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Show v UNIVERSITY OF UTW Serials Order Dept. University of Utah SLC,Utah m 84112 SERIALS II f 111 XiViTTpwwfcii VOLUME Salt 1, ,, iMMMaMMMMMMMMMMMMMM liiiu wTiTimi mm TSay w nil mm n iiniitiiuTiiiir The Civilian Labor Force in the Salt County Area now total 249,500 person, a level 2,200 penoni (0.9 percent) above Lake-Tooe- le November of this year and 14300 pertoiu (63 percent) above December of lait year. Some of the labor force growth from hut month atenn from penoni who are seek- ing jobs through the holiday season and then will return to other areas of endeavor (retirement, school, housekeeping). Some of the growth, however, comes from a growing population and a growing number of people seeking long-teremployment opportunities. labor force The growth is unusually large, being well above the fifteen-yea- r average and it, too reflects a growing population needing a growing number of Jobs. Total Individuals Employed at this time number 236,000 persons, up from Novmeber by 1,600 (0.7 percent) and up from December, 1973, by 13,900 persons (6.3 percent). The Job growth from last year is very good and well above the fifteen-yea- r average. The Job Increase from last month seems to be almost all holiday season hiring. The increase from last year seems to be both a continuation of the m over-the-ye- ar Mountain Fuel Seeks Yet Another Rate Increase good economic growth experienced full-tim- .3 mal. ii,, inn " ; ORCLR .,. ..7... ". " . PfP. v,.,. , . .... .. ..... i dollar-for-doll- ComiHiny's Wyoming service. arc cognisant that cost increases urn subhe continued, "we must stantial," either pay the higher costs or lose the present the gas supply. Under the existing supply situation, it would not lie in the public interest for us to lose any of the gas we now have." The Federal Reserve this month submitted to Congress the Foreign Bank Act of 1974 legislation that would extend Federal regulation to all foreign banks operating Inside the United States, Foreign banks at present are primarily subject to state (not Federal) regulation, with the state controlling entry and specifying the rights of such organizations. In some states, entry is prohibited; but in others, foreign banks have been able to develop significant operations which extend across state lines. There are now 60 foreign banks with domestic assets of $38 billion operating in the United States. It Is believed this sector is now large enough that foreign banks' rights should be brought into line with those of domestic banks. The ob MONDAY, DECEMBER 30, 1974 MINING employment numbers 6300 jobs, the same level as recorded in November but 400 jobs (6.1 percent) more than were counted in December of 1973. The no change from last month is not quite as good as the average has shown but the growth from last year is very good when compared to the experience of the past fifteen CONSTRUCTION employment has dropped to 12,900 jobs at this time from the 14,000 job level h of last month. The drop is a job loss of 1,100 percent), which is about normal for this time of year, ment in this industry also dropped from December of last year by 100 Jobs percent). This Job drop is in sharp contrast to the fifteen-yea- r average and seems to indicate that inflation and high costs are having an adverse effect upon employment. TRANSPORTATION - COMMUNICATIONS - UTILITIES 0 employment has moved up to jobs for the month which puts it 100 jobs (0.6 percent) above November and 300 jobs (1.8 percent) above December a year ago. The job increase from last month is in contrast to the fifteen-yea- r average and very welcome. The Job increase from last year is very close to the average but well below the growth of the last two years. TRADE employment numbers 66300 jobs at this time, putting it 1300 jobs (2.0 percent) above last month and 4300 jobs (7.3 percent) above last year. The growth from last month is a little low avcompared to the fifteen-yea- r last from The erage. job growth year is both above the fifteen-yea- r average and on a par with the past two years which were themselves good years for this Industry. FINANCE - INSURANCE REAL ESTATE employment at 14,200 jobs remains at the November level and is up 500 jobs (3.8 percent) from December, 1973. The month ago comparison is not very good in terms of the long-teraverage, but the year-ag- o comparison is a little better, putting the growth on the average. SERVICE - NONPROFIT MISCELLANEOUS employment now stands at 42,000 jobs, the same level reached in November but 2300 jobs (7.2 percent) up from the December, 1973, figure. h growth in this inthe off is average but dustry growth Is still doing well, being somewhat above the fifteen-yeaverage. GOVERNMENT employment at 47,700 jobs is 300 jobs (0.6 percent above last month and 1300 jobs (2.1 percent) above last year. Federal employment numbers jobs, up 300 (2.6 percent) from butt month and up 200 johs (1.5 percent) from last year. State employment totals 16300 jobs. .9 .1 year-to-ye- ar 17,-60- -- m Month-to-mont- year-to-ye- ar ar 11,-1)- m Eubank Insurance Signs Agreement With MGIC MGIC Indemnity Corporation has signed an agreement with Eubank Insurance & BondsFred S. James & Co. of Utah giving the agency exclusive right to offer MGIC's directors and officers liability insurance to banks and bank holding companies in the Intermountaln area. The announcement was