Cedar Rapids Gazette, December 19, 1974

Cedar Rapids Gazette

December 19, 1974

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Issue date: Thursday, December 19, 1974

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Publication name: Cedar Rapids Gazette

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Cedar Rapids Gazette (Newspaper) - December 19, 1974, Cedar Rapids, Iowa Weather- Cloudy lliroujjli Kri- ilny wJlh eliunce of snow. J.ows Ionium In teens. Highs Krlduy In 20s. VOLUME 92 NUMBtilt 344 CITY FINAL 15 CENTS CKDAK KAPIDS, IOWA, THUHSDAY, DICCEMBKR 1974 ASSOCIATED PKKSS, UPI, NEW YOltK TIMES NEW JURY TO PROBE POUCE Report: No Taxeson10 Giant Firms WASHINGTON (AP) A staff study by the congressional joint committee on internal rev- enue taxation reports that 10 of the nation's largest corporations paid no federal income taxes last year even though they had profits totaling almost a billion dollars. The study, released Wednes- day by Rep. Charles Vanik (D- Ohio) found that another 20 companies with profits of billion had an effective federal income tax rate of between 1 and 10 percent. The committee staff reporl was based on an examination ol data filed by 160 large comp- nies with the Securities and Ex- change Commission. Nothing Illegal Vanik, in releasing the study said the companies paying little or no income tax had done noth- ing illegal. "They have simply taken ad- vantage, quite effectively, of the multitude of tax subsidies which have been enacted into the tax laws over the said Van- ik, a member of the house ways and means committee.. The large corporations report- ed to have paid no taxes includ- ed UAL Inc., which owns Unite; Airlines, and Trans World Air- lines. UAL earned million last year, the committee study said, while TWA recorded earn ings of million. The other eight companies cited by the study as paying no taxes, along with their 1973 earnings, are: No Taxes Consolidated Edison of New York, million; American Electric Power Co., mil lion: Frccport Minerals Co. million; Texas Gulf Inc. million; Western Bancorp million; Chemical New York Corp.. million; Bank crs Trust New York Corp.. million, and Contencntal Illinois Corp.. million. The second 20, and live rates of income taxation were: International Harvester Co. Kennecoft Copper Corp LTV Corp. Anacon da Co. Occidental Petrole urn Corp. Texaco Inc Chase Manhattan Corp (2.5) Gulf Oil Corp. Me Donncll Douglas Corp. (3.2) Standard Oil of Ohio E Paso Natural Gas Co. Mo bil Oil Uniroyal, Inc. (6.5) International Minerals Chemi cals Chrysler Corp. (7.5) Gulf Western Industries National Cash Register Co. (9) Southern Railway Unio Oil Co. of California (9.G) am Continental Oil Vanik said the 143 companic in the study had an average c fective tax rate of 23.6 percen compared with the statutor rate of 48 percent on federa corporation income taxes. Among tax devices used b corporations to defer or cancc income taxes, Vanik said, wer t h e investment lax credi foreign tax credits and accelci alcd capital equipment depre- ciation. Five Months for Haircut Refusal RFRLIN (AIM A II. i army court-martial Thursdr scnlcnccd Pvt. Robert Nuchov. 19, of Leon in, N. .1., lo fiv months' confinement at liar labor for refusing lo get a liai cut. lie was also fined month for five months and r duced to (he lowest enlislc rank. Today's Chncklf "My wife always sees lo il lhat wo have a balanced did. Those days I he food bill always equals her paycheck plus Millie." ronvrlnti Final Approval for Public Service Jobs HONORED ,GUEST ;Secretary of State Kissinger escorts former Israeli Premier Golda Meir to a state department dinner in her honor. Earlier she met with President Ford at the White House but what was discussed was not disclosed. i Industry Men See Rollbacks By U.S. Steel PITTSBURGH (AP) Many teel industry leaders say pri- that they feel U. S. Steel Corp., in the face of White House anger, may have to roll iack at least some of its newly announced price hikes. And one insider said Prcs- dcnt Ford's angry reaction taved off at least for the nomcnt similar price hikes 'lanned by several other major troduccrs, including No. 3 Na- ional, No. 6 Jones Laughlin md No. 7 Inland Steel. So far, only lath-ranked Keel Corp. of Pueblo, Colo., has ollowed top-ranked U. S. Stee' n raising prices. Ford decided Thursday to de- mand a justification of the ncreasc. He had previously de- manded a justification from U, Steel. 