Time Clock, may 6, 1957

OIL IMPORTS will soon be curbed voluntarily by oil companies, Government believes. After trying unsuccessfully for two years to hold down imports (now running 510,000 bbl. a day more than Government wants as limit), Office of Defense Mobilization is conferring with top oilmen, is confident they will bow to President Eisenhower's implied threat to impose Government controls, tariffs on imports.

LOOSER MORTGAGE MARKET is in sight, and home loans will be easier to get in months to come, say Manhattan bankers. Reasons: demand for other types of credit is slackening, and higher interest rates are boosting savings, making more money available.

MILITARY SPENDING for fiscal 1957 will run $2 billion more than Administration estimated in January, soaring to $38 billion. Reason: some expensive weapons are being developed, delivered faster than expected, notably missiles.

FIRST MEXICO AIR ROUTE for U.S. line nonstop from New York and Washington to Mexico City is expected to go to Pan American World Airways. CAB is almost certain to accept its examiner's recommendation against Eastern Air Lines and American Airlines for route worth $10 million in ticket sales yearly. Nonstop trip now is made only by Air France.

U.S. SMALL BUSINESS LOANS will be available for first time since Feb. 1, when Small Business Administration ran short of funds for everything except most urgent disaster borrowing. Congress has allocated $45 million in stopgap funds until new fiscal year begins July 1, and SB A is ready to lend $26 million to 475 small firms with backlogged applications.

HEALTH-INSURANCE RATES will rise in next year. Hospital rates jumped 10% to 12% in U.S. last year, are expected to go up about 6% annually for next five-six years. New York Blue Cross which had deficit in 1956 and expects another in 1957, will ask state authorities for first boost since 1942.

WORLD'S FASTEST PLANE, rocket-propelled X-15, with potential speed of 3,500 to 4,000 m.p.h., is being built at North American Aviation's Los Angeles plant. For it New Jersey's Reaction Motors is developing rocket engine with greater thrust than that of Bell X-2 plane that flew to 126,000 ft. and 1,900 m.p.h.

CASTOR-OIL SHORTAGE is coming. World demand for next four years will be 565 million Ibs., supply 540 million Ibs., says Department of Commerce. Pinch will hurt U.S. industries using castor oil, e.g., makers of grease, drugs, soap, lubricants for jet planes, plastics, nylon bristle.

TRANS AMERICAN AIRLINES, biggest U.S. nonscheduled carrier (TIME, April 1), will go out of business June 5. U.S. Supreme Court refused to overturn CAB order revoking line's charter because it operated virtually as scheduled line without a franchise to do so.

RAIL-AIR RACE for lead in passenger travel revenue will likely be won by airlines this year for the first time. New ICC figures show air revenue passenger-miles in 1956 went up 12.3% while rails' dropped 1.7%, with airlines reaching 22.3 billion miles v. 23.3 billion for rails.