Idaho State Journal from Pocatello, Idaho • Page 5

POCATELLO, IDAHO, SUNDAY, APRIL 20, 1975 J. Wilson B. Chisura W. Moses B. Ballev Wilson Joins Gem State Realty Jan F.

Wilson has joined the Gem State Realty staff. A graduate of Idaho State University with a degree in business, Wilson was formerly an associate with Reese Homes and general manager of Gate City Distributing Company. He and his wife, Arlene, who is also an associate at Gem State Realty, have two sons. Metal Firm Opens Idaho Building Systems, Inc. of Pocatello has been named an authorized Stran Builder for the Southeast Idaho area.

Idaho Building Systems, a dealership for pre-engineered metal buildings, started business in Pocatello last month. The firm is owned and operated by Bill Chisum, who was formerly national sales manager for National Steel Products Company, a Houston based manufacturer of Stran metal building systems. Chisum said IBS will offer its clients complete "turnkey" service, including help with site planning and preparation, design, real estate, landscaping, financing and general construction services. CAN'T COMPETE WITH CO-OPS Dairymen Upset Over Federal Milk Order By MARK MENDIOLA Journal Staff Writer Two local independent milk processors fear they may be caught in the wringer of the Federal Milk Order which officially went into effect January 1, 1975. Robert Rowland, of Rowland's Quality Chekd Dairy, and Floyd Ward, owner and operator of Ward's Dairy, both claim the government order puts the squeeze on independent milk handlers and strongly favors large dairy cooperatives.

The federal milk order established a base milk price processors must pay producers for the milk they purchase and extended the boundaries of the Great Basin milk marketing order of Utah to include seven Idaho counties: Bannock, Bear Lake, Bingham, Bonneville, Franklin, Jefferson and Madison. The milk producers, under jurisdiction of the Federal Milk Order (FMO), figuratively pool all their milk. An average blend price is then figured which milk handlers would pay the producers. The producers in the entire area then receive "a uniform price" for the milk they sell depending on the class of milk they produce, the two dairymen explained. Class 1 milk is used to produce fluid milk and sour cream.

Class 2 milk is for cottage cheese and Class 3 is utilized in the production of regular cheese, butter and ice cream. Dairies, like Ward's and Rowland's, which process Class 1 milk must pay higher costs for their milk than those plants which produce cheese, ice cream or butter. "The Department of Agriculture announces the price of Class 3 milk the fifth of every month. To that Class 3 price we must add a specified amount to get the Class 1 price which the milk handlers must pay for the milk that goes into the bottle. Class 2 is always 15 cents more than 3," Rowland elaborated.

"In effect, we are subsidizing the other plants not producing much Class 1 milk." Ward claims the federal order eliminates the ability of the independent dairies to compete with their competitors, co-ops. "Before, I could outpay Ihe co-ops, inducing people to sell more milk to me than them. The Federal Milk Order takes away from us the right to bargain for prices," Ward charged. Hypothetical!) 1 before the FMO was instigated, he could pay a month for his producer's milk, Ward said. After the order became law, however, the blend price for the same amount of milk is only $5,200 a month.

Ward would then pay his producer the blend price and send the difference of $550 into the Federal Milk Administrator who then distributes it among other dairy farmers. The FMO not only allegedly removes competition between the independents and co-ops, it also costs the dairies more in bookkeeping expenses. Rowland says he must pay 3.5 cents per hundredweight of the milk he sells for the government to audit his books monthly. "I'm afraid the co-op is controlling the Federal Milk Order. The co-ops want to control and buy all the milk in the country," Ward claimed.

Rowland noted 90 per cent of the farms in Southeast Idaho are controlled by two dairy cooperatives, Mountain Empire Dairy Association and Western General Dairy. In 1960, 5,000 "viable" milk handlers were in business, but presently less than 500 are in operation, he said. While Rowland purchases his milk from one of these coops, Ward gets his supply of milk from only one unaf- filiated producer. "Once he gives cut, I will have to buy from a co-op which w'll squeeze me until I fold," Ward said. Both Ward and Rowland fee) there is little if anything they can do about the federal milk order, but Ward feels the solution for stabilizing the milk market is to completely rescind the order and raise the price charged for Class 3 milk since operating expense differences between plants producing various classes of milk is slight.

