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Show 2 II -- 1 he Salt Lake Tribune. Thursday. August 24. 1972 - t -- X-r- " Tb Mar 'V - s j-- r. Si Auto Price Rollback Creates Conflicts alt lab ffilmn Itetess By Leonard Silk New York Times Writer NEW YORK The decision of the White House to force a rollback of the on prices ?I0 automobiles has produced bitterness in Detroit, conflicting stories in the press and confusion in the nation Why did the President's Cost of Living Council elbow the Price Commission nut of the way and put extraordinary-pressuron the four major auto producers? Did the Price Commission's own rules and standards prevent it from to stopping the consumers of higher costs to meet federal required standards for safety and on the equipment new cars? And, now that the Price Commission is back in the act, what grounds does it have for denying auto producers a price increase? There can be no doubt that the White House sought to cancel all price increases on the 1973 cars, rather than simply scale down the increases sought by the auto companies. Last Friday, after General Motors had announced that it was reducing its requested price increase from $9(1 to $7)9 per car, spokesmen for Donald Rumsfeld and the Cost of Living Council made it clear that the administration was still not satisfied. CONTINENTAL BANK BLDG. PHONE 7 Everybody Buyi Classified Ads Oh. youll find the letter before quitting time, because your quitting time is AFTER you find it." Walchers Purchase or Lease Watching weight watchers watch their weight will be the order of the day Sunday afternoon as Weight Watchers of Salt Lake-- City, Inc., observes a third anniversary at Hotel Utahs Lafayette ballroom. Three hundred staff members and guests will meet at 4 p.m. At 5 they will dine from the Weight Watchers menu. Die Trentman, Utah and southern Idaho franchise organizer, said 43 men and women have lost 100 pounds or more each during the last three 1972 CONTINENTAL MARK IV 262-640- 1 BOUNTIFUL MOTOR SALES INC. ORDER YOUR 1973 LINCOLN NOW FOR SEPTEMBER DELIVERY years. USED 1969 1973 LEASE A For 1 90 COIN OPERATED "We praise Geneial Motors far as it went," said an administration aide, "and we hope that Ford is listening and will take us further down the road. We prefer a zero increase." FURNISHED Also lease or buy any one of our large selection of Continentals & Mark III. Now in Stock per mo. expecl-e- d WASHERS & DRYERS 4,395 as Low as are e SPEED QUEEN MARK III Loaded Nice Car MARK IV Twenty-fiv- at the party. EXAMPLE EXAMPLE pass-throug- Weight Watch Dynamic Savings Call Dick McDonald ail W for going as FE2EG FOR APARTMENTS, PARKS. TRAILER MOTELS, INSTITUTIONS Phone or See Steve Argyle -- DIAL BOUNTIFUL MOTOR SALES INC. 2773 Swuth Main, Bountiful 484-244- Tactics I sed 4 COIN METER WASHER 1 The administration was hoping to achieve this result by a SERVICE 1450 South West Temple Salt Lake City, Utah Section II combination of "friendly persuasion" and competitive pressures. Chrysler and American Motors had refused to reduce their proposed price increases related to the new consumer-protectioequipment before General Motors made its comoffer. However, promise American Motors had indicated that it could not make an increase stick, if the bigger producers came down in price. Ford, the no. 2 auto producer. had originally asked the Cost of Living Council for an extension of time until Monday of this week before making its response to the White House. President Nixon was following President John F. Kennedys basic strategy, and had hoped the Ford Motor Co. would play the role that Inland Steel had played during the April. 