Northwest Arkansas Times from Fayetteville, Arkansas on October 9, 1974 · Page 1
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October 9, 1974

Northwest Arkansas Times from Fayetteville, Arkansas · Page 1

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Fayetteville, Arkansas
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Wednesday, October 9, 1974
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INSIDt- Editorial 6 For Women ...-. 7 Sports 14.17 Comics ;j2 Classified ', 33.35 Amusements 3C 115th YEAR--NUMBER 117 Jlorthtoegt The Public Interest Is The First Concern Of This Newspaper fAYETTEVILLE, ARKANSAS, WEDNESDAY, OCTOBER 9, 1974 IOCAI FORECAST-" r Partly cloudy tonight a n d Thursday. Warmer daytime temperatures and cool at night. I/ws tonight in the upper 40s with highs Thursday in t h e mid 70s. Sunset today '7:33i Sunrise Thursday 7:19, Weather may on Page 25. PAGES-TEN CENTS In President's Anti-Inflation Program Higher Taxes, Energy Cuts Proposed WASHINGTON (AP) -- President Ford has challenged Congress and the public to accept higher taxes and less energy as part of an anti-inflation program that also includes jobs for the unemployed and sleppcd-up production to halt food price increases. Congress is showing itself willing to cooperate up to a point. Comments by many lawmak- ers indicated that the point at which many of them would balk is enactment of a 5 per cent surcharge on the tax lev- ted on incomes above $15,000 for a family and $7,500 for a single person. "I am aware that any proposal for new taxes just four weeks before a national election is -- to put it mildly -considered politically unwise .. .," Ford said Tuesday at a nationally televised and broadcast joint session of the House and Senate. "But I do say in all sincerity I will not play politics with America's future . . . This Is the acid test of our joint determination to whip inflation." Appealing over the heads of the lawmakers in the floodlit House chamber, ho asked his nationwide audience to "grow more, waste less .. . drive less, heat less .. . share with others." Congressional leaders moved fast on two measures Ford targeted for immediate action: a resolution to hold spending at $300 billion, $5 -billion under earlier estimates, and legislation he said would clear the way for the government to pour $3 billion into the ailing home market, enough for 100,000 homes, by buying conventional as well as government-insured mortgages. Leaders conferred on ways to cut procedural corners and send these two measures to Ford by Friday, the day Congress is scheduled to begin a month's campaigning recess. Some said they would consider postponing the recess, but plans were being made to avoid a postponement. Ford's longer-term program Congressmen Critical Of Surtax Plan WASHINGTON (AP) - Congressmen have indicated little support for President Ford's call on middle-income families to foot most of the bill for the fight against inflation. Although there was general praise for other Ford initiatives for relieving the depressec housing industry and spurring business investment, many Democrats and some Republicans were critical of the President's proposed 5 per cent sur tax on family incomes above $15,000. Senate Democratic Leader Mike Mansfield said the Presi dent's economic package is "a move in the right direction/ but is not comprehensive enough. He said be wished i had included wage and price controls and standby gasoline rationing. . Mansfield said he .would sup port the 5 per cent surtax pro - posal but hopes that the start ing point can be raised to in comes of $20,000 or $25,000 foi families and $15,000 for individ uals. Senate Republican Leadci Hugh Scott suggested the sur tax lake effect above the $20, 000. level; Republican Sen. Ja cob K. Javits of New York sug gested $25,000. House Speake Carl Albert urged a staggers surtax; Sen. Paul Fannin, R Ariz., ruled out the tax entirely until every effort is made ,ti cut federal spending. In an address In a joint ses sion of Congress Tuesday, FOK outlined the inflation-fighlin proposals that he said will re quire sacrifice by all Ameri cans. GRAND DESIGN At the center of what th President called his grand de sign was the suggested 5 pe cent levy on taxes paid on fam ily incomes above $15,000 year, on individual income above $7,500, a n d on corpo rations. The special tax on individual