Detroit Free Press from Detroit, Michigan • Page 18

LTO INDUSTRY REMAINS CAUTIOUS 1 the ticker on Phase 3 ait and See 0 0 Fnrjav, Jan. U. DETROIT FREE PRESS GM 30c roil ifxtt Vrcoa BusinessFinance A to BY TOM KI.F.ENE Fr Prm Aulomollv. Writer The Phase 3 message that General Motors Corp. seems to he broadcasting to the automobile industry is: Precede with utmost caution.

And since' the No. 1 automobile manufacturer has long been the industry's acknowledged price setter, the expectation is that SEC Savs Clemen Is Finn Difhri Violnle Itulrs Thf Securitir-s and FxchanRP Cnm mission said a company hfadrd by Trrsidrnt Nixnn's noininrr fnr deputy secretary of dpfensf did not violate rules by failing to report involve-in mi in a civil suit alleging conspiracy and fraud. The nominep, Pallas oilman William P. Clements was to he considered for the Pentagon post in hearings beginning Thursday. The SFC said the suit seeks Jl million in damages from Sedco Clements' company, and that because the amount is less than 15 percent of the company's assets, it does not have to be mentioned in the oil-drilling reports to thp SFC.

The suit also asks $5 million in damages from Clempnts and three associates. (JM's line will be followed. I Any increases in 1973 model car and truck prices therefore-are likely to be no more than minor adjustments at least until No. 1 moves. GM CHAIRMAN Richard C.

Gerstenberg outlined tie company's wait-and-see response to the Phase 3 announcement In these words: General Motors will defpr any decision on future prices until Hiere has been sufficient time to evaluate the effect of Phase 3 on our business." How many weeks that may be, of course, is anybody's guess. Gerslcnbcrg lauded the Presidents "constructive rtinn' In modifying the Phase 2 controls. "We agree that the modifications are timely and hop they will lead to an orderly transition to an early termination Please turn to Page 7R, Col. 7 Phase 3 Gels Mixed Welcome From Business Head lino Ml wmmmmm 1 1 in in in ii if mm i i yn i im wwyo I i Ik, I -i ii i -K ir 1 ij .1. i I AMEX INVESTIGATES LAFAYETTE RADIO: The American Exchange has begun an investigation into trading in Ijfayetle Radio F.lectranics which in two days plummeted 3(5 percent.

The investigation centers on whether some sellers had inside information of the company's quarterly earnings. Reportedly some brokers have said the company's earnings will be disappointing for the quarter. The company says it doesn't know yet what the earnings were. FPC AGAIN liRGF.S GAS DFRFGUI A I ION: I PC commissioner Rush Moody Jr. has again urged Congress to deregulate domestic natural gas prices.

SCHILLER BUYS STOCK: Schiller Industries Inc. has agreed to buy all the outstanding shares of Crystal Optics Research Inc. for shares of Schiller common. Crystal Optics is in Ann Arbor and grows garnets and ruby crystals for the laser and synthetic gem industries. TWA SAYS IT HAS PAID I.F.GAI.

FEES: Trans World Airlines has reiterated that all legal costs incurred I NEW YORK -Business and investment in-d spokesmen greeted President Nixon's Phase III program with lively interest and some enthusiasm Thursday. Initial response was enthusiastic in the stock market where the Dow Jones industrial average ran up over 14 points, but some comment indicated uncertainty a to how much freedom Phase III actually will allow. After the AP Phnlo THRF.I., AN I ICS OUT: Donald Rumsfeld, leaving as director of the Cost of Living Council, flashes a "three" as Phase HI of the New Economic Program is announced. He's leaving lo become ambassador lo NATO, and will be replaced by John Dunlnp ENTLR LAUGHINfi: Dunlop, who's replacing Rumsfeld, bursts into laughter during formal unveiling of Phase III. He's presently at Harvard University.

CAN BUDGET DO Till: JOB? Doubts Linger on Inflation could bring things to an explosion point. Chairman Stewart S. Cort of Bethlehem Steel Corp. said. "We are particularly pleased that the President lias again slated his determination to control federal government spending." Cort said the new program provides sufficient flexibility while continuing to make plain the need to further reduce the rate of inflation." Wall Street's first reaction to the news from Washington centered around a relaxation of controls over profit margins, hut there were some less favorable thoughts about possible inflationary effects and about labor's reaction.

