Cedar Rapids Gazette, September 6, 1974, Page 2

Cedar Rapids Gazette

September 06, 1974

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Issue date: Friday, September 6, 1974

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Publication name: Cedar Rapids Gazette

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Cedar Rapids Gazette (Newspaper) - September 6, 1974, Cedar Rapids, Iowa Weather— Partly cloudy through Saturday. Chance of occasional showers. Cows, 50 to 55. Highs Saturday, 75 to 8ft. VOLUME 92-NUMBER 209 Celtic l\wjncb CITY FINAL 15 CENTS CEDAR RAPIDS, IOWA, FRIDAY, SEPTEMBER 6, 1974 JOBLESS RATE ASSOCIATED PRESS, UPI, NEW YORK TIMES HIGHER State Rate Okays IE Increase The Iowa Interim Rate State commerce; Aug. 26. and the commission’s commission has approved a re- approval is dated four days quest of Iowa Electric Light and] later. Power Co. to increase electrical rates, under bond, for the second time this year. The commission approved the increase, effective Sept. 27, which will boost electric revenues 9.66 percent over the rate schedule now in effect. Iowa Electric officials filed the application for collecting an additional $7 million annually Maurice Van Nostrand, chairman of the commerce commission, said while Iowa Electric was notified of the approval action Aug. 30, public notification was delayed by the Labor Day holiday. Van Nostrand said while the commisson’s action was “probably earlier than usual,” it held no significance since the rate increase cannot go into effect until 30 days after the public is first notified. An initial interim rate increase amounting to $7 million a year was approved by the com- WASHINGTON IAP) - North|I«ay 17 of Sept. 27 the utility will be collecting $14 U. S. Reports North Viet Air Threat Vietnam reportedly has moved Mig jet fighters close to the South Vitnamese border in what U. S. intelligence calls the most active air threat so far. Meanwhile, reports to the Pentagon indicate South Vietnam’s air defenses are in poor shape. U. S. officers say one of the basic problems is that the South Vietnamese air force was signed by the U. S. mostly to bomb and strafe ground targets in support of South Vietnamese troops. Its pilots have virtually no experience in air-to-air combat, while North Vietnam’s air force has seen action against U. S. bombers and fighters during the years of American strikes into the North. To make the air defense situation worse, South Vietnamese radar at the key Da Nang base often is not in working order, Pentagon sources say. Some U. S. experts estimate that Migs could reach to within a few miles of Da Nang without being spotted. At the same time. North Vietnam has extended its surface-to-air missile coverage across a million under bond and subject to refund. The commerce commission said any refund that may be ordered on final determination of the reasonableness of the rate increase “should be made at the maximum nine percent (interest) allowed by statute.” Also approved by the commis-de-jsion was a request by Iowa Electric to modify its order by eliminating its limitation on rate of return on common equity capital. “The commission finds, that in view of today’s economic conditions, a company should not be bound by a finding of fair rate of return based upon a 1972 test year.” Also granted was a company request to file updated statistical and financial data for the period ending June 30. Pending Cases Commerce commission officials said it has rate cases pending from every electric utility in the state. Iowa Electric and Iowa Power and Light Co. of Des Moines have asked for two rate increases this year. IE officials last month said they were asking for another V A, I r * &-- 'titers v    v    V: ■a V., ^    "    '*vN    'W    '    >    i-v jpg MU-. rn •V"    & *    ■■■*■■    -    MrW® .•V    V '    ^ att ,-d# & m \    ''%'    ^ iM^-wTiDi ii•;    -rn 'T'    ^    ,%    >'    >|2 ■■ f. Canyon Jump Tesf? —UPI Telephoto Although it may look like an Evel Knievel test, it isn't. It's the first high-speed test of the crew escape system for the new air force B-l bomber Thursday at Hollomas Air Force Base, N.M. The crew compartment and escape capsule separate from the rocket sled at approximately 355 miles per hour. The parachutes deploy automatically and lower the capsule to a soft landing. It is estimated that Knievel be traveling 300 to 400 m.p.h. on his jump across the Snake river canyon Sunday. Gazette Wins Award for Jail Series w BigWcapon Medical Inflation Rapped Robbery at U. S. Armory belt of territory its troops con-. increase “reluctantly ” but trol inside South Vietnam below ,    ,    .    . the old demilitarised zone. jn. were forced to do so by econom- telligence men say.    