Northwest Arkansas Times from Fayetteville, Arkansas on June 27, 1974 · Page 4
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June 27, 1974

Northwest Arkansas Times from Fayetteville, Arkansas · Page 4

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Fayetteville, Arkansas
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Thursday, June 27, 1974
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Jlortfjtoest rfemt£ia£f Ctmes! Editorial-Opinion Pag* The Public Interest Ji Tht First Concern Of This Newspaper 4 0 THURSDAY, JUNf 27, 1974 'Leaks' Come From White House, Too Not Quite Yet, But Land use legislation is an idea whose time has almost come -- but not guile. An important and largely adequate bill barely failed to pass muster in the House a few days ago, and the Arkansas delegation can take credit, statistically at least, although resistance fo the measure is general in the South. (TIMES columnist Jack Anderson reports that Chicago's Mayor Daley used his influence with the Illinois delegation to actually kill the bill, on the basis of the shift in patronage jurisdiction involved in the Chicago planning area.) The fateful vote in the House wound up with 204 in favor and 211 opposed. The four members of the Arkansas delegation voted against the measure. If they had all voted for the bill, it would have passed by a single vole, so four IS the magic number. We imagine the prevailing logic for the Arkansas delegation is that Arkansas farmers and property owners are opposed to "land use" regulations. For sure, the typical Arkansas land owner is an independent sort, with very little use for government rules and regulations on how he uses his own property. Times change, though, and we have in recent months encountered more and more "typical" Arkansas farmers who are concerned with what is happening to their streams (the Illinois River'and Flint Creek, for instance), and what is being planned for their neighbor's property. At a planning meeting in Rogers recently, » majority of farmers seemed fo be voicing concern that their farmlands and rural perogatives should somehow be protected John I. Smith from such things as commercial developments, airports, highways, and (in the pejorative sense) "land use." Land use has a bad image for the rural South, certainly, as it is identified with urban zoning laws and eminent domain. Talk to a farmer about protecting his land for farming, though, and preventing his neighbor from turning his place into a landfill site, or a feed lot, and he'll mostly agree that something needs to be done. What is emerging at the grassroots level, then, is support for a type of "land use" that is administered by local rather than federal government. Property owners along the Kings River are against "land use," for instance, but they have organized to protect the "use" of their land, which is really what a good land use law is all about. Predictably, the state Legislature is still resisting Gov. Dale Bumpers' wilderness preservation proposals on the basis that the state has no business taking property out of the private domain. It is okay to have a wilderness, in other words, but not at the expense of government. This is "socialistic," in the words of Sen. Virgil Fletcher of Benton. As of the moment, Senator Fletcher's viewpoint still carries the day, (the state Senate killed the wilderness bill for practical purposes Monday). The closeness of the vote m Congress, however, along with a changing appreciation among agricultural interests of the South that "land use" CAN work for the land owner, too, suggests that th« idea's time is nearer than Senator Fletcher might think. Area Farming In the year 1974, many farmers seem to be of a notion to hold (arm products in order to force up Ihc prices. This is a nationwide trend, ami we wonder if the policy has merit. We wonder if people can properly calculate when the price of any commodity \vill go either up or down. In looking back over several decades, one can generally remember just as many farmers who lost all that they had by taking a gamble and holding for higher prices as those who made a fortune by guessing and holding until the right time to sell. No one should gamble unless he is financially able to lose. Few farmers are t h a t finan cially strong, and they should base their selling program in accordance with the demands which will be made on their bank accounts for debt retire- ment and living expenses. Someone has suggested, perhaps wisely, that the iwheat farmers should sell their crop at several quarters during the year, neither all at harvest time or all at the end of the wheat year {just before the next harvest). At least one should follow such a method if the demands upon his cash resources will not force him to sell earlier. Commodities do have some seasonal "highs" and some seasonal "lows." but these periods generally are not extremes. The "highs" are most the values at harvest time plus handling, storage, shrinkage, insurance, ami interest on the money during the waiting period. One must secure a very good sale in the latter part of a given season to do better than at harvest time, or soon thereafter. It is better for a farmer From Oar Files; How Time Flies Kl YEARS AGO W a s h i n g t o n County 4-H members have been hosts all this week fo 4-H delegates front 50 YEARS AGO The fifth annual picnic of the Fayetteville Business College is being held this afternoon in West Fork whore more than 100 students together with f a c u l t y members are enjoying the evenirrg with various games and 100 YEARS AGO Sale of lots to-day. A( 11 o'clock to-day, will he sold on the ground, at auction the 13 Butterfield !ots; proceeds to go toward finishing St. Pauls Church. These embrace some of tiie richest garden land in our