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Cedar Rapids Gazette (Newspaper) - January 15, 1974, Cedar Rapids, Iowa Weather — Mild f Ii r o ii g Ii Wednesday. Lows tonight around 30. Highs Wednesday in 40s. tm echo' i CITY FINAL IO CENTS VOLUME 92 NUMBER Ii CEDAR RAPIDS, IOWA. TUESDAY, JANUARY 15, 1974 ASSOCIATED PRESS, UPI, NEW YORK TIMES RAY: REPEAL FOOD SALES TAX Fuel Allocations Go into Effect WASHINGTON (AP) — The house or a business that’s hurt-federal government Tuesday mg from too little fuel. began applying a program of “Hardship,” the regulations gasoline austerity and fuel oil say, “means a situation involv-j rationing, including less home mg or potentially involving sub-i heating for the nation.    stantial discomfort or danger! While no ration stamps are involved, Federal Energy Office officials have described the petroleum allocation system as non-coupon rationing for all major products except retail gasoline. The new regulations, which took effect one minute before midnight Monday, permit exceptions for hardship cases. Normally, however, thermo- and-or economic dislocation.” In effect, the system rations rn a j o r petroleum products right down to the final consumer, with one major excep- i tion: Gasoline. The Nixon administration has' ordered creation of a standby, gasoline-rationing system but' has not yet decided whether to; use it. As when they were first pro stats in homes and other resi- posed the final regulations, dential buildings must be set six j which took effect just before degrees lower than in the same midnight, were accompanied by month of 1972, and in other a flip-flop of FEO interpretation. buildings ten degrees lower. Allocated as Much? Many people have already done this and the regulations will not! ^ate Munday, FEO spokesmen a further reduction on s ~ mistakenly, as it developed — that service stations require their part. Less Gasoline Service stations will get less gasoline than before. Just how much less was uncertain, but an FEO official guessed it might be iii to 20 percent less than the public otherwise would use in 1974. would be allocated as much gasoline as in 1972. Still later, however, the! agency reversed itself and assistant director John Hill said! service stations would get whatever was left after higher-priority bulk purchasers such as ; farmers, were supplied, just as] proposed earlier. Hill said the flip-flop in explanations made little real difference since most gasoline goes to service stations anyway and Fie priority demands “off the top” would make little impact. More significant was the regulation to tip refinery outputs a In the briefing Sawhill said .little away from gasoline and to-1 the basic strategy behind the ward other products, petroleum allocation rules is to Th0 f*na* regulations included! preserve jobs. Citing some ex- no specific figure for a reduc-, amples cf the impact of the tl0n in refinery gasoline yields; By Associated Press allocations. Sawhill said busi-'^at number is to be established John Sawhill, FEO deputy administrator, told a newsman following a briefing this morning that the administration’s request that motorists voluntarily limit themselves to IO gallons of gasoline a week was “still consistent with current estimates” of the gasoline supply. Surprise Request Part Of 44-Point Iowa Plan By Frank Nye DES MOINES and others will think them* ,    I    “overly optimistic,” but he In a surprise I thmk/.|h(!y arc realistic, not move, Gov. Robert Ray called exaggerated.” for elimination of the state’s 3 “We are thankful for the real percent sales tax on food and economic growth which has in- prescription drugs in proposing cn'as,'(i this balance above orig mal projections,” he added, fluences on total growth. One is inflation. The other is what Iowa a 44-point program to the legislature Tuesday. He said repeal of the tax would save Iowans $31 million which would not have to be (44 Points Listed Page 2 ) AFL-CIO Is Out To Get Nixon: Ford ATLANTIC CITY, N J. (UPI) Vice-president Ford Tuesday accused the AFL-CIO and other “small groups of activists” of attempting to exploit the Watergate affair to bring about President Nixon’s downfall. “And make no mistake about it — it is an all out attack,” Ford said. “Their aim is total victory for themselves and total defeat not. we term ‘windfall revenue’ caused by enormous surges in our economy during 1973.” Ray said he applied the phi-J losophy he always has used lo make up budgets in answering made up by raising any other    repeated    question    about1 tax.    the treasury surplus:    ,    ,    _    ......    , .    .    .    ,    . ,    only    for President Nixon but for ■ not -"""P'y a reba,Ci :..are *e *0,n* 10 ““ " the policies for which he stands. or a political gimmick,” Ray'WKCv    .    ....    .    .    ,, .    ,    .    I    ,    ,• “I believe first,” he ex-. “Dominate Nation declared. This is substantive:, . .    .    t ......    .,     4(1,    .,    .    ..    T1 plained, in fulfilling the com- “If they can crush the Prosit is    real;    it    is    helpful and    if you    mjtmenfS government has ident and his philosophy, they follow    my    budget,    it    can    be    made to people; second, in look- are convinced they can doub ling for ways to accomplish nate the congress and. through those projects of government it, the nation.” j without burdening our people, Ford, in his strongest defense i with additional taxes; and third, j yet of the President, made the in taking those steps to prevent is t a t e rn e n t s in a prepared government from spending address to a convention of the more than is actually required American Farm Bureau Feder- done.” The sales tax would be repealed on groceries, on groceries, but not on meals at restaurants, to save taxpayers an estimated $29 million annually. The saving on prescription to meet tho&e needs and com-jation. drugs would total an estimated mitmen s    The    vice-president    said    that $2 million a year.    praises    Legislature    leaders in the anti-Nixon cam- A bill to repeal the sales tax    paign besides the huge labor on food and prescription drugs    The    Republican go v    c r no r    federatjon headed by George has been promoted for .some    scored some points    by    praising    Meany were the jibera| group? time bv state Sen. Joan Orr (I)-    lh(*    Republican    - controlled    Amerjcans for Democratic Ac tion (ADA), and other unnamed rn* UPI Teleohoio Finishing Touches Governor Robert Ray works into the night proofreading and adding some finishing touches to his State of the State message. Heating Oil Prices Up Sharply Grinnell! and others, but this is the first time Ray has recommended it. The governor, saying be would outline his program “relative to the issues of energy and transportation” in a second address to the legislature next Tuesday, also called for: —a 6 5 percent “cost of living” pay raise for employes of public schools, area schools, regent institutions and the state. —a 55-mile-an-hour limit. —a ceiling on the rate of in (Continued: Page 3, Col. 5.) Exerts: Tape ti    “ Gan Caused by 5 to 9 Erasures d,'C“n “pressure organizations.” If they succeed in their aims, Ford said. “We can all kiss goodbye the chances of reducing federal spending and increasing community and individual in- expect an avalanche Gazette Leased Hire,    !°*    frpsh government interven- WASHINGTON - Technical "on in "ur economy massive , _    ,    >new    government spending and a experts reported Tuesday that    m<jreB rampanl    mnatinn -. hc speed the 18-minute gap in one of the subpoenaed Watergate tapes    ,.Most    i>amaging'* was caused bv “the process of    „ .    ,,    ,    ...    .    ... . Ford said    he    did not    think too hard. If, however, your Fuel Oil Institute said domestic,terest that can bo col,erted ()n erasing and re recording at least «“W‘T    — I" —.VV ........ ,    ,    ,    ■    .    ;    ..    .    I.    ,    ,    __    revolving    charge    accounts.    LIdbir^    t,n    1 n (omm^ieasl Nixon s enemies would be sue- Last Dec. I. an independent dealer depends on imported oil. oil should average about 24    _(,]|n*nal|0*    one y,ar ahoad five. and perhaps as many as a.ssful in bringing abou, his lm. mand: homeowners would getting about 15 percent less •    , fuel oil than normal, and t 0 truckers, while getting IO cent more than in 1972, novel-, ^ ^    j|d theless would be about 5 to 7    J nesses and industries, to receive,periodically v the I RO.    dealer in the Chicago area uas jou d better be prepared for agents a gallon. Bul consumers,of schedule nf th,, ten-mill an- nine, separate and contiguous pearhmont and would try inns much gasoline as in 1972.    