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Cedar Rapids Gazette (Newspaper) - September 15, 1974, Cedar Rapids, Iowa ATTITUDES TOWARD SCHOOL Say They're Ch (In Section A) Section Cedar River Tower Shows Bolli (In Section A) Mostly sunny loduy, highs mid 70s. Mostly fair (oniglil, lows in lower lids. VOLUMK !I2 NUMBER 21 if CITY 35 CENTS CI2DAH RAPIDS, IOWA, SUNDAY, SKPTISMBEIt 15, 1974 ASSOCIATED PRESS, UPI, NEW YORK TIMES By Mk'huel Jensen New York Times News WASHINGTON The Gener- al Accounting Office, following a 10-month investigation, has accused the Federal Power Commission of acting improper- ly in allowing a number of the nation's natural gas producers to raise prices to millions of their customers. It also alleged thai a number of FPC officials had owned se- curities of the companies they regulated, and had failed to comply with the commission's rules designed to avoid conflicts of interest. Nineteen officials of I he FPC were directed by the commis- lies as a result of the GAO in- vestigation, the agency said. 'The GAO did not identify ci- ther the companies that were allowed to raise prices nor the individuals who sold securities It did say, however, that seven of the individuals were adminis- trative law judges at the FPC. In an appendix to the report the FPC denied that the com- mission had acted improperly, and said most of the compliance with conflict-of-in- terest regulations had resulted from inadequate record-keeping procedures. It said all of the po- tential conflict-of-interest situa- tions had been cleared up. Rep. Moss who re- al the a stalement thai sion to sell some of their sccuri-lqucsted the GAO investigation Facinq Yet By Edward Cowan New York Times News Service WASHINGTON For thou- sands of schools, hospitals, fac- tories, office buildings, apart- ment houses and electric utili- ties that burn natural gas, lasl winter's "energy crisis'' cannot be dismissed as history. The Northeast and some other regions of the United Stales arc moving toward a natural gas ''shortage this winter that will be the biggest yet. Industry government experts say the shortage will be still greater in 1975-7G and even worse in the winter of 107C-77. Of the 42 principal interstate pipelines, 17 have told the Fed- eral Power Commission that they will be unable to meet a total of 11.fi percent of their con- tractual delivery commitments during the November-March healing season as against 7.2 percent last winter. The cs- limalccl shortage of 7GB billion cubic feet is 81 percent higher than last winter's. Up In -111 Percent Deficiencies, according to the commission, range all the way up to 40 percent for United Gas pipe Line Co.. which is an im- portant supplier le- the South- east. Serious shortages also arc expected in the upper Midwest. If temperatures fall below normal this winter, driving up consumption of all fuels, large- scale gas users could have dif- ficulty gelling alternate fuels, even though propane, healing oil and heavy fuel oil arc now abundant. A coal miners' strike would make matters grave. In any event, the alternate fuels cost more than natural gas and will saddle department stores, landlords, factories and electric utilities with extra costs which they will seek lo pass on to customers and tenants. No Home Threat Deliveries lo homes and small commercial consumers are not threatened, say government of- ficials, Iml householders un- doubtedly will asked lo keep Ihermoslals at last winter's re- duced level of Wl degrees or less. Incidenlally, local gas companies have said thai, gas- healed homes did reduce con- sumption last winter when heal- ing oil was scarce. Depending on the ability of larger gas users lo secure ade- quate allcrnalc supplies, (In- ability of the' Federal Kncriiyj Administration lo avoid a of allocalion red-tape and.j above all, the weather, there may or may not be school clos iugs, plant and reduced space healing in of lices, factories and stores. The municipally owned Phila- delphia Works began lique-j lying and storing in .Inly! and hopes lo have .'1 billion cubic feel set aside by winter. Even so, said General Manager Ed- ward Hubbard, the utility will have lo operate its high-cost plant to manufacture gas from heating oil for HO lo 100 days this winter. That gas will cost a cubic fool, compared to the GO cents for pipeline gas. Delivery Reduced Ilubbard said that his utilit> had reduced delivery to "inter- ruplible" industrial plants lo four weeks a year and the fore- cast 1076-77 was no service at all. Baltimore Gas Electric Co. notified 200 "inlcrruplible" cus- tomers, many of llicm mills and factories, to expect 30 to 45 days of no gas this winter. 