Detroit Free Press from Detroit, Michigan • Page 35

9-C DETROIT FREE PRESS Monday, June 21, 76 Persuasion Worked on Belt-Wary Drivers the ticker Unlike the present buzzer, which continue for only eight seconds after the engine is started, a light and buzzer on the interim device persist until the belts are fastened. And the; driver who wants to thwart the system by buckling the belts-" behind him can do so but a sequential mechanism forces him I to do it every time he starts the engine. It is possible to disarm this device just as It was the now discredited interlock system, but the survey results indicated' only about one in five drivers did so. Its 70 percent usage rate as indicated In the survey "Is another indication that with only a little persuasion people are ready to use their belts in quite high numbers," Kennedy said. The survey also tabulated the usage of the interlock device, which prevented a car from starting until the belts were buckled.

That caused such a grassroots uproar that Congress con the present system, which became standard late In the 1975 model year, were buckled up. The question of seat belt usage almost certainly will weigh heavily in Transportation Secretary William Coleman decision later this year on safety standards for future restraint systems. While proponents of air bags have argued that belts offer no protection to the large number of motorists who do not use them, numerous variations of the belt system have been tried in efforts to increase that usage. BOTH THE present system and the Interim device that preceded it are voluntary to the extent that a car can be operated even though the belts ar? not being worn. But if the interim device dots not compel the driver, It certainly nags at him.

BYTOMKLEENE Fret Press Atuomotlvt Wrlttr It was only an interim lap-shoulder-belt system that found its way onto only a limited number of 1975 model cars. But to Chrysler Christopher Kennedy, it shows that recalcitrant motorists can be persuaded to buckle up in very substantial numbers. Kennedy, Chrysler's automotive safety manager, cites the results of an almost unpublicized survey commissioned by the National Highway Traffic Safety Administration. The survey, performed by Opinion Research Corp. of Princeton, N.

covered 19 metropolitan areas in all parts of the country. Seventy percent of the drivers of 1975 model cars equipped with the interim system were reported to be wearing belts. By contrast, only 33 percent of the drivers of cars equipped with Postal Workers Face Trial for Slow Mail A federal judge has ruled in San Francisco that a women's fashion store owner can sue employes of the U.S. Postal Service for failure to deliver mail in time. U.S.

District Judge Robert Schnacke denied a government motion that would have halted the trial next month on a complaint brought by a San Jose, firm that mailed 25,000 notices of a clearance sale. Its complaint alleged that negligence by postal employes in failing to delivery about half the mailers resulted in losses of at least $35,500. Mel Solomon, president of Sportique Fashions, with stores In San Jose and Los Altos, said the sale in July 1975 was a "colossal flop" and his store lost sales of about $30,000 as well as $1,500 in postage and some goodwill. He sued in Santa Clara County Superior Court last year, naming nine employes of the postal service. On a motion of the U.S.

attorney general the suit was removed to federal court In San Francisco. A government move for summary judgment without trial was denied by Judge Schnacke. Trial is set for July 6. The law has 'long provided that the post office Is not liable for failure to deliver mail, but there is no statute relating to the liability of individual.postal employes, the judge said. signed it to oblivison early in 1975.

Surprisingly enough, about half the drivers of interlock-equipped 1975s were wearing their belts, even though the tech-' nology for disarming the system was widely available at th time of the survey. To Kennedy, the Interim system Is obviously preferable to the other two devices. "The interlock system went too far and the eight-second buzzer not far enough," he said. "A system that combines a continuous reminder and the sequential mechanism provides i. just the right amount of persuasion." 1 Tis the Season for Gas Prices To Head for a Yearly High 3Jetroitifrce3)rcss 9 Companies Take 1 Foreign Exchange Into Accounting I BusinessFinanceAuto Investors Unimpressed A recent survey sponsored by a Wall Street firm supports areas, mostly of lead-free fuel.

John Lichtblau, head of the Petroleum Industry Research Foundation in New York, said Please turn to Page IOC, Col. 1 In the first half of this year gasoline demand is up from five to seven percent over last year, and there have been reports" of shortages in some some gasoline retailers are predicting another boost of up to five cents a gallon by July 4 and perhaps another nickel by Labor Day. Consumerism Criticized by SBA Chief Chicago Trlbun With the Fourth of July weekend approaching, motorists soon will get an indication of where gasoline prices are headed. It was that holiday period In 1975 when gas prices nationally went over the 60-cent mark for the first time. Industry observers are debating' whether a new round of price hikes and possible shortages will be touched off or whether prices will hold steady and supplies remain ample.

"If you're driving an old buggy that takes leaded regular you're in the drivers seat," said Herbert Hugo, senior editor of Piatt's Oilgram. "It's In ample supply and you can get good bargains. Some stations are still charging in the low or mid 50s. "Prices should hold steady and may even drop over the summer," he added, since there's a greater supply than demand and Gulf Coast supplier prices actually have dropped in recent days. But if you drive a 1974 or newer model that requires lead-free or premium fuel, "prices have gone up sharply and will continue to do so," he said.

