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Cedar Rapids Gazette (Newspaper) - February 4, 1974, Cedar Rapids, Iowa Weather- Cloudy tonight umi Tuesday with a chance of snow. Lows tonight the locus, highs Tuesday in (he 2fls. VOUJMK 92-NUMBER 20 CJTY FINAL 10 CENTS CKDAR RAPIDS, IOWA, MONDAY, FEBRUARY 4, 1974 ASSOCIATED PRESS, UPI, NEW YORK TIMES WASHINGTON ury Secretary Shultz urged congress, Monday to heavily tax windfall petroleum profits an lo slash tax breaks available fo U.S. oil firms operating abroad. Although some senate Demo crats advocate rolling back th price of domestic crude oil Shultz told the house ways am means committee that prio rollbacks are not a reasonable alternative to the windfall prof its tax. Would Expire The windfall levy recommend ed by Shultz would be a tempo rary tax on crude oil prices. I would expire after five years. I would apply at rates graduated up to 85 percent. It would fade away by taking lesser bites as time goes on. In remarks prepared for the opening of hearings on oil tax proposals, Shultz said the wind- fall profits levy is designed "to tax very heavily windfall profits to owners of oil to avoid in- terference with the legitimate profit expectations which will be required to meet our de- mands and make us indepen- dent, and to avoid any tax- generated price increases to consumers." Shultz had estimated earlier that (he windfall profits meas- ure could hring in between hillion and billion in the first year. Shultz also proposed eliminat- ing the 22 percent depletion al- lowance for foreign production. He said there is "no longer any policy support for giving special encouragement to oil and ga exploration' and production abroad." Tax Credits Another major move calls for revamping the system allowing credit against U.S. income taxes for taxes paid abroad by oil (Continued Page 3, Col. 6) NEW YORK stock market, burdened by what brok- ers described as negative news on several fronts, fell steeply Monday in moderate trading. The Dow Jones average of 30 industrials had dropped 19.86 to 82108 by 2 p.m. 'Considering' Request for More Tapes WASHINGTON (AP) The White House said Monday it was still considering Watergate Spe- cial Prosecutor Jaworski's request for more tapes and doc- uments. At the same time, President Nixon's lawyers launched a new attack on the credibility of his chief Watergate accuser, John Dean. The two developments oc- curred a day after Jaworski said in an interview that he ex- pected a decision Monday on his efforts to gain access to more White House material. Jaworski also said his prose- :utors have no evidence that Dean lied. Answer "Soon" D.cputy Press Secretary Gerald Warren said he had been authorized by chief White Hpus Watergate lawyer James D. St ir to disclose that "new, ad ditional requests and somi sending requests have been made by the office of the spe cial prosecutor which the White rlouse counsel's office has undei consideration." "This matter will be dis cussed in confidential con versations and communi cations" between the two office! 'very Warren added. Nixon declared in his State o :he Union address Wednesdaj night that he already had pro vided Jaworski with "all th material he needs to concludi lis investigations and to pro ceed to prosecute the guilty anc clear the innocent." Asked Monday whether Nixon stood by that assertion, Warren said "I would not de- tract or take away" from President's statement. Attacks Dean When reporters persisted anc isked whether that meant Ja- voski's request for more mate ial would be rejected, Warren aid "I will not be able to an- ;wer that because it is under consideration." The White House distributed a wo-paragraph statement by St }lair chastizing Jaworski and lis staff for supporting Dean's "I can say categorically hat the tapes and other evi- lence furnished to the special irosecutor at least as far as he President is concerned do lot support sworn statements 'efore the senate select Water- ;ate committee made by Mr. )ean as to what the President new about Watergate, and specially when he knew St. Clair said. "The evidence does support 'hat the President has said on (Continued Page 3, Col. 7) Indictment or Nothing Pol ice, Judge Says WASHINGTON (AP) Pres- ident Nixon sent his bil- lion budget to Capitol Hill Mon- day, terming it anti-inflationary and anti-recessionary. In cabinet room ceremonies where he signed the document, Nixon said the cooperation of congress is needed because ex- ceeding his proposed spending limits would have an infla- tionary impact. As submitted, he said the budget would "not add to the Fires of inflation." He added that it is an anti-recessionary budget in that it is flexible enough lo be shifted to cope with economic conditions. He had words of praise for the several dozen budget officials who surrounded him during the signing ceremony, saying they lad made "sound, sensible and responsible" decisions in setting spending priorities. Focus on Jobs Unlike his hard-nosed budget of a year ago in which dozens.of irograms were targets for ex- .inction or cutbacks, he fastened lis attention on the danger of a Gromyko Arrives Wirephoio Secretary of State Kissinger delivers remarks to newsmen Sunday at Andrews Air Force Base after meeting Soviet Foreign Minister Andrei Gromyko At left is Soviet Ambassador Anatoly Do- brynin. By Roland Krekclcr Linn District Judge William Eads told the grand jury Mon- day it has no authority to make general recommendations con- cerning the Cedar Rapids police department or to censure the department or certain