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Show Sjrials Order D WESTERN AMERICANA .pnrtment university of Utah City 84112 WFi EM I mm mm i i I Ian 4 7U, W DEPT. MONDAY, MARCH 4, 1974 VOLUME .17, NUMBER 279 SALT LAKE CITY, UTAH Value of Total Construction Highest Ever Auto Repossess Law Goes Up to Supreme Court By Marjorie A. Billings In every case, the value of construction in all categories was substantially above the average, with the Utah percentage falling below the United States percentage in only the category . Research Associate By Charlotte Moulton WASHINGTON (UPI) - 10-ye- ar Despite a 22.3 percent drop in new housing starts the value of permit authorized construction in Utah during 1973 reached an e high for the seventh straight year. The total was $427.5 million, 10.4 percent over 1972 and 91 percent higher than the average of the past ten years. It must be noted that the 10.4 percent increase represents a far smaller growth rate than for the preceding four years but should be considered substantial in view of the large drop in the number of housing starts during the year. Although the number of new dwelling units authorized was down over 20 percent, the value of residential housing fell only 6. 1 percent. The big story in Utah construction during 1973 was nonresidential building where the value of permits issued was over $150 million almost 52 and before above the year percent 86.5 percent higher than the average of the past decade. The value of total construction in Utah was 17 percent greater in 1973 than 1972 while the increase for the nation as a whole was only 10 percent. The change in the value of residential construction for both Utah and the United States was approximately the same a decrease of somewhat less than 3 percent. The big differences were in the nonresidential and values. In the first category, Utah showed a huge increase of 64.6 percent compared with a national increase of 17.5 percent. The changes in valuation were just Utah witnessed a drop the reverse in value of 6.5 percent while the United States experienced a 16 percent non-buildin- all-tim- non-buildin- state laws allowing banks and The Supreme Court agreed, February 25, to decide the constitutionality of g Mountain Bell Requests Increased Rates Mountain Bell today filed new tariffs with the Utah Public Service Commission requesting an increase in telephone rates. The proposed changes will increase monthly basic service revenues by approximately ten percent; there will be an upward adjustment in long distance calls within the state, increases in service connection charges and other selected items. This is the first requested increase since 1969. John E. Lattin, Vice President and General Manager for Mountain Bell cited inflation during a time of unprecedented growth as the reason for seeking higher telephone rates. "Our construction program has been stepped up in recent years to meet the demands of new customers and to continue high quality service for existing customers. We have invested S176 million for construction of new telephone facilities in Utah during the past four years and an additional 170 million will be spent during 1974. "Although part of the budget increase can be attributed to a record number of new customers during the past five years, most of it is due tod higher costs. Since 1968, the price of copper has risen 84. During the same period the average investment per telephone has increased from $445 to $545 at the end of 1973. Overall wage costs have risen 78 which includes the wages of 998 additional employes needed to keep up with Utah requirements. Everything we need and use costs more," Lattin said. He explained that the telephone new has employed company avoid repricing telephone rates before now. "We have absorbed much of the effect inflation has had on our purchasing power by getting more done through mechanization. The requested increase totaling $15 million annually is required to assure 'to . g non-buildi- Report to the People The Salt Lake County Government Study Commission will present its Report To the People of Salt Lake County to be the Board .of County Commissioners, at 10:00 a.m., Monbetter operating day, March 4, in the Commission technology, and tight expense controls Chambers. The presentation will procedures culminate a one-yestudy of governmental conditions in Salt Lake County by a specially selected group of citizens representative of all areas of the County. The Report will recommend that voters adopt by referendum a new form of government with the following features: 1. Merges the governments of Salt Lake City, Salt Lake County and 24 DETROIT (UPI) Despite a special improvement districts into a sharp drop in new car sales caused single unit known as Salt Lake City, by the energy shortage scare, the and County; top officers of General Motors Corp. 2. Establishes 15 community counhave declared that the long-tercils for purposes of planning and growth trend for the industry points policy development at the local level; 3. Legislative, budgeting and taxing upward. ' will in a reside "'Our confidence in the future of authority and council; automobile industry is un. the county dty 4. Chief executive officer will be a shaken," said GM Chairman Mayor elected county-wide- ; Richard Gerstenberg and President 5. Along with the Mayor and CounEdward Cole in their annual report cil other elected officials will be: five to more than 1.3 million sharemembers of each community council, the Assessor, Attorney, Auditor, holders, February 21. Gerstenberg and Cole promised Clerk, Recorder, Sheriff, Surveyor and the new cars on the drawing boards Treasurer. The Report will include a computed now will meet the demand for Plan of Government for Salt Lake luxury and convenience in a small Ctity and County, reasons for the car that are usually associated Government Study Commission's cars. with full-siz- e recommendations, staff reports and GM spent $1.2 billion in 1973 to commentary by the Commission memexpand and modernize facilities bers, and a review of methodology. If agreed to by the voters in March and may top the record $1.4 billion of 1975, officers for the new govern- - spent in 1965 during 1974 because of the needs to convert