Cedar Rapids Gazette, September 14, 1974

Cedar Rapids Gazette

September 14, 1974

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Issue date: Saturday, September 14, 1974

Pages available: 32

Previous edition: Friday, September 13, 1974

Next edition: Sunday, September 15, 1974

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All text in the Cedar Rapids Gazette September 14, 1974, Page 1.

Cedar Rapids Gazette (Newspaper) - September 14, 1974, Cedar Rapids, Iowa 'mid turning warmer through Sun- duy. Lows in mill 40s. High Sunday In lower 70s. VOLUME 92 NUMBER 2411 CITY FINAL 15 CENTS GUNMEN CEDAR RAl'IDS, IOWA, SATURDAY, SEPTEMBER 14, 1974 ASSOCIATED PRESS, UPI, NEW YORK TIMES Gardner To DOT DBS MOINES Gov. Rober Ray Saturday announced th appointment of Donald K Gardner, 51, Cedar Rapids Re publican, to fill vacancies on the newly-created state Departmen of Transportation (DOT) and the Iowa highway commission. In both cases Gardner, former Cedar Rapids parks commis sioner and presently chairman of the city's airport commission will succeed Harry Reed, Win terset Republican, who resignei recently, citing the possibility o a conflict of interest. Donald Gardner Ray named Gardner to com- plete Reed's unexpired terms, which run until July 1, 1975, on the highway commission and until July on DOT. Phase Out DOT is taking over responsi- bilities of the highway commis- sion and all others with those of other stale transportation agen- cies, which will phase out of business on June 30, 1975. DOT began operations last July 1. In Cedar Rapids, Gardner told The Gazette: "My initial reaction is one of pleasure and gratitude that Gov. Ray saw fit to select me for these all-important posi- tions. "The challenge and problems are of major proportions and I look forward to dedicating my time and effort and anticipate making a creditable and worth- while contribution. "Initially, I have many more questions than answers regard- ing the problems that face the new organization. Will Resign "I will resign from the Cedar gapids airport commission in order to properly fulfill my duties with DOT and the high- way commission and I will give up any and all activities that might be remotely in conflict." Apparently this means Gardner will withdraw as Re publican candidate for Linn county supervisor, although may be impossible to remove his name from the Nov. 5 elec- tion ballot at this time. It may mean, also, lhat he will have to resign as Iowa rep- resentative of McFadzean ant: Everly Associates of Winnclka, III., a park consulting firm. As a highway commissioner; White House Delays Nixon Tape Transfer WASHINGTON (AP) At Ih request of the Watergate speci prosecutor, the White House ha agreed to halt at least temp rarily the planned transfer Richard Nixon's tapes an records to Nixon's control, informed source said. The agreement by Philip B chen, counsel to President For came Friday during a two-hou meeting at the White Hous with Henry Ruth, deputy speci; prosecutor, and Phillip Lao vara, counsel to the speci; prosecutor. The two prosecutors objecte that the agreement betwee Nixon and the governmen would hinder the continuing in vestigation of the Watergat conspiracy, the source relate! and they asked Buchen to negi tiate another agreement wit Nixon that would be less restri live from their viewpoint. Buchen declined, according 1 Gardner be paid propor- tionally on the basis of a annual salary for the last 9'.4 months of Reed's term. As a DOT commissioner, he will receive expenses only until that agency goes full time next July 1. The 1975 legislature is expecl- ctl to set salaries of DOT members, to start July 1, 1975, during its session. 1'ark Service A lifelong Cedar Rapids resi- dent until accepting a post in (Continued: I'age 2, Col. 1.1 Today's Chuckle Gelling a husband or n wife is like buying an old house. You don't see it the way it is but Uic way you think il's go- ing lo be when you gel il re- modeled. CIWHOM Nixon Doctor Reports New Clot in Leq SAN CLEMENTE (AP) new, painful blood clot lias de veloped in the left leg of Ricl ard Nixon, and his doctor sai :he ex-President is sufferin iom "severe strain and physic al fatigue." However, the doctor, Ai Force Major Gen. Walter Tkach said Nixon is "mentally alert and hospitalization has bee ruled out at the former Chie ixecutive's request. The new clot apparently i not considered extremely ser: jus because Tkach took an ai orce jet back to Washingtor rriday afternopn. A spokesman I the Nixon home said the phy ician would return in a wee] or further examination. Working Each Day Tkachs' statement, releaset by a Nixon aide who cad it to newsmen by tele hone, said: "I have found