Northwest Arkansas Times from Fayetteville, Arkansas on August 6, 1974 · Page 6
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August 6, 1974

Northwest Arkansas Times from Fayetteville, Arkansas · Page 6

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Fayetteville, Arkansas
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Tuesday, August 6, 1974
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NorthwMt ArkoiMQs TIMES, *vrrr«vn.ti, ARKANSAS Aug. 6, I9?4 Capital Market ^Structure Changing 4- ·J f By JOHN CUNN1FF Business Analyst KNEW YORK (AP) - U.S. capital markets usually operate smoothly, the result in part of federal regulations that assign to various customers a portion of the market and keep the big from submerging the small. Regulation Q, for example, permits the so-called thrift institutions -- the savings banks and savings and loan associations -- to offer 5,25 per cent interest on savings accounts, compared to 5 per cent for commercial banks. This is based on social considerations. The thrifts are assigned the role of financing Bousing, and it is considered socially desirable to have a flow of funds into mortgages. "Regulation Q also has the effect of limiting competition between the commercial and savings banks. If there were regulation, the commercial stitulions could outbid t h e ^nailer thrifts, and mortgage rates would be a lot higher tjian the 9.5 per cent average ttiat now prevails. 1 But now, and in spite of the regulations, the elephants and tlie mice find themselves in the T CITICORP WAS FIRST JThe inost obvious technique and thus is free of regulations, despite' efforts by the thrift in- litutions to have the Federal Reserve Board and the Secu- ities and Exchange Commis- iion clamp down. Heretofore, the big corpo- ·ations have never so openly .ought the type of funds they are now after, the savings of he "small people," the savings hat once were routinely'depos ted in passbook accounts. But corporations aren't the inly one's after those funds. Uncle Sam is in the market too, fferihg 9 per cent this week to ndividuals willing to put up a id le for getting around the lations is to offer notes regu at a high rate of interest nrid in small denominations. Citicorp parent of - the First Nationa City Bank, was the first to an nounce 'such plans, but man; other corporations might fol low. This capital-raising devici has never been used before Series I Bond Sales Said Best Since 1950 Total Series E Savings Bonds sales of $16,169,137 during the 'irst half of 1974 were up 4A Ser cent over last year and the jest since 1950, Charles D. Maynard, State Chairman for the Program, announced today. Total E and H sales of $16,904,737 for the six months were above 1973 by 4.4 per cent, the best since 1956, and represent 54.3 percent of the annual dollar goal' o f . $31.1 million. E sales of $2,353,997 for June were a 21 -year high, the exception of last year when about $17,000 more were reported. Total E and H purchases for the month were $2,415,997. minimum of $1,000 and leave it vith him for 33 months. The cause of course, is said jp be inflation; it produces a survival fight among those who need money. There s.implj aren't sufficient funds to satisfy all the needs of those caught in :he inflationary spiral. The Fed could remedy this by increasing the money supply, but it fears that in.so doing it will only encourage more of the same in a never-ending flight to economic destruction. And so it has imposed a limit. . That means a new method of allocating credit must be developed or else the most powerful borrow -- or at least the one willing to offer the highest rate for money -- will survive at the expense of the weak. The attitude of the Fed appears to favor the second course, and that means housing is likely to remain in its own depression for months to come. In the view of many analysts, it means that capital can be funneled into investments more productive than housing. Sales of Series and H Bonds of $636 million- during June were the highest since H Bond sales began in 1952; they were 14.4 per cent above June 1973. More E Bond ($608 million) were sold in June of this year than in any other June in 29 years. Sales exceeded redemptions at cost price for the ninth consecutive month. Total E and H sales for the sis-month period were $3,682 million, 4'/z per cent above 1973. Holdings of both series amounted to $61.9 billion on June 30; including Freedom Shares the total amount out- k r l l u l ^ o H l ^ l v * l u l c t l l l v u l l v w w l . i , - _ - . , standing climbed to a new high' The benate voted 25-6 last of $62.4 billion. - veek to oust Jones, who has Washington' County Savings Bonds chairman Robert Moore, reported sales of $56,227 in series E and H Savings Bonds during June 1974; $553,978 for Lhe first six months of the year, for 61.4 per cent of the county's annual goal. Sales for the first half of 1973 were $484,491. 