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El Paso Herald-Post (Newspaper) - July 19, 1973, El Paso, Texas El Paso HeraldPost The Newspaper That Serves Its Readers VOL XCIII No 172 EL PASO TEXAS THURSDAY JULY 19 1973 TELEPHONES WANT ADS CIRCULATION 5321661 5321971 5J62W HOME MIDDAY STOCKS PRICE 10 CENTS 44 PAGES FOUR SECTIONS Phase Four Program Takes Effect Today Consumer Questions Answered By KOBKKT D1ETSUI Smppvllimard Stall Wrilir WASHINGTON President Nixons Phase Four Econom ic Controls Program which lakes effect today is tough comprehensive and complex It continues until Aug 12 the present price freeze on all items except food BEGINNING today food prices except those on beef may go up but under se vere limitations which gener ally will allow only increased costs of farm products to be passed along to consumers The present beef price ceil ings remain in effect until Sept 12 After Aug 12 i nduslria 1 prices may go up but again under certain restrictions These restrictions are tough er than those in effect during 1hase Two The present guideline limit on wages remains This means in general that an nual wage increases still are limited to 55 per cent plus seven tenths of 1 per cent for fringebenefit increases in question and answer form arc details of the Phase Four program Q Are Phase Four rules mandatory A Yes Violators can be fined up to S5000 per viola lion Q You say the present meat price ceilings are lifted ex cept for bed A Right Q And the beef ceilings remain until Sepl 12 A Right Q about lie present price freeze on nonnieat food items A The freeze is lifted im mediately and prices can go up Q How much A No precise figure was given by the administration But between now and Sepl 12 food prices can be raised only to reflect price increases in raw farm prodlids which never were frozen or con trol 1 e d s i n c e June 8 and Ihen only on a dollarfordul lar basis Q What does that mean A A food wholesaler pro cessor or retailer cant raise prices because of higher la or transportation or utili ty costs or any other higher costs except the price of raw farm products Nor can he lack on his own profit margin 11 the price of a raw farm commodity went up 5 per cent since June 8 then the whole sale and retain price of the product made from that raw commodity might go up 5 per cent Q What happens to food prices after Sept 12 A Thereafter food prices can be raised on a different basis but still under certain limits Processors wholesal ers and retailers can pass along all cost increases they have incurred since last Jan 2 but again only on a dollar lordol lar basis No profit markups in other words Q ft sounds like food prices will go up on a twostep basis A Thais right One reason why such a twostep cost in crease procedure was decid ed upon was to stretch out the price bulge expected alter the Presidents latest price freeze The administration wanted to make it easier on consumers Q Theres no doubt Ihal food prices will go up is there In a special state ment President Nixon had this to say The tendency for all prices to rise in the remain der of 1973 will be less Hum in the iirsl half of the year but greater than anyone would like Particularly there is no way with or with out controls to prevent a sub stantial rise of food prices However by 1974 we should be able to achieve a much more comfortable rate of in flation Treasury Secretary George P Schultz in a White House brieling on Phase Four dec lined to forecast bow much food prices will rise for the rest of 1973 He wryly Our record on forecasling food prices leaves us a little humble Why was the freeze on food prices lifted now while he freeze remains for almost another month on older things1 A The administration ob viously is worried about de clining food supplies and spot shortages especially in meat and some vegetables By letting prices rise it hopes farmers and livestock produ cers will be more inclined to expand production Q Anything else on food A More dry milk will be allowed to be imported No more farm acreage will be set aside tolimit output of feed grains cotton and wheat Q What about other prices A Theyre frozen until Aug 12 After that industrial and service prices can go up to reflect higher costs but only on a dollarfordollar basis Thai is a company can raise prices to compensate for higher costs including high er labor costs but cant tack on its own profit markup to such price increases And the base period on which higher costs arc figured is limited H Hows that A In general a company which wants to raise prices can consider higher c o s t s incurred only since early J973 or very late 1972 If a compa nys costs went np before thai those higher costs cant be used as a basis for raising prices now y Isnt hat tougher than Phase Two A It is tougher During Phase Two the base period for w e i g h i n g high e r costs gave companies a wider lati tude and they could lack on profit markups when raising prices A Will some companies have to get prior government approval before raising