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Cedar Rapids Gazette (Newspaper) - February 1, 1974, Cedar Rapids, Iowa Weather- Cloudy, warmer through Saturday. Or. fusional light snow. High Saturday in 20s. Low tonight 15 to 20. VOLUME 92 NUMBER 23 * LEPAK RAPIDS, IOWA, FRIDAY, FERRI ARY I. 1974 CITY FINAL IO CENTS ASSOCIATED PRESS, UPI, NEW YORK TIMES 5.2 Percent Nixon Vo ices Call for Out of Job Last Month WASHINGTON (AP) — With the fuel .shortage tightening its economic grip, the nation’s employment rate rose from 4 8 percent to 5.2 percent in January, the biggest monthly increase in four years, the government saidj,he economy which has been Patience on Economy WASHINGTON (AP) — Amer-|yeaz as economic output dips to icons will be pounded by powerfully rising prices and increasing joblessness until the economy takes a mid-year turn for the better, President Nixon’s annual economic report Friday. Conceding the economy is caught in the worst inflationary spiral in a generation, Nixon urged patience by consumers. To correct a powerful trend of near-recession levels, the council said. Nixon expressed frustration over dealing with the nation’s many economic problems. But said he said the American people are better off than they think. “Compared with our parents and grandparents we are enormously rich,” he said. “We have protections against the ebbs and flows of economic life Friday. The labor department blamed actual or anticipated shortages of gasoline and other petroleum products for a substantial loss of jobs last month in the aviation, automobile and recreation industries. going on for some time requires time,” he said in a message to congress. The grim, but somewhat hedged, outlook by his three-man Council of Economic Advisers: A 6 percent rise in consumer prices in 1974, compart'd Nearly 370.000 workers lost:    8.8 percent last year, with their jobs, raising total unem-l^e economy growing by only payment in the nation to a one percent for the entire year. seasonally adjusted 4.7 million. The jobless rate will average This pushed the jobless rate 5 5 percent but will rise close to over five percent for the first percent in the first half of the time since last May. Expected To Worsen Administration economists predict the job situation will continue to worsen this year due to the fuel situation and general economic downturn The White House has estimated the rate will climb to about six percent but a number of private economists believe it could go to seven or eight percent, depending on how long the fuel shortage lasts. January’s increase in the jobless rate was the largest since January 1970 when it rose from 3.5 to 3.9 percent. Unemployment was at a 20-vear low of 3 3 percent when President Nixon took office in ’Can't Crack Fuel Ills This Year': Sawhill Stocks Drop NEW YOKE (AP) - Stocks were sharply lower Friday as Wall Street reacted with pessimism to administration predictions on the economy, brokers said. At 2 p.m., the Dow Jones average was down 11.30 to 844 25 while declining New York Stock Exchange issues led gainers 3 to I. AAA^IAAAAAA/^A^WXAA<^AAAAAAAAA [that they never expected and barely imagined. But I cannot assure the American people of an easy time.” He reaffirmed his faith in a free economy and said tile system of wage-price controls he established in 1971 to corral in rise in 1970 and hovered around flation would continue to be WASHINGTON (UPI) — Dep-j phased out. When, he didn’t say. uty energy director John Saw- j The lengthy economic report hill said Friday the nation J also scooped the President’s cannot "break the back of the,budget message, scheduled to energy crisis this year”— a go to congress Monday. It |Gazette Leased Wires hope voiced by President Nix- showed the budget for fiscal on—and urged consumers not to [ 1975 will total $304.4 billion, with buy gasoline until their tanks [ a deficit of $9.4 billion, are half empty. At a news conference, Sawhill also said Americans are making I Defense spending w ill rise their tim st effort at conserving | about $7 billion to a record level oil products, including a record of $87.7 billion TRUCK DRIVERS John Olson of Indianapolis and Harold Elwood of Stockton, Calif., look at a paper calling for drivers in Los Angeles to jump the gun on the trucker strike. Drivers there began the stoppage some six hours early when they blockaded the terminal with their rigs. Judge Acts To Curb Truck Strike calls for a shutdown. In Alaba- i the association called A U.S. judge issued a tempo- ™a, troopers said a large'gaso- spiracy to interfere. Spending Rise con-! spreading Thursday. rary restraining order against 'line tanker was hit by three ^ asked for $2.5 million General Motors said the .dry xtsudining uiutr denial,    j    damages    a    day.    