Reno Gazette-Journal from Reno, Nevada • Page 5

Reno Evening Gazette Tuesday, March 20, 1979-5 Corporate profits increase by 26 percent Administration officials call it 'catastrophe' for anti-inflation fight WASHINGTON (AP) The government said today that profits of the nation's corporations increased 26.4 percent last year, the most in nearly three decades, in what Carter administration officials said was a "catastrophe" for the nation's anti-inflation program. It also reported that the nation's economy, as measured by the gross national product, expanded at a 6.9 percent rate in the final three months of the year, up from the 6.4 percent estimated previously. The gain in GNP for the year was an even 4 percent. The gains in profits and economic growth were both disturbingly high and constituted a setback to the nation's anti-inflation drive, officials said. The Commerce Department said corporate prof its before taxes totaled $225.3 billion at an annual rate in the final three months of 1978, up $19.9 billion or 9.7 percent over the third quarter and up $47 billion or 26.4 percent over the fourth quarter of 1977.

Alfred E. Kann, the administration's chief inflation fighter, said in advance of the report that the increase In profits last year was a "catastrophe" that underscores "a strong belief that the business community has not been doing its share in the anti-inflation fight." However, financial analysts say much of the increase in profits results from inventory gains caused by Inflation and does not significantly benefit the corporations. An analysis by Citibank of New York said that after discounting for taxes and inflation, the real increase in corporate earnings in 1978 was about 8 percent. The Commerce Department said profits after discounting Inventory gains totaled $177 billion In the fourth quarter, up $11.8 billion or 7.1 percent from the third quarter, and $28.8 billion or 19.4 percent over the fourth quarter of 1977. Profits after taxes totaled $130.7 billion, up $11.5 billion or 9.6 percent from the third quarter, and $26.3 billion or 11 percent over the fourth quarter of 1977.

The department said the increase in before-tax profits of 26.4 percent was highest since an increase of 81 percent in 1950. Profits increased 26 percent in 1954. The increase of 6.9 percent in the nation's GNP, which measures the total value of the output of goods and services, compared with a rate of Increase of 2.6 percent in the third quarter and was the highest quarterly gains since 7.5 percent In the first three months of 1977. The gain in GNP was higher that the administration wanted because the rapid economic growth continued to put upward pressure on prices and thereby aggravated inflation. The government is trying to slow the economic growth to an overall gain of about 2.2 percent this year.

The Commerce Department said inflation in the fourth quarter of 1978 was at an annual rate of 8.2 percent, little changed from the earlier estimate of 8.1 percent. Nuclear waste disposal plan Billy Carter sells land tract to brother's trust ATLANTA (AP) Billy Carter has sold a 157-acre tract of property adjacent to the Plains, home of President Carter for $314,000 to the blind trust administering the president's property, The Atlanta Constitution said today. Real estate agent Don Carter, no relation to the president or his brother, confirmed Monday he had negotiated the sale with presidential adviser Charles Kirbo "three or four weeks ago," the Constitution said. Kirbo, who administers the blind trust, could not be reached for comment. However, the Washington Post, which published a similar story on the transaction today, said Kirbo declined comment because of a current grand jury investigation into financial affairs involving Billy Carter and former federal budget director Bert Lance.

The Post said Sumter County, land records showed that Billy Carter paid about $610 an acre for the land in May 1975. Don Carter said he initiated the deal with Kirbo after being told by Billy Carter to "get the best price I could for it." The real estate agent said Billy Carter told him he had no use for the property and it was "too expensive to use for farm land." The property was originally part of a large farm in Plains owned by the Homer Harris family. After Harris' death, one of his heirs sold 171 acres of the farm to Billy Carter "three or four years ago" for approximately $600 an acre, the newspaper said. A 2.4-acre portion of the Harris estate bordering the president's home is on the market for $67,500, the paper said. It quoted the real estate agent who holds the contract on the property as saying Kirbo asked about purchasing it, but changed his mind when told the price.

