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Show Yt iV t,ibjf4 - feu,. ''ft . , e '.wW S V'-V- Serials Order Department University of Utah City 84112. mm aorr: VOLUME 17, NUMBER 195.. SALT LAKE CITY, UTAH FRIDAY, OCTOBER 19, 1973 Inflation Has Peaked. N.Y. Supreme Court Decisions Bank Declares - The rate of slowdowns, Citibank said, if the inflation apparently peaked in administration continues its moderate restraint in fiscal and monetary policies. The anticipated strength of exports, vigorous business investment spending and increased inventories also should offset the cooling of the economy, it NEW YORK (UPI) August and should slacken off next year, according to First National City Bank. (See details page 4) Lai $dintfer INFLATION IMPACT ON WAGE CYCLE NEW YORK Led by the auto industrys modern wage, settlements, 1973 will not witness difficulties on the labor scene. But labor economists note sufficient evidence to warrant a prediction that 1974 will be a different story. They expect a general assault on wage guidelines. It is known that rising food costs are angering union members. AFL-CIPresident George Meany is on record as saying if the rise in living costs continues the pressure for much higher wages is going to be that much tougher. Increasing prices and higher Social Security taxes are hurting workers. Surveys show the average production worker has lost real buying power. With the trend expected to continue, they are prodding union leaders to get new pay hikes. O cost-of-livi- executives at a New York giant commercial bank are cautioning there is a somewhat disquieting note in the recent steelworkers in a number of plants. grumblings by Friurs are that if the d pledge in that industry should come apart, threats of strikes could touch off manufacturer panicky inventory building in steel. This fright, warn the bank officers, could produce excessive demands early in 1974 followed by a collapse later in the year and have a psychological adverse impact on other major inTop-lev-el rank-and-fi- le much-vaunte- dustries. no-stri- ke i Sowing real economic growth in 1974 coupled with increasing labor-cos- t pressures indicates a sharp deceleration in next increases profit year. Excluding rising prices, real economic growth next year is expected to be 3 per cent or less versus 6 per cent estimated for 1973. Corporate aftertax profits are forecast to decline about 5 per cent next year, following an estimated 25 per cent advance for . 1973. These estimates are from a highly respected economist who doesnt crave publicity. Reason: It isnt bullish. He is employed by a nationally known brokerage house. 18-21Year-0- To Serve lds on U.S. Juries in Conn. CONN (UPI) -Oonnecticutss federal courts will begin this fall to use persons between the ages of 18 and 21 as jurors in trials and grand jury HARTFORD, proceedings. They may also be selected to. serve on at least me of the Bayh Bills Calls Bans Undisclosed Phone Recordings (UPI)-S- en. WASHINGTON has introduced Birch Bayh, a bill to make it illegal to record a D-In- telephone conversation without telling the other party. In a statement, Bayh predicted that Watergates disclosures would spur enactment. The bill would also guarantee individuals the right to know about, see, correct and limit disclosures of records about them kept by government agencies. 3 In its October economic letter, Citibank said on statistics alone, its a good bet that the rate of inflation reached a peak in August. Although inflation is expected to moderate in 1974, it probably will remain above the average levels of the 1960s for some time, the letter said. scheduled criminal or civil trials in the states four federal courts at Hartford, New Haven, Waterbury and Bridgeport. A constitutional amendment last the year which gave to also allowed them to right vote, serve as jurors. Selection is being made randomly by picking every 100th name from the states voter registration list. They will then receive qualification questionnaires and instructions from court clerks. Younger jurors may be exempted from jury duty if they are active students or mothers with children under 12 years old. Other excusal categories are ministers, priests, rabbis, and others in religious life; attorneys, physicians, dentists, registered and licensed practical nurses; those having served as a grand or petit juror in state or federal courts within the last two years; school teachers; sole owners of businesses or anyone living more than an hour from the courthouse. Senators Seek More Minimum Foremost among indications inflation will slow are recent crop reports that production will be sufficient enough to keep food Tax on Rich WASHINGTON (UPI)- -A half-doze- n Democrats have begun a a drive in Congress to enact downpayment on tax reform" by increasing the minimum tax which applies only to the wealthy. Narrowly defeated in the House and Senate last June, they predicted success this time, partly because of their plan to sue a veto-probill as a vehicle for their of proposal. The minimum or millionaires tax they seek to increase applies to preferential income, that which is taxed at less than full rates or escapes taxation altogether because of preferences the existing tax code gives to certain types of income. We hope that comprehensive tax reform will