High Point Enterprise Newspaper Archives Mar 24 1974, Page 54

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High Point Enterprise (Newspaper) - March 24, 1974, High Point, North Carolina 2d High Point Enterprise sunday March 24, 1974 supplies still in jeopardy dangers of dependence on Arab Oil continue by Richarde. Meyer a new features writer americans will live in jeopardy of Oil shortages Long after the first Tanker of a embargoed Arab Oil arrives because . Oil companies ignored More than a decade of warnings that Middle East Oil was a trap. Cheap Oil huge profits and tax privileges offered by the United states government to companies operating abroad led the american Oil Industry into a tangle that will place serious constraints on the availability of Petroleum for years. During this period the government joined the Industry in efforts to keep the tangle from tightening a ultimately to Little Avail. Government and private studies interviews with oilmen and a review of congressional testimony by Industry and government officials show that . Oil companies abroad have become virtual hostages of the nations where they Drill their Wells. Government and Industry officials alike say the end of the embargo last week is no guarantee that millions of barrels of Middle East Oil will not be held for Ransom again. The Arab embargo helped to demonstrate painfully to americans that they consume More Oil 17 to 19 million barrels a Day than they produce nine million barrels a Day. What the embargo did no to demonstrate was How . Consumers ended up in this predicament. An examination shows a major . Oil companies pursued overseas Oil for profit in the face of repeated signs that they were losing control of their foreign holdings. Some companies have increased Domestic exploration. But the Reliance on foreign Oil goes on because the Oil Industry says it will take to to 15 years to develop self sufficiency in the United states. A the Oil companies obtained from the . Government tax privileges that permitted them to write off huge portions of the Cost of their overseas ventures. By the beginning of the embargo they had used up most of the write offs. Now the Industry says foreign Oil costs must be passed along to . Consumers. Middle East Oil a totalling 58 per cent of All the world s proven Petroleum reserves a has always been what oilmen Call a easy most of it was shallow says prof. Charles Issawi an Oil economist at new Yorkus Columbia University a generally 5.000 to 6,000 feet below the Sand. It was close to the coast. Rock formations were porous. And natural Gas was readily available to Force it to the top. Yield per Well was High a 6.500 barrels a Day in 1971 and still that Good. And production costs says t. M. Powell vice president of Standard of California were the lowest anywhere in the world a less than 15 cents a barrel since the Early 50s. In the United states by contrast where the . Geological Survey says there Are still 440 billion barrels of producible and undiscovered Oil enough to meet America s needs Well into the next Century most crude Oil Hayost $1 barrel or More to take from the ground for the past 25 years. And much of it is under unleashed Federal land. Unsurprisingly . Oil companies headed for the Middle East. James Boyd former executive director of the National commission on materials policy an organization created by Congress put it bluntly a there were better profits . Oil companies gained a foothold in the Middle East in 1928 by the end of world War ii several american companies held Large concessions a among them Standard of California. Socal found More Oil in saudi Arabia than it could Market and it brought in other companies. The California Arab Standard Oil co. Was formed a and it became the arabian american Oil co. Aramco one of two huge Oil consortia that dominate Middle East Oil today. Aramco holds concessionary rights to Oil Worth an estimated $1 trillion a giving it a face value of More than the combined assets of the top 500 corporations rated by Fortune Magazine. It is owned by Exxon Texaco. Mobil Standard of California and the saudi government. Together with Gulf. British Petroleum and Royal dutch Shell these giant american multinational corporations Are known As the 4�?~seven All Are fully integrated which Means they control their Petroleum from the gleam in the geologist s Eye to the gasoline pump at the service station. As the american Oil Industry shifted overseas it took along its practice of setting its crude Oil prices on the basis of . Rates in the Gulf of Mexico. But these prices were much higher than costs in the Middle East. In the late �?T40s, the Federal Trade commission says the Oil companies paid Only 40 cents a barrel for Oil in saudi Arabia and 25 cents in Bahrain including both production costs and royalties to Middle East governments. Prof. Issawi in his Book a Oil the Middle East and the says the royalties come to Only 20-25 cents a barrel. Christopher Rand a Middle East specialist once employed by Socal says they were even lower 12-18 cents a barrel. The american Oil companies turned around the Etc says and charged $1.05 a barrel and up a profits were