'It's a bad time for price one source said 'The market is softening, and I ust thought U, S. Steel's new >rices were out of line." Another source said, "I wouk expect sometime in the nexl few days that U. S. Steel will re- consider at least some of its new prices and withdraw "From a public point of view I don't think they can make i stand up, and I don't think hey'll be able to convince the President they needed it said a third. The price hikes average abou percent over two-thirds of U (Continued: Page 3, Col. 8.) Jobless Claims Rise; Personal Income Drops WASHINGTON (AP) The nation's economy has turned in another set of. distressing sig- nals. More Americans face the oss of jobs, personal income is down and the nation's balance of payments position lias deteri- orated. The gloomy economic indica- tors Wednesday were led by a governmenl reporl lhat TSbns began filing new claims :or unemployment insurance Benefits during the first week of December. The claims, representing an increase of over the pre- vious week, were in addition to the persons who al- ready were receiving jobless benefits during the last week in November. Income Decline With more persons out of work, over-all personal income declined 0.2 percent during No- vember, or billion at an an- nual rate, according to the com- merce, department That com- pared with an increase of 0.6 percent, or billion, the pre- vious month. The commerce department also said that industrial payrolls fell 2.5 percent last month, rep- resenting a billion drop at an annual rate. The falloff was blamed on the coal strike and job layoffs in the automobile and other industries. By the end of January, about one-fourth of Ihe blue-collai work force of Ihe biggest au- tomaker, General Motors, wil! be let go indefinitely. GM an- nounced more layoffs Wednesday and will have of its employes out of work by. :he end of January. Payments Balance The government also an- nounced that the U. S. balance of payments in the third quarter suffered the second largest defi- cit ever, largely as a result of the high costs of foreign oil. The deficil of billion compared (Continued: Page 3, Col. 8.) Lawyer Sentenced in Nixon Papers Deal BULLETIN WASHINGTON (AP) The senate Thursday rejected a SS.a-billion federal spending cut by a (11-31 vole. WASHINGTON (AP) Congress, acting to combat the unemployment that now affects nearly six million Americans, fias passed a bill authorizing public service jobs. The billion bill cleared both house and senate on Wednesday and wenl lo Pres- idenl Ford for his expected sig- nature. The bill also extends unemployment compensation to those not covered by existing programs, such as farm labor- ers, domestics and governmenl employes. Despite the bill's authorization, the senate voted Thursday to appropriate bil- lion for the program. The house iVednesday voted a ppropriation. The money bills ow go to the house-senate con- erencc commillec where a [uick compromise is expecled. The house was expected to ake final action Thursday on molher measure aulhorizing 11.1 billion lo extend Ihe period 'or paying jobless benefits to 32 weeks. Anti-Poverty Bills Democratic leaders were pushing for final adjournment of New Linn WASHINGTON ward Morgan, (AP) Ed a lawyer who Senator Jackson ID-Wash.) said Ford administration insist- ence 'thai natural gas prices be decontrolled has killed any chance that congress will pass emergency energy legislation this year. Congress sent to the White House a bill to regulate the gov- ernment's collection, mainte- nance, use and dissemination of information about individual cit- izens. By voice vote, the house passed and Sent President Ford an international air transit bill designed to reduce alleged foreign discrimination against U. S. airlines. Before passage the house abandoned a con- troversial amend ment oppo- nents claimed was a disguised multi-million subsidy for finan- cially ailing Pan American World Airways. By 363-32, the House passed and sent President Ford legisla- tion establishing uniform rules of evidence for federal courts, culminating more than 13 years of study. The senate passed legislation o require manufacturers to spell out the meaning of a war- ranty that accompanies a prod uct. The bill, sent to the house illegally back-dated (he deed turning Richard Nixon's pro presidential papers over to the government, w a s scntcncoc Thursday to four months in pris- on and 20 months probation. Morgan, 36, pled guilty on Nov. 8 lo attempting to obtain more federal income tax deduc- tions than were legally due former President Nixon and Nixon's wife, Pat. Culver Paid for Visit fo White House the 93rd cdhgress by Friday night, with some expressing hope the windup might be possi- ble late Thursday night. Both chambers planned to complete action on legislation extending anti-poverty pro- grams but phasing out the Of- fice of Economic Opportunity the anti-poverty agency. The legislators sent lo tin White House a billion foreign iaid authorization bil which would allow military aic for Turkey to continue unti Feb. 5. However, leaders decided noi to try lo pass a foreign aid ap- propriations bill in the closinf lours of the session but insteat to fund the program with a con- inuing resolution based on pre- 011 a 70-5 vote, provides that a nanufacturer who issues a "ful warranty" would, have to maki clear he will replace the prod uct or repair any malfunction'or defect within a reasonabli period without charge. vious allotments. This resolution WASHINGTON, D.C. i- Sen.