The Boston Globe from Boston, Massachusetts • 73

1 Si WWW, iWWWI.i I I. 'Ml. I. I III .11 pW.i,j wu. mi i 1 tiff f-v Ford Marathon Continues; Pact May Be Near FINANCIAL v4 Wednesday, October 18, 1967 73 Volume 192, No.

110 DETROIT As board chairman Henry Ford II stood by only a few floors above, negotiators for the United Auto Workers and the Ford Motor Co. ended another long bargaining session Tuesday. Bargainers, headed by U.A.W. president Walter P. Reuther and Ford vice president Malcolm L.

Denise, ended their session shortly before midnight after 13 hours. Bargaining was to resume early today. Bargainers met for a total of 30 hours during a 38-hour period Monday and Tuesday Without Surtax Business Sees Inflation Ahead By JOSEPH R. SLEVIN WASHINGTON Big business th.is week will give the Administration a confidently optimistic 1968 economic forecast but it will warn that a damaging -iiiiiiiiiiiiiniii mmniii iriiiiiiy IT'S A PIGGY PACKER New York Central has container off a trailer bed and onto a flatcar or vice-borrowed an idea from the logging trade with this versa. This one went into service at the Central's mobile lifting machine.

It will lift a Allston today. Rusk Opens Campaign to Block Import Quotas lion realized in the export of U.S. products over the last 12 months. "For every $2.50 imported, we export $5 commercially," he commented. "We have a good business and a lot to lose." Rusk asserted that the various protectionist proposals before Congress would negate the freer trade agreements negotiated at 'the "Kennedy Round" and would impose new barriers by erecting tighter quotas on $5.7 billion of U.S.

imports. Rusk also said enactment of import quotas would "not only destroy the advance made in the Kennedy Round but reverse a long standing national policy" of seeking freer world trade. Vnttd Ftcm IntcraitloDiI WASHINGTIN Secretary of State Dean Rusk led a cabinet delegation today in warning that a congressional drive to curb imports would undercut U.S. foreign policy, trigger higher prices and threaten "a serious depression." Rusk and the secretaries of agriculture, commerce and interior opposed quotas in testimony before the Senate Finance Committee. Quota bills being proposed for oil and other commodities would mean the United States must be willing to forego "the benefits of competition and pay the costs of substitutes, fewer choices, higher prices, lower profits "The consequences of such a repudiation would be critically detrimental to our basic national interests," he testified.

Rusk was the first of five cabinet members sent to Capitol Hill to testify at the Senate hearings against proposals to set import quotas in a long list of commodities, from steel to baseball gloves. The Administration, trying to head off congressional attempts to reduce imports, has drafted a plan to give tax breaks and other aid to businesses damaged by foreign competition. It would give an immediate tax refund to a business that showed it was injured by imports. and reduced Rusk said. "We would have a poorer life.

Perhaps it would be endurable althought we cannot lightly dismiss the danger of precipitating a serious depression." He also declared hostility and discontent when we need peace and cooperation." Turning to specific areas, Interior Secretary Stewart L. Udall said if the United States clamped on import restrictions, foreign government would retaliate probably by curbing overseas purchases of American coaL Agricultural Secretary Or-ville Freeman noted that quotas on foreign farm imports would bring retaliation in kind, injuring the $6.8 bil the longest continuous bargaining since the walkout began Sept 7. Neither side had any comment in keeping with a news blackout that has curtained talks for more than a week. "I am up here quite often at night" the board chairman said when asked about his late-night presence at Ford headquarters. Asked if settlement in the 42-day strike was near, Ford said, "you will have to ask Walther Reuther about that "I think we can settle for about $4 or $5 if we care to offer it," Ford added, obviously joking about the amount of money the company would be willing to give workers in hourly raises in a new contract Despite a marathon session the first that ended at 3:15 a.m.

Tuesday and the fact that bargainers hastened back only a few hours later, a source close to the talks said Tuesday that he was "pessimistic" a settlement was close, even if bargaining held to its present pace through today. bargaining started last July, the union presented a list of demands that included a big wage boost with something extra for skilled workers, guaranteed annual income, parity for Canadian workers, and pensions improvements, among other things. Auto workers now average $3.41 an hour in straight time pay and get another $1.30 in fringe benefits. Ford offered, in the only proposal made public, an immediate 13-cent an hour wage bosst with additional boosts of 2.8 percent in the second and third years of a three-year pact, plus other improvements. It estimated that package would increase workers' wages and benefits by about 35 cents an hour over three years.

There have been reports, unconfirmed, that both sides were about three or four cents, apart on a contract that could increase benefits by some 90 cents an hour in three years. According to these reports, issues such as contracting work to employees other than the company's were blocking settlement. Stockholder Blessing on Anelex-Mohawk Data Inflationary surge will be touched off if the government fails to cut spending and to raise taxes. Its spokesmen will tell top administration officials that prices will jump percent next year even with an anti-inflationary tax and spending program. They will warn that the rise will be much steeper without it.

The business views will be presented to the administration representatives at the semi-annual, work and play meeting of the powerful Business Council. The group will gather at the plush Homestead in the autumn-flecked hills of southwestern Virginia. The Business Council members and their wives meet at the expensive Hot Springs resort each May and Oc-tober. The members include the heads of many of this country's biggest automobile, steel, electrical, glass, aircraft, textile, chemical and other corporations. Mobil Oil Corp's chairman, Albert Nickerson, is the current Business Council chairman.

