Star Tribune from Minneapolis, Minnesota • Page 6

EffeCtS Continued from page 1A ping the gross national product two percentage points below what it would have been by the end of 1980. Minneapolis Trlbuna Jun 29, 1979 Weather Continued from page 1A KZr III Food prices also will increase because of higher oil prices, although economists were unable to predict how much. This will result from the impact of oil prices on farming, transportation and processing costs. James Annabell of the Congressional Budget Office said of the OPEC increase: "It should blunt the recent drop in some food prices at the farm." Many private economists contend the nation already has entered a recession and that OPEC's actions only aggravate the situation. Administration officials dispute the claim that a recession Is upon us.

Charles Schultze, chairman of the Council of Economic Advisers, said, "It would be premature to make that judgment now." But administration officials acknowledged that OPEC price increases will reduce economic growth, drop- Cox predicted that growth will drop 3 percent during the third quarter this year, due only partly to energy costs The Congressional Budget Office estimated growth will fall between 1 and 2 percent. The estimates came as Vice President Walter Mondale and top administration officials met with congressional leaders to discuss possible revisions In Carter's inflation program and the impact of the OPEC Increases. Alfred Kahn, head of the president's anti-Inflation campaign, told a congressional committee yesterday that "the latest sharp increases In OPEC prices have, by withdrawing tens of billions of dollars of purchasing power from our economy, Increased the hazards of a recession." Order Continued from page 1A Cities area tunnels reportedly touched down. The police reported minor damage to three houses. Including one belonging to Edward Hurney at 13923 Everest Av.

"It was just a little spear that came a neighbor said. "It didn't come down very tar, but then, It didn't have to." Hurney said he and his wife were watching television when the storm struck. "I told my wife to get the little girl and we ran downstairs," he said. "As we were going down the steps the glass started flying." About a third of their roof was ripped off. Hurney said he had bought the house just seven months ago.

The office of emergency services in Ramsey County reported that seven houses were damaged and one destroyed in Maplewood. There also was some street flooding. Preliminary damage estimates there were set at about $500,000. A tornado apparently touched down in the extreme southern tip of Maplewood, In the midst of a new housing development, damaging five homes but only one of them seriously. No one was Injured.

O'Day Street and O'Day Circle In the Crestview development were affected by the storm. The residents of this area have been in their homes only two months and the landscaping and sod haven't been done yet. The most heavily damaged home was at 457 O'Day Circle, where the Staff Photo by Kent Kobersteen A new house at 457 O'Day Circle was heavily damaged when the tornado hit Maplewood Thursday night. garage was destroyed, part of the roof was torn off and many windows were broken. Next door, the garage had been lifted slightly and twisted on its foundation.

Three houses on O'Day Street had minor damage, including broken windows and shingles torn from roofs. Six cars in the area were damaged by the flying debris. Peter Windey, 454 O'Day was sitting in his living room when the sky grew dark. Although his wife and children went Into the basement, Windey stayed upstairs and watched the storm as it moved at about 10 m.p.h. toward his home.

He said he saw boards from the recent construction and mud and dirt from the unsodded lawns being tossed through the air. When he saw a funnel cloud hit the house across the street, Windey also headed for the basement. Northern States Power crews were in the area shortly after the storm hit, checking for possible gas leaks-Power lines weren't damaged because, in the new development, they are all underground. Bloomington was untroubled by tornadoes, but, according to the National Weather Service, it got 1.9 inches of rain during the evening's downpours. Interstate Hwy.

35W at 96th St. was reported to be under two feet of water at 10 p.m. The storm passed through the metropolitan area and then moved eastward into Wisconsin. A powerful weather system began to build along the North Dakota-Minnesota border Thursday afternoon. A tornado struck the small Minnesota village of Nashua, about 20 miles southeast of Breckenridge.

A tornado also was reported about eight miles south of Fargo. Waverly Continued from page 1A even-numbered days and those with odd-numbered plates on odd-numbered days. Quie said that after studying how that system worked, he "can't find that It saves any fuel at all." However, he said he will continue studying the odd-even system, and did not rule out the possibility that It might be employed If circumstances change. The governor was careful to urge Minnesotans to carry out their vacation plans, apparently In response to the anguish resort owners expressed when he called last week for people to stay home for the weekend so that gasoline supplies could build up again under the eye of the National Guard. Quie now encourages Minne sotans to take their planned vacations because he Is assured by he energy agency that there Is sufficient gasoline available In the traditional tourist areas of northern Minnesota.

"People ought to take their vacations," said Quie. "I'm concerned that one of our state's great natural resources, the tourism Industry, was forced to absorb much of the Initial shock of this energy crisis," he said. Cautioning Minnesotans to avoid unnecessary driving, he said they should take their vacations because they "cut down on the stress of the rest of the year." The governor left Immediately after Issuing the order for a 10-day vacation in Wyoming and Montana, where he said he will be riding horses a lot and not burning gasoline. (While in Montana the Qules will be staying with a son, Dan, who is an outfitter In Lincoln, Mont.) Quie said the National Guard will remain on duty at Minnesota refineries to assure gasoline deliveries until It appears they are no longer needed. He did not Indicate bow long that might be.

He said the number of troops on duty may vary with how quiet the situation Is with striking truckers. Quie, an Independent-Republican, favors complete deregulation of the gasoline system. "If we decontrolled cold turkey It woud be over In two weeks," he said. He feels that supplies of petroleum would Increase If the marketplace were left to operate on its own. Hons are the amounts service stations are allowed by their suppliers.

According to Industry sources, the allocations for July will be 16 percent below the same period in 1978. Quie said there will be a wide gap in coming weeks between the amount of gasoline available in Minnesota and the demand by. motorists. The minimum purchase requirement will not mean additional supplies, said Qule, but It will help end lines that were created, In part, by drivers queued up to top off tanks that were more than half-filled. There have been many reports during the last week of drivers lining up to buy less than $2 worth.

