The News and Observer from Raleigh, North Carolina • 31

The News and Observer Business and Farm) United Tel Stock Nonfarm Employment Rises in Southeast ATLANTA- (AP) Southeastern nonfarm employment rose by more than 9,000 jobs during June with five Southern states sharing in the improvement, according to the U.S. Labor Department's Bureau of Labor Statistics. The eight-state total of just under 12 million workers was an increase of about 250,000 over the total for June 1975, the bureau reported. Job increases in the construction, apparel, textile and food industries led the way as Switch Indicated Railroads, Labor When United Telecommunications announced this week its had more than the usual significance for thousands of United Tel board quarterly of directors dividend on had the approved company's an increase common of 2 stock, cents the in action the Support Rooney shareholders in Eastern Carolina. For many of these stockholders, the increase meant the time has come to consider converting their United Tel preferred stock into common.

When United Tel, a Kansas City company, acquired Carolina Telephone and Telegraph at Tarboro in 1969, it issued 6,865,513 shares of convertible preferred to holders of common. Each share of the preferred is convertible into one and a fourth shares of United Tel common. Currently, the preferred is paying dividends at the annual rate of $1.50. With the newest increase, the common stock's annual dividend rate will be $1.20 per share, which means one and a fourth shares will pay $1.50, exactly the same as a share of the convertible preferred. United Tel customarily increases its common stock dividend each year.

It has done so for the past 18 years and, logically, could be expected to do so again in August 1977, barring unforeseen economic developments. Since the preferred stock won't be eligible for such an increase and the common stock will, it can be expected that many holders of the preferred will convert it to common prior to next August. The company estimates there are about 10,000 holders of the convertible preferred issued in acquiring and that more than 7,000 of them live in North Carolina. The majority of these Tar Heel holders are located in the eastern part of the state, where operates. Not all of them will convert just now, in all likelihood.

Some probably will retain their preferred because payment of the preferred dividend takes precedence over payment of the common stock dividend. A United Tel official said another series of convertible preferred issued in another acquisition reached the break-even point on dividends several years ago but even now fewer than half the holders have converted despite the fact they could get higher dividends from the common. United Tel also owns United Telephone of the Carolinas, a company based in Southern Pines. That acquisition was accomplished by means other than the issuance of convertible pre ferred stock. Rise for Reynolds A first-half spurt in sales for R.J.

Reynolds Industries carried the Winston-Salem-based conglomerate several notches higher among the largest U.S. corporations. However, its ranking according to profitability declined although profits were up 14.7 per cent for the six months. The Gallagher President's Report said the nation's top 100 corporations posted a 42.6 per cent rise in profits on a 14.6 per cent gain in sales for the six months. United Technologies, a company with a plant in Raleigh, had the largest sales gains, 47.2 per cent to $2.53 billion, and a 26.8 per cent increase in profitability.

Reynolds, the only North Carolina company in the list, advanced from 43rd to 39th on a 15.8 per cent increase in sales to $2.67 billion. Reynolds dropped from 26th to 29th in profitability on a 14.7 per cent gain to $170.87 million. United Technologies' strong sales gain promoted that company from 61st to 44th in size as ranked by sales. It rose from 56th to 54th in profitability. Exxon held to top sales position with an increased of 8.2 per cent to $25.57 billion.

American Telephone Telegraph continued No. 1 in profitability on a 19 per cent increase to $1.77 billion. Hood Chalk Wiley Names in the News Promoted: Thomas W. Hood from assistant manager to manager of the Moore's Lumber and Building Materials store at 3220 Fayetteville Road here. A native of Clayton, he joined Moore's in 1972 W.B.

Chalk a Morehead City native, to assistant vice president and assistant manager of the Greenville office of Planters National Bank. He joined PNB in 1970 David L. Wiley, to assistant to the department head in the bulk power supply department in Carolina Power Light general office here. He has been with since 1973 David E. Barwick, a Fayetteville native, to correspondent banking officer, both in First Union National Bank's corporate banking division in Charlotte.

Appointed: Charles W. Freeman, formerly with Honeywell Information Systems in Waltham, named director of relations for Burlington Industries. He succeeds Butler French, who is retiring Dec. 31 after 35 years with Honored: George H. Hitchings, recently retired vice president for research of Burroughs Wellcome Research Triangle Park, named the first American to receive the Mullard Award of the Royal Society in London.

The award recognized contributions to science or technology beneficial to the United Kingdom. Company Activities Branch Wilson, parent company of Branch Banking Trust has declared a regular quarterly dividend of 15 cents a share, payable Sept. 15... PepCom Industries, Arlington, parent company of the Pepsi-Cola company here and several others in North Carolina, has increased its quarterly dividend from 11 to 15 cents a share, payable Sept. 30.

Directors of A.H. Robins Richmond pharmaceutical manufacturer, have approved an agreement to purchase the assets of ElkinsSinn Corp. (ESC) for $11 million cash and some debt assumption. ESC, based in Cherry Hill, N.J., also is a pharmaceutical manufacturer and a distributor of veterinary products Triangle Brick Rt. 4, Durham, has declared a semi-annual dividend of 11 cents a share, payable Sept.

