Del Rio News Herald from Del Rio, Texas on April 4, 1971 · Page 7
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Del Rio News Herald from Del Rio, Texas · Page 7

Del Rio, Texas
Issue Date:
Sunday, April 4, 1971
Page 7
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WEEK IN BUSINESS New Nixon Widely Discussed Plan By CAJOLE MARTIN AP Business Writer NEW YORK, (AP) - How much impact the Nixon administration's new plan to stabilize construction industry wages and prices will have on curbing inflation was a key topic of discussion In business circles this past wgeikv , ' , If labor and management looked upon the President's system on constraints on wages and prices as "a barrier to be circumvented, it will fail," said Labor Secretary J. D. Hodgson. But he predicted that if the plan were viewed as "an oppor-' tunity to bring needed stability, sound growth, increased employment and a bright future to atroubled Industry, then everyone will have gained immeasurably." In announcing the plan Monday, Nixon warned that "disaster lies ahead" unless the inflationary trend in construction is countered," On the other hand, the President said he en- visoned "a bright and prosperous future," if sensible restraint were practiced. It will be some time, however, before It will be known whether the new system'can, in fact, slow inflation in the building industry. The plan would establish labor-management boards to review _, collective bargaining agreements in each of, the construction crafts, with a committee representing labor, management and the public set up to review those boards' findings. Under the administration's system,, settlements would be acceptable if supported by productivity and cost-of-living trends, but only when they don't exceed average annual increases negotiated from 1961 through 1968, which was about 6 per cent per year. • But the system is a loose one, with the boards-and the committee given considerable latitude in Interpreting the criteria set forth" in the President's order. Hodgson added that the 6 per cent figure wasnt "a hard and fast one." Some observers noted that last year's settlements in construction average 15 per cent a •year, so equity: adjustment could wipe out the 6 per cent figure. Some crafts might demand more than' 6 per cent this year in order to maintain their traditional lead over other crafts that settled for 15 per cent last year. Hodgson said some of last year's larger settlements might have to be disregarded in making equity adjustments this year. Leaders of construction unions weren't; happy about the President's ' executive oi;der. They said they would "obey the law" but would fight the President's plan by all legal means available. LW. Abel, president of the United Steelworkers union, which faces industrywide negotiations with stee.1 companies this summer, said his union would not accept any wage limit similar to that applied to construction bargaining. The same day the President raoVed to curb the construction industry wage-price spiral, the Congressional Joint Economic Committee issued a report which concluded that the economy was not likely to attain the Nixon administration's growth goals this year. The committee majority called for creation of a board to apply voluntary guidelines as a means of restraining wage and price increases. A minority favored a national network of ' 'productivity c ouncils'' to achieve efficiency. Both approaches have been advocated by Arthur F. Burns, chairman of the Federal Reserve Board, but the administration generally has been opposed to such plans. On Wednesday, Burns told a Senate Banking subcommittee that the Federal Reserve Board unanimously opposed a proposal to let the board apply reserve requirements against various types of bank loans. instead of against only various classes of deposits. In other developments this past week: — Lockheed Aircraft Corp. DEL RIO (TEXAS) NEWS-HERALD, Sunday, April 4, 1971-7A Stock Market Goes Dull Week NEW YORK (AP) - Lackluster activity characterized stock market activity the past week. Stock market prices drifted fractionally within a narrow range as institutional and individual Investors stepped to the sidelines.' Analysts said they were^awaiting some encouraging economic news developments./ The Dow«Jones average of 30 industrial stocks finished at 903.04, down 0.44 from the week before. However, the broader based New York Stock Exchange index of some 1,200 common stocks registered a