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Southern Illinoisan (Newspaper) - February 1, 1974, Carbondale, Illinois 010175 PUBLICATION OFFICE Carbondale Murphysboro Herein 710 N Illinois 1113 Walnut 212 N Uth Southern Illinoisan NEWSPAPERS BOX 789 ILL 62525 Volume Copy Two Sections 20 Pager Unemployment Ptf CM el Wtrt hrct SessnuoJIv iff 7J 83 52 1973 1974 Sunn Dift il llkr HieccijortoCarbiHiUaK frea Htrrlir Dilly Jenrnil Mupphysboro IndpondtnJ FRIDAY FEBRUARY 11974 CarbondaleHerrlnMurphysbwc 174 outlook Rising prices more joblessness By Bill Neikirk AP Americans will be pounded by powerfully rising prices and in creasing joblessness until the economy takes midyear turn for the better President Nixons annual economic report said to day Conceding the economy is caught in the worst inflationary spiral in a generation Nixon urged patience by consumers To correct a powerful trend of the economy which has been going on for some time requires time he said in a message to Congress The grim but somewhat hedged outlook by man Council of his three phased Economic I say out When he didnt Education and also summarized the Presidents billion Advisers a 6 per cent rise in I The lengthy economic report consumer prices in 1974 pared with 88 per cent last year with the economy growing Here are some of the major increases budget 1 million manpower up by wily one per cent for the enj an alltime high billion The fiscal1975 budget includes Income security including tire year The jobless rate will average 55 per cent but will rise to close to 6 per cent in the first half of the year as economic output dips to nearrecession levels the council said Nixon reaffirmed his faith in a free economy and said the outlay for defense The billion budget goes to Congress Monday It contains a billion deficit Defense spending will be up by billion The previous highest figure for defense outlays came during the last years of World War II system of wageprice controls he when spending was around established in 1971 to corral in flation would continue to be billion However the dollar was worth more in those days Social Security and welfare billion up billion Natural resources and en vironment billion up about billion Health billion up billion Veterans benefits and services billion up million Consumers can expect food and fuel prices to rise sharply between now and midyear legislation to improve trade balance will pro insurance be wiped out the report gram to help ease the crisis impact declined to predict how He said he will work the economy would actually the other oilconsuming this year but he said to avoid a worldwide do not expect a Higher energy prices will permitted for recession is usually defined domestic exploration and declining economic output for duction he consecutive quarters We will continue Stein said the ad policy of maximum does not accept this production to help hold food prices he said there could be two The United States will of slight economic JrwliviA Council Chairman Herbert Stein said After the sharp increases in the cost of living have run their course the rise should slow to an annual rate of about 45 per cent in the second half of the year the report said Nixon outlined this strategy for dealing with the nations economic problems partly brought on by the energy crisis The budget will create little stimulus but spending will be increased if necessary should unemployment get too high Taxi itself with higher import bills for decline and the cuts are a possibility Nixon oil in 1974 and as a result what I would not urged Congress to approve was once expected to be a recession consider it Jobless rate leaps By Robert A Dobkin Washington With the fuel shortage tightening its economic grip the nations unemployment rate rose from 48 per cent to 52 per cent in January the biggest monthly increase in four years the government said today The Labor Department blam ed actual or anticipated shortages of gasoline and other petroleum products for a substantial loss of jobs last month in the aviation automobile and recreation in dustries Nearly 370000 workers lost their jobs raising total unemployment in the nation to a seasonally adjusted 47 million This pushed the jobless rate over five per cent for the first time since last May Administration economists predict the job situation will continue to worsen this year due to the fuel situation and general economic downturn The White House Has estimated the rate will climb to about six per cent but a number of private economists believe it could go to seven or eight per cent depen ding on how long the fuel shortage lasts Chairman Herbert Stein of the presidents Council of Economic Advisers said a period of rising unemployment has appeared inescapable for some time especially since the start of the Arab oil embargo We believe that this interval will be brought to an end by a clarification of the oil situation by further conversion to the production of small cars and by improved conditions in mortgage markets Stein said AFLCIO President George Meany said Todays figures showing a major increase in unemployment while inflation rages unchecked and corporate profits soar demonstrate anew the economic mess the nation is in Januarys increase in the jobles rate was the largest since January 1970 when it rose from S5t o 39 per cent The Bureau of Labor Statistics said nonfarm payroll employ ment which grew rapidly last year leveled off in December and then dropped by 260000 last month The bureau said that while the loss of jobs to the fuel shortage was substantial it was unable to give precise figures as to just how many jobs were lost to shortages of fuel and how many were due to the economic slowdown that began even before the Arab oil shutoff heightened the energy crisis pi il Mil 7 I will ifBIT Jll If I W VWif 1 I fil wiV i iiii vii Jl1 it Plugging levee break Work crews of the Army Carps of Engineers continued work Thursday to repair a break in a ring levee around Kaskaskla Island The temporary ring had holding the waters of the Mississippi River back while the engineers repaired the main levee Kaikaskia to tally flooded last sping lost only about 400 acres in the break Tuesday mostly winter wheat AP Wirephoto Truck