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Show THE SALT LAKE TIMES FRIDAY, JUNE 27, 1975 Page Four Inflation Makes Colorado Project Costs Soar, Adds To Time Table THE SALT LAKE TIMES UTAHS Combined with The Sail Lake Mining & Legal Newt Published Every Friday at Salt Lake City, Utah FEARLESS paid at Salt Lake Gty, Utah 4 711 South West Temple Telephone Second Class Postage INDEPENDENT When the Colorado Storage NEWSPAPER project was approved almost 20 Salt Lake Gty, Utah 84101 years ago, its total cost was estiGLENN BJORNN, Publishes mated at $760 million and its This publication is not owned or controlled by any party, clan, clique, faction construction time at 15 to 20 or corporation Number 12 years. Volume 55 Now at a date when original estimates caled for construction to be nearing completion the date for target completion apas off as at the almost far pears inception of the project, and cost estimates have more than tripled, according to Utah Foun- dation, the private, nonprofit I Oil this, the utility industry public service agency. of return rates adequate Basic reason for the existing leader observed, it appears in general that commissions situation is the inflation which appreciate the needs of electric utilities both for rate in- has engulfed the entire economy, creases and automatic adjustment clauses.' (the Foundation points out in a brief released 11118 In short, signs are growing that regulatory bodies week. Similar problems are and the public are ready to accept the fact that no in- faced by the Interstate Highway and other major public dustry and no business can be expected to absorb the system works projects which are fincosts of inflation. Inflation is a cross everyone must anced by annual congressional bear equally. Only by doing so can the light of hope, appropriations. River Storage progress and investment in basic industries continue to The Colorado Project was first authorized by burn. congressional action in April, 1956, providing for four major storage dams (although no money was then appropriated for one of them, the Curecanti in Colorado) and 11 partici- 364-846- J j i j j : j anticipated congresional appropriations to the project, over-a- ll costs shot upward, the Foundation reported. Through June 30, 1975, more than $1 billion will have ap- Y propriated for the Colorado Pro- ject, and estimated cost to complete is nearly $1.5 billion more a figure considered certain to go still higher because of continuing inflation. On the basis of present estimates, not providing for future inflation, cost of the completed project would be more than three and times the original estimate. Authorized ceiling for project costs was raised from the original $760 million to $1.37 billion with an escalator factor tied to the construction cost index to provide for future inflation in 1972. Additional units were added to the project, and funding provided for Curecanti Storage Dam, in 1962, 1964, and one-quart- er 1968. Some supporters of the Colorado Project believe that this fact will influence future sessions of Congress to increase appropriations to the project in order to hasten completion. Judging by editorial opinion and general comment Other observers are more cauof to is favorable World War the to sentiment dams were designed repeal provide tious in their estimates but by public most methods of reckoning, the II Federal excise tax on freight and passenger service. completion date for the project The tax is inflationary, it works a hardship both on conappears still 10 to 20 years in i would be sumers and on many producers, and its repeal New Mexico, and Wyoming to the future about as far away as hard-pressed of immediate and important help to the jmet their commitments to the it was estimated to be when the project was authorized in 1956. "Grossly Discriminatory" 1 railroads and to tlie other commercial carriers. Now another forceful argument on the repeal side lias been advanced by President A. L. Ilammell of the a grossly llailway Express Agency. He terms railroad-owned element facing the express business and other common carriers of smaller freight. Railway Express, he pointed out, has had to collect more than $159 million from the users of its services since the tax came into existence in December, 1942. But parcel post shippers are free of the tax. And this discrimination, to quote him directly is in addition to the parcel post shippers advantage of having had the taxpayer underwrite part of their business transportation of dollars. Even expenses to the extent of multi-billiothat isnt all. Railway Express, like other carriers, has had to take millions of dollars out of its own revenues to meet, the costs of assessing, collecting, transmitting and 0 reporting the freight excise tax on more than separate and individual business transactions. Socialized business which parcel post certainly is almost always has some kind of an unfair tax advan-tagjust as it almost always runs at a taxpayer-born- e deficit. Heres another prime example of the way socialism saps the taxpayer. iij.ee ns 2,140,-000.00- j Nevadan'd Caftfornil the- -L Par'll- - cipating projects were designed Increase Of 14 Percent to permit the Upper Basin States to put their own share of Col- - Seen