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( SEC Docket , Vol . 14, No. 3 - J une 7) MAY24 1977 May 23, 1977
COURT ENFORCEMENT ACTIONS
U.S. SECURITIES AND
EXCHANGE COMMISSION
COMPLAI NT NAMES WORLD MI NT, I NC. , O' l HERS
The Los Angel es Regi onal Of f i ce has announced t he concl usi on of t he Commi ssi on' s ci vi l
i nj unct i ve act i on agai nst Wor l d Mi nt , I nc. and 13 ot her def endant s. On May 20 1974
t he. Comm~ssi on. f i l ed a ci vi l i nj unct i ve act i on agai nst Wor l d Mi nt , I nc. of Lag~a, ,
Ca11f or n1a, Sh1ps St or es, I nc. of Gar den Ci t y Sout h, New Yor k, Al exander " Ozzi e"
Cur t i s, Mor r I ndust r i es, I nc. and Mi l t on Cohn, al l of Bever l y Hi l l s, Cal i f or ni a
Nevada Secur i t i es Tr ansf er Cor por at i on of Laguna Beach, Cal i f or ni a, Har ol d B. si l ene
and Rober t C. Goodwi n, bot h of San Cl ement e, Cal i f or ni a, H. Dewor t h Wi l l i ams and J ohn
War r en W~l l i ams, bot h of Sal e Lake Ci t y, Ut ah, Nat han Debi n of West bur y, New Yor k,
Canon Dr 1ve Cor por at i on of Bever l y Hi l l s, Cal i f or ni a, Fr ances H. Cor di ng of Van Nuys,
Cal i f or ni a and Eugene D. Massar o char gi ng t hemwi t h vi ol at i ons of t he r egi st r at i on and
ant i f r aud pr ovi si ons of t he secur i t i es l aws i n t he sal e of t he secur i t i es of Wor l d
Mi nt , I nc. and Shi ps St or es, I nc.
On November 30, 1976, t he Honor abl e Rober t Fi r t h, u. S. Di st r i ct J udge f or t he Cent r al
Di st r i ct of Cal i f or ni a, ent er ed or der s per manent l y enj oi ni ng Cohn, Goodwi n, Debi n,
Cor di ng, and Canon Dr i ve Cor por at i on, f r om f ur t her vi ol at i ons of t he r egi st r at i on pr o-
vi si ons of t he secur i t i es l aws and Cur t i s f r om f ur t her vi ol at i ons of t he r egi st r at i on
and ant i f r aud pr ovi si ons of t he secur i t i es l aws. The Cour t al so or der ed Cur t i s t o
r epor t al l of hi s secur i t i es hol di ngs and t r ansact i ons i n publ i c compani es t o t he
Los Angel es Regi onal Of f i ce on a quar t er l y basi s. The def endant s consent ed t o t he
ent r y of t he i nj unct i ons and t he consent s of Cor di ng, Debi n and Canon Dr i ve Cor por a-
t i on wer e made wi t hout admi t t i ng or denyi ng t he al l egat i ons i n t he Commi ssi on' s com-
pl ai nt .
Addi t i onal l y, on December 23, 1976, J udge Fi r t h ent er ed or der s en) 01n1ng Mor r I ndus-
t r i es and Nevada Secur i t i es Tr ansf er Cor por at i on f r om f ur t her vi ol at i ons of t he r egi s-
t r at i on and ant i f r aud pr ovi si ons of t he secur i t i es l aws. BOL~ def endant s consent ed
t o t he ent r y of t he per manent i nj unct i ons.
