The Los Angeles Times from Los Angeles, California • 44

Chrysler Profit Down Despite Record Sales usmess i1 ance FRIDAY MORNING, JULY 28, 1967 12 Part HI Unplanned Obsolescence: Tne Bane of Executives i 1 1 1 i t-i i it, 93 4 ft 1 i' -j zz I 29 18 1 1 12 MlUIONt jit I IEt'ZT 1 Second Quarter Earnings Placed at $48.4 Million NEW YORK (5)-Chrysler the third largest automaker, reported Thursday a decline in earnings for the second quarter and' first half of this year despite rec- i ord sales. In the three months ended Junai 30, Chrysler earned $48.4 million, or $1.05 a share, compared with $54.4 1 million, or $1.20 a share, a year! earlier. Sales rose to $1.6 billion! from $1.4 billion in the 1966 second quarter. Profits for the first half totaled $66.6 million, or $1.45 a share, against $116.9 million, or $2.58 a share, a year earlier. Sales advanced to $2.9 billion from $2.86 billion, 1 Chrysler's worldwide sales of cars i and trucks declined 3.3 in the first I six months of this year to 1,085,611 1 units from 1,122,458 in the 1966 first half.

616 673 630 77 714 721 Pair Admits Guilt in Pentron Stock Manipulation Case NEW YORK (3 Two Chicago men admitted Thursday a stock-manipulation conspiracy involving sales of Pentron Electronics Corp. on the American Stock Exchange. The two were among six men indicted June 1 by a federal grand jury. Spero Furla, 42, former securities salesman, and Mark Rolland, 33, engaged in loans, switched their pleas from innocent to guilty. Furla and Rolland, according to federal authorities, have been partners in Raf associated with Raf Chairman Osborn Andreas, 63, former Pentron board chairman, whose personal stock figured in the 21 -count conspiracy -fraud indictment filed here June 1.

Andreas and another Chicago man, with two New Yorkers, pleaded innocent and awaits trial for an alleged marketing fraud, which authorities say cost investors $1.5 to $2-million early last year. Rolland, who has an interest In Investment Associates, in Chicago, and Furla, now a free-lance photographer and studio operator, pleaded guilty Thursday to the conspiracy count and another count of using the American Stock Exchange facilities for illicit transactions to induce investors to buy Pentron stock. Sentences Due Sept. 27 The two counts could result in maximum combined sentences of several years' imprisonment and $20,000 fines. Judge Irving Ben Cooper scheduled sentencing for Sept.

27, ordering a presentence investigation of the two defendants, who remained free on bail. Meanwhile, Aug. 28 has been set for arguing motions made by the four other defendants. The conspiracy indictment alleged that the six defendants agreed to boost the price of Pentron, offering payments to registered representatives employed by member firms of the New York and American stock exchanges, stimulating an artificial volume of trading that raised Pentron stock from under $2 a share to $3.75. Asst.

U.S. Atty. Lawrence W. Newman said Andreas sold 144,000 shares of his own through Furla in a deal that obtained for Furla and Rolland, with two others, about 175,000 Pentron shares held in trust for Andreas' two small children. The remaining defendants are Andreas, Paul Heischuber, 27, a former New York security salesman; Mario Trombone, 38, a public relations man of New York, and Robert Ness, 38, a Chicago lawyer.

(According to the Washington Post, the break in the case came just as sources close to the investigation said further indictments may be handed down by the grand jury within the next two weeks.) Blue Chips End in a Standoff; Dow Unchanged BY PHILIP GREER Lm Anfries TkimWnhiftftM Put Mm Service) NEW YORK Blue chip stocks with a split personality helped the stock market to a sharp gain early Thursday, only to become a drag on the list before the session of heavy trading ended. With motors in the lead, the market moved to a quick gain in active trading after the opening bell. The auto stocks held onto their gains, but other investment issues dropped off to their lowest levels of the day by the close. As a result, the Dow Jones industrial average gave up an early gain of more than 3 points to finish the day unchanged at 903.14. Standard Poor's 500-stock composite, reflecting a broader picture of the market, rose 0.29 to 94.35.

