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Show Bariulb Orrfjr o.Jwrt mjnt Unlweruity of Utah Salt Lake 8112 City, Utah v VOLUME 15, NUMBER 153 Malls A Factor Economic Periscope: Economy Shapes As Key In 72 Element Campaign In By Lee Ruwitch MOST ECONOMISTS agree with President Nixon that 1972 will im- prove somewhat from the slow growth of the economy during 1971. Improvement is indeed necessary for a successful campaign. The economy will be the chief Democratic issue in the 1972 elections and it may already be too late for its course to be corrected and brought under control. The Federal Reserve may be the whipping boy, even though it expanded the money supply in support of Nixon-economic game plan. Chairman Burns really wants Nixon to be reelected but faults Nixons economic on s policies during Congressional questioning. The Fed is the only agency of government whose primary duty is to protect the economic health of the nation without regard to political considerations. Its track record is not faultless but commendable. Burns is an exceedingly competent adThe Nixon economist. ministration could profit from his advice. HOUSING STARTS continue to be one of the few bright spots in the economy. Mortgage interest rates are not likely to rise enough to hurt the housing boom. However, consumer confidence has not yet been restored and capital spending is dour. It is likely that the Fed will scale down its high rate of money injections. The money stock in the five months from February to July increased at a rate of 13.7 percent. If continued, this can only produce inflation that ends in a boom-bucycle. However, if the Federal Reserve brakes the rapid rate of money supply it will drive interest rates up sharply and thus impair the recovery. OUTMODED UNION rules should be changed. Railroad strikers receive unemployment pay of $12.70 a day from funds contributed solely by railroads. Carriers rightfully complain against having to "finance a strike against ourselves". It is imperative that output per man hour continue to improve. Unless efficiency improves inflation cannot be conquered, for every increase in cost must either be added to prices or taken out of profits. Since greater incentive of employees is a lost cause, expanded automation can be the only source of productivity gains. Frigidaire Division of General Motors is in trouble with high labor costs. The militant International Union of Electrical Workers has won substantially higher wages year after year. The company boosted its prices, causing sales to plummet until the company faces red ink. Now, the company plans to move production overseas where labor costs are lower. The Union will then become the highest paid unemployed group in the world. THE U.S. RAN a $12.5 billion balance of payments deficit for the first six months of 1971 and imports exceed exports for the first time since 1893. All this makes the dollar weak in international exchange. Even though we don't devalue the dollar, other countries will upvalue their currencies. Our gold reserves are now down to $10 billion. If France demands gold for her dollars we will declare an embargo and the entire world currencies will suddenly be in limbo. st With City laxsible Sales, Services Catdimg Conooity article is the first of two studying geographic trends in spending and the effects of the This current business recession in the y area. Salt Lake City-Count- By Daniel K. Cunningham Daily Record Columnist Despite varied renewal efforts, sales growth in Salt Lake City continues to lag behind the surrounding area. In fact during the lucrative 70 Christmas season, unincorporated Salt Lake County chalked up spectacular gains in taxable sales and services. Salt Lake City taxable retail and services sales however failed to keep up with inflation, indicating Mr. Cunningham a slight decline. More than a decade ago downtown merchants and businessmen saw this trend coming. The flight to the suburb and subsequent loss of business was inevitable. But "downtown fought back. One of the reasons (there were many reasons of course, like layers on an onion) the Salt Palace was land was located on $500,000-an-acr- e yet. Arrow Press Square across from the Salt Palace has appeared. And Trolley Square is a building on 7th East. Population within the city limits should be aided further by y of apartment comthe plexes which are proliferating throughout Salt Lake City. (The Daily Record last week noted two such apartment facilities totaling almost 175 units within four blocks of the University of Utah campus. Hundreds of additional units are under development. Suburban Spending Grows On these sites, for every four or five homes tom down. 40 or more apartment units take their place. But spending records show' more high-densit- Congress Urged To Recycle Paper, Save More Trees Lockheed Earnings Up CALIF. (UPI) -Lockheed Aircraft Corporation had net earnings of $11.3 million or 99 cents a share for the first six months of this year while it sought a government loan guarantee for its financial rescue. The six month figure was an increase of $3 million over the $8.3 million earned in the same period last vear. They also reported Lockheed would put up $100 million worth of land and equipment and its missile division as collateral for the $250 million loan the government will back so the company can build the Tristar airbus. BURBANK, to help keep downtown Salt Lake alive and vital. And the "White Elephant, as the Palace has been called, has been somewhat successful in slowing the urban decay that naturally blights urban areas elsewhere in the nation. Redecorate Stores Meanwhile, a host of downtown mechants Sears, Penneys, 1st South businesses between Main and West Temple, have remodeled stores or exteriors recently to compete with the enclosed shopping malls, both of which are in unincorporated areas of Salt Lake County. And Salt Lake City isnt through WASHINGTON - (UPI) Every consumed in are trees year order to record the proceedings of 84,000 Congress. A congressional committee has been told that some of the trees could be saved if the paper Congress uses were made from the salvageable materials contained in discarded items. Senators Frank E. Moss, and Harrison A. Williams Jr., h, D-N.