Thursday, June 27, 1974

Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

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Cedar Rapids Gazette (Newspaper) - June 27, 1974, Cedar Rapids, Iowa Weather- Hair loulgbl with lows In the upper 50s. I'arlly cloudy Friday with highs in Hit low- er 8IK VULUMK 92 NUMBKH CITY FINAL 15 CENTS NIXON St. Clair Responds To Panel Evidence WASHINGTON (AP) Atlor- ney James Clair opened President Nixon's impeachment defense before the house judici- ary committee Thursday. Before entering the closed hearing, lie told reporters he regarded as the most serious charge the March 21, 1973, pay- ment of to convicted Wa- tergate burglar E. Howard Hunt. St. Clair insisted the money was for Hunt's legal fees and not part of the Watergate cover-up, as has been alleged by a federal grand jury. St. Clair arrived at the com- mittee room armed with a bulky brief and other docu- ments, but his request that he be allowed to call six witnesses to buttress his case was reject- ed by the committee Wednes- day. The committee agreed to call two of them, former White House counsel John Dean and Frederick LaRue, a former White House and Nixon re-elec- tion campaign aide, but said it wants the other four interview- ed first by the committee staff to see if their testimony is need- ed. Mitchell, Haldeman be able to complete his defense in two days. An effort to win approval of St. Clair's full list of witnesses failed on a 19-19 tie vote that produced a sharp partisan split in the committee and may have influenced some Republicans to vote against impeachment. Rep. Sandman (R-N. who offered the losing motion to ex- pand the witness list, said he still was undecided about how to vote. "But if I don't hear fron- the witnesses I want to hear, I'l never vote for he said. Rep. Railsback also undecided o n impeachment said he thought the committee had made "a very bad mis take" in rebuffing St. Clair. "Lynch Mob" Presidential counselor Dean Burch said Thursday the refusal to hear witnesses requested by President Nixon's lawyei creates "the appearance of a partisan lynch mob." Burch said the committee de- cision to definitely call only two of the six is patently unfair. Seeks Accords On Trade, Arms MOSCOW (UPI) President Nixon flew into Moscow Thurs- day for the third U. S.-Soviet summit in a little over two at 50 miles an hour to the years. Soon afterward, he Ire- Kremlin where a human wall of security forces opened a path After shaking hands with the crowd, Nixon and the Soviet leaders got into a car and sped for the men to enter for their "If the President had stolen a loaf 'of bread, he could have Two of the other witnesses St. I called Burch said. Clair wants are former Attorney The committee adopted a two- General Mitchell and former White House aide H. R. Hal- deman. In a letter requesting their ap- pearance, St. Clair called Hal- deman's testimony "critical to establish that the President did not direct 'hush money' pay- ments to E. Howard Hunt on March 21, 1973, or at any other time." St. Clair said Mitchell will tes- tify that in approving the payment he understood the re- quest to be for legal fees and heard no mention of additional funds for any other purpose. Although the March 21 events are the focal point of St. Clair's presentation, he said he will deal with all the allegations be- fore the committee. He present- ed each member with four tele- phone directory -sized books filled with evidence, the largest of which dealt with the Water- gate cover-up. Voles Influenced St. Clair said he expected to tier witness list, naming five who would definitely be called and listing five others to be in- terviewed by the staff to see if their testimony is wanted. first list includes Dean.; LaRue; Herbert Kalmbach. Nix- on's former personal lawyer; Alexander Butterfield, former presidential appointment secre- tary who now heads the Federal Aviation Administration, and Assistant Attorney General Henry Petersen. On the waiting list are former White House and Charles aides Haldeman C o 1 s o n, Mit- chell, Paul O'Brien, former law- yer for the re-election campaign committee, and William Bitt- man. lawyer for Hunt. In a letter to the committee St. Clair said all eix of the wit- nesses he wanted could provide information on the March 21, 1973, conversation, in which Nixon discussed making pay- ments to Hunt to keep him (Continued: Page 3, Col. 7.) Leffer Says Dean To Clear President on Hush Money WASHINGTON (UPI) A se- ident did not direct hush money crct White House letter says John Dean will clear President Nixon of charges he ordered hush money paid lo Watergate payments to be made to Hunt, nor did the President direct anyone to call (Attorney Gener- al) Mitchell concerning the hush talks with Leonid Brezh- nev aimed at new economic agreements between the super- j talks. powers and slowing the nuclear The public greeting was dif- arms l fcrent than 1972 when crowds Officials