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Show Steel Price Boosts Draw White House Ire By R. Gregory Nukes .Salt i'nkr Sribunr Business Thursday Morning. March 30, 1978 administrations Associated Press Writer Hie Carter administration angrily criticized as inflationary a price increase announced Wednesday by U.S. Steel Corp., and disputed the reasons given for the increase. Despite the administrations criticism, Wbaeling-PittsburgSteel Corp. also announced it was increasing its prices by tlie same amount, $10.50 per ton. U.S. Steel is the nation's largest producer and Wheeling-Pittsburgis the ninth largest. Both corporations said they were raising prices to offset increased costs from the recent collective bargaining agreement in the coal industry. However, the administration said the steel increase was more than double what could be justified by the coal agreement. Other producers also were expected to follow U.S. St (sis lead The increase, the sicond thi year, likely will find its way quickly into prices of goods made of steel, such as autos and appliances. The price hike announcements coincided with new concern that inflation in the economy is worsening. Tlie administration also expressed disappointment that company officials gave no Indication that a price hike was imminent during a Monday meeting with government officials. That meeting here was to n discuss the Carter administrations new program. WASHINGTON h Page 2 Neel ion ( h E)DDmiL The administration, obviously concerned that other steelmakers will also quickly raise prices, urged producers to seriously consider the implications of the price increase for both the industry and for inflation generally, now running between 6 percent und 7 percent a year. Boost Revenues The U.S. Steel price increuse, effective with April 1 shipments, will boost revenues 2.2 percent, but the effect on individual products will vary according to their base price, the company said. 1 new LSI-- 1 12 expands the product line and reduces microcomputer costs as much as 40l The PDP1 1 V03 is the lowest cost full capability microcomputer development system available today. Get hands on experience on both at the Mobil Showroom. Tha LSI-1- DIGITAL GQUIPttBOT COOP. 429 Lawndale Dr. SLC 841 1 5 Ph. 1 484-88- 1 The increase, if followed by the rest of the industry, would mean a raise in steel prices of 8 percent just since the beginning of the year. U.S. Steel announced a 5.5 percent increase on some major products just last month. Such inflationary price increases seriously endanger the continuation of industry's recovery from the beating it hud been taking recently steel imports, the from competition from low-pric- NEW ISSUE In the opinion of Bond Counsel, under existing statutes and court decisions, interest on the 1978 Series A Bonds is exempt from Federal income taxes. Furthermore, in the opinion of Bond Counsel, under existing statutes the 1978 Series A Bonds and the interest payable thereon are exempt from taxation in the State of Utah, other than the Utah Inheritance Tax. $70,000,000 Utah Housing Finance Agency Single Family Mortgage Purchase Bonds, 1978 Series By Dated: April 1, 1978 Due: July 1, as shown below 1 James Mateja UP SHARES 8-- 5 Most people cither take it to a transmission shop, where they blow next k UNCHANGED months budget, or sell their car to some unsuspecting soul. The latter cry the loudest that Detroit makes imsafe cars but whisper the softest when they have the chance to pass their own troubles on to someone else. A handful of motorists, however, return to the dealership w here they bought tlx; car to have the transmission serviced because they have major medical insurance on the car that takes over 490 tion. Dollar Takes Washington Post Service The dollar took one of its worst drubbings in years in Tokyo Wednesday as the Bank of Japan Ixiwed out of the market and announced it had abandoned its its effort to support the U.S. currency. The dollar fell nearly .JVa yen during heavy trading, opening at 225 yen and closing at 221.60. Tlie unusually sharp daily decline was attributed to the absence of buying by the government bank, which had been absorbing large amounts of dollars all week in a vain attempt to turn the tide. Won't Intervene After the exchange closed Wednesday aftemxm, the bank's governor. Teiichiro Morinaga, told reporters it would no longer intervene in the market and would let supply and demand determine the value of the yen and other currencies. He acknowledged that the central intervention this banks large-scal- e week had not stopped the dollars slide. Tlie dollar has slumod to a new low every day this week, continuing a decline that has reduced its value by more than 25 percent in the past year TOKYO the sec"It's the best-kep- t ret in the world. replied Jack Yung, general manager of Ford Motor Co.'s Chicago district Parts A. Sere ice Division. Act Years Ago The offering of tne 1978 Series A Bonds is mode only by the Official Statement, copies of which may be obtained in any State from such of the undersigned as may lawfully offer these securities in such