Columbia Missourian Newspaper 1976-02-04

              Gas decontrol faces final hurdle .,
WASHINGTON ( AP) Supporters of
lifting price controls from natural gas
had only one last hurdle left to dear
Tuesday in order to win a victory that
had been sought by the oil and gas in-dustry
for 20 years.
That hurdle was House passage of a
deregulation amendment, similar to
one already approved in the Senate and
favored by the White House.
Both sides on the issue give various
wrtimwfrs as to the cost of deregulation
to the average consumer, ranging from
average gas bills of about $ 250 a year by
I960 to a high of $ 331 a year. This would
be up from government, figures of$ 170 a
year in 1974.
The decontrol supporters won an
initial victory on a procedural
argument earlier in the day that
allowed their proposal to be offered as a
substitute to an emergency natural gas
bill. They won on a 230- 18- 4 vote.
Rep. Bob Krueger, a freshman
Democrat from Texas, won the floor
fight on behalf of his amendment after
failing to win consideration of the
proposal when emergency natural gas
legislation was considered in com-mittee
last year.
In allowing Krueger to offer bis
amendment, the House rejected the
promises of two longtime members,
Chairman Harley O. Staggers of the In-terstate
and Foreign Commerce Com-mittee
and Chairman John Dingle of
the energy and power subcommittee, to
bring a long- ter- m deregulation bill to
the floor within 60 days.
Earlier Tuesday, the Democratic
caucus had met to debate the Krueger
amendment and afterward Chairman
Phillip Burton said that if Krueger won
the vote on the procedural matter, he
also expected Krueger to win on the
substantive matter of the amendment.
He said that in order for the amend-ment
to be defeated it would need at
least two- thir- ds of the Democratic
majority voting against it and Burton
said it would be tough to obtain that
many votes.
The Republicans generally are
behind deregulation and the Krueger
amendment.
Krueger's amendment would permit
the lifting of price controls on new
natural gas from offshore wells over a
five- ye- ar period. It would lift all price
controls immediately on new natural
gas from onshore wells.
The debate during the day included
warnings that unless price controls are -
lifted the nation will continue to suffer : o
fuel shortages and claims in the j
Democratic caucus that the issue has
been engineered by Republicans to for-- '
ce a Democratic- controlle- d Congress to
pass decontrol. That would sub-- ,?--
stantially raise consumer prices and '--
" i
short- circu- it Democratic election ef-- q
forts. t
Insight
Wicked devil
upsets cart
of actuaries
Insurance firms
find rate setting
more difficult
By John A. Byrne
Mteaoarian badness writer
Quirks of fate, like the time a 1974 St.
Louis hailstorm cost State Farm
Mutual $ 3.6 million in automobile
claims, and a wicked devil called in-flation
have made the insurance ac-tuary
business little more accurate
than your run- of- the- m- ill weather
forecaster or fortune teller.
In the actuary prediction business,
officers of insurance firms compute
risk and decide what premiums their
customers should pay. Lately, their
predictions have been off.
That might be why several of the
nation's largest automobile insurance
firms are experiencing underwriting
deficits ( when more claims are paid out
than money received in premiums and
set aside in reserves).
That might also be why ap-proximately
100 of 432 licensed
automobile carriers in Missouri
including nearly all the leaders
raised their premiums last year.
Robert Maddox, supervisor of
automobile insurance at the Missouri
Department of Insurance, says more
rate Increases were filed in 1975 than
in any other of the 10 years be has been
on the job. insurance eompanifis. ape
required to file rate changes with his
office.
Most of the state's major insurance
underwriters have filed rate increases
during 1975 that average 4.6 per cent to
20 per cent, Maddox says. And further
increases for this year are likely.
State Farm, the nation's and state's
largest underwriter of automobile
insurance with 532,000 policies and a
premium value of $ 80.4 million in
Missouri alone, filed a 12.2 per cent
increase in September. It is now
reviewing its rates for another possible
increase.
The second largest writer of
automobile insurance in Missouri, with
300,000 policies, is MFA Mutual In-surance
Co. MFA filed for two rate
increases last year for 12 per cent in
January and 7.2 per cent in September.
Aetna Casualty and Surety Co.
jumped its rates for liability coverage
11.8 per cent in May and a whopping
44.2 per cent for physical damage
coverage in November. It is the seventh
largest underwriter of automobile
insurance in Missouri.
And the Automobile Club of Missouri- Int- er
Insurance Exchange, another
major carrier, filed a 7.68 per cent
jump in October 1974 and a 7.34 percent
increase in September. The firm hadn't
touched its rates since 1970, Maddox
says.
Industry spokesmen blame inflation.
A 1100 auto repair and maintenance
bill in ft87 jumped to $ 138.40 in 1973 and
$ 177.20 in 1975, an increase of 28 per
cent since 1973, according to the U. S.
Bureau of Labor Statistics.
The $ 100 medical care bill in 1967 rose
to $ 134.90 in 1973 and $ 169.80 in 1975, an
increase of 25.9 per cent in two years.