Both Rowland and Ward attribute recent increases in the price consumers pay for milk to increasing operating expenses and inflation, strongly denying they have profited from the price rises, adding they are "all in favor of getting all the money they can to the farmer." "The difference between what the farmer gets and what the consumer pays is not all going to the middleman," Rowland insists. "We only make an average of nine-tenths of one per cent on every gallon of milk. "As long as there is no significant change in the competitive situation as far as the cost of milk is concerned, we can still be a strong force in the market," he added. Ward feels the future is uncertain for his business. "The past three years are the most difficult I've experienced.

I'm trying my best not to go broke, but you can't take a loss and go down every month," he lamented. "I'm ashamed to disclose my net profit, it's the least it has been in thirty years." Ward strongly denounced the federal milk order and other government regulations for ruining small businessmen. "The milk order should never have been allowed under the free enterprise system. It's impossible to have controls and freedom. One or the other must be sacrificed.

Only time will tell if we can live with it," he said. Wayne Moses has joined the staff of Gate City Real Estate. A 1973 graduate of Idaho State University with a degree in business, Moses was formerly with Idaho First National Bank in Blackfopt. Moses and his wife, Janet, have two children. They live at 1206 E.

Maple. Bailey Joins Hamilton-Voeller Brent C. Bailey, a professional engineer, recently joined the firm of Hamilton and Voeller, Inc. A native of Mackay, he received his bachelor's degree in civil engineering from the University of Utah in 1969, and completed the requirements for his master's degree from the same school in 1974. His background is in the area of environmental engineering with a specialty in solid waste management, airport planning and design, and water and waste water facilities design.

He and his wife have three children. They live at 2330 Ada Street. Chose Gefs National Recognition Dick Chase, of Pocatello Greenhouses Floral, is runner-up award winner in a national competition sponsored by Chevron Chemical The national contest recognizes the public service contributions of persons in the garden trade. Agent Named "Man of Year' Allen R. Collins, Pocatello, has been selected as "Man of the Year" by the Unigard Olympic Life Insurance Company of Seattle.

As Unigard Olympic's "Man of the Year," Collins will also serve as chairman of the company's President's Council during 1975. Collins also received individual recognition for being the highest premium producer and for being named "Man of the Month" three times during 1974 because of his premium volume. Earlier this year he received the National Quality Award and the National Sales Achievement Award which are sponsored by the National Association of Life Underwriters. Windmill Drawing Attention A wind-powered electrical generator at Pocatello's Organic Grocery, Halliday and South Fourth, has been noticed as far away as Boise. Gary Hall of the Organic Grocery said he has received a letter from Jim Taney, public information specialist officer for Idaho Power Boise, asking information on the Organic Grocery's electrical generator.

Hall said Taney had seen the Pocatello store's name mentioned in a readers' question column in the Boise newspaper. The power company also asked to include the store on a list of information sources on alternate power. Idaho Power Co. is compiling a directory of information on wind, solar and other alternative energy sources and wants to encourage interested members of the public investigating adopting alternative energy forms to meet their own needs, according to Taney's letter. He requested any literature or background information available on the generator at the Organic Grocery, Hall said.

Idaho Power hasn't been the only curious querent, according to Hall, About five or ten persons a day have been coming into the store to ask about the small windmill since it went up about a year ago he said. So far, he and George Coutis have compiled a list of about 600 persons wanting information on wind generators. The generator, for which the Organic Grocery obtained a city building permit, provides electricity for two apartments. Hall said a larger generator, the American Wind Turbine, is being studied as a possible way to power the lights of the grocery and the organic food restaurant which shares its building. Book Jells Spud Industry Story Housing Economist Predicts Slow Recovery BY JOHN CUNNIFF AP Business Analyst NEW YORK (AP) Housing activity is generally thought to respond almost immediately to an increase in the availability of mortgage money.

