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Show Today in Business Salt i'iikr eribttnr Average Home Now 863.000 Purchases Soar Costs, Housing Why i By John Willmann velop less " Washington Post writer ; WASHINGTON Three years ago the average price of new houses in this country- was $42,600. Last May that figure had climbed to $63,000. a 50 percent increase that is much higher than the average rate of inflation across the nation. Americans still are buy ing houses at and paying record record levels of the same people some Yet, prices. w ho say that housing prices are too high must be out there in the marketplace, often selling something more expensive. Reasons For Costs Regardless of statistics, everyone knows that all housing prices are too high. But is anyone or any agency or any group doing anything about it? A broadly constituted task force on housing costs, implemented by the Department of Housing and Urban Development, released a 106 page report in May that described most of the reasons for high housing costs. The familiar culprits were listed, overregulation, exorbitant land prices and constantly rising costs of labor, materials and the money needed to build houses. Many builders have been doing that but their efforts have been overwhelmed by the increasing size of houses and the amenities put into them. By t - I- Four years ago. when the housing market was in a depressed state, some builders came up with smaller, basic, houses They sold slowly. And nationally, the reaction was the same. Most of the people who were buying wanted something bigger, better equipped and more expensive. For insttance, volume builder David Fox chums out thousands of relatively houses in Texas every year. But Fox has also learned that almost all of his young, buyers want fireplaces. And air conditioning Garages, large closets, cathedral ceilings, extra bathrooms, foyers and appliances are also m demand. Many of those items were not standard in houses built in the 1950s and early 1960s, when housing prices were fairlv stable and financing costs (to both the builder and the buyer! were half of w h3t they are now Effort of the National leaders Recently, Association of Home Builders mounted a second effort. (The first was aborted because of builder apathy. NAHB had asked members to hold the line on price increases, except for no-fri- ll n 1 cost pass-throug- increases, for six months.) Now' organized home builders are asked to hold down 1978 housing price increases to less than the annual Bank-Holdin- anti-mflatio- n e Writer Chicago The city that suffered acute SEATTLE economic distress from Boeing's loss of jobs in the early 1970s today notes with only restrained approval that the manufacturing giant has just won the largest airplane-buildincontract m history. Many people in Seattle think the city is now g Boeing-proof- . That means the fortunes of the Boeing Co. no longer decide the fate of the citys merchants and industries. homebuilders and aircraft-relate- d We wanted it that way, says Peter Bush, public affairs spokesman for Boeing. The number of people in tie work force in Seattle has climbed so that we only represent 9 percent ot the total. At one time, we had percent of the work force. Adds Seattle Times real estate editor Polly Lane, We're in such a boom anyway that unemployment is 15-1- 6 board regards as acceptable conduct for the management of a bank holding comsaid a ruling published in the pany, Federal Reserve Bulletin. Khashoggi had applied to set up a bank holding company based on Security Bancorp of Walnut Creek, Calif. Khashoggi owns 97 percent of the $159 million California bank. Under California law, a bank holding company can diversify into some other types of lending that banks are not permitted to undertake. Formation of any bank holding company Bad News I)ehl Ceiling Reached requires the approval of the Federal Reserve Board, which routinely asks other federal agencies to report on applicants. The SEC and the Justice Department are investigating Khashoggi's alleged involvement in hundreds of millions of possibly illegal commissions, payoffs and kickbacks made by Lockheed Ccrp., Northrop Corp., Raytheon, Ashland Oil and other American companies to obtain business in the Middle East. Khashoggi has been identified by several companies and federal investigators as an alleged conduit and recipient of the payments, which were not properly reported in the firms accounting. Federal investigators have tried repeatedly to question Khashoggi about the payments, but have no means of forcing him to testify. Savings Bond Sales Stopped The Treasury Tuesday suspended savings bond sales for only the third time in history because inflationa and a decade of federal deficits have pushed the US. above debt of three-quarte- a rs trillion dollars. Hey, Hon! Guess who was given greater responsibility, longer hours and bigger headaches without commensurate pay today! A department spokeswoman said the suspension