SOIL BANK plan to cut surplus in six basic crops (corn, cotton, wheat, tobacco, rice, peanuts) is off to slow start. Agriculture Department reports that farmers have signed up to take only 2,000,000 acres out of production at cost to Government of $37 million for this year's bank. Goal for next year is 8 million to 15 million acres in bank, with long-term target of 25 million acres annually.

RENEGOTIATION LAW on defense contracts will be extended for two years and liberalized to help small contractors. House has passed and Senate is expected to approve new version of law, which will increase (from $500,000 to $1,000,000) amount of Government business contractors can do before profits are subject to renegotiation. Law also doubles (from one to two years) period in which company losses can be carried forward to offset their profits.

BRITISH COMET JETLINERS have been ordered by Capital Airlines, which is doing well with British Vickers Viscount turboprops. Capital will pay $53 million for 14 de Havilland Comet IVs, bigger (74 seats), faster (545 m.p.h.) versions of ill-fated Comet I. Main reason for Capital's move: U.S. jets will be too big, too costly to operate along Capital's medium-range airline routes. Planned delivery date: 1959.

FORD CONTINENTAL SALES have eased to point where operations will be consolidated with Lincoln Division. Though Continental aims to hit 2,500-car target this year, company has decided to cut costs by combining all nonmanufacturing operations with Lincoln, and give Continental Boss William C. Ford a new job.

GENERAL SHOE CORP., one of biggest U.S. shoemakers (1955 sales: $167.9 million), will follow diversification trend by moving into the women's specialty store and jewelry business. For around $10 million cash, General Shoe bought 65% control of Hoving Corp. (1955 sales: $31.6 million), operators of Manhattan's Tiffany jewelry store and Bonwit Teller department-store chain. Hoving President Walter Hoving will stay on, plans no management changes.

MORE POWER PARTNERSHIP is in store for Northwest. Pacific Power & Light Co. has signed deal with Washington State's Cowlitz County Public Utility District to develop Upper Lewis River in $56.7 million project to produce 256,500 kw. by 1958. Pacific Power & Light will build and own main dam and powerhouse producing 189,000 kw., while PUD will spend $15 million on smaller, 67,500-kw. downstream powerhouse, get 26% of overall power produced.

MYSTERIOUS CAPITAL from abroad, possibly from Iron Curtain nations, is worrying SEC Chairman J. Sinclair Armstrong. Large amounts of foreign funds are coming into U.S. from Swiss and Canadian banks, which keep sources secret (accounts are known only by number). Possibility that Iron Curtain investors might try to gain secret control of vital U.S. corporations, says Armstrong, "is a matter of great concern to us."

ITALIAN MOTORSCOOTERS are making big push into U.S. markets. Two biggest sellers, Lambretta and Vespa, expect to sell 32,500 scooters (around $350-$400) in U.S. this year.

FIRST JET TANKER in $250 million U.S. Air Force program has rolled off Boeing production line at Renton, Wash., just 21 months after initial contract. At same time, Boeing finished 888th and last piston-engined KC-97 tanker for Air Force, thus ending 40 years of piston-engined plane production.

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