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Southern Illinoisan (Newspaper) - January 22, 1974, Carbondale, Illinois 010175 PUBLICATION OFFICE 710 N Illinoii Murphysboro 1113 Walnut Herrin 212 N 16th Volume a Copy Southern Illinoisan 73 SECATU3 ILL 62525 Two Sections Pa Htrrln Billy Jwirnil Murphxiboro Imlipendtnt TUESDAY JANUARY 221974 Consumer prices jump sharply IWIOQ tSStr s 131 How living costs rose Washington AP With fuel prices leading the way consumer prices jumped sharply in December and closed out 1973 with the worst inflation record in 27 years the govern ment reported today The Bureau of Labor Statistics said the Consumer Price Index rose by fivetenths of one per cent last month seasonally adjusted Although the rise was less than the eighttenths of one per cent increase in each of the previous two months it was still high by normal standards Unadjusted the increase was seventenths of one per cent matching Novembers rise Decembers increased pushed consumer prices up 88 per cent for the year the largest annual increase since the removal of World War II price controls With prices rising faster than income the bureau reported that real spendable earnings weekly aftertaxes pay stripped of the effects of inflation fell onetenth of one per cent in December the third consecutive monthly decline Over the past year real spendable earnings declined three per cent with about half of the drop caused by inflation and half by tax increases The governments index of consumer prices rose in December to 1385 meaning that it cost to buy a variety of goods that cost in 1967 the base period The government said higher prices for energy products gasoline heating oil electricity natural gas and coal ac counted for more than a third of the increase in Decembers prices and reflected the effects of the Arab oil embargo Food and mortgage interest costs also contributed significantly to the rise fee bureau said but the increases were moderated somewhat by price declines on some food items used cars and property taxes Food prices rose threetenths of one per cent last month seasonally adjusted and were up ninetenths of one per cent unadjusted Commodities other than food rose seventenths of one per cent matching Novembers ad justed rise and sixtenths of one per cent unadjusted Services were up sixtenths of one per cent the same as in November but less than the 11 per cent jump in October The 88 per cent jump in con sumer prices last year com pared with the increase of 34 per cent in 1972 The Nixon ad ministration early this iar had hoped to hold inflation to under three per cent in 1974 but abandoned its forecast as food prices soared last spring The forecast for this year is for more of the same sharp in flation as in 1973 Leaders to force energy bill vote Washington AP Oil executives told Senate in vestigators today there is no bonanza in profits whatsoever The statement by Harry Bridges presi dent of Shell came in response to questions from Sen Abraham Ribicoff DCorn as the Senate i nvestigations subcommittee opened a second day of hearings claimed that in 1971 Texaco paid into the energy crisis j worldwide taxes amounting to 51 Ribicoff also asked the panel per cent of net income of executives from the seven Meanwhile Senate leaders leading oil companies how theymade to a vote on No bonanza in profifs oil executives testify at Senate subcommittee could possibly justify preferential tax treatment which he said allowed Texaco to pay federal taxes last year at a rate of 17 per cent Annon M Card senior vice president of Texaco replied that Ribicoff was looking at only a portion of the tax picture and emergency energy legislation stalled by a controversy excess profits LCS5 LALViiw Senate leaders said Monday running more than 5 per cent th would Ltoly file today or above last years levels Wednesday a cloture petition to cut off an anticipated filibuster by Republicans and Senators from oilproducing states Area meatcutters accept new pact Southern Illinois meatcutters voted unanimously last week to accept a new contract with area chain ficial food stores said today a union of However the federal Cost of Living Council must approve the pact because the wage boost in the contract exceeds 55 per cent said Robert de Rousse president of District 99 of the Amalgamated Meatcutters and Butcher Workmen of North Am merica Union headquarters are in Johnston City If approved at the federal lev el the contract would replace one that expired Jan 5 Con ditions of the contract would be retroactive to that date de Rousse said Negotiators reached agree ment on the new contract Jan 8 after about a month of negotia tions About 90 workers from Centralia south with some in Missouri are covered by the contract De Rousse said the contract is for 15 months but he declin ed to reveal other details of the pact pending federal ap proval He said Cost of Living Council action could take from three to six weeks Workers covered by the new contract are employed at Krog er A P National and Tri City supermarkets Journeyman meatcutters now make for a 40hour week Head meatcutters make the same rate but art also paid on the Meat week basis of volume clerks make 1 ZD Bonner president of Gulf Oil responded that the matter of profits is greatly misun derstood arguing that his company needed a rate of return of 12 to 15 per cent in order to have adequate incentive to ex plore for1 new sources of oil Figures presented to a House subcommittee last week showed Sen Henry M Jackson D that profits of the top five oil Wash chairman of the Senatej companies were 486 per cent permanent investigations subj higher in the first nine months committee Monday asked j of 1973 than the same penod in 1972 The oil executives told subcommittee that despite the recent high profit levels oil industry profits were no higher than other industries measured over a fiveyear period The question of oil industry profits is said to be the chief in the way of passage normal weather and public conj of the emergency energy bill servation efforts Harry j that would give President Nixon representatives of the seven leading oil firms how shortages over could