Daily Capital News (Newspaper) - November 14, 1973, Jefferson City, Missouri Mild Mild much of today with a of over and por tonight info Thor ny Turning In tonight and in portions by Thur High today 70 Lf tonight 50 High Thursday in Hw JEFFERSONCITY MISSOURI WEDNESDAY MORNING NOVEMBER 14 1973 Explorers land are the of Clark and Meriwether Lewis arrived Tuesday afternoon in Jefferson City The group has traveled more than 3600 miles of their 3800 mite journey which at Astoria Ore June 7 The travelers Ml meet with Gov Christopher S Bond at am today before continuing their journey to St Louis Shown debarking from the canoes and kayak from left to right are Gary Kimsey Independence Mike Cocnran Grand Junction Colo Clay Asher Twin Falls Idaho and Bob Miller Albuquerque NM The fifth member of the expedition is Mike Wien Highland Park III News and Tribune staff photo SB A abuses charged WASHINGTON AP The alleged corruption within the Small Business Administration loan practices extends far beyond the Rich mond Va SBA office and may be nationwide congressional sources said Tuesday This thing is pervasive throughout the entire nation said Rep Henry B Gonzalez a member of the House Banking on small business which reported on the alleged criminal abuses in SBA field offices goes from top to bot tom said an official close to the congressional investigation Gonzalez said that in addition to the probe of the Richmond office subcommit tee investigators and the Justice Department are looking into SBA operations in Philadelphia Baltimore Detroit Albuquerque Chicago New York Miami and Los Angeles In Albuquerque the former SBA minority enterprises chief Moses L Sanchez is serving a threeyear prison sentence after pleaded no con test to charges of soliciting and accepting bribes His indictment alleged he received three bribes totaling from men who later received SBA loans totaling 581500 It was not known if the Sanc hez case was under tion by the House subcommit tee In Detroit acting SBA Dis Director Charles Lock wood said the Detroit office was not involved in the current House probe Comments from other cities were not immediately avail able Organized crime influenced loan practices in at least some cities resulting in millions of dollars of defaulted loans Gonzalez charged He described as conser one published estimate that bad debts in the Rich mond SBA office alone may total million Gonzales said that tly the pattern is one of out and out conflict of interest by SBA administrators of corrupt in fluences in kiting loans getting a loan to cover another Positive reaction WASHINGTON AP The White House said Tuesday there has been overall posi tive reaction from Republican party leaders and members of Congress to President Nixons personal Watergate defense The President was holding a third session Tuesday evening in the series of six he plans this week to discuss the issues with all the Republican members of Congress and some Democrats There was still no White House response to a call from the Senate Watergate commit tee for Nixon to let its mem bers question him on Watergate matters at his earliest convenience The committee voted 5 to l sources said to request the meeting and ask the President to make available to them all relevant tape recordings and documents regarding the Wa tergate investigation In US District Court Gulf Oil Corp pleaded guilty to making illegal contributions from corporate funds to Nixons 1972 campaign and the unsuccessful presidential nomination campaigns of two Democrats Claude C Wild Jr a Gulf vice president also pleaded guilty to a formal charge of consenting to the donation to Nixon Other funds were to Rep Wilbur D Mills DArk and Sen Henry M Jackson DWash Gulf received a fine Wild a fine Matthew E Clark Jr an employe of the American Ship Building Co of Cleveland told the Senate Watergate commit tee he was given a bonus last year and ordered to donate what remained of it after deductions to several campaigns including Nixons He said he was to lie to the FBI about it Nixon opened his campaign Monday to try to clear up Wa tergate matters by meeting with the Republican Coordinating Committee and later with five conservative Southern Democrats and one dent member of Congress loan and a systematic and apparently nationwide abuse of the lease guarantee loan program In 1969 Gonzalez exposed an attempt by a special assistant to Administrator Hillary Sandoval to get kick backs from a San Antonio loan applicant in exchange for guaranteeing the loan In that case the special as tried to persuade the San Antonio businessman to apply for a loan instead of a one and said he would guarantee his getting it but he wanted a guarantee of 49 per cent of the mans business Albert Fuentes was convicted and jailed seen In other developments House Judiciary Com approved by voice vote a that would place the of fice of special Watergate prosecutor under federal court jurisdiction The measure also would direct the prosecutor to help the commit tee in its investigation of grounds for the possible impeachment of Nixon W McCord Jr ap pealed his conviction on charges of conspiracy burglary and wiretapping in the Watergate breakin He was sentenced last week to serve one to