Monday, Nov. 25, 1957
TIE-IN LIQUOR SALES, in which a wholesaler forces dealer to take less popular brands before he can get scarce, top-quality liquors, are illegal, U.S. Supreme Court ruled. Case was brought against Magnolia Liquor Co., the sole Seagram's distributor in New Orleans, which required dealers to take Seagram's Ancient Bottle and 7 Crown brands in order to get scarce Scotch and Seagram's V.O.
U.S. AIR-CONTROL PLAN will get started with CAA's order for $11.4 million worth of jet age navigation equipment. Deal is first in $314 million program that by 1965 will set up ground stations to constantly give pilots exact geographical position and direction. Initial order consists of VORTAC navigation equipment for 132 stations.
HOT-CARGO PACTS, by which common-carrier truck lines agree to boycott cargo going to or from any company that is branded "unfair" by Teamsters Union, are invalid. NLRB reversed its 1949 decision, said that such contracts are secondary boycotts in violation of Taft-Hartley Act.
UNION STRIKE BENEFITS are tax-free gifts rather than taxable income, a federal court ruled in Milwaukee. Jury ordered Internal Revenue Service to return $108 that it assessed on $566 paid to Kohler Co. striker by United Auto Workers. Unless higher court revokes it, decision will set legal precedent affecting millions of dollars in taxes.
COUNTRY CLUBS get $793 a year from average member. Survey of 50 clubs with total enrollment of 31,000 shows typical member spends $288 for dues, $141 for drinks, $244 for food, only $51 for sports, $69 for other items.
RAMBLER SALES BOOM is pulling American Motors Corp. into the black and easing its self-admitted doubts of survival (TIME, Sept. 23). Sales for first ten months of 1957 hit 77,318, topping all of 1955 and 1956, and deliveries in October--first month of the 1958 series--ran 78% above deliveries of all Ramblers in October of 1956.
FIRST U.S. TURBOPROP, the 410-m.p.h. Lockheed Electra, rolled off production lines a month ahead of schedule in race to beat Boeing's 600-m.p.h. pure jet 707 (TIME, Nov. 11) onto commercial air lanes. Lockheed has 141 firm orders for the $2,000,000 plane, is scheduled to make first delivery to Eastern Air Lines in August of 1958.
AFRICAN INDUSTRIALIZATION will be speeded by $3 billion Inga hydroelectric project, the world's biggest, to start building soon near mouth of the Congo River. Complex of dams and power stations will generate 200 billion kw-h a year--about twelve times the output of Grand Coulee Dam --for power-short central Africa. Belgium figures project will attract $15 billion to $20 billion in Congo industrial investment.
ARABIAN OIL MONOPOLY, held by U.S.-owned companies, will be broken if Japan's new Arabian Oil Co. signs pending contract, upsetting the traditional 50-50 profit split. Terms of deal are still secret, but oilmen in U.S. and Tokyo say that Japanese company will pay about $2,000,000 a year to seek oil off shore of Saudi Arabia's half of Neutral Zone, will give 56% of profits and several other benefits to Saudi Arabia.
VARIABLE-RATE BONDS, with interest pegged to cost of living, will be sold by Farm Bureau Cooperative Association of Ohio. Association will pay minimum of 454% on $1,000,000 issue to mature in 1968, but will boost rate two-tenths of 1% (up to a maximum of 7.1%) for every one-point rise in U.S. cost-of-living index.
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