Full Quarter

Never had there been a first quarter like it. In auditoriums and armories across the U.S., shareholders last week heard reports of corporate profits exceeding their fondest dreams. According to early surveys, earnings for the first three months of 1966 rose to an annual rate of above $80 billion before taxes, nearly 10% over last year's record-smashing rate; so far, corporations have paid out about $20.6 billion in dividends. Among last week's shareholder sessions: > A.T.&T. had previously reported a record-breaking earnings pace of $468,684,000 for the three months ending Feb. 28. That rate continued in March and April, said Chairman Frederick R. Kappel at a meeting in Detroit. "Business is booming, earnings are good, and the prospect ahead is for more of the same," said Kappel. However, in response to President Johnson's plea for corporations to combat inflation by cutting back on capital investment, A.T.&T. has reduced its 1966 expansion program by about $200 million. Explained Kappel: "We'll be spending in the neighborhood of $4 billion instead of the $4.2 billion we would have spent if we went all out this year."

>Chrysler reported that sales, at $1.441 billion, and profits, at $62.5 million, both rose to alltime highs during the first quarter. Lynn A. Townsend, 46, who took over the presidency of Chrysler in 1961, when the company was troubled by sagging profits and conflicts of interest among its officers, was now named chief executive officer as well, making him the obvious heir to the throne of Chairman George H. Love, 65, who plans to retire at year's end. Unlike other shareholders' meetings, which were plagued by professional hecklers, Chrysler's was quiet. About the only nuisance motion made was one to establish a wax museum of autoindustry founders.

>U.S. Rubber's big news lay less in its record first-quarter net income of $9,751,656 than in the fact that the company is changing its name. The old handle, according to Chairman-President George R. Vila, was just too confining for an internationalized company that has expanded into the fields of chemicals, plastics, textiles and fibers. Therefore, U.S. Rubber is now known as Uniroyal, Inc.

>Weyerhaeuser Co., announcing first-quarter earnings of $17,005,000, named George H. Weyerhaeuser, 39, as president and chief executive officer, succeeding Norton Clapp, 60, who moves up to chairman. Weyerhaeuser, a great-grandson of the founder of the huge forest-products firm, made news at age 9, when he was kidnaped for $200,000 ransom. He was released after seven days, three kidnapers were caught, and most of the money was recovered.

>Curtis Publishing Co., which suffered a 1965 net loss of $3.5 million, edged into the black, with first-quarter profits of $251,000, and President John M. Clifford embarked on a corporate talent hunt. Said Clifford: "We intend to attract and hire new people with demonstrated ability who can add depth to our management."

>CBS profits soared to $14.9 million from $11.6 million during the same period last year. Asked if he planned any new acquisitions. Chairman William S. Paley said that the only thing in the works is the previously announced purchase of Creative Playthings, Inc., which is to be completed in June. Paley also weathered complaints from a woman shareholder about "profanity--'hell' and 'damn' all the time" on CBS television shows.

>Reynolds Metals announced profits of $14.5 million, up 40% from last year's first quarter, leading Chairman R. S. Reynolds Jr, to revise upward predictions of a 10% increase in aluminum-industry business during 1966. As if to underline Reynolds' new thoughts. Alcoa reported profits of $24.5 million, up 46% from last year's $16.6 million and Kaiser Aluminum announced net income up 43% to $11 million.

>Dow Jones & Co., plainly profiting from reporting other record profits, said that its own earnings would come to about $3.8 million, up sharply from last year's first-quarter figure of $1.9 million. To take advantage of lower capital-gains taxes and to settle "a very large obligation on the part of the company," Bernard Kilgore, 57, who retired last month after 21 years as president and is now the nonsalaried chairman, asked for a lump sum of $3.5 million in lieu of the pension from his 1946 contract. That had provided for annual payments for life equaling net earnings on 150-000 shares of stock, or some $300,000 a year at current rates. Stockholders looked at the first-quarter figures and happily voted approval.

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