NATION/WORLD
Wednesday, May 1, 1996
UNIVERSITY DAILY KANSAN
7A
Investigation opened in gas-price rise
The Associated Press
WASHINGTON — The Justice Department opened an investigation yesterday into the causes of the recent surge in gasoline prices at the pump.
Assistant Attorney General Anne K. Bingaman, head of the department's antitrust division, named a five-person task force of lawyers and economists to conduct the investigation, department spokesman Carl Stern said.
She acted at the request of Associate Attorney General John Schmidt and in response to inquiries by three members of Congress, Stern said.
Two Senate Democrats from Connecticut, Christopher Dodd and Joseph Lieberman, and Rep. Charles Schumer, D-N.Y., requested an investigation.
The task force first will study whether market forces account for the increase in prices. Stern said.
"If not, then they will determine whether there is evidence of collusion, which is illegal under antitrust laws," he said.
Republicans have used the price rise to propose repeal of the 4.3-cent-per-gallon gasoline tax increase that Clinton won in 1993 as part of a deficit-reduction package.
On Monday, Clinton authorized the sale of about 12 million barrels of oil from the nation's strategic petroleum reserves. He also asked Energy Secretary Hazel O'Leary to report within 45 days on possible reasons for the increase in prices.
Gasoline prices are at their highest level since the Persian Gulf War. They have jumped five cents in the past two weeks and 14 cents in the past year. The average price nationwide, including all grades and taxes, was $1.36 a gallon as of Friday, according to the Lundberg Survey of 10,000 gasoline stations.
But in California, a crucial swing state in the presidential race, regular unleaded gasoline averaged $1.55 a gallon, and in some areas, full-service premium exceeded $2 a gallon.
Senate Majority Leader Bob Dole, Clinton's GOP presidential rival, and House Speaker Newt Gingrich, RGa., said Congress would vote by Memorial Day to roll back the gas
tax through the end of the year. The White House says it's willing to discuss repeal.
Democratic lawmakers suggested that oil-company profiteering had
more to do with motorists' pain at the pump than the 4.3-cent-per-gallon surcharge.
"Just before the tourist season begins, it's interesting that these prices would go as high as they are," said Senate Minority Leader Tom Dashle, D-S.D. "I have a feeling it has a lot more to do with profits than it does with taxes."
Rep. Edward Markey, D-Mass., called on O'Leary to investigate whether price increases were the result of collusion, price-fixing or deliberate efforts to limit supply by the oil industry.
Sen. Phil Gramm, R-Texas, cited the depleted oil stockpiles because of the unusually cold winter and the new requirement in California for using emissions-reducing reformulated gasoline as reasons for the price increase.
But Markey said that oil companies — whose profits have increased strongly — have curtailed refining rather than increasing it after the severe winter.
Storms, flooding claim six victims in Midwest
The Associated Press
Torrential rains eased and the cleanup began yesterday in the Midwest, where hundreds of people were forced out of their homes by weekend storms that killed six people, including two children.
The storm system, which had dropped up to nine inches of rain on Illinois, Ohio, Indiana and Missouri since Sunday, broke up and moved on, leaving behind swamped homes,
power outages and plenty of damage.
Donald Beachler watched as workers fixed the battered roof of his fireworks company outside Dayton, Ohio, which was raked by winds up to 120 mph. Shingles and other debris were scattered around his Imperial Enterprises Inc.
"You've got to go on with life," Beachler said. He estimated the damage at $100,000.
towering Siberian elms toppled onto the streets. Cleanup crews used chain saws and chippers to clear them away.
In Dayton's Deeds Park, a stand of
"These trees are top-heavy." Charles Barlow said as he helped clean up. "When a storm gets a hold of them, it blows them over."
Two deaths in Ohio were blamed on the weather: a 6-year-old boy who grabbed a live electrical wire in his flooded back yard, and a 15 month old who wandered into a
creek. In Missouri, three people died in weather-related traffic accidents, and a fisherman was killed when his boat capsized.
The storm caused widespread flash flooding in the St. Louis area, where about 500 homes were damaged. Most of that water had receded by Monday. State damage-assessment teams will figure the cost of the storm.
The Mississippi and Missouri rivers were expected to crest in the
next couple of days, but only at or slightly above flood stage.
In Illinois, Gov. Jim Edgar declared three counties disaster areas, making them eligible for state aid.
Red Lyon Tavern 944 Mass. 832-8228
Some 3,800 Madison County residents still didn't have electricity yesterday and could be without service until today. And in Ohio, about 2,500 customers were still without power.
Around East St. Louis, Ill., about 400 homes and 163 nursing home residents were evacuated.
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Jo Hardesty, Director
148 Burge • 864-5665
STUDENT
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Tuesday, April 30 Wednesday, May 1 10 a.m.-4 p.m.
East of the Kansas Union on the Plaza
Get the lowest prices of the year at our annual sidewalk sale.
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Cash, Checks, MasterCard, Visa. American Express and Discover Accepted. Sidewalk sale merchandise is non-returnable.
KU Bookstores
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864-4640
864-4640
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The Sunflower Bike Shop is proud to announce our addition of Waterford bikes for 1996. Come in and see what a difference hand crafting makes!
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The 1996 Jayhawker yearbooks are here!
Wescoe Beach:
April 22 - May 6
9 a.m.- 4:30 p.m.
If pre-ordered, present KUID To purchase, bring cash/check for $30 made payable to: Jayhawker yearbook
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1994 and 1995 yearbooks also available
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428 Kansas Union
864-3728