five years in prison but remains free on a appearance bond Pipeline WASHINGTON AP Nearly six years after Americas richest pool of oil was discovered on Alaskas North Slope a authorizing a pipeline to tap it cleared Congress Tuesday A Senate vote of 80 to 5 sent the measure to President Nix on Backers predicted he will sign it despite administration misgivings over sections giving regulatory agencies powers The House passed the Monday The pipeline long delayed in Congress and the courts by who feared damage from oil spills would be the largest construction job ever undertaken by private enter Sen Henry M Jackson D Wash warned that if they again tie the project up with lawsuits he will offer a in January to have the federal government build it Jackson said work must be gin by May on the line so that oil can begin flowing to the icefree port of Valdez and thence by ship to West ports Reserves in the Prudhoe Bay area of Alaska discovered in February 1968 are estimated at 10 billion to 30 billion barrels Atlantic Richfield Exxon British Petroleum and four firms which hold smaller shares of the oil formed a con sortium to build the pipeline After prolonged courtroom delays a federal appeals court blocked the project in February The court said it violated limits on the width of rights of way which Congress laid down in 1920 The sent to Nixon revises the right of way limitations authorizes a con struction permit and bans most lawsuits which could delay the project Environmentalists have 60 days in which to challenge the constitutionality of the bills prohibition of lawsuits against the permit Elsewhere on the energy front Power company spokesmen and government officials told the House Com merce Committee that yearround Daylight Saving Time could cut power consum by one or two per cent but might require children to travel to school in the dark National Education Association urged the Nixon administration not to disrupt schools to save energy Senate is expected to take up today a au imposition of emer gency measures Majority Leader Mike Mansfields order to lower Senate ther to 68 degree began to take hold It was so chilly in the chamber that Mansfield said he may come up with a new line of Johns Plans to ration gasoline stirs By the Associated Press Treasury Secretary George P Shultz strongly opposes gasoline rationing saying it should be absolutely the last resort Shultz said Tuesday he was concerned that many Ameri cans including some adminis tration officials are ting to the energy problems I have seen what some ad ministration have said about gasoline rationing Shuitz told a con ference of financial writers in Washington I say to you that rationing should be absolutely the last resort If were intelligent about it we should be able to avoid it Interior Secretary Rogers C B Morton said over the weekend it may be necessary to impose gasoline rationing within the next two or three months Shultz said that to save ener gy the government should lower speed limits and arrest a few people when they go over 50 miles per hour In other developments Beirut Lebanon newspaper Al Anwar reported Tuesday that Saudi Arabia has decided to demand immediately a 51 per cent share in the oil companies operating within its borders The report was based on an interview with King ury g son Prince Saud al Faisal undersecretary of the Oil Ministry US Senate approved a Tuesday for private con struction of an oil pipeline across Alaska to carry oil from the Alaskan North Slope oil fields to the port city of Valdez The measure goes to President Nixon for his sig nature House Commerce Committee approved a authorizing a return to Daylight Saving Time after being told DST would reduce power tion by one or two per cent but might require children to go to school before daylight House Armed Services subcommittee bending partly to Nixons request said Navy oil should be tapped to help meet the fuel crisis but only if all other measures fail If re serves at Elk Hills Calif are used the fuel should go to the military or to industry en gaged in direct support of the military the subcommittee said Jennings Randolph DW Va told the American Petroleum Institute in Houston that unless price regulation in its present form is removed no new coal mine capacity will come about Department of Trans announced it is set ting up an Office of Energy Policy to oversee and nate energy conservation et forts in the nations transpor tation system Secretary Frederick B Dent said he felt that the energy shortage would force some businesses to close Dent said in Boston that most companies can learn to live with the shortages and some may flourish while others will fail because of their impact He said that private industry uses 70 per cent of the nations energy and if there is to be a reduction in the per capita consumption a sub stantial portion of it will have to come from the business sec tor Cattle Building plan approved count boosted WASHINGTON AP number of cattle being fat tened for slaughter on Nov l an indicator of how much beef will be on supermarket coun ters next winter rose 4 per cent from Oct 1 But it still trailed a year earlier the Agriculture Department said Tuesday Officials said the Nov 1 in was