Northwest Arkansas Times from Fayetteville, Arkansas on April 28, 1974 · Page 8
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Northwest Arkansas Times from Fayetteville, Arkansas · Page 8

Fayetteville, Arkansas
Issue Date:
Sunday, April 28, 1974
Page 8
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Page 8 article text (OCR)

Northwest Arkansas TIMES, Sun., April 28, 1974 FAYITTCVILLE. ARKANSAS Buf They May Return Before Long Wage-Price Controls Dying In Disgrace By BILL NEIKIRK WASHINGTON (AP) -- President Nixon's wage-price control program will be buried Tuesday in virtual disgrace. It was 32'A months old. Survivors include a booming inflation and lost purchasing power. Although they failed to slop the nation's worst outbreak of inflation since the Korean War, controls may be back again, especially if consumer patience over double-digit price increases wears any thinner. Controls are coming to an end because Congress failed to extend the Economic Stabilization Act, their legal authority, for another year. The act expires at midnight Tuesday. It had been extended on an annual basis since 1971. Yet, with a spate of bad economic news in the past two weeks. Senate Democrats took an about face and advocated extension of standby wage-price authority. But it appeared doubtful any final action could be taken before the Tuesday deadline. Acting Senate Republican Leader Robert P. Griffin, R- Mich.. accused the Democrats of "pure unadulterated politics" in their move. The U.S. Chamber of Commerce and the AFL-CIO opposed any further extension. Through four different phases and various sub-phases, including two economic freezes, controls have gotten a bad name. Both labor and industry were successful in lobbying for an end to them. Although Nixon sought an extension so that his Cost of Living Council could keep the health and construction industries under control, his economic advisers generally are happy to see them gone. But, in a recent interview, William E. Simon, the Treasury secretarj'-designate, said be wouldn't rule out the possibility that controls might be reim- poscd one day. Among Nixon's advisers, Simon is most flexible on the question. On Capilol Hill, Democratic senators and congressmen are getting behind legislation that would provide for limited wage- price control authority. But it will probably be summer or fall before any legislation is approved. What's' ahead for consumers? Most of the economy already has been released from controls, so the expiration itself niay not have that much of an immediate impact on the price level. But the economy is caught up in strong inflationary pressures as well as food and fuel shortages that will mean a continuation of sharply higher prices for at least several more months. Already workers are restless over their eroding purchasing After Years On The Open Road America's Tramps Head For Retirement By TIMOTHY HARPER Associated Press Writer Tourist Union No. 63, which counted 2 million bedraggled Americans among its unofficial membership 40 years ago, is down to a handful of scraggly, tired old wanderers. The last members of the union, also known as the National Association of Hoboes, are one by one corning off the road to settle in missions, nursing homes and cut-rate hotels catering to the Social Seucrity set. Two of the more traveled hoboes. Gene "Slow Motion Shorty" Parker and Tim "Conn e c t i c u t Slim" Moyland, recently retired to live on small pensions, Parker in Oregon, 111., and Moyland in Parkersburg, W. Va. "Too old and too tired," said Shorty. Most of the retired old tramps look with disdain on two better known, still active hoboes, Richard "Pennsylvania Kid" Wilson and John "Hardrock Kid" Mislen, for their media shenanigans. "Those guys just go around mooching drinks off reporters and TV guys,"'s a i d "Stream- Train Maury" Graham, who bemoans the fact that his only occasional train rides these days are usually at the behest of publicity-seeking railroad companies. "Aw, that guy Steamtrain drives his own ear whenever he goes out on the road anymore," said Hardrock. Steamtrain, a Toledo, Ohio, :ement mason for 30 years icfore hitting the road in 1968, ·eluctantly admitted the accu- ation when he was crowned .974 King of the Hoboes at the annual union convention in Britt, Iowa, last summer. NEVER SERIOUS But the hoboes have never aken themselves too seriously, jeginning back in the 1890s vhen 63 hoboes gathered at a Midwestern hobo jungle formed he union and set forth guide- ines of honesty and chivalry till espoused by the oldtimers. But they also agreed that if me of them was ever elected o Congress, he would work for ree soup houses at all railroad depots and for larger nickel beers. The hoboes have been media darlings ever since the first National Hobo Convention in Britt in 1900, when top feature vriters from major newspapers across the country outnumbered he hoboes in attendance. The annual Britt renewal of hat first convention, when each lobo delegate checked in at the convention "hindquarters," is about the only opportunity for '.he remaining tramps who hit .he road during the Depression to sit around a jungle campfire, share a bottle of wine and a rusty barrel of Mulligan stew and swap stories. They talk about hobo heroes if .yesterday such as Scoopsho- ·ei Scotty, hobo philosopher loger Payne, hobo author Hairbreadth Harry, Highway John- LOSE 10-20-30 POUNDS! Easy To Lose Lbs, Fast With New Vitamin T Die! HOLLYWOOD (Special)-New scientific discoveries have produced a Vitamin E diet that quickly v;orks wonders on over- iweight