September 13, 1977

Robert Lowell

Sen Energy Com rejects deregulation proposals offered by Sens Clifford P Hansen and Dewey F Bartlett, leaving intact Pres Carter's plan to raise rather than decontrol prices; vote on Hansen proposal is 9-9; vote scheduled on proposal by Sens J Bennett Johnston and Pete V Domenici that would retain controls but raise ceiling to $2.41 by '81 and even higher after that (S)

 

NY Telephone Co wins recommendation by state adm law judge Vincent P Furlong that 26-yr‐old 10c coin‐box phone call be raised to 20c throughout NYS as part of proposed overall rate increase of $245.2-million a yr; 20c charge for 5-min local calls was turned down by full PSC when it was proposed by co in '73 and '75; co exec vp Daniel E Emerson lauds action; another adm law judge recommended that co be required to reduce long‐distance loll rates within NYS by 10%; adm law judge William J Cowan recommends that co be ordered to increase its charges for terminal equipment by $150-million, which would be within overall pkg (M)

Carter tax reform pkg, in final stages of preparation by Treas Dept and White House staff after consultation with other agencies, is likely to propose $10,000 limit on deductible mortgage interest payments, and Fed subsidy of 35-40% on interest paid on taxable state and local bonds ineffort to shrink tax‐exempt bond loophole; speculation on other proposals; pkg is expected to reduce Treas revenue by $15-billion in 1st yr ($10-billion in tax relief for individuals, $5-billion for business); HR Ways and Means Com tentatively plans to hear Adm and public witnesses (L)