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This collection, digitized in collaboration with the Michigan Daily and the Board for Student Publications, contains materials that are protected by copyright law. Access to these materials is provided for non-profit educational and research purposes. If you use an item from this collection, it is your responsibility to consider the work's copyright status and obtain any required permission.

October 08, 1974 - Image 10

Resource type:
Text
Publication:
The Michigan Daily, 1974-10-08

Disclaimer: Computer generated plain text may have errors. Read more about this.


Pace Ten

THE MICHIGAN DAILY

I

Elusive

Arab agents offer industries

financial aid through low interest loans

NEW YORK (IP) - Industries
and utilities, starved for financ-
ing in these tight-money days,
are receiving numerous offers
of loans at low interest from
elusive agents who say they
represent Arab oil money.
Though one financial consult-
ant said two or three such loans
had been completed, all firms
contacted denied receiving any
and said they knew of no com-
panies which had done so.
"We chased maybe 20 of the
offers, but they led nowhere,"
said Edward Hennessey Jr.,
senior vice president for finance
of United Aircraft Co.
"THEY OFFER, say, $100
million or $200 million at a ri-
diculously low rate like 6 or 7
per cent with no interest pay-
ment until the end of 20 years,"
he said.
Hennessey, whose firm is lo-
cated in East Hartford, Conn.,
said most of the calls came
from individuals who left no
number and promised to call
back.
One man, he said, asked him
to come to New York to meet
with an Arab "in a dark cor-
ner of some restaurant," but,

canceled the meeting before theC
day arrived.
S I M I'L A R STORIES.
were told by financial officers
at other firms. They said none
of the agents asked for advance
fees but that they usually
wanted large fees should the
loans be made. Most were re-
ported to be Americans; some
spoke with accents.
The offers come at a time
when corporations are pressed
to raise money to pay off debts
and finance expansion and
modernization.
A recent New York Stock
Exchange study predicts a $650
billion shortage of investment
capital over the next decade.
Exchange Chairman James
Needham said the shortage
threatens the development of
housing, energy and m a s s
transit, and could reduce the
number of jobs.
RICHARD HARDY, vice presi-
dent for financial planning of
General Telephone and Elec-
troinics, said he had been ap-I
proached an average of every
two weeks since last March by
people calling themselves fi-
nancial brokers, money finders

or consultants.
He said they offered 20-year
loans of oil money at interest
rates varying from 7 to 9 per
cent. The usual rate for 20-
year money is 10 or 11 per
cent.
Michael Cook, treasurer of
Florida Power and Light Co.
estimated he had talked to 50
people about Arab money. Some
of them, he said, were people
who came to him; others he
contacted because he had heard
they might have access to
money.
COOK SAID he alsoesought
out a member of the Saudi

Arabian royal family living in
Washington and asked his opin-
ion of whether such money
could be obtained.
Morton Lewis, vice president
for finance of Dayton Power and
Light Co. in Ohio said he had
one such call, from a man who
said he was a Saudi agent and
offered 20-year money in $10
million increments at 72 per
cent.
"A CORPORATE treasurer
will go to the ends of the earth
to save money," said Lewis, "so
I checked it out on Wall Street.
No one knew of any such deal
closing, and the man never

called back."
"He said it would be two or
three years before they feel
comfortable with this kind of
investment," Cook said.
None of the companies could
supply a name or telephone
number of anyone who had con-
tacted them.

Tuesday, October 8, 1974
( E. A. DUPONT'S 1926
VARIETY (at 7)
This German silent classic expres ionikts sh w- the thoughts of a man driven
o murder against a background of the lives of three trapeze performers
in a Berlin circus. With piano accompaniment.
JOHN FORD'S 1949
She Wore a Yellow Ribbon (at 9)
JOHN WAYNE plays an aging calvary officer who out on his last mission
to make peace with a new Indian uprising. A beautifully photographed
color film (it won an Academy Award) in the pictoral Monument Valley
that reveals Ford's growing melancholy for a period that no longer exists.
ADM $1AD.
CINEMA GUILD TONIGHT at 7 & 9 ARCHITECTUREAUD.

I

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a

-

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JII

U

1

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1

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a Io.
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I

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Michigan Savings & Loan Asso
111 South Main Street
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III Ot-v IT[ _1 h e IA IL r-r-T AKNIN I A rn,(r-f n AI/'I Ii/'A N I A OQ \O ')1 'Al ,C)A 'UYV"

I

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