 1 1 I'l 4 4te 47414 4n i 0 1 TLA: 0 etf-a 4 1' A 10 Ar to- -4 tiS tpt i o't '4 t1 1terci i i 11 VA Istild' 460p1743 :1477 24 12)11 6 i '67' 0 4 4' 1 sr 4 By WORTH WREN JR and MIKE NORMAN Star-Telegram Business Writers Businesses from Abilene to Tyler Wednesday were assessing damage and beginning the cleanup after swollen rivers creeks and deluges from this week's rains erased swaths of peanuts cotton newly-planted wheat and oats miles of fence tons of soil cattle railroad track and some business inventories Hundreds possibly thousands of miles of fence were destroyed or damaged offering great sales potentials for fence wire and post dealers county agricultural specialists said IP st 711-1" PLY 4 41'16iAltS1 14r Autie7 Associated Press onto a truck They are wet harvested from a bog that has been flooded These particular berries are being used for processing for such items as juice and sauce i 4 1 A 13 414r c' 0 THANKSGIVING AND CHRISTMAS may seem far away but it is cranberry season already around Carver Mass In this photo a worker spreads the bright red berries as they are loaded by conveyor THANKSGIVING AND CHRISTMAS may seem far away cranberry season already around Carver Mass In this 1 worker spreads the bright red berries as they are loaded by c4 Bridgeport in Wise County "The wa ter is over the track for about half a mile" said Thomas Todd vice president for operations Wednesday: "Traffic will cease until it can be determined what we can do and when we can do it" Burlington Northern spokesman Jack Martin said that company's Fort Worth and Denver line was closed Wednesday as workers repaired washouts along a 54-mile stretch between Decatur and Henrietta near the Oklahoma border Martin said 16 trains were backed up waiting for the repairs to be made The Santa Fe Railway had a series- of washouts in its roadbed along a 25- mile stretch north of Gainesville: Workers repaired those trouble spots quickly and the railway was put back' into service at 1 pm Wednesday Only one washout was reported by the Southern Pacific Transportation Co a one-mile stretch just south of Fort Worth near Sycamore Creek- The washout was repaired Tuesday night PERHAPS THE MOST dramatic economic loss came to a Hill County: dairy grain and peanut farming family ily near Blum Edward Kennedy and sons John and Paul lost property valued at least in the "10s of thou- sands of dollars" when one or possi- bly two tornadoes struck their dairy and farm Tuesday Among the total and partial prop- erty casualties were two 18-wheel grain trailers a truck two peanut combines a grain combine a tractor three barns a workshop an implement shed three grain bins and other Please see Flood on Page 5B OPEC may be near unifying prices OPEC PEC 11-16i' he'nc RURAL ROADS WERE gutted and many still closed 38 hours after the last rain fell Railroad companies reported a rash of track washouts "We're now either out of service or have extreme difficulty operating west and north of Fort Worth" said HE Hammer public relations director for the Missouri Pacific Railroad Co "We are not having any problems east or south of Fort Worth" Missouri Pacific washouts were re- ported seven miles north of Denton near Collinsville and near Durant Okla he said West of Fort Worth water was a foot deep on the tracks at Bennett about 15 miles west of Weatherford Hammer said that Parker County stretch was cleared Tuesday night after heavy rains and returned to service But spillover from Possum Kingdom Lake covered the track again Ae I LE 'II 1 Petroleum Exporting Countries to reduce their prices These forces have intensified in recent weeks producing a flurry of speculation that OPEC will hold a special meeting later this month to affirm a formal pricing agreement The cartel's next scheduled meeting is Dec 10 in Abu Dhabi An OPEC price agreement which analysts presume would raise Saudi Arabia's price by $2 a barrel to $34 and result in less production would lead to similar price increases in non-OPEC oil but would have little imme Petroleum Exporting Cot reduce their prices These forces have intens cent weeks producing a speculation that OPEC special meeting later this affirm a formal pricing al The cartel's next schedule is Dec 10 in Abu Dhabi An OPEC price agreeme analysts presume would Arabia's price by $2 a bar and result in less producti lead to similar price increa OPEC oil but would have li diate effect on US gasoline prices Humberto Calderon Berti the energy minister of Venezuela said in Caracas on Wednesday that OPEC "almost certainly" will hold a special meeting this month and agree on a base price of $34 a barrel He said informal negotiations were under way Oil industry sources cautioned however that such predictions made in the past had proven wrong Reports circulated in Kuwait in September and earlier this month that an