Battle Creek Enquirer from Battle Creek, Michigan • Page 1

over LANSING (AP) Gov. William Milliken called today for personal and corporate tax relief to meet a slowing economy and urged greater protection against the energy crisis that is providing the fiscal headaches. Milliken's proposal would cut taxes by $107 million over two years in four areas food expenses, property taxes of certain groups and corporate and farm taxes. Milliken touched on many other items in his annual State of the State message to the legislature, including election and campaign reform, open government, crime, transportation and a number of other issues where he seeks action. But the energy crisis and the effect it will have on Michigan's economy received most of the governor 's attention, as was expected.

"No single factor could have a greater bearing on the state of the state this year than the energy crisis," Milliken said. "There should be no doubt now absolutely none whatsoever about the reality of the energy crisis." Despite the anticipated reduction in the growth of revenue by about 50 per cent, continued expansion and a budget surplus have led Milliken and his advisors to the decision the state can afford further tax relief and still balance its books. Thus the governor outlined a tax relief program, in addition to his $380 million two-year cut which began this month. It would provide a tax credit on food of $31 million a year for about 1.7 million families earning under $13,000 a year, more than half the state's families. It also would include additional property tax relief of $5 million a year for the blind, senior citizens and the disabled, and reduce the corporate franchise tax by half a mill, or $17 million.

This would be done in an attempt to save old jqbs and create new ones by giving a boost to business. Finally, the governor said, it would enable industrial cities to freeze industrial property taxassessments, and provide farmtaxrelief. Gerald Miller, Milliken's fiscal expert, said Michigan expects a surplus next July of about $180 million, but the budget could not absorb a Democratic proposal of removing the sales tax from food. Miller said selected revenue sources would decline, but service and the governmental sector will hold their own and would permit supplemental appropriations for welfare if unemployment strikes hard. He said he believed, however, that unemployment will not reach the 12 per cent figure suggested by other, state officials.

Miller predicted the state will dip into its surplus, and said a "mild recession" is anticipated. But, he said, conditions should improve graduaually late in the year and in early 1975. Meanwhile, Milliken spelled out in his written message steps he feels are needed to further strengthen Michigan's economy. Included are job development authority by allowing the sale of bonds to promote business, a study of workmen's com-, pensation to determine its adequacy, a boost for nonprofit economic development, expansion of foreign trade and other business and job-promoting activities. The governor praised the legislature for finally approving a watered-down version of an emergency energy bill, but he called for a great effort at conservation by individuals and institutions.

"There is another immediate need," he added. "In view of the new federal law which would impose a financial penalty on Michigan unless we fail to lower speed limits to 55 miles an hour, it is imperative that you lawmakers immediately enact pending legislation." In addition to the quick action, Milliken called for laws on power plant siting, better regulation of fuel-producing processing, appliance labeling, and increased public transportation. He also urged an energy office to coordinate state programs and study of energy needs and supplies. On other subjects, Milliken called for election reform to heal the "crisis of confidence in government and its institutions." Milliken began his speech by referring to what he termed "a long chain of abuses" on the national level. But, he said, the states "can do much to restore the confidence of the governed.

(TurntoA-2) ENQUIRER NEW! Milliken expected to quickly sign new energy bill battle creek 15 cents Serving South Central Michigan Thursday, Jan. 10, 1974 New hospitalization rules proposed HEW secretary recommends admissions review for Medicare patients but not laws. He also cannot curtail store hours to conserve energy a power Milliken wanted. The compromise reduced from six months to 45 days the time a gubernatorial order can be in effect without legislative approval. The legislature also has the power to veto emergency orders made under the energy bill.

The bill itself expires June 30 this year instead of June 1975, as originally proposed. The public service commission was empowered to collect information from utilities and upon declaration of an emergency energy shortage by the governor to direct supply and fuel allocation in Michigan. The bill also calls on the commission to cooperate with the federal government in regulating fuel operations and provides $200,000 to hire additional commission employes to concentrate on the fuel shortage. LANSING (AP) Gov. William G.