exist when their own figures show fuel inventories Members of the panel of oil executives pointed out that shortages also occurred last year and attributed this years increased levels to warmer than Chance of rain tonight with lows in the upper 30s or lower 40s Wednesday cloudy with rain gradually ending A little colder with highs in the 40s INDEX Classified Comics TV Bridge Crossword 15 Editorials 4 Family living Records 1314 Sports 91 Weather details map 14 Youth 5 Sen Jackson uses newspaper to emphasize point at energy hearing Sadat calls for Arab oil policy changes Bridges President of Shell predicted acute shortfalls in the next few months in all pro ducts Citing the record profits reported by many oil companies last year Sen James B Allen DAla said It would seem ac tually that the oil companies never had it so good authority to order gasoline ra tioning and enforce energy con servation measures that are now voluntary Meanwhile President Nixon told federal officials to see to it that oil companies report ac curately about the energy shortage Gas prices climb Washington AP Retail gasoline prices rose an average of 44 per cent in December the Bureau of Labor Statistics reported today The average price for regular grade gasoline jumped 46 per cent to 437 cents per gallon in December while average ranged from 26 per cent in Honolulu where the price was higher than in any of the na tions other 22 metropolitan areas to 67 per cent in premium cent to prices rose 473 cents 41 at per the neighborhood pump The government said price increases of regular gasoline Philadelphia The rise in premium prices was somewhat smaller than for regular gasoline in most cities with the increases ranging from 27 per cent Honolulu to Atlanta in Cleveland and 59 per cent in Vienna will get women prisoners Chicago AP Dwight Correction Center is being changed from a reformatory for women to a security facility for about 250 male offenders it was an nounced today Allyn R Sielaff director of Illinois Department of Correc tions told a news conference that the change is part of a continuing reorganization of the I states prison system to j separate hardened criminals from light offenders He said 60 women prisoners all from central and Southern I Rlinois will be transferred from I Dwight to the Vienna Correc j tional Center a minimum security facility for men in Johnson County A special building will house the women several hundred yards from the mens residence halls There will be careful supervision of the womens quarters which will be locked at night said Sielaff Both men and women will be at the Vienna Center for the first time since it opened in 1965 Some 40 other women will be moved from Dwight to the womens division in Chicago a maximum security facility and the remaining 25 women will go to a new work release center for women being established in a former Chicago rooming house By the Associated Press President Anwar Sadat of Egypt said today the United States has changed its Mideast policy and added that the Arabs who have cut off oil to the UnitedStates should reciprocate with a change in their policy Meanwhile in Washington Secretary of State Henry A Kis singer said today he expects the Arab oil embargo against I the United States to be lifted before EgyptianIsraeli military disengagement is completed along the Suez canal Sadats statement at an Algiers news conference ap peared to confirm speculation that he was trying to persuade Arab oil producers to ease the embargo However reports in Arab newspapers indicated the major Arab oil producers such as Saudi Arabia and Kuwait are not budging on the embargo as a result of the separation of Egyptian and Israeli armies Sadat did not indicate what Arab leaders have said to him about the embargo during his current tour of Arab countries to explain why he agreed to the disengagement I can now sincerely say that the United States has adopted a new policy that there is a significant though not total change Sadat told newsmen in Algiers Asked if he thought the Arabs should mofidy the ban on oil States Sadat said For every change to the American position it is necessary for the Arabs to make an identical change toward the United States King Faisal of Saudi Arabia monarch of the Mideasts largest oil producing country still insists Israel must withdraw from all Arab lands occupied to the 1967 war before any peace settlement can be reached according to the Beirut Lebanon newspaper An Nahar In another development a Tripoli newspaper said the Scviet Union is withholding arms from Syria to pressure the the Sinai desert does not con stitute a permanent border for time of peace and the govern ment is prepared to negotiate file return of more territory for a permanent settlement to the Middle East crisis Mrs Meier Defending her governments decision to sign the disengage ment agreement Mrs Meir disclosed there were 1075 shooting incidents on the Suez front since the United Nations ceasefire Oct 25 She said the only alternative to disengagement pact was the renewal of war Our military strategic posi tion along the new line on the Egyptian front will be firm she declared adding that the frontline troops will be prepared for sny eventuality and ready to meet any viola tion of the ceasefire She said her government Israel In Jerusalem premier Golda Meir of Israel said in a major policy statement to Parliament that the military disengagement agreement with Egypt should lead to reopening of the Suez Canal It should also end Egyptian naval blockades of Israeli ship ping Mrs Meir said Israels new ceasefire line in of Egypt will stick to the terms of the agreement She noted both sides defined the oast as a first step toward a final just and durable peace The Israeli state radio reported earlier that Israel will begin withdrawing its troops along the canal on Friday It said those on the west bank around the city of Suez will be the first to move Jaworski asks for permission to give IRS Watergate data Washington AP Special prosecutor Leon Jaworski asked federal court today for permission to give the Internal Revenue Service evidence from the third Watergate grand jury