The Ottawa Herald from Ottawa, Kansas on April 16, 1963 · Page 10
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The Ottawa Herald from Ottawa, Kansas · Page 10

Ottawa, Kansas
Issue Date:
Tuesday, April 16, 1963
Page 10
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10 THE OTTAWA HERALD' Tuesday, April 16, 1963 Will Steel Price Hike Stick? By SAM DAWSON AP Business News Analyst NEW YORK (AP) - The steel industry bases its case for a price rise on shrinking profits in the last few years while prices held fairly stable and operating costs continued to rise. But will a price boost stick? And how long? The figures show that in return on both assets and sales the steel industry has been running well below many other kinds of business. But one reason its profits have been lower is that for five years its output has been well below its productive capacity. Lower sales volume as well as skimpier profit margins have cut total earnings. Some of this drop in output is due to fluctuations in the general economy and particularly in the demand for metals by durable goods makers. But a good part of the low output figures has been due to competition. This has come both from other metals, plastics, glass made in the United States taking over some of steel's old markets, and from foreign competition. Both Europeans and Japanese have been able to ship steel products to U.S. ports at lower prices than domestic mills were listing. American steel makers say the foreign competition is tough because labor costs are lower abroad and because overseas steel mills, largely rebuilt since World War II and often with U.S. financial aid, have later and more efficient equipment. This has cramped any efforts to American steel mills to raise prices. And also, since last year's attempt to raise prices failed, steelmen are prone to blame White House opposition to price rises. Until last week most price changes were downward. A big jump in steel demand in recent weeks has boosted production by 8 per cent. The demand has favored some steel products above others. Steel makers be- Laff-A-Day stv«J. just knit Guaranteed Lawn Mowers and Garden Tillers 1. 1962 Model Wizard Tiller with large 3 H.P. Clinton 4-cycle engine -- Recoil starter -- V Belt drive -- Large Bolo style tines-Used 6 Weeks last year-Sold new for $ 129.95 - Buy it now for Only $87.62 -- Guaranteed - Pay only $1.50 each week. 2. 1962 Model Rotary Tiller with 3 H.P. Briggs 4-cycle engine -- Direct drive with cone type slip clutch -- Large Bolo style knife type tines -- Used I month last season « Sold new for $ 129.95 -- Buy now for Only $88.88 or pay $1.50 ea. week. •- Guaranteed. 3. I960 Modef Red Rider Lawn Mower -- Has New 4>/2 H.P. Cast Iron Clinton engine with recoil starter -- This mower has every deluxe feature included-Auto- mative type transimission with 3 speeds forward and reverse -- Sold new for $339.95 -- Buy it now for $220.00--Guaranteed -- or pay $10.50 each month. 4. 1961 Model Mono Mower - 24" Rider Lawn Mower with 3'/4 Clinton Cast Iron Engine -- Heavy duty Transmission Guaranteed -- Sold new for over $200.00 « Buy it now for only $69.95 or pay $ 1.50 each week. 5. Siesta 1962 Model 20" Rotary Power Mower with Clinton 3 H.P. 4- cycle engine - Recoil starter - Heavy chrome handle-Throttle control on handle-Staggered wheel base for smooth cut -- Guaranteed - Reduced to Only $29.95 or pay $1.25 each week. The Friendly Store lieve that price increases on such terns can stick—at least for a time. The joker is to determine how much of the jump in demand is real—that is, for more tonnage now to meet manufacturing schedules—and how much is to build up stocks as a hedge against a possible steel strike in late summer. Built-up inventories are used sooner or later, and while they are being consumed new orders wither. Often prices do, too. The statistics back of steel management thinking in favor of high- ir prices are these: In 1962 net income after taxes of 78 iron and steel companies, as tabulated by the First National lity Bank, came to $605 million, down 15 per cent from 1961. This was a return of 5.4 per cent on net assets of $11 billion. Profits were a 4.1 per cent of industry sales. Some 40 other industry groups showed a better return on assets. And 32 others had a higher profit margin on sales. Steel prices rose on average 35 perjcent between 1953 and 1957. Since then they have been almost stable. Output has slumped