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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Feb. 2, 1981)
The Battalion Serving the Texas A&M University community Monday, February 2, 1981 College Station, Texas USPS045 360 Phone 845-2611 The Weather Yesterday Today High 61 High 45 Low 30 Rain none Chance of rain. . . .. . none Economy is bad Reagan aides say United Press International WASHINGTON — White House chief of staff James Baker says the economy is in the worst mess in 50 years and that Presi dent Reagan will begin explaining what he intends to do about it this week. Interviewed on CBS’ “Face the Nation, ” Baker was asked Sunday if the failure to declare a state of emergency, as he had suggested before the inauguration, meant economic conditions turned out not to be as bad as expected. “On the contrary, the economy was worse than we thought,” said Baker. “I think there is very little debate about the fact that the economy which this adminis tration inherited is the worst mess that we’ve seen in 50 years ” Baker said Reagan, in an address to the nation Thursday, will “explain where we are, how we got into this mess, and — within a general framework — what we plan to do to get out of it. ” Specific remedies will be outlined in the president’s State of the Union speech to Congress on Feb. 18, he said. In a related comment, Federal Reserve Board Chairman Paul Volcker said with the election of Reagan and a more conservative Congress, and changes in public under standing, “We really have a rare opportun ity (to fight inflation) and it’s terribly impor tant that we take advantage of this oppor tunity.” People have come to expect inflation, Volcker said, and “the problem is aggra vated through wage settlements, through pricing policies, through other elements of individual behavior.” “Now if people begin betting in a diffe rent way, if they begin getting a little moi confident that inflation can and will 1 brought down,” the economy can be coi trolled, he said. Appearing on ABC’s “Issues an Answers, ” Volcker, who was appointed t Jimmy Carter, said he was encouraged b his meetings with administration official He praised budget director David Stocl man’s work as a budget cutter and sak “there is more vigor and energy in th process than I’ve seen in my years Washington.” Meantime, Rep. James Jones, D-Okla chairman of the House Budget Committe< said on NBC’s “Meet the Press” spendin must be reduced before the administratio goes ahead with its proposed three-ye 30 percent tax cut. A&M to get pay benefits By KATHY O’CONNELL Battalion Staff The Texas Legislature’s emergency pay raise, signed into effect Friday morning by Gov. William P. Clements, will mean a salary increase for Texas A&M University’s 11,800 faculty, staff and employees. Effective Feb. 1, employees received a 5.1 percent salary increase or a $50 per month minimum salary increase, whichev er is higher, Bill Lancaster, Texas A&M payroll manager, said. Employees haven’t received an increase since 1974, and at that time it was 13.4 percent, he said. The raise also applies to student workers as well as other part-time and temporary workers. This increase follows a raise in the federal minimum wage of $3.35 per hour. With the new increase, Lancaster said, those who earn $5.63 or less per hour will get a $50 per month increase, and those who earn more than $5.63 per hour will get a 5.1 percent increase of their pay. “In other words, employees who earn an annual salary of $11,760 will get the $50 per month increase, and those who make more than this annual salary will get 5.1 percent of their annual salary.” This is an advantage for lower-paid em ployees, he added. Lancaster said he doesn’t know the total money involved, but “a computer run sometime this week will calculate the fi " J . > gures. State Representative Bill Presnal said he is pleased with the increase, even though it was an “emergency matter. ” However, he said, “If we spend all our money on a emergency increase, then we’ll be har pressed later on.” For instance, he saic there are still inadequacies in pay in som employees’ salaries. There’s a high percentage of turnover i the state’s direct service care for the mer tally retarded and a 25 percent increase wi be recommended for these kinds of jobs, h said. Presnal, a former Texas A&M st dent, is the chairman of the House Appro nations Committee. Presnal said the bulk of the money f finance the new increase on a state-wid basis will come from the general revenu source. As far as funding the Texas A&^ System, he said some of the money wi come from various auxiliary funds o] campus. Staff photo by Brian Tate EdKesgen, a graduate parks and recreation student, his jogging enthusiasts enjoyed the cool air which swept 