members. The direction given lo the grand jury in written special in- structions is seen as an indica- tion that when the grand jury has complclcd its investigation, either indictments will be turned or no action will be taken. The judge also commented on the statute under which County Ally. William Fachcs investigat- ed the deportment, resulting in a report which told about indict- able offenses, bill, resulted in Ilic filing of no charges. Tim jwTRe said that slnlule Torino's Chuckle The country 1ms grown so tense nnd nervous, II's been yours since you've seen liny- body lo sleep in church. does not authorize a general ex- ploratory investigation, no mat- ter how laudable the goals or how commendable and fruitful the results. The county atlorncy has de- fended his failure to bring charges by saying he had to grant immunity informally to officers lo uncover serious con- stilulionn! violations, such as broakins while seeking evi dcncc. The judge said the transcript of the county attorney's pro- ceed i n g s contains testimony which, if true, "would shock any citizen of Cedar Hapids who has even the most minimal and cas- ual concern for equality of treatment of all citizens by low enforcement officials and for the preservation of constitu- lional rights and for effective law enforcement." it still had not been made known Monday whether the grand jury would have access lo the county attorney's trims- script Knches did Indicate Friday he would "fully advise" the grand jury about hl.i investigation. The county attorney Monday (Continued PIIRO .'I, Col. 0) Visit Seen As Mid-East Peace Move WASHINGTON (AP) Tin Soviet Union was the silent and iractically invisible p a r t n e i when Secretary of State Kis linger worked out a troop disen gagement between Israel and Egypt. But the visit Monday of Sovie Foreign Minister Andrei Gromy ko is likely to signal a change in that position. Kissinger and President Nixon will urge in talks at the state department and White House that the Russians try to swing Syria into a more accommodating mood so that negotiations with Israel can begin. Gromyko, here for the first iroad Soviet-American talks in nearly eight months, may be a means to that end. Beyond that, the visit presents in opportunity to accelerate the 5-nation European security con- ference, bogged down since Sep- tember in classic East-West dif- ferences, and to settle on an opening date for SALT II the second round in U.S.-Soviet ne- gotiations on limiting nuclear weapons. Inevitably, the conversations will drift into Cuban relations, but U.S. officials said in ad- vance of Gromyko's arrival from Havana that no change is anticipated in the decade-long policy of trying lo isolate the Castro regime from the rest of Hie Western Hemisphere. Kissinger was at Andrews air force base in the sleet and rain Sunday when Gromyko stepped from his blue and while jetliner and asked, jokingly: "Am 1 in Today's Index Comics.....................17 Courthouse ..................3 Dally Record ................J Deaths Editorial Features...........6 Fnrm ......................n Financial ..................18 Mnrlon ......................7 Movies .....................16 Society Sports ...................13-15 State Television ..................10 Wnnl lockers' Strike Violence By Associated Press Gunfire, rock throwing and tire slashing added to mounting t r o u b-1 e s Monday stemming from a strike by independen truck drivers that is crippling food deliveries and causing job layoffs in affected industries. An estimated workers whose jobs depend on truck shipments already were report- ed idled by the strike. The governor of Michigan joined the chief executives of Pennsylvania and Ohio in call- ing up the national guard to DES MOINES Gov. Robert Ray Monday authorized stern measures in an effort to curb vandalism and violence extend- ing from the truckers' strike. At a conference with State Public Safety Commissioner Charles Larson and his deputy, Sober! Holetz, and Assistant Highway Patrol Chief Maj. Al Crystal, the governor author- ized: 1. Use of floodlight-equipped national guard helicopters for night patrols of overpasses on nain highway routes. 2. Increasing highway Toopers on interstate and lighway 20, Ihe major cast-west truck routes through Iowa. 3. Selective escort by troopers 'or trucks carrying perishables from points of origin in Iowa to main truck routes. Ray said (he decision for use of these escorts s to be made by trooper post commanders in patrol districts recommended that and rucks moving perishable goods should (ravel in the daytime. That sliitc public safety of- 'icials ask for help from sheriff departments in counties along nain highway corridors in pa- roling overpasses and interscc- ions for possible sniping activi- y- The officials meeting with Ihe governor emphasized that ille- ;al activity in Iowa so far has )ccn scattered and many re- >orls of it have been unverified. However, since incidents have tad an intimidating effect on nickers who might wish to nove Iowa agricultural prod- ids, the governor decided on hose steps as preventive mcii- uros, according lo Ills press secretary, Dick Gilbert. aid the state highway patrol in preventing violence. Governor Thomas Meskill of Connecticut said the state Pub- lic Utilities Commission wouk issue an immediate order prohi- biting striking "truckers from in- terfering with commerce and alerted the national guard for a possible call-up. Violence was reported in more than a dozen states. Shoulder Wounds Two drivers suffered shouldei wounds from bullets