The Des Moines Register from Des Moines, Iowa on August 30, 1975 · Page 8
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August 30, 1975

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The Des Moines Register from Des Moines, Iowa · Page 8

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Saturday, August 30, 1975
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8 / OES MOINES REGISTER Sat., Aug. 30, 1975 Political dilemma for Congress PAY Continued /row Paqe One lowing (he higher scale to take effect. That happened a year ago when Mr. Ford proposed to delay a federal employes' increase for three months;, his effort was overwhelmingly rejected by the Senate, and the raise went into effect Oct. 1. Mr. Ford said in a message lo Congress that the proposed 8.66 per cent increase in federal white collar pay would add more than $3.5 billion to federal expenditures. The 5-per-cent increase, which he proposed in his budget, Mr. Ford said, would reduce these expenditures by about $1.6 billion. "My overriding objective is to achieve national economic stability for all Americans," Mr. Ford said. "Full comparability pay, at this time, is inconsistent with my course of action to build a strong and stable economy and to bring inflation under control." Exhorts Congress Mr. Ford strongly urged Congress to support the 5 per cent pay boost he proposed. This annual pay increase does not affect federal blue collar workers or Postal Service employes. Under recently passed legislation, however, the annual pay boosts are extended to judges, members of Congress and officials under the execuative salary schedule, including the vice- president. Political Dilemma Members of Congress thus face a political dilemma. If they increase is held to 5 per cent, their $42,500 annual salaries would be boosted by $2,125; if the raise is 8.66 per cent, they would get $3,680 a year more. On the other hand, they may be wary of voting a bigger increase than that recommended by Mr. Ford at a tim« of inflation and unemployment. The AFL-CIO's public em- ploye department assailed Mr. Ford's proposal as a "clear violation of the intent" of the law. SOVIETS BALK AT GRAIN SHIPS' PAY INCREASE Student film convincing, Kent State juror says Will roview entrance policy BARTONVILLE, ILL. (AP) — Limestone High School officials Friday said the Board of Education will reconsider its stand barring.entrance to freshmen who lack medical and dental examination certificates. A spokesman said the controversial rule under which 60 youngsters were sent home on the first day of classes Tuesday will be taken up at the next meeting. Ride with Castro Imelda Marcos, wife of Philippine President Ferdinand Marcos, rides in an open jeep driven by Cuban Premier Fidel Castro. Mrs. Marcos was in Cuba as a prelude to the establishment of formal relations between the two countries. Housing interest rates to 9 per cent By ROBERT 0. KAISER (B iWs wnimniwi r*w WASHINGTON, D.C. - Soviet-American negotiations on a freight rate for American ships'" carrying grain to the Soviet Union were suspended Friday after the Russians refused to make an offer the U.S. side regarded as acceptable, accord* ing to the Federal Maritime Administration. The talks will resume in Moscow Sept. 9. Until a rate is mutually agreed upon, no American ship will carry grain to the Soviet Union. The Agreement Soviet and third-country ships can continue to carry grain, but under the terms of the Soviet- American maritime agreement, the Russians eventually will have to ship at least one-third of their purchases of U.S. grain in American ships. . According to the agreement, ships of the U.S. and Soviet Union are entitled to a third of the grain shipments. If either goes above one-third, the other is entitled to carry an equal amount. The last negotiated rate for this cargo was $9.50 a ton, far below what American shipowners and the Maritime Administration regard as economic. The .U.S. is now demanding at least $15-16 a ton, but the Soviet side has refused to meet this figure. Sources said the Soviets were not reasonable, but appeared to CLEVELAND, OHIO (AP) Juror Richard Williams said Friday an amateur movie showing a rush of antiwar demonstrators toward outnumbered T5fifo National Guardsmen moments before the troops fired convinced him to vote for the juardsrnen in the recent Kent State civil damages trial. I figured the guard pan- eked," Williams said in an interview. "According to the law, if they fear for their lives, they canllrt." The Spark Williams was a member of the jury that absolved Gov. James A. Rhodes, former Adj. ECONOMY Continued from Page One July, and the Soviet Union contracted to buy 16.5 million