gain of 0.39 at 55.58. Big Board volume was 74.70 million shares, compared to 77.93 million shares the previous week. The largest turnover during the week was 17.61 Del Rio Realtors Go to Institute A LONG TIME AGO-Pragedes Padilla Jr. is shown here the way he looked about 1948 when he first started working for H.E.B. part time. He became a fulltime employe in 1951 and now the assistant manager of H.E.B.'s downtown store No. 1 in Del Rio has beeff honored for 20 years service. Two Del Rio Realtors will' attend the Texas Realtors Institute in Houston Sunday through Saturday of this week. They are C. C. Belcher and C.G. "Bud" Eyler. The Institute is being held at the Marriott Motor Hotel. Established in 1957 by the Texas Association of Realtors, the Institute is presented in four course, each phase being composed of 30 classroom hours, presented by a faculty of national repute. ' The Institute .provides the students an opportunity to meet the requirements set forth in the Texas Real Estate License Act. The Institute was discussed Friday when the Del Rio Board of Realtors met for breakfast at the Holiday Inn. Sam Swinson, president of the board, also announced he plans to attend a sales and the British government WK&WX^tf^^ motivation seminar Wednesday reached agreement v qn use of % — ' M ^M • • ^^ m• ' '• < S morning in Corpus Christi. He D/s11n_T3j-ki>s* A. T IA n*\ n*l »t ss r« /4A«fAl~ T"!* ^B - ^B ' ^B ' ^^^V ^B ^m ^H^^k ^B . (M, 2 n irit an it 4- It AM D AAK^WM million shares traded on Wednesday and the smallest 13.47 million shares traded on Thursday. "This week we saw a lot of desultory action reflective of uncertainty over first quarter company earnings reports and the sluggishness at which the economy is turning around," said Monte Gordon, an analyst with Bache & Co. Companies will soon start reporting their first quarter results. The Associated Press 60«tock average gained 2.3 to 315.3 during the week. . On the New York Stock Exchange there were 758 declines and 899 advances out of 1.821 issues traded. There were 323 new highs and 49 new lows for the year. . The five most active issues on the New York Stock Exchange were: Union Corp., tip % at 12%; Federal National Mortgage, up Z% at 69% : Occidental Petroleum, up Va at 19%.: Texas Gulf Sulphur, up % at 21% and Whittaker, up 1% at 10 7 /8. World Trade Talks Shape By CARL HARTMAN Associated Press Writer BRUSSELS (AP) - Meetings are shaping up between the two superpowers of world trade, the United States and the Common Market. A U.S. visit by the. Common Market's top executive may help chart the prosperity of factories and farm in both Europe and North America. ; The Common Market executive, Franco Maria Malfatti, arrived In New York Saturday and will go on to Washington and the West Coast. Malfatti is a sort of "Mr. Europe. " The Common Market is not a federal government like the United States, but it pools - manyeconomic decisions by its member countries: France, West Germany, Italy, Belgium, . Holland and Luxembourg. They now make up the world's biggest trading unit, considerably bigger than the United States. If all goes well these six members will be joined in 1973 by Britain, Ireland, Denmark and Norway. By the end of the 1970s they plan to unify economic and financial policies and to use one currency, a formidable rival to the dollar. Malfatti will have a falk with President Nixon and a lunch givenby Secretary of State William P. Rogers. The son of a welMo-do Roman family, Malfatti took to politics early. At 25 he was representing his Christian Democratic party at international youth meetings. He was in the Italian Parliament at 30 and a junior Cabinet member at 36. He quit as minister of posts and telecommunications last June to come to the Common Market's headquarters here. 'The importance of his job hides behind an awkward title: * president of ' the Executive Commission of the European Economic Community. It is something like a prime minister's job, though with limited powers (for limited purposes. The , commission has eight other members, organized like a cabinet government. Ralf Dahrendorf,, t the member in charge of external affairs— Malfatti's "foreign minister"- wrbte recently: "Our des'ire now is a new offensive of liberalization, a realistic and not necessarily spec-. tacular offensive in which all partners would re-examine the possibility' of. voluntarily mak- , ing a new'contribution to freedom of trade. This is the decisive