city, a walled well 70 feet deep, and Cato's branch, perpetual stock water, running through the lots. Plan at Mcilroy and Van Hoose's store. Lucas County, Iowa -- who are returning a visit paid by Washington County last summer. swimming. With approximately 250 young people and Sunday School instructors enrolled, the Sunday School Training Institute at the Methodist Assembly here is in progress. To Those of moderate means there will not soon be such an opportunity. Johnnie Roberts, a student at Emory College. Virginia, and a son of our esteemed fellow citizens. Rev. J. J. Roberts, is here on a visit to his parents. He will send the suhmer vacation in Fayetteville. Valley Grange has a seal at this office, which the secretary will please send and get. They'll Do it Every Time o sell his products and to pro- cede to try to produce a better crop and cheaper one than the one he produced the year before. With Livestock. including poultry, the time to sell is the day the pig, the lamb, the calf, the tUikey, or the broiler has finished the feedin gperiod - is fat and ready to top the market - and is ready to go. There is practically no other time. When they are grown, they will grow no more. When they are fat, they will fatten little more, and that additional fat might be objectionable. OF COURSE, if all farmers held animals off the market, the price would rise, but when they all rush to market with the accumulated animals, the glutted market breaks. Only the few who reached there first would benefit. While meat is stored for the periods of slackness, the storage is not as safe or as cheap as the storage of dry wheat or corn. Storage will always play only a minor part in the marketing of meat. If what we hear is true, the poultry industry is taking the best method of facing the threatened price break - the destruction of millions of baby chicks or the breaking of millions of hatching eggs. That method handles the question of too much production, while holding a n i m a l s in the feed lots aggravates the problem - builds up the pounds of meat which must be sold and consumed. In Northwest Arkansas the decision in poultry production lies with the industry, which is more able to foot the bill and can take the costs out of the next batch or two of broilers. Cattle is our next great animal game in Northwest Arkansas, and there the decision lies with the individual farmers. At a method of cutting down on production they might consider selling more heifers directly into the feedlots and into the slaughter houses. They might also consider selling some older mother cows or poorer ones. They might consider cutting more hay from the pastures a n d , thereby, save buying hay or other feeds. Or they might consider saving the winter feed bill by cutting down the herd and saving some of the pastures for winter grazing. But gamble, no, unless you have the money to lose. The best policy is to have the cattle to sell both when they are high and when they are low. There is an ancient saying of unknown origin: "He who fights against the inevitable dies in the process." The modern answer to this saying is: "Live with the times and roll with the punches." THE TROUBLE with indebted people who hold products from the market is that they are often forced to sell on a declining market, when the security declines to near the amount of (he debt. That was the trouble with tile 1929 stock market crash. The many people who were engaged in a gambling game had spent all their money buying stocks on small margins - small down payments. They owed too much on their stocks, and they lost their equity when the stocks declined the (ew points that they had paid on their holdings. If farmers are indebted on their livestock or crops, they should sell when they can clear their debts and when they can keep an appreciable amount of the money. By JACK ANDERSON WASHINGTON -- The Whit* House howls about news leaks have moved us to relate for the first time how those same horrified gentlemen have tried to use our column to leak unfavorable stories against their political foes. First, the .White House tried to establish a direct pipeline into our office. This was shut down after our exposes of the Nixon Administration landed us on the White House "enemies list." Thereafter, the President's men used Indirect approaches to plant stories with us. once routing information through the Virgin Islands. Here are the details: Early in 1969, President Nixon'j political tutor, the late Murray Chotiner, called on us to say that the new President wanted friendly relutions and that the resources of the White House would be available to us for hard-to-get information. We don't know whether Ninon himself was a party to this arrangement. But ex-White House aide Clark Mollenhoff has told us that he learne dfrom the President's former staff chief, H. R. Haldeman, of Chotiner's secret relationship with our office. Through the Chotiner channel, we received only half-a-dozen stories, including the Justice Department's file on the tax investigation of George Wallace and his brother, Gerald. This was at a time when the White House feared the Alabama The Washington Merry-Go-Round governor would run tor President as an independent in 1972 and drain votes away from Nixo. We always double-checked the White House leads and seldom gave the tacts the emphasis Chotiner wanted. When we also started publishing Nixon scandals, the olive branch was withdrawn and the Chotiner leak dried up. But we learned that the White House still kept trying to plant stories with us indirectly. We have obtained the confidential White House file, for example, on Sen. George McGovern's campaign treasurer, Henry Ktmelman. The file shows how the WhiSe House tried to slip us derogatory information about Kimelman. On