from around 115 million tons in 1957 to around 100 million tons last year. And even current increased demand isn't expected to raise it to more than 105 million. Capacity has risen from around 130 million tons to an estimated 160 million today. About one-third of that is still idle, although steel- men say much of the idle facilities is obsolete or nearly so. HANK'S 2nd and Hickory Can You Stop? Hank' win FLY it. So you Can have your Brakes fixed Stop at SERVICE Phone CH 2-2133 Bring Your Foreign Car In, Hank Likes 'em. Millers Call Off Strike MINNEAPOLIS (AP)-A strike at 15 plants of International Milling Co. was averted Monday night when federal mediators reported the company and negotiators for the American Federation of Grain Millers had agreed on a new contract. A strike would have affected plants ll NefetoH MB Salirii 1 , Kan., and Kansas City. The 15 plants employ more than 1,000 members of the union. ' Details of the new contract were not revealed pending its submission to a union vote, but negotiators recommended its acceptance. H. A. Snyder, secretary treasurer of the union, withdrew the call for a strike, which had been set for today. Public Auction Due to the death of my wife, I will sell the following described property located at 424 S. Hickory, THURSDAY, APRIL 18 Starting at 1:00 p.m. HOUSEHOLD GOODS — Platform rocker; club chair; 3 piece sectional living room suite; portable record player; 21" Coronado TV; table and 6 chairs; 9' x 12' rug; radio; refrigerator; gas range; vacuum sweeper; wringer washer; 2 3-piece bedroom suites; water cooler (good). CAR — 1954 Ford V-8, good new tires. CONSIGNED TO SALE—30" Coronado gas range, almost new; 2 complete Hard Rock maple twin- size beds (new); 3-piece end tables; table lamps; floor lamps; portable electric sewing machine, A-l shape; lots of dishes and miscellaneous. Not responsible in case of accidents. All items must be settled for before removal from premises. BOB ADAMS, Owner Auctioneer: Col. Nate Gibbons. Clerk: Leona Gibbons. Negro PM ' LOS ANGELES (AP)-Leslie N. Shaw was sworn in Monday as acting postmaster of Los Angeles, first Negro to head postal operations in • major city. WAMTAM CH 2-4700 SEIDLITZ SatinTone 4 LATEX WALL PAINT PAINTS SALE Sale'Si? Medallion SATIN ENAMEL 9 Sale'U' Decorators LATEX WALL PAINT Sale'32? 1/VII\I Grand Tour of EUROPE for Two Thlt Is UM elaMlc vacation you've dreamed abmrt ao often. Seventeen fabulous days for two hi London, Amsterdam, Paris, Madrid and Lisbon. And If* all aa oasy. No slogan* to writ*... no (Ingles... just register with your nearest Seidlitz Paint Dealer. Meal*, lodging and travel via TWA Jet Service are all furnished if your name Is selected In our blind drawing to be held on or before May 30,1963. OFFICIAL RULES: This drawing is open to residents of the United States except where prohibited by law or regulation. No employees of Seidlitz Paint & Varnish Company, Ms dealers or advertising agency, or members of their families, are eligible. All entries become the property of Soidlitz Paint & Varnish Company. BUDGES HARDWARE i 117 S. Mam CH 2-2371 . w . IOU1 WARD ONTGOAAERY WARD WARD WEEK HOSPITALITY Come have some doughnuts and coffee from your friends at Wards! • Free Pepsi Cola, Coffee •Candy for the Kids NO DOWN PAYMENTS ON WARDS LIBERAL PAYMENT PLAN Just Say "Charge It" Pay in 30 day or extend your Payments. OPEN YOUR ACCOUNT TOMORROW When All America Shops And Saves SEASONS LOWEST PRICES BIG EXCITING ASSORTMENT SEE OUR BIG WARD WEEK Section In Today's HERALD SPRING FASHION SHOW WEDNESDAY of 7:45 P.M. Wards Fashion Deportment 10 BIG DAYS VALUABLE PRIZES "Treasure Hunt 11 Free! Every Day During Ward Week 10 Days -- April 17 to April 27 Here is how the contest works: Get coupons at our check-out stands. Match numbers with merchandise that bears the same number that you might have. Keep coupon for last day drawing. Age limit over 18 years. • 5 Merchandise Prizes Every Day for 10 Days • Grand Prize-Portable TV Set Retail Price $139.95 • Drawing Saturday April 27 at 2:00 p.m. You have to be present to win. We will draw until we get a winner. Word Week Starts Wednesday. April 17. 9 a.m.--Ends Saturday, April 27 * SEASONS LOWEST PRICES! * BIG EXCITING ASSORTMENT! * FREE REFRESHMENTS! * VALUABLE PRIZES! * GRAND PRIZE - PORTABLE TV! It's WARD WEEK AT MONTGOMERY WARD SEE BIG SPECIAL SECTION IN TODAY'S HERALD

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