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A few businessmen, among them Chairman Avery C. Adams of Jones & Laughlin Steel Corp., reckoned on increased spending because of the new depreciation allowances. But most companies chose to wait until their accountants calculated just how the new rates would affect them. The prevailing attitude was that of Chairman George S. Dively of Cleveland's Harris-Intertype Corp., who said that even though the reforms "will tend to encourage capital spending, there will be nothing big overnight."
Certainly, textile makers have taken little advantage yet of the write-off they were allowed last fall. After all, a businessman's capital-spending plans finally depend on the demand for his products, and with the nation's industrial plants operating at an average of only 85% of capacity, many U.S. corporations are hesitant about plunging into any big new expansions.