'National Town Meeting' Lets Audience Quiz Newsmakers ' By JAY SHARBUTT f NEW YORK (AP) -- Hordes of tourists annually visit Washington, D.C., but few ever get to'query top newsmakers there, tfow, they've a great chance, if only they can find a seat at the city's "National Town Meeting." ' It's a weekly program, broad- east live by the National Public Radio system each Wednesday at 10:30 a.m:' EOT. It takes place at the .Eisenhower Theater in the Kennedy Center for the Performing Arts. ·I The show began slightly more tan IV! months ago. It tea- hires two national newsmakers 3t each show; they're briefly grilled by two journalists, then Further questioning jsyturned over to members of the studio This Wednesday, the guests are Andrew. Brimmer, governor of the Federal Reserve Board, and Rep, Henry Reuss, D-Wis. They'll discuss inflation and the economy. Immediate Reduction Not Seen Regulations May Lower PropanePrice WASHINGTON (API -- Arkansas Ally.' Gen. Jim Guy Tucker said Monday that the Federal Energy Administration las responded to an Arkansas awsuit over propane prices with new regulations that could ead to lower prices nationwide. However, Tucker said the new regulations would not cause an immediate reduction in 'propane prices to the consumer, and he said he still in:ended to proceed with the lawsuit. Tucker, who filed the suit against the FEA Monday morn- ing in U. S. District Court here, coir] a "b 10Ti.nl afoA TTT?A nffi. cial 1 a "high-placed FEA offi- called him Monday afternoon to explain the new rules. In the suit, Tucker alleged several violations of .the FEA Act of 1974 and the Emergency Petroleum Allocation Act of 1973. Tucker said the regulations had not been formally released by the FEA, although it was his understanding, he said, that the regulations were to have gone into effect immediately. One regulation would allow producers to pass on only the ncreased cost of c r u d e oil re- ted to propane production, ucker said. In the past, pro- ucers have passed on the en- re cost-increase for crude oil, egardless of what crude was used to make, be said. Bumpers Feels Court Will Not Intervene In Jones'Ouster LITTLE ROCK (AP) -- Gov. Dale Bumpers said Monday that he does not think any court will become involved in the state Senate's ouster of Guy H. "Mutt" Jones of Conway. Bumpers said that the Arkansas Senate is the sole judge of its members. seen convicted of federal in- ome tax charges. Bumpers also said he can't ee any relevance to the fact hat he was out of the state, eaving Lt. Gov. Bob Riley as acting governor, when Jones Rape Trial Begins At Lake Village LAKE VILLAGE, Ark. (AP) -- The trial of James Williams of Crossett, who has been charged with the rape and murder of Maudine Degges of near Crossett, will begin today at the Chicot'County Courthouse here. The t r i a l had been set for June 3. However, Circuit Court Judge G. B. Colvin granted a change of venue when the questioning of 34 prospective jurors failed to bring forth one person Button, who produces the without prior knowledge of the show aided by two assistants, ease ' says the first few programs | Williams was convicted of the audience. '. "National Town . .Meeting" drew an au'dience of 500; now it's twice that size, about 50 per cent of the audience are tourists and the rest area residents. He says they learn who is oh arid when in notices posted by Ihe National Park Service and Handbills distributed at congressional offices, the Kennedy Center, the Ford Theater and the Smithsonian Institution. The show is underwritten by the.Mobil-'Oil Corp., which estimates' it'll Have kicked in about $100,000 by the end of the yea charges in 1964, but a retrial was ordered by the Arkansas Supreme Court based. on a c h a r g e of alleged discrimination in the selection ol an all-white jury. Williams is black.. Williams had received the death penally in 1964 and was placed on death row at Tucker Intermediate Reformatory unti the late former Gov. Winthroi Rockefeller commuted all 'deatl sentences in Arkansas to life imprisonment. vas ousted. Bumpers