Prices on lead-free and premium will continue to rise but not dramatically," he said, "maybe two to four cents, a gallon by Labor Day." Hugo said lead-free' and premium prices, should keep escalating because more cars requiring these fuels are on the road and therefore the demand has picked up considerably. NATIONWIDE gasoline prices have risen about five cents a gallon since April and the conclusion that price competition among stockbrokers hasn't meant much of a break for the individual Investor. Most of the Investors surveyed said there had been no change In their dealings with the financial community. Among those who did notice a difference, nearly all reported that their commission costs had risen, not declined. Financial Marketing Services a consulting firm, conducted the project with funds provided by Paine, Webber, Jack-ion Curtis.

It said. It sampled the views of more than 200 active Investors around the country, 93 percent of them current stock owners. About nine of every 10 said there had been no change In their attitudes toward the stock market since May 1, ,1975, when competitive fees took the place of the old fixed schedules for brokers' commissions. Of the small group who said their attitudes had changed, only four percent cited lower commissions on stock trades, while 48 percent said commissions were higher. More than eight out of 10 noted no significant change in the quality or quantity of services their brokers offered.

LPG Standards Sought Federal safety officials urged Monday that ways be found to lessen the threat of fire and explosion from liquefied petroleum gas (LPG) that leaks from ruptured tank trucks. The National Transportation Safety Board said the necessary technology has not been explored. It urged the Department of Transportation to begin the research. "The continuing possibility of catastrophic accidents during the transportation of LPG in bulk requires that safety measures be developed to reduce the harmful effects of the sudden release of large quantities of pressurized, liquefied LPG," the board stated. The board's call for new research came following Its Investigation of a Texas accident involving a tank truck in which 16 persons died and 35 were injured.

of their current income each Application of the new rul has resulted in some wider swings in reported income. At; Goodyear Tire Rubber for example, net income after adjustment for the new; currency accounting rule Sncreased 12 percent from 1974, to 1975. Without the new way of ac-4 counting, Goodyear's earnings, would have been up only two percent. THE KRAFTCO earnings also benefited last year from the impact of the! currency accounting change Before adjustment, its net in- come rose about 40 percent from 1974. After utilizing it, profits were up some 47 percent.

Warner-Lambert restatement of earnings for 1974 reduced its profits that year by $7.5 million for 1973, it increased them by $7 million. Without the accounting change, per-share earnings went from $1.78 in 1973 to $1.98 in-1974 to $2.08 in 1975. With the change, per-share earnings inched up a penny from 1973 to 1974 and then climbed 20 cents a share last year. The 1975 increase was twice as big as would have been if reported under the old method. "I'm not implying that's why they restated, but it is an Please turn to Page 10C, Col.

1 BY JOHN ALLAN New York Timts Strvlct NEW YORK Big multinational corporations that draw a large portion of their profit from overseas have always been vulnerable to the quicksilver shifts of. values in foreign currencies. Those shifts have often made it difficult for stockholders and securities analysts to get a true fix on the basic earning power of overseas subsidiaries. Until last year, for example, the declining value of the dollar tended to overstate reported earnings simply because foreign currencies translated into more dollars. With the dollar rising, profits now tend to be understated.

Most corporations tried to iron out the effects of those fluctuations by setting up reserves that could be added to or subtracted from earnings as the need arose. Significantly different ways of handling the accounting of foreign operations produced such variant results that the Financial Accounting Standards Board the high court of the accounting profession adopted a ruling to cover the problem. It promptly turned controversial. The ruling requires the multinationals to do away with the security blanket of currency reserves and to report currency gains or losses as part LAS VEGAS-(UPI)-Mitchell Kobelinski, administrator of the Small Business Administration, told an audience here that "consumerism is a facade for Kobelinski said his No. 1 priority at the federal agency is to eliminate unnecessary red tape and paperwork for businessmen who are seeking loans.