originally hoped the j were kept lo a minimum. Work- meeting would produce a per- men lined the motorcade route Soviet Communist Party Leader Brezhnev greets President Nixon in Moscow Report Says Aides to Humphrey, Mills Took Fifth on Dairy Gifts WASHINGTON (AP) mer top campaign officials for Hubert Humphrey and Wilbur Mills have invoked the Fifth Amendment and refused to tes- ;ify to the senate Watergate committee about apparently illegal campaign donations, according to a confidential staff report. Humphrey and Mills have been asked to meet personally with the committee to give information about their un- 1972 presidential but neither has money payments, but that at tlucers. Inc. successful campaigns complied with the requests, the report said. The staff report was distri- buted to members of the com- mittee on Wednesday. A copy was obtained by The Associated Press. New Details Mills could not be reached for comment. A spokeswoman for lumphrey said he had not seen he report and "he won't want .0 comment on it until it is in its 'inal form." The report gives new details of corporate aid for the Hum- phrey and Mills campaigns by he nation's largest dairy co- operative, Associated Milk Pro- burglar E. Howard Hunt, UPIjmost the matter was 'left hang-! lt also lhat botn Hun> learned Thursday. I ing' and nothing was James St. Clair. Nixon's tergate lawyer, sent the letter to the house judiciary committee! Wednesday asking that Dean, Nixon's principal Watergate ac- phrey and Mills got previously undisclosed corporate gifts of each from the and related Bittman's request 'or fecs ant' "v'nS ex" among "critical St. Clair. said, adding witnesses" lo be called on Wieved "Dean will con- hush money matter. A copy he made the call lo Larue the letter was obtained from a Republican committee member. Dean told the senate Water- gate committee that payments j to Hunt were discussed March 21. 1973. at an Oval office meet- ing with Nixon and former White House chief of staff II. R. Haldeman. Within hours, court papers .say. presidential consultant Fre- derick Larue paid to Hunt's lawyer. In the White House letter, St. Clair said Dean would testify that Nixon did not order Ihe money paid, and, in fact, the decision to give Hunt Ihe was made before Dean and Ihe President met. "It is anticipated lhat Dean will testify lhat in his meeting with the President on the morn- ing of March 21, 1073, Hie Prcs-j Chuckle The joy of motherhood wlml n woman experiences when all Ihe children an1 finally in bed. in the morning, before Dear met with the President." I Mining and Manufacturing Co. It said there is evidence thai Humphrey's campaign manager. Minneapolis attor- ney .lack Chestnut, was aware lhat corporate money was being used lo finance used by Humphrey's cam- paign. Chestnut refiised 'to testify un- der oath after being interview- ed informally, it said. port said, through an Mills sent word attorney that he would not meet with the com- mittee until after certain legis- lative matters are cleared up and so far hasn't arranged a The former chairman iid mlri Inn Tnnncrtn Mills campaign, Joe Johnson, also invoked Fifth Amendment protection against self-incrim- ination and refused to testify, the report said. Not Yet Adopted The report has not been adopted by the committee. A cover letter from the com- mittee's chief counsel, Samuel Dash, said the report is the work of both Democrats and Republicans on the staff. He said it is an edited version of an original draft by deputy Repub- lican counsel Donald Sanders. The report said Humphrey, Democrat of Minnesota, got in corporate aid from the milk producers in 1972 and an- other in legal gifts from political trusts run by the milk producers and two sister dairy cooperatives. It said the dairy co-ops gave in corporate aid to the arief presidential campaign of Arkansas Democrat Mills, who is chairman of the house ways and means committee. It said lhat Mills received the equiva- lent of 43 percent of his cam- paign revenues in corporate and The report noted mat some of the records of the milk produc- ers co-op were destroyed in 1971 and might have shed more light on the assistance given the Mills campaign. Similarly, it said that Chest- nut destroyed virtually all of Humphrey's campaign financial records for the period preceding April 7, 1972, the date a new campaign finance law took ef- fect. It said he did so in the summer of 1972 and noted that such destruction of records isn't illegal. Personally Involved The report said Mills was per- sonally involved in at least one incident which the committee investigated. It cited testimony that Mills personally solicited an invitation to appear at a bipartisan Iowa farm rally which was held Oct. ieiryf May Ask By Associated Press Lebanon has decided to ask the Arab countries to reimpose oil production cutbacks if Israel continues to attack Palestinian positions in Lebanon in reprisal 'or guerilla raids, the right-wing Beirut