Milliken is expected to quickly sign a long-stalled bill giving him special powers to fight the energy shortage. The bill was a compromise measure worked out in conference committee and passed by the House on Dec. 14, the final day of the 1973 legislative year. The Senate refused to act on the measure then, but approved it by the bare minimum 19-14 vote Wednesday as one of the first actions of the 1974 legislature. Milliken called Wednesday's action commendable, but said he hoped lawmakers also will act quickly on other pieces of energy legislation, particularly to lower speed limits to 55 miles per hour.

Sen. Harry DeMaso, R-Battle Creek, voted for the bill. The compromise bill, watered down considerably from the one Milliken initially requested, allows the governor to, suspend rules and regulations. then administration review, the move is one of two new steps to try to control hospital costs. The Cost of Living Council will announce shortly that hospitals may increase their average costs and charges this year by Vh.

per cent per admission. Cost increases were previously geared to total hospital By The Washington Post WASHINGTON In a drastic step to cut the nation's hospital costs in preparation for national health insurance, the Nixon administration moved Wednesday to require a medical committee to approve all nonemergency Medicare and Medicaid admissions before the patient can have a bed. Secretary of Health, Educa I HP um mm i 7 Nixon white papers raise new questions Government auditing petroleum refiners WASHINGTON (AP) Energy Chief William E. Simon said today that investigators from his Federal Energy Office and the Internal Revenue Service are auditing the price, profit and supply records of every petroleum refiner in the nation. A statement issued by Simon said the audit is aimed at making sure the price increases on petroleum products reflect only cost increases and not jacked -up profits.

It also will help to verify the accuracyof refiner reports on crude oil and product supplies and "is a major step toward establishing an independent reporting and information system on refineryinventories at FEO, Simon said. Policeman tracks down disappearing dog dishes to some coming form if national health insurance. The hospital and medical groups may oppose both moves as too extreme. Both will vastly increase the pressure on doctors and hospitals to care for patients in clinics or offices rather than in hospital beds. Thus both could sharply affect the way ail Americans get their health care.

(UPI Photo) tion and Welfare Caspar W. Weinberger proposed a new set of Medicare-Medicaid rules that would call on hospitals' utilization review committees composed of doctors in the same hosptial to decide whether each admission is necessary. The proposal would directly affect the one third or so of the hospital's patients their roles. And Erwin N. Griswold, for- mer solicitor general of the United States, said he disagreed with part of the White House version of the ITT case.

The discrepancy between the White House account and what happened, Griswold said in a telephone interview with the New York Times, involved the timing of the White House au-. thorization for an appeal by the Justice Department to the Supreme Court of a District Court decision against the government in the Grinnell case, one of the three suits against ITT acquisitions. In a statement Tuesday, the White House said that on April 19, 1971, President Nixon called then Dep. Atty. Gen.

Richard G. Kleindienst and ordered that an appeal of the Grinnell case not be filed. Griswold's office had prepared the appeal, and the deadline for filing was the next day, April 20. Although the White House account made no mention of it, Kleindienst, according to a statement on last Oct. 31, told Nixon that he would resign rather than carry out the order.

Kleindienst said that on April 20 he got a 30-day extension of time for filing of the appeal "to enable the President to consider my position." As related Tuesday by the who are Medicare or Medicaid recipients. But it also could set a pattern by which review committees and other new groups required by federal law the professional standards review organizations soon will be reviewing all hospital admissions. Published in the Federal Register and subject to health industry comment for 30 days, White House, theHPresident-talked to Atty. Gen. John N.

Mitchell on April 21, and was advised by him that it was inadvisable for the President to order no appeal. "The attorney general reasoned," the White House statement said "that, as a personal matter, Mr. Erwin N. Griswold had prepared his brief for appeal and would resign were the appeal not to proceed. The attorney general further feared legislative repercussions if the matter were dropped entirely." On this recommendation, the White House said, the President reversed his decision of April 19, and authorized the Department of Justice to proceed with the case in accordance with its own determination." But Griswold said Wednesday that he had not received White House authorization to proceed with the appeal until nearly a month after Mitchell was said to have advised the President that Griswold might resign if the appeal were dropped.