option which the great powers of world trade now .face."' •";•-. : It .is-one'of the main things Malfatti wants to talk.about in Washington. The Kennedy round of international trade talks ended in 1967 with a slash of some 35 per cent in tariffs' on industrial goodsy\ but substantial .tariffs remain on many manufactured products. .Trade , in farm produce is limited almost everywhere by severe measures to protect farmers. ? Other barriers to trade in some ways are much more formidable than tariffs, such as the /( 'Buy American" laws that make il hard for foreigners to win American government contracts, and practices that make it virtually Impossible for Americans to win government contracts in other countries. Rolls-Royce Ltd. engines developed .for Lockheed's three-jet airbus. Terms were not dis- ; closed and the agreement : would have to be approved by ; the airlines that ordered the 300-passenger L-1011 Tristar jetliner and by banks financing the sales. —FordMotorCo. recalled all 220,000 Pinto minicars built through March 19 for modifications to guard against flash fires in the air cleaners. —The government's Wholesale Price Index showed that the rise in prices of wholesale food and industrial goods eased inMarch. The over-all result of price changes for a broad range of wholesale food and industrial goods was an increase of two4enths of 1 per cent in the index, sharply lower than the steepest two-month hikes in 20 years of nine-tenths in February and seven-tenths in January. Let's Talk Business ::s:?^ By p AIRBUS This week marked a big occasion for PRAGEDES PADILLA . JR., assistant manager ' of , H.E.B.'s supermarket No. 1 in downtown Del Rio. He received his award for 20 years service with the food chain at a special H.E.B. awards program at San Antonio Municipal Auditorium. Padilla was accompanied by his wife Eva and two daughters, Hilda, 11 and Patricia, 8, for the ceremonies. _| . The family resides at 300 Losoya St. and are members of Our Lady of Guadalupe Catholic Church. Padilla is 1 a native of Uvalde. He came here in 1940. In 1948 he began working for H.E.B. part time. Since 1951 - for 20 years - he has been a fulltime employe of the firm. invited other Realtors interested in attending to contact him. Work of the board's "Make American Better" committee and plans for Texas Realtors Week in May were discussed. WHO? Girls-Girls-Girls Mexican Businessmen Told of Social Duty ARE COVE MEXICOCITY (AP)- "Politi cal stability, an essential condition for development, can only endure If economic activity promotes social justice," said Mexico's Finance Minister Hugo B. Margain. His remarks at a bankers' convention in Guadalajara officially reaffirmed a decision by this nation's private banking in- dustry to assist private enterprise, but also reminded business leaders of their social obligations. "It is necessary to promote investment and stimulate free enterprise within the law," Margain said. "We want to multiply job opportunities for Mexicans but do not want it based on ex- ploitation of labor Instead of better use of their aptitudes." Margain pointed out that the government "does not have a mentality of expropriation. There will not be any restriction on the free convertibility ofcurrencynor.modifications in the rate of exchange." Take a bow TO MAKE SURE YOU HAVE COMPLETE INSURANCE PROTECTION SEE EDWARDS-GRAHAM. JOHN M. JONES JR. ' $1,027,291 One of the good things we can do in this fast-paced age we're living in is to stop, look around, and let our friends know we appreciate them. • So, because of an outstanding year of service to this community, we say "Take a bow" to John M. Jones Jr. of Del Rio. It's impossible to measure the full impact of a man's contribution, but One way we try is to note the amount of new insurance crea > ted- by his activity. This measure is meaningful because it directly relates ! to the services he performs and the family security he has helped to establish, Pictured here, then, is the man from the Bankers Life in-this community whose efforts in 1970 earned him a spot, on our company's highest honor club. San Antonio agency office, J.L. Thorngren, CLU, agency manager , /".-•' Address: 701 S. Main Street Phone; 775^411 . THE BANKERS LIFE BANKERS LIFE COMPANY DBS MOINES, IOWA 50307 (YOUR INSURANCE PROBLEM-SOLVER) 701 S.Mdin AUTO BOAT HOME BUSINESS For All Your Insurance See U^AMm, GENERAL I INSURANCE AGENCY 773-2411

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