Monday, Oct. 07, 1957
U.S. CONSUMERS are unpeeling their bankrolls at record rates. Commerce Department says Americans are spending 68% of their disposable income in retail stores, v. 66% a year ago. With personal income up 6% over last year (2% more in actual purchasing power), last month's retail sales jumped 9% over August 1956.
TRUSTBUSTERS this month will explain how they think Du Pont should dispose of its 63 million shares (23%) of General Motors; Du Pont will then have 60 days for rebuttal. Government turned down Du Pont's initial proposal to put the stock on a nonvoting basis, restrict its participation on G.M. board. Justice Department will insist on complete and final sale of all G.M. stock owned by Du Pont, but Du Pont will press fight to hold stock and dividends while divesting itself of control.
BREADMAKERS are in a jam with Food and Drug Administration. FDA charged that big Continental Baking Co. falsely labeled its Wonder and County Fair buttermilk brands as enriched breads. Agency will crack down on bakers that puff their breads with excessive health claims.
B58 HUSTLER BOMBER has performed so well in test flights that Air Force will speed up production of the four-jet plane that may replace Boeing's B-52. Air Force has 13 delta-wing, supersonic Hustlers on order from Convair, is about to sign contract for another 17, has approved plan to buy still more planes. Hustler's steep price (more than $10 million) will come down to $5,000,000 when full production starts.
PACIFIC NORTHWEST is battling worst economic decline in decade. Lumber sales and prices are off from last year, fishing industry is smarting from Japanese competition and lower U.S. consumption, and payroll at Boeing, area's biggest employer, is being trimmed. Washington State unemployment is up 43% from last year. Fighting back, Washington, Oregon governors are forming development commissions to attract new business to depressed area.
FIRST U.S. SUPERMARKET in a Communist country proved such a thumping success at Zagreb Fair that Yugoslav government's export-import agency will buy the market's refrigerator display cases, prepackaging equipment, shopping carts and checkout stands for about $30,000, use them to start supermarkets of its own. More than 1,000,000 Yugoslavs trooped through U.S. supermart during 15-day fair.
PULLMAN SLUMP caused by airplane competition will force Pennsylvania Railroad to halt coast-to-coast through-sleeper service, make transcontinental passengers go back to switching trains in Chicago. Each through sleeper needs 15 passengers to break even, has recently averaged only nine.
JAPANESE TOYS are being investigated by Public Health Service on complaints that they carry potentially dangerous lead paints. Dallas health officials say paints on some of them have "several times" the 1 % lead content that is considered safe limit.
EUROPE'S COMMON MARKET will speed moves by U.S. companies to open subsidiaries on Continent, thus get in under tariff wall. Heading in that direction, Pittsburgh's fast-growing Rockwell Manufacturing Co. (1956 sales: $115 million) will buy West Germany's Ilo Works, continue to make Ilo's diesel and gasoline engines there and also turn out the valves, pipeline meters and power tools that Rockwell makes in U.S.
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