the former 'resident to be suffering from severe strain and physical fa- tige, but he is mentally alerl and has been working at his of- fice at home each day. "The leg is swollen and pain- ful. The clot from the earlier phlebitis, which is still present causes the former Presidenl periodic pain. "Serious consideration was given to hospitalization, but il has been ruled out at this time based on former President Nix- on's wishes. Won't Call Him "The former President will continue to receive medication and will be under doctor's care, and an evaluation will be made on a weekly basis by Dr. Lund- gren and myself." Tkach did not say how serious the clot is, and the aide re- fused to call the former White House doctor to the telephone. Dr. John Lundgren is a Long Beach internist who specializes in cardiology. lie has been the Nixon family doctor for many years. Nixon has been suffering from phlebitis, an inflammation of a vein, for several months. this account, but instead agreei that control of the materia would not shift to Nixon unti further discussions with the prosecutors. Pact Terms Under the terms of the agree ment announced Sunday at the same lime Ford pardoned hi predecessor, the tapes and doc uments "would be transferrei from their storage cache in llr White House basement to a gov ernment building about 10 mile from San Clements, Calif, where Nixon maintains his es tate. For a period of three years Nixon agreed not to withdraw any of the originals of the docu ments in storage, but access to the materials was expressly li mited to him or to anyone au thorized by him. Ford held a strategy and pie lure-taking session with 11 Re publican candidates for gover- norships at the White House Friday. The Washington Star. News Saturday quoted Gov, Winfield Dunn of Tennessee as saying Ford told the group he "might be able to explain in the not-too-distant future a number of things" about the pardon. The newspaper said Ford may give a personal explanation nex week and may reveal confiden lial information that figured ii nis decision, according to politi dans who met with him." Two Efforts More details emerged abou S'ixon's last days in the White House. Frank Strickler, an attorney 'or H. R. Haldeman, confirmed lhat his client made two last- minute efforts lo win pardons "rom Nixon before he resigned. The first attempt, Aug. 7, came in a personal call from ialdeman to his former boss, lowever, Nixon decided Alex- ander Haig, Haldeman's isucces- or as While House chief of itaff, should take the call. The next day, jusl hours be- ore Nixon went on nationwide elevision to announce his resig- ation, James St. Clair, Nixon's V a t e r g a t e lawyer, invited to submit pardon pro- iosals. Speaker's Likeness Tclcphoto Sculptor Fredda Brilliant displays her clay mod el'of a bronze bust of Speaker of the House Carl Al- bert to Albert at the Capitol. The bust was commissioned by St. Peter's college of Oxford university, England, and will be permanently displayed there. Albert attended St. Peter's as a Rhodes scholar in 1931-34. Loophole Allows Oil Overcharges Two Proposals Slrickler and John Wilson, an- ther Haldeman lawyer, rushet ivo proposals lo the While louse. One would pardon every- ne connected with Watergale The other would also have in luded pardons for those who Mated draft laws during the 'iclnam war. II was unclear why St. Clair elicited the proposals, and he eclined comment. At any rate, Nixon did not rant the pardons. Decline Noted in Industry Output WASHINGTON (AP) The ederal Reserve Board Friday oported an 0.5 percent decline its industrial production idex for July in August. It al- ibuled much of the decline to rikes in scattered industries, lainly iron, coal and copper. Agnew in London LONDON (AP) Former ice-president Agncw is in Lon- m for a three-day visit. WASHINGTON (AP) A oophole that was deleted from first draft but later inserted in published set of oil allocation egulations without proper au- horization may have cost the ublic more than million in vercharges, a Federal Energy Wministralion spokesman says. The loophole could be in- terpreted lo allow companies to collect twice for the same oil, FEA General Counsel Robert Montgomery said Friday. "Who did what is he said. "We're trying to recon- struct what happened." Just, Enough Eight to 10 major oil compa- nies are believed to have used the loophole lo register alleged costs lhat may total mil- lion, he said. Those costs may later be passed along as higher prices lo consumers. The loophole came in a provi- sion allowing refiners to boost prices just enough to pass along increases in the cost of the crude oil they were refining. Producers were required dur- ing