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Show Serial,, Urd3r Ojpjrtnvjnt Univorulty of Utah Salt Loko City, Utah B4112 ASTERN VOLUME 15, NUMBER 203 In Freeze Period: No Earnings Tax If Dividends Withheld WASHINGTON (ACCN) -hasThe economic freeze. In Technical Information Release 1106, the IRS said in part: The question has been asked whether corporations having taxable years ended June 30, July 31, or August 31, 1971, will be subject to the imposition of the accumulated earnings tax of section 531 of the Code as a result of complying with the Cost of Living Councils dividend guidelines of September 4, 1971. In reply, the IRS release stated: "Where a corporate taxpayer, with a taxable year ended June 30, July 31, or August 31, 1971; permits its earnings and profits to accumulate beyond the reasonable needs of the business, such excess accumulations will not be subjected to the accumulated earnings tax of section 531 of the Code for that year, to the extent that such excess accumulations could not be distributed as dividends to its shareholders without violating the Cost of Living Council's dividend guideline of 1971. Savings Banks Cite Urban Role For More Power LAKE PLACID, N.Y. (ACCN) -Continued participation in "urban affairs additional activities will provide evidence that savings banks, are fully justified in their quest for broader service powers and increased investment Connecticut flexibility, savings bankers were told here by Alfred S. Mills, president of the National Association of Mutual Savings Banks. He also praised the Phase 1! economic program for surveillance of interest rates as exemplifying "the wisdom with which the Rattle plan has been conceived, and noted that the savings anti-inflati- on bank industry has pledged it, cooperation in holding the line on interest rates. Cuban-Spanis- h Trade Impasse Perils Items MADRID (UPI) Spaniards may soon be short of somkes and Cubans will miss a favorite candy if a crisis in trade relations between the two countries is not mended sot n. Cuba suspended tobacco exports last month after the two governments failed to agree on a renewal of a trade agreement. Spain promptly stopped its annual shipments of 1,000 tons of turron a to Spain sweet made from almonds and -- sugar which is a favorite of Cuban sweet tooths. "If the crisis with Cuba is not resolved in two months, the Canary Islands tobacco industry (which manufactures 90 per cent of the cigarettes smoked in Spain) will be hard hit, Gregorio Socorro Soto of the Spanish national tobacco monopoly said. "We do not have much Cuban tobacco left. fudge-typ- e - Capsule V. CITY, UTAH Stein Sees Some Utah Supreme Court Decision UTAH In- anternal Revenue Service nounced its policy guideline with respect to the imposition on corporations of accumlated earnings tax where payment of dividends was held up by the Presidential September 4, SALT LAKE After Phase No-Fau- I - - ADAMS Trial Court: Convicted of assault with a deadly weapon. Appeal: 1) Insufficiency of evidence; 2) improper and 3) improper sentence. cross-examinatio- n; Supreme Court: 1) ". . . They (jury) . . . justified in believing defendant guilty. 2) . . . as a witness, he subjects himself to the same as any other witness. Testimony elicited without any objection from the defense. 3) Remanded for correct sentence consistent with the language of the statute. The term not less than five years" . . . not the same as not exceeding five years. cross-examinati- A HOT SPRINGS, VA. (UPI) member of the President's Council of Economic Advisors has warned a group of the nations leading businessmen that prices and wages may surge upward after the freeze. Herbert Stein, considered the chief architect of President Nixon's Phase II economic policy, told a meeting of the business council that e wage and price guidepost-freez- lines would not be uniform. Some prices will actually have to drop below their current level if the administration is to meet its goal of reducing inflation to 2 to 3 per cent by the end of next year, Stein said. In planning the Phase II, Stein said White House policy makers "recognized that a temporary up surge of prices is possible in the first weeks or even montlis after the end of the freeze. "There are a number of more-or-lelegitimate, or at last hard to ss State counsel: Vernon B. Romney Lauren N. Beaseley Defendant counsel: J. Anthony Eyre (Apptd) 520 Boston Bldg. Kipp & Christian (See details on page 7.) Lawmakers Want Say on Economy Board Members WASHINGTON (UH) - Fights preshaping up in both houses of congress to require Senate confirmation cf the wage and price boards which will control much