On Apr i l 18, J udge Fi r t h ent er ed or der s as t o t he r ema1n1ng t hr ee def endant s. ( On
Mar ch 18, 1975, J udge Fi r t h ent er ed an or der of per manent i nj unct i on by consent ,
wi t hout admi t t i ng or denyi ng t he al l egat i ons of t he Commi ssi on' s compl ai nt , agai nst
Shi ps St or es, I nc. and on November 4, 1976, ent er ed def aul t j udgment s of per manent
i nj unct i on agai nst Wor l d Mi nt , I nc. and Har ol d B. Si l ene. ) Under t er ms of a set t l e-
ment , H. Dewor t h Wi l l i ams and J ohn War r en Wi l l i ams wi l l r emai n under a cour t or der
pr oscr i bi ng f ur t her vi ol at i ons of t he secur i t i es l aws. An or der di smi ssi ng t he act i on
as t o Eugene D. Massar o was al so ent er ed at t he r equest of t he Commi ssi on. Massar o
i s mi ssi ng and bel i eved t o be deceased. ( SEC v. Wor l d Mi nt , I nc. , et al . , C. D. CA. ,
Ci vi l Act i on No. 74- l 378- RF) . ( LR- 7928)
COMPLAI NT NAMES CHARLES A. CARTER, O' l HERS
The At l ant a Regi onal Of f i ce announced t he f i l i ng of a compl ai nt i n Feder al Cour t i n
J ackson, Mi ssi ssi ppi on May 13 seeki ng pr el i mi nar y and per manent i nj unct i ons agai nst
Char l es A. Car t er , of J ackson, Mi ssi ssi ppi , C. D. Shi el ds, of Mer i di an, M1ssi ssi ppi ,
Ray A. J ones, of Car r ol l t on, Texas and Amer i can Savi ngs I nsur ance Company, Pl aza
I nvest ment Company and Edwi n L. Fi gg, al l of J ackson, Mi ssi ssi ppi . The. comp~ai nt .
char ges Car t er , Shi el ds, J ones and Amer i can Savi ngs I nsur ance Company w1t h v10l at 10ns
of t he ant i f r aud pr ovi si ons of t he secur i t i es l aws i n t he of f er and sal e of savi ngs
account s of Banker s Tr ust Savi ngs and Loan Associ at i on, a savi ngs and l oan associ a-
t i on char t er ed by t he St at e of Mi ssi ssi pP1. The compl ai nt f ur t her char ges Car t er ,
Shi el ds, J ones, Pl aza I nvest ment Company and Fi gg wi t h vi ol at i ons of t he ant i f r aud
pr ovi si ons of t he secur i t i es l aws i n t he of f er and sal e of debent ur es of Banker s
Tr ust Company, a J ackson, Mi ssi ssi ppi cor por at 1on now under Chapt er X ~f t h~ Ban~-
r upt cy Act . The compl ai nt f ur t her char ges Car t er , ~hi el ds and J ones w1t h v1ol at ~ons
of t he ant i f r aud pr ovi si ons of t he secur i t i es l aws 1n t he of f er and sal e o~ pr om1ssor y
not es t o Banker s Tr ust Company. ( SEC v. Char l es A. Car t er , et al . , S. D. M1SS. ,
J 77- 0l 66 ( R. ( LR. .7929)
COMPLAI NT NAMES ANHEUSER- BUSCH, I NC.
The SEC announced t he f i l i ng of a compl ai nt i n t he U. S. Di st r i ct Cour t f or t he
Di st r i ct of Col umbi a seeki ng i nj unct i ve and anci l l ar y r el i ef agai nst Anheuser - Busch,
I nc. ( A- B) , a Mi ssour i cor por at i on wi t h pr i nci pal of f i ces i n St . Loui s. The Commi s-
si on' s compl ai nt char ges A- B wi t h vi ol at i ons of t he secur i t i es l aws.
The Commi ssi on' s compl ai nt al l eges, among ot her t hi ngs, t hat f r om 1971 and t her eaf t er ,
A- B, t he l ar gest br ewer of beer and mal t bever ages i n t he Uni t ed St at es, made appr oxi -
mat el y $2. 7 mi l l i on of undi scl osed payment s of money t o beer and mal t bever age whol e-
sal er s, r et ai l er s and t hei r agent s as i nducement s t o pur chase A- B pr oduct s, i n
possi bl e vi ol at i on of f eder al , st at e and l ocal l i quor l aws and r egul at i ons.