made by Charles S. Eubank, C.P.C.U., President of Fred. S. James & Co. of Utah and Arthur B. Barnard, National Director of Marketing for MGIC Indemnity, a wholly-owne- d subsidiary of MGIC Investment Corporation, ranks among the top three providers of personal liability insurance of financial institution directors and officers. The company has written policies on 20,000 directors and officers since entering the field in 1970. The program Is comparable to malpractice insurance for doctors and lawyers. The protection pays for legal costs, Judgments and settlements resulting from lawsuits brought against Board of Directors by depositors, borrowers, and stockholders. The EubankJames firm Is headquartered in Salt Lake City and has a full staff office in Ogden. It is a subsidiary of Fred S. James & Co., which was established in 1858 and has offices in 80 cities in the U.S. and Overseas. Risk Management services are provided for ouer 3,000 clients in the Intermountaln area in over 116 lines of insurance and bonds. Almost, all of the 14,533 commercial banks in the United States know that directors and officers liability insurance is available, according to a recent nationwide survey by MGIC Indemnity. Just over 6,000 of the respondents said thnt they carry the protection for their directors. "The most commonly Insured banks have assets In excess of $50 million, where the exposure to loss among bank officials in the greatest," said Eubank. subsidicontrolling ary banks. These banks must register as bank holding companies with the Federal Reserve System. The Bank Holding Company Act prevents bank holding companies (domestic or foreign) from acquirbanks in more ing than one state, but the Act does not cover state licensed branches state-charter- newly-charter- or agencies. Therefore, foreign banks can form branches or agencies in more than one state. Since Salt Palace Calendar of Events Date 2 2-- Event CHL Hockey S. L Golden Eagles vs. Denver Spurs ABA Basketba- llUtah Stars vs. Memphis Sounds Utah Mink Show 1 4 3 Facility Arena Arena Exhibit Hall CHL Hockey S. L. Golden Eagles vs. Seattle Totems ABA Basketba- llUtah Stars vs. Indiana Pacers ABA Basketba- ll- 4 m years. ject of the proposed legislation is to establish Federal control on the basis of nondiscriminatory national treatment, with foreign and dorems-ti- c banks having substantially the same rights and privileges. Extending Control At present, the only foreign banks under Federal regulation are those these offices may make loans and On the case of branches) accept domestic deposits, they can be used to develop a multi-stat- e banking network of the type denied to domestic banking organizations. The proposed legislation would redefine "bank" to bring foreign branches and agencies under the Holding Company Act. This means that foreign banks would not be able to expand their banking business across state lines. However, the Act would permit interstate bank acquisitions if an individual state's law specifically allows such entry a significant provision for domestic as well as foreign banks, since California and New York have been considering legislation to permit a limited number of acbank quisitions by holding te month-to-mont- SALT LAKE CITY A Federal Power Commission opinion of December 4, 1974, which directly and indirectly has substantially increased the cost of natural gas at the wellhead, has forced Mountain Fuel Supply Company to file an application with the Utah Public Service Commission for a rate increase of $6,848,665 annually. The Company proposes that the increase take effect March 1, 1975. In its application, filed Thursday, the Company said the requested increase will not result in higher profits but will simply offthe higher set costs the FPC has decreed Mountain Fuel must pay to producers, pipeline companies and royalty owners for the natural gas it purchases from these sources. The Company has proposed that the increase in rates be allocated uniformly to all classes of service. Under the new proposed rati, the average residential customer's bill will increase by about 81 cents per month, except in the Roosevelt-Duchesne area where rates are slightly higher. The FPC opinion (No. 699-H- ) of December 4 increased, on a nationwide basis, the base price of natural gas from wells commenced on or after January 1, 1973, from 42 cents per Mcf (thousand cubic feet) to 50 cents ier Mcf, and provided for annual escalations of one cent per Mcf and other adjustments. The opinion further provides that the taso price for gas produced in the Rocky Mountain area from wells under contract on and after Octoler 1, 1968, but prior to January 1, 1973, shnll Iw 35 cents per Mcf. (The price Mountain Fuel has been paying for gas from this area is 23.75 cents per Mcf or lower.) B. Z. Kastler, Mountain Fuel president, said the higher costs authorized by the FPC opinion would make it necessary for the Comny to file a rate increase application in Wyoming to recover tliat portion of the higher costs which are allocable to the down from November by 200 percent) but up 200 jobs (1.4 percent) from 1973. Local government employment totals 19300 jobs, 200 more (1.1 percent) than last month and 600 jobs (3.0 percent) more than last year. UNEMPLOYMENT The number of persons now unemployed numbers 13,500, 900 more persons (7.1 percent) than was reported in November and 900 persons (7.1 percent) more than were