State. E. F. Hutton & Gcr. "Lmtv.l rul T r,,i! Ml C no s p,my of Gf jr J Crocker National Bank Dillon. Read & The First National Bank of Chicago Donaldson, Lufkin & Jenrette GuCuntift rr Harris T rust and Savings Bank Goldman, Sachs & Co. Kidder, Peabody & Co. Lazard Freres & Co. Lehman Brothers Kuhn Loeb Loeb Rhoades. Hornblower Merrill Lynch, Pierce, Fenner & Smith The Northern T rust Company c John Nuveen & c Co. ' it r, & HOME d Paine. Webber. Jackson & Curtis Rothschild, Unterberg, Towbin Salomon Brothers Shearson Hayden Stone Inc. Smith Barr ey, Harris Upham Savings-Loan- Thomson McKinnon Securities Inc. T racy Collins Bank and T rust Company March 29, 1978 TRUCK & Co. United California Bank White, Weld & avy Co. s th South . Hfrtz 10.7 Utah tfi. E ft Unton GivU CM 2291 m'ly LertNtr ?D0 Souls tfOOEaah tn Ogden nd Provu Th Zions First National Bank i o - f " 7"' '" Ben' dlso tTMd'j on bigrinttifH auto furniture equipment tuntf.Kl equity $ru1 unimproved property FDIC, ' UUNbtl on Chairman George A. LcMaistrc said banks arc on the problem list usually because of unsound loans, mediocre management or inside abuses. But, he said, "when there is an economic decline, banks holding large amounts of loans tend to get into financial difficulties. Continued economic improvements during should lead to a further decline in the number of problem bunks during 1978. 1977 RENTAL CENTER 342 W. 13th South Peoples helping people since 1924 San lata City. Ulan South Shite 8trf jH 480 incorporated identify banks problem list. FAST EFFICIENT SERVICE PEOPLES iJTHRIFT L. F. banks are monitored by the Federal Reserve System or the comptroller of tnc currency, although they are FDIC insured. In its annual report, the FDIC said 12 banks had serious problems in 1977. a decline from 24 at the end of 1976. This group includes banks with an estimated 50 per cent chance or more of requiring FDIC aid. Ill November 1975. the number of problem banks readied a record 385. more than double the total for 1972. Tlie FDIC diXs not Pickups, stakes, vans, diesels, drive units, Rent hour, day, week or longer SPECIALISTS LOAN EQUITY 1 TRUCKS Monthly payment based on a DO 000 loin tor M months, at an annual percentage rate of 0 5 Total payment $ It), 445 .V Co. 500-stoc- k liRENT SI 0,000 on your home equity" for only $195.78 a. month at Peoples First Thrift', and you can borrow it for any purpose Cnll uo for the money you need large or we won t keep you waiting small ' . state-chartere- d tuu can hnrrow i... - surance Corp- said Wednesday that 3ti8 hanks were on its "problem n 1977. a decline of list 11 from the year before. The hanking agency supervises 8,500 banks, hut some of the problem $10,000 U C1. WASHINGTON (API -Tlie Federal Deposit In- gets you Co. Inc. The market showed little response either way to U.S. Steels announcement of a price increase on most steel mill products of $10.50 per net ton. whic h it said was prompted by the cost of the recent coal strike settlement. U S Steel shares were unchanged a 257 as of the 4 p.m. Industrials Rise Standard & Poors index of 400 industrials rose .11 to 98.49 on the day, and SAP's composite index was up .14 at 89.64. Airco led the active list, up 1 Vs at 14'h. The investment banking firm of Ii.ard Freres A Co. said it bought two blocks of Airco stock totaling 664,000 shares at that price, acting for BOC International Ltd. Airco had reported earlier in the day that a federal judge had refused its request that BOC, which previously owned 5 8 million Airco shares, be barred from increasing those holdings until the two companies could resolve a legal dispute. Hopes for Gain Ohio Manufacturing picked Murray Tlie company, a producer up S to 22 of bicycles and power mowers, said Tuesday it hoped to post an earnings gain of about 29 percent for the first quarter. 368 Bunks on Problem List $195.78 a month Bache Halsey Stuart Snields Bank of America NT &SA Bankers Trust Company icori'orv.v-A. G. Becker Bear, Stearns & Co. Blyth Eastman Dillon & Co. The Chase Manhattan Bank. N. A. Citibank. N. A. Chemical Bank Continental Bank like Sears. Wards, RCA, und Whirlpool introduced service contracts years ago," he noted. "In 1H77. for example, RCA sold 1 million service contracts and had a 70 percent renewal rate. Sears sold 5 million and had a 66 percent renewal rate. "With autos we haven't been creating the market. Tlie market is there, we just haven't tapjx'd it, Yung said. Company Inc. The First Boston Corporation Dean Witter Reynolds Inc. Burrows, Smith and Company The Labor Department reported Tuesday that the consumer price index rose at a 7.2 percent annual rate in The increase wasnt reFebruarygarded as good news, analysts said, but it was smaller than many Wall Streeters had feared it might be. Beating on Tokyo Marl protec- Companies They also noted that investors appeared to be generally relieved over the iatest government statistics on infla- Associated Press Chart millions after-warrant- y Cautious Buying Analysts said the market seemed to have been ripe for some cautious decline of buying after a week-lon- g more than 20 points in the Dow Jones industrial average through Mondays 1,881 session. 