Idaho State Journal from Pocatello, Idaho • Page 1

TM' Connolly Urges Passage Of Tax Cut Proposals Opening Round Handshake Chairman Wilbur D. Mills, shakes bands today with Secretary of the Treasury John B. Connally at the start of a House Ways and Means Committee hearing in Washington Connally was the leadoH witness, urging the Congress to "pass the tax portion of President Nixon's new economic pro-ram Key members of the Democratic-controlled Congress have criticized the tax program as heavily weighted In favor of business. (AP Wirephoto) IDAHO VOL. LXXNO.

151 WASHINGTON (AP) Secretary of the Treasury John B. Coiuially, urging Congress to pass the tax portion of President Nixon's new economic program wilhout change, said today it would "not be a bonanza for business." Connally opened Hie administration's case More the House Ways and Weans Committee on the day Congress reconvened from the vacation that saw Nixon spring his economic surprise. George P. Shultz, budget and management director, will follow Connally Thursday. Nixon will appear before a joint session of the House and Senate that same day, apparently to attempt a clincher, His speech will be broadcast nationally, Key members of the Democratic-controlled Congress have criticized Nixon's tax program as heavily weighed in favor of business.

They have said they will attempt to expand it to providemore tax relief for individuals. Hut Connally said Nixon's proposal, added to the Hon tax cut to take effect in January, would mean a lion lax reduction for individuals, And lie contended repeal of the 7 per cent automobile excise tax, which he said would mean an average reduction of $200 in car prices, would be a boon for car buyers rather than producers, "In 1912 the combined effect of the cut already scheduled, plus enactment of (lie President's program, will mean a reduction in individual tax payment- income and excise- of about $7 billion," Connally said. Nixon wants repeal of the automobile excise: reinstitution of investment tax credit by which industry recaptures part of its equipment spending and which the administration has renamed "the job development credit;" a speedup of some income tax relief that was scheduled lor 1073, and lax breaks for U.S. importers through a system of subsidiaries tor overseas trade, "The point to emphasize is (he job-creating impact of the President's program," Connallv said. The secretary said the investment lax credit, stimulating business spending, would more quickly reduce unemploy.

ment while helping investors and consumers. And he said the credit should not, as some in Congress have contended, be made retroactive to a date earlier than' Aug. 15, 1971, if this maximum effect in stimulating new investment is to be preserved, Connally said business profits, measured as a percentage of the Gross Natonal Product, are lower than at any time since 1938. During the past five years, he said, profits have dropped $9 billion while wagos and salaries increased $147 billion. Facing up to the demand in some congressional quarters for a postponement of Social Security payroll tax increases scheduled to go into effect in 1872, Connally said the proposed income tax relief speedup would more than offset these, while providing "a powerful stimulus to business activities." And he said it is a mistake in thinking about profit to picture only "the wealthy individual receiving a dividend on his stock." More than IOC million Americans, he said, direclly or indirectly are capitalists through their own slock holdings or their interest in pension and insurance funcis and similar investments.

JOURNAL Fair Wednesday, September 8, 1971 10 CENTS Fair today and tonight with increasing cloudiness and wind Thursday. Less llian 10 per cent chance of rain Thursday. tonight 40-45. High Thursday 75 High today 70-75. $80 Million in Grants OTTAWA (AP) The Canadian government has introduced legislation designed to blunt the effect of the new U.S.

import surcharge and warned that the levy may force Canada to reconsider its close industrial and trade ties with the United States. But opposition parties, which agreed to waive other business and debate the new bill immediately, expressed doubts about its adequacy and motive, Trade Minister Jean-Luc Pepin introduced the legislation Tuesday in the House of Commons. It provides $80 million in government grants to firms that face reduced output and unemployment due to the 10 per cent UJ3. surcharge announced by President Nixon on Aug. 15.

He said a government survey showed the U.S. tax could cost Canada between $300 million and $900 million in annual export sales and between 30,000 and 90,000 jobs, depending on how long the surcharge lasts. Under the aid package, grants would be made available to firms that normally export one-fifth of their production to the United States. The subsidies would cover up to two-thirds of the surcharge and enable exporters to keep their U.S. selling prices down.

