Banner Graphic, Volume 10, Number 168, Greencastle, Putnam County, 20 March 1980 — Page 2

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The Putnam County Banner Graphic, March 20,1980

Budget panel tentatively approves $2.6 billion cut

WASHINGTON (AP) - House budget writers appear on track toward recommending the first balanced federal budget in 12 yeara, but hard decisions over spending cuts are still ahead. In its first day of work on the 1981 budget Wednesday, the House Budget Committee tentatively approved cutting $2.6 billion from the budget originally proposed by President Carter in January. Little opposition appeared to be emerging to the revised budget proposed by Rep Robert N. Giaimo, DConn., the committee chairman. The committee was to resume

Venting proposal protested MIDDLETOWN, Pa. (AP) - Hundreds of area residents, angered and frightened at a proposal to release radioactive gases from the Three Mile Island nuclear plant, screamed curses at federal officials who came to tell them any exposure would be minuscule. “We hate your guts!” one woman shouted. “You’re an animal!” another woman screamed at a biologist. “Take the message home to Washington: There shall be no peace in Middletown,” Steve Reed, a state legislator and Dauphin County commissioner, told officials of the Nuclear Regulatory Commission. / The NRC called the meeting Wednesday to explain a staff that some -krypton gas be released into the atmosphere so cleanup operations can proceed at the plant, site of the worst accident •!in commercial nuclear history. Final action on the recommendation could come early next month. Five hundred persons jammed the fire hall for the meeting, which NRC site operations chief John Collins said was by far the most hostile he had seen since the March 28 accident. “I’m five months pregnant....! resent having a handfupeope making a decision that -is going to affect thousands,” Michelle lewert told the of--ficials. % “We will never forget or forgive what you have put us through ... You are no more worthy than a hunk of cow -manure.” Meanwhile, in Harrisburg, a consultant hired by the state • Public Utility Commission said -the damaged reactor at the • plant would cost $1 billion to ■clean up if it is not beyond -repair. Dr. Robert Parente said -Tie doubted the plant would relopen because of protests and ' stress on area residents. C The plant’s owner, General Utilities, expects to ‘.spend S4OO million repair the crippled reactor. GPU officials . told the PUC there was no tech- ' nical reason why repairs could not be completed and that the undamaged reactor should be returned to service. The NRC staff has recommended that 57,000 curies of krypton be vented from the * plant’s reactor containment building. Krypton cannot readily be filtered from air, and the NRC says alternatives to venting would take two years or more to put into operation. . In addition, seals and equip»ment in the building need to be /serviced and officials want to •avoid any failure. it «* ■■■■■■■■■■■■■■■■■■■ Banner-Graphic “It Waves For All" (USPS 142-020) Conioflditlon ol £ The Daily Banner Established 1850 S The Herald The Daily Graphic Established 1883 Telephone 853-5151 * Published twice each day except Sundays ’* and Holidays by LuMar Newspapers. Inc. at • ‘ 100 Norlh Jackson St.. Greencastle, Indiana 'y 48135. Entered in the Post Office at t Qreencastla, Indiana, as 2nd class mail matter >* under Act ot March 7,1878. Subscription Rates y Per Week, by carrier $ .85 r Per Month, by motor route $3.70 Mall Subscription Rates R.R. in Rest ol Rest o< Putnam Co. Indiana U.S.A. * 3 Months $10.25 $11.25 $13.75 '•Months 20.25 22.50 27.25 ; 1 Year 40.25 44.00 54.45 Mad subscriptions payable In advance . . . ■. not accepted In town and where motor route ’ service Is available. Member ol the Associated Press r* The Associated Press Is entitled exclusively '' to the use lor republlcatlon ol all the local news printed In Ihls newspaper

work on the budget today with votes passible on some of the more controversial cuts, such as an end to Saturday mail deliveries and elimination of the state share of federal revenue sharing. Giaimo, who declared Wednesday that rising inflation “makes a balanced budget imperative,” recommended a total of $15.9 billion in spending cuts to produce a budget surplus of $1.4 billion for the fiscal year starting Oct. 1. In other economic news Wednesday: —New figures showed the profits of U.S. business sagged in the final quarter of 1979, de-

world

Who will pay for tax, producers or consumers?

