Detroit evening times. (Detroit, Mich) 1921-1958, 1942-08-18
On the
Business

By WARD SCHULTZ
Detroit Times Financial Editor

TroH, outlook o. auto parts
-4mu4ul12- Is mole uncertain than
over despite the Tact that output
, expected to set new records.
according foa Wall Street journal
~lNey. Cuucnt roncgofatonS of
couuae. prue, ut tine major
reason
Practically al former oItomo-
llc parts and cqupWent COM
pan,os have stepped up tAcu pro-
ducum SUBSTANTIALLY since their
sales reached bottom following
~tepp4ee- 81 automobile H4ap4iAc-
turing last winter
Barring restrictions that may
affect output later this year ma
tcrialS and labor shortages vol
umc is scheduled TO mount much
farther than II has So far. output
schedules of almost every company
r. -rr-ll rat levels Two and three LINES
their highest pcacctlmc peak.
Earnings outlook, however, is
not as encouraging as prospective
sales volume would indicate. In
fact. financial officials Of various
corporal ions profess greater I'M
certainty as TO profit prospects
than ever before in their expert
encc.
RcncCotiations Of prices on gov
-efnmef4t- contracts the biggest
.hugaboo Many companies are en-
gagged IN such negotiations with
the Price Adjustment Board and
the army and navy In some in
stances these negotiations have
-hnen-gning- nn-fnr three months
and promise to-continuc endleSSly.
Other companies haven't started
TO talk about lower prices yet but
know that they are slated TO bring
IN their costs for review.
Contributing 10 the uncertainty
rs lack of any clear rule as 10
what costs are allowable IN COM
putationS designed TO establish
new prices on war orders. One
company'S experience is not neceS,
Safi1y a guide FOR others engaged
in making The same things. Such
things as how each company Is
financing its war work are con-
Sidcrcd
Another big question is whether
to permit reserves Tor postwar
contingencies as an element Of
cost in handling war contract
Government officials say no. Cor
poration arrangements feel this IS
unfair. that there inevitably will
be poSt-wa losses 10 be taken and
that they'll have 10 be cushioned
by establishing reserves now.
The Price Adjustment Board.
says: That's all right 90 right
ahead and establish them out of
left over after prices are
refgured But you can't include
them as part of your costs when
you talk with us"
There the matter rests at the
moment.
Tonight'S a big night in the
lives of u employees of the Indus
trial National Bank.
Following the regular annual
custom. which has been in effect
for eight years. suitably engraved
wrist watches Will be presented TO
employees completing Is years OF
service with the bank.
The affair will be a part Of the
annual dinner dance for employees
at Lockmoor Country Club, and
special emphasis will be placed on
the party this year because of the
close proximity 70 the banks
twcnty-ffth or silver anniversary
on August Is
The l. who will receive watches
bringing tho total 10 56 are
Thomas A. Burnie. Gertrude Ba-.
log. Keith 6 Cone. Frances BCall
Anthony Dctcmplc. Margaret Cha
ney, Marvin 4 McBain Marie
Corriveau Jack Mccarthy Mabel
Mitchell w Lyle Simpson and
Virginia Wilson
Naturally President + gen O
Lewis VIII of6clatc and all the
banks directors viii attend.