Cedar Rapids Gazette, September 13, 1974

Cedar Rapids Gazette

September 13, 1974

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Issue date: Friday, September 13, 1974

Pages available: 56

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Publication name: Cedar Rapids Gazette

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Cedar Rapids Gazette (Newspaper) - September 13, 1974, Cedar Rapids, Iowa Weather- Clcur and cool tonight with lows in (he mid to upper 30s. Fair Snlur- iliiy wllh In (he upper Ms mid 70s. NUMBER CITY FINAL 15 CENTS CEDAR RAPIDS, IOWA, FRIDAY, SEPTEMBER 13, 'ASSOCIATED PRESS, UPI, NEW YORK TIMES WASHINGTON (AP) Two of President Ford's top econom- ic advisers say consumers won't get any significant relief from the nation's soaring inflation rate this year. The gloomy predictions came from departing presidential eco- nomic counselor Kenneth Rush and Chairman Alan Greenspan of the Council of Economic Ad- visers. Despite months of anti-infla- tion effort, including record high interest rates most of this year, these advisers say the earliest any real progress can be made is next year. Major Retreat These views mark a majoi retreat from Nixon administra- tion predictions that the rate ol inflation, now about 11 percent, would decline to 7 percent by the end of this year. This target was revised upward a montl; ago to 8 percent. Rush, who was confirmed by the senate on Thursday as am- bassador to France, indicated in an interview thai the inflation rate may still be above 10 per- cent when 1974 draws to a close. "The picture is not as optimis- tic as it was two and three months Rush said. In other economic develop- ments on Thursday: Senate. Democrats, voted, (o send President Ford several economic policy proposals for consideration at the upcoming economic summit meeting. Leaders of (lie nation's hous- ing industry attending an eco- nomic mini-summit in Atlanta made a bid to exempt their in- dustry from anti-inflationary tight money policies. The Federal Power Commis- sion staff recommended a single nationwide price on certain nat- ural gas, a move virtually cer- tain to increase gas prices. Greenspan fold labor leaders meeting at the White House on Wednesday that "in the immedi- ate period ahead it docs not ap- pear as though the inflation rale is turning down. Greenspan said hope" i will decline in 1JI75. Food Costs Both Rush and Greenspan cited the prospect of higher foo( costs, resulting in part from t Midwest drouth, as being large- ly responsible for the worsening, inflation outlook. Treasury Secretary Simon was not quite so pessimistic as they were, but he indicated to a newsman that it was unlikely the inflation rate would be below 8.5 percent this year, anc could be higher. In their message to the Pres- ident, scnale Democrats said culling the budget will not slow inflation without steps to end huge price increases in major industries. Democratic leader Mike Mansfield of Montana said the Democratic conference had in- structed Sen. Proxmire (D-Wis.) to hold early hearings lo "pin- point and expose the wave of inflation precipitated by gigan- tic price increases in key indus- tries." The conference did not call for wage-price controls, but urged Ford lo begin "some very powerful jawboning" with in- dustrial loaders. The Democrats also voted lo ask Ford lo include several items in the economic summit agenda, including an eased monetary policy, and special lax relief for low and moderate in- come groups. Nixon Doctor To California WASHINGTON (API-Former U.S. Has Enough Oil For Winter, Experts Talks with Rabin Tclcphoto President Ford entered a second day of talks with Israeli Prime Minister Yitzhak Rabin at the White House Thursday. Rabin and Ford are discussing the Middle East situation and assessing prospects -for a permanent peace settlement between Israel and her Arab neighbors. For TOLEDO A warrant has icen issued for the arrest of Robert Smith, a former Tama lolieeman, on a charge of cm- lezzlemenl by bailee. Tama county Sheriff Milo Quigley said Smith, also known is Robert Davis and .James F. Lawmaker: Withhold in Nixon Fund President Nixon's While House doclor loft Friday for San Clc- mcnlo, Calif., to determine per- sonally if Nixon's phlebili quires' House sources said. )avis, no address, is accused of aking handguns belonging to )ysart and Garwin. Dysart Police Chief Bruce C. B o 1 i n filed an information Smith, 24. obtained a Smith and Wesson revolver July 31 at Dysarl, on behalf of Gar- win. However, he convened Ihc weapon lo his own use, Boiin claims. Garwin Mayor Floyd F. Cutler, in another information, claims Smith converted a cal. police revolver lo his own use Aug. 22. A former sppcial auxiliary of-. WASHINGTON (AP) L_ A house subcommittee has been urged lo withhold of former President Nixon's transition money