The Peninsula Times Tribune from Palo Alto, California • 9

yvwwwHrw RTT tt1-V-V PALO ALTO TIMES, PALO ALTO, FRIDAY, JULY 6, 19739 Intel Corp. lists profits account interest can go up WASHINGTON (AP) The gov eminent hac increased the rate of interest both banks and savings and loan associations may pay on passbook savings, one of the most popular methods of savings used by American families. Revenues of $23.5 million with earnings of $2.5 million were reported today by Intel Santa Clara, for the first six months of 1973. This compared with revenues of $8.4 million and earnings jof $1 million for the first six months of 1972.. Intel's earnings per share for the period were 60 cents, up from 26 cents; in last years first half.

The figures in. dude, the results of Microma a wholly owned subsidiary which manufactures electronic watches. Employment grew from 1,000 to more than 1,700 in the first six months. President Robert Noyce said -the backlog for company products continues to grow. We expect that the demand for Intel's semiconductor mem- ory products will remain high throughout this year and that we will continue to enjoy unusually high margins while the present capacity-demand market conditions prevail.

How long this situation continues is strongly dependent on the overall economic picture and is difficult for us to foresee, he added. Intel has a new Livermore plant which is processing semiconductor wafer materials. Glendale plans branch Research institute's future home The Electric Power Research Institute has leased this building at 3412 Hillview Drive in the Stanford Industrial Park os a headquarters. Associates at new location Glendale Federal Savings and Loan Association of Glendale, the fifth largest savings and loan association in the U.S. has received approval to.

establish a branch office in Palo Alto. President D. A. Clarke said the office will be the organization's first in the Bay Area. The office is to be located near the Dillingham Financial Center in the vicinity of El Camino Real and Page Mill Road.

An exact location hasn't been' chosen. Clarke said it will be open early in 1974. Glendale Federal, with 34 offices location approved, has the largest branch system of any federally-chartered savings and loan, he said. Its branches are centered in six Southern California counties extending from San Diego to Santa Barbara. The association has assets of $1.7 billion.

Electric research HQ in Palo Alto At the same time Thursday, an in-. crease in the maximum permissible interest rate on government-backed home mortgages was announced, to take effect later this month. The old interest ceiling for banks passbook savings was 416. The increase? to 5, approved by the Federal Reserve Board and the Federal Deposit Insurance is retroactive to last Sunday, July For many savers, the passbook boosts will be one of the few direct benefits they will receive from the trend this year toward higher interest rates throughout the economy. For example, an account with $2,000 in it for a year would now produce about $100 in annual interest, compared with the $80 under the previous ceiling.

The higher interest rates stem from growing demand for loans, especially by business, coupled with efforts by the government to slow the rapid business expansion. The Housing and Urban Development Department (HUD) Thursday announced the increase in the maximum allowable interest rate on mortgages insured by the Federal Housing Administration (FHA) and guaranteed by the Veterans Admirration. The increase will be to 7 from the present 7. It will take effect when Congress extends the power of the department to insure and guarantee home mortgages, possibly next week. In approving the new interest ceiling on passbook- savings for its member banks, the Federal Reserve Board said the purpose was two-fold: To provide a more equitable rate of interest for savers.

To help banks compete more effectively for the deposits of consumers who might be attracted to other investments offering higher rates. The Federal Deposit Insurance Corp. increased to 5 the interest ceiling for passbook accounts at insured state-chartered banks that are not members of the Federal Reserve System. The Federal Home Loan Bank Board announced an increase from 5 to 5Yt in the ceiling on passbook accounts at federally insured savings and loan associations. In addition, the interest rates that banks and savings and loan associations can pay for various kinds of cer-.

tificates of deposit were increased by amounts ranging from V4 to 44. The institute has 30 employes now, but plans to increase to 300 in the next year, Saxe said. It chose Palo Alto as headquarters after a site survey was conducted earlier this year. Factors considered were the professional interest an area would hold for research-oriented staff members access to other research organizations, and attractive living conditions, according to Saxe. He expects that about two-thirds of the staff will consist of research engineers and scientists, with the remainder in administration and support duties.