I    ic conditions. This means any South Viet- “This request was filed so namese jets that flew up there Ii13* we can meet the continu-to contest Mig intrusions would ing. unprecedented increases in have to worry about being costs of all kinds that are plagu-knoeked down by ground fire. inf> the utility industry,” said Amid these developments, the Duane Arnold, president and South Vietnamese command has board chairman of IE. ordered a limitation on its air “The soaring costs include force’s flights to reduce fuel labor, materials, services, and consumption. A spokesman in in particular, interest. The enor-Saigon said the cutback was mous increase in the interest prompted by U. S. congressional cost for borrowed money must FRESNO, Calif. (AP) large supply of arms and ammunition has vanished from an unguarded California national guard armory here, a spokesman said Thursday. The theft marks the second time in two months a California Gazette Leased Wires    .doubling    the estimate for this WASHINGTON — U n I e s s]increase that he delivered to checked, inflation will add more congress this spring, he said. than $9 billion to the price that time he argued unsuc-A American consumers pay for cessfully for extension of feder- medical care over the next two aj Wage-price controls on health!hon rate of 12.5 percent. yTs,,I. s,?ys lieallh; F'daca,lon care, which expired April 30.    |    “Doctor    bills    and    hospital weiner    y H •'txpcr.ed Bulge”    charges    are    a    prominen!    fuel    in ®    rr.    *    ,,    the acceleration of the nation’s The American Medical Assn. toflaUonhe said. and the American Hospital “Up 25 Percent” DES MOINES (AP) - The Cedar Rapids Gazette has won the Community Service award and first in the editorial page contest among larger newspapers in the annual Iowa Daily Press Assn. competition. For the first time in ten years, two newspapers tied for IDPA’s general excellence award. The Dubuque Telegraph-Herald and Sioux City Journal both were awarded top honors in the 12.000 and over circulation category. The IDPA’s 16th annual Community Service honor came to The Gazette for its seven-part series, written by Dale Kueter, last January on conditions at the Linn county jail. • Examined Process Prompted by several suicides at the jail, smuggling of drugs to inmates, and escapes, The Gazette decided to examine the full process of prisoner handling in Linn county. While the series pictured the decrepit condition of the Linn jail, it also revealed unsanitary conditions of cell areas, the presence of bugs and rats and low morale of jailers. Steps Taken The series prompted the Linn board of supervisors to take several steps aimed at improving general cleanliness of the jail, including closer inspection of work by a pesticide control firm. Increasesto 5.4 Percent Of Workers He said physician fees have jumped at an annual rate of 19.1 percent and hospital charges at an annual rate of 17.7 percent, compared with an over-all infla-,on a regular basis to care for health problems of inmates. Several civic groups began providing reading material for in- WASHINGTON (AP) - The nation’s unemployment rate in August continued its slow upward climb, rising by 0.1 percent to 5.4 percent of the work force, the government reported Friday. Although the change from the July rate of 5.3 percent is not considered statistically significant, the labor department said the increase taken over the past two months represented a break from the 5.2 percent plateau that had prevailed during the first half of the year. To Continue The jobless rate now has risen by 0.8 percent from last October’s 6 -year low of 4.6 percent and is expected to continue climbing as the economy falters. The labor department said 4.9 million Americans were unable to find work last month, an increase of about 19,000 since July. The Ford administration has prepared a program of gradually rising payments to local governments to create additional public service jobs as unemployment mounts. If the jobless rate reaches 5.5 percent, Labor Secretary Brennan has said the government would move to create about 100,000 more jobs. Unchanged Total employment as mea- Weinberger said on. Thursday that skyrocketing medical costs are increasing 50 percent faster Assn have said their price in than prices in the rest of the creases were an expected bulge! The charge for a semi-private national guard armory has been (economy and are fueling infla- after nearly three years of prof- hospital room has gone up at an the target of arms thieves. jtion. _ jit limitations.    (average    annual    rate    of    almost A sophisticated anti-burglar device was undisturbed and appeared to be in operating order, said Lt. Col. Frank Salcedo, a guard information officer. “Guards Redundant” “Due to the burglar alarms, we felt it was redundant to have guards posted,” he added. Missing from the San Joaquin Valley weapons dump were 58 “Even during the medical cost inflation which followed the introduction of Medicare and Medicaid, increase in doctor bills came nowhere near the record-breaking rises we see now,” Weinberger said. Controls Warning In a speech before the American Association of Medical Clinics, he urged the health care industry to cool down its infla- automatic M16 rifles, two .45- tl0nary_ spiral or face the pros-caliber pistols, four .38-caliber lK‘ct , an 0lJt[a8ed public de-revolvers, two M60 machine manc^nf federal intervention. guns and three 40mm grenade He said that if voluntary coop-action to slash military aid to be paid to attract investment >nljaunchers    eration    fails,    “the American South Vietnam.    