New Braunfels Herald Zeitung (Newspaper) - December 12, 1980, New Braunfels, Texas
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* Taylor Communications Inc
25 cents December 12,1980
Vol. 89 - No. 122 20 Pages — 2 Sections (USPS 377-880)
New Braunfels, Texas
40-cent increase in gasoline prices forecast because of Iran-lraq war
WASHINGTON (AP) - Gasoline prices could climb 40 to 45 cents a gallon by next summer due to the Iran-lraq war, a new congressional analysis predicts.
Such an increase could occur even if the conflict ends by spring and *he two Persian Gulf nations begin rebuilding their oil empires, said the analysis by the Congressional Research Service of the Library of Congress Tighter supplies will be a major cause of the price increase, not only in higher prices for crude oil but also in
refiners taking advantage of the tight market to recoup profits lost during this year’s gasoline glut, said the study released Thursday.
In addition, the study said, refiners are unlikely to dump their record inventories on the market —- the historical practice, and one that helps hold down prices — because the war has convinced the industry that stockpiles are valuable assets and should be conserved.
“Gasoline prices might rise by 40 to 45 cents per gallon between now and
mid-1981 if all the components of this increase are realized," the study concluded.
Before their war, Iran and Iraq were exporting a total of 4 million barrels of oil a day But those sales have virtually stopped.
While the report estimated that the actual impact on global oil markets of the war is somewhat less — 400,000 to 1.4 million barrels a day — nevertheless “higher world oil prices will likely result in the aftermath of the war, even if it ends within the next few months."
The world oil price was about $32.50 per barrel before the Iran-lraq war and had been expected to climb $2 per barrel next month. But the report said that, “rather than this modest increase, a notably sharper one should be anticipated ... in a market where countries previously dependent on Iran and Iraq scramble to make up supplies on the spot market.”Inside
NATO warns Russia about Polish action
- BRUSSELS, Belgium (AP) - The NATO foreign ministers warned the Soviet Union today if it intervened in Poland the Western alliance would react “in a manner which the illegality of this development would require." They said such an intervention would mean the end of East-West detente.
A communique issued by the foreign ministers at the end of their annual winter meeting underscored the “great concern” felt by the allies at “the menace which hangs over Poland.” It said in part:
“Poland should be free to decide its own future. The allies respect the principle of non-intervention and strongly urge others to do likewise. Any intervention would fundamentally alter the entire international situation. The allies will be compelled to react in a manner which the illegality of this development would require.
“Therefore the council will keep the situation in close and continuous review. At the same time genuine Soviet efforts to restore the confidence
necessary will meet with a ready response from the allies."
The communique set the Polish crisis against the background of the year-old Soviet intervention in Afghanistan and what was described as Moscow’s “continuing military buildup.”
The Soviets, the allies said, have used force in breach of the principles of the U.N. charter and international law.
“Detente has brought appreciable benefits to East-West cooperation,” their declaration went on. “But it has been seriously damaged by Soviet actions. It could not survive if the Soviet Union were again to violate the basic rights of any state, its territorial integrity and independence."
Foreign ministers of the North Atlantic Alliance agreed that Soviet intervention could take varying forms, ranging from a military strike to a regime of repression by a puppet government in Warsaw.
The ministers also agreed that different forms of intervention would
require different responses. So they ordered their permanent NATO representatives in Brussels to continue preparing for every conceivable set of circumstances. And they agreed on arrangements to ensure speedy response to any Soviet action.
Secretary of State Edmund Muskie said he and his colleagues at their first day-long meeting Thursday expressed “very strong, positive, unanimous expressions of points of view on the Polish situation.” He told reporters any sort of Soviet intervention would be “the gravest sort of development, one that would call for the most serious kinds of responses."
But he refused to specify any likely responses, and said: “Given the possible scenarios, I doubt that the ingenuity of man could construct an automatic response.”
The French, who traditionally take a maverick stance within the alliance, also emphasized the unanimity of the allies.Christian symbolism
The sun Thursday casts a shadow from an old sign against the wall of Mission Valley Plant on Porter Street. The full shadow occurs only in late morning
as the sun begins to move toward the west. The automobile parked in front of the building seems to fit right in with the scene.
S fait photo by John Son tm
WASHINGTON (AP) - Ronald Reagan’s first eight Cabinet choices — all white, male and Republican — are speaking up quickly in favor of the president-elect’s plans to reduce taxes, cut the federal budget and strengthen national defense.
Still to come after presentation of the first group Thursday : Reagan’s decision on a secretary of state, an important foreign policy post that retired Gen. Alexander Haig seems increasingly likely to fill.
Reagan’s top aide, Edwin Meese III, told reporters today that “a good
many” of the remaining seven Cabinet-level appointments will be made next week — none before Monday — and all will be announced by the time Congress returns Jan. 5.
“We certainly hope” to have the full Cabinet named by Christmas, he said, adding that Senate Republican leaders want to begin confirmation hearings even before Reagan takes office Jan. 20.
