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Show STANDARD Editorial Page January 17, 1974 1974-7- 5 TIIE UINTAII BASIN STANDARD consolidation of the Roosevelt Standard and I intah Basin Record A Second Clou Postage Paid at Roosevelt, I'tah 84066 -84066 Pl'BLISHEI) THURSDAY AT ROOSEVELT, UTAH P. O. BOX 188 .- Subscription Rates: One Year, $54)0 Two Years, $8.50 Paid in Advance EDITOR AND PUBLISHER ASSISTANT EDITOR ADVERTISING MANAGER CLAR1X D. ASHBY MRS. RAY WARDLE DENNY OSBORN CORRESPONDENTS Veda Labruni Shirley George Rosehell Ames Ida Horrocks Roosevelt Area Duchesne News Altanuint Area Arcadia Telintha Rasmussen Garda Seeley Ballard Bluebell Fort Duchesne Hanna Violet Parriette Tracy Roberts Whiterocks Arda Mansfield I ai point Monlwrl My ton Neola Rand let t Tabiona Tridell Utahn Verna Hoopes Nola Nelson Louise Fausett JoAnn Uastian Alton Rogers Connie Lee Lurna McKee Norma Robb What about profit making? There is an attitude that seems to be mushrooming throughout the United States today which expresses the feeling that profits" is a dirty word. Such terminology as and gouging" profiteering", price fixing has become so common place that the general populace has the idea that all business is rolling is profits at the expense of the consumer. And this attitude is being used as a wedge to destroy our na- tion. We recently saw a study which was conducted by the United States Chamber of Commerce, indicating that the public felt business was operating on an average profit of Those this too was felt that surveyed much profit. They felt that a more reasonable profit figure would be But during the same period of time according to government economic figures, the average profit for businesses was not nor was it even the The average profit level has refor most mained below 5 28. 10. 10. 28, years. We feel that in order to protect the basic economic structure of a nation, one which has provided the basis for the highest standard of living in the world, by far, the public should have a better knowledge of what profits are, and what they do for us. Too often a consumer will look at the price of an item in a store, and through the grapevine find that the item is marked up That's too much profit," they on an say. But the 40 mark-uitem is not profit. From that figure must come the cost of 40. p bringing the product to the store; wages necessary to store, handle, display and sell the item; overhead costs during the time the item is on display, including lights, heat, cost of space, insurance, etc., and then there is the cost of bookkeeping which must not only keep an inventory record, but check invoices, pay for the item, fill out charge slips, enter, bill and collect the funds. What is left after these expenses is the actual profit of the store. Another example of profit. When Robinson Crusoe spent years on a desert island, he started out in perfect economic balance. That is he worked for his necessities. If he stopped fishing, he stopped eating. Then one day he caught some extra fish-mo- re than he needed for his This was a profit. use. days with that Now, profit, he could afford some time to make a net to catch fish, instead of the bent pin. Now he could create even greater profits. He could catch enough fish in one hour to last for the day. The rest of his time (profits) was used to create a better living condition for himself. and he eventually became rather well situated and com- fortable. Business profits are exactly the same. Without business profit there could be no advancement, no new products, and no change in our life style. When a business makes a healthy profit, the money does not go into one mans pocket. True, big business leaders make big money, but so do big government leaders, etc. But the bulk of the profits of any business is used to create expansion, new products, new jobs, greater efficiencies and lower prices. Yes, thats true, greater pro- fits can produce lower prices! This is contrary to what those who oppose our economic system would have us believe. But only through profits, which in turn can built productivity, volume sales, better methods of production, and satisfy the needs of the consumer, can we enjoy a cost per unit which is within the reach of nearly every consumer. It has been evident time and time again that the elimination of the profit motive also eliminates all advancement, and also creates a lower standard of living because of higher prices. "Profits is not a dirty word. It is the backbone of the American way of life. If we continue to destroy profits through direct abuse, or simply by our ignorance of what it is, we may see our way of life destroyed. Is your old furniture giving you Nightmares? budget Education would receive nearly half of Slate and local school operations would be increased by 13 from $155.8 million Utah Foundation, the private tax research organization. The study shows that expenditures for education would total $336.5 million, or of all expenditures, in the 1974-749.8 budget recommendations. This would include