Oakland Tribune from Oakland, California • 13

The Tribune Tuesday, June 11, 1985 Section 1 1 DOW JONES AVERAGES Open. High Low Close Chg 30 tod 1314.29 .13228 1307.24 1311.44 1.02 20Trn 652.08.82 64114 5179034 IS Utt 163.42 16430 12.39 117-031 5 Stic 54239 5400 5310 544.40 037 INDEX High Low Clot 'Chg. 400 Indust 209.41 20030 20937 032 20 Tronspt 1732 164.44 1737 035 40 Utilities. 14.94 037 04.49 0.45. 40Financl 23.27- 23.11 2119 0.QS 500 Stocks -10930 10012 10931 Q.17 2.02 DIGEST restrictions Blue-cHips surge in last-minute trading NEW YORK Stock prices generally fell as trading volumcjumbled to a two-week low.Dnly blue chip issues Dow Jones averages escaped from.

the. consolidation, that began late last week. The Dow Jones industrial average gained 2.02 points, to 1318.44.after fall-, ing 10.86 points on Friday. The index had been lower Jwn. Hew far Stick iduntt for much of.

Monday's session. Volume on Ihe NYSE came to 87.94 million shares down' from 99.63 million Friday: Nationwide turnover in NYSE-listed issrfSs, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 107.28 million shares. 'Meanwhile bond prices resumed their recent ad- vancc yesterday, bouncing back from two consecutive declines. Yields rise on short-term Treasury bills WASHINGTON Yifelds on short-term Treasury securities rose in yesterday's auctions, reversing a five-week trend of falling interest -rates. The Treasury Department sold (7 billion in three-month bills at an average discount rate of 7.21 percenUtip from 7.03 percent last week.

Another $7 billion was sold in six-month bills at an. average rate -of -f. 35 percent, lip.from 7.16- percent last fcSck. The new Treasury bill discount rates understate the actual return to investors 7.45 percent for three-month bills and 7.74 percent for six? month bills. Bank Bank i National Banking Law Mi UawJ El BanfcJnfLawt tow 1 IMmM Km not yn undue MaraM banking MtsrkmraiKiid Mck Mooing Mints fcwoiny Mar owing bMha iron opaciie group olo1 oi McattorraguMlMnlunt.

VMM aUm MM banking. -L- tie New York Times Sourer Mm Amwu Ban ot Boma Chart shows the changing face of American banking. Supreme Court approves By Clift Pfetachet The Tribune Publishers of investment newsletters have been freed from regulation by the Securrties-and Exchange Commission under alandmark ruling by the U.S. Supreme Court yesterday. Newsletter publishers have long sought equal treatment with newspapers of general circulation whose investment writers often cover the same ipformatiquirat are not required to register with the SEC.

-It's a great day for Freedom of the Press," said Glen King Florida-based chairman of the Freedom of the Press Committee of the 850-member Newsletter Association. a trade organization. "It ends 'tlie SECs reign of terror over newsletters' This is the great- est day of my life, asserted Howard a great cay Ruff, publisher of Pleasanton-based Financial Success Report, whose 125,000 plus subscribers make it the most widely-circulated newsletter in the country. It's a fantastic victory, a great triumph over the SEC. said James Dines of Belvedere, a newsletter industry pioneer and publisher of The Dines Letter.

can now speak out without being harassed by the government. 'Die Supreme Court ruled that the SEC could not ban the newsletter of Christopher Lowe of Jersey City," N.J., aftr the SEC stripped Lowe of his license as financial adviser. Lowe lost his license in 1981 after he misappropriated client funds and failed to amend his SEC. registration statement tq disclose his criminal 'record. Lowe continued to publish two newsletter? in defiance of the SEC.

-J The U.S. Distribt Court in New York City refused to enjoin the publication, but the '2nd U.S. Circuit Court of Appeals last year issued an injunction- against Lowe. On an 8-0 vote yesterday, the Supreme Court said Lowe could not be. barred from publishing generalized investment newsletters because of previous misdeeds and said the court was wrong when it ruled that the SEC's "prior restraint on such publications by Lowe See Page B-8 By Rebecca Smith The Tribune The Supreme Court ruled yesterday that "states mgy riband together to form regional banking comjiacts to keep big banks out.