5-year-old daughter Lauren and their dog Teeka get through the area Sunday, leaving early morning temper- some exercise along the Texas A&M jogging track. Many atures hovering at the freezing mark. House hears anti-crime bills Council to choose new head In executive session tonight MSC Coun- |cil members will select from among four [applicants for the 1981-82 MSC Council president. Applicants for the presidency are Todd Norwood, council coordinator of funds; Doug Dedeker, vice president of adminis tration; Kirk Kelly, Great Issues chairman | and directorate representative and Craig Hanks, Aggiecon Chairman. The council’s nominating committee will recommend to the executive session the acceptance of one applicant. The nomi nating committee met over the weekend, interviewing applicants. The MSC Council president will over see the actions of a 25-member council, as well as the programming of 19 directorate committees. Next year’s MSC budget should exceed $1.5 million. the purpose of the awards and the number of award categories. Vice President of Programs Sara Mors£ said there were several awards eliminated because sole accomplishment of a job does not merit an outstanding acheivement award. Morse said a potential 17 awards have been eliminated in the proposal. United Press International AUSTIN — The House will conduct public hearings this week on the major points of Gov. Bill Clements’ 10-bill anti crime package, now that the Legislature has finished approving an emergency pay raise for state employees. Clements signed the pay raise bill into law Friday. It was the first legislation pas sed this session, and it guarantees state workers a minimum $50 a month increase effective this month. Also, the Council plans to discuss a prop osal changing the MSC awards system. The proposal differs from the current policy in MSC Council members will meet in the Conference Room (216T) in the Student Programs Office at 7:30 p.m. This week’s schedule calls for the House Jurisprudence Committee to hear testi mony Tuesday on at least two and perhaps three of the anti-crime bills. Rep. Stan Schlueter, D-Salado, has sub mitted a proposal that would make it easier to get convictions for aggravated rape. And Rep. Chris Semos, D-Dallas, has proposed a bill to increase the penalty for rape, sexual abuse or serious bodily injury to a child. Hearings are scheduled for those prop osals. Schlueter’s bill would redefine the offenses of aggravated rape and aggravated sexual abuse so that persons who place a victim in fear of imminent death, cause serious bodily injury or kidnap the victim while carrying out the offense could be con victed of those charges. The House Intergovernmental Affairs Committee will consider another of Cle ments’ anti-crime proposals Wednesday. That bill was submitted by Rep. Tom Wal drop, D-Corsicana, and it would give cities and counties the authority to regulate by ordinance the display of materials consi dered harmful to minors. The Jurisprudence Committee had schc duled a hearing on a proposal by Rep. Bi Blythe, R-Houston, regulating “hea shops” — businesses which sell drug para phernalia. But the committee chairman Rep. Lynn Nabers, D-Brownwood, sail that bill may not be considered. Tuesday is deadline for no-record drops Tuesday, Feb. 3, is the last day to dro classes at Texas A&M University with n record. After this deadline, students hav until Feb. 20 to drop classes with no pen alty (Q-drop). Gas prices could top $2 a gallon this year United Press International WASHINGTON — Decontrol of oil prices could shoot the cost of gaso line through the $2 barrier this year, but industry and government ex perts figure the increase probably won’t be that high. The effect of decontrol alone, assuming no increase in the world price of crude oil, would add 15.1 cents to the average pump price of a gallon of regular leaded gasoline dur ing 1981, an Energy Department study forecasts. The study, released late last week, projects retail prices will range from a low of $1.48 to a high of 52.23 by year’s end when adjusted forfactors such as crude price boosts, demand patterns and inflation. Abase projection, falling between the high and low forecasts, put the 1981 year-end price at slightly more than $L80. Assuming no other factors but de control, and constant $35 per barrel world crude oil, the average price still would jump from $1.22 to $1.37 during the year, the study said. The agency’s “Short Term Out look” study was based on information available before December 1980, thus missing the latest round of OPEC crude oil price increases and President Reagan’s decision last week to decontrol domestic prices immediately. But Murray Weidenbaum, chair man of Reagan’s Council of Econo mic Advisers, said prices will