metric tons of grain on world markets. Largely because of those developments, Agriculture Department and other Ford administration officials have said retail food prices could rise by 1.5 per cent more this year. That would produce an average increase of 9 per cent for this year over all of 1974, when, as in 1973, food prices jumped 14.5 per cent over the previous 12-month average. Economic News In other news of the economy: —•..The- government increased by one-half of one percentage point Friday the maximum interest rate it permits on home loans it insures. The increase, to 9 per cent, means home buyers using loans insured by the Federal Housing efits went to the 19.1 million who remained,.Agriculture Department statistics showed Friday. • Economic adviser Alan Greenspan told President Ford and the Economic Policy Board Friday that he is convinced the economy is continuing to move upward. Press Secretary Ron Nessen told reporters that Greenspan also expects the rate of inflation for August to come down from the July figures. • In Oakland, Calif., Kaiser Steel Corp. announced Friday it will raise prices by an average 3.1 per cent Octi 1 to offset increases in the costs of labor, material and energy. The Bethlehem 'Steel Corp. and National Steel Corp. raised prices about 4 per cent earlier this month on a variety of steel products/mainly those used in auto production. U.S. Steel Corp. had already raised prices about 3.8 per cent. • In New York stock prices weeks of hot, dry weather to come in the Midwest, the Agriculture Department predicted retail price increases for the year of 6 to 8 per cent or, if bad weather and stronger export demand occurred, 8 to 10 per_cenL Farm prices, however, account for only between 38 and 44 cents of every grocery dollar, with growing markups, to cover the costs and profits of the processing, distributing and retailing sectors, responsible for the rest. 10 Per Cent Rise Farm prices in the board's over-all index of commodities, after falling until March, rose 4 per cent in mid-April, 5 per cent in mid-May, 2 per cent in mid-June and 3 per cent in Administration or Veterans Ad-j chalked up tneir third straight ministration will have higher monthly payments. Sellers of such ' houses, however, would have smaller prepaid interest charges on such transactions. • A total of 100.000 persons went off the federal food stamp rolls in July but increased ben- advance Friday although the rally lost steam in the final hour on word that New York City's "default is a good possibility." (Details on Market Page.) In May, with record crops planted but more than six Fears loss of price authority ENERGY Continued from Page One price controls : — tempered by the promised removal of the $2- per-barrel fee on imported oil imposed by Mr. Ford — would add no more tharrlhree cents a gallon to consumer petroleum product prices. But Mansfield, in a 'letter and memorandum to Mr. Ford, said decontrol would .increase inflation and unemployment, add to the nation's budget deficit, and hit hardest at those least able to bear the burden — the poor and the unemployed. Mansfield also pointed nut that decontrol would remove federal authority to restrain propane prices and to allocate fuel oils, just when this authority may be needed to ease the impact of predicted natural gas shortages this winter. Political Overtones Unmentioned in Mansfield's letter were the possible political overtones of decontrol just before a national election year: If Mr. Ford vetoes extended controls, Congress fails to override the veto and the public gets angry, who would it blame? "Neither the administration nor the Congress seeks abrupt and total decontrol," Mansfield wrote to Mr. Ford. "What I suggest," he added, "is that simply because the final details of an agreeable pricing policy have not emerged, the nation should not be made to suffer the consequences of no pricing policy at all, as is the case with total decontrol, ..." Harm to Consumer Mansfield predicted that "the consumer will be hurt come September if controls are not extended" and warned that "there are absolutely no measures on the books that would serve to mitigate the adverse impact of total decontrol. . . ." Mansfield emerged from his meeting with Mr, Ford to describe the President as "considerate, helpful and conciliatory." Nessen said the President "expressed his appreciation for the constructive way in which Senator Mansfield and Speaker Albert are seeking to resolve this difficult national energy problem." Import Quotas Meanwhile, the Commerce : Department announced it will i continue to limit exports of do: mestic oil at least through Sepi tember and possibly through ; the rest