Tampa Bay Times from St. Petersburg, Florida on January 21, 1972 · 30
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Tampa Bay Times from St. Petersburg, Florida · 30

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St. Petersburg, Florida
Issue Date:
Friday, January 21, 1972
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30
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fs Nixon's Tax Plan Plunge By CLAYTON' REED Tlmti luilntti fdlior What is that "revolutionary" lax proposal that President Nixon heralded Thursday as a solution for school financing and a boon for the overburdened payer of property taxes? (See Pace 1-A.) Would you believe a national sales tax? The President said he wouldn't divulge details until "later in the year" which was promptly interpreted in Washington to mean he didn't want to talk higher taxes until after the election. The 'same Washington circles believe that when he does spell it out, it will turn out to be the value-added tax that members of the Administration have mentioned more and more in recent speeches, AM) JUST what is VAT? (You might as well pet used to the initials; it's likely to be stirring a political storm from here on.) It's a sales tax paid by a manufacturer or processor or retailer but not not directly, that is by the consumer. Therein lies its political appeal. Treasury and other Administration people have been talking about a 2 or 3 per cent VAT. Here's how a 3 per cent VAT would work, as explained the other day by the National Observer; Company A produces a raw material worth $100 and adds on 3 per cent, or $3, which it sends to Washington. The buyer, Company B, fashions the material into a product which it sells to a retailer (Company C) for $200. Company B in the process pays a 3 per cent tax on the value it has added to the raw material another $3 for Washington. THE RETAILER sells it to the consumer for $220, including in that price 3 per cent of the $20 value he added (the sales expense and profit), or 60 cents. Together the three businessmen' send a total of $6.60 to Washington. Now, this is exactly what a customer would into VAT? have paid at the end of the line with a 3 per cent sales tax on a $220 item, so what's the difference? Only one difference, really: Since the VAT is hidden In the ticket price, the customer theoretically is not aware of it and won't howl. THE AFL-CIO is already sounding the alarm about VAT, asserting that it is "regressive" in that it hits poorer people proportionately harder than rich people (as sales taxes generally do). Administration people (Herbert Stein, chairman of the Council of Economic Advisers, among them) don't try to argue the point. But they point out that it would replace another regressive tax, the one on property, for the progressive purpose of providing equal educational opportunity. 1 TTnm a Business? f. Petersburg (Times BUSINESS AND FINANCE . -v.v-y v. - Vt v,-j 10-B Friday, January 21, 1972 Lifts ecemher ersonal Income 71 Times Wirt Services WASHINGTON Personal income rose by $53.5-billion to $857-billion in 1971, a 6.5 per cent increase compared with 1970, the Commerce Department reported Thursday. The rate of increase in 1970, however, was 7 per cent over 1969. DEPARTMENT STATISTICS also showed personal income rose $9-billion in December of last year. It was the first full month following the wage-price freeze and was about triple the monthly gain of the past three months when the freeze held down the size of workers paychecks, dividends and other income payments. The Commerce Department said it was the second largest gain of any month in 1971. Higher wages and salaries was the biggest factor in the December rise, the department said. Paychecks increased $9.8-billion in De cember compared to $3.5-billion in the previous month. The wage and salary increases were offset by a $1.5-billion drop in stock dividend payments in December. GOVERNMENT PAYROLLS were up $2.5-billion, about half that figure due to