The Los Angeles Times from Los Angeles, California • 31

A Stocks Advance Smartly Despite usmessa finance 1 With Yornado 2 TUESDAY, JULY State Economic Activity Continues Up for Month MAKING THEM SHINE New doorknobs are plated and polished in an automatic machine (background) at Kwikset Sales and Service Co. Workers are removing knobs from conveyor belt. Firm makes three lines of residential knobs. Kwikset, at Anaheim, is a subsidiary of Emhart Corp. Times photo by Joe Kennedy Bids Opened for Nuclear Unit in Offshore Power-Water Plant BY EBWIN BARER Timet Staff Writer Sharp Dip BY PHILIP GREER Lat Angis TlfntsWashiaglta Past News Sryica NEW YORK Stock prices charged higher again Monday, despite growing pressure on American Telephone, one-time bellwether of the list.

"Mother Bell sank to another new low 51 and was once again at the top of the active list, but the rest of the stock market couldn't care less as it rose from the opening bell in active trading. A 234-point advance in Eastman Kodak and strong moves in retailing and steel stocks helped the Dow Jones industrial average post a 6.47-point gain to 875.52. Standard Poor's 500-stock composite was ahead 0.36 point to 52.05 and the New York Stock Exchange index rose 0.25 point to 51.16. Volume ran right along with Friday's pace except for a surge of trading around mid-day. At the close, 12.17 million shares crossed the tape, up from 11.54 million in the previous session.

857 Stocks Advance Advancing stocks stretched their lead over declines to 857 to 433 from the 785 up and 446 down on Friday. New highs rose to 167 from 142 and new lows slipped to 17, from 18. American Telephone continued to be the number one topic on the street, as analysts tried to assess the possible damage caused by last week's Federal Communications Commission ruling that the company must cut interstate rates by $120 million. Several brokers said the company's long-range picture has been only slightly affected. One newspaper noted that Telephone's earnings have risen after every previous rate reduction.

Third Late Opening Telephone opened late for the third straight day, finally showing on a half-point loss. From there the selling carried down to a new low before a slight rebound set in. "Mother sank again before the close to finish at 51, off 1 points. Telephone picked up some company in its misery when Sperry Rand, a favorite of the performance-oriented mutual funds, said its first fiscal quarter results will be cut by $6.5 million after cancellation of a program for Pan American Airways. At its.

worst, Sperry was off almost four points before moving up to close at 33, off ZVi Meanwhile, retailing stocks, helped by consistent reports of recovering sales, were one of the strongest features of the market. Pease Turn to Page 11, Col. 4 Marquardf Merger Proposal Dropped The proposed merger announced June 9 between Automation In-: dustries El Segundo, and Marquardt Corp. of Van Nuys has been called off, it was announced Monday. Terms had called for Automation to issue 892,575 share of common stock worth about $35 million for Marquardt's outstanding stock.

Automation would have become the surviving corporation. Marquardt Corp. secretary Frank Forve said directors of Automation Industries did not ratify-he agree-ment and submitted "a modified offer." The Marquardtoard refused to accept the offer- at a meeting Monday inNeat-Tork, Forve said, and decided instead to terminate negotiations. In late trading on the Pacific Coast Stock Exchange, Marquardt fell to 14, off 3 from its New York close, on turnover of 3,100 shares. At 18 on the NYSE, it had been up 3A for the day.