was imposed be- - Merrill Lynch invites you to find out: How to shop for higher interest rates cause the government has reached its debt limit of $752 billion. Legislation to raise the ceiling to $798 billion has passed the House and awaits approval of the Senate. The department sent notices to 40,000 banks, corporations and other issuing agents to stop new sales of bonds immediately. An estimated 10 million people buy bonds on automatic deduction plans while another 6 million buy bonds directly from banks and other issuers each year. Tne suspension will not affect redemption of the $80 billion in bonds cur The MOST for ...on J 1 To find out how v ou can get nigh returns like these, iust mail the coupon Merrill Tenth's Free pr call-f- or Bond and Fixed Income Information Kit. It includes- T. ... ,r,n,ly important areas. fStt h. ir Mi n m n ur o unit i money on deposit tor one year at th.s South St1 u h'-- YWde srnJ me i gt' ur free 2 i a B rtiurn nJ did n J rr mnc ,x.J matmn Kit whiif Inf I M so I'M rw.. pleasr g vf '.jru jr, i j .1 ffssnjht I9l Hrrf.fl vmh fmrwr 4 one-fourt- . I Firm Ups Net Income Federal Resources Corp. had a 300 percent increase in net income of $1,243,900, or 15 cents a share, during the fiscal year endmg April 30, according to the annual report. That compares with $389,600, or five cents a share, the previous year. Chairman and president Nels W. Stalheim said the upward trend should continue as the company translates valuable assets into income. Major income came from the 51 percent interest in the Madawaska Mines Ltd. uranium mining and milling operation at Bancroft, Canada. He said also that its Federal-AmericaPartners' Wyoming uranium mining operation, in which Federal has a 60 percent interest will add to future income. The project resumes large-scal- e production this fall. Mr. Stalheim said all of the companys uranium reserves in the Canadian and Wyoming operations contracts not subject are committed under long-terto external factors. Prices are set annually and are tied to world market value conditions. ... buy n stock more National to add to the 790,700 shares (9.2 8.5 million total) it already owns. Replies to Criticism That came in reply to a Civil Aeronautics Board staff member's criticism of Texas Internationals procedure as possibly illegal. The Texas airline cannot acquire control of National without CAB approval. Routes flown by Texas International include a link between Salt Lake City and Houston via immediately percent of the peanut fare City and Denver. Sulfur Dioxide Level Higher BUTTE, Mont. (AP) Sulfur dioxide levels near ..Vcx On smelter are higher and more frequent than before the company installed $53 million in pollution-control equipment, according to the Montana Air Quality Bureau. Statistics compiled by bureau monitor Dave Maaghan show the smel- - flights between Salt Lake off-pea- k Thursdays rate from v PFS. NTIAL fFIXHAi Savings Certificate 7.612 We have 2 positions open tor 2 enthusiastic and qualified persons Applicants should have a minimum of 5 years' experience either as purchaser or estimating superintendent. Background in wood frame residential construction on a large scale (Effective 83 through Were North America's second largest homebuilder and provide excellent opportunity for personal growth Outstanding fnnge benefits Must be willing to relocate to larry Strachota. 8z9) This is the Nations j highest interest rate on insured savings. basis esse ntial short-ter- m savings Highest rate paid on short-terinsured by FSLIC and FDIC. Six month term, $10,000 minimum deposit. Interest paid on certificates only when held to maturity. 1 L KETURN wiikm 3 moult on on invotlmonl that ho nover had a down vd turn in bettor than 20 year i of history Call for Appointment 531-68- i v ; ,, S v I ! - r Mm.. An opportunity employer , 115 ?ZB6 Serri-- k MFG. PLANTS caffi CAPITOL e Soctr Main St'eet 10 East 33ifl South 3G0C South ZZX Wns' 0 South Highland Silt lams C'y Utah Phons 4BZ 4VZ tot ?00 !3uth available pollution-contro- l equipment, N- VENEZUELACOMPANY Seeking Product Representation in Ventzuelj South hinorica t Fot Information: BUitDiUG? WAREHOUSE fsTjc' Personal Financial tirrog from Tnniinrv through April. Readings from one station two miles from the smelter were two and three times as high as readings before the company installed an electric furnace, acid treatment facilities and the best MQ USSD A Prudential federal Savings An equal m f 05 OFFICE SPACE c ter violated federal air quality standards at least Maughan said. He speculated the new equipment cools gases leaving the smelter's exhaust stack, thus making them less buoyant and harder to disperse bAVINOb MoneyMarket I j. j'hirvnn Hod I' S It n fU Vrct 4i' I jt H N I norfM. A' triur. !'