But a housing economist says this year this might not be so. "The current depression in housing is the result of much more than credit shortages and restrictive borrowing terms," Saul Klaman told a meeting of mortgage mea "Mounting inflation and deepening recession have created increasing imbalances between hous ng costs and consumer incomes," said Klaman, chief economist of the National Association of Mutual Savings Banks. "Moreover, structural shifts in types of building, land utili- The first known attempt to compile a history of the potato industry Idaho has just been published in a 209-page book bearing called "Aristocrat In Burlap." The research, writing and publishing of the volume was sponsored by the Idaho Potato Commission. It was written by two Boise people, James W. Davis and Nikki Balch Stilwell.

Fifty-nine individual pictures illustrate the 13 chapters showing people involved in the growing. shipping and processing of Idaho potatoes during the 139 years that have elapsed since Henry Spalding made the first planting at his mission near Lapwai. Spalding is but one of the personalities who have shaped the destiny of Idaho's largest agricultural commodity. The book also traces the story of how Luther Burbank, Ihe a i i developed the Burbank variety and how it became established in Idaho. In more modern times, Joe Marshall, Jack Simplot and Alan Noble have each had an influence on the destiny of the zation and environmental requirements have caused a continued upheaval which has further disrupted already snaky markets." He said both builders and buyers are inhibited now by "the four Cs." or caution, concern, confusion and constraint." To overcome the inhibitions, he listed five keys: 1.

Increased availability and better terms on mortgages. 2. Moderation of increases or actual declines in prices and coets. 3. A halt to the erosion of consumer incomes and confidence.

4. A quick and significant tax cut and a sensible energy package. 5. A reduction in the level and price of housing inventories. While forecasting a slow up- turn for the housing industry beginning in late spring, Klaman said the year as a whole will be characterized by "depr- cssingly low numbers," with the number of starts likely to total no more than 1.25 million in 1975.

"Normal" is close to two million. He said in the longer run basic changes are needed if the industry is lo be rescued from its roller-coaster existence, in which booms and busts follow each other. A structural reform of savings institutions is necessary. It would mean broadening the investment and service powers of thrift institutions, which now cannot offer checking accounts or other services of commercial oanks. Deposit interest rate differentials also will have to be re- stored, he said.

Savings banks traditionally have been permitted to offer a slightly higher rate than commercial banks on savings accounts. Through the use of certificates of deposit and other devices, Ihe commercial institutions have reduced the advantage held by savings banks and, as Klaman sees it, have made significant inroads into the personal savings business. He maintains this has had an adverse impact on the supply of mortgage credit, since commercial banks are not committed, as are savings banks, to the home mortgage market. Greater flexibility in the mortgage instrument also was called for by the economist. Among his suggestions was the development of variable interest rates rates that would rise if interest rates in general rise.

Home lenders argue that in today's unstable world it is almost impossible for them to foresee the turns in interest rates for 20 or 30 years ahead, and thus makes them reluctant to commit themselves to fixed rates. Klaman also urged a tax exemption for interest earned on savings accounts, claiming this would channel a greater flow of household savings into thrift institutions, which then would lend it out to homebuyers. Among other suggestions: Improve the effectiveness of federal mortgage insurance programs by making them distinct from social-priority housing programs. Eliminate state usury laws which limit lending rates, and re-evaluate housing styles. "Just as the production of overpowered, gas-guzzling automobiles will be sharply reduced in the years ahead, so also should the production of unnecessarily large, land-consuming housing units be cut off in the future," he said.

'Mayday' Rings ThroughWall Street EDITOR'S NOTE When the restrictions end next month on the commissions charged by stockbrokers, the odds are that institutional investors will benefit from the new pricing freedom, but not the little guy on the market. By CHET CURRIER AP Business Writer NEW YORK (AP) "Mayday," the traditional radio distress call of pilots and sailors, is Selected New York Stock Exchange Prices By THE ASSOCIATED PRESS ringing theough Wall Street with a different but compelling meaning this spring. Is is the unofficial code word for the May 1 start of price competition in the securities industry, after almost 200 years of fixed minimum brokerage commissions on stock transactions. For stockbrokers, it probably will mean new competitive pressures. And for the investor, it will mean the opportunity to world's most famous potato.