$38,160,000 for a pressurized water reactor saturated steam generator type rated at 3,250 megawatts thermal and $33,120,000 for a similar type 2,450 megawatts thermal unit. Babcock Wilcox Co. bid $40,438,000 for a pressurized water reactor superheated once-through steam generator type rated at 3,387 megawatts thermal and $31,893,000 for a similar type 2,452 megawatts thermal unit. Goss said the two sizes were specified in order to obtain cost comparisons needed in determining future financial arrangements with the Metropolitan Water District of Southern California. The MWD will operate the water desalting plant, while the DWP and Southern California Edison Co.

will operate the power units. Initial capacity of the desalting plant will be $50 million gallons a day, with a planned ultimate capacity of 150 million gallons daily. Under current plans, operation of the desalting plant and the first of two giant nuclear generators is scheduled for 1973 and the second power unit for 1974. The ultimate desalting capacity is to be reached in 1977, Goss said. Israelis to Start Pumping Sinai Oil 1 ROME (UPI)-lsrael will begin pumping oil "in the next few days" from Italo-Egyptian wells it captured in the Sinai Peninsula, Italy's state-owned oil group ENI said Monday.

A spokesman for ENI, 50 owner of the Sinai wells at El Belayin and Ras Suder, said his company "is not collaborating" in the Israeli pumping operations but neither is it protesting. by Food Giant Food Giant Markets Inc. of Santa Fe Springs and Vornado Inc, Garfield, NJ, plan to merge, officials of both companies confirmed Monday. Under terms of the proposal, Vornado would exchange 1.9 million of its common shares, worth about $53.7 million, for all of Food Giant's outstanding preferred and common shares. The announcement confirmed a report in the Los Angeles Times on Saturday that the two companies were discussing merger.

"We've been talking informally for over a year," said Theodore E. Cummings, Food Giant chairman and president, "and decided that now was the time to go ahead." Food Giant operates 70 supermarkets, 14 Unimart discount stores, 14 Builders Emporium do-it-yourself hardware stores, and six package liquor stores in Southern California. It also owns Meyenberg Milk Products, which serves the 200 franchised Foster Freeze outlets, and Golden Creme Farms, which operates a milk plant, bakery and ice cream distributorship. Eastern Seaboard Vornado operates 33 "Two Guys" self service discount department stores on the Eastern Seaboard. Twenty-two of the stores have food retailing departments.

Cummings declined to discuss future plans in connection with the merger, but said they will be detailed within about two weeks. He said KFood Giant and, Vornado shareholders will vote on. the proposal "within 60 days." The merged company will have sales of approximately $667.7 million. Food Giant closed at 15, off on the New York Stock Exchange Monday. Vornado's closing price on the NYSE was 27, off for the session.

On Friday, apparently based on merger rumors, Vornado stock rose two points to 28, and Food Giant closed up Vs at 15. Vornado had total revenues of $321.23 million and net profits of $8.1 million, or $2.29 per common share, in the year ended Jan. 31, 1966. Food Giant had sales of $335.8 million and net profit of $3.7 million, or $1.23 a share, during the same period. Total Shares Reduced For the year ended last Jan.

3L Food Giant's sales rose 6.1 to $335.8 million, but intensified supermarket competition reduced net profits by 5.9 from the year before. A 7 reduction in the number of outstanding shares allowed the company to lift per share net to $1.23 from $1.21, however. Vornado's sales rose 29 to $331.8 million in the period, but narrowed profit margins attributed to costs of opening new stores held after-tax profits to a 2 gain. An increase of 4 iij outstanding common shares slightly reduced per share net in the year. On July 15, 1963, Food Giant announced plans to merge With Jewel Tea Co.

(now Jewel Companies a Chicago-based supermarket and department store company. Those plans were terminated Please Turn to Page 12, Col. 5 1 the ownership of his firm in Unexcelled. However, he said that between Kleiner, Bell and its clients their portion of the company's 697,000 shares outstanding is "very substantial." He said Kleiner made its first substantial investment in Unexcelled early this year. He said Kleiner, Bell does not seelt full control of Unexcelled, but "would like to participate- with management" in the Company.

Roy C. Schoenhaar, president of Unexcelled said, "I would be very, favorably inclined to have Kleineri Bell representation within the next two or three weeks." He sait Kleiner, Bell interests probably will get two or three seats. Unexcelled leases cargo operates a discount store chain and leases electronic control systems for' the meat packing industry. There are 10 seats on the celled board. Schoenhaar said it hasn't been decided yet if the, Kleiner Bell interests will take over' existing seats or if the board will be enlarged.

