Time Clock, Jan. 4, 1960

AIR FORCE STRETCH-OUT will trim deliveries of Boeing KC-135 air tankers and Convair B58 bombers. Air Force will buy only 66 tankers this fiscal year instead of 96 ordered, and only 20 B-58s instead of 32.

RAIL DIVERSIFICATION into water transport, hitherto denied by the ICC, is sought by Illinois Central and Southern Pacific. The two roads have petitioned the ICC to okay their $9,000,000 purchase of the John I. Hay barge company. ICC will approve the deal, pave the way for other roads to move into competing lines of transport.

POULTRY SALES are down as much as 75% in some areas as a result of FDA's program to withdraw capons injected with stilbestrol, a suspected cancer-producing hormone, from the market. The American Poultry and Hatchery Federation complained that the announcement caused many consumers to stop buying all chickens.

RED TRADE DEAL with Italy is expected to bring $60 million trade increase between two nations in 1960. New $200 million trade agreement calls for Italy to import such raw materials as lumber, coal, petroleum products and basic chemicals. Russia will import machinery, steel products and artificial fibers.

COMPANY EXPENSE-ACCOUNT deductions will get closer check in 1960 returns by the Internal Revenue Service. The new "get tough" policy will force corporations to give detailed information on business expenses that Internal Revenue now passes under classification of "ordinary and necessary."

PENSION-PLAN COSTS will rise sharply in 1960. Prime reason is the 20% rise in Social Security taxes, a boost that will be shared by both employers and employees. Higher costs for increased benefits under private pension programs will be carried mostly by management.