which struck their trucks near New Buffalo, Mich., and Louisville, Ky., Sunday night. A Pennsyl- vania official said there had been 14 shootings at trucks and up to 100 other violent incidents since last Wednesday. About national guards- nen stood watch Monday Ohio and Pennsylvania high- ways. Federal and state of- 'icials recessed a Washington neeting early Monday without settling the growing shutdown hat has touched at least 30 states. Thousands of trucks are lot operating, hundreds of truck itops stations-cafes have closed iince Thursday. Federal energy chief William limon, Gov. Millon Shapp of 'onnsylvania, representatives! if five other states and spokes-! men for some independen' the drivers participated in Washington meetings that sumed Monday after two unsuc- cessful sessions Sunday. The negotiations were report- edly making progress Monday. Shapp told newsmen after a closed morning session: "We are making progress and the progress is starting to show it- self. Hopefully we can resolve the strike as quickly as possi- ble. The negotiations are going on in a very serious way." Shapp reported that Monday's discussions centered on three major complaints of truckers fuel allocaiions, pricing policies and federal regulations of Ihe interstate carriers. The governor saw the pros- ject that the latter problem might be solved by special leg- slation: He predicted that the louse and senate commerce committees would begin draft- ing possible legislation to meet ,he situation later in the day. Simon said he opposed, and did not rule out, a rollback in diesel fuel prices. A rollback is a key demand by the strikers. They say diesel fuel has gone "rom 33 cents to 47 cents a gallon in eight months. Spoke English Joseph Heimcman, an Ari- (Conlimicd: Page Col. 3.) Will Save Jobs, Fight Inflation' every man, woman and child in he nation, walks a tight rope of moderate economic restraint. "In the face of economic un- certainty, ray budget recom- mendations provide for a fiscal mlicy that would support high mployment while restraining he said. His budget officials left the door open for increasing spend- ing or cutting taxes to create Budget at a Glance Here is a comparison of the federal budget for the fiscal year ending June 30, 1974, and .he administration's proposed >udget for the fiscal year end- ng June 30, 1975, in billions of dollars: 1974 1975 Outlays.............274.6 304.4 leceipts.......... .270.0 295.0 Deficit............. 4.6 9.4 Debt at year-end .486.3 507.9 iobs lost through the energy recession induced shortage. by the fuel "The President will not toler- ate a Deputy Budget Director Frederick Malek told reporters. "If it means busting the will bust the bud- get fo keep people from losing their jobs." The budget arithmetic, al- ready disclosed last week, shows a deficit of ?9.4 billion about double that for the cur rent fiscal year. It shows, an all time high defense budget o billion and an over-al spending increase of bil lion over the last budget. First Time For the first time in history federal spending for income se- curity for needy Americans primarily social security, public assistance and health aid tops billion, a jump of about billion over fiscal 1974, which ends June 30. Nixon proposed no new taxes, except for the windfall-profits levy he offered in December to companies from on the energy keep the oil profiteering crisis. It would bring in S3 bil- on. As he has announced before, le proposed billion for en- ergy research to find new :ourccs of fuel for Americans; lew funds for mass transit sys- tems, wrapped in a special re- venue-sharing program, and a arge increase in aid to college students. Two-thirds of the farm budget will go to finance food stamp programs. This is coupled with a wholesale cut- back of 89 percent in federal subsides to farmers, to the lowest level since 1955. Nixon said his budget, which amounts to almost for The standby spending pro- gram could include accelerated !ederai construction, or procure- nent, public-service jobs in ligh jobless areas, or even ligher social security benefits, Maleksaid. Housing Plans Just as the budget was un- veiled, the housing and urban development department plans to .provide lor. in dis- sub- closed sidles- mqre public housing units, thus providing some stimulus to the depressed 'housing market. Although .the amount of new federal spending for additional subsidies in fiscal 1975 is small, budget officials said this was the first example of the type of moves Nixon will make to stim- ulate the economy if needed. As much as billion more in Federal funds could be infused into the economy if needed to irevent a recession, Malek said. Nixon's new spending pro- gram is greatly affected by in- flation, some of it in higher fuel costs to the government. Main Factor Wage and price increases ivcre the principal factor in a proposed boost in the lefense budget to a record jillion; increased health costs lelped push up the spending for health by billion; federal lax revenues increased largely be- cause of inflation. Of the billion in in- creased spending, 90 percent of t is in uncontrollablcs, largely ligher social security and pub- ic assistance payments. Nixon's defense budget tops he previous all-time record of billion in 1945, when the dollar was worth a lot more. In terms of percentage of (Continued: Page 2, Col. 1.) The Budget Dollar Where it comes from... Where it goes- Borrowing From Employers Excise Taxes From Employees .her Federal Operations Fiscal 1975 Estimates
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