In general, service station groups appeared agreeable to Quie's move. "I think we will have almost 100-percent cooperation with the governor's plan," said Brian Ettesvold, executive director of the Minnesota Service Station Association. It generally represents retailers of major brands in the metropolitan area. There Is a catch, owever. "The governor understands that If we don't get relief (on profit levels) by July 16 there will be a massive shutdown nationwide," he said.

"If we do that (shut down) we Would be In violation of the executive order and I don't think that will deter the dealers at all." He said he does not think the government would prosecute thousands of dealers. Service station profit margins have been frozen at 4973-74 levels and dealers say their earnings have been dropping because other prices have been Increasing. They want the method of figuring their profit changed from cents-per-gallon to a percentage of gasoline price so profit will expand with costs. Ken Wlngard, executive director of the Minnesota Independent Retailers Association, which represents independent dealers, said he believes that bis members will be "happy to cooperate They don't like lines any more than anyone else." In ordering the minimum-purchase system, Qule rejected, for the time being, the so-called odd-even system adopted In some other states. Under that system operators of vehicles with license plates ending In even numbers may buy gasoline only on Iowa Shortage Continued from page 1A largely unnoticed until uncovered last week in an Associated Press investigation.

Based on inital reports, the Energy Department estimates that domestic production was 8,369,000 barrels a day in March and 8,380,000 in April. This means the dip that began last November apparently continued through April. Domestic crude-oil production In 1978 averaged 8,696,000 barrels a day and peaked In October at 8,830,000. But then, the Associated Press investigation found, it began to fall to 8,728,000 In November; to 8,651,000 in December; to 8,456,700 in January, and to a preliminary 8,286,000 in February. Based on final Energy Department numbers for December and January, as well as preliminary figures for February through April, U.S.

production was 39.9 million barrels less than could be expected for those months, based on 1978 average production. At normal refining rates, that would mean 19.3 million barrels of gasoline never reached American gas tanks. There are 42 gallons In a barrel. If the February through April figures are revised upward as much as 200,000 barrels a day, the domestic dip still would account for about 22 million barrels of crude oil, or nearly 11 million barrels of gasoline that were never produced. These new figures add even more mystery to the reasons for the domestic production drop.

In Associated Press Interviews last week, the explanation most often suggested by oil company executives was severe winter weather in oil-producing areas. But an examination of federal weather records for such areas showed little support for that explanation. If the drop did continue through March and April, bad weather can explain even less of the total decline. Generally, the bad weather explanation rested on extreme cold or unusually heavy rains. Oil company executives speculated that extreme cold caused machinery breakdowns and clogged pipelines.

neither he nor Humphrey were present for the board meeting They had no indication the vote would go against them, he said. The planning commission had recommended 6 to 1 earlier that the rezoning be approved. Kowalczyk said he has not gotten the Impression that discrimination against the retarded was the reason for the rezoning denial. "The concern was losing tax revenue. That's surprising, because It is a relatively small amount," he said.

"Project Waverly," as the center Is to be called, would add much to the economy of the area, he continued. As many as 15 people would be hired, he said. Six to 10 would work In housekeeping, food service and yard maintainance. Another two or three would be specialists working with the retarded. Others would be part-time people, such as a swimming instructor.

About $1 million in construction is called for, which also would help the local economy, Kowalczyk said. Six lake homes would be constructed to house 54 retarded people and 18 staff members. The Humphrey house would be used for seminars with professionals In the retardation field; they would stay In area motels. About 5,000 people would use the center In a year, he estimated. He had hoped construction would begin In a year.

The school Is trying to raise about $2 million for acquisition of the land and development The Fraser school Is not connected to Donald Fraser, former congressman and now candidate for Minneapolis mayor. The school was started by Louise Whltbeck Fraser more than 50 years ago when she learned that her daughter, Jean, was severely retarded and should be residential recreational to commercial recreational. Arlyn Nelson was the only commissioner In favor of the change. Some commissioners refused Thursday to discuss the matter with a reporter, saying Arlien (not a member of the board) had the official minutes. Arlien said, "Many of the reasons weren't clearly stated, but there was a great deal of opposition by the constituents In the school district Board members were inundated with telephone calls In opposition to the loss of tax dollars." The property taxes this year are $4,798.

The Fraser school has not yet petitioned for tax-exempt status for its new property. Arlien also said commissioners objected that there had not been engineering studies of the land, such as soil percolation tests needed for sewer work. Muriel Humphrey expressed "deep disappointment" that the commissioners refused to rezone. "I am certain that if the plans for the center were fully known and understood, and If the exceptional opportunities and services offered by Fraser School were fully appreciated, support for the retreat and education center would be overwhelming The director and board of Fraser School continue to welcome about their services and about their plans for our property in Waverly. I encourage the Wright County commissioners and people throughout our area to state their concerns and questions.

"And I know that when the Fraser School proposal Is fully understood, the commissioners will find compelling reasons to reconsider their denial of the school's petition." Robert Kowalczyk, director of the Fraser School, said yesterday that Continued from page 1A guardsmen to aid the evacuation. One tank later sealed itself, the Iowa Highway Patrol said, but the second tank was still leaking late last night. The Algona tornado "looked like it came through the north edge of town, just kind of picked things up and laid them over," said State Sen. Berl Priebe. The Hjelmed Builders, plant in Algona was reportedly flattened and a roof was ripped from a department store.

Another shopping center also sustained heavy damage. The stores were open when the tornado struck. A number of homes also were damaged. The business section of Manson was reportedly hard hit and the town's high school was destroyed. Ham radio operators said the injured were taken to two nearby hospitals.

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