Cedar Rapids Gazette, April 4, 1974

Cedar Rapids Gazette

April 04, 1974

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Issue date: Thursday, April 4, 1974

Pages available: 88

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Next edition: Friday, April 5, 1974

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Publication name: Cedar Rapids Gazette

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Cedar Rapids Gazette (Newspaper) - April 4, 1974, Cedar Rapids, Iowa Weather- Clearing tonight, lows in 20s. Warmer Friday, highs in 40s. VOLUME 92-NUMBER 85 CITY FINAL 10 CENTS CEDAR RAPIDS, IOWA, THURSDAY, APRIL 4, 1974 ASSOCIATED PRESS UPI, NEW YORK TIMES Tax Probe Ends; Nixon Will Pay WASHINGTON (AP) Th congressional committee inves tigating President Nixon's in come taxes closed its- case Thursday with a commendation to the President "for his promp decision" to pay some in back income taxes and inter- est. The joint committee on inter nal revenue taxation received a report from its staff Wednesda claiming that Nixon owed (crest. in back taxes and in- A short time later the White House said the Internal Reve nue Service had prepared a sep- arate report concluding that Nixon owed some in back taxes and interest and that Nixon would pay the amount cited by the IRS. Statement After a brief session Thurs- day, the committee issued statement saying in part: "While we have not complete- ly analyzed all of the technical aspects of the report, the members agree with the sub- stance of most of the recom- .mendations made by the staff. "Because of the President's decision to pay the deficiencies and interest for J969 through 1972, as asserted by the Internal Revenue Service, whose deter- chairman of the committee, said the audit was "hard but fair" and said Nixon should be com- mended especially for deciding to pay more than in back taxes for 1969 even though the statute of limitations has run out. Forced To Borrow White House officials said Wednesday that Nixon probably will be forced to borrow some money to make the tax pay- ments, which total about half his reported net worth. The President's net worth as of last May 31, was put at '22 in disclosures Nixon made our months ago. His cash as- sets were put at A White House source, asked low Nixon proposed to meet a ,axes-and-interest bill of about said the President vould use some resources and probably borrow the balance. No Fraud Allegation The White House announce- ment said the IRS report con- ained no suggestion of fraud on he part of the President. But the White House Thurs- day refused to make public the IRS report. Teleohoto THE TREMENDOUS FORCE of a tornado is shown in this demolished panel truck lifted from a restaurant parking lot at Knightstown, Ind., carried 250 yards through the air and wrapped around a telephone pole. Carl Thornton, the owner, had taken refuge in the restaurant and was not hurt. (More photos on picture page.) iniiiaiiutio I-IUOCIJ dpplUAUlldlc the recommendations of contended Nixon improp- committee's staff, the claimed deductions for committee on internal expenses and a con- taxation has decided to gift of his vice- its examination of the papers to the Na- ident's Archives. "The committee federal tax collectors also the President for his that the President failed to decision to make these tax taxable capital gains on of a New York City apart- Curtis and part of his land at San Calif. Only Sen. Carl Curtis (R-Neb.) dissented formally tax agency, which once the staff report. j (Continued: Page 3, Col. 1 lie LOinnilliLG S31G 1L I13CI forwarded a copy of the dif AAWAM Wednesday to the house oy ftaron ciary committee that is considering Nixon's impeachment. Rep. Wilbur Mills Ruth Mark committee vice-chairman, (UPI) Hank the panel had made "no equalled Babe Ruth's to find fraud because that run record Thursday not its job. That, he said, he hit the 714th of his ca- be up to the IRS, the courts in the first inning of the the house judiciary league opener Thurs- Senator Russell Long (Story in sports section.) Panel Tells White "Supply Data by WASHINGTON (AP) The a spirit of accommodation house judiciary committee Thursday gave the White House until next Tuesday to President. Yet there comes a time when patience and ac- with its request for evidence can begin to un- its impeachment inquiry or the process in which a arc engaged." The