Humidity up^/ tomorrow| ^ TUESDA Y’S D ixon E vening rn ELEGRAPH Dial 284-2222 12HtYaar Numbtr 91 REFLECTIONS— From 1901 to 1955, three representatives and a senator were elected to the General Assembly from the 35th Legislative District which included Lee, Whiteside and DeKalb Counties. During those years there were a total of 51 legislative districts. State voters in 1954, adopted a constitutional amendment which called for legislative reapportionment and in 1955, the General Assembly created 58 senate districts and 59 representative districts. The old 35th District became the 35th Senate District and Lee County was placed in the 40th Representative District with these other counties: Bureau, Henry and Stark. The amendment called for redistricting after the 1960 census and the failure to accomplish this by the Legislature and later by a commission appointed by Gov. Otto Kerner, resulted in the 1964 at-large election for membership in the Illinois House of Representatives. The legislative reapportionment which did occur in 1965 erased all lines of the old 35th Legislative District. Lee County landed in the 36th Senate District which in- Jake# Attwnt mw. eluded the other counties of Bureau, Henry and the north part of La Salle, and the 35th House District included Lee, Ogle JoDaviess, Stephenson and the north part of Winnebago Counties. The 1971 reapportionment which again makes the boundaries the same for senate and house districts, resurrects memories of the old 35th Legislative District. The new 37th District includes the counties of Lee and Bureau; the eastern part of Whiteside; the southeastern part of Henry; the two easternmost townships in Ogle, and the western part of DeKalb. Principal cities in the new district are Dixon, Sterling- Rock Falls, DeKalb and Kewanee. The item of most political interest in the new district is that if has two incumbent senators, but only one can be elected to represent the district. Near the eastern terminus of the 37th District, in DeKalb, resides Sen. Dennis Collins who was elected representative in 1932 and served in that position until 1944, when he was elected senator. His constituents were (See TAKE IT on page 6) I i On the inside of today's paper The Nixon visit to Springfield for Republican Day at the state fair will cause the GOP to make the event less political. See page 7. Good news for duck hunters. Prospects are excellent for a good season. See page 5. Other features m I I Local news Sports page 6 pages Editorials Society news page 2 page 4 mm MOTHER AND SON DOING WELL— Mirta Fontora, 10 years old, rests with her newborn 6-pound, 8-ounce son, Ramon Marcello, after she gave birth in the Pilar City Hospital near Buenos Aires, Argentina. Doctors reported both are doing fine after the Caesarean delivery. (AP Wirephoto) Serving the Heart of the Rock River Valley for More Than a Century DIXON, ILLINOIS August 17, 1971 14 PAGES TtttniöCit'y PRICE TEN CENTS Nixon trying to sell tax cuts Justice at retreat Supreme Court Justice William O. Douglas and his wife, Cathy, are vacationing at their home in the high timber country at Goose Prairie in the state of Washington’s Cascade Mountains. (AP Wirephoto) Typhoon leaves 90 dead in Hong Kong HONG KONG (AP) — Typhoon Rose killed more than 90 persons in Hong Kong and surrounding waters today when it hit the British colony head-on with 130-mile an hour winds and 12 inches of rain. The storm capsized a ferry, destroyed some 40 fishing boats, grounded a U.S. Navy supply ship and 25 other ocean vessels and caused floods and landslides. Between 75 and 80 crewmen drowned when the Hong Kong- Macao ferry Fatshan capsized. Four survivors said the rest of the crew was trapped inside the hull. A family of five drowned aboard a fishing junk, and nine others were crushed or swept to their death ashore by landslides or flood waters that destroyed their homes. More than 200 persons were injured and 2,500 made homeless. It was the worst typhoon to hit Hong Kong since 1962, when Typhoon Wanda took more than 250 lives. The Fatshan had discharged its passengers after a run from Macao 24 hours before. Survivors said the ship broke from its moorings during the storm, and the captain tried to shelter in the lee of outlying Lantao Is- land, but the 130 mph winds turned it over. The 8,000-ton U.S. Navy ship Regulus was driven aground on Kaui Chai, another outlying island, and the Navy said one of her 270 crewmen got some broken ribs and five others had minor injuries. WASHINGTON (AP) - President Nixon today summoned key congressional figures to sell them on the tax-cut portion of his new economic policy—a policy that already has disgruntled some labor leaders and given the stock market its best day ever. Among those asked to the White House was Chairman Wilbur D. Mills of the House Ways and Means Committee, who Monday called the President’s new economic program “absolutely necessary” and scheduled crash hearings on it for Sept. 8, the day Congress returns from vacation. Monday 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 year, 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 anticonsumer policies.” —Foreign industrialists that sell in the United States expressed displeasure, with some calling for retaliation against U.S. goods. —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 Pat- man 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. Connally said the administration expects to make exceptions for the wage-price freeze only in event of “catastrophic” hardship. He said a severe balance-of- payments deficit, on top of a sluggish economy and unsatisfactory unemployment and inflation, prompted Nixon’s new policy. Hours later, the government announced the deficit climbed to its worst level ever 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. In another bit of gloomy economy news, the Commerce Department said output of the nation’s factories slipped 0.8 per cent in July, worst since the 1.1-per-cent drop during last November’s General Motors strike. Rock Island won't collect personal property taxes West Europe fears U.S.