newspaper Al Jarida re- ported Thursday. The paper said Lebanese Pre- mier Takieddin Solh will make the request at the emergency meeting of the Arab League defense council called in Cairo Monday to discuss the Israeli raids into Lebanon. "Urgent Need" The council is made up of defense and foreign ministers of the league's 21 member states. A government spokesman said the premier was heading the Lebanese delegation to help impress on the conference "the urgent need for collective and effective Arab action to deter Israel." The spokesman declined to comment on the report that Solh would seek renewal of the oil war. Arab gunners and Israeli forces traded artillery fire across the Lebanese border on the western slopes of Ml. Her- Despitc its bipartisan appear-) mon Thursday, the Israeli mili- ance, the rally was financed and tary command said, promoted by the milk producers A communique said several and a sister co-op. I mortar shells were fired from In the Mills campaign, territory at the Har congressman himself was sector. Fire was returned sonally involved in one of the in- cidents cited by the report. II-1UHIIO l-HUVl u V nil. non-corporate donations fronij u sajd solidt. the co-ops, their political invit.ltion to spcak at and their members, cmploycsjfarm jn ,owa Oc, i and officers. Letters to Mills Committee Chairman dair-v on sent two letters lo Mills, on its financing and pro-, villages 24 and Feb. 7. saving the "J touI Mills for, mittee feels it is'nece.ssarv and no Israeli casualties were reported, the command said. manent strategic arms limita- tion agreement. But Secretary of State Kissinger said Tuesday that there would be no such pact this even an "in- terim" one similar to a 1972 agreement to limit nuclear de- fensive arms. Underground Tests There was still hope among officials that by the time Nixon speaks on Soviet television next week, the leaders will have agreed on limiting underground nuclear tests. ___________ Nixon, who met with Brezh- -UPI Tciephoio nev in Moscow in May, 1972, and again in Washington and San Clemente, Calif., in June, 1973, walked up to a flag-waving crowd at the airport to shake hands with Soviet citizens and some Americans before departing for his talks at the Kremlin. Brezhnev headed the welcom- ing party which also included Premier Kosygin and President Nikolai Podgorny. Brezhnev did not greet Nixon in 1972 on grounds of protocol. Even [hough he is the-Soviet .Union's most powerful leader as head of the Communist party, he holds no public post. Before Nixon left Brussels, he assured European allies he would make no deals with the Russians at their expense an( signed a declaration reaffirming the U. S. commitment lo the North Atlantic Treaty Organiza tion He also said he hoped in Moscow to achieve progress on ending the arms race. A high U. S. official said he thought Nixon and Kissinger would know after Thursday's meeting if there can be an agreement by the end of the year on arms control. He said he thought Brezhnev had a major stake in trying to reach an agreement. Brezhnev Prestige "If detente fails, it's bound to hurt Brezhnev's the official said. "Any leader who pursues a policy for four years and it fails, is bound to suffer a loss of prestige." Brezhnev was all smiles Thursday as he greeted Nixon at Vnukovo-2 airport. The 67- year-old leader, his silver hair blowing in the wind, chatted ivith Nixon as they reviewed the <llc newspaper guard and at onc point vahar said that the Lebanese i nnri ;ovcrnmcnt fears Israel 2. 1971. The affair was billed as occupy the southern part of Lc-j a bipartisan gathering, but Parrjbanon because of the guerilla] d hrew back his head and to (he Kremlin Thursday three hours before Nixon's plane ar- rived and the government set up stands to sell hard-to-get cu- cumbers and pineapple a common Soviet step lo ensure a large crowd. Thousands of Police But many did not see Nixon, with crowds kept behind ropes 150 feet from the motorcade route to the Kremlin. Thousands of police, troops and volunteer civilian police called Druzhinni- u lined the motorcade route. "The last time we didn't know when he was coming, but this time we were told in said one Russian waiting to see the American leader. The Communist parly newspa- er Pravda carried a front page jiclure of Nixon and said Ihe Russian people "expect the new Soviet-American summit to mark a milestone along the road for further improving and developing relations and of (Continued: Page 3, Col. 8.) Cites As Big Issue In Arms Talks MOSCOW (UPI) Russia's proposal to control strategic arms would give the U. S. an advantage in total number of multiple warhead missiles and leave the Soviets with more missile launchers, a senior U. S. official said Thursday. The official, who spoke with newsmen aboard President Nix- on's plane en route to Moscow, said the proposal "is not accept- able because Ihe gap isn't big enough." His reference was lo the U. S. advantage in MIRVs, multi- leaded