Finance Minister J. Benson told Commons the subsidies Medina Court-Martial Resumes FT. MCPHERSON, Ga. (AP) An Army prosecutor read to the jury in Capt. Ernest L.

Me. dina's murder trial today a deposition from a South Vietnam, ese interpreter who said he saw bodies in My Lai while he was with "a Spanish-looking" American officer, The deposition, obtained from Sgt. Duong Minh by (he government in a trip to Vietnam before the trial, stated that Minh asked the captain during the day of the My Lai assault: "Why we kill all the people and burn all the hooches?" In the written testimony, Minh said, "He say something like he just carrying out an order." Asked to describe what the captain look like, Minh said in the deposition, "He looked like Spanish to me." Medina is Mexican-American. At the time the deposition was taken, Capt. Mark Kadish a defense attorney, asked the interpreter if he could recognize the captain.

Medina was present during the taking of the deposition in Vietnam. "You don't know Capt. Me- dlna sitting- 'here?" Kadish asked Minh. "I just don't remember. I don't recognize him," Minh replied.

The deposition taken from another South Vietnamese interpreter, Sgt. Nguyen Phu, who knew Medina, corroborated Minli'vwritten testimony. Both men said in their depositions that during the day of the My Lai assault they saw bodies scattered throughout the hamlet, The depositions were the first business of the court as the trial resumed Train-Auto Collision in Chubbuck Kills American Falls Teen-Ager Randall Stanley Edmonds, 17, American Falls, died inSt Anthony Community Hospital at 11:30 p.m. Tuesday of head injuries sustained when his car was struck by a Union Pacific train on a Chubbuck crossing. Three companions were injured in the collision which occurred at a crossing a few hundred feet east of IIMiwav 91 on Chubbuck lioad.

Listed in fair condition wilh cuts and bruises at Si. Anthony Hospital were Daniel J. Orders, 17; Kelvin D. Thorton, 17; and Robah Glasscock, 17 all of American Falls. Searchers Find Body of Second Survival Victim EUGENE, Ore.

(AP) The tody of a second member of an Outward Bound program ex- pedition lias been found in Ihe Three Sisters wilderness area of central Oregon. The body of Lorene Lallhelte, 11, of Sudbury, was discovered Tuesday near the spot where Mrs. Glen llowden, 21, of Fall Creol-, died Thursday. A (hlrd girl, Pain Sullivan, 18, of Seattle, survived. Miss Sullivan told searchers Miss LuHhctte had wandered away to look for help when the threo wore hit by .1 storm -during an expedition concluding, Ilielr course In the Outward Bound program of survival training.

In Bend, tho Deschules County coroner confirmee! llmt Mrs. llowden had dfod of exposure. Chubbuck police said the Edmonds anto was traveling easl on Chubbuck float) about 3:30 p.m., returning from the Eastern Idaho State Fair in Blackfoot, when the mishap occurred. Investigating officers said tho train, a three-engine unit, was moving a( about -18 inpli at the time of the collision. The Edmonds car was knocked about GO feet by (tie collision on Ihe east side of the track.

Police said there was no indication Edmonds, the driver, either saw or heard Ihe Irain before the impact. Investigation is continuing. 5. Import Levy are necessary because PresL dent Nixon's new economic policies threaten a return to pro- teclionism in world trade. Those policies, lie said, jeopardize the whole basis of Canadian industrial policy of the last 25 years- the increasing export of manufactured and processed goods over raw materials.

"The basic question that is raised for consideration," Benson said, "is whether we can continue (o count on access to the U.S. over Ihe longer lerm on mutually acceptable terms, that is, on terms negotiated and agreed between the two governments, or whether we must reconsider our whole industrial and commercial policies in the light of events of the past few weeks," Benson, who noted that about 25 per cent of U.S. exports come to Canada while 85 per cent of Canda's manufactured exports go to the United States, said that in addition to the million subsidy package, "we have given and are continuing to give intensive consideration to a number of other measures." He did not elaborate. The finance minister added the U.S. surcharge's adverse impact on Canadian exports is the most pressing issue before the government, and "will have implications for Ihe longer lerm which may be of even fundamental importance." Agriculture minister II.