"Essentially' the new program means an enhancement of corporate profits," Larry Wachtel, vice president for research at Bache commented. "Approximately 30 percent of the nation's large corporations were bumping against the profit margin ceiling in 1972, and for most of them there will be less pressure," he said. But he added that "there are questions in the market about wage demands of the unions and about inflation." Bradbury K. Thurlow. vice president for research at Laid law agreed about the profit margins but said Wall Street "may have some second thoughts on what's going to happen with regard to labor, and if the program is too permissive, it's always possible Congress will step in and enact its own regulations.

In a way, this program sounds like a return to jawboning." and down was emphasized in consultations with gornment in the Hughes ease have been paid as incurred. FIRESTONE TO EXPAND PLANT: Firestone Tire and Rubber Co. will make a "multimillinn dollar" expansion of its Albany, plant to provide capacity for steel-belled radial tire production. FUTURES PRICES: Coffee futures tumbled Thursday after being up the limit (two cents a pound) in morning trading. The prices fell four cents to the daily limit loss of two cents.

Copper futures, meanwhile, rose again. i '72 TOP YEAR FOR GM UNIT: Adam Opp AG, the West German subsidiary of GM. said it sold 904,000 cars in 1972. up from R24.35S in 1971. It said '72 was its most successful year.

SFC DELAYS RULE DATE: The SFC has delayed until June 30 the effective date of a previously adopted rule requiring companies to disc lose compensating balance arrangements they have with banks. A compensating balance generally is money left on deposit in a bank as a condition of borrowing money from the same bank. The rule was to have become effective Dec, 31. L1V REDUCES WARRANT EXERCISE PRICES: LTV Corp. has lowered the exercise price on three issues of its common stock purchase warrants.

FTC TO SHOP AROUND: The I TC plans an experimental program to survey comparative supermarket prices in selected cities. The survey will involve twice-monthly collection and publication of prices of 50 to 100 commonly purchased items sold by selected chains. WASHINGTON (A P) In relieving roughly three-fourths of the economy from mandatory wage-price controls, President Nixon turned to the federal budget Thursday as the main i vehicle for controlling inflation in 197.1. initial upsurge on the New York Stock Exchange, stock prices backed off sharply. The Dow finished at 1,051.70, up 5.R4.

Whereas many stock market analysts had enthusiastic comment, banking and industrial spokesmen generally were more restrained. I.eif Olson, chief economist for First National City Bank, said: "The big mistake being made by many is that they now think controls are off. In fact, price and wage controls still are formidable. But an important result of this announcement is that Phase III recognizes the need for less rigidity in the economy. Rigid controls had been damaging productivity, particularly in the lumber, cement and zinc industries." People in the health industry appeared shocked by the President's decision to leave the health industry under mandatory controls.

They said cost pressures were building inside the health industry and the president's action in leaving them controlled while removing controls from the prices of so many of their suppliers business and labor leaders, Shultz said. "I know that this is an old point, but it has really sunk in," he slid. Herbert Stein, chairman of Mr. Nixon's Council of Economic Advisers, said the administration's new wage-price program faces the realities of 1973. "We want to attack the inflation problem as it exists in 1973," he said.

WITH SOME modifications, the basic rules of Phase 2 apply in Phase 3. However, except in the food and health industries, the standards are voluntary. But Shullz the government is keeping a big "stick in the closet" to punish those businesses and labor unions which get out of line too far. But how will this work? "We are expecting reasonable compliance with this," said Stein, but adding, "we are not looking over the shoulder of everyone in the economy." In Ihe administration's view, the new system is "selfad-ministering." Companies and unions will know what the standards are and will be expected to follow them. If a company or union is found violating the voluntary standards, Stein said, "we have the authority to set ceilings in the case of particular firms and industries." The Internal Revenue Service will monitor wages and prices, hut with a reduced force eventually to 1.500 people instead of the 3,000 under Phase 2.

The decision also created many doubts, both in Congress and in the private sector, whether the new system of voluntary wage-price standards can achieve Mr. Nixnn's goals of reducing inflation to a 2.5 percent increase by the end of the year. BUT THE President's ecoiomic advisers believed that Phase 2 had served its purpose and should be dismantled. Hiev talked of counterproductive signs, wasteful spending practices by businesses, burdensome delays in acting on wage and price requests and a feeling by labor unions that they were being discriminated against. Vhile the new system of wage price standards will be backed up by the threat o' government enforcement, it is not being viewed by thp administration now as the key way to keep prices from kyrocketing.

