Show The Herald Journal Northern Utah And Southern Idaho Covering Bridgerland Vol70 Logan Utah Thursday July 26 1979 No 182 (h 28 pages sections 2 ft Fifft:in Cents Bad news consumers WASHINGTON (L'PI) — Consumer prices jumped another 1 percent in June and the rate of inflation during the first half of 1979 showed its biggest six-mon- in 28 jump years the government reported today Soaring energy and housing costs last month more than offset encouraging moderation in retail food prices the Labor Department said The 1 percent June increase in prices paid by consumers was almost identical to advances in the first five months of this year The Labor Department said the dismal 132 percent rate of increase during the first half of the year was the sharpest rise for any period since the 14 increase between September 1950 and percent th February 1951 In comparison prices rose at a 98 percent annual rate during the first six months of 1978 Alfred Kahn the administration's chief inflation fighter told Congress today the oil producing nations are mainly to blame for the US inflation woes "Except for OPEC we would clearly be out of the double digit rates by now" Kahn said He told Congress' Joint Economic Committee he hoped OPEC countries "will recognize they do not prosper by impoverishing their customers" The Labor Department report showed the main culprits were energy and housing costs Gasoline prices at the pump climbed 56 percent and home heating oil was up 86 percent the department said Gasoline costs have now surged at an annual rate of nearly 61 percent in 1979 The one bright spot was food which rose by just 02 percent for the smallest rise in 11 months The small June increase represented a continuation of the moderation trend which began in March Grocery store prices actually registered a decline in June The Labor Department said the main reason for the improving food price picture was a sharp drop in meat prices Pork poultry and egg prices also fell The June Consumer Price Index stood at 2166 That means that goods and services which cost $100 in 1967 were priced at $21660 last month The housing index rose 13 percent the fifth straight month of large increases Besides heating oil home prices rose 15 percent hom rninii ing costs were up 21 prreent mid repairs msls jumped 09 percent In another duse of gloomy news the Labor Department said the buying power of the typical family of four decreased by u8 percent last month and was down by 35 percent over the past year The Labor Department reports came on the heels of President Carter's forecast Thursday night that inflation would moderate during the second half of the year "My prediction is that inflation will decrease in the months ahead” he told his nationally televised news conference Carter said his administration still considers into be "the biggest single threat to the American people both rich and poor and to the future of the nation's economy in the months ahead" Carter said he would stick to his current economic game plan despite the onset of the recession because to do otherwise would risk further inflationary pressures flation Carter urges Senate: 6 a Inflation a a a a a - 132 a a a a 1 a saw Annual Rate a a a a iieiei a a Don’t gut windfall tax iiii a a MMMMi June 1979 Consumer Price Index tf § WASHINGTON (UPI) President Carter has appealed to the Senate not to give in to a "massive struggle" by the oil industry to gut the windfall profits tax passed earlier by the House Carter said Wednesday night the United States will not reach its energy goals if the 60 percent windfall tax is weakened in the Senate "I want to serve notice tonight that I will do everything in my power to get such a windfall profits tax for America's energy security — because it is critical to the future of this country" Carter said in a nationally broadcast news conference He said Americans "overwhelmingly support” such a tax adding the House "has already passed a bill that will finance a sound energy program for our country and leave plenty of new funds and incentive for increased exploration and production of oil and gas in our own country” "Now it is the Senate's turn and there will be a t&afolvstrtijrgle to gut (he windfall profits tax bill" Rationing bill in trouble WASHINGTON (UPI) — House Speaker Thomas O'Neill said today many Democrats who voted to scuttle a standby gasoline rationing bill Wednesday night did not know what they were doing and are ready to switch their votes “Iliey did not realize They had not been on the floor" O'Neill told reporters in explaining why the House adopted a crippling amendment to the bill which had weathered some test votes safely O'Neill said another attempt to pass the bill will be made next Tuesday "I have talked to at least a dozen members who regret their vote" he said The rationing bill one believed headed for easy passage was puUed off the floor Wednesday night by the leadership after the House adopted an amendment that made rationing virtuaUy impossible to impose by the president O'Neill’s assessment was echoed by House and Democratic Leader Jim Wright ll assistant leader John Brademas "A lot of them just did not understand what was in (the) amendment” Brademas said In a news conference three hours after the vote President Carter chided the House “This action today by the House illustrates the timidity of Congress in dealing with a sensitive political issue” Carter told a news conference an hour later He complained that proposed restraints could tie his hands even if there were a 50 percent shortfall in as D-I- gasoline supplies and he needs the authority he has requested For hours Wednesday the bill seemed destined for d approval in view of reports of Americans' worries over fuel shortages Speaker Thomas O'Neill said early in the day that his canvass showed Democrats for the bill by a 10-- 1 margin Several members said long gasoline lines had brought about a switch in the mood of the country toward the need for rationing in an emergency And the bill weathered a series of tests Wednesday afternoon by comfortable margins 7 Then around 6 pm the House voted for an amendment by Rep Benjamin Gilman that would take the supposedly streamlined rationing plan back to a complicated two-staprocess of congressional approval similar to the one that was blamed for the failure of a standby rationing bill in new-foun- 232-18- Y ge May What happened to change the bill's course? floor manager of the Rep John Dingell bill said “There was a series of misunderstandings partisanship concern over rationing the