Carrol Daily Times Herald from Carroll, Iowa on March 18, 1976 · Page 1
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Carrol Daily Times Herald from Carroll, Iowa · Page 1

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Thursday, March 18, 1976
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Iowa a place to grow Carroll Daily Times Herald Vol. 107 — No. 55 Carroll, Iowa, Thursday, March 18, 1976 — Fourteen Pages Delivered by Carrier Each Kvening for 60c Per Week Copy Looking into Circumstances of Waiter CAB Enters Callaway Case WASHINGTON (AP) — The Civil Aeronautics Board today announced an inquiry into its waiver of charter flight regulations to benefit Howard H. Callaway's ski resort, and White House sources indicated Callaway will be replaced permanently as President Ford's campaign manager. One White House official said he understood "it's all a question of timing" as to when to announce a shift in the campaign hierarchy. Other sources said it is virtually a foregone conclusion that Rogers C.B. Morton ultimately will succeed Callaway. The reports came as the CAB announced it is looking into the circumstances of its waivers granted since 1969 permitting charter flights to destinations near the Colorado ski resort owned by Callaway and his brother-in-law. Church is Eighth to Enter Race By The Associated Press Idaho's Sen. Frank Church entered the Democratic presidential nomination sweepstakes today while Republican Ronald Reagan, his challenge to President Ford shaken by a fifth straight setback, was in North Carolina to prepare for the next of the primary elections. Church, announcing his bid in the mountain mining town of Idaho City, said the federal bureaucracy must be harnessed and that other candidates are ignoring important issues. "Peripheral questions preempt the debate," Church said. "There is no sense of over-riding purpose, no serious discussion of the fundamental choices which determine our future course." Church, noting his late start, compared his campaign to the race of the tortoise against the hare. "Like I'm doing, he started slowly but came on strong to win," the Idaho senator declared. Church joins seven major contenders for the Democratic nomination, including California Gov. Edmund Brown Jr., who got into the race last week. Reagan, despite his.losses to Ford, insisted today at a rally in Fayetteville, N.C., that his Church, See Page 2 Area Forecast Partly cloudy and continued mild Thursday night, lows in lower 40s. Partly cloudy and a little warmer Friday, highs in 70s. A CAB official said the waivers have been renewed several times and expire this April 30, when they probably will not be renewed because a recent change in the agency's charter regulations will permit the flights without waivers. The board's statement said it "has no information indicating improprieties in the grant of any waivers or exemptions." A White House spokesman acknowledged that replacing Callaway on a permanent basis "is under study." But the spokesman added: "Nothing has been worked out yet." He suggested it might be several days before any announcement is made. One White House official suggested that making the Morton-for-Callaway switch poses the additional problem of replacing Morton as the President's assistant in the White House whose duties include liaison with Ford's campaign organization. The President announced last week that Callaway, at his own request, was stepping down temporarily as campaign head while investigations of the ski resort matter were continuing. Asked Wednesday about published reports that Callaway has been fired, Pete Kaye spokesman for Ford's campaign committee, replied: "The status is the same today as it was yesterday." Callaway was not available for comment. Kaye said he would pass along any questions for Callaway, but suggested "don't hold your breath" waiting for a reply. The CAB's review of the Callaway case coincides with a report today by the Rocky Mountain News that Callaway personally arranged one or more meetings between his brother-in-law and CAB officials to speed up permission for charter flights to an airport near the resort. In a copyright story, the Rocky Mountain News quoted Callaway as acknowledging in an interview that he "made a call or two to set up something for" his brother-in-law, Ralph 0. Walton, with CAB officials. Walton, in turn, said he met with CAB officials once in 1973 and once in 1974, the newspaper said. Callaway, who was named secretary of the Army in 1973, said he didn't see anything wrong with arranging a meeting so long as he didn't attend. "I'll make a phone call or two but I'm not going to go over there," the Rocky Mountain News quoted Callaway as Simon Optimistic on the Economy Frank Church WASHINGTON (AP) Treasury Secretary William E. Simon says the economic recovery is better than anyone predicted and that inflation and unemployment may drop sooner than expected. There is a "fair chance" unemployment will drop to below 7 per cent this year and also that inflation will decline to about 2 per cent within three years, Simon said Wednesday. It was the most optimistic Nearly 2,000 Fans Cheer on the Knights By Myron Williams Ten state tournament bound school buses filled with 500 hopeful Kuemper High School students Wednesday afternoon returned home late Wednesday night filled with jubilation. They saw the Knights defeat Cedar Rapids Washington High School, 57-53. With Wednesday's win, the Knights were assured of playing both Friday and Saturday, either in the consolation or championship game. About 1,900 fans cheered Kuemper on in Veterans Memorial Auditorium in Des Moines. Only 400 Washington fans were in the stands. Kuemper was scheduled to play in the second game of the