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Show Killlnrlul 1. Thurwliiy, Jnnuiiry hiijr lf70 UINTAH BASIN STANDARD 6 of Hu A roiiMiliiliilluii KiiiimVI11 and Ulntuli Basin Record Nlumluril Association Second ri (liifcN Iniduge paid at Itl.lSIIKD THURSDAY AT ROOSEVELT, UTAH SuliM'riitlim HuIi'h: One 1 Vpr, Two Ycur, fl.lMl Founded 7005 Utah ItooHcvelt, 840(MJ (). ItOX 1 - 88 84 (Mid Paid In Advance (7.(10 KDITOK AM) PUBLISHER ASSISTANT KDITOK CLARIS I). ASIIIIY, Kmmcvelt FAYE JENSEN' CORRESPONDENTS Vedn Labrum Roaebell Amea Ida Hnrrockii Telintha IlnHniuxitcn Oanla Seeley Lucy Edwarda Violet Pnrrielte Tracy Roberta Arradia Bullard Blueliell Inka Fort Diirhrane Hanna O Babson Report (Continued from page 1) vnlvlng tile Teamsters and the Auto Workers. If, the trurking i mins try Is paralyzed by a natiiHiwide strike next sprini', raw materials and finislied giMid.s ami curraimot le ti'ansMirteil. laiy-oftailed work weeks In many industrial lines would (lieu result. To (lie extent that the automobile Industry direeilv ami indirectly (thru the autoiiioiive e(iiijiiiient suppliers) employs man v workers and consumes a considerable amount of raw materials, a pmlouced tie-u- p either industrywide or ill a succession ol stiikes against each of tlie tic Three" auto prixhtecrMriMiId U very damaging to the erouomy which at that lime might lc either in the initial stare of a recovery or mi the verge of regaining its vitality. is ol varying Whether or not lalior is lor rostlv length do ocrur, the wage settlements. With the prol its squeeze now U'iui1 eMrieiicedby most Inisinesses. ui.iii.igeiiieiit can In1 expected to bargain harder hi nphr to keep the lid on cost fs 1 tie-iq- mit-pN- ik lalr and increases. Tims, in 1'iTO will lock Imrus in agement stand uiosi al lies mi the man- Mrlups the urt ( ltli in lualiv years. Labor leaders are eXMrtcd to push lurd lor direct wage increases during f ringe lieiHdits, with tlie exception of niediral programs, will lakealuck seal to increments in take-hopav. Maiiai'cmcui, ini tlie oilier hand, may concede large mv IkmisIs. but in exchange the contendency will Is to seek one-ye- ar tracts rather Ilian tin multi-ye- ar iacts, 1970. Nola Nelson Crnce DalgleiKli Maureen O. Spencer Afton Rogers Lillie Bigelow Mra. DeEtta Caaper Lorna McKee Montwel Myton Neola Mm. Alice Colliding Diirhrimc Area Roosevelt Area Altaniont Area Handled Lii point Tabiona Tndell Utahn Whiterocka Nonna Robb Verna Hoopea hoping that an economic breathing spell during 1970 will take the pressure off labor demands. 1970 BUSINESS PROFILE The latter part of 19G9 saw industrial activity turn downward. Even before that development, corporate profits after taxes had already crested over (starting in Urn second quarter of 19G9). Tlie Babsmi Staff anticipates a further slowihiwu in Imsincss in 1970. There Is no anticipation of a serious recession, although we raniuil rule nut such a possibility if prolonged lalmr tie-uupset supply-demaratios. However, If there are no radical disnqitions mi tlie lalmr front or mi the international scene, the general expectation Is that business will exicricnce a gradual sltpiugo during tlie first six to nine months ol 1970. If Hie automobile industry can come to lerms with tlie United Auto Workerswith-o- ut too much trouble, a noticeable pickup in general liusliiess could emerge in the closing months of 1970. Gross National Product The Habsmt staff forecasts a 40 to r,r, rise in tlie total dolljr value of goods and services which will be prmluced ill 1970 compared with 1!h;:i. However, this is in terms of current dollar value, which will reflect the further Inflationary rise in price tags experted in tlie next twelve mouths. Hut mi a physical volume basis (adjusted for price changes) Gross National Product is not likely to show much change compared with tlie deflated 1909 CXP. The coiiiMSients id tlie Gross National Product figure should W generally firm. Tlie most important segment is expenditures, which