The Mail-Journal, Volume 9, Number 48, Milford, Kosciusko County, 27 December 1972 — Page 4

Tfie PUBLISHED EVERY WEDNESDAY The Milford Mall (Eat 1888) Syracuse-Wawaaee Journal (Eat 1907) Consolidated Into The Mail-Journal Feb. IS, 1962 DEMOCRATIC ARCHIBALD E. BAUMGARTNER, Editor and Publisher DELLA BAUMGARTNER, Business Manager Box 8 Syracuse, Ind., — 46567

EDITORIALS Poor PR for the Grand Old Party

The Journal this week received a news item from the Indiana Republican News Bureau in Indianapolis, telling about plans for the Jan. 8 Inaugural Ball in honor of the state’s new governor, Dr. Otis Bowen. We hope that the carelessness with which the Republican News Bureau prepared its copy is not characteristic of the incoming administration. If there is anything we could use less of in government, it’s sloppiness. The news item from Indianapolis tells about “Durwood” Kirby (it’s Durward, folks) going to be master of ceremonies (it’s ceremonies). The GOP seems to have a ceremonial hangup, because ceremony is never spelled correctly in three appearances. Then there are going to be bouquets of “immitation” peonies (It’s imitation). “Coral groups” will provide music, which ought to be interesting, since coral is an undersea substance found in the Pacific Ocean. And among the institutions whose

Defining unemployment

It is tempting to view the sharp drop in the November unemployment rate to 5.2 per cent of the labor force as having fulfilled President Nixon’s goal of bringing the level of joblessness down to “the neighborhood of 5 per cent” by year end. While the figure is close to the mark, and while the overall improvement in unemployment since Mr. Nixon announced his new economic policy some 16 months ago is encouraging, we prefer to wait until the December figures are available before passing judgment. As any student of Economics 101 will point out, one month’s statistics do not constitute a trend. There is no question that the total employment picture has brightened considerably in the last year as economic expansion has taken hold. The labor department reports that the number of payroll jobs has increased in the last 12 months by 2.5 million. Since this number is larger than the increase in the labor force, it implies- that many people who had been among the unemployed have found jobs. A growing number of economists, including some within the Nixon administration, are questioning whether the arbitrary designation of “4 per cent unemployment” constitutes a realistic “full employment” level in today’s economy. They cite the structural changes in the labor force, particularly the larger number of teen-agers and women, many of whom leave and enter the labor market depending upon the availability of jobs. Under the present formula, any

Income tax management decisions

WEST LAFAYETTE — The delayed corn and soybean harvest, plus higher prices for these commodities, and record hog and near record cattle prices point up the importance of income tax management for many Hoosier termers. Because of these factors farm income will vary considerably, notes E. E. Carson, Purdue university extension economist. Farmers who suffered loses will want to attempt to increase their taxable income to at least equal their regular personal exemptions and deductions, since they cannot be carried over the next year. Those with severe losses will want to look into the net operating loss provisions. Operators with sharply higher incomes will be searching for ways to reduce their taxable income. Others will gain by postponing taxable income to 1973 and beyond. Carson suggests farmers total their income and expenses to date and then estimate and add on expected additional income for the remainder of 1972. He * further suggests farmers check with their tax consultants on

“coral” groups are to appear are Ball State, Indiana and Purdue universities, and “Indiana State College.” We presume they mean Indiana State University at Terre Haute. But then, they might mean Indiana Central College at Indianapolis. Or perhaps its another mistake, and they plan to have an Indiana state collage as part of the decorations. Perhaps “Adjudant General” Alfred H. Ahner, a member of the committee, could tell us. (It’s adjutant). At any rate, it is good to know they expect a big “attendence.” We suggest that Supt. of Instructionelect Dr. Harold Negley (whose namewas brutally mispelled in the news item) should quick-like set up a class of instruction in spelling and accuracy for his party’s PR folks. We’ll bet state GOP Chairman Jim Neal (a newspaper publisher himself) would be able to find at least one copywriter who should attend. — Pulaski County Journal

