IOVSQ a place to grow ( Carroll Daily Times Herald Vol. 107 — No. 56 Carroll, Iowa, Friday, March 19, 1976 — Ten Pages Delivered by Carrier Each Evening for 60c Per Week | f Single I9C Copy Smallest Gain in Over 4 Years ^^^^^jmm^^^ ^ : 4^^^^^BI^^^M^f^^^^^^HH^^^^^^MK..Mg Food Dip Slows Inflation Rate WASHINGTON (AP) - A near-record drop in grocery prices held inflation to its smallest monthly increase in more than four years during February as consumer prices rose only one-tenth of a per cent, the government said today. Falling prices for beef led the decline at grocery counters where prices tumbled 1.5 per cent, the biggest monthly drop in 24 years, the Labor Department said. Gasoline prices also declined, but the department said the food was the big factor in the slowdown of prices last month. February's increase in overall consumer prices compared with an increase of four-tenths Tax Bill Approved by House DES MOINES, Iowa (AP) — A compromise property tax bill, approved by the Iowa House over objections of opponents that it offers no real property tax relief, was awaiting action in the Senate Friday. After wrangling more than four hours, the House voted 5641 Thursday night to accept the report of the Senate-House conference committee that put together the compromise, then passed the bill 55-41 and sent it to the Senate. (Voting for the bill were Reps. Bill Hutchins, D-Guthrie Center, and Carroll Perkins, D-JeHerson. Voting against were Reps. Frank Crabb, R-Oenison, and Opal Miller, D-Rockwell City.) Rep. Lowell Norland, D-Kensett, the conference committee chairman, said the compromise plan will return to home owners and farmers $54.8 million in "windfall" revenue the state will get next year because of property valuation equalization orders issued last fall. "The idea is to return those dollars to those two classes of property most affected by the equalization orders," Norland said. "This bill does it." But Rep. Sonja Egenes, R- Story City, charged that instead of relieving property taxes, the bill would only "take money from some property taxpayers to help other property taxpayers." It is "a new breakthrough — financing property tax relief by property taxes," declared Rep. Richard Welden, R-Iowa Falls. He called the compromise "the ultimate insult to representative government," . Rep. Delwyn Stromer, • R-Garwin, urged rejection of the compromise so that a plan he proposed could be considered. He said that while the corn- Taxes, See Page 2 Area Forecast Partly cloudy to cloudy with chance of scattered thundershowers Friday night and early Saturday. Lows Friday night in lower 40s. Cooler Saturday, highs upper 50s to lower 60s. Precipitation chances 20 per cent. of a per cent in January and was the smallest since September, 1971, when prices also rose one-tenth of a per cent. All figures are adjusted to account for seasonal influences. Nonfood prices also continued to increase at a moderate rate last month, while the cost of services such as medical fees and auto insurance went up sharply but at a somewhat slower rate than in January. The department said the consumer price index in February stood at 167.1 meaning that consumers had to pay $167.10 for goods and services that cost $100 in the 1967 base period. The index is" not seasonally adjusted. Despite the small February increase in prices, consumer prices still were 6.3 per cent higher than a year ago. However, that is the lowest 12- month increase, since July 1973, when prices had risen 5.7 percent. Wholesale prices, which foreshadow trends at the retail level, have fallen at an adjusted annual rate of 3.8 per cent since November. The Labor Department also said that spendable earnings of workers showed no change in February after rising two- tenths of a per cent in January. Over the year, real earnings — what's left after taxes and inflation — were up 4.8 per cent. The government said a four- tenths of a per cent increase in average hourly earnings was offset by a decline in average weekly hours worked and the one-tenth of a per cent increase in consumer prices. The Labor Department said the 1.5 per cent drop in grocery prices, which accounts for the major portion of the food index, was the second biggest drop since the Labor Department began tracking these prices in 1952. The latest price report follows a spate of economic reports this week showing steady improvement in almost all sectors of the economy. Industrial production in February increased for the 10th consecutive month, housing starts jumped 27 per cent to the highest level in nearly two years and businesses began expanding Automobile Art — —Staff Pholo Students of Kuemper High School decorated several cars of Knight boosters this week. Decorating Ray Pollastrini's car from the left are: Jim Busche, 17; Jim Waters, 18, and Maria Pollastrini, 16. Kneeling is Sue Wittry, 15. Although