In Premium Tax orado River water to use in To State ricultural, industrial, and cul- Payments Premium taxes paid to the inary developments. Waters of the Colorado River System were Utah Tax Commission by Utahs divided between states of the 968 insurance companies were Upper and Lower Basins by the up 14 percent for 1974. Commissioner C. N. Ottosen River Compact of said taxes paid by the companies At the time of authorization, totaled some $8,946,234 or about total cost of the project was $1.1 million more than 1973. estimated at $760 million, and The general increase in premwere down scaled iums collected by the insurance original plans to keep the cost well below $1 companies amounted to a 14.6 bilion, a figure never previously percent over the 1973 report. Commissioner Ottosen said the approached by any reclamation increase was a result of a myriad project. As inflation kept the construc- of factors including increase in tion cost index spiralling up- protection by policy holders case ward and construction schedules by inflation and population were slowed by the lower-than- - EASED GRflPEVIKt The Salt Lake County Grand Jury investigators have been questioning Salt Lake City officials about misdirected and missing municipal bonds, sources said this week. The investigation apparently involves allegations that one set of older municipal bonds were found in the wrong government offices and a newer set is missing. Sources in city financial ofices said the grand jury investigators have been studying the circumstances surrounding the bond question for about one week. A plan to purchase some 10 acres of the southern shore of Bear Lake with an option to purchase up to 165 acres more was made known this week by Utahs Governor Calvin L. Ramp-toHe told officials of the Utah Division of Parks and Recreation to obtain appraisals of the property and present the purchase plan to the state Board of Examiners next week. Harold Top-pettdivision director said the calls for spending $200,000 plan to purchase the 10 acres owned by 2 persons which contains some of the only natural sand beach on the beach. n. s. Bounties for coyotes and bobcats will not be paid after June 30 acording to Utah Agriculture Commissioner Joseph Francis. He said in acordance with action taken by the State Department of Agriculture and Wildlife Damage Prevention Board he has notified al area predatory control officers about the change in the law. Francis said all county clerks have ben advised they should not issue certificates for claims of bounties to be paid by the Utah agency after June 30. President Ford has announced intention to nominate a former Utahn to be assistant secretary of the Treasury in charge of economic policy. Sidney L. Jones will succeed Edgar Fiedler who has resigned effective upon the nomination and qualification of his succesor. Since January 1975 Jones has been counselor to the Secretary of the Treasury. He joined the White House staff in July 1974 as deputy assistant to the President and deputy to the counselor for Economic Policy. his out regard to price. And the consumption of meat by consumers also is beyond control 50 million housewives makes their decisions independently, and if they think prices are too high they buy another food. Finally, the clinching fact is found in the packer s profit experience. All monopolies are big profit milkers In thats one reason theyre created. Packing profits have A new music building and been consistently low for many years much lower than major expansion of the law Many changes have taken place in livestock buying, for manufacturing business as a whole. building library will be among high priority building needs of packing plant operations, and meat merchandising over the University of Utah during recent years. Entirely new concepts of the function of a the next Legislative session. Dr. meat packing industry have come into being. And, this David Gardner president of the University of Utah said during a industry has become more and more competitive. meeting of the State Board of As an example, in the last 20 years the commercial Regents Capital Facilities Committee. of livestock Dr. Gardner said an exthe four become has by slaughter top packers pansion of the Law Library is a materially smaller proportion of the total slaughter. necessary to provide both storage Many new slaughtering and packing companies have and reading space. been established, and many more have expanded. Interior Secretary Stanley Actually, monopoly control in the packing industry Where thousands Hatthaway said this week that is impossible for several reasons. File supply of livestock the Kaiparowits Power Project is important to the nation and of listeners enjoy is not subject to control 4 million farmers and ranchers that hell back the construction do the producing, each makes his own decisions, and each concert music and of the project. The Interior Deis an independent operator. The supply of meat to conpartments is preparing a decision news on a site for the project in southis every day! sumers not subject to control either most meat is perern Utah with a secretarial level ishable and it must move quickly into consumption with- decision expected this summer. e, There's No Monopoly Packing dial |