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Southern Illinoisan (Newspaper) - February 28, 1974, Carbondale, Illinois PUBLICATION OPPICI Carbondale Murphysboro Herrln 710 N Illinois 1111 Walnut 212 N 1Mb Volumt 82Ne SOlOe a Copy Two SMtions uthern 010175 IN LI3SAHY KEWSPAFSSS BOX 739 ILL 62525 oisan MccnurtgCirbondili fm fna Htrrln Billy Joiimil THURSDAY FEBRUARY 28 1974 CvbMdaltHerrlnMurphysborv V J Orescanin quits No 2 SIU job spending error noted By Dave Butler Of The Southern Ulinoisan Danilo Orescandn 42 the No 2 man at Southern Illinois Uni versity at Carbondale has re signed his administrative duties apparently over alleged irregu larities in the expenditure of of public funds Orescanin has held the titles of executive vice president vice president for administration and campus treasurer SIUC President David R Derge said this morning that he has approved a change of assignment for Orescanin to a teaching position in the SIUC School of Business as a profes sor of administrative sciences The alleged irregularities were brought to Derges atten tion on Saturday by Orescanin the president said He said Orescanin was tin first person to bring the ir regularities to his attention Derge also said he is convinc ed there was no wrong intent involved but rather an error in judgment In order to clarify the situa tion the account will be audited Derge said The account the presidents official functions account is used for entertaining and other functions Derge said He in dicated in a prepared statement that the charged to one restricted account not involving stateappropriated money probably should have been paid from an entirely different ac count in the SIU Foundation At a press conference today SIU Board of Trustees chairman Ivan A Elliott Jr of Carmi said Derge believes the funds did not go into anybodys pocket but were used for university functions Elliott said he was advised of the irregularities by Derge on Monday Both Derge and Elliott confirmed that Orescanin offered his resignation and then asked for reassignment They said he was not asked to resign Derge asked everyone to re serve judgment He added it is important that we get all of the facts Asked how serious he thinks the action is Derge said Or escanin thought it was serious enough The seriousness de pends on what comes from the audit The audit to be conducted by Clifford Burger financial of ficer for the board staff will be completed in a week to 10 days Elliott said He added that it would bs speculation to draw conclus ions beyond the facts we have Elliott also warned dont make accusations which might be slanderous or libelous In an effort to make sure no other irregularities exist several accounts previously handled by Orescanin will be audited Elliott said Derge also said he plans to have a number of accounts audited Elliott and Derge both declin ed to identify exactly how the money was used They said they will reveal the results of the audit at a later press confer ence The money comes from pri vate gifts and from interest paid to the university on bank de posits Although the money did not come from tax dollars it became public money when it was put in the universitys ac count Derge did not name anyone to replace Orescanin as execu tive vice president or the No 2 man at SIUC He said Dale Knight the campus controller will temporarily assume Ores canins duties as vice president for administration and campus treasurer In the teaching position Ores canin will take about a cut in his yearly salary Derge said he was not sure of the exact amount of the cut Orescanin did not attend the press conference In Derges statement a por tion of Oreseanins letter of resi gnation was released Orescanin says in it he requested the change for personal reasons Orescanin was appointed exe cutive assistant to Derge on Feb 181972 by the SIU board at an annual salary of He had bteen Derges assis tant at fcdiana University Bloomington Ind when Derge was executive vice president there and Derge recommended him for the SIUC position On June 16 1972 Orescanin was promoted to vice president for administration and campus treasurer with a raise to A year later on June 7 1973 the SIU board named Orescan in to be executive vice president of SIUC in addition to his other duties making him the No 2 man on campus He got another raise at that trait On July 1 1973 Orescanin was named president of the Car bondale Business and Industrial Development Association an or ganization dedicated to bringing new business and industry to the city Danilo OrKcanin Nixon will veto energy pac Washington AP President Nixon said today he will veto the emergency energy legislation which passed Con gress Wednesday Nixon said the bill with its provision for rolling back crude oil prices will result in longer gas lines and would lead to compulsory rationing And that were not going to have The action had been expected and was announced by the President in a speech to a Young Republican group in Washington The House sent the bill to the White House Wednesday but thei He soys if would lead to rationingand that were not going to have House Republican leaders predicted the stand expected although veto Sen would Henry M Jackson DWash said he was confident the Senate would vote to override A two thirds majority in both houses is overturn a 258to151 margin of veto passage was short of the two Presidential veto thirds majority needed to overj The bills most controversial ride a presidential veto provision is an oil price Rep Kenneth J Gray DWest rollback This would reduce the price of gasoline at the pump by up to four cents a gallon and cut soaring propane prices in half Frankfort was one of eight De mocrat Congressmen from H linois who voted for the emer gency energy bill according to figures produced by the House Commerce Com mittee The bill would give Nixon the power toorder mandatory gasoline rationing step he now says there is better than an even chance of avoiding Wednesdays passage capped a day of parliamentary maneuvering