Two' Eastern banks had challenged the recent practice of forming multi-state net works in an effort to exclude big money Center banks mostly based in California, Texas and New York. -The high court ruled that states may exclude big banks from outside their regions. Many states alre afraid that the largest financial institutions will overwhelm their smaller local, banks, if given an opportunity; Retail, banking, with its all-important deposit-taking function, is at the heart of banks efforts ttr establish a pr esencelfrot her states. Batiks already arc gllowed to cross state lines to establish mortgage companies, finance companies, leasing companies and limited-service banks. But they generally cannot operate full-service banks.

The ruling is a particular blow to banks in New York that have been itching to egpand their clout, biij is less troublesome to California banks. It was Citicorp of New York and Northeast-. Bancorp of New Haven, that challenged the exclusionary lavys of Connecticut and Mas-: sachusctts in- the Supreme Court case. Big California banks are not as threatened by regional compacts as New York banks because federations are -strongest in regions where California banks do little business. For example, four southeastern states South Carolina and" North Carolina have formed a compact to bar outsiders.

It is of limited interest to California banks. Local bank stock analysts and bankers took news of the long-anticipated ruling calmly. We support the. idea that there should be regional compacts for up five years, after which there should be nationwide interstate banking." said Irwin Gubman. senior vice president and associate general counsel for Bank-America Corp.

BAXkIg, Page B-8 -Dollar edges higher in U.S.; gold prices fall NEW YORK The dollar edged higher against most other major currencies in U.S trading yesterday after posting a strong advance in Europe. The pound fell to $1.2615 from $1.2705 last Friday. (For complete currency see Foreign Exchange, Page B-5.) Gold prices' fell moderately worldwide. Republic National Bank quoted gold at $314 an ounce, "down 25 cents from Friday's, late bid! (For silver and gold quotations On New York's Futures, Page B-3.) Chrysler chiefs advice on tax reform WASHINGTON Chrysler Corp. Chairmafi Lee lacocca said yesterday that Washington7 is fid dling with tax reform" when it should be worrying about the more serious problems of international trade and the 'budget deficit.

Ia'cocca said he is afraid tax simplification efforts will tic up this whole, town all year and nothing will be done about the twin scandals of our time the budget and trade deficits." Rome happens to be Lce lacocca burning right now," lacocca said in a speech to members of the Financial Analysts Federation, and we're fiddling with the tax code when we should be carrying water to the fire," lacocca said. Tie AMeociMtat Pnm Chevrolets Robert Burger stands beside a NUMI Nova. Production speed-up in Fremont Kaiser Centers Le Mirabeau closes June 30 By Roger Rapoport The Tribune Kaiser Center Inc.s Le Mirabeau restaurant is closing June 30 after 17 years. Forty five workers are expected to losd'their jobs unless the expensive French restaurant is pur? chased or taken over by a new management company. Chef-nian-ager Michael Rcch said the decision, announced to Employees yes-x lerday, was made after owner, Kai-' ser Center decided to end, its, -subsidy of the restaurant.

Rech, who works for TDS, a management company based iiv Redwood City, said the Kaiser subsidy, which had run. as high as a year in the past, was down to $100,000 a year. The res-' taurant was doing a lot better be-' cause we improved, the food and service. But Kaiser decided it had tp make the budget cut. Although Kaiser officials confirmed the shutdown, they declined to elaborate.

Phyllis Johnson, business agent for Local 28. of the Hotel Employees, and Restaurant Employees Un-. -ion in Oakland, thinks Le Mirabeau may have suffered recently at the hands of a new the members-orily Lakeview Club atop See KAISER, Page B-8 The perilous road to high-tech offices By Patricia Radio The Tribune SAN FRANCISCO People who sell computerized office equipment need to be social psychologists to insure that a changeover -to an automated "Wf ice is 'successful, Fortune-Magazine editor Bro Uttal told a gathering of telecommunications consultants yesterday at the Hyatt Union Square. yvhose half-hour talk was titled Jeopardies of Increased Automation," said new technology is worse than useless unless it's intelligently applied because people may. be unhappy with the changes or they may be.

unable lo.use the new gadgets effectively. Uttal is technology editor for Fortune's West Coast bureau in Menlo Park. J- Speaking at a seminar sponsored by the Society of Telecommunications Consultants, he said those who design new office systems must pay close attention totooth tHe technical needs of their clients and office politics. One reason, hesaid, is because word processors; computer i Jls add efectronic phone systems (Jdmartd a higher lever of skill. Than typewriters or adding I machines.

