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Show Sorials Order D .partment of Utah University C4U2 WESTERN City AM 0Pt-- FRIDAY, JANUARY 11, 1974 SALT LAKE CITY, UTAH VOLUME 17, NUMBER 246 Texas Airlines Plans to Reduce Forces Texas International ' Airlines announced plans to furlough approximately 90 of its employees as a result of reduced flight schedules made necessary by the aviation fuel allocation program. The airline said it was optimistic that further layoffs and schedule cuts could be avoided, although a serious problem of suppliers failing to delivery allocated fuel amounts exists. The layoffs announced today affect almost 5 of the regional airline's . 2,000 employees in its 9 state and Mexican route system. Of the total to be furloughed, 22 are supervisory and Terracor Announces New Manager Study Sees Consumer Less Bearish On Self But More So On Economy management personnel, and the balance are in operating areas of the Company. Texas International previously announced flight cuts totaling approximately 10 of ..its crisis schedule and has 'argued that calculation of its 1974 fuel allocation on the basis of 1972 "base year" consumption levels was grossly unfair, and would undoubtedly cause "severe hardships for its employees and many communities it serve. ' ' The airline earlier filed with the Office of Petroleum Administration for authority to consume more fuel in 1974 than it did in 1972, at the same time most pther airlines were aggressively expanding, services nd adding new equipment to their jet fleets. Texas International told the federal government that it has not added a new jet to its fleet since 1969, and that its present fuel consumption is below pre-energ- y 1970 levels. ANN ARBOR, MICH. (UPI) -The steep slide in consumer confidence which took place during the first nine months of 1973 was arrested during the period from early September to two-mon- November the Research Center (SRC) early University of Michigan's th Survey of The Institute for Social Research reports. Some families' became less pessimistic about inflation and about their personal financial situations. Attitudes toward business conditions, the economy, and government economic policies remain quite unfavorable, however, and SRC economists say that results of their latest Survey of Consumer Attitudes, in conjunction with the deepening fuel crisis suggest that the onset of a general recession is imminent. Survey founder George Katona and survey director Jay conclude their report with the following economic outlook : "A significant slowdown in consumer spending, a substantial falloff in two key consumer industries (housing and cars), and therefore probably a recession were indicated by surveys conducted early this year before the fuel crisis became a problem. "The results of the most recent survey, in conjunction with the deepening fuel crisis, suggest that the onset of a general recession is imminent. . . Auto sales will be particularly hard hit. "The crucial question is how long and how deep the recession may be. On the one hand, the latest survey shows a high proportion of families reporting income gains; assuming savings or that it was more important than usual for them to try to save." respect the pattern of attitude change this year has been greatly different from previous periods when consumer sentiment has declined, the economists said. increased Despite greatly about the personal pessimism financial situation and about In one business conditions, opinions about whether now is a good or bad time to buy large household goods have remained relatively favorable this year. "What has made this year dif- ferent," Katona and Scmiede-skam- p saidX'is that fear of future inflation has outweighed consumer resistance to current price increases. Many people have reasoned that if you will need to buy something you might as well buy it now before the price goes up. Installment credit has been stimulated by the corollary notion that something needed in the future might as well be paid for in the future." The economists caution that this year's divergent pattern of contogether with the widespread sumer attitudes toward buying is opinion that the inflation problem quite unlikely to persist: "The will not be easily solved, has led to weight of the survey evidence great pessimism about the long-rusuggests that consumers are likely outlook for the economy. These to resolve these uncertainties in the attitudes, which are not easily direction of increased caution in turned around, have a powerful spending. Attitudes toward buying impact on housing as well as other cars and homes have already major spending decisions and the become quite unfavorable." incurrence of installment debt. If these attitudes do not improve, that Accordingly, news of layoffs caused by fuel shortages can be expected to would tend to make the recession reinforce expectations of bad times. relatively deep and prolonged. The energy crisis has not only Inflation. Watergate, and fuel direct effects on output and demand shortages have produced enormous (auto sales, resort travel, etc.) but uncertainty among consumers. also substantia indirect effects Fully 63 per cent of respondents ' through contributing to increased in the latest survey said that they pessimism about the economy." were not satisfied with their that income gains continue