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Show Steel Executives Back irade Expansion, Seek Fair Policies On Account bv Jerry M. Young W ASHINGTON The steel industry today endorsed the concept of expanding world lleial.l Business Editor commerce taroNgB latcrrauorai Saturday was the fifth anniversary of the Holiday Ira ia Provo awl the management celebrated the event wit a little swimming party for a few friends. The hometown motel business sometime! gets overlooked by residents. And this gives us a chance U remind people that such establishments do make a contribution to the community. Sc Congratulations Glen k. Overton, who carries the official name, Innkeeper. MRS. MARIAN L. SCHIEVE was promoted to the position of Assistant Manager Operator Services it w.s announced today by Mr. Garth Boyce. District Traffic Manager for Mountain Bell. Mrs. Schieve began her career with the company in 1947. Prior to her current assignment she has filled the positions of an Operator, Central Office Clerk, Acting District Clerk, Acting Force Adjustment Supervisor, and Super-v-or. She was born and educated in Provo. She is the wife of Ernest Schieve and they are the parents of one daughter, Karla. MRS. ELIZABETH BARNES was promoted to the position of Assistant Manager Operator Services it was announced today by Mr. Garth Boyce, District Traffic Manager for Mountain Bell. Mrs. Barnes started with Mountain Bell in 1945 anJ prior to this assignment held several positions such as Operator, Acting Chief Operator, Acting Group Chief, and Service ' Assistant. She lives in Spanish Fork where she was raised and educated. She is married to C. Norman Barnes and they have four children, Mrs. Kent (Connie) Meason, Henery G. Barnes, Margaret, and Barbara Barnes. JUNE MARKS the 30th year anniversary of Mrs. Angela Cameron with Mountain Bell Telephone Company. Mrs. Cameron started with Mountain Bell in 1943 as an Operator and in 1945 she became a Chief Operator. She now holds the position of Manager Operator Services and is responsible for all of the operators in the Provo area. Mrs. Cameron was born, reared, and educated in the Provo area. She is the wife of Morris C. Cameron and they now reside in Orem. GORDON SIMKIN has bought out Pete's TV shop at 55 N. 200 W Provo. Pete's is the oldest TV repair shop in Provo. It was opened by Peter DeFraaf who is retiring on orders from his doctor and will move to California. The new name of the shop is "Seek Pete's TV." Mr. Simkin has experience in all kinds of electronic servicing. He started in grade school working with radios and turned to television repairing when he was in high school. His shop will offer service for all kinds of electronic equipment including consumer, industrial and medical equipment. J. BRENT RAYMOND, son of Mr. and Mrs. E. J. "Ted" Haymond, of Springville, has been named vice president in the information services department of McKesson and Robbins Drug Company. His responsibilities will be to improve and simplifying current data processing systems and working toward a totally integrated system. Mr. Haymond joined McKesson and Robbins after serving eight years with the IBM Corporation and two years of line management in a data processing division of a Candaian firm. He received his B.S. degree from Brigham Young University and an M.B.A. from Northwestern University. Increased Regulations Seen for Foreign Banks a succession -Bankers president payments States the of the The PARIS Association American gently warned Japanese and European bankers International at the ot negotiations aimed ft reducing barmrs to trade. At the same time, the industry called for revision of procedures to afford relief from market disruption caused by import compeUtioa, and urged further strengthening of provisions dealing with unfair trade practices. Chief executives of two major steel producers presented the American Iron and Steel Institute's position on the Trade Reform Act in testimony prepared for delivery before the House Ways and Means Committee. They were Stewart S. Cort, chairman of the American Iron and Steel Institute and chairman, Bethlehem Steel Corporation, and C. William Verity, Jr., chairman of Armeo Steel Corporation. Roger S. Ahlbrandt, chairman of Allegheny Ludlum Industries, Inc., presented a separate statement on behalf of the specialty metals industry. Mr. Cort. who made the principal presentation for AISI, said the steel industry supports granting the President flexible trade negotiating authority, as proposed in the bill. Failure of Devices However, he and his colleagues pointed to the failure of existing governmental devices to provide remedies for import-cause- d market disruption and unfair trade competition. Mr. Verity and Mr. Ahlbrandt analyzed the voluntary restraint arrangements under which European Economic Community and Japanese rteel producers have pledged to limit their steel exports to the United States. They noUfd that these arrangements have had little success in preventing disruption in specialty steel markets and on the West Coast, and have had no impact on the sharply rising steel imports from countries outside these agreements. Mr. Cort said that "the U.S. industry may not be able to