the military pay raise. State and local government wages increased $1.5-billlon, as teachers collected salary increases held up during the freeze. Manufacturing payrolls rose $2.8-billion for the month with gains reported in most sectors. In private non-manufacturing inudstries, mining payrolls were up $l-billion following the settlement of the two-month coal strike. Transportation and public utility paychecks rose $l-billion as some of the nation's longshoremen returned to work and trade disbursements rose by $1.5-billion. Aluminum Giants' Profits Cut Back Times Wirt Services The nation's two largest aluminum producers Thursday reported sharp drops in profits for 1971, reflecting overproduction, weak prices and the added cost of a large wage settlement. At the same time the Aluminum Association reported that primary aluminum production in the U.S. last year slipped to 3,925,242 tons from the 3,976,148 tons turned out in 1970. Aluminum Co. of America reported a 51.6 per cent drop in 1971 profits to $55.3-million or $2.45 a share from $114.3-million or $5.20 a share in 1970. Reynolds Metals Co. reported a plunge to $5,894,000 or 14 cents a share from $47,455,000 or $2.59 a share in 1970. MUTUALS - Mutual fund redemptions rose to $4.8-billion last year from $3-billion in 1970, the Investment USIHESS?I!IA!ICEBC CXfflSSWKfcKCEBUS! nosspMsssBusi! Stocks Take Fall Of 4.66 New York Times Service (c) NEW YORK - Stock prices fell sharply in the final hour of trading Thursday to more than wipe out earlier modest gains. 4 The Dow Jones industrial average dropped 4.66 points to end at 910.30. Analysts noted that the state of the market showed some weakness at the closing bell, a phenomenon popularly described as "profit taking" on the heels of a prolonged upswing. But this weakness, they agreed, seemed to have little to do with President Nixon's state of the union message delivered at mid-day to Congress. NIXON'S ADDRESS, which repeated his forecast that 1972 will be a "very good year" for the economy, contained no jarring surprises for Wall Street. Volume on the New York Stock Exchange, with more large blocks crossing the tape, rose to 20.21-million shares from Wednesday's 18.80-million shares. The reading of 69 highs and six lows was virtually unchanged from the previous Market Report 3 " session. On the American Exchange and on the over-the-counter market, prices finished lower for the second consecutive session in active trading. THE EXCHANGE'S price index closed off 0.07 at 26.68. a total of 579 issues fell while 364 rose. Turnover eased to 6.14-million shares from 6.17-million on Wednesday. In the counter market the NASDAQ industrial did slightly better and rose 0.03 to 122.53. However, of the 2,850 NASDAQ traded issues, 757 declined, 705 advanced and 1,388 were unchanged. Volume in the counter market eased to 10.41-million shares from 10.43-million on Wednesday. The Arthur Lipper mutual growth fund index closed at 99.75, off 0.16 per cent. SFKHMJEEIWRTBSS .nTAKCllWifeSFI ASCEBTJS ISESSFTM Company Institute reported. The funds were in a net sales position for the year of $400-million after total sales of $5.2-billion for the year. TOOLS - The United States dropped from first place to fourth place behind the Soviet Union, West Germany and Japan in "consumption" of new machine tools in 1971, according to American Machinist magazine. the board of governors of the New York Stock Exchange Thursday gave preliminary approval to a sweeping series of constitutional amendments that would lead to reorganization of the structure of the exchange. Constitutional changes, which now are to be forwarded to the securities and exchange commission for comment, require final board and membership approval before they can be implemented. Among other changes, the proposed amendments would create a 21-man board of directors to replace the present 33-man board of governors. The new board would give stronger representation for the public sector. Other changes