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Star-News (Newspaper) - January 16, 1975, Pasadena, California WEATHER TODAY Cmifete Wwtker. Late Sports PASADfNA, THUHSOAY, JANUARY 16, 10 Cents Quake Rumor Denied By DAVE SWAM Staff Writer Earthquake predicted for Feb. 16? Forget it. The rumor, like most .rumors, is, in the words of Dr. Clarence Allen of Caltech, one of the world's foremost authorities on earthquakes, "a gross distortion." An anonymous caller had told the Star-News there was a rumor on the Caltech campus that a' "seismologist" on the Caltech staff had predicted there would be a major quake in Southern Califor- nia on Feb. 16. Dr. Allen was reached by phone in Denver, Coto., where he had flown Tues- day on Caltech business. "When I left the campus last Allen said, "there was no such rumor, 'in or out of the seismological laboratory. "Categorically, I can say that no responsible member of the seismology staff has made any such prediction. "We have been actively engaged in earthquake prediction research for some time now, but a prediction of-that type for a specific day that far ahead is just not now possible." Allen said that another Caltech seismologist, Dr. James Whitcomb, has been studying some seismic "anomalies" in Southern California, bat that Whit- comb has not made this or any other specific predic- tion. Whitcomb was out of town Wednesday. 2 House Chairmen Deposed Sttr-News Nattoiul Bertau WASHINGTON Two powerful House committee chairmen were dethroned Wednesday by the House Democratic Policy and Steering Committee in a stunning blow to the seniority system. The action paved the way for dumping two more chairmen who will be fighting for their survival today or Friday in the House Democratic caucus. The 24-member Policy and Steering Committee, which took over committee assignment duties last month from the Democratic members of the House Ways and Means Committee, ousted House administration chairman Wayne Hays of Ohio and House banking and currency chairman Wright Patman of Texas by refus- ing to nominate them for reassignment. Two chairmen who won renomination House armed services chairman F. Edward Herbert of Louisiana and House agricultural chairman W.R. Poage of Texas will face stiff challenges when the' House Democratic caucus meets to approve the nominations. DEAN SAYS NIXON HAS MORE TO TELL Former White House Counsel John Dean III tells newsmen in Los Angeles Wednesday that only former president Richard M. Nixon has the answers to some Watergate questions Next to him is his wife Maureen. Nixon Foreign Policy OK: Dean Former White House counsel. John W. Dean m said Wednesday that despite Watergate, he believes Richard M. Nixon will be remembered as a good president The former presidential confidant said he would like to meet with Nixon, who fired him in April 197J. Dean, who was the chief accuser in the Watergate investigation, said Nixon's accomplishments as president, particularly in foreign affairs, had the "stroke of greatness." He added, "I think with time much of the Nixon years which are now being cast in terms of what scandal ciured and why, will end and all this will start to roll back and then we'll be able to look at some of the good thincs that happened. "Every man is capable of good and evil and it's time we also look at the good Mr. Nixon did." Dean said, however, he hopes Nixon will end his sUence and answer the "unanswered questions" of Watergate Dean was released from federal prison at Holabird Md. tost week after serving four months for his role in the Watergate cover-up. think Mr. Nixon obviously can fill in some gaps and hopefully he he told newsmen at a press conference he called in front of his fashionable hilltop home in Trousdale Estates. Six-County Gas Tax Plan Aired By STEVE HEMMERICK Staff Writer An additional tax, up to 10 cents, on every gallon of gasoline sold in Los Angeles and five surrounding coun- ties was recommended Wednesday by the Southern California Association of Governments (SCAG) in its preliminary 1975 transportation plan Tad Widby, SCAG's assistant director of transporta- tion planning, said SCAG decided on its recommendation a few days before President Ford publically requested tariffs on foreign oil and additional taxes on domestic oil But Widby said this did not rule out SCAG recommending the additional gasoline tax for 1976 The tax he estimated would raise from to million an- nually to be used to improve public transportation in the Southern California area. At the same time, he said the tax would reduce the number of miles driven about five per cent. Orange Coun- Diedrich, who participated in SCAG s special briefing for the press said, "There are two thrusts to this program to get people off the freeways and to raise funds." Following public hearings, SCAG directors will decide by April whether to adopt the plan Other proposals in the preliminary plan were: demanding tolls on freeways or eas rationing. B -Imposing additional registration fees on heavier cars or those that gobble gasoline. -Make it a policy to increase the use of public transit by 3 to 6 per cent. -Increase the number of buses in public transit over Continued on Page A4 'Slasher9 Strikes Again CIA Admits Files On U.S. Citizens WASHINGTON (AP) The Central Intelligence Agency acknowledged for the first time Wednesday that its agents infiltrated dissident groups inside the United States and es- tablished files on about 000 U.S. citizens. But Director William E. Colby told senators he flat- ly denies "the press allega- tion that CIA engaged hi a 'massive illegal domestic intelligence operation.' "Whether we strayed over the edge- of our authority on a few oc- casions over the past 27 years is a question for those .authorized to investigate those matters to Colby said. The Senate Appropriations subcom- mittee on intelligence operations cross-examined Colby and former CIA Director Richard Helms for more than three hours in a closed-door session. It then recommended un- animously the immediate start of a full and in-depth