of this year. iting oil exports to small sales under special licenses to pre vent higher overseas prices from draining oil out of the U.S. and into foreign markets. Even if U.S. oil prices are decontrolled suddenly, said Commerce Secretary Rogers C. B. Morton, there would remain some incentives to ship U.S. oil abroad, such as the prospect of filling tankers that now must make their return runs empty after having delivered oil to the U.S. Profit Report In other petroleum news, an industry spokesman reported Friday that the nation's 25 leading oil companies earned $4.5 billion in the first six months of this year. Sloan K. Childers, president of the Oklahoma Petroleum Council, in a statement issued in Tulsa, said the figure is 36 per cent lower than the $7 billion — an unusually high figure — earned in the first half of 1974. This year's first-half earnings for most companies still are well above the similar period of mid-July — to a point 10 per cent above last year. In 1974 the middlemen's share of the consumer dollar accounted for more than 80 per cent of the price increase. In a separate index of 65 U.S. farm-produced foods, the farm- to-retail spread jumped 2.9 per cent from June to July, about equal the drop in it over the previous three months. Farm values of those foods rose 4.1 per cent in the one-month period. The reaction to the sales to the Soviet Union and the July crop damage reversed a falling grain price curve. Wheat Prices Wheat averaged $3.89 a bushel on the farm as of Aug. 15, up from $3.33 on July 15 but significantly below its Feb. 15, 1974 peak of $5.52 a bushel. Wheal was priced a year ago at $4.24 a bushel. Corn was $2.95 a bushel against $2.72 a month earlier and $3.37 a year ago when crops were severely damaged by bad weather that cut production 20 per cent. It was a record $3.45 a bushel two weeks into the marketing year last early-summer rise in farm and retail food prices. Upsurge Weakening? By this week, they were say- ng the upsurge appeared to have weakened: — Friday's report showed meat animals as a group drawing 3 >er cent lower returns to pro- iucers than a month earlier. That index was 11 per cent ligher than in mid-August 1974. Contributing to strong meat prices. was that the amount 'of red meat in cold storage — which distributors and retailers had trouble moving in 1974 — was 28 per cent below the previous year on July 31 and 12 per cent below June 30. Also adding to the midsummer's price spurt, department conomists say, were much, higher early season prices for resh fruits and vegetables. Housing Interest Rates The increase in interest rate maximums was th$ first since April and represented further evidence of the upward pressure on interest rates that is clouding prospects for recovery in the crucial housing industry. The interest rate ceiling had dipped as low as 8 per cent last winter, but has turned jipward again in response to market pressure. The effect of the new ceiling is to add $14 to the monthly payments for a $40,000 home loan over 30 years. Under the new ceiling the monthly payments would be $322. Secretary of Housing Carla A. Hills said, "The new rate should help assure a continuing flow of funds for moderate income housing." The rate change becomes effective Sept. 2. Barley rose to $2.56 a bushel from $2.35 in July. Soybeans, selling for $8.99 i bushel a year ago and $7.55 lasi month, were bringing $5.80 Aug. 15. What department economists have termed an "explosion" in prices for beef cattle coming to market from mid-May through the Fourth of July weekend, and continuing low production of hogs, have been cited for th> lack final authority to sign an agreement during these negotiations, which began Aug. 11. U.S. sources said they were optimistic an agreement would Ite reached when the talks reconvene in Moscow. Unions' Stance The dispute over a rate is one of the issues aggravating American maritime unions' opposition to Soviet grain sales | sources said. The International Longshoremen's Association^ which is currently boycotting shipments of grain to thfi USSR, hopes this move will assure a larger share of the trade for U.S. ships and a higher rate. American maritime interests are disturbed by the success the Soviet have had shipping freight to and from the U.S. since they won access to American ports in 1972, when the maritime agreement was first signed. Gen. Sylvester Del Corso, former Kent State University President Robert I. White and 26 current or former guardmen of liability for the May 4, 1970, shootings that left four students dead,and nine wounded. The civil trial asking $48 million in damages stemmed from those shootings. Williams was one of the few jurors