A    hearing    was:    atrilra    _____ the head of the Council of in.'small caliber bullets but thei A    stake    could    force    it    to    close dependent Truckers Friday as adl lver rtas not ^urt ^    ,    ,    ,    . ;the tank was nationwide work stoppage by in- teaked ga,oUne. dependent drivers grew. They said! punctured and set for Feb. 7. Reports of drivers joining the shutdown came from more than January. 1969. It began a steady 16 5 percent saving in g^olinel Bars Interference all 21 of its plants in Ohio by next week, throwing close to ^. 75.(MKI employes of work. 20 states, mostly in the Fast, South, Appalachia and the Mid-! A few small firms in Ohio and There were scattered re-'West Virginia announced layoffs Nixon said the budget will im-1 ^°zens shooting incidents nption for the week ended I pose moderate economic re-*®!1    reP°r,s    of thousands of    In Cleveland, 1.5 District'    ^ kpd rigs in Ca!lfor. Thursday, the 6 percent mark for 191Jan. 25, But he made clearjstraint, because the total spend- (drivers participating in the pro- Com. Judge Leroy Contie issued•    ',nJAri70na    Bethlehem    Steel    said    trucking months before beginning to de-|“panic buying” and shortages;ing does not surpass the reve- test    against    high fuel prices    a temporary restraining order    truckers    not    joining the at its Bethlehem.    Pa., plant was cline in June, 1972. Joblessness continue to depress available nues that would be brought in were reported.    on behalf of the National Steel .    traveled    in    nocks    at a standstill and a meeting bottomed out at 46 percent last refined gasoline stocks.    ,    by    the    government    in    a    time    of    jj|    ^otnS    spending the night in motels] was to be held today to discuss Some Shortages    '-------.    fired    at trucks. One driver suf- of Independent Truckers and awaiting ^ the arrival of safer a layoff. The plant employs He promised to step in and (fired a* increase federal spending if nee- fered minor injuries, essary to keep the unemploy-i Police in Pennsylvania, ment rate from going too high I ttieky March 1 Date Set By House By Frank Nye DFS MOINES - Protesting all the way at being “blackmailed” into it, the Iowa house finally bowed to the inevitable | Friday and voted, 83 to IO, to adopt the 55 mph energy crisis speed limit imposed by congress. The 55 mph limit will go into effect on all Iowa highways ; March I, if the state senate accepts house amendments. ; It will last until June 30, 1975, unless the President declares an lend to the crisis earlier. . The 55 mph restriction re-I places present daytime limits of 75 on interstate highways, 70 on primary highways and 60 or less on other roads. License Revocations Before passing the bill (SF1013) the house adopted an amendment to repeal the law which now makes it mandatory for the state public safety department to revoke drivers’ licenses of persons convicted three times in one year of speeding charges. The senate passed the bill, 38 to 8, on Jan. 17, during this ses- much further until !sion s first week. and the house took it up the next day. But when it ran into a mael-strom of objections from members who declared “we shouldn’t let the feds tell us what to do.” it was made a special order for debate Friday. What they objected to was the “blackjack” or “blackmail” provision that states falling to adopt the 55 mph limit by March 3 would lose their federal highway funds. 