the Arab embargo to share 'avorable supplies of crude oi: with refiners whose supplies were inadequate but the regula- Countries' Boost in Taxes, Royalties Spells Higher Prices VIENNA (AP) Gasoline and heating oil will cost almost a penny a gallon more as a result of the decision of major oil- producing countries to raise royalties and taxes on crude. Representatives of the Organi- zation of Petroleum Exporting Countries meeting here an- i o u n c c d Friday that all member states except Saudi Arabia were boosting royalties and taxes by 33 cents a barrel on their oil exports, effective Oct. 1. The hike would raise the iveragc revenue for each gov- ernment to a barrel. Th OPEC ministers said Hie like should come out of oil com- >anies' profits, but company ob- icrvers at the conference said any increase would be passed along to consumers. Most com- panies have clauses in contracts with their customers making such increases automatic. Can't Block Them Jamshid Amouzegar, the Iran- ian delegate and an unofficia spokesman for the conference admitted that oil-producing gov crnments have no way lo block consumer price increases. In announcing the increase, the OPEC stressed that "this ad- iuslmenl should nol be jassed lo consumers, taking nto consideration the excessive nargin of profits still being nade by the international oil majors." OPEC said it would leave the Zzzzzzzzzzzzzzzzzzzzz Seeks Notice posted price of oil al levels set last January. The posted price is the artificial figure on which OPEC members compute their taxes and royalties, and leaving it unchanged was evidently in- tended to further pressure com- panies into absorbing the hike. Amouzegar said OPEC decid- ed to hike taxes and royalties to counter a 14 percent inflation rate in imports from industri- alized countries. Saudi's Stand OPEC warned that as of Jan- uary the inflation rate in such countries will "automatically be taken into account with a view lo correcting any future deterio- ration in the purchasing power of the member countries' oil Saudi Arabia, the world's big- ;cst oil exporter, did not partici- ple in the OPEC decision cause it is negotiating partial or' SAN DIEGO (AP) Tele- phone bookworms here will soon discover (he last entry in the new San Diego while pages is Zzzzzzzzzzzzzzzzzzzzz, the attention-getting listing of Citizens in Action. "When people sec we're the last listing in the hook, we fig- ure they will call to find out what we said Charles Gordon, 42, Ihp Xz's master- mind. Gordon says this group is a non-profit organization de- signed lo get citizens com- plaints to the right public of- finals. I Callers attracted by the Xzs there are 21 of them hear a recorded message ask- ing them to write a letter to a public official about an issue that concerns them and send it to a Lemon Grove posl of- fice box along with Then Citizens in Action makes four copies and sends them in packets of similar let- ters to four affected officnls. The originals, also packaged together, go to the officials specified by the writer. "We store them all until we have 200 or 300 al a Gordon said. "This is belter than having onc letler trickle in at a time. "We try to get people to write a letter nt night instead of watching television. If let- ters were well written and directed to the right places, perhaps the legislators would take heed and see Hint we're not going to let them walk all over us." Citizens in Action, which lakes no positions mi issues it- self, got about 400 letters a week during the impeachment hearings, Gordon said. The group slarlcd about 18 months ago "when things got really sticky aflcr Water- said Gordon, who is as- sisted by three friends. The plan has been publicized by small ads in community news- papers and on talk shows. Gordon, a Scrabble fan fas- cinaled by words, said lie came up with Hie Zz's listing, which will be in new telephone books distributed next week, as a way of gelling attention without spending much for ad- vertising. "I called the company and asked them how many 7, let- ters I could have on a lie explained. "They said 21 and I took it like that." He said there's onc service the group won't, provide "We won't send any threaten- ing or oddball letters." lions allowed them lo recover the cost of this crude from those refiners. So large companies thai both produced and refined crude were allowed to first collect cost hikes from other refiners they sold oil to and then from cus- tomers who bought their owi: refined products. But the Jan. 15 regulations picked up an unintended phrase allowing the price increases lo reflect the costs "of all avail- able crude oil prior to making crude oil sales to comply with this