night, so most of the fans were on hand for the first game. In this clash, Kuemper partisans got behind Bettendorf which lost by 10 points to top-ranked Ames. It seemed that most of the Kuemper supporters were in favor ot lacing Bettendorf rather than the unbeaten Little Cyclones. But, Bettendorf failed to come through and Kuemper plays Ames Friday afternoon in semi-final round action of state Class AAA. The Kuemper fans were easily distinguishable. Red and gold caps and uniforms. Kuemper's colors, dotted the auditorium's south bleachers and balcony. Several St. Patrick's Day green outfits were also mixed in with the red and gold. The 10 buses were chaperoned by two married couples per bus. One chaperone commented that the trip was fine but she was "glad they don't play the radio that loud at home." Besides the cheerleaders, Washington brought along a cheering section of about 20. The pep section came armed with several invented cheers Fans, See Page 2 outlook for the economy yet expressed by a top Ford administration official and came against a background of reports of steady improvements in almost all sectors of the economy. "I don't know anyone who forecast the vigor of the economic recovery," Simon said. He said he was especially pleased with the "very positive development" of a record increase in new housing starts reported by the government Tuesday. "I think there is a fair chance that unemployment will be below 7 per cent at the end of this year," Simon told reporters. Last January, the administration officially estimated a jobless rate of between 7 per cent and 7.5 per cent by the end of the year. Simon said the underlying rate of inflation in the economy now is about 6 per cent, but he said he believes the annual rise in the cost of living can be reduced to 2 per cent in two to three years. The nation's inflation rate has not been below 2 per cent since 1965, when price increases that year averaged 1.9 per cent. Prices rose 6.9 per cent last year, and the administration is forecasting a 5.9 per cent increase in 1976. Simon repeated his intention to step down as Treasury secretary at the end of this year. "I'm going home in December,'' he said. He volunteered to reporters there are "an awful lot of people suggesting" that he run for governor cf New Jersey, his home state, in 1977, but he said, "I haven't made up my mind." Divorce Out for Margaret LONDON (AP) — A divorce has been ruled out for Princess Margaret, but a legal separation from her husband, photographer Antony Armstrong-Jones, is likely, sources close to Buckingham Palace said today. saying. In a separate interview with the Knight newspapers, Callaway said he wasn't in government at the time he made the call. The CAB waiver allowed Callaway's resort, Crested Butte, to bring charter jets to a nearby airport normally restricted to scheduled flights. Debate on Code Bill Continues DES MOINES, Iowa (API- Laws on prostitution and protection of the family came under scrutiny Thursday as the Iowa House entered its seventh day of debate on a bill to revise all state criminal laws. Some legislators want too "Decriminalize" prostitution and the airing of their views promised to stir heated argument. Also on the agenda were crimes against the family, including incest and abandonment of children. By the time the House adjourned Tuesday night, more than 350 amendments to the 427-page code revision measure had been filed and the House had disposed of about 120 of them. Majority Leader Jerome Fitzgerald, D-Fort Dodge, said the House for the second time this week will work into the night to push the prolonged debate toward its conclusion. The bill would make prostitution and "pimping," or soliciting for prostitution an aggravated misdemeanor punishable by up to two years in prison or up to $5,000 fine or both. It would make "pandering" — arranging for someone to become a prostitute or an inmate of a brothel — a Class D felony which carries a maximum penalty of five years in prison and $1,000 fine. In anticipation of the debate on decriminalization, Rep. Diane Brandt, D-Cedar Falls, distributed a paper entitled "Myths about Prostitution and the Law." It lists these among the alleged myths: Prostitution has always been a crime; making it illegal is necessary for public safety and order; outlawing prostitution is necessary to control venereal disease ( VD ) ; and outlawing prostitution deters organized Code, See Page 2 Inside Kissinger leaves Latins grumbling — Page 14. Women's news — Page 4. Editorials —Page 3. Deaths, daily record, markets, late news — Page 2. Sports ' Knights strike down C.R. Washington, Ames topples Bettendorf, Manilla ousted, Major league clubs to open drills —Pages 6,7 and 8. Happiness is Victory — -Staff Photo Happiness is victory and unidentified Kuemper cheerleader hugs Tom Kelly (left) after the Knights downed Cedar Rapids Washington. 57-53, in a first round Class 3A state boys' tournament game Wednesday night in Des Moines. To Tom Kelly's right is his brother Bob (14). Kuemper will go against unbeaten and top-rated Ames in a semi-final round game at 3:15 p.m. Friday at Veterans Auditorium. U.S. Oil Imports Soaring as Domestic Production Drops WASHINGTON (API —The United States last week imported more oil than it produced for the first time in history even though Americans are demanding less oil now than they did before the Arab oil embargo. The figures, released Wednesday by the American Petroleum Institute and confirmed by the Federal Energy Administration, show domestic production continuing a six-year decline and U.S. imports rising to record levels to meet demands that nevertheless are two million barrels per day below their peak level before the 1973 embargo. Imports have been rising