WASHINGTON (AP) - Senators are weighing one of the unanswered questions about the proposed “windfall” tax on the oil industry: whether the $227.7 billion ultimately will come out of the pockets of consumers or be absorbed by the major oil companies. “The people feel the major oil companies will find some way to pass it on to consumers,” Sen. Robert Dole, RKan., said Wednesday as the Senate began final consideration of the compromise tax bill. A major task of proponents of the tax is to convince Americans they will not have to pay it, he added. “The burden of the tax will fall entirely on the (oil) producers and royalty holders',” said Sen. Russell B. Long, D-La., manager of the bill. “Of course the tax will be paid by consumers,” retorted Sen. Malcolm Wallop, R-Wyo. The Senate apparently will have several days to ponder the

Carters sets new talks in attempt to spur settlement

WASHINGTON (AP) - President Carter is stepping into the lagging Halestinian autonomy talks to try to spur a settlement and to head off a distracting West European diplomatic drive. European and Arab pressures were building on the United States and Israel when Carter set up separate meetings here for mid-April with Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin. The Europeans, led by France, were lining up to support Palestinian “self-determi-nation.” The British, meanwhile, were quarterbacking strategy for a new U.N. Security Council resolution to promote a Palestinian homeland. And Arab governments, while boycotting the peace talks, were exerting their own quiet pressures for an autonomy plan acceptable to the 1.1 million Palestinian Arabs now living under Israeli supervision. The often-unspoken factor in the minds of both the Europeans and Arabs now on the sideline is oil: The Arabs have it and the Europeans need it. The effect is to isolate Israel. By resorting to summitry

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spite a jump in oil company profits. Analysts called the profit figures another sign of an economic slowdown. —Savings deposits at the nation’s savings and loan associations registered the smallest February increase in a decade, rising $1.6 billion last month, another negative economic indication. In announcing his new antiinflation plan last week, President Carter called for sl3 billion in spending cuts to balance the 1981 budget. However, administration officials said the president has yet to make final decisions on what specific cuts to recommend.

question since an oil state bloc led by Sen. Henry Bellmon, ROkla., plans to extend debate in an effort to force the convening of a new Senate-House conference committee. That group’s hope is that a new committee would write a compromise that would mean less taxes on independent oil producers. Bellmon and his backers refused to allow an agreement that would have set a day to end debate and take a final vote on the bill, which already has passed the House. The tax was proposed by President Carter to win political acceptance of his plan to remove federal price controls from U.S. crude oil. Decontrol will cost consumers an estimated $1 trillion more in the 1980 s than with controlled prices. This $1 trillion is what is called the “windfall.” Consumers will pay the $1 trillion increase regardless of whether there is a tax on the

again, Carter is both blunting these drives at least temporarily and putting his prestige on the line. The May 26 target date for an autonomy plan, only two months away, is an informal deadline set a year ago by the president, Sadat and Begin. Nine rounds of negotiations between Egypt and Israel have not produced even a faint outline of a settlement. As a result, Carter’s own commitment to the date and to an influential U.S. role have become pivotal. By the end of April, Jordan’s King Hussein is expected to make a long-delayed trip here to see Carter in what could be a last-ditch effort to coax his country into the autonomy negotiations. The European view is that the process established by Carter at Camp David in September 1978 is a useful step but not necessarily the only way toward an overall Arab-Israeli settlement. The Europeans are especially eager to attract Saudi Arabia and other relatively moderate Arab countries into supporting Sadat’s initiative to come to terms with Israel.

In the absence of Carter’s revised budget proposal, Giaimo’s recommendations which are generally supported by the congressional leadership and the administration are emerging as the framework for the 1981 budget. Giaimo also proposed enacting “modest” tax cuts, essentially by rebating the $10.3 billion expected from the president’s oil import fee. That fee will boost gasoline prices by 10 cents a gallon. Giaimo said an additional $3.5 billion could be raised for general taxs cuts by increasing user fees for airports and waterways and by reducing tax

“windfall,” says the Carter administration and most backers of the tax. The only question, they say, is whether the oil industry keeps all of the additional money or is forced to give $227.7 billion of it to the federal government. After existing local, state and federal taxes are subtracted, the “windfall” tax would leave the oil industry an estimated $221 billion of the $1 trillion it is expected to realize from the price increase. Wallop contends the oil industry will have to pass the “windfall” tax on to consumers, just as most other taxes are recouped in the normal course of doing business. The compromise bill, written over a two-month period by a Senate-House conference committee, earmarks $137 billion of the tax revenue for income tax reductions. But it does not guarantee a tax reduction.