The New York Stock Exchange index, which covers all the issues on the Big Board, was ahead 0.18 to 52.40. Volume Tops 12 Million Volume climbed again as it has every day this week to 12.4 million shares. Advances totaled 728 and 513 stocks declined. New highs were 143 and there were 10 new lows. The strength in the motors, analysts said, stemmed from earnings reports that were not as bad as had been expected.

GM and Chrysler showed two of the best gains among the 30 Dow Jones stocks. Chrysler was ahead VA to 49i and GM added 25a to 845. Ford slipped 91 to 53V4 and American Motors lost its steam late in the day and slipped to a -point loss at 14V. Glamor stocks were mostly higher, except for Polaroid, which dipped 234 to 202V. Xerox jumped 5 points to 279VS, Teledyne added 4V4 to 110V4 and Scientific Data Systems rose 3 points to 81.

Sperry Rand led the active list and jumped ITs to 37, a new high for the year. Metro-Goldwyn-Mayer jumped 234 to 56V6 after announcing that the president of City Investing Co. is joining its board. With MGM facing another likely proxy fight early next year, the rumor mills immediately started talking up a merger deal. Airlines moved higher.

United rose to 81, National added 13,4 to 83, Delta jumped la to 124 and American rose Va to 43. American Stock Exchange prices rose as volume climbed back to pre-speculation warning levels. The Amex average was up 14 cents to $31.11 and turnover soared to 5.54 million shares from 4.56 million on Wednesday. Trading was heavy and mixed throughout the day on the Pacific Coast Stock Exchange. Most active after the New York close was Curtis Publishing Co.

which jumped Va above the New York final, closing at 19, its highest price in at least 10 years. Fresh rumors circulated that it is about to be acquired. Equity to Acquire Presidential Life Equity Funding Corp. of America, Beverly Hills mutual fund and insurance company, announced Thursday it has agreed in principle to acquire Presidential Life Insurance Co. of America for cash, debt securities and common stock totaling $5.6 million.

Presidential Life is a wholly owned subsidiary of Prudential Group, Chicago. It has approximately $100 million of life insurance in force and is licensed in 43 states, including California. Equity sells insurance and mutual fund shares, both separately and in combination. Equity's earnings for the first half were $869,539 on gross income of $4,275,052. UNPLANNED OBSOLESCENCE threatening modern-day executives, a Lockheed Aircraft Corp.

executive warns in the forthcoming issue of Financial Executive magazine. Dudley E. Browne, group vice-president of finance with the Bur-bank-based aircraft company, claims little has been done to give practicing executives a chance to master the techniques of scientific business methods which are "spreading to every part of our society." Rapid changes in the business 1 environment and a growing scarcity of managerial talent have created unprecedented needs for a wide spectrum of management development programs, Browne claims. "The universities could be of greater service in fulfilling these needs, and the business world could do much more than it has to help the universities and to encourage employes to up-date themselves," he writes. "Although great strides have been made," he says, "in computer-based operational control systems, critical path programming methods, line of balance techniques, value engineer- ing, operations research and a number of mathematical and statistical approaches to business operations, much of this knowledge is unknown to practicing executives." Describing existing live-in executive programs provided by 37 universities for about 3,000 businessmen as "prestige executive development programs," Browne writes: "There are many other executives located lower on the organization charts, who hold important jobs-men who could also profit by formal training at the university level." MEN AT THE TOP: Briant Wells will retire from Title Insurance BRIANT H.

WELLS president of Title Insurance Trust Los Angeles, will retire on July 31 when he reaches the company's mandatory retirement age. Ernest J. Loeb-becke, chairman and chief executive officer, will take the additional post of president during the next several months while the company com-, pletes current studies involving possible corporate reorganization. AIR CARGO: Six-fold increase predicted for California by 1975 CALIFORNIA'S air cargo business could increase six-fold by 1975, according to a study just released by Wells Fargo Bank. Noting air cargo is about where passenger service was 35 years ago, the bank predicted a 22-25 annual increase for air freight business in the next 10 years.

Huge new cargo carriers now being built will be a big factor in the increase, the bank said. It foresaw future air cargo including almost every type of item except bulk and heavy industrial commodities. THE ECONOMY: U.S. retail sales dip 1 to $5,877 billion in week U.S. RETAIL store sales last week totaled $5,877 billion, down 1 from the preceding week but up 3 from the corresponding 1966 week; the Commerce Department estimated Thursday Rail freight traffic last week reflected a two-day strike and fell to 12.3 billion ton miles, down 9 from the preceding week and 12.8 from the year earlier week.