plants that now ment will be elected in the fall of 1975 and the new government will become build big cars to small car operative January 1, 1976. production. ar . GM's Report Optimistic on Auto Industry - m , continuance of the company's ability to provide outstanding telephone service throughout the state," he said. . financial institutions to repossess automobiles without either advance notice or a hearing. The Justices accepted for oral arguments and a decision next fall or winter a test case from Chicago challenging an Illinois repossession statute. The repossession suit was initiated against the Mercantile National Bank of Chicago and Illinois Secretary of State Michael J. Howlett. The bank was sued by Alfredo Gonzalez in a class action suit. He told a three judge District Court that the Illinois auto repossession statutes were unconstitutional, CONSTRUCTION SLUMP WORRIES WHITE HOUSE NEW YORK Washington sources say President Nixon has his antispending stance in favor of federal aid to the uYopped nation's economic problems. The President is said to be particularly concerned about the drop i n new housing construction. It is a big employer. Commerce Department figures show new housing was down 13 per cent in 1973 to 2,041,600 from the 1972 total of 2,356,600. The 1974 total is being estimated at only 1.5 million units. Coupled with a slump in commercial construction, it indicates a major drop in the job market especially as it trickles down to thousands of building material suppliers. Dodge Reports, total conAccording to McGraw-Hill'- s much as 20 per cent from 1973 decline as struction this year may of and could throw some 700,000 out work. This, say economists, could happen because of diesel fuel and gasoline shortages essential for construction equipment and delivery trucks. Also, that the industry will feel the fuel shortages for months tocome even if the Arab oil embargo is relaxed. . The White House has started its program to aid the sluggish construction trade. The Administration committed $6.5 billion ( B ) last week for home building loans. Federal Housing Authority and Veterans Administration mortgage rates are being eased at least of one per cent from 8 Vi to 8V4 per cent er climb is not yet at hand, that hint The end of the board of the comes from those close to the Advisers. President's Council of Economic They are quoted as saying consumers will face "some big price increases". through the first six months but hope it will " "taper of f somewhat during the summer and fall months. To the businessman it means a sales dip on growing con cost-of-livi- three-memb- er sumer price resistance. set manufacturing trade: A record 9.3 Bright side of color-Tmillion units were sold in 1973 and thus far this year shows it may repeat, But some in the trade expect a sales dip of up to 10 per cent, because of reduced consumer spending for luxuries. side of TV trade picture: Federal agencies win soon have the industry on the carpet. Reason : Fires and electrical shock from TV, sets have been mounting because of malfunctions. Statistics show nearly 100,000 sets were recalled last year because of safety factors. This may bring about stricter federal fegutaUogs. V Not-brig- ht Supreme Court. Decisions (See details page 4) because they failed to provide him "due process of law" under the 14 2w one-quart- Amendment. The lower court ruled that the bank repossessed the car in violation of the Illinois statute because Gonzalez was not in default on his payments. The court added that Gonzalez had no standing to challenge the law on constitutional grounds since the law wasn't properly applied in the first place. Ask BRS This column of questions and answers on federal tax matters isprovided by the local office of the U.S. Internal Revenue Service and is published as a public service to taxpayers. The column answers questions most frequently asked by taxpayers. Q. Is it true that a retiree may be entitled to a tax credit for 1973 when he files his return? A. Yes. If you are a retired U.S. citizen or resident, had $600 of earned income in each of any 10 calendaryears before 1973, and had retirement income during 1973, you may be entitled to a tax credit. In addition, just by filling out a few lines on Schedule Ft and your tax form, you can get the IRS to compute the retirement income credit for you. See your tax form instructions for details. Q. My husband and I are legally separated. I have custody Of our daughter. Does this mean I can claim her as a dependent? A. That depends. First, you and your husband together must have furnished more than one half of the child's support for 1973. Secondly, the child must be in your or your husband's custody for more than half the year. If these conditions are satisfied, then generally the parent having custody of the child for the greater part of 1973 is entitled to the dependency exemption. However, there are exceptions to this rule. Your husband may be entitled to the exemption if he contributed at least $600 toward, the child's support during the year and the decree of separate maintenance or a written agreement specifies that he is entitled to the exemption. Another exemption arises if he paid $1,200 or more of support for the child in 1973 and you do not establish by a clear preponderance of the evidence that you furnished more for support. Q. I heard that there are five tests that must be met for a taxpayer to claim a person as a dependent. What are they? A. For a person to qualify as your dependent for 1973, the following tests must be met: 1 ) You must furnish over half of the dependent's total support during the calendar year; 2) Unless the person is less than 19 years of age e at the end of the year or a student during five months of the year, you may not claim him as a dependent if his gross income is $750 or more; 3) The person must be a member of your household and live with you for theentire year or be closely related to you; 4) He must be a citizen or national of the U.S. or a U.S. resident, or a resident of Canada, Mexico, Panama Canal Zone or the Republic of Panama for some part of the year; and 5) The person must not file a joint return unless one is not due but was filed merely to obtain a refund full-tim- , |