Page Six THE MICHIGAN DAILY Thursday, August 15, 1968 Pa e.i.T EM.H GA.AI YT h rd..A u ut.. 1 6 _F- _________ ___________ fir i i i LEAKS SECRET: Merrill Lynch charged with fraud American Airlines Bank of the Commonwealth Burroughs Corporation Continental National American Group Detroit Bank and Trust Company Ernst & Ernst Ex-Cell-O Corporation Federal-Mogul Corporation Ford Motor Company General Motors Company' J. L. Hudson Company Kelly Services S. S. Kresge Company Kroger Company Lockheed Aircraft Corporation Lybrand, Ross Bros. & Montgomery Michigan Bank Mobil Oil Company Montgomery Ward & Company National Bank of Detroit Peat, Marwick, Mitchell & Company Price Waterhouse & Company Ross Roy, Inc. Rutten, Welling & Company Touche, Ross, Bailey & Smart U. S. Government (Internal Revenue Service) Vickers, Inc. Arthur Young & Company I The firms listed above will provide University of Michigan un- dergraduate juniors interested in Business Administration with an opportunity to be employed as a member of their manage- ment organization in between academic semesters. Students who qualify will be ppid an average of $550 per month. Ij si '', I;,I 1# , (ij i{ f f i. i i I;EI ,Eli WASHI4GTON ()-The Se- curities and Exchange Commission has leveled fraud charges against Wall Street's biggest securities firm on grounds that it leaked a big-money secret only to certain major investors. The regulatory agency set no date Tuesday when it announced hearings would be held on char- ges by its staff against the na- tion's biggest and best known broker-dealer, Merrill, L y n c h, Pierce, Fenner & Smith. Nine officers and five salesmen of the firm, as well as 15 insti- tutional investors-the alleged receivers of the hot tip from Mer- rill Lynch-also were called on Ithe carpet. The investors included the Mad- ison Fund and Dreyfus Corp., top mutual funds. "We are convinced that none of our people acted wrongfully and you can be sure we will defend our position vigorously," Merrill Lynch said in a statement issued in New York. John Haire, chairman of An- chor Corp., into which Investors Management Co., one of the cited firms, was consolidated recently said: "To the best of our knowl- edge, we did not receive any non- public information regarding Douglas Aircraft from Merrill Lynch which was not available to us from other sources." According to the SEC, Merrill Lynch was helping Douglas Air- craft Co. prepare a bond issue when it learned the big plane- builder's earnings, contrary to earlier optimistic reports, were in bad shape. The SEC version of what fol- lowed is that this word passed through the Merrill Lynch per- sonnel to a chosen few investors and that immediately thereafter these began to sell off their hold- ings in Douglas in the expecta- tion that its value was about to drop. Meanwhile, the regulatory agency said, other Douglas share- Maddox leaves the convention, vows opposition to 'liberals' 4 owners were left in the dark- indeed, Merrill Lynch continued to sell Douglas to anyone w h o wanted to buy, the SEC said. The dumping lasted half a week-until June 24, when Doug- las publicity announced it might be faced with a no-profit year. During the unloading, the SEC said, the large investors it has cited cleared their portfolios of 190,000 shares of the unwanted stock. An informed source said I Iii i FOR IMMEDIATE INFORMATION- CALL TODAY FROM 1:00 p.m. to 8 p.m.-761-6536 CHICAGO P) -- Gov. Lester Maddox withdrew as a candidate for the Democratic presidential nomination yesterday and headed back to Georgia promising to campaign against the party's nominee in the general election. As Maddox endedhish10-day candidacy, which never had the support of more than a handful of Democratic National Conven- tion delegates, he sought without success to withdraw convention credentials of Georgia regulars who agreed to sit alongside a rival slate headed by Negro State Rep. Julian Bond. Maddox denounced the conven- tion's decision to split Georgia's votes evenly between Bond's slate and the regulars he and State Chairman James Gray had select- ed. About one-third of the 64 regulars had walked