Tired Of Watching pump prices soar, a group of University of Wisconsin-Milwaukee students vent their anger by smashing a junked automobile. While some students

Swallows return Birds make annual appearance at Capistrano

SAN JUAN CAPISTRANO, Calif. ( AP) - The famed swallows of Capistrano returned to their beloved adobe mission Wednesday, but were greatly outnumbered by swallowwatchers. few of whom spotted the small birds. Ending a migration that covers nearly one-quarter of the globe, about 500 of the brown, cleft-tailed birds arrived at 8:30 a m. PST, according to a spokesman for Mission San Juan Capistrano. A larger number of the birds began settling into suburbs, including Mission Viejo, where a handful were reported nesting under the eaves of Community Hospital. Tradition has it that the swallows annually arrive on March 19 the feast of St. Joseph. But scientists and many townspeople agree the birds have no precise arrival date. Church bells at the 184-yearold San Juan Capistrano mission pealed when mission personnel reported seeing the first swallow. Their seven-week, 7,000-mile journey began in early February outside Goya, Argentina, sister city of San Juan Capistrano.

breaks, such as the business lunch deduction. Rep. James R. Jones, DOkla., an influential committee member, said the tax cut likely would reduce Social Security taxes by about $lO billion and allow businesses $3 billion for faster tax write-offs on investments. The tax cut issue provoked the sharpest debate Wednesday as committee Republicans tried to firmly commit the panel to a tax reduction as well as to deeper spending cuts. “We’re trying to lock in a tax cut,” said Rep. Barber Conable, R-N.Y. The GOP proposal, defeated

Signs indicate hostages' release may be delayed indefinitely

By The Associated Press Signals coming from Iran indicate the American hostages may be held indefinitely, the U.S. government said today. Meanwhile, Iranians celebrated the new year with fiery incantations, lucky goldfish and strolling minstrels after 61 prisoners were freed under an amnesty by Ayatollah Ruhollah Khomeini. The new year holiday, called Now Ruz, closed government offices for the next week and took public attention away from the slow counting of votes in the parliamentary election last week and the 50 hostages, who began their 138th day in captivity in the U.S. Embassy today. “The signals which are now coming out of Iran suggest that the detention of the hostages may continue indefinitely,”

Mystery of 'red sweat' closes

MIAMI (A) The spooky “red sweat” reported by attendants on Eastern Airlines flights between New York and Florida was caused by a harmless ink that flaked off life vests during demonstrations of safety procedures, company officials said Wednesday. They explained that as an Eastern attendant tugged the yellow rubber life vest over her head to demonstrate it to passengers, tiny red flakes came

on a 17-8 party line vote, sought a S2O billion tax cut in fiscal 1981. "By mandating sharper spending cuts, the GOP plan still projected a $1 billion budget surplus. Overall, Giaimo’s budget proposal for fiscal 198 L calls for spending $612.4 billion, revenues of $613.8 billion and a surplus of $1.4 billion. Normally, the president’s budget submitted in January serves as the framework for the congressional budget review, although Congress retains final power over spending levels. This year, however, the process was complicated when Carter repudiated his January

State Department legal adviser Roberts B. Owen told the World Court in the Hague, Netherlands. ‘‘No one in this courtroom has any way of knowing whether the Ayatollah Khomeini will continue to hold the hostages in captivity for a month or for a year or for a decade,” he declared. Owen said that U.S. hopes for release of the hostages were shattered early this month when the U.N. investigating commission left Iran without seeing the captives. He called the World Court the most promising hope for the ultimate release of the hostages and called for an urgent final judgment on the U.S. case against Iran. Owen told the court on Wednesday the hostages were held under “harsh and inhumane

off a stenciled set of letters which read “Demo Only.” It was those small flakes that gave the appearance of mysterious crimson dots on the faces and bodies of attendants, said Dr. David P. Millett, Eastern director of flight medicine. Company officials said the mystery malady had been reported in about 170 cases involving 95 attendants. The “red sweat” dated back several years, but reports in-

stomp in the roof with a vengeance, another cohort takes aim at the side. Other students donated the sacrificial auto. (AP Wirephoto).

