European Stars And Stripes (Newspaper) - August 22, 1986, Darmstadt, Hesse                                Friday August 22, 19b6 the stars and stripes Page 7 Dod revamping purchasing policy Washington not the defense depart ment intend to publish soon a series of new Regula Tion governing the profits earned by military contractors. They will be paid More slowly and asked to Bear More of the Early costs of manufacturing weapons according to Pentagon officials. The new profit policy will be offered for Public com ment in september according to participants drafting final details of the Complex plan. It would take effect next year. The policy has caused concern among weapons makers whose Cash flow would be reduced for example the government might lower monthly payments to contractors to 70 percent of their costs from the current 80 percent. The contractors would also beaked to make substantially larger initial investments guns ammo found in Home of slain cop san Antonio up police searching the Home of � suspended policeman killed by a fellow officer said wednesday that they found 2s guns and More than 75,000 rounds of ammunition. Patrolman Stephen Richard Smith 31, was shot Sev eral times in the head and Chest monday night by patrolman Parrel Tucker 3i, who was investigating death threats Smith allegedly made against a District attorney and two Deputy police chiefs. Police said they collected 17 pistols six rifles five shotguns and the ammunition from Smith s Home. Authorities said Tucker was wearing a hidden tape recorder to collect information on the death threats when he shot Smith while the two men described As close friends were Riding in a car Bew county District attorney Sam Millsap bought the tape recorder for Tucker because the officer told him Smith bad threatened to kill Millsap and Deputy chiefs Frank Hoyack and Robert Heuck. Smith a seven year police Veteran had been sus Pended while awaiting rial on a brutality charge and was suspected in cases in which the Homes of the Dep Uty police chiefs had been shot at or firebombed. Israelis charged in nyc drug bust new York. A five israelis were arrested and a $1 Miltton a Weck drug ring smashed with the help of undercover investigators and hebrew speaking officers police said wednesday. More arrests were expected As a result of the 18-month investigation during which undercover officers reportedly infiltrated the group known As the narcotics distribution network and bought $118,600 Worth of heroin and cocaine. One person who was not apprehended is believed to have fled the country said Cape Paul Murphy head of the police narcotics unit. The five israelis arrested tuesday were indicted on37 count contained in six indictments and were being held without bail Murphy said. It believe the subjects arrested Are International distributors of heroin and cocaine and. Their influence spreads across the country into Europe and Asia be said. Police said the five who came to the United Stales several years ago imported heroin and cocaine wort about 5100,000 each week and resold it on the streets for an estimated $ 1 million. They said the drugs were apparently smuggled from Turkey and the far last. Members of the ring would Fly rep Larty to Amsterdam and Thailand and Fly  Back into the United states police said huge quantities were brought in by air through new York Montreal California and Honda said o. Ronald Naimoli. And amazingly a lot of the stuff simply was carried in in regular Luggage. Hebrew speaking police officers aided in the under Cove operation translating Telephone conversations being taped by police. The five were identified As Shlomo aked 33, Bruno Betish Ayau 24, Simon Cohen. 23, Ziv oved 34, and Alex Palace 29. In the equipment needed to make arms. However some government agencies including the Navy contend that the new approach docs not go far enough Eleanor r. Pc ctr assistant Deputy undersecretary of defense for acquisitions said in an interview that while profits will be slightly lower the effect of the new policy would not be dramatic. Despite contractors concerns she said the new rules would not Deal with them  but Douglas Lee a financial analyst in Washington said the new policy is intended to Force contractors to reinvest their profits in their defense business rather than in unrelated  the Pentagon has been revising its profit policies for the last two years partly because of declines in inflation and interest rates that obviated measures take during the Carter administration to improve business conditions for military contractors. The revisions Are also supposed to Clow the Gap Between the higher prof its earned on military work and those typical of com Mercial contracts. The new regulations arc being accelerated by Calls to Stem military expenditures and to meet fiscal goal imposed by the Gramm Rudman Hollings budget balancing Law. Deputy Secretary of defense William h. Taft in told the Senate appropriations defense subcommittee on aug. 7 that the reduction in payments to 70 per cent after the Cut last year to 80 percent from 90percent, would reduce outlays by ii billion in 1987 and by s3 billion in 1 claiming a dependent Over 5? irs wants social Security number by the los Angeles times Washington the massive tax Bill that appears headed for enactment requires that All children who turn at least 5 Yean old next year have social Security cards by 1988 if their parents claim them As dependents on their Federal lax returns. The new