strike still growing By the Associated Press A US District Court judge issued a temporary restraining order against the head of the Council of Independent Truckers today as a nationwide work stoppage by independent drivers grew Dozens of shooting incidents offers three women pay adjustments Edwardsville AP Southern Illinois University at Edwardsville has offered pay adjustments to three wo men faculty members who complained of sex discrimi nation in salaries SIUE President John S Rendleman disclosed the ad justments Thursday and said others are being considered He would not be more speci fic The women who have not registered complaints with state or federal agencies have asked not to be identified All are instructors in the English department Salary figures published re cently by the school show dif ferences of up to in salaries for men and women teachers of equal rank and experience Await income reports Many welfare checks withheld The Springfield AP Illinois Department of Public Aid says it is withholding the welfare checks of 31000 families who failed to meet re quirements for reporting in come This is in line with our ef forts to assure that benefits are going to eligible families and that ineligible cases are remov ed from the welfare rolls as quickly as possible Director Joel Edelman said Thurs day Edelman said state law re quires that welfare recipients and deadlines were extended twice the director said Edelman said Judge Robert McMillen of US District Court ruled Wednesday that the department could withhold the checks because reasonable steps had been taken to protect the civil rights of recipients Procedures have been set up to release checks as soon as the member of the family reports to the local public aid office he said Persons who did not report because of a language barrier or other misunderstanding will be report income and changes HI assisted b workers at their circumstances that affecttheirj local public aid office and their eligibility for aid He said income reporting cards were sent in November to the 204000 families in the state receiving Aid to Families with DflpendentChildren The families were given 30 days to comply with the request Health care would cost a year maximum By G David Wallace Washington AP The national health insurance plan being readied by President Nixon would guarantee that no one would pay more than a year in medical expenses ac cording to an initial ad ministration estimate For this protection a single wage earner would pay a monthly premium of For most workers with a family the premium might be a month The rates are estimates pro vkled Thursday by Caspar W Weinberger secretary Health Education and Welfare The administration stiu is putting some finishing touches on the proposals for introduction in Congress on Tuesday Weinberger said But attached to the estimates are numerous factors that could affect individualpremiums and total outofpocket health ex penses under the administration program Premiums from plan also could vary Under1 the most recently available administration pro posals most wage earners would have to pick up their first in medical expenses every year For medical expenses over participants would have to pay 25 pei cent of medical bills up to the limit checks will be sent immediate ly Edelman said Officials at the Dept of Pub lic Aids regional office in Mar ion said today they could not release figures for checks with held from persons living in Sou thern Illinois They referred all questions to the Springfield of fice William Detweiler public in 10 to 15 die in fire in Brazil Sao Paulo Brazil AP Afdre swept through the upper 14 floors of a 22story Sao Paulo to interfere 20 states mostly in the East South Appalachia and the Midwest There were scattered reports of parked rigs in California and Arizona Some truckers not joining the stop page traveled in packs spending the night in motels awaiting the arrival of safer daylight hours Two of the three major truck stops m Interstate Effingham where 70 meets Interstate 57 closed their doors early to day Several truck stops in the East St Louis area also closed their doors and pumps and reports of thousands of drivers participating in the pro test against high fuel prices were reported In Tennessee police reported some 15 incidents of shots being fired at trucks One driver suf fered minor injuries Police in Pennsylvania Ken tucky Alabama and Tennessee reported shots being fired at truckers whoAvere ignoring calls for a shutdown In Alabama troopers said a large gasoline tanker was hit by three small caliber bullets but the driver was not hurt They said the tank was punctured and leaked gasoline In Cleveland Ohio US District Court Judge Leroy J f fWJSAWJJQ Contie Jr issued a temporary AKb nations wfll recommend restraining order on behalf of such action themselves at a Feb the National Steel Carriers 14 oil conference in Tripoli Association against George R State police said truck traffic throughout Illinois today is noticeably lighter Robert Jasmon manager of the Midwest Truckers Associa tion which claims to represent 2000 independent firms operating 20000 trucks in Illinois said about half the associations members are participating in the strike Arnie Lober Marion Truck operator of the Plaza said the strike has not affected opera tions at the stop on Interstate 57 except ha business is slow because theyre stopped else where Optimism1dimmed Washington AP Secretary of State Henry A Kissinger says hes quite op timistic that the Arab oil em bargo will soon be lifted Kissinger said he is also con fident several oilproducing Rynn president of the Council of Independent Truckers and others It bars them from interfering with steel carrier association members and bans use of citizen band radios to further what the association called a conspiracy bank building today and many desperate office workers jumped to their deaths A fire captain at the scene estimated that 10 to 15 persons were killed and more than 20 injured A police sergeant said the number of dead might be as high as 35 No official count was available At least 25 persons on the roof of the building owned and oc cupied by the Crefisul Invest ment Bank waved frantically to circling helicopters