The Palm Beach Post from West Palm Beach, Florida on November 9, 1968 · Page 18
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November 9, 1968

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The Palm Beach Post from West Palm Beach, Florida · Page 18

West Palm Beach, Florida
Issue Date:
Saturday, November 9, 1968
Page 18
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18 Palm Beach Post-Times, Saturday, Nov. 9, 196S Labor Costs Reported Mounting Faster Than Prices MORE MONEY, MORE INFLATION Disposable income per person continues to increase, but not as fast as the cost of living. 7j Those statistics represent annual increases in the cost of living. How much more you, 1, and everyone else have had to pay year-by-year for food, clothing, shelter and other goods and services from 1963 through 1968, inclusive. Those increases have been bearable because disposable income per person has increased faster: 3.8 per cent, then 7.1 per cent then 8 per cent, then 5.7 per cent, then 5.3 per cent, then 6.6 per cent. Consequently, real income the purchasing power of wages, salaries, dividends, interest and Social Security payments after taxes rose. Standards of living improved. President Johnson can honestly assert that economic progress has persisted throughout his administration: More people, more jobs, more goods and services individually and collectively. But a change may be taking place. Inflation has been climbing faster than income. The margin of safety for consumers is narrowing. Thus, in 1964 and 1965, gains in real income per capita were 5.9 per cent and 6.6 per cent respectively. But in recent years, this has been halved. If income gains slow, while prices continue to accelerate, eventually consumers will feel the squeeze. Retail business will suffer. Inflation has been known to overtake booms. Watch Christmas sales volume! Thanksgiving comes A Wall Street Journal survey indicates that 100 major companies plan to spend only 3.5 per cent more on new plant and equipment in 1969 than this year. This means a decrease in manhours and materials. Physical expansion will be less. Cost inflation exceeds the increase in dollar outlays. This could augur a major downturn in capital goods. If profits are shrinking, corporate officials will be less anxious to make long-term capital commitments. There's a more direct and more precise measure of inflation than the miniskirt! fun furs, and men's lapels. Take a look at this 1.7 per cent then 1.1 per cent, then 2 per cent, then 3.3 per cent, then 3.1 per cent, then 4.4 per cent. labor cost has been dropping steadily. It's 97.5 today as against 100 in April. This means that manufacturers have not advanced prices enough to keep up with rising costs. It implies a profits squeeze ahead. This could be an economic aurgury? The boom has been fueled by corporate investment increased outlays on new plant and equipment. Thesis: Inflation is here to stay. What's built tomorrow will cost more. Therefore, it's best to anticipate not to wait. Moreover, plants today are not operating at capacity. Manpower is scarce, not machinery. Idle plant costs money. It could add up to more in dollar outlays than anticipated inflation. that's why they're called "fun furs." Men's wear has not escaped. Narrow and often cuffless trousers and jackets with narrow lapels often without buttonholes are likewise cost-cutting styles. Why this? Because prosperity is all around us. Prosperity raises costs and lowers efficiency. Wage rates go up. At the same time, new workers drawn into jobs are less productive. Labor costs per unit of manufacturing output in September rose to a record high up nearly 4 per cent from a year ago. That explains the urgency to reduce costs. Yet cost-cutting has not been enough. The Department of Commerce's index of price to unit OF LIVING Wall Street Few Of Meritorious New Issues Regarded Actually Underpriced By GERALD M.LOEB Copyright, 1968, by North American Newspaper Alliance, Inc. NEW YORK How do you double or quadruple a meaningful amount of your money in a few hours? Some people think you do it by buying a new stock issue. You read about it in the newspapers and you hear about It from your friends. The