Carrol Daily Times Herald from Carroll, Iowa on April 27, 1974 · Page 1
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Carrol Daily Times Herald from Carroll, Iowa · Page 1

Carroll, Iowa
Issue Date:
Saturday, April 27, 1974
Page 1
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lOVSQ a place to grow Carroll Daily Times Herald Vol. 105 —No. 100 Return Postage Guaranteed Carroll, Iowa, Saturday, April 27, 1974 — Six Pages Delivered by Carrior Boy Each Evening for 60c Per Week Copy Neu: Only a Few BiUs Left, But May Be Real Handful DE6 MOINES, Iowa (AP) — The legislature has only a handful of major bills left as it goes into what leaders hope is the final week of the 1974 session Monday. But those few bills may be a real handful. "The Senate only has two of some substance other than appropriations." said Lt. Gov. Art Neu, the Senate's presiding officer. But those are the bills to rewrite Iowa's credit laws, usually called UCCC for the Unified Consumers Credit Code, and a bill to set a state land use policy. And Neu said the House still has the credit bill, the bill to create an energy council, the state coal mine research project, redefining personal property tax and revamping the state alcoholism program. The credit bill is the only major measure not already acted on by at least one house. The final .draft of the bill is expected to be approved by the Senate Commerce Committee Monday with the Senate debating the measure Tuesday or Wednesday. That measure is designed to raise the maximum interest rate on charge accounts from the present 9 per cent and to place additional consumer protection in the credit law. The Senate spent several days debating the original credit and then sent it back to committee to be redrafted when debate reached an impasse. The land use policy bill, passed by the House some time ago, may find rougher going in the Senate. That bill would expand the department of soil conservation into a department of soil conservation and land use and require the new commission to draft a land use policy. "The problem with land use is .they (the senators) are anxious to get out," Neu said. "Most of the people on the land use study are in the House. The feeling here (in the Sentate) is we haven't had time to look at it closely.'-' But Neu promised the Senate would take up the land use measure "and just see what happens." The lieutenant governor said he hopes the legislature Record Slump for CM DETROIT (AP) — General Motors blames inflation and a slump in car sales in the wake of the energy crisis for the automaker's worst first-quarter earnings performance since before the Korean Conflict. The worldwide auto giant said Friday its January-March profits totaled $120 million, an 85 per cent drop from the same period in 1973. Plagued by a sales slump since December, GM reported revenues were down 27 per cent to $6.94 billion. Sales at GM, which is dependent on large car lines, were off 46 per cent while U.S. auto sales averaged a 27 per cent decline during the period. GM's per share earnings limped in at 41 cents, worst performance since 1948. But the company's top two executives forecast the firm would make a substantial comeback in the not-to-distant future. ''As the economy strengthens in the months ahead and consumer confidence returns so will car buyers," said Chairman Richard C. Gerstenberg and President Edward N. Cole. "Welcome strengthening of the market came too late to improve first quarter results." GM's quarterly earnings represented the second consecutive drop from year-earlier levels, coming after the firm posted record sales and profits for the first nine months of 1973. GM's latest earnings compare to $817 million, or $2.84 a share, in the first quarter of 1973. During last year's final quarter, GM reported a 22 per cent decline in profits. The automaker's 1973 profits of $2.4 billion were the second largest of any U.S. corporation, trailing only Exxon Corp. Tax Relief Package Will Be Considered Will Wait - Disbelieving that his daughter Patricia has joined the Simbionese Liberation Army, the San Francisco terrorist group that kidnapped her, newspaper publisher Randolph Hearst said he will await the results of the FBI's investigation before making any judgments. DES MOINES, Iowa (AP)—A compromise tax-relief package—including breaks in the sales tax, income tax and inheritance tax—will be considered by the legislature next week. The package was approved by a legislative conference committee Friday. But some members of the committee said they were concerned that the package could leave the state treasury only $9 million in the black by 1977. The measure, estimated to cost the state up to $42.6 million in lost revenue a year, now must be approved by both the House and Senate. The package would include exempting food, prescription drugs, artificial limbs, prescription orthopedic devices and diabetic supplies such as insulin from the 3 per cent state sales tax. It would double the current standard deduction on the state income tax from the current 5 per cent of income with a maximum of $250 to 10 per cent of income with a maximum of $500. And it would raise the state inheritance tax exemption for a widow or widower from $40,000 to $80,000. The package would also insert the joint tenancy concept into the inheritance tax which would presume that both the husband and wife contributed equally into the estate—unless the survivor could establish that he contributed more than half. Only one of the 10 members of the committee—Sen. Norman Rodgers, D-Adel—voted against the compromise. The sales tax exemption for food and drugs was a recommendation by Gov. Robert Ray. The Senate passed the measure much the way the governor recommended after adopting a narrow definition of food—not exempting such items as cookies, candy and soft drinks from the tax. The House expanded the