Banner Graphic, Volume 5, Number 295, Greencastle, Putnam County, 14 February 1975 — Page 5

FEA cites importation tax need

WASHINGTON (AP) - Without a special tax on imported oil, President Ford’s fuel-conservation program would be virtually fruitless over the next three years, Federal Energy Administration officials said Thursday. Testifying before the Senate Interior Committee, FEA chief Frank G. Zarb and his deputy, Eric Zausner, said the President’s $3-per-barrel tax on foreign oil is the only hope for an immediate reduction in fuel consumption. Sen. Floyd Haskell, D-Colo., asked the FEA officials to give some specifics on how Ford’s

Conservatives-Evans for third party

WASHINGTON (AP) - The chairman of the American Conservative Union Thursday night called for a third party but a leading Republican congressman argued instead for a realignment of the two present political parties; M. Stanton Evans, ACU chairman and editor of the Indianapolis News, said the Republican party has failed to resolve the discontent of the

Kissinger: talks fruitful, positive ’

JERUSALEM (AP) - Secretary of State Henry A. Kissinger moves on to Jordan today after talks with Israeli leaders that he said were “fruitful and positive.” A senior U.S. official in the secretary’s party said there still was only a 50-50 chance he can negotiate another Israeli troop withdrawal in the Sinai desert. Kissinger told newsmen Thursday night his four days of talks with Premier Yitzhak Rabin of Israel and President Anwar Sadat of Egypt had not

Factories, mines at 3.6 reduction

WASHINGTON (AP) - The nation’s factories, mines and utilities reduced their output by 3.6 per cent last month, the worst such showing since the Depression era, government figures show Industrial-output statistics released Thursday by the Federal Reserve Board showed that the downturn extended across the economy, with declines posted in autos, consumer goods, business equipment and industrial materials. It was the sharpest onemonth

Hills confirmation seen as struggle

WASHINGTON (AP) - Confirmation of Carla A. Hills as secretary of Housing and Urban Development appears to face the biggest struggle of any of President Ford’s four Cabinet nominees. “The real stumbling block remains her total lack of experience in housing,” said Sen. William Proxmire, D-Wis. Spokesmen for cities, mayors and homebuilders groups ex-

ERA dead; Demo tax bills move to House

INDIANAPOLIS (AP)-The last of Democrats’ tax bills were on their way to the House floor today. And the controversial Equal Rights Amendment was dead as the 99th Indiana General Assembly reached the mid-point of its 1975 session. The ERA, which passed the House earlier, died Thursday without reaching the Senate floor, where its chances for survival were almost nil, anyway. The Repblican-controlled Governmental Affairs Committee voted 8-5 to kill it, and Senate sponsor Thomas J. Teague, DAnderson, said there would be no effort to revive it. The House Ways and Means Committee, meanwhile, finished work on the Democratic tax package and prepared to start in earnest next week on the state budget. The last two bills would re-

program, based on sharp increases in fuel prices, would save energy. Zausner pointed to two specific actions in Ford’s programs: increasing the efficiency of automobile engines by 40 per cent by 1980, and providing incentives for reducing the heat loss from homes and other buildings. “But what about 1975?” asked Haskell. “I’m not interested in 1980. All I can see are some nice, vague goals.” Zausner conceded the efforts to cut automobile fuel consumption and improve the heating efficiency of biddings would save only a few hundred

American people. “The two major parties have become indistinguishable” Evans said during an interview on the public television news program, Martin Agronsky Evening Edition. Evans said he personally believes former California Gov. Ronald Reagan should head a third party’s presidential ticket and Alabama Gov. George Wallace should be his running

produced “concrete proposals, plans or (new cease-fire) lines, but rather a continuation of the considerations that were part of my exploratory mission.” The secretary of state ahd his aides said all along that the purpose of the trip was to clarify the demands of the two governments and determine if another* Jerusalem-to-Cairo mediation shuttle might produce an agreement. Kissinger apparently thinks now that it might since he has announced that he is returning to the area around March 10.