program." Seeming Meaning Montgomery said this ap- peared lo mean the producers could sell to other refiners as required and recover the costs trom them in the process, but then include the cost of that already-sold oil when calculat- ng the permissible price hikes on (heir own products made 'rom the balance. Montgomery said Phillips Pe- roleum, Mobi'l Oil and Gulf Oil were among the companies which apparently used the "dou- alc dip" in their accounting. He said Phillips had not raised its )rices because of it. Montgomery refused to name other companies that ir.ay be in- 'olvcd until the FEA completes in audit to determine the extent of the abuse. Meanwhile the justice depart- ment is investigating the role of a Phillips employe, Robert Bowen, in preparing the regula- :mbassy THE HAGUE, Netherlands (AP) Three Japanese terror- ists holding the French ambas- sador and eight other persons nostage in the French embassy agreed Saturday to accept a mediation offer by Egypt's en- voy to Holland, the government announced. The gunmen had threatened to kill the hostages unless an arrested colleague was turned over to them. Police were hold- ing him at an airport. The mediation offer was made by Ambassador Galal Ezzat Abdel Wahab Ezzat, who speaks Japanese fluently. Telephone links broke down earlier between the terrorists and police but were restored after about three hours. Off Hook Officials said the terrorists left their phone off the hook and were persuaded to put it back after authorities instruc- ted them to do so by scrawling nstructions in Japanese on rolls of paper on the sidewalk. The terrorists, members of the Japanese Red Army which massacred 26 people at Israel's Lod airport in May, 1972, threat- ened to kill their hostages one by one if an imprisoned Japanese in Paris WAS not turned over to them by 3 a.m. Saturday, but the deadline passed without ap- aarent incident. A second deadline 30 minutes ater passed as well and the !ourth floor remained quiet. At one point witnesses said they .bought they heard a shot com- ng from the floor, but police said they did not believe shots were fired. Aramco American-owned company. But the OPEC communique said Saudi Arabia had backed coupling any increase in taxes or royalties with reduced posted prices because "the increase in he average government take is justified only on the basis of excess profits realized by the in- crnationnl oil companies." OPEC said some unidentified ncmbers would roll hack pro- luction levels lo .sustain prices. ie issue has led lo a split be- ween poorer members which vant full production and I members like Abu Dhabi which prepared to ration their rc- j. serves. j He was hired by the Federal an exchange program Two Wounded Earlier, an exchange of gun- 'ire between police and one of .he gunmen inside the embassy shortly after the takeover left a policeman and a policewoman wounded. Meanwhile, the man whose re- icase the guerillas had demand- ed was flown from his cell in to Holland's Schiphol In- ternational airport. Dutch police said the man, dentified by French authorities as Yutaka Furuya, had been in contact with the terrorists by elephone but that for the time being he would remain at the airport. He was arrested July 21 at Orly field near Paris and found o be carrying three different >assports and in counter- eit ?100 bills. At the time he old police he had been ordered ly the Japanese Red Army to :idnap Japanese in Europe to ;ain release of Japanese revolu- ionaries. Demand Jet The terrorists demanded a lus to take them and the host- igcs to the airport, and a fueled etliner with a pilot and co- lilot ready to fly them to an un- liscloscd location. They said :ic hostages would be freed fler they reached their destina- ion. The Japanese ambassador in lolland, Shigeru Hikota, es- iblishcd a command post in the nearby U.N. embassy and negotiated with the terrorists. olal nationalization of the for "one "year Tllc laic Friday (Continued: Page 2, Col. 4.) Today's Index Comics Church Crossword Daily Ilccord Deaths Editorial Features Financial Alarinn Movies Sports Television Want Ads when the terrorists stormed into the embassy, rushed to the fourth floor and took Ambassador Jacques Scn- aril, five employes and three visitors hostage. Police quickly surrounded the building, took control of the first three floors and dispatched sharpshooters to .surrounding rooftops. Armored cars were [brought into the area and civil- ians were told to evacuate near- by streets. Nolu Tossed Out The terrorists threw a note from a window .innniinciiig llioir demands. The note .scribbled in (Continued: Pago 2, Col. ;

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