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Show Serials Order Department WESTERN AMERICANA MONDAY, APRIL 8. 1974 SALT LAKE CITY. UTAH VOLUME 17, NUMBER 292 . Nation Survives Ides of March The nation successfully survived the Ides of March, and indeed, some Sun- day drivers became positvely euphoric after hearing about the suspension of the Arab oil embargo. Still, the lifting of the embargo may yet turn out to be the of the year. Energy supplies remain scarce and quite expensive, and the same is true of most other major commodities, while a few sectors remain beset by weakening demand and job losses and no one yet knows for sure how these conflicting developments will sort themselves out in coming months. On the production front, recession fears subsided slightly with the release of statistics showing two successive monthly increases in housing starts and durable goods' orders, as well as the first modest signs of an end to the massive slump in auto sales. On the financial front, the markets tightened significantly, partly because of non-eve- larger-than-expect- corporate financial demands over the March tax date, but perhaps more because of fears of rampant inflation. The same fears affected international financial markets; the dollar weakened significantly, and the price of gold again reached a new high. Falling output Industrial production fell in the third consecutive February overall month for a decline from the November peak. However, this drop was no more than half as steep as the declines recorded at the outset of the 1969 recession and during the 1970 auto strike. Total production recently has been relatively flat, except for and decided weakness in the auto and energy industries. Auto assemblies continued dropping last month to a 6.6 million-und below annual rate roughly level. By reducing its the year-agproduction rate during the past several months, the industry apparently is beginning to get its topheavy inventories under contro. Auto analysts now expect new-ca- r sales (including imports) of about 10 million units for the year, compared with the 1973 record of 11.4 million enthusiasts units. But compact-ca- r it one-thir- o - decline claim that the would be only half that large if the industry were better able to meet the demand for the smaller models. Energy production also continued to weaken in February and is now off about 16 percent (annual rate) from last summer's peak. This decline isn't all bad; it can be attributed not only to the weakening of industrial and household demand but also to a significant improvement in efficiency s on the part of a suddenly final the populace. During quarter of 1973, for instance, Federal agencies cut electricity consumption year-to-ye- ar were in mixed somewhat February. The at 5.2 stabilized rate unemployment would risen have but it percent, conhad force if labor the significantly tinued to grow at the same rate as in the preceding several months. The rate is widely expected to rise to 6 percent or more as the year goes on, and may remain high even as the economy returns to its historical growth trend over the next several years, because of a heavy inflow of jobseekers into the market. (Labor Department projections indicate a 1 expansion of the labor force during the 1970's as a . whole, compared with a gain of less than 14 million workers during the previous decade.) With the maturing of the former bumper crop o f teenagers, unemployment in this decade may be concentrated inworkers creasingly among prime-ag- e breadwinners. of them family many Lower taxes? With the economy still sluggish, Congress has been debating the feasibility of a fiscal stimulus to keep the downturn from getting out of hand. One major proposal calls for $5.6 billion cut in income taxes, probably through a rise in the personal exemption from $750 to $900. (This proposal would give a sudden boost to workers' spendable earnings, and could thus relieve some of the pressure for catchup wage increases.) Another alternative, suggested by Treasury Secretary Shultz. would simply involve a shift in schedules, providing some relief to workers' paychecks today but at no future cost to the Treasury, since this move would be offset by reduced tax refunds in 1975. y The relevant guide has been suggested by William Fellner, of the Council of Economic Advisers. In his view, stimulus would be called for if the public happens to be reducing its overall level of demand, but it would only add fuel to inflation if the public is simply shifting its demand from one sector to another, such as from large market. In the cars to the small-ca- r fiscal-polic- Supreme Court Decisions percent, while reducing by gasoline usage in the Government's 67,000-ca- r fleet by 7Vi percent. Sluggish earnings Personal-incom- e growth resumed its normal