Si mul t aneousl y wi t h t he f i l i ng of t he compl ai nt , wi t hout admi t t i ng or denyi ng t he
al l egat i ons of t he compl ai nt , A- B consent ed t o t he ent r y of a f i nal j udgment of per ma-
nent i nj unct i on agai nst vi ol at i on of t he ant i f r aud, r epor t i ng and pr oxy pr ovi si ons of
t he secur i t i es l aws. I n addi t i on, A- B agr eed t o cer t ai n anci l l ar y r el i ef . ( SEC v.
Anheuser - Busch, I nc. , U. S. D. C. D. C. , Ci vi l Act i on No. 77- 0845) . ( LR- 7930)
C. ARNHOLD SMI TH ENJ OI NED
The SEC announced t hat on May 19 t he Honor abl e Lel and C. Ni el sen, U. S. Di st r i ct J udge
f or t he Sout her n Di st r i ct of Cal i f or ni a, ent er ed a f i nal j udgment of per manent i nj unc-
t i on agai nst C. Ar nhol d Smi t h f r omvi ol at i ons of t he ant i f r aud, r epor t i ng and t ender
of f er pr ovi si ons of t he secur i t i es l aws. Smi t h consent ed t o t he ent r y of t he i nj unc-
t i on wi t hout admi t t i ng or denyi ng t he al l egat i ons of t he Commi ssi on' s compl ai nt .
on Oct ober 28, 1976 t he ot her def endant s i n t he case, Kodi ak I ndust r i es, For t una Cor -
por at i on, Domi ni c J . Al essi o, Ant hony Al essi o and Al vi n G. Rosa, consent ed t o t he
ent r y of si mi l ar i nj unct i ons agai nst t hem si mul t aneousl y wi t h t he f i l i ng of t he Commi s-
si on' s compl ai nt . ( See LR- 7622 - Oct ober 28, 1976) .
The Commi ssi on' s compl ai nt al l eged t hat si nce appr oxi mat el y May 1972, t he def endant s
engaged i n a scheme t o conceal t hei r i nt ent i ons t o ef f ect a mer ger of For t una, a pub-
l i cl y hel d cor por at i on, i nt o Kodi ak, a cor por at i on owned by t he Al essi os and Rosa.
The Commi ssi on al l eged t hat t he pur pose of t hi s mer ger was t o per mi t t he i ndi vi dual
def endant s t o ut i l i ze For t una' s asset s and cash f l ow f or t hei r per sonal benef i t . I n
addi t i on, t he compl ai nt al l eged t hat t he def endant s al so engaged i n a scheme t o con-
ceal Smi t h' s cont r ol of , r el at i onshi p t o and busi ness t r ansact i ons wi t h Kodi ak and
For t una. ( SEC v. Kodi ak I ndust r i es, et al . , Ci vi l Act i on No. 76- 983- N, U. S. D. C. S. D.
Cal . ) . ( LR- 7931)
INVESTMENT COMPANY ACT RELEASES
FUND FOR MUTUAL DEPOSI TORS
A not i ce has been i ssued g~v~ng i nt er est ed per sons unt i l J une 14 t o r equest a hear i ng
on an appl i cat i on of Fund f or Mut ual Deposi t or s, I nc. ( FMD) , a r egi st er ed, open- end
di ver si f i ed management i nvest ment company; Mut ual Deposi t or s Ser vi ce cor p. ( Ser vi ce
C~r p: ) ; and Roger F. Mur r ay, 2nd ( Mur r ay) , f or an or der of t he Commi ssi on ( 1) per -
m~t t ~ng an agr eement wher eby Ser vi ce Cor p. wi l l i ndemni f y FMD up to $20, 000 f or cer t ai n
pr esent l y unascer t ai ned l i abi l i t i es, and ( 2) per mi t t i ng Mur r ay t o pr ovi de cer t ai n
r equi r ed col l at er al t o secur e FMD' s i ndemni t y of Scudder , St evens &Cl ar k Common St ock
Fund, I nc. , under an Agr eement and Pl an of Reor gani zat i on. ( ReI . I C- 9774 - May 20)
HOLDING COMPANY ACT RELEASES
CENTRAL POWER AND LI GHT COMPANY
A not i ce has been i ssued gi vi ng i nt er est ed per sons unt i l J une 16 to r equest a hear i ng
on pr oposa~s. of . Cent r al Power and Li ght Company and Publ i c Ser vi ce Company of Okl a-
ho~, subs~d~ar ~es of <; ent r al and Sout h West Cor por at i on, to amend t hei r r espect i ve
ar t ~cl es of ~ncor por at ~on and to sol i ci t pr oxi es i n connect i on t her ewi t h. ( Ral .
