The Salt Lake Tribune from Salt Lake City, Utah • Page 111

Up and Down the Street Mr. Woody By Robert H. Woody Tribune Business Editor Never underestimate the power of the consumer movement for better or for worse says Archie Rae McFarland. Last April, the Department of Agriculture said it would allow on interim basis an increase from a haJf percent to up to one percent in (he amount of bone a packer could have put in meat products. What was involved was not "hard" bone materia! us laymen might believe, but rather bone material that was highly soluble.

Federal Register However, the regulation was published in the Federal Register, the pi-ess picked it up, and the public was suddenly indulging visions of bone fragments in their hot dogs an image nearly as repugnant as that of finding rodent pellets or hair in one's deviled ham. Mr. McFarland is president of Bee- hivu Machinery, Sandy. Beehive claims to be the "world's largest manufacturer of deboning machines." Packers use deboning machines to get the last bit of scrap from carcass remains whether beef, fish or fowl. They look like mechanized and highiy sophisticated scaled up versions of the meat grinders everyone owned in the 1930s.

But they can cost $300,000 or more each. Go in Hopper Bones go In a hopper. They are squeezed under high pressure by an auger. The bone residue is extruded from one end, "the meat residue from the other meat which had formerly wasted. Stocks Drop Again for Fifth Week NEW YORK the stock market, caught-up in winter-weather worries, sustained its fifth straight loss the start of 1977 this past week.

The Dow average of 30 industrials slipped 9.64 to 947.89, bringing its ioss since New Year's to 56.76 points. other measures the week's losses nvre less extensive. Standard Poor's 500-stock index eased .05 to 101.88, and the New Stock "Exchange composite index dipped .03 to 55.46. Big Board volume averaged 23.85 million shares a day, down from 24.83 million the week before. Analysts in Washington, on Wall Street and elsewhere were busy during the week trying to calculate the potential economic effects of abnormally cold temperatures in'the eastern half of the country.

Unanswered Questions At week's end there were still many unanswered questions, and the data by 'which, investors traditionally keep track of the economy's progress weren't much help. The- government reported a sharp drop in the unemployment rate for January, for example, but then cautioned that its figures were collected before short supplies of natural gas forced many plant closings and layoffs. Researchers generally agreed that January's figures for inflation, economic growth and corporate profits all would be adversely affected by the cold. The longer-term results, however, remained a subject of conjecture and debate. Officials Reserve Judgment Top officials in the Carter administration reserved judgement on whether the President's proposed economic- stimulus plan should be expanded because of the cold.

Wall Street, meanwhile, expressed some discomfort over what final shape the program would take. With the public in- alarm, and consumer groups leading the chorus of ptotesls the packers immediately put their deboning machines under cover or canceled orders for new ones. Beehive, with 2,000 employes', saw its U.S. sales drop drastically. By vear's end U.S.

sales were off 80 percent And with Poles, Czechs nearly 50 persons had been dropped I rom the payroll. Yet. Beehive survives. No thanks to the domestic market. -Rather, thanks to to the Soviet Union and satellites Czechoslovakia and Poland.

Though domestic sales had fallen. Beehive managed to increase its imer- mitiomt sales by 160 percent in 1976, Mr. Mel- arland said. The Poles and Czechs were absolute- in Archie Rae McFarland, president of Beehive Ma- chmery, shows component of deboning machine to members of the Utah District Export Council Sales to East Europe saved company in 1976." The reaction peaked in when a consumer suit got a judge to rule against the USDA's authorization ol the interim increase in bone contwit. After nil.

argued the Poles and if a beef carcass hanging in supermarket meal section was presumed to be tot idly edible bones and Jill bewuise of USDA what was all this hassle about bone in meat products. After all. Americans had been using bones in soup for years. Hustle Contracts It was. indeed, no big deal for UK- eastern Europeans in svho.se countries Mr.

McFarland and other Beehive officers hustled contracts. Beehive has now sold one machine for Czechoslovakia and has contracted for delivery of seven more. It is now negotiating a $5 million order from Poland. Why are Poland and Czechoslovakia hot for Beehive deboncrs. Those countries are absolutely desp- for a hard currency particularly American dollars, says Mr.

