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Southern Illinoisan (Newspaper) - December 18, 1974, Carbondale, Illinois PUBLICATION OFFICE Cariwndale Murphyiboro Herrln 710 N Illinois 1113 Walnut 212 N 16th Southern niinoisan HrrB Wily Jur1 Murphybor Velum MNo 3051 Se Cepy Four Section 32 Pages CarbondaleHerrinMurphysboro WEDNESDAY DEC M Ford tells steel firm to justify price hike L ffvr Washington AP President Ford has demand ed that the nations largest steel producer justify an 8 per cent price increase that shows signs of spreading through the industry and may ripple across other segments of the nations troubled economy Under the Presidents order the Council on Wage and Price Stability demanded an im mediate explanation Tuesday of the price increase being put into effect today by the United States Steel Co Within 24 hours of the industry leaders price boosting announcement Steel Corp the nations 13th largest producer said it also was hiking prices up to 8 per As Ford set the price battle in motion Treasury Secretary William E Simon upped the administrations estimate for unemployment next year and warned that the recession will deepen into the spring of next year Simon told the Senate Budget 8 per cenf jump may spread to nations other industries he said is the prime cause of recession US Steel said Monday it was increasing prices an average of 8 per cent on twothirds of its products The increases primarily will affect the con struction rail and oil in dustries A company spokesman argued the increases were necessary because profits were held down by price controls m recent years US Steels pro fits of million in the first nine months of 1974 were higher than in any 12month period in the companys history of Pueblo Colo which makes steel for the mining petroleum and transportation industries has reported earn housing starts to the level in eight years The Commerce Department said home builders started new units at an annual rate of 990000 during November the lowest level since December 1966 The number of new building permits sank to an annual rate of 720000 the lowest since the government began keeping statistics on the rate in 1960 The Federal Energy Administration obtained pledges from 15 oil companies for price rollbacks totaling about million for alleged overcharging The FEA also wiped off the companies books some million in claimed costs that otherwise could have been passed to customers in price increases Pilots of financially troubled Pan American World Airlines agreed to take an 11 per cent pay cut starting Feb 1 to help the ailing carrier The agreement will more than wipe out the scheduled 9 per cent pay raise that goes into effect Jan 1 for Pan Am pilots Sugar prices in New York where theyre the highest in the nation are being cut by as much as 20 per cent Retailers in other parts of the country say they dont plan to follow suit mainly because prices were lower to with their begin Silent Christmas message entirely AP Wirephoto Miners ignore court order jdled by the constr The Council on Wage and Price Stability has no authority to order a price rollback Its chief weapon is focusing public attention on pricing situa tions Fords action on the steel in crease and Simons jobless forecast came against the background of a mixed dose of other national economic news A further slump in the housing industry was signaled by a deepening decline in the number of new building permits and a falloff in new By the Associated Press United Mine Workers stayed from Southern Illinois pits despite a federal backtowork order but a top union official said the men wont defy the courts Jack Ponsetti of Bentpn a UMW board member said I know IU certainly instruct them to go to work myself and I will be calling all the local Union official to request men to return to their jobs Jv pickets ap after A federal judge in East St Louis ordered UMW members away from working on both tne midnight and morning shifts due to pickets at mines operated by the Inland Steel CoatWaltonvillethe01d Ben Coal Co at Benton and the Peabody Coal Co at New Athens A Freeman pit at Sparta however was back in operation weeks ago Kenneth Dawes president of the UMW in Illinois returned to WashingtonQu wife said to join a bargaining proposed council review of a construction agreement Other state UMW board members are in Springfield for a monthly meeting Major coal companies in Southern Illinois sought the ruling Tuesday A similar rul ing was granted in Dan ville The miners have refused to cross the picketlines of con struction workers since Mon day The construction men who are members of the same union but not covered by the same contract allowed work to resume last week after a ten tative contract agreement was reached But when that fell through the walkout resum ed About 19 mines and 7000 miners in Illinois have been idled by the construction workers walkout Nationally additional layons by companies heavily dependent on coal were