would bring in an estimate $2.6 billion of the $4.7 billip necessary to pay for public service jobs when the nationa unemployment rate exceeds per cent and for other anti-in flation programs. Sen. John C. Stcnnis, D-Miss and Sen. William Brock, R Tenn., pledged support, for th surtax. Other congressmen said the cannot justify further taxatio of middle-income families unt loopholes that allow th wealthy and the major oil com panies to avoid their fair shar of taxes are closed. Business leaders applaude (CONTINUED ON PAGE TWO) Attendance Drops BOSTON (AP) -- Attendant 1 at Boston's tense high schoo fell off today following raci violence during the fourth wee of court-ordered busing for d segregation. Although complete figuri were not immediately avai able, a School Departmei spokesman said, "It seems th attendances in the high schoo are down." Death Ride In A Balloon Mike Adams, right, and Mike Sparks, lift off in their liof- air balloon Tuesday at Salt- ley, England. Moments later, the balloon plunged 3,000 feet killing both men. The flight was to advertise f o r k 11 f t trucks. Cause of the crash remains unknown at this time. (AP Wirephoto) Public Service Jobs Proposed WASHINGTON (AP) -- Some vorkcrs apparently would have o be unemployed for a year to qualify for the new public jobs pi'oposed by President Ford. Ford recommended Tuesday hat Congress create a new 'ommunity I m p r o v e m e n t 2orps to provide public service jobs when unemployment exceeds C per cent nationally. But the President specified that to be eligible for a public service job, an individual first would have to exhaust all unemployment benefits. The President also recommended an extra 13 weeks of NEWS BRICFS School Dynamited CHARLESTON. W.Va. (AP) -- A dynamite blast damaged a rural elementary school today and another building was slightly damaged by fire in the wake of the jailing of a minis- er protesting against textbooks, state police reported. The .Wet Branch Elementary School in Kanawha County suf- 'ered moderate damage from he explosion. The explosive lad been placed at the entrance of the building. Vandalism Reported Vandalism at the home of Bill Bartholomew of Route '1 was reported to the Washington County Sheriff's office Tuesday. Bartholomew told deputies that someone had broken a sliding glass door on the. back porch of the house, burned the plastic lawn chairs on the porcli and broken a window out of his garage door. He said that the vandalism occurred between 8 a.m. and 5:30 p.m. while he was at work. , Extra IRS Audits DURHAM, N.C. (AP) -- In- ,ernal Revenue Service Commissioner Donald C. Alexander says, the IRS will assign more than 3,000 extra employes to audit income tax returns next year. Alexander told law students at Duke University Monday that 2,2 million returns were audited this- year, an increase of 417,000 over last year, and that the IRS expects 83 million individual returns next year. He said each will at least be scanned by an IRS employe. Charges Filed Lynn M a r t h a Cox of Springdalc was charged with forgery in Washington Circuil Court Tuesday. Mrs. Cox, who pleaded innocent, was charged for the Aug. 24 incident in which she allegedly passed a $43 check to Farmer's Warehouse Marke under a false name, The check was drawn on First Naliona: Bank of Springdale. Grave Consequences Seen Senate Urged Not To Cut Oil Turkish Aid WASHINGTON (AP) - U.S. officials warn of possible grave consequences for the United States and the North Atlantic Alliance it the Senate votes to cut off military aid to Turkey. President Ford stopped short of threatening a veto as he attacked the cutoff move, already approved by the House, as "a misguided and extremely harmful measure." The Senate takes up the issue today. But some administration officials indicated they believed Ford might use the veto, even though such action would mean rejection of a resolution continuing other foreign aid programs. The Turkey aid halt was at- tached to that resolution as an amendment that would require! Ford to certify "substantial progress" toward negotiating a Cyprus settlement before aid could be resumed. Assessing the implications for the United Stales and NATO if Congress should force a break in military aid to Turkey, officials listed these possible results: --Turkey might pull its armed forces out of NATO, as Greece did in anger over what it considered