The property sold to the blind trust does not include Billy Carter's Plains home, which is on an adjoining lot, or his Softball field. Billy Carter's home in Plains, from which he moved last year, is for sale for $60,000, the paper said. Don Carter denied there was any impropriety involved in selling Billy Carter's land to his brother's trust. "Billy Carter didn't suggest calling Charlie Kirbo. I made that decision," Don Carter said.

"He's a long-time friend of mine from the days when I worked with him on Jimmy Carter's campaigns for governor and then for president. "I had already turned down several other offers including one from a developer for $1,750 an acre," Don Carter said. their borders. Some have allowed repositories, but only for wastes generated from plants in their own states. The 1975 Nevada Legislature opened the door for a repository program if the Department of Energy could meet five requirements: metropolitan Las Vegas be excluded from routes of trucks or trains bearing wastes to the burial site, state authorities assist in preparing environmental impact statements, adequate safeguards be provided against radiation exposure, four public hearings be staged around the state and water not be used to cool spent fuel.

But while public officials debate the pros and cons of Nevada waste disposal, and protest groups prepare their public statements, the fact remains that not only commercial but military nuclear wastes have been quietly making their way to the Test Site in recent months. Last december, shipments of spent fuel rods from a Westingh-ouse nuclear plant in Turkey Point, arrived at the test site. A second shipment of commercial radiaoctive wastes was delivered in January. The December shipment of rods was placed in a thick concrete silo. The January shipment was implanted in a shallow dry well.

Other experimental shipments of nuclear astes are due to arrive in spring of 1980. But military nuclear wastes have been arriving over the years, Wade said. Last fall, the D.O.E. confirmed the first truckloads of plutonium-laden soil from Rocky Flats, Colo, had arrived to be buried in wooden boxes on the test site. In all, 3.8 million pounds of the contaminated soil, metal scraps and other implements are to be trucked in at the rate of 250 times per year for the next four years.

al and other test site-related subjects, Wade said. List said he would be asking Gates about the nuclear wastes that are currently being stored on the test site, as well as venting from past underground tests and whether the current underground tests are safe. "The fact Is, It's not their fault, but the people who are currently there have some credibility problems because of what took place during the 50s and the lack of candor since then about the effect of those atmospheric tests. We're just now getting some of that data. All of us approach these discussions from the state side and from the public view with some large measure of apprehension.

"I'm concerned about any potential for venting into the atmosphere from those tests. I was out to the Test Site on one occasion. Last fall I went out and spent the day, and had a briefing from D.O.E. (Department of Energy) personnel on the various projects under way. Particularly I was interested in safety precautions, although I certainly don't have an adequate basis for any final judgments I might have to make.

"These are complicated questions. Gates can sit down and tell Gov. List that everything's okay, or that certain precautions are being taken, but I'm sure he would anticipate that I am going to insist upon some independent evaluations of those procedures, and I will. I want a scientific evaluation of whatever data's given me by independent advisers to help me make a judgment. "I've found Gates in the past to be very forthright.

I appreciate that and at the same time I feel a necessity to get an independent evaluation." While Nevada has been one of several states which have been under consideration by the energy department for waste burial, other states have banned the depositing of such wastes within (Continued from Page 1) SALT-II treaty, which would limit nuclear weapons testing. One end result might be the halting of the U.S. nuclear weapons program, now being conducted on the Nevada Test Site. A Congressional plan called the McGovern Amendment, which would allow states to have the final say about whether or not waste disposal sites would be placed within their boundaries. Sen.

Howard Cannon's statement that a nuclear waste repository might be one way to use the test site, if the underground testing program is phased out. But for the moment, the issue is still being publicly debated, and Department of Energy workers on the Test Site are conducting a study using radioactive spent fuel rods from a Florida nuclear power plant about how the wastes can best be handled and stored. They also are studying the test site terrain to see if a safe and suitable place exists to bury large amounts of high-level commercial wastes, Wade explained. "We are looking to see if there is any place on the site which would be suitable for a repository." But other federally-owned land, such as the Nellis Gunnery and Bombing Range on the outskirts of North Las Vegas, is another possibility, he said. "The test site itself is surrounded by lots of other federal land.

