The Sacramento Bee from Sacramento, California • 50

Page D12 THE SACRAMENTO BEE Thursday January 12 1967 Bear Aluminum Too Will Increased Price Tag By Jack Lefler I pressure steel producers com- inJ promised on a $275 a ton boost YORK (AP) An contained molybdenum Frank Coolbaugh president of American Metal Climax said the increase was due to heavy d) 5 o'w NEW crease in the price of aluminum structural steel after initial was announced today by 01inatternpts at a 55 In 1962 Mathieson Chemical Corp cap-jthe government forced them tojexpansion expenses rising cwts ping off a rash of price hikes1 a 8eneral I of labor and supphes and the that spread through the metal mpase- Jmmin2 of'oweJ grade ores Phelps Dodge Corp initiated Small Effect industry this week Bank Actions Chisel More Cracks In Wall Of Tight Money By Joseph Coyne WASHINGTON (AP) Mon-iTuesday night in his message to ey remains tight in many parts Congress said it was partly of the nation but signs of easier designed to keep the economy credit are mounting (growing without new inflatlon- The first chink in the 6 peri ary strain and to move toward cent prime interest rate that easier credit and lower interest banks charge their favored cus-i rates tomers for loans came Wednes- The Minneapolis bank's ac-day when a relatively small tion although unique was not Minnesota institution reduced the only sign of an easing its rate from 6 per cent to 575 Wednesday per cent Surprise To Many Isolated action by the National City Bank of Minneapolis sur First National City Bank New largest announced a cut in the interest rate it will pay on some long-term certificates of an increase in the price of domestic copper to 38 cents a pound from 36 cents The world price is about 54 cents pound Phelps move was followed by Anaconda Calumet Hecla Inc and American Smelting Refining Co Kenne-cott went to 38 cents a pound Cite Tight Supply The producers cited the tight supply of copper as a reason for the boost In 1965 a similar price increase was rolled back after the government used its influence including release of 200-000 tons of stockpile copper American Metal Climax Inc and Molybdenum Corp of Amer- American Metal Climax contended the effect of the price adjustments on consumer and industrial end-products will in most cases be neglible It said constructional alloy steels largest market generally contain less than one-half of one per cent molybdenum and the increased cost of molybdenum contained in a typical passenger automobile will be less than 5 cents A 5 per cent increase made last July was rescinded at the request of the government There also were price increases for several lesser known metals The advances affected cobalt used as an alloy material in specialty steels tungsten carbide and two members of the prised many bankers but it was hailed by the Treasury Department President Johnson in proposing a 6 per cent surcharge on ica increased the price of molybdenum an average of 37 per (platinum palladium and cent or 7 cents a pound of i rhodium This was the scene yesterday rat the New York Stock Exchange during trading in the wake of President tax boost proposal The market dropped sharply in heavy opening trading but by early afternoon had regained the ground and closed with a plus AP Wirephoto No 3 Session Stocks Post Day To Remember Olin Mathieson said that effective Jan 18 it will boost the price of primary aluminum ingot and billet by 1 cent a pound to 25ft cents The per pound price of fabricated aluminum products produced by the company will be Increased by l'2 cents a pound Harlow Reed executive vice' president for metals said the hike was discussed with Gardner Ackley chairman of President Council of Economic Advisers before being announced He gave no indication of reaction Other Metals Hikers in prices on steel copper and molybdenum prices also have been announced this week by various firms There was little reaction from the government which in the past has forced a rollback of price boosts for these products The steel price increase was confined to tubular products which make up about 10 per cent of total shipments An increase of 27 per cent was initiated by Jones Laugh-lin Steel Corp Many other companies including US Steel Corp the No 1 producer followed The increase when spread over all steel products would average about 025 per cent US Steel said the effect of its move on all products it ships is an increase of less than 025 per cent and that the new prices for many sizes of tubular products are still below the 1958 level Tubular products are used by oil and gas drilling industries and in plumbing and utility gas lines The producers ignored a statement by the Council of Economic Advisers urging that other companies not follow Jones lead Last year under government a 4 Verge Of Bond Analyst Lauds Bank Loan Curbing for a 6 per cent surcharge on income taxes The market reacted by falling off 1147 points to 80267 in the first half-hour of trading Wednesday But jumped in and a rally began The drop was recovered by early afternoon When the National City Bank of Minneapolis announced lat- NEW YORK (AP) That was a day Wall Street soon forget: A sharp loss an equally dramatic gain and the second heaviest trading since 1929 These were the vagaries of the stock market Wednesday following President request in the State of the Union address to Congress gyrated too during 1966 a year Franz said which was in euphoria born in doubt and raised in Franz was introduced by Joseph Rodgers assistant vice president of the Bank of