state expenditures of $218.2 million (32.3) for public education and $118.3 million (17.5) for higher education. Other major areas of slate spending in 1974-7would be social services - $138.5 million (20.5), highways and transportation - $101.7 million (15.0), general government - $49.1 million (7.3), natural resources - $22.2 million (3.3), public safety - $17.3 million (2.6), bond retirement and interest - $5.9 million (0.9), and development services - $4.9 3 5 million (0.7). Neighbors 1973-7- State appropriations for social services would be raised from $51.2 million in 1973-7under to $60.7 million in 1974-7the Governor's budget. One of the major elements in this increase would be an into crease in the grant level from 77 of the standard needs" budget. 80 There would be some reduction in costs, however, resulting from the Federal government's taking over the adult public assistance programs. Substantial increases would be provided for corrections, health, medical assistance, and social service programs. The Foundation analysis of the Governor's budget concludes by noting that if all the revenue estimates are realized and the budget recommendations were approved, the State would end the 1974-7fiscal year with no surplus. The Legislature meeting in 1975, therefore, would not have the benefit of the substantial fund balances and surpluses by recent Legislatures. Moreover, the budget includes Federal revenue sharing funds with current revenue reonly ceipts. These are guaranteed through the 1976 calendar year under present Federal legislation. On the other hand, the budget does provide some insurance against a recession and a slowdown in state revenues by proposing a $5 million payment from current surplus into a bond sinking fund. one-tim- In addition to these expenditure totals My to $175.9 million in 1974-75- . school support would be level of The raised from 1508 per weighted pupil unit (WPU) to $545 per WPU. In addition, the budget would add $2.5 million as a categorical item for free text books in the high schools and $4.2 million for increased retirement and social serurity costs. General fund appropriations for higher education were recommended at $74.3 million in the Governor's budget. Algreater than though this sum is 13.3 it the $65.6 million authorized for 1973-74- , below the $84.2 million is nealry 12 requested by the institutions and 9.5 under the $81.3 million recommended by the State Board of Higher Education. in from curent revenue sources. Foundation analysis point out that the budget lists separately appropriations made from surplus. The budget estimates that the surplus at the end of the current fiscal year will total $28.5 million, and recommends that these funds be appropriated for various capital projects and a Ismd sinking fund. Appropriations made from the 1972-7surplus totaled $44.0 million. In addition, the Legislature proe vided from surplus funds for a $6 per person income tax credit along of the state property with a phase-ou- t tax. According to the Foundation, the income tax credit will result in a $6 million tax savings to Utah taxpayers in 1974, while the gradual elimination of the state property tax has reduced the property tax burden in Utah by $14.2 million since 1971 when the state levy was 7.2 mills. The Governor submitted two alternatives for appropriating the $28.5 million from the expected surplus. If the State divides to purchase the Deseret Livestock Company ranch property, the budget would provide from the expected surplus funds $8.5 million for this purpose, together with $1.2 million for parks and recreation, $6.5 million for the Bicentennial Commission, $1.0 million for the Provo-Jorda- n Parkway, Authority, $6.3 million for state building purposes, and $5.0 million to be placed in a bond sinking fund. On the other hand, if the State decides against purchasing the ranch property, the budget suggests mat the amounts scheduled for parks and recreation be increased to $4.0 million, with the Bicentennial Commission appropriation raised to $8.0 million, and the amount going for state building purposes increased to $10.5 million. The Foundation analysis of the Gover- - Personal income, employment, trade and construction in Utah in 1973 all increased at rates slightly above the national average. This is the report of the quarterly First Security Bank News Letter being distributed this week, according to Kenneth ti. Harris, Manager. The publication is edited by Dr. ElRoy Nelson, First Security vice prsident and economist. Total personal income for 1973 is estimated at $4,690 million for an increase of $493 million or 11.7 percent over that reported by the Department of Commerce for 1972. The estimate is based on data available through the first 11 months of the year. After correction for decreasing purchasing power of the dollar, real income had increased by 5.5 percent, inflation accounted for 6.2, according to the report. The outlook for Utah in 1974 is influenced by the uncertainties of the petroleum shortage with the