19G2 confrontation between the Kennedy administration and the steel industry. It was Inland's refusal to go along with the higher prices U.S. posted by Bethlehem, Steel and most other producers that forced the steel price rollback. The Kennedy administration that the steel industry had a special obligation not to raise its prices because the White House had exerted strong pressure in its behalf upon the steelworkers union to moderate its wage demands. in 1962 had felt Similarly, the Nixon admin- istration felt in 1972 that the auto industry owed it special U.S. Holds GM To Safety Rule Learn a skill. Stay in snape. And live a little. The Army's 9th Division is now the Northwest's own Division. Fort Lewis, Washington is its new home. And they're looking for good men to continue the "Old Reliables" proud tradition. CINCINNATI, OHIO (AP) General Motors Corp. announced Wednesday that the federal government had denied it a reprieve from safety standards applicable to 1973 model cars'. The ruling by the National Highway Traffic Safety AdGM said, will ministration. assure the loss of 39.000 1972 model cars the company had hoped to build at its strike-- . bound Norwood. Ohio, plant. Livestock starting salary of s288 a month. With promotions and raises as move you up. With lots of additional free benefits and 30 days paid vacation a year. At a and working in the great Northwest. Where outdoor recreational activities are second to none the year 'round. Living you qualify, we'll put it in writing and guarantee you duty with the 9th for 16 months before you sign up. Talk it over with your nearest local Army Representative. Loans T production needs feedstock, equiDment. Leis talk' Call Stanley Peters, Mgr. Utah Livestock PCA S.L.C. (801) 1973-CA- If Tbdayls Army wants to join you. for your fOR LEAS RS NOW! 1972 Imperial A d V AindOWS nenor ste'e; sej' door OvS u' swe pjryi I. SFC Walter D O'Hara l1449 p Salt Lake City .f. 524-402640- I7 a'AO REJE&1EASING 27 'Y TIE - Thutsday Morning - August cooperation because autos had been the particular beneficiary of Nixon's new economic policy launched in August. 1971 auto eliminated This had excise taxes, given tax breaks on capital investment and dis- the refute to ministration Democratic accusation that it was the h'.idmaiden of big business. And it would help to refute labor's complaint that restraints on prices were weaker than those on wages. must be deducted from the of the consumer- cost Thi equipment. protection commission is collecting evidence on that point now. of for- But the Ford Motor Co. refused to fulfill the administration' hopes. Instead, last SatMourday it followed General tors' lead and reduced its original bid for a $92 price increase to $59, the same as the Price Commission's couraged importation eign cars. Industry Projects Profit calculations by Busi- ness Week showed General 1972 f Motors with 17 of billion, $1,374 up profits percent from the first half of 1971: Ford, with profits of $535.2 million for the first half, up 46 percent from last year: Chrysler with profits of $104.2 million, up 147 percent from the first half of 1971. f American Motors 1972 profits, according to Busi- first-hal- first-hal- Bebind the News ness Week, are not comparable with those of the first half of 1971, because of an extraordinary capital gain of $5.3 million: American's however, second quarter profits of $7.8 million excluding the capiwere 98 percent tal gain above the same quarter of last year. The Nixon administration thought a full price rollback would be extremely useful, both economically and politically. It would show how determined the President was to stop inflation in its tracks, it would provide a good example both for other industries and for labor. It would help the ad- - n.Y. Market Average Drops 3.16 increases? The standards under which the commission operates are but extremely complicated, they boil down to two basic principles. The first is that higher costs can only be passed on to consumers if they represent an improvement in the quality of the product or if they cannot be offset by increases in productivity or other economies. The new equipment required to meet federal emission and safety standards represents an improvement in the quality of 1973 cars. The Bureau of Labor Statistics has placed a retail value of $123. SO and a wholesale value of $95 40 on the safety and antipollution a larger inimprovements, crease than the auto producers are seeking to recover. However, is it then-profi- e 1971. Thus, even if an auto company can demonstrate that certain of its costs have increased. this would provide no basis for & price increase, if profit margins had been widened on domestically produced cars since the freeze. The rule takes