"I didn't get authorization until about May 15, 16, or 17." Griswold said. "It was shortly before the extension would have expired." Griswold said. he could not (TurntoA-2) Sports Television B-7 Women's News Pennfield Township police have finally solved a mystery involving disappearing dog dishes. For the past three days, Karen Miller of 165 E. Sunset Blvd.

has been complaining to township police that someone was taking dog dishes that she had set outside her home to feed her dog. Every day, the dish she would put out would disappear. On Wednesday, after another The key words in the new Phase IV rules for hospitals are "per admission." Administration and health industry economists argue that the effect will be to encourage hospitals to keep hospital stays short to hold average costs down. This move, too, was seen both by administration officials and by hospital and medical associations as preparatory on. criticism, party sources said.

Gov. William Milliken called Youngblood resignation "an appropriate step for the senator to take" and was expected to announce soon a special election to fill Youngblood 's seat. His removal leaves the Senate with 18 active Republicans and 17 Democrats. Democrat Coleman Youngresigned to become Detroit mayor and Republican Anthony Stamm of' Kalamazoo was incapacitated, bystroke Sept. 20.

"I am innocent," Youngblood told his colleagues in what turned out to be the 1974 Senate session's first speech. "I held on until the last minute but I understand the Republican party will not go along with suspension. You want to boot the man out," the 12-year Senate veteran said while other lawmakers sat in silence. "I know you don't want to do anything but you're forced into it by public sentiment I know individually each one of you inside and you're a great bunch of guys." Youngblood finished his extemporaneous speech in less than five minutes, turned to the back door and walked out after Sen. Charles N.

Youngblood shakes hands with Sen. George S. Fitzgerald, R-Grosse Pointe, before leaving the Senate as Sen. Charles O. Zollar, R-Benton Harbor, looks $1 -a -loaf bread prediction discounted by government complaint, Patrolman Terry Moore went to the scene of the crime and spotted some tracks leading from the house to nearby woods.

Moore followed the trail into the woods and saw a large German shepherd walking along with a dog platter clutched between his teeth. Moore managed to retrieve the dog dish, but the thief disappeared into the woods. exports to foreign nations that they said would create domestic shortages. During a Wednesday news conference, officials of the American Bakers Association predicted the increase in bread prices if the wheat shipments are not curtailed. The organization called for export control.

Later in the day, Brunthaver said, "We are very much opposed to any discussions of export controls at this time." He said the average supermarket price of a loaf of bread last November was 31.5 cents, of which the price of wheat represented only 4.8 cents. By Combined Wire Services WASHINGTON President Nixon's white papers on the milk fund and ITT affairs raise some questions about the actions and statements of some formeraides. In issuing the papers Tues-' day. the White House denied anew that promises of political contributions were behind Nixon's decision to raise dairy price supports or administration settlement of an antitrust case against International Telephone and Telegraph Corp. Nixon's ITT statement left standing some apparent conflicts between what Nixon now says and what former attorney general John N.

Mitchell and Richard G. Kleindienst once said under oath concerning THE STATE OF This Week's Winning Numbers: 465 281 Bonus Numbers: 140 138 Heavy snow predicted for tonight A heavy snow warning was issued today by the U.S. Weather Service in Grand Rapids. The bureau predicted that between one and three inches of snow will fall tonight. The snowfall will be in addition to the one-half to one inch of snow that fell last night on most of Southwestern Michigan.

The southernmost counties, including Branch and St. Joseph, received between one and two inches last night. The snow is expected to continue Friday. Saturday through (Monday are expected to be fair land cold. The high temperature unutf and Friday will be in the mid.