should ps nd persmial-eonsumpti- on continue the tqiward trend. This reflects not only Hie Increase in price structures luit also tlie natural growth of demand from the shift In the nation's piHilatimi profile, plus the higher levels of personal Income and Income per family. However tlie sizable Increases of recent years In personal consumption expenditures will not occur in 1970, The next Important segniput of tlie GXP Is private domestic investment. Here, also, 1970 should see only a small Increase over 19G9. High Ixirrowlng costs, tight credit, ind the pinch on corporate profit margins ire likely to dampen capital Investment. State and local spending will lie one of the stronger elements of the Cross National Product In 1970. The fight to curb major social ills must lie waged at the state and municipal levels, with help from the Federal Government. Factors which should UR state and local spending Include the need fur inure public housing, urlsin redevelopment , Improved mass transportation facilities, and highway betterment to prevent traffic strangulation of urban centers. In addition, operating costs of standard municipal facilities for public protection, education, and sanitation are all up sharply. Federal spending will be the sort spot In the GXP structure. In all proliabllity, Federal spending In 1970 will lie little changed to a shade lower lierause of cutbacks In military spending and stretchouts in large dollar volume federal projects. However, any savings In military outlays will lie almorbed by higlier expenditures In the civilian segment of the economy. Industrial Production As indicated in tlie introductory part of this section of the forecast, we currently expect tlie downturn In Industrial production which liegan last September to persist through at least the next six munths, with a possibility tlut it might extend through the summer. Industrial production is generally mealiasls and sured on a physical-volum- e does not reflect price changes. At this point, tlie Habsons Reports staff Indoes not foresee a deep recession. outthe Is that stead, factory expectation put will trace a gradual downward path in the first half, and a leveling off or the start of a revival in the third quarter, at a seasonally adjusted rate. In the final 1970 quarter. Industrial activity should show definite upside progress. Overall, tlie Balison's Reports staff projects a to the low possible slippage of aland point of factory operations, with the subsequent revival narrowing the net decline fur full year 1970 versus 19G9 to around Srt. The builBuilding and Construction. ding and construction field will not show much vigor until the monetary authorities shift to a less restrictive credit Thereafter, this sector of the policy. economy should pick up momentum and end the year on a strong note. Activity field is expected to in the pace the smart resurgence of new consBut unless the ease truction outlays. hnme-lxilldi- I In NELSON AGENCY ng credit occurs early in 1970, new hou- sing starts for the full year will do well to equal the numlier of units started in 19G9, Phone 722-250- ROOSEVELT, SPECIAL -KI.AIh AMI M MII K -- - M l M 1 To the extent that Business Profits tiusinesses are unable to lift prices and cut costs sufficiently to offset increases 1 iT. . ONLY! KEE- N- TV Console . . only $148.45 Shop our new 1970 Winter Sale . . . Super Savers cut 20 . . HAPPY NEW YEAR: to 25! in lalmr and other operating costs, corporate profits after taxes in 1970 may slip lielow the rate of earnings for 19G9 as a whole. Barring an industry-wid- e tie-u- p of auto producers liy tlie UAW, or a protracted series of strikes against each of tlie "Big Three" auto manufacturers in the fall of 1970, the anticipated upturn in business sometime after midyear, plus the probable expiration of the surtax, should help to stein the erosion of corporate profits in the last six mouths. Employment It now apiiears tlut tlie duwnslide in liusiiieKS is not likely to lie of sulfirlent