Arizona Republic from Phoenix, Arizona on July 9, 1975 · Page 1
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Arizona Republic from Phoenix, Arizona · Page 1

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Phoenix, Arizona
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Wednesday, July 9, 1975
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REPUBLIC MAIL. 7 oilays chuckle To help counteract the power shortage, one utility company is studying methods for changing diamonds back to coal. h 15 rents Phoenix H eather Variable cloudiness with decreasing chance of showers. High 95-105. low 75-85. Tuesday's high 102, low 83, Humidity: High 53, low 28. Details, Page E-8. 86th Year, -o. 54 The Arizona Republic Circulation 271-8:181 Classified 271-9111 Other 271-8000 Phoenix, Arizona, Wednesday, Julv 9, 1975 (Six Sections. 81 Pages I Bread firm offers $500,000 to settle suit The five companies produce about 85 per cent of the bread sold in Arizona. The Arizona Consumer Council suit estimated that, their sales totaled more than $30 million last year. Muecke. who has ordered attorneys not to discuss the antitrust case, refused to say whether "lie will approve the Baird settlement. the Arizona Consumers Council in the Federal court in Tucson, but has been transferred to Muecke's court. The five bread companies and six of their executives were fined more than $125,000 in May after they pleaded no contest to criminal price-fixing charges. Baird and his general manager. Clark Rorbach. received 30-day prison sentences for their roles in fixing prices at an artificially high level between 1963 and 1974. approves the settlement, according to an agreement signed by Ronald Baird Jr.. president of the firm. Other bread companies involved in the 'suit are the Rainbo Baking companies of Phoenix and Tucson. Holsum Bakery Inc.. of Phoenix, and C. .1. Patterson of Kansas City, which operates Scrv-Us Bakeries. Sources said some of the other companies involved in the class action In Baird's proposed settlement, dated June 16. Baird said that his company deposited $200,000 in two United Bank of Arizona accounts on May 15. Another payment of $300,000 will he made in 1977 if the proposal is approved, according to the agreement on file with the court. Attorneys for the plaintiffs said the funds paid by Baird's will be held in Continued on Page A-2 suit also are close to reaching out-of-court settlements. The plaintiffs in the suit include restaurant owners, grocers, private health institutions, the Scottsdale School District and the State of Arizona. Household consumers were not a party to the suit, but a class action antitrust suit was filed Monday against the bread companies on behalf of household consumers. The suit, which seeks triple damages, was brought by By BOB LOWE One of five bread companies that fixed prices in Arizona for more than a decade has tentatively agreed to pay $500,000 to a group of bread buyers in an attempt to settle a federal court antitrust suit, court records revealed Tuesday. Raird's Bread Co. has already deposited $200,000 in two Arizona bank accounts. The funds will be disbursed if U.S. District Court Judge Carl Muecke " "No settlement has presented," he said. officially been presidency waged on an unusually high level of debate, free from personal attacks, intrigue and name-calling. "In fact, because the campaign will fall in the Bicentennial year, it is my hope that the opposing candidates will resume an American political tradition face-to-face debate." Rep. John Rhodes. R-Ariz.. was delighted with Ford's announcement. Recalling that he and Ford have been friends lor 25 years. Rhodes said he had supported Ford in almost everything he has undertaken and is pleased that he will be supporting him again. Continued on Page A-12 Tax-cut talk is dismissed as premature Associated Press WASHINGTON - Treasury Secretary William Simon said Tuesday that it is too early to consider extending the general 1975 tax cuts into next year. But he asked Congress for prompt action on tax-revision proposals that include a requirement that individuals with high incomes pay "reasonable" income taxes. Appearing before the House Ways and Means Committee, Simon also submitted the Ford administration's new plan for reducing electric utilities' taxes by at least $600 million a year. After the hearing, Simon said the 1975 tax cuts had been made to get the economy moving again. "It is premature now to know whether the tax reduction should be continued or not." he said. Expiring Dec. 31 are the $2.6 billion individual tax cuts reflecting hikes in standard deductions; $5.2 billion personal tax reductions through a special $30 across-the-board tax credit; and $1.5 billion individual tax cuts through a special new program to help low-income persons with children. These were in addition to that law's $8.1 billion rebate of individuals' 1974 taxes. The committee will consider an assortment of leftover items from the 1973-74 tax revision package, which never reached the House for action. Most of these proposals had administration backing, and Simon renewed the request Tuesday. "In April 1973. we requested legislation that would greatly simplify the