Evening star. [volume], April 22, 1963, Page A-19, Image 19

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
SMALL BUSINESS PROBE
House Hearings Scheduled
By DON BACON
• Star BUtt Writer
Next week a congresional
committee plans to resume
hearings to determine where
small business fits Into Ameri
ca’s much-discussed plans tor
expanded foreign trade.
The hearings, called by the
House Select Committee on
Small Business, began in late
March with three days of testi
mony from government agency
officials. When the hearings
reopen, probably on May 1. rep
resentatives from small busi
ness will give their views.
The Kennedy Administration
Is committed to a program of
expanded exports as a means
of stimulating the economy
and helping the balance of
payments, one of the nation’s
major economic concerns.
Exports last year Increased to
$21.0 billion—even without the
benefit of the new Trade Ex
pansion Act—from s2l billion
In 1061 and $20.6 billion in
1960. Indications are that
“big" business, the major do
mestic manufacturers,
accounted for nearly all of the
increased foreign trade.
New Amendments Possible
From Initial testimony be
fore the committee “there ap
pears to be vast potential for
small business in foreign
trade,’’ comments a committee
spokesman. “But we’re finding
that businessmen don’t know
what’s available."
As a secondary objective, the
Small Business Committee,
headed by Chairman Evlns of
Tennessee, is studying the ex
port assistance provided for
small businesses by the vari
ous Federal agencies, especially
the Small Business Administra
tion. Amendments to existing
legislation may result from the
House Inquiry.
Expanded export trade may
be the answer to many of the
economic problems which have
nagged small businessmen for
years. Often unable to com
pete In price or production re
sources with the giant diversi
fied corporations, the small
businessman has had to turn
more and more to the Federal
government for help.
New Stock Offerings Still Lagging
By DONALD B. HADLET
Star Financial Editor
New stock offerings contin
ued to lag in the first three
months of this year, despite the
general rise in stock prices, the
Securities and Exchange Com
mission reported today.
Only 93 stock issues were
Marketed in the period, com
pared with 273 a year ago. In
tfie final 1962 quarter, 101 is
sues were marketed,
j Secondary distributions o
common stock likewise were
moderate in number and vol
ume, with the total amounting
tp only sll4 million.
; New corporate securities of
fered for cash sale in the three
Sonths totaled $2.5 billion, a
op of S4OO million from the
final 1962 quarter, but sl6l
trillion above the first 1962
Quarter.
, Bonds and notes accounted
for $2,259,000,000 Os the latest
total, while common stock
totaled $217 million ana pre
ferred stock amounted to $64
million. Convertible bonds ac
counted for SBS million.
Publicly-offered bonds, notes
and debentures amounted to
sl.l billion in the quarter. Just
about the same as in the first
and fourth quarters of 1962.
Privately-placed debt issues,
on the other hand, totaled $1.2
billion in the three months and
were $450 million above a year
Cbrlier. They were below a rec
ord of $1.6 billion in the final
1962 quarter, however. Four
major private placements alone
accounted for $350 million in
tfce latest period.
• The corporate securities total
fjpr the quarter did not Include
sales of investment company
glares, which totaled $250 mil
lion in the first 1963 quarter.
Compared with $650 million a
iear earlier.
• Manufacturing companies is
sued S9OO million of new secur
ities in the quarter, compared
fith SBOO million in the previ
ous quarter and S7OO million in
the same period last year.
! The SEC report said $1.4 bil-
Hon dr 55 per cent of the pro
«Jeeds from new financing in
the quarter was to be used for
giant and equipment expendi
tures, a somewhat higher pro
portion than in the two preced
ed periods.
IBank Will Open
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\ J
JOHN E. HORNE
Some businessmen, fright
ened by the threat of low
priced imports adding to their
competitive problems, have
been reluctant to support the
freer trade policies of the Ken
nedy Administration.
There are about 4.S million
so-called small businesses in
the nation* employing about 30
million people, and accounting
for about 40 per cent of the
nation’s total business volume.