last craze of this sort ended in the spring of 1962. The quality of the new issues offered varies enormously. ( Jr km ) :i Banking Circles Study Credibility Gap Action There are a very few meritorious Issues that are actually underpriced. This comes about for various reasons related to the underwriters, the securities and exchange commission, and some of the states' blue sky commissions. A far greater number represent very dubious values. This is an old story which was last demonstrated In 1962, and will be demonstrated again. The S.E.C. made a study of over 500 companies that sold stock to the public for the first time between 1952 and 1962. The Trade Winds Knowledgeable people aren't disturbed by the talk of airport passenger Jams when the Jumbo jets go Into action starting early in 1970. Planners have blueprinted programs to avoid airport confusion. Example: Tridair Industries is getting ready a line of baggage handling equipment for the jumbo jet age. The automated system will be capable of loading or unloading baggage or cargo for 385 passengers in less than seven minutes. The popularity of professional football in some cities has been a shot-in-tho-arm for ticket brokers. There Is a blitz By.!. A. LIVINGSTON You can watch Ihe inflation as the girls go by. II used to be that men paid money at a burlesque or night club for a leg show. No longer is that necessary thanks to dress designers and manufacturers. Miniskirts are an economy measure. Manufacturers cut the cloth to fit the profit-and-loss account. Thus do they combat rising wage scales and higher prices for materials by-giving more show and less skirt tor the same dollar. Cost accounting also has invaded the fur business. Rabbit, lamb, sheep, raccoon, and kidskin ( goat l all less expensive furs have been made stylishly acceptable. And, at stylish prices. Maybe Your Social Security ByR.C.GEHKKENJR. District Manager Social Security Q I am 63 years old and plan to retire Irom my job at the end of this year. When should I apply tor social security benefits, and what will I need when I apply? A You should file your application now so your payments will begin on time. Take a record of your age with you. If you don't have an original birth certificate, take any other old record you may have which shows your age, such as an old insurance policy, family Bible, etc. The Social Security office can tell you if you will need anything else. Q My father died recently leaving several unpaid doctor's hills. He was covered by both parts of Medicare. Can these bills still be paid by Medicare after his death? A Yes. The doctor can file a claim himself for Medicare payment on the unpaid bills. If the bills have already been paid, the persons who paid the bills should file the Medicare claim. Q Someone told me recently that I might receive disability benefits as a widow on my husband's work record. What requirements have to be met for this? A You must be the widow of a person who was "insured" under Social Security. You must be at least 50 years old and have a disability which began before your husband's death or within the seven-year period after he died or within seven years of the time you last drew benefits on his record. If you feel you meet these requirements, you should go to the Social Security office right away and file a claim. (J My druggist has told me to he sure to keep all ot my receipts for medicine I buy at the drug store. The Social Security office has informed me that Medicare does not pay for the medicine I buy at the drugstore. Why does my druggist tell me to keep the receipts if they are no good for reimbursement by Medicare? A It is true that Medicare does not reimburse you for the drugs and medicine you purchase from the drug store. Your druggist is probably advising you to keep the receipts tor income lax purposes. Under certain conditions the expense ot drugs and medicines can be used as a deductible item when you prepare your income tax return. Internal Revenue Service can gie you correct information about this. (J rain Table i'lir ItatiKi Open Will-. VI III I 1 It 1 HiBll l.uw 1 II', I Hi' . 1 P'T 1 I'll, 1.11 'l III'. I IS 1 Jl I'rev. 1 17' , . 1 10' i , 1 H", . 1 12 1 1 ! I 1''', 1 t". 