as towering flames and smoke rose from the floors below Mansfield to respond Washington Senate Democratic Leader Mike Mansfield delivers his partys official response to President Nixons State of the Union speech tonight The suit asked for million damages a day A hearing was set for Feb 7 Reports of drivers joining the shutdown came from more than CLOUDY formation officer for the depart The 50minute program ment in Springfield said that originating from the Montana countybycotmty figures were almost ready but could not be released today Democrats office in the Capitol will be carried live at 9 pm CDT by CBS NBC and ABC Ending the embargo will be the principle item on the agenda at the conference he told reporters Thursday after testi fying before a closeddoor meeting of the House Ways and Means Committee But even as Kissinger was expressing optimism Arab commentators today said President Nixon was being too optimistic in anticipating an end to the Arab oil embargo the United States Meanwhile the Nixon ad ministration has reportedly lowered its expectations for another energy conference one of oilconsuming nations to begin in Washington on Feb 11 Ranking US officials say this is partly because administration infighting has kept the govern ment from coming up with a clear set of objectives Article Sunday Bottled gas prices causing hardship Mostly cloudy tonight with chance of rain Lows in the 30s Saturday cloudy with chance of rain Colder with highs in the 40s Partly cloudy and warmer Sunday through Tuesday Chance of rain or snow Monday INDEX Classified 1417 Religion 5 Comics TV Bridge Crossword 19 Editorials 4 Family living 6 Records 1718 Sports 1113 Weather details map 18 Bottled gas price increases of nearly 100 per cent in some cases with resulting h a r d ships to users and dealers this area will be the subject of an Energy Crisis series article in Sundays Southern niinoisan Particularly hard hit are the residents of Carbcmdale area mobile homes most of which are serviced by propane gas and most of which are occupi ed by students at Southern Illinois University at Carbon dale One couple interviewed by Southern Illinoisan report er Joanne Wood said their December bill had gone from last year to this year We turned down the ther mostat as the government ad vised to save fuel said the young woman wife of an SIU C student who has a fixed a month GI bill income It hasnt help us save mon ey though she said We are lucky to have someone to borrow money from so we can pay our bill If the gas were turned off it would be the end of every thing for us Propane gas suppliers too are having problems William Eaton of Southern Gas in Car bondale has sent his custom ers a note asking them to write their Congressman and Senators to protest An NBC camera crew was in Carbondale Thursday in terviewing trailer court occup ants on problems raised by cost increases High school classes owe state back taxes to plan The adj On the other hand the ministration plan is only a j ministration plan would cover minimum Employers and some items like routine dental workers coverage could select at higher fuller rates A tax proposal under con sideration in the administration expenses for youngsters under 13 maternity care child care up to age six eyeglasses and hear ing aids up to age 13 could up the takehome payfor planning some mental family illness the average taxpayer by a f monfh This would happen if the government taxes workers on the money employers contribute toward health premiums The contributions arent taxable in come now costs outpatient prescription and life saving drugs Employers would pick up 65 per cent of premiums for the minimum plan the first few years with their share rising to 75 per cent i Unpaid sales taxes incurred by graduating classes at sev eral Franklin County high schools are being collected by the Illinois Department of Revenue The back taxes were owed on class fund raising activi ties such as concession stands at ball games and sales of stationery Allan Patton Thompson ville Community High School principal said Schools were under the impression they are tax exempt Under this as sumption we havent paid taxes on junior and senior class activities The law concerning retail sales by nonprofit organiza tions has been on the books since 1961 said Willard Ice manager of the Regulations and Hearing Division of the Illinois Department of Reve nue Two or three years ago the Superintendent of Public Instruction sent a bulletin to all schools reminding them of the statute We arent having a particular drive on schools Apparently an investigator learned these schools were selling commodities without paying taxes and then checked it out Ice said Last week Christopher High School in taxes dat ing back to Jan 11972 Sesser High School also owes taxes going back to 1972 but the amount has not been de termined yet The ZeiglerRoyalton High School owed but it was paid in December Thompson ville Community High School might be affected but it has not been approached yet by the revenue department Benton High School has been paying sales taxes since September Supt Barnie Gen isio said West Frankfort High School has been paying every month for years said Princi pal Gail Borton Sesser High School Princi pal Arnold Wingo said it was partly our fault for not keep ing up on the sales tax Maybe we should have known The junior and senior clas ses who are presently in school will pay the taxes they owe from their accounts But the debt from classes that graduated in the past will have to be made up in dif ferent ways Christopher High School will absorb its from a general ac tivity fund In ZeiglerRoyal ton this years junior and sen ior classes assumed the debt from last years graduating class This same method might be used by Sesser High School although it might have to be dealt with by the school board said Wingo The unexpected expense however also will affect ac tivities of classes in school This years senior class was going to propose an over night trip to Chicago But now they have to use of their funds for taxes and it will be more difficult for therm to afford it sfaid Christopher High School Supt Joe Wilkfcr son i
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