. r 4111 Uil VvriJ ' Oil and gas leases covering 174.246 acres in southwestern Utahs Beaver, Iron, Millard and Piute counties have been filed with the U.S. Bureau of Land Management in Salt Lake City, according to Carlton Stowe, minerals specialist, Utah Department of Natural Resources. Mr. Stowe said the Anschutz Corp., Denver, has applied for leases on 130,262 acres in Beaver, Iron and Piute counties covering more than 50 miles. The area being leased is 12 miles north of Cedar City, northw'est of the Parowan Gap area, and northeast of Miners ville. Anschutz also has leased acreage south of Cove Fort in the western Tushar Mountains vicinity. Hal McVey, Lakewood, Colo., has applied for oil and gas leases totaling 43,984 acres about 15 miles northwest of Delta in Millard County's Drum Mountains. His leases extend to the White Valley region located between the Confusion Range and House Ranges 45 miles west of Delta. Mr. Stowe said that well completions in the state are ahead of the comparable seven-mont- h period last year. He said 118 wells have been completed in 1978, compared to 72 last year. Active rotary rig drilling is maintaining its average ng count of 30 to 33 each week, according to the Hughes Tool Co. census. 11 Merrill Lynch Pierce renner B Smith Inc. . Oil, Gas Leases Filed For 4 Utah Counties SU cost analyst, Nu'West Development Corporation, 22.55 Last County Line Road, Littlenot ton, Colorado 80122 Telephone calls w be returned M 727-20- DC8-262- Newspapers National .Airlines management, faced with being swallowed up by a brash Texas h airline its size, indicated Tuesday it u'ill fight any takeover attempt. After an unprecedented emergency meeting Nationals board of directors cautioned shareholders especially small shareholders not to heed the siren song of Texas International Airlines, a regional airline that wants to control National by buying $25 million more in shares. It was the first public sign that National would resist a takeover that could result in a merger, change of headquarters, management firings, and some uncertainty for National s 7,600 employes. Urged to Weigh Aspects Urging shareholders to carefully weigh the complex legal and business issues aspects of Texas Internationals plans, National lambasted the Texas company for creating a situation that or could disrupt the ongoing management harm National shareholders. Meanwhile in Tallahassee, Fla., a Leon County Circuit Court judge refused to issue a temporary order stopping Texas International from acquiring more National stock. Texas International announced it would not FEDERAL Ileise seod resume siSESs FHi'M Mcrr.il I.vnch h hen FSDC p non-sto- 'a' to Denver Hi non-sto- ox: 7.908 Lake City Lake City Lake City. David L. Wilkinson, special Utah counsel to the Utah Air Travel Commission, noted that Braniff would be the first truly international carrier to Salt Lake City. CuunectiuDS to LuBuod Braniff has connections to London, Mexico City, Panama City and 12 South American cities. This is the second carrier, not now serving Salt Lake City, which has applied for Salt Lake authority. Only Frontier Airlines now serves Salt Lake City Worth on a daily basis via Denver. from Dallas-For- t service four days weekly. It provides Frontier also flies to St. Louis via Denver. p Eastern has proposed two flights daily w ith through plane ser ice to Atlanta. Previous Application has previously applied for Airlines American non-stoplane authority to St. Louis with service to Boston, Indianapolis and Columbus, Ohio. Braniff, with sales of more than $800 million in calendar 1977, is the 14th largest carrier in the world. It has a fleet of 100 jets, ranging from in the flying to Europe and Hawaii, and s continental United States and on the South American runs. MIAMI top-flig- I 1 i 7.61 2 Denver-Sal- t Worth, and Salt Lake City ' Airline Resists Takeover Try Purchaser Kit " am intcrcvud in hn mjNMv timing for a high level C YES, Free call-f- or 7.362 .250 Dallas-For- t Miami-Denver-Sa- Actually, the 767 will not be built in Seattle, but in Everett. Wash., about 30 miles north. Everett was hit even harder than Seattle when the bottom dropped out of Boeings business. Company employment within that city dipped from about 25,000 to 5,000. The Everett plant also produces the jumbo 747, which remains Boeings No. 1 production plane. The 747 is a lot bigger plane than the 767, and it takes more people, Bush said. This year, we are averaging about 3.5 completed 747s a month, but by the end of next year, well double that production to 7 a month. Estimator and But Page I potential." mUUt There are lots of investment firms. theres only one Merrill Lynch. outstanding opportunities. it'W j lkt City Including: Corporate bonds. Preferred I I v SS 2. Fixed Income Selector. 