magnitude and duration to create slurp nit -- barks In employment during 1970. Management is partirularlv aare ol (lie difficulty ol acquiring skilled competent, and conscientious help and hence the tendency will be to keep existing rrews Intact wherever possible. Hilt the average length of work weeks will lie trimmed further during the winter and spring weeks of 1970, which will automatically curtail additionally the anmuiit of overtime. The ranks nf tlie nevertheless, will show a definite Increase In 1970 uver that of 19G9. Slowing liusliiess will take the greatest toll upon unskilled and marginal workers. The job-le- ss rate may rise to if, of tlie Unemployment rs, civilian lalmr forre liefore business ran 'turn the corner In 1970. CONSUMERS TO THE RESCUE Pnisfiects fur risisumer spending in 1970 seem lusie too promising, particularly for durable gixsls. The Hal moil's Reports staff projects a slight downward bias in physical volume of retail trade until industrial activity perks up. Total dollar volume of retail sales, however, again will lie I mistered by higher prices. Ibiwever, the gruwlhandstrurtureofthe nation's population, demographic changes, and wage hikes, will augment consumer corrosive effects of inbuying power--th- e flation upon Hie purchasing power of tlu dollar notwithstanding. Thus, having already trimmed tlieir sails in 19G9, consumers may evidence buying Interest sooner than seems justified right now. MONEY RATES 7'liere is Utile doubt that tlie most onerous pliase of the rise In Interest rates which lias plagued us for the past five years has reached a crest. Although rorMirate I Kind offerings in the dosing weeks of 19G9 still carried generous coupons and yields, tlie outlook favors some easing In nuriiey rates In 1970. IVrlups tlie most significant reduction will orcur in the cost of short-terbuns. Tlie cost of long-ter- m money slumld also ease some, liut not to any significant degree. There simply is far too much demand for long term capital for projects which have lieen postponed by the excruciating credit squeeze, and for upcoming social m programs. Mortgage Rates Mortgage borrowings are In tlie long-tercategory. Therefore, while modest reductiixis In mortgage borrowing rates are very likely to occur In demand for housing (both 1970, pent-u- p single family units and apartments)pretty well assures brisk demand for mortgage money once Interest rates start to slip. Business Loans Because of the anticipated further slowdown in industrial activity. demand for liusliiess loans for the greater proportion of 1970 should nuxle-ra- te relative to 19G9. Inventory accumulation will naturally be considerably diminished, if not actually temimrarily replaced by Inventory liquidation programs. For these reasons, short-ter- m money rates including the prime rate, yiels on Treasury bills, commercial paper, and other short-ter- m deU instruments will decline until liusliiess perks up again. BONDS AND PREFERRED STOCKS As we enter 1970, prices of Ixmds and preferred stocks are well depressed, ami yields are the most generous In over a century. Therefore, these two types of securities provide very attractive investments for those who are in need of a high current income, lut the pnuqiect of an upward adjustment in market prices for luinds and preferred stocks as money rates decline dearly Indicates tlut there is also the opportunity fur capital m ap-reciati- Maximum Income Where the highest possible yield Is necessary On tlie rase of Investors wImi are entirely deiiendent upon investment income) and for certain institutional accounts, there are many high quality IkmuIs and preferred storks which can lie purchased to tie down tin generous yields now available. Income Plus Appreciation Many investors are not completely depemk'iit upon current income. For these investors, IkmuIs or preferreds which carry a relatively low rouMMi rate or dividend rate rail provide lith generous rurrent yield plus capital aipririaliiMi ntential. Investors