the station wagon will not be travelling to Des Moines, it will remind area residents of the Kuemper Knights trip to the boys' state basketball tournament in Des Moines. The Knights met the Ames Little Cyclones in semi-final action Friday afternoon. Job Security to Be Principal Contract Demand by UAW DETROIT (AP) -Reduced work schedules without pay cuts will be the United Auto Workers' principal demand when it negotiates new con- Bracts this summer, union leaders say. . UAW President Leonard Woodcock said Thursday the strategy is designed to get the union's 60,000 laid-off members back to work. "The central theme of 1976 bargaining has to be job security. This has. to be achieved by reduced work time," said Woodcock at the opening session of a UAW collective bar- Chamber to Host Farmers on Mar. 23 The Carroll Chamber of Commerce will sponsor the second annual Agri-Business banquet Tuesday, March 23, Lyle Bernholtz, president of the Carroll Chamber of Commerce, announced Friday. Purpose of the banquet is to provide an opportunity for area farmers and Carroll businessmen to enjoy an evening together and communicate their problems gaining convention. About 2,800 delegates will be here through Saturday to approve general.demands which will be presented to industry bargainers when formal talks with the auto makers begin in July. Contracts with Ford, General Motors and Chrysler — covering 850,000 auto and farm implement workers in the United States and Canada —expire in September. Woodcock did not outline any specific plan for reducing work time. He said union negotiators need flexibility at the bargaining table "so as not and goals. Iowa Secretary of Agriculture R.H. Lounsberr/y will attend and present Century Farm certificates to 44 area farmers who have had their farms in the same families for 100 years or more. The program will start with cocktails at 6:30 p.m. and dinner at 7:30 p.m. at the Carroll Elks' Club. It will be on the light side with entertainment by the Elks' Quartet and a rural-oriented bicentennial slide presentation presented by Pete Hannasch of Farmland Industries, Kansas City." to be locked into any one position." But he did say, "We want to examine all possibilities . .. reduction in the time worked each week, in the time worked each year, in total work life or any feasible combination which results in more jobs." At a news conference after his speech, Woodcock would not rule out a drive for a 32-hour week at 40 hours' pay, a proposal sought by several UAW locals in the 1.4-million-member union. However, top union sources say that proposal is too costly for serious consideration-. The UAW says the severe sales slump of 1974 and 1975 cost the union 75,000 jobs in addition to current long-term layoffs. ' Woodcock said union demands also would include improvements .in the cost-of-living wage adjustment, health care programs, company-paid unemployment benefits and pension provisions. Woodcock made no mention of demands for a direct wage increase in his speech, but he later said the UAW "certainly will ask for one." inventories by the biggest margin in over a year, the government reported. Ford administration officials consider the economic news since the first of the year a vindication of their policies and a boost for the President's election chances. Unemployment also has dropped dramatically over the past four months, and wholesale prices have declined at an adjusted annual rate of 3.8 per cent since November. Treasury Secretary William E. Simon predicted earlier this week, in the administration's most optimistic forecast to date, that joblessness may drop below 7 per cent this year and that inflation will decline to Wegner, Boys Town Head, Dies OMAHA, Neb. (APi—The Rt. Rev. Msgr. Nicholas Wegner, who took the reigns of Boys Town upon the death of its founder, Father Edward J. Flanagan, in 1948 and built the home into a $200 million institution, died Thursday following a long illness. Msgr. Wegner, 77, died at 7:02 p.m. at St. Catherine's Hospital Center for Continuing' Care, where he had been for the past year after suffering several strokes. The exact cause of death has not been determined, according to the Rev. Robert Hupp, who became Boys Town director when Msgr. Wegner retired in 1973. Funeral services will be held Monday at 10:30 a.m. at Boys Town Chapel, Father Hupp said. Father Hupp said of Msgr. Wegner: "Thousands of Boys Town alumni will mourn his passing. He filled the big shoes of the founder and it was under his management that the home grew to what it is today." Boys Town, a private Roman Catholic institution caring for orphans or boys referred by courts or social agencies, achieved considerable recognition after a 1938 movie, "Boys Town," starring Mickey Rooney and Spencer Tracy. Born in Humphrey, Neb., Msgr. Wegner was a promising young baseball pitcher who