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Show .V Joseph Kraft alt a!e Sfilmne Section June Tliursday Morning , Investors Fear Price Freeze B, Page 18 21, 1973 NDER ) PRIVATE States, Cities Must Bear Blame For Shorn Revenue Sharing Publisher-Hal- l Syndicate Hours after President Nixon announced the fre.ze on prices last week, the stock market and the dollar market began to tumble. With good reasons, which now need to be scrutinized care-fullfor the logic behind , s ' the drop in the markets 1 defines the requirements for the next step, Phase IV in the battle against inflation. The first trouble with the freeze is connected with Watergate. Rightly or wrongly. President Nixon is now a suspect figure. He has to deal squarely with concrete problems these days. It is no longer sufficient for him to palm off difficulties with political tricks and patriotic slogans. But the freere was not a practical a to practical problem. Mr. Nixon's approach chief economic advisers Treasury Secretary George Shultz, Herb Stein of the Council of Economic Advisers and Arthur Burns of the Federal Reserve Board were not its authors. On the contrary, the freeze was a purely politia move taken on the premise cal operation put together that it was better than nothing largely by Mr. Nixon himself. The announcement of the freeze reeked of rhetoric. And the measure itself is burdened by weaknesses bound to impress those who make the judgments which determine what the markets do. One obvious weakness is that the freeze is much too broad. Except for rents, wages and some farm products, it goes across the board. . If the lustre disappears from federal revenue sharing after only a short trial period, local government must assume some blamg. A new report indicates the programs purpose- have been largely distorted. A survey by the U.S. Treasurys Office of Revenue Sharing concluded that money distributed to local governments through revenue sharing has been liberally used to reduce municipal or state taxes, to acquire equipment or construct public facilities, to increase police, fire and other public employe salaries. These are financial matters that should be determined strictly by local responsibilities. tax source Federal sharing, done on a attached basis, was enacted on faith'; an experiment accepting the theory that city and county officials could fund their public service needs properly without close federal supervision over various grant and matching money projects. It was generally assumed that social welfare work previously financed through federal means could be shifted to competent local management through revenue sharing. Such assumptions havent been resoundingly vindicated by Treasury findings. The national administration has been phasing cut urban assistance programs in certain employment and neighborhood renewal categories. Instead of continuing these programs, too many cities have used shared revenue to build sewers, buy fire engines, hire more policemen or simply underwrite longtime budget expenditures. revenue-raisin- g y Unfortunately, this does not justify arguments for revenue sharing. Rather, it substantiates the counterclaim that local government cant be depended upon to n.eet a national concern; that city and state officials wont strengthen equal opportunity and reduce the menace of poverty with shared revenue, but will more likely cut taxes or benefit the bureaucracy. In defense, New Orleans Mayor Moon Landrieu, who joined in releasing the report, said first year reverie sharing might have been used abnormally, but this is because some financially starved cities felt obliged to grant pay raises and build much-needepublic safety or health facilities. He could have added that Congress, in passing the revenue sharing act, allowed a distribution, including localities that had to think up ways for spending this federal entitlement. d newly-acquire- d More to the point, however, local governments misconstrued the money to be a windfall, instead of an unspecified supplement to budgets that might well have to grow before all reasonable public needs are fully met. Mayor Landrieu said many cities channelled revenue sharing to capital improvements because they werent sure how permanent this new income source would be. By showing little confidence in it, these officials may have materially helped fulfill their doubts. Dont Have to Smell Bad By whatever name they are called, be it employes social fund, employes benefit fund or flower fund, they are subject to less than honest manipulation if they are not properly audited and periodic reports made to contributors. Worse yet, they can be used to coerce political contributions from reluctant employes. And contrary to what County Assessor Earl M. Baker believes, it is the County Commissions damn business what goes on the matter of flower funds. More important it is the publics business. Because flower funds in the past have not been a matter of public knowledge is the main reason they have been