probe of all allegations against the spy agency. In a 45-page statement made available to the press, Colby said he firmly believes all current CIA ac- tivities are within legal limits. In the past, he said, the CIA in two separate programs placed agents into radical or dissident groups inside the United States to protect its own facilities and to further its intelligence and counter- intelligence activities abroad. Colby said that, in order to establish the credentials of spies it intended to send overseas, it "recruited or inserted" about 12 persons into "American dissident circles." He also said that, beginn- ing in 1967, the CIA inserted 10 agents into dis- sident groups working in- side' Washington, D.C., because it believed that step was necessary to protect CIA facilities and information. Ford Outlines Recovery Plan Taxes President's Proposed Income Tax Reductions -1974 Tan H-1375Tai Reduction ADIUSTED GROSS H INCOMES Congress Is Sobered By Ford's 'Bad News9 ByALELSELE Star-News National Bureau WASHINGTON President Ford told make his former congressional 'colleagues Wednesday that he didn't expect much applause for the "bad news" in his first State of The Union message, and they took him at his word. _ our worse." double-digit. inflation even The body of a man with his throat slashed, was found late Wednesday night in an apartment-hotei near the downtown Los Altadenan, 28, Said Slain An Altadena man was shot and killed at about p.m. Wednesday as he was leaving his wife's apartment in Los Angeles, police said. The victim, identified by City News Service as Aron Carroll, 28, was dead at the scene. Detectives said Carroll was separated from his 26-year-old wife, Bobrac, the news service said. The assailant allegedly struck Carroll with the butt of the gun and shot him at least once in the head as he left the apartment on East 25th Street, police reportedly told the news service. The Star-News was un- able to obtain any details from detectives. IN TODAY'S PAPER Bridge Classified Comics Crossword Deaths A6 Theatres C5 Finance......... C6- C8 D3-D6 Horoscope...........C5 C5 People ...........B1-B3 B5 Sports............C1-C4 pis Television ...........B5 ........84 Phones: Pasadena area 796-0311. East Valley 445-2434 Los Angeles 681-4871. For delivery of a missed paper: Call from 5 p.m to 7 p.m. Monday through Friday; 7 a.m. Monday through Saturday; 7 a.m. Sunday. After hours news call only: 681-4875; sports: 681-4873. Angeles area, and police are investigating the possibility the crime may have been committed by the so called "slahser." Identification of the vic- tim was being withheld pending notification of next of kin. Investigators said the body was discovered on the top floor of the building at 692 S. Valencia St., at p.m. by a friend of the dead man identified as Charles Fielding. Fielding told officers that he had not seen the victim hi several days and became concerned. He found the victim's door ajar, and saw the man on the floor. His throat had been cut and a knife was reportedly Implanted in bis side. The bodies of five men, all with their 'throats slashed, have been found in the downtown area since December; Investigators believe they were all killed by the same man, the "slasher." Wholesale Prices Go Down WASHINGTON (AP) Wholesale prices plunged sharply in December, marking the first decline in U months, the Labor Department reported Wednesday. The government's Wholesale Price Index fell five-tenths of a per cent as declining farm and food prices more than offset a slight increase in industrial commodities. Despite last month's drop, wholesale prices for all of 1974 soared 20.9 per cent, the most in any year Continued on Page A2 Simon Shaky WASHINGTON (AP) Treasury Secretary William E. Simon is "evaluating" his position within the Ford adminis- tration, but has not been asked by President Ford to resign, a close aide said Wednesday. Even Rep. John Rhodes, R-Ariz., Ford's close friend who succeeded him as House minority leader, conceded that Congress .may disagree with the details of Ford's programs and "should reserve the right" to change it as it sees fit. Rep John Anderson, R-I11., chairman of the House GOP Conference, applauded Ford for being "willing to tell it like it is" and pointed out that Ford appears willing to "work in a cooperative manner with Congress." Sen. John Tunney, D-Calif., said he was pleased that Ford "at last focused in" on the problems of recession and those of energy. abandoning his fight against inflation, In other positive Los Angeles which ho ravmtiu lahoioH County Supervisor Pete Schabarum said Initial reaction to Ford's message was generally as grim as the message itself with Democrats and Republicans alike ex- pressing skepticism and criticism about many of his proposals to deal with the nation's economic and energy problems. Although Ford received sustained applause at the beginning and end of his 43-minute speech from the packed House chamber where he served for 25 years, most members found little to cheer about in his bluntly-worded address. Many members said Ford appears to be lhanHnnino hie fiokt. at iuo ugiiv agauiav which he recently labeled "Public Enemy No. and predicted that his energy conservation proposals will only bring higher gasoline and oil prices and fail to discourage consumption. he was "impressed with what appear to be the positive directions" that President Ford was taking with regard to the federal economy and energy problems. Predictably, Vice President Nelson Rockefeller praised Ford for. showing 'tremendous courage and strong Sen. Alan Cranston, D. Calif, charged that President Ford has see'mingly aban- doned the fight against inflation and is try- leadership" and said he had presented ing to use inflation to fight recession. "bold imaginative program that makes it possible to turn the problems into oppor- tunities for the future." Sen. Russell Long, D-La., chairman of the Senate Finance Committee said Ford's tax cut proposals are too generous to the rich and he expressed doubt that Ford's energy