Detroit Free Press from Detroit, Michigan • Page 19

Zht Pttoit grtt Vxtss In These Pages r. World of Wheels Page 10-B N.Y. Stocks Page 11-B 'A merkan Stocks Page 12-B Business I SECTION Pag 9 SUNDAY, JULY 29, 1 962 teraort DYNAJMITE THERE ii Ex Grows port 'e. Canadian Economy Still Shaken As ell Results NEWS OFF THE TICKER Chrysler Stock Is Bought Up irans New Fields BY ALAN DONNELLY OTTAWA () The economic explosion Appliance s7 that caused Canada's foreign exchange Increase crisis this spring was touched off by slow fuse lit years ago. Testing Is Paying Off much of the dynamite Is still Sale Totals there, its potential force dlmlnshed only slightly by the Government's new austerity-program for giving tha Canadian dollar new muscle and bolstering tne country snrunxen reserves of foreign exchange.

Makers Stressing Quality Control The dynamite consists of the fact that for Commerce Dept. Helps In IMichigan BY TOM KLEENE Frt PrtM SuslntM-lndintry Wrlttr nine years Canada hasn't earnea enougn BY KENNETH THOMPSON abroad to meet the foreign payments Xt must make for imports and also for things such. as earnings of foreign investors and the tour r-r PrtM Financial Wrttw A rising tide of appliance A medium-sized Michigan ists expenditures of Canadians aoroaa. firm, venturing Into export sales, a bright factor in the year's mixed economy, has THIS GAP BETWEEN Canada's foreign operations for the first time, did $200,000 worth of busi earnings and expenditures Is called the inter-, appeared on the heels of a two-year period of public national balance of payments deficit. la the ness in its first nine months 12 years 1950-61 a period relieved in the world market.

once. In 1952. by a payments surplus titer complaint on product durability and service. Still another, which had al was a cumulative deficit of more than $9.7 ways been strictly a domestic SSL. The Increasing sales are re billion.

firm, turned up an additional I vC -N tfe-rf garded by industry authorities One thing kept the country out of the poor-' $300,000 In sales in the first and Individual manufacturers 18 months it was in the inter The Heart of Rogers City: Dock at Michigan Limestone house: The willingness of foreign mvester to pour their capital into Canada for new factories, oil wells and mines, loans to prov national field. as tha payoff for Intense efforts to assure appliance buyers of satisfaction. Such growth has not been limited, however, to the smaller STILL HAS FUN Michigan companies making IMPROVEMENT of quality Rogers City their debuts in world trade, Consolidation Coal Co. has acquired over 400,000 shares of Chrysler Corp. common or nearly 4 per cent of total shares Detroit Steel Corp.

in May and June Bought an additional 70,900 shares of Cleveland Cliff a Iron Co. common, lucre a-in? It holding of 457,240 ahares, or 22 per cent of outstanding shares. The holding is equivalent to 66 cents a share of Detroit Steel common. sv Department Store sales in the Seventh Federal Reserve District topped the nation in th week ended July 21 and Detroit; topped tha Seventh District. Detroit, as the national leader in the sales gain over a year ago, showed a 20 per cent rise over tha 1961 week, the Seventh District 14 per cent and tha nation 7 per cent.

Even downtown Grand Rapids department stores, which have had a rough time this year equalling last year's pace, were one per cent above the 1961 week. Detroit sales for the first ,29 weeks were 9 per cent ahead of 1961 sales, again topping the Seventh according to the Federal Reserve Bank of Chicago. 'Jersonil Incomes rose to $363 billion in May, up 7 per, cent from a year earlier, but the rate of increase seems Jo be slacking off. Business Week magazine said The United States gold stockpile shrank another $190 million in the week ended Wednesday to $16 billion, lowest since 1939, tha Federal Reserve Board said A Wall Street Jour-Tpl survey indicated retail sales of farm machinery are up 5 to 10 per cent this year F. W.