11 w a s variously estimated UPI Telephoto Alabama and others. Ken-j It bars them from interfering Tennessee with steel carrier association as a result of the energy crisis. But what the economy now needs, after two years of up- reported truckers shots who being were Fuel Impact    Nixon    asked    congress    in    his Tile bureau said that while the state of the Union message loss of jobs to the fuel shortage;Wednesday night for legislation was substantial it was unable to to “break the back of the en-fiive precise figures as to just jergy crisis,” but Sawhill said how many jobs were lost to Federal Energy Office investiga- _____ shortages of fuel and how manyjtions showed that hope “was not jheaval, is a “greater steadiness were due to the economic slow-1 poSsibie because we’re still of policy,” he said. down that began even before going to experience some short-1 The council raised the specter the Arab oil shutoff heightened agPS > , .    |of international economic reees-| the energy crisis.    j    “We’re    not    going    to    be    able    to    sion if the industrialized nations j However, in a separate re- break the back of the energy fail to deal with spiraling oil port, the labor department said)crisis this year because we’re trices nrnnorle Nivnn cain    „    ,    .    ... .    ...      «,int    in    In    pvnnrirnrt*1    ii    J    '    •    .    WASHINGTON    (AID-    Prices    Perhaps    most    important in going to continue to experience worldwide recession can hp* * r    ,    .    ,    .    tit von- hioi» nrir.J" a , j    I    v. . |f>f raw farm products jumped the near future for consumers result of actions taken by petro- eraTion    <°°P''9    Pereent, ?»» "id-Oecem-jwas a 12 percent increase front a¥rvu,fnr.    ‘    !    ber to mid-January, including Dec. 15 in the meat animal m- leurn exporters.    i    ,.    .    *    .    .    .    °    „ “I think what the President    Pric*    Rls«    another big rise for wheat to a dex. was saving was that we’re goingi Consumers can expect food rm)rd,15 29 }*r bl,shd;    Compared    with    mid-January to get started with the job.” and fuel prices to rise sharply agriculture department (USHA) a year earlier, these prices av-“But to say we’re between now and midyear, sa,d lhursda>-    eraged 21 percent higher. Meat Council Chairman Herbert Stein Tho farm Prit‘e index 1 said.    percent    from November to De After the sharp increases in lamber after declining for three; mg that of 2 5 million persons receiving unemployment insurance benefits for the week (Continued Page 3, Col. 8) "No Backtracking On Dean"—Scott WASHINGTON (AP) — Senate Republican leader Hugh Scott said Friday that “I’m not backtracking one .single inch” in challenging the credibility of former White House counsel John Dean. Scott said he able that the special prosecutor’s office would express full confidence in “a confessed felon” who, he said, bad admit- Sawhill said (Continued Page 3, Col 4) Mansfield Reply To Nixon Tonight daylight hours. Near Allentown, 14.000 persons.    de*>ate Pa., a motel clerk said a! Some Midwest meat packing!mcan a l°*ss °f $^$70 number of drivers had taken plants said they may soon feel md!ion to Iowa ■ aaAm_    afro.a in    an    the ninrh    There    never    was any question fired    at    members    and    bans    use    of    citi-rooms-    They re afraid to    pltn^n^ ignoring [zen    band    radios    to further    what out on    highway, he said. Calling Guard Some plants announced layoffs, others said they couldn’t stay in business much longer and Pennsylvania Gov. Milton Shapp prepared to call out the national guard to halt the violence that claimed one life in his state Thursday. One New Jersey refinery kept its gasoline trucks parked pickets marched outside State police patrolled high ways in some Appalachian states. Union drivers not honor- jumped to their deaths    the    bill    ran    into a stock ar- At least 25 persons on the roof    'rom,    f «°r ired frantically to circling1 P lc^a^    ^ ii    i **1?" tipplers as flames and smoke    >hat    'owa    would    lose    its federal highway funds if the 55 Prices of Raw Farm Products in 9% Jump A dozen    major    coal mines    in    »h*t the    legislature would pass Appalachia were said to    be    run-;    ® “ill,    once congress