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state /national
Battalion/Page 9
November 12, 1982
Warped
by Scott McCullar
WHATS THE DIFFERENCE,
BETWEEN OVERCROWING
IN THE L/5KARY...
toasting
..AND OVERCROWDING
OUTSIDE THE LIBRARY?
A: YOU DON'T NEED AN
UMBRELLA AND WADING
SOOTS WEN yoU'RE INSIDE
Panel choices ‘terrible'
Old-age funds running out
United Press International
WASHINGTON — Facing
choices ranging from increasing
taxes to raising the retirement
age, a presidential Social Secur
ity panel is looking for ways to
produce up to $200 billion to
save the system that pays be
nefits to one in seven Amer
icans.
The 15-member National
Commission on Social Security
Reform, bipartisan but Republi
can-led, has plenty of choices to
bail out the retirement system,
but all of them are “terrible op
tions,” in the words of Chairman
Alan Greenspan.
Sources say the commission
may list the possible ways to find
the billions of dollars which the
panel says is needed by the end
of the decade, but may not re
commend any particular choice
to Congress.
“Don’t look for miracles to
come from the commission,”
Senate Finance Chairman Bob
Dole, R-Kan., said Wednesday.
He said the panel may agree
only on the size of the cash shor
tage, but that would still be an
improvement since last year
people were saying there was no
problem.
“I would hope we would make
specific (short-term) recommen
dations, but I’m not as optimistic
about that,” Dole told the
Social Security, which
pays disability and old-
age benefits to 36 mil
lion Americans, will be
unable to make retire
ment payments next Ju
ly unless Congress acts,
the system’s trustees
predict. The old-age
fund is temporarily
borrowing from its
richer disability and
Medicare funds, but
those funds expire in
June.
Washington Press Club.
He said also, it is likely the
panel will not agree on long
term benefit reductions or tax
hikes.
Dole said the immediate cash
problem could be solved by
speeding up payroll tax hikes
and capping the annual cost-of-
living payment to retirees.
Capping the annual cost-of-
living hike at 4 percent for two
years instead of basing it on in
flation, and tying it to wages in
stead of prices thereafter, would
provide up to $140 billion, he
said.
Speeding up a scheduled
1986 tax increase to 1984, and
moving up a 1990 tax increase to
1987 or 1988 would close the
rest of the gap, he said. The tax,
now 6.7 percent each for em
ployers and employees, is sup
posed to rise to 7.65 percent by
1990.
“But are those options that
can be sold on the Senate floor
and sold on the House floor and
to those who represent senior
citizens as well as working peo
ple? No. So I just toss those two
out,” Dole said.
“I’m not suggesting it’s the
answer. It’s one answer. That’s
one way we can meet the obliga
tion rather quickly.”
The ideas considered most
likely to win commission
approval to meet the short-term
cash crunch are speeded-up
payroll taxes and trimming the
cost-of-living increase, as well as
a recommendation to require
employees of non-profit groups
and newly hired federal workers
to join Social Security. Dole said
he would not be surprised if
Congress votes to put itself
under Social Security.
Social Security, which pays
disability and old-age benefits to
36 million Americans, will be
unable to make retirement pay
ments next July unless Congress
acts, the system’s trustees pre
dict. The old-age fund is tem
porarily borrowing from its
richer disability and Medicare
funds, but those funds expire in
June.
Social Security also is pre
dicted to run short early in the
next century when the huge
generation born after World
War II reaches retirement age.
Long-term proposals include
gradually raising the retirement
age or lowering the benefit cal
culation formula, but both have
fervent opposition on the com
mission.
Politician
claims
damage
United Press International
MARSHALL — Former state
Rep. Mike Martin of Longview
filed a federal suit against Gregg
County officials, saying they
arrested him illegally last year
after a shooting incident in Au
stin.
Martin, 30, is seeking at least
$1 million in damages for “se
vere public humiliation and de
gradation” resulting from the
arrest at his parents’ home.
He said Sheriff Bobby Weav
er and District Attorney Rob
Foster authorized officers to
arrest him.
The suit claims the Gregg
County officers were working
outside their jurisdiction be
cause they arrested him in
neighboring Upshur County.
Martin was shot in July 1981
and was arrested in August. Au
stin prosecutors said he had
himself shot to further his poli
tical career.
He denied it, hut, in a plea
bargaining agreement pleaded
guilty to a misdemeanor charge
of lying to a grand jury and was
forced to resign his legislative
office.
JESUS
IS
LORD
Sunday Services:
Sunday School 9:45 a.m.
Morning Worship 8:30 a.m.
11:00 a.m.
Evening Worship 6:30 p.m.
ALDERSGATE
UNITED METHODIST CHURCH Jt*
New Tylenol
bottle is shown
United Press International
PHILADELPHIA—Johnson
& Johnson Inc., parent com
pany of the maker of Extra-
Strength Tylenol capsules, will
use a tamper-resistant package
in its plan to reintroduce the
pain reliever to the market.
Chairman James E. Burke
was to detail the reintroduction
strategy at a news conference
Thursday in New York.
The capsules were pulled
from the market after seven
people in the Chicago area died
six weeks ago after taking cap
sules that had been laced with
cyanide. /
In Newark, N.J., Wednesday,
a federal grand jury indicted
Vernon A. Williams, Jr., 34, for
allegedly trying to extort
$100,000 from J&J by threaten
ing to lace more Tylenol cap
sules with cyanide. Williams was
arrested by the FBI Oct. 30.
The pain-reliever capsules,
made by McNeil Consumer Pro
ducts Co. of Fort Washington,
Pa., had an estimated 37 percent
of the analgesic market before
the Chicago deaths.
J&J spokesman Robert
Andrews said Burke would dis
play the new package, briefly
discuss plans for reintroducing
the capsules in stores, and dis
cuss the impact of the “Tylenol
tragedy” on the company.
It was reported Wednesday
that PACO Pharmaceutical Ser
vices Inc., of Lakewood, N.J.,
has been selected to produce the
new packaging. Neither firm
would immediately confirm nor
deny the report.
Andrews said the news con
ference — transmitted via dosed
circuit television to ‘29 cities, with
reporters able to ask questions
from Philadelphia, Chicago) Los
Angeles and Washington — was
the first ever for the New Bruns
wick, N)J.-based company.
J&J took a $50 million after
tax charge against third quarter
earnings to cover the cost of re
calling and destroying 22 mil
lion bottles of capsules,
Burke said overall earnings
will suffer in the fourth quarter
and in 1983 because of the
tragedy.
But he noted J&J would in
vest heavily to re-establish Tyle
nol’s position.
Many analysts say J&J is in for
an uphill battle to restore public
confidence in Tylenol. But they
point out its reputation and
financial strenth put it in a good
position to succeed.
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Photography by Eclipse
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