1 IT' 1 I"1 1 I"1 I ! 1 Hi' 1 Jll 1 "l I II' 1 II, I 1 l'l', I I'll I II 111' 1 IS' l ji l .i I j:i ..1,11 ,.l.l IK Si V 1 II" I 1 I.' . ( OKV Hi i ..I. ii I 1" 1 .!.! I M 1 1 : liS ii S. p 1(1 K Hit ..l.n ..l.iv Ih s, . SOI I n 1 l'l' I .'I' 1 IS' 1 .'III I .'I ' 1 2J 1 IS' I .'"I I J-' 1 l'l', 1 21 ', 1 23 s! 1 2.1' . 2 54', 1 Jl' 1 1: i :. FLAME OUT PARTY Restaurateur Peter Makris introduced a new style in Palm Beach cocktail waitresses at the opening of his $650,000 Flame Steakhouse Thursday night. Barbara Graiff of Riviera Beach demonstrates how to get atmosphere into a cocktail lounge with a red-velvet short tunic and leotards. INCREASE HEAT INCOME -SO -4.0 8 -1.0 2.0 1964 I96S 1966 1967 J. A. livinqtton ing as last year? In dollars? In total actual merchandise? The answer will affect 1969 reorders and spring business. sion, has climbed to new, all-time heights. They are running almost three times the rate in 1963, and considerably above the 1961-2 boom levels. Good or bad. new issues are presently difficult to buy. If you are not a promotor, underwriter or insider, you will have to endeavor to obtain your shares by leaving a subscription with your security dealer, or placing it through your bank or Investment counselor. Legally, this is termed an "indication" because your dealer cannot accept firm, non-cancellable orders until after you have been supplied with the prospectus. You naturally want to be able to buy enough shares to show you a worthwhile profit. This might be a hundred shares for some investors and many thousands for others. You will have competition from every type of security buyer, including Institutions, and even pension funds. If the Issue is genuinely "hot" you will only get a token number of shares, or maybe none at all. To some extent, it will depend on how good a customer you have been over the years. It will also depend on your previous record of purchases of new issues. It will make a difference If, in the past, you have taken a majority of Issues, both "cold' as well as "hot". It will make a difference whether you have held your new issues or thrown them right back into the market. No syndicate manager likes either a fair weather customer or a "free rider." At best, when there Is not enough to go around, there is not too much your dealer can do. The best regular clients should and will get some, but most certainly not as much as they want. Consumer Analysis Launched A consolidated consumer analysis was launched in the greater West Palm Beach area on Friday. The survey Is designed to gather facts from consumers In the local area pertaining to shopping characteristics, buying intentions, products purchased, brands bought most recently, etc. Over 1,000 households from Lake Park to Boynton Beach have been randomly selected to participate. These households will be contacted and asked to participate by completing a questionnaire. The survey Is sponsored by The Palm Beach Post Times in conjunction with seven other leading newspapers throughout the nation. These papers are The Denver Post, the Long Beach Independent and Press-Telegram, The Milwaukee Journal, The Omaha World Herald, The Providence Journal Bulletin, The Salt Lake Tribune and Desert News-Telegram and The St. Paul Dispatch and E'ioneer Press. First Research Corporation of Miami is conducting the survey. Final results of the local sur . vey, along with the data from the other seven newspapers, are supplied to approximately 3,000 advertising agencies throughout the United States. 196 Buying Boosts Market NEW YORK (API The stock market Friday made its best advance in two months as big investors bought blue chips, giving averages a hefty boost. Trading was active. Volume was 14.25 million shares, compared with 11.66 million Thursday. The Dow Jones industrial average advanced 8.33 to 958.