Treasury Secretary George P. Shullz told reporters that the emphasis will be on keeping federal spending under control, arguing that most of the slack from the economy has disappeared in the recovery. A new burst of heavy federal deficit spending could trigger a new inflationary boom that would be difficult to bring under control, he said. 'I he relianc on fiscal and monetary policy to keep prices licliiian Businc Bank of Commerce of Hamtramc promoted Robert J. to v-p and cashier.

Crowley, Milner Co. promoted Richard J. Baker to execu OCT jo 1 1' O' Pinf.Mr-iON HOACn Ol FO VPN Mi micam OilK.f V. si.i.tsr, liiNn nouns SF- ffl's ft P- it tf ft" IAP SO! MfHlft. r.i.f..

Al 1. 1,. I Aq, Anfn 'S I'JSfl ini. -t ft fn'Tv Fi.h"i 'h. i I.

Ahm AVI If.n tive v-p and general manager, David G. Standart to v-p-sec-retary and downtown store manager, J. Stephen Kennedy to p-operations and Royal N. Perkins lo v-p-personnl and security. Hamilton International Corp.

of Farmington named Robert B. Young v-p administration, replacing three v-ps who have left the firm. Young, formerly v-p-investments a Alexander Hamilton ife Insurance Co. of America, a wholly-owned subsidiary of Hamilton, will le responsible for management services and O' U'F Or0( FP'I'A'iOV F4.rfN mihim SfRv CF Min-NO N-rl(sjn RONOS i PjF I iS C.ivIN icir nr 'Se t. ant ne' en-n Mr.

r.n In. I'M' 'iilf IMfl.i ll e-nw li.i.i., i re en i. a. ri'in i n.hh.ime.i i en in nn. n-n e.

len 197 IT' pen ri'e rfe.r. h0 no-ie. h.n' ng 'i'. ne- IM Ift4 l. I I 4 4.1 4S7 5 S' 1 1 1 s.h S4' 5' iR' e.6 as? vo In.

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id A' ii 'rwt- on" al It. nir'eni to. i. io ii-i, '(Hl of pmiripal airirMirt the.e nl il, I It.e.en in a.4 dn'e A i i h-ml- itn ae o.e i.o Li' pu 'i oi A i nt ifnmnr.nea nneie.1 roun.iii. aim li.d ri.e ol nt re.

Ii iinee on 1.1,1 i.ui 1 9' I oi hirh date e.r limit eave to o.ri, tneie.in, 4'JN BOR (OMTANV. TRIrtieF Unid Inii' O', II, .01 Raker EPA to Reveal Controls On LA Transit Monday Kennedy r'Hi- p'i rvn it tm ttP it.in ft. lr pn, V. ft iftm o.i Fvhfuflry IS 191 I ()0 prlr i nl (Ii) tho-B dfnh'i rwiri.rt onng thp i.q mherv .41. IV.

I AO. 19 MR 114 1HA lh Nvinh vf r4uy(iOFd tn rwriampt no ill rt i cj' nJ inwihie in tflet pt.o" linip O. II in rl ni rlol nt th oft" of 'h Ai.fAir,oi I' (. nn.po'if ArfiA.tw -id Ann Arhur ol tf.P ilt.np. I p' iiiniei 00'' ot ttip pr.u.

iptt OfiO Fit tcqell'pr O'f Jd 'b( on flirt oe em rtnt Al1 vint- tp.ftu bonds it-eld pf Wlrd 'O' rw.e't flnr)l O'l witti gll unrtiot niere.t (o.if.oiiv Ho at o-ri oHk at rt' Tf -tip oo fb. n-f l3, oi hh dfit tf.Qt 10 O' Jt ANN AlVpOC TO. 1ST COMPANY. IRiJMFI LKjted Ja. I legal means available to the EPA, was used, he said.

The unnamed official said studies showed carrot-and- (XyN, actuarial services. Vyf 1 Hygrade Food Products stick approaches like stiffly increased gasoline prices, freeway bus lanes, and car pools wouldn't do the job. A 4 ijSaL ft I w. 1 HOMs, f.iiV i.l. MOir Ml 12,000 SQ.FT.

Available End ol January Idtil wtrthoun oi light manulactui ing spaci. on Tiligraph Road at Oichaid Ukt Road Rwsonatjli rut Aititmontl 4 000 tllici IPX I il d.ii.M Call Mri G.Hn 353-1060 nrp, or Detroit appointed Clyde Riley executive v-p and John Stein as v-p-general manager, Detroit division, processed meats, succeeding Riley. Stein was formerly assistant v-p-processed meats division. Indian Head metal and automotive products group named Robert D. Rrod-erick president of extruded metals; Charles I.