Dodge Corp. economist Gordon McKinley reported disquieting notes in construction: factory building well below a year ago and single family housing down one per cent from 1961 Intercity truck tonnage in 34 cities was 1J2 per cent ahead of the 1961 week in the week ended July 21, American Trucking Associations said. The Stock Market is likely to remain relatively dull for two or three weeks until President Ken control measures and widening of testing and laboratory shake A GLOBAL OPERATOR of downs were undertaken in 1959 To Honor many years experience boosted its overseas sales volume from $9 million to $23 million be tween 195S and Kresge Founder Still Going at 95 BY RICHARD PYLE Associates Press Carraspoitdaiit Its Industry and I860, with Michigan producers in the lead of the movement. Kelvin a Division recently reported that Its automatic washers, for In 1961, or from 6.5 per cent to 13 per cent of its total Rogers City will pay tribute to Michigan limestone Division and Bradley Transportation Line for Another 50 years of economis stability A man who gave up golf because he hated to lose golf stance, now are quadrupled its with a community "thank-you" balls and yet has spent millions of dollars on libraries, Thompson requiring two- foreign business celebration Aug. 8-5.

medical laboratories, orphanages and churches will reach thirds fewer first-year service The two companies, divisions calls than formerly. in the same three-year period from ap- the 95-year mark Tuesday. A. Whlrpool Corp. spokesman of United States Steel Corp, also are celebrating their golden an Kleene And as he passed another said last week.

"Neither prod' proximately milestone in a life of success niversary. ucts nor the servioe can be $150 to $600 million. built on almost-legendary thrift. perfect. But they, are much Leans B.

Worthlngton, presi At least 30 such case his snn mmm'Mmmimimmmiim'iittK dent of U.S. Steel, and Ernest R. tories, representing substantial closer to perfection than those complaints two years ago In Sebastian Spermg Kresge says he's prepared to keep right on going. Breech, director and former chair increases in export volume, in dicated. man ef the board ef Ford Motor troduction of a new product "Today appliances are better will speak at an Industry 1 don't believe I can do it into export trade, marks Appreciation Banquet Saturday made and better serviced than at any time in the Industry's breakthroughs or openings of in gut, Aug.

a. another 95 years," admits this stocky, durable man whose career from tinware salesman new trade areas, have been history. compiled by the Detroit field HARRY GROSS Is general office of the Commerce De CHARLES GIB SOX, Jr. pres chairman of the celebration com partment. inces and municipalities, and purchases or Canadian industrial stocks and bonds.

What happened this year? The basts problem was that, while tha payment deficit continued, the Inflow of capital dried ap and eventually turned Into an outflow of capltaL This situation was made worse by uncer- -taintles over the future of the dollar's ex- -change rate, even after It was pegged May 3 at 92 United States cents. THE NEW CRASH program of austerity aims at reducing some of the payments deficit, cutting down on the Government's own budget deficit and restoring confidence among foreign investors so that their capital will start flowing back -into Canada. Last year's deficit was $1,007,000,000 and in this year's first quarter tt was $363 million an annual rate ef around billion. Thus, much of the potential dynamite of a payments deficit remains in the economy. A fundamental problem Is to develop ax- panslonary policies that won't touch off a recurrence of this year's foreign exchange crisis.

Vi The last few years have seen a slowing down of the nation's growth rate. Unemployment rates have been high, and i in the next few years the labor market is; due to be hit by a flood of young people the huge postwar "baby crop" now reachingr- working age. MOREOVER, two economically depressing factors have recently combined forces. One is the existence of surplus productive capacity T. in many Canadian industries.

The other the new attraction of a booming European-' Common Market, apparently seen by many'' United States investors as a more profitable field than Canada. The Government Is hoping that a good deal of the push behind the export drive will be generated by the dollar's discount status. Fairly simple economics explain why a dis- count dollar is deemed so important. The sales price of 'most exports is quoted in terms of United States dollars or other foreign cur- rencies. When the Canadian dollar was at a premium, it meant that the Canadian dollar -return on a ton of newsprint, for example, was less than the selling price in United States dollars.

