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Cedar Rapids Gazette (Newspaper) - December 19, 1974, Cedar Rapids, Iowa Weather-- Cloudy through Friday with choice of snow. Lows tonight in teens. Highs Friday in 20s. VOLUME 92 — NUMBER 344 NEW BJ ti p itta (!) CEDAR RAIMI'S, IOWA, THURSDAY, DECEMBER 19, 1974 CITY FINAL IS CENTS ASSOCIATED PRESS, UPI, NKW YORK TIMES Report: No Taxes on 10 Giant Firms WASHINGTON (AP) - A staff study by the congressional joint committee on internal revenue taxation reports that IO 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 Wednesday by Rep. Charles Vanik (D-Ohio) found that another 20 companies with profits of $5.3 billion had an effective federal income tax rate of between I and IO percent. The committee staff report was based on an examination of data filed by 160 large comj> nies with the Securities and Exchange Commission. Nothing Illegal Vanik, in releasing the study, said the companies paying little or no income tax had done nothing illegal. “They have simply taken advantage, quite effectively, of the multitude of tax subsidies which have been enacted into the tax laws over the years,” said Vanik, a member of the house ways and means committee. The large corporations reported to have paid no taxes included UAL Inc., which owns United Airlines, and Trans World Airlines. UAL earned $98.7 million last year, the committee study said, while TWA recorded earnings of $58.6 million. The other eight companies! Final Approval for Public Service Jobs BULLETIN WASHINGTON (AP) - The senate Thursday rejected a $5.5-billion federal spending cut by a 61-31 vote. New Linn Attorney To Direct Jury By Mike Deupree Linn county’s newly-elected Senator Jackson (I)-Wash. I said Ford administration insist-; ence that natural gas prices be decontrolled has killed any I chance that congress will pass! emergency energy legislation WASHINGTON (AP) - this year. Congress, acting to combat the Congress sent to the White unemployment that now affects House a bill to regulate the gov- county attorney left little doubt nearly six million Americans, ernment’s collection, mainte- Thursday a fifth official inve&-has passed a bill authorizing nance, use and dissemination of tigation will be conducted into 330,000 public service jobs. I information about individual cit- allegations of illegal activities The $5 5 billion bill cleared izens.    by Cedar Rapids police officers, both house and senate on By voice vote, the house And Eugene Kopecky, who Wednesday and went to Pres-passed and sent President Ford succeed William Faches as ident Ford for his expected sig- an international air transit bill the county’s top law enforce-nature. The bill also extends designed to reduce alleged ment official next month, em-unemployment compensation to foreign discrimination against phasized he hopes his investiga-those not covered by existing u. S. airlines. Before passage i ti°n W*N be the last one. programs, such as farm labor- the house abandoned a con-, “I have every intention of ers, domestics and government troversial amendment oppo-employes.    nents claimed was a disguised Despite the bill s $5.5-billion multi-million subsidy for finan-authorization, the senate voted cially ailing Pan' American Thursday to appropriate $5 bil-! World Airways. lion for the program. Wednesday voted a The house $4 8-billion pursuing this and getting to the end of it as quickly as possj-ble,” Kopecky said in a news conference Thursday. “In all likelihood, the case the house passed wil1 8° back to the grand jury.” Allegations of electronic eaves- —UPI Telephoto 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. By 363-32 _    ....    .and sent President Ford legisla-. appropriation. The money bills yQn establishing uniform rules (iroPPinf?’ misuse cf public prop-now go to the house-senate con- of evidence for federal courts. erty’ illegal breakins and other iference committee where a (.uiminatm0 mor« than n voar<? violations of constitutional guar-quick compromise is expected. of'studv k mdn y jantees during criminal investi-The house was expected to ^ ^ d , irrigations first surfaced more than manufacturers to a year ago. Granted Immunity Industry Men See Rollbacks By U. S. Steel Jobless Claims Rise; Personal Income Drops Lawyer Sentenced in Nixon Papers Deal ward Morgan, a lawyer who WASHINGTON (AP) — The;pounced 6,000 more layoffs illegally back-dated the deed PITTSBURGH (AP) — Manyjnation’s economy has turned in Wednesday and will have 91,000 lurning Richard Nixon's presteel industry leaders say pri-ianother set of distressing sig- of its employes out of work by; ...    . ™lva'e!y <hat they feel U. S. Steel nab. More Americans face the'the end of January.    pres.dentia papers over to the cited by the study as paying no I ^ _ jn ^ ^ of whitely of jobs, personal Income i>| Payments Balance    government, was sentenced House anger, may have to roll down and the nation’s balance.    Thursday to four months in pris- back at least some of its newly of payments position has deteri- d be government    also an-    on and 20 mon(bs probation. I orated    I    nounced    that    the    U.    S.    balance i> I Tho oiAomv oponAmih inHira °f payments in the third quarter Morgan, 36, pled guilty r<S’ re WorfneJav were ted he altered the second largest deli- Now. 8 to attempting to obtain take final action Thursday on another measure authorizing, „re^ul!'^ $1.1 billion to extend the period sPe I he meaninS of a wal/| for paying jobless benefits to ra[*ty_}jaccompanies a prod-    conducted an inves- 52 weeks.    ■    ’    s    house    tigation of the charges. His re- . ... „...    on a 70 'j v°to, provides that a sajd ^ere was basis for in- Anti-Poverty Bills    manufacturer    who issues a “full dictments on some of the allega- Democratic    leaders    were    warranty would have to make    Rons, but he would not seek inpushing for final adjournment    of    dear he will replace the prod-    dictments because he had grant- uct or repair any malfunction or    ecj immunity to some witnesses defect within a reasonable I    jn order to bring out what he considered more important constitutional infractions. the 93rd congress    by Friday night, with some    expressing nr icu.Mr»A»T / *r»v PJ I hope the windup might be possi-1 period without charge. WASHINGTON (AR) - Ed-1 b|' |a(e ThursdaFy „>ht    ,    - Both chambers planned to    AA4r    ll"ll* complete action on    legislation    ShJQ    Mf I    (lf)ll extending anti-poverty programs but phasing out the Of ii A r*pl Ack Pf! fice of Economic Opportunity,    Mw"    VVI the anti poverty agency.    9%    HOI The legislators sent to the By 0(316 UU 8 $2 7    * After the Faches report, Linn District Judge William Eads called the investigation, and the possibility of indictable offenses, to the attention of the taxes alone with their iQ7ivu,»;* 1,1 l,R* 1Q'-C Ul "n*«- *«■>    r-''.-.       payments    Balance    ~    .    if ti Vtft A Hill    county    .rand jury, telling the earnings ire*    House    anger, may have to roll down and the nations balance    I hursdav to four months in pris- The legislators sent to the Oy 0(316 Ok 8    jurors    they had an obligation to back at least some of its newly of payments position has deteri-j "he government also an- on and 20 months probation. White House a $2 7 billion    return    indictments if the evi- No Taxes    announced price hikes.    orated.    |    flounced    that    the    U.S.    balance    ■ ^ n 3g -d -j. ^foreign aid authorization bill DES MOINES (AP) — The jdence warranted. Consolidated Edison cf New And one insider said Pres- The gloomy economic indica-j    INnv- fl to attemntina to obtain vv^c*1 would allow military aid state department of public in- At Eads’ request, Attorney York, $203 3 million; American idcnt Ford’s angry reaction tors Wednesday were led by a .    ,    ,    rp«jnit    nf    *    .    ...    *or    Turkey to continue until struction presented budget re-Gen. Richard Turner named one Electric Power Co., $194 3 mil- staved off - at least for the j government report that « 000ff Jf ^    more federal income tax deduc- Feb 5    quest* for the next biennium to-'af his assistants, Garry Wood- lion; Freeport Minerals Co., moment — similar price hikes persons began filing new claims r: J- hillinn comnared t*°ns ^an were $23 96 million; Texas Gulf Inc.,(planned by several other major Tor unemployment insurance    J_______ p    former President (Continued: Page 3, Col. 8.) Nixon’s wife, Pat. the I government report due However, leaders decided not taling $915.6 million as Gov. ward, to direct the grand jury and to try to pass a foreign aid ap- Robert Ray started hearings on as special prosecutor in the propriations legally Nixon $67.4 million: W’estem Bancorp, producers, including No. 3 Na-benefits during the first week of, (Continued: Page 3, Col 8 ) Nixon’s wife. Pat.    propriations bill in the closing the money requests of various case. $97.7 million; Chemical New tional, No. 6 Jones & Laughlin December.    