F. president of Detroit Gasket-Pyramid; and Robert F. Mol- GOODfYEAU Quarterly Dividend No. 159 22.90 Per Common Share Perkins Standart Tp Young Riley 2S regions in IS slates were found to have such serious air-pollution problems that transportation controls were necessary. Ihe low quality of the reports led the EPA to superintend writing of the detailed and enforceable transportation outlines.

The EPA will publish in the Federal Register the specific guidelines for the controls that must be included in the plans for the respective states. They ill include procedures for administering and enforc-i Ihe transportation controls, and handling violations. The EPA will say the states must demonstrate that the control strategies are adc-quale to meet and maintain the national air quality standards. They must also contain a summary of data, computation and rationale used to develop the transportation controls. There is no deadline, yet i iv.) i -i i4.

NOTICE OF REDEMPTION FERRIS INSTITUTE. BIG RAPIDS MICHIGAN RESIDENCE HAUS REVENUE BONOS 1961 SERIES SERIAL BONDS DUE AUGUST 15 I93 AND AUGUST IS 1913 NO lit I IS HEREBY GIVEN lhal puituanl t. Ihe proviitont of the Trull Agreement dated February IS, 1961, between Ihe Boaid of Control foi Ihe Feint Imtilut. and Ann Arb.r Trull Company ol Ann Arbor, Michigan. Tiutlee.

II it Ihe intention of th. undenigned to pay and redeem on February 15, 1973, SIS 000 par amount of Iho obey, d.tcrrbed rev.nu. b.ndi b.arrng Ih. foil. wing numbeit: 1013 I.

1019 inclutive du. Auqult IS 1913 and 1030 I. 1030 du. Augutt IS. I93 Th.

rovenu. b.ndl to de.tqnaled lor redemption will become du. and payable laid redemali.n dot. and will en and alter that dale nt Ihe el Ihe liu.tee. Ann Arbor Trutt C.mpa.

ny. Ann Arbor Irutl Building, Ann Arbor, Michigan, ol Ih. current redemption pric. nani.lv 100 the orincraal amount thereof, tegelher wrlh in lerett accrued (hereon to toid redemption dote. All tuch r.v-nue bondt ihould be pie.ented tor payment and ledempnen wilh all unmaluied inler-eit coupon! attached thereto al ta.d office of the Truilee on February IS.

1973, ol which dale uil.ie.l thatl ceate I. actru. theieen ANN ARBOR TRUST COMPANY, TRUSIEE Ool.d Inmtoiy II 1973 MAZDA RENTALS RENT A NEW WANKEl ROTARY ENGINE MAZDA BY THE DAY OR WEEK AIL MODUS AAA RENT-A-CAR 647-7480 DpclcVAd Record IV7, Jnury 9, 1973 Febmiry 15. 1973 March 15, 1973 Payabln F. S.

Myers Secretary NOTICE OF REDEMPTION BY DOUGLAS WILLIAMS Fret ert BuslneM Writer The Environmental Protection Agency is girding itself to bite a very large, politically explosive bullet; Forcing the states to control transportation in order lo dean up the air. Monday in l-os Angeles FPA administrator William D. Ruckelshaus, acting under a court order, will announce controls for transportation for that area. That move, no matter which specific steps he proposes, is sure to ignite a major uproar as Ihe real costs of cleaning up Ihe environment start to disrupt public life. Another 27 air-quality control regions in IS slates are due to deliver control plans one month later, including Chicago, Dayton, New York and Philadelphia.

Michigan is not included. The F.PA considering the following items: Parking bans, gasoline rationing, staggered working hours, vehicle inspection systems, car pools, mass transit and mandatory pollu-tion-conlrol equipment for installation on older cars. THE HISTORY behind the coming events is this. The 50 states were each to submit implementation plans by Jan. 31, 1972, describing how they were going to meet the national air quality standards set forth in the Clean Air Act of 1970.

From among the 50 slates, STATI BOARD OF EDUCATION NORTHERN MICHIGAN COlllOI MARQUETTE, MICHI- 7 r. Tht fir Nubbgr Company Akron, Ohio 443IB AN REVENUE BONOS 19 59 SERIES, IFRM BONDS, SERIES 4 8S, DUE AUGUST 1969 NOTICE IS HEREBY GIVEN lhal puituant to Ihe p.evifioni ol lh Lull Aqie.ni.nl dnl.d Auauil I9S9 b.lwe.n IH. Slal. II" IKiJSUl Wyman Stem Boa.d .1 Educoti.n. Narth.m Michigan ticr, president ot Mdivi Brakes.

