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Show Serials Order Department University of Utah Salt Lake City, Utah 84112 VOLUME 1, , SALT LAKE CITY, UTAH NUMBER 12 Rocky Mountain to Share $8 Million for Job Programs The six States in the Rocky Moun- ' of a higher supplemental appropriatain Region will share $8,126,415 in tion to the Comprehensive EmployFederal funding for 1974 summer job ment and Training Act (CETA) programs for needy youth, the U.S. approved by the Congress and signed Department of Labor announced . by the President on June 8, 1974. The planning estimates and 30 today. percent initial funding made in May By State, the funding breakdowns allowed prime sponsors in States and are: Colorado $3,278,608; Montana aoto-$880,cities to start up the program for -1- 945,972; North the summer months. As a result of South Dakota Utah $779,128; 34. the increased appropriation which and Wyoming-$460,6$1,781,756; a and ( Prime takes account in into increases breakdowns the sponsor availminimum also the law with made and prowage funding comparison vides for recreation and transportaable for last year's summer programs tion assistance where needed over are given at the end of this release.) David T. Duncan, Acting Assistant 700,000 jobs through $397 million in Regional Director for Manpower in Federal funds should be made availDenver, said that these figures reflect able for rfeedy youth this summer across the Nation. ... increased amounts over the previous(In a statement on summer job ly released funding estimates because programs for youth, President Nixon urged the local elected officials now responsible for these summer programs "to take the necessary steps as rapidly as possible to insure that their program plans are in order so that all those who should benefit from those funds are able to do so." He also said 70,700 jobs in Federal agencies will be created for disadvantaged youth in a program by the U.S. Civil Service Commission and another 10,000 in conservation work in Federal and State forests and parks under the Departments of AgriculSee Details Page 4. ture and the Interior.) - 317; " Supreme Court Decisions Charity Receives Wishing Well Pennies MONDAY, JULY 1, 1974 Profits Uneven for Industries Poor future Thus, no matter how well corcorporate profits reported that 40 had soared at a percent annual rate porations counteract the effects of inof to $140 billion in the first quarter flation by adopting LIFO accounting the year, following strong gains in the and accelerated depreciation methods 1971-7- 2 and and they have a long way to go in a whopping period in the 1973. increase However, this respect they still may not be flow of earsufficient news generated few smiles in cora generating the investment . because essential to meet' porate boardrooms, partly nings indecade. In past of uneven were needs the coming among gains very shares of relative the capital dustries, and for other reasons as well. periods, Profits typically rise sharply during and labor in the national income tenbusiness expansions (and fall sharply ded towards long-terstability, with in recessions), in contrast to the the real return to each of those factors of production rising about 3 or 4 perrelatively steady kmgterm uptrend in cent a year. But although the capital wages. Moreover, recent statistics may notbe as strong as they appear; (profits) share rose in 1973 for the third year in a row 'to 11.7 percent of many analysts, in fact, now question the "quality" of the profits data reporit still gross corporate product ted by corporations, claiming that - remained lower than at any other time since World War II. they are overstated by one fourth of more because of their inflation A number of reasons could be cited swollen inventory component and in- for this apparent decline in the return for older plant and sufficient write-off-s to capital. One hypothesis, advanced equipment equipment. by Alan Greenspan, is that the The situation disturbs corporate balance has shifted in treasurers becauae they foresee the favor of labor in the postwar period. need for a continued high level of An alternative explanation, profits in the years ahead to supply developed by Albert Burger, relates funds for the nation's myriad ' the low profit share in the early 1970's needs, such as breaking capacity botto the length of the previous business tlenecks, developing new energy sourexpansion. During the prolonged ces, and cleaning up the environment. period of growth of the 1960's, total However, inventory profits don't spending (and prices) accelerated, provide a reliable source of investment giving firms a strong incentive to exfunds, i neither do the profits pand their capital stock. derived jl n the underdepreciation of The resulting increases in capacity existing capital assets. Corporations which came on line in the late 1960's thus are under growing pressure, not and early 1970's were not fully only to improve their earnings position utilized. Consequently, the average but also to make reported profits a cost of production rose and the profit more accurate and economically rate fell. But this depressing factor may have been overcome during the Poor accounting strong 1972-7- 3 expansion, with firms Inventory profits in the first quarexperiencing a rise in output per per ter of 1974 amounted to a massive $31 billion (annual rate) more than one as successive fifth of total earnings added increases price retroactively to the value of goods in stock. Even so, a large share of that total resulted simply from the choice of accounting m son and a consequent improvement in profits, as would be expected as they moved down along their average cost curve. No one knows how well corporate Especially during an inflation period, the size of reported profits is strongly influenced by the accounting method first-olast-i- n chosen (LIFO), first-ou- t ( FIFO ) or whatever. The LIFT method, in which the inventories that are sold or otherwise used up are charged with the cost of the most recently