Cedar Rapids Gazette, April 2, 1974

Cedar Rapids Gazette

April 02, 1974

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Issue date: Tuesday, April 2, 1974

Pages available: 80

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Next edition: Wednesday, April 3, 1974

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Publication name: Cedar Rapids Gazette

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Cedar Rapids Gazette (Newspaper) - April 2, 1974, Cedar Rapids, Iowa Weather- Chance of rain to- night and Wednesday. Lows tonight lower 40s. Highs Wednesday 55 to 60. CITY FINAL 10 CENTS VOLUME 92-NUMBER 83 CEDAR RAPIDS, IOWA, TUESDAY, APRIL 2, 1974 HEARST ASSOCIATED PRESS, NEW YORK TIMES Don Nixon: Phoned by Vesco Aide NEW YORK (AP) F. Don- ald Nixon told a jury Tuesday that when a lawyer for financier Robert Vesco asked him to give a message to his brother, Pres- ident Nixon, he suggested the lawyer contact John Mitchell in- stead. "I never talked to my brother about anything. John Mitchell was the man 1 was told to talk Donald Nixon testified. The 59-year-old brother of the President appeared as a govern- ment witness at the conspiracy trial o! former Ally. Gen. Mit- chell and ex-Commerce Secre- tary Maurice Stans. They are accused of impeding a Securi- ties and Exchange Commission investigation of Vesco in return for Vesco's secret cash contribution to the President's re-election campaign. Donald Nixon, now a vice- president of Marriott Corp., a restaurant and hotel chain, said that Howard Cerny, a Vesco lawyer he'd known for 10 years, called on him at his hotel just prior to the 1972 election. "Impossible" "He told me there had been a contribution to my brother's campaign and that an SEC investigation was in progress which would very like- ly expose the contribution, and he wanted to get that to the President." Nixon said he told Cerny that that would be impossible be- cause his policy was never to take anything directly to his brother. "I made it very plain to Cerny that. I did not want (o get involved in any way with any- thing to do with Ihc Vesco Nixon said. Son's Hole Nixon said he wasn't sure whether his son, Donald, jr., 26, was still employed by Vesco now. He said that the weekend after the election he got a tele- phone call from his son, a Vesco aide, who put Vesco on the line. Nixon said Vesco told him he wanted to get an envelope to Mitchell at the Essex House hotel in New York City. Nixon said he offered to call the man- ager of the hotel. The indictment charges that Vesco attempted to submit a written memo to Donald Nixon in November 1972, "the purport and tenor of which was lo threat- en disclosure of the secret cash contribution and other adverse consequences unless the SEC was directed 'to drop all legal proceedings against Vesco." "Message to Top" Earlier testimony at the trial was that Vesco hoped through his memo to Donald Nixon "to get a message to the top" the President. The memo was delivered in- stead lo Mitchell, according lo prior testimony, and he turned it over lo Harry Scars, a New Jersey Republican politician who had become Vesco's a year legal aide. It ended up on the shelf of a closet in Scars' Boonton, N. J., home. The indictment claims Mit- chell thereby concealed the ex- istence and contents of the memo from the SEC "and other law enforcement agencies which properly should have been made aware of it." This was a part of the conspir- acy charge against Mitchell and Slans. Dean Appears Before Nixon's testimony, John Dean made a surprise re- (Continued: Page 3, Col. 6.) Today's Chuckle The only reason Americans don't own more elephants is that they have never been of- fered one for a dollar down and a dollar a week. House Panel Votes To End Oil Depletion WASHINGTON (AP) The house ways and means commit- tee, suddcnlly changing its mind on a key part of Ihe energy tax reform bill, has voted to eventu- ally abolish the controversial petroleum depletion allowance. This allowance, a chief target of tax-reform advocates, saves oilmen some billion a year in federal taxes. The committee voted 18-7 Monday to drop the present 22 percent depletion allowance to 15 percent Jan. 1, 1975, to 8 per- cent Jan. 1, 197G and finally to zero on Jan. Earlier Version The tax-writing committee thus reversed itself on the issue of oil depletion, which has per- mitted 22 percent of gross in- come from oil and natural gas properly lo be deducted from taxable income up to a max- imum of 50 percent of the tax- able total. Earlier, Ihe committee had tentatively accepted just a par- tial phaseout plan that would have wiped out the 50 percent ceiling, while lowering the de- pletion percentage rate itself as prices rose over Ihe next few years. The new approach could pro- duce a government gain in revenue from the in- dustry in .its first year and a total billion over a three-year span. The previous plan, if fully effective, could have raised some billion by 1981. Possible Exemption .Committee Chairman Wilbur Mills (D-Ark.) and Rep. Herman Schneebeli the panel's senior G.O.P. member, joined in advocating the new concept, which is not price-dependent. Under the committee's old proposal, the allowance could not fall under 15 percent for the first barrels of oil daily per about 30 per- cent of U.S. crude oil output during the first five years of the phaseout. The allowance would remain for minor producing wells. The committee is expected to decide later whether to .put these small-well and provisions in the new version of the phaseout. Professors' Unit Probes Seminary ST. LOUIS (AP) An inves- tigation of the firing of 43 facul- ty members at Concordia Lu- theran seminary could result in Ihc seminary's administration being placed on the list of cen- sured university administra- tions, says a spokesman for the American Assn. of University Professors. Dr. Michael Firclander of Washinglon university, chair- ligaling commitlee, said Sunday the group would investigate whether the academic freedom and tenure of the professors had been violated. Many Wage, Price Curbs Are Junked WASHINGTON (AP) Wilh less lhan a month to go until its control program expires, the Cost of Living Council (CLC) Monday liflcd wage and price controls from about 165 indus- tries and C percent of the total labor force. It was the council's biggest single decontrol action to date, and seemed certain to result in ligher prices for items ranging "rom wearing apparel to movie tickets to life insurance pre- The industries decontrolled, by category, included: Manufacturing apparel, lug- gage, tools, heating equipment, motor vehicles and passenger car bodies; photographic equip- ment, and clocks and watches. Wholesale trade auto tires and tubes, furniture and home 'urnishings, lumber and con- s t r u c t i o n materials, sports equipment, toys, apparel, paper products, beer and chemicals. Financial institutions bank- ing, life insurance, credit agen- cies, and real estate agencies. Services hotels and room- Teleuholo s "SOME APRIL FOOL says Lou Babrneau of as he digs out after an over- night storm that left more than eight inches of sticky snow. He had just finished cleaning the snow his car when a snowplow buried it. Work Rolls, Jobless Rate Both Higher Cedar Rapids News- Employment in Linn county rose during February, but so did unemployment. The Iowa Employment Securi- ty Commission said metropoli- tan employment rose from 72.800 in January, to 72.900. But the jobless level went from in January to in February from 2.2 lo 2.4 per- cent of the work force. Year Ago A year Linn county's unemployment was or 3.1 percent of the work force. The current unemployment rate for Iowa is 3.7 percent, and for the nation is 5.2 percent. Employment reports indicate a slight turndown of business and industrial activity in Febru- ary. There were employment declines in construction, govern- ment, finance, insurance and real estate areas. Services Gain Manufacturing employment By Associated Press Tornadoes, high winds and se- vere thuncferstorms that ripped across the Southeast Monday night and early Tuesday left three persons dead, scores in- jured and severe properly dam- Authorities in Cherryville, N.C., said Patricia Humphries, 5, was killed and 10 persons were injured when high winds accompanying a violent thun- derstorm wrecked at least 15 icuse trailers in two mobile home parks. A policeman said some of 'the mobile homes "were flattened like you would stomp a can." One of the dead was identified as Willie McCarey, killed Mon- day night when his mobile home vas overturned by wind north of Huntsvillc, Ala. His wife and hree children were hospital- man of the association's invcs- was steady at and the only area to show a gain was services. In the last year, non- manufacturing employment rose by mostly whole- Continued: Page 3, Col. 3.) Faches Gefs Subpoena Power for Murder Probe By Roland Krckeler The Linn counly attorney has been authorized lo subpoena and question witnesses in an unspecified investigation, be- lieved to involve the murder of Donald Van Steenis. The authorization was granted by District Judge James Carter late Monday aflernoon after an application was made by County Ally. William Faches. The ap- plication said the nature of the investigation would be made known orally in court because of Ihe confidential nature of Ihe mailer. Although the counly attorney did not specify the case in the court record, The Gazelle has learned thai Ihc investigation deals wilh the Van Slecnis case. The 32-year-old Cedar Rapids auctioneer died Feb. 12 of n broken neck caused by one of four wounds from .38 cal. slugs fired into his back. Weapon Missing No weapon has been recov- ered, although deputies combed the Cedar "river near where Van Steenis is believed to have been shot and executed a search warrant on the residence of a Cedar Rapids man. Two sels of footprints led up lo Ihe river, but only one set led away from the river at a quarry