Sacramento Rodgers initiated the plan for the University series on Tight Money The fourth and concluding program will be Jan 24 deposit The rate since last spring has been 55 per cent on certificates maturing in 30 days or more First National City cut the rate income and corporation taxes' on maturities of nine months and longer to 5 per cent Lower Down Payment In an unrelated action the Provident Savings Bank in Baltimore announced a 10 per cent! cut in the down payment required on a new home in order to obtain a mortgage and a 5 per cent cut on the down payment for an older home Action by Provident followed within hours an announcement by the Federal Home Loan Bank Board that it is making $1 billion available to mutual savings banks and savings and loan associations for residential mortgages Walter Heller former chairman of the Council of Economic Advisers who suggested last month a surtax similar to the one proposed by President Johnson is a director of the Minneapolis bank and recommended the lower rates in a yearend report There was little indication elsewhere in the nation however that the Minneapolis lead would be followed of A Reaction The Bank of America in San Francisco the largest said the whole interest rate question will require evaluation in the weeks First National Bank of Chicago said no change in its prime rate was in sight Banks in other major cities also reported no immediate plans to change their rates Meanwhile the National Association of Home Builders said housing may move from a 1966 slump to a 1968 boom but discounted any quick turn around for the depressed industry It will take time to improve substantially the supply of mort gage credit the association said er it was cutting its prime interest rate from 6 to 5 per cent indicative of loosening credit conditions the news spurred the market to a strong recovery It closed with a gain of 835 points at 82249 on the Dow industrials Stock market volume soared to 1324 million shares third heaviest in history The two heaviest days were 147 million shares traded May 29 1962 and 164 million shares on Oct 29 1929 One major stock brokerage house expressed little surprise at the wildly fluctuating market Merrill Lynch Pierce Fenner Smith announced before the recovery began that trading frequently follows State of the Union messages and added: the opening is emotional it creates buying opportunities for clear-minded less emotional BUSDNESS AND FINANCE A bond expert praised the Federal Reserve Board for restricting bank credit last summer telling a Sacramento audience the nation was the verge of a financial at the time However Gene Franz director of Schwabacher municipal bond department suggested the country leaned too heavily on the FRB during the crisis Addressing the third in a series of forum luncheons in the University Club yesterday Franz said the government did not to the inflation problem by enacting remedial legislation including a tax increase Role Of Public Arid the people could have helped forestall runaway prices and credit old-fashioned by paying their he added Franz noted the Federal Re serve Board succeeded in checking inflation and is now loosening the reins by making more money available to lending agencies But he avoided making any predictions about the money market adding: of us knows what will happen in WASHINGTON (AP) The airlines had so much business last year they had to create 30000 new jobs Joseph O'Brien vice president of personnel relations for the Air Transport Association said today i And during 1967 he said they will need 6800 more mechanics and 4300 more pilots said the airlines have added more new jobs in the last two years than in the preceding seven 236000 Employes 1 In a prepared summary O'Brien said the US airline industry at the end of the year had 236000 employes with an annual average salary of $7910 Payrolls Increased during the year from $1686280000 to $1- 865228000 said the airlines need more stewardesses reservations workers and sales personnel as well as mechanics and pilots Sales Mount In another industry report the utility airplane council of the Aerospace Industries Association said US manufacturers produced and sold commercially more light planes for greater revenue than ever before In 1966 the 15 reporting manufacturers delivered 15768 planes with a retail value of more than $593 million In 1965 eight companies reported 11852 deliveries and a sales volume of $31822 million Measure Seeks Gold Mining Subsidy WASHINGTON (UPI) Legislation to provide a federal subsidy to the gold mining industry which must sell its product at a price set in 1934 was introduced on the opening day of the new Congress Rep Harold Johnson D-Calif reports Johnson said the measure is an effort restore the gold industry to its rightful place in the economy of California and the The bill was identical to one which was approved last year by the House Interior Committee but never voted on by the House West German Industry Says Slump Arrives First Western Bank Scores Gains SAN FRANCISCO The First Western Bank reports 1966 net operating earnings of $4062000 or $327 a share up 12 per cent from the $3617000 or $292 a share reported for 1965 At the end of 1966 First deposits totaled $7168 million an increase of 53 per cent for the year Loans were up 26 per cent to $4759 million COLOGNE Germany Recession has become a reality for West German industry the Federal Association of German industry said yesterday in its latest report on the state of the business It welcomed the emphasis given by Chancellor