deal with election, voting and nominating of members on the board. A fulltime, paid chairman of the board the new chief executive officer would be elected by the new board of directors, according to proposed constitutional changes. Texas Terms Met By Turner Firms AUSTIN, Tex. IT) Two Florida firms have agreed to regulations prepared by the Texas attorney general's office limiting their advertising and sales practices. Dare to be Great Inc., and its parent company, Glenn W. Turner ' Enterprises Inc., agreed to stop advertising that Turner the company's director was selected as the lions International "humanitarian of the year." Turner was given that honor by a local Tampa chapter of the Lions. Atty. Gen. Crawford Martin had filed suit- against the firms Jan. 8, alleging they engage in deceptive trade practices, and had sought an injunction prohibiting them from doing business in Texas. But the Florida firms' agreement to the regulations drawn up by Martin's office, in effect, nullified the suit. Toronto Stocks MINES t, OILS Sales Issue Hiqh Low Last N. C 14M Beth Cop 19.00 U.7S 18.75 .25 4600 BP Oil 6.30 6.20 1 20 16900 Camflo 100 2.85 3.00 .05 1170 Casslar 19.50 19.25 19.37 .25 1280 Denis 27.87 27.25 27.75 .75 100 Lebrad 40.25 39.50 40.25 17155 Sherritt 14.50 14.00 14.00 .37 2200 Steep R 2.57 2.53 2.57 .03 4000 Un Asbst 5.15 5.05 5.05 .05 9905 W Decal 7.25 7.05 7.05 .20 Total sales 2,830,000 shares. INDUSTRIALS Sales Issue High Low Last Net. 10705 Cominco 1925 Falcon 270 Fraser 6845 Gulf Can 1392 Home A 1200 Home B 1100 Home B 1970 Husky Oil 13882 ln Nick 2920 In Grp A 2000 raiser 5665 Moore 24ft 8 13"4 28 '4 34'l 26 85 ' 13'4 58 34 26 . 85"4 3Vt 13'4.., 28 '4 V. 34 14500 Norand 700 Peel Eld 1000 Westbn Intl 33'j 173 34V2 9V Rscs 4.30 4.20 42i 42 33'j 33 33- 33 33 Vt 17VI 17' Vi 34V'i 34V4 V 9 9 4.25 .05 42 14 36?1 15't 11 35V4 14 11 36 15' . 11 '4 Odd Lot Transactions NEW YORK (UPI) The New York Stock Exchange reported odd lot trans actions by principal dealers on Jan. 19 totaled purchases of 297,248 snares and sales of 570,369 shares including 5,510 shares sold short. . -' -J...' V YA-i, i I l - - y is. .v" O ;t .V . , . - . jr'r. . , . . ....... iiijk SIsH Phtfs by Gma Tr.Mnt Junior Achievement 'Movers' Meet Things got moving Thursday in the 1972 Junior Achievement campaign for backing in the business education program for young people. Helping students organize and manage their own small-scale companies is the task undertaken at the St. Petersburg Yacht Club by representatives of the business world. Aiding in the effort were (from loft) T. E. McLean, St. Petersburg Federal Savings & Loan president and president of Junior Achievement of Pinellas County, Farris Ra-hall, vice president and treasurer of Rahall Communications, and Ronald K. Sanders, executive director of Junior Achievement of Pinellas County. Financial and advisory support is given by businesses and individuals to Junior Achievement. The young people then put it to work. Jobless A new surge in construction combined with the seasonal pickup in service jobs last month to bring Pinellas County's unemployment rate down to 2.5 per cent. The Florida State Employment Service said the rate compared with 2.6 per cent in November and 3 per cent in December 1970. Statistician Mary Franc Poling said construction activity, already at record levels, featured the county employment scene. Building permits issued in December alone totaled over $45-million, she said more than double the December 1970 figure. A seasonal influx of jobhun-ters from the North was noted, Mrs. Poling said, but they were more than outweighed by new hires. v v A $40-million offering of Tampa Electric Co. (Teco) first mortgage bonds reached the market Thursday with a 7 per cent rate coupon. Proceeds of the series bonds, due in 2002, will be used to reduce short-term debt incurred for construction. Teco's construction program cost $46.4-million in 1971 and is projected at $70-million in 1972. Stone & Webster