lateness of the hour some sense of mischief by some of our colleagues and some confusion" "I think we can turn the vote around" Rep Toby Moffett predicted Proponents of the emergency authority had wanted the process streamlined to allow the president to order rationing relatively easily Carter said "If this happens then we cannot reach our energy goals" Reaction to Carter’s speech from the oil industry was predictable "We continue to believe that new taxes in addition to those already on the books are unnecessary” said Charles DiBona president of the American Petroleum Institute "The government will take 60 percent of any real increases in revenues under present law and that will provide substantial funds for new energy initiatives and rebates to the poor" DiBona added: "Under existing taxes an added 2 million barrels a day of domestic oil can be produced With the proposed for Americans by the mid-198new tax a million barrels a day will be lost" a Sen Russell Long chairman of the Senate Finance Committee said he wants the legislation which would tax the profits oil companies will derive from the sale of newly decontroled domestic oil on Carter's desk by Oct 1 9 But Long did not say how big a tax will be presented to Carter The Finance Committee was not expected to reach any final conclusion on the complex issue today During an earlier While House meeting with committee members Carter urged them not to weaken the tax and said he wants the revenues to aid poor people hit by higher fuel bills and to develop alternative energy sources Gov Ella Grasso of Connecticut Wednesday cited estimates that the cost of home heating oil has risen more than 175 percent in the past six years to urge passage of a "Crisis Intervention Program" to help the poor this winter "For many of our poor and elderly that kind of cost will force a decision among oil to keep from freezing food to keep from starving and medical care to stay alive" Mrs Grasso told the House Ways and Means Committee Navy rescues 75 Inside today Gov Matheson will lead the Old West Parade in Logan Friday the opening day of the Festival of the American 5 West boat people today 2 About Cache Agriculture Almanac 12 21 14 Jack Anderson Jim Berry 14 2 Births Classified ads Comics Crossword Editorlalopinion Family corner Horoscope Dr Lamb Ann Landers Letters to the editor News of record Obituaries People Sports Theaters Utah-ldahroundup Weather 25 20 20 14 4 20 23 24 14 2 4 4 By United Press International A US Navy patrol boat today towed a fishing junk with 31 Vietnamese refugees to safety near the 7th Fleet Subic Bay base in the Philippines and a guided missile cruiser rescued 44 refugees from a leaking boat in the South China Sea Planes from the 75000-to- n carrier Hawk well as the as guided Kitty missile cruiser USS England and other US naval craft with Vietnamese linguists aboard were in the South China Sea area today on refugee patrol The England took aboard a group of 44 refugees four of them ill from a boat that was “leaking badly" and bad a damaged engine a Navy spokesman in Washington said In Washington the Carter administration asked Congress for $207 million to construct and operate processing centers in Southeast Asia and to cover US military costs for air 20-fo- ot 10 23 3 o 4 must mean "Mostly fair" is the forecast which be unfair possible that it will occasionally 4 thunderous rain could occur as the day wanes and sea search for refugees In the Philippines reports from Subic Bay said the 31 refugees towed by the patrol boat in clean clothes and and healthy were not looking well-fe- d allowed to leave their fishing junk docked near the US naval base located about 60 miles northwest of Manila 30-fo- ot Four Filipino soldiers stood guard over the vessel which carried men women and children One trooper said the Vietnamese will be towed to a remote island refugee camp in the central Philippines A spokesman for the Vietnamese said the group left Cam Ranh Bay six days ago and drifted to the Philippines where it was intercepted by a US Navy patrol boat after slipping into Subic Bay The intensified mercy mission was ordered by Carter in response to worldwide concern for the plight of the 250000 of whom were refugees believed to have perished at sea Haig tells the Senate SALT pact is flawed WASHINGTON (UPI) NATO commander Gen Retired -Alexander Haig today urged the Senate to postpone approval of the SALT II treaty until its "serious” flaws are resolved Haig's testimony followed much of the reasoning cited by influential Sen who Wednesday Sam Nunn D-said he could not support the treaty without a clear commitment from the White House to upgrade national defense "Until the Senate assures itself that the flaws have been resolved I urge that ratification of SALT II be held in abeyance” Haig told the Senate Armed Services Cora miltee ”I consider SALT II contains flaws which should be given serious consideration” said Haig who left his NATO post last month and then retired from the Army as a four-sta- r general He is considered a potential Republican candidate for president Haig said among the flaws in the SALT II pact were its failure to place restraints on the Soviet Intermediate range 0 missile and the medium range backfire bomber Immediate reaction from adSS-2- ministration officials was one of relief that Haig had decided not to oppose the treaty but rather to state his concerns bluntly Haig also strongly insisted a temporary ban on deployment of US ground launched cruise missiles in Europe should not be renewed despite Soviet pressures to the contrary The temporary ban expires Dec 31 1981 As expected Haig emphasized the "dramatic shift" in the military balance in Europe by which the Communist Warsaw Pact forces have a 1 advantage in weaponry and personnel over NATO Haig said the failure of SALT II to restrain the Soviet SS-2- intermediate range missile and the backfire bomber had a "particularly troubling impact" on European leaders 3-- 0 jogger paces before the Frontier Street buildings set up to house the Great West Fair which opens Friday just south of the Spectrum at Utah State University The fair is one of the events included in the Festival of the American West which runs daily except Sunday through Aug 4 The fair A lone Jogging through the old frontier -- aw- - at noon daily and the pageant "The West: America’s Odyssey" begins at 8 pm in the Spectrum Other special events will be conducted dur ing the festival The Herald Journal will publish daily schedules of events (Herald Journal photo by Mike opens Litt) 5 |