about in line with recent predictions that the na tions beef supply would in crease some this fall and then decline a bit early next year The report which covered seven major beef producing states showed further that placements of cattle in feed lots to replace those going to market were down 20 per cent in October from a year previous Those represent cattle which will form much of the slaughter beef through next spring One livestock economist said the October decline was larger than he had expected The decline in October feedlot placements could be even more significant if livestock producers fail to make up the gap during November and December he said Major factors contributing to an apparent reluctance to increase feedlot inventories include high feed costs the price of lightweight cattle and calves and the press of fall harvest work in Iowa and other big beef areas The Nov l inventory showed more than 95 million cattle were being fattened for slaughter in the seven states Those account for about 70 per cent of the nations beef sup ply The only increase in the Nov 1 inventory from a year earlier was in Texas up 4 per cent Kansas and Arizona were shown with the same number of cattle on feed and declines were reported for Iowa Nebraska Colorado and California Placements of a cattle on feed in October totaled 21 mil lion head with each state showing fewer than a year earlier Sales of cattle for slaughter during October totaled more than 17 million head down five per cent from a year earlier Kansas and Arizona showed increases while the others de There has been some in crease in cattle slaughter sin ce late October according to other U S D A marketing reports Those sales have caused some weakness in the market which has dropped from around per 100 ds for choice steers at Omaha Neb in late October to about early this week Although those prices are well above a year ago they are down sharply from a peak of about per hundred weight last August and have been a big reason for dam feedlot expansion according to the experts The State Board of Public Buildings has approved a plan to purchase a tract of land west of the Broadway State Office Building to con struct a new state office facility A program to reallocate space on the first two floors of the state Capitol to provide more space for Missouri legislators was also approved by the board at its monthly meeting Tuesday in the governors office The board consists of Gov Christopher S Bond Lt Gov William C Phelps and Atty Gen John Danforth The board action will allow the state to purchase a tract of land situated between West High and West McCarty Streets and west of Broadway Gold Street to Walnut Street from the city for about The land has already been appraised and Housing Authority officials are ted to begin negotiations for the purchase of the property within 30 days Purchase of the land will be made under guidelines set by the federal Uniform Acquisition and Relocation Act Ted J Herron Housing Authority director said Herron said the city will pay property owners fair market value for their land The city also will pay relocation costs as specified under federal guidelines Herron added Here is how the city will determine initial purchase offers for the tract of land and then a third appraiser will review their appraisals and determine a fair market value of the property Then the authority board of commissioners reviews these appraisals and determines an initial offer to a property owner The purchase offers are subject to negotiations If a property owner and the city cannot agree on a pur chase price then there are several steps both sides can pursue to end the stalemate Herron explained The site is in the area included in the Capitol West Urban Renewal Project fun ded chiefly by the federal government Missouri legislators approved in a million state capita improvement package for fiscal 197374 to acquire land for future development of state facilities But lawmakers failed to include funds for planning any new facility so administration officials must ask for additional money to finance engineering studies for the new building The proposed building is expected to include about 360000380000 usable square feet according to state officials No definite decision has been made on what state offices will occupy the proposed building but it is expected it will house a stale museum and archives center State officials expect the facility to be under construc tion by 1975 and say it could be finished by 1978 Construction would probably be financed through a bond issue The action to construct another state office building in See BUILDING Mansion spending system ended creates argument WASHINGTON AP Chairman Arthur F Bums of the Federal Reserve Board announced Tuesday night the termination of the worlds dual price system for gold The practical effect of the action may be a sharp drop in the market price of gold which has been above an ounce for a number of months Under the dual price system for gold there has been an official price set by govern ment central banks and a free market price for trading by private persons The US official price of gold as a result of recent de valuations of the dollar now is about Burns