WASHINGTON AND
"S/yiALL BUSINESS”
By C. WILSON HARDER
What well could become one
of the most important legal de
cisions in economics was en
tered in the Common Pleas
court of Judge Paul H. Smith
Jr. in Pittsburg. Penn.
* * *
The Gillette Safety Razor
people, to protect their trade
mark, and to
prevent dis
ruption of the
quality razor
blade
by inferio
foreign made
blades, main
tain a
price struc
ture on their
products.
* * * C. W. Harder
In Pennsylvania, a discount
operation started using cut
prices on Gillette products as
bait to induce store traffic.
Gillette took court action.
* * *
Judge Smith apparently took
cognizance of the merit of the
Gillette pleading. But he also
took cognizance of the fact
that in many stores where Gil
lette products are sold at the
established price, these stores
also give trading: stamps on
the items they sell, including
Gillette products.
* * *
On this basis, the judge hand
ed down a decision giving G l
lette 90 days in which to advi*?
all retailers they must stop giv
ing trading stamps with Gil
lette products. If Gillette fails
to follow ruling, then Gillette
must stop objections to discount
pricing on their products.
* * *
The court took the position
'T N iliorul Pnleratl«»n of InrietK n.lcnt Business
that in the final analysis trad
ins stamps art as a discount,
or prior reduction, and hence,
probably acting; on the old com
mon law precept that a plain
tiff should come to court with
clean hands, made this unu
sual decision.
* * *
This decision is an important
one in the legal cloth on the
subject of trading stamps be
ing woven by many court ver
dicts in many courts in many
scattered areas.
* * *
It would seem eventually
that the Federal Trade Com
mission, which has off and on
toyed around on the trading
stamp matter, will he forced
to take a non-weasel-worded
position on the subject.
* * *
More and more regulations
are being formulated and en
forced that have the intent of
advising the installment buyer
what the cash price of the
merchandise is, and what the
price is when bought on the in
stallment plan.
* * *
Jhus, Is seems perfectly log
ical that consumer should be
given two prices on merchan
dise they buy with trading
stamps. One would be the price
without stamps, the other the
price if they take stamps.
* * *
Obviously, if the consumer
wants to pay extra to get the
trading stamps, the consumer
should have that privilege.
* * *
But the consumer should not
be permitted to suffer under
the delusion that with trading
stamps, something for nothing
is being gained.
Ninilchik Farmers First in State
To Join National Conservation Group
Ninilchik area farmers chalked
up another “first” last week not
only for the Kenai Peninsula but
for the state of Alaska as well.
Ninilchik Soil Conservation
Subdistrict became the first dis
trict in Alaska to join the Nation
al Association of Conservation
Districts. This action, reported by
Rudy Ogren, chairman, heralds
the first attempt by a local sub
district to bring Alaskan needs
before this national farm group.
“We must move to make our
needs known,” Ogren states. “Our
problems are unique and pressing.
We have few opportunities to par
ticpate in national farm groups.
Membership in this organization
Read the Cheechako News
classifieds for profit — use them
for results.
I
will provide an opportunity for
us to speak on a national level.”
The National Association of
Conservation Districts is a highly
respected organization which is
dedicated to the promotion of
“good land use.”
NACD members participate in
formulation of programs affect
ing all aspects of soil and water
conservation. Of particular inter
est to Alaskans is the work of the
NACD public lands committee.
The decision to join the nation
al organization was taken at-the
regular January subdistrict meet
ing held on Jan. 10 at Ninifebik.
The present board of supervis
ors of the Ninilchik Soil Conser
vation Subdistrict includes Rudy
Ogren, Floyd Blossom, Ed Rdfkar,
Danny Garroute and Gene Smith.
Art Hawke, work unit conser
vationist with the Soii,Cogseitva
tion Service stationed at Homer,
met with the group in an advisory
capacity.
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Peninsula To Help
Fight Polio With
New Oral Vaccine
Another public health service
wiil be brought to residents of
the Kenai Peninsula by the Ke
nai Area Health Council with an
oral polio vaccine program to he
administered in cooperation with
physicians on the Peninsula, it
has been announced by Miss Jean
nine Lyerly. public health nurse.
The oral polio vaccine will he
given in three doses on three Sun
days with the first to he given on
January 27. The second and third
doses will follow on March 10 and
April 21. The same program will
he carried on at three separate
localities on those days with lo
cal physicians and volunteer as
sistants and nurses aiding with
the program.
At Kenai, it will be at the Ke
nai Community Library; at Ni
nilchik, at the school house and
will be for the Clam Gulch and
Anchor Point residents as well;
while location at Soldotna has not
been announced as yet but is pre
sumed to be either at the school
or at the Community Hall. Defi
nite announcement as to location
will be announced soon for Sol
dotna.
Hours for administering the
vaccine will be the same at all
three towns—from 12 Noon to 8
p.m. on each of the three Sun
days.
A similar program is to be con
ducted at Homer and Seward for
those portions of the Kenai Pe
ninsula. Slogan for the program
is “Stop polio — Drink your vac
cine.’’
