Banner Graphic, Volume 10, Number 4, Greencastle, Putnam County, 7 September 1979 — Page 2

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The Putnam County Banner Graphic, September 7,1979

Chrysler losses expected to reachs7oomillion

DETROIT (AP) Chrysler Corp., gearing up to reveal its government bailout proposal, announced it will lose more than S7OO million this year, possibly the largest ever for a U.S. corporation. The loss announcement came Thursday as a financial journal said bank loans to the ailing No. 3 automaker are now considered “doubtful.” Chrysler said because of a three-week delay in 1980 model

Paired with rising inflation

Unemployment rate rises to six percent

WASHINGTON (AP) - The twin effects of recession and high inflation racked the economy in August as the unemployment rate rose to 6 percent the highest in more than a year and wholesale prices advanced by 1.2 percent, the government reported today. The Labor Department said the rise in unemployment from a 5.7 percent rate in July marked the first time that the jobless rate had been at the 6 percent level since July 1978. The Carter Administration had expected unemployment to rise in August as a result of the recession that began in the spring. Labor Department economist John Bregger said

Banner-Graphic "It Waves For All" (USPS 142-020) Consolidation of The Daily Banner Established 1850 The Herald The Daily Graphic Established 1883 Telephone 653-5151 Published twice each day except Sundays and Holidays by LuMar Newspapers, Inc. at 100 North Jackson St.. Greencastle. Indiana, 46135. Entered in the Post Office at Greencastle, Indiana, as 2nd class mail matter under Act of March 7,1878. Subscription Rates Per Week, by carrier $.85 Per Month, by motor route $3.70 Mail Subscription Rates R.R.in Rest of Rest of Putnam Co. Indiana U.S.A. 3 Months *8.75 9.50 *11.45 6 Months *17.50 *19.00 *22.90 1 Year *34.00 *37.00 *«5.75f Mail subscriptions payable in advance . . . not accepted in towns and where motor route service la available. Member of the Associated Press The Associated Press is entitled exclusively so the use for republication of all the local news printed in this newspaper.

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production and the S4OO rebates it used to sell its inventory of 1979 vehicles, pre-tax losses this year would top previous published estimates of “S6OO million to S7OO million”. Chrysler initiated the rebates to spur sales and pare its bulging inventories of larger models. The record for a year’s aftertax loss is now held by Singer Corp., which lost $452 million in 1975. Bethlehem Steel had a pre-

the latest jobless reports provides “very strong evidence of a downturn.” But inflation also continued to rage in August as prices at the wholesale level showed the biggest monthly advance since January, the department said in a separate report. The rise in wholesale prices was paced by another steep climb in the cost of energy products and the first increase in food prices since March. The government said wholesale prices at the stage just before goods reach consumers rose 11.1 percent during the previous 12 months. Inflation at the consumer level has been running slightly higher at a

Judy granted change of venue

INDIANAPOLIS (AP) Ste ven Judy has been granted a change of venue to move his robbery trial away from Indianapolis because of a discussion with prospective jurors in a totally unrelated case. Judy is charged with the Nov. 25 robbery of an Indianapolis convenience grocery, as well as the April murders of Terry Lee Chasteen and her three children The murders Judy allegedly committed were in Morgan County and that trial is to be in

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tax loss of s9ll million in 1977, but tax refunds from prior years cut that to $448.2 million. Chrysler has said such refunds will not be available to it under current tax law. Chrysler, which is to deliver its bailout proposal to U.S. Treasury Secretary G. William Miller in a few days, lost $207 million in the second quarter. In all of last year, it lost $205 million. The report on the down-

13 percent rate this year. Wholesale prices are an important measure of future inflation because they signal price trends likely to occur at the retail level a few months later The simultaneous release of the two gloomy economy reports underscored President Carter’s dilemma in trying to combat high inflation through tight fiscal policies while at the same time trying to keep from aggravating a recession that could mean high unemployment in the 1980 election year. The Labor Department said the number of unemployed people rose by 300,000 during August to 6.1 million, with most

Mooresville. Judy requested the venue change after prospective jurors in an unrelated murder trial recently were asked to discuss their feelings on the death penalty. Seven of them named Judy as a person who deserved to die if convicted. That trial was in the same court Judy was to be tried in on the robbery charge. Tfie change of venue was granted by Judge Patricia Gifford in Indianapolis criminal court Wednesday.

grading of the rating of Chrysler loans came from a daily banking newspaper, American Banker. The journal said the Federal Reserve Board had classified SSOO million in loans to Chrysler by banks around the country as “doubtful,” the lowest classification short of default. The Fed declined to comment on the report, which was attributed to an unidentified banking source.

