TIME CLOCK

AUTO SALES have dipped sharply in May despite predictions of a warm-weather pickup, but production still shows no signs of slowing down. New-car sales for the first ten days totaled only 140,000 units, down 11% from April and 20% below 1953. Dealer stocks of unsold new cars have now reached 660,000 units, almost 50% higher than a year ago.

CIGARETTE SMOKING is still dropping, and tobacco men have cut production to keep level with sales. The Bureau of Internal Revenue, which uses its tax on manufacturers' shipments as a rough guide, reports that first-quarter production was down 10% (to 96.6 billion cigarettes) and consumption down 11% (to 87.9 billion) from 1953.

FOREIGN BUTTER PRODUCERS are up in arms against Agriculture Secretary Benson's plan to sell surplus U.S butter overseas at low prices (42-c- to 47-c- a lb., v. about 58-c- in the U.S.). Both New Zealand and Australia, which export about 500 million Ibs. of butter annually, have protested to the State Department that Benson's cut-rate prices constitute dumping. But Benson still plans to go ahead; in fact, he is adding surplus corn, barley, oats and rye to his cut-rate foreign offerings.

CONVAIR is hurrying work on a prototype supersonic heavy bomber, the B-58, which will look something like Convair's F-102 interceptor, have delta wings and much higher speed than Boeing's eight-jet B-52 intercontinental bomber.

DEPLETION ALLOWANCE, which allows oilmen to put away 27 1/2% of their gross oil and gas income tax-free (up to 50% of their net), will be continued as is. The Senate Finance Committee voted down a plan to chop the allowance to 15%.

BORG-WARNER'S Norge Division, fifth biggest appliance maker (1953 sales: $44.5 million), had a phenomenal 29 % jump in sales in the first four months of 1954, is now looking for a total 50% increase by year's end. Norge's prize product, its automatic washer, is up 40% (v. a 10% jump for the industry); and a newly designed refrigerator has zoomed 186.4% over 1953.

RUSSIAN-BRITISH TRADE has taken a big jump. After nine months of negotiations and numerous trips to Moscow, a group of British machine makers have landed the biggest single order placed in Britain by the Reds since World War II. Products: wool and cotton textile machinery. Price: $20 million. Final delivery: 1956.

STOCK-MARKET TRADING is relatively light compared to 1928 despite the market's spectacular rise. Wall Street's 2,000,000-share daily volume is close to what it was in 1928, but U.S companies now have four times as much stock (3 billion shares) outstanding, of which only 1% is traded in a month's time, v. 11 % at the peak of the 1928 market.

GILLETTE'S TONI division, which started the home-permanent fad, is expanding into cosmetics. First product will be a smear-proof lipstick called "Viv," which Toni will launch with a $5,000,000 ad campaign. Other products to follow: cleansing cream and hand lotion.

SOCIAL SECURITY may not be far off. The House Ways & Means Committee voted to extend compulsory coverage to self-employed professional people, farmers, state and local government employees, etc., thus bring all but about 2,600,000 migrant farm workers, the armed forces and civil-service workers under the social security system.

TITANIUM, now reserved almost exclusively for military use, will soon be coming more freely into the civilian market. The Government has just authorized titanium mills to set aside 10% of their monthly production for civilian manufacturers so that the industry can explore peacetime markets for the light, tough wonder metal.

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