in which the House reversed its Rules Committee and voted down a parliamentary rule that would have left the measure open to procedural challenge by any member of the House The House voted instead to adopt a rule requiring roll call votes on some of the bills more controversial provisions in cluding the price rollback and rationing authority A motion to strike the ration ing authority from the bill failed by only 12 votes while a similar motion against the rollback provision went down 173 to 238 The rollback would fix the price of all oil produced inthe US perbarrel witha ceiling of barrel beyond which the price could not rise Roughly three quarters of domestic crude oil already sells at the level under Phase 4 price controls The remaining one quarter has been freed from controls in an effort to stimulate production and is selling at approximately barrel Agricultural budget Walker promises more aid for fairs Springfield AP Gov Daniel Walker called to day for approval of an agriculture department budget next year which would boost aid to county fairs and tighten state inspection of grain elevator operations In the fourth of a series of budget announcements Walker also said he is backing a com munity development budget proposal which would encourage local governments to save money by joining with other communities and buying material in bulk The governor detailed budget requests of million a million increase for tile departments of agriculture local government affairs in surance and business and economic development Wednesday Walker disclosed his mental health budget request which he said would continue to emphasize the care of mental health patients in community mentarhealth facilities without forcing property owners to in crease taxes Walkers proposed agriculture budget is 78 million or million more than the departments current ap propriation It would include more for rehabilita tion of county fairs and a similar amount for county fair premiums Assistance to farmers combating fuel shortage Intensive audits increased inspections of warehouses in and grain Britonstoday elect new government Service station lines shorter though No major fuel relief seen midyear Cross of ashes A pupil at Christ the King Catholic School Kansas City had a cross of ashes marked on her forehead Wednesday to mark the beginning of the Lenten season The children were told that the ashes sym boliie the mortality of their AP Wirephoto London AP Britons voted for a new government today as snow fell in several parts of the country and the sun shone in southeast England Some cities reported long lines at the polling booths and there were indications of a massive turnout usually a good sign for the Laborites Polls still gave The Washington AP i Sawhill noted that it was only Federal Energy Office this month that FEO began predicts the gasoline shortage will be as tight at midyear as it is now but service station lines should be shorter John C Sawhill deputy ad ministrator of the FEO told senators Wednesday he expects the shortage to become more evenly distributed across the country trying to get statebystate compilations of gasoline supplies and to reallocate gasoline from welloff states to harderhit ones The FEO official also an nounced rules changes aimed at giving oil incentives oil companies to import greater crude Generally fair and a little colder tonight with lows in the 80s Considerable sunshine Friday with highs near 60 INDEX Classified 1720 Comics TV Bridge Crossword 21 Editorials 4 Family living 67 20 Sports 1315 Weather details map 20 The regulation FEO is taking steps to change says refiners who have more crude oil than the national average have to share it with those who have less Sawhill said this has produced lower incentives for importers and refiners Sawhill said that if the Arab oil embargo continues the gasoline shortage in the next quarter will be about the same as the current 15 to 20 per cent If Arab oil starts flowing again the US shortage within 90 days would be reduced to 4 to 8 per cent he added Meanwhile there were these other energy developments Eight of Californias 58 counties have indicated they will start an oddeven system of gasoline rationing at midnight tonight under a mandatory plan authorized by Gov Ronald I Reagan The rationing plan is optional by county A leader of independent truckers in Connecticut said they would join a nationwide shutdown May 13 The truckers are seeking an audit of oil com pany supplies and profits a rollback in the price of highway and bulk heating fuels increas ed speed abolition of the federal highway use tax on trucks and a nationally uniform law governing truck d i m e n sions and setting gross weight at 80000 pounds Drivers who deliver gasoline and liquid petroleum San Francisco People again gather to get food handout the Conservatives a slight edge however neighboring Irish republic while the minority Catholics seek union Rioters hijacked trucks and cars in Londonderry and set up barricades today in the streets In Belfast troops fired rubber bullets to disperse stonethrow ing crowds Earlier at least six persons were wounded in terrorist bom bing and shooting in the pro vince Lastminute opinion polls gave In England the election is be1 Prime Minister Edward Heaths ing fought largely over bread1 Conservatives a narrow lead products to some tions in Utah service Idaho sta and southeastern Washington struck Wednesday in contract disputes with the American Oil Co and the Husky Oil Co Drivers picketed the Amoco and Husky refineries in the Salt Lake City area San Francisco there were no reports of People eager for free groceries began to gather at distribution centers early today to receive the food of the sort that marred the first day of the program demanded by Miss Hearsts terrorist captors as a precondi demanded by the kidnapers to negotiating her Patricia Small clusters gathered at the People Need food banks under gray skies and in some areas rain A storm 20000 and 24000 persons were expected to