A. Olson said the subsidy programs would cover processors of Canadian produce for export, provided they continued paying farmers current rates. Farmers otherwise hit by the U.S. surcharge, he said, would be compensated through the existing Agricultural Siabiliza. (ion Act, which subsidizes farmers when produce prices go below established levels.

Daddy? Herb Clausen sports a racoon skin hat that is drawing lorfng attention from Rascal, a baby racoon at Frontier Town in North Hudson, N.Y. Clausen, a cowboy at the resort area' holds a bottle that Rascal ignores in favor of nuzzling caress' (AP Wirephoto) U.S. Forces Attack In Support of Drive SAIGON (AP) U.S. forces attacked from land, sea and air today in support of a South Vietnamese drive toward the Laotian border south of the demilitarized zone. No significant contact with North Vietnamese soldiers was reported in the third day of the operation by some 10,000 South Vietnamese troops, American artillery and 200 U.S.

helicopters. Some enemy harassing attacks were reported, wounding an undisclosed number of South Vietnamese soldiers. The South Vietnamese reopened three fire bases and established four landing zones to the east and north of Khe Sanh. South Vietnamese officers in the field said there were no plans to reopen the Khe Sanh combat base, which served as the main operations base for the allied drive into Laos last February, The officers also said there were no plans to cross the border into Laos, L(. Col.

Le Trunq Hien, a spokesman for South" Vietnamese headquarters in Saigon, said the forwardmosl government troops were 15 miles from the Laotian border and 10 miles from Khe Sanh at last report. In the heaviest raids in "two weeks, more than a score of U.S. B52 bombers dropped 600 tons of bombs on North Viet-- namese bunker complexes and storage sites encircling Khe Sanh. TwoU.S, 7th Fleet destroyers opened fire with (heir five-inch guns from positions in the Tonkin Gulf off the coast of Vietnam. And U.S.

eight-inch howitzers just brought into Vandegrift combat base on Highway 9 northeast of Khe Sanh Wasted suspected North Vietnamese targets in the rolling foothils and mountains below the DMZ and to the west toward the Laos border. IN HURRICANE EDITH Dangerous Storm Looms Today's Chuckle Wo may never cure' poverty, but with prices anil taxes Ihe way they are, we're sure going to cure wealth. leaving Jenner Behind Motorcyclists roar out of Jenner Tuesday after a weekend of tension during which a cvclisl and tavern owner were hospitalized with gunshot wounds. -We're going to be keeplne a close watch around here for a while," Sonoma County Sheriff Don Slriepeke said after the last of 150 visiting motorcyclists were escorted out of town, (AP Wirepholo) MIAMI, Fla. (AP) Hurricane Edith spun through the Caribbean with steadily growing fury today and the National Hurricane Center said she- On The Inside Four Sections 2-1 Pages Buzz ol Ihe Burg A-6 Classified ads 5-6-7 Comics 1-2 Editorials A-6 Entertainment C-2 Idaho news B-I Legals C-2 Markets A-' Obituaries A-2 Sports 3-4 Social items B.J TV log, fealures Weather would become a dangerous storm before reaching a landfall.

"Edith will be a major storm, maybe Ihe storm of the year," said Dr. Robert H. Simpson, director of the center. "She has a classical eye and is intensifying. She is going to pose a real threat to someone With Edith, Tropical Storm Fern and a deepening depression all on the hurricane hunter's maps, Simpson said the western Caribbean, the entire Cult of Mexico, and the Bahamas area of the Atlantic had become "One great big mammoth circulating system." "It is a very unusual situation," he said.

"The- entire- area Is ono great big cyclonic storm, to to speak," Center about 340 miles south- southeast at Kingston, Jamaica, Edith was movine wesl-northwcst" at aloul 15 miles an hour. She was expected to slow tier forward speed and turn more to northwest in the next 12 to 24 hours Highest winds of 75 miles an hour whipped around the eye. Fern, churning the Gulf with winds of 55 to 60 miles an hour, will grow in size and strength before hitting a coastline. Simpson said, central America, rather than the U.S. coast, appeared to bt- her eventual target.

Fern Is centered about 2GO miles east of Brownsville, Tex. A depression in tho Atlantic north of the lower Bahamas was showing signs of and could reach tropical storm strenglh in 24 to 36 hours, the center said,.