people, and reportedly is gaining great popularity across the country with glowing reports if easy weight loss "while still eating almost as much as you want." Those who follow the simple i Vitamin E diet report an average loss of at least a pound a ; day and even more without ex: ercise or starvation. Nutrition' . ists' files are bulging with hap; py testimonials from formerly overweight people who are now trim and slim again. Best of all you can still eat almost as muc'n as you want of the "forbidden foods" like steak, chicken, fish, sauces, gravies, bacon and eggs and still loss weight. Chewable (candy-like) vitamin E tablets, as used in the diet plan, contain a new scientific combination of ingredients that quickly curbs and controls the appetite, while also giving the wonderous benefits of Vitamin E which ia so essential to good 'health. The use of the new Vitamin E Diet tablets and foods prescribed in the plan will, through natural action, act to help your body use up excess fat. Accord- Ing to recent clinical test, a per- lon who is deficient in Vitamin E or Protein "»;ill double the speed of fat utilization" with the use of Vitamin E. E-DIET AVAILABLE To get a copy of this highly successful diet and E Tablets, send J5.00 for 10 day supply (or $7.00 for 20 day supply or $10.00 for 30 day supply) to: Vila-E |Dicf, Dcpt. J33, 11526 nurbank Blvd., North Hollywood, Cal. DIOOI (Unconditional money-back guarantee 11 not sa'isficd). ny. Hobo Ben Benson and the most famous female hobo, Boxcar Myrtle. They often have loud, Ion" arguments about which is the last authentic hobo. "I know I am," Hardrock. Pennsylvania. Steamtridn, Shorty or others like Scissors Sam Long or James "Bigtown" Gorman will snort. "The rest of you guys are just tramps and wobblies." The sad thing is, one of these days the one who says it will be right. Writing Renaissance NEW YORK (AP) -- The energy crisis is fueling a return to the era of written communication. That's the view of Harry J. Cooper, executive director of the National Association of Greeting Card Publishers. He said .that the rising cost of gasoline is keeping social visits to a minimum and leading to a renaissance in communications. "We can see the trend emerging because of the increase in popularity of friendship cards," Cooper said. "These all-occasion cards afford space for personal messages. People are cutting down on' motor trips' to see friends and family and are relying on cards and correspondence." power. Union officials, who have seen average wage boosts held to under 6 per cent during controls, are now demanding heftier increases. That will strengthen the inflationary push. Many government economists believe the pressure for renewal of controls already is building, even if they have proved virtually powerless in attacking the kind of inflation now rocking the economy. In the past 12 months, consumer prices have gone up by 10.2 per cent and in the past three months, by an annual rate of 14.5 per cent. Food and fuel price increases have led the way. Controls have been ineffective in dealing with food and fuel costs. Efforts to control food prices tightly only created shortages. An upsurge in foreign oil prices frustrated any effort to control fuel prices, since foreign costs are not controlled. Now, the administration is pursuing an old and simple strategy: increase supplies. American farmers have been turned loose for all-out food production this year. The administration is pushing .to increase domestic oil supplies, while trying to dampen energy d e m a n d b y urging conservation. Nixon, was never very enamored of controls. It is reported he learned to dislike them when as a young man he worked for the old Office of Price Administration, which controlled World War II prices. Yet, on the night of Aug. 15, 1971, he startled the nation by announcing a 90-day wage- price-rent freeze, to bring inflation under control and get the sluggish economy moving again. "Working together, we will break the back of inflation," Nixon declared in a nationally broadcast address. The economic and political climate is different now. The President's economic advisers wouldn't mind if the rate of inflation prevailing then were prevailing now. In the eight months before the 1971 freeze, consumer prices went up at an annual rate of 3.8 per cent. Nixon's first freeze was met with great enthusiasm and support by the American people. It sent the stock market soaring. Although there was much initial confusion over how the program was to be administered, the Cost of Living Council soon took charge and the confusion ended. Nixon Makes A Point Speaking before a friendly crowd at Jackson, Miss., President Nixon predicts an upturn la the economy a n il warns that U.S. must become independent In meeting i t s energy needs- (AP Wire- photo) DILLARD'S The Bag That's Plannned For The Well Organized Womanl By Traveler's Delight The go-everywhere handbag . . . for dress, casual wear or travel. Lightweight . . . yet with a place for everything . . . even credit cards are right at your fingertips. In white, bone, red, navy or camel. * 5 Compartments (3 Zip) * Shoulder Style or Conventional * Holds Checkbooks, Passport ond Credit Cards in See-Thru File System * Fashion Plus Handbags--DILLARD'S--First Floor Front View Nixon's break with his past iconomic theories proved to be i combination of his own flex- blc attitude on problem-solving .nd the pushing of then Trcns- ny Secretary John B. ' Con- lally, who had urged strong nli-inflationary action from he beginning. Connally was pitted