OPEC session would be held before December But Saudi Arabia by far the largest and most important exporter has not indicated it would accept an early meeting "Lots of times in the past people have said what the Saudis will do but it hasn't worked out that way" said Halsey Peckworth editorial director of Platt's Oilgram Price Report a New York-based industry newsletter Some oil traders believe Saudi oil policy will remain uncertain until Please see Agreement on Page 6B a a A PORTION OF Missouri-KansasTexas Railroad was under water near DOE runs inventors of overcharge casi being exchanged for an undisclosed amount of CT common stock Herby's Foods headquartered between Dallas and Fort Worth distributes sandwiches burritos and dessert items in Texas and Oklahoma Off the lidwr 't Came led from Stall aad Wire Retorts Metroplex NAME CHANGE Electronic Schools and United Electronic Institutes 1 headquartered in Euless with 15 schools across the country have changed their names to National Institutes of Technology Earlier this year National Education Corp of Newport Beach Calif acquired UTEI and merged it with RETSEC a NEC subsidiary The schools offer diploma programs in electronics computer programming and other specialized areas CANADIAN ENTRY Bank of Canada seventh largest bank in Canada with assets of $43 billion Wednesday opened a Dallas office at Plaza of the Americas announcing it will offer a full range of domestic and international banking services directed primarily to corporate borrowers active in real estate energy and manufacturing Earnings-dividends II LTV Corp announced in Dallas Wednesday net income for the third quarter ending Sept 30 of $971 million or $186 a share on sales of $195 billion compared to $49 million or 6 cents a share on $133 billion a year earlier and nine-month income of $2704 million or $539 a share on $568 billion compared to $684 million or $158 a share on $418 billion in the 1980 period 2001 through underwriters with proceeds to be used to repay bank borrowings maturing in 1982 1- 41:1717 By ROBERT BURNS Associated Press KEW 'YORK Gradually and without the fanfare of OPEC's formal price-setting sessions the oil cartel is moving closer to a unified price that could end the worldwide oversupply of oil industry sources said Wednesday The pressure of Saudi Arabia's high production coupled with continued slack demand for petroleum la importing nations has forced member states of the Organization of By ROYCE YANCEY Star-Telegram Business Writer The Department of Energy intends to pursue an estimated 24000 to 3000 cases of alleged overcharges which occurred in the oil industry between 1973 and last Jan 28 when price controls on crude oil were ended by President Reagan This was brought out Wednesday at a news conference at the Dallas field office of DOE by Rayburn Hanzlik who was confirmed Sept 21 by the Senate as administrator of the Economic Regulatory Administration HANZLIK SAID THE first half of the agency had already been eliminated but that the second half enforcement will continue on the alleged pricing violations An inventory of between 2000 and 3000 cases most pending since the Carter admin- istration is being made at present The inventory is to be completed by the end of Noyember and Hanzlik hoies to have most of the litigation settled within a year He admitted there is no firm estimate of the amount of alleged overcharges still be be settled It could be between $1 billion and $15 billion Hanzlik said At the end of the Carter administration the uncollected overcharges were estimated at $129 billion a figure which the new ERA chief said "Apparently lumped together all of the alleged violations" Hanzlik said the government will seek settlements in most of the civil cases and that ERA does not handle the prosecution of criminal violations ERA has a budget of $33 million for the current fiscal year and Energy Secretary James Edwards has promised to seek funding for an additional six months in fiscal 1983 Ian zlik noted The enforcement agency currently has 1000 employees with 200 assigned to the Dallas field office largest of the ERA sections "WE'RE PUTTING A great prem lum on settlement of cases" Hanzlik emphasized "Most cases have been settled out of court many of them Jd S'ok411elon iv ''''--s---- "4 zrs 4-- 30-4 1 i 4 lo 4- -eft r' els 4 1 lai a 0 7 4 tei 9 jr 41Z 000) ere' 11' itocz By ROBERT BURNS Associated Press NEW 'YORK Gradually and without the fanfare of OPEC's formal price-setting sessions the oil cartel is moving closer to a unified price that could end the worldwide oversupply of oil industry sources said Wednes- day The pressure of Saudi Arabia's high production coupled with con- tinued slack demand for petroleum la importing nations has forced member states of the Organization of By ROYCE YANCEY Star-Telegram