CLOUDY WARM EVENING EDITION VOL. 61 --NO. 286 CORPUS CHR1STI, TEXAS, TUESDAY, AUGUST 17, 1971 Wont Adi M2-9401 Other Oepts. 88-Mn 34 PAGES -- PRICE TEN CENTS Seaside Friendliness Israeli Defense Minister Moshe Dayarr (left) shakes hands with an Arab at the Israeli seaside resort of Natanya. The Arabs, from the land- locked West Bank of Jordan, are taking advantage of a new plan allowing them more freedom of movement inside Israel so they can visit the sea. (AP Wirephoto via cable from London) Dillard Department Stores, Inc., which operates a large store in Padre Staples Mall, today announced the purchase of five Federated Department Stores in Texas and New Mexico, including the downtown Corpus Christi Fedway site. .The local Fedway store, in the 200 block of Chaparral, has been in business here since 1957. It employs 117 persons. A sale price of ?6 million was announced for the five stores which include two in Albuquerque, and one each in Corpus Christi, Longview and Wichita Falls. Dillard's local mall outlet opened in March, 1970. William Dillard, president of Dillard's, said that the Fedway stores will complement present Dillard operations which total. 17 stores in Arkansas, Louisiana, Texas, Missouri and Oklahoma. Effective date of the changeover is Aug. 28. The Albuquerque downtown store will be phased out by Jan. 29, 1972. "Fedway will pay employes, including those who continue with Dillard, termination allowances based on length of service," the announcement stated. Fedway officials commented, "While these stores have produced a profit over the years, the 'small-city department store concept does not offer Federated the opportunities that are present in abundance in our metropolitan divisions." The three-story local Fedway store contains 147,500 square feet of floor space. The Dillard company is listed on the American Stock Exchange and had a sales volume for the 52 weeks ending July 31 of Â§83 million. Sales of the purchased units for the same period were approximately $13 million, officials noted. Federated's total annual sales are more than $2 billion. County Postpones Pay Hikes During 90-Day Freeze Period By, SPENCER PEARSON The County Commissioners Court today passed a resolution postponing all county pay raises for a 90-day period to comply with President Richard M; Nixon's wage-price freeze. The resolution includes delay of automatic step-pay Increases granted em- ployes when they complete certain periods of service. Commissioners questioned postponing step-pay increases but agreed to include them, at least until they can obtain guidelines from Washington. They indicated that step-pay increases Routes Into Tilden Closed As FrioNears Record Levels By GRADY PHELPS The rain-filled Frio River, rising at the rate of 1 to 3 feet an hour, reached near record heights In Tilden in McMullen County this morning, closing three of four highways which lead into the community. Russell Mozeney, meteorologist in charge of the Corpus Christi Weather Service, said there was no danger of major loss of lives or property. "The townspeople had enough advance warning to take precautionary measures," Mozeney advised. "Most of the main part of the town is high and dry." The Frio meanwhile rose to 29:20 feet at Tilden at 9 a.m. today. This was just below the record of 29.23 set in 1932. It surpassed the high of 28.92 feet which came in the floods which followed Hurricane Beulah in September, 1967. Flood stage is 12 feet. Mozeney said the flood had apparently crested at Tilden and he was hopeful the Frio would begin falling later today. Ten miles away, Three Rivers awaited the flood waters which are expected to start entering that city tomorrow morning. "We don't know exactly how much water will reach Three Rivers, but I'm afraid some water will get into the streets," Mozeney cautioned. Three Rivers reached a record flood of near 50 feet after Beulah in 1967. A height of 30.80 feet was recorded in recent flooding on July 7. Robert Beasley, an employe of the Texas Highway Department in Tilden, said flood water was 2% feet deep In some city streets tills morning. He said Highway 72 east to Fowlerton was closed, as was Highway 72 west to Three Rivers. Both had nearly three feet of water over them In some areas. Highway 16 north to San Antonio was also impassable. The only road into Tilden was Highway 16 from Freer,. Farm Road 99 from Calliham to Whitsett was also threatened by high water. The National Weather Service advised all residents in the Tilden area to continue precautions for rising water from Tilden to Three Rivers through tonight. Atlee Cunningham, Corpus Christi water superintendent, said the river at Calallen