maintain its present size, much less expand in anticipation of larger future demand, without being given assurance that imports will not take a disproportionate share of market growth." U.S. Trade Balance He noted that during the past 15 years, the U.S. trade balance in steel has shifted from a sumlus of $577 million to a $2 billion deficit. Yet, the industry spent more than $17.2 billion between 1963 and 1972 to modernize facilities. This sum was more than the industry's combined cash flow for the period, and it did not significantly increase domestic steelmaking capacity. Domestic steel requirements are increasing at a rate that will require steelmakers in this country to add another 20 million to 25 million tons of productive plus the capacity by 1980. This expansion costs of necessary replacement and will environmental control spending to billion of $3 $4 spending require capital billion a year, an amount far in excess of current cash flow. Low Return on Investment Mr. Cort went on to observe that the domestic steel industry's return on net worth was the lowest among 40 industries ranked in a major financial institution's survey, too low to support the level of investment necessary to provide the steel this county will need during the balance of the decade. Although the current steel picture is brighter than it has been in recent years, because of a surge in steel demand, and an agreement between steel management and labor which substantially lessens the strike next possibility of an industry-wid- e year, the steel leaders cautioned that some of the factors which had given rise to the has United deficits, had two devaluations in less than two years, and the dollar is to almost daily that they face buffeting." He said that the traditional increasing regulation in the United States. roles of gold and the dollar have ABA president, Eugene H. already been transformed, and Adams said "At present, it is "we must now seek to actually true that foreign banks their appropriate plares in a international enjoy substantially greater restructured freedom to operate than U.S. payments system." banks in our own domestic He pointed to the markets." corporation as He added that this seems another increasingly potent "competitively inequitable" and economic force. therefore could possibly be "The gross product of such .changed. corporations now amounts to in my view, more than $450 billion per year." "Nevertheless, foreign bankers will continue to said Adams, the equivalent of the be welcome to compete within combined output of France, THOMAS W.WINTHER the structural and functional Italy, and West Germany. He parameters assigned to U.S. added that banks." said Adams, who is also corporations account for about of the world's president of The First National Bank of Denver. Colorado. exports and controlled some $270 Adams addressed some 175 of billion in short-terliquid the world's feading financial assets, at the end of 1971 which is more than twice the reserves authorities at the IMC meeting. The purpose of the meeting is to then held by all central banks authorities provide leading bankers and and monetary Thomas W. Winther. 5951 S. 570 their guests an opportunity to combined. vice "This too must be reckoned E.. Murray, assistant discuss cureent international and branch financial issues. with as we move to reshape the president world's monetary mechanism," coordinator of State Savings and Pinpointing current problems. has been Loan Association, Adams said. "After experiencing said Adams. elected president of the Salt Lake Chapter of the American Savings and Loan Institute. The Institute is the educational arm of the United States Savings and Loan Conference Monetary subject H 1 multi-nation- multi-nation- Winther Named one-quart- State Savings League Prexy Gains in Productivity Expected to Level Off - Productivity shortages occur, marginal the CLEVELAND measured by Labor Dept. as output per manhour showed a healthy gain in the first quarter of this year, but industrv observers are uncertain how long , mat trend will continue. Industry weeK reported today. . Managers see production, possible removal of the investment tax credit, changes in the attitudes of younger workers, and other e changes in the workforce as signaling a leveling off in the rate of productivity increase, the business magazine long-rang- said. The 3.9 per cent increase over the last quarter of 1972 ic is typical of manufacturing economic recoveries. In a recovery, people and machines are working at fuller capacity. In the late stages of a boom. labor t equipment has to be put into operation, and a slowing down sets in. Some DeoDle. however, believe that the productivity rate could continue 10 go up Decause of the increasing use of automated' equipment, technology, and improved a better League. Mr. Winther succeeds William E. Barrett, branch manager of Deseret Federal Savings and Loan Association's office in Orem. Elected vice president of the chapter is William M. Plott. title examiner of Prudential Federal Savings and Loan Association. Treasurer is Frances Akimoto. secretary to the president of American Savings and Loan Association, and secretary is Richard A. Fisher, assistant vice educated