'the    company,”    Arnold    said.    al-    W®    are    in    real    trouble    0n    the _______ _____---  1    In    ad™,on’    tn‘eve! stole a! health care front.” most 2,000 rounds of ammuni-j Rjsjng health care costs now tion for the weapons, along with threaten to add another billion 40 riot-control chemical gre- The supervisors also ordered sured by the department’s laminal public health nurses return 'Pl* ^vey of households stood at 86 2 million in August, practically unchanged in the last two months. Nonfarm payroll employment as measured by the mates.    survey of business establish- While The Gazette was ad-|ments was unchanged in August judged as having the best edito- at 77.2 million. rial page for large papers, the Looking at wages, average Ames Daily Tribune    won    that    hourly earnings were reported award for small newspapers    in    UP three cents in August, to the state    $4.24, a level 33 cents more than Third First    a Year ag°- Weekly earnings $11.10 from last August. In the editorial page competition, this was The Gazette s third first-place award in the last four years, its fifth in the contest’s 10-year history and the ninth Gazette ranking among the top-rated three each year. The editorial page staff consists However, the Hourly Earnings Index in dollars of constant purchasing power declined three percent over the past year, the government said. The length of the average work week and factory overtime were essentially unchanged last Gunnar Olsen Drops Suit Against KCRG Following three hours of pre- the condition that the television hearing conferences Friday in company supply it with any the judge’s chambers of the available tests of the foundation Cedar Rapids federal court, a made by current contractors for! New York engineering firm the tower, dropped its suit against the    Suit    Filed owners of the KCRG-TV tower. jn jts original petition, Gun-A hearing had been scheduled nar oisen argued that it needed on the Gunnar Olsen Corp.’s pc- such information for its defense tition for an injunction to stop jn ^e suj{ filed by Lillian the Cedar Rapids Television Co Greiner, of Independence, from erecting a new tower at whose husband, Elmer, was the site on which the old tower j killed. collapsed Oct. 3. 1973.    It    was    further    claimed    that    an Gunnar Olsen, which is faced agreement was made permit-with a $560,000 lawsuit filed by tjng these tests, the widow of one of five men jn counter petitions filed killed in the accident, was modi- Thursday by lawyers for KCRG, I nades. Salcedo said he didn’t know if | the weapons were in working order but noted automatic rifle parts can be legally purchased on the open market. No Forced Entrv dollars to the federal budget, U. S. Gulf Coast Put On Hurricane Watch However, a congressional 25 percent, he added study released this week showed “With such skyrocketing infla-that office-based doctors had a tion, the costs for health care in median income of over $42,700 this fiscal year will increase an per year, almost double the additional $4 billion and, in the $23,400 earned by lawyers, the next year, an extra $9 billion second-best-paid group.    ... on top of the ‘normal’    growth “Since price controls    were    in health care    spending    each lifted, the cost of medical care    year,” he said, has increased 50 percent faster More than 70 percent of those than the economy as a whole — higher costs will be paid out of    .    j_________ _____ _____ and this we must and will mod- consumer pockets, the secretary Heusinkveld. editorial page ^Juggish economy, erate,” Weinberger said.    'said.    (Continued:    Page    3,    Col.    5.)    . Ford Gets Earful from Economists WASHINGTON (UPI) — Econ- of the casualties, we’re going to some    of    the government    regula-i Norma    Pace,    American    Paper omist Walter Heller looked feel a backlash,” he said    tions    which    keep    prices    ar- Institute:    Part    of    the problem    is of Jerry Elsea. pditoria1 writer; Imonth, both reflections of the The weapons MIAMI (UPI) - Hurricane Carmen, packing HO mph winds and growing stronger, headed disappeared fof the y s gu,f coast Fri from an armory storage vault £jayi SpUrrjng forecasters to post at the 217th transportation hat-|a hurrjcane watch from a point talion between Tuesday after- near mouth of the Mississip noon and Wednesday morning, pj rjver f0 Cedar Key, Fla. There was no indication of a forced entry, an FBI agent in Sacramento said. Forecasters said the storm was expected to gain in size, strength and forward speed dur- To gel into the storage area jnR (hc next 24 hours without breaking in and triggering the alarm, at least two keys The area for which the hurri watch was posted was cane need one for the door and one for the alarm system,” he said ..    ..__-    -    , -    ,    But    he said the theft was not lying the lower at the time ll u was stated that no such;n(>cessarj|y an insjde Job ,.Most fell.    agreement had been made. and burg|ars have access lo the Court Order    that such a claim was “mac-,kp    ■    • •    — Last week the firm requested curate, misleading and in bad J()h' a court order to allow it to ex- faith.’ avale around the fallen tower [ It was argued that Gunnar would be needed. ‘ They would from Qrand Isle, La., due south of New Orleans, through the Florida panhandle to Cedar Key. keys they need to a particular Today s Index across the massive table and told the President his economic ideals were narrow, old fashioned, perhaps naive. Around the table, 48 others hooked on. Television cameras caught the scene, photographers took pictures, reporters took notes. Heller said President Ford was looking only at inflation — “Public Enemy No. I” — and not at the simultaneous ache of economic stagnation. Whole Field The government would have to do more    than simply cut its budget and    tighten its belt, he said. “We can’t let inflation fill moment, no tension. It was a the whole field of our vision ” frank, open disagreement over He looked Ford in the eye. what course the government “This may go against your should take to cope with the free market grain. Mr. Per- worst peacetime rate of infla-sident,” he    said, and continued tion in U.S.    history, the lecture    — the Wage-Price    n0    Impatience Stabilization Council “needs Ford listened without com- tifidally high, often by prohibit-ment, and without flinching. He prjCe competition. “legislated inflation” •— things government requires industry to do which have the result of driv- called on George Shultz, former, „    ..    .    ------------------------------ treasury .secretary. Shultz disa-i, *J* clled government-fixed jng prices up. She cited antigreed with most of what Heller rrelfht a"d Pass(,ngcr ra,es-1 pollution requirements, had said    dU0,tas    on    da,,r>    imports    and Hie „We shou|d mea5ure ,he informal agreemen wh.ch ( m , js|a|ion and have limits how much low-cost' c before built. the new structure was Olsen had known for some time was begun Thursday morning jShown no The engineering firm with- excavation drew its request to excavate on ‘Severe Hardship’ that these tests would cause Toiluif** Chuckle ■ if    damages    k Experience helps, tint some con(ract()rs how you never have it until | Jn acj(jitior just after you need it Coo*'****1' (Continued: Page 3, Col 5.) “No Connection” Comics .............. .... 21 “As you know, we have had Crossword .......... H other burglaries in the state, but Dally Record .... 3 there appears to be no tie be Deaths tween this theft and any earlier Editorial Features 6 theft. At this time we have no Farm ........ IS idea where the weapons are,’’ Financial ......... ...... 22 the agent said. Marion ... ......... 9 On July 31, 1972, thieves in Movies 14,15 vaded the armory here and es Society ....... ..... 10.11 caped with 97 M14 rifles and a Sports ............... .. ,17-19 large quantity of military sup Stale ..... 4.5 plies, including a three-quarter-1 Television 20 ton truck which was apparently Want Ads 25 29 ! used to haul the arms away. He offered another prescription. I rn distressed to see th« i fQj-gjgn steel can be imported, wage-price controls head stick1 up again,” he s|iid. “I thought we learned that lesson.” Before Washington starts telling business men when they cannot raise prices and workers when to forego raises, he said, perhaps it should confer with business men and workers. There was no anger in the (Continued: Page 3, Col. 6.) clout,” Ford rn lie, t use “the club in the closet” to control business and labor appetites Ford showed no impatience with the conflicting advice, promising to read the transcript Kord'cou'ldTol' bd 'the’ budget! ?f ,hal Part bear the entire burden of coping he missed in the daylong meet- with an inflation caused by mg in the East room. .other factors — food .shortages. ^ord sa'd wa31led results, and oil cartel, and two devalua- no* j0**'1 tions of the dollar. Without Flinching Ford should cut payroll taxes for workers, tax auto horsepower to save gasoline, increase taxes on the righ. Heller said “If we just declare a total war talk. “What we want are some right ans were.,” he said. “We can’t waste time stating and restating the problems. The problems are obvious, painful and perplexing.” Here are some of the economists’ suggestions: Thomas Moore, Hoover Insti- on inflation without taking care 'lute, Stanford university: End AP Wirephoto President Ford puffs on his pipe as he listens to economists' views during Thursday's mini-summit on the economy. ;

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