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Show wE5 WESTON AMERICANA Seriaia Order Dept. University of Utah SLC,Utsh ot win mast! uww ' UNIVERSITY LICSARIES 84112 SEP mis ow OF UTAH DtPT' 17 174, SERIALS OROER DEPT. ,U "An Evening of Art" Auction Paintings of the World, Inc., the largest firm of its kind in the country will bring its fabulous nationally acclaimed art presentation to the McCune Gallery, 200 North Main, Salt Lake City on September 27th. The presentation will consist of an exhibition and auction, and buffet sponsored by the Salt Lake County Bar Auxiliary. Paintings and graphics will be on display at 6:30, with cocktails and buffet for a preview of the Collectors Corner containing original pieces by the superstars of the art firmament, Picasso, Chagall, Norman Rockwell, etc. In addition to the masters, other great artists works will world-famou- s Senior Citizens Invited To A Mexican Fiesta "All Senior Citizens are invited to a Mexican fiesta that promises to be a lot of fun", says V. Lucile Hutchings, Ombudsman for Senior Citizens. It is being held Saturday, September 14, 1974 at the Assembly Hall in the Salt Palace from 10:00 am to 6:00 pm. Senior's admission is half price (or $1.00), and there will be door prizes, booths, movies, exhibits and interest-- , ing activities all day. September 14 is your chance to attend a Mexican Fiesta and join in the exciting festivities. r Public Service Commission Approved Rate Hike for UP&L The Public Service Commission of Utah today approved new increased rate schedules for Utah Power & Light Co. effective for all electric service on and after September 10. The PSC order followed a September 4 hearing on the allocation of a 16.7 percent increase in annual revenue amounting to $18,795,482 granted the company after lengthy hearings. The utility said that electricity used prior to September 10 will be billed on the existing rates; on September 10 and thereafter, electricity used will be billed at the new higher rate. In the allocation order, the commission said the testimony and evidence show that such rates and charges, and electric service regulations, will not establish or maintain any unreasonable difference as to rates, charges, service or facilities, or in any other respect, either as between localities or as between classes of service, and that the new rates are just and . reasonable. Supreme Court Decisions See Details Page 8 MONDAY, SEPTEMBER 16, 1974 SALT LAKE CITY, UTAH VOLUME 1, NUMBER 23 be presented. We've been assured that over 200 of the finest contemporary paintings, mounted and framed, will be offered at prices far below their established market values. The exciting auction to begin at 8:30, will be conducted by M. R. Diamond of Paintings of the World, Congressman Introduces Bill For Feds to Allocate ember-Ban- k Credit undifferentiCiting the "meat-ax- , ated" impact of monetary policy upon interest-sensitiv- e sectors of the economy, Congressman Henry Reuss (D., Wise.) recently introduced legislation that would make the Federal Reserve System responsible for the allocation effects of policy. While conceding that the current "intractable inflation" will require considerable monetary re-- . straint, the Congressman also argued that indiscriminate restraint is "irresponsible." Consequently, his bill would require the Fed to allocate member-ban- k credit so that less would be available for uses" gambling casinos, conglomerate merreal estate and gers, "inflation inducing" inventory accumulation and more would be availa-- . ble for "priority" loans and investments. Priority areas could include, among others, loans to finance capital Inc. Parking will be available at the Council Home with limousine service to the McCune Mansion provided throughout the evening. Lawyers are encouraged to come and bring as many guests as they like. Tickets will cost $20.00 per couple. Mrs. J. Thomas Greene is general chairman, with Mrs. F. Alan Fletcher and Mrs. Stewart M. Hanson Jr. in charge of ticket sales. President of the Auxiliary is Mrs. David M. Bown. All proceeds from the auction will go into the auxiliary's service project fund. Other projects for the year include supplying educational materials to schools, crafts for the girls at "non-priorit- y non-essenti- al the detention center, a poster and essay contest in the schools, and a tree for the Festival of Trees. Utah Officials Will Study Ways to Improve Public Employee's Productivity An estimated 125 Utah dty, county and state officials will study means of improving public employee's productivity to reduce governmental costs during a special conference Wednesday, September 18, in FarmLigton, Utah. In This Issue Confirmation of Sale Suits Small Claims Marriage Licenses Births Bankruptcies Bountiful Power Bankruptcy Sale Business Telephones Water Service Murray City Power Murray City Court South Salt Lake Building Permits County Building Permits Supreme Court Decisions Third District Court Midvale Building Permits New Corporations . . 1 8 11 12 12 Uniform Commercial Code Filings Liens 2 3 3 3 3 4 4 5 5 6 6 7 7 8 .... West Jordan Building Permits Probate Court Suits Business Licenses Trust Deeds Warranty Deeds Mortgages Release of Mortgages Second Mortgages Commission . Utah Bureau of Community Developconference will ment, the 9 in the a.m. Davis County begin at School District auditorium, adjoining Court House Square. "Measuring the actual productivity of government is always difficult, especially in these times of rapidly escalating costs and demands," explains U Bureau Director Richard P. Lindsay. "Nevertheless, many Utahns concerned about the growth of government and its impact upon the citizens of the state are anxious to take a long, hard look at the problem." Conference objectives, he says, will be to develop a model for improving administrators' managerial skills, .to encourage greater responsiveness of higher education to the needs of local leaders, and to acquaint government officials with higher education-relate- d resources available to them Guest speakers will be: Ms. Nancy Hayward, program director for the National Commission o'f Productivity; William Farnam, director of public works in Inglewood, California; and George Barbour, productivity coordinator in Palo Alto, California. Afternoon workshop topics will include meaning and measurement of productivity, motivational management, setting and reaching objectives, obtaining citizen feedback, problem-solvin- g through intergovernmental cooperation, and accountability. Further information about the conference may be obtained from the Davis County Commission Ext. 25) or the Bureau of Community one-da- y . . 