Detroit Free Press from Detroit, Michigan on April 15, 1966 · Page 24
Get access to this page with a Free Trial

A Publisher Extra Newspaper

Detroit Free Press from Detroit, Michigan · Page 24

Detroit, Michigan
Issue Date:
Friday, April 15, 1966
Page 24
Start Free Trial

10 II Friday, April 15, '66 DETROIT FREE PRESS 3Ioney?s Worth 1 Your a a fi a Expansions By Business 'Bad' News f f - : V : Miss Porter . . ' BY SYLVIA PORTER 'Bad" news hit the U.S. economy today in the form of a report by McGraw-Hill that in . March business had plans to boost spending on ; new plants and equipment to $61.6 billion this year an awesome 19 percent above the 1965 Jevel and a full 3 percent above the rise pro-; jected by a U.S. government survey in January-February. . The only "good" part of this news is that the McGraw-Hill survey was made before President Johnson called on the nation's businessmen to make voluntary cuts in their 1966 plant and equipment spending. But even if the percentage was slightly smaller, this is simply too much spending in an economy straining jm.aK4's?tm at supplies or materials and man- power the way ours now is. In $ manufacturing alone, spending is put at 24 percent above 1965. The overall total amounts to 8.4 percent of an estimated U.S. output of $730 billion of goods and services in 1966 the biggest proportion of our GNP since business went on a wild investment spree in 1956-57. An all-out business investment boom on top of an already heated boom just won't do. It would put too much inflationary pressure on our available materials, manpower and money. What, then, can be done to root this off and stretch out this crucial job-profits creating spending? The Federal government certainly can cut back its enormous spending on construction and other postpon-able programs for now. The Federal Reserve System can step harder on the credit brake to make borrowing even tougher than it is today. Tax Hike Is an Alternative The White House can ask Congress to approve temporary hikes in income taxes to reduce the amounts of money corporations and individuals have to spend. Bussinessmen can heed to a much greater extent the White House's call for voluntary restraint on spending now both at home and overseas and bankers can restrict their overseas loans, too. Consumers can voluntarily add moderately to their savings and voluntarily curb their free spending until prices stabilize. Tourists can voluntarily cut back on their money-draining plans for overseas travel in coming months. If they don't, a "head tax" on overseas tourists will become increasingly likely. Union and business leaders can accept the fact that either they voluntarily comply with the wage - price guideposts or they invite far more unpalatable inflation curbs. The issue is coming down to this: are we capable of controlling inflation by voluntary actions, or must we be forced by painful restrictions into controlling it? 5 pIZZlo Burroughs' Earnings Set-Marks Burroughs Corp. reported Thursday that earnings from operations and revenues in the firt quarter ended March 31 set records for that period. Net operating earnings for the quarter were $4,274,000, equal to 53 cents a share, compared with $2,778,000, or 38 cents a share, in the like 1965 period. In addition to operating earnings, the company had a first quarter non-recurring capital gain of $1,035,000, or 13 cents a share, from the sale of land in Southfield to Manpower, Inc. Revenues increased 12 percent in the first quarter to $113,-011,000 from $100,847,000 a year ago. Per share figures are based rn a n avtratra 7 7fi?I sharp? outstanding in 1966 and 7,383,-923 shares in 1965. Ray W. Macdonald, president, said orders received during the first quarter exceeded the 1965 quarter by 19 percent. Hiram Walker Gooderham & Worts Ltd., Walkerville, Ont., reported consolidated net income m the quarter ended Feb. 28. rose to $7,721,119, or 45 cents a share, from $7,056,102. or 41 1 cents a share, a year earlier. j For the six months ended Feb. ! 28. net income rose to $19,247,-' 638, or $1.12 a share, from $17.