Time Clock, Jun. 8, 1959

DOW-JONES AVERAGE will add four companies (Anaconda, Swift, Owens-Illinois Glass, and Alcoa) to industrial index, drop four (American Smelting & Refining, Corn Products, National Steel, and National Distillers & Chemical) to broaden number of industries represented among 30 stocks that comprise list.

CORPORATE PENSION FUNDS rose $2.8 billion last year to record $22.1 billion. Companies added $1.2 billion in common stocks to portfolios, raised amount of funds in common stocks to 39%, v. 30% in 1957.

RENEGOTIATION ACT giving government right to recapture excess profits from defense contractors was extended four years by House, is virtually certain of Senate approval. U.S. now nets about $100 million a year from renegotiations which will be softened slightly under new law.

TAX RELIEF for shareholders getting stock under antitrust divestiture decrees will be favorably considered by Justice and Treasury Departments in hope of speeding settlement of Du Pont-G.M. case (TIME, June 27, 1957 et seq.), aiding in overall antitrust enforcement. But Treasury and Justice oppose as too liberal bill to free Du Pont stockholders from paying regular income tax on G.M. stock when they receive it, require only payment of lower capital gains tax rate when G.M. stock is sold.

U.S. DEBT LIMIT boost of $7 billion will soon be requested by Treasury Department to make up for current budget deficit and lag in corporate tax receipts next fall. It will ask that $288 billion temporary debt ceiling be raised to $295 billion, but hopes budget will balance in 1960.

RED-TRADE POLICY is being stiffened by Commerce Department, which approved only $6,626,960 of $21.8 million in applications for Soviet-bloc exports during first quarter this year v. $10,213,000 in last quarter of 1958 out of $16 million in applications. Among items banned: polyethylene, carbon-welded pipeline, stainless steel.