Business: Time Clock, Jul. 15, 1957

ATOMIC INSURANCE backed by Government will be approved by Congress, provide up to $500 million worth of liability coverage for nuclear power developers. It will supplement $65 million coverage offered by private insurance pools, which atom developers complained was too small. House passed bill providing U.S. liability coverage at low rate of $30 a year per 1,000 kw. and requiring all plants of 100,000 kw. to carry maximum available private insurance.

LONDON’S TALLEST BUILDING, a $12 million, 34-story, 700-room luxury hotel, is planned by Conrad N. Hilton and British Millionaire Charles Clore. Towering 380 ft. over Hyde Park, 14 ft. higher than St. Paul’s Cathedral, building would be taller than city’s conservative codes now allow, but is expected to win official approval because of hotel shortage.

PAPER-INDUSTRY MERGERS face rough ride from U.S. trustbusters, who are weighing antimerger complaints against Crown Zellerbach Corp. and Scott Paper Co. In significant first victory, FTC got world’s biggest papermaker, International Paper Co., to sign consent decree agreeing not to acquire interest in any competitor for next decade. International also promised to sell its 12% stock holdings in Longview Fiber Co., a top West Coast papermaker.

AUSTRIAN DOLLAR bonds, which have paid no interest since 1939, will be either exchanged for new interest-paying bonds or redeemed, and U.S. investors’ claims may approach $200 million. Joint U.S.-Austrian validation board will be set up in Manhattan to establish which bonds are eligible.

U.S. COTTON SURPLUS will be eliminated in two or three years if Government continues expensive export subsidies. Record exports of about 7,200,000 bales have already helped trim surplus from 12.9 million bales in May 1956 to 5,500,000.

EASTERN AIR LINES will get first nonstop U.S. flag route from New York and Washington to Mexico City, worth $21 million yearly in ticket sales. CAB will take unusual step of revoking its examiner’s suggestion that route go to Pan American World Airways.

MAIL-ORDER PRICES in this fall’s Sears, Roebuck catalogue will be 1% below last season’s, a reversal of inflationary trend. Montgomery Ward prices for automatic washers, dryers will drop 4% to 12% below current level.

CEMENT SHORTAGE is stalling construction jobs in Northeast, South and Midwest. Two-week-old strike by 12,000 members of United Cement, Lime & Gypsum Workers union has cut U.S. cement output by one-third.

TURBOPROP PLANES for businessmen will be built by Grumman Aircraft, which is resuming commercial plane output for first time since 1950. New twelve-passenger plane, powered by two Rolls-Royce Dart turboprops, will have top speed of 370 m.p.h. and range of 2,200 miles. Production starts next May.

GAS TURBINE ENGINE is shaping up as most efficient power plant for future small-and medium-sized ships, with atom power limited to larger vessels. World’s first ship powered solely by gas turbine, a reconditioned ten-knot U.S. Liberty, has run 20,000 trial miles without hitch, averaging about 14.8 knots with lower maintenance costs, less vibration than original steam engine.