Securities Corp. managed the $70-million in 1972. Stone & Webster Securities managed the offering. The net interest cost to Teco was 7.3618 per cent, compared with an effective rate of 7.2305 per cent when the utility sold $35-milIion in bonds exactly a year ago. The company Thursday declared a 20-cent dividend on the common stock, payable Feb. 15 to holders of record Feb. 1. It paid the same amount In previous quarters. Florida Steel Corp. almost tripled its net income in the fiscal quarter ended Dec. 31, compared with the same thrae months last year. The Tampa-based steelmaker said mF-TW By United Press International Net Income (Per Share) Latest Period Year Earlier AMERICAN ELECTRIC POWER (Yr 12-31) $134,974,000 ( 2.43) $116,886,000 ( 2.30) ASHLAND OIL CAN. LTD. (1st Q 12-31) S 2,600,000 ( .20) 1,800,000 ( .14) BECKMAN INSTRUMENTS (2nd Q 12-31) $ 1,010,504 ( .28) t 974,919 ( .27) CARBORUNDUM (Yr 2-11) a-t 13,507,000 ( 3.68) J 14,532,000 t 3.97) a Excludes $965,000 ( .26) charge. CENTRAL ILL. LIGHT (Yr 12-31) S 14,517,736 ( 2.47) $ 12,704,203 ( 2.30) CHASE MANHATTAN (Yr 12-31) a-$l 47,686,750 ( 4.63) b $l 39,319,004 ( 4.37) a Excludes $64,058,259 ( .20) charge, b Excludes $16,690,212 ( .52) charge. COMMONWEALTH TEL.-PA. (Yr 12-31) $ 2,462,674 ( 2.49) t 2,269,624 ( 2.30) CORNING CLASS WORKS (Yr 1-3) a $ 37,023,078 ( 5 27) $ 40,168,131 ( 5.72) a Excludes $3,126,277 ( .45) charge. EAGLE-PICHER INDUS. (Yr 11-30) I 10,162,870 ( 2.22) $ 10,122,295 ( 2.20) FLA. STEEL (1st U 12-31) 1,508,821 ( 1.02) 581,485 ( .39) net was $1,508,821, or $1.02 a share, up from $581,485 or 39 cents a share. Sales climbed to $17,929,049 from $13,830,605 a year ago. Southeast Banking Corp. of Miami reported 1971 profit rose to $11,942,248, or $3.33 per share, compared with $10,892,043, or $3.06 a share, in 1970. Deposits in the holding company's banks increased from $1,060,121,376 t o $1,182,618,180. Rate Slips JlTS liTESSPIHAKCSBTJI 13 12TE3S mxcsBtrs I 1 ikessp jjlrcsbus ii IspisasCUiJOsinessI iiNANf londosspi pAECSBUSIKSSSPIS Rahall, Charter Profits Increase R a h a 1 1 Communications Corp. of St. -Petersburg and Charter Bankshares Corp. both reported sharp earnings gains Thursday for fiscal periods ended Dec. 31. Rahall, helped by a strong fiscal second quarter, had net income of $724,030, or 69 cents a share, for its fiscal half-year ended Dec. 31, up from $349,716 (34 cents a share) in the like six months of 1970. Revenues jumped 31 per cent, from $1,184,882 to $1,552,267. HAROLD HOLDER, president, said the results included a 30-cents-per-share tax credit and matched earlier estimates of a substantial improvement over depressed levels of last year. Charter Bankshares' net for the year ended Dec. 31 soared from $1,361,986 in 1970 to $2,639,997 in 1971. Bankshares, parent holding company of First National Bank in St. Petersburg and seven other banks, said consolidated deposits jumped 19 per cent from $243-million to $288-million. IX TAMPA, Crown Industries Inc. reported its net, exclusive of extraordinary items, climbed to $175,450 or 27 cents a share in the fiscal quarter ended Dec. 31, up sharply from $71,882 (11 cents per share) a year earlier. Revenues rose from $2,708,213 to $3,715,422. Greene To Act To Aid Housing Branding sub-standard housing conditions "a national disgrace," Raleigh W. Greene, president of First Federal Savings & Loan Association of St. Petersburg, called Thursday for a "massive mobilization of capital", from private financial firms to solve Florida's housing problems. . "There is no denying that more and more Floridians are unable to afford the type of shelter they want," he told First Federal's annual membership meeting. "This is a trend that must be reversed if our economy is to survive." Greene said he would present a specific plan for alleviating the situation in Florida to Gov. Eeubin Askew's Commission on Housing, of which he is a member. The commission meets later this month. "IT IS my belief that all types of