drop since December 1937, when the output index plummeted by 8.9 per cent, and followed a 3.1 per cent decline in December 1974. The index now has declined by 9.5 per cent since last September and stands at 113.7 per cent of the 1967 base level. In other economic and energydevelopments Thursday: —lnterior Secretary- Rogers C.B. Morton said in a Miami interview that President Ford’s energy program will increase the price of gasoline by as much as 20 cents a gallon at the

pressed the same criticism after President Ford nominated Mrs. Hills on Thursday. Proxmire, chairman of the Senate Banking Committee, said her confirmation would be easier to predict if she promises she would fight for governmentassisted housing and that the administration would push the program. However, Ruth Clusen, presi-

peal the sales tax on gasoline and other motor fuels, replacing it with a two cent a gallon excise tax increase, and take a bigger bite of business taxes for police and firemen pensions. The sales tax-excise tax swap, HB2IOI, which would be effective July 1, was recommended for passage by unanimous vote. The business tax measure, HBI2OI, advanced despite opposition from all committee Republicans and one Democrat, budget subcommittee chairman Richard D. Bell of LaPorte. Both bills were designed to serve several purposes. The gasoline tax measure would provide more money for highway needs, actually save consumers money eventually as gasoline prices increase and solve a constitutional dilemma of applying the sales tax to gasoline excise taxes the so-

thousand barrels of fuel per day in 1975, 1976 and 1977. Zarb interrupted to say the $3 special tax on foreign oil would save two million barrels of oil per day by the end of 1977.

mate. Rep. Robert E; Bauman, RMd., told a political action conference sponsored by the American Conservative Union and Young Americans for Freedom that this nation does not need a third party. But, he said, “it badly needs a second party.” / He told a banquet meeting that kicked off the four-day conference “what is needed is a

The senior U.S. official said that on the next trip, Kissinger would go first to Cairo to Work out details of a sizable Israeli pullback in exchange for moves by Egypt toward acceptance of the Jewish state. However, well-informed Israeli sources said only a limited agreement might result, with Israeli troops pulling back to but not behind the Mitla and Gidi passes in exchange for an 18-month extension in the life of the United Nations peacekeeping force between the Israeli and Egyptian ar-

pump, compared to the administration’s previous estimates of 10 cents a gallon. He predicted the price will start rising in Apr 1 and reach 70 to 75 cents a gallon by July, going higher still if Ford’s planned tariff on imported oil reaches $3 a barrel. —ln a New York speech to securities analysts, Ford said the $52 billion budget deficit he has projected for the next fiscal year can be financed. But he said he couldn’t make the same promise if Congress adds to the deficit, and he criticized the

dent of the League of Women Voters, said criticism of her inexperience in housing may be a smokescreen for some Ford opponents “to Say some other things about the administration policy.... I’m sorry it’s being tied to this.” Women’s groups expressed joy at the nomination. If confirmed, Mrs. Hills would be the third woman to hold a Cabinet post in the nation's history. The

called “tax on a tax.” It also would mean that for the first time since the original 2 per cent sales tax was enacted in 1963, the full price would show on a service station pump. The pump price, including state and federal excise taxes, now does not include the sales tax, which is figured separately. Wholesalers would pay the excise taxes to the state, and retailers would be relieved of responsibility for collecting the sales tax. This would eliminate the possibility of a service station operator failing to report some taxable sales and keeping the money that should go to the state, a practice often suspected but never proven by some state officials. The other bill would halt the phase-out of the corporate gross tax at the end of this year and simultaneously stop the phase-in of a supplemental net

“But economists say this would cause an economic disaster,” Haskell said, “and nobody knows that it’s going to work.” Zausner said the nation’s ex-