-98. The unusually large number of blocks of more than 10,000 shares caused analysts early in the day to comment this was a sign of serious institutional buying, by mutual funds, pension funds and the like. The market appeared to have passed some kind of a technical test Thursday when it made a late comeback, wiping out an early loss. In addition, it was said that the market really had not given full recognition to the election of Richard M. Nixon. A sharp intermediate advance almost always marks the choice of "a new face in the White House," was one comment. The market advanced from the start and closed at its best level of the day. The ticker tape was late at the final bell. The Associated Press average of 60 stocks rose 3.U to 354.6 with Industrials up 4.2, rails up 2.0 and utilities up 1.1. This was the largest rise since Sept. 6 when an equal advance of 3.0 was made by the average. Of 1,570 issues traded, 889 rose and 466 fell. New highs for the year totaled 88 and new lows 15. The New York Stock Exchange Index rose 25 cents to $58.47. Standard & Poor's 500-stock index gained .45 at lO.'l.-95. The strong performance was carried out despite the usual tendency to show caution before a weekend. This time the gap in trading will continue through Monday because stock exchanges will be closed then for Veterans Day. Eleven of the 15 most-active stocks rose, and 4 declined. American Motoro was the most-active stock, up 2 at 14 on 247,000 shares. The stock became a trading favorite as it approached the price level of 15. On the basis of charts, analysts said, "AMO" could race up to 30 or more if it made a good breakout above 15. Market Indicator ( losing nel pilce charge ol all NYSF. stocks leaded, cnmHili,il liv Qunlrim ii'iAlce. was up 11.67 t)7 KHMhs' per cenli nun previous (lav's close. 'sine April 1, IIHifi prices as a HM) liase, the Indicalor closed FriiLi I 12.52. Issue Share V illltlle Advances lircllni's rnch.ine.ed Total 11.5111 110 .!.5mi.lHM 1,210 'III 215 1,5711 J July Aug. Spf. 0t. 700 Guests Fete 'Flame ' Opening (M PERCENT i 4.0 t 1961 1964 1965 1966 1967 Sourci: Dipl. of Commtrc late. There'll be four fewer shopping days between the turkey and Santa Claus. Will people do as much buy findings were very bad over all. Last November, Merrill, Lynch made a similar study of some of the small or so-called "regulation A" issues sold during 1961 and 1962. Only a very' small handful did well, two of which ended up on the American Stock Exchange. A great many finished as wallpaper, or in the list of stocks quoted at a penny or less. Currently, the public offerings of new securities, as shown by the number of registrations filed with the securities and exchange commis- for tickets; a scrimmage for hard-to-get good seats. Most pro clubs have a season ticket holder list. But even these find their way into ticket dealer offices. The big buyers are companies wanting to entertain visiting clients, and often pay black market prices. They don't care because it Is a business tax deduction. But, as usual, the true fan sits far out behind the goal posts or off at an angle high In the open stands. He views the game through field glasses, but gets a bigger kick out of it than the rich-ticket guy down below on the 50 yard line who probably has bad eyesight. tery can be revived by placing It In a tub of lukewarm water, then gradually adding hot water and letting It thaw out for about half an hour. Another trick is to switch on the electrical accessories for about half a minute before trying to start. This causes current flow and could perk up the battery enough for a cold-engine start. Q How often should an Inline fuel filer be replaced? B.P. A It should be replaced every 10,000 miles, which Is an average guideline. Poor engine acceleration, hesitation and stumbling will result If you neglect this. Q I have a '59 which Is driven a total of 2'4 miles daily, to and from the railroad station. For some time, It's been giving off an odor of burning gas and oil. I've cleaned all under the hood with kerosene, but the smell persists. S.D. A A blown head gasket could be at fault. Q I saw a car under repair at my service station that had a fan with six blades. Does this Improve the cooling system? G.L. A Yes, It circulates more air than the standard 4 blade fan and thus fights engine heat, particularly where there's little breathing space under the hood. Q For easier winter starting, is 5W engine oil recommended? N.T. A Because 5W oil thins out dangerously under engine heat, it's only approved for short distance, slow-speed driving in