We would look initially at other federal land before we ever went off into the private sector," he added. But List said, "At this point there is not state permission to conduct such a study off the Nevada Test Site, and the first thing that would have to take place would be some public hearings on the subject. There has been no commitment made at all along that line." Wade's boss, Mahlon Gates, will be talking with List in Carson City Thursday about waste dispos Special prosecutor named tigation. "I'm satisfied I have all the powers. My mandate is to look at the loan transactions and follow it where it deserves to be followed," he said.

"I'm going to call the shots as best as I see them and finish it as quickly as 1 can," Curran said. Bell said he informed White House press secretary Jody Powell Monday night of the impending appointment but did not talk directly to the president and spoke to no one else at the White House. Justice Department officials, who requested anonymity, said Bell was barred by law from going before a special court to seek the appointment of a special prosecutor because the investigation into the Carter family warehouse is an offshoot of another grand jury matter. The appointment by the attorney general of a special counsel does not require court approval. Curran said he probably would select two assistants from outside the Justice Department to help him in the case and that he intends to devote full time to the inquiry, no matter how long it takes.

Heymann said the full resources of the Justice Department will be available to Curran. The government inquiry grew out of the federal audit of the National Bank of Georgia in Atlanta and another bank in Calhoun, Ga. While Lance was president of the NBG in 1975 and 1976, the bank made commodity loans to the Carter warehouse in Plains, of $5.8 million and construction loans of about $1 (Continued from Page 1) banking practices. CBS News reported Monday that the Justice Department has decided to seek an indictment against Lance and three unidentified associates. The network report said the indictment being sought does not allege any wrongdoing in connection with the Carter loans.

The Justice Department refused comment on the CBS report. Lance was not available for comment. A special report issued by two of the National Bank of Georgia's directors in January said the bank did a poor job in handling the Carter warehouse loans and questioned a bank practice of holding warehouse checks without cash-" ing them to avoid an overdrawn account. There have been no formal public accusations of wrongdoing against the president, his brother Billy or other members of the family. The president's 63 percent of the business is in a blind trust while he is in office.

Curran, 46, was U.S. attorney in Manhattan from 1973 through most of 1975. He was a member of the New York State Commission of Investigation for five years and was appointed chairman in 1969 by then-Gov. Nelson A. Rockefeller, a Republican.

Curran was head of the office that handled the Watergate prosecution of former Attorney General John N. Mitchell and Maurice Stans, former chief fund-raiser for President Richard M. Nixon's re-election committee. Curran told reporters he believed he would have a free hand in conducting the inves- City clerk compiling records Sears Reno NOBODYTKR6WSA RARTVUKESALIY proved and how we inspected the building during the construction. They were concerned with the mechanics of the building department." Sundowner co-owners George Karadanis and Robert Maloff could not be reached for comment.

Herrington said that no "individuals were discussed, no one mentioned by name" during questioning before the grand jury about sewer allocation. Asked how councilmen could exert influence, Herrington said they could call him and ask about what the building department can do "to help out" a certain project but he said no one ever has tried to influence him in making sewer allocations. Councilmen do vote on what major projects can go onto the sewer capacity waiting list through major project review. In denying that the building department is involved in any wrongdoing, Herrington admitted that questions have been raised about "kickbacks" and "special favors" since the sewer allocation system went into effect in 1976. "We have done nothing wrong whatsoever," Herrington said.

"If those types of things were going on, I would know about it. My assistant, Walt Williams, is the prime person who tallies the list. He is beyond reproach. I can't explain the rumors, but these kind of rumors have been going on for a long time. I think some of it is sour grapes as far as developers who are turned down for sewer allocation.

