The Minneapolis Star from Minneapolis, Minnesota • Page 1

MINNEAPOLIS TEMPERATURES 10 m. 18 il 5 im 18 11 i .16 Noon .20 a a.m. 16 wd. if Unofficial. 4.m.

9 ajn is TOMORROW: Colder OWE COLOR TEAR THE MINNEAPOLIS Tueiday, Dec. 30, 1969 Four Sections 40 PAGES Single Copy Price 10c Lower Price for Carrier Delivery COLOR i bill New revenue plan hinted i. i A I Patterns Snowmobile tracks a hillside in break the snow on Meadowbrook Golf Course Minneapolis Star Photo by Richard Olseniui four Minneapolis Star staff writers report on the attempts of suburbs in the Twin Cities area to deal with the problems that the new sport creates. in the suburban area west of Minneapolis. On Page IB Eight thousand tank trunk into Blowtorch Text of President's tax bill statement: Page 4A WASHINGTON, D.C.

(IPl) Presi-dent Nixon today signed the most far-reaching tax bill since the enactment of the income tax in 1913, but indicated he would ask for new revenue raising legislation or cut government spending to curb its inlfation-ary impact. Mr. Nixon noted the bill will result in a loss of $3 billion to the federal treasury and "I shall take the action I consider necessary to present a balanced budget for the next fiscal year." The President is expected to spell out his economy proposals in his State of the Union address Jan. 22. Mr- Nixon chided Congress for passing what he considers an inflationary bill.

He said he was "deeply concerned about the reluctance of Congress to face up to the advisers impact of its tax and spending However, he noted that a House-Senate conference committee had severely reduced the inflationary aspects of a Senate-passed bill after he "had threatened to veto it, and "this response to my appeal to budgetary sanity makes it possible for me to sign the bill into law." Mr. Nixon warned the bill's revenue loss features and congressional spending threaten to drive up prices for American consumers. "Congress has passed an unbalanced bill that is both good and bad," Mr. Nixon said in a statement released by the White House. "The tax reforms, on the whole, are good; the effect on the budget and on the cost of living is bad." Mr.

Nixon said he approved the measure because the improvements in tax fairness through the reforms outbalance the inflationary impact from the $9.1 billion tax cut the bill carries. The bill provides tax relief for 63 million Americans and includes a 15 percent boost in Social Scurity benefits and loophole-closing reforms. The first time taxpayers will see the effects of the bill will be in their paycheck for the first week of the new year when the present 10 percent tax surcharge goes down to 5 percent. That will diminish the tax withholding slightly. The surcharge is scheduled to expire completely June 30, 1970.

The tax reduction results chiefly from a three-year increase in the $600 income tax personal exemption. It will rise to $650 in July to $700 in January 1972 and to $750 in January .1973. The bill also grants special tax relief for 12 million poor and near-poor taxpayers. Treasury Secretary David M. Kennedy told reporters at the White House after the President signed the bill that the measure enacted by the Democratic Congress made Mr.

Nixon's budgetary problems even more severe. But Kennedy sidestepped questions about whether the President would ask Congress next year to increase taxes, possibly through a "value added tax." This is a form of excise tax on manufactured goods. caught fire during a delivery to the Port Cargill soybean processing plant at Savage about 10:15 p.m. Monday. Driver Harold Maeder, 40, 3739 E.

74th Inver Grove Heights, escaped injury. Damage to the truck and" contents was estimated at $35,000. No damage was reported to buildings at the plant division of Cargill. The truck was owned by Suburban Gas Inver Grove Heights. Firemen from Savage, Burnsvillc and Blooming.5, ton brought the blaze under control.

Flames towered 75 feet attracting spectators who lined Hwy. 13 and parked along OvefTbok Dr. in Bloomington. ffiWtit i trWi fffr tfiwsnfiTfwiwmn I i 'I wm i i i Wirfi 1 1 1 1 fnr in n-ni tnrn 'Tn rf Mlnneapolii Star Photo by Arthur HaRer gallons of liquid propane turned a a "giant blowtorch" when the truck Vogt to head new county health post By BETTY WILSON Minneapolis Star Staff Writer Paul J. Vogt, 41, administrator of Hennepin County General Hospital, today was named county director of health and hospitals.