precthe over edence rule. If the Price Commission in its review of data for the four producers were to find that some or all of them had wider margins than in the best two of three or were earlier fiscal years wider have to margins likely ' it in the current fiscal year could order price cuts, despite the increase in costs required by federal safety and antipn-llutiostandards. Such a price rollback would be no novelty for the Price , Commission. n profit-margi- profit-margi- n n LUMBER At Low, Low Prices! not cannot be offset by improvements in productivity or other if any savings. Such savings Evening DEN IN STATES SILVER COINS UNITED ON NO . . . For The Builder SALT LAKE INVES1MENT CALL MARGIN Having Fantastic Leverage PRICE FIX investment . . but time is geta long-terting short. For more information, call collect is $1,000 Face Bags or write American $1,470 Coin Exchange Co mDO'vy An 4640 Hollywood Blvd., Los Angeles 90027 Turnover on the big board to 18.67 million expanded shares from 18.56 million the day before. A total of 141 blocks of 10.000 shares or more changed hands against a revised 165 blocks Tuesday. the American Meanwhile, Stock Exchange's index of stock prices was off 0.05 at 26.S6. The N YSDAQ index on the market was down .73 at 135.32 Copyright Com- are not permitted, panies t under its rules, to widen what beyond margins they were, as measured by a weighted average of the best two of their three fiscal years of the prior to the launching freeze on Aug. 15. wage-pric- that these higher costs - ( standard. n profit-margi- Council Satisfied Even so, the Cost of Living Council considers that it has gained part of its objective and is satisfied to let the1 issue go back to the Price Commission. Does the Price Commission have a basis in its own standards for rejecting or scaling down the proposed auto price New York Times Service The stock NEW YORK market Wednesday finished with advances outnumbering declines by a modest margin although leading market averages finished lower. The Dow Jones Industrial Average closed off 3.16 at 970.35. Its low for the session was reached at 11:30 am. when it was down 4.21. The New York Stock Exchange composite index finished ofl .07 at 61.78. second Principle basic principle is second The ' G.M. $2 Aug. (213) 23, 10 A. Classified Ads Go to Work to Make Money ) for You Woman of 72 .Named byr Business Unit XiC Page 2 24. 1972 Theres more money sitting idle around your home than you may ever imagine. dont necessarily mean cash. mean all the things you no longer use that can be turned into cash by selling them with a classified r Helen C. Andrews, an veteran of Grand Central. Inc., has been named "woman of the vear" eight-yea- I I ad. Think of the furniture, tools, sports equipment, cameras, farm equipment, garden equipment, auto accessories you have that are gathering dust. Theyre cash if you sell them. announces the A FINAL DAYS DIAL 5 and tell ME what you have for sale. I'll help you write your ad. Say, "Charge it," thats all. Ill be waiting for you, call anytime between 8 a.m. and 5 p.m. Mrs. Andrews d rews will attend the group's national convention in Miami Beach in October. Before She joined the retailing firm as an accountant. She has worked in bookkeeping and payroll and now is a computer operator. and She her husband, Edward, have two children. Thev live at East. PRICES GO UP 521-353- in May, 1964. Enroll now and reap the rewards of lower costs LOW COST CLASSIFIED ADS SELL and SELL and SELL!!! DIAL 521-35- 35 4340-290- and full benefits. deserve to be a part of the Intermountain West's most complete & exclusive health and recreational club. You Coni So Summing Forts. Tic. Wtartpa. peace a um Dwarf On Pool VMi Hhvnwci I stint ! Chilly the 5 M Hrt Chart. SciMfe Irt) PrartUrtig Iwn I mu Chart 1 Figon Cartmnag ft n n a PrwAua Sum Mi rIIi "s M last Lwng r U St vwimai Martbafl PMte Ian togiai Tract teaMDatl PuSiag laMy Saw Taaan 'toMCOuUMr) r,cit Team SurtmuM rt Haiaulioa UD4 4300 STAKES, VANS, DIESELS, AWHEEL DRIVE UNITS FACILITIES LMIFR fOXSTIUCTIOA OV AVAILABLE: FACILITIES PICKUPS, ku n Jibuti O H SOUTH SECOND WEST Cnta Pact ten Shoe ittra Mm 449 South Main Phone 521 4100 Hertz -- . NSr |