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Show '" Serials Order Department Uhiversity of Utah Salt "Lake City, Utah 84112 VOLUME 1, NUMBER 6 SALT LAKE CITY, UTAH Lynwood A. Bonner Named Bailey Creek Sales Manager "Originally it was. intended that Creek would principally be a ecreation community," Mr. Bonner loted. "However because of the acute lousing shortage in the Soda Springs Bailey Creek area, we will offer a variety of residential homes for sale e on lots." Mr. Bonner said construction has already started on a "spec home" at Bailey Creek; however the parent homes in company will stress its construction program at Bailey Creek because that allows the most efficient use of development capital and lowers the cost of new homes, which is critical in light of inflation and -- the necessity to keep housing costs down. 3ailey half-acr- pre-sol- d In This Issue Lynwood Bonnar - BAILEY CREEK, IDAHO Lynwood A. Bonner has been named sales manager for Bailey Creek, the new residential and recreation community being developed six miles south of Soda Springs, Idaho. Mr. Bonner's appointment was announced by Bailey Creek Project Manager Sherm Smith. Mr. Bonner, a native of Pennsylvania, has been associated with Terracor since 1973 at its Salt Lake City sales office. He is a sormer student at Hagerstown Junior College in Maryland and Pennsylvania State University. Prior to joining Terracor, he was active in residential construction in Pennsylvania. Mr. Bonner, accompanied ' by his wife Wendy and daughter Holly, have moved to Soda Springs and will establish permanent residence, Mr. Smith ' stated. New President for the SL Chapter off the American Savings and Loan Institute William Plott of Prudential Federal Savings and Loan Association has been elected president of the Salt Lake Chapter of the American Savings and Loan Institute. He succeeds Thomas Winther of State Savings and Loan Association. Mr. Plott was elected Tuesday evening during the Institute's annual graduation banquet at the Travel Lodge, 161 West 6th South. The Insti- tute is the educational arm of the United States League of Savings Associations. Other officers elected were Frances Akimoto of American Savings and Loan Association, vice president; Richard A. Fisher, First Federal Savings and Loan Association, treasurer; and Al Sahleen, Western Savings and Loan Company, secretary. Mr. Winther, as past president of the Institute, will be executive advisor for the coming year. The new officers were sworn in by Neil H. Burt, vice president ofWestern Savings and Loan Company and Utah State director of the American Savings and Loan Institute. Dr. Richard T. Pratt, professor of finance at the University of Utah and consultant for the Utah League of Insured Savings Associations, was the keynote speaker at the graduation banquet. Dr. Pratt discussed the challenges Utah financial institutions face during the next decade in providing funds for housing. New Partnerships Suits Divorces Marriage Licenses Births New Corporations Third District Court ROOey Tight jMGge w .nn ireoeiraiH . uuuotowil rr-- According to most of the forecasts made last fall, housing starts in 1974 were expected to reach about 1.7 million units roughly 15 percent below the 1973 figure and 25 percent below the 1972 peak. Most scenarios envisioned a trough in the first half of the year, followed by a second-hal- f pickup in response to an improved flow of savings into mortgage-lendin- g institutions. Along with autos, housing was expected to contribute substantially to a general business recovery as the year progressed. But today, even this relatively modest forecast seems less certain than before. Money again appears to be flowing out of, rather than into, the mortgage institutions, because of the attractiveness to savers of the high rates now available on money-markinstruments. This development could cause problems to the housing industry several quarters from now, given the usual lag between flows of funds at thrift institutions and new construction activity. Prospective homebuyers thus may face a renewed shortage of mortgage funds, at the same time that thejjare forced to contend with the soaring cost of new housing. (Mortgage borrowing costs, which had dipped to 8 percent or so earlier in the year, topped 9 percent in late April and approached the highs reached in last summer's upsurge.) Supporting the market, however, is a fairly strong level of basic demand, as well as a buy-hoattitude pay-latgenerated by present inflationary expectations. et 2 2 2 2 4 5 5 Legals Probate Court MONDAY, MAY 20, 1974 6 6 Supreme Court Decision . 7 8 Bankruptcies Business Telephones 8 Bountiful Power 9 . 9 Permits County Building Uniform Commercial Code Filings 9 10 Murray City Power 10 Murray City Court 11 Water Service 12 Warranty Deeds 15 Liens 15 Trust Deeds City Business Licenses . 16 16 Mortgages 16 Tax Liens 16 Release of Mortgage .... n Early Hopes statistics seemed to bear out the earlier forecast. Housing starts were on target (or better) at unit annual rate, about a thanks mostly to February's high level of activity, which reflected a combination of unusually mild construction er 1.6-milli- savings funds into mortgage-lendin- g institutions during the early months of the year, which would normally be translated into a rise in housing starts during the summer and fall. yielding instruments such as Treasury bills. To help stem the outflow, the thrifts raised their offering rates to savers, in many cases returning to the TYt percent ceiling rate on longer-tercertificates. But even this rate Present Fears But then the sharp turnaround in was considerably below the interest coupon which the Treasfinancial markets darkened the hopes for an early housing recovery. The ury offered in early May on $3.7 billion upsurge in interest rates triggered of new notes. renewed outflows of funds from deposRising Costs The in impact of inflation can also be April, as many