rejected the offer of a major league scout to enter the seminary in 1918. Years later, as director of Boys Town, Msgr. Wegner's interest in athletics and youngsters served him well. He headed the world-re- Wegner, See Page 2 Inside lowans to promote meat sales in Detroit—Page 10. School papers — Pages 5 and 10. Church notes — Page 5. Women's news—Page 4. Editorials —Page 3. Deaths, daily record, markets, late news — Page 2. Sports Pick, Olberding named to girls' all-state team, Heelan wins, Spencer vs. Forest City for title, Corning wins by one point—Pages 6 and 7. about 2 per cent within three years. But the Congressional Budget Office warned that while the recovery is progressing, the improvement rate could slow sharply next year unless the economy is given more stimulation than the administration has proposed. Buyer's Market on Homes WASHINGTON (AP) - It's a buyer's market for house hunters. The Federal Home Loan Bank Board reported Thursday that the average price of new homes dropped $2,000 in February to $45,200. The effective interest rates on new homes declined for the third straight month to 8.94 per cent from 8.99 per cent in January, the board said. The rate has not increased in four months. The average cost of an existing home dipped $1,900 to $38,000, while loan rates continued a four-month drop to 9.24 from 9.27 per cent. It was the first price drop in four months for existing homes and the second in four months for new homes. Rally for KHS Cagers Set on Sunday Plans for a rousing welcome home for the Kuemper Knights state tournament team were being formulated Friday by the Chamber of Commerce and the high school. M.J. (Mike) Arts, executive vice president of the Chamber, said a public rally will be held at 2 p.m. Sunday at Kuemper auditorium. All students and the general public are invited. At this time, Arts said, no plans have been made for a caravan to accompany the school buses into Carroll. If the uncertainty as to plans of the team is resolved, a caravan will be formed. The information will be broadcast locally, Arts said. The caravan would go out on the highway and accompany the team to the school. The Knights, who beat Cedar Rapids Washington Wednesday, faced top-rated Ames Friday afternoon. A win Friday puts Kuemper into the Class AAA championship game Saturday at 8:35 p.m. A Knight loss means they will play in the consolation game 3:30 p.m. Saturday. Robber's Bid for Gun is Rejected OMAHA, Neb. (AP) - Authorities have rejected a request for a gun permit after the applicant was truthful about his purpose for wanting to carry a firearm. Asked his intended purpose, the applicant wrote, "robbery." Police discovered the man was wanted in another state and jailed him. But Options Will be Kept Open Chances for Ford Visit to Mideast Seen Slipping WASHINGTON (AP) — The chances of a visit by President Ford to the Middle East this spring are slipping, but U.S. officials say the options will be kept open .until the Arabs and Israelis are fully sounded out on prospects for a new round of negotiations. Some administration strategists are concerned that Ford might appear to be grandstanding in the midst of the presidential campaign if he made the trip without solid evidence that it served a useful purpose in promoting a settlement. Secretary of State Henry A. Kissinger and his aides have just begun serious examination o( Israel's offer to its Arab neighbors to return occupied territory in exchange for an Egyptian end-the-war declaration. King Hussein of Jordan, a key figure in Mideast relation- ships, will 'be here late this month to confer with Ford, Kissinger and others. Having ruled himself out of negotiations when the other Arab states crowned the Palestine Liberation Organization with the right to represent the West Bank, Hussein is now being wooed by the Rabin government to become involved again. Even in advance of Hussein's visit, Israeli sources report the Rabin government is being pressed by the State Department to be mo're specific about how much land it would cede for the declaration. Since the proposal is novel and has run into sharp criticism from Israeli opposition leaders, Israel is moving slowly in spelling out details of its proposal. Despite this, U.S. officials say it offers the current best hope of resuming the "momentum 1 that Ford and Kissinger seek in the Middle East. • Late last year, top U.S. officials virtually predicted a visit by Ford to the region by spring. Now, while acknowledging that chances have slipped, they insist that the U.S.