against jeorge P. Shultz. who as a Vhite House aide had con- 'inccd Nixon up to that point to elain his policy of moving the ·conomy upward slowly and ighting Inflation through the ederal spending and economic orces. But Shultz' "steady-as-you go" economic policies were re- ected in favor of Connally's itronger action. The controls program proved o he anything but steady, leres a brief rundown on what lappcned after Nixon's Aug. 15, 971 move: Phase 1 freeze -- Consumer nice increases slowed to a .rawl during the 90-day freeze, ising at an annual rate of 2 per cent. Raw agricultural iroducls were exempt. Food rices rose at a 1.7 per cent an- lual clip. Phaset 2 -- This phase lasted .4 months, from November 1971 0 January 1973. When Nixon ·as re-elected, he had cffcc- ively defused the economy as 1 major campaign issue because the controls program icld inflation in check. Coner prices rose 3.6 per cent luring this period. But food rices toward the end of Phase 2 began rising sharply again. Phase 3 -- This was the shocker that goes down as a major failure of the control program, Nixon, in January 973, dropped most mandatory controls on wages and prices and replaced them with a sys- em of wage-price guidelines backed up with the threat of government action. This was he "stick-in-closet" approach. Phase 3 triggered an explosion of prices, primarily in commodities traded on inler- lational markets. The dollar couldn't stand the pressure, ind was devalued for a second ime in February .1973. During he five months of Phase 3, consumer prices jumped 8.3 per cent and food prices 20.3 per Open Monday Through Saturday 10 A.M. Until 9 P.M. cent. Nixon put ceilings on meat prices on March 29. 197U, Phase 3ft -- In June 1073, Nixon Fro/e prices for CO 1:iys to try to stop HID inflationary onslaught. SbulU, who tind tak- cn over as Treasury secretary earlier in the year, opposed the freeze nnd handed In ins resignation. But Nixon urged him to stay on, and Shullz did. The second freeze didn't enjoy nearly the same support from the public. And quickly, it began musing its own- distortions. Poultry producers, finding it no longer profitable to raise chickens, began drowning baby chicks. Eeef shortages began to crop up across the country. The freeze was lifted across most of the economy in mid-July and in the food industry in August. Phase 4 -- This was the toughest control program of all, yet it still failed to halt inflation. The administration, f r u s t r a t e d by the ineffectiveness of controls, began decontrolling the economy 'early this year. During Phase 4 and the second freeze, consumer prices rose 8.3 per cent and food prices, 14.3 per cent. The controls program did prove successful, however, in. containing explosive wage 'increases, with average contract settlements staying either within or close to the 5.5 per cent pay standard adopted by the government. Shultz, who is leaving soon as T r e a s u r y secretary,, said recently that the second freeze as well as the tough Phase ! program taught Americans a lesson about controls and the distortions they cause. Yet Shultz and other administration economists who administered the controls were often criticized for their less than enthusiastic support of them. Harvard economist John Kenneth Galbrailh quipped that it was like putting the Pope in charge of birth control. Shultz was the architect of the now infamous Phase 3. Later, he and other administration economists conceded the fast jump from mandatory to largely voluntary controls was a mistake. Shultz referred to Phase 3 as "the greatest failure in the history of economics." When controls enjoyed their greatest success, the price-control ' program '.v-.5 r;:n by a semi-autonomous Price Commission and the wage-control progam by an autonomous Pay Board, composed of five members each from Industry, labor and the public. With Phase 3, these bodies were dismantled. C, Jackson Grayson Jr., who headed the Price Commission, recently said that he saw food as the biggest challenge then facing the control program. He added that he expected that controls may be reimposcd again in two or three years. Except for the two freezes, the controls programs Were extremely complicated -- an'd this was a problem for administrators. For instance, it was a rule that prices could go up to reflect increased costs. But a company couldn't exceed a percentage profit margin limit, calculated by using 1960, 1970 and 1071 as a Iwsc. It was, in fact, difficult for a consumer to tell when a company was overcharging him. The Cost of Living Council's director, John T. Dunlop, waged a losing fight before . Congress in trying to get a modified controls program adopted. He got little help from other officials in the administration. While the administration says that the sharp rise in prices ill level off in the second half of the year, Dunlop now isn't so sure. "I don't want to be associated in any way with predictions for the second half of the year," said Dunlop, who came to the government from Harvard. Where consumers may se9 the real pinch is in health costs. If administration figures are correct, the post-control period will see a $4 billion or more increase in health costs. SEWING CLASSES ENROL!, TODAX FABRIC CITY I r.,x-. /'"· ~ The City Sandal by Gvane Orig. $18 14 Dillard's brings you another timely Springtime savings on these handsome city sandals. Choose from white or camel . . and save 3.10. Women's Shoes--DILLARD'S--First Floor ' Open Monday Through Saturday 10 A.M. Until 9 P.M.

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