proposals will conserve fuel. Long also said the President was "poor- ly advised" in deciding against any new federal spending programs this year ex- cept for energy, adding, "I doubt his re- quest to limit the increases under' Social Security will receive any more votes than it did applause." Rep. Al Ullman, DOre., chairman of the House Ways and Means Committee, said Sen. Barry Goldwater, R-Ariz., a leading spokesman for the Republican party's conservative wing, said Ford's call for billion in tax cuts over the next year "are not going to save the but onty increase inflation. Sen. James Buckley, a New York Independent, called Ford's proposed tax cut "ruinous" and predicted that "it will rack up massive deficits that in turn will lead to borrowing by the government that will sop up capital in the private capital markets and thus feed inflation." Sen. Robert Byrd, D-W.Va., the assis- tant majority leader of the Senate, called Ford's economic proposals a "surrender to inflation" and said that the huge budget deficits Ford envisions "are bound to his committee would give top priority to Ford's tax cut proposals and then examine the energy measures rather than consider the two proposals together as Ford wants. Poses Big Tax Slash WASHINGTON (AP) President Ford submitted to Congress on Wednesday the bleakest State of the Union message in decades, formally urging massive tax cuts, a red-ink budget and higher fuel costs to overcome recension and energy shortages. "The state of the union is not good I've got bad Ford told a nationally broadcast joint session of Congress. "Millions of Americans are out of work. Recession and inflation are eroding the money of milliong more. Prices are too high and sales are too slow." He called for a "new partnership" with the Democratic Congress as he outlined details of the recovery plan he had sketched in a broadcast address Monday night. Elements The major elements of Ford's plan: one-shot tax cut for individuals totaling billion and a longer term tax reduction of billion. The one-time tax cut of 12 per cent would be based on last year's taxes and would be accomplished through rebates of up to to individual lax- payers. The long-term tax reduc- tips would be carried out during 1975 through reduc- ed withholding, with the largest cuts going to low- income individuals -A quick billion tax break for industry by rais- ing the investment tax credit to 12 per cent. This would be coupled with a billion per year cut in the corporate tax rate. broad-ranging series of taxes and levies on oil and natural gas intended to increase prices and thus reduce consumption. The billion in revenues rais- ed would be channeled back into the economy, mainly through the tax cuts. federal budget that will contain a deficit of about billion this year and more than billion for next year, sending the national debt above billion. Shift Emphasis "The emphasis of our economic efforts must now shift from inflation to Ford said in his first State of the Union message. The Republican president said he wanted to speak bluntly to the predominantly Democratic Congress: "The American people want action and it will take both the Congress and the President to give them what they want." "Progress and solutions can be he added. "And they will be achieved." All of his economic steps except the decontrol of crude oil prices would re- Continued on Page A3 Alhambra Adjusts to Unemployment By LAURINDA KEYS ____., By LAURINDA KEYS Staff Writer As unemployment has worsened, the crowds at the unemployment insurance claim lines have gotten bigger and the paperwork in the state employment offices has piled higher, but the employes of the Employment Development Department office in Alhambra have gotten more efficient. Usually open from 8 a.m. to 5 p.m., since more people out of work have been visiting the office at 1412 S. Garfield Ave., office manager f red Olsen has extended the hours to 7 a.m. to 6 p.m. He has increased his 30-person permanent staff by 20 on-call workers, who have been call- ed every day to handle the workload. He has removed four bulletin boards listing available jobs throughout the county "to make room for the live people to get into the office." At times the lines have been so long they have curved around the corner of the building and even back into the office's work area, usually reserved for private interviews. The Alhambra office is the smallest one as far as space in the county, Olsen said, but he teeis his employes have risen to the occasion and are working hard. There's a worker at every claim window, which is not always the case during normal times, mail work claims are falling two days behind rather than the normal one day, and the office workers are walking around at a faster pace, with even Olsen himself sitting down at a claim window to help on a particularly busy Olsen said the claims for his office hit record highs for November and December and will hit a record high for January, also. He has reorganized the office files, ordered 10 new desks, and is ready to move more people to different jobs if the unemployment rates rises any higher. Past patterns for the Alhambra office show that the unemployment rate may do just that. Olsen said December to March is the period of the year when most claims are filed. He said the low point usually is the summer, "but that low never came last year." Olsen said most of his employes will provide information on other agencies which can help claimants with problems such as disability in- surance and welfare applications. But he explained that his office is given a time budget by the state, which gets the budget from the federal government, assigning the specific number of minutes required to do cer- tain tasks. "If we spend too much time doing things that are not our primary Olsen said, "it's like a football player assigned to a certain part of the field. If he decides to go help the safety in the backfield, then he leaves his area un- protected." Continued on Page AS
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