"We get a lot of pressure from developers and contractors on the sewer allocation list, but never from the councilmen." lists until their sewer allocation is released by the building department. In the midst of the Reno area construction boom, the little remaining sewage capacity is in high demand, with builders and developers waiting for months to receive allocations so that they can begin residential or commercial construction. "His (Coon's) questions specifically had to do with whether any members of the Reno City Council ever influenced the building department on sewer allocations," Herrington said Monday night. "The answer was no. "He wanted to know all about sewer allocations how did it work, when we got started using it, what were the administrative procedures, how we issued permits." Last month the grand jury subpoenaed the city's records on the Sundowner and its high-rise expansion now under construction.

The city's records included files, plans, building applications, the sewer allocation list and meeting minutes involving the administrative procedures. FBI agents also checked building department files on the Circus Circus Hotel-Casino and the Eldorado, although no federal subpoenas were issued for those files, Herrington said. Menicucci holds insurance policies with both the Circus Circus and the Sundowner. Herrington said he was questioned by the grand jury about the city's involvement in the Sundowner expansion. "The grand jury was primarily concerned about the Sundowner, Herrington said.

"They wanted to know the background on it, the sewer allocation, how the change of construction orders are ap from Page 1) and after a thorough review, he and his staff have concluded that there is no grounds based on infor-. mation which has been made public from the federal investigation for the state to initiate an investigation of its own. He said his office's jurisdiction is limited solely to alleged violations of state insurance statutes. While the FBI case may be looking into possible allegations Involving governmental ethics, Heath said, no information has been brought to his attention that would involve violations of state insurance laws. Heath said he understands that a number of insurance agents have been contacted in the FBI investigation.

He said he would find it strange that none of those agents would have filed a complaint with his office if there had been a possible violation of state insurance law. Washoe District Attorney Cal Dunlap said this morning he has no plans to start an independent investigation of the matter at this time. He said he has received no complaints on the issue, and he will not launch a probe or take the matter to the grand Jury "until we receive a complaint from someone with some evidence." Herrington's testimony before the federal grand jury centered on the role Reno councilmen play in city sewer allocations and the influence they might have used in getting certain projects placed on Reno's sewer allocation list. The sewer allocation list is Reno's method for gradually distributing its remaining capacity In the Reno-Sparks Joint Sewage Treatment Plant to residential and commercial projects. Developments are placed on waiting NOW SHOP Monday thru Friday 10 am to pm Saturday 10 am to 6 pm Sunday Noon to 5 pm (She's a whiz at meetings, too.) CITY OF RENO ELECTION NOTICE If you're planning a meeting or party, and would like some advice from Reno's Premiere Meeting and Party Person, call Sally Crawford Ramm at Harrah's Whatever you're planning, Sally can make it a success.

Get Acquainted Parties to Golf Banquets, Bar Mitzvahs to Breakfast Meetings, Fund Raisers to Fashion Shows, Wedding Receptions to Welcome Back Parties, she has all the answers. Shell tell you about special menus, invitations, theme parties, music, dancing, the whole works. She even knows a great place to have your party or meeting the luxurious Convention Center at Harrah's Reno! This elegant 15,000 sq. ft. facility can be divided into any number of rooms from one to ten to give a warm, personal touch to any size gathering.

It comes complete with its own private kitchen, reversible escalators, a heavy-duty elevator for props and displays, dance floors, audio-visual systems, free validated parking, and a smiling full-time staff of experts. But even if you don't want to use Harrah's Convention Center, you can still get Sally's expert advice. Just call 786-3232, extension 770. NOTICE IS HEREBY GIVEN tint on Tuesday, May 8, 1979, the City of Reno will hold a Primary Municipal Election. NOTICE IS HEREBY FURTHER GIVEN that candidates for the following non-partisan offices may file an Affidavit of Candidacy in the office of the City Clerk, Room 209, 490 South Center Street, Reno, Nevada, commencing Thursday, March 29, 1979, and not later than 5:00 P.M.

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