is holding steady now, will fall tomorrow and-continue for a few days and then rise again as the new flood waters swell its level. He Is predicting a crest of 10 to 10i^ feet at Calallen by the middle of next week. This will be a half to a foot over the flood level of July 11. See FLOOD, Page 14A would resume if Washington officials approve them. The pay question arose when Park Director Donald Tumminia asked the court to reclassify some park maintenance employes so they would receive more pay. County Judge Robert N. Barnes said he had suggested to Tumminia prior to Nixon's executive order that he appear before the court. Tumminia mentioned four maintenance employes whose base pay ranged from $306 to $331 a month and whose take- home pay was less than $300 each. Barnes said there was some question as to whether the President could tell the states what to do, "but he can sure tell me what to do." In other business today the Commissioners Court heard a complaint about conditions in the county jail and heard a report on the proposed appointment of reserve deputy law enforcement officers. See COUNTY, Page 14A 5 Soviet Warships Use Tsugaru Strait TOKYO m -- Five Soviet warships passed through Tsugaru Strait in northern Japan, apparently on their way to the Pacific Ocean for military maneuvers, the Japanese Defense Agency said today. The agency said a patrol plane of Japan's Maritime Self-Defense Forces spotted two Soviet destroyers and three cruisers in the strait located between Hokkaido, Japan's northernmost main island, and Aomori Prefecture in north- em Honshu. Tsugaru Strait is 40 miles across at the widest point and 24 miles at the narrowest. The agency said Soviet warships had been seen in the strait in the past, but this was the first time that five Soviet warships were seen passing through at one lime. It identified the five ships as missile cruisers of 4,800 and 6,000 tons, another 15,450-ton cruiser, a 3,650-ton missile destroyer and a 2,850-ton destroyer. Quick Action on Nixon Plans Lawmakers Set Hearings On Sept. 8 By BROOKS JACKSON WASHINGTON M -- President Nixon got assurances today from congressional leaders that they will move swiftly to consider his proposals to curb inflation and stimulate the economy, the White House reported. Press secretary Ronald L. Ziegler, reporting to newsmen on a two-hour and 15-minute meeting "between the President and key congressional members of both parties, described its tone as positive and cooperative. The House Ways and Means Committee is to begin hearings Sept. 8 on the portions of the program that require legislative action -- a 10 per cent investment credit to encourage purchase of productive equipment, repeal of the 7 per cent excise tax on automobiles and a speed-up of already scheduled income tax liberalizations. Talking separately with newsmen, Rep. John W. Burns of Wisconsin senior Republican member of the Ways and Means Committee, said he expects the panel to conclude the hearings in about 10 days and move immediately toward shaping the legislation. Ziegler said Senate Democratic Leader Mike Mansfield of Montana promised prompt action in the Senate. Burns said there was considerable discussion of details of the proposed legislation and indication of the possibility that the restored investment credit might be made retroactive to April 1, 1971, rather than Aug. 15, as the President recommended. This would be in line with earlier statements that if the credit were restored, it would be as of April 1 because discussions of the possibility became public then. Burns said he anticipates favorable action but also expects some pressures in Congress for tax relief going beyond the President's recommendations. "I think we will have to be restrained in going beyond what has been proposed," he said. Yesterday brought a worldwide whirlwind of reaction to Nixon's announcement Sunday that he would cut the dollar loose from gold, order a 90-day wage- price freeze, Increase tariffs, reduce federal spending and ask Congress to cut taxes for auto buyers, businessmen buying new equipment and, starting next vear, the average taxpayer. " --The New York Stock Exchange rocketed to a record single-day gain of 32.93 points in the Dow-Jones industrial average. Foreign stock markets suffered. --AFL-CIO President George Meany said the new Nixon plan favors business and Is "patently discriminatory as far as American workers are concerned." Other labor leaders were generally cool. --Consumerist Ralph Nader called Nixon's package "a mixture of successful special-interest pleading and anti-consumer policies." --Importers and foreign embassy officials beseiged the Treasury Department