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Newspaper
Independent
Location
Long Beach, California, United States of America
Date
May 17, 1969
Page
5
The Nixon Administration faced House Democratic committee chairmen Friday as it rejected a proposed spending ceiling, signaling an impending clash over federal budget limits. The dispute centers on controlling annual outlays and test votes in Congress.
Government indicators released Friday show a slower inflationary pace with an April 0.3 percent rise in the industrial production index and personal income gains only half as large as prior months. Analysts warn the trend may be temporary and economists urge caution in declaring a turning point.
AFL-CIO labeled Nixon Administration farm labor proposals as unacceptable arguing they curtail union formation and recognition. Meany urged equal NLRA rights for migrant and resident farm workers, while budget debates cloud spending ceilings and veteran benefits. A construction worker Lester J Halé, 55, died after being struck by a passenger train near Ventura.
A group led by Senator George S. McGovern drafts a bill to apply an excess profits tax to Vietnam war contractors, mirroring World War II standards. About 15 Democrats back the plan including Mansfield Muskie and Fulbright. Kennedy undecided. Experts warn past excess profits taxes faced enforcement and loopholes, signaling likely opposition.
The Ways and Means Committee questions the wisdom of the plan to replace the 6 percent surcharge with an excess profits tax. The proposal would relieve income tax payers of about two thirds of the $10 billion yearly surcharge, shifting much to corporations. Supporters argue it could curb profits tied to the Vietnam war and curb military-industrial gains, naming Sen. Frank Church and others who back broader antiwar aims. The McGovern plan taxes 37 percent of war related profits while exempting normal returns on capital and ingenuity.
John Sherman Garrett brother of Kansas City football star Mike Garrett was ordered held to answer charges of escaping from authorities twice. Garrett, 30, escaped first on April 30 from the Hall of Justice where he awaited a hearing and probation violation. He was arrested one day later.
The Defense Department orders a comprehensive review of the C 5A transport program amid estimated costs $2.1 billion higher than four years ago. Air Force Secretary Robert C Seamans Jr directs high priority study of requirements, contracts, performance, and management with Lockheed. A team has worked at Lockheed Marietta since May 5 under Defense Secretary Melvin R. Laird’s request.
President Nixon designates May 30 as Memorial Day and calls for a day of prayer for permanent peace. He sets 11 a.m. as the national moment of prayer and orders half staff flags at all federal buildings. private citizens are urged to display flags at home as well.
House Armed Services Chairman L Mendel Rivers angry at Rep William Moorhead for criticizing military spending and budget increases. Rivers invited Moorhead to testify before the panel to substantiate his charges while Moorhead agreed to appear, preferably in open session, amid tensions over defense costs and contractor links.
Secretary Melvin Laird told Americans not to expect drastic postwar defense cuts. He said a smaller budget would harm national security and defended services against unfounded attacks. He urged constructive cost-cutting and noted some criticism is unhelpful and vague. Deputy defense chief Packard rejected claims that spending is driven by a military industrial complex.
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