Carrol Daily Times Herald from Carroll, Iowa on March 11, 1976 · Page 1
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Carrol Daily Times Herald from Carroll, Iowa · Page 1

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Thursday, March 11, 1976
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lo\\a a place to grow Carroll Daily Times Herald Vol. 107 — No. 50 Carroll, Iowa, Thursday, March 11,1976 —Twelve Pages Delivered by Carrier Each Evening for 60c Per Week ssn|{lle Copy Feel They Can Save Money, Get Better Private Programs Local Governments Drop Social Security ByJOHNSTOWELL Associated Press Writer WASHINGTON (AP)'Growing numbers of local governments are pulling out of the Social Security program at a time when the big federal benefits system is being buffeted by inflation and unemployment. While alarmed that the defections may snowball, federal officials say there is no indication now of any noticeable impact on the Kissinger Leaps Into Campaign WASHINGTON (AP) -Secretary of State Henry A. Kissinger jumped into the 1976 presidential campaign with both feet today, charging that politically motivated criticism of American diplomacy will wreck the nation's foreign policy. "If the quest for short-term political gains prevails over all other considerations, (this) can be a period of misleading oversimplification, further divisiveness and sterile recrimination," Kissinger declared. In a speech prepared for delivery in Boston, the secretary mentioned no names, but clearly was aiming his remarks at former California Gov. Ronald Reagan and Sen. Henry M. Jackson, D-Wash., both contenders for the presidency. State Department officials said the secretary decided to move away from the traditional path followed by secretaries of state who have • stayed out of political campaigns. Kissinger reportedly feels that the attacks by Reagan, President Ford's main competition for the Republican nomination, and Jackson are blatant attempts to use foreign policy as a scare object. Kissinger is known to feel that both men are engaging in demagoguery and therefore decided to criticize them even if indirectly. Alluding to Reagan and Jackson statements that President Ford and Kissinger have been too conciliatory to the Soviet Union and have weakened American power, the secretary said: "What do those who speak so glibly about one way streets or preemptive concessions propose concretely that this country do? What precisely has been given up?" Kissinger said such critics are "suddenly pretending that the Soviets are ten-feet tall" and the United States is becoming a second rate power. They know they are wrong and are making reckless allegations, the secretary charged. It is time these critics come up with concrete options, he said. "What level of confrontation do they seek? What threats would they make? What risks would they run? solvency of the Social Security trust funds. They point out that, despite the dropouts, the over-all number of state, county and city employes covered by Social Security and paying contributions is steadily increasing and has been since they became eligible in 1950. Under federal law, state and local governments that have had Social Security for at least five years can pull out by giving the federal government two years' advance written notice. They can't join again. Since 1959, a total of 322 local governments with 44,667 employes have dropped out of Social Security, most of them in California, Louisiana and Texas. And 207 other governments with 53,187 employes have given the required two years' advance notice of intention to terminate. Alaska, with 12,649 state workers, is the first state to file notice of intent to pull out, but Social Security officials , believe that notice was merely protective while the state weighs a decision. Financially troubled New York City also is exploring the possibility of pulling its 230,000 employes out of Social Security to save the city about $200 million annually. About 81 per cent of state and local government employes covered by Social Security also have some type —Staff Photo Pony Express Riders — The Royal Blue Saddle Club of Carroll and the Manning Easy Riders saddle club will participate in Iowa's Eighth Annual Pony Express Ride April 17, for donations to Easter Seals. From left: Randall Mantz, Royal Blue president; Mike Mikkelsen, regional director for Easter Seals, and Merlyn Zubrod, Easy Riders president. The two clubs will ride through every Carroll County community to pick up business donations. Ex-Nazi is Named in Spite of Protests CHICAGO (AP) - Rotary International has nominated as its next president an Austrian ex-Nazi despite protests against the move from Dutch Rotarians, an official of the worldwide service organization says. Dr. Wolfgang Wick, vice chairman of the board of directors of the Austro-American Magensite Co. in Radenthein, Austria, was the sole candidate picked earlier this year by an 11-member Rotary nominating committee. Simon Wiesenthal, an Austrian