Lubbock Avalanche-Journal from Lubbock, Texas on April 3, 1975 · Page 34
Get access to this page with a Free Trial
Click to view larger version
April 3, 1975

Lubbock Avalanche-Journal from Lubbock, Texas · Page 34

Publication:
Location:
Lubbock, Texas
Issue Date:
Thursday, April 3, 1975
Page:
Page 34
Cancel
Start Free Trial

Page 34 article text (OCR)

4A—LUBBQCK AVALANCHE-JOURNAl—Thursday Evening.. April 3. 1975 Somalian Kidnap Linked To Indian Ocean Routes TEENS OF THE MONTH—Recently chosen the top teens at their schools were, from left to right, David Arterburn of Coronado High School, son of Mr. and Mrs, Junior Arter- bum of 3819 29th St.; Betty Boyce of Lub- 'boek High School, daughter of Mr. and Mrs. Neil Boyce of 1915 16th St.; Richard Ayers pf Luhbock High School, son of Mr. and Mrs. Henry Ayers of 4702 4th St.; Lynn Genereaux of Coronado High School, daughter of Mr. and Mrs, Robert Genereaux of 5410 16th Place; Olan Franall of Monterey High School, son of Mrs. Gypsie Franall of SOOT 42nd St.; and Donna Goldstucker of Monterey High School, daughter of Mr. and Mrs. Edwin Goldstucker of 2802 63rd St. By PHIL NEWSOSt UP! Foreign News Anulywt Ttiie kidnaping of the French ambassador to Somalia brings into focus another facet of the intensifying struggle for control ot the Indian ocean and the oil supply routes. Coincidental but linked with the overall picture was Egyptian President Anwar Sadat's week-end announcement that the Suez Canal will go back into operation early in June, shortening the trip from the Persian Gulf to oil-hungry Europe by some 9,000 miles. Terrorists seized Ambassador Jean Gueury as he left church in the Somalian capital of Mogadishu. But while the kidnaping occurred In Somalia its background and its cause lay in the neighboring French African possession of Mars and Issas, formerly known as French Somaliland. And as ships renew their passage through the Suez cana both Somalia and the Territory of Afars and Issas take on new significance. Both are keys to tbo entrance a the Red Sea and therefore to the canal itself. Djibouti is the port of Afars and Issas, just across the narrow Bob-el-Mandeb straits from South Yemen. From Djibouti. French missile ships and long-range antisubmarine aircraft maintain a constant patrol of the straits and far oul into the Indian ocean. Farther along the coast toward the African horn lies the Somalian port of Berbera where the Russians are reported expanding and modernizing the military airport in return BIO BITE SACRAMENTO (UP1) About $275 million worth o! pesticides we_re reported sold in California in the one-year period ending last June 30, the California Department of Food and Agriculture says. or Soviet use of staging, maintenance and refueling fa-' slllties. Both Somalia and South Yemen with its port of Aden long have been objects of special Soviet attention. When the western powers refused Somalia's bid for $10 million to $15 million worth ol arms credits in 1963, the Soviets came forward with $30 million in credits with no strings attached. Today's Somalian Soviet- trained army of 17,000 men has several hundred armored vehicles, SAM-3 rockets and an airforce of 34 Russian-built MIGs. Soviet military advisers and technicians in Somalia are estimated at 2,500. South Yemen also has severa hundred military advisers some MIGs and other military equipment. Cubans are said to be in command of a party militia and East Germans o he secret police. As to 1 the tangled politics of northeast Africa, socialist So-l malia has territorial claims against both neighboring Eghi- opia and Kenya. In the Territory of the Afars and Issas, it has tribal links with the Issas. The nomadic Afars have .their tribal ties with Ethiopia, In general it may be said the Afars have favored continued ties with France and the Issas nave sought independence, reportedly with encouragement from Somalia. The kidnapers of Ambassador Gueury identified themselves with an outfit calling itself the Front for the Liberation o£ the French Somali Coast." FESTIVAL of GOSPEL ^ . MUSIC ~ APRIL 19 ALL NEW RCA PICTURE TUBE M*»t Price Includes • Service call • Fr«« pickup & delivery • Set Ihoroughly checked and adjusted Vtfendel's Individual Pension Could Have Great Economy Impact By I.eROY TOPE NEW YORK (UPI) — A new law, still little