Monday, May. 07, 1956

INSURANCE ADS for accident and health policies will be checked for accuracy by the Federal Trade Commission. After a two-year investigation of false and misleading ads, which resulted in charges against 41 companies, FTC has decided that it has the power to regulate the advertising claims of all health and accident insurance firms in interstate commerce.

FILTER-TIP SALES are puffing ahead at such a rate that R. J. Reynolds Tobacco Co. (Camels, Winstons) will bring out "Salems," a king-sized filter-tip with mentholated tobacco.

EXPORTS TO EUROPE are at the highest level in history, says the U.S. Commerce Department. March exports of $1.5 billion, some $200 million more than March 1955, set alltime high for the month, and forecast is for total exports of $16 billion for 1956, up $1 billion above last year's record.

BUSINESS ADVISERS who serve the Government without compensation (the WOCs), were condemned by a House Judiciary Subcommittee. Democratic subcommittee majority charges that Weeks has allowed WOCs to turn his department into "an effective spokesman for special interests." Republican members on the subcommittee called the report "a low blow at patriotic businessmen."

WESTINGHOUSE LOSS during its strike-bound first quarter was $18.6 million v. a profit of $12.8 million in the first three months of 1955. Sales slumped nearly 40% to $225.4 million. However, Westinghouse declared a 50-c- common stock dividend for the quarter.

UNION VICTORIES have been won in two important cases before the U.S. Supreme Court. In one, the court ruled that employers may not refuse to bargain with a union whose officers refuse to comply with the Taft-Hartley law's non-Communist affidavit. In the other, the court refused to rule on a lower-court decision that company stock purchase plans are subject to collective bargaining, thus in effect upheld the decision.

GLOBAL FLIGHTS are growing so fast (12,768 passengers in 1955 v. 444 in 1950) that the Civil Aeronautics Board wants more competition for Pan American, now the only U.S. flying round-the-world line. A CAB examiner recommended that Trans World Airlines get a link into Manila, where it can connect up with Northwest Airlines to form a global run.

SULPHUR HUNTERS Lawrence, William and Ashton Brady, who discovered the huge deposits under Mexico's Isthmus of Tehauntepec (TIME, Feb. 21, 1955), are selling their biggest mine in the area for some $16 million. Buyer: Manhattan Investment Bankers Bear, Stearns & Co. and Houston's Hudson Engineering Co.

TRADE WITH REDS will be increased under a new Government program to promote "the exchange of peaceful goods throughout the world." Instead of requiring special licenses for all goods, strategic or not, the U.S. will allow exporters to ship 700 kinds of nonstrategic goods in 57 commodity groups without permission.

TWO HUGE POWER PLANTS, the biggest coal-fueled generating units ever built, will be built for American Gas & Electric system by General Electric. The company has earmarked $110 million for the two units, to be located in the Midwest. Each one can supply electricity for a city of 4,000,000.

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