Oakland Tribune from Oakland, California • 46

I Mav-Be Eased ITn BUSINESS I uies TODAY'S BUSINESS Tax Day Today For Businesses By SAM DAWSON AP Business News Analyst On Cash for Houses 46 DCS CjlUnbiiilritrunt Wed, June 15,1966 contrast- ducafion Pays, big spurt in economic demand for tax loans is just -that much more of a burden to banks hard pressed to find lend--able funds. DRAW-DOWN And some of the funds the; banks have built up will be; drawn down by the tax deadline. These are the certificates of deposit which corporations have bought from the with the aim of meeitng the tax bill Nearly $4 billion of these CDs come due this month, $717 million of them today. The CDs are a favorite device of corporations to keep idler money busy now at around $Vt per cent until needed, NEW YORK (AP) This is tax day for the nation's corporations. And the bill is a hefty 25 per cent higher than test June 15.

One way or another, big and little business firms must fork up more than $8 billion today for the U.S. Treasury. Higher -interest rates and a scarcity jot money available for borrowing will -squeeze many companies. 1 Many of the largest corporations probably have long since prepared to meet the tax collector. But bankers say some of the smaller firms have been having trouble finding money to borrow.

NEW RULES Inflation Takes By WALLACE S. WILLIS Tribune Financial Editor "Mirroring two and a half decades of growth and prosperity, the economic value of a man in the United jStates has crossed the quarter of a million dollar mark to add a national progress." This is an encouraging report from the Institute of Life Insurance, which placed the figure at $260,000 in 1964 after studying the latest information from the U.S. Census Bureau. then along comes this discouraging note from "The bigger tax bittnhls7eaTtMan: Note-Able California personal in-come is expected to reach $64 billion during 1966, a 7 per" cent gain over the $59.5 billion earned in 1965. The gain marked improvement over the less than 6 per cent growth rate in 1 965.

wtMM, economics Dion Imtnt nk America of 1964 as compared to Grade school, $219,000, than last stems from the U.S. Treasury's new collection rules more than it does from the larger profits on which to pay the levy. Formerly corporations paid 18 per cent of the year's estimated income tax in the first half of the year. Last March Congress passed a Tax Adjustment Act to boost first-half payments to 24 per cent. Corporations paid part of last year's remaining income tax March 15, and 12 per cent of this year's estimated tax April 15.

Another 12 per cent is due to- daoiwitb the JiaaLp jnent for 1965's taxes. LIKE WITHHOLDING The purpose of the new law was to put corporations on a pay-as-you-go basis by of next year something like the withholding tax on personal paychecks. In the long run corporation's total tax bills remain the same. But getting closer to a pay-as-you-go schedule is putting a special, if temporary, squeeze on corporate treasuries this year. It's also putting a squeeze on many banks.

The demand for loans has been soaring with the NEW COLOMBO BAKING CO. PLANT WILL HAVE CONCRETE TILT-UP WALLS Construction of 40,000 square foot' building off Nimitz Freeway starts soon school, $303,000, up from college, four years or more, $444,000, up from all men, up fom $133,000. Hugg ins Resigns as Central Bank President William A. Huggins has resigned as president of Central Valley National Bank, it was disclosed today. There have been reports circulating for several weeks that he was "out" at the bank, which has its headquarters here.

California business and the "climate" in which it jperates are more and more the subject of special or i continuing studies. For years the state was Food Price Hike Now Would "Protect ConsumerrLater WASHINGTON (UPi)-The Senate Agriculture Committee contended in a report today that food prices should be permitted to rise to protect consumers against the threat of future shortages. The report, drafted by Sen. George S. McGovern, Chairman Michael G.

Raf-ton would say only that Huggins submitted his resignation on May 18, citing poor healthjs a reason The resignation, Rafton said, was delivered a short time after the last meeting of the board, from which Huggins also has resigned. The replar monthly meeting of the board is scheduled for today and some action is expected on the resignation. It already has the approval of the executive committee, Rafton said. There has been no indication, however, if the board will name a new president today. Rafton has been acting in the position since Huggins went on a leave of absence April 29.