request, which involves 42 presidential conversations about the time the Watergate Hutchinson senior Republican on the committee, concurred with Rodino's was being disclosed last Hutchinson said he was made Feb. 25. The committee has not yet received a reply. Chairman Rodino (D-N.J.) issued a sternly-worded warning at a committee briefing unable to understand why the White House has not yet responded to the request. At the committee's order, chief counsel John Doar sent a Ud} "Patience Thursday to James St. President Nixon's chief "The patience of this lawyer, repeating tee is now wearing he "Wp hnup n request and calling for an Hearst Girl's Tape SAN FRANCISCO (UPI) At that time if her The parents of Patricia Hearst were stunned and disbelieving Thursday "'after--hearing their daughter renounce her former life, call her father "a liar" and declare she has joined the band which kidnaped her 59 days ago. Neither her parents nor her fiance could believe that 20- year-old Patricia made the statements of her own free will. A tape recording of Patricia's statement, broadcast over radio KSAN in San Francisco, and Patricia Hearst personality sketch on page i8. rought to the stations by mes- senger who also delivered a color snapshot of Patricia. choice is to become a "member of an organization like this, we'll'still love her and she is free to do whatever she'wants." Her Coerced mother voiced doubt Patty would join such an organ- nization without being coerced. "We love her and hope she'll be home again." Her fiance, Steven Weed, who was with her the night.she was dragged, kicking and scream- ing, from her Berkeley apart- ment by the. SLA, also hac doubts. "If she only speaks to me that would be Weed said, "I want to tell Patty that I love her as much as ever I can accept whatever she has chosen. "But that for me to accept what has happened today in the manner in which it has been It Cobra Symbol showed her dressed responsibility in this inquiry. When we made our request we made it not out of curiosity, not because we were prosecutors, but because it is our responsi- bility. "We have tried to pursue it in Today's Index Comics .....................35 Crossword ..................35 Daily Record ................3 Deaths ......................3 Editorial Features ..........8 Farm......................34 Financial ..................3fi Marion .....................37 Movies ....................32 Society ..................18-23 Sports ...................25-30 Slate Television ..................31 WnntAcis................39-43 overalls, cradling a submachine ;un, standing before a red flag learing the seven-headed cobra symbol of the Symbionese Lib- eration Army In the taped message, she de- lied she had been "brain- washed, drugged, tortured, hyp- notized or in any way con- used." AI their suburban Hills- lorough home, her family veri- ied the voice was Patty's. But her father, Randolph Hearst, said, "Personally, I don't believe it." Holding hands with his wife, Catherine, Hearst told newsmen n front of the house: "We've lad her 20 years. They've had icr 60 days, and I don't believe she is going to change her phil- Dsophy that quickly, and that ermanently, and I'll never be- ieve it until she cornea to me. r her mother, or her sisters or ne of her cousins and is free to (Continued: Page 12, Col. 5.) talk without any interference Wholesale Prices Despite Food Decline again last month despite first big decline in prices WASHINGTON (AP) Wholesale prices rose sharply the for farm products and processed foods in four months, the gov- ernment said Thursday. A 2.1 percent drop reported in prices for farm products, processed foods and feeds failed to offset the big rise in prices for a broad range of in- dustrial goods as the over-all price index for March in- creased by a seasonally ad- justed 1.3 percent a 15.6 percent annual rate. Last month's increase com- pared with a jump of 1.2 per- cent in February, both highly inflationary rates but more moderate than increases in the previous three months, the labor department reported. Wholesale prices over the past year have risen 19.5 percent. They usually are reflected later at the retail level. The over-all increase of wholesale prices last month lift- ed the government's pricing ndex to 154.5 of the 1967 average, meaning that it cost to. buy the same volume of. wholesale goods that