preparation of tax returns for individuals, that would eliminate tax shelters, and that would insure that individuals with high economic incomes pay reasonable income taxes," Simon said. "This is unfinished business on which we should act promptly," he said. Meanwhile, he said, the 1975 tax cuts "will need to be evaluated later this year in the light of the prospects (or the economy, the apparent need for stimulus, and the other actions taken by the Congress. We shall have recommendations at that time." The administration's tax proposals for electric utilities, he said, "will minimize imports of foreign oil and insure adequate electric capacity in the several years ahead. They are essential to the. national economy." The proposals include increasing the investment tax credit permanently to Continued on Page A-4 Associated Press he goes, as long horse, Suzie, chooses the route they'll travel relaxes while his through pastures near Fort Smith, Arkansas. Ford officially enters 1976 race for House votes to develop oil at 3 reserves United Press International WASHINGTON - The House voted Tuesday to permit private development of the more than one billion barrels of oil in the Elk Hills. Calif., reserve naval oil lield now held under federal protection. The measure, passed on a 391-20 vote and sent to the Senate, would transfer control of the big Elk Hills reserve and two smaller naval reserves from the Navy Department to the Interior Department. The two other reserves are Bucna Vista, adjacent to Elk Hills, and Teapo! Dome near Casper, Wyo., the object of a Washington scandal in the 1920s. In a related action, the Senate passed. 91-0, and sent to the House a proposed strategic energy reserve act which would provide for storage of a 90-day, federally owned supply of oil for the nation to use in case of another foreign oil boycott. Under the House bill, the three naval reserves would, alter their transfer to the Interior Department, be open to bids from private developers under controls intended to prevent monopolies by big oil firms. The Teapot Dome reserve, nearlv depleted now with about 51 million barrels of oil left, came into the nation's lexicon of political scandals during Warren G. Harding's administration when then Interior Secretary Albert B. Fall was convicted of taking bribes in exchange for leases he granted to oil companies to develop the reserve. Since then, all three reserves were put. under Navy control to insure that the armed forces had sufficient oil in times of emergency. The House rejected an effort by its Armed Services Committee to continue the three reserves under Navy control but provide that 300.000 barrels a day from Elk Hills would be developed to provide a military emergency reserve of processed fuels. It was defeated, 305-102. Backers said it would give the military its own fuel supplies, providing that much more for civilian use. The House bill also would provide for exploration only of the big "Pet 4" reserve on the North Slope near Barrow. Alaska, with its estimated 10 billion to 33 billion barrels of oil. No sale of that oil. however, would he permitted - only exploration. Continued nn Phjjp A-4 KING taxable value in the absence of legislation declaring it taxable. The state valuation includes more than S2 million spent by Peabody for roads, wells, and the dismantling, moving and assembling of mine equipment The mines will continue operating at a loss for three to eight years, until Continued on Page A-2 Tucson ticketless SOUTH TUCSON (APi-For the past five weeks, police here have not issued a traffic ticket. But it's not necessarily because the city's drivers have improved. The police department ran out of tickets and it took five weeks to get new ones printed, Acting Police Chief Henry Moreno said. Moreno told the City Council Monday night the firm that printed the tickets went out of business and it took a while to order and cet a new batch from a California company. separate his office, his leadership of the GOP, and his role as a candidate. Rep. Morris Udall. D-Ariz.. issued a statement, after the announcement. Udall. who is seeking the Democratic nomination to oppose Ford, said that while he and Ford often disagreed, "(wet hold each other in mutual respect." I'dall said, "President Ford is. of course, the leading contender for the Republican nomination next year and you can assume that no matter which of the Democratic candidates is selected to challenge him, there will be plenty of disagreement on policies." Udall hopes the campaign "will he PARIS ESCAPE Aided by his wife disgui'sed in lawyer's robes, France's Public Enemy No. 1 flees Irom court with two hostages. Page F-3. By BEN COLE Republic Washington Bureau WASHINGTON - President Ford made it official Tuesday: He is a candidate for the Republican presidential nomination in 1976. He said he is entering the race with the consent of his family and friends, and will conduct an "open and above-board" campaign "without compromising the principles for which I have stood all my public life." Ford's low-key announcement promised that he will keep his pledge to be "President of all the people" and that he will never neglect his duties as chief executive in