McFar- huul. Residual Meat And in a year's time a deboning machine recover residual meat that would be equivalent to 1,000 cows a year rendered conventionally. Figure! It takes about 10 pounds ol fjrain to pul pound ol" the best beef on a cuw. That's a lot of grain grow and transport, and if you're short you have to buy from someone else like the United States. Poles don't want to buy from the U.S.

If anything, they want to sell to get American dollars. So desperate are the Poles to export for currency, that their best meat product e.g. Polish hams is reserved for export, not their own consumers. Salt tribun Sunday Morning. February U.S.

Business Shivers for Another Week NEW YORK (AP) American businesses and industry have suffered through another week of painful accommodation to cold-weather hardships. Plant shutdowns continued in the East and Midwest because of natural gas shortages. As many as 1.5 million workers have been laid off, according to government estimates. And state unemployment funds were running low. New York forecast a potential new drain of more than $30 million a week if an expected 350 000 new eligibles put in for claims, and New Jersey estimated that in the past week it received 50,000 new claims more than normal, indicating additional unemployment costs of $5 million a week.

On Thursday, however, there was some indication of relief for the energy- poor East. The Federal Power Commission approved the first sale under the newly signed Emergency Natural Gas Act of 150 million cubic feet of gas daily from the western part of the country to some cities in the East by way of the Transcontinental Gas Pipeline Corp. Companies like the National Fuel Gas which supplies natural gas to many snowbound cities in New York State, say their customers may pay only 7 percent more at most for the higher priced gas from Texas and the Pacific Northwest. National Fuel said the reason was the more expensive gas wouid be a relatively minor part of the total amount of gas it sells. Switch Deliveries Heavy snow in the North Central states and upstate New York caused some industrial concerns to switch freight deliveries from surface to air transport.

Ford Motor Co. and General Motors for example, are using charter airplanes to deliver auto parts from Detroit to West Coast assembly lines. Dairy industries in northern states continued to report losses. Officials of Jefferson County in upstate New York estimated losses could reach $10.5 million from an annual dairy income of million because trucks can't get through to pick up the milk. A Pennsylvania farmer said he had to sell about $85,000 worth of milk cows for S15.000 as slaughter beef because their feed and water froze.

Meanwhile, many corporations burned by low inventories this winter are expected to stockpile propane, oil and other fuels over the next 10 months they may have to build up inventories of other vital products such as steel 'to prevent a recurrence of distribution-related shortages. In other business developments this past week: Telehone Telegraph which earned more than $1 billion in each of the last two quarters of 1976, said its earnings rose 22 percent to $3.83 billion in the calendar year against S3.15 billion in calendar 1975. Per-share earnings surged to $6.05 from $3.13 a year earlier, and revenues for the year advanced to $32.8 billion Irom $28.96 billion a year earlier. Subsidiary Recovers The nation's largest utility credited much of strong performance'to a sharp recovery at Western Electric its telephone equipment manufacturing subsidiary. earnings, under pressure in the past few years from rising fuel costs and empty plane seats, have come back sharply from the recession, an Associated Press survey said.

Analysts told The AP that earnings High Demand Forecast For Mortgage Money Lease your Olds from the people who specialize in Otdsmobiles. STARFIRES Our sporty sub-compact Olds. OMEGAS A little larger Olds. CUTLASSES Las! year's hottest selling rnode! DELTA 88s New size styling. NINETY EIGHTS Full-size TORONADO Top of trie line Olds.

KenGarff Knight News Wire A spring boom in demand on mortgage money with resulting pressures to raise interest rates has been forecast by the chief economist for the Federal Home Loan Bank Board, Donald M. Kaplan, director of research for the federal agency, says savings institutions should expect a drop off in savings inflows this year. He called last year's low interest rate situation a "one-time phenomenon" where received large portions of funds that normally would have been furmeled to speculative investments. Can Expect Drop "Thrift institutions can expect a drop off of savings inflows that will be quite modest the first half of the year," he said. "But by the second half, the fall off will be much more rapid." Kaplan forecast the tota! savings inflow to during 1977 will be $48 billion in 1971, down from the $50 billion recorded in 1976.