Business Writer The Department of Energy intends to pursue an estimated 2000 to 3000 cases of alleged overcharges which occurred in the oil industry between 1973 and last Jan 28 when price con- trols on crude oil were ended by Pres- ident Reagan This was brought out Wednesday at a news conference at the Dallas field office of DOE by Rayburn Han- zlik who was confirmed Sept 21 by the Senate as administrator of the Economic Regulatory Administra tion HANZLIK SAID THE first half of the agency had already been elimi- nated but that the second half enforcement will continue on the alleged pricing violations An inven- tory of between 2000 and 3000 cases most pending since the Carter admin- istration is being made at present The inventory is to be completed by the end of Noyeinber and Hanzlik hopes to have most of the litigation settled within a year He admitted there is no firm esti-' mate of the amount of alleged over- charges still be be settled It could be between $1 billion and $15 billion Hanzlik saidAt the end of the Carter administration the uncollected over- charges were estimated at $129 bil- lion a figure which the new ERA chief said "Apparently lumped to- gether all of the alleged violations" Hanzlik said the government will seek settlements in most of the civil cases and that ERA does not handle the prosecution of criminal viola- lions I ERA has a budget of $33 million for I the current fiscal year and Energy Secretary James Edwards has promised to seek funding for an addi- tional six months in fiscal 1983 Ilan- currently has 1000 employees with zlik noted The enforcement agency 200 assigned to the Dallas field office largest of the ERA sections "WE'RE PUTTING A great prem lum on settlement of cases" Hanzlik 4 emphasized "Most cases have been settled out of court many of them I 1 SI ''''''''''krj' 10 iNt ot di'' 114Sitri 0 s- 'ik sib J' oftwest i tg kit ltil fifi Ar cr7310 4 a a a A A -A -A II GALLERIA BANK International Bancshares Inc announced in Dallas receipt of Federal Reserve Board approval to acquire a proposed new national bank to be located in the Galleria Dallas development at the intersection of Dallas Parkway and LBJ Freeway It will have a proposed capital structure of $10 million and be located in a 25- story office tower now under construction SOUTHWEST BANCSHARES Bancshares Inc announced in Houston net income before securities transactions for the thrid quarter of $1098 million or $106 a share compared to $781 million or 77 cents a share a year earlier and nine-month income before securities transactions of $306 million or $198 a share compared to $229 million or $226 a share in the 1980 period at 15 to 30 cents on the dollar" He noted a recent settlement with Chevron USA Inc on "all but one or two issues" for $825 million Of the total $33 million in crude oil went into the nation's Strategic Petroleum Reserve and $25 million was assigned to settle import fees In addition Hanzlik said 46 state governments shared another $25 million with 'California getting the biggest share $5 million Hanzlik said generally the complexity of the federal pricing regulations and the oil industry itself and the various interpretations of the rules were responsible for many of the alleged violations "While some took advantage of certain regulations" the administrator said "it is an unfair statement to say 'the public was gouged' The majority were not attempting to defraud the public We cannot fault the companies which attempted to comply Some were inadvertent violations None is required to admit an alleged violation in settling a case" The administrator indicated "a lot of mistakes were made" in the forcement program which netted $305 million in Treasury escrow accounts for possible refunds between 1973 and last January "But a lot of good came out after the program got started" Then he observed: "It's difficult to tinker with the free market particularly one like the oil business" Ilanzlik admitted it was difficult to trace those entitled to refunds on pe- troleum product overcharges but said crude oil customers were fairly easy to identify at 15 to 30 cents on the do He noted a recent settle Chevron USA Inc on "all two issues" for $825 milli total $33 million in crud into the nation's Strategic I Reserve and $25 millia signed to settle import fe( tion Hanzlik said 46 stal ments shared another $1 with California getting share $5 million Hanzlik said generally plexity of the federal pric tions and the oil industry the various interpretatio rules were responsible fo the alleged violations took advantage of certa tions" the administrator an unfair statement to say was gouged' The majorit: attempting to defraud the cannot fault the companie tempted to comply Some vertent violations None i to admit an alleged violai tling a case" The administrator indic of mistakes