The $ 100 bill for a semi- priva- te
hospital room in 1967 cost $ 177.60 in 1973
and $ 239 last year, a 34.6 per cent jump
in two years.
These costs have outpaced the 20 per
( See UNDERWRITERS, Page 14)
68th Year - No. 112 Good Morning! ICs Wednesday, February 4 1976 2 Sections -- 30 Pages - 15 Cents
Pentagon budgets 6cut insurance9
N. Y. limes Service
WASHINGTON The Pentagon
budget request for 1977 has been
padded by 83 billion to protect against
expected congressional cuts, according
to a memorandum prepared in the
President's Office of Management and
Budget
The $ 3 billion figure, labelled " cut
insurance," was contained in the
budget office's own recommendation to
Ford to set a $ 110 billion military
spending limit.
The memorandum has been obtained
by the New York Times.
Spokesmen for the Pentagon and the
Office of Management and Budget
flatly denied any padding in the budget
request. Donald G. Ogilvie, head of the
national security division of the budget
office, said that he could not recall this
specific memorandum, but that no such
memorandum had been given to the
President.
" I have heard the concept of cut
insurance discussed in connection with
the defense budget, but there is no such
concept included in the President's
budget," he said.
President Ford is asking Congress for
$ 112.7 billion for the Pentagon in the
fiscal year beginning in October. He
decided on this amount after a long
struggle between his budget office and
the Pentagon, a struggle that included
his firing of Defense Secretary James
R. Schlesinger.
While the proposed Pentagon budget
is widely supported within the ad-ministration,
some administration
officials have expressed displeasure
about the President's decision to ask for
$ 2.7 billion more than recommended by
the Office of Management and
Budget To these few officials, the
Pentagon request is now actually
padded by a total of $ 5.7 billion.
Defense Department spokesman
William I. Greener Jr. said " Defense
Secretary Rumsfeld is perfectly
prepared to defend the budget in its
entirety."
Speaking for James T. Lynn,
Director of the Budget, Ogilvie said " I
can assure you that the President
reviewed each major defense program
at length and has recommended only
what he believes is needed far national
security."
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Photo finish
Charles Duren, left, and Dave Hood of Duren
Construction Co. Tuesday began a job of snow
shoveling on TenthStreet with a " push- off- " race.
They were cleaning up following Monday mor-ning's
snowstorm. ( Missourian photo by Lori
Borgman)
Letter short circuits
water and light board
By Jay Johnson and Jim Orso
Missourian staff writers
City Finance Director Mike Scanlan
had a difficult time Tuesday night.
It also wasn't an easy night for Jim
Beauchamp, author of a letter to the
Columbia Water & Light Advisory
Board which takes the city to task for
its utility planning.
Beauchamp, University director of
continuing education in engineering,
charged in his letter that the city was
trying to create a sense of urgency to in-fluence
the board's pace and direction
of decision making.
The board has been trying since Nov.
3 to give the City Council a recom-mendation
on whether the city should
increase its generating capacity or
become more dependent on outside
' sources for electricity.
For example, Beauchamp said,
Scanlan reportedly has said that the
city's present contract for purchased
power with Union Electric Co. expires
in June 1976. This, Beauchamp said, is
not the case since the contract expires
July 18, 1977.
Scanlan replied he had made no
statement to that effect at any time in
the news media but bad said that Union
Electric had asked the dty for the right
to renegotiate its present contract with
the city.
" I do not run the presses at the
Missourian or the Tribune," Scanlan
told Beauchamp when he asked why
this had not been clarified in the press.
Board member Dave Wollersheim,
though, said he was under the im-pression
that the contract expired in
June 1976.
Scanlan then said be was sorry if any
misunderstanding had occurred and
hoped he had cleared up the matter.
" This ( Beauchamp's letter)
definitely attacks our credibility," said
Holme Hickman, who was chosen board
chairman Tuesday.
The board also discussed the future
availibility of fuel oil needed to run the
combustion turbines that would be pur-chased
under the dty administration's
proposal.
The administration wants to install
( See COUNCIL, Page 14)
Cables, credit cards
taken in burglaries
Jimrale Rodgers won't be saying
" charge it" to local merchants for a
while.
Her purse, containing $ 200 to cash,
a driver's license and credit cards,
was reported stolen Monday- Mrs- .
Rodgers, 901 College Park Drive,
told police me purse wtahanfeom
KAMA Motor Club, 800 N. Provwan- ceRoa- d.
Other burglaries reported to the
CoSombia Police Department this,
weak include:
- V- erdle Wells, an employe of
Dalton Concrete Co., w .
Providence Road, reported Tuesday
the theft of a control unit, speaker,
microphone and cable, valued at
$ 157.15, from the Dalton Concrete
Co.
-- Martin S. Peine of 2913
Lawnridge Court reported Monday
the theft of lumper cables and a set
of tools and toolbox valued at $ 172
from bis car while it ws parked at
1111 N. Providence Road.
Edward Hays of Washington,
Ind., reported Sunday the theft of a
citizens' band radio valued at $ 240
from his vehicle parked at Holiday
Inn West, WM 1-- 70 Drive SW.