pursuit of the office. SCHWARTZ Cardwell said Fassler was shot by another inmate after a fight erupted among other prisoners at the opposite end of the dining hall from where Fassler was eating. Officials suspect the fight was a planned diversion to draw the attention of guards away from Fassler's location. Continued on Page A-2 Arizona's $33 million valuation on 2 mines is absurd, firm savs Inmate shot in prison mess hall while fighting distracts guards Jeff Argo, 13, doesn't care where as he goes in comfort. He just It was expected that Ford would announce his intention to run in 1976. Ford read his iOO-word statement while seated behind his desk in the Oval Office. Howard (Bo Callaway, former secretary of the Army, left the Pentagon a week ago to become the manager of the Ford campaign. The White House said Callaway will have access to Donald Rumsfeld, Ford's chief of staff, and Richard Cheney, Rumsfeld's assistant on scheduling. White House press secretary Ron Nessen said Ford will attend to his presidential duties first and will keep GRAIN DEALS Reports of new Soviet-American grain transactions spark a buying spree on the Chicago Board of Trade. Page A-4. NEW PAYMENTS Land owners in 21 subdivisions face special assessments to avoid defaulting on improvement bonds. Page B-l. HIDDEN ALCOHOLICS - A test has been developed to help doctors identify alcoholism in patients who have seemingly unrelated problems. Page D-l. cited "for tenacity, courage and fortitude in overcoming adversity, poverty and linguistic barriers to achieve educational excellence." The EA made the award based on the recommendation of the Council on Human Relations in Washington. Last February Acosta attended the NEA's conference on "Educational Neglect" in Washington. Back at his duties Monday in the Dysart migrant summer school program. Acosta said he told the conference he went back to school as an adult to fulfill his own ambition and to Astrology E-7 Food News K-l-20 Rridge C-8 Movies E-5 Classified D-3-15 Obituaries D-3 Comics E-7 Opinon A-7 Crossword C-8 Radio Log E-fi Dear Abby B-7 Sports . E-l-3 Dean B-l TV Log' E-6 Editorials A-6 Weather E-8 Financial A-13-15 Women B-5-7 FA Mirage teacher wins national honor By BILL The $33 million state valuation on Pcabody Coal Co. mines is absurd because it presumes that Ihr firm's taxable buildings and equipment are worth 15 times more than the tax-exempt coal in the mines, company spokesmen said Tuesday. The assertion was before Division I. of the state tax appeals board, where the state valuation chief. Robert Hathaway, retorted that the Peabody buildings and equipment on northeastern Arizona Indian land were valued by his field inspectors using standard appraisal manuals. But he conceded that his $10.3 million valuation on the Black Mesa Mine and $22.7 million valuation on the Kayenta Mine should be cut by $500,000 and $200,000 respectively, on grounds that correct valuation data originally was not available from the company. Compan spokesmen said Hathaway's proposed reductions did not represent any real chance. They complained that: Last year's $11 million valuation on the Black Mesa Mine was reduced only $700,000 this year as the result of a court decision that the Indian reservation coal had to be deleted from the Bv JOHN An inmate gunned down in the Arizona State Prison mess hall while guards were distracted by a fight underwent surgery for a head wound Tuesday at Maricopa County Hospital. The postoperative condition of Lawrence Fassler, 33. was not immediately known. Warden Harold Cardwell said Fassler was shot at the evening meal Monday. Fassler suffered single bullet wounds in the head and ankle and two in the chest, Cardwell said. Fassler was brought here Monday by ambulance from the prison in Florence. Fassler. considered by some inmates to be a good "jailhouse lawyer." entered the prison in 1969 on a 15- to 18-year sentence for marijuana smuggling. He also faces a life term for murder in California after his release from the Arizona State Prison. Today's prayer How fortunate are those people who can solve their daily living problems. Through Your strength. Lord, please help those who are incapable of meet-ins their obligations. Amen. By THELMA HEATWOI.E EL MIRAGE - Cayetano Acosta. 63. who worked in the cotton fields as a boy and cried because he was not on the school buses that went by. has been honored as a teacher by the National Education Association. Acosta now teaches in the Dysart School District. He quit school years ago to help his family .through financial hard times. He got the NEA citation in Los Angeles July 4 at the Association's annual convention. The Mexican-American teacher was set an example to dropout students in the district. 1 The grandfather of seven said the course" of his whole lite changed when he gained his high school equivalency certificate. He was valedictorian of his general education class in El Mirage at the age of 55. . Before that. Acosta was crew leader of a labor force in El Mirage. In 1959 he went to work as a janitor in the school district were he now teaches. As president of the El Mirage Mi-Continued on Page A-2

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