AMERICAN AIRLINES, grounded by the strike of its 1,200 pilots (TIME, Aug. 9), struck back with a $1,250,000 damage suit against the Air Line Pilots Association, A.F.L. Strike may spread to United, but Trans World Airlines sidestepped the battle. It ordered its nonstop transcontinental flights to put down in Chicago to refuel and change pilots, thus avoid the cause of the walkout: exceeding an eight-hour limit on flying time for flight crews.

FILTERED CIGARETTES' last big holdout, American Tobacco, is giving in. It will bring out a new cellulose-tipped Herbert Tareyton, continue making the old cork-tip, non-filtered Tareyton and, of course, Lucky Strikes.

NO-STRIKE RULES were clamped on tighter by the National Labor Relations Board, which reversed its position that a union is free to strike during a contract any time after a 60-day cooling-off. NLRB decided that from now on a union may strike legally only when a contract ends or is subject to alteration. New interpretation of the Taft-Hartley Act means workers who go out on strike at other times during the life of a contract thereby lose all of their job rights.

GUINNESS STOUT, after five years at trying to convince U.S. beer drinkers that "Guinness is good for you," will give up. Guinness will close its Long Island City plant (annual capacity: 100,000 bbls.), meet the U.S. demand for its rich Irish brew with exports from the famed St. James's Gate brewery in Dublin (capacity: 3,500,000 bbls.).

LOCKHEED AIRCRAFT Corp. is ready to flight-test its big (20-ton capacity), powerful (15,000 h.p.) turboprop military-cargo plane, the YC-130, next week. Designed as a workhorse, the YC-130 can carry a tank, take off from short, front-line airstrips, fly faster and higher than any other U.S. military transport. Lockheed already has Air Force orders for 29 YC-lSOs, and expects to deliver the first production model within a year.

PAPER-MATE PEN CO., which sold $20 million of ball points in 1953 (at 97-c- and $1.69 retail), will invade the quality market with a $15, gold-filled gift model by October.

JAPAN'S HEAVY INDUSTRY is moving back into the international markets with cut-rate prices. On a contract to build 100 steam locomotives for India (to be paid for by the Foreign Operations Administration), the Japan Rolling Stock Exporter Association bid $81,470 each, 7% under the bid by Germany's Friedrich Krupp, less than half the $178,200 bid by Philadelphia's Baldwin-Lima-Hamilton locomotive works.

BASEBALL MANUFACTURING is in a serious slump, brought on by a 40% drop in the number of minor leagues since 1949 (present total: 33). Sales of baseballs are so low that Wilson & Co. closed its 50-man Schenectady plant, will meet the demand from its Tullahoma, Tenn. plant.

BOEING'S $20 million gamble on its dual-purpose Model 707 (TIME July 19) is paying off. The Air Force ordered a "limited number" of the sweptwing, 550-m.p.h., four-engined jets as tankers to refuel jet bombers. Production orders are expected to bring down costs, hasten the day when commercial airlines can buy a 130-passenger version of the 707 for a cross-continent run of 4 1/2 hours.

GIANT TEXTILE COMBINE may develop out of negotiations among American Woolen, Textron and Robbins Mills. American Woolen stockholders are being asked to okay a deal that would 1) put Royal Little's Textron on top as a diversified holding company, 2) turn Textron's textile plants over to American Woolen, which would become subsidiary and produce woolens, cottons and some synthetics, 3) make Robbins the big synthetics producer, subsidiary to American Woolen,

This file is automatically generated by a robot program, so reader's discretion is required.