threaten^! to    take away funds and once Gov. Robert Ray recommended the 55 mph limit in his Jan. 14 message to the legislature. F>en    so. reluctant house members weren’t about to let it I pass without letting the world SAO PAULO, Brazil (AP) — know they don’t appreciate the Fire swept through the upper feds applying a headlock on the (Coniinned Page 3, Col. 7) Blaze in Brazil Takes GO Lives; as floors of a 25-story bank build s^a^e through fund-threatening ing Friday and at least 60 people    Stock    Answer were killed Many office workers Various attempts to change eraged 21 percent higher. Meat ?iaiest union wivers w nun™- j 5 products make up about 32 per- die shutdown call traveled ‘.cent of a family’s food spend-!10 KrouPs °f threes and fours in j wa . imr    *    other    areas.    On    one    Virginia    he! cereal highway early Friday groups of. rose from the floors below , WASHINGTON (AP) - Sen-! late Democratic Leader Mike Mansfield delivers his party’s found    IP remark-    official response to President; i Nixon’s State of the Union speech tonight. Mansfield plans to speak for about 15 minutes and then an- .    .    . r    inflation    problem, swer questions from radio and    .1 . ... *    _    „    are    no    instant    so ted under oath that he had mis- television newsmen.    Ni    , appropriated funds. Tins in it- The JO^minute program win ^ self    S<*ott said,    “shakes    credu-    be carried live at 9 p m. (DI bv lily’    *    (’BS. NBO ami AB(’ television.    (Continued Page 3. Col 2) the cost of living have run their 1^consecutive months. The index I Family .spending for cereai    h    Jt'    I    *    ..........t il u * A a mph figure w as altered course tho rise should slow lo hi)l1 soared lo a record level!products, including baited goods "u‘lvS slewed down al bridges iiecause of (he heat aud „ , |hj djd    objectors an annual rate of about ^per! I«t August.    accounts    for 15 percent of the I and mtersect.o^. look.ng for|smoke the helicopters were un- L offer’    araeI',dnlclnts to cent in the second half of the Wheat ct eraged $478 per ''KXI budge! oil the average, ac- .Pa1sat a er f aJ ** Vend n 1C|’° an<lrn ,l"    “"’change the figure to 60 mph and year, the report st.....bushel    in    early    December    Si    *«*»*    ">    t    S°"'e    dm‘,S    ^    Snfar,l2a,W^h°Utu    IK    Z'» authorize Gov. Ray to change This still would be higher than was $2 58 in january 1973. In- ^t^?°3aniialry‘"Twil pnces' Heiiorts received from truckiL‘,!Ln    ,he    55    mPh    ,imit    ,0    a    fiRure of the 3.4 percent inflation rates creases were triggered by recorded in 1971 and 1972.    export sales to die Soviet Union “It s been a hard fight and 18 months ago but have risen ifs going to Im' a hard fight for)most rapidly since last summer. a long time.” Stein said of the He said there solutions.” this the strategy nation’s The Crop Reporting Hoard said higher prices for cattle, cotton, hogs, eom, potatoes and calves also contributed to the December-January increase. breaking the August record stops in several states were that |when new statistics are avail- rigs had blocked the fuel lanes. able in a few weeks    iust    ,o!d    ,he    drivers to pull in ('attle averaged $44 per IOO front of my pumps and block pounds of live weight in mid- them,” said Don King, a truck January, up from 37 (kl in De-stop manager in Fenton, Mo. comber. The peak, for all kinds Those guys are my bread and af beef cattle, was $51.70 lad butter and whatever they want. August. In January 1973, they I’ll go along with them. Reports received from truck {landing and carrying aw ay survivors. iContinued Page 3. Col. 5) Fuel Pinch Old Hat to Albany Couple ALBANY, N Y. (AP) - The rest of the nation is just catching up with Joseph Navilia and Ins wife. F’or them, the energy crisis began more than three years ago. Since 1970, the Navilias have lived in their suburban home without elect riot ly. The doorbell doesn’t ring, (Photo on Picture Paw’) the television set is useless, only kerosene lights brighten the living room and the family relies on a portable radio for much of its entertainment. In the summer of 1970, the state