Acreage Planted 'i to Cotton Of 6 1 WASHINGTON (D J) Hampered' by the "worst planting season of i record in widespread areas," U.S.'.? farmers planted only 9,724,000 acre)! in cotton this year, a 6 drop front 10,349,000 planted in 1966, the Agriculture Department reported Monday. Last 5 year's planting was the" smallest in nearly 100 years and; only 9,554,000 acres were 11, 1967 Port III 7 95 94 ZE 93 92 91 90 89 88 09414310) 62 69 616 623 630 77 714 WEEKS ENDING YESTERDAY ffir- I NEW YORK Standard Poor's 500-stock index closed Monday at 92.05, up 0.36. High during the day was 92.80; the low 91.11. The 425 industrials closed at 99.32, up 0.44; the rails at 49.49, up 0.39; the utilities at 67.18, off 0.16. Volume rose to 12,170,000 shores from Friday.

OVER-THE-COUNTER The National Quotation Bureau index of 35 industrial stocks closed at 316.07, up 2.24, a new 1967 high. The previous high of 313.87 was set July 6. The 167 low of 228.93 was set Jan. 4. LONDON The Financial Times index of 30 industrial stocks closed at 350.6, up 1.5.

The 1967 high of 356.8 was set June 29. The 1 967 low of 308.6 was set Feb. 28. offering cash and debentures as had originally been proposed, the company would issue through a new holding company, Chicago North Western Industries a 5 voting cumulative convertible prior preferred stock. Each Essex holder would receive $45,833 par value of the new preferred for each share of Essex common held.

The stock would be convertible into Industries common on the basis of 0.35 share of common for each $45,833 par value of the preferred. SHAREHOLDERS of Tennessee Life Insurance a subsidiary of Tenneco Houston, Monday approved a plan to merge the insurance company into Philadelphia Life. Insurance Co. Stockholders of the latter firm have yet to vote on the proposition. CREDIT: Commercial paper rates increased by most issuinaj houses INTEREST RATES on commercial paper were increased Monday by most issuers including Penney Credit Chrysler Financial General Electric Credit Corp.

and General Motors Acceptance Corp. The new rates are generally up toM on the various maturities. The new scale is 4 on 30 to 59-day paper and 4 on 60 to 270-day maturities. A spokesman for one firm noted "tightening trends in the short term money market." RATES 'on bankers acceptances have been cut by A by major issuing firms. The new schedule is generally 4 bid, AVz, asked on one to 90-day paper and 4 bid, 4 asked on 91 to 120-day maturities.

Quotations on 120 to 180-day maturities were left unchanged at 4 bid, 4 asked. ET CETERA: Random curiosities rumors from the business world PROFITS RO Dow Chemical, Co. has revised downward its 1967 earnings projections of a 10 gain over 1966 because of the general slowdown in the economy, an official said. Although he' declined to make a specific prediction, he said earnings will still exceed last year's $121.7 million or $4.06 per share. i IN PASSING: American Airlines had its best month ever in June, flying 1,286,000 revenue passenger up 19 from a year ago.

Pan American World Airways flew vs. 1,219,000,000 Ge-nisco Technology of Los An-' geles will discontinue its IVi cent dividend to help pay for the estimated $3 million purchase of West-wood Blueprint L6s Angeles Consolidated Cigar Corp. is introducing a mint and menthol tipped cigar under the Muriel brand. ljiroNi CALIFORNIA'S economic activity advanced 0.33 in June from May and 3.5. from a year ago, according to a report by the Bank of California.

Spending reached $88.43 billion. Personal, government and business spending for fixed investment all showed increased activity. Personal income rose to $70.42 billion. After personal taxes, consumer interest costs and savings, $56.56 billion remained for consumer spending, according to the bank. This was up 0.14 from May and 5 from a year ago.

