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Show UildL- - WESTERN AMERICANA Forialb 0M:r University of Ut;ih colt LkeCity lit'- - SAIT LAKE CITY, UTAH 1 VOLUME 16. NUMBER 203 Court Declares Parent IQ Adoption Cause Concept of Leverage For Shareholders In New Corporation Utah Supreme Court Decisions Capsule Reversal Test By James W. Freed One of the advantages of debt and preferred stock is that they are cheaper methods of raising capital than common stock. By the use of such senior securities the common shareholders obtain lev- WHETHER PREJUDICIAL TO RIGHTS OF DEFENDANT STATE V. TRUSTY Convicted of second degree murder. . . cases are many Supreme Court: Affirmed. and varied both as to particular fact situations and the determinations as to prejudice. Some of the cases have placed importance on whether the questioned comment or testimony was injected wilfully or designedly as critical compared to happenstance. We think this is not the consideration, because. the purpose of a reversal is not to should be punish the prosecutor nor the trial court. The test the deof whether it was actually prejudicial to the rights fendant. See details page . State counsel: Vernon B. Romney, David S. Young, William Evans Defendant counsel: D. Gilbert Athay Trial Court: Example of the concept of leverage: If the total capital need of the corporation is $200,000, and net income after taxes is expected to be $20,000 a year, the earnings on a would be at the rate of 10 common stock full capitalization. However, if common stock sales are limited to $100,000 and the balance of money is raised by a mortgage of $100,000 on plant and equipment at 7.5, the holders of the common stock have a leverage advantage. They have the use of New Price Rise For Beef By Bernard Brenner EASHINGTON (UPI)-- A this released government survey week indicates consumers may find retail beef prices on a new upward trend in late December and the early months of 1973, Agriculture Department experts believe. Department economists, in a new issue of their livestock and meat situation" report, said beef cattle prices are not expected to move much from current levels through most of the remainder of 1972. However, a survey issued since the situation" analysis was written, showed the number of cattle moved into feedlots in July-Septemb- er to begin fattening for market was down 2 per cent from a year earlier. Previously, experts had expected an increase in the figure, which covers 23 major producing states. Experts said the decrease in feedlot placements did not shake their forecast that the number of cattle moving out to slaughterhouses from October through December would be 5 to 8 per cent above a year earlier. It has, however, forced a change in the earlier belief that slaughter figures would continue above year-ag- o levels in the winter months. Connecticuts Abortion Law Gets Respite HARTFORD (UPI)-Connectic- ut's stiff abortion law was back on the books, October 16, at least until the U.S. Supreme Court hears the states final appeal of the lower court ruling invalidating it on constitutional ground. The U.S. Supreme Court granted the state a stay of execution on the September 20 federal court ruling overturning the four-month-o- ld abortion statute. The office of the states attorney general said the law controlling abortions in the state is now in effect again as a result of the stay. Connecticut had been without any form of abortion control since September 20, and the absence of a law became the central argument in the states request for a stay of execution. Justice Thurgood Marshall previously had refused to grant a temporary stay of the ruling by a federal panel special three-judg- e that a fetus had no constitutional rights. Justice William 0. Douglas voted to deny the application today. The law allowed abortions only when the life of the mother was threatened. It was enacted after the same three-judg- e panel struck down an 1860 statute which was not quite as strict. State Atty. Gen. Robert K. Killian told the High Court that unless the slay was granted the stale would be left without any laws to protect the lives of its unborn children at any stage of their development. Cattle prices, which had reached record levels earlier this year, declined in late July and early August, and retail beef prices belatedly followed in August and September. A By Cheryl Arvidson DES MOINES, IOWA (UPI)- -A young couple lost custody of their twin daughters October 18, when the Iowa Supreme Court ruled erage. $100,000 at a cost to the corpora- tion of $7,500 a year instead of $10,000 which would have been the cost of additional shares of common stock. Further, the mortgage interest is deductible whereas dividends are not Hence, even though cash flow will be affected by amortization on the mortgage, the annual increase in equity applicable to the common stock will more than compensate for it assuming the corporation is successful. A similar result can be achieved with preferred stock instead of debt to the extent preferred stockholders return. will take less than a 10 The concept of leverage is more to be recommended for seasoned companies with proven earnings out of which to pay dividends. (Editor's note: It is with deep gratitude and appreciation to James W. Freed, of Ray, Quinney & Nebeker law offices that THE DAILY RECORD was able to bring you this educational series on Basic Techniques of Incorporation".) . U.S. Sues Major Department economist said he would not expect much more decline in retail prices through fall in view of the current expectation for little change in cattle Renting Agent In New York prices. Growth Rate Of Welfare Rolls Slows WASHINGTON (UPD-Dur- ing the fiscal year ending last June 30, the annual growth of welfare rolls and financial aid to the poor slowed to its lowest rate in five years, a government report showed October 19. Social and Rehabilitation Service of the Health, Education and Welfare Department said 15,057,000 persons were on welfare rolls on June 30, an increase of 5 per cent The over the previous year. Welfare spending for direct aid to recipients and medical care for the needy totaled $18.2 billion, an increase of 17.4 per cent over the previous year. But HEW said both increases were lower than in any year since 1967. An increase in national employment undoubtedly was one reason why the welfare growth rate