F. Joseph Lamb Co. of Detroit appointed James Baker to v-p-drilling division; Carlo Clavcnna to v-n-manufactur-inr; William Young to v-p-sales; and Charles Duke to v-p-proposal department. Masco Corp. of Taylor elected U.S.

Derdcrian as secretary and Arman R. Simone, president of Simone to its board of directors. Peerless Cement Co. of Detroit named Gordon II. Oliver v-p-marketing, Warren S.

Fo-gelberg v-p-operations, and William T. Wymnn v-p-admin-isl ration. Pontiac Stale Bank named Mrs. Carl Roselli, Mrs. Ray Richardson, A.

Joseph Staneff and Wilmer F. Rrvant as v-ps. S.J. Tutag Co. of Detroit IT'S HAPPENED Coll-q.

Maiqu.ll.. M.ch.qfin and Ann Al bot Tiuil C.mpany .1 Ann Afbor Michigan, Tru.l... Ih.i. hav. b.n diawn by lot for i.d.nipli.n arid il il Ih.

ml.nti.n ol Ih. undeiugn-d lo pay and i.de.tn on F.biU' nrf 1.1973 7 i .000 par amounl of Ih. obov. deicnb.d bond! boanng Ih. follow-ing 1.1101 numb.rt: BONDS.

KELLY, TOGETHER. for implementation of the controls, however. REPORTS of the proposals Ruckelshaus will make Monday in Los Angeles, which has a critical and most unique air-pollution problem, have been surfacing. The most severe proposal there will reportedly be gasoline rationing. An EPA official was quoted in the Los Angeles Times last month as saying that was a last resort.

Rationing was included in the plan only after every other 1166. 1395 1417, 1453. 1496, 15.16 1 595. 1616 ID43. I II HO 1951, 3003, 3073, 3116, 3175, I3U, 1306.

1 436. I45S, 1510, 1 569, 1596, 1 BOS. 1150, IMS 1966, 3007. 3095 3130. 3179, 1363.

1393, 1411, 1415. 1447, 1450, 1464, 1495, 1535 1 533, 1590, 1634, 1637, 1137, IJ40, IR69, 1176. 1943, 1945. 1994, 3000. 3051, 3061, 3109, 3H3, 3153, 3166 3314, 3344 1359 1311.

1 440, 1457, 1516, I S0, 1611, 1 1 1164, 1930, I99J, 3016 3107, 3 131, 3313, Oliver Forgelberg said it purchased Medical Chemicals Melrose Park, 111., a wholly-owned subsidiary of Meister Brau for an undisclosed amount of cash. The acquired firm will be operated as a wholly-owned Tutag subsidiary under thp name Medwick Laboratories Inc. Raymond Mpyers will be v-p in charge of salps nd William A.R. Wilson was promoted to p-production for Medwick. Tlit tevenu hnnrli lo d-nqnnlH lor re WXYZ-TV demption will berome due and payable on laid redemption date and will be redeemed it and after that dale at Ih.

olf.c. of Ihe action mm llutlee Ann Alhor Trull Company, Ann Arboi Ituil Burlding Ann Arbor, Michigan rne turienl lerlemphon pric, namely Closing Quolc Dividends 100 of the principal amount thereof, to gether with mtereit accrued th.reon lo laid edemption dale. All luch revenue bond. ihould he pretented foi pavm.nl and re 1 demption with all unmatured rntei.il cou-pnr attached th.t.to ol a6 ofhe. of th.

seems the shift from mandatory to voluntary controls is more- apparent than real. Things will be voluntary so long as everyone does what is expected. Tilfnrd Gaines, chief economist at Manufacturers Hanover Trust Co. Tiuele. en February I.

1973. al which date Directors of ird Motor Co. Thursday increased the regular quarterly dividend to 70 cents a share from 674 cents paid in previous quarters. The payout is due March 1 to shareholders of record Jan. 29.

ord did not say whether the 70 cents would constitute a quarterly ratp. cen.e I. accrue thereon ANN ARBOR TRUSI COMPANY. TRUSTEE lH Im.un.y I I 1971 iEirto4NMMNu.