20s. The low temperature tonight is expected to be in the mid teens. Saturday and Sunday are expected to be colder, with highs in the teens and lows near zero to 10 above. Winds will be northeasterly 10 to 18 m.p.h. today and tonight, increasing to 12 to 2 m.p.h.

Friday. Sen. Youngblood resigns in face of Senate expulsion World Today WASHINGTON (AP) A bakery industry industry prediction that the price of bread could soar to $1 a loaf by spring has been discounted by a top Agriculture Department official. The official, Asst. Agriculture Secretary Carroll G.

Brunthaver, called the prediction "an irrational statement" and said wheat would have to cost 1160 a bushel for a one-pound loaf to cost $1 at the retail level. The bakers based their claim on a forecast that the price of wheat, now at about $6 a bushel, would rise to $12 a bushel, primarily as a result of wheat A Georgia jury took a little over an hour to return the guilty verdict and death sentence in the murder trial of George L. Dungee, who is the second Maryland man to be convicted on six counts of murder in connection with the mass murders of five farmers and a housewife last May 14. A-3. Secretary of State Henry Kissinger leaves tonight for the Mideast for talks that could lead to a settlement of troop disengagement along the Suez Canal.

B-7. U.S. sources say that the United States and Panama have reached a preliminary agreement on the return of the Panama Canal and Canal Zone to Panama, but caution that months of negotiations lie ahead for a final treaty. B-8. Sweden is rationing gasoline for the second day today, and Nor way and the Netherlands will ha ve rationing this month.

A-3. Imports of crude oil to the United States last week were 1.6 million barrels per day lower than the level around the time the Arab oil embargo began. B-9. LANSING (AP) Former State Sen. Charles Youngblood convicted two months ago of bribery conspiracy, is a private citizen looking for work today after he resigned in the face of almost certain expulsion by his Senate colleagues.

The Detroit Democrat announced his resignation in a sometimes quavering voice on the Senate floor Wednesday, moments after Republicans rejected a compromise that would have let the 41-year-old father of five suspend himself voluntarily until his court appeal is finished. It would have been the only legislative expulsion in Michigan history, capitol historians said. His resignation which Youngblood said he did not settle on until stepping to the microphone near his desk took Senate Democrats off the political hook by saving them from another vote on his expulsion. Many Democrats were grudgingly prepared to turn around on their. Dec.

13 vote against expulsion that reaped a whirlwind of public and party several bipartisan handsnaxes. He said he will visit his family for a week in Gulliver, a tiny central Upper Peninsula community, and then seek work outside of government. He said he has no job prospects, despite efforts by Senate Democrats to find him work. Youngblood is appealing his Oct. 17 Wayne County Circuit Court conviction with two other men of conspiring to bribe the chairman of the state Liquor Control Commission to get liquor licenses for three Detroit area supermarkets.

Senate Democrats were stung by public furor over their refusing to join Republicans in last month's ouster move that failed to get the required votes. Democrats said they presented Youngblood with two alternatives after caucusing Wednesday resign or be forced out. Within the past week many top state Democrats publicly criticized the refusal to oust Youngblood and called for his expulsion. The names included on the list urging expulsion read like a party "Who's. Who:" Atty.

(TurntoA-2) i Trading mixed today after heavy losses NEW YORK (AP) Stock prices were mixed today after veryheavy losses on Wednesday. The Dow Jones average of 30 industrials was up nearly a point near opening but declining Big Board issues outpaced gainers moderately. Stock prices took big losses Wednesday with the Dow Jones a vera ge of 30 industrials losing 26.99 points to close at 834.79, its third biggest single session loss since 1962, and its seventh largest session loss ever. Brokers said fears about inflation, particularly what the escalating price of oil will do to foreign economies, were the main reason for the slides, which hit American-based international companies the hardest. Comics Deaths Editorials B-13 A-10 A-6 -jit I WEAHaEEl" 1 Snow today, tonight; WjTj 1 to 3 inches more expected.

Details on A-10 i.