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Show Serials Order Department Uhiversity of Utah City 64112 WESTERN AMERICANA Off patio New Theory May Affect Unfair Business Losses - courts be able to take a new and CHICAGO (ACCN) U.S. may possibly more equitable stance on speculative damages as a result of the growing acceptance of a new legal theory, according to Atty. Hugh Gibbons, senior consultant to Intec, Inc., a Chicago research and business management firm. Writing in the winter issue of The Bulletin on the thorny judicial problem of affixing potential losses stemming from unfair business practices, Gibbons Anti-Tru- st asserts that the "market share" theory of damages largely negates d the requirement of forcing companies to prove in the most exact terms how they had been hurt financially by illicit practices. Essentially, Gibbons advocates that "market share," damages can be measured by the share of total market sales the aggrieved company could reasonable have been expected to attain without the injury. "This loss of market share," notes the attorney, "is calculable in dollar terms and can be considered in affixing financial penalties. It offers plaintiffs in private enforcement cases the opportunity to prove damages in many instances where the older 'before and after' and 'yardstick' theories are of no avail." Gibbons points out that the "market share" theory began to widely-impose- evolve in the middle 1960's when cases such as Zenith Radio vs. Hazeltine Research began to influence some judges away from their former attitudes against damages difficult to prove in earlier years. "There had always been the awareness that loss of profits goes to the heart of the damage suffered from a business tort," he states particularly where plaintiffs have been foreclosed from entering a new market. With the few precedents we now have in this area, we may be at the point where the courts can cease their The Public Service Commission of Utah Thursday heard testimony from Utah Power & Light Co. officials that an increase in electric service rates is essential and needed immediately to avoid financial jeopardy and erosion of the quality of electric service. The sworn testimony was presented to the PSC as the commission opened hearings on the utility's application to increase electric service rates in Utah. The major thrust of Utah Power & Light President E. A. Hunter's testimony was the impact of inflation on the company's operating and construction costs, and the company's need for adequate earnings to meet company obtained a monopoly on an automatic industrial tool changer through an illegal patent. . 1 CSee details page 4) .effectively preventing G&L from in its field. We discovered that had the patent not been issued, Giddings & Lewis The year 1973 was a year of paradoxes and contradictions for most Utahns, according to Utah Founda- can become critical problems in less affluent times. Economists predicted Spurred by unusual activity in private heavy construction and other factors, Utah's economy was booming while consumers were fighting a continuing battle against an upward- SDiralins cost of living. While the energy crisis loomed as a factor not yet fully assessed, it appeared certain to affect the future but to a degree impossible yet to gauge. Utah State finances were in an unusually healthy state, but the very surpluses were for the Governor, legislative leaders, and many private economists matters of special concern. The ready availability of money was bound to increase pressures for spending by the 1974 Legislature, but programs begun in times of prosperity ably level off accordingly. While Utah appeared to be favorably situated compared to many states in face of the national energy crisis, having adequate supplies of natural gas and of electricity to meet immedi- -' ate and foreseeable needs, the problem of gasoline supply was the same in the Beehive State as in other parts of the nation. If gas rationing should be imposed nationally, Utah and other Mountain States where distances between communities are unusually great and where mass transit facilities are few would be at a relative disadvantage unless special allowance were made for these factors. The cost of living continued to soar throughout 1973, the Foundation noted in its review of the year past, with food price increases leading the way. Food prices advanced in 1973 at a rate times the average four and one-haannual increase over the previous five years. The increase in cost of medical care, which had led the that eventually the economy must cool, and pointed out that when it does the public nonprofit tion, private, the rise in state revenues must inevitservice agency. lf could have anticipated sales amounting to 20 percent of its market. This translated under the market share . theory into a cost-of-livin- proposed penalty of $7 million lost profits. While the case was settled out of court, this approach to damages was clearly applicable. Gibbons anticipates that the to measuring damages will not be restricted to private enforcement anti-trucases in the future. "We can well expect," he asserts, "to see the theory applied to all unfair practice and patent g st requirements for sale of company security issues to finance its cons '.ruction program. He explained that the bulk of the funds required for UP&L's some $750 construction program million in the five years ending 1978 must be raised through the sale of stock and bonds, "which can only be accomplished if the company is in a sound financial position." The utility is asking a $25.6 million increase in annual revenue in the state of Utah which would apply to all classes of customers and would average 25.5 percent. Translated to household terms, this would mean an increase of $3.26 per month for the average residential user. the knowledge and insights of the humanities are needed more urgently than ever in the contemporary world, and that they ought to be made available to the present and future leaders of the nation's professions. The