40 to 45 days in 1975-70 and 50 to G5 days in 197G-77. H has also served no- lice that it will hook up no new homes after Feb. 1. 1375. Ry definition, an "inlcrrupli- ble'' customer has an "alter- nate-fuel including combustion equip m c n t and storage capacity. In practice, however, many have not been prepared lo cope with interrup- tions of more 24 or 48 hours, the duration of a cold snap. Until a couple of years ago, some intcrruptible custom- ers experienced no shuloffs. The Butcher The Butcher. Who is the Butcher? The Butcher is Merle Ellis, a native of Sioux Ci'y. a center of the meal packing industry for as long as anyone can re- member. Moreover, his father was a butcher with n shop of his own and it was here that Merle Ellis learned about meal really good p r i in e and choice beef, fattened on corn grown in the surrounding prairies. lie worked his way through col lego culling meal, got into broadcast- ing and television and fi- nally back into culling meal. Now again he is a butcher at the Corner Markel in Tiburon, Calif. He has lec- tured lo groups in the San Francisco Bay area on how lo save money at the meat counter, lie is a reg- ular on the Dinah .Shore show and now is national- ly syndicating a column "The Bulcher" which will appear rogiiU.T- ly in The We think yon will enjoy it. Walrh for it Wednesday in The last October, described the re- port as "one of the most power- ful indictments of a federal reg- ulatory agency within memo- ry." He called for oversight hear- ings by congress, an investiga- tion by the justice department, and a delay in approving all pending natural gas price in- creases. "Most, if not all, of the na- tion's 40-miiiion gas bills have been seriously and adversely af- fecled by the irregularities re- vealed by GAO and shown to be commonplace Moss said in he released with the report. "Cumulative financial exploi- tation of consumers by an in- dustry was aided and abetted by the very federal agency charged w i I h protecting the public against monopoly and profiteer- ng." Natural gas prices have risen steadily in reccnl years, and re- icwcd attempts by the industry :o raise gas prices now are un- terway. The FPC, like some other government regulatory agencies, has been criticized in he past for adopting policies said lo be favorable to the in- duslry il regulates. The 115-page report, tilled "The Need for Improving (lie Regulation of the Natural Gas Industry and Management of In I e r n a 1 Operations, Fedora Power was ob- tained by the New York Times from Moss. The GAO, which is the inves- tigative arm of congress, said in the report thai the FPC had: Improperly granted natural gas producers authority to sell ;as at unregulated prices. In many such cases, it said, the prices charged wure abmc re- gulated levels. Tolerated widespread n o n- compliancc by its officials with its own "standards of conduct regulations" intended to prevent conflicts of interest. Wirephc-lo SIDEWALK INSTRUCTION and Japanese officials spread rolls of paper covered with Japanese characters on the sidewalk in front of the French embassy in The Hague Saturday, giving information to the gunmen inside on how to handle the telephone. The instructions worked and tele- phone communications, interrupted for nearly three hours', were restored with the guerillas. lake timely action rale applications. Failed to on certain with the-result that customers >aid higher prices for natural "than may be just and rea- sonable." The report noted, however, hat John Nassikas, chairman of he commission since disa- greed with some of Ihe criticism of higher prices lhal gas compa- nies were allowed lo charge heir customers. Nassikas ar- ;ued that the FPC had the right lo waive certain requirements in emergency situations, but Ihe GAO did not support his posi- lion. "To accept FPC's interpreta- tion of its authority would, in GAO's view, make a sham of the regulatory the re- port staled. The lengthy report was deliv- ered lo Moss on Friday, accord- (Continucd: Page 3. Col. 2.) feared he would die if hospital- ized. rp. n 11.1 >i uy u cuouui Tkach Nixon s long-time per- ,.lliol, and sonal physician, was arn bo spnt ,0 Scc. -ri hv NHr: Men, horn- ,1 of Brino. gar on Monday for final approv- Doctor: Nixon In