TIME CLOCK

AIR SUBSIDY will soon be ended for Pan American World Airways. Because Pan Am is earning at least 7% return on mail pay and passenger revenues (commercial traffic rose by 25% in 1956), CAB will cut fiscal 1957 subsidy to $2,500,000 from planned $7,663,000, eliminate expected 1958 grant of $5,516,000.

FAST TAX WRITE-OFFS are expected to be stopped soon. Congress and Treasury Secretary Humphrey are lining up behind Senator Byrd's bill to end write-offs except for plants to produce new weapons for which present facilities are unsuitable. Byrd claims Treasury loses billions.

FIRST U.S. TRADE SHOW behind Iron Curtain will unveil low-cost American fashions at Poznan International Fair in Poland this June. To ill-clad satellite housewives, Manhattan's Ohrbach's will display $600 wardrobe for family of four, emphasize synthetic fabrics with prices indicated to underscore U.S. bargains. Polish mannequins will model the styles.

AIRWAY USERS' TAX will be submitted to Congress by Commerce Department, which will probably urge boost in aviation gas tax (now 2-c- per gal.), plus levy on now untaxed jet fuel. It will help finance CAA's six year program for air-lane control by ground radar stations, automatic navigation equipment. New control system will cost $810 million to build, about $430 million a year to operate by 1962.

TRUCK-SALES BOOM for International Harvester is pushing biggest U.S. farm-equipment maker ahead of American Motors Corp. as nation's No. 4 automotive producer. New figures show International's 1956 truck sales jumped two-thirds to $573 million, ranking company just behind front-running truckers Chevrolet and Ford. Trucks now account for 46% of International's business v. 29% for farm equipment.

PAY TV TEST will be ordered by FCC to see if U.S. public will buy it. For limited period non-network stations in some big cities will transmit "scrambled" TV images of music, sports and theater events on special channels that can be picked up by dropping 25-c- to $2 per program into decoder attached to home TV set, or by paying monthly fee to stations. Several systems seek testing.

ITALY'S FIRST SUPERMARKET is doing such a booming business that five new ones will be started in Rome this year. In June Romans will try another U.S. import--Italy's first drivein theater, with space for 560 cars, plus carhop snack service, automatic washing machines to do the laundry while family watches film.

PATH FASHION HOUSE of Paris, which carried on under Widow Genevieve Fath after Jacques Fath died in 1954, is going out of dress business. Once ranked with Dior in sensational creations, House of Fath will sell only such accessories as hosiery, gloves, perfumes.

SPACESHIP PROPULSION will be investigated by North American Aviation Inc. under new $50,000-a-year Air Force contract. Company's Rocketdyne Division will study methods of generating ions, i.e., electrically charged atoms, to provide thrust. Power for ion generator would probably come from small nuclear reactor or solar power plant.

NEW EMPLOYER WEAPON has been okayed by U.S. Supreme Court to combat "whipsaw" strike, in which union strikes one member of employers' bargaining group in effort to break the group. Court ruled that if one company is struck, members of group can legally stage united-front lockouts. Decision strengthens employer associations, which bargain collectively with some 5,500,000 workers.

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