Oakland Tribune from Oakland, California • 45

i TODAY'S BUSINESS- Late Rally -Prod ucriviry Md: Iriendily sec! apped I Corporate Group Meets President jn BUSINESS mmim This compares with the average 2.5 per cent from 1919 to 1947, But the current rate may actually be well above the 1 figures commonly used. Econo- i mists at Chase Manhattan Bank, New -York, point out that a measure of productivity should also include the part played by the increased use and efficiency 1 of capital. They say this added-1 an average of 1.5 per cent a year during the 1919 to 1947 period to that chalked up by the performance of labor with its1 new machines. OUTPUT CUT Heavy additions to the stock of capital in the earlier postwar Dec. 4,1963 45 By SAM DAWSON AP Business News Analyst NEW YORK (AP) A big ucui Blven mucn 01 we credit lor longer than average life of the present business upswing, But the three-year better than usual rise in productivity is being both damned and praised.

is being tied to jobs and unemployment and to wages and prices and also viewed as a weaponin foreign trade battles; Productivity thus means dif ferent things to different people, Its basic definition is how many units De turned out in a manhour of laboc io management this means the more units the lower the costs Thus new can be translated into lower prices, or maintained price margins, in competition with rivals at home or abroad. Or it can mean higher earnings, from which both future expansion and in creased dividends can be paid, LOSS OF JOBS For labor the recent increase in productivity otten goes now bythe-name 3 tautomationAnd xrmany indmduaHvorkerrihis has meant a loss of jobs, or the fear that still newer machinery will take away present jobs This is true both in factories and in offices years cut the output per unit of capital. But the bank economists Stock Gains Not Impressive to All By LOU SCHNEIDER 7 leaders aren't impressed by APPOINTMENT Thomas TV Edwards, 47, has been appointed vice president and general manager of Pacific Motor Trucking Co. Good Seen if Stocks Fall Our booming stock market bubble, my burst at any time but the results will just be "healthy readjustment," Stan ford Prof. Theodore Kreps told the Northern California Mortgage Bankers Association Tues day night at the Sheraton-Palace Hotel.

"The stock he told them, "is more overcapitalized at this moment than at any other tune in our financial his tory. But if there is a loss, it'll just be in "paper profits" money the investors never had anyway." Too many financiers he said, "are relying on inflation to bail them out of bum deals poor mortgage and housing oans, even bad investments in commercial property. For ex ample, the State of Maryland recently had to shut down all oi its savings and loan associa tions." Further, there's a good chance President Johnson may be able to get more of the Ken nedy program through Congress next year than the late Presi dent could have achieved had he lived, Prof. Kreps said. He predicted enactment of the tax cut bill by next April 1, re troactive to Jan.

1. There will be increased gov ernmental expenditures at a. levels, he prophesized, and "sta bility if not improvement" in foreign trade. He told the bankers that there also would.be (Da slight eas ing of cold war tensions, (2) slackening of space race pres sures and (3) somewhat greater price increases than have been marked up in the last three years. Prof- Kreps also predicted a 1964 gross.

national product of an increase in personal income of about billion up more than 5 per cent and an estimated billion increase in dis posable income (consumers with money to Joint Oil Deal Near Anchorage Plans to drill an exploratory oil well near the Beluga River, approximately 27 miles west of Anchorage, Alaska, have been announced by Standard Oil Co. of California, Richfield Oil Corp. and the Shell Oil Co. The new well will be about 2V miles northeast of Beluga River unit No. 1 well at 16,428 feet, the deepestw 1 1 ever drilled in Alaska.

Rowan Drilling Co. has the drilling contract for the new well. Production Dips NEW YORK MV-U. S. elec tricity production declined last week for the first time in at least a month.

Some NEW YORK Business the stock market's $15-billion as a greeting for President are corporate economists. Wall Street's spectacular 8t ALBERTS, SAMUELS Board chairman A. S. Samuels Chairman of Firm Albert S. Samuels, who founded the jewelry firm that bears his name over 55 years ago, has been elected chairman of the board of directors.

He has been succeeded as president of the firm by Albert I S. Samuels Jr. Irene McCarthy I becomes vice president and third generation of the family, Peter Samuels, is also active. Other directors of the com pany, which has stores at 17th St and Broadway in Oakland and at 856 Market San Fran- elry 3 to, III- i pi Wit Sends Mart To Upside Assurances of Early Tax Bill Passage Ups List NEW YORK The stock market closed higher today on laterally. The advance came bn news of Congressional assurances to President Johnson of coopera tion in early passage of the in come tax cut bill.

Trading picked up to a heavy pace and the New York Stock xchange ticker tape ran late! or the third and fourth times! in the session. Prices had been mixed during morning. Chrysler led the rally, gaining more than 3 points. U.S. Steel was up nearly a point following the sixth weekly rise in steel production.