until he makes a full disclosure on Watergate. Rep. Harrington (D-Mass.) appealed to the house executive officers subcommittee for that move after three of ils members :iad objected to part or all of the because Nixon controls tapes and papers. "Quite frankly. I do not be- lieve that Mr. Nixon should be granted any of this money, at least not until he finally puts an end to 'the cover-up, releases the Watergate tapes and provides answers to the many still unre- solved questions as lo presiden- tial Harrington testified on Thursday. fi-MontJi Transition The was requested by (Continued: Page 3, Col. (i.) (President Ford for Nixon's six- Pretty Wife'Aids.Mate's Stock; Reverse Nof True PITTSBURGH (AP) When these same men were man with a good-looking wile paired with homely women, rates higher in other people's their standing in the eyes of eyes than a man married lo a homely woman, two Universi- ty of Pittsburgh Psychologists say. Leonard SHXO and Daniel BarTal report, however, that Hie reverse isn't true a handsome husband apparently won't enhance the status of his wife. Saxe and BarTal said in a report released Thursday that they showed portraits of coup- les lo 128 viewers and asked I hem lo try lo rale each than and woman according lo per- sonality, .success and social and economic background. Paired Differently Portraits were paired dif- ferently for different ob- servers, with homely men paired with attractive women in some cases and tho com- bination switched in others. In every rase, Ihc observers were (old thai they wen1 look- ing al a man and wife. the observers dropped. The lowest ratings went to handsome men paired with at- tractive women. Good-looking women fared belter than handsome men. "Among females, an unal- Iractive woman married to an attractive man is evaluated 1 (i w c s t on these, scales, whereas an attractive female married lo an attractive male is evaluated Saxe said. "Something ICIse" He speculated that this may he "because people figure if an unattractive man can get a good-looking wife, he must monlh transition lo private life. An additional was quested for him after that period under the Former Pres- idents Act. Rep. Bevill (D-Ala.) a sub- committee member, had said he did not believe Ihe was needed because parl of it is for securing the tapes and he said there is no guarantee the public will ever have access to them. "The government is not get ting anything. He (Nixon) can sell anything or everything ex (Continued: Page 3, Col. 7.) Say Nixon Maid, Valet Still on Federal Payroll LOS ANGELES (AP) Rich ard Nixon's personal valet and maid arc among some 30 em- ployes assigned to the former President at his San Clcmcntc estate on the federal payroll, .he Los Angeles Times reported Friday. Payroll information furnished for a house, subcommittee study showed the payroll for (lie Vixon employes runs about a year, the Times said n a Washington dispatch. These salaries are in addition o the requested on Nix- in's behalf by President Ford. rurthermore, secret service ex- icnditurcs for Nixon arc report- id annually. Both the valet and maid have served Nixon for a long lime ind are carried under the Na- ional Park Service payroll, the apor quotes the head of the have something else him." going for The findings: Homely men good-look- ing wives gut I ho top ratings for income, job .success and professional status. .c men. were low on both trustworthiness and brains. Saxe credited this lo "an egghead meaning people may think smart men are ugly. lie added: "What keeps sur- prising us i.s that people keep Jenoral Services Administra- ion. The Park Service i.s responsi- ble for Ihe While House grounds and presidential quarters. San Clcmcnlc Police Chief Mel Porlner said his depart- ment had requested renewal of a federal grant lo pay for eight officers maintaining security at the Nixon estate. Porlner said "drastic nil- backs" in secret service prolec- arcn't influenced by physical attractiveness." A 35-year-old Atkins man was killed Friday morning when hi car was struck by a train north west of Palo. Clinton Charles McFadden was dead on arrival at St Luke's hospital. Linn county sheriff's deputk said McFadden was northbound on county road 11 when he ap preached the Rock Island railroad tracks. Witnesses said McFadden tried to stop for an eastbound Rock Island train bul his car continued across the railroad (racks. The train struck Ihe car on the drivers side throwing it 85 feet. The train engineer said the train was traveling -at about 40 miles per hour when the ac- cident happened at about a.m. Friday. Passes Bill for Standard Time WASHINGTON (AP) The senate commerce committee las approved a house-passed bill to return Ihe U.S. to stan- dard lime from Oct. 27 to Feb 23, 1075. WASHINGTON (AP) Gov- ernment and industry experts say the nation should have enough