decided to widen Wolf road in front of the Navilia home and the Niagara Mohawk Power Corp. moved all power lines underground. $300 Tile utility said customers who wanted to continue with electricity would have to hire a contractor to connect their houses with the main rood cable, Navilia said. He re fused. “For 25 years we always paid our bill,” Mrs. Navilia said “And we didn t think we should have to pay $300 for a cable.” “But you know where the power lies,” added her lins band. “My bill was $100 a month That’s a lot, but they can afford to forget about me and hook up a big motel. Big companies ... if they don’t get you one way, they get you another.” Now, the roadside vegetable stand the couple has operated for 30 years is dark Mrs. Navilia cooks on a gas stove and takes her laundry to a laundromat. Refrigerator “One problem was the refrigerator,’’ she said. “We tried using a camping box, filling it with blocks of ice, but they’d melt almost as soon as I bought them.” So she buys food each day at a nearby supermarket. The couple’s gas furnace works but not the two extra electric heaters. Navilia said they once rented an apartment behind the house but the tenants moved after the electricity was shut off. Despite the inconvenience, loss of rent money and lack of regular business since he slopped lighting the vegetable stand. Navilia says ho does not regret their decision. “Not one int I don’t,” he said. “I resent being steam rolled by Niagar.. Mohawk, And to protest this is the only weapon I have." were $37.10 per KHI pounds, UNDA Friday said farmers in 1973 had a record net in-eome of $26.1 billion, up from the previous high of $19.7 billion in 1972. The net income was derived from record cash receipts totaling $83 4 billion for products sold by farmers last year. In 1972 receipts totaled $60.7 billion. In addition, government payments iii 1973 including subsidies for taking cropland out of production — totaled $2.6 billion. That was down from a record $4 billion in 1972 and the lowest since I!Mm. when the pay merits were $2.46 billion. The government has removed acreage restrictions for 1974 crops of wheat, cotton and feed grains and officials expect the payments to farmers will drop! to practicallv nothing this year Feeling Impact Businesses depend e n t on (trucking were beginning to feel the impact of the action, which started last week in Ohio and Pennsylvania but did not begin Report: Could Scrap 25% of Rail Mileage WASHINGTON (ITI) — The each, ranging from one-quarter transportation department raid to one third of each state's mile- FTiday that 25 percent of the) railroad mileage in 17 North-    .    , . i u;j,„Mi„pJ The report was ordered by w e s t e r ii and Midwestern!    y    ii*. congress when it passed legisla* t i o n to consolidate seven Today s Index C'omics ....... Courthouse ....... Crossword ..... Daily Record Deaths Editorial Features Farm Financial Marion Movies Society Sports State Television Want Ads .. 18 ...J ...18 .... 3 .,..3 ... 6 .14 ..It ..19 IO 8.9 15-17 4,5 IS states is uneconomical or redundant and could abanoned    ,    ... . with only minor import on shop hoHkrupt Norlhra.slem and Mid- pers or passengers The remaining lines should bv. rebuilt Into a core system of1 Although only a datum, it is expected to play a western tem railroads into one svf recommen- into a core well - maintained high - density.    .    . “interstate" radway line.-. gath-|major retemUie thinking ofdir jering traffic from secondary!ne^ and the lines lines, I feeder ;branch said Unprofitabh Railway Assn., which and finance the new b r a n c h lines should be abandoned and redundant main lines should either be abandoned or downgraded into secondary lines, the report said Indiana,    Michigan, Illinois and Ohio were spotlighted as the states V|ith the greatest 2-25 amounts of “potentially excess line — more than 2.(KIU miles U.S. profitable Jw'” Plan department !sVs‘*m ow[ a «»«•)»» Parted. The report had been expected to recommend massive abandonments. hula a's lh ar Hr Sign in a used car lot: Cadillac, like new. Was driven by a doctor to make house Calls,    CottvrlQhf ;

Clippings and Obituaries for the Cedar Rapids Gazette