Banner Graphic, Greencastle, Putnam County, 12 June 1973 — Page 7

Toeiday, June 12, 1973

Banner-Graphic, Greencastle, Indiana

Page 7

Insiders Stand To Profit From Info

ByJOHNCUNNIFF A P Business Analyst

NEW YORK (AP) — Every corporation develops sales and earnings forecasts to aid in making operating decisions. But then that information very often gets into the hands of a few insiders who stand to profit

by it,.

In the routine course of his studies, for example, a stock analyst is bound to learn of the projections and be able to add them to the assortment of fact and fancy from which his own prediction evolves. Presuming the wisdom of both the corporate seers and the analyst, those in the know can obtain a decided advantage over other investors whose only source is public information. Something like the amateur granting strokes to the pro. Noting that such occurrences were, in spirit at least, antithetical to the open trading markets it sought, the Securities

and Exchange Commission took on the problem ... and then left the decision up to the companies involved. The SEC ruled, in effect, that financial forecasts should be optional but regulated. Regulated companies that meet certain criteria would be permitted to choose to project or not to project “future economic performance.” Once an affirmative choice was made, however, the company would have to meet SECprescribed standards. But the choice itself was left up to the individual companies, and so the debate rages: to project or not to project. Here are the opposing views, as expressed by two of 1,300 companies that responded to a survey by the international accounting firm of Coopers & Lybrand. First, the negative view: “The view that if manage-

ENVELOPES

ment can give a forecast to an

\\V •Xv-

Greencastle Offset

20 S. Jackson St

653-4026

analyst it can as easily give it to the public is a little like saying that, since you can give hydrochloric acid to a chemist, you can give it to a child. “We are disturbed over the evident misunderstanding of the role and uses of forecasts ... management develops forecasts first and primarily as a basis for ... operating decisions essential to the running of the business ... “Obviously, the forecast setting objectives for the operation will be more liberal in its assumptions than the one pinpointing the weak spots. And the assumptions ... are not necessarily coincident with the operations forecast.” And the positive: "We believe that by making public earnings forecasts, a management eliminates the guessing game, reduces the possibility of one source getting privileged information, and creates an atmosphere in w hich developments can be discussed freely ... "We will recognize and hope stockholders will appreciate that forecasting is difficult and imprecise in any business and that it involves the art of judgment rather than the science of accounting technique.” Two views but, like bookends. there’s a variety of thinking between them. The survey found that more than 52 per cent of corporate decision makers are against public disclosure of financial forecasts.

Seattle Station Slates Watergate Warm-Up Show

G.l. Bill Trainees Up

ByJAYSHARBUTT A P Television Writer NEW YORK (AP)-KCTS a public TV station in Seattle, Wash., is airing a warmup show each night it broadcasts a videotape of that day's Senate Watergate hearings. It precedes the Watergate show with reruns of selections from the Senate’s ArmyMcCarthy hearings in 1954, with a three-man panel on hand to contrast those hearings with the one currently under way. The 1954 hearings were televised live and lasted 36 turbulent days, many of them bitter and tense. A few months after they ended, the late Sen. Josph R. McCarthy, R-Wis., became the first senator in a quarter of a century to be censured by his Senate colleagues. “We're reaching a new audience which has never seen the McCarthy hearings," says Richard Meyer, general manager of KCTS. “The young people who have called up are just completely fascinated.” Meyer said the ArmyMcCarthy program of KCTS starts an hour before the videotaped Watergate hearings. The 1954 hearings originally were recorded on kinescope but were transferred to tape at KCTSJhe said. The panelists on the pre-Wa-

tergate program he said, are himself. Bill Shadel and Fendall Yerxa. Shadel and Yerxa are professors of communications at the University of Washington. Shadel was CBS’ chief congressional correspondent at the Army-McCarthy hearings and Yerxa the city editor of the now-defunct New York Herald Tribune during the McCarthy Era, Meyer said. “We're not spending much time talking — just a little bit at the start and a little bit at the end to put it into perspective,” Meyer said. He said the kinescopes of the Army-McCarthy hearings were supplied by station KING-TV in Seattle, an NBC alfiliate which found them in the basement of its studios. The idea of broadcasting the two hearings back to back came up when the Watergate hearing first began, Meyer said. “Everybody here was asking, ‘Is this going to be another kind of McCarthy hearing?,” he said, adding that his colleagues also made comparisons of the issue of executive privilege then and now. He mentioned it to Enc Bremner, KING’S general manager, and said things began rolling when Bremner mused.