Carloadings at 483,090 were down 8.9 from the preceding week and 15.6 from the 1966 week Piggyback loadings in the week ended July 1 were 22,098 cars, up 4.3 from the 1966 week Inter--' city truck tonnage in 34 metropolitan areas last week was up 3.4 from the previous week but down 4.7 from the 1966 week. HOTELS: Hyatt will spin off new operating company on July 31 HYATT CORP. of A i a Burlingame-based hotel chain, will spin off a new company on July 31 to operate most of its hotels and motels. President Donald N. Pritz-: ker said Thursday shareholders will receive one share in the new 1 company to be called Hyatt Corp.

for each share held in Hyatt Corp. of America which will become known as Hotel Equities Corp. Hotel Equities will continue to own the hotels and motels "as well as the company's unrelated business. Hyatt Corp. will operate all but four of the company's 12 large hotels, plus its 50 smaller motels.

AIRLINES: 45 of Lake market available, American claims I AMERICAN AIR Lines told the i I Civil Aeronautics Board Thursday it thought it could capture 45 of the Salt Lake City-Los Angeles air business if It were given authority to fly that route. The line told a CAB hearing in Salt Lake City It wants to operate two non-stop flights: daily: plus two flights daily with stops at Las Vegas. Western Air Lines, which now serves the route, has eight flights daily. Earlier Continental Air Lines asked for four direct round-trip flights daily and said it did not want any intermediate stops. Other applicants for the route are Bonanza, Frontier, Pacific and West Coast.

MERGERS: Beech-Nut to acquire E. R. Squibb from Olin Mathieson DIRECTORS OF Olin Mathieson Chemical Corp. and Beech-Nut Life Savers Inc. have agreed on a plan to merge E.

R. Squibb and Sons wholly owned subsidiary of Olin, into Beech-Nut. The new company would be named Squibb Beech-Nut Inc. Olin said Thursday that immediately before the merger, ownership of Squibb would be distributed to Olin stockholders, who would eventually own about 56 of the new Squibb Beech-Nut stock which would be exchanged for Squibb and existing Beech-Nut stock. Squibb and Beech-Nut had combined sales last year of more than $540 million with net profits exceeding $40 million.

SECURITIES: Local firm, two new N.Y. funds to be listed on NYSE MONOGRAM INDUSTRIES Scudder Duo-Vest Inc. and American Dual Vest Fund Inc. were approved Thursday for listing on the new York Stock Exchange. Monogram, headquartered in Los Angeles, is now traded on the American Stock Exchange.

It will list 1,117,373 common shares on the NYSE Aug. 28. The other two companies are recently organized closed-end investment companies located in New York. OIL: Pan American Petroleum reports major new Cook Inlet well PAN AMERICAN Petroleum wholly owned subsidiary of Standard Oil Co. Thursday announced completion in Alaska's Cook Inlet of an oil well which tested 5,900 barrels daily from about 570 feet of sand.

The flow rate represents the highest initial potential of any well yet drilled in Alaska, the company said. The well was drilled from the Granite Point platform which Pan American operates for itself and its three equal partners, Skelly Oil, Sinclair Oil Gas and Phillips Petroleum. The daily flow rate for the 41.7 degree gravity crude was through twin tubing with choke sizes of 58 inch and 1 12 inches. ACQUISITIONS: Monogram's bid wins 70 of National Screw shares MONOGRAM INDUSTRIES Inc. of Culver City announced Thursday its offer of $60 per share has been accepted by holders of about 70 of the shares of National Screw Manufacturing Cleveland.

The company has 369,724 shares outstanding. Monogram's offer, originally set to expire Wednesday, has been extended through Aug. 7. If all National Screw's shares are tendered the total purchase price will be about $22 million The mergers of Central Airlines into Frontier Airlines, of Glidden Co. into SCM Corp.

and of Servel Inc. into Clevite Corp. have all been approved by shareholders Standard Brands has purchased jointly with a Dutch company a 67 interest in a large French coffee company General Foods, has purchased Elah S.PA., an Italian food and confectionary firm. PETROLEUM: Peru will take over Standard Oil Co. (N.J.) subsidiary PERUVIAN PRESIDENT Fernando Belaunde has signed a law nationalizing the International Pe-trolum a subsidiary of Standard Oil Co.