a U.S. tilt toward Turkey during the summer crisis over Cyprus. --The entire eastern flank of NATO would then be in danger of crumbling. --Turkey might deny the United States and NATO use o important bases on its soil. --U.S. military transport that fly through Turkish air space en route to destination in the Middle East and else where might have to be re routed. --The Turks might decide t shuck all restraints on th growing of opium-producin poppies, which the Unite Slates has been trying to per suade the Ankara governmen to curb in order to inhibit th drug traffic. --Efforts to work out peaceful diplomatic settlemen of the Greek-Turkish disput over Cyprus would be dis ruptcd, raising the danger of new flare-up of fighting. pecial unemployment insur- nce benefits for those who ave used up their credits and 3 weeks of benefits for those ot now covered by a regular nemployment insurance pro- ram. The proposal indicates that ome workers would have to go 'ithout work for - up to 12 months before they can apply or public jobs because the new nemployment insurance will xtend maximum benefits up to 2 weeks for experienced work- rs. In general, the combined late and federal programs now provide jobless benefits up to 39 veeks, ranging from $50 to $109 veekly. FORD PLAN The public jobs that Ford roposed would pay no less han $80 a week and no more nan $134.80 a week, assuming hey were for a 40-hour week. Under the Ford plan, state nd local governments woulc receive up to $2.2 billion to pay or the creation of 374,000 pub ic service jobs for such projects as conservation, community beautification. and the inv irovement and expansion ol lealth, education and recrea^ ,ion services. The money would be in addi ion to $1 billion already dis .ributed, which the adminis :ration estimates will provide 170,090 jobs this winter. The nation's uncmploymen rate climbed to 5.8 per cent o the work force in September with an estimated 5.3 million Americans out of work, the La Department reported las week. According to Ford's proposal the federal government woulc provide $500 million to pay fo 83,000 more jtfbs if the unem ployment rale reaches, fo three consecutive' months, a average of 6 per cent; anothe $750 million for 125,000 jobs if i reaches 6.5 per cent; and a additional $1 billion for 166,00 jobs at 7 per cent. Nixon's Taxes SAN C L E M E N T E, Calif (AP) -- Richard M. Nixon wil have to pay $37,300 in propert taxes this year on his forme Western White House com pound, lip 12 per cent from las year, the county tax coltecto says. Orange County Tax Collecto Robert Citron said Tuesda that when Nixon receives hi assessment - for the San Cle mente estate in the mail nex week he'll find an increase i the valuation from $1-37 millio to $1.53 million. The program would go inf ffect automatically in local la or markets with high unem loyment even if the nationa verage remained below 6 pe ent. Grants for Jobs would b iggered when local rates ex ceded 6.5 per cent. Food Prices To Stay Up WASHINGTON (AP) - Eve President Ford delivers t armors all he promised in h conomlc message to Congres he deck is stacked against sut tantial food price relief to con umers before 1976. Ford said soaring food an energy prices are "primary in lationary factors" and noEc he country depends in part o oreign suppply for oil. "But we can grow more tha mough food for ourselves i'ord said. "To halt higher foo irices, we must produce mor "ood." Ford promised that the go ernment would do all it could assure farmers they can se what they grow at "reasonab prices" and pledged muscle sec they get enough fuel an "ertilizer to do the job. But he could not promi clear skies next April and Ma when farmers want to pi a corn and soybeans. He cou not pledge an essential h (CONTINUED ON PAGE TWO) nged over the issues of taxes, od production, employment, icrgy, capital building and ice-raising practices both of e government and the private ctor. T h e proposed surcharge ould appy to corporate in- ·me and to private incomes ove the specified levels. An dividual taxpayer would com- utc his tax in the usual way add 5 per cent to the tax that part of his income love the specified levels -,500 for a single person and 5,000 for a couple. The surcharge would be in ef- ct for a year only and Ford aid, "I would not ask this if ajor loopholes were -not being nsed by the.Ways and Means ax Reform