Aiken Standard (Newspaper) - October 16, 1989, Aiken, South Carolina
Oakland Takes 2-0 Series Lead
Page 5AA Quick ReadElvis Fan Heads For Graceland Today
MEMPHIS, Term. (AP) - The first person granted a visa from the Soviet Union just to visit Elvis Presley’s Graceland arrived in the United States. Wearing blue suede shoes.
“I am ambassador of Russian rock ’n’ roll,” Kolya Vasin told about IOO well-wishers when he arrived at Memphis International Airport on Sunday night. ‘‘For 30 years I love rock ’n’ roll. I am happy to be here today.”
It was the first trip outside the Soviet Union for Vasin, 44, whose visit was arranged by a British fan club. Traveling with 79 Elvis fans, mostly from Britain, he planned to visit Graceland, home of the late King of rock ’n’ roll, today.
The Leningrad resident, who organizes rock concerts, said official disapproval has left Soviet Elvis fans pretty much on Lonely Street.
“Many many people want more information about Elvis, but in Russia is very little information about Elvis,” he said in accented English during a stopover in Boston. “This is great problem. There is a problem with black market and underground information between people: no LPS, no books, no posters or any information.”Girl Upsets Town With Noriega Visits
NEGAUNEE, Mich. (AP) - A schoolgirl’s friendly visits with Panamanian pen pal Gen. Manuel Noriega have her neighbors and her congressman shaking their heads.
“If it was my daughter, she wouldn’t be going,” City Councilwoman Virginia Paulson said after 11-year-old Sarah York left last week for her second trip to Panama.
On Wednesday, Sarah and her father turned up beside Noriega as Panama’s military leader lauded her as a “meritorious daughter” of Panama City and an example of “the truth of the United States, purity not hatred.”
After her meeting with Noriega, she repeated her support for the general. She said he’s “very nice” and she doesn’t believe “the bad things newspapers in the United States say about him.”WeatherMore Clouds
Mostly cloudy skies are forecast tonight and Tuesday with a chance of showers and thunderstorms. The low will be in the 60s with highs in the 70s. Please see Page 12A for details.Deaths
Clarence G. Bentley, Lincolnton, Ga.
John B. Byars, Aiken
Sadie D. Gantt, Washington, D C.
Lassie C. Garrett, Warrenville
Vira L. Hall, Aiken
Myrtice Haywood, Bath
Bowman C. Rinehart, Graniteville
Minnie B. Rust, Aiken
Nezzie K. Swartz, Wagener
Traci M. Trotter, Ward
Please see Page 12A for details.Inside Today
Monday, October 16, 1989
Staff Photo By Scott Webster
GIVING SERVICE: Daryl Herrin, a lineman for SCE&G, works on providing service for a new house in Johnston.Helping HandBarnwell Residents Aid Hugo Victims
By PHILIP LORD Staff Writer
BARNWELL — The efforts of residents from Williston, Blackville and Barnwell are helping to make the lives of the poor and elderly in Cross who suffered losses due to Hurricane Hugo a little better.
The volunteers, who started working soon after Hugo, are using donated funds and materials to winterize the houses of residents who cannot afford to have workers repair the damage caused by the destructive storm that raked accross the lowcountry.
“We are not trying to force anybody from the county to work in Berkley County,” said Sam Tumipseed, a spokesman for the effort. “We are trying to coordinate the efforts and allow more people to be in a situation where they can contribute.”
In additon to funds and materials, the group is taking volunteers and making weekend trips to the town to work on houses damaged by Hugo, he said.
Two crews from the area went to Cross on Oct. 7 and winterized two homes in the area to make sure that the residents were ready for the soon-to-arrive cooler weather.
Volunteers who are experienced electricians or carpenters are needed to help with the Barnwell area effort, Turnip-
South Carolina Recovers
Hurricane Hits Texas...................Page 8A
Class Studies Hugo.....................Page 1B
seed said. General laborers are also needed to help winterize houses for the poor and elderly.
“So many times, something like this is like a funeral,” he said. “If your wife dies, people come console you for a while and then after a few days they are gone and you need help.”
“These people do need help,” Turnip-seed said. “You can see evidence of emotional scars that this thing has left; particularly on older people. It’s tough,” he added.
Soon after Hurricane Hugo ravaged the South Carolina lowcountry, residents
(Please See HELPING, Page 8A)
Aiken, South Carolina
Vol. 122 No. 257
Stocks Plunge In Early Trading
By The Associated Press
NEW YORK - Stocks began to fall sharply in early U.S. trading today, echoing declines overseas in the aftermath of Wall Street’s Friday the 13th scare.
The Dow Jones average of 30 industrial stocks was off 5.74 at 2,563.52 in the first few minutes of trading, but the number was not an accurate reading of the market because only eight of the 30 stocks had begun trading. The rest were delayed because of a crush of sell orders.
The Dow Jones average had plunged 190.58 points on Friday in the worst decline since the Black Monday crash of Oct. 19,1987.
“We could go down a lot —- maybe even IOO points... but the mood certainly is not what it was in ’87,” said Hildegarde Za-gorski, a vice president at Prudential-Bache Securities Inc.
In Tokyo today, stock prices suffered their largest loss this year; by midday in London, thery were down nearly 9 percent. The dollar’s value also sank.
Other foreign financial markets posted declines ranging from moderate to large. But overall, overseas investors did not send share prices reeling as after Black Monday 1987.
“There isn’t the same panic as there was during the 1987 crash,” said Bob Wade, joint head of market making at Robert Fleming and Co. in London.