Kurt Georg Japanese Buy Flamingo In Las Vegas LAS VEGAS Nev (AP) -The Flamingo Hotel on the Las Vegas strip has been sold to a Japanese group which set up a Nevada company to make the purchase The multimillion-dollar hotel will be managed by the Sheraton Corp of America No details of the transaction were available but Flamingo President Morris Landsburgh confirmed yesterday the hotel had been sold He then left for Florida Landsburgh owns seven hotels In Florida He remarked the 800-room Flamingo has been a sideline business for him The hotel casino also is involved in the sale A source at the gaming control board office here confirmed the board had conferred with Ukio Kubota president of the Fujia Corp of Nevada and Lloyd Carswell vice president for national and international sales of the Sheraton Corp The purchasing group did not immediately ask for a gaming license but it had discussed the purchase with gaming control officials Connor Names Advisory Panel WASHINGTON (AP) Secretary of Commerce John Connor has established a panel of 20 private economists to advise him on economic policy Dr William Shaw assistant secretary of commerce for economic affairs will serve as chairman The 20 private members include bankers corporation executives and professors Kiesinger to the goal of eco nomic growth but added: industry is in low spirits" Not Clear Enough experiences of the last 18 months show that the means of influencing the business anc economic situation have not by a long way been clearly enough determined to steer development on the desired course and to assure an appropriate the association said brakes of credit policy have no effect at first and then they jam the wheels that should have kept turning" the report said Not Alone It added the Federal Bank was not alone to blame for this (braking effect as often had Avoids Pessimism The speaker was uncertain but not pessimistic He described the past year in his the bond as of the most aggravating satisfying years we have ever seen There has been nothing like Bonds are basically a conservative investment and less susceptible than stocks to wide variations in prices but bonds Disney Firm Reports Annual Gain BURBANK (AP) Walt Disney Productions reports net earnings of $12392000 for the fiscal year ended Oct 1 compared with $1139000 the Prc-(been claimed vious year The association said many Roy Disney president and prominent organizations recog-chairman of the board said injnized the burden placed on industry by high Interest rates and a shortage of credit but Bank Of California Lists Gains SAN FRANCISCO (UPI) The Bank of California reports 1966 net operating earnings of $6761144 compared with 1965 income of $6176479 The bank also reported per share earnings rose 96 per cent from $332 a year ago to $364 Total yearend assets were $1407833770 compared with the 1965 figure erf $1346752513 Douglas Missile Aide Will Speak What The Advisers Say LBJ Cuts Back Tariffs On Watches Sheet Glass New York Time news service WASHINGTON President round of negotiations in Geneva Johnson has rolled back two po- now nearing their conclusion litically sensitive those provided there are reciprocal on watches and sheet glass reductions by other trading na- Both tariffs had been raised tions to protect domestic industry Switzerland indicated it might that on watches in 1954 and that almost no tariff reductions on glass in 1962 The earlierjat all in the negotiations unless actions caused vigorous pro- the US watch tariff was retests from the main supplying duced countries respectively Switzerland and Belgium The action was regarded as a strong signal of US desire for a sweeping reduction of tariffs in the so-called Kennedy Inflation Outruns SomeWages President Eisenhower raised the watch tariff and President Kennedy the glass tariff The watch decision cuts the present duty on imported movements by about one-third This amounts in most cases to less $1 a watch and the effect of the decision on retail prices is not certain The glass decision today does involve a complete rollback of all the affected tariffs to the pre-1962 levels For window the rollback is only his annual report that gross rev enues increased to $116543000 YORK (AP) Stock ris Upham Co: It looks like: compared with $109947000 comment today in- 1967 will be an eventful and im- Disney said revenue climbed portant year for investors a from theatrical films television they were concerned that an easing of credit restrictions could lead to glossing over the weak spots in the economy instead of eliminating them NEW market eluded: Sidney Lurie of Josephthal Co: No question about it the President's proposal of a 6 per cent surcharge of existing year when a reversal from a major downtrend to a major uptrend could be in the making also a year when unfavorable influences such as tight money lower profit margins Disneyland Park and other activities of the company The 1965-66 earnings were equal to $634 a share compared with $608 a year earlier Last month Walt Disney who Jack Bromberg vice president and deputy general manager of Douglas Aircraft Missiles and Space Systems Division at Huntington Beach will be the principal speaker next Monday during a meeting of the Sacramento Chapter of the Douglas Management Association Herman Kovarsky will be Installed as president of the chapter during the meeting which will start at 6 pm in Restaurant at Marconi and Fulton Avenues Other officers to be installed are Francis Henkle first vice president Wallace Benoist sec ond vice president Jack Ben-brook