-'their home in Chevy Chase, elect John C. Culver's first ap- pearance at a White House so- cial function didn't come off without one small hitch. Although Culver has served ten years in congress, President Ford's Tuesday night Christ- mas party for members of the house ant! senate was the first such event Culver and many other congressmen -had. been in- vited lo attend. "But it cost me Culver laughingly told The Gazette. When his wife, Ann, pressed his tuxedo earlier in the day, she failed lo put the bow tie in the pocket. She took the suit lo Culver's Capitol Hill office where he dressed for the 9 p.m. party and discovered the lie was missing. The Culvers telephoned to Md., and their daughter, Beeca, dispatched the tie by taxi. The Cedar Rapids Democrat, and his wife stoodi across the street from the White House waiting for its arrival. The taxi bill was Culver said 'the party mood was friendly and festive. "I knew him when he was only a President Ford said in presenting Culver to his daughter, Susan Ford. There was no mention that less than two months earlier Ford was in Iowa campaigning on behalf of David Stanley in his unsuccessful bid lo win Ihc seat being v a c a I c d Hughes. by Harold "We had a pleasant visit with Ihc said fol- lowing the White House party. Million Budget Asked ate passed the louse Wednesday and was sen' lo the senate. 55-M.P.II. Limit Also senl lo the President Wednesday were a compromise highway bill fixing a permancni 55-mile-an-hour national speed limil and a billion military construction appropriations bill. The highway bill includes a provision allowing heavier Irucks in on interstate high ways, a step branded as "a rape of the motorist by the American Automobile Assn. which contends lhat largei DBS MOINES (AP) The slalc department of public in- Direct Jury By Mike Dcupree Linn county's newly-elected county attorney left little'doubt Thursday a fifth official inves- tigation will be conducted into allegations of illegal activities by Cedar Rapids police officers. And Eugene Kopecky, who will succeed William Faches as the county's top law enforce- ment official next month, em- phasized he hopes his investiga- tion will be the last one. "1 have every intention of pursuing this and getting to the end of it as quickly as possi- Kopecky said in a news conference Thursday. "In all likelihood, the case will go back to the grand jury." Allegations of electronic eaves- ropping, misuse of public prop- rly, illegal breakins and other iolations of constitutional guar- antees during criminal investi- ;ations first surfaced more than a year ago. Granted Immunity Faches conducted an inves- tigation of the charges. His re- port said there was basis for in- dictments on some of the allega- tions, but he would not seek in- dictments because he had grant- ed immunity to some witnesses in order to bring out what he considered more important con- stitutional-infractions. After the Faches report, Linn District Judge William Eads called the investigation, and the possibility of. indictable of- fenses, to the attention of the county grand jury, telling the jurors they had an obligation to return indictments if the evi- dence warranted. At Eads' request, Attorney struction presented budget re- Gen. Richard Turner named one quests for the next bicnnium to- taling million as .Gov. Robert Hay started hearings on the money requests of various state departments Thursday. The department asked for a increase for the 1975- 76 fiscal year over its present budget year, which ends next June 30. Ils 1976-1977 fiscal year request is more than it is asking for fiscal 1975-1976. Dr. Robert Benton, state su- perintendent of public instruc- tion, said the major components of the increase are in. general foundation aid to schools, area school general aid and capital funds requests of million. The estimated foundation aid increase for the first year of the biennium, he said, results from the