purchased "in 1967. The government said that price increases of industrial commodities, regarded as one of the truest barometers of inflation, rose 2.9 percent a 34.8 percent annual rate both seasonally adjusted and unadjusted, with prices of metals and fuel leading the way. The increase was the second highest since 1946, ex- ceeded only by a 3.2 percent jump last November. Decreases for livestock, grain, raw cotton, eggs, fresh fruits, fresh vegetables and live poultry dropped prices for farm products alone 4.2 percent in March. Along Family given to me, would (be) just to sell her out, that's the way I feel right now." Pa Blister Anne said, "I know Patty far too well to think she'd come around like that. I don't believe it." Earlier Rebellion Before the kidnaping, Miss Hearst's rebellion against the establishment seemed to have taken no more violent forms than refusing to appear as a debutante. Not long before the kidnaping, she told her father, "Dad; nobody under 18 reads the Examiner any more. It has become irrele- vant to the times." Hearst told a reporter for the San Francisco Bay Guardian his daughter's criticism led him to start exploring a change in the Examiner's tone and policies. The bizarre broadcast also contained a frightening declara- tion from a self- styled field marshal of the SLA who said that hereout m members of the ruling class will be taken prisoner. Instead, he said, "corporal enemies of the people will be shot on sight." The FBI said Patricia's clairr to have joined the SLA woulc make no difference in their in vestigation of her kidnaping. No Difference "As far as what is said on the .ape, I don't think it makes an5 difference to our (Continued: Page 12, Col. 1) the wholesale chain, consumer foods those ready 'or sale on supermarket shelves dropped 1.4 percent with ower prices for meats, fresh vegetables and eggs partially offset by increases for potatoes, sugar products, cereals and ba- kery goods. Today's Chuckle An oil prospector is a man who doesn't know whether he. is four feet from a million dollars, or a million feet from V'- Legislators Divided on Nixon Tax Impact WASHINGTON (AP) Some members of congress predict lhat President Nixon's agree- ment to pay about in back taxes and interest will hurt i in the congressional im- peachment inquiry. But others say the tax issue will not affect Hie impeachment question. Rep. Al Ullman a member of the joint committee on internal revenue taxation, said: "My best guess is that this will legally close out the (lax) natter, but politically it will be mother disaster for the Pres- ident." The only member of the 10- man committee to oppose re- lease of the staff report, Sen. Carl Curtis (R-Neb.) said: "To have impeachment, you have to have high crimes or misdemeanors. And the tax controversy, regardless of its merits, is not in that area." Senator Walter Mondale (D- a member of the fi- nance committee who is con- sidering a 1976 presidential race, said: "It is a terrible ex- ample for the President to set for the American people." Asked how he thinks it will af- fect Nixon's standing with congress and the country, Mon- dale replied: "It won't help and it will probably hurt." Senator Vance Harkc (D-Ind.) said: "It would have been better if he had paid them (taxes) when they were due, instead of now." But he added that "I don't think this will have any direct effect on impeachment since his taxes are not an issue in the impeachment question." Senator Wallace Bennett (R- Utah) said: "I don't think there is any impeachablc quality in this series of transactions." Bennett joined other members of congress in ex- pressing relief that Nixon agreed to pay the back taxes. "I am glad he did this be- cause, coming just 10 days before April 15, this sets a wonderful cxnmplc for the American taxpayer." Rep. Wilbur Mills who liad predicted the commit- tee report would give more cause for Nixon's resignation than any of the allegations stemming from the Watergate cover-up, issued this statement: "I was pleased that the Pres- ident has seen fit to go along with the IRS figure, which was very close to the figure by the staff of the joint committee on internal revenue taxation, and get the matter behind us." House Republican Conference Chairman John Anderson (R- 111.) said Nixon's decision to pay up was "more seemly than going inlo lax court and litigat- ing." But, he