impart on the state relatively less severe than that of the nation. Production in Utah's basic industries coal, copper, steel, and petroleum - will increase and the supply of major fuel sources such as electricity and natural gas should remain adequate. Real growth in personal income will probably slow in 1974, but is expected to remain positive and above the national average. The rate of increase in employment will drop below the accelerated Ktce of the past two years and construction will slow in the first half of 1974, hut is expected to improve in the latter jiart (4 the year. Average employment in Utah in 1973 was approximately 468,000, an increase of 23.000 or 5.2 percent above the 1972 k'vcl. This compares with the average increase nationally of 3.4 percent. By comparison, the average increase in 1972 in Utah had been 25,000 jobs. The labor force estimated at 506,700 was up by 3.7 percent and had crown slower than total employment with unemployment totaling 30.600 compared with 31,900 a year ago. Mineral production in Utah in 1973 was valued at approximately $600 million for an increase of $57 million over the total reported for 1972, and was approximately the same as the record establis hed in 1970. The value of five major nonferrous metals was 1364 million, but production increased from a year ago only for copper, up 1.1 percent Production of copper and steel in Utah was at capacity levels in an attempt to supply these products for the national or regional markets. Coal production in Utah for 1973 is estimated slightly in excess of 5 million tons, the highest since 1961. Output in 1974 may reach 6 million tons, principally due to the new demand for the plant in the Huntington area and new shipments of coal to the midwest, Utahs says the report Crude oil production in 1973 is estimated at 27 million barrels, an increase of f million over that of 1972. Almost all of the increase is from the Greater Altamont Field in Duchesne County, says First Security. Output of phosphate rock and or potash were at plant capacities as was that of nitrogen products used in the production of fertilizer marketed within and well beyond the immediate marketing area. Output of cement, gypsum, clays, pumice, sand and gravel and other building minerals were all above totals of a year earlier and changes in production of these materials are expected to continue in 1974. In the case of cement, the two major Utah plants are expected to ocnlinue at capacity, but some decrease is expected in shipments into the state. Retail trade in the first quarter fiscal 1974 (July. August, September) totaled $950.4 million and was 16.1 percent higher than the corresponding year earlier period. The national inrrease in retail sales over the same period was 12.9 percent. The real quantity of sales in Utah, after adjusting for inflationary effects, increase more than 8 Vi percent, but this real growth rate is expected to slow in the second half of fiscal 1974. I .nans at Federal Reserve reporting member hanks in Utah as of early December totaled $1,382 million, an increase of $49 million or 3.7 percent above a year ago. Increases occurred in all areas including commercial, mortgage and installment credit, reMirts First Security. d Free estimates Johnny Sanchez Barry Fillmore, will at the agriculture exchange office located in the post office building from 12 to 4 p.m. Tuesday, January 22 and again on Wednesday, January 23 from 9 to 4 p.m. He will then be there at the same location on the third Wednesday of each month. yXvo1' steam-generatin- to be sure?" So bring your car to us. Keep it in top shape. g ' Arvins one-hal- Ihe Old liwm lien it ull said uml done, llic only pcrMiii cu-- y to deceit c is yourself.-- ' PRECISION-BIL- T BY INTERMOUNTAIN Automotive Phone 722-222- 5 y&ackdMOit Advertisers you can score in 3f100 homes every time you place an Ad in the Uintah Basin Standard! That's more homes reached than any other newspaper or radio in the Basin. In fact iipporoximately 91) per cent of the homes in (he Koosevclt-Dnchesn- e area receive our newspaper. for EXCELLENCE PRECISION-SILT:- ; . 6 i Too You see your doctor at intervals, right? "Just HOMES THAT'S SCORING! UINTAH DABIN STANDARD HBKN A Navy Recruiter, be Check-Up- s, Free Pickup and Delivery Now serving the Uintah Basin area Phone 722-480- 2 Navy recruiter lists schedule Your Car Needs JS Y if you practice safety, where you go. 5 e and reupholstering Elite Upholstery can be great fun, on the water, or down hill run. It will even, be more $o, 5 4 Income, employment, trade, show increase in 1973 We do recovering Restyle and select new fabric for that sofa or chair in your house. following: recommendations submitted for review Ihc $676 million in total state spending from current revenues proposed by the Governor in his 1974-7budget recommendations submitted to the 1974 Budget Session of the Utah Legislature. This was brought out in an analysis prepared by 7act Sayt: nor's budget recommendations for the 1974-7fiscal year also brought out the i |