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Show Fsriulb Orriir University of Utnh r? pr ' Fait LkeCity, Uth G112 VOLUME 16, NUMBER 165 SALT LAKE Utah Supreme Court Decisions Capsule 3-- 2 Decision Affirmed BREACH OF CONTRACT ON FRANCHISE KENNETH H. LINDQUIST, et al., Plaintiffs v. MR. STEAK, INC., Defendant & Appellant Trial Court: Judgment in favor of plaintiffs. Court found defendant assumed control and possession of the assets of the business pursuant to its offer to purchase the shares of stock owned by plaintiff and their acceptance. At time defendant elected to cancel and rescind its offer to purchase, it did not tender back the assets or control of the business. Time was not of essence delay in delivery of stock). Supreme Court: Affirmed. "These are issues of fact rather than issues of taw. . . Plaintiff counsel: Dallas H. Young Jr., 48 N. Univ. Ave., Provo Defendant counsel: Don R. Strong, 120. E. 300 N., Provo See details page CITY, UTAH Taxes Favor Big Business By Lee Ruwitch Miami Review Economic forecasting is an uncertain art, not an exact science. WASHINGTON In Watergate 5 federal court judge, citing a need to protect the constitutional rights of suspects, has barred the release of all pretrial testimony in the case of the Watergate Five. The ruling Tuesday by U.S. District Court Judge Charles R. WASHINGTON (UPI)- -A Testimony has indicated than $100,000 in cbnt be involved in violations of the rules governing campaign fund reporting. Some published reports put the figure as high as $500,000. The committee issued a statement August 22 denying any means that sworn violations and said all reports have Richey statements to be taken from several been filed correctly and completely. Nixon administration and campaign official top-ranki- concerning the Democrats' $1 million suit will be withheld from the public until after the Nov. 7 presidential election. Two of the officials to be questioned are former Attorney General John N. Mitchell and campaign finance director Maurice Stans. "I don't intend to keep the seal for one minute longer than necessary to protect someone's constitutional rights," Richey said. Five men, who had electronic bugging equipment in their possession, were seized inside the Democratic National Committee headquarters at the Watergate Hotel June 17. The men were subsequently linked to the committee for the of the President and a federal grand jury was empaneled to investigate the break-in- . It is expected to return indictments soon. Richey said he thought that the grand jury will indict some persons not yet charged in the controversial case. For that reason, he said, he made the decision to keep secret all pre-tritestimony in the case. "I hope the time comes," Richey added "when the facts in this case are spread across the newspapers. If theres something wrong, it ought to be exposed." . al Bennett Williams, representing the Democrats, Edward protested the decision. "I have never had depositions sealed for the reasons given in this court," Williams told Richey.' He charged that there has been "a very deliberate effort to conceal the nature of the facts" in the case. In a related development, the General Accounting Office (GAO), the investigative arm of Congress, said it was preparing a report on how Nixon's committee handled campaign contributions. The investigation was prompted lifter two checks totaling $114,000 allegedly were routed from the committee to the bank account of Bernard Barker, one of the five break-i- n suspects. Philip S. Hughes, a GAO official, Proposal to Drop 3-Jud- ge Courts Hit NEW YORK (UPI)-NAA- can predict what President o, Nixon or Congress will do even tomorrow.' Yet their actions greatly influence die economy and inflation, which is a hidden tax. Much of the government spending is largely wasted and it hurts the taxpayer to see his tax dollars squandered. This fiscal year, ending June 30, 1973, will record a budget deficit of $38 billion.. No wonder foreign countries have lost confidence in the ability of the U.S. to manage its own economy. business. Small business is taxed 17.1 Wilins took issue with Burgers that civil rights cases would not differ because they would be handled routinely before a single judge with an appeal to a Court of 1 Appeals. The catch in this plan is that the appeals to the Circuit Court of Appeals might mean that the case would not reach the Supreme Court for three years or more," he said. "Any way it is added up, the rights cases" the civil rights leader said it was "interesting to observe" that Burgers proposal was aimed only at the statute dealing with constitutional and civil rights and omitted any reference to other statutes permitting direct appeals to the high court by corporate interests in antitrust cases. at a rate the than giant percent higher corporation. The effective tax rates of the Nations largest 100 corporate giants was 26.9 percent in 1969, but the who Will be voting for the first time X; ix-- process and add a third dimension to overall American corporate ef- fective tax rate was 37 percent in This means that the smaller companies are paying an average rate of about 44 percent, Conglomerate and "trust" growth helps the rich get richer, the big get 1969. mercantilism is dictating economic policies in Europe, Japan and Canada. A Self-intere- st lasting overhaul of the international monetary system depends upon other countries becoming more cooperative and less selfish. President Nixon closed the gold window and forced major foreign countries to upvalue their currencies about 12 percent The economic recovery now appears bright with GNP up 6 percent in real growth and 3 percent via inflation. Tariff barriers continue to limit the sale of U.S. goods abroad. There is now wide recognition that exchange rates must be more flexible. (ACC-N- ) A year ago CP Executive Director Roy Wilkins has charged that Chief Justice Warren F. Burgers proposal to abolish three-judg- e federal courts would mean unconscionable delays in Negro civil rights cases." Wilkins