in pro spect today Coalindustry of of the nations 120000 soft coal miners were idle Tuesday and that the same number would remain off the job again to In Washington federal mediators joined in renewed negotiations between representatives of the 4400 construction workers and the Association of Bituminous Contractors Little progress was indicated Tuesday towards agreement on a second tentative contract for the construction workers The first pact was turned down by the UMWs 38member bargaining council Sfmon told the Senate Budget 0Tf rTheTifrrt Previously he said it would reach 7 per cent but indicated then he wouldnt be surprised if it went higher He also cautioned against massive government spending to ease recessionary pressures Simon said a government spending spree merely would touch off more inflation which Federal staff insurance suit urged Washington StarJSTews Washington Auditors for the Civil Service Commission believe that Blue Cross and Blue Shield have overcharged the Federal Employe Health Insurance program million in the last four years The commission has asked the Justice Department to sue Blue Cross and Blue Shield which tosure more than 60 per cent of all government workers for about million of that total The other million remains contested as the commission and the in surers argue over contract technicalities These were major disclosures as Rep Jerome Waldie D Calif who is retiring from Congress held his final hear ings as chairman of the employe benefits subcom mittee US Steel defends new price increase Pittsburgh AP US Steel Corp said today it will respond in writing on Fri day to President Fords request for justification of its recent price hikes The firm reiterated that it believes the increases are justified In our opinion the increases are fully justified and we be lieve are a responsible action on our part a spokesman for the nations largest steelmaker said in a statement siderable time have been generally below those already being charged in the market place The spokesman said the companys top executives still had no comment but the statement was obviously the result of their thinking He said he did not know whether the company would make public its response to the President Earlier a spokesman for US Steel had defended the in creases on grounds that federal YMAflfc ITl lid in a statement creases uu giuuima umi Our costs continue to rise price controls limited profits in and our prices for a con the early 1970s Water cutoff shuts down Du Quoin schools industries Israelis blow up six houses By the Associated Press Helicopterborne Israeli commandos blew up six houses in southern Lebanon today critically injuring a child and taking four Arab prisoners back to Israel with them Lebanese officials said Hours later Arab guerrillas slipped into an Israeli settlement set off six grenades and fled with no casualties reported the Israeli command said Israeli Gen Ariel Sharon who took a senior emergency appointment in the reserves Sunday called the Jews around the world to join an active permanent war against Arab terrorists Wafergafe fesflmony Parkinson told burglars pledges would be honored Schools industries and most restaurants are closed today in Du Quoin because of a water main break that shut off water throughout the town The break in the 16inch main which is near the water tower on Chestnutstreet oc curred about am today The cause of the break is un known City Clerk Cecil Daily said it should be repaired some time today I came to work about 5 am so I could call the schools businesses and industries and tell them about the break Luckily it happened early enough that most places were able to notify their workers and students he said Du Quoin buys its water from the Rend Lake Intercity Water System Daily said the break was de tected on gauges at the Rend Lake water station and in the city fire department Fireman Richard Fronek said the departments tanker fire trucks are full and fire stations in two other towns are on standby in case there should be a fire An employe at the Bans Homestead Restaurant and Lounge said I guess youd say were half open Were us ing paper plates and cups and buying distilled water for cof fee After the break is repaired residents should boil water until the Environmental Pro tection Agency can test the water Daily said School District 300 Supt Ja cob Whitecotton said school probably will not reopen until Friday Itd be impossible to boil water Thursday for 2000 stu dents Well have school Fri day if there is any way we possibly can Thats the day most classes are having their parties before the holiday break which starts Monday The children will be disap pointed if we dont meet Fri day he said The districts calendar allows for several school closing days The days usually are used dur ing periods of heavy snow Washington AP Watergate coverup trial de fendant Kenneth W Parkinson admitted today that he relayed assurances to the original Watergate