Now that the dollar Is at a discount, an export sale for $1 United States i ident of the Gibson Refrigera mittee. to multl millionaire variety store merchant eould easily have been the model for a Horatio Alger story. "But IH have a hand In things as long as I can." while admittedly a long way tor Division of Hupp Corp. in Ground wQl be broken for from satisfied with present re Greenville, said he believed con sults, Frank A. Alter, field sumer complaints were at the lowest level since World War Rogers City's new high school Aug.

with Miss Michigan Limestone named and crowned office manager, and Lawrence nedy makes a decision about a tax THERE ARK two "things." E. Good, world trade chief, ex H. In the afternoon. pressed the belief that the Anr. 4.

a Ko-float narajta wTO department's export expansion One is the S. S. Kresge a commercial empire which began in Detroit with a single campaign is beginning to pro depict an outstanding event ef duce some results in Michigan. -according to R. E.

Buchsbaum of W. E. Button 8t Co. Martin Gilbert of Van Alstyne, Noel Co. said the market seems to- have little desire to go down any further.

"The overall tone," Gilbert said, "therefore appears to be more bullish here, and we would expect additional activity Sebastian Kresge store advertising 'nothing over 10 cents," and now Includes eacn year from 1912, when Michigan Limestone was formed, ta 1962. and a marker On charges of "planned obsolescence" allegedly Inherent In the system ef annnnl models which stirred controversy In the Industry two years ago, Gibson said his company ma one of those Turn te Page 10B, Comma 4 MICHIGAN'S exports of some 800 variety and department stores in 42 states, Canada manufactured goods approxi will be dedicated to designate mate $900 million annually, and Puerto Rico. me sown a ens umeanmt cen ter of the World. making it the sixth ranking The ether Is the Kresge state in the nation. The celebration will end Aug.

SAE Elects MacDonald Giairman on. the upside." The Dow Theory Trader said we can expect only a few temporary dips in the weeks ahead, with quiet strength prevailing most of the time Foundation, which in 48 years of existence has poured more Purchasers 5 with a community ox roast and fireworks at the town's water tnan $5o million into philanthropy, public and private. front park. during late July and August. He thinks "Interest and activity In exporting Is very definitely increasing," Good reported.

"We can tell that from the stream of people going through this office every Of the town's 4,772 residents, this will be followed by a vigorous ad Harold C. MacTVonald, assist Michigan Limestone and Brad vance to new highs this fall and winter. Report Lag In Business ley Transportation Line employ 880 with an estimated an Nearlng 95, Sebastian Kresge whose mother lived to be 100 and whose grandmother died at 101 Is Just beginning to slow down. ant chief engineer of Ford Divi sion's product engineering of week and from the in ere as flee, has been elected chairman nual payroll of nearly $5 mil mg participation In our other export expansion activities." iGfeat Lakes Steel becomes one of tha lor zest sinvle of the Detroit Section of the lion. Society of Automotive Engi location users of high purity oxygen in tha As one example, Alter pointed out that Kalamazoo County neers for 1962-63.

He succeeds GEOLOGISTS In 1884 reported NEW YORK One His Involvement in the company and the foundation which bear his name has been. In recent years, largely titular. steel industry wtth the start-up of a 350' the big strata of high purity cal Charles W. Ohly. has just organized Its own ex group of businessmen often believed to have their finger ton-a-day oxygen plant by Linde Co.

at MacDonald started his auto otte limestone underlying the area. But the first shipment (to on the pulse of the economy port expansion program, headed by Upjohn and Shakespeare company executives, with the the Ecorsa plant. An earlier 500-ton-a-day Linde facility gives Great Lakes 850 tons He has turned ever the administration of both to his oldest son, Stanley, and a core of consider the current phase of Detroit) was not made until 1909. motive career with the old Packard Motor Car Co. He also business expansion "stalled on usable With the big changeover of the aim of doubling the amount of dead center." trusted men, some of whom have been associated with him Michigan Limestone Co.

began i waterfront operation in 1912 name of Ohio Oil Co. and its subsidiaries worked for The conclusion is that of i since the 1920s and have risen Chevrolet Divi and now the eight ships of the monthly survey of 200 purchas to Marathon Oil Co. Wednesday the signs of Aurora Gasoline Co. at its Detroit re through the ranks. Bradley line, with Its 300 sailors.

ing agents conducted by the National Association of Pur carry limestone all over the finery will be replaced with Marathon signs. Z. L. Goldman becomes northern region Great Lakes. chasing Agents.