secretary and Albert Schiffer treasurer The outgoing president Is Jack Carroll corporate and personal income GE Television Plant Will Lay Off 300 PORTSMOUTH Va AP)-Some 300 women employes at the General Electric television plant in nearby Nansemond County will be laid off Monday Nelson Britt manager of the communications and relations program described the layoff as and said the women will be recalled in late February or early March Britt attributed the temporary slowdown to a slump in sales of portable television Mother Lode Bank Reports Gains McClatchv Newspaowj Servlet PLACERV1LLE Manager Grodon Wright of the Mother AMtt TaA A 4 aaa La a2j I (tax payments is a the fight against inflation' was in charge of production ment But a little too easy could cause some uneasy ses- died The new report to stock-not in my opinion to jump to thejsions before the real buying lev- holders included a message obvious conclusion that this will el is reached from Walt Disney expressing Kenneth Ward of Hayden confidence in the future Of the add pressure to an already Lode Bank said yearend assets 0f the concern were $403 mil- lion up from $364 million the year before Yearend deposits totaled $366 million up from $324 million at the close of 1965 and total loans for 1966 were $268 million compared with $248 million Wright reported net operating earnings at the yearend were $1885 per share This was an exglass par-isting down trend in the business tial Overall the tariff was re- outlook For one thing there is WASHINGTON (AP) Just turned to the pre-1962 level on no assurance that the tax pro-because personal income in- giass items accounting for $14 posal will be enacted by Con-creased more than twice as million 0f the $26 million of af-igress much as consumer prices last fected imports in 1965 I Ralph A Ortnem of Har- year doesn't mean everyone1 stayed ahead of inflation Commerce Department figures show One group of 14 million facto-! ry workers for example lost $115 per week in purchasing power in one year making a record $276 an hour but their $2 weekly in- crease in wages keep up with a more than $3 increase in Hirsch( an expert on pubic utijJport seriously questioned Con'sistant commission counsel said not necessarily agree with every- Prces- ties has submitted a renort t0 accountinS procedures the city was not trying to sup-lthing in it and that it would Yet total personal income for as improper and said the city (press the report but did not probably be made public after someone yesterday to make the report scrutiny by the Public Service Radlich Said the report public not contain Arnold An informant indicated the re- Norman Radlich executive as-that he and other officials did York Paramount Pictures Plan Bigger Year NEW YORK (AP) The Paramount Pictures division of Gulf Western Industries will expand operations In Europe this year and double its productions in Hollywood Charles Bluhdom Gulf Western chairman told New York securities analysts yesterday didincrease lrom $1-415 per share for 1965- Wholsale Food Prices Drop Again NEW YORK (AP) Wholesale food prices dropped again this week Dun Bradstreet Inc reports They currently are 44 per cent lower than a year ago The total cost of one pound each of 31 foodstuffs was $654 equal to the 1966 low recorded Nov 9 The index was $655 last week and $684 the comparable week last year Ham and steers were up substantially this week Substantially lower were eggs and lard the country at nearly $600 bil-New CitY contending the should seek refunds for the 29(want to make it public now 'the upcoming commission pro-lion was up 8 per cent while Consolidated Edison Company million users of electricity in To do so he said would dis-jceedings were concluded He prices rose 36 per cent The overcharged consumers of elec- New York and in Westchester' close to Con Edison the conceded that could be a year personal income figure how-tricity $35 million In the last County possible approach in hearings 'or two from now evpr includes increases caused years through Charges Denied (before the state commission! The alleged overcharge of $35 by new jobs which help bookkeeping procedures A spokesman for Con Edison scheduled to resume here next million which Ilirsch is said to Bank Loan Total Shows Increase WASHINGTON (AP) The Federal Reserve Board reports commercial and industrial loans increased by $247 million during the week ended Jan 4 at com merclal banks with deposits of $100 million and more This raised the total of such loans at these banks to $60( billion This was $7493 billion higher than the total a year earlier IBM-ROYAL OFFICE MACHINES SALES RENTALS REPAIRS CAPITAL OFFICE EQUIPMENT CO WO 14 Ill Am 447441 the income of the fellow who's The report was submitted said the charges were "com-still at his same job Sept 3 by Hirsch a consultant' pletely He said the hired by the city to check the! and records of the com- Help you write your financial records pany are kept In conformity Classified Ads Dial 442-5011 (which were the basis for 1964 with the uniform system of ac-The Bee (adv rate increases City hall refused (counts and are under constant Wednesday ihave labeled a conservative es- Notbing Unusual jtimate dates from July 29 1964 The hearings are considering to the present Hirsch who lives a $33 million electric rate in-and works in Washington has crease granted tb Consolidated served cities commissions and Edison Nov 25 (private interests for 30 years Boats Movt Without a motor or sail when advertised In a classified ad To place your ad dial 442-5011 (adv.