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Cedar Rapids Gazette (Newspaper) - August 2, 1974, Cedar Rapids, Iowa The Cedar Rapids Gazette: I'rl., August 2, 1974 Iowa's Credit Code: Among 'Toughest' in U.S. DES MOINES (AP) -Iowa’s new consumer credit code “is one of the absolute toughest in the nation, says Neil Butler, Denver, Colo., who helped draft some of its provisions. “It’s probably tho second-most consumer oriented code in the country. The one in Wisconsin is also pretty rugged.” Butler, who said he 'is the administrator of a similar law in Colorado,” said the Iowa code “places mere restrictions on creditors and provides greater consumer protection than previous state laws. The code was passed as a compromise measure by the 1974 legislature. Higher Interest It gives retailers a higher interest rate on credit sales than the 9 percent they were allowed following a state supreme court decision last September. The new credit interest limit is 18 percent on the first $500 of a revolving charge account, such as credit cards, and a 15 percent limit on amounts exceeding $500. The maximum rate on closed-end accounts, such as one-time purchases of a major appliance, is 15 percent. The allowable bank interest rate on loans for consumer purchases was raised from 12 to 15 percent, and the state’s usery limit, which primarily regulates mortgage loans, was left at a maximum 9 percent. Butler was retained by the Iowa Retail Federation to advise businessmen how to abide with complexities of the code. Seminars The federation and other business associations recently sponsored eight seminars in Iowa to show members how to comply with the law. “Debt collections are severely restricted by the new law,” Butler said. “For example, a wife probably can't even be contracted by a creditor unless she’s obligated on the contract for the debt.” The law says retailers, in granting credit, can't discriminate because of age, color, creed, national origin, political affiliation, sex, marital status, disability or public assistance. lf discrimination occurs, “the Iowa Civil Rights commission can be expected to be active,” retailers were told. Payments If a consumer falls behind in payments, he has the right to rectify the matter once in every 365-day period. A default in payments in this area is defined as failure to make a payment within ten days of its due date, or failure to abide by other contract terms. Creditors may not speed up the payment due date or repossess goods until 20 days after a proper notice has been given. Methods of collecting debts was one of the main subjects of the seminars. Retailers were told one section of the new law “is much more detailed in its prohibitions” of steps formerly taken to rectify bad accounts. Debt Collection The seminars said these pitfalls of debt collections under the new law should be avoided: Posting bad checks or lists of bad check passers where the public can see them. This was described as “a clear violation” of the code. Parents or guardians of a minor who owes a debt that’s in arrears can be contacted only once every three months. Inquiries from a debtor’s spouse who is not primarily liable for the debt can be freely answered, but the collector can’t initiate any contact with the spouse without prior permission. Contracts with other persons about the debt must be justified, such as reporting the debt to someone believed to have a legitimate business need for the information. If a clear need doesn’t exist, the creditor shouldn’t make other contacts Guidelines Retailers were provided these general debt collection guidelines which said a creditor: May notify or contact anyone reasonably thought to be liable for the debt. May report the debt to any one with a legitimate business interest. May verify a debtor s em ployment only once a month with the employer. May contact the employer or credit union only once every three months for debt counseling services. May not indicate to other persons that a debt is being collected. May not make threats of violence or of legal remedies to which he is not entitled. May never make a false fraudulent or misleading statement cr threat. Beyond these guidelines should consider contacting a collection agency or attorney. Eight Sleeping Escape Injury as Houseboat Sinks CORALVILLE - A large hou seboat owned by Ralph Gordon, mral Marion, sank in the Coral Ville reservoir late Thursday night. All eight persons sleeping aboard the boat were rescued shortly before the 40 by 16 foot steel hull craft went to the bot-ton of the reservoir across from the Sugar Bottom campground. A guest aboard the craft noticed water seeping in at approximately 11:15. Gordan and friends rowed ashore and campers in the area helped to put boats in the water to bring other members of the party ashore. i The upper portion of the craft, valued at about $6,000, is visible. The cause of the sinking has not been determined. A Relic of the Past Abandoned farm houses dot tho Iowa countryside, as the trend over recent years has been toward fewer farmers working larger farms. This aging structure, seen along highway 149 about 12 miles south of Williamsburg, illustrates the passage of time. J:    n    I? Possible Iowa County Move Goula Delay    .    . lo Flood Insurance been Gov, Roy Asks Disaster Society To Present k i .. t i    Centennial    Award Declaration tor Iowa DES MOINES (AP) - Gov. Robert Ray has asked! U.S. Secretary of Agriculture Earl Butz to declare the entire state a disaster area to aid farmers hard hit by adverse weather conditions. In a telegram Thursday to Butz, Ray said he wanted the declaration to cover the whole state in order to trigger an evaluation by each county’s federal disaster committee. Response to Ray’s request is expected to be made in the form of county-by-county disaster designations. Even in some counties where averages indicate close-to-normal crop yields, he said, “we have reason to believe that individual producers . . . have experienced severe Residents Got Gravel; Hadn’t Asked For It crop losses as a result of significant rainfall shortages.” A disaster declaration would make farmers in affected areas eligible for low interest five percent emergency operating and crop loss loans. Ray is to visit Cass, Mills and West Pottawattamie coun-tise Friday fo ra first hand look at severe drought conditions in southwest Iowa. In his telegram to Butz, Ray said a county-by-county survey already conducted indicates that “crop losses are already total in some instance and of extremely high amounts in many others.” The governor promises the cooperation of state agencies and local officials “in the necessary follow-through to see that federal assistance is made available to our farmers following a disaster declaration.” WEST BRANCH - The Iowa Engineering S o c i t y ’ s newest award, the Herbert Hoover Centennial award, will be presented Thursday to an engineer in recognition of outstanding service to the profession and contributions to civic and humanitarian endeavors. Making the presentation will be Allan Hoover, son of the former President. It is planned to make this the Iowa Engineering Society’s most prestigious award. It will be presented only once every five years. The recipient will receive ai plaque, a duplicate of which will remain in the Hoover Presidential Library of which will be inscribed the names of the people to whom the award is made. The Award Convocation will be held in the auditorium of the Hoover library at 6:30 p.m. Dr. Joseph McCabe, chancellor of Coe college, Cedar Rapids, will deliver the featured address, “Slander and Vindication”, Homosexual Dances in MARQUETTE - The road in Chute!) Halted by 0/OC6S6 Bickers addition to Ridgewood IQWA clTy _ ^ Gay Li^jga^ ^ manefestly inappro-, received 200 feet of gravel by era^on Front, a homosexual priate” for Center East to be order of Marquette officials, a1- gn)Up accredited by the Univer- used for such purposes, though residents said no requestifit of Iowa wlU evidently no, Before the vote of the lay: for gravel has been made i°r; longer be able to use Center co u ne ii took place, other three years.    j    gast for further dances.    I members noted homosexuality Addition property owners are ]n a vote o{ the Davenport & against Catholic theology and seeking separation from Mar- Diocese lay council this week, a allows such dances to occur is quette, and a suit, contested by resoiution was adopted that creating confusion as to the Marquette, is scheduled to be I (a, promescuity or homosex-lurch's position.. heard Sept, 3 in Clayton countywj|, proh,bil(,d from-- district court.    usinff diocesan facilities for Services Scheduled Residents claim that furthering their beliefs.    Fftr    e    u«>n»h Marquette has not supplied the    .    ,    ror Kay J. Hearn gravel, homeowners have paid    Gay    Liberation front has WEST liberty _ Ray, S. to have gravel hauled and' a numher of dances in Heath, 77, a West Liberty bank-placed on the road when they ^nter Ea^ which receives er died friday morning in felt it was needed.    I    ^un(^s ^rom the diocese.    Mercy hospital in Iowa City. Marquette officials said, how- The Center East    complex    Mr.    Heath had served as ever, that a recent routine j houses a    number of    university    former    secretar> and member street inspection had indicated and city organizations. The of the West Liberty board of cd the need for gravel in the area/building formerly was occupied ucation, was a member and and that it had therefore been by a Catholic school.    past-president of the West Lib- ordered and spread.    ! Members of the lay council in erty Rotary club and was a Ridgewood residents maintainiDavenport stressed that while former commander of the that to the best o* their know- they did not criticise the gay American Legion, ledge no Marquette police pa- liberation    movement itself, they    He is    survived by his wife, the trois or trash collection has did not    feel social    activitiy;    former    I^eota Kerr; one daugh- taken place in the area.    should be held in the same ter; Mrs. Thomas M. Collins,: Ridgewood is located above I place where mass is held.    Cedar Rapids; and four grand-j McGregor, and can be reached Mass is held at the facility for children, only by a road leading up to the students and other community Services are Saturday at 3 at hilltop from First street in Mc- members.    j the West Liberty United Meth- Gregor—some two miles away! An Iowa City member of the odist church. Visitation Friday from Marquette.    lay council, Mrs. Wayne Tcgler, evening at Snider’s. Busing Plan DES MOINES (UPI) - The I problem of dividing up the insufficient $4.4 million to bus parochial students in Iowa’s 450 public school districts has become further complicated by the appointment of two new members to the school budget review committee. Monday, four weeks past the legal deadline, Gov. Robert Ray announced the appointment of Enid Davis, of Keokuk, and Edgar Gates, of Mason City, to replace two outgoing members of the committee. At least one department of public instruction (DPI) official feels that the late appointments could further hold up progress in administering a new Iowa law to bus the state’s parochial students. Financial Problems Tom Wiley, DPI budget review consultant who has worked with the new law since its ratification, said there already are major fi- j nancial problems. In addition, he said, trying to orient two new committee members to the complexities of the matter could further delay implementation of an overall busing plan. The law, passed by the 1974 legislature, was to have taken effect July I. However, Wiley reported, because of financial and logistical snarls, it may be September, 1975, before the law actually takes effect and all of the state’s parochial students are provided adequate transportation. Second Hearing A second hearing will be held Monday for 28 more school districts to present their fund requests for buses to the DPL Obviously, Wiley said, a formula for distributing the $2.2 million available for buses was to have been decided at the Monday meeting. But, he said the appointment of the new’ committee members throws a wrench into that plan. Much of the time now, he said, probably will be taken up explaining the situation to Mrs. Davis and Gates. Decision Doubtful Special to The Gazette MARENGO - Williamsburg, Iowa county and several towns near here may soon be forced to approve federal flood insurance, according to a regional planning official. James Elza, executive director of the East Central Iowa Assn., of Regional Planning Commissions, met with the board of supervisors Tuesday to outline the probable requirement for the county to declare for federal flood insurance in order to continue to obtain other types of federal funding. He also listed Williamsburg and Ladora in addition to Marengo as flood prone areas. Elza explained that communities which don’t approve the federal flood insurance run the risk of not only losing out on the insurance itself, but also of imperiling tother forms of federal assistance, including such items as PHA guarantees of home loans and perhaps even Federal Deposit Insurance Corp. coverage at local banks. Information Meeting The supervisors directed Elza to set up an information Comprehensive Attack On Economic Ills Asked By Harrison Weber DES MOINES (IDPA) -Representative John C. Culver, Democratic candidate for the U.S. senate, is calling on congress to launch a comprehensive attack on the ills of the nation’s economy, with priority going to cuts in the Congressman John Culver Wiley said although the two were sent background data and the minutes of the last meeting, he doubted that the committee could make a decision Monday on the funding formula as the school districts had been dismissed. “With the new members we don’t kilo v what could happen, but probably the discussion will go on until 6 p.m. and then it could well be there will have to be another meeting,” Wiley said. defense budget* and to a combination of tax reform and tax I relief. “The Nixon administration has landed us in the worst economic mess since the depression,” Culver charged, singling out “stop-go controls, disastrous ventures like the Soviet wheat deal, and the total failure to anticipate and plan for shortages of fuel and other vital materials.” The Cedar Rapids Democrat