35- 20033 - May 20)
WEST TEXAS UTI LI TI ES COMPANY
A Memor cu; ' d' ; DD. and or de~ been i ssued aut hor i zi ng t he acqui si t i on by West Opi ni on f . 1as
~xas Ut ~l ~t ~es <; Ompany, subs~d~ar y of Cent r al and Sout h West Cor por at i on, of i nt er est s
~n f uel expl or at ~on and devel opment act i vi t i es and denyi ng i nt er vent i on and r equest s
f or hear i ng and consol i dat i on. ( ReI . 35- 20034 - May 20)
2
NEWS DIGEST, ..May 23. 1971
CENTRAL AND SOUTH WEST CORPORATI ON
A Memor andum Opi ni on and Or der has been i ssued appr ovi ng a pr oposal by Publ i c Ser V1ce
company o~ Okl ~oma ( PSO) , subs~d~ar y of Cent r al and Sout h West Cor por at i on, and
Tr ansok P1pe ~1n~ Compan~, . s~s1d1ar y p1pe l i ne company of PSO, t o acqu1r e i nt er est s
i n coal and l 1gn1t e acqu1S1t 10n and devel opment pr oj ect s and denyi ng mot i ons f or hear -
i ng and consol i dat i on. ( ReI . 35- 20035 - May 20)
CENTRAL POWER AND LI GHT COMPANY
A Me~r andum Opi ni on an~ ?r der has been i ssued appr ovi ng a pr oposal by Cent r al Power
and L1ght Company, subs1d1ar y of Cent r al and Sout h West Cor por at i on, f or an ext ensi on
of i t s f uel expl or at i on and devel opment pr ogr am and denyi ng mot i ons f or hear i ng and
consol i dat i on. ( ReI . 35- 20036 - May 20)
CENTRAL AND SOUTH WEST CORPORATI ON
A Memor andum Opi ni on and Or der has been i ssued appr ovi ng a pr oposal by Cent r al and
Sout h West COr por at i on, a r egi st er ed hol di ng company, t o amend i t s char t er i ncr eas1ng
t he aut hor i zed shar es of common st ock f r om 58, 300, 000 to 65, 800, 000 and denyi ng a
mot i on f or i nt er vent i on, hear i ng and consol i dat i on. ( ReI . 35- 20037 - May 20)
WEST TEXAS UTI LI TI ES
A Memor andum Opi ni on and Or der has been i ssued appr ovi ng a pr oposal by West Texas
Ut i l i t i es, subsi di ar y of Cent r al and Sout h West Cor por at i on, t o amend i t s char t er
modi f yi ng t he deduct i ons ut i l i zed i n comput i ng ear ni ngs cover age and " common st ock
equi t y" and denyi ng i nt er vent i on and mot i ons f or hear i ngs and consol i dat i on. ( ReI .
35- 20038 - May 20)
ALABAMA POWER COMPANY
A not i ce has been i ssued g1v1ng i nt er est ed per sons unt i l J une 16 t o r equest a hear i ng
on t he pr oposal of Al abama Power Company, Subsi di ar y of The Sout her n Company, t o i ssue
and sel l at compet i t i ve bi ddi ng up to $100 mi l l i on of f i r st mor t gage bonds. ( ReI .
35- 20040 - May 20)
MI DDLE SOUTH UTI LI TI ES
A not i ce has been i ssued g1v1ng i nt er est ed per sons unt i l J une 13 t o r equest a hear i ng
on a pr oposal of Mi ddl e Sout h Ut i l i t i es, I nc. , a r egi st er ed hol di ng company, t o i ssue
and sel l shor t - t er m bank not es up t o $218. 5 mi l l i on out st andi ng at anyone t i me. ( ReI .
