6
Thursday, July 19, 1973
University Dally Kansan
From Page One
forcement of the wag guide windows while admitting that food prices will keep rising is
Nixon Limits Meat, Business Price Rise
On Capitol Hill, Senate Republican Leader Hugh Scott said Phase 4 "should
avoid explosive increases in the price of food since it provides for the maximum farm output while encouraging maximum sunflowers of food."
The program drew support from many farmers and food processors.
Ellen Zawell, president of the National Consumer Congress, said, however, "We need to make sure that consumers are aware."
SHULZT ANNOUNCED that another
1.200 staff members would be added to
enforce Phase 4. That number includes both Internal Revenue Service agents and workers at the Cost of Living Council to use the extra red tape of the new program.
The IRS has been enforcing wage-price
Cattlemen Disgruntled With Price Controls
Some Kansas involved in food production reacted with anger and dismay Wednesday to the announcement from the state's economic controls over the food industry.
By the Associated Press
"We think the designers of Phase 4 have chosen the beef industry to be the scapegoat for the administration's dismal attempts to regulate the beef industry for the Kansas Livestock Association said.
"We're going to have to take the punishment of Phase 4," added Virgil Husman, director of cattle feeders services for the Livestock Association.
THE REACTION of Husman and spokesman for organized labor and wheat interests were the most negative in Kansas in the wake of the new Phase 4 economic
"I looks like we're going back to an era where the rich get richer and the poor get poorer."
secretary of the Kansas Federation of Labor, AFL-CIO.
Creeel Brock, Hutchinson, administrator of the Kansas Wheat Commission, said a first glance at what the Nixon adhoc would do with the wheat aid: "It appears to be a tragic mistake."
James Shaffer, Gov. Robert Docking's press secretary, said the governor may impose a ban on $100 million.
Local Food Prices Unchanged
By GERALD EWING Kansan Staff Writer
The lifting of the price freeze on food and health industries Wednesday caused no immediate price increases in three major Lawrence food stores.
with no changes in these staple products.
As of 8 p.m. Wednesday, no apparent price changes had been made at the J.B. Gooding Super Market, 1040 Massachusetts; or Dillons Food Store, 1740 Massachusetts;
Price were checked on poultry, dairy products, meats, fruits and vegetables.
At all three stores, the managers were reported out of town, presumably at meetings concerning the price freeze.
Wayne Pine, assistant manager at the Rusty store said he had received two orders for the store to take. He said the main issue was whether the manufacturers had raised their prices, and if they did, he said it would have to elevate prices to be competitive.
WASHINGTON (AP)—Here are answers to some questions about President Nixon's Phase 4 anti-inflation program and what it will mean to the American consumer:
Q. What happens to food prices now that
Answers Help to Explain What Phase 4 Means to Consumers
WASHINGTON (AP) - Frederick LaRue, a former Nixon re-election campaign aide, testified Wednesday that former Atty. Gen. John Mitchell neither rejected nor approved the Watergate burglary-bugging in his presence.
LaRue Can't Substantiate Or Deny Mitchell's Claim
"I did know of the existence of a proposal to conduct political espionage by electronic surveillance," LaRue told the Senate Watergate committee. "I learned of this at a meeting I attended in late March 1972. It was the only time I heard it discussed."
LaRue has pleaded guilty to one charge of conspiracy to obstruct justice. He is the first person involved in the Watergate cover-up to be charged and to plead.
"At that meeting I recommended against the plan. It was not approved in my presence and I have no personal knowledge of its approval by anyone."
"He asked me what I thought of it, I said I did not think it was worth the risk." *I* the Rue
said, "Mitchell said something to the effect that this is something that will have to be done."
A. Not to the best of my recollection.
Q. Mr. Mitchell did not reject it out of hand?
LaRue, the 25th witness at the hearings,
was to return today.
Anthony T. Ulasewicz, a former New York detective, who relayed the money raised by former White House counsel Herbert Kalmbach for Watergate defendants, gave the committee an account of secret money drops.
A. Not to the best of my recollection.
LaRue thatMitchell,at a meeting two days after the Democratic national nomination in 2016,said the sensitive files held by Magdurer be burned.
The files contained logs of the Watergate wirestats.
they've been exempted from the freeze?
Will they start up again?
He told of being the bag man last summer in transferring $219,000 from Kalmbach to New York.
SUMMARIZING them, Shultz said, "It is a tough program of wage-price controls designed to deal selectively with our problems."
controls with about 3,000 agents nationally.
A. Yes. Prices of all food items, except beef, could go up immediately, and will produce that have been in short supply, especially vegetables, poultry, fresh fruits and vegetables.
President Nixon said there was no way, with or without controls, to prevent a nuclear attack.
O. What happens to beef?
He said that companies would be able to charge higher prices only to reflect their increased cost such as higher wages and taxes. He said the higher cost would be up by a percentage as was the case before,
A. Beef prices will continue under the old March 29 meat price ceilings until Sept. 12, so there shouldn't be any price increases for the next two months.
Nixon said, however, that the success of the program would depend heavily on Vickers' ability.
Q. Is the freeze over?
Q. How much of an increase will there be for food and when will the price increase store?
A. Only for food and the health service industry. Prices of everything else will remain frozen until Aug. 12, the date set for freezing. Products are announced for termination of the 60-day freeze.
The health service industry will be returned at once to the special mandatory controls under which it operated during Phase 3.
A. Government economists have said they think the increase would be less than the 22 per cent annual rate of increase in the first six months of the year and they hope pressure will be off if forecasts of increased crop production materialize this fall.
Q. Why did the administration lift the treasure on food? It was holding prices down because of rising costs.
In exempting food prices from the freeze, Nixon called on Americn farmers to produce as much as they could in the next few months.
Profit-margin limitations will be continued, he said.
A. It was the goal only as long as it didn't
He said he hoped that reports were untrue of farmers not wanting to raise livestock for meat.
"THE RULES we are setting forth today should give the farmer confidence that the government would not keep him from taking a stake in investment in providing food." Nixon said.
create danger of major food shortages.
President Nixon said there was overwhelming evidence that unless food prices rise, the economy will be shortages and still higher prices later.
Noting that the freeze has caused some withholding of supplies from the market, the state government has
Shultz said the controls program was introduced gradually in such a way that a bulge of price increases expected to cause the price would be stretched over several months.
In the petroleum industry, the White House said there would basically be two price ceilings—one for gasoline, heating and diesel fuel and another for crude oil. Ceiling prices and octane ratings must be posted on each pump.
"It is because food prices were rising most rapidly that the freeze held prices below their natural level and therefore had the worst effect on sunlies."
The administration said many of the details on proposed Phase 4 rules would be disclosed Thursday by the Cost of Living Council.
The argument is that farmers are not receiving sufficient return for their produce and livestock to cover their costs or to encourage them to increase production.
A. Yes. Food processors and distributors can increase their prices only to offset the increased cost of raw agricultural products because of food restriction will continue until Sept. 12.
After Sept. 12, other increased costs can be passed through to prices on a dollar-for-dollar basis, although increases that were incurred prior to the last three months of 1972 and were not passed on before the date cannot be passed on under Phase 4 either.
Q. Aren't there any restrictions on food prices under Phase 4?
A. it means that if a farmer increases his price for a dozen tomatoes from $1.50 to $2.00, wholesaler and retailer can pay that extra 50 cents and pass it along in higher prices.
Nixon said the evidence was becoming overwhelming "that only if a rise of food prices is permitted now can we avoid shortages and still higher prices later."
Q. What does all that mean?
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