reach the same levels by the end of the year under immediate decontrol as they would have under the gradual phase out that would have ended Sept. 30. Most experts believe the price boosting effect of Reagan’s move will be immediate, particularly with home heating oil, but that overall increases will be about the same as with gradual decontrol. Consumer groups opposed to de control were warning of 12 cent hikes in gasoline and heating oil prices. Dan Lundberg, publisher of an oil marketing newsletter, forecast 10 cents or more. “I think that oil companies are going to raise prices in the short run,” said Dr. S. Charles Maurice, head of the Texas A&M economics department. “But, in the long run, decontrol can’t possibly cause prices to be higher than they would other wise be, because they’re going to in crease the suppy of oil. “The controls themselves have probably caused prices to be higher than they should, because they de creased the supply of crude.” Gasoline already is selling for $ 1.50 a gallon at scattered full service stations around the country, a far cry from the 30-cent-per-gallon avail able before the 1973 Arab oil embargo. But such price comparisons, for all the consumer outrage they evoke, can be deceptive. In uninflated dollars, gasoline prices actually declined from 1974 through 1978. Predictably, U.S. consumption rose, as did oil imports. In 1972 dollars, the average price of a gallon in 1974 was 45.1 cents, compared to 40.1 cents in 1978. The uninflated price rose only to 60.6 cents a gallon — about $1.23 with inflation — by the third quarter of last year. B-CS feels price rise after decontrol Staff photo by Chuck Chapman Morgan Smith of Dallas and many Bryan- College Station residents are already feeling the pinch of tightened pocketbooks in the wake of the deregulation of domestic crude oil. Prices at some area stations have gone up about three cents per gallon in the last week. By BERNIE FETTE Battalion Stall As a result of President Reagan’s decision to lift price controls on domestic crude oil, rising gasoline prices are beginning to show on pumps in Bryan and College Station. Some filling station operators ex pect the increases to continue for the next month. “I have no reason to doubt that these prices will continue to go up,” George Young, a Bryan Shell station owner said. Young’s prices rose three cents per gallon last week and have risen nine cents since Thank sgiving. “I have to raise my prices penny for penny,” Young said. “If the peo ple I buy gas from raise their prices, I have to raise mine just to survive.” Weldon Kreuger, who operates a Mobil station on the comer of Texas Avenue and Marylake Road, has raised his prices four cents in the past two weeks. “When their (the oil companies’) prices go up, then we just have to raise ours too,” Kreuger said. “I wouldn’t doubt it a bit if the prices went up again next week. ” One owner in the area who hadn’t raised his prices last week but plans to today is Claude Dobbins, who op erates a Fina station in Bryan. He said he received instructions Satur day to raise his prices and that the one and a half cent price increase would be effective today. “I expect we’ll see about a five cent increase in the next 30 days,” Dobbins said. In College Station, the Exxon sta tion at Texas Avenue and Harvey Road has raised prices three cents per gallon for both self-service am full-service. Prices there have beei rising one to two cents per galloi every other week for the past month a station attendant said. The Texaco station at Texas Ave nue and Dominik Drive also raisec its prices two cents per galloi Saturday. The Houston Chronicle Sunda; reported a survey of 177 Texas sta tions showed the average price o gasoline now at more than $1.20 pe gallon with most grades pushin;: $1.30 per gallon. But Dr. S. Charles Maurice, hea( of Texas A&M University’s econo mics department, said he thinks th< rising prices are only a short-tem effect of Reagan’s action. Even though prices are rising 1 Maurice said he doesn’t think th increases will continue for long, nc does he think price controls will b needed again. Maurice said Reagan’s lifting c price controls would bring the pric of U.S. crude oil more in line wit international prices and lessen th: nation’s dependency on foreign oilji He said the price deregulatio would help the Texas economy “t some extent,” but probably nc much because the state’s economy i already very strong. Because of Reagan’s action, o companies’ profits are expected t improve, but those additional profit may be subject to the windfall profil tax. The windfall profits tax, Mauric said, would both tax away the rc venue that would encourage new e> ploration and reduce the incentiv for that exploration. n, 3d he >r- ir- ;as