8 pages Concise report. Pinpoints or V DESERET how they are rated for safety and quality Mail today Bill, HOME OFFICE Ffce Bsnd and Fixed Inc emu Infiyrynalum Kit Yours fo r ike asking money Money Mkt. Certificate Our is paid omy held to matjrity prisingly wide variety of government securities. And much more. Compares their advantages and limitations. Shows 70 Treasury 'Interest Tax-exem- Tampa, Atlanta 727-70- necessarily Average auction yield as of Aug 3 DFS pays you ' more If The Bond Book. 38 pages. Takes the mystery out of bonds. Describes the many types available. Including- Cormunicipals. A surporates. .over your Gives you an annual yield of 1. - spokeswoman said. Series E bonds usually are bought in increments of $18.75 for which the investor receives $25 at maturity. Series H bonds are sold in minimum denominations of $500. A debt management spokesman for the department said the suspension will not affect U.S. auctions of bills and notes this week. Money Market Certificates!!' U S. stocks. Convertible securities. municipal bonds. Attractive money market instruments. Includes and more. issues returning up to 9 Bonds and other fixed income investments are now paying interest rates of 8.5 to 9 anu more. rently outstanding, the department said. One of every three American households has savings bonds, with an estimated $8.3 billion to be sold this year. Interest payments on Series E and H bonds also will continue, the p e down to 5.3 percent, and the average price of a new home is over $60,000. After the near demise of Boeing, Seattle made a big effort to diversify so the city would never be caught that way again. Boeing has been rebuilding its employment slowly because they dont want to do it to us again either. As a matter of fact, Boeing may never again approach the 101,000 people it employed in the Puget Sound area 10 years ago because the company says it has higher productivity now and doesn't need that many workers. From the 101,000 high, Boeing dropped as low as 37,000 employes. Now the company is back to 60,000, w ith the probability that it will add another 18,000 by 1983. Boeing officials are thrilled by the UniLd Airlines order of 30 of the 767 twin jets valued at $3.2 billion, 0 and 30 trijets that will cost $400 million. Earlier this year, the company also obtained a $900 million order from Singapore Airlines. For aircraft such as the 767, which is still in development stages. Bush predicts a potential market of 1,500 planes over the lifetime of the craft. Of coure, we have strong competition so we wont get all of that number, he said. But that is its Knight-Ridde- Department August 2, 1978 Nection It ltil non-sto- d Sun-Tim- Mr. Khashoggis unwillingness thus far tional Morning, Recently, the Senate Budget Commit-tohe'd hearings on the high costs of dousing. Chairman Edmund Muskie, D Maine, noted that housing-relatecosts are a leading component of consumer prices, accounting for 4.7 9 percent of the total consumer price index " By Jerry C. Davis to cooperate with U.S. law enforcement authorities is not in keeping with w hat the WASHINGTON ednesday of ar Press Interna- - WASHINGTON Praiuff Airways. Dallas, and the Utah Air Travel Commission filed with the Aeronautics Board Monday for authority for Braniff to fly to Salt Lake City from Denver and Worth. from Dallas-For- t flights They proposed four through-plan- Seattle Now 4Boeing-ProSay Merchants, Builders Salt developing the Lake International Center west of Salt Lake International Airport. United Special to The Tribune houses a maximum profit. Residential building is a seat-o- f the pants, entrepreneurial. CvHira) hiumAcc That move was haded bv Rotrt Strauss, President Carter s man, as the kind of step fnat will bring inflation under control " But can NAHB induce or cajole its members, some of whom arc jut now recovering from the housing doldrums and bankruptcies of 1974. into less than what they think is the most they can pot for their houses1 Washington Post Writer The Federal Reserve Board has rejected an attempt by Saudi Arabian financier Adman M. Khashoggi to form a bank holding company, citing Khashoggi s refusal to cooperate with investigations of questionable overseas payments by American companies. Khashoggis attempt to diversify his banking operations effectively was blocked by the Securities and Exchange Commission and the Justice Department, which have been trying for more than two years to gpt the Saudi millionaire to submit to questioning. Mr. Khashoggi is the sole stockholder of the Salt Lake A.K. Utah Properties Inc., a Utah corporation, which owns and is Good News their price 'Business to sell but high enough to make Proposal Rejected g Jerry Knight Builders But hnuur.g prices average in 1976-77- . rose 12 percent annually m that period low-co- WASHINGTON - , Market Housing Housing magazine, a trade publication for builders, commented editorially: There's heavy emphasis on the governments role in seeking less costly ways to build. Government has never contributed to the reduction of construction costs . . . Thats the job of the the builder, the private sector architect, the engineer and the building product manufacturer who, faced with the realities of the marketplace, de Saudis new ways to build better Ur Utah Proposes Braniff Flights IKWSTKIii, I1C. Div 09 - lease or tell LAS VEGAS JUNKETS CALL ST |