J____________________________!---------------hours of the session but instead state departments Thursday.    Different    Conclusions York Corp. $74.7 million; Bank-and No. 7 Inland Steel.    The    claims,    representing a«i ^    .    is • I    f    to fund the program with a con- The department asked for a After an investigation stretchers Trust New York Corp.. $51.7 So far, only 13th-rankcd CF&I increase of 169.500 over the pre- (J lf/y Pf Prf/Q JR fnf    tinuing resolution based on pre- $94,714,785 increase for the 1975-|ing oVer parts of R,ree calendar million, and Contenental Illinois steel Corp of Pueblo Colo has vious wcek- were in addition tow**,TWf *    ■    V10US allotments.    76 fiscal year over its present quarters the grand jury Corp, $105.8 million.    (followed    top-ranked U. S. Steel the 2.982.600 persons who a1- I/;    ,    XA/1 • *    ^'budget    year,    which ends next reached conclusions far dif- The second 20, and their effec- m raising prices    read>' were receiving jobless V !S!T • O tv ll HQ si OU 56    i'ouse Wednesday and was sen: June 30 Its 1976-1977 fiscal year ferent from peaches. The jurors Uve rates of income taxation. Ford decided Thursday to de-1 benefits during the last week in    4. .    .    .    ...    Jo the senate.    request is $55.,885,321 more than commended s e v e r a i former were:    mand a justification of the CF&I November.    ;    W    ASHINGTON,    D.C.    Sen.-Mr home in'    55-M.P.H.    Umit    li ls ask,nS for fiscal 1975-1976 command officers who were cri- International Harvester Co., increase. He had previously de-    Income Decline    elect John C. Culvers first    Becca    p.t    Dr.    Robert    Benton, state su- ticized by implication in the (0 05), Kvnnecolt Copper Corp.:mandcd a justification front U.l    .    P™™»ee at a White flou.se so- dixpatched the tie by tax,.    penntendont of public ioxtruc- Fache* iqiort.^ond indicted xix (04), LTV Corp. (12). Anacortes, steel.    W,'th    ™»re P*r*0B* «o‘ of etal function ditto! come off The Cedar Rapids l^mocrat ^odnwday were a    tion. said tile major components present or former |»lice officers da Co. (1.4). Occidental Petrole- “|fs a bad time for price jor. ' °v^r.a '*rsfn,a 'O''0"11' without one small hitch.    and his wife stood across the j ‘8J' 1    >* 81* P® ‘ of the increase are in general who had been key witnesses in urn Corp. (1.8), Texaco Inc. increases.” one source Id.H^ “J?**? dunn« Although Culver has served street from_ the White House^^-hour "a;‘»na'^ foundation aid to schools. area the Faches inv^tigation. (2 3). Chase Manhattan Corp. ‘ The market is softening, and I vt™bcr‘ or *2.2 billion at an an- ten ycars ^ congress, President waiting for its arrival. The taxi limi> a *•> billiMi mihtarj gch^ general aid and capital! The indictments were for pcr- Bual rate, according to the com-Ford., Tuesday night christ-ibill was $8.    construction aPP^nati(^ bill. funds ,s ^ $), mjlHon_'' )ur>. obstruction of justice and Par,y ,0r mombor\of,,h°! Culver said the party mood ID ^onaNowiM^ier The estimated $6»-mfllkxi (conspiracy in coonectkm with nenvnt or *7 hillinn the nm ^ousc ‘m(* senJ'jc ttas '    was friendly and festive.    trucks in on interstate high- foundation aid increase for the|an alleged attempt to injure the percent, or $7 billion,    the pn such event Culver and many    ...    ^    he    was    K h a a first year of the biennium hi1 reputations    of other police envious month.    