The Modesto Bee from Modesto, California • 42

busines d-d Thursday December 27 1979 The Modesto Bee War quote sends gold past $500 guide William A Doyle metals" were spiraling because "there were just no sellers said a trader on the Commodi- tv Exchange floor "The Iran situation is continuing to push up the said another trader "Any time you get a comment in which somebody calls for military action going to be tied to precious metals said an analyst Tese said observers also were concerned that moderate Organization of Petroleum Exporting Countries members soon might boost oil prices by $2-a barrel after announcing $6-a -barrel price hikes earlier this month locking for gold in the $600 by the end of January" said Tese whose firm last December forecast gold would be in the $460- to $52G-an-ounce range by the end of 1979 The Associated Press NEW YORK The price of gold shot past $500 an ounce for the first time ever Wednesday as worried traders headed for cover after Iranian leader Ayatollah Ruhollah Khomeini said the current US -Iran military conflict could erupt into "military Other precious prices gained along with gold while the US dollar was generally lower in late foreign exchange trading here The price of gold now is more than double its $226375-an-ounce London close at the end of 1978 and nearly $400 ahead of its $13450-an-ounce close at the end of 1976 previous record high was $496 set during the European trading day Dec 20 With gold markets in Zurich and London remaining closed for the Christmas holiday Wednesday attention was focused on New York where gold for December delivery soared as high as $510 an ounce on the Com modity Exchange Inc before closing at $50630 The close was up $1930 from Friday the last trading day before the holiday break Silver also gained on the exchange rising $115 to $2550 an ounce while platinum jumped $33 on the New York Mercantile Exchange to $698 an ounce At Republic National Bank of New York gold crossed the $500 barrier about noon EST and closed at $502 On Monday bullion dealers in New York were selling gold for $486 "Gold had a fairly strong close in New York last Friday and everybody was buying" when US markets reopened Wednesday morning said Vincent Tese a partner in the commodities house of James Sinclair A Co While buying demand was heavy analyst Steven Chronowitz af Smith Barney Harris Upham Co Inc cited "a substantial shift of oil money into precious More variable interest? Savings bond confusion QI recently purchased stocks at South African gold mining companies But instead of receiving the actual certificates for these stocks I received American Depositary Receipts (ADRs) from a New York bank Is this ADR arrangement mandatory? Is there some way I can obtain the actual stock certificates? What are the advantages and disadvantages of ADRs versus the actual stock certificates? A not to hold those stocks in ADR form But it is sensible If you are determined to do so you can surrender your ADRs to the bank that issued them request that they be canceled and that the certificates for the underlying shares be issued to you But advise against that move ADRs make it easy to buy hold and sell stocks of a number of foreign countries in the United States Banks which issue ADRs hold the certificates for the actual shares and handle such things as sending dividends annual reports annual meeting notices and subscription rights to ADR holders The banks pay the dividends promptly by checks payable in US currency When you hold foreign stocks directly the dividend checks payable in foreign currency often take a long time to reach you So do annual reports and such Also many foreign stock certificates are in form" meaning that you have to clip coupons to collect dividends Except for Canadian stocks ADRs are much better than actual stock certificates for US residents The only disadvantage is a small fee $3 to $5 charged by the depositary bank when you buy and sell ADRs Is it possible for five friends to set up a mini-mutual in order to pool their money and buy stocks If so bow can we do it? A You can do what you have in mind But rather than set up a small mutual fund my suggestion is that you organize an investment club That would be less complicated and less expensive For information on how to do it write the National Association of Investment Clubs 1515 East Eleven Mile Road Royal Oak Mich Doyle welcomes written questions but he mil be able to provide answers only through the column CoovrigOt King Features Syndicate The New York Times WASHINGTON The agency that regulates federally chartered