were made" forcement program wh $305 million in Treasury counts for possible ref urn 1973 and last January good came out after the pl started" Then he observe ficult to tinker with the fr pe articularly one like th ss" Hanzlik admitted it was trace those entitled to refi troleum product overch said crude oil customers' easy to identify ACCOUNTING SEMINAR seminar on "Challenges and Opportunities in the Accounting Profession" will be offered Saturday at the University of Texas at Dallas with Neal Robinson Braniff's executive vice president for marketing as one of the principal speakers Registration am with sessions and luncheon running until 2:30 pm Registration fee of $10 includes luncheon Information 214-867-1906 CONTAINER ACQUISITIONS Industries Inc Dallas-based container manufacturer announced the closing of its purchase of three composite container manufacturing operations from Owens-Illinois Inc for a purchase price in cash and notes payable of $15 million plus an undetermined amount for inventory The plants are in California Oklahoma and Ohio II ALLIED BANCSIIARES Bancshares Inc reported in Houston third quarter net income before securities transactions of $1361 million or $116 a share compared to $97 million or 84 cents a share a year earlier and nine-month income before securities transactions of $3804 million or 8325 a share compared to $2748 million or $242 a share in the 1980 period ACQUISITION ANNOUNCED Industries and Campbell Taggart announced agreement in principle for Campbell Taggart to acquire Herby's Foods Inc from Artco with all outstanding shares of Herby's ENSERCII OFFERING Corp Dallas-based energy firm announced the filing of an SEC registration statement relating to the proposed offering of $100 million of convertible subordinated debentures due LTV chief tells of merits in merger proposed takeover violated federal regualtions Judge Jacob Mishler issued a preliminary injunction barring LTV from buying Grumman stock pending a trial on the antitrust question LTV said it would appeal the decision In trading Wednesday Grumman was the most active issue o'n the New York Stock Exchange falling $175 a share to $3350 At the state's hearing here Thayer declined under repeated questioning by Orestes Mihaly assistant attorney general in charge of securities to predict what LTV would do with Grumman's' non-aerospace divisions saying "We don't know enough about it" now to make a decision He said however that it was logical that a firmc would sell off nonprofitable operations Please see Merger on Page 5B contractor and the biggest employer on Long Island LTV is a Dallas-based conglomerate with a subsidiary Vought which is also a major military supplier LTV last month offered to buy 70 percent of Grumman's outstanding shares for $45 each about $20 above the market price The stock closed on the New York Exchange Tuesday at $3525 Trading was halted then after Grumman announced it intended to purchase up to 1 million of its own shares to block the takeover Thayer told the hearing that combined Grumman and Vought "would be able to compete in any major aircraft competition that would develop' While the hearing proceeded in Manhattan a federal judge in Uniondale on Long Island was being told that Grumman's efforts to counter the By JOHN SHANAHAN Associated Press NEW YORK The head of LTV Corp said Wednesday it would be best for his company to take over Grumman Corp because big corporations would "tear us up" if they continued competing separately "I know putting this thing together is the best thing for both of these companies because I know what jungle is out there" Paul Thayer LTV's chairman and chief executive officer said 'The really big companies can tear us up" Thayer testified at a hearing by the state attorney general's office held to determine whether LTV's $450-million bid contained full financial disclosure tci stockholders Grumman is the nation's fourth-largest defense i I HE SAID THAT AFTER the case inventory is completed next month the "ERA will go after the stronger ones" Of the total of 3000 cases still pending approximately 20 percent are being handled out of the Dallas office along with 256 pending reseller cases Ilanzlik said some companies are still under audit but he hopes to have the enforcement program wrapped up in the next 12 months "After that theagency will gooutof existance" HE SAID THAT AFTE inve ntory is completed n( the "ERA will go after affte3roo( th ones Of the tot pending approximately are mg handled out of office along with 256 pen( er cases I lanzlik said some corn still under audit but he ho the enforcement prograr up in the next 12 months the agency will go out of e) 1 I 11 :41 AILMA0116011k a IA I 01 A AA 4111LAA1411141AAAICA AAA-AALAAJOIA4 AAAA A A A AA AILAAAILAmt-Ak 'ALA Afitilk AAkatk4AA AA Ali di da Ak AL A -I.