Jew who since the end of World War II has made a career of hunting ex-Nazis-in-hiding, said Wick held ah important economic post from 1938 until early 1945 in Austria. Wiesenthal said Wick became a Nazi member in 1933, five years before the German occupation of Austria, and in February 1945 was called into the Waffen SS, the Nazi elite army corps, • because of his position. The New York Times carried a similar report in its Thursday editions. Wiesenthal also said that Wick spent more than a year in a British, internment camp in Austria after the war. The governors of the 8,000 Rotarians in The Netherlands of supplemental retirement plan. The Metropolitan Washington Council of Governments in the District of Columbia found that, by pulling out of Social Security and spending the same amount of money on a private plan, it could: —Allow workers to retire at age 60 with 25 years of service as opposed to age 65 with 30 years service under Social Security; —Pay retirement benefits at 80 per cent of the highest consecutive five years salary rather than 55 per cent under Social Security; —Reduce payments from its 166 employes by a total of $20,000 annually with an additional $22,000 agency saving, and maintain survivor benefits. Social Security officials said in interviews that local governments sometimes consider defecting when they get into money trouble, especially if a hard sell is made by a profit-motivated insurance company hoping to write a private retirement plan. "Some of these plans are no sounder than Social Security and some are worse," a spokesman said. For example, federal sources said, a local government's new private pension plan may offer higher retirement payments but smaller or even no payments in lieu of some benefits found in Social Security, such as coverage of a deceased worker's widow and children, disability payments if the worker is unable to earn an income, Medicare health benefits and payments to students up to the age of 22 years. Some private plans also have less desirable provisions for vesting and portability — or carrying a private pension plan to a new job. In Move to Improve Ties With China Plan Cutback in Arms Credit Sales to Taiwan issued a formal protest against the nomination, as did Israeli Rotary officials, said Wiesenthal. In a telephone interview Wednesday night in Chicago, where he is on a speaking tour, Wiesenthal said he knew of no war crimes that Wick allegedly might have committed. "It is not my business. He didn't commit any crimes. People only ask me if he was a Nazi. "I have no knowledge about any crimes. I don't know . .. and I don't look for it." Harry A. Stewart, general secretary of Rotary International at its Evanston headquarters in suburban Chicago, said Wick "resigned the nomination for personal reasons as he stated it," after a protest by The Netherlands Rotarians. The nominating committee, however, comprised of persons from six regions of the world, once again chose him. Under Rotary rules, any of the 16,705 chapters worldwide may place in nomination any other qualified nominee before an April 16 deadline. But if no other candidate is preferred, after a 10-day withdrawal period, Wick automatically would be elected at the organization's June 13 convention in New Or- Wick, See Page 2 WASHINGTON (AP) -The State Department is planning a sharp cutback v in U.S.-financed military credit sales to Taiwan in a move toward further normalization of relations'with mainland China, sources say. The administration is asking Congress to approve $35 million in credit sales for Taiwan in fiscal 1977, down' from $80 million for the current fiscal year. 'Deadly 9 Force Use is Argued DES MOINES, Iowa (AP) Having decided lowans may use "deadly force" to stop forcible felonies, the Iowa House argued Thursday the use of similar force by officers to prevent escapes. • There were at least two schools of thought on the subject as the House debated for the third straight day a 427- page bill to revise and recodify all Iowa criminal laws. When the Senate passed the measure last year, it decided to allow correctional or peace officers to use reasonable force to prevent persons convicted of a felony from escaping. It said that includes deadly force when the officer "reasonably believes'.' it is necessary. Before the House Thursday Code, See Page 2 Atlantic to Audubon Line to Be Upgraded DES MOINES, Iowa (AP) The Iowa Department of Transportation (DOT) has agreed to upgrade the Rock Island Line's 25-mile branch line between Atlantic and Audubon. Under the contract, the state will provide $355,517, and the 12 shippers along the line will provide $385,143. The bankrupt railroad will contribute $267,700 when it is financially able. The state's share will come from general funds under terms similar to other track upgrading projects. The state program began in 1974 and is administered by the DOT. In justifying the reduction, officials said only that Taiwan's economy is becoming strong enough to take care of the