Hospital NEW YOliK (AP) Ail- Force Maj. Gen. Waller Tkach said Saturday he against decided Richard Nixon aflcr Ihe former Pres- ident told him, "If 1 go into the liospilal, alive." never come out lie uiu not. sav By Hubert Lindsey New York Times News Service NEW YORK The Ford ad- ministration has drafted the first national criteria for deter- mining which cities across the country will receive federal-aid to build modern, fixed rapid transit systems and which will have lo settle for buses. The standards, which arc ex- pected lo have a major impact on the development of many American cities, were approved this week by senior transpor- cd by NBC News at his home at Andrews Air Force Base near Washington he relurncd 'rom a visit, lo his patient at San -lemcnlc, Calif. "Mr. Nixon's condition lins worsened in the past several weeks despite the Tkach said, and he "is a ra- vaged man who has lost the will lo fight." Tkach added, however, (hat Nixon showed no signs of inen- al imbalance and is rational. But, he said in a ,'iO-minutc in- ervicw with NBC newsman Rowan, phlebitis has janscd Nixon's left leg lo swell ind he is fatigued and very ensc. The doctor said he feared the elision would lead to formation if a blood clot which could odgc in Mr. Nixon's heart. He said the former President s receiving medication for phlc- Pago II, Col. 2.) The criteria are likely to dis- appoint many cilies that expect- ed Washington lo pay 80 percent of the cost of futuristic commut- er lines, such as Ihe billion San Francisco bay area transit system lhal, is scheduled to open in its entirely loclay after Iwo years of limited operation. Settle for Buses Administration officials thai, many communities, be- cause of limits on the federal budget and the high cosl of building subways and other fixed transit systems, will have to gel by with buses unless they provide large amounts of capital from local taxes. The administration plan does not identify specific cities, among the more than 20 that arc now planning or considering major transit systems, that wi qualify for federal aid. Nor does it set minimum standards thai cities must meet in terms of population, residential density, or projected demand on specific commuter corridors. Instead, cities that want fed- ral aid for so-called "fixed guidcway" systems, such as sub- ways, trolley lines, commuter railroads, or elevated automatic "people would first have to provide the government with a detailed analysis of all possible alternative methods of meeting their transit needs. Then the federal Urban Mass nistration would evaluate each alternate and decide which type of transit mode or combination of modes was most "cosl effec- tive" that is, in terms of the community's population, ter- rain, volume of commuter trav- el and other factors, what level service was economi- cally justified. "Cost Effective" government, in effect, Chuckle Mobile-home salesman: wheel-estate- dealer, would commit itself lo pay for up lo 110 percent of the "cosl ef- fective" system. If a city insist- ed on a fancier transit system, il is expected thai the amount promised for (ho "cost effec- tive" system could be used, with local funds, lo build it. According lo administration sources, the criteria are de- signed partly to communities from discourage expecting large amounts of federal aid when, in the judgment of the transportation department, Gazette Leased Wires THE HAGUE, Netherlands Three Japanese Red Army gun- men holding Ihe French ambas- sador and eight other weary hostages under death threat Sat- urday won the release of a comrade jailed in France and an offer of safe passage out of Holland. The government ordered a KLM Royal Dutch Dc-8 jetliner readied at Amsterdam's inter- national airport and a volunteer crew arrived to fly the guerillas lo freedom. A last-minute snag developed when the government refused to allow the plane to leave unless the guerillas laid down their weapons and disclosed their destination. The extremists ap- parently balked. Prisoner Balking? There were reports that the prisoner at the airport was re- fusing to be released lo join th'o Red Army trio, but Ihis was de- nied by a spokesman for Ihe French inferior ministry in Paris, which is in charge of the French end of the case. "We have no indication (hat he the spokesman said. "In fact, he has been in contact with the commandos in he embassy several limes since Saturday morning. "In any case, he is our prison- er and whether he