-1 doo.ow, or a snare, a year; earlier. Auto Boom Aids 'Central BY DAVID C. SMITH Free Press Business Editor Detroit's auto boom has played a big role in shoring up the fortunes of New York Central Railroad, President Alfred E. Perl-man said here Thursday. "If it hadn't been for the business we've gotten from this area, I don't think we could have paid off debt we had coming due the last few years and modernized and automated as we have," Perl-man told a group of Detroit businessmen at the Detroit Athletic Club. AFTER THE SESSION, Perlman told reporters revenues generated from freight shipments related to the automotive industry totaled about 10 percent of the Central's $661.5 million 1965 operating revenues. This included steel, z t World of Wheels Auto Inventory Hils New Peak BY FRED OLMSTED Free Presf Autemetlve Writer The nation's franchised automobile dealers added up an inventory of 1,550,000 cars (including those in transit)! at the end of March. . It was the first time that thelident that "non-polluting, bat-inventory total pushed over thetery-powered vehicles for low 1.5 million level, but Ward's speed, low-mileage urban trans-Automotive Reports said the ' portation are feasible right big supply may be a blessing.; now. coal, parts and other shipments as well as finished automobiles. The railroad's earnings totaled $41.5 million last year. Perlman noted the Central carried 1,140,000 autos on tri-level rail cars during 1965. This alone produced $31.3 million revenues, up 27 percent from 1964. Perlman said auto transport business on the line this year will depend on auto output, but that whatever the production the Central expects a 'greater percentage of the total auto hauling business as compared to 1965. NEW YORK CENTRAL will hold its first annual meeting in the Motor City on May 4. Perlman estimated about 10,000 Central shareholders reside in this general area. The Central official said both operating revenues and earnings climbed In the first quarter ended March 31 as compared to last year, but he declined to be more specific. A year earlier the Central earned $1.5 million, or 23 cents & share, on $ 156.9 million revenue in the period. Perlman termed the outlook for the economy in general as "excellent" with no apparent soft spots. He said railroads aren't likely to cut back on capital spending as requested of all industry by President Johnson because "there's already a shortage of freightcars and with the effort in Vietnam, it would be a mistake to be short of transportation equipment." Although the Central Itself has an ample supply of freight-cars, it plans to spend $120 million on additional freight equipment this year about the same as last Perlman said. In Detroit, the Central this year will complete a three-year, $4 million project at its West Side yards, a spokesman said. It has another major project underway in Sterling Township. Ex-Cell-0 Sales to Hit : $225 Million Ex-Cell-O Corp. sales will reach $225 million this year and net earnings will approximate $5.20 a share, President H. Glenn Bixby predicted Thursday at the firm's annual meeting.; In 1956 Ex-Cell-O sales "were $208,022,625, up 19 percent from the preceding year, and net earnings were $17,494,939, "25. percent better than in 1964. Per- share equivalent was $4.77. 1 He said sales of Ex-Cell-O's primary divisions were improving last year's sales levels-March deliveries of goods were the highest of any month in Its history, he said. Cutbacks in capital expendi tures by industry at the request of President Johnson, he said,. have not yet shown any effect on the company and, he added, none is expected. 13 ACRES, LIVONIA Between Schoolcraft and Plymouth. Adjacent to R.R. Watar and awer. Contact Mr. Kati. ffNOISCOT tLDG., DETROIT 26, MICH ' 61-7100 Ana CetUt 31S A Civil Aeronautics Board (CAB) examiner set Aug. 16 as the date of a hearing on the establishment of all-cargo nonstop jet service between Detroit and California. Examiner William J. Madden said the case will determine whether such service is needed, and which airline or airlines should provide it. The proceeding is a reopened phase of the Detroit-California nonstop service investigation, in which the CAB awarded American and Trans World Airline unrestricted nonstop authority between Detroit and San FranciscoLos Angeles in competition with United, all of whom, plus the Flying Tiger line, are seeking similar authority for all-cargo service. The Securities and Exchange Commissdon lifted Thursday a Most Active Stocks On Pacific Exchange suspension on stock trading in Great American Industries, Inc. The order is effective at the opening of business Friday. . . . The tin can Is finished, President E. T. Klassen of American Can Co. said Thursday. He said It will be totally replaced within five years by a tin-free steel can with a thermoplastic side seam. ... 