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basic realignment of the two political parties and an end to politics as usual.” He said: “Today we are confronted With an administration which in a short six months has frittered away potential national support by adopting policies of amnesty for draft dodgers and deserters, the biggest budget deficit in peacetime history, relentless pushing of detente, and a succession of presi-

mies. Egypt’s minimum demand has been the return of the two passes, which are the gateways to the central Sinai, and also the Abu Rudeis oil fields in the southwest Sinai. Rabin said this week Israel would not give up the passes unless Egypt canceled the State of war it has maintained against the Jewish state since 1948. Sadat told a British interviewer that could be done only as part of a final peace settlement. But U.S. officials said Sadat accepts the idea that he

House and Senate for inaction on his programs. —The Labor Department reported that unemployment lines continued to grow late in January as nearly 750,000 more Americans applied for jobless benefits in the week ended Feb. 1. The figure was 8,000 higher than had signed up the previous week. —Despite increased sales for certain models promoted in a price-rebate program, over-all car sales for the first 10 days of

others were Frances Perkins, President Franklin D. Roosevelt’s Secretary of labor from 1933 to 1945, and Oveta Culp Hobby, President Dwight D. Eisenhower’s secretary of health, education and welfare from 1953 to 1955. Mrs. Hills, 41, is an assistant attorney general who now heads the Justice Department’s Civil Division.

income tax designed two years ago to replace the gross. The money would be used to give cities and towns up to S2O million a year for police and firemen pensions and services, with any excess going into the state general fund. Ways and Means chairman Spencer J. Schnaitter, D-Madi-son, said that would free local revenues for other purposes and also tend to equalize the tax burden between individuals and businesses a top Democratic priority this year. Rep. Stephen T. Poinsatte, DFort Wayne, an automobile dealer, said the gasoline tax shift could cost the state up to $7.6 million in the next biennium, based on gasoline costing 58 cents a gallon the next fiscal year. The excise tax would increase to 10 cents a gallon. But that would be balanced by re-

perience with the oil embargo in 1973 and 1974 clearly indicates that a price increase will result in less consumption of fuels, especially gasoline.

dential appointments culminating to the high office of vice president of the single most unacceptable nominee one might contemplate Nelson Rockefeller.” He asked the 500 conferees “is this what we are to stand and fight and die for in elections to come?” But, he emphasized, “what we do not need are new splinter groups which cannot win votes

must make some tangible concessions in return for an Israeli withdrawal. On his way back to Jerusalem from Cairo Thursday, Kissinger met in Damascus for five hours with President Hafez Assad of Syria. Kissinger said they talked about details of a just and lasting peace in the Middle East and Syria’s “indispensable” role in any final settlement. A Syrian spokesman said relations between the United States and Syria also were discussed but gave no details.

February dipped to a 13-year low, the four major U.S. auto makers said. They said the 138,108 deliveries were 5.1 per cent below the same period of 1974, when the gasoline shortage was at its peak. —Alan Greenspan, chairman of the President’s Council of Economic Advisers, told the Senate Appropriations Committee he saw “definite and quite hopeful signs” of a decline in the inflation rate. He said the softening was detected in both farm and industrial prices.

Proxmire said in an interview, “It seems to me she might be qualified for the Supreme Court or for attorney general but she has absolutely no background in housing. “And a housing advocate is needed in HUD, secure enough and independent enough to go to the President and convince him his present policies are wrong,” Proxmire said.

moving the sales tax of four cents for every $1 purchase roughly two gallons of gasoline. At 50 cents a gallon, the change would make no difference in what a motorist paid for gasoline. As the price climbs, though, the bill actually would go down for motorists. For 20 gallons at 60 cents a gallon, the difference would be eight cents with the sales ax and $12.40 with the higher excise tax. The savings would be greater at 80 cents a gallon same 20-gallon purchase. Half the extra two cents excise tax would go each year into the property tax relief fund. The other half would go initially to the state general fund and then be phased into the motor vehicle highway fund starting in January 1977.