Meese gave no hints as to which appointees might be named next week and would not even say whether they would be presented in Washington or inof first
Los Angeles. Reagan, who will return to California on Saturday, will not be present for the announcement, the aide said. The president-elect also did not attend a news conference Thursday at which the first nominees were announced.
The first eight selections included New York financier Donald T. Regan as treasury secretary, Reagan confidant Caspar Weinberger as defense secretary and his personal lawyer, William French Smith, as attorney general.
There were no surprises as Reagan’s
aides also introduced Rep. David A. Stockman of Michigan as budget director, Reagan campaign manager William J. Casey as CIA director, retiring Sen. Richard S. Schweiker, R-Pa., as secretary of health and human services, Connecticut industrialist Malcolm Baldrige as commerce secretary and deputy Republican Party chairman Drew I^wis as transportation secretary.
Regan, chairman of Merrill Lynch & Co., the nation’s largest brokerage firm, joined Baldrige in labeling inflation the nation’s “No. I problem.”
Both tax cuts and budget cuts are needed to fight inflation and stimulate productivity, said Regan, whose appointment gives the Cabinet roster an economic spokesman the Reagan team hopes will be respected in both Congress and in financial circles.
Stockman, who will inherit the job of molding the federal budget into the shape Reagan wants, noted that during the campaign Reagan promised at least a 2 percent cut, “and I think there’s no indication that we will back off from that.”
Weinberger, who won the nickname
“Cap the Knife" for his budget-cutting work in former President Richard M Nixon’s administration, was asked about his plans now for national defense.
He refused to be specific but said, “I support a strong American military force wherever it is in our best interest to do so.”
Reagan still must name seven more Cabinet-level appointees, and various sources say he will move quickly to nominate Haig as secretary of state — perhaps by this weekend.
Three more charges filed against Sanchez
Additional charges were filed sterday afternoon against Delfin nchez, 39, of Canyon I^ake, who was arged Wednesday after allegedly ming down his home.
Three charges of aggravated assault th a deadly weapon were filed in stiee of the Peace Harold Krueger’s fice. A $10,000 bond was set on each
lanchez remains in the Comal unty Jail in lieu of $25,000 bond on arson charge after allegedly bur-ig down his home Tuesday night in rseshoe Falls.
Sheriff’s Detective Ed Murphy said nchez allegedly kept his wife, ither-in-law and father-in-law in the ase before it burned down, eatening them at gunpoint. The bident began as a family distur
bance, he said.
Murphy said he and another investigator arrived at the scene at approximately 7:30 p.m. and used loudspeakers to call Sanchez out of the house. Sanchez refused to leave the house, Murphy said, adding that the house burst into flames minutes later.
Murphy said Sanchez apparently spread one-half of the house with gasoline and hid in a bedroom in the back of the other half of the house while the house burned. When the smoke became too heavy, Sanchez left the house through the back bedroom, where he was arrested by sheriff’s investigators, Murphy said.
The Canyon l,ake Fire Department had been notified before the fire began, and had been at the scene on standby, Murphy said.
Conviction set aside
But welfare recipient learns thriftiness doesn't pay
EVERETT, Wash. (AP) — Nancy Ann Ermert was once convicted of welfare fraud because she was too thrifty with the money she received.
Now the state’s high court has ruled that was no crime. But she learned a discouraging lesson about welfare checks — “spend every cent.”
The 28-year-old mother of three was convicted in 1977 of felony welfare fraud because she saved $1,400 while on public assistance and used it as a down payment on a new Toyota.
Her conviction was reversed unanimously Thursday by the state Supreme Court.
Despite the victory, Ms. Ermert said she feels “beaten down” by the entire affair.
The state “made such a big issue out of it, what I learned was to just be sure and spend every cent that I get,” she said.
Now she’s training for a supervisory position in
a Lynnwood supermarket and her welfare payments have been reduced to a day-care supplement. She hopes soon to be off welfare completely.
Ms. Ermert and her children began drawing public assistance in 1971, receiving about $300 a month and paying $165 in monthly rent.
In 1973, she entered beauticians’ school and began receiving an additional $100 under an incentive program. At the same time, the family moved into low-income, subsidized housing where their rent dropped to $28 a month.
So with nearly $240 a month more, Ms. Ermert found that “saving $100 every two months was no problem.”
She set up a trust account for her son to make it difficult to withdraw funds and encourage her savings habit. And by 1975, there was just under
$1,400 in the account.
The state Department of Social and Health Services brought suit against Ms. Ermert for exceeding the “resource limit" after receiving an anonymous tip that she used the savings along with borrowed money to buy a car.
At the time, welfare recipients could not exceed the state limit of $425 in savings or a maximum net worth of $1,^00 Ms. Ermert said the state “harassed the H out of me” and checked nine different banks to make sure she had no savings.
Ms. Ermert insisted she had done nothing wrong. “I always kept them informed, as far as my employment goes, and any money I received.” The state high court found there was no evidence Ms. Ermert was aware that under state rules she would be ineligible for assistance.