of the increase resulting from factory layoffs. Total employment fell by 310,000 jobs in August to 96.9 million, the government said, following a rise of 450,000 jobs in July. Unemployment rates for virtually all major groups of workers based on age, sex and race increased last month. During the prior 12-month period, the unemployment rate had been remarkably stable, ranging from 5.9 percent to a five-year low of 5.6 percent reached in June. The government said employment has shown virtually no growth since March, The Labor Department gave

Cuba destination of hijacked plane ROME (AP) Gunmen hijacked an Alitalia jetliner carrying 172 passengers shortly after takeoff from Beirut, Lebanon, today, and ordered the pilot to fly to Cuba, Rome airport sources said. They said the plane was heading toward Nice, France, for a refueling stop. The sources said there were four gunmen aboard, but airport sources in Beirut said there were three. Alitalia spokesman Vincenzo Roversi told reporters in Rome the plane was a DC-8 on a flight from Tehran, Iran, to Rome with a stopover in Beirut. He said in addition to 172 passengers, the plane carried a cockpit crew of four and cabin attendants, the number of whom were not immediately available. Beirut Radio said the plane carried a total of 205 persons.

Stepping closer Kennedy family gives nod to Ted's presidential candidacy

By HEDRICK SMITH c. 1979 N.Y. Times News Service WASHINGTON - Sen. Edward M. Kennedy has moved a step closer to becoming a candidate for the 1980 Democratic Presidential nomination by letting it be known that, for the first time, his family has given its blessing to his running for president if he chooses to do so. Authoritative sources close to the Massachusetts Democrat said that he had ample time in the August Congressional recess to discuss the question with his wife, Joan, and his mother, Rose Kennedy, and that they had told him they no longer had objections to his making the race. Publicly, Kennedy made no change in his long-stated position: “I expect the

The Jefferson Township Volunteer Fire Department Thanks You! It takes a lot of community effort to have the annual August Firemen’s Fish Fry at Belle Union, Indiana. We want to thank everyone who helped in any way. Some of those to whom we especially want to express our thanks are the following: The South Putnam School Corporation and Dennis Goodpaster. Those who furnished land for parking: Gilbert Ogles, Freeman Goodpaster and the Hollingsworth Sisters. All those committees who contributed their joint time, talents and efforts and to all the workers for their many contributed hours. All those who furnished food, supplies, and materials. All those who furnished entertainment. The clowns who made things more enjoyable. The businesses, clubs and organizations in the Industrial Tent. All businesses and individuals who gave prizes for the Pick-A-Pocket show. The Putnam County Sheriff's Department. All the coverage we received from the Banner-Graphic, WJNZ, WIRE and WIBC. And, most of all, thanks to all the people who attended and made this annual Fish Fry a success.

American Banker said the action could force some statechartered banks toestablish reserves of up to 50 percent of their loans to Chrysler. In a cost-cutting gesture, Chrysler’s outside directors, the members of the board who are not company executives, voted to cut their base salary in half, from SIO,OOO a year to $5,000. Last week, Chairman John Riccardo and President Lee A.

these unemployment figures for various working groups compared with the July unemployment rates:

—Whites: 5.3 percent in August, up from 4.9 percent in July.

—Non-whites: 11 percent, up from 10.8 percent. —Full-time workers: 5.4 percent, up from 5.3 percent. —Adult men: 4.2 percent, up from 4.1 percent. —Adult women: 5.9 percent, up from 5.5 percent. —Teen-agers: 16.5 percent, up from 15.3 percent. -Non-white teen-agers: 30.7 percent, down from 30.9 percent.

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EDWARD M. KENNEDY Blessed

president to be renominated and I expect him to be reelected and I intend to support him.” Privately, his associates emphasized that Kennedy had still not made any final decision

lacocca cut their salaries to $1 a year from $360,000, and other cuts of 2 to 10 percent were imposed on some 1,700 executives. The executives could get the money about $3 million in all if Chrysler stock does well in the next two years, but there was no mention of repayment in the announcement about the directors. Chrysler said when it announced the executive pay cuts the action was important in per-

world

Missile deployment plan set

WASHINGTON (AP) - President Carter is ready to announce plans for a $33 billion deployment of 200 new MX mobile missiles around protected “racetrack” courses in the West, White House sources say. Although senior administration officials reached a basic consensus on the plan a month ago, a formal announcement planned today was delayed pending a final presidential decision as well as checks with

David spawns tornadoes

By FRED FERRETTI c. 1979 N.Y. Times News Service NEW YORK Spawning tornados as it moved up from the South, tropical storm David tore into the Northeast Thursday, killing at least eight people and leaving more than 2.5 million residents of the New York metropolitan area without electricity. The latest known fatalities attributed to the storm, which hit the U.S. mainland on Monday

to run. Nonetheless, the senator’s associates indicated that the decision to put out the word about his family’s feelings had moved him closer to making the race and was intended as a sign of encouragement to "draft Kennedy” movements in 19 states. Before Labor Day, proKennedy organizers in Florida, among others, had threatened to drop their effort unless given tangible encouragement from the senator about his political plans. His advisers told him he had to make some positive move. There had been reports in recent weeks that Rose Kennedy had lifted her objections. But friends of the senator said thathis wife had given her blessing only a few days ago.

