THE MICHIGAN DAILY
Friday, September 5; 1975
THE MICHIGAN DAILY Friday, September 5, 1975
Ford reviews alternate oil law
"S
WASHINGTON (A) - Presi-
dent Ford is considering legis-
lative proposals to ease the im-
pact of suddenly 'emoving oil
price controls if a compromise
can't be reached with Congress
on extending them, Federal
Energy Administrator Frank
Zarb said yesterday.
Zarb told reporters the Presi-
dent was close to a decision on
three proposals:
-A special program to equal-
ize the cost of crude oil among
refiners, perhaps by federal re-
bates to independent refiners, fi-
nanced from the windfall pro-
fits tax on oil producers.
-STANDBY authority to allo-
cate propane and restrain its
price as natural gas shortages
increase propane demand this
winer.
-A measure to allow inde-
pendent retail dealers in petro-
leum products, such as gaso-
line station owners, to chal-
lenge in court any sudden
change in marketing arrange-
ments imposed by their sup-
pliers.
Zarb made the disclosure af-
ter the House Democratic lead-
er declared that Congress will
override Ford's veto of a bill
extending oil price controls andj
take the initiative in drawingI
up a national energy policy.
D E M O C R A T I C Leader
Thomas "Tip" O'Neill, of Mas-
sachusetts said the President
wants no compromise on oil
price controls.
"If the Senate votes to over-
ride, there is
my mind that
will override,"
no question in
we, the House,
O'Neill said. "I
Butz halts USSR grain deals
until shipping boycott ends
WASHINGTON (,P) - Agri-
culture Secretary Earl Butz
said yesterday there will be no
further grain deals with the So-l
viet Union until the end of a
union boycott of shipments of
grain already purchased.
Butz said he would not dis-
pute statements that AFL-CIO
President George Meany and
maritime unions have assumed
virtual control over whether any
additional grain sales will be
made to the Russians.
Butz testified about a 9.8
million metric ton grain deal
with the Russians before the
Senate Agriculture' Committee,
whose members are concerned
about the impact of the sales
on American food prices.
SEN. HENRY BELLMON,
(D-Okla.), was critical when
Butz disclosed that any future
Soviet grain sales would await
negotiations with Meany on the
boycott.
"I don't like to use bad lan-
guage," Beilmon said . "But
that seems to me like the most
gutless policy."
"Are you saying it's up to
the labor unions whether or not
we sell them grain?" Bellmon
asked Butz.
BUTZ replied: "That's what
you said, I won't argue with
it."
Bellmon said, "It seems to
me we're allowing Meany to
set our foreign policy."
Another committee member,
Sen. George McGovern, (D-S.
D.), said Meany is "exercising
a blackmail role over wheat ex-
ports. He is taking on the char-
acteristics of a dictator."
THE AFL-CIO had no im-
mediate comment.
The boycott of grain ship-
ments was called June 30, but
court order in Texas and Lou-
isiana have allowed loading to
continue while legal issues sur-
rounding the union action are
decided.
While acknowledging a goal4
of the boycott is to increase
employment for \American sea-
men on grain-carrying ships,
Meany said its primary purpose
is to forestall another dramatic
increase in American food
prices.
THOMAS GLEASON, presi-
dent of the International Long-
shoremen's Association, said
yesterday that union attorneys
were actively seeking ways to
reverse the temporary injunc-
tion. Failing that, he declared,
"an epidemic can break out on
the docks very easily. My
guys can get sick as hell."
Butz repeated his own esti-
mate Thursday that prices are
likely to rise late in 1975 and
early next year by only about
1.5 per cent.
Butz said despite the prelim-
inary injunctions currently al-
lowing longshoremen to continue
loading grain from docks along
the Gulf Coast, he expects
more problems soon.
"THE REAL test will be
when we try to load Soviet or
American flag bottoms," Butz
said.
So far, only third-country ves-
sels have appeared for loading
early deliveries of the grain
Becarefulwithfire:
There are babes
inthe woods.
harvest, which is just coming
to U. S. ports in large amounts.
Butz said that only the union
boycott is preventing a new
deal with the Russians.
"I THINK it would be dis-
advantageous on our part and
on the part of the Russians to
go ahead until this labor situa-
tion is settled," Butz said.
"It's too emotional."
The committee also heard
from Chairman Arthur Burns
of the Federal Reserve Board
who predicted a 2.5 per cent
increase in American food pric-
es as a result of the grain deal.
Asked to account for the dif-
ference with his own prediction,
Butz told reporters after the
hearing, "If Mr. Burns will
stick to monetary policy, I'll
stick to agriculture."
believe Congress is going to
override the President's veto."
The National Congress of Pe-
troleum Retailers, which rep-
resents 70,000 of the nation's
196,000 service stations, told
a Senate hearing that elimina-
tion of price controls could re-
sult in an increase of up to 17
cents in the price of a gallon of
gasoline.
CHARLES BINSTED, execu-
tive director of the organiza-
tion, said the estimate was bas-
ed on the possibility that the
bulk of price increases would
be dumped onto gasoline, rath-
er than spread evenly among.
all petroleum products.
Binsted said the estimate -
which compares with the three-
cents-a-gallon figure offered by
the Ford administration - also
included the likelihood that the
major oil companies would in-
crease costs to dealers.
THE MICHIGAN DAILY
Friday, September 5, 1975
Volume LXXXV, No. 1
is edited and managed by students
at the University of Michigan. News
phone 764-0562. Second class postage
paid at Ann Arbor, Michigan 48106.
Published d a i y Tuesday through
Sunday morning during the Univer-
sity year at 420 Maynard Street, Ann
Arbor, Michigan 48104. Subscription
rates: $10 by carrier (campus area);
$11 nocal mall (Michigan and Ohio):
$12 non-local mail (other states and
foreign).
Summer session published Tues-
day through Saturday morning.
Subscriptionrates: $5.50 by carrier
(campus area); $6.50 local mall
(Michigan and Ohio); $6.50 non-
local mail (other states and foreign).
(
4
L- -
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IN
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PUNCH LUNES AND
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A MUSICAL SPOOF FOR
MYSTERY LOVERS d
November 7,8, 9
September 19, 20, 21 All Evenings: 8pm,
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cP ofes siona I
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PRESENTS
POWER CENTER
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