He hopes to speed up loan processing and closing techniques so businessmen will be able to get SBA loans in about a week. "The more red tape there is, people become discouraged from going into business," he said. Yet consumer groups advocate more government control of business and as a result, he said, "consumerism is a facade for socialism." Kobelinski was In Las Vegas to honor singer Wayne Newton, singled out by the SBA for giving his time and talent for the benefit of the nation's small businessmen. Mitchell Kobelinski red tape foe OPEN THURSDAY AND FRIDAY NIGHTS DOW INDUSTRIALS 1018.03 A Maestro Tells What to Watch For lli 1020 .1000 980 .960 IM '-Hi If irr DQW TRANSPORTS' 222,4 Marketing Communications 220 210 200 NYSE VOLUME D'Arcy's Ernest Jones: He sees ads becoming more -30' t20 10 I MAY JUN BY GLENNA McWHIRTER Freo Press Business Writor' And now direct from the glass-walled executive suite of the beautiful D-Arcy-Mac-Manus Masius Advertising offices in exotic Bloomfield Hills we proudly present the leader of the pack ol' blue eyes of the ad biz the Chairman of the Board ERNIE JONES! To do this thing properly we would have the Detroit Concert Band break into a medley of the Budweiser beer, Burger Chef and BankA-mericard jingles. The stage would be set with a gleaming Cadillac Seville to the right and a Pontiac Firebird Trans Am slightly to the left.

The rest of D'Arcy's 500 client logos would form the backdrop, Ernest A. Jones would amble to the center stage microphone, smiling, with a trumpet under one arm and a book of quotations "The Thoughts of Jones" under the ether. Then he would start reading and extemporizing and winning hearts and minds. Wild as all that sounds, Jones could probably pull it off. 'The chairman of one of the world's top 10 agencies billings of $425 million last year with 2,400 employes in 28 offices in 18 countries on four continents is part trumpet player and orchestra leader, part philosopher, part salesman and an acknowledged thought leader in the advertising business.

His general advice to everyone Is to laugh hard and work hard, in that order. One suspects he does it the other way around. In a recent interview he talked about trends in advertising, how to "orchestrate" a successful career in the business, the difference' between leadership and management, and some more of his favorite things. Here is a sampler. TELEVISION ads of the future will persuade without much supportive information.

They will generalize and be based on emo- tional appeal, Jones said. This is not because the client, agency or public wants this sort of advertising. "It is because of a dichotomy of. interest in governmental agencies. We are urged to put more and more information into ads, but we must document every statement more and more completely." For the same reasons, print ads will become more importanet.

This is where clients, and agencies, can present documentation and information specifically directed to certain market segments, he said. All advertising will become more audience-selective. "People who can read and write and think is where Ihe money is," said Jones. "And these people are becoming bored with advertising. They're Fresh advertising ideas are needed, plus better magazines, newspapers, radio and television programming in which to display the advertising to carefully selected targets.

Jones calls this "the "pinpointing paradox." "It's a world of proliferating products and people," he said. The advertising of each product must be directed precisely to the ever-smaller group of people who are expected to buy it. THAT'S NOT an easy job for the upcoming advertising tycoon to accomplish. Jones has some, advice for anyone who thinks he wants to try. It's a three-step program that will work in any business, he said.

"From ages 20 to 30 you learn the tools of the trade," he said. That means you go to college and learn everything you can anywhere you can about printing, film, media and media the mechanics of an agency and its system. "From 30 to 40 you gain status through association," according to Jones. "You don't gain status from your own accomplishment at his stage, unless you're a Beethoven. The status rubs off on you from others.

"From 49 on you achieve status yourself. People start having confidence in you. "Someplace in there you either stay in business and grow enormously or you're fired," according to Jones. 1 You may become either a leader or a manager, and he has definitions for both. "A manager organizes things efficiently and keeps an eye on the 'bottom which is very important," said Jones.

But such a person merely "directs traffic" and is not the stuff of stardom. "A leader has the ability to bring people together in a common cause whether its cultural or business or the neighborhood. Part of "leadership is understanding others. You Please turn to Page 10C, Col. 1 Volume Points To Summer High Nothing is as certain in the stock market as a summer rally in an election year, other than the correction that sets in once the votes are counted.

The market demonstrated its underlying strength at midweek when an international incidentthe slaying of the U.S. ambassador to Lebanon deterred its upside progress only slightly. Back in early May we had a non-confirmation between the Dow Industrials and Transports. Under Dow theory the hypothesis from which most other theories have evolved these two averages must confirm each other when moving to a new high area for the move to be valid. And it should be noted that volume always goes with the prevailing trend, meaning that in a bull market volume should increase as prices rise.

When the Transports moved to a new high in May, the DJI stayed under its 1018 high of late March. This, of course, resulted in a rather sharp correction by recent bull market standards. However, following another non-confirmation on the downside when the DJI broke into the 950s, it has been all on the upside since. Our attention again focuses on these recent highs. Note that the.

rally has been on increasing volume, which is an encouragirrig sign. We now feel that chances are good for continued upside strength and a confirmation through the old highs would indicate 1050 to 1075 for the summer rally. RESEARCH STAFF FIRST OF MICHIGAN CORP. MEMBERS, NEW YORK STOCK EXCHANGE HAVE AN ARNEL COOLER and enjoy a summer of ease and relaxation in Medici's boucle knit shirt of Arnel triacetate by Celanese? White, navy, brown, blue, tan, mauve or green. Sizes S.M.L.XL.

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