On the Tokyo Stock Exchange, the Nikkei Stock Average of 225 issues closed at 34,468.69, down 647.33 points, a drop of 1.8 percent from Friday when the index rose 329.97 points. The previous biggest decline was 484.11 points on Sept. 26.
At midday ir jLoadon, the Financial Times-Stock Exchange 100-stock index was down 195.8 points, or 8.8 percent, at 2,038.1 in heavy volume. Prices failed to sustain a morning rally sparked by bargain-hunting.
Shares fell sharply on other European exchanges, then stabilized. In Amster-
Fed* Ready To Act......................Page 2A
Overseas Activity ............Page 8A
dam, a limit was imposed on price declines, and in Milan and Paris, trading in some shares was suspended because of insufficient buying orders.
In Brussels, an unusually heavy volume and order imbalance delayed the start of computer-assisted trading by an hour.
In European currency markets, the pound was quoted at $1.5785 at midmorning compared with $1.5625 late Friday.
The dollar opened in Tokyo sharply lower than its Friday closes of 144.00 yen in Tokyo and 142.05 yen in New York. But it quickly picked up more than a yen and was trading at 140.75 yen in the late afternoon.
The Tokyo trading was the first major foreign market reaction to Friday’s 190-point plunge in the Dow Jones industrial average, the worst setback since the 508-point dive on Oct 19,1987.
The New York Stock ExFiange decided to open its computers to receive orders at 7:30 a.m. EDT, an hour earlier than usual. Thousands of worried investors during the weekend called sell orders into their brokers.
The exchange also decided to expedite smaller orders at the opening.
State Tax Burden High Compared To Income
By The Associated Press
CHARLESTON — South Carolina’s taxes may be relatively low in the South, but the state’s low per capita income makes the overall state tax burden the 12th highest in the nation, according to figures from the U.S. Census Bureau.
“Basically, our economy is run by some pretty low-paying income jobs” in such areas as tourism, agriculture and textiles, said Caroline Stroebel, a tax professor at the University of South Carolina. “Until you’re able to get the educational system up and you’re able to attract industries that require a higher level of education, your per capita income is going to remain low.
“South Carolina’s tax system at this juncture is extremely comparable with what you’re going to find in the adjoining Southern states, she said. “And you’re going to find as a region, the Southeast pays relatively low taxes.
“Where the problem comes in is our per capita income is very low,” Ms. Stroebel said.
As a result, the census figures show the state’s residents rank 12th nationwide in the amount of per capita income paid in state taxes.
“We’re high on taxes and low on income,” said Thomas C. White III, an associate professor of accounting and taxation at the College of Charleston.
Basically, our economy is run by some pretty low-paying income jobs.’
— Caroline Stroebel
“That’s an unbeatable combination, especially if you’re poor.”
In 1988, residents of the Palmetto State had an average income of $12,764. They paid $984.31, or 7.71 percent of their income, to the state.
“South Carolina has been a poor state in terms of income,” said Vicki Jinnette, spokeswoman for the state Tax Commission. “But our services don’t stop — we’ve got lots of kids who need to be educated, lots of roads that need to be traveled.”
South Carolina, like most states, relies on personal income taxes and the sales tax to raise most of its revenue.
In all, about 70 percent of its tax revenue comes from income and sales taxes;
9 percent from gasoline and motor fuels taxes; and 6 percent from corporate income taxes.
The remaining 15 percent is from all other taxes, including levies on accom-
(Please See STATE, Page 8A)
Gramm-Rudman Spending Cuts Take Hold Today
By The Associated Press
WASHINGTON — Automatic federal spending cuts totaling $16 billion take effect today, with a single stroke of President Bush’s pen, following the failure of Congress and the president to agree on a deficit-reduction plan.
The cuts mandated under the Gramm-Rudman balanced budget law formally become permanent when Bush, as required, signs an order activating them.
The reductions, spread evenly across many defense and domestic programs, are expected to total about $8.1 billion for defense and $8.1 billion for domestic ini
tiatives. That works out to reductions of about 4.3 percent in defense programs and 5.3 percent in domestic agencies.
The cuts are expected to be rolled back as soon as Congress works out a compromise deficit-reduction bill. The Senate approved its version of the measure late Friday, and House-Senate negotiators could begin their meetings this week.
But Richard Darman, director of the White House Office of Management and Budget, said Sunday it might be best if Congress left the spending cuts in place instead of rolling them back.
“This time, if it goes into effect, I think it would be good if people would live with
it and say, ‘don’t restore the cuts,’” Darman said on the ABC-TV program, “This Week With David Brinkley.”
Automatic budget cuts took effect in 1986 and 1987 as well, but Congress acted quickly to restore the lost funds, a process that Darman called “phony.”
The reductions are not expected to be felt by many Americans, at least initially.
“It affects a relatively small number of people in our society, and affects them in a relatively small way,” Rep. Bill Fren-zel of Minnesota, ranking Republican on the House Budget Committee, said last week.
The automatic Gramm-Rudman cuts, when the law was enacted in 1985, were intended to seem so horrific that Congress and the president would be frightened into cutting the federal deficit in order to avoid them.
It didn’t quite work out this year.
The law requires a projected deficit for fiscal 1990 — which began Oct. I — of no more than $100 billion. If the projected shortfall exceeds the target by more than $10 billion today, the law automatically triggers cuts in spending of whatever is required to slash the figure to $100 billion.
(Please See GRAMM, Page SA)