island's own defense needs and that a plant under construction for assembling combat planes on Taiwan is near ing completion. But other qualified sources said the $45 million aid cutback is tied in with the long-range U.S. strategy of normalizing relations with the People's Republic of China. Meanv/hile, there was no immediate confirmation of a report in the Boston Globe today that President Ford gave a secret pledge to Chinese leaders to cut the U.S. military force on Taiwan from about 2,200 to 1,100 in the next year. This would be in line with recent trends which have seen U.S. forces there cut from 8,600 four years ago. The Globe said Ford made the pledge to Vice Premier Teng Hsiao-Ping during the President's visit to China last December. Taiwan has been a major stumbling block in U.S. efforts to move closer to Peking. The American aid program for Taiwan is not the only problem. To establish full diplomatic relations with Peking, the United States also would have to remove all U.S. forces and military installations from Taiwan, abrogate the bilateral defense treaty and suspend diplomatic relations with the island government. Thus, the aid cutback is viewed here more as a gesture designed to keep the normalizing process moving rather than as a significant step toward that goal. The goal of normal diplomatic relations was set down in the Shanghai Communique, signed at the time of former President .Richard M. Nixon'^ visit to China in 1972. Secretary of State Henry A. Kissinger said two weeks ago that "there is no policy to which we attach greater significance than the normalization of relations with China." He said relations with the People's Republic are developing at about the pace that was foreseen in 1972, but he noted that domestic circumstances have impeded the process. This was an apparent reference to a recent House resolution calling on the administration to do nothing to "compromise the freedom" of Taiwan. It was signed by more than half the House membership. Military Cutbacks Politically Sensitive WASHINGTON (AP) —The Pentagon is preparing to announce the first in a series of politically sensitive military base cutbacks. Sources said the Air Force has tapped three bases — one of them in President Ford's home state of Michigan — to be closed and about 20 others to be reduced or otherwise realigned. The three Air Force bases to be shut down are Kincheloe in Michigan, Craig in Alabama and Webb in Texas. Two bases — Loring in Maine and Richards-Gebaur in Missouri — are in line to be reduced significantly. The Pentagon was expected to claim in its announcement today that the moves will help streamline the military base structure, promote efficiency and save up to $150 million a year, starting in 1978. Information on the number of military and civilian jobs to be affected was not available in advance of the announcement. Sen. John Tower, R-Tex., said there are 2,000 airmen and 650 civilian workers at Webb alone. The Army and Navy are due to follow in later weeks with their base cutback nominations. Area Forecast Rain likely changing to snow late Thursday night or early Friday. Lows Thursday night lower 30s. Highs Friday mid 30s. Precipitation chances 60 per cent Thursday night and Friday. This is a departure from the Pentagon's normal practice of announcing all service base cutbacks at once rather than stringing them out. It appeared likely the Pentagon hoped the over-all impact would be softened if the moves were made public in stages. Pentagon officials have been working over a list of 165 proposed Army, Navy and Air Force base reductions, closings and consolidations for several months. There have been reports of debate between Pentagon officials and White House staff members over the advisability of going ahead with base cutbacks in a political campaign year. Defense Secretary Donald Rumsfeld and Deputy Secretary William Clements were said to have insisted on the reductions in view of the Pentagon's record $100.1-billion defense spending budget for next year. "\" ""*" Inside ICC chief challenges economics of nuclear plants — Page 12. Larger beef supply expected this year — Page 5. Women's news — Page 4. Editorials —PageS. Deaths, daily record, markets, late news — Pa^e 2. Sports All in the family for Knight cagers, Manilla whistles b> Ft. Dodge, Mediapolis downs Aplington. Storm Lake ousted in sub-state — Pages 6 and 7. K.C. Aids Fund -Staff Photo Ambulance Director Larry Cruchelow, left, accepts a $500 check from Tom Schapman, of the Knights of Columbus. The Carroll K.C.'s presented the check to the Carroll County Ambulance Service for the purchase of heart monitor equipment. The ambulance service has collected $2,900 towards the purchase of the equipment. About $1,100 is still needed, Cruchelow said. The equipment will be used on patients with suspected heart problems, he said. Conferees Expected to Reach Decision Today or Disband Senators Deliver Ultimatum on Property Taxes • DES MOINES, Iowa (AP) - A House-Senate conference