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Southern Illinoisan (Newspaper) - October 29, 1974, Carbondale, Illinois PUBLICATION OFFICI 710 N Illinois 1113 Walnut HerrNl 212 N 1Mb 82No 25415c Copy 4 SMtions 2 FrwPrw Hcrrln Bully Munmysbure TUESDAY OCTOBER 291974 010175 IH LIBRARY LS NEWSPAPERS BOX 789 DECATUR ILL 62525 it CerbondaleHerrinMurphysbort Sawhill ousted chief as energy Classic autumn scene A barn door frames this classic autumn of stacks of corn stalks and bare trees In the rolling farm country of Fairfax County V Progress reported in coal talks Washington AP President Ford announced to day a major shake up in the Federal Energy administration removing John Sawhill as ad ministrator and replacing him with former Asst Commerce Secretary Andrew E Gibson Ford made the disclosure during an impromptu White House press conference He also announced that former Air secretary and NASA of ficial Robert Seamans would become head of the new Energy Research and Development Agency and that former astronaut Bill Anders would head the new Nuclear Regulatory Agency Dixy Lee Ray now head of the Atomic Energy Commission will become assistant secretary of state for international en vironmental and scientific mat ters Ford said as the new ap pointees flanked him at the podium The President made clear that Sawhills resignation was desired by Interior Secretary Rogers C B Morton whom he named three weeks ago to coordinate the federal governments energy policies The President said there were no major policy differences1 with Sawhill although there were perhaps differences in approach and technique He said he decided that Morton ought to have a right with my approval to make changes in the ranks of federal energy officials and that Sawhill willbe offered a first class assignment1 elsewherein his administration John C Sawhill SawhiiTs abrupt ouster followed persistent rumors of his disfavor partly because of his outspoken urging of strong energy conservation measures These included an additional Id cent per gallon tax on gasoline An official said Sawhill had met with President Fordlast Friday but Sawhill himself said Monday that he had no serious discussions about resigning and no intention to resign Sawhill said Monday that he would stick to his position even if it cost his job Obviously Ive been somewhat controversial in my defense of and support for con servation and probably have gone further in conservation than others might think ap propriate Sawhill said But my feeling is thats the right thing to do And if there are others in the administration who feel that I cant really be effective in my job because Ive taken these positions then maybe I should leave This morning only 24 hours later Sawhill told his staff he was leaving After making the an nouncements at the beginnng of the news conference Ford said the shakeup places a new team in charge of the energy program which we will see moving ahead under Rogers Mortons stewardship As the news conference ended the White House released an exchange of letters between Saw hill and Ford Sawhills letter dated Oct 25 said the goals he had set for himself and the Federal Energy Administration when he took the post several months ago are complete and I feel that the time has come for me to move on to new responsibilities Ford in response expressed my deep personal thanks for your dedicated and capable service and added I have admired your candor and directness in addressing the difficult choices which face the nation as we confront the energy problem Washington AP Coal industry negotiators report major progress in con tract talks with the United Mine Workers and say a tentative settlement is possible by the end of the week Were hoping to make an agreement this week said Guy Farmer general counsel for the Bituminous Coal Operators As sociation Its moving and I think weve got shot at it Farmer joined UMW Presi dent Arnold Miller in saying that tentative agreement could be wrapped up quickly However Miller said last week thata contract would have to be agreed on by Nov 4 to avoid a strike The UMWs contract with the softcoal industry expires Nov 12 and union officials say ratification will take about 10 days Evenif the negotiators reach a tentative agreement the question remains whether the unions 120000 members will approve the first package sub mitted for ratification Anindication of progress iri the talks came Monday when the negotiations shifted for the first time to a general discussion of economic pro posals includingwages sick pay and pensions Since the talks began Sept 3 the negotiators have con centrated on such wprk rules and mine safety which the union says aremore important than money Sources closs to the talks said that while some odds and ends remain in these areas the basics are pretty well un derstood Ford Calls International companies New mine planned CLOUDYI Chicago CAP1 Inland Steel Co announced today plans to develop a major new coal mine in Southern Illinois A spokesman said Inland will lease mining rights of 40000 acres in Hamilton County and put the underground mine and processing plant into production in 1978 A work force of 500 persons with an annual payroll of million is expected to mine 25 million tons of coal by the peak capacity year of 1981 The site owned by Amax Coal Co of Indianapolis Ind con tains an estimated 100 million