acquired stocks, works to reduce reported profits when prices are rising. The same type of exaggeration results from the impact of inflation on depreciaiion allowances. Accounting tradition and tax law both favor the ' use of original-cos- t depreciation, even though use of that method could lead to the understatement of the value of business capital (and therefore of depreciation) in inflationary periods such as today. The situation has been helped only partially by the legislative liberalization of depreciation allowances in 1954, 1962 and 1971. By failing Wallace B. Bodge to take full advantage of methods apOMI Corporation, a Salt Lake City propriate to an inflationary period based firm with holdings in' the such as accelerated depreciation hospitality industry, has announced corporations may have the appointment of Wallace B. Budge their plant and in billion to of Operations. The $7 much as as equipment by announcement came from Richard T. 1973. Poor record Perkins, President of OMI Corof the poration. problem Beyond A native Utahn, Mr. Budge atmeasurement, there stands the basic tended Utah State University and the question of the adequacy of profits for the and financing University of Denver (Business and motivating Hotel Administration). He taught necessary expansion of productive Hotel Administration and Marketing survestment. Increasing doubts are obthe University of Nevada at Las at few facing on this score, although ' the with would servers Vegas. According to Mr. Perkins, yet agree perennial pessimist, George Terborgh, "We're extremely pleased to announce the addition of Mr. Budge to our corwho recently said, "The reinvestment of corporate earnings, realistically porate managerial team. His expertise and nearly two decades of experience ceased." has almost measured, dustry represent a major asset to our organization." In 1970 he was honored as delegate speaker for the United States Travel Bureau, at the International Tourism Exchange in West Berlin, Germany. In 1963, Mr. Budge moved west and became General Manager of the Hacienda Hotel and Casino in Las Vegas. During the next seven years, he served as Manager and Sales Director fot eh Hacienda, The Flamingo Hotel and Casino, and the Hyatt Motor Hotel and restaurant properties in Nevada and California. 1969 saw Mr. Budge move to Maryland as Vice President in charge of Marketing for Quality Inns, a giant chain of over 400 motor hotels and restaurants in the U.S. and Europe. Since 1971, Mr. Budge has acted as a consultant for major hotel chains,, opening new properties for Howard Johnson's, Hyatt, Quality Inns, Royal Inns and several independent franchises. He has been associated with OMI Corporation for over a year, formulating a unique new concept for development of economy-oriente- d motor hotels now under way. Mr. Budge's role at OMI will be the operation of all corporate properties with the manager of each property directly responsible to him. The maintenance of operating profitability and all marketing efforts will be the responsibility of Mr. Budge as well as assisting in administrative decisions regarding acquisitions of new proper- The Commerce Department recently pre-ta- x nt m labor-manageme- nt - . measure. meaningful . profit margins and the profit share will hold up in the face of of income all the diverse factors noted above. Suffice it to say that the task will remain difficult as long as the economy remains distorted by in- flation, its with resultant misallocation of resources. In This Issue: 2 Legals Water Service 2&15 Suits 2&12 Small Claims 3 3 Marriages 3 Third District Court 4 Court Decisions ... Supreme 7 Bankruptcies 7 Murray City Power 7 Bountiful Power 8 Building Permits 8 Business Licenses 8 Liens Uniform Commercial 8 Code Filings 9 Mortgages Tax Liens 9 10 Trust Deeds 10 Warranty Deeds ....... Bankruptcy Sale 10 Quit Claim Deeds Divorces Births Murray City Court Probate Court 11 12 13 13 16 OMI Has New Vice system made by most ut Allen Perry, left, holds 3,000 pennies taken from the Wishing Well Foundation at the mall. Wayne Richards, right, and Mrs. Betty Cass. tributed $810.06 to the society. This last $30, representing about six weeks accumulation of coins in the fountain, was executive given to the Easter Seal Camp in Wayne F. Richards, CotGrand Mesa, to help send a the of Colorado, and manager secretary tonwood Mall Merchants Association, handicapped person from the Salt collected $30 worth of pennies from Lake City area there. "TlTe bank is always looking for pen-- . the fountain and turned them over to nies because they seem in such short Zions First National Bank's Cottonwood Mall Branch Wednesday, supply these days. The fountain at the north end of the mall has plenty and June 19. when we think there is about $25 in Steven J. Scott, branch manager of in the fountain we collect the Zions Bank office at the mall and pennies said Mr. Scott. them," president of the Cottonwood Mall Mer"We used to donate the money to chants Association, said he was glad several different charities, but have to tret the pennies back in circulation. concentrated for the last several years ' "The Merchants Association is also on the Easter Seal Society." Mrs. Joanna Buck, executive direchappy to be able to turn $30 in bills tor of the society, said there would be over to charity," said Mr. Scott. "The Merchants Association two sessions of summer camp this donates regularly to the Easter Seal year, July 7 to 19 and July 21 to & Adults August 2. She said a total of 60 perSociety for Crippcd Children from this area would be sent to sons of Utah, Inc., he said. Mesa Camp. Grand has con; 1970, the association The Wishing Well Fountain at Cottonwood Mall is one of the many places where scarce pennies are hiding. Siry firms. of President Operations nam wu.w&?wivmm fir-st-- in non-financi- al under-depreciat- ed Vice-Preside- nt in operations of the hospitality in- 600-roo- m ties. OMI presently owns or operates under management contract, 10 proper- ties including restaurants. 8 motels and 2 |