What's ss Businss and Fmanc Worid-Witk
I all Sti'etJ urnal 1 9 C tat antiC ‘, ug C l 1
Pt Qt eat II at cal Saen apapets T e V/ Street l t r ( 88)
I What's News
Business and Finance
DCA agreed to acquire CIT. Finan
1 cia) for $65 a share, o a total of
$1.35 billion in cash and preferred
stock. The tentative terms, set In re
sumed talks, would result in one of the
largest corporate combinations.
rY o i Pg 3)
* * *
Exxon delayed deciding whether to
buy Reliance Electric after a U.S.
court cleared the purchase but limited
Exxon's control over the company.
Under the $L17 billion offer, Reliance
holders therefore may withdraw their
tendered shares.
, 3)
* * *
A prime rate of 12'4% before the
end of the month is possble, analysts
say, if pressures from sharp short
term interest rate rises don't ease. A
Fed panel voted on July 27 to push up
the range of the federal funds rate, a
base for determining other short1erm
fees, to 1O % to 1O%% The Fed re
cently indicated it wants the rate as
high as 11%
P e 2)
* * *
Corporate profits fell an adjusted
2.4% an the second quarter after a
7.3% first period gain, the Commerce
Department said. Officials predicted
that business won't soon sharply cut
employment and production.
Page 2)
* * *
Antitrust clearance will soon be
given to Exxon, Standard Oil (Ohio)
and Atlantic Richfield in an adminis
tration attempt to gain their help if
nducing the $12 billion Alaska High
way ga&pipeline project.
)Storv e Peg.)
* * *
Westinghouse and Conoco will de
velop a uranium mine that will help
Westinghouse meet future legal settle
ments over canceled uranium supply
contracts. Separately, Westinghouse
reached a tentative contract accord
with one of its striking unions, but
chances of quick settlement with two
other unions appeared dam.
, Page )
* * *
Faster depreciation of steel coim
pany assets will result from a Trea
suay decision to shorten the span of
such write offs to 12 years The move
could bring the industry $118 rnilhon an
cash over the next three years
en Page )
* * *
G&W's board voted to end discus
sions with the SEC staff after a three
year probe of the company's affairs
The decision could lead to SEC court
action against G&W
)S)ory en Peg. )O)
* * *
Holiday Hans will sell its Trafiways
bus line for $100 million to an Invest
ment group The transaction will re
suit in a 1979 loss of about $12 million
( tOrv en Page )
* * *
Consumers' Gas proposed a $350
million merger of its gnus unit and
Home Oil, an affiliated company.
IMory en Page 4)
* * *
Del Corp. agreed in prwcple to sell
three of its computer units to Corn
puter Sciences and one unit to Xerox
for a total of $41 million. Separately,
Itel was sued by two holders in U.S.
court on charges of fraud.
IS )ory en Page 4)
* * *
American Express faces an VrC
probe over an ad campaign that im
plies difficulty getting other travelers'
checks refunded abroad and over the
company's own refund performance.
en Page )4)
* * *
VW of Anierica boosted prices on
1980 model Rabbit subcompacts an av
erage $261 from the most recent 1979
quotes VW Is the first domestic auto
maker to price new cars, but rises are
expected from other companIes.
(ataa en Page 4)
* * *
The U.S. dollar strengthened
against all major European currencies
and closed the week up from week
e lie levels. Gold's price rose $2.70
to $300.55 an ounce.
t4tery en Page 4)
* * *
Markets
Stocks: Volume 31,630,000 shares Dow
Jones IndustrIals 883.36, off 0.68; transports'
lion 268.70, off 1.26; utilIties 109 13, up 0 13
Bonds. Dow Jones 20 bonds 86,01, up 0,15,
CommodltIes Dow Jones futures index
411.75, up 1.74; spot index 401.49, up 2.32.
The Edltoda Page
Arthur [ ffer, expositor of the “L ffer
curve,' attacks British Prime Minister
Margaret Thatcher for a “substantial” in'
crease In taxation despite her campaign
rhetoric, (Page 12.1
Wor1d Wide
ISRAEL'S CABIN o osed U.S. pro'
posals for a new UN resolution.
The cabinet said It “rejects unequivo'
cally” Washington's suggestion for Security
Council language giving guarded support for
Palestinian rights. The proposal, aimed at
encouraging Palestinian participation in the
peace process, “contradicts the commit
meat of the U.S. to Israel,” a cabinet
spokesman declared
later, U.S. Mideast envoy Robert
Strauss emerged from a meeting with
Prime Minister Begin, saying the U.S. will
consider Israeli and E 'ptlan reservations
before proceeding with the plan. The Secu-
rity Council will take up the Palestirian is
sue this week,
Rejection of the UN initiative was an
other sign of the strain in U.S. 1sraeli
relations Israeli officials are said to be
puslung for a Carter-Begin summit ti
ease the tensions.