subject to abuse. This is the reason they have sometimes been a source of questionable, if not illegal, campaign funds. Money ostensibly solicited to provide ready cash for purcue of flowers for funerals of employes or relatives of employes in many instances has been diverted to getting the boss reelected. Now, there isnt an office anywhere in the country, in private industry as well as government, that employs more than a half dozen people where the office collection hasnt become a tradition, or pain in the neck, depending on ones point of in time-honore- d view. Solicitations are made for a plethora of reasons, the Christmas party, birthday presents, retirement gifts, flowers for sick employes, baby gifts and on and on. Some com- - panies have devised ways to control and irritating collections. These range from an outright, autocratic ban to divcoffee, erting the profits from soft drink and similar machines to such purposes. The desire of employes to give parties, gifts and flowers is no less strong among government employes than it is among those in the private sector. But, in neither case should there be any coercion behind the solicitation and in government there must be absolute assurances that such money will not be used for political causes. time-consumi- coin-operat- Flower funds, by whatever name, do net inherently smell bad. It is only when they are coerced that their aroma becomes noxious. The stench becomes overwhelming when the money is used for the perpetuation of an elected officials stay in office. The present Salt Lake County ordinances regulating flower funds should be amended to permit them, but under provisions for written rules demanding voluntary collections, and providing for accurate and complete regular accounting of receipts and disbursments, in writing, to each employe involved. Copies cf these reports should also be forwarded to the county commission and made part of its minutes. Such a procedure will make sure the money in a flower fund buys only flowers and not more votes for the boss. It will also curb the coercive aspects of such solicitations. Its the Spirit That Counts Exchange of gifts between kings and potentates, presidents and premiers is a custom as old as civilization itself. Thus President Nixon and Soviet Communist Party Chief Leonid Brezhnev were merely doing the expected in giving each other lavish presents this week. To most of us the expensive automobile gaest and the antique silver and cut glass he received in return are posh items indeed. But the truth is that the art of regal gift swapping is in decline. Mr. Nixon gave his Measure the against this 10th Century Nixon-Brezhne- exchange v list of goodies Ahmed who wanted to be vizier, sent the caliph, III, later known as the Louis XIV of Arab Spain: Ibn-Suhai- Phase 1, 2, 3, 4, .5, 6, etc. The Public Forum man will stay long Trust Betrayed Editor, Tribune: In reply to Evangeline Tappen from Bicknell. In my opinion President Nixon is guilty of public trust betrayal for unprofessional standards of conduct to gain reelection, and made an obvious attempt to perpetuate power in the Nixon name under the guise of national security. We should never have to say long live our king in the United States. JOHN G. RAINEY Wendover, Utah Forum Rules Public Forum letters must be submittei exclusively to The Tribune and bear writers full came, signature and address. Names must be printed on political letters but may be withheld for good reasons on others. Writers are limited to one letter every 19 days. Preference will be given to short, typewritten (double spaced) letters permitting use of the writers true name. All letters are subject to condensation. Would Be a Match Editor, Tribune: I read with interest your ediThe torial on June 10, Prospering Ombildsman. growth in the utilization and public acceptance of the concept in Utah is encouraging, and I am hopeful that the trend will continue. I have been concerned with the Congress ability to efficiently and effectively represent citizens when problems arise from the actions of federal agencies. Unfortunately, sometimes officials in agencies or bureaus make decisions based on federal laws or regulations which impose unnecessary hardships on the individuals involved. Often, in those situations, people contact their congressman as a last resort, seeking a sympathetic hearing. But a congressman very often lacks the resources, the expertise, the time or the authority to properly investigate cases On May 9 I introduced a bill, by 11 other members of Congress, to establish an Office of Congressional Ombildsman, to whom senators and congressmen could refer difficult cases they are unable to solve for their constituents. By developing experts in particular areas, such as Social Security or Veterans Affairs, the ombudsman and his staff would be a match for the bureaucracy whenever there are disagreements rs to the fairness of a decision. Such a centralized approach would also allow a thorough evaluation of the