35- 20041 - May 20)
ARKANSAS POWER & LI GHT COMPANY
A not i ce has been i ssued gi vi ng i nt er est ed per sons unt i l J une 14 t o r equest a hear i ng
on a pr oposal of Ar kansas Power &Li ght COmpany, subsi di ar y of M1ddl e Sout h Ut i l i t i es,
I nc. , wher eby Ar kansas Power &Li ght wi l l sel l a 35%undi vi ded i nt er est i n i t s Whi t e
Bl uf f el ect r i c gener at i ng f aci l i t y, whi ch i s cur r ent l y under const r uct i on, to t he
Ar kansas El ect r i c COoper at i ve Cor por at i on f or appr oxi mat el y $59 mi l l i on. Ar kansas
wi l l use t he pr oceeds of t he sal e t o r epay, i n par t , shor t - t er m i ndebt edness i ncur r ed
to f i nance i t s const r uct i on pr ogr am. ( ReI . 35- 20042 - May 20)
LOUI SI ANA POWER & LI GHT COMPANY
A not i ce has been i ssued gi vi ng i nt er est ed per sons unt i l J une 13 t o r equest a hear i ng
on pr oposal s of Loui si ana Power &Li ght Company, subsi di ar y of Mi ddl e Sout h Ut i l i t i es,
I nc. , t o ent er i nt o t r ansact i ons r el at ed t o t he f i nanci ng of pol l ut i on cont r ol f aci l i -
t i es and i ndust r i al devel opment f aci l i t i es. ( ReI . 35- 20043 - May 20)
SELF-REGULATORY ORGANIZATIONS
NOTI CE OF PROPOSED RULE CHANGE
The T. ADDeposi t or y COr por at i on has f i l ed a pr oposed r ul e change pULsuant t o Rul e 19b- 4
( SR- TAD- 77- 1) r el at i ng t o t he est abl i shment of an i nt er f ace wi t h The Deposi t or y Tr ust
Company f or t he r ecei pt and del i ver y of secur i t i es t hr ough book- ent r y pr ocedur es.
Publ i cat i on of t he pr oposal i s expect ed t o be made i n t he Feder al Regi st er dur i ng t he
week of May 23. ( ReI . 34- 13553)
NEWS DI GEST, May 23, 1977
3
The Amer i can St ock Exchange, I nc. has f i l ed a pr oposed r ul e change under Rul e 19b- 4
( SR- Amex- 77- 8) t o amend i t s opt i on r ul es t o accommodat e t he t r adi ng of put and cal l
opt i ons on cer t ai n debt secur i t i es. Publ i cat i on of t he pr oposal i s expect ed t o be
made i n t he Feder al Regi st er dur i ng t he week of May 23. ( ReI . 34- l 3559)
The Nat i onal Associ at i on of Secur i t i es Deal er s, I nc. has f i l ed a pr oposed r ul e change
under Rul e 19b- 4 ( SR- NASD- 77- 2) r egar di ng opt i ons l ast sal e r epor t i ng i n connect i on
wi t h i t s pr oposal t o l i st opt i ons on t he NASDAQ Syst em. Publ i cat i on of t he pr oposal
i s expect ed t o be made i n t he Feder al Regi st er dur i ng t he week of May 23. ( ReI .
34- l 3560)
The Paci f i c St ock Exchange I ncor por at ed has f i l ed a pr oposed r ul e change under Rul e
19b- 4 ( SR- PSE- 77- l 1) t o est abl i sh new maxi mum posi t i on l i mi t s f or put and cal l opt i ons.
Publ i cat i on of t he pr oposal i s expect ed t o be made i n t he Feder al Regi st er dur i ng t he
week of May 23. ( ReI . 34- 13561)
SECURITIES ACT REGISTRATIONS
( S- 14) ROSARI O RESOURCES CORPORATI ON
375 Par k Ave. , New Yor k, N. Y. 10022 - 860, 030 shar es of capi t al st ock, t o be of f er ed
i n exchange f or 955, 589 shar es of common st ock of The Fr esni l l o Company at t he r at e
of 0. 9 Rosar i o shar es f or each Fr esni l l o shar e. Rosar i O i s a mi ni ng company. ( Fi l e
2- 59047 - May 18)
( S- 7) MCMORAN EXPLORATI ON CO.