definition of food to allow the exemption to almost anything edible sold in a grocery store, added orthopedic devices and diabetic supplies, home heating fuel and goods and services purchased by non-profit hospitals. Terrorist Nuclear Danger Pointed Out in Report by AEC WASHINGTON (AP) — "The potential harm to the public from the explosion of an illicitly made nuclear weapon is greater than that from any plausible nuclear power plant accident," an Atomic Energy Commission report says. The report, which discusses the possibility of terrorists stealing nuclear materials to make their own atomic bombs, was prepared by AEC official Dr. David M. Rosenbaum and four outside consultants. It was made public Friday by Sen. Abraham Ribicoff, D- Conn. Its authors said they believe present methods for protecting facilities and transport of nuclear materials is not sufficient. The AEC said it is "taking a hard look at the study to determine what additional measures should be taken to further strengthen the requirements to safeguard nuclear materials from theft." The report said that acquiring the nuclear material is the only remaining obstacle facing those who want such a weapon because there is "widespread and increasing dissemination of precise and accurate instructions on how to make an atomic bomb in your basement." The study also said the kid- naping of newspaper heiress Patricia Hearst, as claimed by the Symbionese Liberation Army, was no isolated incident. "If not firmly and compete n.tly met, these kidnapings may lead to a rise of urban terrorist groups of a sort unprecedented in our history," the report said. "These groups are likely to have available to them the sort of technical knowledge needed to use the now widely disseminated instructions for processing fissionable materials and for building a nuclear weapon. "They are also liable to be able to carry out reasonably sophisticated attacks on installations and transportation," the study said. The authors called for a substantial budgetary increase for safeguarding nuclear material. "It seems to us that the present system of protecting facilities and transportation which handle special nuclear materials is inadequate," they said. will be able to adjourn for the session by mid-week, but the time needed to debate the credit bill may prevent that. Most legislators don't want to return home to face local merchants without making an attempt to raise the current maximum interest rates. Most merchants are charging 18 per cent until last fall when the Iowa Supreme Court ruled that charge accounts fall under the state usury law and 9 per cent is the maximum that can be charged. The merchants complain that with the prime interest rate above 10 per cent, they can not afford to charge only 9 per cent for credit. The commerce committee is expected to propose a maximum of 15 per cent on closed end —one shot —credit accounts and 18 per cent for the first $500 on revolving—credit card— i accounts and 15 per cent over 15500. Neu predicted Gov. Robert Ray will receive most of the "major" priorities he asked the legislature for this session. "Some of the little ones won't get there," Neu said. "You always would like to get more done by the end of the session, but it never seems to work out that way," he said. Release Political Prisoners LISBON, Portugal (AP) — Portugal's new military government began emptying jails of political prisoners today. The junta announced that 43 prisoners were freed from Pi- niche Military Prison and 79 others were released at Caixas Fortress in the outskirts of Lisbon. More than 30 political police at the directorate general of security surrendered to the military in groups of two or three. About 200 to 400 police were believed to be hiding at the directorate general. Army and navy troops outside the building ordered the police against the walls for searches, and instructed some of them to drop their pants. Three of the police were beaten by a crowd outside the Caixas Fortress on Friday and troops at the spot fired in the air to hold back the crowd. Informed sources said Gen. Antonio de Spinola and his six- man junta ordered a search for more than 20 officials of • the old regime. At noon Saturday scores of demonstrations in support of the junta took place in Lisbon and other Portuguese cities. Resigns City Job at Iowa Falls IOWA FALLS, Iowa (AP)— Iowa Falls City Manager Peter Cotton is resigning to take a similar post in Minnesota. Cotton submitted his resignation to the city council Friday, effective June 24. He was an assistant city manager in Ames before becoming city manager of Iowa Falls in September 1971. First Place Trophy — Mrs. Paul Loeschen's special education class won a first place trophy during their first entry in a track event. From left, front row are the participants Teresa Huge Oil Profits Are Cited WASHINGTON (AP) - Oil companies are making a profit of $3.73 per barrel on some Arab oil that costs 10 cents to produce, says new energy chief John C. Sawhill. As U.S. oil companies continued to report huge first-quarter profit increases, Sawhill told newsmen Friday that a large portion came from producing foreign oil — including oil the Arabs withheld from the United States during their embargo. Company profits on some Saudi Arabian oil soared in one year from 79 cents to $3.73 per barrel, Sawhill said. Although government price controls supposedly limit petroleum price increases to those justified by increased costs, there appears to be no legal barrier to these increased profits. .The increase, if allowed to flow through unchecked into the U.S. market, could cost American consumers some $2.7 billion a year. Sawhill said there was "no economic justification" for the huge profit jump on so-called "equity oil," which amounts to 14 per cent of the total oil used in the United States. But he said it may be justified