out Tuesday night when the convention adopt- ed the compromise seating plan. At a news conference, Maddox said he talked Tuesday night with former Alabama Gov. George C. Wallace. He left open the pos- sibility he would campaign openly *or Wallace's third-party presi- dential bid, saying he would have an announcement next week. "I'm not going to oppose George Wallace," he said. "... I so advis- ed him last night." Maddox, asked whether he would support Republican presi- dential nominee Richard M. Nix- these shares sold for some $4.5 million more than they would have brought if traded at the price that prevailed June 29. To reward Merrill Lynch for sharing the secret with them, the SEC said, the favored customers, when making subsequent large. transactions with other firms, would direct that the commissions be split, part going to Merrill Lynch. In Wall Street parlance, t h i s is a "give up," a practice the SEC has already drawn a bead on in hearings it opened in July. The New York Stock Exchange, formerly a defender of give ups, announced recently it was pre- pared to see them banned. Merrill Lynch personnel cited were Winthrop Lens, chairman of the executive committee; Gillette K. Martin, senior vice president; seven vice presidents and f i v e salesmen. on, replied: "I wouldn't leave the Democratic party, the state party1 anyway." He decried Democratic liberals1 as "socialists who have surrend- ' ered to the beatniks, the criminalj element of this country, the mis- fits and the misguided." Standing beneath seven huge American flags in the C o n r a d' Hilton Hotel's ornate Grand Ball- room, Maddox referred to the party's leaders and said "in obed- ience to God and loyalty to my country, I denounce them . .. " I the convention credentials of all the delegates he and Gray ap- pointed. But, Johnson said, par- ty officials refused on grounds a delegate's credentials could not be withdrawn after he had been forinally certified. Biafra braces for assault LAGOS 0P) -- Federal spokes- men said yesterday the Nigerian # IbTIT "I'm not going to support any army was advancing on all fronts of the liberal nominees in the gen- after the supreme commander, eral election," the balding gov- ernor said, adding that all present Maj. Gen. Yakubu Gowon, order- candidates for the Democratic ed a final assault to crush secess- nomination fall into his category I ionist Biafra. of liberal. "The final assault has begun," He replied "Yes, sir" when ask- said a Gowon aide. He did not ed whether he would oppose, and divulge details of the fighting. campaign against, Vice President The Biafrans claimed in a radio Hubert H. Humphrey, the party's broadcast that they stopped cone likely nominee, federal column nine miles south Maddox, who, had resigned as of Aba, their main administrative a convention delegate Monday, and communications center, and said he and some of Georgia's pushed another column back to regulars were returning to At- the Imo River 15 miles south lanta by plane yesterday after- of the town. r 7 noon.- When the convention opened its Wednesday session, 37 of the reg- ulars took their seats on the floor with Bond's slate. One of the regulars, State Seri. Leroy Johnson' of Atlanta, said Maddox had tried to withdraw. They also claimed Biafran troops forced federal troops to re- treat 40 miles north of Aba into the sector controlled by Nigeria's 1st Division. The Biafrans said they were under "indiscriminate and heavy bombardment on all fronts." . ti ,, ' r. n. J. , . ;fir rn' v t .... . "'. Maddox had tried to withdraw bombardment on all fronts." I 9. 4 i shot through with green and burgundy stripes cooperate with low-down wool sweater vests and DacronO/cotton oxford cloth shirts to let Miss J exchange Thirties swagger for flirty ruffles in a flash. Sizes 5 to 13. A. Hip-stitched pleated plaid skirt. 16.00 Light blue ruffled blouse. 11.00 B. Straight-leg belted pant. 16.00 Blue long-sleeve Orlonoturtleneck. 8.00 I Burgundy cabled cardigan vest with belt. 16.00 C. Belted plaid culotte. 16.00 Light blue shirt with french cuff. 8.00 Burgundy sweater vest. 12.00 WAWAr'J S~llrII I