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Show supplement to the National Enterprise Regulation Hurts Housing The only answer to redlining is the Neighborhood Housing Service, Senator E. J. (Jake) Gam told citizens and public officials dealing with low income housing problems. At the conclusion of a housing conference sponsored by the Utah Housing Coalition and the Weber-Davi- s Housing Corporation, The Gam told the group, Home Loan Disclosure Act will The not solve redlining. information you can get from disclosures is worthless without further laws requiring credit allocations. And I dont want credit allocations. Savings and Loans dont want to turn people down for loans, he told the group, but it is bad business for them to loan money in blighted neighthree-da- y FfffflimcMsrs Unadleff Fiur by Terry Swanger The franchise industry, like any other rapidly expanding business, is beset' with the strain of growth. And growing it is. Of total projected retail sales in 1976 of S627 billion, retail franchise operations will account for $175 billion. The Department jt ! A j t 4 ' t of Commerce says this trend will continue franchisers 28 percent share of total retail sales. Automobile and truck franchises alone will account for $94.3 billion, gasoline and service stations $4.4 billion, and automobile products and other retail $15.2 billion. Attention, naturally, has focused on abuses, so far gone undetected in the suddenly mushrooming industry. From every corner have come suggestions to alleviate grievances and establish guidelines for the future. Antitrust Concerns chise industry, legislators and from chaos, the Federal Trade courts are concerned about the Commission (FTC) recently anti-truovertones of the proposed a uniform set of business. Concern has cen- regulations aimed at preventtered on disclosure of infor- ing abuses in the nations position of serious disparity in terms of information and bargaining power when compared with the franchisors. st mation, registration of franchise industry. franchises, termination and renewal agreements, exclusive territorial arrangements, tie-i- n claims relating to equipment, sign, real estate and supplies sold by the franchisor or by his designated agent to franchisees. A study sponsored by the Small Business Administration (SBA) in 1971 sparked their interest. It revealed the typical franchise purchaser to be of modest means, inexperienced in business, and had signed his franchise contract without the benefit of legal counsel. Since that time, California, Michigan, Wisconsin, Rhode Island and several other states have passed franchise laws dealing with disclosure of information on the part of the Senate Bill The FTC proposals would require franchisors to Congress, too, has perceived problems within the disclose: details of their operations and financial condition to prospective franchisees; purchasing obligations imposed by the franchisor by contract; provisions tor termination, renewal, and cancellation; financing arrangements and any fees imposed; addresses and telephone numbers of 10 holders of the same type franchise geographically closest to the franchise prospect, and the total number of simi- industry. Senator Frank Moss introduced a bill last September which is, for all intents and purposes, the Senate version of the Mikva bill in the House. Moss aims at the regulation (D-Uta- h) of franchisors policies of termination and renewal of franchises. His bill requires that notification be made 90 days prior, by franchisor to franchisee, of any action concerning termination, cancellation, or failure to renew. Notification must lar franchises operating, granted and terminated in the most recent fiscal year. The FTC justifies its proposals after studying the SBA findings. They also contend that franchisees are in a state intent, date and reasons for such action. A statement of remedies must also be made available to the fran-continu- ed on page 5b borhoods. If you were president of a Savings and Loan, you would need help from the city and loan guaran- tees to make loans like that, Gam told them. He added the citys zoning measures are a very important part of the process of rehabilitation. The Neighborhood Housing Service, due to begin operations in Salt Lake City next month, can provide the support Savings and Loans need to make high risk loans, Garn 1 have seen the continued. success of Neighborhood Housing Service with my own eyes in Baltimore (Maryland). I have seen cooperation of all government levels, private continued on page 6b franchisor. Keeping in mind the size, scope and nature of the fran I A i t k i V FTC Rules In an attempt to bring order Analysts Study 1976 Budget Questions While the proportion of federal defense spending has declined from 56 percent to 25 percent over the past twenty years, payments to individuals for various income, maintenance programs have soared from 19 percent to 44 percent of total federal outlays during the same period. These, among other facts, were revealed by Utah Foundation in its analysis of major budget questions facing the nation in 1976. A report of the Congressional Budget Office says action to be taken on the 1977 federal budget now under consideration could either reverse these trends of the past twenty years. The report notes that changes in the size and the character of federal spending during the coming year will be dominated by decisions reached by Congress in five (1) national major areas: security, (2) unemployment, (3) health, (4) aid to state and local governments, and (5) continue or federal civilian pay. Foundation analysts point out that the 1977 Federal budget is being prepared for the first time under the new procedures prescribed by the Congressional Budget Control Act of 1974. This legislation requires that Congress must look at the budget as a whole instead of the piecemeal fashion that has characterized federal budget preparation in the past. The Foundation study observes that while the new budget law establishes procedural reforms by which the federal budget may be brought under control, it does not insure that federal spending will be curbed or that large-scal- e deficits will be eliminated. If this is to be accomplished, there must be resolve and determination on the part of the people and their elected representatives continued on page 6b Utah Honors Exporters Governor Calvin lntcrmodal Development L. Office, San Francisco; and Paul Mantz, Office of Advan-e- d Rampton has proclaimed May 2 World Trade Week in Utah. The observance, sponsored by the Chamber of 16-2- Commerce of the United States is being celebrated throughout the nation. The Utah observance will include a workshop and banA free Import-Expo- rt Workshop will be open to the quet. public on Wednesday, May 19, from 1:45 until 4:30 p.m., in the Utah Power and Light Co. auditorium, 40 East First Shipping . Operations, Washington, D.C. Speaking on the topic, What a Port Does for You, will be Two representatives from the Port of Portland, George Nakata, Deputy Director Trade Division, and Har-lan- d Van Horn, Marketing Representative. Concluding the program will be Dean Jarvis, of Arthur J. Fritz and Co., and Scott Ogden, of Enterprise-Wycof- f, who will talk about How a Foreign Forwarder Can Save and Money. That evening, the annual World Trade Association of Utah banquet will be held at the Willow Creek Country Club, commencing with a reception at 6:30 p.m. Governor Rampton will be the featured speaker. Annual awards for Utah's outstanding world trader and trading firm will be presented. You Time South. Master of Ceremonies for the event will be George M. Blessing, Jr., director of the Salt Lake District Office, U.S. Department of Commerce. Three major topics will be addressed by a number of The American speakers. Merchant Marine Meeting the Challenge" will be discussed by James L. McKinley, National Maritime Union of America; Harold Romain, Chief, Office of Marketing Development, San Francisco; George Sherwood, Trade Specialist, Office of Marketing Development, San Francisco; R.W. Corkrey, Ports and World Trade Week. Governor Rampton proclaims May 2 Standing, left to right: Cass Bettinger, George M. Blessing, Jr., Sands Brooke. Gary Bridsall, Ed White, Dale. B. Carpenter and Nathan Mazer. 16-2- |