frequent, the recession would tend to be relatively short and mild. "On the other hand, the pervasive lack of confidence in the government and in its economic policy, . fc . n ACTIVATE ANTIRECESSION PROGRAM NEW YORK The White House is making an - effort to economic "soft landing" predicted by its chief prevent the economist, Herbert Stein, from turning into a hard landing. Business leaders have been pushing the Administration for some signal of what the government intends to do about the faltering economy. Corporations are delaying plant expansion for an inkling of what the future holds. The stock market's jitters through the past few months tells how investors, large and small, feel about the uncertainty. Some of the selling waves in December touched off the steepest plunges in years. It is hoped President Nixon's order to release $1.1 billion (b) of impounded funds for health and education programs, withheld because it might add fuel to an overheated economy, means all impounded. funds will be eased. Nixon had impounded a total of $12.5 billion in legislated funds. But Washington sources aren't sure the $1.1 billion is an all 1974 Mr. Fedrizzi Johp Fedrizzi, a native of Rock Springs, Wyo., has been named manager of the data processing department at Terracor, it was "announced this week by Terracor president and chairman of the board, Ian M. Cum-min- g. Mr. Fedrizzi, who has been a member of the data processing department since March, 1973, replaces Charles Stoy, who has left the company to start his own business. John, a graduate of Western Wyoming College in Rock Springs, has also attended Westminster College in Salt Lake City, Weber State College in Ogden, and several seminars sponsored by International Business Machines. Prior to joining Terracor, Mr. Fedrizzi was associated with Huish both Distributing Co. and of Salt Lake City. He is the son of Mr. and Mrs. Joseph J. Fedrizzi, Rock Springs. out Nixon about-fac- e. Nixon's release of $1.1 billion in funds for health and education spending doesn't mean it will immediately help the national economy. It will be spent in dribs and drabs. Statistics show there is a time lag on federal spending of from eight to 12 months before having an actual impact. But the fact that Nixon did start to release withheld money for an antirecession program is giving business reasons for optimism. If more withheld spending is released, some economists have suggested, the recession 'may not run longer than six months. In a nutshell, say the economists, the new stimulating forces should pump fresh life into the U.S. economy and somewhat offset the Arab Oil embargo jitters. It is expected that billions of dollars will be invested in energy oil and gas drilling, new pipelines, refineries, expansion tankers, coal mines, rail coal cars, nuclear power plants and all related industries. It might trigger a massive home building boom. Recent studies show that some 13 million Americans are living in unsuitable homes. Also, mass transit may receive a huge influx of funds for better train and bus service. private and public Utah Supreme Court Decisions Knowledgeable financial sources say that because the glamor stocks did so badly pricewise in 1973, institutional traders will avoid them this year. Most of the new incoming money will be used to seek out possible profit-gaisleepers in the bond markets so that, if prices do decline, there will at least be an income from their capital investment. n (See details page 4) Labor Dept. Publishes Job Safety & Health Questions and Answers The U.S. Department of Labor has issued the .first in a series of publications answering the most commonly asked questions about job safety and health standards. The series is designed to assist employers to comply with the standards, said Curtis A. Foster, Acting Assistant Regional Director for Occupational Safety and Health (OSHA) in Denver. booklet covers Part 1910, The the OSHA general industry standards. Included are such topics as walking and working surfaces,, means of exit, platforms, occupational health and general environmental' controls, electrical hazards, personal protective equipmen, fire protection, and machine guarding. Foster emphasized that the answers "do not constitute an official interpretation of any of our standards nor can they be used to modify our rules or exempt anyone from application of our standards. Each workplace in the Nation represents a unique hazards situation as far as are concerned bo that blanket answers are impossible for all standards. It will be up to the employer to utilize the in 30-pa- on-the-j- formation contained here for his own benefit." Action Against Condominium Developer Dismissed Reid Russell, Assistant Attorney General, announced that an action brought by the Department of Business Regulation, Securities Commission, against Richard Harlan and Fish Haven Resort, Inc., an Idaho Corporation, has been dismissed. The basis of that dismissal being a M. stipulation entered into between M. Reid Russell and counsel for Richard Harlan and Fish Haven, wherein it was agreed that Fish Haven would not sell condominium units in the State of Utah including a management or pooling agreement whereby a purchaser of such a unit. The Utah Securities Commission will be provided with copies of all advertising material they intend to disseminate in Utah. |