May 12, 1972. presidential aide W, Richard Howard wrote to « White House colleague, Fred Fielding, alleging that Kimelman "was nearly indicted last year because he is a liquor importer in the Virgin Islands and apparently he really rakes off the profits." The allegation, it turned out later, was erroneous. But the memo continued: "We believe there must be material at Justice and Interior on '.his sleezy character that we would like to obtain through your fantastic sources. "We could, of course, control the release of this material but need your help in getting what apparently is some pretty good stuff." The memo was stamped "Confidential-Eyes Only." Not long afterward, the White House received a memo from Interior Secretary Rogers Morton's executive assistant, Bob Hitt. This one was stamped "Very Confidential-Eyes Only." Hitt provided a rundown on Kimelman, telling about *n investigation i n t o alleged irregularities but concluding: "The investigation turned up nothing sinister that I am aware of." By an interesting coincidence, we received a communication about this time from William N. Greer of the Virgin Islands. He enclosed a two-page summary of allegations against Kimelman, which we investigated but couldn't substantiate. We were startled to find this letter in the White House's confidential Kimelman file. It was accompanied by a letter from Greer's wife to White House aide Harry Dent. "Enclosed herewith," wrote Nellie Greer, "is a copy of information sent by my husband to Jack Anderson. We have learned that Greer, a former U.S. marshal, is a security specialist who does undercovrr work for commer cial firms in the Virgin Islands. His wife in 1972 was a minor Republican appointee working in the Government House. Reached in the Virgin State Of Affairs Last Of The Big Spenders By CLAYTON FR1TCHEY WASHINGTON -- With the begining of the new fiscal year (July 1) only a few days off, the jockeying between the White House and Congress over the 1975 federal budget is going on as usual, except for a new man-bites-dog Lwist this time around. Ordinarily, it is the President who puts on a highly publicized anti-spending show fo rthe benefit of the taxpayers, but this June the performance has suddenly and unexpectedly been pr-empted by the Senate. The move seems to have left a surprised Administration temporarily at a loss. The White House budget calls for an outlay of (305.4 billion for the coming fiscal year. In first announcing it. Nixon warned Congress a g a i n s t "busting" it with appropriations above those scheduled by his Administration. Through a virtually unnoticed amendment to a routine banking bill, the Senate responded by voting overwhelmingly (74 to 12) to clamp a ceiling of $295 billion on the Nixon budget, thus reducing it by $10.4 billion. The amendment offered by Sen. Wiliam Proxmire (D-Wis.) does not specify whether Congress or the President shall decide what items to cut, but no items are exempted. THE FATE OF U* bill will be decided in conference between the Senate and House, but the leader of the conference, Rep. Wright Pitman (D-Texas), lays, "I don't set how yon could be too much disturbed about cutting $10 billion out of the 1306.4 billion budget." The Administration, however, is disturbed because tha legislation pots It, not Congress, on the defensive when U comes to spending. Instead of lecturing tha legislator! on the virtues of thrift, the Administration may find itself trying to explain why it can't stay within the $295 billion limit established by the Senate. Indeed, the complaining has already started. Herbert Stein, chairman of Mr. Nixon's Council of Economic Advisers, charges that the reduced ceiling "is an unrealistic and probably impossible target to meet." More to the point, he also says, "There's no way to do it without taking a lot out of defense spending," which is the last thing the White House wants to do. If the Senate action prevails, a balanced budget would result. For the Administration target of $305.4 billion contemplates a deficit of $11.4 billion. Mr. Nixon, of course, could veto the Senate reduction, but how would it look for a President who has spent a lifetime denouncing Democrats for deficit spending to veto budget-balancing legislation? The possibility of having to · cut military expenditures is anathema to the Administration. Earlier in the year, efforts were made in both the Senate and House to reduce the deense budget on an item-by- item basis, but as usual the Pentagon ended up getting everything it demanded. Even though the Vietnamese war is over, and even though there is a detente with Russia, along with prospects of peace in the Middle East, the Pentagon budget goes op instead of down. Military spending for the new fiscal year is estimated by the Administration at $115 billion (a new record), but .when all the parts are added up it is closer to $190 billion. Moreover, the Brookhigs Institution warns that it could climb to $142 billion In the next few years at the present rate of inflation and with new defense programs going Forward. Islands, Greer denied that the White House had Instigated his letter to us. He had obtained the detailed accusations against Kimelman, said Greer, from local low enforcement agencies. The Kimelman file shows that severe! Watergate figures -- ex- Attorney General John Mitchell. ex-White House counsel John D e a n , ex-presidential aide Charles,Colson and a few others -- tried to dig up dirt on Kimelman. The results can be summed up in a June 5, 1972, memo from Dean to Howard. "To date," wrote Dean', "we have been unable to come up with any material on Kimelman that might be used to illustrate the true nature of the money man in McGovern's life." . . EVEN SUCH VETERAN cold warriors as Gen. Maxwell Taylor, former