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Cedar Rapids Gazette (Newspaper) - September 13, 1974, Cedar Rapids, Iowa Weather-- Clear and cool tonight with lows in the mid to upper Ms. Fair Saturday with highs in the upper fids and low 70s. VOLUME 92 NT MBER247 ttmcb CITY FINAL 15 CENTS CEDAR RAPIDS, IOWA, FRIDAY. SEPTEMBER 13, 1974 ASSOCIATED PRESS, UPI, NEW YORK TIMES Ford Aides: No Relief On Prices WASHINGTON (AP) - Two of President Ford’s top economic advisers say consumers won’t pet any significant relief from the nation’s soaring inflation rate this year. The gloomy predictions came from departing presidential economic counselor Kenneth Rush and Chairman Alan Greenspan of the Council of Economic Advisers. Despite months of anti-infla-tion effort, including record high interest rates most of this year, these advisers say the earliest any real progress can be made is next year. Major Retreat These views mark a major retreat from Nixon administration predictions that the rate of inflation, now about ll percent, would decline to 7 percent by the end of this year. This target was revised upward a month ago to 8 percent. Rush, who was confirmed by the senate on Thursday as ambassador to France, indicated in an interview that the inflation rate may still be above IO percent when 1974 draws to a close. “The picture is not as optimistic as it was two and three months ago,’’ Rush said. In other economic developments on Thursday: Senate. Democrats voted to send President Ford several economic policy proposals for consideration at the upcoming, economic summit meeting. Leaders of the nation’s housing industry attending an economic mini-summit in Atlanta made a bid to exempt their industry from anti-inflationary tight money policies. The Federal Power Commission staff recommended a single nationwide price on certain natural gas, a move virtually certain to increase gas prices. Greenspan told labor leaders meeting at the White House on Wednesday that “in the immediate period ahead it does not appear as though the inflation rate; is turning down.. Greenspan said “we hope” it will decline in 1975. Food Costs Both Rush and Greenspan cited the prospect of higher food costs, resulting in part from a Midwest drouth, as being largely responsible for the worsening! inflation outlook. Treasury Secretary Simon was not quite so pessimistic as they were, but he indicated to a newsman that it was unlikely the inflation rate would be below 8 5 percent this year, and could be higher. In their message to the President, senate Democrats said cutting the budget will not slow inflation without steps to end huge price increases in major industries. Democratic leader Mike Mansfield of Montana said the Democratic conference had instructed Sen. Proxmire (D-Wis.)j to hold early hearings to “pinpoint and expose the wave of inflation precipitated by gigantic price increases in key indus-i tries.” The conference did not call; for wage-price controls, but urged Ford to begin “some very powerful jawboning with industrial leaders. The Democrats also voted to ask Ford to include several items in the economic summit! agenda, including an eased monetary policy, and special tax relief for low and moderate income groups. Nixon Doctor To California WASHINGTON (AP)-Former j President Nixon’s White House doctor left Friday for San Clemente, (’alif., to determine per-; sonally if Nixon's phlebitis requires hospitalization, White House sources said. u.s. Has Enough Oil Dismissal For Winter, Experts j An parf|rtn WASHINGTON (AP) — Gov-!gas fields are inevitably losing VII I ll* IIVI I ; ernment and industry experts pressure and producing less. say the nation should have “We’re trying to talk the com-    D    A-.i enough petroleum fuels this panies into switching to another    1%    C*    I C    | J    ll T winter, but the outlook is uncer- fuel, but certain industries say    IIUiJI^    V    U I tain for coal and downright1 they can’t stand the expense of gloomy for natural gas.    to alternate fuels, WASHINGTON (AP) — U. S. George Hall, fuels manager in Sobers said.    