unemployed in December of 1973. The increase in numbers of persons from November is below the fifteen-yea- r average but the increase from last year is above the average. As has been noted in many of the above comments, employment through job layoffs or through not picking up the slack in a growing labor force. A check of the claims for unemployment insurance being filed by persons against other states (they worked in another state then moved here after layoff) shows a dramatic rise almost a 50 percent rise. claims are also on the rise but only by about 17 percent OUTLOOK Unemployment is moving up as it has done most of the year and will continue to do so into next year. Employment is doing quite well in the area as it has for much of the year and it too should continue to grow on a long-terbasis, although there are and will be some seasonal drops. Overall we can expect to continue to experience fairly high unemployment Long-terjob growth is slowing because of national influence but should continue quite good, based on current local stimulus. .2 all year long and a situation occurring last year brought about by the enery crisis. PAYROLL employment totals 244,900 Jobs at this time. This ine cludes all and part-tim- e Jobs in the area and counts all Jobs even though one person may hold more than one Job or a person may only be working part time or on a temporary Job. This total Is up from last month by 500 Jobs (0.2 percent) and up from last year by 11,600 jobs (5.0 percent). The Job increase from November is not quite as good as the fifteen-yea- r average but the increase from last year is a little better than the fifteen-year average. MANUFACTURING employment now stands at 36,900 jobs, 100 percent) below a month but 2,200 jobs (6.3 percent) ago above last year at this time. The job drop from last month is normal for this time of year and the size of the drop is also about nor- vri Federal Reserve Moves to Extend Jurisdiction Over Foreign Banks County Area County Labor Force Increases By 6.3 Percent In 1974 wo IXmuji " '? SALT LAKE CITY, UTAH NUMBER 38 Lake-Tooe- le "While ,, , 1 L.IIM DillUI LIBRARIES 6 Utah Stars vs. San Antonio Spurs 7 Arena Arena Arena CHL Hockey S. L. Golden Eagles vs. Omaha Knights Arena 10 Tanya Tucker Show Admission:' $4.50 - $5.00 - $530 Arena 10 ABA 10 13-1- 4 14 15 Stars vs. Kentucky Colonels National Association of Dance & Affiliated Artists Workshop Harlem Globetrotters Admission: $3.00 - $4.00 - $5.00 Utah Education Association Banquet and Film Presentation CHL Hockey S. L Golden Eagles vs. Tulsa Oilers ABA Basketba- ll- 16 17 17-1- Basketball-U- tah 9 18 18 21 21 23 24 Utah Stars vs. Denver Nuggets CHL Hockey S. L. Golden Eagles vs. Ft. Worth Texana Sixth Annual International Custom and New Motorcycles Show ABA Basketba- llUtah Stars vs. Indiana Pacers Cummins Diesel Employees Credit Union Dinner and Meetings U. S. Dept. of Interior Fish and Wildlife Service Meeting CHL Hockey S. L Golden Eagles vs. Tulsa Oilers CHL Hockey S. L Golden Eagles vs. Seattle Totems ABA Basketba- ll- Utah Stars vs. Denver Nuggets 25 27 30 31 CHL Hockey S. L. Golden Eagles vs. Denver Spurs CHL Hockey S. L Golden Eagles vs. Dallas Blackhawks ABA Basketba- llUtah Stars vs. San Antonio Spurs CHL Hockey S. L Golden Eagles vs. Ft. Worth Texans CHL TICKET PRICES: ABA TICKET PRICES: Arena Arena Arena companies. At the same time, foreign banks would obtain certain advantages by being brought under the Holding Company Act, They would then be able to enter approved nonbanking fields leasing, mortgage banking, and so on to which interstate barriers do not apply. Domestic bank holding companies have been able to build up their nonbanking business in recent years, and foreign banks would be able to do the same under the proposed legislation. Federal Licensing The Foreign Bank Act would require all foreign banking organizations in the future to obtain licenses from the Comptroller of the Currency, no mater whether they plan to operate under state or Federal law. Before granting a license, the Comptroller would consult with the Federal Reserve Board of Governorsand also with the Secretary of State, in order to ensure the coordination of domestic banking policy with foreign policy. Other changes would facilitate d the operation for foreign-controlle- Salt Palace Suites Arena Arena Arena Exhibit Hall Arena Salt Palace Suite A Little Theatre Arena Arena Arena Arena Arena Arena Arena 0 Federally chartered, bank subisidi-arie- s and branches. Currently almost all foreign bank subsidiaries have state charters because of certain restrictive provisions of the National Bank Act. The new law, by permitting foreign citizens to serve as directors of national banks, would make national charters a feasible alternative to state charters. A separate provisions would allow foreign banks for the first time to open Federal branches. This provision is important because the lending limits of a branch would, be based on the size of the foreign parent bank, whereas the lending limits of a subsidiary bank are determined by the (much smaller) corporate capital and surplus of the subsidiary. Approval of applications for National-bank charters or Federal branch licenses would rest with the Comptroller of the Currency, the supervising agency for National banks. Meanwhile, applications for mergers and acquisitions within each state would continue to be de termincd by state