who are Interested In a reasonable Investment Income plus some capital uppreriation lieyond the immediate future (llu latter factor representing an should not overlook good Inflation convertible ImhuIs and preferreds. Tlie stock market decline lias pulled most convertible securities down to Hie point where their current yields are quite attractive, Those issues trading close to, or right at, tlieir conversion value stand the liest chance of moving upward In price when their respective common shares stage a retxiund. BARGAIN COUNTER FOR COMMON STOCKS The unnerving market performance of hardly seems to lie a source of inspiration for investors, particularly with business ami corporate profit prospects uninspiring for tlu first half of 1970. Tlie long experience of the Hahson Organization, Imwever. lias shown time ami again dial the best profits can be garnered from bargain hunting forays when down the stock market has Iwett ami the Huy high, sell higher sophisticates are quivering in their Units. MimI" cciiiioniics notwithstanding, there Inil is no substitute tor Hie vestment philosophy of buy low. sell high," as this aiproarh carries the least downside risk and a maximum of iqisiilo 19G9 kmM-ke- glomerate shirks, and the agricultural equipment shares. long-sufferi- ng Victor Gardner funeral services December 31 Funeral services will lie luld Wednesday at 2 p.m. In the diapel at tlieUte Baptist Mission In Alterra for Victor T. Gardner, DO, who died Dec. 27 In Ver- nal. lxrn Jan. 4, 1919 In Ft. to Guy uiid Julia Tunnor Gardner. Married Lottie Longhair and later dlvur- ced; married Emma Lee Serawop, later divorced; married Diana Ice. He was ne Survivors Includo Ills widow, step-daught- er, liard-miKi- Kiteiitl.il. The research stjfl ol Growth Areas Ribson's Reports rurrenilv favors investments in such stock groups as lile insurance, savings and liun, leisure tune, electronic data priK'essing cosmetics, software, pollutiisi control. solid waste disposal, integrated circuits and certain of the precious ami primary metals (notably silver, platinum, ami aluminum) for investors interesteii in longer r.mre growth. Oversold Issues for KeUiund h iienti.il who require some base ol current income often lind themselves Hut shut off (nun tlu growth stocks. there Is nothing like a rihkI market shakeout to open up capital gains for every Investment nheciir. Over a sluirt span of time, the ihiwninKldeii prosaic ami more ryrlical Issues r.ui provide just as enriMiraging profits as the In this corner of growth issues olfer. (lie bargain couiiier. we of Hie ILdsins Reports Slatf mnt to tlu1 Value and recovery IHileiltl.il of sill'll Comill"li sliK'k groups as (lie oils, lln natural .'as producers aiul Hu building ili.iiei l.ils ami rixist met imi equipment issues. Tlu "oversold" label call Is lacked on lo otlu-l- ' groups, including llu soa ks ( rniiii.iiiies In tlu aircraft, nibla-- r pnslm-ls- . ami llu original-equipmeud auto parts In PI con ilo not overliNik Hie well iraiiipb-niMii-timi-tie- Clill Drollinger YOl'K IIOMK could lu 'a insured if you lutvi not litid a personal survey made this (I past year as to u p d a t e s values! Central Utah Insurance Agency. 17 SOUTH MAIN STREET ROOSEVELT. UTAH Office 722-252- 2 Res. 722-338- nt Spedol Roosevelt (BED SUB CEnna-- 0 QO CMS) l; Ks-ti- na After-Christm- as BARGAINS SHUT SALE! 25 - 30 Off on all winter stock ELAINES DRESS SHOP ltnt.M.T. I l ll These specials for Wednesday, Thursday, Friday and Saturday, Dec. 31 - Jan. 1, 2, 3 ! (Mmj Knose-vei- sons and daughters, Victor Jr Whllcrocks; Mrs. Abe (IsaUdl) large, Gllliert, Mrs. Richard (Yvonne) Curry, all Roosevelt; Wllllard, Hemielt; Mrs. Jarvis, Vernal; JiiiiuHkhi, Guy ami Tammy, all Randlett; one Julia Ice, Allerra, 17 grandchildren. Friends may call Tuesday afteriinmi and evening at the home of Willard Gardner In Hvmiett and at the Church Wednesday from 11 a. in. until services. Hurlal will I1 In the H. Duchesne We will be open New Years Day! 4 |