District Judge John Sirica has the Federal Energy Administra- He estimated that “thousands decided the pardon granted lion’s petroleum allocation pro- of industrial firms” were jeep- Rlchard Njxon insumcicnt gram, said, “All things being ardized by gas shortages. I equal — assuming ifs a normal I    .    .    . winter and there are no problems with the Arabs — the pe-! troleum outlook is good.” The FEA reported in late Au-| gust that stocks of distillate fuel : oil, which includes home heat-! ing oil and diesel fuel, were I some 10.5 percent higher than a , year earlier and 12 percent | higher than two years earlier. Gasoline Stocks Reports Oi Price Freeze By Exporters (D-N.J.) said he does not agree with proposals to indict and try Nixon despite the pardon which precludes any penalty. Although Sirica rejected requests from three cover-up de-f e n d a n t s for dismissal of Warrant Issued For Arrest of Former Officer reason to throw out Watergate cover-up charges against the former President’s subordinates. Shortly before Sirica declared the cover-up prosecution would go forward, the White House indicated there will be no pardons    for    Watergate    defendants VIENNA (UPI) - The world’s while they still face trial, major oil    exporting    nations    House    judiciary    committee agreed Friday to freeze the    Democrats said    they favor    hav- Stocks of gasoline were more Price of crude oil at the current    ing    the    special    prosecutor    dis- than 12 percent above those of 65 a barrel and increase close the evidence against 1973 and 11.6 percent higher royalties paid by oil companies Nixon. But Chairman Rodino than in 1972.    t0 producer governments, Jam- The weakest category in pe-1 sHid Amouzegar, Iran’s chief troleum    appeared    to    be residual    delegate to    the    Vienna    oil    price fuel    oil;    stocks    were    about    4.5    talks, said, percent behind their level of “We have agreed to act as we 1972, but were 14 percent better fiid in Quito,” Amouzegar told than a year ago.    newsmen after three hours    of Tight supplies of residual oil talks among the 12 member na- charges against them, he in-could affect electric utilities tions of the Organization of Pe- dicated some sympathy with prime users of that fuel.    troleum Exporting Countries.    problems of a wave of    pre-trial Hall said uncertainties are    Basic    Price    publicity, posed by the possibility    of a In Quito, Ecuador, in June,    Dav    Delav coal miners strike this    No-OPEC ministers froze the basic    y    y vember, when the current Unit-    Pr‘ce of crude oil    but increased    He set back the    start    of the ed Mine Workers contract    ex-    royalties from 12.5 to 14.5 per-    trial by one day to    Oct.    I so a Ipires.    I    cent.    new pool of potential jurors can Natural gas supplies are a1- Amouzegar said the amount be selected, ready expected to run short. of the new royalty increase had Sirica had indirectly alerted a Industry Supplies    •    not yet been decided.    special group of 400    potential J    -Amouzegar said the oil im- jurors that they would be judg- The Federal Power Commis- porting governments should ing the Watergate case. He said -    -    .    si°n predicts that natural    gas    make sure that    the new in-    Thursday that, because of pub- Atkins Mil ll njfiS companies wil1 ** forced    by    creases were not    passed on by    Deity surrounding    the    Nixon chort irtoc to off supplies the oil companies to the con- pardon, the jury would come from a completely new group. . . WASHINGTON (AP) - Almonth transition lo private life. I'"lt'u r‘way min nm,; mien ms B ' bjs y;a ,. curtailments -    .    .    _    .    -    Attorneys    for    former    White warrant bas ^ subcommlltee has bcen An addltional mm was re. «««*«* ■* a tram north- ar““ J**” 3” Spy Jet Beats Sill! House aide H. R Haldeman had urged to withhold $450,000 of quested for him after that ‘ ai0,    as great as last vear’s the FPC; |M I an Jam I A    original    group    of    400 Clinton Charles McFadden, said    I    *n    LOtlflOII-L    A. KIM would have prejudged the guilt was dead on arrival at St. Talks with Rabin — UPI Telephoto President Ford entered a second day of talks with Israeli Prime Minister Yitzhak Rabin at the White House Thursday. Rabin and Ford are discussing the Middle East situation and assessing prospects for a permanent peace settlement between Israel and her Arab neighbors. Lawmaker: Withhold Train Hits Car, $450;000 in Nixon Fund TOLEDO - A been issued for    the arrest Robert Smith, a    former Jama    f 0 r    m e r    president    Nixon’s I period    under the Former Pres policeman, on a    charge of em-    w50    000    transjtjon    money    until (idents    Act bodement by toiler    ,he    makes    (u„    disck)sure    on' Tama county    Sheriff Milo shortages to cut off A 35-year-old Atkins man was ‘'"Warily to some industries, SUmer. Almonth transition to private life. kllled Friday morninS when his as*fy d‘d'“A"!"1!;': Watergate. Rep. Bevill (D-Ala.) a sub- Lu,ke s hospital committee member, had said he of the defendants, if only be- anc o iivAaLNipi.    |__  .    .    ,    cause    they would have paid Linn county sheriff’s deputies I    Inn    PhTml’S* SR'71 B,ackbird sPy PIane more attention to Watergate Homes and other essential WASHINGTON (AP) - A U. »rD«fa„dattr    Harrington    .!>««-d McFadden was northbound    « <** -    «—    *>    than    other    CU- as nooert Davis and James r. .nnnotaj tua knucn nvtvnfiitoi-..j-j ■________  *    _» ., . # on countv road ll when he an- •    ,    l    •    ,    >,    annoior irviHa.r miunn« cauan zens. n-v,. no .ddreL^s nV.'uled of‘appcaled 10 the house cxeculive needed because part of it is for “unly r“ad '' "he" be, a^ in danger of being cut off, the An*eles Fr'day. covering seven Cum handguns Zf to offiwrs    for ““‘isecuring the ta^s and he said p r,0 ac I’* d "*.««* Island commission said.    time    zones    in    5,645 miles in « «* DV afi at ? arw,n    move afler ,hree of its memb*" there is no guarantee the public ^'‘road tracks Witnesses sa.d Bu, ^ deliveriM ,hree ^ and 47 utes Press Secretary John Hushen Dysart and Garwin.    .    had objec(ed (0 par( or a|, of ,hc ^ ha«f acwss „ Pm McFadden tried to stop for an cou|d force Mme8 industries    8    and    «7 ™ n“‘“. asked If any Watergate pardons ' $450,000 because Nixon controls! ,.Th„ _____ |eastbound    Rock    Island train but;wek more expenslve alternate    spwd    would    he delayed pending corn- continued across the f L ,tm additional g. record to beat for the route. The pletion of court trials, an- struck the car J"" *    *    *W»*>    the record lf D>sart Police Chief Bruce Bolin filed an information “The government is not get- nun ii uiru dn oiiuiiiiduun .. w te . f d     inis    car    contin claiming Smith, 24. obtained a “Quite frankly^ do mfbe- t,n^ WO***- He (Nixon) can rai]road tracks Smith and Wesson revolver Joly UeVe tot Mr. Nixon should bo scM a"ylhl"8 or everything ex- The train ysart’ on behalf of (,a[‘ p-anted any of this money, at; least not until he finally puts an j end to the cover-up, releases the win. However, he weapon claims. Garwin converted use, the to    his own use, Bolin    \yaterga^ tapes and    provides answers to the many still unreal ayor Floyd V.    gojygd questions as to    presider Culler,    in    another information,    (ia, misconduct,.. Harrington claims    Smith converted a .38    tcstjfjed on Th^gy. cal. police revolver to his own use Aug 22    6-Month    Transition A former spacial auxiliary of (Continued: Page 3, Col. 7.) ★ ★ ★ Say Nixon Maid, Valet Still on Federal Payroll driving up the price of their is certified by the Federation    ^ dismissal requests me drivers side inrowing it 85 __!„*    ;„Vi,mirrh» *    .    ,    .    L    to Sirica was from former Attor- feet    products,    Stme industries might Aeronautique Internationale, the „ey Genera, Jobn Milchell, who The tram engineer said the ^ “u    J    accrediting organization for avi- claimed to have “been subject- train was traveling at about 40 ()j j0jjS    ation records.    