About 2,000 of the birds summer in California and then depart in October, leaving their mud nests to sparrows. “They used to arrive in droves,” said Harry Stevens. 62, a retired plumber who has lived in this coastal city for 30 years. “The mission buildings were honeycombed with their nests.” In recent years, however, the swallows have moved to suburbia preferring the countryside areas where their favorite insects are more accessible. So many settled at Mission Viejo Community Hospital, six miles away, that the health department pressured officials to get rid of the birds. Among the early bird tourists was Betty Jo Moak, 52. a telephone supply clerk from Midland. Texas. She drove 1,200 miles to realize a lifelong dream. “I have wanted to come here since high school, when I first heard the song, ‘When the Swallows Come Home to Capistrano.”’ she said. Ms. Moak believes the journey of the swallows is a religious miracle.

budget, which called for a $15.8 billion deficit, and said the budget must be balanced as part of the fight to reduce the nation’s 18 percent annual inflation rate. Since Carter has yet to send Congress a revised budget proposal, the House Budget Committee has turned to Giaimo’s plan as the key recommendation. The spending cuts approved Wednesday included $1 billion from the strategic petroleum reserve, S3OO million in deferred park acquisition and water projects and S2OO million from construction of veterans’ hospitals.

conditions” and were “confined like common criminals.” He said 13 black or female hostages who were released Nov. 16 reported that women were tied to straight chairs facing the wall for 16 hours at a time, that at night the hostages’ hands were bound or handcuffed and they were kept under lights around the clock to inhibit sleep, that some were made to sleep on the cold bare floor without blankets, that some >vere denied changes of clothing and that baths or showers were allowed only rarely. “On one occasion a student who was interrogating a woman hostage showed her his revolver to let her know that one of its chambers was loaded, and then proceeded to intimidate her by pointing the gun at her and repeatedly pulling the trigger,”

tensified this year, most on Airbus A3OO flights from the New York-Newark area to the Miami-Fort Lauderdale. Millett said a new batch of life vests apparently carried the ink, which he described as “innocuous.” Many of the flight attendants reported the red dots itched, and Millett said it was possible they really did feel itchy, although he described that as “an idiosyncratic” reaction which

Giaimo has estimated $836 million could be saved by enfr ing Saturday mail deliveries Elimination of the state share of federal revenue sharing would save $1.7 billion, dropping anti-recession aid for cities $1 billion, reducing youth and other jobs programs $1 billion and trimming the federal highway program SSOO million. Other possible major savings being talked about include $1 billion by postponing proposed welfare changes, $1 billion by awarding cost-of-living increases once a year instead of twice to civilian and military retirees and S4OO million by cutting the food stamp program

said Owen. “Happily he stopped in time, but the experience must have been terrifying.” He also denied Iranian charges that the embassy was a spy center. He said it was “.a normal diplomatic mission operating as such missions normally do.” The 61 amnestied Iranians left Evin Prison Wednesday and were kissed and hugged by waiting relatives and friends Some 400 other prisoners were expected to be freed in the next few days. Although Khomeini’s proclamation specified that it would apply to members of the armed forces, the secret police and the clergy during the monarchy, it excluded those accused of killing, torture or misuse of public funds or property.

can vary from person to person. The mystery was cracked Friday after Eastern ordered all its flight supervisors from Newark to begin riding the affected flights. One of them made the connection between the vest demonstration and the red dots. Flight attendants would pull the vest over their heads on every flight, then “as they removed it. the ink would flake off,” explained Edwina Gilbert.

Bargainers sent back to table CHICAGO (AP) - A key policy council for the United Auto Workers has turned down a new contract and ordered bargainers back to the table, crushing hopes for a settlement any time soon in the bitter 140day strike against the International Harvester Co. “I guest we’ll get back together. and someday we’ll end this strike,” said UAW Vice President Pat Greathouse, who had recommended sending the proposed contract to the rank and-file for ratification. Some 300 members of the union’s International Harvester Council representing 51 locals in eight states overwhelmingly rejected the contract Wednesday on a show of hands. Bill Greenhill, a Harvester spokesman, said no date was set for the two sides to get back, together. “It may be next week, it could be a month and it could be two months,” said Cletus Williams, head of the UAW bargaining committee. The main obstacles were UAW demands that piece workers be allowed to go home after finishing their shift quota and that employees be permitted to transfer, especially to new planets in areas the UAW fears areinhospitable to unions. The company has agreed to neither Another problem was the fact that at least six UAW locals’ have not yet come to terms with Harvester on local issues. Greathouse, the union’s chief negotiator, said the focus now would shift to settling all local matters before renewing talks on the main contract.