UN Ambassador Andrew Young, who re
signed after a furor surrounding his meeting
with a Palestine LAberation Organization of
ficlal, said U.S. policy toward the PLO Is
“ridiculous,” He said peace won't advance
unless the U S opens communications with
the PLO. But policy changes are being
blocked
* * *
CARTER USED his Mississippi River
trip to plug his ener program.
A crowd in Alma, Wis., was urged by the
President to “contact your own members of
Congress” about supporting his program
He specifically mentioned his plan to tax the
so-called windfall profits oil companies will
make when price controls are lifted Carter
made a similar pitch in Prairie Du Chien,
Wis., where he took questions from a radio
audience.
At Mmnesota city, Minn,, the Presi-
dent denied the steamboat trip was ii
partisan foraij “It's a campaign for a
stronqer countri/ and a comprehensive
energy poliq,, “ he said.
Separately, the White House announced
last wgek that Uoyd Cutler, a prominent
Washlngtol lawyer will become presiden-
tial counsel. He succeeds Robert Lipshutz, a
Georgian who resigned In the recent White
House staff shake up
* * *
IRAN'S ARMED FORCES were mobl '
lized to crush a KUTdISII rebellion.
Ayatollah Khomeini ordered all leaves
canceled and called on reserves and retired
soldiers to report for duty. Iranian troops
Saturday retook the western city of Psych
from rebels, but Khomeini said new fighting
had erupted In the town of Sanandaj, Kur-
dish sources denied the report, and the gov
ernment later said it controlled Sanandaj,
Khomeini also banned the Kurdish Demo-
cratic Party, Its leaders were being sought
for Inciting the uprisIng, the government
said Eleven Kurdish rebels were executed
Saturday.
There were reports that some air
force perronnel had balked at bambinq
Paveh The powerful Islamic Revolution-
arv Council decreed that disobedient
troops would be tried and perhaps
executed,
* * *
More than 50 miles of Texas coast were
fouled by crude oil from a Mexican well blow-
out, and scientists warned that even more
could hit the beaches. The oil extended from
the Rio Grande to 12 miles north of Mans
field Cut. Little of the oil apparently reached
the inland watei ays where shrimp lye and
breed
* * *
Cambodia's pro-Vietnamese regime de-
clared ousted Premier P01 Pot and his dep-
uty, leng Sary, guilty of killing more than
three million people. Both were sentenced in
absentia to death P01 Pot and leng Sary
disappeared into the Jungle after last Janu
ary's Vietnamese Invasion of Cambodia.
* * *
Two Sevlet cosmonauts returned to earth
after a record-breakIng 175 days in space
aboard the orbiting Salyut 6 statIon The
capsule carrying Vladimir Lyakhov and Val-
ery Ryumin landed In Soviet Kazakhstan,
the government news agency Tass said.
Both men appeared to be healthy.
* * *
Joshua Ntomo and Robert Mugabe, lead
ers of the guerrilla groups fighting the Zim'
babwe Rliodeslan government, met In Dar
es Salaarn, Tanzania, to discuss the British'
sponsored peace talks set for Sept, 10. They
were trying to work out a joint program be-
fore respondIng to an invitation to the l n
don talks
Both guerrilla leaders rejected BritaIn s
call for cease 'flre. Nkomo ruled out a truce
until ‘that which has brought about the war
has been removed.”
* * *
Three Nigerian parties charged that Al
hail Shehu Shagarl won the recent presIden
tial election through fraud, Shagati's oppo.
nents also charged he failed to meet a re
quirement that the winner poll no less than
25% of the vote In at least two-thirds of the
19 states. Shagarl Is scheduled to take office
Oct. 1
* * *
Fofly seven Army sergeants and one su-
pervising officer have been relieved of du
ties In a three-month old probe of recruitIng
fraud, the Defense Department announced.
The Investigation was begun after officials
found evidence some recruits may have got
Illegal coaching on tests, Three of the ser-
geants face court martial
* * *
Pope john Paul H called for a resump-
tion of ties between the Vatican and Chinese
Roman Catholics. Speaking at the papal pal
ace at Castel Ga dolfo, he said there had
been a “thriving church” in China before
the Communists came (0 pour In 1949, Vat-
ican sources said the remarks were a diplo-
matic overture to Peking,
Rep oduced valh perri svon of the copynght ov re Further eproduchon pro nbted v thou) pe m svo 1