workforce. Industry Week noted. Companies are not sitting idly president at First Federal by. In some Savings and Loan Association. industries, companies are Mr. Winther has attended the initiating new methods of University of Utah and this fall motivating and managing people will be attending the American in their efforts to increase Savings and Loan Institute's School for Executive employee output. Job enrichment is going to be Development at the University of He very important to the highly Washington in Seattle. apparel industry worked for several financial of in positions because people will not stay on institutions dull, monotonous iobs. Industry cashier and loan supervisor prior to joining State Savings. Week pointed out. labor-intensi- labor-intensi- unfavoratle US. trade balance products will continue to operate. in ChfBaiHemlJl F8 Business News steel RecemiBeMUiUou Mr. Cort made a series of recommendations for revision of the Trade Reform Act. which included the following: granting the President the power to raise and lower tariffs, with the conditi thatnia lowering tariffs the President be required to take into account industries or industrial sectors which have experienced or are threatened by severe import competition. Special attention sboulJ also be given those sectors which are contributing heavily to the U.S. balance of trade deficit. authorizing the President to negotiate agreements with foreign countries limiting imports of products into the US, snnilai to the authority the President now has for agricultural and textile products. imposing narrower time limits and providing other changes in the and countervailing duty statutes. Mr. Cort also recommended a comprehensive revision of the escape clause provisions of Title II of the Trade Reform Act, to provide more rapid and more comprehensive relief for industries demonstrated to be seriously injured, or threatened with such injury by import competition. Voluntary Restraint In his analysis of the voluntary restraint arrangements, Mr. Verity said that although they have helped to slow the growth of total steel imports, there has been marked shift both by participating and from lower to countries higher value products. This shift has been particularly critical in the case of stainless and other speciality steels. At the same time, exports to the U.S. Pacific Coast have continued to increase substantially. According to Mr. Verity, one of the most serious problems facing the domestic steel industry today is shipments from nations not party to the voluntary arrangement. These have grown from a 12 percent share of total steel imports in 1969 to more than "r percent of the total foreign steel received in the first - quarter of 1973. Other Factors "Production costs are not the determining factor in steel export prices of foreign producers," Mr. Verity said. "They frequently price the product to get into our market in order to achieve domestic economic objectives, such as an inflow of dollcars, improved balance of payments, or maintenance of full employment in their steel mills." Specialty Steel Mr. Ahlbrandt observed that the Senate Armed Services Committee has affirmed the specialty steel industry's essentiality to national security and has expressed concern as to whether "this country can afford to lose the specialty steel industry and the currently available skills and technology associated therewith." He said that last year foreign-mad- e stainless steel accounted for over 15 percent of total U.S. consumption of all stainless steel and nearly half of the U.S. market for some stainless steel products. Other specialty metals markets have been equally .hard hit, he noted. In 1972 foreign producers took nearly 40 percent of the U.S. market for some specialty tubing products, while tool from steel imports increased by 1964 through 1972. Although U.S. specialty steel producers have countered foreign competition by heavy capital expenditures and promotion of advanced technology, Mr. Ahlbrandt said that the import influx has prevented producers from achieving the cost saving benefits expected from their investments. Sunday. June 17. U7J Buiinew Today Inflatkn is Bad Here But Worse Around World B DEAN C. MILLER l it Business Editor - These ' days for the pridef ul American abroad. NEW YORK (L'PIl are ;raumatic American tourists are paying' about 19 per cent more in Europe and Asia this summer because of the dollar devaluations since the Smithsonian Agreement in December. 