Young reprimands African nations in Liberian speech

By SERGE SCHMEMANN Associated Press Writer MONROVIA, Liberia Andrew Young said he “raised holy hell” about America’s re fusal to deal with the PLO and that it is equally scandalous that Africa does not have dealings with Israel. Referring to his resignation as America’s U.N. ambassador last month after an unauthorized meeting in New York with a representative of the Palestine Liberation Organization, Young said Thursday: “I raised literally holy hell in my country because I do think that it is a scandal, that it a ridiculous policy that our country has no relations with the Palestinians that are effective. “But by the same token, I think that it’s equally scandalous that Africa does not have

suading the federal government it was serious about its plan. That plan was drawn up after federal officials said they would back loan guarantees of up to $750 million. In Washington, Miller said federal loan guarantees are the only way to help Chrysler avoid bankruptcy while still being fair to taxpayers. Miller said he expects to receive Chrysler’s plan within a few days.

governors and others in the affected states. The sources, who asked not to be identified, said Carter agreed with his advisers that the “racetrack” option would minimize disruption of the countryside while protecting the large new missiles from destruction should the Soviet Union ever launch a surprise attack. Carter decided in June to develop the 190,000-pound mis-

and has killed at least 16 people in the nation, were two children and a policeman who tried to rescue them as they were swept into a storm sewer in Woodbridge, N.J., Thursday. The storm whipped up already-higher-than-normal tides, forcing hundreds of people along the Eastern seaboard to abandon their homes. It also flooded major highways, disrupting commuter traffic, uprooted thousands of trees and toppled many power lines,

Since the assassinations of his brothers John and Robert in 1963 and 1968, family considerations have been a principal, if not overriding, obstacle to Kennedy’s seeking the presidency. According to friends, he has felt a deep sense of responsibility not only to his own children but to the 13 children of his brothers, to his mother’s fears of losing a third son to assassination, and to his wife’s reluctance to be involved, even peripherally, in a presidential campaign after her own publicly acknowledged problems with alcoholism. The senator and his wife have been living apart since she moved to Boston in the fall of 1977 to work toward a master’s degree in music and education at Lesley College. The couple

ANDREW YOUNG "Scandalous”

positive and progressive relationships with the state of Israel.” Most African nations broke relations with Israel in solidarity with Arab states after the

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G. WILLIAM MILLER The only way to help

siles, this country’s largest, but withheld a decision on how they would be moved and protected. The accepted option would place the missiles and thei 700,000-pound transporters on a series of surface roads, forming closed courses not unlike angular racetracks. Each “racetrack” would have a series of hardened, halfburied shelters, built on spur roads along the course.

disrupting electricity and telephone service. Numerous schools and businesses were forced to close. The savagery of the tropical storm took forecasters at the National Weather Service by surprise. Although they had expected it to strike the region, they had predicted that much of its force would be dissipated by the time it arrived and that heavy rain, rather than high winds, would be its most damaging aspect.

spent more time together this past month than at any time since their three-week trip to China in January 1978. They celebrated Mrs. Kennedy’s 43rd birthday last Sunday with a quiet family dinner in Hyannisport, with two of their children, Kara, 18 years old, and Patrick, 12. Afterward, a family friend remarked that “both Mrs. Kennedys are 0.K.” meaning that both had agreed to go along with a presidential campaign if the senator wanted to run. The principal political deterrent to his running, associates said, is his reluctance to challenge an incumbent Democratic president, which would open him to charges of splitting his own party and risking a Republican victory.

1973 Mideast war. Young spoke at a banquet in his honor hosted by E. Reginald Townsend, Liberia’s minister of state for presidential affairs. Liberian President William Tolbert, curent chairman of the Organization of African Unity, did not attend the banquet. However. Young indicated he will tell Tolbert when he meets him today and other African leaders he expects to meet during his current tour that they have a unique unifying role to play in the Middle East. Young is leading a delegation of 24 American businessmen on a 10-day trade mission to seven African countries. Young said the purpose of the mission is to try to redress the current imbalance in U S.-African trade.