Purchases of automotive and other durable equipment stood at an alltime high of $6.19 billion, up 17 from a year ago. Building construction rose 0.66 to $4.56 billion but this was only 75 of the June, 1966 total. Most categories were unchanged but building of residences was at 60 of the 1966 level. In government spending, public, construction held even while equipment and supplies rose 7.4, the bank said. It forecast another slight upward movement in the state economy in July.

MEN AT THE TOP: W. W. Keeler new Phillips Petroleum president Mr TIT VTT'TT'T TPT? KCt fcoc Tuaen VV VV XViKilXJXJXb, Vt, wn-w named president of Phillips Petroleum Bartlesville, succeeding Stanley Learned, who becomes vice chairman of the board. Learned will reach the retirement age of 65 on Nov. 1, K.

S. Adams, chairman, said. MERGERS: Subscription Television completes acquisition of John Blue SUBSCRIPTION TELEVISION Inc. of New York, Monday said it completed purchase of the John Blue group of nine companies, a manufacturer of eauipment for ap- plication of liquid fertilizers and Price was $15 million, $3,750,000 at closing and the balance in .6 mortgage notes. At the company's request, the Securities Exchange Commission suspended trading in STV common.

The company plans to ask an end to the suspension as soon as it is able to distribute information on John Blue. A NEW YORK COURT, ruled Monday that Fifth Avenue Coach Lines Inc. should receive the stockholder list of Austin Nichols a liquor distributing company for which Fifth Avenue has made two tender offers for common stock. BILL RATES: Borrowing costs hit 4.285 on 3-month Treasuries GOVERNMENT borrowing costs rose Monday to 4.285 from 4.28 on inree-munui uma wmic a-month rate dropped to 4.688 from last week's 4.716. It was the first offer of $1.4 billion in three-month Treasury bills as part of a new weekly program to meet government cash needs.

The Treasury previously auctioned $1.3 billion weekly. The extra money will be used to redeem other matured bills. BOND RATES: Sales postponed on New York, Ohio Tax Exempts NEW YORK STATE Monday postponed its planned offering of $48 million in state housing bonds "in yiew of current conditions in the tax-exempt bond market." The ac- 1 A AUIa lion lOllOWea a posipumuent ujr uiixu sale slated for Wednesday. Ohio officials said they felt long-term yields will drop later this year. STEEL: Production declines by 1 .4 in the week ended July 3 OUTPUT of steel in the week ended July 8 totaled 2,143,000 net tons, off 1.4 from the 2,173,000 tons produced in the previous week, the American Iron Steel Institute reported Production for1 the year to date stands at 64,545,000, down from 70,812,000 tons in the like 1968 period.

PRICES: Phillips will pay 7 cents more per barrel of crude PHILLIPS Petroleum Corp. increased the posted price it will pay for crude oil by 7 cents a barrel, effective Monday. New price of the crude, which it buys in Kansas and Oklahoma, is now $3.15 per barrel. The company also has boosted the price it pays for oil from the Oklahoma and Texas panhandles, West Texas and New Mexico by 5 cents per barrel. ACQUISITIONS: Chicago North Western revises merger deal CHICAGO North Western Rail-" way, Chicago, has revised terms of its proposed acquisition of Essex Wire Corp.

to provide a tax-free exchange of securities. Instead of Bids for a nuclear steam supply system for the proposed nuclear power and water desalting plant off the Orange County coast were opened by the Department of Water and Power Monday. The proposed $444 million project world's largest combination facility of this type is scheduled to be built on man-made Bolsa Island off Bolsa Chica Beach. The DWP share will be approximately $140 million. Floyd L.