ed to the same degree and in- mil-    JU    ^    ^    Utility    The average ground speed tensity of publidty that prompt- miles per hour when the ac-cidont happened at about 6:50 a m. Friday. Commission officials could not was 1.480 mile, an hour with the    Ford's    pardomng of Richard Nixon.” (Cmitinued: F^ige 3, Col 6 Pretty Wife Aids Mate s Stock; Reverse Not True - predict which specific industries a'rcraft p'loted b>' l'ap‘' Harold;       Im.„ed.. paccQC Rill    might be hurt, because it would ^darris' ^rom Albuquerque LOS ANGElaES (AP) — Rich-    Dill    TOr depend on supplies in each lo- N. M.    Mitchell    lawyers    told    Sirica Hie $450,000 was requested by ar(j NjXon’s personal valet and StcUlcldrc! Tim©    I    tbe    same aircraft    accepting    his    Par on. President Ford for Nixon s six- maid are among some i30 em_    Joseph    Solgers,    an    PPC    case    arvd crew set a New York t0 N«<« has ti)wvoidah y implied  ployes assigned to the former WASHINGTON (AP) - The manager who follows the grow- I/mdon .    tbat    he    had    engaged    in    certain President at his San Clemente senate commerce committee ing gas shortage, said the prob- estate on the federal payroll. approved PITTSBURGH (AP) - A man with a good-looking wife rates higher in other people’s eyes than a man married to a homely woman, two University of Pittsburgh Psychologists say. Leonard Saxe and Daniel BarTal report, however, that the reverse isn’t true — a handsome husband apparently won’t enhance the status of his wife. Saxe and BarTal said in a report released Thursday that they showed portraits of couples to 128 viewers and asked them to try to rate each rtian and woman according to per sodality, success and social and economic background Paired Differently Portraits were paired differently for different observers, with homely men paired with attractive women in some eases and the com bination switched in others. In every ease, the* observers were told that they were looking at a man and wife. The findings: Homely men with good-looking wives got the* top ratings for income, job success and professional status. When these same men were paired with homely women, their standing in the eyes of the observers dropped. The lowest ratings went to handsome men paired with attractive women. Good-looking women fared better than handsome men. “Among females, an unattractive woman married to an attractive man is evaluated lowest on these scales, whereas an attractive female one    illegal acts which are inextrica- __  _    a    house-passed Tem    is not natural gas demand,    bour and    ®    minutes. Thursday    bly related to the actions un- the Los Angeles Times reported    re*urn    Mc    U.S.    to    stan-    which    is    growing    very    slowly,    crew    aborted    its    first    at-    J deriving the charges against the dard time from Oct.    27    to    Feb. but    the failure to    find sufficient    tempt at    a    Los    Angeles    run    defendant Mitchell. mew    ga, reserves    while existing    because of engine    trouble    ^£%£??£& Bl Friday. Payroll information furnished for a house subcommittee study showed the payroll for the Nixon employes runs about $500,OOO a year, the Times said in a Washington dispatch. , ....    ^    .    _    J rp, , .    •    ,WASHINGTON (AP) —* Con-[tax, which is an addition to any These salaries are in addition ...    '    dn    ‘,uumon an> to the $850.DOO requested on Nix- sri'SSK"’al 'a*-W'ters have regular income tax voted to hit some rich taxpayers    committee    reversed    an Higher Tax on Rich Voted pardon for Nixon and prosecution for Mitchell “is particularly offensive to the American concept of equal justice.” They said _    I    the    only reason Nixon goes free Presently, long-term capital js status as a former Presi- gains, meaning profits on assets dent. such as stocks or real estate A similar motion went to the and aprowl‘    ‘cai    caime    **    *-------- -----    — ii    held    at    least    six    months    before    judge    from    former White House on's behalf by President Ford    .    .    .    .. Furthermore, secret service ex-a bit harder but to go softer on ^ penditures for Nixon are report-|many investors and homeown-    J'“JJf    selling, get lower tax treatment!aide John    Ehrlichman SU?