practical effects of laws and regulations. Patterns of complaints and confusion would be compiled so that the problems could be identified and corrected. WAYNE OWENS U.S. Congressman fur-line- Orbiting Paragraphs Occasionally, we long for a simpler day, when there were fewer profound commentators and every question had only two sides. Is? Ridiculous!" rv0 trQ 010 Five hundred thousand miskals of gold coins, plus 400 pounds of crude gold or a total of almost 5,000 pounds of gold; 200 pounds of silver ingots; precious woods for incense burners, musk and camphor; 30 lengths of Still Limps Along d brocaded silk, five ceremonial tunics, 10 Editor, Tribune: Seeing a prediction come true wTaps, seven of which were made of would ordinarily give me some satisfaction, but in48 white fox; six silk robes from Iraq; items stead, it gives me only a deep feeling of concern. of apparel and 100 pieces of night clothing; The prediction that 1 made several years ago 100 skins of marten and mink, six ceremonial was that the Medical Examiner Program would tents, 48 silk and gold trappings. prove a failure and would never reach the goal And that's not all. The would-b- e vizier that it was intended to reach. The Tribune was added 4,000 pounds of spun silk, 30 wool rugs, kind enough to publish a long, bitter letter that I wrote at the time the medical examiners bill was 100 prayer rugs, 15 silk rugs; 100 pieces of armor for battledress, 1,000 shields, 100,000 largely destroyed as it passed through the legislative sessions. In the original bill, the medical exarrows; 100 horses, 5 mules, 60 slaves and a aminer was given the authority to investigate large quantity of rtone blocks and wood for deaths in the same fashion as is done in other construction. states. But as the bill emerged, this authority has Compared to that stack of loot, the fancy been removed and tht medical examiner was left auto and the old silver goods are as nothing. as a subservient functionary to other agencies. He in But never mind. As Japans Emperor Hirohi-t- o was called upon in some deaths and ignored others. This destroyed the basic purpose of a Medcan testify, it Isnt the value of a gift but ical Examiners Law which is designed to be the spirit behind the giving that really counts. applied in all cases. The emperor stopped over in Alaska in 1871 Dr. James Weston, who is now leaving the ofen route to Europe. Mr. Nixon flew' up to fice of medical examiner to move elsewhere, has greet him and the major gift the President Cone an excellent job considering the circumstancbestowed was a photograph of himself. es under which he has worked. He has been handi- Bill Vaughan's '( y long-delaye- d Tell somebody in Washington it's a nice day and he will refuse to confirm or deny it. capped both by this lack of authority and inadequate funding. I think that the state owes him thanks for trying as long as he did. I called the program a poor, crippled thing in my former letter and that is still a correct description. I think that the Legislature should have the courage Jo take one of two steps. They should either revise the legislation so that it complies with the true intent of a medical examiner law or they should have the courage to admit that it is a failure and eliminate it. Our medical societies and bar associations should also play a role in its future course. It is highly unlikely that any in this frustrat- ing position as it now functions. JOHN H. CARLQUIST, M.D. . Chief of Laboratories . LDS Hosptiai actions are relatively of selective freeze is Nixon's economic adof freeze required for IV. Investors Fear Freeze Editor, Tribune: I would like to call your attention to an example of biased reporting. I am referring to the article entitled Scientist Hits Population Resources Theories by Robert S. Halliday, Tribune staff writer. The article was a summary of a speech given at the American Association for the Advancement of Science meetings at the University of Utah. Of the hundreds of knowledgeable scientists attending the five days of meetings, I cannot understand why you snould choose to headline only the remarks of a man who is at best biologically naive. Statements in the article such as the earths utilizable resources are infinite are ridiculous and do not require further comment. What is required is a less biased coverage of future scientific meetings. K. W. HUGHES, PlrD. Park City He Was Robbed A second problem with the present freeze is that it puts no stopper on wages. With prices frozen and no limit on wages, the investing community naturally foresee a squeeze on profits. That vin itself is a powerful depressant on markets. To be sure, wages have lagged behind profits for more than a year now. Union leaders have shown notable restraint in asking for increases, and to apply a wage freeze now would end that relatively cooperative attitude. But the alternative to a wage freeze is not to do nothing. What can be done what at least some of the Presidents advisers wanted was a return