other congressmen had been in-1    ,    wnen    ne    was    ways a step branded    as a nrsi year or inc oitnmum, ne . -    “2* dTrtmeu ^ to aRend    &    T •** %    t    SeCl 7d^f rmuTw to wSnesday. h o w e v e r. the Withdraw ^^ttnltsfm^^ “«« »< ««» - »"    ^    ‘our,    ordered fell 2 5 potent    ,old    ^ Gasette. ^ was no montion that    fcSSSTL    £ssibi%    of    -o anything abo,!,    thos,- ,odic,nurnt.s se, aside be- When his wife, Ann, pressed |ess than two months earlier accidents.    He    said the $l8-million capital Cduse’ ine F011” sa , * ine tuxedo earlier in the* day, Ford was jn iowa campaienini:    The house nassed and sent to funds request is to take care of,Ju.ry was lmProperly extendea increases,’ one source said. I “The market is softening, and I (2.5) Gulf Oil Corp. (3.1), Mc-(just thought U, S. Steel's new Donnell Douglas Corp. (3.2>. jPric^s were out of line.” Standard Oil of Ohio <3.5), Ll Another source said, “I would Paso Natural Gas Co. NJ), Mo- j expect sometime in tin? next bil Oil (5), I iii royal, Inc. (6.5),,few days pj. S. Steel will re-International Minerals & Chemi-:consider at least some of it cals (7.1), Chrysler Corp. I7.5),|new prices and Gulf Si Western Industries f7.6),uhem.” National Cash Register Co. (9). “From a public point of view, Railway (9.1), Union|j don’t think they can make it Union 19.6) and Southern Oil Co. of California is.oi ana stand up, and I don’t think Continental_ Oil (9.9).    J    they’ll    be    able    to    convince    the Vanik said the 14.1 companies president they needed it now,” in the study had an average cf-jsajd a third, fective tax rate of 23.6 percent, with the rate of 48 percent on federal corporation income taxes. Among tax devices used bv corporations to defer or cancel income taxes, Vanik said, were t h e investment tax credit, foreign tax credits and accelerated capital equipment depreciation resenting a $7 billion drop an annual rate. The falloff was blamed on the coal strike and “*8 automobile request is to take care at the area voca-; after its first quarter of exis , The price hikes average about I .___ . compared with the statutory 8 percent over twx>-thirds of U    b,^est    m f J _ .i8 P^rctrit \tr iwo-iniras of u-j(omakcr (R.neral Motors, wil (Continued: Page 3, Col. 8.) be let go indefinitely. GM an- The Culvers telephoned job layoffs in the automobile she failed to put the bow tie in on behalf of David Stanley in his the senate a compromise bill building needs  .....—    ,    .    ..    .    ...n(lin.T and other industries.    the P00*^-    unsuccessful bid to win the seat limiting to $300 million the loans tional schools. It represents the 4    1    ^    “ By the end of January, about She took the suit to Culver’s being vacated by Harold or loan guarantees which the state’s share of the cost, and    other I robes one-fourth of the blue-collar Capitol Hill office where he Hughes.    Export-Import Bank    can extend other funds would come from a Meanwhile, two    other inve dressed for the 9 p.m. party and “We had a pleasant visit with to the Soviet Union.    three-quarter-mill property tax ligations began. ill discovered the tie was missing, the President,” Culver said fol- jn other congressional devel- tovy in the area school district to; lowing the White House party opments plus federal funds. Kremlin s Tantrum on Emigration: Did They Mean It? Five Months for Haircut Refusal BERLIN IAP) A U. S. army court-martial Thursday sentenced Pvt Robert Nuchow, 19, of Leonia, N. J , to five months’ confinement at hard labor for refusing to get a haircut. Ile was also fined $225 a month for five months and reduced to the lowest enlisted rank. VWO#'* Chuckle “My wife always sees to it that we have a balanced diet These days the food bill always equals lier paycheck plus mine.”    coovriqw Gazette leased Wires Kremlin-watchers i n the West differed widely Thursday in their appraisal of the Soviets’ angry renunciation Wednesday of any trade agreement with the U. S. binding Moscow to ease emigration. Some analysts said it could mean rough weather ahead for Soviet-American detente and might even mean that Soviet chief I,eonid Brezhnev, although at the peak of his personal power, has received some sort of rebuke. Others — officials and some U.S. senators — felt tlx* statement was more a face-saving gesture than a move to repudiate trade or detente. They saw the development as an angry declaration intended for Soviet officials