OCR Text |
Show I Tail P WASHINGTON (AP) I . ? cr amis A federal crackdown Is takihg shape against private foundations set up as schemes. The Internal Revenue Service revealed this week it began eight months ago an investigation into what it termed widely promoted plans to avoid taxes through private foundations or family trusts. A congressional Inquiry into what Rep, Wright has called the mass production of Patman, foundations is scheduled to begin " J October 30. . -- The Johnson Administrations tax revision package scheduled to be sent to Congress later this year is also expected to call for a ban on the diversion of foundation assets to private advantage. The first witnesses in the congressional inquiry by Patmans House Small Business Subcommittee are expected to be trustees and members of a group called Americans Building Constitutionally, headquartered in Barrington, 111. Patman said the group allegedly instructs its ., members on how to avoid taxes by setting up perfoundations. sonal ' IRS, in disclosing its inquiry, said it caht name names now. It said the schemes for escaping taxes follow a- - general pattern and usually involve setting up one or more private foundations. IRS said tt doubts the legality of such operations. The Treasury Department in 1965 recommended to Congress' a general ban on fl$icial transactions between a foundation and its contributors, officers,, director or trustees to prevent diversion of assets to private use. This is still a basic treasury objective and is expected to be included either in its original or modified form in a tax revision package Johnson has promised to send to Congress this jrear. In his econonfic message to Congress last January, Johnson said without spelling out details: As one specific reform, I will urge changes to deal with private foundations. jibuses by IRS said the schemes It is investigating operate in this general way: ' The taxpayer turns over to a foundation his business assets and ail or most of his other assets and then becomes the director or bus tee of he foundation. Promoters of the plans usually contend the taxpayer can operate his business under cover of the foundation as an educational or. research activity exempt from federal income tax.' But IRS said this doesnt necessarily make the business tax exempt under the law. It said its investigation could lead to these three rrS-!399- 5' MX s , the founder. VvXXi v .A' .HI t V , , , results: All income of Y'p v the foundation may be taxed to Piper Cherokee The alleged status of the foundation may not be recognized and the business income may be taxed in the normal way. Even if the foundation is its business income might nevertheless be subject to tax business income, and benefits that the founder or his family receive from the foundation might also be taxed. Arrow! has new safety features. Cherokee Arrow Has Automatic Landing Gear ST UAL Okays r? r By KEITH BURRIS Deseret News Staff Writer Piper Aircrafts new Cherokee Arrow Speared its way onto the Salt Lake City scene Saturday,! creating a mountain of Interest. e The new plane,, newest in the Cherokee tribe, brings to the industry a revolutionary concept in retractible Lease Of single-engin- 5 Planes United Air Lines will lease landing gear. five Boeing 727s for use on its The $16,900 (basic price) Arrow is a revision of the popu California commuter flights, ' v lar Cherokee 180, sporting a fuel, ffic-iIs announced 'a company below 110 m.p.h., a require retractible gear time injection engine, controllable speed drops ' (Thursday. pitch propeller and a power sensor Immediately lowers thebefore a pilot can qualify for a said Bob Three of the 727s will be quadrant similar to those in 'gear, a horn sounds, and the 'commercial license, leased from World Aircraft, pilot knows he has forgotten Farley, vice president and gen- aircraft. Inc., of Oakland, Calif, and two But whats most noticeable something. The horn stops when'eral manager of both Inter-abofrom Executive Jet Aviation of the Arrow is its ease of, the gear handle is placed in the mountain Piper and Thunderbird Aviation, Salt Lake Munici- Columbus, Ohio. handling. Even more to the down position. f Slower can The will be to The leased aircraft power-offun speeds it opis from machine. pal Airport, measured as comes fly. pilots liking, its cooling Pipe Aubery Blankenship, right, holds the gearj The Arrow will provide a plug without in 160 be flown erated near will cruise aircraft configuraPipe