Bill." Some congressmen said the ersonal income surcharge had o chance, others that increas g public concern on inflation ight put it over, and many : at it could be enacted if the acome floor were raised to 0,000, $25,000 or some higher gure. He said'the tax measures be seeking would raise an esli- lated $5 'oillion, which "should ay for all the new programs 1 ave recommended in this mes- ;e." aying that low-and middle- come Americans have been ard hit by inflation, Ford dded, "The tax refform bill ow in the House Committee on 'ays and · Means, which I fa- or, already provides approxi- nately $1.6 billion of tax relief these groups." CHIEF PROVISIONS Principal provisions, of the ommittee bill that favor low nd middle income taxpayers elate to standard deductions sed by those who ,do not item- zc on their tax returns. At present, a taxpayer may akc a standard deduction of 15 ier cent of income up to a top [eduction of $2,000. The bil vould increase the percentag o 17 and the ceiling to $2,500. To help low income tax ayers, there is in present la' also a provision for a flat de duction of $1,300 anyone ma ake, regardless of what per centage of income this is. Th bill would raise the deductio o $1,400 for single taxpayer and $1,500 for couples. "To halt higher food prices ve must produce more food,' Ford said. He asked Congres remove acreage limitation on rice, peanuts and cotton an said he would allocate to farm ers all the fuel and seek authoi ty to allocate all the fertilize hey need. Chairman W.R. Poage, D Tex., of the House Agricultur ommittee, however, said tha vithout more assurances o rofit Ford's measures woul not do the job. Ford said marketing order and other regulations wcr )eing reviewed to end change those responsible for in lated prices. He proposed extended specia unemployment benefits an creation of a temporary Com munity Improvement Corp that would go into action whe national unemployment ex ceeded 6 per cent, providin 'short-term useful work pro ects to improve, beautify an enhance the environment of on cities, towns and countryside." ON ENERGY On energy. Ford told Con gress, "If you've forgotten th shortages of last winter, mos Americans have not." He called on Congress fo dc regulate natural gas price open up Navy oil reserves i California and Alaska, modil environmental strictures on us of fuel and pass surface minir legislation balancing consider^ lions of supply with enviro mental protection. He also announced creatio of a National Energy Boar headed by Interior Secrctar Rogers C.B. Morton, to develo a national energy prograi: with instructions to reduce ir .CONTINUED ON PAGE TWO (AP Wirephoto) AFTER ANTI-INFLATION SPEECH .. .Ford is accompanied by leaders of the House and Senate Ford Promises To Enforce Nation's Anti-Trust Laws WASHINGTON (AP) - utchers, bakers and zipper- akers already are feeling eat from the Ford admipis- ation's campaign against rice-fixing. Future targets ay face tougher treatment nd .million-dollar fines. 'Gas f Mileage ike Sought WASHINGTON (AP) - I President Ford gels his waj automobiles will carry thei passengers 1 an average of fiv niles farther on a gallon o ;asoline In 1978 than they now. Outlining energy policies Tuesday in a wide-ranging eco nomic address' to Congress, th President said he will person ally meet with auto industr; ,op management to seek a 4 per cent improvement in gaso ine mileage within four years. That pledge elevates the ad ministration's effort. from the agency level -- Federal Energy Administrator John C. Sav/liil las been after the auto maker since last summer -- to the presidential level. And Ford added that hi would go after the mileage im provement "either ' by agree ment or by law," a warnin? :hat he might seek somethin, like a horsepower tax or mandatory fuel-economy stanc ard for automobiles if aut makers don't cooperate volun arily. Automobiles in (he Unitei States now deliver an averag of around 13 miles per gallon Ford's goal'Would raise the av erage to about 18 miles per ga' Ion, probably through a com bination of new engine design and a - higher proportion o small cars. The President made no est male as to the savings in gaso line which might accrue froi increased mileage. Summit Planned WASHINGTON (AP) - Ten tative plans are being made fo a meeting between Presiden Ford and Soviet Communis Party Leader Leonid T. Brezl nev late this