slowed in fiscal year 1972, said Social and Rehabilitation Service Administrator John D. Twiname. Another was the effect of restricting welfare eligibility for payments by a number of states. TUESDAY, OCTOBER 24, 1972 NEW YORK (UPI)-T- he largest suit ever initiated for alleged violation of the federal economic stabilization act has been filed in Manhattan federal court against a major New York real-estat- e managing agent. U.S. Attorney Whitney North Seymour and the director of the National Revenue Services New York office EDiott Gray, announced the action at a news conference at the federal building, October 10. Named in the suit was Nehring Bros., Inc., a major Manhattan real-estaconcern. Nehring manages 350 apartment buildings in the area, metropolitan Seymour said. Also named in the action were the owners of five apartment houses four in the Bronx and one in Manhattan all of which are managed by Nehring. The civil suit alleges that Nehring raised rents in 16 apartments in violation of the federal (nice freeze. It seeks a total of $235,000 from Nehring and the five landlords, plus an undetermined amount of restitution of excess rents paid by tenants in all Nehring-manage- d te buildings. According to Seymour, rents were illegally doubled or tripled in many cases in violation of the act. For example, he said, one of the apartments cited in the suit had its rent raised from $72 to $180 per month, while another rose from $78 to $210. the mother's low IQ made it impossible for her to give the children proper care and attention. In an 84) ruling, the Court ordered David and Diana McDonald of Davenport, Iowa, to place the children up for adoption. Shortly after the precedent-settin- g McDonald case, the High Court also ordered five of foe six children of Mr. and Mrs. Charles Alsager of Des Moines placed up for adoption. Few details were given in the Alsager case except to note the situation was almost identical. The court said the Alsager children probably were harmed more than Joyce and Melissa McDonald because they lived with their natural parents longer. The Alsager children ranged in age from 1 to 10. The Court said adoption was in the best interest of the children because Mrs. McDonald Simply is not able to give to these twins the proper care and attention including, but not limited to, the stimulation which the twins need and to which they responded almost immediately when placed in foster homes. The court said The tragic deficiencies of the McDonalds, work a cruel injustice on the children. Court records said Mrs. McDonald had an IQ of 47, while her husband's IQ was 74. Although David could care for the children "considerably better than his wife, the court said the best interest of the children requires a termination to him as well.' Social 9 workers , Tapes in Court and nurses o unatteftded and often left alone while ALBANY (UPI) AppeJJatSiJih parents were out of the n Justice Lawrence H. ooKe menl of Montecello, a candidate for the The twins have been in and out of New York State Court of Appeals, fosler homes since they were four has proposed limited use of cameras months old ordereci and tape recorders in the courtroom, immediate adopUon, noting the Cooke said he would place several longer they remain in foster homes, restrictions on the filming of trials, foe more difficult adoption will but that his policy would open the become. door to something that is not now The Court said it was reluctantly allowed." convinced that Mrs. McDonald, The policy could be less restrictive from her coaching despite in foe future if initial use of cameras could never take husband, proper and tape recorders worked out, he care of the children or at least said, Cooke said he would allow still provide them with the stimulation in cameras to be used without her home that they must have to restriction as long as they did not grow and develop into normal disrupt foe proceedings. healthy children. On radio and television tapings, The ruling was the second conhowever, Cooke said, there would be troversial custody case in recent three restrictions. years in Iowa. In 1966, foe Court First, they should not be em- - gained national attention by ployed in certain types of cases such awarding custody of Mark Painter, as those involving families, an motherless boy, to his children, and sex crimes. maternal grandparents. The Second, they should hot be perJustices said foe natural fathers mitted without foe consent of the Bohemian life style would not be litigants. as good for foe boy as the Third, these devices should not wholesome atmosphere" of his be allowed unless the whole trial is grandparents home. A California reproduced because misconceptions court ruling eventually returned the can arise from a flashing scene or to his father.s custody. audition, taken in or out of context, Cooke said, I would have no oh-jection to deletion of unnecessary portions where no prejudice would occur. Cooke said his proposal would limit the use of portions of testimony on radio and television newscasts, I 1OS6C U LOTS but reporters could still give their Lily S Drncnoiifnrp own on news summations BROOKLYN (UPD-N- ew York newscasts. State Court John Justice Supreme On balance, I feel the adM. the Murtagh, presiding judge for vantages to be gained outweigh the possible drawbacks, Cooke said. the special grand juries that will Unfair comment would be reduced hear evidence of corruption in the and it is only reasonable to assume city government ordered the em- foat increased public awareness of paneling of the first such jury for the courts and their problems would Brooklyn, September 10. Murtagh, in Brooklyn Supreme produce efficiency, thus buttressing and protesting the greatest system Court, did not set a date for the of jurisprudence ever conceived by actual seating of foe jurors and did how lon6 the jury would the mind of man. pl say "The proper use of these devices The 23 member grand jury will can bring greater lustre to the time hear evidence from Special Dep. honored term of public trial, he Gen. Maurice Nadjar, who was The regulated use of Atty. said. television and radio in courtrooms appointed by Gov. Nelson Rockfeller would allow foe public to see first- - 10 supercede the city's five district hand how effectively foe courts are attorneys in investigating corrup-trul- y Hon in government. functioning. apart-Divisio- fr |