if the profits are reinvested to increase domestic oil production. Meanwhile, the government reported a trade deficit in March for the first time in nine months and blamed the development on the spiraling cost of foreign oil. Reports of huge oil company profits continued Friday. Area Forecast Cloudy with a chance of showers or thunderstorms, some possibly heavy, Saturday night, lows around 60. Mostly cloudy and a little cooler Sunday, highs in upper 70s. Rainfall chances 50 per cent Saturday night. Millard, Tracy Rich, Kevin White and Sean Monahan, second row, Bruce Nobiling, Ann Schoeppner, Daryl Hoffmann, in back, Tom Wiebers, Mike Leiting -Staff Photo and Bill Fasbender. The youngsters competed with trainable classes from five other schools at Jefferson. Individual winners received ribbons. Largest Robbery BLESSINGTON, Ireland (AP) — A gang of gunmen led 'by a young woman raided the country home of a gold mining millionaire Friday night and stole 16 masterpieces worth an estimated $20.4 million. It apparently was the world's largest robbery. The value of the art works was given by James White, director of Dublin's National Gallery, where the paintings often were on exhibit. Police, however, would not comment on the value of the paintings owned by Sir . Alfred Beit. Beit's wife, Clementine, told newsmen one'of the gunmen dragged her out of the mansion in this village south of Dublin, kicked her and flung her on the stone stairs, shouting: "We'll be back for you later." Irish police said the woman, speaking with a French accent, knocked at the door to Beit's 18th century home, and when a young servant opened the door three armed men pushed inside. Beit," 71, and his wife were listening to records in the drawing room. Sets New Talks WASHINGTON (AP) — Secretary of State Henry A. Kissinger heads into a new round of nuclear weapon. 0 and Middle East negotiations promising he will be guided by America's self-interest—and not the impeachment problems of President Nixon. At the same time, he has acknowledged that if the President's authority is undercut at home "over a period of time it is bound to affect the conduct or the ability to conduct foreign policy." Kissinger leaves Sunday morning for Geneva and conferences with Soviet Foreign Minister Andrei A. Gromyko designed to narrow differences between the two powers to the point where the United States can make a new proposal for a treaty further limiting offensive nuclear weapons. Hunt to Continue SAN "FRANCISCO (AP) — Mayor Joseph Alioto, saying the city's streets "must be made safe from these mad murderers," has pledged to keep the Zebra manhunt going despite an adverse court ruling. "It must be made plain that this is no signal for any letup in the intensive manhunt in progress," Alioto said Friday night. "Twelve murders and six armed assaults require no less than this." Police say one or more assailants are responsible for the seemingly unprovoked attacks on whites in the city's streets. Handed out Cash WASHINGTON (AP) — H.R. Haldeman, while serving as White House chief of staff, kept a stack of cash in his safe to make gifts to White House employes, according to a former aide. The disclosure came in testimony by Lawrence M. Higby given last December and unsealed Friday by U.S. District Judge Charles R. Richey. DOT Bill Passed by House., Goes to Ray Aimed at Shortage — Heavy artillery aimed at the energy shortage, a tower weighing more than 600 tons goes up at a new hydrofluoric alkylation unit at Texas City, Tex. The installation upgrades gasoline blending stocks as a Marathon Oil Co. refinery. DES MOINES, Iowa (AP)The Iowa House has passed 5939 a bill to create a state department of transportation— thus sending the bill on its way to be signed by Gov. Robert Ray. The final version, worked out in a conference committee, omits the controversial rider allowing 65-foot twin-trailer trucks on Iowa highways, which was opposed by Ray. A legislative conference committee Friday approved a compromise tax relief package which includes breaks in the sales tax, income tax and inheritance tax. Some members of the House have expressed concern that the package could leave the state treasury only $9 million in the black three years from now. State employes under the merit system would be given a 7.5 per cent pay raise under a compromise bill passed 42-0 by the Senate. The measure, the product of a legislative conference committee, also establishes a disability plan for those 13,000 state employes. The bill was sent to the House. The Senate passed 46-0 a bill to rewrite Iowa obscenity laws to protect minors. The measure also contains as new law to prohibit lascivious acts with children under the age of 16. The bill has been returned to the House for action on the amendments. A bill passed 44-0 in the Senate and sent the House would require pipeline companies to pay an annual rental charge when they exercise the power of eminent domain. The annual charge would be in lieu of assessing monetary damages when the eminent domain was exercised...and would be based on the number of feet of pipeline constructed on the property. A legislative conference committee has decided that renters should not be paid interest on the security deposits required by many landlords. Earlier this session, the Sen- ate.passed a bill giving renters a legal claim on the deposits, plus five per cent interest, un- less the landlord could establish the dwelling had been damaged. The House deleted the provision for interest payments, sending the bill to the conference committee. Ten of Ray's appointments to various state agencies were approved by the Senate without a dissenting vote. One of the appointees was Dr. Samuel Tuthill, Iowa City, to the Solid Waste Disposal Commission. Tuthill is one of the state's key energy advisors.

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