extremely cold climates. Multlgrade 5W-20 oil b a better choice. TIP OF THE WEEK: A jumper wire with alligator clip permits quick silencing of a horn set off by shorting or grounding. (EUGENE B. MILMOE's new 16-page booklet, "Your Car," answers 50 common car problems. Send 25 cents in coin to Your Car, The Palm Beach Post-Times Box 1672, Grand Central Station, New York, N.Y. 10017. I COST Lm it Your Car 'Strong' Battery Needed In Winter BY LOU SCHNEIDER NEW YORK (NANA) The major topic of discussion In banking circles this week, aside from the election results, is the action by the Federal Reserve Board to wipe off the credibility gap. The "gap" came about when the FED provoked a burst of monetary stimulus at about the time Congress at long last legislated the anti-inflation 10 per cent surtax. The FED had been urging the President to approve such deflationary action. The inflationary effects of the FED's monetary stimulus is still being felt. But corrections are now under way. It has tightened Its restrictive stance. This is discernible in the hardening of short term rates. Any change in Federal Reserve money policy takes from four to six months to have an impact on general business. On that reckoning, business activity should feel the credit pinch during the early months of, 1969. In some spots It is already evident. Manufacturers are wonder ing how soon the consumer will reach an over-bought stage. He is spending as if taxes were cut, rather than increased. The feeling is that consumers will get the bad news next spring when underwithholding of tax payments will have to be made up. Estimates are that this could draw, on a one-shot basis, some $2 billion out of the annual rate of personal disposable income. Worse yet Is that social security tax payments are scheduled to rise on January 1 at an annual rate of $3 billion. This year that mount will not be offset by an Increase In federal minimum wage as It significantly figured in the social security hike in the first quarter of this year. 1 ft A Nov. Dc. 950 900 850 800 '50 Mow. i III' serving, are the cocktail waitresses. Master planner Makris left little to chance here. He brought in his experienced girls from Chicago to train and guide the newcomers. Guesl-oMIonor at the gala affair was land developer John I). MacArthur who commented that the Flame should prove an attraction In the sales of residences. MacArthur, spoke from an experience as the largest single land developer in the area and also operator of the Colonnades Beach Hole and restaurant in nearby Palm Beach Shores. Among the nearly 700 guests were all the owners of the county's leading restaurants, a major industry in this resort area. The Flame's commitment to the economy is a staff of HO people, a continual Inventory of $100,000 in aging meat and liquor. Flame innovator Makris admits that his restaurant operations in the North gross $7 to $H million yearly. "We'll need a big turnover in the 225-seat dining room, and 125-seat lounge to pay off the local investment," he said. J F M A M By EUGENE B.MILMOE Your car Just Isn't ready for winter If battery strength is not at Its maximum. Cold weather can cut battery power in half just when twice as much juice is needed to start a frigid engine. That's why 70 per cent of midwinter emergency road calls are due to battery trouble. In some cases, battery water freezes. This can happen when the charge is weak and the mercury drops near the bottom. One of the best ways to combat the threat of battery trouble Is to hook it up to a plug-in warmer or trickle charger when you garage it every night. Keeping a fully charged spare battery on hand is also good insurance and, of course, you should always carry a set of booster cables. Sometimes a badly chilled bat- 1 I I . If ft NORTH PALM BEACH -The Flame Sleakhouse on Yacht Club Drive opened Thursday night in a blaze of television lights and flashing legs from cocktail waitresses garbed in leotards and short red velvet limit's catering to some 71)0 special guests. The Flame Is a W50,000 investment in building, land, fund and liquor inventory by Peter Makris, who operates similar operations in Chicago, 111. and environs. Makris estimated his liquor costs