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Standing as a reminder of what once was is this old house near Belle Union. The house stands with the door open as if waiting for residents who have long since

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Studying up for their trip to Girls’ State this summer are South Putnam representatives Jana Cable, left, junior, Fillmore and Sondra Badger, junior, Route 2, Greencastle. Alternates for the state program are Marcia West, Fillmore

Brezhnev back in limelight despite rumors of illness

MOSCOW (AP) - Leonid I. Brezhnev is back in the limelight,' apparently as vigorous and ebullient as ever despite rumors of illness during his seven weeks out of the spotlight. The Communist party chief did most of the talking during a 2V2-hour meeting Thursday with British Prime Minister Harold Wilson, showed no fatigue and appeared in smiling good health, British sources reported. Brezhnev strode into a Krem-

Meteorologist says tornado activity moving toward Indiana, Kentucky

LOUISVILLE, Ky. (AP) - A nationally known meterologist says the center of tornado activity in the United States seems to be moving eastward toward Indiana and Kentucky. Dr. T. T. Fugita, a meteorology professor at the University of Chicago, says his calculations show an increasing

Gradison ‘walking ’ in opposition to planned Red River Dam in Kentucky

CINCINNATI, Ohio (AP)U.S. Rep. Willis D. Gradison Jr., who walked nearly all of Ohio’s Ist District last November in his successful election campaign against incumbent Democrat Thomas A. Luken, is walking again. Only this time he’s on the move about 100 miles from home. The freshman Republican congressman from Cincinnati has become the focal point in an effort to prevent a dam from being erected at the Red River Gorge in Kentucky. . Saturday, nearly 500 people are expected to gather at the site in an effort to focus attention on what plans have ahv^dy

Old house

left Other structures like this one can be found over the county countryside. (Banner-Graphic Photo).

Girl’s state

and Tammy Phillips, Fillmore. Miss Cable plans to major in business in college with Miss Phillips majoring in nursing. (Banner-Graphic Photo by Chuck Wanager.).

lin reception hali to greet Wilson, laughed and exchanged quips with his guest and allowed photographers seven minutes of picture-taking, an unusually long session. “It is very good to see you,” Wilson said. “Were you resting?” “I’ll tell you later,” Brezhnev replied with a smile and a wave of his hand. “Smoking is one of my faults,” he told Wilson as he lit up a cigarette. Brezhnev is a chain smoker, and one of the

frequency of tornadoes east of the old “tornado belt” centering on Oklahoma and Kansas. “People in your area should get a better knowledge of tornadoes a knowledge that people in states west of the Mississippi now have,” he said. Fugita was in Louisville

been made and if they need to be changed. Gradison became an active leader when he discovered there was no one else in Congress ready to take the job. “There are a lot of people in Kentucky who staked out their positions before the facts were known,” Gradison said. “There are some people who are on record as being for the dam, who might be able to get off the hook if citizens showed they were opposed to it.” The Army Corps of Engineers had gone as far as making initial preparations to buy up land for the dam, and Congress had passed initial appropriations before several delays halted

THE PUTNAM COUNTY BANNER-GRAPHIC. FEB. 14/ IJ/1975

rumors during fas absence was that he was suffering from a respiratory ailment. The evening TV news programs concentrated on closeups of the jovial Brezhnev. The Kremlin chief’s last official appearance was at a session of the Russian parliament in Moscow on Dec. 24. HE HAD BEEN REPORTED IN BED WITH INFLUENZA DURING November.

Thursday studying the remaining scars left by tornadoes last April 3. He and his associates have flown about 10,000 miles to take some 3,000 aerial photographs of damage caused by the twisters in Kentucky and Southern Indiana.

construction. Gradison was able to obtain a 45-day halt from Secretary of the Army Howard Callaway while the results of a Generl Accounting Office study is evaluated. “I believe the report is going to raise serious questions about the building of this dam,” Gradison said. Callaway has declined Gradison’s invitation to join the daylong walk of the site, and several Army Corps of Engineers officers will make the trip. Kentucky Gov. Julian Carroll has also been invited, but has not responded yet, according to Gradison,

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