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Show Feds Dash Hopes Enterprise Staff Writer How could the dwindling supply of water affect The federal government has squelched any ideas investors might have had about Browning Arms (OTC 7.625, 8.125) getting royalty payments from the feds in return for rights to remanufacture the M-- 2 machine gun, a weapon originally invented and produced by Browning in 1919. Virgil civilian chariman Morrisey, of the federal task force appointed to study and secure bids for manufacture of the M-- said last week that Browning will not receive any type of royalty for the gun. Already the object of merger or sell out rumors. Browning stock has been moving as of past weeks. One Utah broker said he had 2, sold sonic Browning supply of produce on the market, forcing the price up," he continues. He w'ould not hazard a guess at the possible impact of a continued California drought on Utahns produce prices this summer. But the U.S. Department of Agriculture has increased the upper end of its forecast of retail food price increases by one percentage point in response by Mary McM Ulan Gaber Utahns this summer? Apples could be smaller, and citrus fruits, melons and peaches could carry some mighty heavy price tags. Investors speculating in soybean and wheat futures stand to make a bundle. Cattle ranchers could herd more cows to the slaughterhouse instead of to the breeder, forcing the present price of beef even lower but ensuring that prices down the road will be quite a bit higher. And nursery owners, to stay in business, may be vigorously trying to persuade homeowners and developers to plant new lawns and gardens, and all the while be debating with water officials who want to restrict planting altogether. to stock certain parties" because believed Browning would receive royalties from the government for the M-- 2 weapon. After discussing the possibility of royalties with counsel, Army legal Morrisey informed the National Enterprise that the U.S. Army had all rights to the M-- and has held those rights since 1934. Because 2 Browning's patent M-- 2 has expired, he on the said, the company will not receive a royalty. 17-ye- ar Depends on Golden State "Depending on how rain California gets this spring, we are anticipating price increases for promuch duce this summer," says Joe Granato of Granato Produce Co. He says he has not noticed any impact from the drought on prices. Arthur H. Nakaki of Quality Produce Co. says about 75 percent of Utahs summer fruit and vegetable stock comes from California, and that northern California farmers are not raising as Financing Cleared for Loans to Homebuyers, Landlords The local housing of debate and litigation sur- fin- ance industry has received two shots of supportive legislation recently. The Utah Supreme Court has declared the Utah Housing Finance Agency constitutional, allowing state officials to begin lending money to potential home-buyer- s. And the state legislature has passed a bill allowing city redevelopment agencies to make improvement loans for homes and multiple family dwellings. The Supreme Court decision ends nearly two years rounding the Utah Housing Finance Agency. According to an agency official, directors are near completion of the program design, and funds could become available to the public by this summer. According to the Court decision, the legislation was intended to help solve the inadequate supply of housing available to pdople with low or moderate incomes. The agency is now authornotes ized to sell and bonds to raise funds, which will in turn be loaned tax-exem- pt (See FINANCING, page 11) much as they normally do. He says so far this winter the freeze in Florida has forced Utah wholesalers to import cucumbers, green peppers and tomatoes from Mexico. These vegetables, he says, arc double the price of those we normally get from the southern U.S. Scott Clark of A & Z Produce Co. says the prices of citrus fruits, melons and peaches and other soft fruits will be hard hit in an active struggle between supply and Farmers might demand. not plant crops that need much water, like fruits and vegetables, he says. Theyll plant wheat in- stead. This will reduce the the entire nation's weather problems, according to Michael Gorham, Federal Reserve Bank economist. In an article he wrote recently for Business & Financial Letter, Gorham optimistically estimated the California drought would push up the consumer price index "by no more than a tenth of a percentage point," because the products most likely to be affected by the states water shortage grains and sugar beets, - are already in abundant supply. Leafy vegetables, alfalfa, melons and tomatoes, he says, can be planted in parts of the state where water is more plentiful. Farmer Hardest Hit The California drought, he explains, is impacting only the northern part of the The southern part state. (south of the Tehachapis (See FUTURE, page 12) Utah Subcontractors Mull Impact of Common Situs Bill Concern over secondary boycott tactics on an entire construction site brought 23 national trade associations together at the Construction Industry National Legislative Conference held in Washington D.C. last week. In a report given to a luncheon of the Nick Utah Subcontractors Association, Theos, executive manager of the Sheet Metal Contractors Association, explained the common site picketing or common situs bill had passed the House and was now headed for a long battle in the Senate. The bill would allow a union with a grievance against a particular contractor or subcontractor on a construction site to picket and close dowm work of all those at the site. This bill affects all businesspeople, even those not in the construction industry because costs of all construction will go up," Theos stated. He pointed out the current law bars unions from conducting secondary Large wrage hikes are sure to boycotts. result, he said, and it could easily set off another wage-pric- e spiral in other industries of the type that led to controls in the early 1970s. This bill also has implications for right to work" laws by empowering a n contractors off the union to force job through work stoppages. Employees would either work for a union contractor or not at all, Theos said. The subcontractor continued, The construction industry unemployment is at all time high, and this legislation is not the way to improve non-unio- things. Building trade unions argue that since industrial workers can shut down their entire plant if they have a dispute with their employer, construction unions should have an equal right to shut down an entire He pointed out the building project. legislation would revise the structure of the construction industry making the general contractor responsible for the labor policies of his subcontractors. Theos urged all members to contact their senators and voice their concern. Utah Senators Orrin Hatch and Jake Garn have both stated they would vote against the bill, but President Carter has indicated he will sign it. The same bill was passed last year by Congres, but was vetoed by President Ford. |