uptrend in February after a modest decline in January. (That decline was only half as large as originally reported.) Wages in manufacturing and other commodity-producin- g industries improved in February and thus made up for part of the decline of the preceding month. Another development which cut into a sharp increase the January total was in the social security tax take not a factor last month. Real spendable earnings per worker meanwhile fell to 4 '4 percent below the ' level, thus increasing the year-agpressure on labor contract negotiators increases to gain substantial catch-uthis year. At the same time, with Congress on the verge of raising the minimum wage from SI. 60 to $2.00 an hour, upward pressures on wage rates and earnings may soon develop throughout the salary structure. W o p In other words, policymakers' fears recently have centered around the continued price upsurge for energy, for food, and for practically everything else. (One exception: used-ca- r prices have been falling for the past several of the months.) Roughly recent upsurge has been concentrated in food and fuels, but the rise in other categories has been almost as worrisome. Industrial commodity anprices have risen at a nual rate over the past three months, and much of that increase is bound to show up later at the retail counter, especially in view of the price bulge that is now appearing with the dismantling of the two-thir- nt price-contr- ol mechanism. Tighter markets Continued bad news on the inflation scattered front, hints strengthening economy, and a of a tighter Federal Reserve posture than had been expected by market participants all led to a tightening of financial markets in recent weeks. Short-terrates rose sharply, offsetting much of the irregular decline that had occurred since last summer. The Treasury bill rate exceeded 8 percent last week, after dropping almost to 7 perBanks' prime cent in business-loarate rose generally to 9 percent last week, compared with the figure posted by some banks only several weeks earlier. This increase reflected not just the general economic picture, but also such specific factors as the rising cost of funds to banks and the unexpected demand. If strength of business-loa- n the latter represents anything more than seasonal tax financing, the general expectation of a further decline in the prime rate may well be forgotten. In long-termarkets, rates in most areas except the mortgage market remain close to 1973 peaks, partly because of inflation fears but also because of the market's difficulty in digesting extremely large inventories of Treasury, municipal and corporate securities. The sharp increase in corcapital needs projecporate long-teralso 1974 for is helping to push ted rates upward. Many firms, in the energy field and elsewhere, plan to spend a great deal to end shortages of plant capacity, as the Commerce Dept. survey shows, with a 1414 percent annual rate of increase in capital, spending in the second half of the year. To finance that type of spending, however, corporations must look to external as well as internal sources of funds. The profits boom flattened out in the spring of last year, and the flush liquidity position of that period is now only a fond memory in the hearts of corporate treasurers. m 90-da-y . mid-Februar- y. n 8'4-perce- nt , m m See details Page 5 energy-consciou- 21 90-Year-- Old view of Federal Reserve Chairman Arthur Burns, "It is not clear that a strong dose of fiscal stimulus is needed now, and we surely need to proceed cautiously at a time when the '' price level is still soaring. statistics Employment In This Issue: Legals Probate Confirmation of Sale . . . Partnerships Suits Marriage Licenses Births Tax Liens County Building Permits Third District Court Supreme Court Decisions New Corporations . . . 2 2 2 2 .. 2 3 3 4 4 4 , 5 R Liens 9 9 Quit Claim Deeds Trust Deeds 10 10 ! Mortgages Bankruptcies Warranty Deeds City Business Licenses Water Service Bountiful Power Business Telephones Murray City Power Murray City Court . ; . Uniform Commerical Code Filings Attorney Clenpral Opinion 11 12 12 13 14 14 14 14 15 20 t Zion's Honors Lake Salt Banker r - Alvin Zinnti -- ""-- J. Schornhals. left, and Gerald I). Hnlyoak. both senior vice presidents of First Nat'l Bank, congratulate Joe E. Boud. right on his 90th birthday, How does it feel to be a banker looking back? Joe E. Boud. the oldest living former Zions Bank employee, had an opportunity to answer that question this week at a surprise party in his honor, sponsored bv Zions First National Bank. Joe did a little "looking back." but said he is looking forward, too. with seven grandchildren and five great grandchildren who help keep him and his wife feeling young. , The party in his honor was held on Joe's 90th birthday at the Ambassador Club