- i ~ i ii e I— just half the rate applied to' Ehrllchman’s lawyers said gr wrth in va ue of gifts ofprop- Q(her kj d f j    whilermedia    in    the    District    of    Colum- could continue to be od at $662.(MH) annually. Both the valet and maid have ors. A new minimum tax on the erty Iserved Nixon for a long time weilt'hy,' eK^ted'70“hike'thc'iV deductible ‘"in catotaTing” tiTe|^r!',ermthsains are    ^dmfnUlStto    wm    « . Mo.i. .    —    ....    I    .    .    same    as    other    income.    The    law    Nixon    administration    was    cor- and arc carried under the Na-:,axcs by $,45 mi|,jon a year minimum tax. a move sought married to an attractive male tional    Soi’''i(,e l?ayroM, the and several changes in the tax by educational institutions, dusted highest ” Saxe pap<'r ?U°'es ,he h?d °f '^ treatment of capital gains and The ‘’economic income” jGoneral Services Administra-1 |oss<>s. figured to be worth about'of the new minimum tax would $1 billion in benefits for people I mean adjusted gross income The Park Service is response with long-term assets, were ap-1 plus some other items. lh ev said. tion currently excludes from taxes nipt and has consciously select-base 50    of    tho    Sains    realized    od    its    news    coverage    in    a    way Continued: Page 3, Col. 3.) “Something Else” ment had    requested renewal of j income    tax    and    w la $192,000    federal grant to pay    only if    It exceeds for eight    officers maintaining    regular    tax. security at the Nixon estate. Portner    said “drastic cut the be paid persons He sjK’culated that this may hie for the White House grounds proved by the house ways and be “because people figure if and presidential quarters.    means    committee on Thursday. an unattractive man can get a San Clemente Police Chief! The new minimum levy would good looking wife, he must Mel Portner said his drDart- be an alternative to the regular have something else going for him.” Handsome men. were rated low on both trustworthiness and brains. Saxe credited this to “an egghead stereotype, backs” in secret service protec-Ic a 11 e d “economic income.” meaning people may think tion at the estate made it neces- minus an exemption and certain smart men are ugly.    sary for him to seek renewal of deductions such as extraordi- He added: "What keeps sur- the grant from the Law Enforce-1 nary medical expenses and gifts prising us is that people keep ment Assistance Administra-1 to charity, with a tax rate rang insisting their judgments tion, which paid for the add!-1 ing from 14 percent to 20 per-aren’t influenced by physical tional security for the past five cent. It would replace an exist-attractivene*vs.”    lyears.    ling    flat IO percent minimum Fully Vanish from sale of assets. A key change approved by the panel would add a new deduc-I tion of IO percent of the gain for each year the asset was held! Minus Exemption It would be based on what is Tile bask* exemption from the beyond five year*, with a maximinimum tax would be $25,000, jmum total exclusion of 70 per-) but it would be reduced dollar cent so that no more than 30 for-dollar as economic income, percent of the gain on the sale minus deductions, rises above of assets held for a long time $25,000, so the exemption would would be subject to tax. fully vanish at $50,000    _    . , , Capital Losses Another would boost the! amount of ordinary income against which capital losses can ’be deducted from $1,000 to $3,000, and a third change would, phase in over three years an' Today s Index Tinian's Chuckle An executive is a guy who walks around with a worried expression on his subordinates’ faces.    *    Copyright (Continued: Page 3, Col 7.) Comics ............ ........20 Crossword ......... ..... 20 Daily Record ..........S Deaths ..... .........3 Editorial Features M 6 Farm .........ii Financial ......... ........21 Marion ............ 14 Movies ........... .......10,11 Society ........... 8 Sports ............ ...... 15-18 State ............. ........,4.5 Television .......12 Want Ads......... .. 23-27 feWNNMMM i I ;

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