27 Automatic Service Atlanta, a firm that originated in North Carolina, said an agreement in principle for the sale of its assets and business to a group of investors has been modified to reduce the sale price from $10.50 to $10 a share. The transaction, expected to be consummated within the next few days, still is subject to approval of Automatic's directors and shareholders. Interfinancial, Atlanta, earned 78 cents a share in the six months ended June 30, up from 50 cents a year earlier. The News and Observer, Raleigh, N. C.

Thursday, August 12, 1976 31 Free! Our latest opinion on any 3 of 1,100 widely held stocks Every Merrill Lynch research opinion points out the stock's suitability for different objectives. Intermediate and long-term buy, sell, hold recommendations. Estimated and reported earnings. Annual dividend. Industry trends BE or corporate news that may affect 0 trading.

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Nash Street, Wilson, M.C. 27893 (919) 243-3161 Merrill Lynch, 324 S. Salisbury Street, Raleigh, N.C. 27602 (919) 834-3661 1 Help Yourself! employment rose above May totals in Alabama, Georgia, Kentucky, North Carolina and Tennessee. Employment declined in Florida, Mississippi and South Carolina, the bureau said.

Textile payrolls were up 1.500 in North Carolina and 700 in South Carolina as the Southeast showed an overall monthly increase of 2,400 in the textile industry. Contract construction rose by 14,700 over the May total, but decreases were recorded in retail trade, service industries and in government employment. The average work week in the Southeast increased to 40.5 hours from 40.3 hours in May, and average hourly earnings rose three cents to $4.10. The national average was $5.15 per hour. Here are June employment figures in the eight states with comparisons to May figures: Alabama 1.18 million, up Florida 2.71 million, down Georgia 1.76 million, up Kentucky 1.07 million, up Mississippi 683,100, down North Carolina 2.05 million, up South Carolina 1.02 million, down 4,400, and Tennessee 1.52 million, up 6,800.

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Union Pacific chipped in, too, for Rooney. Its Fund for Effective Government gave him $200. Some of those who attended Rooney's fund-raiser said and in some cases his campaign records indicate that contributions came from officials of such railroads as Santa Fe, Norfolk Western, Chessie System Rock Island, Burlington Northern, Chicago North Western, St. Louis-San Francisco, Seaboard Coast Line, Southern Pacific and the bankrupt Penn Central (which sold its railroad business to the new Consolidated Rail Corp. April 1 as a result of the Rooney subcommittee legislation).

In short, at least something came from an official of almost every railroad of consequence in the nation. Lowe's 18 Lb. Capacity! Big Value! Hotpoint 2 Speed Automatic Washer Reg. $269.89 $24989 With Woodgrain SAVE $20 19" Diagonal Portable Color TV solid state for cooler operation and longer set life. Hotpoint 11.6 Cu.

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Rooney has got to be re-elected. Why else would they have shown up in such large numbers at the Pennsylvania Democrat's Washington fundraiser a couple of months ago and given the chairman of the House Commerce transportation subcommittee the one that deals almost exclusively with railroad matters at least $12,000 out of the $48,000 he has raised so far to finance his re-election campaign? Records on file at the Federal Election Commission show that so far this year the railroad industry which must come to Rooney for any legislative favors has donated at least $3,450, and railway labor has given $8,500. Increasingly, in recent years, both railroads and labor have been involved in legislative battles before the Rooney subcommittee. Rooney's Washington fundraiser he says it was his first here was held May 20 at the Federal City Club and cost his campaign committee $5,221.24. By Rooney's count, about 300 people showed up, and records show it brought in about $20,950.

A check of some of the railroad industry's Washington representatives indicates that most went. Several indicated they made $100 contributions, although their names do not appear on Rooney's reports to the Federal Election Commission. FEC rules require separate listings only from those whose contributions exceed $100, although in practice some congressmen list individual $100 contributions. Thus, a actual railroad industry contributions may be more than Rooney's records indicate. Further, Rooney says not everybody paid the full $100-a- ticket price.

Among the guests was a contingent from the Southern Railway, including its board chairman, W. Graham Claytor and its top lawyer, Arnold B. McKinnon. The company, which doesn't operate in Pennsylvania, bought five tickets. Southern was one of the key forces behind the legislation supervised by Rooney's subcommittee which restruc- Abercrombie Gets Time To Recoup NEW YORK (UPI) Abercrombie and Fitch, one of the nation's best-known sportinggoods firms, has been granted time to retrench and improve its financial situation.

In papers filed in U.S. District Court, Abercrombie said that although it is solvent, recession and overexpansion have created a -flow crisis which makes it unable to pay its debts immediately. The nationwide chain, whose sales run to $25 million a year, said it has liabilities of $6,202,488 and assets of $8,229,753. The court papers said the assets are not in liquid funds. The papers were filed under Chapter 11 of the Bankruptcy Act, which will hold off Abercrombie's credits for at least 30 days while the nine-store chain revamps its finances.

That period can be extended indefinitely at the discretion of U.S. District Judge Stanley Lesser until Abercrombie ei ther regains its stability or de cides to liquidate its assets. Abercrombie said the recession created some of its financial problems, but acknowledged it had opened some suburban stores which did not produce expected revenues. This forced the chain to borrow at increasingly higher interest rates, and it was often faced by balking vendors. Lot of Milk If all the fluid milk soldi in the United States in 1975 was poured into quart milk bottles, the bottles would stretch some 1,264,200 miles long.

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