Goss, DWP chief electrical engineer and assistant manager, said a decision on the bids must be made in six months. 1 General Electric Co. submitted a bid of $38,134,500 fpr a boiling water reactor unit rated at 3,293 megawatts thermal and $32,810,105 for a 2,381 megawatts thermal unit, Westinghouse Electric Corp. bid Retail Sales Rise to New High for i 4th Month in Row WASHINGTON (Retail sales during June increased slightly to their fourth straight monthly record and exceeded $26 billion, seasonally adjusted, for the first time, the Commerce Department reported Monday. i Sales at $26.05 billion, seasonally adjusted, during June compared with the revised $25.98 billion level of May.

The record retail sales in each month of the second quarter which just ended are viewed by administration economists as one indication that the second half economic boom they predicted last January has gradually begun. That expected boom is a basis for the administration's proposed income tax surcharge which is expected to be formally sent to Congress soon. .1 Last Friday, the department revised May sales from its earlier estimate of $26,069 billion to $23.98 billion. i After reaching a record $25,703 billion last September, retail sales became sluggish during the fall and winter until the pattern of new records began four months ago. The department's Office! of Business Economics said sales of durable goods stores rose about 2 during June with a continued advance in automotive sales.

i about $1.4 billion. Bank of California confirmed Monday it is offering an equivalent of about $16.25 a share in stock for Metropolitan Bank stock. The. over-the-counter bid price Metropolitan stock is about 14 now. William Van de Carr, the founder and former chairman of Metropolitan, who sold out to the Lamport-headed group in 1964; said in an interview Monday he doesn't tljiink the $16.25 price is sufficient.

"It's a lousy deal for stockholders," Van de Carr said. He added that contacted his attorney about lining up shareholder opposition to block the proposal. Van de Carr, now co-chairman of Hollywood National Bank, said he owns 2,000 shares of Metropolitan Bank. He said of the 25,000 shares that were sold to the Lamport group in 1964, he owned 18,000. He retained 1,500 and recently bought 500 more.

Terms of the Bank of California-Metropolitan Bank merger have not been officially announced by either Kleiner Bell Due to Receive Unexcelled Inc. Board Seats LAMPORT NEGOTIATES WITH BANK OF CALIFORNIA Opposition Voiced to Metropolitan Bank Sale Kleiner, Bell a Beverly Hills investment firm, reported Monday it expects to get at least three seats on the board of Unexcelled Inc. of New York City. A spokesman fof Kleiner Bell said the investment firm has reached an "understanding" with the management of Unexcelled for at least three on the board. The spokesman declined to state bank.

But a Bank of California official said Monday that a prospectus now being mailed to shareholders states 2.75 shares of Metropolitan will be exchanged for one share of Bank of California. Based On a bid price of $45 for Bank of California stock, the bank will issue securities worth about $1.7 million for Metropolitan's shares, or about $16.25 a share. "I'm trying to tell large stockholders that's not enough," Van de Carr said Monday. Lamport, in a separate interview, countered: "It's a fair price. Sure, I'd like to get more, $30 if possible, but you have to be realistic.

We paid him (Van de Carr) $30 a share and now he says it's still worth $30. But he just bought some for around $15 so it's got to be worth less than $30," Lamport said he initiated the merger, discussions with -Bank of California and he also initiated the Please Turn to Page 11, Col. 1 BY ARELO SEDERBERG Time Staff Wrltir City councilman Paul H. Lamport may have a fight on his hands before he'll be able to sell his holdings in a Hollywood bank at a loss. In' July, 1964, before he was elected councilman from the 13th District (Hollywood area), Lamport headed a group of businessmen who bought control of Metropolitan Bank, which now has.fourf offices, assets of about $21 million, and deposits of some $18 million.

Lam-, port became a director of Metropo- litan Bank. Lamport says the group paid $30 a share for 25,000 of the bank's: 108,000, outstanding shares, or, aj total of $775,000. Market price of Metropo-, litan Bank stock then was about $26 a share. Bank's management now has reached an agreement to' sell out to Bank of a statewide institution with assets of.