(The 8. B. A. uses a compli
cated system to define a small
business, but in general it is
based on the particular busi
ness’s employment and sales
volume within Its own indus
try.)
“We believe that the small
businessman’s stake In the fu
ture of international trade Is
very high,” John E. Home, the
8. B. A. administrator, said in
testifying before the House
Committee.
“Small business cannot af
ford to isolate Itself from the
patterns of national growth,”
he added. “Since international
trade, is a significant segment
of the economic spectrum, its
potential as an additional
source of profits should not be
ignored by small business.”
To get more businessmen,
particularly small businessmen,
interested in exporting, the
government last year launched
land has received approval from
the Federal Deposit Insurance.
Corp. for establishment of a
new branch office In Chevy
Chase, Md„ it was announced
by the FDIC today.
The new office will be be
tween Chevy Chase Lake and
Jones Mill road.
Small Capital Firms
Get sß77 f 985 Orders
Small business firms received
$877,985 of Government con
tracts in March under the set
aside program of the Small
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All Flight* Depart from
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a "iwnJ Sy." n> nurvttlns ' »Psy Ossdt rwsnuUsws t First Clm
a promotional campaign, util
izing bureaucratic variations of
Madison Avenue advertising
techniques. Chairman Evlns’
committee wants to find out
how well it is succeeding.
Eight Agencies Co-operate
One witness, Draper Daniels,
a Chicago advertising executive,
who was appointed by the
President last year to be Na
tional Export Expansion Co
ordinator, testified that the
program is going quite well.
Small businessmen, he said, are
responding to the trade fairs,
trade mssions, export awards
and other promotional projects
designed to stimulate more in
terest in exporting.
In addition to co-ordinating
the promotional projects cen
tered In the Commerce Depart
ment, Mr. Daniels is supposed
to review the various trade pro
motion activities of the State
Department, Treasury, Agricul
ture Department. Export-Im
port Bank, Bmall Business Ad
ministration, Agency for Inter
national Development and
United States Information
Agency.
He also works closely with
the National Export Expansion
Council, a group of 37 business,
labor, education and agricul
ture specialists who volunteer
their services. The council Is
concerned mainly with “person
to person” selling of export ex
pansion.
Others who have testified In
clude the president of the Ex
port-Import Bank, which in
sures and guarantees exports
for small business; Commerce
Secretary Hodges, whose de
partment directs most of the
trade promotion; the chairman
of the United States Tariff
Commission, which rules on
complaints of economic dam
age caused by Imports; the ad
ministrator of the Agency for
International Develop
ment, which buys commodities
for export and offers trade
assistance to American busi
ness, and the assistant secretary
for economic affairs at the
State Department, which directs
International trade negotia
tions.
Business Administration, Ar
thur H. Doll. Washington
branch manager for the SBA,
reported.
Awards Included; Alton En
gineering, $103,000; Barry In
dustries, $172; Construction
Services, $13,713; District En
terprise Co., $11,800; Eslin Co.,
$18,733; B. L. Frederick Co.,
$27,967; William F. Harrison,
$7,453; Minmar Builders, $124,-
963 Porter Construction Co.,
$8,434; Rogers Sc McGrath,
$81,950; Thomas Concrete Co.,
$479,000, and Whiting Elevator
Co.. SBOO.
Mott's GM Holdings J.
Total 1,930,000 Shares
FLINT, Mich. (AP).—When
General Motors announced it
mailed a proxy statement to
stockholders last week, the
name of Charles S. Mott of
Flint popped up again.
This isn’t unusual when GM
is in the news. Mr. Mott is the
giant auto firm’s largest stock
holder with 1,930.000 shares in
his own name. He also holds
679,800 shares as trustee for
his wife and two children.
Mr. Mott acquired his GM
stock in the days before Fed
eral Income taxes. He has
never sold any and has nu
merous other interests. So there
has been considerable specula
tion as to the extent of his
wealth, with estimates topping
SIOO million.