with inquiries about specific applications of the new trade policy. --Money exchanges in Europe, Africa and Latin America closed. American tourists took a beating exchanging their dollars for local money in informal transactions in hotel lobbies. But the administration said it remains to be seen whether the floating dollar will amount to a devalued dollar. --Reaction from Congress continued generally favorable, although some Democrats said the wage-price freeze won't work. Chairman Wright Patman of the House Banking and Currency Committee said the freeze should Include control of interest rates. Treasury Secretary John B. Connally said such controls might prompt lenders to hoard their money, and he called on them to furnish "reasonable" interest rates voluntarily. Hours later, the government announced the deficit climbed to its worst level in history for April, May and June, reflecting an outflow of dollars seeking higher interest rates abroad and America's first deficit in merchandise trade in years. See NIXON, Page 14A OKAYED PREVIOUSLY State Pay Hikes Are Not Frozen Caller-Times Austin Bureau AUSTIN -- Gov. Preston Smith said today he has been notified that the wage- price freeze ordered by President Nixon will not affect state employe pay raises, teacher pay raise, municipal pay raises or items in the appropriations bill passed by the 62nd Legislature. "We dp understand, however, that insurance rate increases and Texas Railroad Commission rate hearings will be frozen^" the governor said. Smith said he had obtained the information from the Office of Emergency Preparedness in the White House. Smith said F. J. Russio, assistant in the economic stabilization division of OEP, had informed him that "that this office has been informed that the President's executive order would cot affect state salary increases. The President holds the view that states are hit hardest by inflation,and are capable of assessing their situation more accurately than Washington." Smith said he had also been informed by Russio that tuition rate increases adopted by the Legislature for the fall term at Texas colleges and universities would not be affected by the presidential order. "We of course are pleased that state and municipal employes and school teachers will not fall into the category of the wage-price freeze. In view of current inflation, they certainly deserve their raises and we have always supported them," said Smith. nside Today's Times Weather Forecast Partly cloudy and continued warm through Wednesday. Nightime lows: Mid 70s. Daytime highs: Low 90s. (Details: Page 3C) The Nation Consumer groups report they have found shoppers can get more for their food dollar by shunning convenience stores and dividing their shopping lists among competing supermarket chains. The groups called on newspapers to begin printing daily listings of comparative supermarket prices just as they now run stock market, listings affecting fewer readers. Page 12C. THE FEDERAL Office of Emergency Preparedness is a modest midget among Washington bureaucracies. That is, it was until Sunday when President Nixon froze wages, prices and rents for 90 days and assigned administration and enforcement of the freeze to the OEP. Page 6A. GENERAL MOTORS has rescinded recently announced price increases on its 1972 models in the first major move by big industry to back President Nixon's wage-price freeze. Ford also indicated it would go along with the price freeze, but would appeal for the right to hike prices on some new cars. Page 12C. AN 11-FOOT PYTHON from the jungles of South Vietnam is living in an unused trailer in Massachusetts where she has found the climate a little chilly. Her owner thinks she may be about to bring some baby snakes into the neighborhood. Page 12C. "SCISSORS SAM" has been on the road for 44 of his 61 years. He's a hobo with his eyes always fixed on some distant point on the horizon. The good old days of hoboing are gone, and the open road today belongs to a new generation. But Scissors Sam still moves on. Page 11A. The World Only in movies and the imagination can you find back-street money changers with enough cash to manipulate currency exchanges and undermine the strength of the U.S. dollar. Instead you find in Europe's financial centers a highly paid financial executive those job is to protect their companies' financial reserves. Page 3C. MORE THAN 90 persons were killed, more than 200 were injured and 2,500 persons were left homeless after Typhoon Rose, with winds of 130 miles an hour, hit Hong Kong. Landslides caused by 12 inches of rain added to the heavy property damage. Page 3C. Regular Features Action Line 2A Ann Landers 2C