savings and loan associations will propose a major change in regulations designed both to strengthen the financial structure of mortgage lenders and to protect home buyers from being locked in at high interest rates over 25- and 30-year mortgage periods lhe Federal Home Loan Bank Board's proposal to give lenders greater latitude in offering so-called variable-rate mortgages those with interest rates that rise or fall according to credit market conditions represents another government effort to cushion what is expected to be a sharp fall in mortgage lending and homebuilding activity next year The new regulations which are expected to be submitted for public comment after a meeting of the Home Loan Bank Board today would widen the amount by which rates could rise or fall over the life of the mortgage The present limit is 2 percentage points and the proposed regulation would make it 5 percent The variable rates while giving the home buyer the benefit of lower costs if interest rates fall as many analysts now expect they will especially if a recession strikes next year are also seen as helping lenders Many savings and loan associations complain that they cannot afford to carry their present portfolio of mortgages at relatively low mterst rates that prevailed in the past and at the same time pay for the deposits they need to make new housing loans Should mortgage money dry up housing activity would fall precipitiousiy aggravating recession conditions on the coming election year The Home Loan Bank Board's initiative would help the savings and loan associations strengthen their financial structure by matching the maturity of their home loans roughly with the maturity of new money market certificates also pegged to going credit market rates Mart shows token gains The New York Times NEW YORK Precious metal stocks and recently depressed gambling issues shared honors as Wall Street's best-acting groups Wednesday Stock prices in general showed token gains in light trading on the day following Christmas Meanwhile for the second session in a row takeover developments produced another large setback in a stock The Loctite Corp trading for the first time since last Thursday tumbled TLj points to 32 Late last week Loctite said it had decided that it was in the best interests of shareholders if the company remained independent This decision followed a merger review undertaken on behalf of Loctite by the investment firm of Goldman Sachs Co Loctite manufactures adhesives sealants and other chemical specialties Earlier this year Loctite shares sold at a near-record price of 45 This compares with a low of 7 in early 1975 On Monday the VSI Corp plunged 9Vs points after the Emhart Corp terminated its offer to buy about 34 percent of VSI shares controlled by a trust VSI which produces items for the piastics and aerospace industries added Aj to 30 Wednesday The Dow Jones industrial average slipped 102 points to 83814 However advancing stocks narrowly outnumbered declining issues on the Big Board Also small gams were posted by such other leading indicators as Standard Poor's 500-stock index and the American Stock Exchange's market value index Caesars World the Big Board volume leader rose lVj to 19V4 while Bally Manufacturing also climbing 1 Lj points finished at 37t The Class A shares of Resorts International climbed 15-g to on the Amex Merrill Lynch's research department issuing its initial opinion on this casino operator rated it as "OK to Buy" for both the intermediate term and the long term Salinas TV plans KLOC will sell radio station A sale price of $1 million has been set for KLOC Radio including the building housing the station and 20 surrounding acres of land at 2842 Iowa Ave Smith a former country singer band leader and longtime radio broadcaster here formed KLOC Broadcasting and established Radio Station KLOC in 1963 The firm expanded to television in 1966 when it obtained FCC authority to build KLOC-TV After several lean years for the TV station its format was changed to Spanish and religious programming which Smith said has been highly successful Last summer power was boosted to 5 million watts making it the most powerful television station in Northern California Smith said the format for the new Salinas station also will be Spanish oriented with inspirational programming in the morning hours He pointed out about 40 percent of the population of the Salinas Valley is of Mexican descent The KLOC Broadcasting Co of Modesto has obtained Federal Communication Commission permission to establish a new television station in Salinas But to get the