Corp, is only plastic pipe firm in Utah. plastic after it comes from heating tion, seating 113 passengers and m.p.h. at 7.5Q0 feet with a top extending by pressing the gear, for that gap. lever between the Conversation is easily carried enabling United to take its own speed of 170 m.p.h. It has han-- 1 over-rid727 on in normal voice levels as airplanes off the Los dling characteristics of a heavy seats. Angeles-SaFVancisco commutThe system provides a fail-- , Piper has done a remarkable airplane. s er run, convert them to On test flight, we established safe system fur inexperienced job of soundpioofing the cabin. seating and place them a rate of climb of pilots and those making tliei Mr. Farley said Thunderbird, elsewhere in scheduled service. air- - retail sales outlet for Salt Lake; transition from fixed-gea- r HO with at m.p.h. es within a couple of months, he said. to chemicals in the soil. In By DOUG CHRISTENSEN , configuration the two aboard and full tanks. to retractible gear equip- - Summit and Tooele counties. planes Mr. Prahm said the primary products 727s have 24 first class and 72 Presently the firm employs 10 persons, Deseret News Business Writer three counties in Wyoming and The landing gear is the most ment. with Wayne Prahm, commercial sales produced at the Midvale plant include coach seats. We felt a definite gap existed projected growth target of 20 on the feature interesting MIDVALE Its the only company of manager, heading the Utah division. The PVC conduit, PVC water pipe, ABS conWorld Aircraft has already not permit an in- in this category aircraft, and two in Nevada, has exceeded its firm has sales facilities in Costa Mesa, duit, styrene conduit, polyethylene pipe, delivered its three jets and one Arrow. It will its kind in Utah and it has a tremendous gear-u- p advertent landing. especially since the Federal per cent each year since it acCalif. Principals of the company are custom extrusions, conduit bends and a of the Executive Jet Aviation Administration air- - Aviation future, said Jerry Sorenson, local sales is and reduced When may cepted management in 1962. power full complement of pipe fittings. Reid Industries. aircraft will be delivered to representative. There is a great demand for plastic Marketing efforts are directed at United in October. The remain' Hes talking about Trans American wholesale agricultural supply, turf, indusin the Intermountain area, Mr. ing 727 is expected from Execupipe Pipe Corp., the only plastic pipe manuSorenson said. It is a new and coming trial, electrical supply, houses and spe- tive jet by early November. facturer in the state. cial development of products for utility thing. Although plastic pipe has been Painting of the airplanes with Located at 44 E. 8th Ave. in Midvale, manufactured in the country for 20 years companies. United colors and installation of the firm has been in Utah only one Trans - American believes in Utah commuter seats is being done or more it has caught on the last few month, producing all types of thermofirst, and has dedicated its market on delivery at Uniteds San Franyears. LaMar E. Peterson of 205 He noted that in specific cases sales efforts toward always giving wholesale cisco Maintenance Base. Four plastic pipe. are expected to jump 50 per cent a year. preferential pricing and service so that of the leased airplanes are E. 21st South, Salt Lake We are already considering doubling our floor space, and this expansion could It is replacing cast iron soil pipe because Utah commerce can stay strong and expected to be in scheduled City, has been named the service by the end of October, winner of a it wont corrode, oxidize and is resistant prosperous, Mr. Prahm said. more than double the number of employ will vacation house awarded by contract was commerce and service clubs A The leased equipment $200,000 remain part of Uniteds operatthe Swan Rubber Division awarded Friday by the Wasatch determined effort has been of Amerace Corp. ing fleet until early sumrher Division of Thiokol Chemical made to build the economy pf LBJ 1968, when the airlines first sue the state, especially in the Mr. Peterson was the winCorp. to Eaton Metal Products or stretch 727s are Reand trade areas. for the Northwest ner WASHINGTON (UPI) Lary placed in service on the Califor-ni- a of Salt Lake City during a "in Swans 2-Vacation LOCAL CAPITAL to gion executive 1 where Hotel Utah secretary luncheon at Temple, run. The commuter Dream H ouse Sweep-stakeGov. John