Based    Cutback’.’    selling home heating oil at 28>= real wallop.    gelling    foreign    oil    may pay 40 nual reduction limit in the'segments.’’    stead‘‘lo do the next most da- nfthrirjTntid 1074PhD Bdl said the cutback consid- cents a gallon. Today, the same! The increases will more than cents a gallon.    state    s    school    foundation    pro a , ,0 Jud Johnimaging thing.” - -■*    ■—.....—- ‘    be    <‘rr(l    earlier    ~ 10 95 l,ercent of dealer is charging 35 cents a offset any monetary savings you    Changing    to    Gas    sram    |S<1‘ ,St.or!. °n 4,, Sirica the experts said the gap ’ Th'} lryJ“ 1972 levels - was being re- ,.    .might get from turning down u.    *    ,rk.    The    complete    list    of    Ray    s    41-..cou|d havp ^    the ordeaL to cr.pple the Pres- and might be eased if g "° \    ,    ,    V . ,u !L ,7„‘. a ®    Wayne    Parthun    of    the Chicago point program may be found on by sj )f continuous opera-!idcnt ^ drWn8 out the P** fuel oil stocks continued to hold Thats an increase of almost jour thermostat six degretvs in oij Hogt Marketers Assn. said page 2 today.    tion    ”    liminaries to impeachment for pcr*!up through a winter which, so 23 percent in six weeks. It re- accordance with federal energy ,here js a range of 1Q cents ^ legislators listened intently    as long as they can to use the fleets the situation throughout regulations that take effect    [for    the    better    part    of    an hour to    Not Recoverable    whole affair for maximum polit- As a rough estimate. Hill said, I the country, according to a spot1 Tuesday.    :ga    on    tween    ig    an    ovv    Ray    s    proposals    for    using    the    also said that recovery i teal advantage ” the available gasoline maybe 15    nf trade issnniatinnc Annual imports of heating oil ^eating oil prices. The low price $1542 million balance, which he 0f any speech that was obli- Ford urged the house judici- 20 percent below potential ,t , A.    L    refined abroad have risen 29 cents a gallon; the high is; said would be in the treasury on terated “is not possible by any‘ary committee, which is invcs- 1974 percent short of potential needs. The administration has asked motorists to limit themselves voluntarily to ten gallons of gasoline per week, hut so far there is no formal limit to their individual gasoline use. Airlines will get live percent less aviation fuel than in 1972 and they have already started reducing flight schedules. to 20 pc 1974 demand The new regulations permit state allocation agencies to set aside portions of certain petroleum products for distribution to hardship cases. The states can set aside: three percent of monthly gasoline supplies; three percent of ligating whether grounds exist for impeachment, to finish its propane; four percent of middle Electric power plants arc    to    distillate fuels,    including    home get as much residual fuel    oil    as j heating oil and    diesel fuel; and or the FEO says they can    have.    [5 percent of    residual    oil, a depending how much there    is.    heavy fuel oil    used in    power But essential services and piants and somp heating. military activities will get just There are no state set-asides about all the petroleum they for crude oil, butane gas. pe- need, holding top priorities in _    „ R Y Y    1 (Continued: Page 3, Col. 3.) ..    ...    ..    .    efined    abroad    have Home heating oil prices bavesharp|v from a negligible jst.    June 30.    method    known to us.” risen sharply in the last month, amounl rvt years ag0 (0 an es-; The variation has prompted Ray projected that at the nor- sirica scheduled an afternoon    .    .    .    .. and    industry    spokesmen    say|    teated ISO million barrels *    complaints from consume* who    Xh*'h-TC C id    i» h,arln*    *“i,lonl1    ^ ’ thev’ll    probably rise    some    more    1973. Thats more than IO per-    *oiih    has bien ext ceded 1    cent of last year’s total supply Jwant 10 know why they re W*    1973-74.    the state would have    a according to the National Fuel    »ng one price and their neighbor    $46 7 million surplus in fiscal Oil Institute.    *    is    paying another.    iyear Four Times as Much    1,1 addl,ian- saitJ- tieat* sll!PIus ,1” “    Th-    lr    report appeared to chm- the vice-presidc ing oil industry is losing cus-j    still    Have    Surplus    inate    the possibility that Pres- lieve that a majority of the If followed to the letter, he ident Nixon's secretary, Rose committee will reach the same in the future. In fact, some spokesmen say it may cost you twice as much to heat your home this winter as it did last year. In dollars and cents, the increases can boost mony from the experts. They did not speculate No Grounds” “Personally, I firmly believe for 1976 and a $212 million    the    gap was caused fay j that no valid    * s ' fiscal 1977    deliberate    or    accidental    actions,    impeachment of the President, Th* ir report appeared to dim- the vice-president said “I be- Institute figures show that im-,t 0 m c r s . Parthun estimated Bi2?    ti rn Th.,. b.„*.SEX£2»»-rntSTSjms.-“    ""*“• million,    ^ sa|d some    vvj|j vjew    his    rupted bv a telephone call while    “They have no    right to leave .    .    trying to transcribe the tape of    America hanging    when so much -But there are    two other    in-    a junc 2() 1972. conversation be-    that is important    remains to be gas, Parthun said.    estimates    as    “too    conservative the new nationwide petroleum allocation system. Plenty of Room In allowing for “hardship” exceptions to their specific limits, the regulations provide plenty of room for deciding what a hardship is — apparently it could include an exceptionally cold Bus Plunges in Canal; 19 Die BLYTHE, Calif. (AIM Nineteen persons were drowned Tuesday when a farm labor bus plunged into rn irrigation canal at a rural intersection. Twenty-five to 30 others were injured. The accident was reported to have occurred in darkness about 6 45 a iii more, depending on how much oil you use and who your supplier is. May Be Lucky If you were lucky enough to imported crude oil have a supplier who is getting    sharp rise is due prin- domestic oil. you may not be hit«cipaIIy to big increases rn the taxes and royalties collected bv similar price increases in heat- showed about half mg oil refined in the l\ S from |iea(ing unjts m Illinois used oil. compared with 2D million using Egyptian Plan Finds Favor with Israelis the governments of oil producing countries. Domestic crude oil also has risen in price, but not nearly as much That means wide variations in price. In some areas, one household using domestic oil can JERUSALEM (AP) —> Soere-    confined to her home with an    at-    pay 40 percent less for heating tars of State Kissinger Tuesday lack of shingles. ;outlined Egypt’s counter propos-1    Thief    Point als for a withdrawal of military' The forces on tile Suez front and    sion    is    what Egypt    is willing    to    wide average cost said Israeli leaders appeared to    lh*’ way <>f    thinning    its    A spokesman for find “constructive aspects” in the plan. Anti-Tanaka Uproar; Indonesian Troop Call tween aide II the President R. Haldeman. and Munds Required Miss Woods had testified she thought she might have caused at least part of the gap when she pushed that button and pus his done “Write the last chapter, close the book and get on with the vital business of the nation.” Ford urged his former house colleagues. “It is high time we got out of the rut of despair and self doubt JAKARTA. Indonesia (AP) — A battalion of troops in full bat .ii    1    e    nw.ny . at a rally on one campus where I tie dress and scores of armored    •    1 “Go to hell with your aid. ™ we..,..."., w.        