Huggins could not be reached for comment, his family indicat Profit Taking Cuts List in Heavy Trade NEW YORK (AP)-The stock market stumbled on profit taking and closed mixed today. Trading was heavy. Stocks sought to make another in a series of advances but selling got the upper hand and early gains melted away to a large extent. Trading was the heaviest this week as profit taking and reinvestment met head on. Goodrich held a gain of 2 or better but airlines fell away California Building Woe Cited WASHINGTON (AP) Home Loan Bank Board of ficials were, reported to have agreed today to ease financing retaliations in California to raakeinorenoneyfor-consta tion of houses.

Concerned about a tight mon ey market situation which they said has drastically slowed down home building, nearly a dozen representatives of savings and loan associations from San Diego met with board chairman John Home and his staff. Four California Congressmen who serve on the House Bank ing Committee joined in the conference. Rep. Del Clawson, one of them, said that while details are still to be worked out in regard to changes in the regulations, the revision should ALilDJUAie a greaterflowjjf deposits into savings ana loan associations, and thereby in crease the amount of funds they have available to lend. One change, he said, will permit the associations to offer bonuses on deposits of certain sizes as an added inducement to potential depositors.

Another will revise reserve require ment in order to ease borrow ing. He noted htat as of July 1, California savings and loan in stitutions will be permitted to pay 5 per cent on deposits, as against 4.85 now allowed. And said that the rate of interest to the home builder runs about 7.5 percent. Clawson said Home and the other members of the board seemed to be sympathetic and to- understand the tight money situation is more acute in California and Nevada than probably anywhere else in the nation. Other congressmen with Clawson at the conference were Reps.

Burt L. Talcott, Richard T. Hanna, arid Thomas M. Rees, D. Others participating in the conference included Frank Hardinge of Los Angeles, executive manager of the California Savings and Loan League, and Howard Edgerton, Los Angeles.

Record Sales For G.M. But Chevrolet Off DETROIT (UPI) Sales fi gures for the first 10 days of June released by the auto industry's "Big Three" yesterday showed declines for Ford and Chrysler from sales levels of the similar period last year. General Motors reported a new record although sales of its top-selling Chevrolet were off 15 per cent. Chevrolet announced it had begun shutdowns of three plants for early change over in prep aration for introduction of a new model to compete directly with Ford's highly-successful Mustang. One plant, at Willow Run, was actually shut down yesterday, while those at Norwood, Ohio, and Los Angeles will close June 24 and July 1.

FPC Nomination WASHINGTON (AP)-President Johnson announced he is nominating Lawrence J. O'Connor Jr. for another five-year term on the Federal Power Commission. PRIME OFFICE SPACE IN OAKLAND Availablt Auf. 31,1966 Up 40,000 ft.

33c i ft. EL DORADO BUILDING 360 22d. St. Tl 4 5900 DON'T MISS TODAY'S OUTSTANDING BUSINESS OPPORTUNITIES See Classification 110 TRIBUNE 'CLASSIFIED More Than a Million WantAdiin 1965! a accompanied a i farm parity resolution approved by the committee for action on the Senate floor. The resolution would state the intent of congress that all government agencies should be governed by earlier laws setting parity prices for farmers as a national goal.

Parity jsjefinedby lawas a price which gives a farm prod uct a fair value in comparison with the cost of things farmers buy. Farm prices currently are at 79 per cent of parity. The committee estimated that the average American consum ing- he-is tHownHffl-buswfro certificates are bought with the idea of cashing them to pay the tax collector. Other big corporations have bought tax anticipation Treasury bills. The Treasury has-about $4.5 billion of these! maturing this month.

These will pay the tax bills of many companies, who have been collecting interest on them while the Treasury has been enjoying use of the money in advancement of tax payment date. IOUs TOO Some corporations issue mercial paper to raise cash. These forms of IOUs have been per cent. Other companies may sell various securities, both federal and municipal, to raise tax money. But a lot of firms have arranged or tried to borrow; from their banks.

The big problem here is that the banks' already are short of money to lend. And the borrowing by member banks from the Federal Reserve System to get more lendable money is now at highest level in six years. So today the tax collector may be the only one you can be sure is happy. er spends 18.2 per cent of his after-tax income for food. Increasing farm prices to full parity would boost the nation's food bill to about 19.4 per cent, it said.