In conjunction with the oral
polio vaccine program, John Whit
tier of Anchorage, representa
tive of Lederle Laboratories, will
speak at the Kenai school at 8 p.
m. on Tuesday, Jan. 22. Whittier
will explain the new vaccine and
will answer questions concerning
it. The public is invited to attend.
The vaccine is being adminis
tered at minimum cost to the com
munities. For the individual it is
only $1.50 for all three doses.
Family rate at $5 will pay for the
required three doses for four or
more persons.
The Kenai Health Council cur
rently is conducting its annual
fund raising drive to help pro
vide for health-needs in the en
tire area. Contributions can be
mailed to Kenai Area Health
Council, Box 220, Kenai.
The Council meets at 8 p.m. on
the second Tuesday of each month
in the Kenai Health Center. Ev
ery organization in the area serv
ed by the Council is asked to send
a representative to these month
ly meetings.
Social Security
Taxes Increased
Workers and their employees
will now pay higher social securi
ty taxes, dating back to Jan. 1,
1062. By law, the tax rate on
wages increased on that date from
the past year’s 3%'' each on
workers and employers to 3%',
each. The self-eniployment tax
rate goes from 4.7% to 5.4% for
1063 earnings.
Social security taxes are collect
ed on only the first $4800 of wag
es or self-employment income. A
worker who has wages of $4800
and also has income from a bus
iness pays only on his wages.
Self-employed people pay their
social security taxes once a year
when they make their Federal in
come tax returns. When making
returns on 1962 income, self-em
ployed businessmen will pay the
1962 tax rate of 4.7% . The new
rate applies only to 1963 income,
which, in most cases, won’t be re
ported until 1964.
The new rates will, under pre
sent law, be in effect through
1965. Another increase is sched
uled in 1966. The top rate sched
uled to go into effect in 1968 is
4%% each for workers and their
employers and 6.9% for the self
employed.
According to Lee R. Christen
sen, district manager for social
security, these increases are to
keep the system self-supporting
and soundly financed.
FHA Making Many Loans
For Homes on Peninsula
Farmers Housing Administra
tion has approved 13 new housing:
loans for the first half of the 1962
fiscal year on the Kenai Peninsu
la amounting to $206,850. There
are also two subsequent housing
loans amounting to $7,500, one
new operating loan of $5,000 and
two subsequent operating loans
amounting to $10,000, bringing
the total loan volume to $229,
250.
Of this total amount, eight new
homes were financed in the
amount of $170,250 averaging
$21,202.75 per home; five new
loans were made for completion
or remodelling of dwellings
amounting to $36,500 for an av
erage of $7,200, and a sum of
$15,000 was used among three
farm families for farm operating
purposes.
The use of these loan funds in
this area is quite significant in
relation to Rural Area Develop
ment, stated John P. Bugli, Alas
Bank Adds Two
New Directors
The Alaska State Bank, which
operates a branch bank in Kenai
with J. R. Lietzke as manager,
elected two new directors to the
reelected 15-man board at a spec
ial meeting of stockholders at
Anchorage last week.
The newly elected directors are
Lowell Thomas, Jr., and Carl
Brady, both of Anchorage.
Thomas, widely known as a
world traveler, author and recent
Republican candidate for the U.
S. Congress, has compiled a new
film on Alaska which has been
sent to National Broadcasting Co.
at the request of NBC vice presi
dent William McAndrew.
The film’s showing is being
sought in an effort to offset some
of the damage done to the State
of Alaska by the adverse publicity
in the David Brinkley television
program broadcast over NBC net
work on Jan. 7.
Thomas’ film report on the ec
onomic development of Alaska
was a project begun a year ago
with part of the cost of the pro
ject being assumed by the Alas
ka Bankers Association and the
State Chamber of Commerce.
Brady, the other newly elected
director of the Alaska State Bank,
is a board member of the Anchor
age Chamber of Commerce, is
president of Era Helicopters,
and a permanent member of the
board of directors of the Helicop
ter Assoc, of America.
The board reelected all officers
in their present positions with
R. A. Kennard as president and
Mrs. Brideen Crawford as board
chairman.
Classifieds are news.
ka supervisor working out of the
Soldotna office.
‘‘In terms of employment, one
could estimate five jobs directly
to each housing loan employing
tradesmen such as carpenters,
plumbers, electricians, excavation
crews, concrete crews, painters,
plasterers and other construction
services," Rugli said.
In addition to direct results of
rural housing construction, vari
ous other items of development
are stimulated in the area, such as
freight, retail and wholesale mer
chandise stores, grocery stores,
service stations, banking, insur
ance and several other business
es, the supervisor added.
The Farmers Home Adminis
tration provides credit in rural
communities to eligible applicants
who are unable to finance their
needs with their own resources
and from private credit sources.
The loan authorities of the
Farmers Home Administration
are now broadened to include
housing credit to senior aged
citizens, loans to associations for
shifts in land use, and loans to
family farmers for recreational
enterprises, Rugli said.
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