enormous a says Oil writer Christopher Tugendhat. Americans had begun developing Oil in Venezuela too. And remarkably it was in South America not in the Middle East where american Oil companies got their first warning that their shift to overseas production could bring grief. Venezuelans saw the tremendous wealth of the . Oil companies a based it seemed on Oil which belonged to them. When world War la gave the allies a desperate need for Oil the venezuelan government increased its Oil prices 80 per cent. And in 1948, it enacted an income tax Law that guaranteed Venezuela 50 per cent of All profits . Oil companies made on venezuelan Oil. Now the Middle East wanted More profits too. One possibility for the big companies says Tugendhat in his Book a Oil the biggest business a would have been simply to increase their Royalty payments. They could have taken part of the increase As a business deduction against their . Income tax. That would have meant says Thomas Field executive director of tax analysts and advocates a Washington dc., Public interest Law firm that Quot if a Sheik had wanted to collect an extra Dollar in Royalty roughly 50 cents would have come out of the pocket of the Oil company and the other 50 cents would have come out of the . but the Oil companies part would have diminished that Industry s overseas profits. The . Government under president Harry s. Truman quietly proposed to Middle East nations that they Call the increase a a tax a instead of a Royalty. And the companies obtained a ruling from the internal Revenue service a by private letter says Field a former adviser to the Treasury departments legislative counsel a that the irs would accept the a a tax designation. That meant the companies could use the increase As a foreign tax credit. A the whole Dollar a says Field a would come out of the . it was therefore agreed. Tugendhat says a a that although the companies should continue to make Royalty payments on each ton of Oil they produced the main increase should come in the form of because the Middle East Oil nations had no tax Structure. The companies agreed to set an Export Price a now known As the a posted a it then became a comparatively simply matter to subtract the Cost of production and the Royalty Tugendhat says. A and to Divide the remaining profit equally Between the two in 1950, saudi Arabia became the first Middle East nation to use the new system and by 1952 All other important producing countries in the area except Iran had matched venezuelans profit split. A the american taxpayers a says sen. Abraham Ribicoff d-conn., a ended up subsidizing american Oil companies to develop a the tax situation a counters Annon m. Card senior vice president of Texaco a has no Fco i Quot a do with where we make our but prof. Issawi says output a shot up in saudi Arabia and Kuwait after the War. The Nixon administration has denounced the staff report. A the Etc report is biased against the largest integrated companies a says William e. Simon the president s Energy policy administrator. But the effects of the foreign tax credit on the . Treasury were immediate and dramatic. In 1950. Aramco paid $50 million in . Taxes. In 1951, it paid see Oil on 3d Rodino rises from obscurity to head impeachment movement from Page id May be too cautious and too inclined to share the chairman a Power this is the other Side of the Coin of Praise that he is very thorough and democratic. Implicit in this is some nostalgia for democratic rep. Emanuel Ceiler of Brooklyn who ran the committee with an Iron hand for 21 years until he was unexpectedly unseated in 1973. Even Ceiler it is generally agreed could not run the committee As imperiously today because of a new spirit of Independence in the House especially among younger members. Also the House has new liberalized rules of procedure including one that requires committee chairmen to consult their members frequently. Rodino consults frequently. In any Case the role of imperious Leader is not in his nature. His voting record has been Liberal on civil rights welfare programs school busing organized labor and the end to . Involvement in Vietnam. But for 20 years on the judiciary committee. Rodino remained in seilers Shadow getting relatively Little to do while crawling slowly up the seniority ladder. Still he appears to have made the most of his few chances. In 1968, for example while Ceiler was ill Rodino successfully floor managed the fair housing Bill for la Days. It was an act of political courage his constituents then were largely Middle class italians in the throes of racial backlash he is also proud of having pushed other Bills expanding civil rights and cutting re sanctions on immigration from certain countries including those of Southern Europe. This helped with his italian voters. So did h i s almost single handed mane vering while Ceiler Wasny to looking which resulted in Columbus Day becoming a National Holiday. It came naturally to him Peter Rodino is very italian and proud of it. It is said that Only Rodino could have an administrative aide named Francis o been who is half italian. Rodino used to try to persuade president Johnson to appoint the first italian