BUT HE TAKES pride in sion and General Motors Truck Coach Division before Joining Ford in 194S. export business done in Kalamazoo County. The field office currently is receiving business proposals from Michigan companies that will be hand-carried Into the foreign market by American businessmen selected by the Federal Government for trade missions to Japan, the Philippines, Spain, Italy and Greece. "The current business expan being known as the oldest liv manager with headquarters in Detroit, M. S.

Schiller Michigan-Wisconsin manager and sion has ground to a halt In means $1.08 Canadian in an exporter's pocket. When it comes to import trade the same situation applies in reverse. Imported were relatively attractive back in 1959, for '-example, when $1 in American goods could be paid for with 96 Canadian cents. Now it takes $1.08 in Canadian funds. Presumably, the new exchange rats makes alternative Canadian good mora attractive and mors competitive depend- ing on how much higher-priced Import materials go into the Canadian product.

Just how effective the new austerity pro- gram will be remains to be seen. ing founder of a company listed on the New York Stock MacDonald this, its 17th month," the as Robert Ander Other officers Michigan Limestone was producing 1,000 tons a day In 1920 when It was acquired by TJ.S. SteeL Today It produces 4,000 tons each operating hour and is en twe shifts. sociation reported. Hi L.

Knapp assistant manager, with offices in Detroit. The Speedway Petroleum Corp. Exchange and quite probably Purchasing executives taking the oldest chairman of the son, Chrysler vice chairman; I E. Fleuelling, Monroe also will be dissolved in the marketing re board in the United States. part In the survey noted the rate of business improvement Auto Equipment secretary, Tf there Is an older one, The crushed limestone, quarried and George A.

Delaney, retired hu gradually lost steam since organization. Gasoline Prices he hasn't been heard from THESE BUSINESS proposals are offers to sell a product, Turn to Page 10B, Column and processed In the miH, Is Pontlao chief engineer, treas October 1961. urer. Turn to Page 10B, Column Turn to Page 10B, Column 4 are actually 20 per cent (five cents) "WHETHER this is a tem less than motorists paid in 1919, according to the Cleveland Trust Business porary pause, accentuated by the usual summer doldrums be Bulletin, but the average price paid na Facts and Figures on the Week's Business fore moving on to higher ground, or the Jumping off spot for the next recession, time will tionally (not in Detroit's "gas wars) are five cents higher now than in 1919 be ten." the association said. cause of taxes.

Taxes now amount to 50 For the first time since early In the Nation per cent of the price of gasoline, or one- 1961 at the low point of the 1950-61 recession, more agents reported their new order posi third of total retail price Equity Detroit, arranged to borrow $420,000 from Mutual of New York to help finance The following table lists operating results in major lines of business and finance in the latest week, with comparisons with the preceding week and a year ago: tion "worse- than "better" than a month ago. The percentages construction of a store at Michigan and Latest Week were close, zs in the worse lEddlebelt that will be leased to Atlantic column and 25 In the better column leaving 49 per cent 3UIIs Thrift Center of Inkster, Inc. that considered the situation Hupp Corn, with its Fannon Products 1,898,000 558,246 285,864 161,812 7,460,000 6,997,310 Steel Prod, (net tons) Freight Car loadings Misc. Freight Auto Prod, (units) Soft Coal Prod, (tons) Crude Oil Prod, (bbls) the same. The association said that Division in Detroit and Gibson Refrigera-tor- Division in Greenville, reported six- while only one per cent sepa In Detroit Latest Week Prior Week Tear Ago Electrical (total) 311,733,000 314,672,000 292,785,000 Industrial 129,423,000 131,009,000 120,073,000 Gas Output 1,716,846,000 1,715,417,000 1,437,990,000 Steel Production 89.0 89.0 117.0 New Car Registration 8,419 3,49 1 2,979 Detroit Street Railway 1343,829 1,907,156 1,874,557 Building (total) $211,200 $132,000 $303,700 New 1,673,793 539,467 979,576 Additions 1,027375 339,761 555352 Residential 645,918 219,706 423,724 Permits (total) 223 225 240 New 63 68 84..

