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August 14, 1973 - Image 3

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Publication:
Michigan Daily, 1973-08-14

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Tuesday, August 14, 1973

THE SUMMER DAILY

Pacje Three

Freeze lifted as Phase IV
opens, price hikes predicted

Nixon signs highway bill
President Nixon turns to his audience after signing a compromise $22.9 billion highway bill to help cities with mas
problems yesterday in his White House office. From left: Sen. Howard Baker (R-Tenn.), Rep. Robert Hanrahan (R-Ill.
tary of Transportation Claude Brinegar, Norbert Tiemann, federal highway administrator, and Dr. James Gregory,
highway transportation safety administrator.

WASIlINGTON 'ti-As Phase IV began
yesterday several steel makers and auto
manufacturers announced intention to seek
increased prices, indicating that the new
anti-inflation program means a new price
spiral for the Americam consumer.
Administration officias already have ex-
pressed alarm over a continuing big jump
in food prices, which were released early
from the price freeze.
ARMCO STEEL .CORP. of Middletown,
Ohio, and Chrvsler Corp. were among the
first of the big nonfood companies to give
official notice that they are seeking price
hikes under Phase IV, which began yes-
terday, ending the 60-day price freeze.
The freeze, originally imposed on June
C', was ended yesterdyo for all sectors
of the economy except or beef and petro-
leum products. It will end on petroleum
on Ang 19 and ii beef on Sept. 12.
Araaco informed Phase IV administra-
tors it wants to increase prices on sheet
steel for autos and appliances by five per
cent.
CHRYSLER CORP. proposed an aver-
age increase of $71 on 1974 model autos
and trucks.
AtAmerican Motors earlier had announced
it would seek a $55 price hike and Ford
Motors said it would make formal notifi-
cation to the government of proposed price
increases today.
Small and medium sized companies
AP Photo were able to raise their prices immediate-
ly yesterday as long as the increases were
justified by higher costs.
stransit MREANWHILE, meat packers received
), Secre- another setback yesterday in their cam-
national paign for an end to beef ceilings before
the scheduled Sept. 12 deadline. In a rul-
ing that came as the Phase IV economic
program went into effect, a judge in
Seattle, Wash., refused a request for an
injunction to lift the freeze.
Prices of other foods-particularly eggs,
dairy products and pork - continued to
climb and consumers faced higher bills
for a wide variety of additional items be-
ing freed from controls by Phase IV.
But the country's 1,700 largest firms,
The United including ni a n y steelmakers and m o s5
hready to aiuto manufacturers, with over $100 mil-
el for fore- lion in annual sales and revenues, have
an unsuc- to provide 30 days advance notice of their
i er r illI a intent to raise prices.
UNDER PHASE IV, prices can be in-
n Scali in- creased to cover higher costs on a dollar
urity Coun- for dollar basis, but may not be increased
sure would for a profit.
The Nixon administration has predicted
U.S. vetoes substantial price increases at the start of
sp u r r e d Phase IV because companies which were
called on not allowed to raise prices during the
freeze will seek to recover their costs in
ael "is not Phase IV.
e balance" The Cost of Living Council and the In-
mbassador ternal Revenue Service will have 30 days
to decide whether to stop or postpone pro-
cil meeting posed price increases by the biggest firms.
non, which A NUMBER of companies are exempt
tan Friday from Phase IV, including firms employ-
piracy ing less than 60 persons, the lumber in-
e "Zionists dustry and public utilities, including firms
port" from providing rail, air and bus transportation
services.

r 1
sis res c si'
3CUsee NEWSHAPPEM CALWAL
Regal snub
DETROIT - Claiming tlat he needed
extra rest, the Guru Maharaj Ji can-
celled his scheduled appearance over the
weekend at Detroit's Cob Hall. Spokes-
persons for the guru denied reports that
the Motor City was skipped as a result
of the rude treatment accorded "The Per-
feet Master" at a meeting of the city's
Common Council last week.
Incognito cop
EAST LANSING - The Michigan News
Broadcasters Association said yesterday
it has asked the City Council here to take
steps to prevent police from posing as
newsmen at demonstrations. The request
was made in response to a recent incident
in which a policeman admitted posing
as a Free Press photographer to take
surveillance pictures during a demonstra-
tion.
Watergate wait
WASHINGTON - The White House yes-
terday indicated that the country will have
to wait a little bit longer for President
Nixon's long-awaited speech on Watergate.
Deputy Press Secretary Gerald Warren
said that although the exact time had not
as yet been decided, the address would
probably come late this week. He had ear-
lier predictedl a speech by the middle of
the week.
Happenings .
. . . today are topped by the AAU Na-
tional Junior Olympics. Events in judo,
gymnastics and swimming will be taking
place at Chrisler Arena, Ferry Field and
Fuller Pool all day long . . . Antonioni's
"Blow-Up" will be shown at Aud. A, An-
gell Hall at 7:30, 9:30 p.m . . . Truuke
Ameigh will perform on the organ at 8:00
p.m. in Hill Auditorium.
A2's weather
Today should be cloudy with a chance of
some afternoon showers. Highs will. be
near RO._

US. ready to
censure Israe4
x ,,. {, rtiStUNITRD NATIONS (A')t -
'{}h r" ter.SItts was reported yesterday
join in the U.N. censure of Isra
tng down an Arab airliner in
esoful hunt for Palestinian g u
leaders.
Ambassador to the U. N. Job
dicated, however, that any Sect
cil resolution going beyond cent
face American opposition.
CHARGING THAT previous I
of anti-Israel resolutions hads
"aggression by Israel," Egypt
the council to impose sanctions.
A mere condemnation of Isr
an effective way to restore th
in the Middle East, Egyptian A
Ahmed Abdel Meguid declared.
Yesterday's emergency count
was held at the request of Leba
called the interception of the p
night over Lebanon an act of1
IRAQ CONTENDED that the
were encouraged by endless sup
John Scali the United States.

NAMED CO-CONSPIRATOR
Dean linked to Vesco case

NEW YORK (AP) - John Dean, former
White House counsel, was named a co-con-
spirator yesterday in the Vesco influence-
peddling case involving a secret $200,000
cash contribution to President Nixon's re-
election campaign.
Former Atty. Gen. John Mitchell, for-
mer Commerce Secretary Maurice Stans
and two other men were indicted in the
case May 10.
DEAN WAS NOT made a defendant in
a bill of particulars filed in U.S. District
Court here.
.Co-defendants with Mitchell and Stans
are Robert Vesco, then board chairman of
tho Tto~tinna- Antrne Vnr.n (rc'

and former New Jersey Republican leader
Harry Sears.
THE RELEASE of the names of the
alleged co-conspirators unnamed in the.
original indictment came in response to
defense motions prior to the opening of
the trial, which is scheduled for Sept. 11.
A co-conspirator is a person alleged to
have joined in a conspiracy, but who is
not named as a defendant.
The names are often used by defense
attorneys seeking' clues to the prosecution
case. Co-conspirators are alsoQ often called
to testify, though officials would not say
whether or not Dean was expected to take

THE MAY 10 indictment said Vesco had
offered $500,000 to derail or delay an in-
vestigation of his company by the Securi-
ties and Exchange Commission (SEC),. but
that Stans took $200,000 because he could
get it quicker. The money was later re-
turned.
Dean was named as a co-conspirator in
the main conspiracy count of the original
indictment. That count alleges a scheme
to thwart probes by the SEC and the
General Accounting Office of the secret
payment, and also of a total of $250,000
Vesco allegedly earmarked for the cant-

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