said in a statement the NAACP was "alarmed" by the recommendation because it came at a time when the Administration was urging delays of federal court orders in school desegration cases. federal court "The three-judg- e statute has been a principal vehicle .on which minorities have resisted oppressive state legislative and administrative actions, Wilkins said. "That the Supreme Court case load has increased under that statute is not a reason to condemn it," he said. "Rather, this increase speaks eloquently of the extent of the failure of states to honor, and in some case, to abridge the con- stitutional rights of minorities." (ACCN) Present tax laws favor the giant corporation at the expense of the small, Rep. Charles Vanik, a member of the powerful House Ways and Means Committee, charged in testimony before the Joint Economic Committee. Congressman Vanik said: Our tax laws operate to suppress small business. Giant corporations' utilize the tax laws to reduce their effective tax rates and to generate extra muscle to compete with and devour small Pretrial News Gag Ofderecb r MONDAY, AUGUST 28, 1972 Solon Says Uncertainty Caused by Government Who physician is also licensed by the state to optometry, practice California Attorney General Evelle J. Younger has ruled. Younger noted, however, "the mere sharing of space and the related expenses of running an office between an optometrist and a physician.. .would not be improper. The Attorney General indicated in an analysis that under Sec. 3103 of the State Business and Professions Code, it is clear that licensed non-medic- - al tometrists "may only practice optometry jointly with other licensed optometrists. As to employment itself, Younger related that Section 3103 specifically states it constitutes unprofessional conduct for an optometrist to accept employment from lay persons or corporations. In spite of Section 3103, however, he said, the courts would probably create an exception where it found the employer was a licensed charitable corporation, a it corporation, or a bigger and the small to lose out. The tax subsidy system of the Internal Revenue Code is encouraging this growth; it is destroying the old ideal of competitive American free enterprise, The giant corporations enjoy greater cash flow, higher rates of return and the economic power to acquire more and more sub- sidiaries thus driving the small firms which pay higher rates of taxation out of business, This trend has been no accident the tax subsidies of the Internal Revenue Code have made a calculated attack on small businesses and provided incentives for large corporations to buy up successful companies for tax and cash flow purposes, Aided and abetted by our tax laws the free enterprise system in America has become one large chicken factory where little chicks are grown to maturity and made marketable to satisfy the unending appetite of conglomerate corporate America. SUPREME COURT OF THE UNITED STATES HEALY et al. v. JAMES et al. i CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT No. 71-4- 52. Argued March 28, 1972 Decided June 26, 1972 Petitioners, seeking to form a local chapter of Students for a Democratic Society (SDS) at a college, were denied recognition as a campus organization. Recognition would have entitled petitioners to use campus facilities for meetings and to use of the campus bulletin board and school newspaper. The college president denied recognition because he was not satisfied that petitioners group was independent of the national SDS, which he concluded has a philosophy of disruption and violence in conflict with the colleges declaration of student rights. Petitioners thereupon brought this action for declaratory and injunctive relief. The District Court first ordered a further administrative hearing, after which the president reaffirmed his prior decision. Approving the presidents judgment, the District Court held that petitioners had failed to show that they could function free from the national SDS and that the colleges refusal to approve the group, which the court found likely to cause violent acts of disruption," did not violate petitioners associational rights. The Court of Appeals, purporting not to reach the First Amendment issues, affirmed on the ground that petitioners had failed to avail themselves of the due process accorded to them and to meet their burden of complying with the prevailing standards for recognition. Held: 1. The courts erred in (1) discounting the cognizable First Amendment associational interest that petitioners had in furthering their personal beliefs and (2) in assuming that the burden was on petitioners to show entitlement to recognition by the college rather than on the college to justify its nonrecognition of the group, once petitioners had made application conformably to college requirements. Pp. 5. 2. Insofar as the denial of recognition to petitioners group was based on an assumed relationship with the national SDS, or was a result of disagreement with the groups philosophy, or was a consequence of a fear of disruption, for which there was no support in the record, the colleges decision violated the petitioners First Amendment rights. A proper basis for nonrecognition might have been afforded, however, by a showing that the group refused to comply with a rule requiring them to abide by reasonable campus regulations. Since the record is not clear whether the college has such a rule and, if so, whether petitioners intend to observe it, these issues remain to be resolved. 445 F. 2d 1122, reversed and remanded. state-support-ed 10-1- non-prof- governmental or quasi-government- al body. Younger reached this conclusion by drawing analogies with cases dealing with the practice of medicine. Powell, J., delivered the opinion of the Court, in which Burger, C. J., ana Douglas, Brennan, Stewart, White, Marshall, and Blacxmun, JJ., joined. Burger, C. J., filed a concurring opinion. Douglas J., filed a seperate opinion. Rehnquist, J., filed a statement coLjurring in the result. ' - |