seminars will bring together distinguished humanist law teachers and lawyers e for a month of reading and discussion. The lawyers will be selected from the various sectors of the legal profession and from all parts of the country. The seminars will take difone philosophiferent approaches and use cal, the other historical different sources, but both will aim at focusing humanistic knowledge and understanding on problems which are relevant to the practice of law. full-tim- g increase since 1967, however, slowed down somewhat in 1973. Utah was the fifth fastest-growinstate in the nation in the 1970's, according to estimates of the U.S. Census Bureau, which placed Utah's population at 1,157,000 on July 1, 1973, 9.23 above the official 1970 Census count of 1,059,273. Only Arizona, Florida, Nevada, and Colo- rado showed greater percentage in- crease in population over the same period. No state lost population over new-approac- Humanities Seminars For Lawyersg Utah Supreme Court Decisions Booming Economy, Uncertain Outlook, Make 1973 Year of Paradoxes competing !!EH Announces The National Washington, D.C. Endowment for the Humanities will seminars for support two month-lonColumbia one next at lawyers June, University under Professor Charles Frankel and the other at the University of Wisconsin under Professor Willard Hurst. The seminars are intended to help improve the quality of leadership in the law by broadening the perspective from which lawyers view their profession and society at large. Announcement of the seminars, which are part of a new program for persons in professions outside of teaching, was made by Dr. Ronald Herman, the Endowment's chairman. The Endowment's premise in hunching the new program is that infringement suits when they affect loss of market." Copies of the Gibbons article may be obtained from Intec, 233 No. Michigan Ave. (2 Illinois Center), Chicago, 111., 60601. wavering between liberalism and conservatism over the question of allowance of lost profits." One case in point, the attorney recalls, "is Kearney & Tracker vs. Giddings & Lewis. The former increase in Electric Rates Essential WEDNESDAY, JANUARY 30, 1974 SALT LAKE CITY, UTAH VOLUME 17, NUMBER 259 Y Lou SdinaVe the three-yea- r period (though the District of Columbia did), but some FEAR WORLDWIDE RECESSION NEW YORK Despite bullish predictions by stock market, analysts that all's well this year for American business, foreign economists are predicting tougher times ahead on a worldwide basis. Almost all countries, large and small, are being hurt by the skyrocketing of crude oil prices forced by the Arab nations and other countries. Even the Soviet Union has stif-- f ended its oil prices on her export shipments. This pushes business costs higher. It is forcing other raw materials to higher pricing as a means to rebuild .operating profits. In foreign markets, business loan interest rates are at new highs. So are wages. It spells out worldwide inflation. While raw material-producin- g nations may benefit from will be a reached where inflation, point profits will be so narrow that plant operation isn't worthwhile. When that point is reached, caution the European economists, a recession will set in and send prices tumbling worldwide. They insist it can huppen.. - ng . Wall Street's bulls insist stocks are , now priced at only 10 times estimated 1973 earnings (full reports will not start flowing until late February) and are at bargain levels compared with the 15 times earnings of a year ago. They alsoinsist the market has overdiscounted the disruptive effectrfof the Arab oil cutbacks. Moreover, the market has a habit of looking six to 12 months ahead and there will be an economic recovery running full blast, they say. Adding their thinking to the bull side, the brokerage house chartists are predicting the new lower 50 per cent margin requirements set by the Federal Reserve will bring- in enough public buying to help boost the Dow Industrial average to about long-establish- ed - 1,100 this year. large eastern states registered mini- mal gains, such as New York's 0.13. Personal income in the United States passed the $1 trillion ($1000 billion) mark for the first time in 1973. Personal income in Utah showed a greater percentage increase in 1973 over 1972 than did that qf the nation, but the per capita income gain in Utah was below the national average, due to the above average population increase in Utah. More than one third of total personal income in Utah went for taxes in 1973, 60 of the tax total for Federal taxes. However, state tax collections were up nearly 17 in Utah in 1973, compared to a rise of 12 in Federal taxes (and 5 in local taxes). There were no increases in the rates of any Utah state taxes in .1973, the increased returns resulting from the unusual pace of the economy. Bank Announces Promotion Mr. C. Alan Murdock, has been elected as Senior Vice President, of Tracy-Collin- s Bank and Trust. In addition he has been named to the position of consumer credit .departs ment officer for the System, according to an announcement by Mr. Gilbert Shelton, PresiTracy-Collin- the other side of the stock market coin are the major managers who are cautious. They think the market is being overtoiled. They say the energy crisis will worsen inthe months ahead and that the Watergate scandal will again be troublesome in the next couple of months. These investment managers say the wide intraday swings of the Dow industrial average is proof the stock market lacks liquidity on bom the supply and demand sides. They don't expect the institutional traders to be as active this year. Reason: They absorbed a stinging financial loss in last year. On playing-the-swin- gs dent and Chairman of the Board. Mr. Murdock's office will be' responsible for all consumer credit including the dealer division and the credit card s division for all offices of Bank and Trust. Mr. Murdock's areas of responsibility will include consumer credit, automobile loans, charge cards and related consumer finance matters. Tracy-Collin- i ; |