was speaking in ioslon last Thursday when the Senate voted to expel Jones. Jones' law partner, Phil Station who says Jones will ake the Senate to court, ques ioned the legality · of Riley's iresiding over the Senate while le was acting governor. The Arkansas Constitution provides hat the governor cannot preside over the Senate. Bumpers said If Riley had not been notified of his absence in advance, that was an oversight. "1 don't know what possible Dearing who the presidirrg officer was that day would have on ;he Senate being the sole judge of the qualifications of its members," Bumpers said. Jones has also contended thai the Senate was not in legal session when it voted to expel him. The governor, however, dis agreed, but said he didn't wanl to comment further on that as pect of the case. "If Sen. Jones wants to ap peal it, certainly he shoulc lave that opportunity withou any extraneous comment from me," the governor added. Bumpers was asked whether lie thought the Jones ouster had removed a cloud that had been hanging' over the Senate since Jones' conviction in 1972. "I'think the senators them selves will feel that they haw done what a majority of tin people wanted them to do," h said. However, Bumpers said h would like to think that the sen ators cast their votes based on the law and the evidence. "I* like to think that each of the 2 senators voted the way he di because he felt the Cohstitutio would prohibit Sen. Jones from serving, and not because of th amount of. mail he may hav received." Bumpers said that he though the "legal arguments and th debate that surrounded th Jones ouster was a . ver healthy thing." Tucker first asked the FEA, for new pricing policies on propane in early 1974, and said he had only gotten action from the FEA when he filed a lawsuit or threatened to. He said he still didn't know Another new regulation pro- whether the FEA had ever ibits producers from selling.done any study in determining · ·-- ' " price policies i'or propane gas. le said he was told Monday by an FEA official that the only study the FEA had used in iricing propane was · one made by the Cost Of Living Council a year ago. Tucker said he had filed the At eight its, be said, the savings woufbe about $40 million per year.] : Tucker tid the retail price' of propaishould never have ;one abd 25 cents a gallon and that [had been as high as 40 centspefore prices were rolled bacTthe first time. tockpiled propane at pre-roll- ack prices, he said. The old regulation allowed le producers to sell the pro- ane they had on hand on Feb. -- ' " 1974, at the rice, but Tucker then-current said it re- any propane pro- that point on be uired that uced from old at the May 15, 1973 roll- ack price. He said that now all the pro- ane still on hand that was tockpiled on Feb. 1 must old at the May 15 price. be Witness Feels Used GAINESVILLE, Fla. (AP) -William Lemmer of'Texarkanj Ark. , who was the government's chief witness in the Gainesville Eight trial last year, feels he was used as a decoy by the prosecution anc then dropped. Lemmer, now an art director for a Dallas magazine, said in an interview that he wants to disassociate his name with the "government ethic" in the trial. . was dreamed up last spring by J'red Dutton, a lawyer, a wheel i(i national. Democratic party Circles, a- former aide to the ]£te President John F. Kennedy and a top adviser to Sen. George McGovern, D-S.D., during McGovern's 1972 presidential bid. r "It struck me that tourists can come to town and see monuments and museums, maybe the House or Senate if (hey're in session," said Dutton. "So why not some of the top newsmakers they hear ibout?" ] The program is moderated by John Charles Daly, 60, a veteran newsman who is.better recognized as the former host of ^What's My Line." / The lead-off show featured Sen. Sam Ervin Jr., D-N.C., jnd former New York police Commissioner Patrick Murphy. f 'Woman Injured I In Car Wreck i ', Sharon F. Carlisle, 20, of Route 7 is in fair condition at Washington Regional Medical Center following a one car accident late Saturday night at the intersetion of Rolling Hills Drive a n d O l d M i s s o u r i Road. · Fayetteville police said the woman was injured as she was {raveling east on Rolling Hills ·Drive and lost control of h e r Car. going into a ditch. Police Said the tie rod end, a part of the car's steering mechanism, came loose causing the accident. During the Month of August Baby Shoe Bronzing Another provision prohibits iffiliatcd entities from