(N.J.). The company's land and equipment will go to the government without compensation. The changeover is scheduled to take place within 30 days. All final negotiations are in the hands of the president. ET CETERA: Random curiosities rumors from the business world PROFITS PROPHETS: Trans International Airlines Corp.

of Oakland predicts 1967 earnings will exceed $2.10 per share, compared with $1.45 in 1966 Walter Kidde Belleville, N.J., reports sec- ond quarter earnings up 30-35 over the 66 cents per share earned a year earlier. IN PASSING: The public offering of $49,980,000 State of New York hous-; ing serial bonds postponed from July 11 has been rescheduled for August 9 Placed Oil British-based member of the Hunt Group of las, has struck gas in the North Sea about 50 miles northwest of Great England, v' NEW YORK Standard Poor's 500-stock index closed Thursday at 94.35, up 0.29 from a revised close of 94.06 for Wednesday. High during the day was 95.19; the low, 93.51. The 425 industrials closed at 101.91, up 0.35 from a revised Wednesday close of 101.56; the rails at 50.63, off 0.05; the utilities at 68.11, off 0.01. Volume rose to 12,400,000 shares from 11,170,000.

The 1967 high for the "500" was 94.58, set May 8. The low of 80.38 was made Jan. 3. OVER-THE-COUNTER The National Quotation Bureau index of 35 industrial stocks closed at 323.45, up 1.19. The 1967 high of 323.53 was set Monday.

The 1967 low of 228.93 was set Jan. 4. LONDON The Financial Times index of 30 industrial stocks closed at 354.2, up 3.8. The 1967 high of 356.8 was set June 29. The low of 308.6 was set Feb.

28. Dividend Omitted by Arden-Mayfair; Net Loss Reported Arden-Mayfair Los Angeles supermarket chain, reported Thursday a net loss for the first half of this year as directors omitted the usual quarterly dividend of 20 cents a share on the common stock which would have been paid Sept. 1. Directors said the dividend was passed "in view of the six-month results." The company reported a net loss of $663,994 for the 26 weeks ended July 1, compared to net income of $2,770,573 or 79 cents a share in the similar 1966 period. Net sales rose to $273,293,274 vs.

$267,597,046 a year earlier. June quarter net earnings slumped to $43,999 compared with $1,610,304 or 42 cents per share in the 13 weeks ended July 1, 1966. Net sales increased to $138,227,884 vs. $136,293,524 in the comparable 1966 period. 12 Markets Opened Luther C.

Anderson, president, said second quarter earnings would have been "substantially better" but for the expense in opening 12 new supermarkets in the past six months. At a special meeting last month stockholders were warned the September dividend was in jeopardy. The company has been beset by other problems in recent months. On April 20, J. Earl Garrett resigned as president and chief executive officer against the backdrop of a conflict-of-interest controversy.

OIL SHIPMENTS RWA) for aiding refugees. This was in addition to the pre-war capital grants and development loans of $5.3 million from Britain. Furthermore, Kuwait and Saudi Arabia are understood to have contributed $14 million each to King Hussein's amputated kingdom, and Libya reportedly provided some additional money. The feeling here is that Hussein cannot afford to make a deal with Israel, even if he wanted to, without at least the tacit approval of the other Arab nations, particularly Egypt. President Gamal Abdel Nasser's position has again weakened in the past two weeks, it was said here, although there is no speculation about how vulnerable he is to a possible coup.

There remains no clear view of Russian intentions in the Mideast. Moscow seems to be walking a tight rope between doing what is necessary to keep its Arab friends while 'providing "no encouragement whatsoever" for another adventur against Israel, 50-Cent Dividend Directors declared a regular dividend of 50 cents a common share, payable Sept. 1 to shareholders of record Aug. 7. Chrysler reported that sales of Its TJ.S.-made models in the first half of this year accounted for 17.1 of the domestic market, up from 16.5 a year earlier.