of the American economy when the freeze ends. With only about a month remaining before the boards take over, the White House had hoped to avoid the need for Senate confirmation of the two agencies the pay board, to be composed of five business, five labor and five public members, and the price com- mission, to be composed of seven public members. The administration view was that the. boards merely would be the Presidents agents in executing power to contain inflation already delegated to him by Congress. But when Nixon submits legislation to extend that authority and to broaden it to include standby power to control dividends and interest rates, powerful figures in Congress plan to attach a provision calling for Senate confirmation of the board members. "These boards are going to have extraordinary powers over the it now seems economy and possible extroardinary autonomy, so Senate confirmation should be insisted upon, said a spokesman for Rep. Henry S. Reuss, a member of the House Banking Committee. Sen. William is known to have Proxmire, the same view. s., s., Reuss' office said the envisioned Congressman "something like a recess appoint- ment to allow the boards to get to wprk without waiting for Senate confirmation, a process which could take many weeks. Particularly close scrutiny of the powerful chairmen of the two boards was anticipated but all of the public members were likely to undergo close questioning if confirmation is required. The "public members of the pay board will have the swing votes to decide what size pay increases will be allowed millions of American workers in the coming months. l THURSDAY, OCTOBER 21, 1971 Lawmakers Deny Self Interest lt Auto Insurance In Rise Price-Wag- e resist, claims for price and wage increases that have backed up since August 13 and some of them w ill be translated into real increases. Stein said the price commission will undoubtedly let some prices rise above the 2 to 3 per cent yeardstick. But he added: "Many prices must not rise at all and some must decline." 'Request: for wage increases also will be jueged selectively. "Some wage rates will obviously have to rise more than the average and some less, he said. ...Nobody should think thal just because he sees some wage increases far above tolerable average the svstem is breaking down." Stein predicted that Phase II controls would last for a "reasonable period. He said the - SACKAMENTO, CALIF. (ACCN) Was there a conflict of interest when whose law firms handle personal injury auto liability suits, voted to kill a bill for a lt modified auto insurance system in California? on Eight of the the Senate Judiciary Committee, which rejected the bill by Assemblyman Jack Fenton, vigorously deny any conflict of interest, along with Senate President pro tern James Mills, a member of which the Rules Committee to bill the the assigned committee. The public and press have said o!hrwise, the senators have lawyer-legislator- s, no-fau- lawyer-legislato- rs all-lawy- er d. Fentons bill, which would have provided automatic payment of claims of up to $10,000 to owners of cars from their insurance companies regardless of fault, was referred to interim study by a 10-vole of the Judiciary Committee. 1 Nations Prepare New Price Hikes Oil VIENNA (UPI) Oil-ric- h nations set guidelines October 15 for price increases that eventually will be passed on to every home and car owner who uses their oils and gasoline. The bill will be handed to western oil companies by members of the Organization of multi-million-doll- ar to authorizing the freeze until April 30, own provided a proximation of a 1973, first apreasonable t period." During that time, however, the controls could fall apart, Stein warned either from refusal from small businesses and consumers to live with the system or if one or another of the major parties in the effort walked out because it is not getting its way. "The best safeguard against that is strong public support for the program," he said. Massachusetts Bill Would Make (UPI) -- Gov. Francis Sargent has filed legislation to law repeal the state's "two-third-s which requires a person convicted of a violent crime to serve of W. two-third- his sentence s before becoming eligible for parole. This corrects a major shortcoming in our parole system," Sargent said. The current statute ties the hands of the state parole board, corrections officials and the judiciary, he added. s Ilis proposal would repeal the an law and make innnte d eligible for parole after serving of his sentence, the Governor said. "This puls the decision for release back where it belongs two-third- one-thir- with the parole board and