Rich candidates
might have edge
if funding ends
WASINGTON ( UPI) - Mulling over
a Supreme Court decision, federal elec-tion
referee Thomas Curtis said
Tuesday Congress will give an unfair
advantage to multimillionaires if it
fails to keep federal funds flowing to
those who seek the presidency.
But Curtis, chairman of the Federal
Election Commtsssion, said he sees no
need for a constitutional amendment to
re- establ- ish limitsonhow much may be
spent on behalf of candidates for the
presidency and Congress.
With the court dissolving his agency,
which so far has handed out almost $ 5
million to presidential candidates, the
possibility exists that public financing
of presidential campaigns will end for
lack of an agency to administer the law.
If Congress fails to find a new way to
keep federal funds flowing, Curtis said
he did not think those who have
received money or will receive it in
large batches for the rest of this month
will be honor bound to refund it.
" My personal judgment is that the
bargain has been broken,' ' he said.
The former Missouri congressman
said he thought the possibilities for
clean elections still exist through public
disclosure of how campaign funds are
spent and the establishment of an in-dependent
election commission.
" An independent commission is
vital" be said, slapping a well- thumb- ed
copy of Friday's thick
Supreme Court decision.
" It's the key. It's the bedrock."
The court decision put the FEC out
business after Feb. 29 unless Congress
revives and restructures it. The court
ruled that a commission partly ap-pointed
by Congress cannot con-stitutionally
exercise executive powers.
The court rejected most limits on
spending and said candidates can spend
as much of their own personal or family
wealth as they like. But it upheld the
$ 1,000 limit for how much individuals
may contribute directly to the can-didates.
Curtis said this meant poorer can-didates
would be hurt by the $ 1,000 limit
while rich candidates could still spend
their money freely.
He said millionaires like Republican
Ronald Reagan and Democrats Lloyd
Bentsen and Milton Shapp, governor of
Pennsylvania, might welcome the
results.
City cuts funds
for 3 projects
A $ 48,000 reduction in federal ap-propriations
for the city's community
development program will mean the
Columbia Public Works Department
will reduce planned funding in three of
its project areas by $ 20,000.
Ray Beck, public works department
director, said Tuesday that his depart-ment
will budget $ 30,000 for storm
sewer construction this year rather
than $ 40,000 previously earmarked for
that purpose.
Beck said $ 20,000 now will be
budgeted for rehabilitation of neigh-borhood
parks rather than an earlier
figure of $ 25,000.
Budgeting of $ 60,000 for the develop-ment
of Guitar Square Park has been
changed to $ 55,000.
See The qldX
I
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. i utJr f
0o The
Classified Pages
Police follow burglars' footsteps
By Jim Price
Missouriao staff writer
James Morgan, 1001 University Ave.,
returned to his home at 12: 45 a. m. June
13 and found it had been burglarized.
An extension cord that ran near the
door had been ripped from the wall, and
the stereo was missing from the living
room.
" They'd used some of my boxes to
carry the stuff out, along with my laun-dry
basket," Morgan said. " There was
dirty laundry all over the floor.' '
The burglary at Morgan's apartment
was one of 574 residential burglaries in
Columbia during 1975. That was an in-crease
of 53 per cent over the 1074 level
In 1975, $ 278,284 worth of property was
taken in Columbia's home burglaries,
more than double the 1974 total.
The burglars had taken items worth
$ 800 from Morgan, including a
television set, a stereo system, an oil
painting, a calculator and an electric
shaver.
Morgan had left the apartment only
I Burglary
j An alarming Increase
45 minutes earlier to run a computer
program. He locked the door. " But I
figured I wouldn't be gone long, so I
didn't double- loc- k it. That was a
mistake."
Within a few days following the
Morgan burglary, police received
several more reports of burglaries in
the southeastern part of Columbia.
Detectives Chris Egbert, Ronald Cross
and John Heidy investigated. The
police did not have any leads, Egbert
said, until July 9 when Cross and Heidy
made an unrelated arrest on a charge
of possessing marijuana.
Jewelry found in the arrested man's
apartment included a ring stolen from
Carol Novitalde, 1510 E. Walnut St.
Novitskie's residence bad been
burglarized one day after the Morgan
burglary. A second man was in the
sptrftTH", and his presence gave the
police reason to suspect him in the
Novifadde burglary, Egbert said.
Then investigators got another break.
One burglary victim told them be had
seen a yellow bicycle in the area before
he discovered that his home had been
burglarized. He had never seen the
bicycle before.
On July 2 and July 9, Egbert talked to
burglary victims at 411 Hitt St and 1001
University Ave. who had been vic-timized
about the same time as
Morgan. " You start canvassing the
apartments, knocking on doors. You try
to find someone to talk to you," be said.
" Each time you knock on a door you
write the name down on a report," he
said. This keeps several detectives
working on the same case from rein- terviewi- ng
the same people.
From the interviews with victims and
neighbors, detectives determined that
. man on a yellow bicycle bad been
knocking on doors. If someone an-swered,
the man would say he had the
( See HUNCH, Page It)