said congress is taking an important first step to remedy matters by creating budget committees that will set spending ceilings and reconcile tax revenues with appropriations. Establish Priorities Culver urged this new procedure to be used to establish budget priorities and to attack both inflation and unemployment. “I think the defense budget is where we should slash spending first,” Culver declared. He pointed to the B-l bomber, the Trident submarine, and “excessive overseas and flag-rank forces” as candidates for economics which he said could readily total $5-or-$6 billion. Tax reform is another priority matter, Culver contended, calling for eliminating $4-or-$5 billion rn “preferential arrangmemcnts,” such as foreign and domestic oil depletion, the misuse of the foreign tax credit, accelerated depreciation, and “hobby farming.” He said some of the resulting tax income from such programs should go toward reducing taxes on lower-income and elderly citizens. “We must do everything we can to equalize the heavy burdens of inflation,” he said. ‘‘Other matters needing prompt attention, are: “An increase in public service jobs and greatly improved manpower training; a pointed attack on administered pricing and other anticompetitive practices, passage of the trade reform bill and agreement on international monetary reform, more selective channeling of credit to the housing industry and meeting both for the county and other local officials to hear the federal administrator of the program sometime soon. Marengo already has moved ahead quicky to approve the flood insurance. Marengo was the first area of the county to be officially declared “flood-prone.” Elza said that after July I, 1975, the opportunity to join and obtain the flood insurance will expire. He said several requirements are put on cities and counties that go for the flood insurance. This includes a building code system, a building inspector and a form of zoning in flood planes. Have Requirements The supervisors, who have had a committee working on county zoning for several years, noted it might be possible to simply zone flood-prone areas as such at this time without committing to county zoning. Most cities, like Marengo and Williamsburg, already have building permit requirements, and Williamsburg has designated City Supt. Richard E. Wardenburg as city building inspector. Federal flood insurance was enacted by congress In 1968 in response to flooding caused by the hurricane that swept I through the eastern United States including Pennsylvania and New York. DamagesTotaling $165,000 Asked in Buchanan Suit INDEPENDENCE — A suit asking damages totaling $165,000 has been filed in Buchanan county district court here by Marilyn and Wayne Weber of Buchanan county. Defendant in the case is Nicholas Clark Madison, Independence, as executor of the estate of Stanton W. Madison. According to the petition Marilyn Weber was driving a car on Aug. 21, 1973, about four miles northwest of Quasqueton on a county road when a flock of geese, owned by Stanton Madison, walked onto the highway. In an attempt to avoid hitting the geese, the plaintiff drove into a side ditch and was injured, the petition said. The defendant was negligent in not keeping the geese off the road and in failing to warn those using the road of the presence of the geese, the suit said. Mrs. Weber is asking $137,500 in damages. Wayne Weber seeks $27,500. Vote Mississippi Swimming Ban DUBUQUE (AP) — The Dubuque county health commission has voted to recommend a ban on swimming and water skiing in a 10-mile stretch of the Mississippi river south of Dubuque. The action came during a special meeting Thursday night as a result of high bacteria counts in the river near the Massey marina. Thirteen persons who were swimming in that area are suffering from shigellosis, an intestinal disorder. Dr. Kenneth Hazelett, a KKrth Birthday DAVENPORT (AP) - An open house was held Thursday.county health official, said the lat the Americana Nursing ban would probably be lifted other    small    business,    and    ac-    center in Davenport for Albert    when tests indicate a    safe    bac- tion    to increase supply    of    Allen who celebrated his 100th    teria level. birthday. Allen is reportedly the The commission said it would only surviving veteran of the maintain continuous testing, tism.    The    American    people    |Spanish American war who    post signs and recommend    that went over the hill with Teddy    people not swim in the    area. Roosevelt in 1898 and fought in* However, the commission has CuDa with the 1st cavalry. no power to enforce the ban. basic commodities. “This is no time for defea- expect enlightened leadership to devise and carry through solutions.” ;

Clippings and Obituaries for the Cedar Rapids Gazette