PLEASANT
82nd Year, No. 54
The University of Kansas—Lawrence Kansas
Towing Policy Discussed
Friday, November 12. 1971
See Page 3
Phase 2 Rules Explained
Commission Will Require Reasons for Price Hikes
WASHINGTON (AP)—The President's Price Commission adopted complex guidelines Thursday requiring post-freeze price increases to be justified by business costs and aimed at holding the national inflation rate to 0.25 per cent a year.
"This means that some prices will go down," said Price Commission Chairman C. Jackson Grayson. "Some will not in all, some will go up more than 2.5 percent."
The new guidelines will be effective for the Phase 2 economic period that begins at 12:01 a.m. sunday, but an immediate upsage of retail prices next week may be effectively blocked by a commission rule requiring posted price lists.
The commission shied away from adopting a general price standard applying to the nation's businesses, but instead laid down general rules covering manufacturers, retailers, wholesalers, service industries and professionals.
THE BASIC GUIDELINE is this: Only
price increases that can be justified on the basis of cost increases, minus any amount of worker productivity gains, will be allowed. If the price is more than 2.5 per cent and can be justified by this formula, it will be allowed by the commission.
But the price boost may be so great as to cause an increase in a company's pre-tax profit rates, measured as a percentage of sales. In other words, profits can increase only through a rise in sales volume if a price increase is involved.
The commission's guidelines, announced at a news conference after days of press interviews by the seven member panel, raised concerns that will be answered only when final reports are published. The commission said that may be published by the end of the week.
But Grayson conceded that consumers may have a difficult time knowing when a price has been boosted legally in line with the commission's guidelines.
COMPANIES WILL be encouraged, but not required, to show customer's cost
The commission provision that may prevent a quick upswing in retail prices immediately after the freeze ends requires that all retail prices will remain frozen until stores post prominently lists of prices that were in effect during the freeze.
information that would justify price increases in their stores, he said.
The price list must be posted for all food items. For other retail stores, a list of selected items—such as a product that does high volume of business—must be posted.
Grayson said the detailed regulations on posting will be announced soon. The price lists must be posted no later than Jan. 1, 1972, he said.
The price guidelines cover only the period that begins Sunday, Nov. 14. Prices are based on the prices those increased costs incurred after Nov. 12; Sunday. Firms will not be allowed to increase prices to get relief, retroactively, because they have gone up during or before the freeze.
Senate Approves Revival Of Foreign Aid Program
WASHINGTON (AP)—The Senate completed its two-step revival of the foreign aid program Thursday by passing a $1.5 billion military aid measure.
Before voting 65 to 24 to approve the bill, the Senate restored $318 million to it in response to a warning that reductions in defense U.S. withdrawal from Vietnam.
Together with the $1.1 billion economic aid bill passed Wednesday night, the miracle bill provides a $2.6 billion measure for the next billion measure rejected just 13 days ago.
The bill now goes to the House which earlier this year voted $3.4 billion for the aid program, just $100 million below the Nixon administration's request.
The immediate parliamentary path for the aid program still appears clouded—and funds may run out temporarily next Monday. But the Senate action appears to assure the program will continue for now, though at a reduced level.
THE ADMINISTRATION won a major victory when the Senate voted 46 to 42 for an amendment by Sen. John C. Sternis, DZ-Miss., chairman of the Armed Services Committee, to restore $318 million cut by the Foreign Relations Committee.
It rejected 46 to 43 a move to lower the base salary of $41 million spending ceiling on U.S. airlines.
But the bill, as passed, contains Democratic Leader Mike Mansfield's amendment calling for total U.S. withdrawal from Indochina within six months as well as a series of restrictions on the aid program opposed by the administration.
Mansfield charged that, by approving $400 million more for arms aid than economic assistance the Senate had put the emphasis of the aid program on "the weapons of destruction, on military might."
Before adopting the Stennis amendment, the Senate rejected 64 to 24 a move by Fulbright to cut an extra $185 million from the military aid part of the bill.
If the Senate doesn't act now, it will have to consider a third time and come back later.
"I believe that modest increases are required even for those programs to be phased down in a reasonable manner," she said, adding that by voting for the reduced levels "we essentially vote to kill military assistance immediately."
The Senate, meanwhile, appeared to be standing firm against early action on an amendment to the budget.
APPEALING FOR the bill, Republican Leader Hugh Scott said "I urge all senators to give the benefit of the doubt to this program.
A telephone call from Secretary of State William P. Rogers to Scott, promising that the administration would promptly spend $85 million in supporting assistance for Israel, appeared to have helped carry the Stennis amendment.
ARGUNG FOR his amendment, Stennis said the Foreign Relations Committee's cut of $358 million from the original bill and $798 million from the administration request "jeopardize the success of our withdrawal from South Vietnam."
House Wednesday night to provide money after Nov. 15 for the Pentagon, Agency for International Development, Office of Economic Opportunity, District of Chicago, which have yet to receive their regular appropriations for the year that started last January i
Chairman J. W. Fulbright, D-Ak., of the Foreign Relations Committee, who failed in a move to cut the arms aid program earlier Thursday, said "I had hoped we would take a different approach and give emphasis to another place."