itory institutions savers placed their funds in higher- - seen in housing costs. The median price of new single-familhousing reached $34,500 during the first quarter some 14 percent above the y o level in response to rising costs of land, labor and materials. Lumber prices have moved back toward their 3 earlier peaks following a trend is updecline, and the long-terward because of lagging reforestation -programs and other factors. .Land costs seem bound to rise because of continued population growth, while large wage increases are likely to occur in the construction industry following the termination of the controls program. (These increases would only continue an earlier uptrend; both land and labor costs have risen more than 50 percent over the past six years.) costs are also Rising a problem; costs of taxes, insurance, utilities and other such items have See details page 7 risen 13 percent over the past year, or twice as fast as rental costs. -Ut- ear-ag- Supreme Court Decisions manager of insurance and personnel, was appointed director of insurance and employee benefits. James F. Rand was appointed director of industrial relations. Mr. Roghaar and Mr. 'Rand will be responsible for their functions at all of the company's operations in Washington, Idaho and Utah. They will report to Keith J. Wallentine, vice president-corporat- e relations. Mr. Roghaar, veteran with the sugar company, has served in executive positions both in the Garland area and at the company's general offices. In his new appointment he will direct all company matters relating to insurance, pensions, workmen's compensation, and other benefit-relateprograms. All company activities concerned with national, state, or local agencies regulating employee health and safety standards will be under his direction, as well as the supervision of all company safety programs. 20-ye- ar Lockhart Co. Appoints New Member to Board d k Mountain Fuel Declared Dividend - SALT LAKE CITY The board of directors of Mountain Fuel Supply Company Tuesday declared a dividend of 50 cents a share on the Company's common stock and $2 a share on the preferred stock. The common stock dividend is payable June 17, 1974, to shareholders of record May 24, 1974, and the preferred stock dividend is payable July 1, 1974, to shareholders of record June 7, 1974. . p More Intervention? d Nonetheless, the turnaround in the money and capital markets now threatens to upset the inflation-generate- adjustment factors. Meanwhile, residential spending in the GNP accounts fell off by about 8 percent from the preceding quarter. Hopes for an upturn later in 1974 were buoyed by an improved flow of ment, organization and manpower planning. late-197- m home-ownershi- weather and inadequate seasonal Mr. Rand recently joined U and I. He formerly was employee relations manager for the Peter J. Schweitzer Division of Kimberly-ClarCorporation, Spotswood, New Jersey. His background includes successive bachelors, masters, and doctorate degrees in the fields of industrial relations and labor law. In his new position he will provide counsel and service for the sugar company in labor relations, employ- percent y 2 Executive Appointments SALT LAKE CITY, May 13 Sugar Company today announced two executive appointments at its general offices in Salt Lake City. Ray Roghaar, who formerly was m -- U & I Sugar Announced ah-Idaho n ruimos er w First-quart- n Louis H.Callister Jr. projected turnaround in the housing industry. In this situation, we may witness renewed intervention on the alpart of the housing agencies if last though year is any criterion, this could have the side effect of increased pressure on securities markets. The original scenario for 1974 envisioned a sharply reduced intervention; in fact, the agencies made net repayments of about $800 million on their outstanding debt during the first quarter of this year. In addition, the Home Loan Bank Board raised S&L liquidity requirements in response to but it was improved savings inflows then forced to rescind this move in April when the thrifts began to experience outflows of funds. In the same changed atmosphere, Housing Secretary Lynn raised the ceiling rate of FHA and VA loans to 8Vi percent to forestall deepening discounts, which cduld otherwise raise sale prices as sellers forced buyers to cover the amount of the discount. In another support move, the Government National Mortgage Association ' reaffirmed its intention to' purchase mortgages on as many as 200,000 newly constructed homes at the rate of 7 percent. Meanwhile, the housing legislation introduced into Congress last fall remains bogged down, partly due to disputes over the Administration's moratorium on certain subsidized housing programs. If enacted, the legislation would raise the ceiling on FHA mortgages and reduce downpayment requirements for such loans, would raise the single-loa- n limit for Federally-chartere- d S&L's, and would sharply increase deposit insurance coverage. These measures would afford some relief to homebuilders and lenders, but they are purely compensatory; they are designed to offset some of the inflation which has already taken place, but they are not directed at the fundamental problem of inflation itself. below-mark- Louis H. Callister Jr., partner in the Salt Lake City law firm of Callister, Kesler and Callister, has been appointed to the board of directors of the Lockhart Co., finance subsidiary of Zions Utah Bancorporation, according to Richard A. Van Winkle, president of the Lockhart Co. A graduate of East High School and the University of Utah Law school, Mr. Callister was an assistant attorney general for the state of Utah in 1961 before joining his law firm. His practice is devoted mainly to corporate, banking, savings and loan and finance law. Mr. Callister is a member of the Salt Lake Chamber of Commerce and is a director of the Pyramid Oil Co. He and his wife, Ellen, have five children. et -- Verle Johnston . |