2 Hughes Stores to Open Soon Plans for two new store units, which will be its 19th and 20th in Michigan, were announced by; Bernard E. Pincus, president of Hughes & Hatcher Inc. i He did not specify their loca-l tions but said they would be in shopping centers in the lower corners of the state. Pincus was in Pittsburgh' eany inursoay to open a new downtown unit there, the third in the city. He said there that sales and earnings of the com-l pany in the first quarter were running well ahead of last year's opening period, during which a four-week strike of em ployes occurred. He also said the company was "concentrating on acquisitions" and would consider possibilities in any area of the country. "When related to the selling pace." the statistical firm said. "The inventory is not oversized at all. April-June sales promise to place heavy demands on available stocks since their course has been plotted on a direct line with the production pace." Ward's noted that while the inventory rose from 1,497,400 a month earlier, the industry's car supply dropped from 63.8 days to 49 days during March. A BATTERY company executive urged President Johnson to set up a commission to foster a return of the electric automo bile as a help in ending air pollution that "threatens humanity's existence. M. G. Smith, industrial vice president of the Electric Storage Battery Co., messaged the Pres- N Industrial. SAN FRANCISCO (AP1-S.I... -l.l onct and net cnanoe of the tn mosfiRees . I r- . j . j v., mi renin vuasi Stock ExcJianoe Tuesday. Gulf OH Coro 100,100 51 ' Goodvear T&R 7800 A6' 4 Union Oil of Cal 28.600 5 Pacific Liqhtino il.700 2F Grace Co. 11,500 52' 1 duPont deNemoon 11,000 204a Jade OH & Gat 10,300 H Victor Comet 10.J0O 47 General Motors 9,900 91' Ford Motor 9,300 50 Avis Industrial I Buys Par Light Avis Industrial Corp. Thursday acquired all of the capital stock of Par Light Manufacturing Co., Milan, HI., for an undisclosed amount of stock, it was announced jointly by Warren E. Avis, president, and Earl Wilde, president of Par Light. Par Light produces outdoor and indoor spot and flood lighting equipment. The product lines complement those of Mackworth Keystone and Columbia Electrical Divisions of Avis Treasury Bouds NEW YORK fAPl rintlna nu.r 1h. counter U S. Government Treasury bonds. 01a, nr cnange and yield for Thursday. 334S 66 9979 3s 66 99 12 3s 66 99 8 2' ?s 67-62 97 24 3Hs 67 98 6 3's 68 98 33.S 68 97.14 37.s 68 Nov 97 11 2' 25 68-63 95 4s 69 Feo r 24 2 69-64 Jun . . . 94 2 4s 69 Oct 97 6 2' ss 69-64 Dec . . 93 4s 70 Feb 96 30 2'3S 70-65 92 30 4s 70 Aug 96.18 2' is 71-66 91.6 4s 71 96 4 3'S 71 95 4 4s 72 Feb 951 2'jS 72-67 Jun 89 6 4s 72 Aug 95 6 2' 21 72-67 Sep .... 88.16 2"j 72-67 Dec ... 88.6 4S 73 94.21 4'M 73 95.4 4'! 74 95.2 4'-4l 74 96.4 37ts 74 9320 4 80 93.14 3Ws 80 88 8 3'.s 83-78 83 14 3'45 85 83.2 4' 4i 85-75 94 8 31 2s 90 84 6 414S 92-87 93.30 4s 93-88 91.18 4's 94-89 92.18 3s 95 81.4 3' IS 98 83.10 Prices quoted in dollars and thirty seconds. 99 31 99 14 99.10 97 78 98 10 98 4 97 18 97 22 95 4 97.30 94 6 97 10 93 10 97.7 93 2 94 27 91 10 96 8 95 8 95 20 89.10 95.10 ... 4 10 ... 4 71 460' .2 4 40 ... 4 75 ... 4 83 ... 4,87 ... 4 84 4 46 .2 4 78 .2 4 49 -.2 4 85 .2 4.50 .2 4 85 4 45 .2 4 8' 4 48 i .2 4 811 -.2 4 86 .4 4 87! .2 4.5V .4 4 87 88 20 .2 4 56 88 10 -.2 4 56 94.25 .5 4 85 95.8 .4 4 88 95 6 .6 4 87 96 8 .4 4 82 93. 2 .4 475 93 22 .6 4 63 88 16 .4 4 59 83 22 .4 4 64 83.10 .6 4 57 94 16 8 4 69 84 14 .8 4.57 94 6 .6 4 63 91 26 .2 4 53 97 56 .6 4 58 81.12 .4 4.11 83 18 6 4 47 Judge Rejects Siudehaker Suit Dismissal Move GRAND RAPIDS (AP) 1 A motion to dismiss a suit in volving a stock control fight over Studebaker Corp. was denied Thursday by U.S. Dis trict Court Judge Noel P. Fox here. Dismissal was sought by Al lied Products Corp., a Cali fornia firm with plants In Frank fort and Eaton Rapids, Mich., a defendant in the case. The judge ruled in his denial that the court has jurisdiction over the subject matter, contrary to contention of defendants. On defendants claim that the court lacks personal jurisdiction over them, the judge said he would defer a decision until completion of a hearing scheduled next Tuesday. CHRYSLER Corp. will chop up most of the 50 turbine cars with which it has conducted a controlled driving experiment in the last two years. The corporation emphasized, however, that destruction of the turbines will in no way affect Chrysler's decision to produce the cars or abandon the program. MORE THAN 25,000 Mustang owners are expected to gather for weekend rallies in 250 clubs from Alaska to Florida Satur-1 day and Sunday. The events will mark the second anniver sary of the Mustang's appearance on the market. The "rally day" is sponsored by the National Council of Mustang Clubs.: PLYMOUTH will stage its 18th annual trouble - shooting contest finals at the State Fairgrounds June 20-22. CIRCLE K International will stage a