Connally of Texas, is stretched 727s will seat 151 pasThe state has been success Gov. Calvin L. Rampton called The house he won NEW YORK The board for cooperation in building Utah ful in attracting branches of joining the White House staff as sengers. United has an additionwas designed by Lindal of directors of International a special counsel. Temple, a al 22 stretched 727s on order large national concerns that industry. Cedar Homes of Tacoma, and Telegraph Telephone A small business steel fabri- have been very impressive in lawyer, has been with Connally which are expected to have dual Wash. Corp. this week proposed to since 1963. class seating. cator, Eaton will produce spe- terms of length and quality . . . we have been less successful in cial steel pipe which will be split the shares of common stock of the corporation on lass-wrapped by the Wasatch attracting local capital from basis and ina citizens or getting Division under contract to the crease the authorized comReynolds Electee Co. of River industries to expand, he said. The Electronic Stock Evalua- months ended June, 1967, were mon stock proportionately. Grove, SI, The governor said that since tor Corp. of Rockville Centre, $2.06 per share versus $1.83 per The will be submitthe state government cant aid HELP SBA 4 N.Y.' has selected Unishops, share for the previous twelve ted proposal Works manager Paul Hawk smoke and dust billow Into the A boom, a bril-- l BACCHUS for approval by ITT The contrast was presented small business, but the federal Inc., as the stock of the week. months. In ESEs opinion, earnshareholders at a special liant orange flame and a billow said all went well in the static air. as next months for the twelve part of a Small Business Ad- government can through the ings Mr. Hawk said the first stage Dec. 13, in Baltimeeting third UNISHOPS, INC. (43) UNS. the which successmarked the smoke of ministration firing, signalled program to request SBA, businessmen should be may reach $2.70 per share. No more, Md. was successfully tested on July This nationwide operator of dividend is news in test the the states of successful media, trade informed of the service renfirst of the ful propulsion sue was stage second and 5 the testing currently being stage The directors also inleased departments to mens of business dered by the federal agency. . leaders down paid. the Navys new Poseidon fleet system. The rocket is tied cessfully fired two weeks later. associations, creased the quarterly diviand boys wear in discount He said the SBA helps to help unions labor schools and take to the test of in a Bacchus and the fired is at ballistics missile Hercules bay manager busistores, has increased its sales MORSE SHOE INC. (38) dend on the present comsmall Inform SBA the loans, through determine management The two stages of the missile. test range Friday at 6:45 p.m. measurements and mon stock to 42 cents per conferences to disby more than 15 per cent every MRS. Is the largest domestic be- nesses of its services. counseling, venture is other factors. a first joint stage The firing brought the usual share, equivalent to an anGov. Rampton said, year since 1957. Expansion of operator of During cuss general problems and shoe deThe firing causes a loud boom tween Hercules at Bacchus and nual rate of $1.70 a share. rash of calls to the Bacchus facilities through acquisition as the last 30 months through the through the service of retired The at Thiokol which lasts roar then develCity. and Brigham a Works with of outlets located Hercules, Inc., well as addition of leased de- partments Promotion Commis- executives willing to make judgor- second stage is handled entire- Industrial opers of the propulsion stage for about one minute. A billiant chambers of ments available without charge. partments should Increase prof- primarily in the east and midsion, flame leaps up and then ly by Hercules. missile. the ange it margins. Earnings for twelve west Earnings were restricted a two-engi- ut Trans-Americ- an h e A Plastic Pipe ine T o Success n two-clas- two-cla- Salt Laker Wins ' Dream House ' Thiokol Awards Eaton Contract three-bedroo- STOCKS OF THE WEEK Evaluator Ticks Off 5 Securities Joins ITT Proposes Stock Split Staff - 727-22- s. - fiberg- fissile Stage Tested two-for-o- local j self-servi- Pro-Uta- New Vitro months ended June, 1967, were by the poor Easter selling sea$3.22 per share versus $2.75 per son and heavy start-u- p costs of share for the previous