‘“It seems to me that we carried this (the Army-McCarthy hearings) some 20 years ago The first Army-McCarthy rerun was broadcast last Tuesday and continued through Thursday. More of those hearings will be broadcast tonight and throughout this week’s Watergate hearings, Meyer said.

During the seven years that G.l. Bill training has been available to Vietnam Era veterans, the number of trainees has far surpassed the total of the 13-year Korean Conflict program, and the number in college has approached the record set by the 12-year World War 11 G.l. Bill. The current bill became effective June 1, 1966, for all men and women with military

Explorer On True Course To Moon

CAPE KENNEDY Fla. (AP) An Explorer satellite darted on a true course toward a moon orbit to record deep space radio signals that could extend man's knowledge of the universe. Launched from Cape Kennedy on Sunday, the 442-pound Explorer 49 satellite is to be fired into lunar orbit Friday. Circling 682 miles above the moon’s surface, the SI 1.1 million payload is to make the most comprehensive study yet on low frequency signals from radio sources within the galaxy and beyond. An earlier radio astronomy satellite. Explorer 38, gathered

HURRY IN! IT S A

AAONTGO/I/IER1

RCHER

*10 TO *20 OFF SIGNATURE AIR CONDITIONERS TODAY!

"fit MM (V"'Ll 'll) hi!! J'Im 1 i im ! IH| i'll Hll Mil "II ill, 'III ll| "l| III HI "I "l 'll 111 "I 1 11 "I 'll 'll Ml 'inn

■ 11

Mil • 11111 mill

!!;!!!

I lL --C-- —

L LU

*10 OFF 5,000 BTU AIR CONDITIONER

REGULARLY 109.95

Cool air is discharged through front panels Foam filter traps dirt particles - easy to clean Pushbutton control — easy to use even in dark Cools 220 sq. ft. - plenty for average bedroom Removes 4.8 gallons of moisture a day from air Sturdy aluminum cabinet is 20xl3gxl8 3" deep Compact size fits windows 22 in. to 36 in. wide

WARDS SERVICE IS NATIONWIDE!

Model 5103

8,000 BTU AIR CONDITIONER $15900 discharge panels up to 380 sq. ft. Pushbutton convenience

15,000 BTU AIR CONDITIONER

Reg. 279.95

$249

Model 521 2

Multi-room cooling Automatic thermostat Easy-to-clean filter

20,000 BTU AIR CONDITIONER

Reg. 289.95

*259'

• Cools several rooms • Automatic thermostat • Two cooling speeds

23,000 BTU AIR CONDITIONER

Reg. 329.95

$29900

Cools average-size home Automatic thermostat Two speed cooling

Model 5203

valuable information on these puzzling signals while orbiting the earth, but its data often was obscured by background noise from earth's magnetic field. While orbiting for long periods on the far side of the moon. Explorer 49 will be isolated from the earth noise and thus be better able to record these bursts of radio energy. Most of the energy is generated by radiation sources in distant celestial objects. Explorer 49 is the last moon shot planned by the space agency in the foreseeable future. Brundoge, Princess To Marry CHICAGO (AP) — Avery Brundage, 85-year-old former president of the International Olympic Committee, will marry a 37-year-old German princess who served as a hostess at the 1972 Munich Games. The bride to be is Mariann Princess Reuss, a descendant of a royal family and related to most of the royal houses of Europe. Announcement of the engagement was made jointly by the multimillionaire Chicago hotel owner and the mother of the future bride, Stephanie Pnncess Reuss, of GarmischPartenkirchen, Germany. Brundage was IOC president from 1952 through 1972. His wife, Elizabeth, died almost two years ago. Sullivan, Thach Meet In Paris PARIS (AP)- Henry A. Kissinger’s deputy, William Sullivan, met with Nguyen Co Thach, second in command to Hanoi’s Le Due Tho, to lay groundwork for Kissinger’s scheduled return to Paris. Sullivan confirmed that Kissinger is expected back in the French capital on Tuesday to resume his discussions with Tho on plugging holes in the Vietnam peace agreement. Stocks Vacillate Over Inflation