Facts and anecdotes that affected the decisions made by these men that became industry turning points are depicted in the new book. The story of the Idaho Potato Commission and how the Idaho Russet was promoted to world renown is the subject of another of the chapters as. well as the history of early land reclamation projects that provided farmers with irrigated land for the present-day production which amounts to more than 20 per cent of the nation's potatoes and has made Idaho the largest single production area. Selling for $3.00, "Aristocrat in Burlap" is available from the Idaho Potato Commission, P.O. Box 1068, Boise.

Arthur W. Huckle ROCK HILL, S.C. (AP) Arthur W. Huckle, publisher of the Concord (N.C.) Tribune, died Thursday night after a long illness. Huckle, whose age was not disclosed, had been in the newspaper business 61 years.

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And the commission is as much as 10 per cent on very small transactions involving few shares. Wall Street has been feeling its way toward Mayday. Few brokerage firms have indicated what might be charged once restrictions on commissions are removed on May 1. "Anyone who tells you he knows exactly what's going to happen is mistaken," says Edward I. O'Brien, president of the Securities Industry Association, the brokers' trade group.

Besides price shopping, a customer also will have the opportunity for the first time to pay only for those brokerage house services he wants. Until now, part of every commission Happy Birthday, McDonald's Thirty million hamburgers-that's how many McDonald's hamburgers Americans will eat today as the restaurant chain celebrates its 20th birthday. Ray Kroc opened the first McDonald's restaurant April 15, 1955, in Des Plaines, a suburb of Chicago. Today McDonald's golden arches are found at 3,400 locations throughout the world. Fred Turner, president of a a i pointed out that back in the 1950s, 11 took the company over three years lo sell its first 30 million hamburgers.

He said McDonald's hamburger sales are expected to reach 16 billion today. Steward I). Daniels URBANA, III. (AP) Stewart Daniels, 77, national executive secretary of Alpha Tau Omega fraternily from 1925 to died Thursday. Dial 233-6724 For Highway Information payment has gone toward the cost of research reports, safekeeping facilities for stock certificates and other brokerage house functions.

The changes raise the issue of survival. "Is this going to drive hundreds of firms out of business, as some people have been saying? I don't think so," O'Brien maintains. One executive of a large brokerage house, on the other hand, contends that the number of NYSE member firms could shrink by at least two-thirds from the current total of 500. "Some people are saying there'll be as few as 50 eventual surviviors" he says. "I think 50 is too low but 150 may well be high." "The conventional wisdom is that the institutional investors will get lower commissions and that the little guy will always have to pay more," O'Brien acknowledges.

But he adds that this conclusion isn't final yet. The problem for individuals is that their role is so small in the stock market. The insitutions -banks, pensions funds, insurance companies and mutual funds do more than two- thirds of all trading on the New York Stock Exchange. HOME SWEET HOME INSURANCE SAVINGS Just combine all four major protections into one package policy. Save on theft cover age, fire protection, glass breakage, and comprehensive personal liability with one policy All Federal Credit Union Member Savings Insured to 40,000 IDAHO STATE INIYERSITY F.C.U.

POCATELLO CARPENTERS F.C.U. POrATEllOHAIlROAD EMPLOYEES F.C.U. POCATELLO TEACHERS F.C.U. POTELCO F.C.U. F.M.C.

EMPLOYEES F.C.U. BANNOCK COUNTY EMPLOYEES F.C.U. BANNOCK 1101 EL F.C.U. lAM-HIS-fO F.C.U. POCAI1Y F.C.U.

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Your FEDERAt CREDIT UNION is pleased to advise lhal a new Federal law now insures your Credit Union savings account up to $40,000.00 per account This new. legislation offers you the protection you want and need for your savings account. Save as much as S40.000.00 per account, confident thai your money is in good hands-fully protected by on agency of the U.S. Government, the National Credit Union Administration. Save ana 1 save with your Credit Each member account insured to $40,000.00 SNCUA by Administrator, National Credit Union Administration.