law, as is the case with domestic banks. In a branch-bankin- g state such as Cali- d bank fornia, a thus could branch freely, but In a state such as Illinois, it would be limited to the single location permitted local banks. The proposed Foreign Bank Act pre-laor business as their major. An- allows foreign banks to keep all their existing branches, agencies and other 25 percent are undecided. that is, they will have But the professional and business subsidiaries; "grandfather rights." Future acquischools are unable to accomodate sitions would be limited to each all of the qualified applicants. bank's principal state of operations, This year we are turning away although mergers and branching of good students," says Joyce Thorson grandfathered offices in other states director of graduate would be permitted in accordance assistant studies in the College of Business with state banking law. GrandMBA program. fathering of existing operations is foreign-controlle- U off U Students Would Rather Switch Than Fight unit-banki- In sharp contrast to the activism of the late '60s, today's University of Utah student would rather switch than fight. Battered by predictions of an Job market, students are flocking to business and professional schools in unprecedented numbers-ev- en though their interests may lie in other fields. The result is fierce grade competition and tighter academic standconsistent with past legards. "It is an extremely difficult job generally islative practice and conforms to "A more serious student is market this year-- as difficult as it's treaties of foreign comemerging from the University," exbeen for a long time," says Beth existing merce. Liberal grandfather rights plains Dr. James Pappas, director director of Placement do not of the center for academic advising. Summerhays, change the main goal of an dthe Career Information Center. the proposed legislation, which is economic is situation the The key "But our long range information to ensure that the same rules govelement." shows that well trained, high qualdomestic-ban- k ern both foreign-ban- k More than half the incoming ity people will always be able to expansion within this freshmen have listed find a Job." ever-tighteni- e, Other Proposals Under the Federal Reserve proposal, foreign banks would be able to form Edge Act corporations for international - trade purposes in more than one state. This privilege is already available to domestic U.S. banks, and it would benefit the foreign banks In view of their expertise in financing international trade. Foreign branches and agencies also would be able to obtain FDIC insurance coverage on their de- -, posits, thus permitting them to compete on an equal basis for domestic business. But at the same time, Federal Reserve membership would be required for all foreign banks whose worldwide assets are greater than $500 million. The foreign banks already operating here are generally banks of the size where an equivalent domestic bank, would be a member. This requirement would put the foreign banks on an equal footing with domestic banks, and more importantly, would ensure that their future growth takes place under the effective monetary control of the Federal Reserve System. In the sum, the Foreign Bank Act of 1974 establishes a principle of equal or nondiscriminatory treatment for foreign and domestic banks, so that both groups would have similar powers and privileges. The bill would probably have little immediate impact on domestic operations. Most foreigactivities are located in New York and California, and to a smaller extent in Chicago. Moreover, foreign banks would continue to emphasize international banking, essentially in the same locations where they are now operat- ; ' -banking n-banking ing. , In the future, foreign banks would operate within the same regulatory framework which governs the activities of domestic banks. The growth of foreign banks in the U.S. market would then depend upon their relative competitive skills, and not upon regulatory advantages. Internationally, the Foreign Bank Act would serve as a model for nondiscriminatory treatment of U.S. banks, thus encouraging the growth of international-bankin- g competition. Robert Johnston IMaughton Power Plant Sustains $1 Million In Damages Utah Power & Light Co. today disclosed it may take six months and about one million dollars to repair the damage occurred Nov. 28 to one of its Naughton steam-electrhigh pressure turbines. (Three-quarter- s of the damage is carried by insurance.) The utility said the damage was caused by a mechanical failure in the 330,000 kilowatt turbine at the company's Naughton third unit located near Kemmerer, in south- western Wyoming. John Anderson, UP&L senior vice president, said despite the failure of the third unit of the Naughton Plant the company expects to provide an adequate supply of electricity for all its firm customers. However, he said, sortie of the utility's large industrial customers, served from the company's reserve capacity on an basis, may hot get all the power they need until the damaged unit is operable. He added that the older plants which provide reserve capacity are not as efficient as the damaged Naughton Plant unit, thus costing more to generate power using these older units. Another consideration, he said, is tlte fact that it costs more to purchase power, when availuble, from interconnected neighboring utilities. ic |