It said its share of the Canadian market increased to 22.9 i from 21.4. The company said second-quarter increase in dollar sales was due to higher unit sales and improved operating efficiency. But it added i that the return in relation to sales continued to be adversely affected by steadily increasing material and labor costs. Phrvslpr said its dAfensf-srarft sales in the first half of this year totaled $99 million or 3.4 of sales compared with $103 million or 3.6 a year earlier. Tom Killifer, a Chrysler vice president, was elected to the board of directors to succeed Frank W.

Misch, vice president-finance, who retired. Bank Free Reserves Double Prior Week NEW YORK W) Free reserves Federal Reserve member banks last week more than doubled the previous week's revised estimate of $194 million, the Fed reported Thursday! This would normally indicate an easing of the money supply. The increase to $403 million daily average for the week ended Wednesday brought the figure to the highest since the $442 million of Jan. 16, 1963 with one exception. The week ended July 12 saw free reserves at a five-year high of $592 million.

But that was explained by informed sources as "unusual" because of the July 4 holiday. ROSSMAN Writer for Ford to purchase the holdings In Willys-Overland DO Brasil (WOB) of Kaiser Jeep and Regie Nationale Des Usines Renault. It would purchase all the stock of Transaxj S.A., an Argentine axle manufactu-l rer, from 'Industrias Kaiser Argentina (IKA). At the same time, Renault would; buy the majority of Kaiser Jeep'3, stock in IKA with Kaiser retaining a small equity. Willys-Overland is Brazil's second largest auto manufacturer, (Volkswagen is No.

1) with Kaiser owning 32 and Renault 14. The Brazilian public holds the bulk of the remainder. Kaiser Jeep said it approved the sale because the firm "is not in the passenger business in the United States and does not plan to be in the future. More and more the automotive markets in Brazil and Argentina demand a diversified, competitive line of passenger vehicles." Ford and Renault will be in an ideal position to do this, Kaiser Jeep said. Kaiser Jeep, added, "will continue to concentrate in the United States on its unique specialty line of utility vehicles." Yornado and Food Giant Terms OKd GARFIELD, N.J.

(DJ) Vornado Inc. of Garfield and Food Giant Markets Inc. of Santa Fe Springs Thursday announced formal execution of an agreement for the previously proposed merger of the two companies, subject to approval of the stockholders of record Aug. 141 of both companies at special ings to be held Sept. 27.

Ford, Renault Buy Out Kaiser Jeep in Brazil and Argentina ANXIOUS TO RESUME Arab States Seen Seeking Accord With West BY MARTIN Times Stiff Kaiser Industries of Oakland, deciding to steer clear of the passenger car business in Brazil and Argentina, Thursday announced it is selling the bulk of Kaiser Jeep stockholdings in those countries to Ford Motor Co. and Renault of France. The deal, if consummated, could mean $40 million to Kaiser Jeep over a five-year period. An agreement has been reached Any overture by the Arabs to resume relations with the West will undoubtedly wait on the outcome of the summit meeting next month. It may be significant in this respect that Nasser, in his recent speech, did not preclude contacts with the United States; Pravda's Cairo correspondent is understood to have made a poinj of this in his dispatch on Nasser's address.

In the present breathing space now, Britain is bringing home its two remaining ambassadors in the Middle East, from Amman and Tel Aviv, to discuss the overall situation with the British diplomats who were thrown out of Cairo, Damascus and other Arab states. Their primary topic will be the future of Jordan and Hussein, who British officials like to refer to as "that small brave man." The immediate problem is Israeli troops on the West Bank of the Jordan, which Britain wants withdrawn, and the status of Jerusalem, whose all but formal annexation by Israel Britain continues to oppose. BY ROBERT C. TOTH Timet Staff Writer LONDON British sources expect the Arab states to begin soon to rebuild their bridges to the West which they cut off in pique because of their defeat by Israel last month. The more moderate oil-producing states of Kuwait, Saudi Arabia and Libya are believed to be searching for some face-saving formula to resume oil shipments to Britain and the United States, it was said.

The economies of Egypt and Syria are in an extremely precarious position and the Soviet Union is not providing them with all the help they ask, according to reports reaching here. Only Jordan appears to be financially comfortable at present. Following the war, it received from Britain $1.4 million for reconstruction, plus another $560,000 in equipment for refugees. Another $500,000 was given to the United Nations Relief and Works Agency (UN-.