"The very small amount of income required to achieve par-ity. farm prices could be easily absorbed now. This would, by assuring a healthy and productive farm food plant, prove a bulwark of economic stability in years just ahead when population pressure on food capacity is increasing," the report said. 1 -ZIP- LYNCH, SMITH IINTC Tax Foundation, Inc. "Charlie Green, an imaginary, but fairly representative American citizen, married, the father of two children and earning' $10,000 annualy, lost an estimated $268 because of inflation in the period March The post-world War II growth in the economic value of education is indicated in further breakdowns by the Life Insurance Institute 1949.

up from high looked upon by outsiders as courteous service, call string of losses Autos also were down as a group. Electronics weakened and showed many minus signs. Aerospace stocks remained generally higher. Volume was estimated at 8.7 million shares compared with 7.72 million yesterday. The market rose at the start in a continued celebration of the topping of the 900 level in the Dow Jones industrial average.

i ust a'wide area of lavish claims with no real basis in fact. Attitudes have changed, if grudgingly, since Califor- nia became the No. 1 state in population, personal in-- a few-other items that have made it attractive to imaginative and far-sighted business enterprises. Look magazine is out today with an issue devoted to California. And for one of the few times we can remem-; ber a report on the business aspects of the state is pre- sented pretty much in perspective.

I Sure, any nitpicker can find points about which to quibble including one pretty young lady editor who was shocked when she found herself described as "bosomy" and as an I But overall the story of "California: The First Mass I Aristocracy Anytime, Anywhere," is pleasant reading. We would like to offer a couple of samples of the writing of T. George Harris, Look senior editor i "The overriding reality is abundance widely shared, I. and multiplied, through an interwoven public and pri-t vate economyScarcity makes men servile, scroungers foFbread and, lafeTTfoflheTeassuring symbols of mid-; dlelass security. But in California, nothing stays scarce very long What next? Each year, thou-'-, sands more Californians discover that, like aristocrats i of old, they are not seriously limited by economic cir-1 cumstance." Harris, after discussing many of the diverse ele-! ments present in the California economy and the basis for.

the title of his article, reports this observation by "one new aristrocrat" "Innovation is the status quo." And then Harris concludes "It has to be. Signs of social disorder from right-' wing movements to Berkeley riots point to a specific personal need: to become a full participant in the ac-' tion, to shape the forces of radical change. From once-passive affluents in the middle class, old and young, comes a rude demand for the right to do more than work and vote. If this energy can find channels for real service, it will build, not destroy. "The beauty of California abundance lies less in what it gives than in what it begets.

Brain-made and robot-aided, the rich economics of mass aristocracy compels men to weave a social fabric to match." 0 Lest Californians become dulled by a succession of successes, here is a report from the chief statistician's division of Pacific Telephone and Telegraph Co. "California business activity has leveled out at a rec-' ord high A flat pattern of movement is evident This current hesitation in the business expansion may i well reflect the passing of a substantial portion of the I recent accelerated growth associated with the escalation of the Viet Nam effort. "At present, analysis of the California economic sit-? uation does not suggest the expansion has run its 1 course. But it does indicate that the economy is operat-' ing under a somewhat greater stress. And it indicates also that the balance of factors is not so strongly positive now as was the case six or eight months ago.

"Yet, somewhat concealed by the notoriety of the i Viet Nam activity is the fact that recent economic gains i have been heavily based on civilian demand. Such stim-; ulus from business and consumers for goods and serv-; ices, coupled with the existing military-related demand seems to assure further moderate economic expansion in the months ahead." Colombo To Build New Plant Colombo Baking Co. of Oakland, producers of sour French bread, will build a new plant on Julieann Way just south of the Coliseum Drive-in Theater. The 40,000 square foot plant and distribution center on a 3.7 acre site will represent an in-vestmerttef appresimately $650-000, according to Robert Sciac-qua, manager. Work will begin in about two months and completion is scheduled in from a year to 18 months after, Sciacqua said.