Comics I2A Editorials 2B Entertainment 9A Heloise Horoscope Murray 2C 9C 6B Obituaries Sports Tagliabue TV Scout Van Dellen Want Ads Weather Map Women 8A 4B 4K 9A 13A 3C 3C 1C No Fury Like A Consumer Overcharged By LYNN LANGWAY Â© Chicago Dally News WASHINGTON -- There's a very angry consumer in Thomasville, Ga., who's trying to turn his grocer in to the Treasury Department. About three hours after Treasury Secretary John Connally appealed yesterday to shoppers to report violations of the price f r e e z e , the Thomasville man called the department in Washington. It was their first complaint, and Treasury officials didn't quite know what to do when the man demanded to speak to the secretary, saying "I just saw him on TV and he said to call." Connally's aides said the secretary was a little busy, and could they take a message? It seems the -man's grocer had just charged him 2 cents more on a Sara Lee poundcake than he'd paid last week. Tiie aides promised to pass the word along. New Economic Moves May Produce Uneven Results By EILEEN SHANAKAN Â© New York Times News Servlca President Nixon's dramatic new national and international economic polities constitute not one new program but three separate ones -- and the success or failure of one may not depend very much on the success or failure of another. It is possible, for example, that the price and wage freeze that the President has ordered, but without'any machinery to enforce it, may not work, but that the actions to stimulate the economy will in- deed work -- or vice versa. Or the attempt to restructure the whole world monetary system by a unilateral U.S. initiative might succeed, while the American economy continues to limp. Or vice versa. Any combination of success and failure seems to be more than a mere technical possibility. This Is one of the two main points that emerges from examination of what the President has ordered and recommended. The other is that his program for stimulation of the economy does not depart from fundamental Republican principles so much as might appear at first glance. It is a modest program. Nixon could have gone a good bit farther than he did in recommending tax reductions and he could simply have omitted any attempts to reduce government spending (although the reductions he did order may be more seeming than real). In fact, it is possible to argue that in taking such relatively modest steps toward stimulating the economy, Nixon Is run- A Coluftin Of Comment ning the risk that he will exhaust the available medicine for stimulation, frittering it away in small doses that may not 'achieve his desired results. . The President obviously believes that he is going to avoid this risk. Secretary of the Treasury John B. Connally argued forcefully at a news conference yesterday that the stimulative effects of Nixon's program "ought to be of sufficient magnitude to far outweigh (the restraining effects of) the reduction of federal spending." The prospects for success or failure of the President's program for stimulating the economy and creating more jobs can at least be argued on the basis of known facts and statistics and in light of the lessons of economic history. Tliis Is not true of the other two elements of Ms program -- the 90-day freeze of wages and prices and the complex steps aimed at Improving the nation's economic position in the world. It does seem likely that some prompt and favorable effects will be felt from imposition of the special 10 per cent tax on most imported goods except for items, like coffee, that the U.S. does not produce, and those already subject to import quotas, like oil and beef. Insofar as Italian shoes, for example, become more expensive and drive con- sumers to the purchase of American shoes, that will not only help the balance of American trade and confidence in the dollar but might even also create a few additional jobs in New England shoe factories. On the other hand, the probable consequences of the U.S. decision to stop exchanging gold for dollars, on'demand, for foreign governments and central banks, could not be harder to predict, simply we- cause the step is so radical. Recent history docs provide considerable basis for optimism that the world's international money managers will, once again, prove flexible and imaginative --. as they have many times in the past decade in taking such steps as the creation of the new "paper gold" and the two-price system for gold, and in withstanding, without disastrous consequences to anyone, major devaluations and revaluations of their currencies by Britain, West Germany and France. See ECONOMY, Page 14A.
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