tons of recoverable coal of a lowsulfur metallurgical grade the spokesman said The new facility along with the Sesser mine 30 miles to the west will supply Inlands metallurgical coal needs in 1980 when the companys annual raw steel capacity will be 10 million tons Metallurgical coal is used in making coke for firing iron ore blast furnaces u Black Lung law Condition stable Nixon does well after leg surgery Chance of showers tonight becoming partly cloudy low in the lower 60s Partly cloudy and mild Wednesday with a chance of showers high 74 to 79 Considerable cloudiness Thursday through Saturday with chance of showers Above normal temperatures lows in the 40s and 50s highs in the 60s Index Washington AP The Supreme Court today upheld federal black lung regulations which coal mine operators challenged on grounds they cost billions of dollars and invite unlimited ubterfuges The regulations govern benefits for death or disability from pneumoconiosis or black lung a disease contracted by coal miners The court upheld without elaboration a decision by a threejudge federal panel that the regulations do not violate the mine operators constitutional property rights In its appeal to the Supreme Court the National Independent Coal Operators Association ob jected to a regulation requiring retroactive coverage of miners whose employment terminated before black lung legislation was enacted Under this interpretation the association said former employers of men who last worked in coal mines as long as 30 40 or more years ago remain liable for payment of benefits Long Beach Calif AP Former President Richard M Nixons surgeon said today that Mr Nixon is doing well following an operation to stop a blood clot in his left leg from traveling any further toward his heart or lungs Dr Eldon Hickman who performed the hourlong opera tion said Nixons condition was said Nixon return ed to his room at Memroail Hospital Medical Center of Long Beach for recovery Nixons personal physician had said the operation was re quired because the clots in Nix ons leg posed a threat to his life With the threat the clot could become a pulmonary embolus we placed a mild clip partially occluding bu t not completely occluding the vein Hickman said He said the clip was permanent He said the operation was uneventful and that the former president was recovering in the normal manner The doctor said he had the nsual postoperative effects of being sleepy and was confined to bed The operation began at am PDT None of Nixons family was present at the hospital but officials said his wifePat was expected later in the day Hickman said Nixon will pro be hospitalized for another week then the rSecovery would take four to six weeks at home said he did not anticipate any further surgery Dr John C Lungren Nixons personal phjysician said he had consulted with Nixons wife Pat and daughters Julie and Tricia by telephone Monday night Lungren was an observer at the surgery The decision to operate was made late Monday after a medical team determined the tests showed a worsening blood clot condition from the phlebitis Nixon suffers in his leg Nixons youngest daughter Julie Nixon Eisenhower said surgeons at Memorial Hospital Medical Center had wanted to operate Monday night but he was too weak Hes ex hausted Classified 1517 Comics TV Bridge Crossword 33 Editorials 4 Family living Records 11 Sports 1314 Youth 5 Escapees kidnap 3 BellevilleCAP All three of the persons were Two escapees from the Knox released unharmed County Jail in Vincennes Ind The sccapees Jackie Moore abducted three persons today 18 and Ray FJynn 27 were last commandeering cars inseen in the Belleville area after their flight across Illinois state releasing two young men from police said Olney HI programs sound Washington AP President Ford declared today that his present economic pro grams are sound and should deal with both inflation and recession but added I will be open to suggestions if they dont cure the current economic slump Holding his first impromptu news conference in the White House press center Ford was asked on a day the federal governments measure of leading economic indicators showed the sharpest onemonth plunge in 23 years if he still insisted the country was not in a recession Whether its a recession or not a recession Ford said we have problems The Presidents first ques tioner pointed to the plunge in leading indicators and asked if this and other economic data might prompt Ford to change the emphasis of his economic policies to fighting recession ra ther than focusing largely in in flation Ford responded that his economic blueprint unveiled earlier this month was finely tuned and was designed to deal with both those prob lems But he added that if new economic data came to light that would indicate a steeper economic setback than an ticipated I will be open to Rules may force gas price cuts New York Times News Service And Associated Press The Federal Energy Administration has published two regulations that could force some international oil com panies to reduce gasoline and oil prices temporarily by a cent or two a gallon The new rules were announced Monday by AFEA administrator John C Sawhil who said that some companies apparently have tried to dodge regulations and overcharge US consumers by manipulating transactions between their own affiliates SawhiEs abrupt resignation under