prices A Yes This prenolil ica lioii rule will apply to all companies with annual sales of more Hum S100 million They have to report proposed price increases 30 days be fore taking effect and in hose 30 days the cos of Uv ing Council in Nixons words may deny or suspend the proposed increase Q What aboul smaller com panies A Companies with 60 or fewer employes are exempt from Phase Four rules That is their price increases arent under the controls program limits But even these small companies must file annual reports with the Cost of Living Council Mid dlesized companies will have to file quarterly reports Q Will ihc big companies have to report wage increas es A Yes Q Do the same wage guide Turn tit Page A9 Sending Prices Budget Fight Stage Is Set Stage was set today for another bat tie of the budget between President Nixon and the Democratic 93d Condgress In his statement outlining the Phase Four economic controls program Nixon called a balanced budget vi tal to the fight against infla tion and said it is clear that several billion dollars will have to be cut from expendi tures that are already proba ble if we are to balance the budget SUCH REDUCTIONS will come hard the President said Because my original budget was right HoweverI regard it as essential and pledge myself to work for it Nixon indicate d h e w a s again ready to impound mon ey voted by Congress saying I will take those steps that 1 can take administratively to reach the goal of a balanced budget for fiscal 1974 In a briefing for reporters Treasury George P Schultz conceded he saw some bat tles royal impending with the Democrats in Congress over Nixons new budget pro posal THE DEMOCRATS and Nixon battled earlier this year over fund impoundment by the White House and dif fered sharply over the new budget which proposes to limit spending to S2687 bil lion in the year which began July 1 The Democrats in gen era have conceded the de sire to keep spending to such a limit but have protested Nixons sharp cutbacks in domestic programs while ask ing for higher defense out lays In a later talk with several reporters Schultz said it now appeared that spending pro grams being approved by Congress would exceed the S2687 billion limit by sever al billion dollars He said proposed spending on health education and welfare ap peared to be billion high er than proposed by Nixon You cant take ail the money out of defense SehulU said He contended it isnt feasible to make sub stantial reductions in mili tary spending to make up for spending boosts for social programs HOWEVER the Congress still has to consider the fiscal 1974 defense budget and the re undoubtedly will be major efforts to make some redactions Last January Nixon was far less concerned about a bal anced budgel He proposed a deficit of S127 billion for fis cal 1974 Since then however the business boom has caused federal tax receipts to soar and it now appears that treas ury income lor the new fiscal year will be about S268 bil lion in other words about equal to Nixons proposed spending limit IN JANUARY Nixon fore cast billion Nixon said his spending limit seemed to be being broached by higher interest rates new legislation enact ed failure of Congress to act on some of my recommenda tions and congressional ac tion already for advanced but not completed The key to success of our antiinflation effort is the budget the President said in his Phase Four message He also said Magruder Knew In Advance WASHINGTON UPI Frederick C LaRue testified today he believed that Jeb Stuart Magruder deputy director of President Nixons reelection campaign knew in advance that the Watergate breakin would occur in the earlv morning hours of June 171972 That would be my assump tion yes sir LaRue replied under questioning during his second day of testimony be fore the Senate Watergate Committee DURING AN appearance before the committee in June Magruder left the impression that he was taken by surprise when word reached him on June 17 of the breakin and the arrest of five persons in the Democratic National Committee headquarters at the Watergate building LaRue who agreed to plead guilty to a charge of conspir ing to obstruct justice and is expected to testify for the prosecution at any future Watergate trials put Magru dcrs account in a new light He said Magruder received a telephone call about the breakin during breakfast in Los Angeles lie returned to the table and told LaRue that last night was the night for the wiretap and bugging SEN HOWARD H Baker R Tcnn asked LaRue if he was under the impression Magru der had advance knowledge that the entry would lake place LaRue said he was LaRue said Magruder made that statement about night to me as an aside without making it to other high campaign officials who were there at the same breakfast table In his sworn testimony be fore the committee Magruder did not specifically acknowl edge or deny advance knowl edge of the bugging MAGRUDER related being with LaRue and others at breakfast in Los Angeles when he got a