burglars that any commitments made to them would be honored Parkinson insisted however that he never knew the defen dants were being paid cash in exchange for their silence about the involvement of higherups in Watergate The fifth and final Watergate defendant to testify in his own defense Parkinsonrecounted a meeting with former White House counsel John W Dean III in late September 1972 Parkinson said he had men tioned to Dean references made to him by Watergate burglar E Howard Hunts lawyer about commitments to the burglars Parkinson said his instruc tions from Dean were to say I dont know that any com mitments were made I dont know who might have made any commitments but if any commitments were made theyll be honored According to previous testimony in the trial was raised by the White House and Nixon reelection com mittee and paid in cash to the original seven defendants Before Parkinsons defense began defendant Robert C Mardians lawyer called in 10 character witnesses including Arizona Republican Sens Bar ry Goldwater and Paul J Fan nin and Irv Noren a former center fielder who replaced Joe the New York 20s Tonight cloudy with mixed snow and rain changing to rain low in the lower or mid 30s Thursday rain changing to snow before ending highs m the upper 30s or lower 40s Friday through Sunday partly cloudy with daily highs mostly in the 80s and lows in the Five energy conservation measures Percy introduces bill calling for gasoline tax DiMaggio for Yankees In about a halfhour the chief justices of the supreme courts of California and Arizona James Farmerfounder and former president of the Congress of Racial Equality and a car dealer from Pasadena Calif had testified to Mardians reputation for truth veracity and integrity INDEX Classified Comics TV Bridge Crossword Editorials Family living Records Sports WwHier details map 2518 31 4 67 2829 Ml 28 Brinegar to resign as transportation chief T New York Times News Service And Associated Press Washington Secretary of Transportation Claude S Brinegar tday an nounced he will resign effective Feb 11975 The resignation of Roy L Ash as director of the Office of Management and Budget was announced Tuesday by the White House Other cabinet changes were reported im minent Brinegar was the second member of Fords cabinet to Atty Gen William Saxbe stepped down last week Brinegars service as secretary to become ambassador to and credited Brpegar with the jndja articulation of a national They as well as the other transportation policy the first cabinet were such policy overdeveloped M Ford said ftejpassage of the Regional Rail Reorganization Act and the i Mass Trans portation Assistance Act were the legislative highlights of Brinegars term as secretary In his letterof resignation Ash the former president of Litton Industries pointed out that he had intended to serve in ITClUlllCL vj holdovers from the Richard M Nixon administration Brinegar said his tenure as secretary had been exciting and educational but said he felt now is the time for me to return to the private sector Brinegar was a senior vice president of Union Oil Co before taking the transporta tion post the major White House assistants since he became President and plans to replace several but not all of the Nix on cabinet within the next few on Dost WJQL tm WVT President Ford praised government for only two years President Ford praised Ash base of his advisers for keeping the federal budget He has now replaced all of within reasonable propor He will leave in late January or early February after completion of the new budget and is scheduled to be succeeded by James T Lynn secretary of the Department of weeks Housing andUrban Develop jflPTlt ptivatc v That appointment has not yet said Brinegar probably would been announced be succeeded by John E Ford has been criticized from Robson a Chicago lawyer who both within and without his own is a former under secretary or party for not moving sooner to transportation Washington AP Sen Charles Percy today in troduced legislation calling for a federal gasoline tax saying the 81 per cent of the people who dont think that way are tax proposal was one of five Percy said he was submitting as energy con servation bills The other four called for a tax on gas guzzling automobiles repeal of federal income tax deductions for state and local gasoline taxes strict enforcement of the 55 mile an hour speed limit and abolition of the highway trust fund Percy said these measures would cut US oil consumption by 17 million barrels a day by the end of 1975 President Ford has called for a one million barrel a day reduction by that deadline He said he had not discussed the gasoline tax proposal with the President who had strongly opposed such a tax Recently Ford said that 81 per cent of the American people were op posed to a gasoline tax Sen Percy discusses bills at news conference ERROR Mrs Dawes did Ift Lke this statement I
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