in Salt Lake City. It was followed by an evening surprise Open House at the home of Joe's daughter, Mrs. Margaret Coombs. Mr. Boud's wife, Irene, home after several weeks hospitalization, was unable to attend the Ambassador Club party but was home for the Open House. Salt Lake City resident whose forebears were Utah pioneers A lifelong with Brigham Young, Mr. Boud was born in 1884 in downtown Salt take City's west side, once a quiet residen- U. of U. Holds Forum On Impeachment four-hou- tial area. He attended Franklin Elementary School and graduated from West High School and the LDS Business College. He joined the staff of Utah Commercial & Savings Bank in 1980, went to the Utah State National Bank after a merger in 1912, and retired from Zions Bank an outgrowth of both of these earlier firms in 1966, after 58 in years banking. Mr. Boud started his banking career as a bookkeeper, then became a teller and assistant cashier. When he retired in 1966, at the age of 82, he was an assistant vice president of Zions Bank in the Installment Loan Department at Main and 1st South. "There have been more changes in banking in the last few years than I ever dreamed possible," Mr. Boud said. "Especially the computerization and the expansion of the bank. I don't know a great deal about computers. When I was a young man everything was kept in ledgers and balance hooks. Union Ballroom. which will During the first hour be televised live over KUED. Channel 7 a distinguished panel of lawyers will explain various facets of impeachment, ranging from historical precedents to jurisdictional questions. Members of the panel will include: Dean Rex Lee of the Brigham Young University taw School. Commissioner James Lee of the Utah State Bar Association, and Professors Jefe ferson B. Fordham and Edwin B. Fir-mag- the of U. Law School. Panel moderator will be U. taw School Dean Samuel D. Thurman. Representative Wayne Owens ), member of the House is also expected Committee, Judiciary to participate in the discussion. The remainder of the forum will cona basic tax information seminars, Mr. Wise said. Current plans are to hold the seminars on a regular basis in Salt Lake City but Mr. Wise indicated if the demand is sufficient, the seminars may be held in other cities as a convenience to Utah residents. Seating capacity is limited so those .who wish to attend are requested to make reservations by calling Revenue Officer Darrell Woodward. Mr. Woodward may he reached by dialing in Salt take City. Others making calls from outside Salt take City may call the toll free number 524-586- remembers. "And you'd be surprised at the amount of gold and silver coins in use back when I was a young man. You just didn't see much paper money. Most of the currency was $20, $5. $2'j and $1 gold pieces, with silver dollars and change. Even your grocery stores and business establishments traded with gold and silver in those early years. Prompted by the possible impeachment of President Nixon, the University of Utah College of taw will r forum, sponsor a special to 8, Monday. April acquaint the public with the complex legal process of impeachment. Legal experts, educators, and representatives of special interest groups will participate in the event, which will begin at 10 a.m. in the Olpin Free Federal Tax Seminar Planned for Businessmen in Utah SALT LAKE CITY. UTAH -Roland V. Wise, District Director of Internal Revenue Service for Utah, announced a new basic federal tax information seminar to be held monthly in Utah for new businessmen. The first session will be held in Salt take City, Friday. April 26, 1974. This new program is designed to advise new businessmen of current tax lawx and requirements for filing and paying of federal taxes. All new or existing business owners are invited to attend one of the two hour sessions. The Small Business Administration for Utah has suggested that all businessmen receiving loans from, their organization attend one of these "We probably knew by name practically everyone who came into the bank in the old days," Mr. Boud 3 sist of explanations by various specialists on income tax, criminal law and other aspects of the impeachment question, as well as statements by various groups such as the American Civil Liberties Union and Utah Common Cause. Additionally, members of the audience will be able to ask questions of the panel. Dean Thurman emphasized the forum will be "scholarly, objective and in its approach. It will discussion of procedure a be "largely iind will not treat the details of the non-partisa- rasp involving the President." Hopefully, he adds, it will serve "to clear up the considerable confusion on the part of the public concerning the issue." Persons or groups interested in participating in the forum may caal Dean Thurman at the law school." whole 581-683- |