Page Six THE MICHIGAN DAILY Tuesday, August 17, 1971 QUESTIONS AND ANSWERS Effect of price freeze recounted "I WASHINGTON (R') - How can a consumer know whether a storekeeper is cheating on President Nixon's price freeze? Because every one in the busi- ness of selling goods or services must "maintain for public in- spection a record of the highest prices or rents charged for such or similar commodities or serv- ices during the 30-day period ending Aug. 14, 1971." That requirement, unmention- ed until the text of Sunday's presidential order became pub- lic Monday, answered one of the thousands of questions pouring into Washington on the impact and operation of the 90-day freeze. Following are some of the most frequently asked questions, with answers provided by government officials: Q. What is covered by the freeze? A. Wages, salaries, prices and rents. Q. Not dividend payments or interest rates? A. Nixtn has asked the na- tion's bankers to hold the line on interest. Lacking authority to control dividends, he is asking corporations voluntarily not to raise their dividend payments. Q. What about profit margins? A. Not covered. The ban on price increases is expected to hold profits down. Q. What is the ceiling level? A. Until Nov. 12, no price or wage may exceed the level that prevailed in the month ended Aug. 14, 1971. A lower price may be charged, but not a higher. Q. Does this apply to state, lo- cal and federal governments as OPEN 12:45 1, 3, 5, 7 & 9 P. DIAL 662-6264 Corner of STATE & LIBERTY STS. 2nd BIG WEEK Tomorrow is Ladies Day-Ladies only 75c 1-6 P.M. Wed. Richar B- A CINEMA CENI kEN tt CNutCOFOR AAVISO'[dGP 4 well as private sellers and em- ployers? - A. It does. Even though some states - including Texas - have scheduled pay increases to take effect Sept. 1 for rank-and-file workers and even the governor, the presidential order calls for postponement of the increase un- til the freeze ends. Q. Can state universities raise tuitions to take effect in Septem- ber? Can state public utility commissions grant rate in- creases? A. In both cases. the rates can be raised, but the increases can- not take effect until expiration of the freeze. Q. What is the official expira- tion date? A. Nov. 12, 1971. Q. Can Nixon extend the freeze without new legislation? A. Yes, present law permits him to extend it to April 30, 1972. Q. Can importers add the new 10 per cent import tax which they now must pay to the cost of the imported goods, even though this means raising the price? A. Although Secretary of the Treasury John B. Connally indi- cated in his televised news con- ference Monday that the t0 per cent surcharge tax would have to be absorbed, a Treasury spokesman said officials now be- lieve that relief will have to be provided for some importers. A new Treasury ruling is expected shortly. Q. What about school teachers who have signed higher pay con- tracts that take effect with the opening of school in September? A. The official answer, at this moment, is that the pay increase must be postponed. But here again, a Treasury statement is reported to be in the works which may modify or clarify the ruling. Q. Can recently announced price increases on steel pro- ducts take effect on schedule? A. Those not yet in effect must be deferred until the freeze ends. Q. Suppose a company last year granted a wage increase ef- fective in two steps, with the It --Associated Press PRESIDENT NIXON addresses the nation Sunday night, an- nouncing drastic economic measures that include a 90-day freeze on all salaries, rents, and prices.. . Joseph E Lev ne presents a Mke Nichols Film stat g Jack Nicholson.-Canice Bergen "'Carnal Knowledge' is brilliant. 0 S least of a film!" - Judith Crist, N.Y. Magazine3 I Was sorry to see 'CARNAL KNOWLEDGE' end !" -Vincent Canby, N.Y. Time- "'CARNAL KNOWLEDGE' is one of the best movies ever!" , Mk -Liz Smith, Cosmopolitar Mike Nichols, Jack Nicholson, a Candice Bergen, Arthur Garfunkel, 9 Ann-Margret and Jules Feiffer Cari Knowledge DIAL 5-6290 Doors *Shows of Open at 1 :15, 3, 5, 12:45 7, 9 P.M. second step taking effect on Sept. 1, 1971? A. The pay boost must be post- poned. Q. What about a cost-of-living increase due workers in Septem- her because of rise in the con- sumer price index which already has taken place? A. This too must wait until Nov. 12. Q. Should wage negotiations now in progress be halted? A. No. The government would prefer that they be negotiated to a settlement to avoid the risk of shutdowns. But any pay increase which is agreed on should be made effective as of Nov. 12. Q. The President has asked that the 7 per cent excise tax on new cars be repealed by Con- gress. But he has just imposed a 10 per cent tax on all dutiable imports including foreign-made I U. ANNUAL SUMMER SALE- Offering REAL price reductions that will not be repeated in 1971-START- ' ING NOW Some of our lines " Jensen 0 Acoustic Research s Garrard * Kenwood ® KLH * DUAL A Scott 0 Sherwood t Sony Tel. 668-7942 Uribelievable Soerifices-Up to 40 % off Backed up by our Factory Authorized Service 121 W. WASH INGTON-Downtown-lblk. W. of Main cars. Does this mean that foreign cars would take a net 3 per cent tax increase? A. It does. But the repeal of the automobile excise tax must be approved by Congress; this may nut happen. Q. If it does happen, will the savings of around $200 per car be passed on to automobile buyers? A. Nixon says he will insist that the tax saving be passed on. This would mean a 10Uper cent drop in the price of U.S. cars, while prices on foreign-made cars would rise 3 per cent be- cause of the new import tax. Q. What about such imports as French cognac and Scotch whisky; will the importer have to absorb the 10 per cent sur- charge so that he can stay under his required ceiling? Is he caught in a squeeze? A. As of this moment he is in a squeeze. The anticipated Treas- ury ruling may ease his plight. Q. If a scheduled pay increase is deferred because of the freeze, can the workers get the increase retroactively when the freeze ends? A. There is no provision for retroactive payment. Read Dail Classifieds Brownies, anyone? I Love You, Alice B. Tlkas Peter Sellers auditorium a angell hall TONIGHT ONLY 7 & 9:30 p.m. ann arbor film cooperative VI 4 , td449 1214 S. University TWNBIL DIAL 668-6416 TWIN BILL! 0 Two Highly Acclaimed Films! TOMORROW IS LADIES DAY! Wednesdays 1-6 P.M. Ladies Pay Only 75c NOMINATED FOR 3 ACADEMY AWARDS THIS YEAR! FOR MY ATL E; with MELVYN DOUGLAS - GENE HACKMAN SHOWN TODAY AT 7:30 ONLY SHOWN WED. AT -1:15-4:25-7:30 ONLY - PLUS- "The0HESTmeican Film ofthe Year" -REX REED. chcago Tribune J-JOHN O'CONNOR Jr., ' -BERNARD DREW. NY. Daily News Syndicate ( Wall St. Journal Gannett News Seriace COLUMBIA PICTURES Presents a BBS Production JACK NICHOLSON Shown Today at 9 P.M. Only Shown Wed. at 2:45-5 :55 & 9:10 Only ~3~a ~ NETANdONLY ISN g{INT 1 -hEHEV1245 ROSEWOOD i