-led quest for a path to negotiations still holds promise of success and that Ford may be on his way by late spring. "It's still wide open," one key official said. Besides Jordan, the State Department has yet to get a solid idea of Syria's position about further negotiations. This will become clearer when U.S. Ambassador Richard Murphy returns from Damascus for consultation next week. Hermann Eilts, the envoy to Cairo, has returned to his post and remains in touch with Egyptian leaders. Another Trial? — Patty Hearst may have another trial in her future. Emily and William Harris, arrested with Miss Hearst last October, want her to go on trial with them after her present trial on bank robbery charges ends. Jury to Deliberate 2 Hearst Portraits SAN FRANCISCO (AP) Jurors in Patricia Hearst's trial enter deliberations with two conflicting portraits of the newspaper heiress — one by the prosecutor who insists she is a conniving liar, the other by the defender who argues she robbed a bank to save her life. In final arguments Thursday. U.S. Atty. James L. Browning Jr. repeatedly urged the seven-woman, five-man jury to base their verdict on the evidence. Defense attorney F. Lee Bailey stopped just short of suggesting they ignore it and rely instead on her own testimony. U.S. Dist. Judge Oliver J. Carter planned to issue final instructions and send the bank robbery case to the jury today. The trial is in its eighth week. Browning, his voice occasionally rising in an impassioned two-hour address, implored the jury to watch again the film of Miss Hearst robbing the bank, read her underground writings, listen to her strident voice on taped messages and her profanity-laced jailhouse conversation with a friend. Bailey, in a 45-minute oratory that barely mentioned the evidence, said the trial dealt with "dying or surviving. That is all that Patricia Campbell Hearst thought about." ' Miss" Hearst, 22, testified that she was a terrified hostage of her Symbionese Liberation Army kidnapers and participated in an April 15, 1974, bank robbery under fear of death. Bailey argued that a guilty verdict would encourage similar kidnapings in the future. The government contended she was a willing convert to Hearst, See Page 2 Report Hits Abuses in Nursing Homes WASHINGTON (AP) — A new government report says some mentally ill patients in private nursing homes are living with hunger, cockroaches, leaking roofs, exposed electrical wires and doors made of cardboard and burlap. The report, released today by the Senate subcommitee on long-term care and programs, particularly scrutinized New York and Illinois. Senate investigators said private homes were found wanting in both states. Sen. Frank E. Moss, D-Utah, chairman of the panel, said the conditions were fostered by government policy that provides a financial incentive to move patients from public institutions into private-care facilities. "I have seen hungry people 1 with their faces up against vending machines begging for a quarter," Moss said. "I saw three patients cooking eggs on a hotplate in their room while breakfast was being served in the dining room. I learned that they had bought the eggs with money they had received from begging." Moss claimed mental patients "are a good investment" in New York as well as in Illinois. He offered case histories of several private operations, including one in Illinois where the operator housed 180 mental patients who were transferred from public care .facilities. The operator received $400,000 a year and managed to keep $185,000 as profit. Moss said the operator spent only 54 cents per patient per day for food. "He (the operator) defended this profit, telling us it was below industry expectations," Moss said. Moss laid part of the blame on Congress and the Social Security Act, including the Supplemental Security Income program. In 1935, when it approved Social Security, Moss said, Congress barred Social Security funds for residents of public institutions. But if boarded in.a private home they could receive the money. "In short, Congress created the scandal-ridden, for-profit nursing home industry," he said. In this same way, Moss continued. Congress barred receipt of SSI funds by individuals in public institutions and cut SSI funds by a third for individuals under the care of and living with relatives. The result, Moss said, was an incentive to leave public institutions for private-care facilities. The same law provided financial incentive for states to move patients into private homes, transferring the cost of caring for a patient to the federal level. The report says the number of patients in state mental hospitals has dropped 44 per cent from 427,799 to 237,692 between 1969 and 1974. "The saddest thing is that more often than not patients have been placed in slum housing and forgotten," Moss said. "In some cases, so many discharged patients have been placed in particular areas of our major cities that they have become instant psychiatric ghettos." Patients in many of these private institutions are confronted with poor care and abuse, deliberate physical abuse and unsanitary conditions, he said.
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