twelve new units. However, lower costs months. In ESEs opinion, earn- and improved retail sales (5 per ings for the next twelve months cent to 9 per cent increases re- should be approximately support our earnings per share.JV annua1 dividend. IforecasL Warnings for twelve now at $0.72 per share, has been months ended June, 1967, were Increased each vear since pay- $2.97 per share as compared ments began in 1964. Salt Lake Valley residents with $2.67 per share for the preCAPITAL vious twelve months. ESE esti- can greathe easier knowing FOR STOCKS mates earnings of approximate- that their air Is several shades GAINS ly $3.25 for the next twelve clearer thanks to Vietro MinerINTERSTATE months. COLORADO The current $0.15 als Corp.s $325,000 dust collecGAS (42) CGC. This company quarterly dividend is considered is basically a natural gas pipe- minimal. tor. line operator, but diversification Plant officials demonstrated WHITE CONSOLIDATED die effectiveness of the new efforts have resulted in earnings growth averaging about 10 INDUSTRIES (W) WSW. Ac-(dust collecter) Friper cent compounded over thejquisitions have been this com- - day afternoon for newsmen and past 5 years and managementjpanys main source of earnings- sure enough, you could see the .expects., this .growth to continue; growth, Operations are primari- difference, over the next five years. Addi-- ly in the machinery and equip- - Even with the precipitator tfonal benefits could result from ment field as well as control operating there still is a white subsidiary interest in the tar and instrumentation fields. While plume issuing from the deports of Western Canada and these areas are generally con- - Vitro smokestack but its only a 40 per cent interest in 77,000 sidered cyclical in nature, the steam, said plant officials. acres In the Cook Inlet area of deferred credits still available The precipitator removed Aliuska. Earnings for twelve and the likelihood of additional from 96 to 98 per cent of the months ended June, 1967. were acquisitions coud override a cy- dust from the effluent This $3.20 per share versus $175 perclical downturn. amounts to several tons a day, share for the previous twelve eiactronic stodc x valuator catr. they said. iv wcvritiet listed Mow Reacted E5vE estimates next monUlSa The dust Is reprocessed in the outstanding tufKterrwntel valua twelve-mont- h imrlu Inttrast. ESS Mat earnings to be abovavaraga com put ri to perform tak commonly plant, which produces vanadium raaaarcb analvttv used in making steel alloys. approximately $3 50 per share. dona by Individual However, the comouter ha the advanThe annual $1.60 dividend tage of apead, enabling ESE to analyze From the state standpoint, approximately 1.600 aecurltlee eech week. should continue. In forecasting the price action of a aacur--I we recognize this as a prime extv, ESE obtain estimates of earnings, 1TANDY CORP. (49) TAN. dividends and sales from several differ, ample of voluntary cooperative ent sources, and programs a consensus sf the control, said Dr. Grant S. Revenues are derived from computer then assigns rating to Winn, executive secretary of the sale 'of hobby craft materials theThesecurity which serves as a guide for chain of retail stores which sell the recommendations made by ESE State Air Conservation CommitSince the rating assigned to a security is electronic parts, communication largely dependent on the estimates ob- tee, who viewed the demonstratained by ESE. the tccuracv cf a recom- tion. and electrical supplies. Contin- mand tion is dependent upon the accuraof the estimates obtained, tn this reThe precipitator has been in ued expansion of these stores cy spect. the Individual research analyst and and improvement. of margins, the computer are eublect to the same operation since Sept 19, oq a 'Collector' Clears Air THE FEMININE TOUCH Keeps Husband s Dream Alive of directors of me to take money for food. It thinks there is goes against the grain. I should She Inc. Utahns, have nothing to do with handjpg a great deal more to be done in out the checks for food. attracting and holding tourists Mrs. Clegg lived in Provo n in the state. for five years while John Life at Bridal Veil Falls has and Anne were in high school, had Its moments. Its a romanbut she moved back to her own tic spot and many young men home in Salt Lake a year ago. have made arrangements to also has a married daughShe have the gondola stopped midter, Molly, and living in Boston, and dinners to could