semi-annual reliability run, starting in the parking lot of the Lawrence Institute of Technology, Southfield, between 6 and 9 p.m. Saturday. Proceeds will go to the club's civic and charitable activities. NOT A NFV ISSUE Aprin.loX Shulton, Inc. 268,000 Shares Class A Common Stock (50 Pit Ti!t) 75,000 Shares Class B Common Stock (5 Pa Value) Price $37 Per Share This smmomuetrntnt eentfhrte nehbrr m of ft to tefl mot foficrtatton of am oft to hmy tbf jaranM. Tk offtritg is madt only hj tbt Prosptetut, copies of wbttb msj b oUmmsd m awj Sto H 4 undersigned m mmj Uwjullj offer these murines m tmtk i-. Smith, Barney & Co. Blyth & Co., Inc. Hornblower & Weeks-Hemphill, Noyes Goldman, Sachs & Co. Kidder, Peabody k Co. Lazard Frbres L Co. Lehman Brothers Merrill Lynch, Pierocenner &. Smith Pame, Webber, Jacbon & Curtis White, Weld A Co. Dean Witter & Co. First of Michigan Corporation IfflES nnnn HUH m i ll la nnnnf? lAJUL I! IUI iiu OFFICE SPACE AVAILABLE BIRMINGHAM W havt several uitt avtiUbl in Birmingham! bast location, 950 E. Mapla, air eonditionae!, frea daily janitor service and free periling. Complete secretarial service available in building. Call: PERRON MARKLEY CO. 647-4000 DIRECTOR OF SALES Hydraulic Pumps Leading pump company seeks Sales Director. Related ex perience desirable. Company is rapidly growing and highly progressive, offering remarkable opportunity to ; right man. Sales Director will report directly to President j with broad authority and responsibility. Commensurate i compensation. All replies strictly confidential. Write to Box 1492 Fre Press 31 v4 .: 4 ! ',,1 Commodities Cot'onsMd Oil Cottonseed OH Potato (M.) Potatoes (Me.) Cocca Cocoa Co! "f?" Coffee "B" Hides Rubber Suaar No. 7 Suaar No. I Suaar No I Wool Wool CODOW Silver Silver THURSDAY May Julv Mav November Vav July September March April May May May July Mav July May Aoril Mav Detroit Edison Reports . . . HIGHLIGHTS OF 1965 15W 1S57 4 94 45 23.15 3S.00 20.45 24 50 6S7 2 08 5.17 1324 13.45 -.1?! .00! -.24! 01 ' .57, .15 .0? .02 .03 .05 .07 M 80 3.45 12900 .10 129.04 .10 NOTICE OF BID The Michigan Liquor Control Commission will accept bids from trucking contractors with van-type trucks capable or carrying up to 350,000 cases of liquor a month in -the delivery of alcoholic liquor, supplies, equipment, and property, between warehouses and State liquor stores and between State liquor stores, all in the Lower Peninsula of Michigan, for a period of two yaars, beginning on or about Octobar I, I960, in accordance with specifications obtainable on requast from the office of the Commission, 506 S. Hosmer St, Lansing, Michigan 489C4. Bids must be for the en-tire operation. Bids will be opened at 10:30 A.M., June 15, 1966. TOTAL REVEUUI: NET INCOME: EARNINGS PER SHARE: AVERAGE RESIDENTIAL USE: 536330,550 UP 6.0 OVER 1364 5 57,564,259 UP 1L3 52.00 UP 11.15? U35 KWHR UP 5,7 TOTAL ELECTRIC CUSTOMERS: 1,385,976 UP 2,4 228th Consecntirc Quarterly Dividend This week, over 115,000 owners of Detroit Edison common stock will receive a 35f per share dividend. The dividend will be paid to shareholders of record March 25, 1966, Detroit Edison's Annual Report for 1965 is now available. To get your copy, write E. M. Spencer, Treasurer, The Detroit Edison Company, 2000 Second Ave., Detroit, Michigan 48226, DETROIT EDISON Serrrng Southeastern Michigan WW! . wr .iiOT.. mi mmy mr minimi Ml,--r Plus these other advantages: Q Yob may purchasi 1 Certificates in any amount over $100. Q You will receive a check for the 5 interest due you annually, or we will automatically reinvest your interest for you. If you prefer. ANNUAL INTEREST ON 1-YEAR SAVINGS CERTIFICATES You may redeem Certificates prior to maturity on 30 days' written notice and interest will be paid at the rata of M from day of deposit to day of withdrawal. Q Your deposits are insured by the Federal Deposit Insurance Corporation to $10,000. It's easy to earn the new higher 5 Interest rate. Simply: Bring your passbooks from any Institution or your other funds to any of the 37 convaniantly located Bank of the Commonwealth offices. We will handle the details in a matter of minutes. This is another reason Detroiters are changing to BANK OF THE C M M N WE ALTH toneer Merd BeeeiR Nikimi tfee J

What members have found on this page

Get access to

  • The largest online newspaper archive
  • 18,100+ newspapers from the 1700s–2000s
  • Millions of additional pages added every month

Publisher Extra Newspapers

  • Exclusive licensed content from premium publishers like the Detroit Free Press
  • Archives through last month
  • Continually updated

Try it free