If his predictions are right, it means buyers can expect interest rates to hold level and then begin to rise later in the year. MAY WE HELP YOU? Instrument Repair A Calibrof ion STABRO LABORATORIES, instrument At present. Kaplan said, savings and loans are holding a lot of liquid assets "to meet the anticipated demand (for loans) in the spring." As the credit market begins to tighten, the- Federal Home Loan Bank Board economist added, thrift institutions can be expected to reverse actions that discourage savings inflow. Kaplan also forecast strong demand in I9ii for both new and existing housing. 1-iM Million Units The seasonally-adjusted rate of construction reached 1.94 million units annual production by December of 1976.

Poor performance earlier in the year brought the actual output in 1976 to" 1.54 million units. Kaplan said the high rate of production indicated in the December figures augurs well for 1977 housing output. He forecast 1.8 million new units this year. He cited both strong demand for housing and easing in the credit markets as two major reasons for his optimistic prediction on housing output. for the li major national airlines may reach $350 million last year from a total loss of $100 million the year before.

Companies such as Eastern Air Lines Inc. and Trans World Airlines Inc. are back in the black after 1975 losses while Braniff International Corp. said its 1976 earnings were up 64 percent. One of the hardest hit by inflation and recession, Pan American World Airways said it earned $95 million last year, only after a $102 million tax credit.

But it cut its losses from the million it lost a year earlier. Airlines said factors in the strong comeback included fare increases, cost cutting programs and a healthier economy. stores posted substantial sales gains in January. Despite some freezing weather and a storm at the end of the month, sales increases ranged as high as 21 percent at S.S. Kresge 14 percent at Sears, Koebuck Co.

and Montgomery Ward 11 percent at F.W. Woolworth Co and 9 percent at J.C. Penney Co. The stores said the bad weather curbed some late-month sales, but most of the effect of the storms will up in February figures. Sales were particularly strong in typical winter lines such as heavy clothing and durable goods, the stores said.

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Cars to he sold will be 1974 Chevrolets 4 1 C3rS are 'PP ed with Power steering transmission, radio and lieater. J. DOUGLAS CHRISTIANSEN SILVER BUCK RENT-A-CAR FOR 24 HOUR RESERVATION INFORMATION 532-4941 Ask rtwrt our lew rates P.U. 8, Delivery within a 25-mile radius HOTEL NEWHOUSE DOWNTOWN S.LC. Clip Save For A Discount SLYCO CAN WE BE OF HELP TO YOU! ALE 5 OF ALL KINDS INVENTORIES ESTATES BUSINESS INDUSTRIAL COMMERCIAL ALL CALLS STRICTLY CONFIDENTIAL 600 Saving Devices Cut Waste By William H.

Hones Washington Post Writer WASHINGTON A big gas utility in Michigan is testing five devices ranging in cost from $1 to S5IJ4 that could be installed on home furnaces and flues with savings of natural gas consumption exceeding 25 percent. But local zoning laws will have to be changed and the gas industry's program for certifying devices as safe will have to be speeded up the Michigan example is to become more than a test project. The company involved is Michigan Consolidated Gas a distributor natural gas to about million customers in Michigan and generally regarded us the industry's leader in promoting conservation as called for by President Carter in his address to the nation Wednesday night. Offered Better Insulation According to John Turko, the company's director of special projects, Detroit-based Michigan Consolidated began a program of offering better insulation for its customers in 1973 a plan since modified for use in some other parts of the country and now the foundation for a broader national effort suggested in a recent Federal Energy Administration study. To date, the Detroit firm has added insulation to 112,000 homes for an annual savings of 3.3 billion cubic fee! of gas, enough to heat 16,000 more homes per year.

A more recent program urged customers to cut their home temperatures by a lew degrees, much as the President has suggested since he took office two weeks ago. TlK- firm decided that because natural gas consumption could be cut back, so successfully, home heating systems must have excess capacity Turko recalled during recent testimony before a House subcommittee. So in the of 1975. Michigan Consolidated begun testing home heating systems to determine if this were true. Oversized Furnaces "We found that most furnaces were oversized for the homes Ihey heat and that a majority of chimneys are likewise oversized, thus allowing excessive amounts of warm air to escape." Turko told Rep.

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