197S. considering to 50.07. Volume on the Big Board stepped up to 25.45 million shares from 21.60 million Tuesday. 508 after-warrant- Yet, . DOWN The major medical is the extended service coy ntract. coverage on the engine and-o- r powertrain. About $100 nilllon in such coverage was written last year and the industry expects $200 million in business in umpteen .11 ISSUES TRADED tion? 1 25,450,000 Ages? rs The 978 Series A Bonds are offered when, as and if issued and received by the Underwriters, subject to the approval of legality by Messrs. Hawkins, Delafield & Wood, New York, New York, Bond Counsel, and the approval of certain legal matters for the Underwriters by Messrs. Hawkins. Delafield & Wood. It is expected that definitive 1978 Series A Bonds will be available for delivery in New York, New York, on or about April 27, 1978. than-expecte- d VOLUME 883 Currier recorded its second straight gain Wednesday. drawing continued support from news of a smaller rise in consumer prices last month. 'Hie Dow Jones average of 30 industrials rose 2.94 to 761.78 on the heels of a 5. advance Tuesday. Gainers outnumbered losers by better than an spread on the New York Stock Exchange, and the NYSE's index added comixisite common-stoc- March 29, 1978 ears on the road, $200 million is a fraction of the business the industry could Ik- - enjoying. Many believe $1 billion would be more realistic. Why dont more take advantage The 1 978 Series A Bonds will be subject to redemption prior to maturity as more fully described in the Official Statement. Chet AP Business Writer The stock market VOKK NEW New York Stock Exchange f (Accrued interest to be added) The administration statement said that if the steel industry intends to cooperate with its program to keep wage and price increases below their levels of the past two years, then the latest increase would have to be the last this year. The meeting attended by U.S. Steed executives here Monday was called to explain this program, which is aimed at trimming 0.5 percent from the nation's inflation rate annually. The Market In Brief Chicago Tribune Writer What do you do after 12 months or 12,000 miles when your transmission starts humming Rock of of aettd." B been. Interest is payable semiannually on January 1 and July in each year, commencing January 1, 1979. The 1978 Series A Bonds will be issued as coupon bonds in the denomination of $5,000 each, registrable as to principal only, and as fully registered bonds in denominations of $5,000 each or any authorized multiple thereof. Coupon 1 978 Series A Bonds, unless registered as to principal, and interest thereon are payable, at the option of the holder, at the corporate trust office of First Security Bank of Utah, N.A., Salt Lake City, Utah, the T rustee, or at the principal office of Chemical Bank, New York, New York, the Paying Agent. Coupon 1 978 Series A Bonds, registered as to principal, and registered 1 978 Series A Bonds are payable at the corporate trust office of First Security Bank of Utah, N.A., Salt Lake City, Utah, the Trustee. U.S. Steel. Some of U.S. Steels competitors were caught bj surprise by the timing of the announcement. "I don't think anyone was surprised by the increase." said an industry expert, who asked not to he identified. "The surprise was how quickly they Stock Market Records Extended Warranty Aids Car Om ners leaves off. Ir Better Shape After paying a $25 or $50 deductible they are on tlie road again and the budget is in far better shape than it could have (Federally Insured or Guaranteed Mortgage Loans) first-yea- r said. The council said its statement was approved by Charles L. Schulte, chairman of the Presidents Council of Economic Advisers, which gave the criticism greater weight than if the council had simply issued it on its own. Schultze is the top economic adviser to Carter, who was out of the country when the price increase was announced. U.S. Steel, the nation's largest steel producer, said its increase was necessary to offset higher production costs resulting from the new miners contract in the coal industry. The increase, which would take affect Saturday, would apply to such products as hot and cold rolled steel sheets, widely used in the auto and appliance industries, and for structural shapes, plates, tin plate and tubing. The cost of the new (coal) contract began immediately ... when the miners returned to work. the company said, noting that miners who worked Monday got a $100 bonus. Raise Mining Cost Coal operators, including U.S. Steel, which mines 70 percent of its own coal, have estimated (he where the warranty A costs of the new coal contract will raise 10 percent. mining expenses by about council argued: "The magBut the presidential nitude of the price increase cannot be fully explained by the higher cost of coal... The council estimated the coal agreement will increase steel production costs about $4 a ton, spread life of the contract, less than hall over the three-yea- r the $10.50 per ton immediate increase announced by Council on Wage and Price Stability 486-202- 8 |