who' would comment about the trial. Albert E. Hunt of suburban Shaker Heights, said there was a reason, he couldn't talk about it but refused to elaborate. Another, Cecelia M. Klancar of Euclid, had tears in her eyes when she said she wouldn't discuss it at any time. Williams said the deliberations left all the jurors emotion ally drained. "We had to hide our emotions," he said. "We had to follow the law rather than use sympathy." Student's Movie The'film he described was 8 m.m. footage taken by Christopher Abell, then a Kent State mitory window 1,600 feet from the site of the gunfire. The the poor quality made it "hard to see," he said, "you could see this run up the hill toward the guard. According la the film, they were fairly cl(M, "That's what convinced mi,* he said. Williams said there were about 70 guardsmen and that 'they were outnumbered quite a bit," though he couldn't tell how many demonstrators there were. "I wasn't completely convinced until the end," he added. "At the end, we had a short film and two tapes. And in the tapes it shows ... a few seconds before the shooting there was a charge. You could hear them hollering out, 'Lay down your guns; you're surrounded.' " Williams said the delibations involved "quite a bit of soul- searching." Would Hurt People "I knew no matter which way we went, we were going to hurt people, we were going to change their lives for the rest of their lives," he said. That's a hard decision. They were in there doing what they were supposed to be doing, according to the law." "I didn't want to be in this position," Williams said. "I never want to be in it again." Stolen cheeks WASHINGTON, D.C. (AP) Three men were arrested Friday as they allegedly tried to peddle $1.6 million dollars in stolen cashier's checks to un- student, from his fifth-floor dor- dercover FBI agents. IMIDWEST BUILDERS, INC. ' i±.r" wi map m IOWA, MO., NIBR., ai. GARAGES Maynard woman killed in crash RANDALIA, IA. — Mrs. Evelyn Niles, 54, of Maynard was killed Friday in a one-car accident on a Fayette County road IVi miles-east of Randalia. Her daughter, Heather, 18, driver of the car, was listed in good condition at an Oelwein hospital. 2-Car GARAGE NO GIMMICKS WE CAN & WILL BUILD AT THIS PRICE (SEE SPECIFICATIONS BELOW) Revenue 'spy' loses court plea MIAMI, FLA. (AP) — A jury has rejected the attempt of a self-proclaimed former Internal Revenue Service spy to collect damages from a bank for alleged invasion of privacy. A Dade County Circuit jury deliberated only 15 minutes Thursday in ruling against Elsa Gutierrea, 34, whose disclosures of IRS spying triggered a Congressional investigation earlier this year. Mrs. Gutierrez' attorney had asked the jury to order the Florida National Bank of Coral Gables to pay between $300,000 and $500,000 to compensate her for mental suffering. Sihanouk to return BELGRADE, YUGOSLAVIA (AP) — Prince Norodom Siha- nouk will return to Phom Penh Sept. 9 or 10, the Yugoslav news agency Tanjug reported Friday from Peking, quoting diplomatic sources. FREI ESTIMATES... NO OBLIGATIONS Completely erected! Includes: Concrete floor, insulation, pre-primed tiding, 16 foot sectional door, 2x6 rafters, (price based on level ground) • ADDITIONS • BATHROOMS * KITCHENS' A AACCMBMTC • REMODELING * »ASf MENTS • PANELING •FIREPLACES 6 GAR AGES ON DISPLAY OPEN AU DAYS AT. & SUN. FHA FINANCING AVAILABLE MIDWEST BUILDERS, INC. 727 S.E. 14th (S.E. 14th 4V Maury) 283-2418- CALL COLLECT The department has been lim-j 1973. CASH PRIZES fvtry Night 7:30- 10 OwnOpmfcM SUNDAYS 2-5:30 LMftwur JMUE&. -J DOWNTOWN BINGO PARLOR 816 WALNUT Barn Paint Special I *2.00 CASH REIATE PER GALLON See your Dutch Boy Dealer for Quality Barn Paint. If you need help in application, he can help with that, too. Des Moines Paint & Wallpaper 607 E. Locust/ D«s Moinvt 515/288-8944 ® MESSAGE FOR MOM! MUSCULAR DYSTROPHY KIDS DESERVE A BREAK TODAY! HERE'S HOW YOUR YOUNGSTERS CAN HELP COLLECT MONEY FOR MUSCULAR DYSTROPHY: . • Pick up a Special "Ronald McDonald" M.D. Collection label at any of the 9 Des Moines area McDonald's Restaurants. • Collect for M.D. in your neighborhood area. • Turn in their money in person to "Ronald" at KCCI-TV. He'll he looking for you during his appearance on the telethon from 11 AM to 5:30 PM on Monday, September 1. I • "Ronald McDonald" will give a free guest card good lor one McDONALD'S hamburger and french fries to each youngster when he or she returns the collection can. (Also, a_big_',THANK YOU"!} Participate in the "JERRY LEWIS IABOR DAY TELETHON FOR MUSCULAR DYSTROPHY" KCCI-TV—Channel 8 8:30 PM Sunday, August 31 Thru 5:30 PM Monday, September 1

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