- support legislation to make available for stationery needs in all Congressional offices, and to require its use for printing of the Congressional recycles paper Record. Utah Supreme Court Decision Capsule SPECIAL IMPROVEMENT DISTRICT CONTESTED JOHN DAWSON AND 470 NORTH PROPERTY OWNERS ASSOCIATION Plaintiffs and Appellants v. MORRIS F. SWAPP, LAYNE B. FORBES, H. PRESTON HUGHES, DON H. PERKINS, ROD G. SHUMWAY, AND WARDE L. TOLMAN, INDIVIDUALLY, AND THE CITY OF BOUNTIFUL, Defendants Trial Court: Action dismissed. Supreme Court: Chief Justice Affirmed. E. R. Callistcr, Jr., wrote the decision. Plaintiff counsel: Richard MaughanG15 Kearns Building Defendant counsel: H. R. Waldo Jr. Roger J. McDonough Jones, Waldo, Holbrook & McDonough 800 Walker Bank Bldg. Rendell N. Mabey, 780 E. S. Temple See decision in detail page 5 Hip people are starting to spend money outside Salt Lake City than they have in the past. In the last quarter of 1970, which included the Christmas shopping season, taxable sales and services in Salt Lake Citv totaled $205 million. just three percent higher than the same quarter a year ago. To keep pace with inflation, it should have been at least six percent higher. County Up 18 However taxable sales in unincorporated portions of Salt Lake Countv wrere $110,000 million, an 18 percent jump over the year-ag- o figures. Both the enclosed shopping malls Cottonwood Mall now operating in Holladav and Valley Fair Mall in Granger are in this unicorporat-e- d area. Valiev Fair Mall, now completing its first year of operation, is apparently making its presence felt. Salt Lake City merchants may be hurt even further by a third shopping mall nowr under construction. This one. near 6400 South State in Murray, should become the most important shopping center in the Intermountain West, informed commercial real estate developers say, because of its greater accessibility by freeway. Sirhan Case Data Security To Be Probed allegations TOMORRROW: First-quart- er taxable sales this year show recession has hit both the county and Salt Lake City. But one small suburban area continues to show astonishing increases in taxable sales and services. ATTORNEY GENERAL OPINION QUESTION: - LOS ANGELES (ACCN) The Los Angeles County Grand Jury will investigate . Giants Hedge Bets For the valleys giant retailers, such as ZCMI, Penneys, Auerbachs and Sears, competition between the city and county for sales is academic. Theyve hedged their bets and have, or will have, stores in the three county shopping malls to supplement stores downtown. The smaller merchants have to worry. They have to locate as close as possible to the top drawing cards because some of the concentrated traffic will spill over into their shops. So they have to decide whether to stay downtown or relocate or expand to one of the malls, which charge high rents but justify it by saying inventory turnover is higher and thus unvested capital has a higher return. Spending trends also have some impact on governments which utilize the local sales and use tax to generate revenues for their budget. Though this influence is admittedly minor compared with property taxes. that unauthorized persons had access to evidence used to convict Sirhan B. Sirhan of the assassination of Sen. Robert F. Kennedy, it was announced County District Attorney Joseph P. Busch Jr., said that his own probe of the matter disclosed that "a number of individuals have Whether the proposal of Senate Bill 6 to permit the increased sales tax only after it has been approved by the electorate within a given county is constitutional. ANSWER: Provisions of S. B. 6 which would require the approval of the additional VS local option sales tax by the voters, would be upheld by the Utah Supreme Court as constitutional. REQUESTED BY: examined the original exhibits without the required court order. The main purpose of the grand jury investigation, slated to begin August 16, will be "to focus upon the Senator Dixie Leavitt See opinion in detail page 6 integrity of the original exhibits in order tcf determine if any other appropriate action needs to be taken," Busch said. The exhibits, kept in a safe in the county clerks office, include the US, USSR Draft slugs removed from Kennedy's body, bullets used for test firings, the pistol Sirhan carried and the coat Kennedy was wearing. Los Angeles television station KNXT reported July 16 that the evidence has been so sloppily guarded that it may be useless in future court action. Sirhan is appealing the death sentence. "The clerks records show that a total of 13 persons examined Sirhan trial evidence," KNXT said, "but those records were so vague that it is hardly possible to say for sure what evidence was examined and by whom." A judge issued a restrictive order forbidding access to the exhibits without court permission. The station said the bullets were put loose into envelopes where they could rub against each other and damage the markings on the soft lead used for ballistics analysis. Treaty Ban on Biological War GENEVA (UPI) The U.S. and Russia have completed a new draft banning all biological weapons, western disarmament treaty officials said. It is planned to present the treaty to the disarmament said. officials the conference, American and Soviet negotiators hope the rest of the conference participants will approve the draft so that it can be sent to the United Nations General Assembly in October, they said. The joint draft is largely based on a British text submitted to the Conference in 1970. It would ban the development, 25-nati- production and stockpiling of biological weapons and toxins. It also would prohibit the use as weapons of biological agents used in peaceful medical research. I |