to the principle of establishing general guidelines for admissible wage rises. That way the workers can catch up w ith inflation, and management will have assurances that all profits will not be eaten up by wage demands. Like selective control, wage guidelines should be part of Phase IV. Editor, Tribune: On June 12 I attended a ball game at Derks Field. While there I purchased of beer from the vendor in the grandstand which cost me $1. If this is the kind of prices being charged I can see why not too many people turn out for the games down there. After all, you can stay home and listen to the games on the of beer for $1.35 to radio and purchase a of the $1.50. Lets stop this kind of robbing six-pac- k public. WILLIAM HARDENBROOK Then there is the matter of taxes. The best way to hold the line on inflation is to sop up demand. The present inflation has been mainly fueled by private demand for consumer goods and business demand for new plants and equipment. The obvious way to restrain that demand is to raise taxes. To be sure, the exact timing and level of any tax change is problematical. There are signs that the present boom is topping out by itself. Too stiff a tax rise could topple boom into bust. But in the course ol recent discussions, there emerged one tax proposal that seems sensible for all economic seasons. Not Supported by Record Editor Tribune: In the June 15 editorial opposing the recent decision of Secretary Morton concerning the Kaiparowits electric generating plant, the statement was made, relative to the impact of the plant on the environment, . . . based on testimony 'by officials and engineers of the consortium planning the projects, they intend to observe the strictest of environmental standards. quote from the record of hearings held in Salt Lake City, May 26, 1971, on the Kaiparowits plant: . . . We would estimate by that time (completion of the plant) it may be feasible to reduce the emission concentration (of S02) by about 80 percent 1 ... would estimate that by 1978, 30 percent reductions over present' NO concentrations may be obtainable, increasing to 60 percent efficiency by 1980 . . . (Dr. J. L. Shapiro, principal environmental engineer, Bechtel Corp.). On pages 24 and 26 (of the Sen. Moss: company report) it was said 99.5 percent fly ash could be removed and 80 plus percent of S02 removal is now practical. Is your company, then, committed to meet these amounts now that are named, 99.5 and 80 plus on S02? . big companies, where price easy to monitor. That kind what at least some of Mr. visee wanted. It is the kind Phase Claims Bias . . The right way to apply a freeze is selectively. Controls must be aimed at the basic products which fuel inflation. They need to go ag'inst the we ... The idea is to tax automobile engines by horsepower. Such a tax would hit the rich who pup chase big cars, not the poor or middle-incom- e buyers. Violate Now, Not Later The President and Treasury Secretary Shultz rejected that proposal on the ground that it would violate Mr. Nixons no tax increase pledge. But the pledge will probably have to be violated in Phase IV. It is difficult to believe the American people will hold the President to the pledge on taxes if he honestly explains the havoc being wrought by the inflationary surge which he any-wa- did not forsee. The key, is honest explanation. Inflationary pressure is built into the economies of most advanced countries. But the President has to face the facts, he has to acknowledge that inflation is a problem we will have to fight for years and years to come and he has to move quickly. He has to apply Phase IV long before the y freeze runs out. Visiting Cartoonist Mr. Titus (executive vice president, Arizona Public Services Co.): I think the commitment is to meet any federal, state or local standards. . . Since air quality standards are not emission standards, and, in fact, allow considerable deterioration in previously uncontaminated air, no commitment to reduce pollutants to the specified levels was actually made. Units 4 and 5 of the Four Comers plant were built with electrostatic precipitators to remove fly ash. The company reports these are operating at 97 percent efficiency. Note that 97 percent is quite different from 99.5 percent, and results in six times as much emission of fly ash. I also recommend a visit to the area of the Four Comers plant tc obtain a visual impression of the efficiency of fly ash removal. If The Tribune has more recent testimony on Kaiparowits, it should make it public. Otherwise, such editorials are highly misleading, if not outright misrepresentations. The power companies have not yet demonstrated their ability to remove high levels of pollutants from the plant gashes, nor, as is evident from the record, have they committed themselv es to observe the strictest of environmental standards. Perhaps this has something to do with Secretary Mortons decision. JACK T. SPENCE well-traine- Logan y Well orders. Senator, I was just loyally following |