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Show V i Business Outlook V 4f A V Hot Economy Faces ,tt ' s-- ; .Crucial Decisions "" - iin m rm V In Next Few Weeks -- By Thomas E. Mullaney New York Times W psychological nsk of pushing their key business-leadinrate to an unprecedented 10 percent level And the negotiators in the Chrysler wage bargaining are up against a Sept. 14 deadline W ill there be a settlement involving a higher pattern than the 6 percent to 7 percent range that has prevailed m other industries, or will theie be a strike m this key indus- With the Labor Day NEW YORK pole passed, the nations economy has entered the hom stretch of the year in still high gear barreling along too f-fast and too reck- lessly. Now it faces some very difficult the in footing " months ,emainmg 1973 and probaof bly into the early 1 part of next year. N ' r - ';' L" In Washington the Cost of Living Council removed the meat price freeze six Says early; scaled back the pending auto price increases by 10 to 30 percent, obtained a temporary suspension on gaso-1-n- e and oil pnce increases pending hearings next week and set heanngs in the later part of the month on applications for higher prices on tires, soap and paper. Action is expected Monday on the pending steel pnce increases. In key upcoming decisions in the busi- - Fiat Complains Auto Plants Output Bogged - Fiat its , The TURIN, ITALY (AP) automobile company says production is at a standstill and its plants underused. It asked unions to b.ack at least a 10 percent increase in production ' o -- This NL Industries, Inc., plant at Rowley produces primary and alloy magnesium ingot By Robert H. W oody Tribune Business Editor For metal users, the anticipation of a second supplier of magnesium has been Persistent, excessively high inflation seems to be a greater danger than the short-liverecession that so many economists are feanng The major problem in this period up to the middle of next year may well be under production, not over- nty of two suppliers over the relatively of a uncertainty single supplier equal to the anticipation wealth. f For f f single source, for k. Mr. Woody all practical pur- Co. Dow Chemical Dow been has poses, has been m the business since the Twenties and accounts for about half the worlds estimated annual production of 250,000 tons of the lightweight metal. The Great Hope is NL Industries Inc. (formerly National Lead Co.) which has been warming up fur competitive entry into the market not only against Dows magnesium but other metal applications. Its contender s a multiimllion-dolla- r evaporation ponds and processing plant complex on a barren stretch on the western shores of Great Salt Lake at Rowley m Tooele County. Start Delayed The plant was to have been m full production a year ago. Unfortunately, because of technical problems, the start has been delayed. It is now producing and marketing metal and chlorine, and expectations are that the plant will be pretty well into its projected 45,000-toyeaily production of magnesium by the end of the year, according to an NL Industries Magnesium Division executive. The most visible application of is m lawnmnwer and chain saw casings. The most notable application is m the engine blocks of the Volkswagen, which accounts for 20 percent of the worlds production. Legend has it that Hitler had ordered magnesium used because it was a prime German product of the time. Now, Detroit, which could have cared less about weight three years ago faces with the necessity of loading 200 to 300 anti- pounds of TECHNICAL NEED A BUILDING? JVu's UK Si STOCX OF USED SURRIUS DRIVE UNE REPAIR FARTS. YOURS. UXGTHEN SHORTTN BALANCE. BUICK. CADILLAC Call WW, DRIVE SPECIALISTS 266-31-63 name leaving and phone no. and upon presentation of evidence of purchase for review by our office, you may be eligible for a cash refund. 486-076- 5 NIGHTS Diesel-Powere- CAPITOL INDUSTRIES, QUALITY Monarch Motor Home. It's American ingenuity. It's the motor home for those who want in engineering, styling, and comfort. Built on a Mercedes-Ben- z chassis, Monarch is the first diesel-powere- d motorhome to go ii ito series production in the United States, and will go 1 5 to 1 7 mpg on low cost diesel fuels. 7. auellent UKK fORCE. high quality, low cost, lull right TRANSPORTATION: mainline Burlington laws, good supply Northern Frontier Airlines mayr U S hiway TAXES. No iiwxne taws, no inventory taxes, low property taws OPPORTUNITIES Casper, Wyo. 82601 FADUL0US RECREATIONAL WI0C P. 0. Box 612 NL has kept close propnetary wraps on its project and understandably since others have coveted the lake brines as well. Indeed, Dow had proposed a plant for Dallesport, Wash., using a raw product provided by Great Salt Lake Minerals and Chemical Co. front bnnes it draws from the north end of Great Salt Lake. Dow, however, has shelved that plant concept and there is no present indication it will do anything in the near future. Alcoa recently announced it will build a plant m the northwest in which it will recover magnesium by the reduction of dolomite. NL Industnes, of course, bases its source upon the content of Great Salt Lake bnnes. We Lease All Makes & Models 5716 So. State, Murray, Ut. 262-741- KEN GARFf 525 So. State A x Ph. 521-660- w- 1a JOE VIOLA M It All Together Weve And QaU It Specializing in: 4 Q LONDON COMMODITIES: 1-D- 1 AY -- PRICE IS A PROMISE AT STORE FIXTURES RICK WARNER FORD Automatic Transmission Rebuild 25350 and gondolas for sale transmission service Is a sure thing at Rick Warner Ford-- in tact, cars in by 10 00 a m. will be out by 6 00 p m the same day. service for most domestic Ford products includes all parts and 'abor except torque converter, it needed guaranteed 4.000 miles or ags.ns' all defects in parts or workmanship II your transmission needs only minor adjustment, you pay only the tune-u- p price shown below- - ,One-d'- . T "1 London Commodity Options, Ltd. INC. Romney store at 2155 So. Orchard Drive, Bountiful. Store will be open Thurs. 