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Show I 1 Serials Order Dept. University of Utah SLC,Utah 84112 WESTERN AMERICANA 41974 NO; SERIALS pROtR VOLUME 1, NUMBER 30 SALT LAKE CITY, UTAH MONDAY, NOVEMBER 4, 1974 Doss World Wide inffDation Have Us Over A Barrel? We past year's upsurge in oil import prices has helped push inflation rates around the world to historic levels, and in addition, has created serious problems for nations. Moreover, present evidence suggests that unless the consuming nations drastically reduce the growth rate of energy consumption and accelerate the development of domestic energy resources, they will become increasingly dependent upon unreliable Middle Eastern oil supplies. This increased dependency at today's stratospheric prices could subject them to "unmanageable" financial in the words of Federal problems Reserve Chairman Arthur Burns and could also render them vulnerable to further economic disruption in the event of a future embargo. trade-financin- g Arab Squeeze r The increase in prices has reflected the vast change in relationships between the. major international oil companies and the eleven members of the Organization of Petroleum Exporting Countries (OPEC). Beginning in 1970, the nations began to imsuccession a of increases in pose rapid reference prices for "posted" prices and taxes calculating royalties. Initially, these increases were achieved ostensibly through negotiation, although the oil companies in actuality were forced to acquiesce or face possible expropriation of their concessions. But in October 1973, the last vestige of voluntarism was abandoned, when oil shipments to the United States were embargoed and posted prices increased unilaterally, boosting OPEC revenues from SI. 80 to $7.00 per barrel Since that time, the producing governments have increased their revenue, from taxes and royalties further, to a current figure of about $8.40 per barrel. In addition, they have acquired partial ownership of the oil concessions and, through "participation agreements" with the oil companies, have raised the price of "buy back" oil the price the companies must pay to repurchase the host countries' newly acquired share of output. As a consequence of all these moves, the world market price of oil has increased fourfold in the past year. The latest decision to increase revenues came at last month's OPEC meeting in Vienna, when the producers refused to rollback posted prices as had been hoped, but instead raised royalties by 33 cents per barrel. To set the stage for this move, the cartel nations had closed down about 17 percent (6.3 million barrels day) of their crude oil production to offset a recent surplus of oil. Fueling the Inflation The quadrupling of oil import prices undoubtedly has aggravated the worldwide problem of inflation. By this September, U.S. wholesale prices of fuels and related products had risen 64 level Since percent above the year-ag- o petroleum is essential in the production of a wide range of manufactured goods and agricultural products, this cost increase has had a widespread impact on the national economy. By one estimate, the soaring cost of imported oil alone has accounted for about 2 percentage points of the increase over the past year in the U.S. GNP price index. The OPEC nations of course deny that the soaring price of oil has had a significant influence on worldwide inflation. They maintain that even at its prt'jent price, oil will account for no more than percent of the inflation rate expected this year in the industrialized nations. l'i ' Financing the Deficits Whatever the merits of these arguments, there is little doubt that the soaring cost of imported oil has created severe balance problems for the nations, particularly the developing countries. According to U.S. Treasury estimates, OPEC nations can expect to receive $80 billion in revenues from their oil compared with only exports in 1974 $15 billion in 1972 and $25 billion in and another $5 billion from 1973 non-oi- l exports. But the nations, many of which 'have sparse populations and undiversified economies, will be unable to increase imports sufficiently to compensate for the sharp increase in export receipts, at least in the short-run- . The essential means for financing these deficits are at hnd, since OPEC countries must invest their huge surin the tradipluses in some form tional capital markets of other countries, or the Eurocurrency market, or -- through international institutions. NALS Sponsors Scholarship Award Contest DEPT. fountain Fuel Seeks Increase In Rates - Indeed, those investments have been occurring since early this year. In the January-Auguperiod, according to Treasury estimates, the major oil exporters invested almost $28 billion of surplus revenues. A Longer View The longer that OPEC surpluses accumulate, even at present levels, the more difficult it will become for countries in a weaker financial position to borrow and incur a steadily growing volume of debt. Besides, if these surpluses were. to widen, the burden of financing the might become "simply unmanageable," as Chairman Arthur Burns recently told the Congressional Joint Economic Committee. Such a situation could develop if world oil prices remained'at current high levels, if consuming nations maintained their recent rates of growth in energy consumption and production, and if OPEC nations failed to expand their imports.. .' . Walter Levy, the influential petroleum consultant, argues that the only way out of the dilemma is. for the consuming nations to prevent- their from increasing over this decade, by adopting conservation practices approaching austerity as well as developing their own indigenous resources to the maximum. He argues further that greater efforts should be made to persuade the nations to expand their purchases of capital and consumer goods, as well as their economic assistance to developing countries, sufficiently to offset the