known outside pension and insurance circles, could have a tremendous long range impact on the American economy. It is the Individual Retirement Account section of the 1974 Pension Act. As many as 40 million Americans may benefit from it. In essence, the IRA will permit people to place each year 15 per cent of their income or 51.500, whichever is less, in an- investment account for retirement and deduct that sum from taxable income. But pension and insurance experts say the IRA is a rather subtle thing to put in effect even though the language of the laft' is quite clear. Most people wilt need expert help in setting up c an individual retirement account. 7.. Can't Spare Cash And the estimate that 40 million people are eligible to set up IRA accounts is tempered by the fact, at least in this period of recession and 'high cost of living, a very large proportion of those eligible simply will not be able to spare the cash to take advantage of 'the provision. This may force Vongress to tinker with the law some, more just as Congress eventually had to liberalize the original Keogh retirement plan for self-employed professional and business persons. To the accountant and the pension expert, the key fact about the IRA section is that it is the first method approved by Congress for the individual not covered by some conventional pension program to put away retirement funds from pre-tax dollars. Individual Account There also is a provision in the act permitting people who Jose their jobs and have to cash in past contributions to company pension plans to make tax- free lump sum investments of these funds in an individual retirement account. Barren's financial newsmagazine said many small businesses will seek to persuade their employees to create IRA accounts and help them do so because that will eliminate for these companies the many burdensome aspects of the new law for company pension plans, the tight vesting procedures, the voluminous reporting requirements, some of the lethal liabilities and the legal restrictions on portfolio management. IRA also sidesteps the loom- Ing controversy over making pensions portable —allowing the employe to take his pension credits with him when he changes employers. This usually can be accomplished only by having a national union assume the principal responsibility for the pension fund, but that won' help the worker who changes occupations when he changes employers. Not Yet Known The IRA is portable by nature. It is set up by and for the individual and he alone controls it even if his employer does make some contributions Just how an employer would go about making contributions i he should decide it is in his interest to do so is one puzzle the new law has created for pension experts. As one example of how IRA works, take the case of a top executive who loses his job and has to cash in the $100,000 he fcas paid into the company pension plan. Before IRA was enacted, the executive wpulc have had to pay 816,000 in income tax on the money he gal ba.ck from the pension fund But now he can reinvest the whole sum in his inclividua retirement account tax free. Far more important though wijl be the impact of IRA on those ordinary wage earners who are successful enough t put a few hundred dollars cacl yaar into an IRA. Perhaps John Jones can save $1,500 a yea fojp a personal retirement fund Before IRA was enacted. h< had to j>ay at least 25. per can of the 51,500 in income taxe flFSt. In 15 years he would hav been able to accumulate only ?O25 a year net of taxes or total of $16,875. Now he can accumulate the' full 51,500 car net of taxes or $22,500 for is retirement fund in 15 years. Of course a pension from an IRA account is over and above vhatever one gets from Social "ecurity. Experts pointed out there are jther inherent tax shelters in he IKA on dividends and nterest on some IRA funds as :ompared with a savings plan ;et up in the past. Husband and wife can have eparate IRA's, so conceivably, the couple could set aside 53,000 a year tax-free towards retirement. The one big restriction in the aw is that • you cannot be a )articipant in a company, a union or any other qualified jension plan in a year when r'ou make contributions. This eaves room, however, for jeing able to draw a pension rom your IRA and some other pension plan (in