passing m costs among themselves, re- ulting in higher prices to the :onsumer when the actual cosl if producing the gas had not increased, Tucker said. Tucker said he did not know exactly how many of the seven ibjections he. registered in the awsuit would be met by the new regulations, but -that at east .three of his objections vere dealt with specifically. The attorney general also said propane cost increases, under the new rules, must be ased on what portion of a producer's business is propane and not what they produce in terms of other petroleum products as :he regulation had allowed :he past. He added that the other major part of the suit, which seeks :he information used by the FEA in setting propane prices be released to him, was not responded to Monday by ' the FEA. The suit said the refusal by the B'EA to release the information was a violation of the federal Freedom of Information Act. Tucker said it was ly outrageous" months after the fact, the FEA is admitting that right. "All that time, they allowet the Arkansas consumer to pay prices for propane that were too high," he said. because "propane prices just too high." He said stockpiles are twice what they were 18 months ago, but the cost of propane fuel to the consumer has risen 300 per cent in a year. He said II propane prices were reduced by a nickel, Arkansas consumers woult save about $25 million per year Prop about 32 said. in Arkansas costs a gallon now, he . Tucker Id the original regulations capriciousl The att filed the ' 'arbitrary and jy general said he iplaint Monday; to .., _____ try to enst an equitable price level betoj months cold winter saidpropane users and particularW low-income families and Hcultural users of propane vfe being penalized and forcedjo carry an unfair. share of t] additional cost of crude oil. OIL. I-A FID SCHOOL Save :- To Speak 25% · KENSETT, A r k . (AP) Rep. Wilbur D. Mills. D-Ark., and Judy Petty of Little Rock, his Republican congressional! Opponent, have been invited to 1 speak at a rally at Mills' home- j town on Aug. 15. j However, Mrs. Harley Harrison, chairman of the Petty for Congress Committee at Kensett, said Mrs. Petty had accepted but confirmation had not been received from Mills. . "The people in this area are becoming increasingly aware o! the issues in this race," Mrs. Harris said. "They particularly desire to hear Mr. Mills give full answers to questions Mrs Petty has raised about his cam paign contributions." ·XPIMT WATCH HEPAIH . » i I i / , / _ SWIFTS !TN«itJi MfwfcM. A bit of babyhood can be permanently yours . . . a precious personal treasure. Your baby's shoes richly preserved in solid metal with every crease, crinkle and scuff retained forever. Your choice of bookends, portrait stands and many other styles . . . Now At Great Savings. All styles in bronze, silver, gold, and gorgeous new "Pewter". Style 45 Portrait Stand Orig. 24.95 Portrait Stand, Style 45, [71 Bronze Prices Only: Orig. 22.95 Bookends, Style 50 17.21 Orig. 21.95 Oval Miniatures, Style 62 16.46 Orig. 12.95 Ashlray, Style 82 9.71 Orig. 14.95 Onyx Paperweight, Style 91 11.21 Orig. 6.95 Unmounted Shoe, Style 51 5.21 Other finishes slightly more. Come in and see what's new. SI) IE 51 SPECIAL ENGRAVING SERVICE . . , You can add your child's name and birthdate or any other sentiment for only 12c per letter. Sale Ends August 31 Open Monday Through Saturday Nights Until 9 We've been making gentlemen s whiskey in Kentucky since 1800. And everything we know has gone into Kentucky Beau. We took our time making it. Take your 86 Proof. 6 Years Old Kentucky Bsau Straight Boucbon Whiskey For The Soda Counter Set Boys' "Iron" Jeans and "Iron" Jackets by Mann Just what he needs for back to school.... "Iron" Jeans and matching jacket by Mann! Authentic western style in coffon/ nylon/polyester fabric with Permanent Press. Blue denim only. Jeans, 8 to 16 regular and slim....7.75 Husky Jeans, waist 28 to 36 9.00 Matching Jacket, 10 to 18 10.75 Boysr-DILLARD'S-First Floor Open Monday Through Saturday 10 a.m. Until 9 Personalized Football T-Shirte UP TO 9 LETTERS. . . _ . ,, FREE! A brand new shipment of the «h!rt that everybody wants! All pro football jersey for boys «nd girls in polyester and cotton with short sleeves, numerals front and back, and sleeves. Royal and red, brown and orange, red and gold, gold and blue, aqua and orange, black and gold. Small (6-8), Medium {10-12), Large (14-16), Extra Large (18-20).

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