Mr. Mott, however, frowns
on this sort of talk. “It Isn’t
how much a man has, but
what he does with It that
counts,” the tall, slender,
bushy-browed automotive
pioneer once said.
Mr. Mott built his fortune
making axle assemblies and
components for the budding
auto industry, then selling out
for GM stock.
But he uses his fortune for
the benefit of Flint.
The Mott Foundation, worth
millions Itself, has distributed
millions of dollars for youth
and adult education, for a
health and safety program di
rected at both the schools and
community of Mr. Mott's home
city, and facilities for the
training of teachers In eco
nomics.
He has given land and money
for a Junior college, for the
University of Michigan’s Flint
branch and several other struc
tures. A lot of Mr. Mott’s
money went into financing of
the Mackinac Bridge, which
spans the Straits of Mackinac
between Michigan’s two penin
sulas.
But the 84-year-old Indus
trialist doesn’t just give money.
In 1953, Flint was hit by a
devastating tornado. More than
100 persons were killed. Volun
teers were sought to help re
build leveled homes. Mr. Mott,
then 74 years old, turned up
in overalls, sawing and nailing
siding. He had come, unan
nounced, and carrying his own
tools.
“It’s what every good neigh
•
D. C. Mutual Fund
Announces Dividend
Shares in American Indus
try. Inc., a Washington-based
mutual fund, today declared a
dividend of 15 cents a share
from investment income. Pay
ment will be made May 27 to
shareholders of record May 6.
The dividend is the fifth
paid by the fund and the sec
ond distribution from earnings
for the fiscal year ending Jan
uary 31. A previous dividend
of 5 cents per share was paid
in November, 1962.
B|
CHARLES S. MOTT
—AP Wlrephoto
bor ought to be doing,” he ex
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The
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. 68 OFFICES serving the Stote of Maryland j
THE EVENING STAR
Washington, D. C, Monday, April 22, 1963
High Court Upholds Rail Rate Cuts
By the Aesocltted Pres*
The Supreme Court ruled
unanimously today that the
Interstate Commerce Commis
sion lacked a basis for ordering
cancellation of freight rate
cuts proposed by several rail
roads for trailer-on-flatcar
service.
Justice Harlan wrote the
court’s opinion in a case in
volving Sealand Service Inc.
and Seatraln Lines Inc.,
coastal water carriers.
Reductions on various com
modities hauled by piggyback
service were planned by the
New York, New Haven 6c
Hartford Railroad and oter
railroads for shipment between
points In the east to Dallas
and Fort Worth, Tex. The
points affected also are served
by the water carriers.
Justice Harlan said that in
this particular case ICC made
no finding, and developed no
supporting evidence, that the
proposed rates would drive
Business, Stocks
! water carrier rates below a l
profitable level or otherwise
endanger survival of the water
carriers.
Justice Harlan also said the
commission had not presented
jan adequate basis for its
conclusion that the national j
defense, or any
segment of the country's com- ,
merce, depends upon operation
of the two water carriers.
The high court ordered the
case set back to ICC for fur
ther proceedings on the issues!
pointed out In its opinion.
On a complaint by the New
Haven Railroad and other'
: rails, the United States District
Court In Hartford, Conn., set
aside the ICC order. Sealand.
Seatraln, ICC and the Justice
I Department then filed sep
arate appeals directly to the
, Supreme Court. They asked
affirmance of the ICC order,
i The proposed railroad cuts 1
would reduce shipping costs to
: the level of the water carriers’ I
1 rates. They also would be below
the level maintained by the
rails for similar traffic between
points not served by the water
carriers.
ICC blocked the reductions
on the grounds that the water
[carriers could not compete
with rails at equal rates; that
the reductions were the first
step in a general rate-cutting
program that threatened the
water carriers’ existence; that
the water carriers were essen
tial to national defense and an
integral part of the national
transportation system.
New Dyes Made
NEW YORK-The develop
ment of new dyes for poly
propylene fibers is expected to
open the way to the large
scale use of these fibers for
I the first time. The new textiles
are said to have good light
fastness and cleaning proper
ities.
A-19