SEN. ALLEN ELLELENDER, D-La, chairman of the Senate Appropriations Committee, told the Senate he had conferred with other members of the panel and that "No thought is being given to passing a contusing resolution."
Although the State Department said Wednesday the aid agency would have to close down unless it gets renewed funding authority by Monday, it appears now that any crisis would be delayed at least two weeks.
The reason: the first payroll for any of the affected agencies covering work after Nov. 15 won't come until a Pentagon payroll is due on Nov. 30.
SOME PRICES could go up immediately Sunday, Grayson said, because a business could claim that it began incurring new costs on that date.
As for AID, congressional sources said the agency can pay a Nov. 23 payroll without new authority since it would cover the $46 millionensis wrists would only come on the Dec. 7 payroll.
The price guidelines will be policed under a complicated three tier economic strategy.
Price boosts that must be announced by the nation's largest companies will be driven by a tightening of regulations.
It is these companies—those with annual sales of more than $100 million—that must notify the government of all planned price increases in advance.
The commission's guidelines say the large companies will be able to put price increases into effect if the commission has not ruled to the contrary within 30 days.
Day 5:
About 45 per cent of all sales will be in this category, the government says.
Another 5 per cent of sales will be a second group, companies which put price increases into effect after merely reporting to the government.
OTHER PRICES, those of a corner grocery store or a local drug store, will be merely to spot checks by the Internal Revenue Service to determine if there are violations.
Grayson said consumers can complain to their local IRS offices if they feel a burden.
The Cost of Living Council has already exempted nearly one-fifth of the goods and services that make up the average cost of living, including prices of used car homes, custom-made goods, raw agricultural products, dues, taxes and interest rates.
Kansas Staff Photo by GREG SORBEN
Red Chinese Arrive, State Peaceful Aim
The first contingent included the top ten in the delegation. As they debarked at them, the guards against them sang, chanted and raised banners—but out of sight and sound of the crowd.
The historic linkup between Red China and the international organization was a two-stage affair. The 44-member delegation split into two groups and traveled in separate planes. They had spent the night in Paris.
Chalmers Illustrates Talk with Charts Explains budget to SLA forum
The Chinese delegation was voted into the United Nations Oct. 25, replacing Mr. Guang Qiang, the Foreign Minister Chao Kuanha, and his chief deputy, Huang Hua, Security Council representative, head of the preamant Chinese embassador to Canada.
There was far less fanfare as the second group of 22 Chinese left their transatlantic jettliner, many of them wearing Mao caps and carrying trolleys. Among them were a number of women.
NEW YORK (AP)—Communist China's chief delegates to the United Nations flew into New York on Thursday, announcing that their aim was "safeguarding the international peace and promoting human progress."
Also on hand was a six-man-Communist Chinese team which arrived Monday as an and made arrangements for the next China delegation to take over the entire 14th floor of the Roosevelt Hotel in midtown Manhattan, where it would be about $2,300 a day. The floor has 72 rooms.
Waiting for the Chinese on the brisk autumn day were official greeters from the United Nations and the City of New York, and Albanian, Pakistani and Zambian representatives from the United Nations.
How far away from the Roosevelt the Red Chinese will be able to venture remained under consideration by administration policy makers in Washington.
Soviet envoys at the United Nations must give at least 48 hours notice before traveling beyond a 25-mile radius of the organizations headquarters.
Chalmers Claims Budget Not Fat
By SALLY CARLSON,
JOYCE DUNBAR
and
HALEDWARDS
Kansas Staff Writers
Cancellor E. Laurence Chaimers Jr.
elected a legislative charge that there was
Shultz Welcomes Back 'Old' KU
By NANCY JONES Kansan Staff Writer
Reynolds Shultz made a lasting impression on the Kansas public in the fall of 1969 when he forced William Balfour, dean of student affairs at the University of Kansas, to turn in the names of 21 University students who were privately disciplined for the disruption of the chancellor's ROTC review in May 1969
Sultz, then a Republican senator from Lawrence and chairman of the Senate Federal and State Affairs Committee, said that he believed that the people of the state would know the names of the students who were disrupting a state supported institution.
Newspaper editors and citizens across the state highly criticized him, saying that he had no right to interfere in the internal affairs of the University.
Later the Senate Federal and State Affairs Committee voted 3 to 2 to withhold
Reynolds Shultz
the names
When the lieutenant governor was asked Thursday whether he still believed that he was right by demanding that the names be released, he said that his argument at the hearing is still and that all the hearings should not been public or private, not both ways.
He went on to say that he had heard that some of the University's faculty thought the administration was not appealing hard enough to promote pay raises and other benefits.
When Shultz was asked to comment on the internal affairs of the university today, Shultz replied that he was beginning to hear "rumbblings" that the faculty thought administration was not doing all it possibly could to promote the faculty image.
In Shultz's opinion, one of the biggest improvements at the University was the addition of John Conard as director of the Center for Computing. So far Shultz, has a good relationship with people. He is highly respected, as he was when he was Speaker of the House in the Kansas Legislature, and has been and will remain the best help smooth out problems, Shultz said.