We will have a broad spectrum of engineers," he. He noted that since both present and future ways of generating power would be studied, the staff might include nuclear physicists, metallurgists, electrical and chemical engineers. Navy Associates of America Realtors, has moved its headquarters to 625 Ellis St, Mountain View. The firm was founded in 1967 by a group of retired naval officers who offices in the Stanford Financial Square, Palo Alto. Services are geared primarily to a clientele tha't is registered with them.

About 62 of the business is done with active duty military personnel, with the remainder distributed among 17 retired military people and 21 civilians. Three retired Navy commanders are principal officers and members of the board. They are Clay Risley, president and board chairman; Bill Ambrosio, vice president and and Vance Adler, secretary. The firm provides services in real estate, in group purchasing of such equipment as automobiles and furniture, and investments. They are members of local and state real estate boards.

Sperry Rand acquires ISS ceive proposals from other organiza- tions such as universities or electrical manufacturers to perform it. It would write contracts with those proposing the the institute staff would administer and evalute the work as it is performed. Member organizations will provide the funds for contracts. Saxe said the budget in 1974 is expected to be $100 million, up from $36 million this year. Next year will be the institute's first foil year of operation, he pointed out Staff members at the administrative level include Chauncey Starr president, who resigned as dean of the School of Engineering of UCLA to-take the post, and Richard El Balz-hiser, director of non-nuclear power generation, formerly assistant director of the office of Science Technology at the White House.

Saxe, administration director, was previously vice president for business management with the Atomics International Division, Rockwell International. Some of the utilities Arho belong to the institute include Pacific Gas Electric, Southern California Edison, and the Los Angeles Department of Water and Power. The institute also has non-utility members such as the U.S. Department of the Interior. By MARGE SPEIDEL A newly organized research institute devoted to the electric power industry, with a next years budget of $100 million, will make Palo Alto its national headquarters, an official said Thursday.

David Saxe, director of administration for the Electric Power Research Institute, said it has leased 63,000 square feet of space at 3412 Hillview Ave. in the Stanford Industrial Park. The building is one of two vacated by the Applied Technology division of Itek which relocated to Sunnyvale. The power research institute, formed about a year ago, is currently based in Los Angeles. It plans to begin, moving to Palo Alto in mid-August.

The nonprofit organization is supported by electric utilities and includes among its organizing members large, publicly owned utilities, rural cooperatives, and privately owned utilities. Saxe said it was formed when the utilities decided that research was needed on ways of generating electricity reliably over a long period of time and making sure an ample amount of electricity is available in years ahead in an environmentally acceptable way." It researches power transmission and distribution as well as generation, he said. The Palo Alto operation won't be a laboratory, but will develop plans on what research should be done, and re- Sperry Rand Corp. plans to acquire Information Storage Systems (ISS) of Cupertino from Itel Corp. for about $30 million in cash, the companies announced Thursday.

Iss has 1,800 employes and is located in a plant at 10435 N. Cupertino. The cash purchase price would include initial payments of about $23 million to Itel, plus payments of about $7 million, depending on ISS sales to customers other than Sperry, between now and the ehd of 1975. ISS manufactures direct access memory systems for computers. It was founded in 1967 and sold to Itel Corp.

in 1971 for a reported $67 million in stock. The transaction is to become effective July 31, if various conditions are fulfilled. New chairman named Del Webb Hotels names Jess W. Hinkle president LAS VEGAS, Nev. (AP) Jess W.

Hinkle has been named president of Del Webb Hotels International and will assume his new duties immediately, the Del E. Webb Corp. has SAN CLEMENTE (UPI)-President Nixon has selected Ray D. Garrett, 52, a Chicago securities lawyer, to head the Securities and Exchange Commission, it was learned yesterday. ISS will operate as a wholly owned subsidiary of Sperry Rand's Univac Division, headquartered in Blue Bell, Pa.

EVERYTHING TO' BUILD ANYTHING For extra dollars, lots of fun, put 'together a garage sale. Advertise it with a Classified Want Ad. Dial 321-0400 or 245-2990. Peter S. Redfield, president of Itel, said Sperry's purchase of ISS strengthens Itel's financial resources, enlarging its finacial base for leasing data products.

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