The Hennepin County Board by a 4 to 1 vote appointed Vogt to the new position effective Thursday. Commissioner Richard O. Hanson opposed the appointment. The board named Vogt William Kreykes, 32, to succeed Vogt as General administrator. Vogfs salary will be about $30,000 and Kreykes about $24,000, according to County Board Chairman Jack M.

Provo. Provo said that Vogt will coordinate health services for the county and help plan the new General Hospital. v- This will include administration of new county programs such as alcoholism therapy, decentralizing the ty's mental health clinics and possible 'narcotics addiction The board also approved grants of $100,000 for leasing- facilities from Methodist Hospital Sti Lbuisj- Park; for alcoholism therapy This! will be. 'the first step in centralization of -county health services, Provo said, He said the county already is playing a strong role in providing health services and the community is turn-riing more and more to Vogt's appointment is' recognition of the. county's responsibility to be-' come more involved in all community health Provo said.

Provo said he expects the county will move toward of a county health department but that this will be up to the Legislature, 'v New quake jolt Sicij' Sicily (yslfpng earth tremor jolted western be- fore dawn sending panicky thousands out into near-freeiing weather. No damage -qrcasyalties were reported. National Madison A temporary ban on sale of DDT in Wisconsin goes into effect Thursday. The State Pesticide Review Board voted unanimously to withhold registration of the chemical after Jan. 1 until state and federal actions decide whether it is to be prohibited permanently or its use regulated.

Washington "Serious shortcomings" in Pentagon contracting procedures that have permitted cost overruns of nearly $21 billion for weapons systems have been criticized in a report by the General Accounting Office, which keeps track of government spending for Congress. The report to a joint congressional subcommittee recommended tightening purchasing procedures to prevent high rises in costs between original estimates and final outlays. Details: Page 9B. City and State The Minneapolis City Council voted 10-2 to authorize negotiations with the federal government for the city to take over the Concentrated Employment but Mayor Charles Stenvig said he won't approve the resolution without proof that the city will have full control over the program. Details: Page 5A.

But the law is so new that IRS hasn't had time to work out the bulky tables it needs to say how much any particular taxpayer will take home then. An IRS expert did figure the changes in withholding for three average families with yearly incomes of $5,000, $10,000 and $15,000, paid weekly. In each case he assumed the family consists of a man, his non-working wife and their two children and that they take the minimum deduction of $600 each. Because of "a mathematical quirk" in the complex formulas, IRS said, the man with a $5,000 salary, paid at $96.15 a week will have $6.10 in taxes taken out instead of the $5.70 deducted during 1969. Added to this is $4.62 a week in Social Security taxes, but because his salary is below the $7,800 cutoff point, he paid that all year and there will be no change.

He will take home $85.43 instead of $85.83 but will be able to recover the extra 40 cents a week when he International Manila Vice-President Spiro T. Agnew's second day in the Philippines was a busy one. He was warmly applauded as he attended President's Marcos' inaugural. Agnew laid a wreath at a monument to American World War II dead. And he had a "productive" meeting with the South Korean premier.

There were no further hostile demonstrations like the one that marked Agnew's arrival Monday. Details: Page 4A. Moscow Sixty Ethiopian students stormed their embassy here, ripping out phones, tearing up files, marking swastikas on the walls and chanting slogans against Emporer Haile Selassie protesting the death in Addis Ababa of Kilahun Gizaw, 29, student leader shot Sunday by an unknown gunman. Cairo Officially reacting for the first time to the five gunboats en route to Israel from France, Egypt accused the Israelis of stealing the boats from France. Cairo warned nations against dealing with Israel which, it charged, respects neither sovereignty nor legality.

The five boats, meanwhile, are keeping well to the north of Egypt's shoreline as they move steadily toward Israel. Details: Page 4A. Business Detroit Chrysler Corp. said all its 37,700 assembly plant workers will be laid off one week during the first two weeks of January, apparently to reduce production and decrease dealer inventories. Chrysler also reduced production during Thanksgiving and Christmas weeks.

It and the other two leading automakers General Motors and Ford have closed selected plants recently- Tuesday Dow Jones Averages (Noon N.Y.) Avg. Chg. 30 Industrials 792.77 .40 20 Rails 174.67 .88 15 Utilities 109.50 .22 65 Stocks 260.65 .23 Noon sales, 6,880,000 shares Books and arts Section Editorials Page 6-7A Business Section Sports Pages 1-2D Women's news Pages 4-5C I TV-radio Section Comics Pages 2-3C Theaters Section Day's records, weather. 8A STAR TELEPHONES Want Ads 372-4242 News, General 372-4141 Circulation 372-4343 Vietnam Saigon The first hours of the Viet Cong's New Year's cease-fire brought enemy mortar fire that killed at -least one American soldier and wounded several others. Other enemy rocket and mortar attacks wounded 10 South Vietnamese.