telephone re port on the arrests including that of James W McCord Jr hen security chief for the Nixon campaign organiza tion 1 blanched to say the least Magruder testified June 14 Paso Sunshine The sun shone today for the 146th consecutive day The Sun has failed to shineonly 15 days of the last 4118 July 19719731 Consumers Feel Squeeze TEXAS SCHOOL Rep John Whilmire Houston attempts to a member of a House Investigating committee that is investigat gain admittance to the locked up maximum security unit of the ing such schools Additional picture and story on Legislative Mary Lee School of Special Education near Austin Whitmire is investigation on page A2 UPI Photo Army Engineers Help Farmers Heavy Rains Inundate Valley Crops WASHINGTON DPI President Nixon ended the price freeze on for today He admitted that there would be a substantial increase in food prices The President also again clamped stiff mandatory con trols on wages and removed the price freeze on health services in the latest phase of his efforts to combat price and wage inflation IS NO way with or without controls to prevent a substantial r i s e o 1 food prices the President said in a statement on the economy issued in his name by the While House Nixon himself is recuperating I rom viral pneumonia at Bethesda Na val Medical Center The President acknowl edged that price increases for the rest of 1973 will be less than ill the first half of the year but greater than anyone would like Uv Luiled Press InkTnalicnnl Prices for poultry pork produce milk and other per ishables went up in many of the nations supermarkets to day and the cost of other items freed by President Nixons Phase IV program were ex pected to climb shortly soaring cost of living under control f n a companion a c 1 i o n Nixon vowed to cut several billion dollars of federal spending this year in an ef fort to balance the budget Fanners in the Valley be low El Paso today were trying to save cotton alfalfa and olher crops which were left under water by heavy rains that started last Saturday and continued through the week The affected area extends from Clint lo below Me Nary Rainfall since Saturday was as much as two feet in some parts of the Valley MANY FIELDS are under water so deep it covers the cotton stand In some places the water ate huge holes out of the fields and carried away sec tions of roads Last night Valley farmers represented by Harold Ivey asked US Rep Richard C White for help in their emer gency Within an hour Ft Bliss sent crews to start pumping out the inundated fields TODAY a platoon of men from the 68th Army engineers worked on the flooded fields and helped make repairs to a damaged road The road leading to the ThreeWay Cattle Feeders Inc at Tornillo had washed out three times Saturday Monday and last night Three huge trailer trucks loaded with grain were stranded until a washedout portion of the road is re paired E S G1LLES operator of the feed lot today directed his own bulldozer in repairs at the washout He said he has 10000 head of cattle on the feed lot waiting for the grain They have some food on hand but he especially needs to get the grain across for cattle ready to go to mar ket At one farm where an Army crew pumped a cottonfield Jake Cline said 500 acres were under water with 17 of them covered to the top of the cotton He said that part of Tornillo had received more than seven inches of rain He works for Charlie Ivey CLINE said he and other fanners in the area got up at pm yesterday and start ed shoveling in their fields They borrowed a caterpillar built a dike and by 11 am the dike had broken A contributing problem was hat many farmers had just finished irrigating their fields when the first rain hit Saturday night Farmers today had no esti mate on how much cotton may be lost The cottoncrop is already late because of a late Spring Some farmers also had to do replanting They expect their crops to be made even later because of the flooding Cotton in fields where water covers the plants will not likelv be recovered Cites Red Grain Deal Violation WASHINGTON UPI Sen Henry M Jackson D Wash said today he had evid ence the Agriculture Depart ment knew in advance about last years SI billion Soviet grain deal and that big US grain firms falsified their reports to the government on the deal On the eve of a series of hearings by his Senate Per manent Investigations sub committee Jackson said the evidence he has thus far un covered on the 1972 deal could prove that parties to the deal had violated federal laws HAVE sworn affida vits at this point that Agricul ture was advised of the sales before they occurred he told a news conference The Agriculture Depart ment has denied having ad vance knowledge of the sales Oil Companies Scoff At FTC Trust Suits M a i o r oil to m panics scoffed at the governments trustbusting efforts in the petroleum industry yester day One of the eight corpo rate giants named in a Feder al Trade Commission anti trust complaint said the gov ernments action itself could result in