east of town, just upstream from where Van Steenis' body was recovered from the river Feb. 20. Wilncsscs arc lo be called into Ihe county attorney's office be- ginning at 9 a.m. Thursday, ac- (Conlinuctl: Page 9, Column 4) 3 Die, Scores Hurt as Storms Rip Southeast House Jkeepts DBS MOINES (AP) A con- erence committee compromise n a bill designed to pump about ?20 million into the 451 owa school districts to provide a pay boost for teachers was ac- epted 80-1 by the house Tues- day. The bill now goes lo the ;enale. The house and senale had larlcd company on Ihe question if how to handle school districts vith declining enrollments. Under the compromise, ichool district would lose stale aid for only 50 percent of its cn- loss in Ihe budget year leginning next July 1. It would lose stale aid for half of the enrollment decrease up to 5 percent in the fiscal year starling July I, 1975, and 75 per- cent of any decrease over 5 per- cenl. The compromise also would establish a study committee to ook into the stale school foun- dation aid program as it rc- ;ards student transportation, leclining enrollment, population density, and costs unique lo irban districts and the possibili [y of restructuring Ihc present system lo insure quality ecluca ion for all students. ized. Nineteen people were in- jured in Alabama. Another mobile home resi- dent, tentatively identified as Decker Teague, in his 90s, died when a tornado roared through Campbellsburg, Ky. Three busi- nesses and several homes were destroyed there and 12 injuries were reported. Shopping Center Hit A total of 28 twisters swept through a wide area including Tennessee, Ohio and Mississippi. A tornado swooped down the sprawling 100 Oaks shopping center in Nashville, Tenn., where hundreds of persons were shopping. Windows were blown out and debris was strewn. It's a miracle no one was said a security guard. "Glass and dirt was flying ev- erywhere-" High winds smashed into Cen- ral State hospital a few miles east, collapsing part of one building, blowing away a guard ihack and knocking out power to Ihe institution. The National Weather Service said wind at Nashville Melropol- "tan airport reached 90 m.p.h. Cincinnati Tornado Another tornado churned through Cincinnati, narrowly missing the downtown area. No injuries were reported but roofs were torn from houses, trees .vere uprooted and cars were tossed about. Officials said the roof of one home floated 300 feet before landing on top of a tree. Several tornadoes were re- ported in Mississippi. The Boli- var county civil defense office said winds caused between and damage al Margold. Thunderstorms rumbled dur- ing Ihe night throughout the Southeast. Baseball-sized hail fell at Poplar Bluff, Mo., and London, one-inch hail rained down near Birmingham, Ala. U.S. Soldier Tells March In Bare Feet By The Associated Press An American marine and an Irishman serving as Unitec Nations observer.in the Golan Heights said in an interview Tuesday lhat they had been forced to march barefoot for 2( miles in Iheir underwear lo a Syrian military outpost. The Syrians said it was all a mistake, and the two men were expected to be released soon. Speaking from his bed in an Italian hospital in Damascus Capt.'J. J Holly, 27, of Corn- ing, N.Y., said he and Capt J. A. Mortell of Ireland had been sleeping in a U.N. trailer when an Arab soldier orderec (Continued: Page 3, Col. 8.) auto repairs and motion pictures, ing houses, a r a ge s amusement and recreation ser- vices and educational services, except for public employes. The council also lifted wage controls for 706.000 postal work- ers, .railroad workers, telephone communica- tion workers, aulo sales- men and gasoline serv- ice "Station workers. "council nrainiaine'd con-' number of indus-. tries with big consumer im- pact, including food, steel, copper, auto sales, machinery, construction, health and wag- es of slate and local govern- ment employes. Petroleum remains under sep- arate price conlrol authority. Lifting.of the controls frorr the 165 industries and the big chunk of the labor force left 24.2 percent of consumer prices stil subject to controls along with 37.4 percent of wholesale prices and 26.8 percent of the labor force. Council director John Dun- lop said the industries still under control are "those which might exhibit strong price pressures in the event of immediate exemption." But unless congress changes its mind and grants the ad- ministration the authority it wants to continue some controls for selected industries, all con- trols will end on April 30 when authority for the program ex- pires. Liner Queen Elizabeth 2 Crippled; Plan Evacuation Strike Averted NEW YORK (AP) A con- Iracl settlement has averted a strike by subway and bus workers. It threatened to para- lyze New York Cily's transit system which carries 6.4 million riders daily. BULLETIN HAMILTON, Bermuda (AP) Ttie passsengers of the crippled luxury liner Queen Elizabeth 2 will lie evacuated Wednesday