1971. productivity problems that led to America's industrial star may be American backsliding. ascending again is the unit labor cost index. Wage inflation in European Common Market nations, for The two major U S. competiinstance, is four times worse tors for the international buck than n the U.S. are Japan and Wst Germany. Both are losing their labor cost Common Market wages went edges. up an average of I per cent in 1972 compared with about 1 5 per Last year that unit cos; on cent in the U.S. That inevitably American goods went up 21 per must show ip in the trade cent. In both Japan and balance figures. If American Germany units costs jumped 41 more percent. goods are produced The U.S. trade balance, once a that testified to U.S. therefore more economic strength and industri- efficiently, be bought and cheaply, they'll al savvy, was $2.2 billion on the the foreign goods squeezed out of down side in the first quarter. the domestic market. And now comes study by While it may be small comfort Towers. Perrin. Forcter Crosto the American housewife, the by, international management cost of living surge in the U.S. consultants in New York, which was the lowest among 24 major shows that American salaries industrial countries in the are no longer automatically tops. period ending in April. Many German and some French An Organization For Econommanagers are paid more, TPFC ic Cooperation and Developsays. Research by the New York, ment survey of 24 countries in firm around June 1 shows that Western Europe, Asia and North the German marketing manag- America showed that the U.S. er makes about $32,000 annual- inflation figure of 5.1 per cent ly. His Arnericzn counterpart was the lowest. Turkey led with earns about $29,500. French 12.2 per cent; Ireland. 10: Spain. marketing managers earn 9.7. Italy 9.6: Japan 9.4; United roughly $30,500. Kingdom. 9.2. Other majors The economic wheel turns included Germany 7.5 per cent, slowly but inexorably, however, France and Belgium 6.8 and and there are signs that Europe Canada, 6.6 per cent. and Asia may be in for the same Another reason to believe that big plus t Japanese wc iters are getting about 20 per cmt more this year than they did last. And in 1972 they won increases of about IS per cent over the previous contracts. Nurses in the Tokyo area are being offered $120 per month more and demanding f 150. Squibb Japan. Inc. has given its employes a 35 per cent annual wage boost averaging out to $100 per Even month. significantly. more Japanese management accepts this as a fact of economic life. "Anybody who does not realize that had better get out of Japan," says Jay of Tashima, Squibb Japan, based in Tokyo. Those are cheery words for American businessmen. two-thir- Ground Broken in Orem For Two New Buildings Dignitaries got together again develop a demonstration track for the launching of for beginners to test themselves another building project this on a cycle and also to develop time on the corner of 100 S. State some basic skills before riding St. involving the property out on the street. owner, two separate buildings He and his wife Jannicke and and businesses, and the Small their two children live in Alpine. Business Administration. Mr. Brake The property is owned by Jack It will be the third such shop to LReid. open under the name Mr. Brake, The businesses are Western but the first to open in Utah Cycle and Mr. Brake. County. The SBA's role involves the The Mr. Brake shop in Orem lease guarantee agreement will be managed by W. Lamar between the property owner Mortensen who is one of the who is actually building the owners of the company. He will structues and the tenants. be assisted by Edward G. The buildings are to both he Kanavel. Both are residents of structures, one Orem. measuring 50 ft. by 45 ft., and the As the name implies, the shop other measuring 50 ft. by 50 ft. will offer a complete brake The general contractor is service. Because they are Western Engineering of Orem. Mr. Martinson speicalists, Western Cycle indicated they are able to Western Cycle is owned by complete a job in an Arlin Brewer who has been in or less. business for the past seven years The Package Program at 225 W. Center in Provo. Development of the program, The shop is the agency for the desires of coordinating Yamaha and Bultaco motorcycle owner, tenants and the property lines. As such there has been a SBA. was handled by David sales, service and parts Castle of Bushnell Realty of operation. In addition the agency Provo. has handled and serviced snowmobiles. Mr. Brewer said that the move would provide the agency with more room to stock parts and expand the service operations. Because of the open area behind the building, he plans to in Orem all-ste- -- : I 1 y 'id I DETROIT (UPIl - General Chairman Richard C. said recently it Gerstenberg was unfortunate President Nixon had imposed a general price freeze and repeated that prices on new cars will rise when 1974 models are introduced in September. In the first reaction from one of the nation's bellwether industries, Gerstenberg said Nixon's Wednesday night economic message has little effect on the immediate future for the automobile industry. The price freeze expires in nearly one month before )! V 60-d- new-mod- introduction. v l Y I . V'r' ' iiytl v V vV' Ma Ly&V blue 41 . itMw' litiH' p-fpp&t- iiiii o)so v v! v. ' honest denim fabric . . solid contruction plus the lean Levi's fit and big bell bottom styling. Pre- shrunk in sizes 28 to 36. f Uv I Tough, - U CORDUROY BELLS Traditional fit and ap- pea ranee in lush cotton corduroy. Fashion colors of Navy, Beige. Burgun- dy, Sand and Brown. In sizes 28 to 36. p)oo lifiiW pfcf! J&t0$j fe!5?jp&ffii3 sSfcyjFj 3SSr Is? r Jikt Si b i- , aii muz J ! . it!'- lf Motors :' V'7 lilf DENIM BIG BELLS ! fwrCa, men You're Out Call 377-202- 0 VALLEY ' TELEPhM ANSWERING SERVICE DOWNTOWN, 50 SO. MAIN COTTONWOOD MALL VALLEY FAIR 1 IN MURRAY UNIVERSITY MALLOREM J |