pressure today was not expected to affect the two regulations Companies which have overcharged consumers for im ported oil will have to roll back product prices to repay the public he said Monday Since October 1973 under US price controls oil com panies could pass through the costs of foreign oil in their domestic product prices To dodge the controlsa foreign affiliate codd selloil at an in price substantially higher than it charged other purchasers to its own parent companys US affiliate The US affiliate then would reportthe inflated price as its costs justifying a higher domestic price for its product The foreign oil price would swell the parent companys profits circumventing US price con trols FEA also proposed a ru 1e d set individual ceiling prices for oil transfers on each interna tional company Under measure the company would be allowed to maintain its May 1973 profit margin on oil transfers plus 25 cents per barrel Two oil companies reported thirdquarter earnings Monday Union Oil Co of California reported a 58 per cent rise in capital spending over a year ago Murphy Oil Corp based in El Dorado Ark said its third quarter profits had slipped by 20 per cent The firm blamed declining sales margins in Europe competitive pressures in the US market and effects of depressed lumber prices on its operations in that field Meanwhile Saudi Arabia has told other Arab oil states it wants a symbolic cut in world petroleum prices but plans no unilateral action a Saudi official said today His disavowal of a unilateral cut in Saudi Arabis price of approximately per barrel contrasted with a report from Rabat Morocco in the New York Times The newspaper reported that an informed Arab source said the perbarrcl price of Saudi oil would be lowered next week Carbondale launches probe of 4year public works bids By John Trimble Of The Southern Klinoisan Carbondale has launched an investigation into all public works projects undertaken in the city during the lastfour yearstodetermine if fraudu lent bids were submitted by contractors Thecity council Monday night decided to have City Atty John Womick conduct the probe after tailing two bids forcity ance materials The bids were submitted by the Wilson Asphalt Co of Mar ion and E T Simonds Con struction Co of Carbondale Wilson bid and Simonds The council voted 3 to against a motion to accept Wilsons bid After the debate about the bids Councilman Clark Vine yard moved that the city in vestigate all bidding done on public works projects for the lastfour years He later said he included last four years so that Cedar Lake and southwest wastewater treatment plant projects would beincluded Simonds had no comment today about the councils ac A spokesman at the Wil son Asphalt Co said he has no comment and Stanley Wil son is in Springfield Simonds arid H H Sam Barter of Harrisburg were convicted Oct 15 of conspiring to fig bids ob road contracts in June 1971Barter owns the JD Barter Construction Co Frank Nutty Edwin Pautler and James Knotts were grant ed immunity from prosecution in the case and testified for the government Nutty is president of Frank Nutty Inc of Vienna ler is president of Pautler Bro thers Contractors Inc of Chester and Knott is of the Johnson County Asphalt Inc of Red Bud Nutty and Pautler won the contract to construct Cedar Lake Boyd said in an interview he had heard that Simonds owned an interest in the Wil son Asphalt Co but that he has not seen a list of owners of either company He ques tioned bids would actually be competitive if both companies were owned by the same person The council also questioned whether it would be possible to have completely competi tive bids on projects since many companies own interest in other companies The problem raised several questions and killed a street improvement project for Mprningside Owens Williams and Linden streets this year Councilman Hans Fischer questioned whether it is the citys place to punish a com pany by not accepting bids after the company has been convicted in court He said punishment is the courts re sponsibilityFischef and coun cilwoman Helen Westberg vot ed to accept Wilsons bid The question of where the city would get street improve ment materials also was rais ed If a company owns inter est in most of the quarries and asphalting companies the city would have to go all the way to Indiana or Carlyle to get the material In his investigation Womick saidhe woula try to obtain the results of probes made by the state and federal gov ernments in preparation for the case against Simonds and others He will ask the Jackson County states attorney and the USAttorney in East St Louis and Springfield for the information They do not have to turn the material over to the city he said and the city cannot subpoena it If he cannot get all the in formation he may at least find out if there is reason enough to call a grand jury to investigate past bids The city would file a civil action for damages if any company were found to have rigged bids he said Womick expects it will be at least 60 to 90 days before he will have any information to submit to the council It is logical to think there could have been bidrigging in the city as well as the state Womick said The problemled to a propo sal that all contractors must disclose ownership when sub mitting bids to the city
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