operation of the school aide formula which the department is powerless to He said the capital trucks increase the possibility o do anything about, accidents. i The house passed and sent to the senate a compromise bill limiting lo million the loans or loan guarantees which the Export-Import Bank can extend to the Soviet Union. In other congressional devel- opments: building needs at the area voca- tional schools. It represents the slate's share of the cost, and other funds would come from a three-quarter-mill property tax levy in the area school districts plus federal funds. Kremlins Tantrum on Emigration: Did They Mean It? Gazette Leased Wires Kremlin-watchers i n Ihe Wesl differed widely Thurs- day in their appraisal of the Soviets' angry renunciation Wednesday of any trade agreement with the U. K. binding Moscow to case emi- gration. Some analysts said it could mean rough weather ahead for Soviet-American detente and might even mean thai So- viet chief Leonid lirezhnev, although at the peak of his per- sonal power, hai; received some sort of rebuke. Others officials and sonic U.S. senators felt Ihc .state- ment was more a face-saving gesture Mian a move lo repu- diate trade or delenle. They saw Ihc development an angry declaration in- tended for Soviet officials who may have reservations about detente. The Soviet comments came in a stalement by the official Tass news agency and the publication of an Oct. 26 Icllcr from Foreign Minister Andrei Gromyko to Secretary of State Kissinger. Brezhnev denounced as "un- acceptable" on Oct. 15 con- gressional efforts to exact freer emigration procedures from Moscow in return for iiim-discriminaloi'y I r a d e Irealmenl from the U. S. lie did so even as he, and olhcr Soviet leaders, were pri- vately indicating to Kissinger that the Soviel Union was pre- pared lo issue emigration visas, eliminate harassment and even enlerlain U. S. inqui- ries on specific eases. On Dec. 3, Kissinger les- tified before the senale fi- nance committee on these un- derstandings, warning at that time that loud public discus- sion of the deal could embar- rass the Soviets ami under- mine the assurances. State department officials told newsmen Wednesday that they did not consider Moscow has repudiated the under- standings worked out with Kissinger or torpedoed the 1972 Soviel-Americaii trade agreement. The Soviet .statement fol- lows extensive broadcasts by the Voice of America of Ihc debate in Ihe senate, where Sen. .1 ac k s o n warned Ihe Russians lo live up lo Ihe emigration under- standings or risk losing most- favored-nation slaius. The Soviets so far have not said specifically they would reject this trade stains. .lacksoii who authored Ihe trade-off of non-discrimina- tory trade treatment for easi- er emigration, said, Wednes- day that he viewed the Soviet statement as being "ill the face-saving category." Soviet leaders long had ea- gerly sought preferential treat- ment in trade with Hie U. S. Last week the senale attached strings to the deal, intending lo insure a more liberal Soviet altitude toward emigration, especially of Jews. But some analysts said the price was too big, that the1 Kremlin now huffily rejects .1 and that Wednesday's an- nouncement evidently was hastened by the fact that the .senale completed its action on the Irade bill Friday and the trade measure was headed for final congressional passage al this session. The Russians didn't like what il did to their sillier- power image to seem to be a s u p p 1 i c a n I for -American favors. The chauvinistic and intensely nationalistic mili- tary, in particular, would re- sent it. Much surprise was generated in Ihe West by the announcement. A whole month before the Vladivostok summit Kissinger had r e c e i v e d Gromyko's harsh note denouncing .lack- son anil accusing Kissinger and Jackson of "distorting" the Soviet position. If there was some sort of deal, even informal, Gromy- ko's Ocl. 20 letter would seem lo have nullified it. That, would make il seem thai Brezhnev was obliged lo re- nege, Ihe analysts said. In Moscow, nuclear physicist Andrei Sakharov, a leading Soviet dissidcnl, described the Tass slalemcnl as "very dis- appointing." Meanwhile in Washington, congress has moved closer to passing the trade bill. Congress was expected lo complete action on the bill Thursday or Friday and send il to President Ford. The Kremlin's opposition lo Ihe bill reached Washington as congressional conferees held a day-long session that ended in agreement on a hill to be sent to both chambers. The Tass stalement had ab- solutely no effect on the con- c o u t e r ees, Sen. ng chief senale insiir