FCC approval the firm had to agree to sell Radio Station KLOC here and thus has placed the station on the market according to Chester Smith KLOC Broadcasting president hate to sell the radio station" said Smith "but we have to because of the '100-mile rule' We were told to sell either the radio station or Television Station KLOC and we certainly don't want to sell the television station (Channel 19)" Smith said construction will begin soon on the new television station KCBA Channel 35 and he expects it to be on the air by midsummer serving the Salinas-Monterey area "We think it will do very well because Salinas needs another TV station" he said At present there is one station there Women get KOVR buyers' pledge tive action policy that the McClatchy organization has with NOW and we look forward to a constructive relationship with all interested groups of Henderson said ADRs sensible not required Owners of US Savings Bonds who have been confused by such things as interest rates and maturities are in for another hatful of unhappy surprises Those regulation-writing bureaucrats in the US Treasury Department have complicated things still further this time to a point where even an A student in mathematics and bond covenants may have trouble figuring them out What should have been a simple announcement from the Treasury that savings bond interest rates are being increased turned into a nightmare Instead of raising the interest on all savings bonds from 65 to 7 percent the folks at Treasury decreed that the higher rate still disgracefully low by current money market standards will apply only to some bonds The first to get what the Treasury calls a 05 percent "bonus" will be the new series EE bonds which go on sale in 1980 Like the familiar series bonds the EEs will be bought at one price and redeemed at a higher price The difference between the purchase price and the higher redemption price is the interest which has accrued But the EEs will only build up interest at 7 percent if they are held for at least 1 1 years to their scheduled maturity dates And the tens of millions of Americans who now own bonds will get their alleged "bonus" only if they hold their bonds for years from the date of the first semiannual interest period that begins on or after Jan 1 1980 That's a quote from the Treasury Department's confusing release Because of complicated regulations previously built into the US Savings Bond program this means no bond will collect 7 percent if it is cashed or reaches final maturity before January 1991 in some cases May 1991 Let hope we all live that long The kicker here is that many bonds will reach their final maturities and stop accruing interest long before 1991 Because the Treasury has refused to gram another "extended to older bonds the earliest Es will begin to mature in May 1981 That Treasury tactic was the unkindest cut of all to long-term and loyal bond owners who planned to hold their bonds and start redeeming them after retirement when they will be in iower income tax brackets The federal income tax on accrued bond interest can be deferred until the bonds are redeemed or reach final maturity Robert Carswell deputy secretary of the US Treasury admitted to this column that the motive behind the refusal to grant further bond extended maturities was "just taxes strictly a federal tax collection thing because Savings Bond interest is not subject to state and local income taxes So much for and EE bonds some of which will eventually get percent Series bonds which have been sold since June 1952 and the new HH bonds which will go on sale in January 1980 received no interest rate hike in the Treasury's latest dictum Interest on those bonds wiil continue to be paid by checK every six months at a maximum annual rate of 65 percent Considering the much higher rates available elsewhere it's an amazement that these bonds attract any buyers Coovrigfif ew Enterorises Inc Continued Zemtrift ZeroCo 4 03-W -Zorn i oc 80 NYSE Arise PL I I7- SCPS T7 175-Ahtco AC 28H WiftrR B0 11-MWvrW 4 12- 66 234 MxxfP $8 AFohvttl 16C 25s WorJAar 6 3 Wriqt 2 aga 75-rffurlfzr 8ri Wvlam 30 WvteLOS00 MV- Afyly 6w- Outlet Broadcasting Co the Providence RI firm which is in the process of acquiring KOVR -TV has agreed to give women prominent attention in future programming Outlet president David Henderson said Wednesday his company has reached agreements with four and two minority organizations and the groups are withdrawing plans to challenge the sale The company is buying the station from McClatchy Broadcasting for $65 million subject to approval of the