committee charged with working out a compromise on a plan to hold down rising property taxes was expected to reach a decision or disband Thursday. Senate members late Wednesday delivered an ultimatum anq 1 what they called a final offer after a plan proposed by House Democrats, was rejected 7-3, "We on the Senate side have , given the most we feel we can give," said Sen. Lowell Junkins, D-Montrose. "The Senate members — Republicans as well as Democrats — are in complete agreement," said Sen. George Kinley, D-Des Moines. "Unless we see drastic changes, we're not in a nego- tiating position any more." The "final offer" includes a two-year plan to be used until a task force could work out the best way to finance local governments. The. school foundation plan would be raised from the scheduled 74 per cent to 78 per cent state participatipn the first year, and the agriculture land credit would be doubled from $18 million to $36 million. Junkins said this would reduce the scheduled $70.9 million property tax increase on farm land to $46 million, and the $31 million increase on residences to $17 million. In addition, cities and counties would be limited to a 9 per cent increase in the parts of their budgets funded by property taxes. In the second year, the school aid plan would remain at 78 per cent unless the state had enough revenue to increase it by 1 per cent. The agriculture land credit would be returned to $18 million, but farm land would be assessed at 100 per cent productivity instead of the current half productivity and half market value. In addition, homeowners could claim an additional exemption on the first $3,250 value of their homes. Local governments would have a 7 per cent guideline on budget increases but would be allowed to increase that to 9 per cent after holding an extra public hearing. In both years, cities or counties wishing to exceed budgets by more than 9 per cent would have to appeal to a state commission. Rep. Lowell Norland, D-Kensett, said he saw several problems in the Senate ultimatum. "It doesn't do the things we would like to see." Norland said he would study the proposal overnight, "but I certainly wouldn't raise anyone's hopes that this will become the conference committee report.' If the conference committee disbands, another could be appointed. "The taxpaying public wants to know where we are," said Rep. James West, R-State Center. ' "Let's don't send in another conference committee to not do any thing either," he said. The need for property tax legislation came about after the Iowa Department of Revenue issued a property tax equalization order last fall. The order raised property values an average of 30 per cent statewide. That automatically raised the amount of^money to be collected locally for schools and could result "in local governments • increasing taxes considerably without raising the tax rate. The legislature has tried to hold down those increases but has been unable to agree on the best way to do so. Tax Bills Could Be Delayed 6 Months By The Associated Press The mailing of 1976-77 property tax bills could be delayed six months — beyond Jan. 1, 1977 — because of implementation of proposed changes in farmland and home valuations being weighed by state lawmakers, county officials say. The proposals would value farmland totally on its earning capacity instead of the current practice of valuing it half on earning power and half on selling price. Homeowners would getastandard exemption. Iowa homes now are valued on their estimated total sale price. Some county assessors and auditors say they would have to change their assessment cards and tax rolls for each farm and home in their county. That is a process that they claim could take months in some counties. "I've got five girls in my office and when we heard what they were discussing, we about decided to go up to the third floor of the courthouse and jump off," said Warren County Auditor Beverly Dickerson of Indianola. She said putting the proposed changes into effect would mean that "all we've been doing for the last four months would go out the window" and would delay mailing of property tax bills in the county "by up to six months." Next year's property tax bills that pay for city, county, school and other government operations, normally would go out some time after July 1. Linn 1 County Auditor Forrest Holveck, president of the Iowa State Association of Assessors, said he "wouldn't have any idea how long it would take" to change current values. But he added that. "Any change the Legislature made would mean a lot of work for assessors." The executive director of the Iowa State Association of Counties, Donald Cleveland, said a delay would mean local governments would have to borrow money to operate until the first installment of property taxes is paid. "We're hoping the Legislature will realize the tremendous amount of money that will be wasted in interest alone," Cleveland said. < ' ' .'

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