-In, an office, that's newly converted to high-tec(i, workers -rwho take over the new task, may suddenly outrank their On, the other many sec- See OFFICES, Page B-8 I i By Jamaa Risen Lee Angekee Tlmee DETROIT General Motors, has New United Motor Manufacturing, GM's joint venture with Toyota, to increase its Fremont auto- production schedule for 1985 by nearly 35 percent in order to get the venture's new small cars into the hands of all 5,200 Chevrolet dealers-before' the' end of year, Chevrolet officials said Chevrolet General Manager Robert D. Burger said' at a Detroit press conference that the GM division had been disappointed by the joint venture's initial plan to produce just 43,000 Nova models this year at its plant in But after GM pressure, the joint venture now expects to build.58.00Q units this yedr, and Chevrolet has moved up its nationwide introduction and distribbtion of the Nova early 1986 to' September or October 1985, Burger added. When the Fremont plant reaches full production, it, will employ about 2,500 workers building about 250,000 carsipfer The plant-currently employs 1,400. AUxTyesterday, Burger said 70 perfeent of the parts and material used in the. Nova including the engine and power-train will -be imported from Japan.

GM officials have repeatedly promised that the car will' have 50 domestic content, but officials said yesterday that the 50 percent level will only be reached 1 by including the value of American labor used in the assembly, process at Fremont Briefly In the Bay Area Crown Zellerbach said yesterday that at its annual meeting 77 percent of shares voting voted for the management slate of nominees for the board of directors. Financier James M. Goldsmith, who had been trying to take oyer the company and has already received a seat on the board under a settlement pact: had sufficient votes to elect himself to the board. American President Companies Ltd.s subsidiary, American President Intermodal of has startecPHs eighth, cross-country. train.

Thittrain will serve the L.A.- Chicago corridor Around the state Energy Factors, of San Diego, is building a $26.5 million, 16.5 megawatt electrical generation facility norA) of Sacraihento to be fueled 1 with biomass such as wood waste. AM electricity goes to Thirty-three executives at Los Angcles-area public companies pulled down more than $1 million in salary, bonus and stock options during 1984, Recording to the Lbs Angeles Business fomilrTV" paid, with a 1984 paycheck of and $8:995,981 wojth'bf exercised stock' options was Leonard Cohen, president and chief operating officer of National Medical Enterprises AshtonTate, of Cul- vcrCity, a' computer software-firm will provide its fiscaf 1985 annual report oh a personal computer diskette. -Around the nation The Sevbn-Up. Bottling of Flint, Mich, has become the first major soft drink bottling franchise in the United States to be owned 100 percent by black businessmen Seagram Co. the world's leading distiller, said yesterday its profit plunged 72.7 percent in the.

firsjquarter Of itrf fiscal year, reflecting extraordinary, declines from its interest in the giant Dii Pont Co. Profit also fell. from the sale of wine and 'spirits. Around the world Douglas Aircraft two months ago announced an agreement to sell up to $1 billion in airliners to China, said Monday it has joined forces with engineering giant Fluor Corp. to look into revamping Chiba's airports.

By Thu Tribune tied and new eerricee inriiin Jifly r- Ml turns am gratified and I feel vindicated by DOT'S-, decision, Ioahn said in a telephone interview after the decision Was Icahn and an investor groupled hy him have been buying TWA stock for some months and currently own more than 32.77 percept of the TWA has sued him both; in federal court and Missouri state in -St- Louis, where much of its operations are located. A federal judge already has declined to intervene, and litigation in Missouri is still pending. has said that if Icahn acquires the airline, he. plans, to sell off its planes and international routes to 'the highest, bidders. In court testimony and 'in an appearance last week before a committee of the House the entreprerfeur has vehemently, denied that.

By Robert Dafios Loe Angekee Tlmee In yet another setback for Trans Airlines, the Department of Transportation yesterday, turned dowp a request-by the carrier to. -ekamine the fitness of financier Carl C. Icahq to operate an airline. in deifying the airline's application to "determine the continuing fitness of TWA to operate should Carl C. Icahn acquire control pf TWA, the said-that it did not want.to be drawn into takeover attempts or other managemenfdisputeS as a matter of course or to otherwise substitute unnecessary government regula- tion for the competitive pressures of the marke-KDlaAi -V INSIDE NYSE toekTTtT- -v- Financier Carl Icalu.

Gratified and 'vindtbated' OTC stocks. I "AllEX'sIocEs' M' -V".