so parties, propose catering way .they six grandchildren." water frozen with pipes, their girls while overlooking the coping Mrs. can wait Clegg blown fuses and the wind, and hardly flood - lighted falls. for more time to stay home meeting people from all over And Mrs. Clegg recalls when and cook a decent meal and the world. her crew worked all night get some work done on her You learn an awful lot about supplying food for the rescuers house and yard. things you never knew about and bringing down four injured She hasnt any special plans e dreamed-o- f before, she confided. But there persons in the gondolas after for the future except to keep at Bridal Veil Falls in oper- was one thing she refused to their plane crashed in the Bridal Veil going, and she how to operate the ation only two years, she felt learn above. mountains hasn't any worries about retire-men- t. she had to carry on. tramway. A trained operator is One of her favorite stories is Shes a member of Mu It was a far cry from teach- always oa duty. If I learned It, the time the Mafia moved in Phi Epsilon, music deshe' do to sorority, and She would she have recalled. I it, ing music, on me." A young man offered to would keep active in Utahns, had stopped teaching and had clared. take over the entire restaurant Inc. Its a lifetime commitmanaged the gift shop at Bridal The Skyride has two gondola " which' she gladly ment, she declared. MT Cfegg operation, Margaret to six Veil after the Skyride opened, cars, each carrying eight ' agreed to. Two weeks later he Travel? . . , unique occupation but she didnt know anything passengers on the stole a car and absconded with to Tm Sure, travel, going restaurant to of business. cable the rest the about the perched the restaurant payroll, including she declared. I want to do rife It seemed I couldnt face any- 1,228 feet above the canyon floor Mrs. Clegg loved teaching and all the raises he had promised erything except go to - the she said. But oh the sheer cliff face. Many thfc satisfaction of stuthing more, the employes. seeing moo'friends encouraged her, tilling people are afraid to ride it when dents progress. But of her presI never regretted it, Mrs. her she knew more about aerial they first see it. Where else Clegg laughed. For two weeks ent she role, says, about In They rant and rave tramways than anybody else in the world could you get a job I went to bed and slept soundly I Utah and more than any woman not going. Then someone talks EXCEPTIONAL . where if I had forgo' f you could talk to a girl think and them into it in the world. its they OPPORTUNITY Iran from Paris, a boy from : ten to buy something. limitation. General economic conditions, shakedown basis. . With that, Mrs. Clegg faced the most wonderful thing that national crisis, or newt events which are MOMMY POR INVIITMlNt and aitophthalmologlstlfrom - But there iq -- one -tishc Gases bom the plant's rout up -- to her responsibilities, evetLliappened to them, Mrs. hing 1 Dublin la one day! nit MM. Saull Mawa doesnt like about her business. . Mw Miw f,009 Yeur .broker wlH be pleased to furnish iag process carry a certain including the complications, Clegg declared. There have Mt gcr. II yang yew with additional Infaematlon regarding This en- - I tg MY gt boostcook to loved and become I on a She accidents has always the never been great amount was debts dust fine and as of securities. It problems. the above any they pass 1U-4ACT NOW gf C 1M7 The- Electronic Stock E value lar er of tourism In Utah and la on tertain, she said, And it kills she . admitted. But tramway. trouble, through. file precipitator. or 252-fo- By MAXINE MARTZ Deseret News Staff Writer Mrs. Margaret M. Clegg Is probably the only woman in the world who owns and operates an aerial tramway. She didnt plan it that way. She bad been a music teacher. But when her husband, Rue L. Clegg, died on a vacation in Mexico in 1963 after having his long board with the help of friends, herj children, John and Anne, now University of Utah students, and former employes who came back to offer their services, she kept the Skyride going. She learned all about aerial tramways, W-- t forms, writing checks, supervising employes, buying food for the restaurant, Cafi-yo- Sky-rid- -- - currently-restrict- ed JbyJieavy "Clearance sales, should contribute to fur-ther advances , in the 'coming 7 year. -- .Earnings ..for J. twelve . . -- without-worryin- g - i. 177-7- Corgeretiea i A- t- t-- : K 4. J. ml loi-C- aH |