morning in a mid- ocean transfer to a Norwegian liner, a spokesman for Cunard Lines said Tuesday. LONDON (AP) The luxury liner Queen Elizabeth 2 was re- ported adrift Tuesday 270 miles southwest of Bermuda wilh more lhan passengers and- a crew of 940 aboard, Cunard officials said. The ship, disabled since Mon- day by a boiler breakdown, is in no danger, the officials said. The ship was ex- pected lo reach the Brilish is- land of Bermuda sometime Wednesday evening, Cunard said. The ship's three boilers were allowed to cool down so the trouble could be analyzed. Early Tuesday the engines were restarted, but after half an hour's sailing al about 10 knots, it was decided to re- check the functioning of the hollers. Thai cnlailed another lengthy wail for the boilers lo cool, a spokesman said, and put back Ihc previously estimated arrival lime in Bermuda from Wcclncs-' ing sent lo tow the ship to land. day morning to Wednesday eve ning. However he said during the delay that the ship was in no danger. "She's in deep water There's no danger of drifting on to a reef, and weather condi lions are good calm seas and cloudless blue he said. Some passengers aboard the liner were reported uncomfort- able from the rolling of the ship in heavy seas during the un- scheduled stop. But most enjoyed themselves as the ship's bands played and free drinks were served. Cunard said emergency power kept Ihe air conditioning, light- ing and food refrigeration sys- tems working. However, Wasliinglon Red- skins football player Ron Mc- Dolc, a passenger, told Wash- ington radio station WWDC by ship-to-shorc telephone that Ihc air-conditioning hnd been turned off and that the heat below decks was "stifling." McDole said few people were using the swimming pools be- cause Ihc ship's pumps had stopped rccirculaling the water. McDole also said that Ihc ship was completely shut down and that passengers have been told that ocean-going tugs were be- Girl Begs Kidnapers SAN FRANCISCO (AP) One of Patricia Hearst's sisters appealed to the Symbionesc Lib- eration Army Tuesday to re- ease the kidnaped newspaper leiress, saying: "I need my sister." Vicki Hearst, 17, wrote an open letter published in the San "Yancisco Examiner. "The SLA iays that they are acting in response to- the needs of 'the the letter said. "Well, 'm part of the people too, and I lave a very great need. I need my sister." Against Humanity She said that if the kidnapers fail' to release Patricia, "they commit a crime not only against this family, but against humanity." Meanwhile Ihe Hearst Corp. gave the SLA 30 days to release her if they are to collect an ad- ditional ?4 million food ransom. The corporation deposited the money in escrow for continu- ance of the Hearst food give- away if Patricia is released by May 3. In a statement issued in New York, the corporation said the money has been deposited with Wells Fargo bank in San Fran- cisco and'three prominent Calir Eorniana. named to ..an, cprnrnHtee_to take charge of it. Sole Judgment The committee state As- semblyman Willie L. Brown, jr.; Vincent Hallinan, a San Fran- cisco attorney, and Mexican- American leader and author Dr. Ernesto Galarza will "deter- mine, in its sole judgment, whether Patricia Hearst.is< re- leased the corpora- tion said. Vicki was the firsl of two sisters to write open letters to Patricia, who was abducted Feb. by the terrorist SLA which said it was holding the girl as a "prisoner of war" because her parents were "cor- porate enemies of the people." Patricia's father, Randolph A. Hearst, editor and president of the Examiner, said a letter from Patricia's other sister, Ann Hearst, 18, would appear Wednesday. Because Hearst did not want to attract attention to his other children with television appear- ances, the letter writing was planned. Charges Swirl Meanwhile, charges and coun- tercharges swirled around (he just concluded million lood giveaway financed by Hearst to win his daughter's release. A. Ludlow Kramer, the Wash- ington secretary of state who headed the food program, said Monday the program was con- ducted in "a world of violence." The SLA-nominated coalition that oversaw it was more inter- ested in power than in Pa- tricia's safe return, he said. Kramer's statement in Olym- pia, Wash., was prompted by the coalition's remarks in a Sun- day night broadcast over a Berkeley radio station that the food program was uncoordinat- ed and disorganized. Without taking issue with Kramer, Hearst late Monday publicly thanked "each anfl every member of the coalition (Continued: Page 3, Col. 3.) Today's Index Comics......... ..........20 Crossword ..................20 Daily Record ................3 Deaths ......................3 Editorial Features ..........fi Farm......................12 Financial ..................21 Marion .....................21 Movies .....................13 Society......................8 Sports ...................15-18 Slate Television..................U Want Ms............... .23-26 ;