Rule aimed at cutting the government s multimillion Dollar loss of tax Revenue from taxpayers claiming personal exemptions they do not deserve will also provide the social Security administration with a monumental bureaucratic Challenge and could be a substantial nuisance for parents. The social Security administration estimates that parents will line up to get card for 9 million children As a result of the new Rule. Beginning with tax forms filed in 1988 for the 1987 tax year parents will have to list the social Security number As Well As the name of All dependent children 5 years and up. Congress inserted the provision into the tax Bill in response to the internal Revenue service which says taxpayers file false claims for 8.3 million children a year As dependents. With social Security numbers the irs will be Able to Check such claims. Some of the children now claimed As exemptions do not exist the irs says and others Are grown up and working on their own. Some divorced parents Bot claim the same child As a dependent although Only the Parent providing the bulk of financial support is entitled to do so. The new Rule should deter taxpayers who have been claiming their dogs or other Pels As dependents said an accountant who asked not to be identified. Dogs Don t have social Security Nuny Bers he said. And the irs foresees a growing temptation to cheat because the tax Bill will increase the personal exemption from ,00 this year to ,900 Neil year and$1,950 in 1988. The Revenue Drain from illegal exemptions could grow to $5.6 billion by 1990, it estimates if the current practice of listing Only each dependent s name remained unchanged. Panel wants refund for Jet parts Washington up a House subcommittee wants the Pratt & Whitney aircraft group to reimburse the government $64.5 million for faulty Jet engine parts the company sold the air Force and for an f-16 fighter that crashed because of a defective part. Chairman John Dingell d-mich., and ranking Democrat Ron Wyden frore., of the House Energy and Commerce subcommittee on investigations and oversight sent a letter this week to Pratt 4 Whitney president Arthur Wegner requesting the refund. At Issue Are 77,000 allegedly defective Jel engine Turbine Blades that the company a subsidiary of United technologies corp., sold to the air Force for about s3i million. Also at Issue Are seven Pratt & Whitney f-100 Jet engines Worth s20 million reportedly damaged due to the faulty Blades and one f-16 fighter costing s9.5 million that crashed in the Gulf of Mexico in 19s3 As a result of a defective Pratt & Whitney engine part. The company has disputed the subcommittee charge that the seven engines and one fighter were destroyed because of faulty Pratt & Whitney parti. Lockheed pays too much of says Washington a the air Force a labor Union and the Lockheed Georgia co. Have become embroiled in a dispute Over whether the company is paying its hourly workers Loo much Money. The aeronautical machinists Lodge 709, a local of the International association of machinists and Aero nautical workers maintains the air Force is engaged in a heavy handed attempt to control the Content of our labor  the Union is negotiating a contract with Lockheed to replace one that expires oct. 1. The air Force says it has no intention of getting involved in the labor negotiations but it believes Lockheed s wages Are out of line. The service also says it does t want to compensate the company for any higher wages it agrees to pay in future contracts. The Union has sought the assistance of Georgia representatives claiming jobs Are threatened. The Union s pleas were prompted by an air Force memo sent last May to Lockheed Georgia by Reginald. Andrews the contracting officer assigned by the service to the Plant in Marietta that builds the co and cd 30 cargo planes. Andrews wrote that audits of Lockheed s labor costs had determined the company was paying its office workers guards and factory workers at Levels thai were substantially above the prevailing local Rales for the Atlanta area and Southeast. Illinois Bank is 91st to fail this year Springfield 111. Up a tiny Western Illinois Bank was declared insolvent by Federal and state officials wednesday becoming the 91st Bank to fail this year in the United states. Officials of the Federal Deposit insurance corp. Said the Mendon slate Bank of Mendon was closed about 3 10 . Wednesday. It reopened at 9 am. Thursday As a Branch of first Midwest Bank of nearby Quincy. Mendon stale was the first Illinois Bank to fail since August 1985. Odic officials said the Mendon Bank had assets of $20,5 million. No depositors will lose Money because of the failure Odic officials said. The Odic usually protects deposits of up to $100,000, but since first Midwest bought All men Don s assets and liabilities even deposits exceeding 100,000 will be covered officials said. William Harris Illinois Banks commissioner said the Bank failed because of excessive loan losses and poor management practices. The insolvency resulted from excessive loan losses including several sizable Loans made to out of territory borrowers Harris said. In addition Harris said unsafe and unsound banking practices on the part of management and the Bank s directors contributed to the failure. First Midwest Wilt assume about $ 18.8 million in 3,900 Deposit accounts and has agreed to pay the Odic a Pur Chase Premium of $215,010. It also will buy some of the jailed Bank s Loans and other assets for $ 11.8 million