addition to social Security) provided con- ributions have not been made o both plans in the same year. Many Readjustments That the actual creation and administration of IRA's will occasion a lot of readjustments and problems is clear. The Institute of Life Insurance recently held a seminar in New York to discuss the problems raised for life insurance people, Indicative of how formidable his impact could be is a series of comments by W. Scane 3owler, chairman of Pioneer Vestem Corp., an insurance financial holding company. Bowler said it is largely up to insurance companies to help ordinary folk find ways to inance individual retirement accounts. He said many people who most need IRA are in the $8,000 o 515,000 a year income jrackets —probably 18 million of the 40 million eligibles. He said very few of these people can, under present conditions, 'ind savings to put into an IRA unless they get some kind of lelp from insurance men in redirecting their income. This will have to come about argely Bowler said, by hew thinking on the part of life nsurance people about the relative merits for the ordinary wage-earner supported family of whole or ordinary life nsurance and term insurance. 3y buying cheaper term nsuvance, Bowler said, many people will then have a little jre-tax income to put into an [RA fund. Bowler also proposed that life nsurance people develop neu kinds of insurance annuities or combinations of annuities anc mutual funds into which the person who establishes an IRA best invest the pre-tax dollars the new law allows him to put aside. Odessa College Dean Resigns ODESSA (Special)—Odessa College's Dean of Development and Occupational programs submitted his resignation to Odessa College trustees Tuesday night. Lewis B. Riley, 32. who came to OC in August, 1971, gave the aoard members no reason for his resignation. Riley, however, said Ire may be going to Amarillo College next year. Formerly, he was administrative assistant to the president of Amarillo College. A replacement for Riley was not named by the board. Concert Association Given Inactive Status A-J Correst>ondent SNYDER — The Scurry Con uert Association board of directors has voted to place the association on an inactive status, Dr. Ben Brock, president, has announced. Lagging attendance, they said, had made it increasingly difficult tp plan a series of community-wide interest and enjoyment. The officers and charter will remain intact so the program might be revived if there is sufficient demand in the future. JCPenney Save 46% on this 10 speed bike. Now 49.88 Sold for 89.99 in Sept. Men's 27" 10 speed racer. Has many professional style racing features, including center-pull brakes with dual levers for fast, even stops. limited to in stock items only. Not exactly as illustrated (20% off all our western shirts. Sale 3 60 to 11 99 Reg. 4.50 to 14.99. Get a big 20% savings on western shirts for boys, girls, men and women. Great summer styles in long and short sleeves, in prints, solids, fancy or tailored. All easy care fabrics. Great savings on this bike, camping gear, and western shirts. Save Reg. 24.99. Sale 19.88. 5'x7' nylon pup tent. Flame retardant for backpacking, camping, or backyard. 3'6" center height; rear window; carry bag and all hardware included. reg. 36.99 Sale 29.88 A Save*3" Reg. 17.99. Sale 14.88. For the big man: extra Jong nylon sleeping bag insulated with 3 Ibs. Dacron 68® polyester filling. Full 110" zipper. Complete with headpiece. Machine washable. Save $ 10 Reg. $79. Sale $69. JCPenney 10'x8' flame retardant lodge tent. Nylon body with cotton roof. Now 1.15 One gallon Cofemon fuel. Mown 3 Coleman propane lantern with double mantel for 14.1 oz. and 16.4 oz. disposable propane cylinders. Single mounted propane ^ M«\A/ «n .. -*. Now 5 16 Coleman 220J lantern with 2-pt. tank. Great for campers and hunters. Don't miss this value. 228J with Flood Light, ^J Now* 16 CoJeman 425E 2 burner stove. 413G 2 burner Now *20 426D 3 burner Now 29.99 Now $ 32 Coleman 68 ql. coaler. Now $ 20 Coleman 56 quart cooler. Urethane insulation; plastic lining wipes clean. Sal« prices effective through Saturday, April 5 ... Charge it. South Plains Mall... Shop 10 a.m. 'til 9 p.m. Monday through Saturday.

Get full access with a Free Trial

Start Free Trial

What members have found on this page