who may have reservations about detente. The Soviet comments carne in a statement by the official Tass news agency and the publication of an Oct. 26 letter from Foreign Minister Andrei Gromyko to Secretary of State Kissinger. Brezhnev denounced as “unacceptable” on Oct. 15 congressional efforts to exact freer emigration procedures from Moscow in return for non-dUcriminatory trad e treatment from the U. S. He did so even as he, and other Soviet leaders, were privately indicating to Kissinger that the Soviet Union was prepared to Issue emigration visas, eliminate harassment and even entertain U. S. inquiries on specific cases. On Dec. 3, Kissinger testified before the senate finance committee on these un derstandings, warning at that time that loud public discussion of the deal could embarrass the Soviets and undermine the assurances. State department officials told newsmen Wednesday that they did not consider Moscow has repudiated the understandings worked out with Kissinger or torpedoed the 1972 Soviet-American trade agreement. The Soviet statement follows extensive broadcasts by the Voice of America of the debate in the senate, where Sen. Jackson (D-Wash.) warned the Russians to live up to the emigration understandings or risk losing most-favored nation status. The Soviets so far have not said specifically they would reject tins trade status. Jackson, who authored the trade-off of non-discrimina-tory trade treatment for easier emigration, said Wednesday that he viewed the Soviet statement as being “iii the face-saving category.” Soviet leaders long had eagerly sought preferential treatment in trade with the U. S. Last week the senate attached strings to the deal, intending to insure a more liberal Soviet attitude toward emigration, especially of Jews. But some analysts said the price was too big, that the Kremlin now huffily rejects ,t and that Wednesday’s announcement evidently was hastened by the fact that the senate completed its action on tile trade bill Friday and the trade measure was headed for final congressional passage at this session. The Russians didn t like what it did to their super power image to seem to be a supplicant for American favors. The chauvinistic and intensely nationalistic military, in particular, would resent it. Much surprise was generated in the West by the announcement. A whole month before the Vladivostok summit Kissinger had received Gromyko’s harsh note denouncing Jackson and accusing Kissinger and Jackson of “distorting” the Soviet position. lf there was some sort of deal, even informal, Gromyko’s Oct. 26 letter would seem to have nullified it. That would make it seem that Brezhnev was obliged to renege, the analysts said In Moscow, nuclear physicist Andrei Sakharov, a leading Soviet dissident, described the Tass statement as “very disappointing.” Meanwhile in Washington, congress has moved closer to passing the trade bill. Congress was expected to complete action on the bill Thursday or Friday and send it to President Ford. The Kremlin’s opposition to the bill reached Washington as congressional conferees held a day-long session that ended in agreement on a bill to be sent to both chambers. The Tass statement had absolutely no effect on the congressional confer ees, Sen. Long <D-La ), chief senate sponsor of the bill, told reporters. “We are passing a law to provide we can trade with the Soviet Union under specified conditions,” Long said “If they want to trade with us, they’ll do it under those conditions.” Police Chief Wallace LaPeters conducted his own invesUga-tion, after which he defended the six indicted men and criticized the indictments. And a federal grand jury recently convened and will study the alleged “bugging” activities, which are not within the jurisdiction of the county attorney or grand jury. Kopecky said Thursday no ac- iContinued: Page 3, Col. 5.) Today s Index Comics ...... 7C Courthouse ..... 'JA Crossword ..... .....inc Daily Record ...... 3A Deaths ...... JA Editorial Features . SA Farm ..... sc. Financial ......hi: Marion ...... 3B Movies ...... . H-9B Society ... . HM3B Sports ...... ... 1-4C State ...... . .. 1-2B Television SC Want Ads . ...... .. ..Ift-lSC f ;

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