be considered as soon as possible," the group said in a statement. But until then, we want to make a downpayment on tax reform right now by strengthening the minimum tax." At a recent news conference, Sen. Edward Kennedy, foresaw 'success because The American prople are demanding tax reform. His amendment to increase the minimum tax was defeated by the Senate, 49 to 47, on June 27. Rep. Charles Vanik, predicted the House ways and means committee, of which he is a member, would approve the plan The committee is not because to the floor take over." let willing The last attempt to overrule the committee by means of a floor vote was defeated by only 10 votes, Rep. said. Henry Reuss, The liberals planned to attach the tax change to a bill universally s., D-W- is. regarded as unvetoable the measure extending the federal debt ceiling and allowing the government to continue to operate with debt financing. Joining Kennedy, Vanik and Reuss in calling for tax reform were Brock Adams, John Moss, and Frank Thompson Jr., Reps. D-N.- J. Under the minimum tax, of someone with $100,000 income annual preferential may subtract the amount of taxes paid on his nonpreferential income, subtract. $30,000 and pay a 10 per cent tax on what is left. The reformers would eliminate the deduction for taxes paid and the $30,000 exemption. Then they would subject the rest to a progressive rate of taxes equal to half the tax rate on ordinary income instead of the flat 10 per cent rate. added. The current slackening could set the stage for slower inflation and a sustained growth in production in profits once the economy rebounds from the path of slow growth on which its now embarked," the Citibank letter said. prices from spiraling upward, Citibank said. Signs also point to a tapering off of business activity in the United States and other major industrial nations such as Canada, Germany, and Japan, it added. Most forecasters expect a significant slowdown in business activity extending over the first half of next year, accompanied by a rise in unemployment and a dip in profits," the letter said. The downturn should be slight in comparison to past business Obscene Words Not Illegal on Postal Covers ST. LOUIS (UPI) - An Appeals court has ruled that the 1st amendment guarantees Americans the right to scribble obscene words or phrases on envelopes or postcards sent through the mails. In reversing the conviction of Ray A. Tollett, Nashville, Ark., the 8th circuit U.S. Court of Appeals ruled, October 2, that the federal law prohibiting libelous, scurrilous, defamatory or threatening material from being written on the outside of mailings is overly broad and violates the First Amendment guarantee of freedom of expression. Judge Donald P. Lay of Omaha; wrote the opinion, answered a who Justice Department attorneys contention that postal workers might be offended by such abusive language by saying it must be postal employes presumed that the e mail and not to job is to deliver'-th- read it." The court said it is highly doubtful that the government has much of a legitimate interest in punishment of name calling between private parties." Lay said, Some persons might be offended by being called a bum or an S.O.B., yet others might consider the source of the insult and laugh it off." NOTICE Government offices will be closed Veterans Day, Monday, Oct, 22. The DAILY RECORD will not be published on that holiday. New Commodity Market Control Agency Urged WASHINGTON (UPI)-Crea- tion of a tough, independent Commodity Exchange Commission is needed to help guard against manipulation and artificial price booms on futures markets for basic farm products like corn, wheat and soybeans, Rep. Neal Smith, D-Io- has declared. Smith, chairman of a House small business subcommittee which has been investigating futures trading, said in a speech prepared for House delivery, October 9, that the proposed new agency should have the same kind of status and expert staff as the stock markets securities and exchange commission. Commodity markets currently are regulated by the Commodity Exchange Authority, an agriculture department agency. Smith said that might have been good enough years ago when trading power was scattered among thousands of small local grain elevators. But it isnt good enough for the modem era in which a few giant grain companies are able to dominate futures markets and pricing, he said. Obviously the CEA of today is understaffed and operating without the proper tools to regulate these markets which are running amok and are being dominated by a few giants, Smith told the House. For example, in the first part of July, three large traders. . .controlled 83 per cent of the contracts to buy soybeans," he July-delive- ry added. When a few large traders control most of the long" positions (contracts to buy commodities), the result is a potential for price manipulation because sellers cannot fulfill their futures contracts except by bidding prices up to exhorbitant levels, the Iowan said. Smith said creation of an expanded, independent commodity regulation agency would help the government keep close watch for situations of this kind. He said trading reforms are needed to preserve the usefulness of futures markets in setting prices and spreading price risks for grains, livestock and other commodities. |