financial institutions should mobilize a portion of their resources for housing," he said. "The creation of pools of capital can bring about the creation of the kind of housing we need and bring to an end the constant rhetoric about the housing we do not have." All of the area's savings -and - loan associations held their annual meetings Thursday, and First Federal's was not the only one to make news. At Home Federal second only to First Federal of St. Petersburg among Pinellas County associations the assembled members heard President Perry R. Marsh announce a cut in the firm's mortgage lending rate (see story on 1-B). MARSH TERMED 1971 "our greatest year ever," with assets rising $61-million to $233-million. Savings deposits alone ballooned by $55-million, and $2-million in earnings was added to reserves and surplus to bring the accounts to more than $10-million. Reviewing 1971, Marsh said its "record gains may not be broken for some time," but he predicted "another good year" for 1972. Directors elected Bette Navin and Alma Liskow to assistant vice president positions, promoted Nancy Dees to assistant secretary and named Roberta Huntt assistant manager of Home's Northeast branch. In Tampa, that city's largest association First Federal Savings of Tampa picked a new president. H. L. "Dusty" Crowder, who held the post, was elected vice chairman and Fred F. Church, formerly executive vice president, succeeded him. CODY FOWLER, Tampa First Federal chairman, announced the resignation or retirement of four directors Gen. Paul D. Adams (U.S.A.; net.;, L-an u. corein, worn? E. White and Leslie H. Blank and all were named directors emeritus to honor their long service. New directors elected wer Frank C. Stanley Jr., Auburn: dale lawyer; Parke Wright, president of Lykes Food Products Co. of Tampa, and Wil- i: i m i iidlll ii. VjUlt'Il, i iXUiyiX IclW t)AK The Tampa firm's assets' Dounaed irom jlb-minion to $290-million in 1971, even with-- out including First Federal of Auburndale and First Federal of Clermont, which are being acquired effective Jan. 31. REFLECTING THE general giuwui ji ootids, me aasuuid- tion last year organized a. branch in Carrollwood, Sunshine State Service Corp. and Sunshine State Mortgage. An-, other Tampa branch opens; next month and an application is in for a Brandon branch.-.. in area associations loio. their memberships of, new growth in 1971, and the Flori-' da Savings & Loan League un-' derscored the gains by announcing Thursday that the! statp's SAL rlpnnsits snared 28.6 per cent to $10.6-billion. Total assets rose to $12.2-billion and mortgage loans' spiraled $2.2-billion to $10-billion, said William D. Hus-sey, executive vice president. AT S T. PETERSBURG First Federal's meeting,, Greene reviewed his institution's own record-breaking year one that saw deposits rise 23 per cent to $519-million " million to $615-million. Mort-i gage loans shot up by $196-; million to $535-million. Richard H. Funsch, former' research manager of Times" Publishing Co. who joined' First Federal a year ago, was ! elected vice president for; marketing. Jack L. Anderson, 40, manager of the Lakeland ' branch, was elected vice pres c" ident and branch coordinator!" A show-stealer at First Fed-eral's meeting was William J. , Moran, an 88-year-old mem-;-ber who rose and recited poem. He dedicated it to!! Greene and Oscar R. Kreutz, ; board chairman, "because-they're pushers." ; The majestic Gulf-front condominium that defines you. And tells the world where you are. - ill it mmennee -iiium I IL 4YiT 1 uTir . fHUiUVh i i. .. t r t' tmii rhrfii i 4y4.. .. Luxurious condominium apartment and penthouse suites from $38,000 to $100,000. .Model apartment designed by Mardi Deranian, A.I.D., open seven days a week from 9 to 6. 4950 Gulf Boulevard, next to the Happy Dolphin Inn on St. Petersburg Beach. Phone 363-5961. By Port Builders, a U. S. Home Company listed on New York Stock Exchange.

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