-Japan trade war ROCK ISLAND, 111. (AP) — Rock Island County will collect no personal property taxes for 1971 despite a ruling of the Illinois Supreme Court reinstating the controversial levy. The county Board of Supervisors took a stand against the tax today by refusing to appro- priate $27,000 needed to make a personal property assessment. “Taxpayers do not seem to have any champion nowadays,” Supervisor Robert HubBaVd said in support of the resolution adopted 24-10. “It seems the county board should take a position like this and see what happens.” LONDON (AP) — There was a growing fear among West Europeans today that they might become the victims of a trade and monetary struggle between a prosperous Japan and the United States, struggling to pull out of a recession. Government officials and economists foresaw a real danger of monetary chaos and a trade war arising from President Nixon’s efforts to slow the flood of Japanese goods into the United States and Tokyo’s decision to fight his policies. West European governments No time of death in Danhaus autopsy An autopsy report on Deborah Danhaus was received late Monday afternoon by Lee County Coroner Robert Preston. The report, prepared by Dr. Cesare Manetti, a Rockford pathologist, contains little new information and does not state exact time of death. The autopsy report indicates these new facts: —No trace of alcohol was found in her bloodstream; —indications were found Miss Danhaus ate a meal recently before her death ; —her laryngeal bone was fractured indicating she might have been strangled by a strong person. A Lee County Coroner’s inquest held Aug. 8 determined cause of death to be from “asphyxia due to strangulation with homicidal intent.” The body of the attractive 18-year-old Miss Danhaus was found Aug. 7 at the edge of rural Morgan Road, two miles west of Amboy. She had been missing five days be fore she was found. So far, Lee County Sheriff John Quest has conducted his investigation into the girl’s background in order to find a possible motive for the killing. Sheriff Quest was unavailable for comment today. Coroner Preston said today he “kind of expects” a later report which will determine exact time of death, but said he did not know for sure if such a report is forthcoming. The report received Monday “looks like it’s meant to be complete,” Preston added. Miss Danhaus lived with her parents, Mr. and Mrs. George Danhaus, at 218 S. Mason Ave., Amboy. UNITED THROUGH FAMILY BIBLE—James Hayes of Redwood City, Calif., is joined by his wife, left, and sister, Mrs. Arthur Nelson of Aberdeen, Wash., in looking over a family Bible that led to his brothers and sisters for the first time in his life. Mrs. Nelson had spent years trying to find her brother listed in the Bible and finally located him through the aid of a newspaper columnist and the F BI. Hayes was placed for adoption at three months old. (AP Wirephoto) sought to coordinate their policies in the face of the growing threat . The European Common Market’s monetary committee met in Brussels to prepare for a full gathering Thursday of the community’s foreign and finance ministers. The British government was urgently trying to arrange talks with European Common Market leaders to align its policies with London. Foreign exchanges around the world except in Japan remained tightly shut. The London and Zurich gold markets cautiously opened their doors to business for the first time since Friday. The price of gold was virtually unchanged from Friday and dealers reported trading was practically non existent because of general uncertainty. Governments and market operators studied implications of the American and Japanese monetary and trade conflict. European officials see in a Japanese-U.S. conflict the threat of monetary chaos and a trade war that could drag in many other countries. The Nixon administration severed the dollar’s link with gold Sunday in a move to persuade Japan and some West European countries to let their money, which the United States considers undervalued in relation to the dollar, float up in value on the open market. This would make more expensive the exports from those countries flooding into the United States. A 10 per cent surcharge on import duties also makes foreign imported goods more expensive in the United States. Noboru Takeshita, government spokesman and chief Cabinet secretary, servced notice Monday that Japan will fight Nixon’s policies. He said Japan has no intention of increasing the value of the yen in relation to the dollar as Nixon wants. The Bank of Japan was ordered to buy up whatever dollars were offered on