Trans World Airlines 'and American Airlines, both up a point, hit new 1963 highs. Volume for the day was esti mated at 4.7 million shares against 4.54 million Tuesday. Prices had been mixed through the morning. 0 Savings and loan association issues were strong. Chrysler advanced more than pointsndeneralrIotOTs shook off a fractional loss and added half a point.

Xerox, of 8 points at one pe riod, shaved the loss to a point. Prices on the American Mock Exchange were irregularly high er in moderate trading. Suit Seeks To Stop Sale Of Tulsa Bank TULSA, Okla. W-k suit was filed today seeking to block the sale of a national bank closed because its bookkeeping fell behind its business. Attorney Paul Hazen, identi fied as an organizer and stockholder of Southern Hills National Bank, filed the suit against Southern Hills National Bank of Tulsa and the federally-appoint ed conservator of the bank, WUliam H.

Greenfield of Dallas. The suit seeks return of the bank's assets to its original or ganizers. Hazen represents about 5 stockholders in the original Southern Hills bank, which opened Aug. 12, then was closed by Comptroller of the Currency James Saxon Nov. 8 because a I rush of business by a "no service charge offer had overtaxed bookkeeping facilities.

The suit, filed in state district court, alleges that a sale of assets arranged after Greenfield took over as conservator was illegal and fraudulent" and came about because of "duress, men ace, fraud and undue influence." The contention of duress was based, the suit said, on a claim that directors were told the bank would be involuntarily liquidat ed if the sale proposal was re jected. A new group headed by Lynn Helm, president of Tulsa Na tional Bank of Commerce, opened the Southern Hills bank Monday, giving about 31,000 de positors their first normal bank ing facilities in 26 days. CoIIeqe Grants NEW YORK UP) The Esso! Education Foundation will make grants of almost $2 million to colleges and universities for the 1963-64 academic year, the larg est sum since the grants were begun in 1955. The foundation is supported by Standard Oil Co. of New Jersey and six affiliates.

ANNUMPAID QUARTERLY to $10,000 bV Savings and Loan and than add to your convenience Accounts as $1.00 Us our con- account coupon mail pass book from your at no cnarge. I I H6rt Savtrtr md Lomi Niaunnoa It Rising productivity is behind! the for a 35-hour week, higher fringe benefits, even in some cases a demand for a curb on future mechanization. For government the rise In production-has of late become a guideline for what is permissible, in the public interest, in the way of rising prices and wages. It is also a key factor in the drive for a greater rate of economic growth. For theymoney managers the rise in productivity in the United States has been one of the chief helps in keeping American goods competitive in world markets, thus increase exports and reducing by that much the surplus of outflowing dollars over returning dollars known as the deficit in jthe balance of payments.

HIGHER RATE In 1961 productivity gained by 3.3 per cent and in 1962 by 3.9 per cent The rate this year is believed even higher. Newer equipment now being planned or tested promises still further gains in the unit output per manhour pf7 Iabor-3o the" de- light of some, to the dread of others. There have been marked ups and downs the rate of increase since World War II, but the average has been 3 per cent. from Contra Costa County, Dumbarton, Pleasanton, Uvermore, San Jose, Vallejo, San Rafael-Ask Operator for ENTERPRISE 12422 No intercity charge!) Or call your Travel Agent or airline. Service, write Jack London Squarj Oakland, California of spurt in securities values Lyndon B.

Johnson. Neither price spurt was factually based on anticipation of i wave of "Johnson infla ion While a member of Congress, the President was a Roosevelt New Dealer, believ ing in any kind of federal spending to give work to the un employed. But i leaders don't amble do Wairstreeters ney make jneir decisions on what they know or can actually expect. They know that when a man moves from Capitol Hill to the White House, his ties with the egislative branch of the' govern ment are greatly altered. This was factually so in the case 'residents- Truman and Ken nedy.

inaction, because of uncer tainty, will dominate business planning until President John son's program has settled into a discernible pattern. Some hinl of that program may come from his State of the Union, Economic and Budget messages to Con gress in January. But even those hints will no be, entirely acceptable as solid ground for business planning. Reasons: No one knows whai the Democratic Party platform will contain even if Lyndon Johnson is nominated next August as its Presidential candi date: or what he will promise in his campaign speeches; or if he will be elected next November. 0 0 No one expects a serious down ward adjustment dur ing the period of transition.

But business leaders will not ac cept the stock market price behavior as an economic indi cator. They would rather have a clue from consumers the people That's why they will watch auto-sales figures closely. 0 0 0 Commercial bankers are par ticularly interested in Presiden Johnson monetary policy. If he will go through with Kennedy'; plan to appoint the liberal eco nomist Seymour Harris to the Federal Reserve Board when the term of J. L.

