Time Clock, Sep. 1, 1958

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AUTO SLOWDOWN is hitting Detroit just as 1959 production starts. Some 5,600 United Auto Workers left jobs in five plants last week in worst labor trouble since industry's contracts expired three months ago. Companies figure U.A.W. President Walter Reuther is flexing his muscles, expect more brief strikes.

HIGHWAY BILLBOARDS will be limited on new 41,000-mile U.S. highway network, if Commerce Secretary Weeks has his way. Weeks wants signs restricted to 60 sq. ft., wants them located within twelve miles of advertiser's business, which rules out most brand-name ads. States that accept limitations will get extra .5% subsidy for highway costs.

FIRE LOSSES in U.S. are running more than 5% above last year's $1 billion record, are getting to be major problem for insurance companies. Property values and construction totals are both going up, which means heavier claims.

SEARS, ROEBUCK will go into health and accident insurance. Fast-growing Allstate Insurance Co. will start selling policies in Southwest this week, will offer them nationwide by October 1959.

HOWARD HUGHES will sell his 10.2% interest in Atlas Corp. (market value: about $7,700,000) by May 31, 1961, until then will deposit stock with neutral trust or bank. CAB forced sale because Hughes owns 78.2% of Trans World Airlines and Atlas controls Northeast Airlines, thus giving him the opportunity to control two airlines.

AIR-CONDITIONER PRICES will go up about 10% for home units of 1-, 1½- and 2-ton capacity. Reason: 10% federal excise tax, which now applies only to units of less than 1 ton, will soon be broadened to cover all window units.

RENEGOTIATION ACT, which is opposed by many defense contractors (TIME, July 14), has been extended for six months. U.S. Senate knocked out clause permitting appeals from final Tax Court rulings, but pressure from industry is so strong that the bill stands good chance of being liberalized next year.