person between the ages of 16 and 64 who is out of work and actively looking for work during the week when the census bureau conducts its monthly household survey is considered to be unemployed during that month. It doesn’t matter if the person had a job the previous week or found one the day after the survey was taken. By definition, he was unemployed. Moreover, in tabulating unemployment a jobless teen-ager counts as much as an unemployed married man. No weight is given to the fact that the married man may be his family’s sole breadwinner and that others, too, may be dependent upon his support. The statistics tell us, for example, that 4.3 million are unemployed. However, only 2.4 per cent of the adult married men and 3.6 per cent of all men 20 years old and over were out of work in November. Among adult women, the jobless rate last month was only 5 per cent. In 1969, when unemployment averaged 3.5 per cent — well under the so-called full employment level — nearly 3 million people were out of work at any one time. The time has come, we believe, to change the definition of unemployment so as to reflect more accurately who is unemployed and why. It is nonsense for politicians to recite the monthly jobless numbers and wring their hands when they know it is impossible to provide employment for “everyone who wants to work.” Even little Switzerland, with more than 4,500 job vacancies, has 79 citizens classified as unemployed. — Chicago Tribune

classification of income and expense items and on treatment of depreciable property. The objective, Carson stresses, is not just to minimize taxes, but to maximize after-tax income. Thus, business decisions that reduce net income more than they reduce taxes should be avoided. Farmers can increase their 1972 taxable earnings by making additional sales before the end of the year or by securing a CCC loan, if eligible, or by delaying expenditures. They can minimize the depreciation taken on items acquired during 1972. In the case of high earnings, bills can be paid up and supplies bought and paid for in advance. Occasional expenditures, such as painting and repairing buildings, tool purchases and soil and water conservation expenses can be made. Maximum depreciation allowances — optional first year 20 per cent and double declining balance — can be elected. Planned sales can be postponed until 1973. In addition, farmers with high 1972 earnings should consider

income tax averaging, which has been simplified and liberalized. If 1972 taxable income exceeds the 1968-71 average by 20 per cent plus $3,000, it would pay to consider this option, Carson says. In the case of purchases and sales of property, installment payment arrangements can often result in substantial tax savings to the seller. Sometimes trades can be advantageous. Farmers often overlook paying wages to their children for work performed by them, provided a true employer — employee relationship exists. A child can earn up to $2,050 per year, not be subject to tax, and still be claimed as a dependent if the parents provide more than onehalf of the child’s support. This also applies to children 19 and over if they are enrolled in school five months or more of the year. For further information Dr. Carson suggests obtaining a free copy of the “Farmer’s Tax Guide’’ available at most county cooperative extension service offices or from the mailing room, AGAD building, Purdue university, West Lafayette, IN 47907.

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Indiana to receive federal funds WASHINGTON, DC. - Congressman Earl F. Landgrebe has announced that the state of Indiana will receive over a third of a million, dollars for water pollution control programs. The congressman cited a federal grant from the Environmental Protection Agency to the Indiana Stream Pollution Control board. Landgrebe announced that $360,100 of an estimated $1,011,443 project will

JACK ANDERSON’S WEEKLY SPECIAL

THIEU'S VIEW by Jack Anderson 1972 Pulitzer Prize Winner for National Reporting •Copyright. 197 J. by United Feature Syndicate. Inc >

WASHINGTON - A special report from Saigon indicates that President Thieu is gloating over the latest setback in the Vietnam peace talks. According to the report, filed from the American embassy in Saigon, Thieu is telling intimates the setback confirms his view that Kissinger does not understand how to deal with the Asian Communists. Thieu, in the past, has complained that Kissinger treats Hanoi's negotiators as if they were Europeans. As a result, Thieu has claimed that Kissinger underestimates the North Vietnamese and overestimates his own ability to get solid concessions out of the Communists. Now, Thieu is saying Kissinger failed to read Hanoi’s diplomatic signals properly. The North Vietnamese are experts in hot-and-cold diplomacy, says Thieu. They become most intransigent just when they appear to be most reasonable. A setback, according to Thieu, was inevitable when Kissinger announced “peace is at hand." Kissinger, in contrast, has battled hard for Thieu in the long negotiations in Paris. Before the most recent stalemate. Kissinger had persuaded Hanoi to back off from their demands for a coalition government and for thV ouster of Thieu. President Nixon, who is doubtless aware of Thieu’s sentiments, still shows full confidence in Kissinger's ability to negotiate a ceasefire.