american to the supreme court. About the Only invitations this Busy congressman accepts on the Washington cocktail circuit come from the italian embassy. On almost any italian or Semi italian occasion a Columbus Day or a visit by the italian president or a passel of journalists from Rome a Lyndon Johnson used to invoke the name of Pete Rodino somewhere Between Christopher Columbus Enrico Fermi Jack Valenti and Steve Martini. Steve Martini he was Johnson Sbarber. None of this is to suggest that Rodino fails to take his broader responsibilities seriously. He does. He works hard 14 to 15 hours a Day monday to Friday and com mutes weekends As he has done for 25 years to his Home in the loth congressional District of Newark. He runs one of the most important committees of Congress. Judiciary normally processes about a third of the Bills passed by the House its Broad mandate including problems of civil rights immigration busing abortion amnesty capital punishment constitutional amendments crime and antitrust matters. Clearly the subject he takes most seriously now is impeachment not Only because it involves the Fate of a president but also a the far larger question of reestablishing and reinforcing the legitimacy of Rodino recalls a recent encounter with a dentist of italian ancestry at an opera in Newark. The dentist said his father admired the congressman. The son evidently did no to. He said the impeachment inquiry was a nonsense a that Nixon should not be removed because he a Chasn t done anything other presidents Haven t a i Haven t prejudged this a Rodino said a but i do feel strongly that certain questions need to be the dentist looked unimpressed Rodino told him of his heavy mail particularly one letter from the parents of two children 7 and la. They said Rodino s committee could help answer the questions their kids were asking a what s wrong with our country is the president a liar and a Crook or in t he a the letter continued a a we re asking these questions for other children As Well who will one Day inherit this land a land they la either be proud of or still be asking questions a that s a lot of cliches a the dentist said. Rodino concludes a i guess i could t Dent his before his current celebrity the congressman from new jerseys loth District used to get about 2, 000 letters in a four month period. In the last four months he says he has received More than 400.000. The sentiment running about 4 to 1 for impeachment. It was last Spring that Rodino decided he d better Start boning up on the uncharted Shoals of impeachment after listening to the president s statements about watergate. A i was hoping he would say it All. That perhaps others had acted irresponsibly without his knowledge or that he had made a mistake. At any rate that he would explain it fully to the a i guess i wanted it to come out All right for him and the country. But i sensed that something was not coming across and that people were still wondering even after his statements. It was a terrible thing to contemplate that the president could be so it was not a foregone conclusion that Rodino and his committee would get the impeachment question. The speaker of the House could have turned it Over to a special select committee. In Andrew Johnson s time it began with the Quot reconstruction com and wound up in judiciary. At any rate. Rodino began his own research Reading the entire record of the Andrew Johnson impeachment three current books various Legal papers consulting with experts and Reading and rereading the constitutional references to impeachment. Quot its More a thought process than research a he says a because there a so Little to guide us. The More i read the More i realized that a High crimes and misdemeanours a was meant to be flexible. An impeachable offence does not have to be a criminal offence. Most experts agree Quot in my judgment the writers of the Constitution intended that the people should have another recourse against presidential abuses of Power besides the next election. That is Why they reposed the awesome Power of impeachment in the body closest to the people the House of representatives. A if they had Only criminal offences in mind they would have made the punishment fit the crime. They would have provided for criminal penalties. They did no to. They stipulated Only removal from office on conviction after As it stands each member of the committee will make up his own mind As to what is an impeachable offence and after the evidence is in vote accordingly. Other unsettled questions haunt Peter Rodino. He is Well aware the Constitution reposes a sole Power of impeachment in the House but he has made it Clear he seeks to avoid direct confrontation with the president. He says Quot if he is asked to testify and he declines what then we can subpoena him. And if he refuses to Honor the subpoena he can be found in contempt of Congress. Then what do we Send . Marshals Over to the White House to enforce the contempt citation will the supreme court be called in for judicial review what happens then to the House s a sole Power ? these Are just some of the unanswered unanswered they help explain Why Peter Rodino endured Quot