9 a.m. Sept. 13th to 3 p.m. 1. l'ngMgr. When yon step into Monarch, you are immediately surrounded by a new measure of motorhome luxury. Everything, from the ll to toe rich woodtone panelled walls shag tells you that this smoothness, a remarkable steadiness of ride provided by an advance-engineere- d suspension system, and the marvelous quiet which is a joy to eveiy Monarch driver. For additional information, write, phone, or come to . to BBWTN CENTER agncultural community wdh area pop et 12,500 boasts mild climate, all services. schools, J college, clean air, no congestion, dry, full-tim- e d MOTOR HOME NEAR YELLOWSTONE PARK vdtsN multi-millio- T A straight position in the commodity futures market characterized by a low premium, high nsk, high reward potential. TRANSMISSION SERVICE . ponds for which it is paying about $108,000 yearly m royalties once the plant gets into production, consuming about 180,000 tons of magnesium chloride yearly. The royalties are deceptive as a measure of economic impacj in Utah, Mr. Hansen pointed out. For they do not take into account the property taxes generated by the plant nor the effect of payroll of the 250 workers nor the construction force that peaked to 900 dunng erection of the plant. Wraps on Project and Moto Roam Mercedes-Ben- z FOR LEASE Reasonable rentnt rates large yard area Rail siding evaporation market. 940 W. 21st South, Salt lake . I the state about $35,000 yearly as an advance against royalties. Charles Hansen, director of the State Land Board, said the state can expect Pioblems of Sulfur 278-16- Call Mr at old I - v IMPORTS We provide site, plans & budding For lease or Sale 4 72 a acres from the state for the siting of its but increasStill another invisible application is the use ingly important of magnesium in the desulfurization of steel. d Plant URGE ' n p Warehouse Customers. Have you purchased Mat'l. for cash from us and between ft ' Lt lar holding pond. Plant officials say pro-- duction is nearing 45,000-toyearly quota. Lack of good coking coal has inAnd why shouldnt they, he asks? Not creased the sulfur content of steel produced by the modem basic oxygen proconly is there the potential of millions ujion millions of tons of the metal from ess, he pointed out. Formerly, the sulfur the Great Salt Lake but a virtually inex- could be removed in the open hearth haustible supply from the ocean. process. There are m each cubic mile of ocean Impregnation of coking coal with water about 6 5 million tons of magnesimagnesium or introduction of magnes um So fai, Dow has yet to go through d scrap steel into molten steel at its Freeport, removes the sulfur which is captured as its first cubic mile Tex., plant, says Mr. Brown inert magnesium sulfide m the slag. To Expand Use The concern for sulfur content is not one of pollution but rather of preserving has is and the it Whatever, feeung structural integrity of the steel which is often been expressed at industry meetthat once a second source of adversely affected by any sulfur content. ings n the magnesium has been certified A recent issue of the Value Line surU.S., use and applications of the metal vey succinctly sums up the Magnesium will be expanded considerably, says Joe Divisions problems. It notes: Rosenbaum, director of the Metallurgy start-ucosts at the new Research Center of the U.S. Bureau of $90 million was formerly represented (it Mines m Salt Lake City. as a $72 million investment) Utah plant The new applications will not neceshave been burdening NLs income account all year. Having peaked in the sarily be visible. A Magnesium Division marketing exMarch quarter, however, these costs are ecutive notes that one of the greatest decreasing progressively as production uses is in the alloying of aluminum. It increases. also has application as reagent for the To Get Royalties production of titanium anJ zirconium of course, is eagerly The production, which are used as motor oil additives' awaited by the State of Utah since it has The alloying application has particular agreements with NL for the payment of promise in view of the need for cyrogen-i- c royalties for use of the brines of the containers to transport liquefied natuGreat Salt Lake. ral gas from foreign sources to the U.S, So far, NL is leasing about 75,000 Office Cash Refund for some Cash used in typewriters, lawnmowers and other products. In foreground is plants circu- - n (Copyright) IntHmantain Drive Eidiisi I pollution devices on its automobiles, is taking a hard look at applications of the