rising cost of oil exports. In sum, it would appear that the main short-ru- n problem involves financing the oil deficits, while the main long-ru-n problem entails adjusting to the higher price of oil through reduced oil consumption. A practical problem confronting the consuming countries especially those already in financial difficulties is whether should to begin they adjust by reducing consumption today, or whether they should continue to import large volumes of oil by financing thedeficits. st it - Because its SALT LAKE CITY pipeline gas supply sources, principally Northwest Pipeline Corporation of Salt Lake City, Utah, have again sought federal regulatory permission to raise the price of gas sold to Mountain Fuel Supply Company, Mountain Fuel has been forced to seek still another increase in natural gas rates from the Utah Public Service Com- relinquish," Mr. Kastler said. "Consequently, we must pay the increased price or lose the gas we need to serve our customers," he added;. The October 2 and November 1 increases amount collectively to $5,661,415, the December 1 increase $1,971,626, and the January 1, 1975, increase $801,052, aggregating a total of $8,434,093, of which $7,198,508 is allocable to Utah and $1,235,585 to mission. When effective, the new rates for Wyoming. Northwest Pipeline Corporation will Mr. Kastler emphasized the Mouninof rate five to the number tain Fuel increase is simply to offset bring creases it has received from the Fedthe pipeline supplier increases, and eral Power Commission since January pointed out that nq increase in profits 1, 1974. The current increase to Mounwhatever was involved. He expressed tain Fuel' amounts to well over the hope that the Mountain Fuel $8,000,000 on an annual basis. application could be processed Mountain Fuel has applied to the promptly, noting that the time lag Utah Public Service Commission to between the dates when increases increase its rates by the exact amount must be paid by Mountain Fuel and of the pipeline suppliers' increases to when they are recovered in its rates the Utah service area, which amount cause $3V4 million of losses to the to $7,198,508 on an annual basis, and utility company so far in 1974. These has proposed the increase be allocated losses will increase by about $15,000 to all current rate schedules uniformly per day due to the current increases on the basis of gas use at 5.249 cents until the Company, is permitted to per thousand cubic feet (except in the again increase its Utah rates. Roosevelt, Myton, and Duchesne area where rates will be slightly higher). This will result in an average monthly increase of 79 cents for the typical residential customer in Utah. B. Z. Kastler, president of Mountain Fuel Supply Company, stated that the Company is deeply concerned that it must file for still another in- Supreme Court Decisions crease in its rates to its Utah users, but noted that when the FPC permits the higher pipeline rates the Company has no alternative other than losing the supply concerned. "Natural gas is presently in scarce supply in many areas of the country, and companies from these areas are ready and willing to buy any gas we III See details page 10 New Shopping Center Planned ;vtl7ii8!r?r ....... - vr. Yvonne Levy, William Burke KayeAoki The National Association of Legal Secretaries, (International) will again sponsor a Scholarship Award Contest for qualified applicants, with special emphasis on prospective legal secretaries, and on the basis of merit, ability and need. A $1500 cash grant will be awarded to each of three winners. To qualify as an applicant he or she must be a high school senior, have at least a "B" average, and be in need of financial assistance. Candidates' applications will be submitted from each chapter of the National Association to the NALS Scholarship Chairman, Mrs. Kaye Aoki, PLS, a former President of the Salt Lake Legal Secretaries Association. Mrs. Aoki was recently appointed to this position by the National President, Mrs. Barbara G. Bumstead. Selection of five finalists will be made by three judges, all from Salt Lake City, to include one educator, one judge or lawyer, and one civic leader. The NALS Board of Directors will select the three winners by ballot, and announcement will be made at the April Board meeting to be held in Minot. North Dakota. in This Issue: Legals Probate New Partnerships Bankruptcies ; Births Suits 2 3 3 3 3 5 Divorces 8 Marriages Building Permits Bountiful Power Water Service Third District Court . . Supreme Court Decisions Murray Power Murray City Court New Corporations Bankruptcy Sale 8 8 8 Uniform Commercial Code Filings Tax Liens Trust Deeds Warranty Deeds Supreme Court Calendar Quit Claim Deeds Mortgages Business Licenses Liens 9-1- Artist rendering of Hillside Plaza Shopping Center at 70th South and 23rd East in Salt Lake City, Utah. 2 9 10 12 12 13 13 14 14 15 .15 15 16 16 16 16 J A new neighborhood shopping cen- ter has .been announced at 70th South and 23rd East in Salt Lake City. According to Layton Ott, partner in the project, it will be named Hillside Plaza Shopping Center. It will feature a Skaggs Drug Center, Safeway and a major Home Improvement Center and will encompass approximately 150,000 total square feet of retail space at an estimated cost of $3li million when completed. According to the owners, David M. Home,. Lay ton P. Ott, Paul W. and Robert L. Mendenhall, all of Salt Lake City, and John H. Reininga, Jr. of San Franicsco, Hillside Plaza will be a rustic style center, designed by Holland and Pasker, Architects, and highlighted by a beautifully landscaped plaza area. It will be the only shopping center of this size and quality within its trade area of 62,500 people. Home Construction Corporation, the contractor, plans to start construction immediately with completion scheduled for summer 1975. The project is being financed through a Utah bank and an insurance company. town-and-count- ry |