year, senior U.S officials said today. They said, however, plans fo such a meeting have not bee firmed up. President Ford gave the at- ack fresh impetus Tuesday 'hen he promised stern en- orcement of anti-trust laws and. sked Congress for harsh pen- Ities for violators. No President since Harry S. rurnan has taken such a :rong public stand against ille- al corporate conspiracies, said overnment anti-trust lawyers. The administration attack is designed to end business prac- iccs which . diminish competition and force prices up lor he consumer. Assistant Ally. Gen. Thomas G. Kauper, head of the Justice Department's anti-trust division, has estimated that such practices cost Americans as much as $80 million a year. DETERMINED 'I am determined to return to the vigorous enforcement of anti-trust laws," Ford said 1 -as be sent Congress proposed legislation raising the maximum fine for anti-trust violators from. $50,000 to $1 million for corporations and $100,000 for individuals. With his statement, Ford took up an attack which has been gaining momentum in the department and the Federal Trade Commission. / Though he endorsed its 'key elements. Ford said nothing about Atty. Gen. William B. Saxbe's plea for stiffer prison sentences as well as fines for corporate conspirators. Saxbe called F r i d a y for legislation raising the maximum prison term for price fixing from one year to five years. Ford's written proposals for tougher fines were sent immediately to Congress where a House' committee earlier in the day approved legislation setting the maximum corporate fine at half the amount Ford asked. The 'bill sets the individual fine at $100,000, as the President requested. Greek Caretakers ATHENS, Greece (AP); -Premier Constantine Cara- manlis today swore in a caretaker government that will stage Greece's first .elections in more than a decade. The elections arc set for Nov. 17 and are to be followed within 15 days oy a referendum! on whether to return the monarchy. The 19-man interim cabinet is expected to act quickly to lift martial law, which has bceri in force since 1967 when the army seized power and suspended parliamentary rule. In Exchange For Safe Conduct Terrorists To Free Hostages SANTO DOMINGO, Dominican Republic (AP) -- The American ambassador says six leftist terrorists have agreed to release.-'he hostages they have held foV. ",days in the Venezuelan cofiJ^'ve in exchange for safe condWC'OUt of the Dominican Republic. 'We are now negotiating final details and we cannot say how long this will take," Ambassador Robert Hurwitch told newsmen Tuesday evening. Hurwitch said he did not know where the terrorists would choose to' fly or what country would agree to receive them. There was speculation they would f l y to Mexico, Peru or Algeria. The announcement came less than 24 hours after Dominican President Joaquin Balaguer made a "(inal, definitive and irretractable" offer to guarantee the safe passage of the terrorists if they release the seven hostages. Until then, the government had refused to negotiate and demanded the unconditional surrender of the gunmen. On Sept. 27, the terrorists kidnaped Barbara A. Hutchison, 47, the head of the U.S. Information Service here, and look her from outside her office to the consulate. There they captured two Venezuelan consuls, two office workers, a Spanish priest and a Dominican messenger and holed up with the group on the second floor. The original demands included $1 million in cash and the release of 37 political prisoners, but the cash demand was dropped and the prisoner list reduced last week. In the end. the terrorists apparently abandoned all their demands except for safe conduct. Hurwilch talked to newsmen after he, the Spanish ambassa dor and the Venezuelan charge d'affaires conferred with na ional police chief Gen. Rafael Guzman Acosfa and rebel chief Hadhames Mendez Vargas. The American ambassador- said, "I talked to Barbara Hutchison about 10 minutes ago (oy telephone) and she was, of course, very happy about the situation." He called her "an exemplary official who has been just great." Mendez, 32, the leader of tha terrorists, claims membership in the "Jan. 12 Movement," a small, pro-Communist guerrilla group. Six months before the siege Mendez was released from jail after serving four, years for hijacking an airliner,

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