Shultz said he really had not been in close enough contact with the University to verify these "rumblings," but he said that some of them could possibly be true, and that probably there was also some exaggeration.
Shultz said that he saw a difference in the university today as compared to how he saw it in 1969 and 1970, and that the attitude on the campus had really improved. "It's back like the school we used to know KU as," Shultz said.
Now that this attitude has changed Schulz said the legislation will look more like a bill.
He said that when the university's image was bad it was not good for the university or for Lawrence, and that it left a bad impression throughout the state and the nation.
Most people realize that things at the University have "cooled off," and the end result will be that the alumni and the students are going to visit with their legislators and encourage them to support the University, Shaltz said.
According to Shultz, the majority of people will expect the 1972 legislative session to be more strict on their money appropriations. In other words, the voters would want the money they will spend rather than to give the various state institutions a blank check.
Smutz also said that there has been some talk about the establishment of guidelines for state welfare, and he speculated that it could also be used in other state agencies.
Commenting on the somewhat vague possibility of a nuclear waste depository in Kansas, he said that he could not see any benefits to the economy as a result of the proposed site, and that the Atomic Energy Commission had unanswered question. He believed that Kansas should do everything they could to keep the denository out of the state.
He also said that a majority of Kansans "opposed the AEC making their dump here. The site wouldn't boost the economy enough to take the risks involved, he said."
Shultz said that the proposed space shuttle would be a good, clean industry that could boost the state's economy. It is also one of the major industries related to the space shuttle.
The only pollution would be noise, and the greatest noise, he said, would be near the building.
According to Shultz, Kansas could have a good chance of getting the industry if a reusable type launch is used, but if a disposable launch is used it would be more feasible to have the industry at Cape Kennedy.
When asked if the lieutenant governor had started any recent campaigning, he grinned and said that he had never stopped.
a "great deal of fat in the University's budget" that needed trimming. He explained the University budget to students at an SUA forum Thursday night.
But be demonstrated faults in those reasons with charts and graphs illustrating that there was a higher student-teacher ratio this year than in previous years. The salary did not increase as did salaries at universities in bordering states.
The formulated budget, a revolution in the budgeting process in Kansas, had been agreed upon Wednesday by the Kansas state legislature. The six state institutions of higher learning.
Chalmers said the recently approved formulated budget would show that there was no "fat." He said he could see only two reasons why the legislature might charge people on the payroll there were too many people on the payroll and they would show on the payroll were being paid too well.
They have agreed to proceed as rapidly as possible to convert to this formulated approach to budgeting, but they must first have the governor and the legislature of this idea. Presentation of budget requests for fiscal year 1974 in this format is a target for higher education. Max Bickford, the secretary of the requests, said Wednesday.
Formulated budgeting recognizes that different services cost different amounts of money. These services would be subject to the same law, and therefore variance would depend on legislative approval.
The decision by the regents and officials of the state institutions represents a victory for Chancellor E. Laurence Chalmers Jr., who had been promoting the formulated budgeting process since he came to KU.
A graduate program in physics, for example, costs more per student than teaching of freshman English. The formulated approach would recognize this difference; it would also account for differences in the cost of graduate programs from one campus to another.
Data gathering would be required at each of the state institutions to develop common formulate for budgeting, such as the number of square feet of classroom
space per student and the number of faculty members that one secretary will serve. Chalmers们说 several of the teachers say they are the groundwork for the new procedure.
Chalmers has expressed the need for a more accountable, equitable way of teaching science and to provide higher education. He has discussed formulated budgeting with his colleagues, and in private sessions with the Regents, and in committee rooms and fraternity houses.
The main feature of the formulated budget process is a movement away from the tendency to examine only the increments the regents requested from the teachers each year, while the budget bases for the different schools remained unquestioned.
While the bases have grown at differing rates over the years at the schools, disparate increments have gone to the six state institutions. As a result, some schools may be able to fund instructional and service in occupations such as teaching in other schools with comparable resources.
"An effort to apply for accountability, in terms of what dollars are intended for, is useful."
Chalmers said there had been little or no effort to analyze the budget bases. this year, for example, "we simply have last year's lump sum base." Chalmers said that sensitive formulae exist at other out-of-state institutions.
Keith Nitcher, vice chancellor for business affairs, said that the University was ready to launch a new program. Chalmers said in previous years the student-teacher ratio had been 14:5:1 but that it was currently 16:8:1. Although class numbers increased, teachers salaryes had not increased
In per capita support to higher public services nationally from the top quarter to the bottom.
"If each citizen would add $3 or $4 to higher education, we could recover the money."
Miller Attacks Report on Fees
Student Body President David Miller Thursday called the report of the Senate Finance and Auditing Committee a responsible defiance of the student interest.
The committee's report on Wednesday called for a six-dollar increase in the student activity fee. Miller accused the committee of reneging on its responsibility to determine funding priorities and said students shouldn't have to pay a 25 percent increase in the fee during the time of a national economic freeze.