come from E.P.A. The project is designed to provide incentive to state and interstate agencies to strengthen and expand their water pollution control programs for the 1972 fiscal year, Landgrebe said. LAKELAND LOCALS Mrs. Earl Treadway of Syracuse spent Christmas with her son-in-law and daughter, Mr. and Mrs. William H. Myers, and family at Evansville. Mrs. Lulu Felkner and Chester Felkner, both of Milford, were Christmas day dinner guests of Mr. and Mrs. Herbert Felkner and family of Milford.

The North Vietnamese made only a small concession at the latest truce session. A secret summary of the meeting says they are willing to put in writing that both South Vietnamese and Communist forces would demobilize after the cease-fire and that the demobilized troops would be free to live where they wished. Thieu insists that this is unacceptable and the talks remain deadlocked. Fizzling Out Dozens of congressmen may be feeling a little queasy when they return to the Capitol next month. The reason: Miles Laboratories, the huge drug firnti, has stopped providing bushels of Alka-Seltzer to 24 senators and 44 congressmen who are on the firm’s official gratuity list. Confidential interoffice memos in our possession reveal that, for years. Miles Laboratories took care of the sneezes, wheezes and vitamin deficiencies of important congressmen and other Washington VIPs. The Capitol Hill care packages which contained Alka-Seltzer, vitamins and bactine were all personally wrapped for the congressmen and their staffs. According to the memos. Senate Republican Leader Hugh Scott got a double allotment. which he requested as his rightful due after he was elevated above the rank of an ordinary senator. Last March, however. Miles Laboratories abruptly cut off the flow of free pills and powders. The gifts were stop-

Mr. and Mrs. Esta Yocum of Leesburg had Christmas dinner guests of Mr. and Mrs. Norman Hunsberger and family and Mrs. Richard Hunsberger, all of Milford. Family members spending Christmas Day in the I. J. Byland home at Oakwood Park were Mr. and Mrs. Paul Blankenhorn and Jim, Mishawaka; WAC Judy Blankenhorn of Fort Monmouth, N.J.; Mr. and Mrs. Mike Stroh and Tammy of Mishawaka; Mr. and Mrs. Robert James, Lou, Bill and Steve, Mr. and Mrs. Dan Bumont and Tracy, all of Sturgis, Mich.; and Mr. and Mrs. James Crafton and Teri and Garry, Syracuse.

ped. according to Miles spokesman C. N. Jolly, for a combination of reasons. The most compelling was the new campaign financial disclosure act which requires disclosure of any gift or combination of gifts which total $lO in value. The company was afraid all the free medicine, if disclosed. might appear improper. Setting An Example The admirals are stirring up a quiet rebellion against their civilian bosses over their favorite fighter plane — the F-14 Tomcat. Some time ago. Secretary of Defense Melvin Laird, tired of cost overruns, decided to make an example of the next defense contractor that tried to saddle the taxpayers with a big cost overrun. This turned out to be Grumman Aerospace Corporation, which claims mournfully that it has already lost SBS million on the 86 Tomcats it is now building for the Navy and that it would lose an additional $lO5 million if it goes ahead with the contract to build another 48 Tomcats. Grumman wants more money, but Laird is demanding the 48 planes at the contract price. We spoke to Laird, who told us he is determined not to allow another huge cost overrun. But he still has to reckon with the admirals who are leaking stories around town about how great a plane the Tomcat is and how unfair Laird is to Grumman. For the Navy, the stakes are high Many military strategists are questioning the value of aircraft carriers, which are highly vulnerable to air and missile attack. Without carriers, there would be little need for the Navy’s air arm. The development of the Tomcat, therefore, is part of the Navy's campaign to save the aircraft carriers. — Behind the Scenes — SINO-SOVIET LEAK—The press recently reported a border clash between the

Know Your Indiana Law By JOHN J. DILLON Attorney at Law

This is a public service article explaining provisions of Indiana law in general terms.