the Tokyo market at the normal exchange rate. If the yen maintains its present position with the dollar while some European currencies, notably the West German mark, the Swiss franc, the Dutch guilder and possibly the French franc, rise in value against the dollar, the yen will be effect be deavlued in West Germany, Holland Switzerland and France. Japan’s already cheap exports to Europe would become even cheaper. Western Europe could not permit such a situation to continue without retaliation. Quieter on Wall Street NEW YORK (AP) - The stock market quieted down today after Monday’s explosive rally and record trading in reaction to President Nixon’s moves to bolster the economy. The Dow Jones average of 30 industrials dipped 0.08 of a point to 888.87 in the first half- hour of trading. It had soared 32.93 points Monday in its biggest one-day advance. Trading continued heavy but was behind the record pace that shot the total to 31.73 million shares Monday. Analysts said profit takers were actively taking advantage of big gains made by many stocks Monday. Roars of delight rose Monday periodically from the trading floor as prices zoomed in the hectic trading. Questions and Answers on the wage-price w $ By STERLING F. GREEN Associated Press Writer WASHINGTON (AP) - Despite President Nixon’s wage- price freeze, importers will be allowed to pass on to American consumers the cost of the new 10 -per-cent duty on foreign-produced goods. The Treasury issued the ruling late Monday, after being bombarded with queries from importers who feared they would be caught in a squeeze between the price ceiling and the increased tax surcharge. The flood of inquiries touched off by Nixon’s mammoth economic package continues unabated at the Treasury and Labor departments and at the Office of Emergency Pre- pa redness. The following questions and answers on the freeze are based on official texts and statements and the replies of agency spokesmen concerned. Q. How can a consumer check on whether a merchant is complying with the freeze? A. The presidential order requires that all persons in the business of selling or providing goods or services must “maintain for public inspection a record of the highest prices or rents charged for such or similar commodities during the 30- day period ending Aug. 14, 1971.” Q. Are dividend payments and interest charges also frozen to previous levels? Q gins' A. Nixon has asked the nation’s bankers to hold the line on interest. Lacking authority to control dividends, he is asking corporations voluntarily not to raise their dividend payments. What about profit mar• 9 Not covered. The ban on price increases is expected to hold profits down. Q. What is the ceiling level? A. Until Nov. 12, no price or wage may exceed the level that prevailed in the month ended Aug. 14, 1971. A lower price may be charged, but not a higher. Q. Does the freeze apply to wages paid and services provided by state and local gov ernments as well as private businesses? A. Yes. Texas and some other states have approved pay increases for state government workers to take effect Sept. 1, but the presidential order calls for postponement of the increase until freeze ends. Q. Can state universities raise tuitions to take effect when school starts in September? Can state public utility commissions grant rate increases? A. The rates can be raised, but the increases cannot take effect until expiration of the freeze on Nov. 12, 1971. Q. What about school teachers who have signed pay contracts to take effect with the openin f school in September? A. The official answer, at this moment, is that the pay increase must be postponed. But a Treasury statement is reported in the works and may modify or clarify the government’s position. Q. Will Nixon’s proposed repeal of the 7-per-cent excise tax bring a rollback in the price of new cars? A. Yes, but only when Congress actually enacts the repeal legislation. Nixon said he will insist that the excise saving,« averaging about $200 per car, be passed on to consumers. 1 Q. If a scheduled wage increase is deferred because of the freeze, can the workers get the increase retroactively when the freeze ends? A. No ruling has been made. There is no language in the President’s order or White House explanatory statements providing for retroactive payment. Q. Oregon has a cigarette tax scheduled to take effect Sept. 9. This would raise the price of cigarettes. Is such a tax increase blocked by the freeze? A. The presidential order does not mention tax increases, and some officials doubt that a federal order could legally interfere with a state tax action. Q What about the 1972 model auto prices, announced by most of the companies but not yet in effect? freeze A. Unless the increased prices were in effect on Aug. 14 they must wait until the freeze ends. Q. Wliat happens when the 90- day freeze expires? A. Secretary Connally says: “I don’t know.” The followup procedure is to be worked out by the new cabinet-level Cost of Living Council. Nixon has directed its members to work with industry and labor leaders “to set up a proper mechanism for achieving continued price and wage stability.” Q. Does that mean some kind of wage-price guidelines, or a wage-price review board, or what? A. Officials so far have not even given any hints. I I !
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