higher gasoline prices It is not just a question of the FTCs wanting us out of the refining business Shell Oil Cos Harry Bridges said in a statement issued from the companys Houston head quarters One senator wants us out of the transportation business A K1 o r i d a suit wants a separation between exploration and production from the rest IF ALL THESE things prevailed the industry would be split into a large number of companies all working separately and a company like Shell would have to be come four different compa nies with different sharehold ers This would be completely inefficient and would result in high prices to the consum er he said But outside the industry the FTC charge seemed to slir new complaints against the major oil companies of monopolizing and contriving the fuel shortage to jack up prices and rake in bigger profits IN PHILADELPHIA Peter Page the president of Penn sylvanias Mayors Assn called for a congressional Watergate style investiga tion of major oil firms saying they arc out to screw the independent dealers and drive them out of business VV e were conducting a major overseas war in Viet nam and flying thousands of missions and there was plen ty of gas for everybody said Page Kolliner Case Delayed by DA District Attorney Steve Simmons said today that the case of Robert E Kolliner Jr charged with murder with malice has been delayed in going to the Grand Jury be cause the DAs office is wait ing or additional informa tion Simmons said he is not cer tain whether the needed in formation is a report concern ing evidence from the Feder al Bureau of Investigation laboratory or an autopsy re purl Kolliner is charged in the death of Manuel Jesus Marti nez 47 827 Brazil place who was shot to death during an altercation in a Lower Valley bar Bond on Kolliner was first set at but later reduced to He is free under bond at the present time The defendant had pre viously been acquitted by a jury in another murder case in which Cabeil Reese 29 was stabbed to death THE STATEMENT said wages will be under mandato ry controls in Phase like those in Phase II Rents interest rates and small busi nesses with 60 or fewer work ers would be exempt Consumers should begin to see these effects of Nixons new policy prices will prob ably begin to escalate in a week as wholesalers and re tailers begin adding on the costs they absorbed during the freeze GASOLINE pump at retail service stations will be required by Aug 12 to have a sign listing both ceil ing prices and octane rating Current ceiling prices on beet slav in force until Sept 12 A number of labor leaders criticized the program Pa trick Gorman secretary treasurer of the Mealcutters said it was a new summer offensive against the consum er because it would permit most food prices to rise Paul Jennings president of the Electrical Workers said it would bring a further falling behind for working families A SPOKESMAN for the Na tional Assn of Food Chains said food prices probably would jump 4 to 5per cent between now and midSep tember Staggering the removal of the freeze also gives the ad ministration more time to plan Phase IV Preliminary rules were to be issued today covering the petroleum con struction insurance and health industries plus non food wholesalers retailers and services THE FULL PHASE IV pack age will be in place Aug 12 and will according to Nixon be a tough selective system designed lo bring the Bankers Slayer Gets Life Term Albert Garza 32 exMarine and former insurance and car salesman was sentenced to life in prison for the May I shooting murder of Border City Bank President Richard S Cinco Rogers US District Judge Ernest Guinn who sentenced Garza also added a 25 year prison sentence for Garzas having put the life of city police officer Gary White in jeop ardy during an exchange of gunfire with Ihe officer fol lowing the shooting of Rogers in a bank robbery attempt Garza whose address was listed as 9374 Sims court but who according to federal offi cials did not live there at the time of the robbery pleaded guilty May 23 to two counts of a three count federal grand jury Counts included mur der with malice placing the life of a police officer in jeopardy and attempted rob bery of a bank The last count is expected to be dismissed The terms assessed by Judge Guinn were he statuto ry maximums on both counts The statute on murder in an attempted bank robbery still carries a maximum of death but that has been eliminated by the US Supreme Court GARZA could al the earli est apply for parole in 23 years There has not been any indication that the State Dis trict Attorneys office will also prosecute Garza on mur der charges or on assault on an officer charges Inside Your HeraldPost f jjjJF EP Weather Service Forecast Partly cloudy and warmer today De tails on Page Ann Carroll Around the World Classified C 67 B 12 A 6 D 29 Crossword and Comics D 11 Dear Abby B 11 Deaths D 2 Dr BLM Conner B 2 Editorials B 2 1 5 Star TV 1 Womens News B 811
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