Tanaka-san,”    said    the    banners oil than the consumer next door who is supplied with foreign oil And 1! makes it almost impossi <':,rs "l‘re «•«"' 'urMW> Tanaka arrived late Monda.v chief point under discus-Jble to come up with a nation- keep 5,000 anti-Japanese stu- f0(- tilt* last stop on a tour of dents from storming the {five sibly inadvertently kept her foot an(j onlo ru. road of on a foot pedal that operated called out Tuesday to an effigy of Tanaka was burned Southeast \sia nations forces and arms on the east hank of the Suez Canal in ex-, change for withdrawal of Israeli Kissinger emerged from a troops from the canal, two hour meeting with Deputy. Kissinger brought the Kgyp-Premier Yigal Allen, Foreign tian counter proposals Monday Minister Abba Ehan and IV-night from Aswan, where ho; tense Minister Mn,he l)avim:confl'rre<l "nc<‘ mor<; wi'h Kgyp-J ..    , .    tian President Anwar Sadat, and said they had a very™, a.„ „ „ ^ 1 u ii 1 J The American said he believed warm and I think very useful bhoy had “narrowed the dif-i discussion."    jferences substantially” aud he! “We learned in very great de    hoped to narrow them further! tail what the Egyptian ideas    during his talks with the Israe- Juhn ‘ire,’’ said F’,bun. Ile added that l,s Scab, U S. ambassador to the the talk had been “very useful, Egypt apparently had no ob United    Nations,    has    recovered    detailed and substantive '*    jections to Israel s offer to pull from heart    surgery    and    will    re*    Eban went from the meeting    l,s trooPs *)a(’k ,0 a line about 20 turn to New York Wednesday to to Premier Golda Meir’s home mdt‘s 01 canal. But His- J resume his duties.    to    tell    her    about    it    Mrs \1«*ir is (Con'huied f*aim 3. (’n! 6) for the National grounds of President Suharto’s each he has been the targe Freedom palace while with visiting Prime In of he met {demonstrators charging J a pat] Minister with economic imperialism but Today s Index Seal! Recovered PHOENIX (IPI) Comics 17 Courthouse 3.V Crossword 17 Daily Record 3 A Deaths 3 A Editorial Features 6 Farm 12 Financial 18 Marion IM Mov ies it; Society 16 Sports 13-15 State 4.5 Telex ision ll Want Ads 20-23 most of the demonstrations have of been peaceful He was grim-faced as he left Knkuei Tanaka of Japan There were a number bhxnlv clashes and the students {smashed or burned about 50 the palace and went to lunch Japanese-made cars and motor-1with Foreign Minister Adam cycles    Malik Troops battled 2,000 other stu-j him h* Malik said Tanaka told would establish an office dents at a high school near the of economic cooperation to pro-p a I a c e Unconfirmed reports vide g ti i (I a n c e for Japanese said six students were wounded companies operating abroad and any country could take grievances about Japanese business bv bayonets and rifle then butts One student was killed In one clash, students reported men to that office Informed sources said Tana at- ka's scheduled visit to the lie- tacked soldiers with bricks and'roes’ Cemetery was canceled stones. One soldier was ledlhecause of the rioting, although away bleeding <• >d vv-Hinds. profusely from the official ram reason heavy the machine. But the* experts said their examination showed conclusively that the gap could not have been prcduced by a single* continuous operation They said whether the foot pedal was used or not “the recording controls must have been operated by hand in the* making of each segment ” The tones which formed the* im/.z “do not appear to bt* caused by normal machine operations,” the experts said. They also said thov he*lie*\v that conversation had lM*e*n re*-corded on the* obliterated seg me*nt. The six e*xperts also said they agreed unanimously that “The* erasing aud rc*ce»rding o|H*rations that produced the buzzing section was done directly on the evidence tape." The tap<* recorder “probably progress. Ford: Should Be Adjustment In Guidelines ATLANTIC CIT!*, NJ. -Vice* president Gerald Ford predicted here Tuesday there would he* some* readjustment in wage guidelines this year to compensate for sharply rising food cost* “It would only he fair,” Ford told a press conference after speaking at the American F arm (Continued Cage 3. Col Hi Tatlatl'* ibm*I:lr Most movies on television are just like furniture — they’re either F7ariy American or Old Flnglish cwyfMce ;

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