Colombo, which is presently situated in a 20,000 square foot facility at 59th and Canning Streets, distributes through much of Northern California. The new plant provides space to increase production four times, according to Sciacqua. A rail spur will serve the plant on the south side and permit bulk flour delivery and storage in two circular towers. Up to now the company has han- died its flour in sacks. Colombo employs 125 persons in production and distribution at and Sciacqua anticipates an increase in this figure.

The existing plant will be put on the market for sale or lease, he said. CORPORATE REPORT SEEMAN BROTHERS for the 12 months ended Feb. 26: 1964 1965 Net Income 519,324 3,476,765 Sales 47,104,693 71,672,151 New York. N.Y. 10O05 Offices from Coist to Coni K-37 -TtL -Slit.

JIB. There's gold (and silver) in The Technical Side GUIDE FOR IHVEST0RS- by MERRILL LYNCH We publish it once every quarter a four-page comprehensive survey filled with enough fact and information to make worthwhile reading for almost any investor. It begins with a thoroughgoing rundown on the current investment situation. Then there is a discussion of the whole business outlook, focusing in turn on such factors as consumer spending, government outlays, and capital expenditures. Finally, there's a full page of Selected Issues 74 hand-picked securities, classified by investment type, together with figures on prices, dividends, and yields.

For a clear-cut review of just where American ness Huggins went on leave from the 27-brancfr chain approximately a year after he took over the presidency. He nad been head of the First National Bank of Oakland prior to that. Huggins was hired by Central Valley about the time a move started to break the trust agreement under which control of the bank had rested primarily in the family of the late Charles Partridge. Since that tune, a series of cpurt cases, both State and Federal, have been filed by and against the bank, its directors and others. All await settlement.

Odd Lot Transactions NEW YORK (AP) The New York Stock Exchange reported today these odd lot transactions by principal dealers for June 14: Purchases of 474,854 shares: Sales of 455,345 shares including 8,594 shares sold short. Aussie Conditioning CHICAGO (AP) The Borg-Warner Corp. announced purchase of a 50 per cent interest in an air conditioning company in Australia. good vacation replacements are hard to find manpower white glove girls are hard to beatl CHI Mi Hi tyiuti, till MANPOWER' THE VERY iEST IN TEMPORARY HEtP OAKLAND 452-1046 Btrktlty 149-210 Ittnir 413-7122 Walnut Cr.tk 939-6401 tm V'iii mi i business stands and where it seems to be For an objective analysis of the present investment For a selection of stocks to meet varied investment Just return the coupon below or phone and ask for your oppy. There's nc charge, of course.

a A technical analysis of gold and silver stocks is the main feature ot this week's edition of THE TECHNICAL SIDE. It includes the current outlook for these stocks, point and figure charts, and other detailed information based on technical analysis. In addition, THE TECHNICAL SIDE provides you w.ith a general review of the stock market and its recent activity, and other Background for Decision data. If you think technical analysis can help you in judging market timing, come in, write or call for your complimentary copy of THE TECHNICAL SIDE. THE TECHNICAL SIDE ii I iKkfrtuM Fr DteisiM Rrptrt Mr tin itrltw litmUr.

Please send me your current "Guide for -Harris, INCORPORATED "AlSr I Mm (Wire- 120 Brodwl, Mtmbtrs New York Stock Eichn(i for prompt, NAME. ADDRESS. CITY ft STATE. "VOUR PHONE MERRILL PIERCE, FENNER LTD 1400 Franklin Street Oakland, California 94612 Templebar 4-5733 Gentlemeni Please send me the new letter THE TECHNICAL SIDE Birk, Wilson Inc. ton ltoc Cchkc Pcinc ColT Iroc ticumi 1428 Franklin Street, OakUnd Telephone 832-2525 HEAD OFFICC SAN FRANCISCO iKiur cm ico tuoiK MtNto Oakland palo alto rADAOlM KIDDING AN JOSE IANTA ROtA RENO (us iitToiiiioei iicistMTiiMiicim nocj uicouioim iknimh 414 FMrtetartH MlitilUU TElatsr4-SZ4Z AddrttL.

City i Iff A ,1 1 1 i tin.