corrections officials, Sargent said. Introduction of the legislation follows a series of work stoppages and inmate protests last week at Norfolk Prison, Walpole Stale Prison and a( other jails in the state s law in an effort to get the repealed ami urge other prison reforms. two-third- rs a group of nations that most of the world's oil exports to offset the decline in the (OPEC) value of the dollar. The U.S. gets some 10 per cent of its oil fr6m OPEC nations, but consumers in Japan and Western Europe will be hard hit. OPEC said that central bankers from its 11 member states finished a three-da- y meeting in Vienna October 14 and drew up recommendations to guide OPEC members in their talks with the oil firms. No date was given for the start of the talks but they were expected to begin soon. The recommendations were not published. However, oil sources and reports from abroad painted a gloomy picture of the oil consumer. OPEC, the reports said, will demand an increase of 5 to 7 per cent in the posted price, which is an arbitrary figure used to compute the taxes which the oil companies pay to the oil producing countries. lt terest, Mills said. "There is no alternative. Fenton, who is a lawyer, said he would have preferred the bill to be heard in the Senate Finance and but Committee Insurance been bills have such "historically referred to judiciary. I knew it was ordained to doom, he said. Assemblyman James Hayes, Beach, said it was a touchy question as to whether the lawyers had a conflict of interest in voting on a bill which might affect their law practices. "All I can say is I would have taken a walk instead of voting he said. Assemblyman William Ketchum, Robles, said in a statement, "The people of California received another excellent lesson in political insurance action when the proposal was laid to rest by the lawyers who compose the Senate Committee on the Judiciary. "This is a shameful reflection on the Legislature. R-Lo- ng R-Pa- so no-fa- ult Stennis Warns - Parole Easier BOSTON no-fau- no-fau- administrations bill asking extend the law Ray Bourhis, director of the Center for Public Interest Law in Berkeley, said 11 of the 13 members of the committee are members of law firms which handle personal injury cases. This kind of conflict of interest is highly questionable, Bourhis said, adding that the center would investigate the lobbying of the bill. "I dont handle personal injury suits, Sen. Alfred Song, Park, committee chairtold a reporter. I dont see a man, conflict of interest. There is no conflict of interest. What the public fails to realize is that an insurance policy is a contract. The committee best qualified to look at this particular contract problem is one made up of lawyers. Song said the committee wanted to obtain more information on the insurance plan results of a lt in effect in Massachusetts before jumping into the frying pan. Mills said the Judiciary Committee "seemed the appropriate place to refer the bill since it "basically involves rights before the law. He said he saw no more contact o interest in voting on the insurance bill than on any other affecting a matter of law. "Every time they vote, there is inherently some conflict of inlawyer-legislato- Petroleum Exporting Countries Congress AMtWCN. On Quality Of Enlistees - Sen. (UPI) has served notice that he will fight any move to fill the armed services with what he terms the "culls of society in an effort to establish an army. "Pentagon officials will come under heavy pressure to meet "all By volunteer goals, Stennis predicted Sen. in remarks prepared for delivery to WASHINGTON (UPI) Russo! Long. says the the Senate, and I intend to do what disc-.in I can to see that they do not do so at of abons illogal working fry a food packing plant owned by U.S. the expense of quality. e Treasurer-DesignatHe noted that in the three months Romana Banuelos has damaged her chances in which draft calls were suspended this year while Congress debated the for confirmation. Iong is chairman of the Senate draft bill, the Army was forced to finance committee, which will hold recruit more men in the lowest hearings on Mrs. Banuelos' ap- acceptable mental category. He said the $2.7 billion record-breakin- g pointment. raided pay raise pushed through Immigration agents adSenate Ramona's Food Products Company, the by volunteer-arm- y October 5, and arrested 36 Mexicans vocates should produce a fair test for entering the United States whether enough men can be lured illegally. They were returned to into the services to eliminate draft WASHINGTON John C. Stennis, s., Mrs. Banuelos' Nomination Hurt Raid D-L- Mexico. ) calls. i , |