said the United States interprets abandonment of the dual price system as meaning it can sell its gold at whatever price it will bring but that it could not buy gold at over its own official price of The United States gold re serves are in excess of Sit bil lion Bums said other central banks may interpret the action differently than the United States but declined to speculate on how else it could be interpreted The agreement on a dual price system for gold also known as a price sys tem was reached in Washing ton in March 1968 by Belgium West Germany Italy the r 1 a n d s Swit the United Kingdom and the United States A 11 seven governments agreed at a meeting held in re cent days at Basel Switzer land to terminate the 1968 agreement Bums said Burns made the announcement on behalf of all the governments involved Burns noted that the 1968 agreement was reached be cause massive amounts of gold were flowing into the private markets depleting government reserves especially those of the United States and Great Britain He said that agreement was being terminated because events have passed by the March 1968 agreement It no longer has any relevance to the actual JEFFERSON CITY Mo AP Gov Christopher S Bond was at one end of the table and House Appropriations Chairman James Jay Russell a Democrat was at the other end The subject again was spending at the Governors mansion and whether or not a new bathroom was needed Russell complained earlier this year about being spent on a bathroom complex for the second floor living quarters at the mansion Now he was charging the governor was trying to over spend the appropriated this fiscal year for mansion re pairs He said two 000 for heating Bonds second floor porch and for a public bathroom on the first floor were never specifically approved by the Legislature Happy to welcome you said Bond grinning as Russell and two aides sat down at a meeting in Bonds office of the board of public buildings Bond is chairman The other two are also Lt Gov William C Phelps and Atty Gen John C Danforth Danforth excused himself to attend another meeting just as the debate was getting star ted All he had to say was that he was in favor of bathrooms Russell said he had heard Mrs Bond on the radio giving tips to citizens on how they could conserve energy The governors office should withdraw the request for heating the porch to go along with the program said Russell a tavern owner from Florissant other state agencies have to live within their budg ets and we feel its only prop er that the governors office should do the same The Bond Administration had accused Russell of bad mathematics when he first charged there would be over spending Robert L James who heads the Office of Administration said the figures Russell was using were not final figures and needed explanation Russell missed the point and said if James needed an ex planation on the figures he would gladly have one of his aides supply it Bond corrected Russell saying James would be the one offering the explanation The governor nervously looked al the clock and tried unsuccessfully to cut off the debate Theyre your figures not Sff MANSION pa 6 Committee meets on reorganization JEFFERSON CITY Mo AP Gov Christopher S Bond warned a citizens com on state reorganization Tuesday not to let an over riding concern with checks and balances compromise the goals of reorganizing state government Bonds staff presented the committee of about 90 persons a draft of a proposed to re place one Bond vetoed last summer He said it called for appoint ment by the governor of 37 po compared with 90 now existing and 80 retained in the he vetoed Bond said he agreed with Senate leaders that anyone ap pointed by the governor should require Senate consent Where they disagree is over which division heads or com missions should be appointed by a department director rather than by the governor Reorganization of the execu tive branch into 14 major de was approved by voters in 1972 The con amendment said reorganization shall be accomplished by next July 1 Bond criticized the vetoed for retaining twoo many agencies that could be consoli dated and for retaining Senate consent for persons not appointed by the director or board that controls the depart ment The citizens committee en the recommendations of the Little Hoover Com mission which proposed a reorganization plan several years ago There is a wide range for compromise so long as the basic principles of tion are not lost as they were in the I vetoed last sum mer Bond said In an interview Bond said he would looking fpr legislative sponsors of the after a final draft is made The gives the depart ment director exclusive budget making and personnel authority The proposed abolishes the commission on higher edu cation and replaces it with a n i n coordinating board for higher education to be appointed with Senate con sent None of the members could be an educator or education administrator The board would appoint a commissioner of higher education An advisory board to the coor board would have representatives from the various colleges The gives the board au over new degree pro grams any new residence centers or state supported colleges establishment of admission transfer