Robertson expires at the end of next January, tha they say, will provide a clue to the trend of the President's eco nomic thinking. 0 0 0 Quite a bit of luncneon ana bar talk in the Wall Street dis trict has it agreed that Presideni Johnson will surely ask Congress next January to repeal the divi dend tax credit to shareowners, He never did like it, and is expected to demand that Con gress wipe it off the books. Containers NEW YORK (UPI) Trade sources estimate that plastic containers now account for per cent of the $23 billion-a year packaging business, or twice the share three years ago, I I WASHINGTON (UPI) Th business community appeared oday to be in a friendly mood toward the Johnson administra tion, principally because of the new President's previous record as a senator, Business spokesmen said unof ficially that Johnson's record suggests that he will promote he kind of economic policies hat should maintain the cur rent era of relative prosperity The President gets a chance chat first-hand about the subject today when he confers this evening with members of he Business Council the in fluential organization of corpo ration presidents and industria leaders. LATEST IN SERIES Thfe session was the latest in a series of Johnson meetings with representative. Tgroups rom throughout the nation.

The President conferred with President George Meany of the AFL- CIO Tuesday and was to meet with the AFLCIO Executive Council shortly before the Busi ness Council session. "The Business Council. was in he capital today Tor its annual December meeting. Johnson ook advantage of the occasion to invite its members in for a "get-atfcuainted" session. The White House said the President wanted to talk to the Business Council and the labor group and ask their support in matters dealing with the na tion's economy.

ADVISORY GROUP The council which serves as an advisory group to the government has predomi nantly Republican loyalties. But all Chief Executives, including President Kennedy, assiduously courted its favor. Among the first phone calls made by Johnson hours after he was sworn in was one to council Chairman Frederick R. Kappel, board chairman of American Telephone Tele graph Co. 'Return to Security Business1 Hit HOLLYWOOD, Fla.

(7 A "return to the securities busi ness" by banks was assailed to day at the 52nd annual conven tion of the Investment Bankers Association of America. Under attack was a controversial regulation issued by James J. Saxon, comptroller of the currency, which permitted nationally chartered banks to operate collective funds, usually trust funds in which securities are administered collectively for various clients. Herbert R. Anderson, chair man of the IBA investment companies committee, attacked leg islation now pending in Congress that would confirm Saxon authorization.

Anderson said this would be "bad for the banks, bad for the securities business and bad for toe public generally." He recalled that in the early 1930s, following the stock market crash of 1929, Congress passed legislation divorc ing banks from the general securities business, while also pro viding for the regulation of the securities business and the protection of investors through full disclosure. Anderson said that if the pro posed legislation were to pass, "banks not only would be free to return to the securities business, in this manner but to do this under an exemption from the federal securities laws." 4 XA i i t' I I I j4 think this may have risen again as capital expenditures tapered off, so that "the recent picture 1 is a bit more favorable tnan output per manhour 'data indi cates' The trend to greater productivity seems likely to continue. As the bankers say, "there is reason to think that the ed-; ucation, research, management, improvements and technical progress, which are behind the productivity advancerwiUr abate. So all the gainsi rom this new productivity will be with us, And also most of its problems may remain. 94607 sadfM Cisco, are George Graham ana Frank McDonald, 7 li I'.

Richard G. Thorpe investment counsellor with Willis and Christy, San Francisco, greets colleague Robert F. Maguire "of the firm's Los Angeles office, who arrived on United's jet flight 850. For Mr. Thorpe, meeting Mr.

Maguire was easier at Oakland International: from his Montclair home, he saved driving time and parked just a few steps from the lobby. And from the new $20 million jet terminal, it was but a short drive to their business meeting scheduled in downtown Oakland. You, too, can benefit fromhe strategic location and "park less, walk less, relax more" advantages of Oakland International. It makes sense to FLY OAKLAND JETS and it's good business, too! lit Pan Am Splits; Hikes Dividend NEW YORK lav-Directors of Pan American World Airways have boosted the common stock dividend by 50 per cent and rec ommended a 2 for 1 split effective next year, They also disclosed details of a $60 million offering of converti ble debentures to Pan Am common stockholders to be made in January. Juan T.

Trippe, president, said the company believes the pro posed split and the higher divi dend will make the stock more attractive to investors and widen the market for the stock: A dividend of 30 cents a share will be paid Feb. 19 to share- owners of record Jan. 29. This compares with the pres ent 20-cent quarterly rate. The board said it plans a 15 cents a share quarterly dividend rate if stockholders approve the proposed split at the annual meeting in May.

financing plan calls for shareowners to receive debentures on the basis of $100 princi pal amount for each 11 to 13 shares of stock held on the Rec ord date. Corrosion Costs CHICAGO (UPI) The use of fiberglass linings for tanks and pipes can save millions dollars in losses due to corrosion every day, Jack W. Runkle of Owens -Corning Fiberglas Corp. believes. He estimates in dustry's national corrosion loss at $8 billion a year.

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