No major ground fighting was reported Details and related dispatches: Page 2A. Anchorage A thousand Alaskans, answering an urgent Red Cross call, turned out to help Texas billionaire H. Ross Perot repackage the cargo of medical supplies, clothing and food he is trying to get to U.S. war prisoners in North Vietnam. Told his belated Christmas cargo might reach Hanoi if repackaged and mailed in Moscow by Dec.

31, Perot said he would beat the deadline. His chartered jet took off for Denmark on the next leg of its mercy flight. He still needs permission to land in Moscow. Weather Weather in the Upper Midwest ranged from clear to cold (15 below at Aberdeen, S.D.) to snowy and relatively warm (28 at Rapid City, S.D., with blowing snow). Light snow in the Twin Cities area was expected to fade and temperatures are to dip to about 5 tonight, with a high Wednesday of about 24.

Details: Page 8A. files for a refund at the end of the year. "It doesn't mean his taxes are going up," the IRS man said, "but the tables that employers use for withholding are the best approximate and the formulas that make them up resulted in some numbers going funny." If the man's yearly income is $10,000, his tax will drop to $23 a week from $23.70. He hasn't paid Social Security taxes for a couple of months, however, so he will have an additional $9.23 deducted, for a total of $32.23, and will take home $160.08 of his $192.31 weekly salary. When income rises to $15,000 the difference is slightly more pronounced.

Income tax will take a bite of $41 from the $288.46 weekly salary instead of $42.70 this year. Add to that, however, $13.85 for Social Security not paid since summer and take-home pay comes to $233.61. None of the figures includes salary increases for extra deductions such as those for Insurance, retirement plans or union dues. Israelis rule arsonist ill I i JERUSALEM, Israel CP) A special Israeli court ruled today that Denis Michael Rohan was mentally ill when he set fire to the AlAksah Mosque in Jerusalem and ordered him confined to a hospital for treatment. Presiding Judge Henry Baker said there was no doubt Rohan that the 28-year- old Australian set Islam's third-holiest shrine ablaze Aug.

21, but that he acted on an "irresistible impulse" and was not punishable under Israeli law. The three-judge court gave Rohan 45 days to appeal the hospitalization order. Rohan will be taken to the Talbiyeh mental hospital in Jerusalem. Rohan admitted setting the fire, but his attorneys denied criminal responsibility because of his mental condition. "I ignited the Rohan testified, "to prove to the world that God wants me to build His temple and that He will set me up as king over Jerusalem and Judea." 1 a President approves defense funds bill WASHINGTON, C.

UP) President Nixon, just before leaving for a California vacation, signed into law today a measure appropriating nearly $70 billion for the Department of The appropriation, for fiscal, year 1970 which began last July 1, allots the Army and the Air Force $22 billion each, the Navy $20.8 billion and other defense agencies $4.4 biN lion. Th'e appropriations, by category, break down this way: Military personnel, $20.8 billion; retired pay, $2.7 billion; operation and maintenance, $20.8 billion; procurement, $17.8 billion; research development, testing and evaluation, $7.3 Toughest-ever coal mine safety measure approved by. President. Details: Page 6C. 7 Tax hangover woes loom WASHINGTON, D.C.

CP) The Tax Reform Act promises a brighter tomorrow for John Q. Taxpayer, but he may and in many cases will find a smaller paycheck next week. Quirks in Internal Revenue Service figuring of withholding tables and the resumption of Social Security taxes for everyone earning over $7,800 a year means some withholding amounts will go up instead of down when the new law takes effect New Year's Day. The largest change is the Social Security levy. The tax is collected on the first $7,800 of a year's income.

That point passed in October for people earning $10,000 and in the summer for people with $15,000 yearly salaries. In many cases, the tax more than outweighs the fact that the new bill cuts the income tax surcharge to 5 percent from 10 percent. The situation will change In July, when the law's provisions raising the personal exemption and the minimum standard deduction first take effect, and the surtax expires entirely. i.