strong, lightweight metal, says Robert E. Brown, executive secretary of International Magnesium Assn , Seima, Ala. Millions of Tons mag-nesi- RESEARCH CO. 1 mm-coate- For years that . . of overnight would I mean the metal dustry would have the relative certai- - production. The recent past has been a most difficult period in the nations economic history. The catalog of horrors is headed by the surge in the various pnce indexes, the most recent of which was Fridays report that the wholesale pnce index jumped by 5 8 percent (and food by an astonishing 23.1 percent) in August. Although there have been some recent sharp declines in certain farm products, the prospect is for continued increases in that barometer and in consumer pnees for some months to'eome. problem. it in- - In the We of all that, however, the economy has been kept at a boiling level by the huge demands for Amencan goods and services at home and abroad. This has pushed production, incomes and employment along a nsing path. It has also spurred an explosion in business capital spending, now rising at a 13 percent annual rate to a new peak around $100 billion for this'year and due to expand by another 14 percent or so next year. Fiat makes more 'ban 50 percent of the autos in Chile. Company officials there would not elaborate on why the firm had decided to leave the country. Fiat has completed its work plan and will leave Chile, a spokesman said ,000 t Lake Magnesium Production Nears The sharp slowdown needed to cool the inflationary climate has simply not developed. Oiltside of homebuilding and areas related to it, there is very little evidence of contraction. Order backlogs are exceptionally heavy in many lines and capital spending is particularly strong. Inflation Danger energy The Chilean government, meanwhile, has said Fiat will abandon its assembly plant in that country next year. The government said the plant, which employs 1,500 people, will be taken over by Nisan Motors of Japan. - V Ito Qtroot I In snH rifiv.T! a v ff it tA&w picture, of course, have been the surge m interest rates for business and con-- , sumers, which have squeezed the thnft institutions so severely; soearing meat and other food pnees; gasoline shortages and the whole national and international want to examine with you ways of further utilizing the plants to meet the urgency of this situation, and to insure Fiat said the survival of the company, in its message to unions. Srce v i Several forecasters have recently indicated their expectation that the consumer price level will nse at more than a 6 percent rate next year after an average 1973. gain of about 5.7 percent for Other adverse elements in the recent We available in NW Wyoming Industrial complen to 18.000 sq n lanuladurers Buildup -4440 truck scales gas -I - Adverse Elements Fiat said domestic and foreign sales had dropped and its factory was unable to meet rising consumer demand despite increased investments, automation and manpower. Production is lagging about 500,000 units behind capacity, the company said. Lake City, Utah, Phone k ?,! d Page 13 328-466- , ' 4 v, hamper output Sunday Morning, September 9, 1973 details visit or phone any mortgage loan counselor at Prudential Federal Savings, 155 East 33rd South, Salt ji - v Continues Vigorous It has continued more vigorous than most analysts had expected and stronger than the numbers m the Gross National product accounts might suggest. Its thrust might have been even more forceful had there not been various shortages of materials and other bottlenecks to 1k$incss equity - - 4', - I' To be sure, the h edits along the way were substantia! and disruptive, offsetting the push provided by the helpful winds of a powerful economy. After its significant slowdown in the second quarter, the economy seems to have picked up speed again dunng the summer months friimtu If youve sold your home on a real estate contract, you can convert that contract into cash. For full v T , - .,(- Many Rough Spots In retrospect, the fading summer of 73 will be remembered for the numerous rough spots along its economic course rather than the progress that was made. m FOR CONTRACTS! 5 . Meanwhde the Nixon administration itself must decide whether there should be some alterations m its economic policies to cope with rampaging and accelerating inflation. L fin InJ ' . try? Indeed, the next Mr. Mullaney weeks may he crucial. Some momentous decisions were taken late this week, and some others majlbe at hand. Section D ' -- tot g r p 1' ness world, the nation's banks will have to determme whether they will take the nter automatic -n- ric- P prtc option mi a commodity contract offering limited risk, unlimited prot-- t potential. SILVER BULLION Purchase for possession silver bullion in 10 oz., 100 ox. end 1000 oz. ingots. 24 Hour Delivery Locally 24 FOUR COMMODITY dorantle Report and Additional Information Call or Write LfonDou (fommoDitti f1 CSS I (Stytfott, Vti). 501 East 1700 South Salt Lake City. Utah 84105 Phone (801)486-843- -- t- icaMo lo rabulid QUOTE SERVICE For Brochure Weekly Commodity and INSPECTION lor moot ford produc- An y TRA 'SMISSION TUNE-U- COMMODITY OPTION co- -t Can 521-385- 0. for appointment 6 Telex 6th South Freeway Exit West Temple to Main T 0" b 389-42- 7 |