since the end of the embargo in early 1974 and crept above the 8-million-barrels-a-day level last week for the first time ever. Domestic production has been declining steadily from its peak of over 9 million barrels a day. recorded in 1970. The result is that although conservation efforts, recession and mild winter weather since 1973 have lessened the amount of oil Americans use, the United States is more dependent on foreign oil sources than it was when the embargo was imposed. The industry institute said total imports last week rose to 8,196.000 barrels a day. Domestic production, meanwhile, came to 8.013.500 last week, the API said. Imports now comprise 45 per cent of the oil used in the United States. Last year, they accounted for 30 per cent, the API said. Reasons for the decline in U.S. production are hotly disputed. Industry officials point out that prices of domestic oil are controlled and they argue that higher prices are needed to stimulate production. They say price controls have served to keep prices too low to provide incentives for new exploration — extremely costly when it involves searching the ocean's floor or searches in remote areas. On the other hand, critics of the industry claim oil companies are deliberately deferring production to get higher prices. These critics maintain oil firms abandon old wells still containing oil rather than produce, at slightly higher cost, what is left in them. U.S. demand for oil has only recently approached its previous high of more than 18 million barrels a day in the first quarter of 1973. Over all of that year, the average daily American demand stood at 17,308.000 barrels per day and imports averaged 6.256.000 of that. Treasurer Stages Raids to Get Money PAPILLION, Neb. (AP)— Sarpy County Treasurer James Kenny decided enough was enough when banks returned 125 checks presented for auto licenses and taxes. Kenny grabbed a deputy sheriff, a screwdriver and a wrench and headed out to see those who had given bad checks for their 1976 plates. Kenny's first "your money or your license" venture yielded five sets of license plates and eight immediate cash payments. It also provided one car owner with potential problems. When they went to the man's place of employment, his boss said he was home, sick. But, Kenny said, when they went to his home with that information, his wife said, "That's strange. He said he was going to work today." Kenny said he'll continue the raids. Conferees Send Measure to Senate Compromise to Hold Down Taxes Approved DES MOINES, Iowa (AP) — Compromise legislation to Lamborn of Maquoketa has asked for more time to study Demolition at Arcadia — -Staff Photo Three Arcadia area farmers work on the demolition of a former tavern and grocery store on the western edge of the Arcadia business district. The farmers, Don and Otto Grundmeier and Kenneth Petersen said they hope to have the building torn down by the first of April if the weather remains right. The basement h'dle will be filled with the building debris and dirt, leaving a level vacant lot. They plan to salvage lumber from the building for a new conv crib and a machine shed, Otto Grundmeier said. taxes for the next two years was approved 8-2 by a House-Senate conference committee Wednesday and sent to the Iowa Senate. "This bill doesn't give a decrease in taxes," said Rep. Lowell Norland, D-Kensett. "But we can tell the people we've given every dollar available to those property classes where the biggest increases are coming." Senate Democratic Leader George Kinley of Des Moines said he wants to debate the package as soon as possible, but Republican leader Clifton five House members of the conference committee voted for the report, but the two Senate Republicans opposed the plan. "I can't support the conference committee report," said Sen. Roger Shaff, R-Camanche. "There's no 1 i m i t a t i o.n on local governments at all. We just make it a little easier for people to appeal the budgets." Shaff and Sen. Calvin Hultman, R-Red Oak, cast the dissenting votes. The package sets a 9 per cent increase limit on the property tax portions of city and county budgets for the first year. If the local government votes to exceed the 9 per cent ceiling, residents could appeal to the State Board of Appeal, which would then make the county or city justify the increase. The state board would have the power to grant or forbid the increase. In the second year, local governments would have a 7 per cent guideline on their budget increases in categories funded by property taxes and could go to 9 per cent after holding a second public hearing. One public hearing is required in any case. If the local government intended to exceed the 9 per cent limit, citizens could again appeal. The state would pick up the property taxef on the first $4,.500 of value of residents' homes who filed for the homestead exemption during the first year. In the second year, the regular $62.50 homestead credit would be granted and an additional exemption on the first $3,250 of actual value would be all.owed on residences. For farmers, an additional $24 million in agriculture land credits would be added to the regular $18 million the first year. In the second year, farmland would get the $3,250 exemption received by homeowners, and the land would be taxed 100 per' cent on productivity rather than 50 per cent productivity and 50 per cent cash value as is now the case. "This committee has absolutely turned its back on commercial property," Shaff said, contending businesses also should be given a tax break. Rep. Edgar Bittle, R-West Des Moines, agreed, saying the legislature should take a look at commercial property next year. Taxes, See Page 2

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