missiles with warheads -hat can be fired at different targets, vs. the Soviet launcher advantage. The official said both Secre- ary of State Kissinger and lixon felt that the most vital Soviet-American issue during he summit was limiting new multiple warhead missile devel- opment. The official contended that the U. S. is in no real danger of icing outclassed by the Soviets unless it should stop working on missile improvement as the So- red sign in English I viets continue, but said it was Welcome President [vital to get an agreement as that the dairy on Israeli towns Onc in nussian, sajd.jsoon as possible. worth of computer-mail lists [Mills to be interviewed, the re-' (Continued: Page 3. Col. 2.1 Missiles, No Jets Government sources in Beirut (Continued: Page 12, Col 6.) Movie Stars, Businessmen Bilked of Million NKW YORK (AP) Top show business personalities, business magnates and big name lawyers were among victim? of a million oil drilling swindle. Ihe Wall Street Journal said Wednesday. The newspaper said it may be Ihe biggest swindle of its kind in history. Investors sank about mil- lion in it and all but million went astray, the newspaper said. The Securities and 10.x- change Commission called it a in which the pay off early invcs- lors will) money from more re- cent investors. The newspaper said the case centers on Home-Slake Produc- tion Co., a Tulsii, Okln., lax- sheltcr oil-drilling company, which llu1 KKC, declared insol- vent last September and is in- vestigating. Martin Brcgman, producer of the police movie ex- plained why lie invested. "We believed the people, we saw the facilities and. when you look at the list, we were in good he said. Comedian Buddy Ifackelt, says he hasn't "the vaguest idea" why he put in Home- Slake. "1 just tell lie says. ".My lawyers anil accountants Inok inlo these filings and ex- plain (hem In me In baby-talk. II' it sounds OK, we go ahead." Show business investors iden- tified by the newspaper and the amounts they invesled included Andy Williams Jack Benny Hock singer David Ciissitly Waller Malthau and Min- nelli Businessmen w h o had a major slake included Fred Horch. former chairman of Gen- eral Klectrie Co.. Waller WriPton, chairman of the First National City bank. Russell McKall, chair- man and president of Western Union, John Martin, executive i.ommiltec chairman of llueblein Co.. and Ralph Ilarl, director and former chairman of Iliieblein, Lawyers included Henry Fox of Washington, Karl Kintncr of Washington. and UiclKinl Slurrs. The trustee in Home-Stake's bankruptcy and lour groups nf investors have filed suits in fed- eral and stale courts in Tulsa a c c u s i n n the principals of wrong-doing, the1 Journal said. Al least one federal grand jury is expccled to convene soon, in Los Angeles or in New York, ac- cording to the newspaper. Oklahoma oil lawyer Robert Trippel. who founded Home- Slake in ll'GS and ran it until he resigned last .summer, has con- sented lo ii court injunction against securities law violations without admitting or denying any charges by Ihe the Journal said. The newspaper said he claims he acted in good faith in raising money for oil drilling and warned investors thai it was risky. Prestigious Kirm The investors charged in their suils that Harry Heller, partner in Simpson Timelier liarllett, a prestigious Wall Street law firm, either knew or failed to exercise enough care lo knuw Ihiit Home-Stake was engaged in illegal activities. Heller de- "Welcome, Mr. President, toi "If we stood still and the Sovi- Nixon's wife. Pat. let MIRVed all their missiles, by was given a bouquet of red! 1981 Ihcy would have a slight j roses. j he said. "Bui if we ---------------------jkecp on building, there's no way 'for them to calch up in numbers the next decade." j The importance of getting an agreement lies in the fact that if the current Strategic Arms Lim- iitalion Talks (SALT) agreement !is allowed to expire in 1977 i without an interim extension in- volving MIRV control, the arms race would be "out of I the official .said. nicd any impropriety. His firm was named a defendant, too, al- though there was no evidence its other partners had anything to do with the deal. The Journal said many inves- tors relied on the fact that big names had put money in the scheme and did not check on its operations. The newspaper said Harvey Garland, operations manager for Home-Stake in Ihe late I9li0s. said it drilled five wells mi a vegetable farm near Santa Maria, Calif., and to make things look more impressive got permission from the farmer lo paint some (if his irrigation pipes uriingc and code Ihcin with nil-field markings. Garland said there was one legitimate well and at least Ihrcc dry IJOO-foot holes. (Continued: 1'age 12, Col. 1.) Today's Index Comics Crossword Daily Record Deaths Kditorial Features Farm Financial Marion Movies Society Sports Stale Television Want Alls ....31 31 :i .....3 Ii ....21 32 R ..10-19 21-26 30 ..31-39