chairman of the Joint Chiefs of Staff, and Sen. Barry Goldwater (R-Ariz.). a major general in the Reserve, agree that, in the senator's words, there are "many places in the military budget where we're wasting money." Gen. Taylor spelled it out this way: "Economies may be effected in a reduction in numbers and kinds of strategic weapons, in overseas deployments and in Reserve forces. Other savings are possible in eliminating the 'gold plate' from expensive, overly complex equipment and in reducing the costly overlap in service roles and missions. "We still persist in maintaining two Armies, four Air Forces and two strategic retaliatory forces within our pre^ sumably unified military establishment. Not until the armed forces truly consolidate duplicating functions and pool high- cost equipment of infrequent use will it be possible to gain full acceptance of the legitimacy of miiitary claims to national resources." The government's General Accounting Office has just documented still farther Uw magnitude of Pentagon inefficiency. It says the development of 55 new weapons systems has resulted in cost overruns totaling $26.3 billion. Mr. Nixon was the first President to produce a $300 billion budget, as he was also the first to break the ftM bfflion barrier. If the Pentagon is not restrained, he may yet achtev* a $400 billion budget. Nonetheless, Vice President Gerald Ford warns that if the Democrats make congressional gains this fall, "The doon of the federal Treasury wftl be wide open . . . deficit* will be piled on deficits." Ford it becoming a stand-up comic. .. (C) 1*74, Las Aagrie* Ttae* ZIEGLER'S FISH: A year ago. we revealed that ' the National Aquarium was forced to spend 10 per cent of its meager budget to maintain fish tanks for senators, representatives and othar pampered poohbahs. Our story shortly p'lt an end to the government's door-to-door guppy service. There Is, however, one lone fish fancier holding out The President's press secretary, Ron Ziegler, has stubbornly refused to give up his Bleeding Heart Tetras. , Rumor has it that Ziegler £. au " feat inspiration from- his fish. He is about as communi- ca £, as nis f i n n v Weds. FOOTNOTE: The federal fish, tank tender who must still »« rvi * "Zegler-s aquarium isn't ^""'tted to enter the office *hf'« »« ««at man is present. Not until Zieffler slips out does secretary notify the aquarist he may enter. Central's Moment Of Truth WASHINGTON (ERR _ After four years of legal maneuvering and delay, the saga of the Penn Central Railroad is finally Hearing the end of the line. On July 1 in Philadelphia U. S. District Judge John J. Fullam will decide whether the bankrupt line should be allowed to reorganize under the Regional Rail Reorganization Act or to liquidate. Congress thought it had found the apswer to Penn Central's troubles when it passed the reorganization act in 1973 to forestall a possible shutdown of tha railroad during the end-of-year congressional recess. Under the act, eight bankrupt Northeastern and Middle Western railroads, including the Penn Central were to merge into a single profit-making enterprise called the Consolidated Rail Corporation (Conrail). The trouble is that Penn Central's three trustees are not as eager to join Conrail as Congress believed they would be. They and Penn Central's major creditors feel that the reorganization act does not guarantee adequate monetary compensation. The assets of Penn Central would be exchanged for Conrail stocks and bonds, and the market value of these securities--unknown as yet -- may not match the assets' stated worth. PENN CENTRAL creditors have had additional reason to be edgy in recent months. In May the Securities and Exchange Commission charged former high officials of the railroad with participating in fraudulent activities prior to the bankruptcy proceeding in 1970. They were accused, among other things, of filing fal'e financial reports and diverting $4 million in corporate funds lo Europe. The SEC further alleged that fraud and deception occurred in connection with the merger in 1968 of the Pennsylvania and New York Central Railroads, Less than three years after the widely hailed merger was consummated, the Penn Central went bankrupt. TODAY, THE raiproad appears in even worse shape than it was in IS70. It has lost more than $1 billion since bankruptcy was declared. And it is estimated that.$l.l billion will be needed to restore the line to acceptable operating condition. The $1.1 billion porgram was outlined in a meeting last month of Penn Central officials, Transportation S e c r e t a r y Claude S. Brinegar and Federal railroad administrator John W. Ingram. Brinegar and Ingram were told that $600 million was required to repair and replace worn-out track and roadbed over an eight-year period. Tha cost of improving outdated terminals and installing safety equipment was pot at $527 million. Such a modernisation program is years overdue. Th« federal government has kn- postd an S m.p.h. speed Unit on about 1,500 miles of Mb- standard Penn Central track -. nearly one-half of Uw entire rail system. Even so, accidents arc ever more frequent. No icwer than 2,149 derailment* occurred on Penn Central Track ia the. first four months of tins year. as compared to around 1,1M in the comparable period of 1*73. And things may get worse, The Peon Central Co., Ik* holding company ttnt OTRB all ttw stock of the Pro Central Ban- road, warned it* shareholder* last November that it too may hav. to me for bankruptcy wv Ves» the railroad is reorganised or liquidated in a aatWac- tory maiMWT by the end of 1*74. With an thi* in mind, Jodge Fullam ia pondering hit decision. It obftootfr wffl Mt b* an easy one for him or for th» Penn Central.

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