Additions 160 157 156 Residential 16 10 32 FHA Applications 591 29 482 Unemployment Claims Initial 7,414 7,181 23,559 Total 89,151 42,323 76,461 Welfare 12,143 12,173 10309 Employment Index 823 83.4 813 Tear Ago 1,858,000 584,137 284,858 97,028 8,167,000 6,716,210 $399,700,000 88.1 91.0 17,360,360 136,060,000 84S 99.8 Prior Week 1,370,000 497,660 284JL07 173,593 2,215,000 6,962,410 $506,800,000 75.4 7L0 15,962,490 124,676,000 253 100.3 month earnings of 42 cents a share vs. rated the worse and better $459,800,000 Engineering Awards categories "this crossing Paper Prod. (4 of cap.) 88.0 In Stocks NEW YORK (UPI) A pending presidential decision that would affect every American pocket book kept the stock market on tenterhooks this week, allowing it to move neither up nor down decisively. While the nation's Chief Executive pondered a quickie 1962 tax cut in order to spur a faltering economy, a dull calm settled over the market. Prices eased slowly In the first half of the period but made up the lost ground and moved ahead a bit on the week in the final session as many steel companies maintained their dividends and the Senate Finance Committee softened proposed tax boosts on savings and loan companies.

Giant U.S. Steel, however, will be heard from next Tuesday, and only when its regular payment is declared will Wall tree ten breathe a sigh of four eents in the 1961 period 5-Dividend Cut significant.M "It Is alarming to Paper Board Prod. of cap.) 93.0 Stock Sales (shares) 13,914,661 Bond Sales (par value) 120,450,000 Bus. Failures (number) 286 Wholesale Prices (BLS Index) 100.3 the association added, "that from 375 cents a share to 25 cents in every postwar expansion, when those reporting; better was announced by Alpha Portland Cement Co: after earninsrs fell to 53 cents for (Final Three Ciphers Omitted In Following) 15,829,000 tho first half vs. 63 cents a year ago 16,749,000 Elec Power Prod.

(KWH) 16,759,000 new order and production figures dropped below those reporting worse, we have gone Into a recession within Bank Clearings Detroit Steel Corp. reported earnings of $28,927,905 $61,794,000 Z9 cents a share in the first half vs. eight three to eight months." cent a year ago P. W. Perdriau, presi $28,457,665 $82,509,000 $31,380,000 $650,000 $1725,000 $1,311,000 $32,476,000 $50,000 $31,594,236 $61,567,000 $33,278,000 $562,000 $16,298,000 $904,000 $34,091,000 $163,000 Demand Deposits Business Loans Excess Reserves Treasury Gold Stock Brokers Loans Money in Circulation dent of B.

F. Goodrich Industrial Products It noted, however, that variables such as the stock $33,081,000 $532,000 $16,269,000 $886,000 $33,901,000 Source Tha Detroit Edison Michigan Consolidated Gas Greater Detroit Board of Commerce; American Iron Steel Institute; Federal Housing Administration; Department of Buildings and Safety Engineering; Department of Street Railways and Detroit Ante Dealers Association. market slump and depreciation was elected president of B. F. Good rlrh Tira Co.

Walter Kidde Co. ac law change, are present this Member Bank Borrowings $53,000 time. Suired Douglas Randall, Inc..