receive food at 10 sites in the San Francisco Bay Area said A forecast and organizers said the weather might reduce Kramer Washingtons secretary of state who organiz number of people turning the program for the Hearsts An hour before the Hearst was abducted noon CDT start of the 4 andbutter issues and observers say that no matter who wins Britons face another round of belttightening In Northern Ireland the elec tion for members to Parliament is being fought over the determination of the Protestant over Harold Wilsons Laborites The Liberals headed by Jeremy Thorpe were running three times better than they did before the last election in 1970 But four out of five of the main polls predicted a Labor victory then and the Conservatives majority to stay apart from the1 won Formal relations US to resume ties with Egypt Cairo AP The two ambassadors have The United States and Egypt been in place since Secretary of agreed to formally resume Contributions to Nixon fund aglCCU IAJ luiiwaiij Kiwbw diplomatic relations today for Egypts President Anwar Sadat agreed in principle to restore may be from corporate funds ijj i j tiio rnntrihnfinn if Knells out for implemented a pl San Antonio AP A milk cooperative lawyer says a Nixon campaign contribution in 1969 illlegally came from corporate funds The money previously had been described as an intended payoff for sympathetic understanding of the dairy industry pro blems E C Heininger the chief an titrust lawyer for Associated Milk Producers Inc says AM PI made an illegal con tribution to the Committee to reelect the President A Jan 21 1974 letter from Heininger to lawyer Kenneth Parkinson of Washington DC discloses an intricate series of transactions about the con tribution which predated President Nixons controversial decision in 1972 to increase milk price supports The fourpage singlespaced letter was introduced into evidence Wednesday in a deposition of Dr George Mehre general manager of the 40000 m ember coop Mehren is testifying in depositions for the Justice Department and AMPI com petitors who filed antitrust suits against AMPI in 1971 and 1972 AMPI is the nations largest milk coop In recent testimony in a civil suit brought by consumer ad vocate Ralph Nader against Secretary of Agriculture Earl Butz lawyer Jake Jacobsen of Austin Tex said the went to Nixon fundraiser Herbert K a 1 m b a c h via Jacobsens partner Milton Semere Jacobsen said Semere told him that he had talked to John Mitchell to find out how to get a more sympathetic understan ding of the dairy industry pro blems within this administra tion and then Mr Mitchell had suggested he talk to Kalmbach Eventually Kalmbach said he ought to make a contribution and he did make a contribu tion Jacobson was indicted one week ago by a federal grand jury in Washington The indict ment charged he lied about the contribution in an appearance before a grand jury probing possible links with the milk price supports decision The Mitchell reference was to former Atty Gen John N Mitchell Jacobsens testimony raised questions about the source of the Although Heiningers letter does not allude to Jacobsens testimony about sympathetic understanding nor offer any other purpose of the contribution it spells out for the first time the source and connects links in a milk money toNixon chain Heiningers letter seeks to recoup the from the Committee to Reelect which Heininger says has taken the ethical position that it does not wish to retain any contributions made in violation of law The letter descrbes how the originally was charged to the bank account of AMPIs political arm Then AMPI determined the contribution to be illegal under existing federal statutes in 1969 if it was reported as such However the money had already been delivered said Heininger Harold S Nelson then general manager of MPI and Robert 0 Isham controller implemented a plan to avoid the pro blem said Heininger According to Heininger the implemented plan converted the illegal money from the political arm Trust for Agricultural Political Education TAPE to a contribution out of corporate funds which was also illegal Federal law prohibits political contributions from corpora tions Heininger said Mehren who succeeded Nelson in 1972 was riot involved in the transactions and the AMPI board of directors was not informed about them When Heininger surrendered the letter to the government at Wednesdays deposition session he indicated the so far had not been returned by Committee to Reelect the first time since 1967 In addition to a general upgrading of contracts the move means the Spanish Em bassy in Cairo will no longer house the American diplomatic delegation to Egypt headed by Ambassador Hermann Eilts Similarly an Egyptian delega tion headed by Ambassador Ashraf Ghorbal will move into facilities of its own in Washington where it has been working flag under the Indian Teachers unions end talks Washington AP Merger talks between the na tions two major teachers unions the National Education have Association and the American Federation of Teachers been broken off an spokesman said State Henry A Kissinger and diplomatic relations in November Relations had been severed since the sixday Middle East war of June 1967 when Egypt broke them off because of the American role in favor of Israel Kissinger returned to Cairo today for talks with Sadat at a rest house overlooking the Great Pyramids The Egyptian leader greeted him warmly with a traditional Arab embrace and suggested they both pose for photographs with the pyramids as a backdrop before their discussions began Kissinger and Sadat were concentrating on the next stage of an Israeli troop withdrawal in the occupied Sinai Desert and continuation of the United Na tions buffer role between Egyp tian and Israeli forces there The United Nations mandate expires April 24 Also high on their agenda were Kissingers mediation proposals for SyrianIsraeli NEA troop disengagement on the oc I cupied Golan Heights C
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