NEW YORK AP - The stock market was mixed yesterday, as Wall Street vacillated between concern over inflation and hopes President Nixon would announcea new plan to combat it. The Dow Jones average of 30 industrials, which had risen more than a point in early trading, was off2.18 to 917.82 at noon. The NYSE index of some 1,500 common stocks was off .01 to 56.28. But gaining issues held a 7-to-4 lead over declines in light trading on the Big Board. On the American Stock Exchange, the price-change index was up .04 to 22.61, and gainers held a comfortable lead over losers. American Telephone warrants headed the most-active issues on the Big Board after a block of 103.600 shares traded at 5 7/8, unchanged. Some oils were strong, reflecting the growing demand for gas and a bullish article on the industry in Barren’s weekly. Phillips Petroleum was up 1 1/8 to 51 3/4, Exxon was up 3/8 to 98 1/2, and Standard Oil of California rosel/6to785/8.

service since January 1955 and more than four million persons have taken advantage of its provisions. The Korean Conflict bill enrolled 2.4 million veterans between July 1952 and January 1965 and the initial G.l. Bill, available to the 15.6 million veterans of World War II, enrolled 7.8 million between 1944 and 1956. College level trainees under the current program have totaled more than two million and the World War II aggregate of 2.2 million college enrollees is expected to be surpassed during the fall semester. Only L2 million veterans went to college under the Korean Conflict bill. Fewer than 30 per cent of World War II G.l. Bill trainees studied at college level compared to more than 50 percent under the present program. Success of the current program is helped by a number of new and liberal provisions which include “free” entitlement to veterans who need high school or other preparatory work to meet college entrance requirements, tutoring at VA expense, and full educational entitlement on completion of military tour, regardless of its length. In addition, unprecedented efforts have been made to encourage veterans to take advantage of their benefits. Veterans Administration education programs for disabled veterans and dependents of veterans have grown also.

Ride Canoe Free With 30 gal. Of Trash By DALE BURGESS Associated Press Writer High water and rampant vegetation temporarily have hidden the results of one of Indiana’s more interesting environmental improvement efforts this spring. They’ll show again, come winter. The Shelbyville Park Department has been canceling rental charges on its canoes for anyone who will paddle up and down Blue River gathering trash. Bnng back two 30-gallon trash bags full of litter and you’ve had a free canoe ride. “When somebody brings in something like an auto tire, he doesn’t have to have both of his bags full,” said Supt. Randy Hildebrand. “So far, nobody has tackled some chunks of abandoned refrigerators that are available on the banks." Hildebrand says he was sort of surprised that there aren’t any fish bait cans or other angling debris in the two tons of litter collected so far. “The fishermen along Blue River are pretty tidy,” Hildebrand said. “So are the boat people. Most of the trash seems to come from river cabins.” The two ton collection includes auto parts, steel scraps, a lot of paper and plastic bags full of garbage. And cans and bottles. Some heavy stuff under a railroad bridge poked a hole in one of the canoes early this month. Police rescued the occupants. Shelbyville has seven canoes for rent at Sunset Park. For people disinclined to collect trash, the charge is $4 for 90 minutes, or $2 apiece for parties taking three or more canoes. There is a $12 charge per canoe ($6 for parties), for a 25mile float trip down to Edinburg. A park truck picks up the canoes there. With or without trash bags, you have to be 17 years old and wearing a life jacket to take out one of the canoes. The project has been so popular Hildebrand says the trash collectors may have to pay half-fare next year. The city needs some income for repairs and replacements.

FREE UP TO 100 GALLONS OF GAS When You Finance Your Car Or Truck With CENTRAL NATIONAL BANK