petroleum fuels this winter, but the outlook is uncer- tain for coal and downright gloomy for natural gas. George Hall, fuels manager in the Federal Energy Administra- tion's petroleum allocation pro- gram, said, "All things being equal assuming it's a normal winter and there are no prob- lems with the Arabs the pe- troleum outlook is good." The FEA reported in late Au- gust that slocks of distillate fuel oil, which includes home heat- ng oil and diesel fuel, were some 10.5 percent higher than a year earlier and 12 percent higher than two years earlier. Gasoline Stocks Stocks of gasoline were more than 12 percent above those o; 1973 and 11.6 percent higher than in 1972. Tile weakest category in pe- troleum appeared to be residua fuel oil; stocks were about 4.5 percent behind their level 1972, but were--.14 percent belter than a year ago. Tight supplies of residual oil could affect electric utilities prime users of that fuel. Hall said uncertainties are posed by the possibility of a coal miners slrike Ihis No- vember, when the current Unit ed Mine Workers contract ex pires. Natural gas supplies are al ready expected to run short. Industry Supplies The Federal Power Commis sion predicts that natural gas companies will be forced bj shortages to cut off supplie: temporarily to some industries as they did last winter. But this year's curtailment are expected to be nearly twice as great as last year's, (he FPC said. Homes and other essenlia consumers are given top priori ty for natural gas, and home heating and cooking gas are no in danger of being cut off, tli commission said. But curtailed gas deliveries could force some industries seek more expensive alternate 'uels, putting additional pres- sure on fuel oil supplies, and driving up the price of their products. Some industries might even be forced lo shut opera- ions and put some workers out if jobs. Depend on Locality Commission officials could not predict which specific industries might be hurt, because it would depend on supplies in each lo- cality. Joseph Solgers, an FPC case manager who follows the grow- ng gas shortage, said the prob- em is not natural gas demand, vhich is growing very slowly, itit the failure lo find sufficient ew gas reserves while existing gas fields are inevitably losing pressure and producing less. "We're trying to talk the com- panies into switching to another fuel, but certain industries say they can't stand the expense of going to alternate Sellers said. He estimated that "thousands of industrial firms" were jeop- ardized by gas shortages. Reports Oil Price Freeze By Exporters VIENNA (UPI) The world's major oil exporting nations agreed Friday lo freeze the price of crude oil at the current a barrel and increase royalties paid by oil companies to producer governments, Jam- shid Amouzegar, Iran's chief delegate to the Vienna oil price talks, said. "We have agreed to act as we did in Amouzegar told newsmen after three hours of talks among the 12 member na- tions of the Organization of Pe- troleum Exporting Countries. Basic Price In Quito, Ecuador, in June, OPEC ministers froze the basic price of crude oil but increased royalties from 12.5 to 14.5 per- cent. Amouzegar said the amount of the new royally increase had not yet been decided. said the oil itn- p o r I i n g governments should make sure that the new in- creases were not passed on by the oil companies to the con- Spy Jet Beats Sun In London-L A, Run WASHINGTON (AP) A U. S. SR-71 Blackbird spy plane beat the sun from London to Los Angeles Friday, covering seven time zones in miles in three hours and 47 minutes. There was no official speec record to beal for the route. Tlu SR-71 run will be the record if i s certified by the Federation Aeronautique Internationale, (hi accrediting organization for avi Hion records. The average ground speed vas miles an hour with the aircraft piloted by Capt. Harold Adams, 31, from Albuquerque, N. M. On Sept. 1 the same aircraft md crew set a New York to speed record of one lour and 55 minutes. Thursday he crew aborted its first al- empt at a Los Angeles run iecause of engine trouble. WASHINGTON (AP) U. S. District Judge John Sirica has decided the pardon granted Richard Nixon is insufficient reason to throw out Watergate cover-up charges against the former President's subordi- nates. Shortly before Sirica declared the cover-up prosecution would go forward, the White House in- dicated there will be no pard- ons for Watergate defendants while they still face trial. House judiciary committee Democrats said they favor hav- ing the special prosecutor dis- close the Nixon. But evidence against Chairman Rodino Higher Tax on Rich Voted WASHINGTON (AP) Con- gressional lax-writers have 'olcd to hit some rich taxpayers i bit harder but lo go softer on nany investors and homeown- rs. A new minimum tax on Ihc