Many sleepless nights in the first few weeks of his impeachment assignment Why he finally ended up in a Hospital for a checkup. The diagnosis was overwork too Little sleep too Many meals missed tension. He has not he says lost sleep Over published rumours that the White House is sifting his background for any material that could discredit him. In new Jersey the Essex county democratic organization which produced Peter Rodino also gave the world such luminaries As Hugh Addonizio now in jail for extortion. Addonizio and Rodino were roommates in Washington when both were Young congressmen. Addonizio a trouble came years later As mayor of Newark. Early in the 1960s the Fri tapped the phone of the late Angelo Gyp Decarlo a convicted extortionist and heard Decarlo claim Addonizio and Rodino had done a a favors for the mob. Rodino has repeatedly denied any connection with a Decarlo or the mob. Herbert Stern the . Attorney who obtained indictment of some 70 new Jersey Public officials has said do Carlo also was known to claim nonexistent political connections. Stern now a Federal judge said a there has never been an inquiry about Rodino never the slightest anything in my opinion he is an honest Man and a Fine Public the congressman was born in a crime Ridden area of Newark on factory Street where he recalls seeing a shootouts and people killed right in front of our own his father a toolmaker and Artisan who had come from Italy with no English and a just a tag on him a brought the boy up a to live with respect and crime in the streets still haunts Pete Rodino although he has lived the last 20 years on the White Middle class Edge of the North Ward. His wife has been mugged twice in the last three years once in front of their Home without damage to her sense of humor. Then or now it was not a life calculated to inspire poetry. But As a boy he acquired the works of Coleridge Poe Bryon and Shelley from a neighbourhood doctor. As an adolescent he wrote romantic poetry. As a Busy aging congressman he still writes poetry now More philosophic than romantic but shows it to no one not even mrs. Rodino. The depression sent Rodino to work Early and Between jobs and night classes he managed a degree from Newark Law school taking to years for five years of schooling then came marriage a the Rodinos now have two grown children and a granddaughter a and the War. It was in 1941 that his country first reposed the Burden of leadership on Pete Rodino. As an army enlisted he was put in charge of the bus tokens that would take him and a group of draftees from Newark to fort Dix. He was decorated for combat in Italy where he saw the dangers of communism and came Home worrying about it. His speeches against the spread of communism caught the attention of local pols in the loth District. In 1946, he ran for Congress against rep. Fred Hartley co author of the Taft Hart Ley labor relations act and lost by 5,000 votes. Two years later with Hartley retired he won and has been winning Ever since largely As a result of personalized attention to his italian constituents. He was Home every weekend says an associate a going to every wedding Wake and in 1 972, he was re distracted his constituents going suddenly from 7 to 43 per cent Black. But he managed because of his civil rights record to prevail in the democratic primary which is tantamount to election Over three Black rivals. This year however promises to be tougher. He already has a White rightist opponent opposing him for the primary and on the other Side there s talk the Blacks May unite behind one Black candidate. He still thinks he can win if Only the impeachment inquiry leaves him enough time to Campaign this Spring. A the impeachment Job also helps it has brought him More attention than All his 25 years in Congress. A i get Goose pimples a says mrs. Vincent Palumbo chairwoman of the Peter w. Rodino ladies auxiliary in Newark Quot every time i hear his name on to. Now he belongs to the Oakwood memorial mausoleum 312 Mon lieu ave. Tel. 888-4245 let us prove to you that above ground entombment can be less expensive than ground burial when bought at pre construction prices. Built for the Ages constructed of time defying natural Stone Granite Marble steel ond reinforced Concrete. Entombment above ground in clean dry ventilated Chambers. Accepted by All religious faiths. Coupon Oakwood memorial Park 312 Mon lieu ave. Highpoint . Please furnish free information about your new mausoleum we understand there is no obligation. Name. Address. Phone no. Coupon its like finding a bundle of Cash when you advertise with Enterprise want ads just look at some of the results your neighbors had mrs. . Thomas sold girl s 3 Speed Bike hot Pink in like new $50. Phone 882-xxxx or q 888 xxx. A Days Timothy Smith sold the 1965 Plymouth valiant. 1b Good condition i St $250. Pm 886 xxx. Day1 capt. . Johnson sold for Sale super Beetle Good in condition extra clean. $1500. 4 Call 883 xxx. Days1 mrs. E a. Wells sold in one antique what not Marble base and one love seat. Call 883 3 xxx Days Enterprise Call 885-2177 Enterprise want ads the marketplace of millions1

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