for entertainment on opening night was about $5,000, "but worth it." He hopes to have many of his guests back for steak dinners. The Flame steak speciality is a $ri.7." entree. Other items on the 20-entree bill of fare go lower in price; other items reach into two figures. Not on the bill of fare, but a most pleasant adjunct to the A pent Presides David J. Blatt, agent for the Mutual Life Insurance Co. of New York in Palm Beach, presided Friday at a meeting of members of the Committee on Health Insurance of the National Association of Life Underwriters (NALU) in Washington, D.C. Blatt is chairman of the committee and a member of the NALU Board of Trustees. Optimism Noted "Cautious Optimism for the Future" was the keynote of the report by J. B. Franklin, president of Airlift International, at its annual meeting of stockholders in San Francisco last week. He noted that although earnings had decreased for fiscal 18, largely because of industry-wide reduction in military operations, it was a year nonetheless of significant accomplishment which would provide a foundation for future progress. A t Session James V. Painter of A-Easy Method Driving School, who is president of the Florida Professional Driver Education Association, Is attending the 1968 International Driving School Conference In New York Citv. End Sit-in NANTES, France (UPI) Six hundred students ended a sit-in at the University of Nantes law faculty building Friday after the school administration promised to hire better professors FMAMJ J A $ O N D T I I I I 1 i;J! Ifikti Oi Mon. Tum, Wd. Thwft. Fri. 375 350 325 300 375 250 360 358 356 354 352 I. in J vii, J.lil', 2 'iS', 2 Mar J ill', 2ii'i'- ?.:, 2 1'. ?', ;,l.i 2 lili , 2 s ' 2.lvi'i 2li7't 2 M', 217', J lis :.', 2.. 2.117', ui! 2l, 2.1,1 22, '-'HI 2li2'i Sri 2 is 2 IS', 2.17', 2 IS', 2. IT SOI UK IN Oil. I 'it T T2 T 72 T 2 7 ST 7.7(1 .Lin T T'i 7 7'i 7i 7 71 7 74 Mar 7 S2 7 S2 T 7.1 7 7'l 7 S2 .,I,i 7 '12 T '12 T H5 7 si 7 '12 j 7 "'i 7 7 si 7 'U 7 II Aiil' 7 s', 7X8 7 S2 7 IK 7.NH Sep 7 Hit 7 sil 7 74 7.7! 7 T'i Oi l 7 l,u Tlil 7.YT1 7.V.I T.IHI SOVBK1N MK11. Dec 7 1. l'i 7J.SII 73.HI 74 IK T.'l.SS Mil 7,'I.K.", 71 mi 73.SO 74. IS 7MB ;,l,li Tl.lill 75.111 74.55 75.211 71 15 11 ;1,H 75.Ni Th in 75.511 Win 75 I" H ,lh TH HI TTH5 7ti .HI 7ti H51I 7h 25 H Aim TSKl THH5 7 INI 7t. lull 7h ll H Sep 7.1 m 7.1. HI 7 I.INI 72.7511 T.I in B Hi I Tl'll 71. 'HI 71. VI Tl Kill 71.511 B T3 Holiday Two. Wftd.Thur. Prl. Holiday 0 96ot' Nixon 3C Over The Counter Quotations from thr NASI) are represrn-tatlvp Inter di'nlor prices as ol approm-malHv 4 p m. Inter -di-aler markets rhjnye throuKhoul the dav. Prices do not include retail markup, markdim n or commission Bid A-"' Alicol.and AtoeCreme Labs i a , Amer Bankers l.lle Assurance ( o tfcl I Amer. Hankers l.lle Insurance Co. l 7 Amer. Herllaue Llle Ins Co M jj, Arvlda Corporation J' J'"' AlecOII "; ' " Hancsloi'k Corp. of America .... 1- 4 Blllups Western ; ',', " ? "i Commercial Bancorp of Horlda 14V, l i1, 1st Nai l Hank ol I'alm Beach , . 7H IW 1st Nat l Hank ol Kivlera Beach M V Fisher Poods 41 ! 'j f'la. Pub. Utll. 1.12 Pld W'i tl Fli Pub Ulll.. Common stk in', l't Florida Tile 'i W Fla. W ater Utilities 4;, 5', (lull Lite 4 l.umilnc M", 'M'l Marriott Corporation fr National l.lle Insurance ol Fla. ..Wl, 11'', Soroban Knuineerlnn 24 U.S. Surar 44 Unlvu. Inr , W's Wy 950 940 930 350 348 346 344 JmaJif Soi Sine Stpt. 4 II Hid. (lommoditu't (FromThomjwn A McKlnnonl Rubber Marrh 21H5 2245 No HSukhi March 279 No. SSuiarMav2S0 Wool Tops March 1647.1656 l.reasc Wool Marrh 1210 T Lead Marrh I2WI N Copper March 46,10 46.15 Zinc March 1250 Frozen Pork Bellies: Feb. 30. 30 17 .10 , 72 30. 17-10, 70-62 Sales 2.775 March .30. 20 15-30. 67-30. 15-30. 67-62 Sales l.Oll Mav 30, 55 6.) 31. 00-30. 55-31. 00 30. 95 Sales 373 Julv 31,05 1IIB-31. 50-31, 05-31, 50 Sales 269 August 31, ( 31. 15 .10. 75-31. 05 Sales 36 resting a two-week decline. The Dow Jones Average of 30 industrials also climbed to 958.98, up from 948.41 last week. v STOCKS AVERAGE RISES The Associated Press average of 60 stocks closed at 354.6 Friday, rallying sharply from 351.0 a week ago and ar

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