veallhy, expected lo hike their axes by million a year, md several changes in the lax reatmenl of capilal gains and osses. figured lo he worth about I billion in bcnofils for people vit.li long-term assels, were ap- iroved by Ihe house ways and Tieans committee on Thursday. The new minimum levy would 10 an alternative to Ihe regular iconic, lax and would be paid nly if it exceeds Iho persons egular tax. Minus Kxcinpllon It would bo based on what is c a 11 o (1 "economic lax, which is an addition lo anj regular income tax. The committee reversed ar earlier decision and agrecc lion al the estate made it ncces-jminus an exemption and certain sary for him lo seek renewal of the grant from Ihe Law Enforce- ment Assistance Administra- tion, which paid for Iho addi- tional security for the past five iiich as extraordi- nary medical expenses and gills to charily, with a tax rale rang- ing from 14 percent lo 20 per- cent. II would replace an exisl- ling flat 10 percent minimum Thursday that all charitable contributions cash and Ihe growth in value of gifts of prop- erly could continue to be deductible in calculating the minimum tax, a move sought by educational institutions. The "economic income" base of Ihe new minimum lax woulr mean adjusted gross income plus someolher items. Fully Vanish The basic exemption from the minimum tax would he but it would be reduced dollar- 'or-dollar as economic income, iiinus deductions, rises above so Iho exemption would fully vanish at Today's Chuckle An executive is a guy who walks around with a worried expression on his subordinates' (D-N.J.) said he does not agree with proposals to indict and try Nixon despite the pardon which precludes any penalty. Although Sirica rejected re- quests from three cover-up de- f e n d a n t s for dismissal of charges against them, he in- dicated some sympathy with problems of a wave of pre-trial publicity. Day Delay He set back the start of. the trial by one day to Oct. 1 so a new pool of potential jurors can be selected. Sirica had indirectly alerted a special group of 400 potential jurors that they would be judg- ing the Watergate case. He said Thursday that, because of pub- licity. surrounding the Nixon pardon, the jury would come from a completely new group. Attorneys for former White House aide H. R.Haldemari had said the original'group of 400 would have prejudged the guilt of the defendants, if only be- cause they would have paid more attention to Watergate developments than other citi- :ns. At the While House, acting Press Secretary John Hushen, asked if any Watergate pardons would be delayed pending com- pletion of court trials, an- swered, "I believe that is true." One of the dismissal requests to Sirica was from former Attor- ney 'General John Mitchell, who claimed to have "been subject- ed to the same degree and in- lensity of publicity that prompt- ed President Ford's pardoning of Richard Nixon." "Unavoidably Implied" Mitchell lawyers told Sirica .hat, by accepting his pardon, Nixon "has unavoidably implied hat he had engaged in certain llegal acts which are inextrica- ily related to the actions un- derlying the charges against the defendant Mitchell." Attorneys for Mitchell argued unsuccessfully to Sirica that a lardon for Nixon and prosecu- ion for Mitchell "is particularly ffensive to the American con- cept of equal justice." They said he only reason Nixon goes free s his status as a former Presi- lent. A similar motion went to the udge from former White House ide John Ehrlichman. Ehrllchman's lawyers said media in the District of Colum- ia has determined that the feon administration was cor- upt and has consciously sclcct- 50 percent of Ihe gains realized led ils news coverage in a way Presently, long-term capital gains, meaning profits on assets such as slocks or real estate held at least six months before selling, gel. lower lax treatment just half the rale applied to other kinds of income while short-term gains are taxed the same as other income. The law currently excludes from taxes from sale of assels. I A key change approved by Ihc panel would add a new deduc- tion of 10 percent of (he gain for each year the asset was held beyond five years, with a tnax- tnimi total exclusion of 70 per- cent so that no more than lercent of Ihe pain on the sale of assets held for a long lime ivould be subject lo lax. Capital Losses Another would Iwosl the imoiinl. of ordinary income igainsl which capilal losses can in deducted from to vl.flnn, and a third change- would ihase in over three years an (Continued: Pago fill 71 (Continued: Page 3, Oil. 3.) Today's Index Comics Crossword Daily Record...... Denths Kdilorial Features Farm.............. Financial.......... Marion............. Movies........... Society........ Sports State Television Want Ads.......... ...20 .20 .....3 II ..21 11 8 15-18 ...4.5 23-27 ;