said, "it would be almost fatuous to deny that this is a minus in the whole equation as far as the President is con- cerned." Taxpayers Take Mixed View of Tax Revelations By The Associated Press How do some of President Nixon's fellow taxpayers react to the news that he has agreed to pay more than in back taxes? In random interviews Wednes- day, some took miscry-loves- (Continued: Page 12, Col. 4.) By Associated Press Tornadoes struck an area stretching from Georgia to Can- ada late Wednesday and early Thursday killing at least 337 persons, the worst tornado death toll since 1925. Thousands of injuries and mil- lions of dollars in damage re- sulted from the twisters that hit scores of cities and towns, leav ing many in shambles. President Nixon declared Ala bama, Indiana, Kentucky, Ohio and Tennessee national disaster areas. Half the town of Xenia, ii southwestern Ohio, was devas tated. Thirty persons were killed and more than wen homeless in the community o Rows of bodies were arrangec in the rubble-strewn streets More victims were though' trapped in overturned cars, bu. heavy equipment was unable to get through the streets to lift the vehicles. Whole neighborhoods were de s t r o y e d buildings leveled, railroad cars and trucks upend- ed by the vicious winds thai struck the Midwest and South. Worst Hit Kentucky appeared to be the worst hit, with 80 known dead and hundreds of injured. Alaba- ma reported 72 .dead. Indiana 62, Tennessee 54, Ohio 35, Geor- gia 15, Canada, 8, North Carolina 5, Michigan 3, Il- linois 2, and West Virginia 1. Early "Thursday, two nadoes hit the town of Meadow Bridge, W. Va., about 50 miles southeast of Charleston, killing one person and injuring severa others. Weather forecasters ii Kansas City compared Wednes day's tornado outbreak to a "fast-moving shotgun blast." "There were twice as man> people killed (as the result o: tornadoes) in eight hours yes terday as were killed in the three previous sak Allen Pearson of the Nationa Severe Storms Forecast Center. In Chicago, forecasters sale there was a chance of more tor- nadoes through Friday. The greatest threat Thursday was either side of a line running from 45 miles southwest of Me- ridian, Miss., to 35 miles north- west of Columbus, Ga. Knocked Out Telephone communications were knocked out in most areas and national guard units were called up to help evacuation ef- forts and to prevent looting. Heavy rains and hail also I struck the storm areas. "We had about 30 seconds warning before it said Gary Heflin, a grocery store manager in Xenia. "All you could hear was the wind, the j crashes and people praying." "I've been through t h e Korean conflict but I have never been scared like said C. B. Grissom of Lexington, Ky. Governor Wendell Ford de- clared the state a disaster area and called it "probably the most tragic day in the history ol Kentucky." Ford ordered national guards- men into the stricken areas. Curfews were clamped on Frankfort, the state capitol, on Louisville and on Brandenburg, a town of Brandenburg was left in rubble and 23 persons were known dead. Soldiers from nearby Ft. Knox used giant searchlights to probe the debris in the search for more bodies. 20-Foot Jump "There was a loud roaring sound like a train and I saw a car jump 20 feet in the said Grissom of the tornado he survived in Louisville while at- tending a basketball game. Louisville's water supplies were reported dangerously low. In Ohio, Gov. John Gilligan ordered the national guard into Xenia and asked federal of- ficials to declare the town ol Col. 3.) East Iowa Rail way Buys Coal Mine Bv Gordon Hanson DES MOINES (AP) The Central Iowa Railroad Co., de- scribed as the nation's first co- operative short line railroad, Thursday announced the pur- chase of' the New Lanning Coal Mine near Thornburg. Company officials said they hope to produce at least 7 mil- lion tons of coal annually to re- place coal now imported into Iowa from Illinois, Missouri and Oklahoma. Short Line The Central Iowa Railroad covers 63 miles between Iowa ity and Montezuma, serving about 12 southeast' Iowa com- munities, including Thornburg. The parent firm of Central Iowa Railroad also announced that a coal "washing" plant (Continued: PageS, Col. 4.) TORNADOES LEAVE PATH OF DESTRUCTION Wlrcphoto Shaded areas indicate states where tho tornadoes struck. Underlined arc hard-hit towns. ;