“Airport users' fee”

Anyone who has traveled outside the United States by airplane has experienced having to pay a users’ fee or tax upon landing in certain airports in foreign countries. These fees in various amounts are either charged for enplaning or deplaning from the aircraft on which one is traveling. This is not an experience which is encountered on domestic air flights within the United States, because most airport authorities have not seen fit to impose such a tax or fee for the use of an airport. Airport authorities in the United States faced with the increased cost of operating their facilities like all other governmental units have been casting about to find new sources of revenue. Most airport facilities are municipally managed, having been established by the airport authority or governmental entity charged with the operation of airports for the municipality which they serve. Normally income from operation of the airport supports the cost of this service to the municipality. Income is received from the various vendors who rent space in the airport such as barber shops, taxi facilities, car rental facilities, hanger facilities and the cost charged the airlines in landing fees. To augment its income the city of Evansville, Indiana, adopted a SI,OO users’ fee for enplaning passengers using commercial airline facilities. This ordinance was immediately contested on the basis that it violated the federal constitution by placing an unlawful burden upon interstate commerce. The Indiana Supreme court sustained this position and declared the ordinance to be unconstitutional as violating several sections of the United States Constitution. The Evan-

Chinese and Russians in remote central Asia. The report was leaked to Western diplomats by Soviet officials in Moscow. We have now seen the secret intelligence reports on the incident. As nearly as oiir intelligence agencies can determine what happened, it was a minor incident. There are no signs of new military activity along the border, although the Russians added three new divisions earlier this fall. The reinforcements bring the total Soviet force along the border to 49 divisions or more than a million men. The war of words between the two Communist giants, meanwhile, has become increasingly hostile. But astonishingly, trade has been increasing across the tense border. An intelligence report from Moscow, however, says the Soviets may withhold strategic shipments from China. WESTWOOD WELCHED - Former Democratic National Chairman Jean Westwood welched on a deal that would have left her in a top party post. She had agreed to resign as national chairman and to accept another position. Her successor. Robert Strauss, had agreed in turn, to give her a face-saving job. But at the last minute, Mrs. Westwood not only reneged but made an attack on Strauss. Now she is out in the cold. CIA ON GRASS - The Central Intelligence Agency has quietly joined the environmental movement. As part of an experiment, the CIA has taken its excess classifed documents, mulched them into a grey mass and handed the mulch over to a West Virginia firm to be converted into fertilizer. What used to be secret documents have been poured over the strip-mined land of West Virginia to revitalize the earth. The program appears to be successful. If the CIA keeps churning out its secret documents, it may help the grass grow in West Virginia.

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sville Airport Authority promptly appealed the case to the United States Supreme court and that court decided that the ordinance was valid and that the city of Evansville through its airport authority could charge user fees to passengers enplaning at Evansville’s airport. Airport authorities and municipalities around the country expressed extreme interest in this case because it had generally been felt that such user fees would be struck down by the higher courts thus making this source of revenue unavailable to airport operators. This in large part accounted for the fact that user fees have not been historically sought by operators of airports in the United States. Now that the Supreme court of the United States has clearly upheld the right of municipalities to charge user fees for the use of their airports it is only probable that this tax will increase in popularity at airports all over the United States. It is probable that within a few years persons traveling within the United States will be greeted by some form of airport tax for either enplaning or deplaning when using airport facilities. The extent of this tax will depend upon the resistance it meets from air travelers. Copyright 1972 by John J. Dillon LAKELAND LOCALS Mrs. Gladys Dahlstrom, Salisbury, Md., spent Christmas in the home of Mr. and Mrs. Richard Dahlstrom and family of Milford. She will be returning to her home this week. Mr. and Mrs. Ben Kaiser and family of Milford spent Christmas day at the home of Mr. and Mrs. Larry Kammerer of Leesburg.