Last November Jaworski was granted permission to give the IRS evidence from the first two Watergate grand juries The third panel was sworn in on Jan 7 In a motion filed in US District Court Jaworski said IRS agents are now aiding the special prosecutor in analyzing the often complex financial transactions involved in illegal campaign contributions In addition the grand jurys investigation will include at tempts to trace numerous payments possibly part of illicit ventures through various foreign and domestic corporations committees and in dividuals Jaworski noted that criminal tax violations would fall within the jurisdiction of the grand jury The special prosecutor also asked a federal court in Min neapolis to deny a motion from attorneys for Dwayne 0 An dreas to dismiss charges alleg ing Andreas made illegal con tributions to the 1968 Democratic presidential cam paign Ford President not involved Washington AP Vice President Gerald R Ford said today that President Nixon has told him he was not involved in the erasure of an 18minute segment of a subpoenaed White House tape Retailers encounter frustrations in ordering supplies W 3 T 11 By Joanne Wood Of The Southern Illinoisan As if the energy crisis were not enough to worry Southern Illinois store owners several other shortages are complicat ing the picture Henry Nicolaides Carbon dale commercial photograph er gave this other problem a name the capital or eco nomic crisis tying it to a world economic crisis which comes to retailers in the form of higher prices improper shipments and hardtog e t items that have nothing to do with the countrys petrol eum crisis Nicolaides for instance finds the wood shortage af fects his costs for wood frames Our costs are up from 10 to 30 per cent and the supplier tells me that I must order farther ahead of time to keep my inventory up Glen Lang owner of Chris topher Bikeland tells a story of his suppliers 50000 bike order from Japan These tenspeed bikes all unassembled were unloaded on the San Francisco dock workmen began to put the bikes together and found that one part of every one of those 50000 bikes had been omitted from the shipment It took three months to get those single parts shipped to this country so the bikes could be assembled and sent on to dealers Lang who says he has enough spare parts to last for a while added another sad note Suppliers tell me that brake wires seats han dle grips pedals and tires are hard to get and that I can expect a 25 per cent cut in my regular orders for those items Jack Blades of Blades Bak ery in West Frankfort finds prices up on ingredients uses although they are still plentiful Its the cardboard boxes and paper sacks that are get ting scarce Told by a salesman last week that his employer is short of those products Blades hopes to keep his in ventory high Ive got some on hand in a storeroom just to hedge against the day I dont have enough Maybe a lot of us are doing that and thats why supplies are so short he said laugh ing That may not be the whole reason but Blades is right to suggast that people can cause products to be in short supply And about those high prices of hisbakery ingredients Blades said that flour had gone up 60 cents per one hun dred pounds and sugar also has risen in Like Blades who says he is trying to offer his custom ers a good product without raising his prices too much Phylis Butler of Marion and Clara Tadlock of West Frank fort are caught in the same bind of higher costs The women own Lacy Flor ists in both towns and are now on a buying trip to St Louis Mo Evelyn McClellan sales woman at the West Frankfort shop said that aw go ing up on everyone of their supplies and flowers Ribbon wire erything we use and of course the flowers are higher in price she said Even banks have problems with the paper shortage Charles L Johnson of City National Bank Murphysboro said he had a problem with paper supplies recently that had him to a panic for a short time Im in charge of ordering all of the business paper items and when it was time to do so I was told that we might not get that order very soon Luckily the order came quickly and the crisis was averted But Johnson is send ing his orders in sooner now Gertrude Hughey ofAnnas Fabric Shop said that last springs floods in the south and the subsequent crop short age plus and present world wide craze for cotton denim goods has made shipment to fabric stores short and high priced And Ron Leske owner of Main Street Barber Shop in Anna has cotton problems of a different sort Weve had notice from the linen towel companies that cotton is Short and to conserve on their use he said I have plenty stored to a back room right now though Mary Warren whose hus band owns P R Floor Main tenance in Carterville said he had been warned that brushes an important factor in his cleaning business are in short supply His last order from a sup plier in St Louis was a longer time coming so I suppose the manufacturer is having problems too she said Its all the fault of the computer said Troy E Doty owner of Dotys Plumbing and Heating Benton I used to call the manu facturer about a shipment and get an answer within the hour Now with a computer in charge of shipping calls I have to wait three or four days before I know whether Im going to get what I need He explained that it was difficult to bid on jobs since the costs of fixtures are con stantly going up And I called a supplier about a therapy tub for a nearby hospital and was told it would be almost four months before delivery could be made It used to be 45 days at the most on that sort of item Another dealer in the area who finds some items hard to get is E H Smith boat dealer for 29 years to Jones boro Cham saws are a big item in this area but I was sold out before Christmas and my reorders are just now coming through he said Aluminum boats Ive or dered are supposed to come but the first of January the price increased five per cent and there will be a 13 per cent increase in the price this winter he said And I just got a letter telling me that the price of outboard motors would increase almost seven per cent
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