3400 The Pl aza TOwer , New Or l eans, La. 70113 - 1, 500, 000 shar es of common st ock, t o
be of f er ed f or sal e t hr ough under wr i t er s r epr esent ed by Lehman Br ot her s I nc. , One
Wi l l i am St . , New Yor k, N. Y. 10004. McMoRan i s engaged i n t he expl or at i on f or , devel op-
ment and pr oduct i on of , oi l and nat ur al gas. ( Fi l e 2- 59054 - May 19)
( S- 16) KANSAS- NEBRASKA NATURAL GAS COMPANY, I NC.
300 Nor t h St . J oseph Ave. , Hast i ngs, Neb. 68901 - 138, 518 shar es of common st ock,
whi ch may be of f er ed f or sal e f r om t i me t o t i me by sel l i ng shar ehol der s at pr i ces
cur r ent at t he t i me of sal e. Kansas- Nebr aska i s pr i mar i l y an i nt egr at ed nat ur al
gas ent er pr i se. ( Fi l e 2- 59055 - May 19)
( S- 6) I NSURED MUNI CI PALS- I NCOME TRUST, SERI ES 15
208 Sout h LaSal l e St . , Chi cago, I l l . 60604 - $5 mi l l i on of uni t s, t o be of f er ed f or
sal e at net asset val ue ( $1060 maxi mum) . The Fund i s one of a ser i es of uni t i nvest -
ment t r ust s cr eat ed under a t r ust i ndent ur e bet ween Van Kampen Sauer man I nc. , as
sponsor and Br adf or d Tr ust Company as t r ust ee. I t consi st s of an i nsur ed por t f ol i o
of i nt er est - bear i ng obl i gat i ons i ssued by or on behal f of st at es, count i es, muni ci -
pal i t i es and t er r i t or i es of t he Uni t ed St at es and aut hor i t i es and pol i t i cal subdi vi -
si ons t her eof , t he i nt er est on whi ch i s, i n t he opi ni on of bond counsel , exempt f r om
al l Feder al i ncome t ax under exi st i ng l aw. MGI C I ndemni t y Cor por at i on has i nsur ed
t he pr ompt payment of i nt er est and pr i nci pal , when due, on t he bonds i n t he por t f ol i o
of t he Fund. ( Fi l e 2- 59056 - May 19)
( S- 16) STONE & WEBSTER, I NCORPORATED
90 Br oad St . , New Yor k, N. Y. 10004 - 2, 580 shar es of common st ock, whi ch may be
of f er ed f or sal e f r om t i me t o t i me by cer t ai n st ockhol der s at pr i ces cur r ent at t he
t i me of sal e. St one & Webst er , t hr ough i t s subsi di ar i es, i s pr i nci pal l y engaged i n
ser vi ce of act i vi t i es and of f er s engi neer i ng ser vi ces and management and f i nanci al
consul t i ng ser vi ces. ( Fi l e 2- 59059 - May 19)
Many requests for copies of documents referred to in the SEC NelliSDigest Iacwe fIn'OIIeOIIBly beeIa
directed /0 the Government Printin, Office. Copies of such documents and of registration s~"
may be ordered from the Public Reference Section, Securities and Exchange Commission, W~
D.C. 20549. Thereproduction cost is 10' per page plus postage (7days} ('3.50 mim-}; 201per
page plus postage for expedited service (4days} ('5.00 minimum} and 301per ptIIfe plus postage fur
priority service ouemi,ht ('5.00} minimum}. Cost estimates are giuen on request. All other re(ereIICe
NOTICE
materiol is IJIIGilablein the SEC Docket.
SEC NEWS DIGEST is published tkrily. Subscription rates: 64.4S/yr in
U.S. first class .oil; 'BO.60elsewhere.
SEC DOCKET is published wedly. s.becription rates: '43.10/yr in
u.S./irst class .1, '54.65 elsewhere. TM News Digest and ,.. Docllel",. fur s" by ..
Superintendelll of ~n1S, Go~ Printing Office, Washinllon, D.C. J OIOJ .
4 NENS DI GEST, May 23, 1977