13 14 16 16 16 16 16 16 16 16 16 (295-239- Development 4 by the Davis County and the University of ever-increasi- Legals -- I'M' (581-6493- ). 4, investments that increase productive capacity, control pollution or conserve energy; loans to finance low- - and ' middle-incom- e housing and small businesses; and investments in the obligations of state and local governments. The bill calls for member-bancredit to be allocated to "priority" areas through the use of supplemental reserve requirements and credit subsidies against various bank-asscategories. Under the legislation, the Federal Reserve could require each member bank to hold supplemental " loans reserves against and investments, in addition to the usual reserves against deposits, and could allow a bwik to credit a percentage of "priority" assets against these supplemental reserves. Since these reserves (like other reserve requirements) are a farm of tax, and since the credits are the equivalent of a tax reduction, their interaction would . alter the relative earnings on various assets and thus provide banks with an incentive to finance priority activities. Supporters of the Reuss proposal argue that such a system involves minimal interference with the market system and would be relatively easy to administer, and moreover, that it has been employed successfully by a number of foreign central banks. Flaws in the Proposal Critics of the Reuss proposal concede that, initially, more funds probably would flow to the "priority" areas favored by the credits and fewer funds to the areas subject to the supplemental reserves. But this might prove to be only a short-ter. phenomenon. For one thing, the proposal as presently constituted would apply only to banks which are members of the Federal Reserve System. Because the supplementary reserves are a form of tax, which increases costs, banks could be tempted to withdraw from membership to avoid the "tax." To the extent that such an attrition of membership occurred, the effectiveness of supplementary reserves as an allocating device would be reduced. The problem of leakages would be aggravated by the exclusion of other . institutions which participate actively in the loanable-fund- s market asbanks, savings sociations and insurance companies, not to mention other financial institutions and nonfinancial corporations. Moreover, the imposition of relatively high reserve requirements on nonproductive loans and investments would offer no guarantee of areduction ih the flow of credit to such uses. In' all likelihood, those flows would simply shift to other sectors of the credit market, such as the commercial-pape- r market, as business credit demands repeatedly have done in the past in response to only slight differentials in borrowing costs. And even if we could be sure that the proceeds of a priority loan were actually being used for the intended purpose, we could not be certain that that action would not free up other resources for "non- - else-I-wher- e, ! k ! et "non-priority- "non-priorit- m . non-memb- er -- and-loan priority" uses. To the extent that earnings (and payouts) are adversely affected by supplemental reserve requirements, depositors and stockholders can avoid the "tax" by placing their funds and in an era of increasing investor sophistication and rapid technological innovation, they are likely to do so with increasing ease. (But small savers and borrowers, who are limited in their dealings to banks subject to reserve requirements, would be penalized by having, in effect, to subsidize "priority" borrowers.) At the same time, the credit aspect of the e proposal would discriminate in reverse against those whose stockholders and depositors institutions are not subject to any form of reserve requirement. Plugging Leakages n Supporters of the proposal recognize these potential leakages and note that to some extent they would be "plugged" by other proposed legislation, which would give the Fed power over the reserve requirements of nonmember banks. Some proponents, cognizant of the $300 billion available in inter-firtrade debt and internally generated funds, would attempt to plug these leakages also by extending credit allo-- j cation requirements to- - the whole gamut of financial and institutions. Alternatively, they would n impose mandatory measures upon the Fed similar to those exercised over consumer, real estate and other credit during the Korean War. Problems of Equity n schemes are deto signed rectify problems of inequity, which ultimately arise from unequal market power. But critics argue that this inequity can be better rectified through fiscal policy, whose costs and benefits are visible and measurable, than through a maze of portfolio regulations loaded with indirect subsidies and taxes of uncertain incidence, and riddled with leakages. This approach not only would reduce the leakage problem, but would bring into sharper focus the need for determining priorities and making the necessary tradeoffs between possibly incompatible such as equity, economic objectives growth, price stability and environmental balance. Also, priorities can change, so that assigning responsibility for their determination and implementation to the Fed means giving the central bank enormous power to substitute a wide range of assumed public preferences for private decisions. e proFinally, critics of whether posals question foreign experience effectively validates their use, as has been claimed. Given this country's relatively low degree of banking concentration, the wide availability of its nonbank lending opportunities, and the relative openness of its money and capital markets, it could be argued that selective ' credit controls are even less likely to asset-reserv- credit-allocatio- j , m non-financi- al credit-allocatio- Credit-allocatio- asset-reserv- succeed in the U.S. than elsewhere. Verte Johnston |