Thursday, January 9, 1975 THE MICHIGAN DAILY Ford may use taxes, tariffs to cut oil demands Chrysler to unload ears through rebate WASHINGTON (A') - Presi- dent Ford is expected to an- nounce soon a national energy policy relying on oil taxes and tariffs to cut demand, and on opening new federal oifields to increase supply. An informed administration sources said yesterday the Pres- iderit accepted recommenda- tions centered on deliberately increasing oil prices three dol- tars per barrel but was s t i l1 pondering how to- compensate for the resulting economic im- pact. THE OIL price increase could raise gasoline prices 7.5 cents a gallon and draw some $18.6 billion a year from the economy at present demand levels. The soucesad thi woud be offse by a proposalisfor general tax reductions. The energy policy would re.- ject direct limnits on oil im- ports, reduction of fuel alloca- lions and gasoline rationing. Massive stockpiling of oil for emergencies would not be pro- woul be studsied by the N ational Petroleum Council, an industry advisory group. standards or a horsepower tax. But the source said auto mak- ers have agreed to improve ve- hicle mileage 40 per cent, so their 1980 models would average about 20 miles per gallon. Fo rd'sh energy policy wa x federal standards or tax credits to improve building insulation. In conjunction with the three dollar excise tax, administra- tion sources said Ford will out.- line a plan to set a guaranteed minimum on the price paid for imported oil-.a THE PURPOSE would be to guarantee a stable incrnne to insure development of new oil sources while keeping up cur- rent production levels. Developers of alternate sourc- es of energy would be guaran- teed a price equal to that now paid for oil'. Preparation of the national energy policy began last Jan- THE MICHIGAN DAILY Volume LXXXV, No.82 Is editeduand mngd by students at the University of Michigan. New's phone 764-0562. Second class postage paisd a AArbor, Michigan 48106. Sunday morning during the Univer- Abor, Micehigan 48104.Subscriptin, rates: $10 by carrier (campus area); $11 local mail (Michigan and Ohio); $1 no-local mail (other states and Summer session published Trues- Subscriptio rates $5.50 by carrier; (campus area); $6.00 local mail (Michigan and Ohio); $6.50 non- Richard Nixon ordered a "Pro- ject Independence Blueprint." It uary when former President was delivered to Ford in No- vember. SINCE THEN the administra- tion has been shaping Its poi- cies for presentation in Ford's first State of the Union address later this month and probably in a separate energy message to Congress, whose co-operation would be needed. Ford has set a goal of reduc- ing U.S. oil demand one million barrels a day by the end of this year. The source said his policy I would add a longer-range goal of limiting oil imports by l1985 to somewhere between 10 and 20 per cent of total U.S. de- mand, la substantial cut from the present 36 per cent. That would require reductions of demand and increases in en- ergy production. The source said Ford's forth- coming energy policy would in- clude price increases of three ported and domestic oil, though tariffs and excise taxes. 1 DETROIT (UPI) - Chrysler ' Corp., saddled with a 4 -month ! supply of unsold cars, will be- i gin offering cash rebates tol customers next week in an ef- i fort to cut down its inventory. , The action marks the first i large-scale price discounting on | new cars and light trucks since | the U.S. auto industry went into:i its steep sales slump. DEALERS SAY the rebates of $200 to $400 on selected models will put cash in the hands of , customers and could be more l effective than any across-the- bardL s~ti er r e. t all f C'hrysier within four weeks, dealers said. "THIS IS a legitimate sale, an honest sale," one downtowvn IDetroit Chrysler dealer said. '.It will help clean up the fac- tory inventory, our inventory and hopefully put our plants back to work." Ford reportedly is studying a similar rebate program to spark sales while General Motors plans to lower prices by making present standard equipment op- tional on some of its lower- priced models. Page Three ONE NIGHT ONLY! LUTHER 516 E. LIBERTY 3 SHOWS ADM. $2.50 whih igh nt b psse o t MEANWHILE, the Federal buyers mgtntepasdntoTrade Commission yesterday bTyer No. uomkrwl accused Ford Motor Co. of mak- bgthe nprecedntme sals ing false fuel economy claims incentve prramdSntdyines for its cars during the peak of massive media campaign. ls erseeg rss The sale will last nearly two The FTC said the country's months. Each week, Chrysler second biggest auto maker, will announce which cars or when it ran the ads, had no trucks are available under the pofta h vrg rvr program. A person buying one pro htteaeaedie of those vehicles can expect to could expect anything like the have a rebate check from jperformance the ads mentioned. Ride 'em cello Riding off to the world of music, Kevin Kosty cello to his motorcycle enroute to the Birmingham Orchestra practice sessions in Birmingham, Ala. AP Photo straps his Symphony Inflation forces By The Associated Press Rising costs and soaring unemployment have led thousands of Americans to seek relief from debt by going broke. Legally. The Administrative Office of the United States Courts says that if bankruptcy petitions continue at the current rate, there will be a record 231,660 in the current fiscal year ending June 30. DURING THE first five months of fiscal 1975, an average of 19,305 bankruptcy petitions were filed each month. That's 29 per cent above the monthly average of 14,912 petitions in the' same period last year. The previous all-time high number of bankruptcies was in 1967, when here 209,329 individuals and businesses filed petitions in U.S. district courts, largely because of what government of- ficials called "a big overextension in consumer credit."-' An administrative office spokesperson blames the current situation on "inflation and recession and the state of the economy." A NEW YORK schoolteacher and his wife who recently filed for bankruptcy agree. "I didn't expect prices to go up so quickly ...he said. "We earn $25,000 between us and we figured that would be enough to pay the bills. It wasn't. "We didn't have any big bills. It was just a lot of little things that kept adding up," the teacher said, explaining that he didn't want his name used because he was a little ashamed. "Going bankrupt was against all my principles - independence and all that stuff. But we had no other choice." The Federal Bankruptcy Act provides that you can go bank- rupt if your debts add up to more than your assets and you have no way of paying the bills. The government says most bankruptcy petitions - almost 90 per cent in 1974 - are filed by individuals. You cannot file for bankruptcy more than once every six years. STUDY LAW ini CALIFORNIA EASY TO QUALIFY O eR 650 ACCEPTABLE UN ITS, OR * JUST PASS EXAM IN SPECIAL INSTANCES * L.S.A.T. 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