Federal Communications Commission Following two days of negotiations Henderson said the company reached agreements with Stanislaus Stockton and Sacramento chapters of the National Organization for Women the San Joaquin Commission on the Status of Women in which Outlet has agreed: To provide opportunities for more women in management and staff Interview more women in identifying community issues in meeting FCC licensing rquirements Place more women in prominent roles on the air Address more women's issues on reguiarly scheduled shows Create a women advisory council to meet quarterly with Outlet management to review the station women's programming efforts Henderson said the record for affirmative action "speaks for itself and that the organizations' plans to object to the sale were never viewed as a tnreat "We have every intention of adhering to the affirma Xerox 2 xTRa Yates ZaieCo ZaoaM ZavreCo BUDGET RENTACAR 1 2 2 McHenry 577 -1667 LATEST T-BILL RATES Some Rate Changes Pacific Telephone Customers On December Is 1979 the California Public Utihnes Commission authorized changes in the wav Pacific Telephone charges for some of its services These increases will go into effect Januar 7 1980 Kev Telephone Systems There have been changes in the pricing of Kev Telephone equipment Certain charges have been increased The avenge Kev Telephone system monthly rate will increase approximately 9 Installation and Service Connection Charges The charge tor vwnng a customer locum -n tor telephone installation or rearrange-menrs wi increase from 5 CO to Sc 00 The charge for the work done in our telephone central office to connect a telephone line or trunk will increase from $8 00 to $900 Intrastate Long Distance Rates Intrastate Long Distance rates will increa'e For non-com telephones the first minute increase 1 cent calls between 40 and 1 50 miles in the day rate period i Mundav-Fndav 800 a to 5:00 pm except Holiday- listed in your telephone directory) The additional minute rate of all classes of cans (atm and non-com I will increase cent for calls between 40 and I miles during the day rate period here is a discount ter the evening rate 1 5 00 pm to 11:00 pm) and a 6C discount for night 1 1 I CC to a I The 6C discount applies all day Saturday and Sunday From com telephones the initial 3 minute rare period charge will increase tor calls over 20 miles in increments of 5 cents to 50 cenrs The amount of increase will depend upon the distance of the call lease call vour local telephone business tiCc ir have anv guesrions The number is at the bottom of vour telephone bill (g) Pacific Telephone LEASING NOW SAVES DOLLARS! EFFECTIVE DATES Dec 271979 to Jan 2 19M nM AO ANNUALIZED I 70 EFFECTIVE FOR BUSINESS PURPOSES: ANNUAL RATE LARGE SELECTION IN STOCK! Laos now and receive your year end Investment Tax Credit through Central Valley Leases Inc Plus apply your Chrysler Corporation rebate when you lease a Plymouth Volare Chrysler Cordoba New Yorker Le Baron Dodge Truck or Van through December 1979 5 0 GOO minimum depov 6 moot- rm 'E? ec annual ed assumes sce 'ae for 2 are subec? chance renewal Federal eguariori reou-re a sobstan go nreresr penc ec Hdr awa1 and proriib1- compoLrciirvo STANISLAUS COUNTY'S ONLY LOCALLY OWNED SA VINGS A LOAN ASSOCIATION New shop sells plants birds Creatures a plant and bird store has opened at 409 Burney St The shop owned by Eldon and Ruby Larson carries a broad line of house plants and planters pius canaries parakeets finches and exotic birds Larson formerly of Palmdale said he recently-moved to Modesto to marry his college sweetheart of 34 years ago I found out Ruby was single I called her and we got married three months ago" Larson said Before moving to Modesto Larson was employed by the University erf California at Los Angeles where be was responsible for taking care of a wide variety of animals In addition to birds and plants the shop carries an assortment of accessories Most holiday calls Modesto residents placed a record 17608 longdistance calls during the Christmas holiday There were 15 900 long-distance calls on Christmas last year and this year about 16000 were expected said Francisco de la Cruz Modesto manager for Pacific Telephone A Telegraph However he said no undue operating problems were caused by the additional calls "We were staffed to meet the load he said RADY FOR IMMEDIATE 0EUVBT WE LEASE ALL MAXES A MODELS CARS TRUCKS VANS! SB ENTRAL TALLEY LEASES i Man Office 623 St Modests 5 1-030 Iraadi Office: 3920 Geer Read Turlock 667 1273 ASK FOR DICK MINKKIMIN LEASE MANAGER MODESTO 526-3300 1117 10THST ST I.