Federated Department Stores chairman Ralph Lazarus heads the group's economic committee and will deliver the business outlook report. Most of the Lazarus predictions will reflect the composite judgment of a group of prominent business economists. The Business Council calls them "technicians" and they put their findings together last Tuesday at a closed-door meeting in a downtown Washington hotel The economists predicted that national output will climb throughout 1968 and that it will chalk up a big, full year gain of $55 billion if the necessary tax and spending curbs are imposed. A $55 billion rise will boost national production to a new, record-smashing high of $838 billion from this year's expected peak of $783 billion. The Business Council forecast is closely in accord with the thinking of the President's own Council of Economic Advisers and with the judgments that most other private economists have been voicing in recent weeks.

The cheeriest word to come from last Tuesday's meeting is a conclusion that the damaging 1967 inventory recession is at an end. While retailers were known to be ready to start adding to their stocks again, a round-the-table check of key manufacturing corporation economists on Tuesday revealed that big business plans to begin building up its holdings, too. Sharp inventory buying cutbacks caused the temporary business slowdown earlier this year. Renewed inventory buying will lead to fresh production increases and will add to the powerful array of expansionary forces that already are pushing economic activity to new highs. The business experts made it clear that they ex-, pect rising government spending and mounting consumer buying to provide the main upward thrust in 1968.

The Federal government will spend more heavily than in 1967 even if the President chops outlays below the amounts that now are in prospect. State and Anelex common. There will be 2.4 million shares of MDS outstanding. Anelex makes printers for the communications and computer market MDS makes, rents and sells data recording equipment Their combined sales and revenues will be about $35 million annually. Anelex president Herbert Roth Jr.

will continue in that position and also assume the Mohawk stock, now traded over the counter, will be listed on the American Stock Exchange Monday. Anelex will operate as a wholly owned subsidiary and its stock will be removed from the Amex list at the close of trading Friday, Terms of the merger are for issuance of one share of MDS in exchange for each three shares of outstanding The- marriage of Boston-based Anelex Corp. with Mohawk Data Sciences Herkimer, N.Y was sealed Tuesday. Stockholders of both companies voted overwhelmingly in favor at separate meetings. The Anelex stockholders' meeting was held at company headquarters on Causeway st At both meetings the vote was about 99 percent for the merger.

Financial Notes position of chairman of the executive committee of the MDS board. Roth said Tuesday there may be some shifts in manufacturing and manpower and that the net result should be a "fattening" in employment by both operations. Both companies have healthy backlogs, Roth said, with the Anelex figure up 30 to 40 percent over this time last year. He said that analysts' predictions of 80 cents earnings by Anelex will not be far wrong despite shared costs that will exceed $150,000 because of the merger. Anelex sales for the nine months ending July 2 were $12.9 million with net income at 49 cents a share.

Roth predicted Anelex will be working two shifts within a year. Currently the company is operating at one shift plus on an overtime basis. MDS is a little over three years old. Its basic product, the Data Recorder, permits direct transcription from source material to standard magnetic tape, eliminating the need for punched cards. Universal American Agrees To Gulf Western Terms -iSO Monday thru Saturday 5 Issuance of 901,140 shares for the acquisition of Countrywide Realty a real estate investment concern.

TRW Inc. plans to acquire Hazelton Laboratories Inc. for an undisclosed amount of common stock of TRW. Baxter Laboratories Inc. said it will build a new $3.5 million plant at Costa Mesa, to house administrative and scientific operations of the Hyland division, producer of medical diagnostic tests.

From Wirt Servleet NEW YORK Gulf Western and Universal American Corp. agreed in principle to merge Universal American into Gulf Western. Last week Gulf Western said it had purchased 31 percent of Universal American's outstanding stock and planned an offer to acquire the remaining shares. Gulf Western will issue one share of its $1.75 preferred stock, covertible into 3.09 shares of Gulf it Western common, for each 6H shares of Universal American common. The compaines said the securities would represent $29.08 in market value for each common share of Universal American.

Universal American common closed at $24 on the N.Y. Stock Exchange yesterday, up 1. The agreement is subject to approval by directors and stockholders of both companies and would be carried out as a tax-free reorganization. Lawrence I. Weisman, former president of Fifth Avenue Coach Co and retired president of Pathe Industries, has made a tender offer to purchase 150,000 shares of WoodaU Inc.

at $30 a share. Stockholders of Realty Equities Corp. approved the Games Investors Play n.1 I OUR FINE OWN MAKE SPORT JACKETS OUR FINE OWN MAKE SPORT JACKETS local government spending also will go up. Consumer spending will rise despite the fact that consumers will continue to save more of their incomes than they normally do. More people will have Jobs.

They will work longer hours, will earn higher wages and consequently will have more money in their pockets. The Business Council will tell the administration that only one major part of the U.S. economy will be sluggish next year and that will be business spending for new plants and equipment. While one expert startled the Tuesday gathering by predicting a substantial 8 percent jump in purchases of new buildings and machinery, the consensus of the group was that outlays will rise by no more than 2 percent Given a choice, the administration would rather see business investment climb 2 percent than 8 percent. President Johnson and his advisers are worrying about curbing an inflationary boom in 1968.

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