likes it or lot, he be exchanged lo save the lives of the hostages if there is too little potential agreement can be reached." payoff to juslify the high cosl of fixed transit systems. However, they said the cri- teria should, for the first time, give assurances of long-term fi- nancial support to cities that iiave such a need and bring order to the current first-come, first-served approach to alloting transit funds. Ford Press Session or WASHINGTON (AP) A iVhitc House spokesman said Saturday that President Ford is expected to hold his next news conference Monday or Tuesday. On Friday, the acting White .louse press secretary, John Hu- shon, indicated there would be 10 further explanation of the lardon lo former President Vixon until the President holds a news conference. Hushen suggested that the issues of Hie Nixon pardon and amnesty to Vietnam war re- sisters and draft dodgers be pull lo Ford at the next news confer- ence. Money Demand The spokesman said the pris- oner, identified as Yulaka Furuya, had asked for "a large sum of money" before leaving Paris' Sanle prison Friday night, "but of course his de- mand was unacceptable." A Dutch spokesman said Furuya had not asked for money here. The French spokesman said Ihe other terrorists had made a dozen demands since last night, all more or less fantastic and unacceptable." He said these may have included de- mands for money but that the French had no details. Remaining Firm He added that the French government was remaining firm on meeting only the original demand. "We will exchange our Japa- (Coiilinued: Page 3, Col. 5.) WASHINGTON (AP) I1', says aides President Ford, whom served for a month as press secretary, find it frustrating and even demeaning to have lo work through Nixon ad- minislralion machinery. Because of the sudden shift of presidential power, ler- llorsl. says, decisions of the new administration could be translated into reality only Ihrouuji Ihe organisation con- trolled by While House chief of slalf Alexander llaig. "The Ford men naturally find lhal frustrating and even lerllorst writes. "And it. is especially so when ever Ford moved to chance a Nixon-llaig policy." lie made Hie cnmmonls in a new column copyrighted by Ihe Delroil News anil Univer- sal Press Syndicate. The syn- dicate said terllorst will wrili1 three columns a week for the News and that more than 'III newspapers subscribed to Ihe column in the- first 'M hours aflcr il was offered. Terllorsf resigned as Ford's press secrolary a week ago alter Ihe President granted a full (xirdon In former Pres- ident Nixon. In a separate in t i1 r v ie w with Ihe Detroit News, lerllors! said he was disturbed because he had not been consulted by Ford prior In Ihe pardon decision, saying lie could have cautioned I lie President about Ihe problems it would cause He told the News also thai presidential counsel Philip W. Muchen had misled him about the pardon, which led him earlier lo give false informa- tion lo newsmen. Without giv- ing details, he said he had been misled twice before on different topics by different staff members. In his column, lerllorsl wrote that llaig and his as- sociates were not used to Ford's slyle, which he de- scribed as open and candid and not given to being im- pressed by lengthy mcmos and position p.ipcrs. "Hardest hit by Ford's style was lerllnrsl wrote. "Nixon's preoccupation with Watergate had tremendously magnified llaig's authority in Ihe While House and Ihe exec- til ivo branch of the gOVern- mi'lll. "For most of the final Nixon year, as llaig himself would agree, he was the acting Pres- ident in' the United Stales. With a troubled President, drawing more and more wilh- in his shell, everyone in gov- ernment, with Ihe possible ex- ception of Secretary of Stale Kissinger, was working for Al Haix." Terllot's! says lhal as a re- sull of frictions, Ford is s p c n d i u an inordinate amount of lime soothing the feelitiL'S of his loyalists and placating 11 a i g s sensitive time he cnuld hrl- Icr spend on substantive prob- lems of his administration. "Tensions between Ihe Ford men and Ihe Nixon holdovers would make a quantum leap in intensity on somclliini; dealing with Watergate." he writes, "say the disposition of Nixon tapes and documents, or even the removal of the disconnected b n t still present hidden micro- phones in the President's of- lice. "Small wonder then thai some Ford men Mispivl llaii: of unduly influencing Ford lo issue his pardon lo Ivirhard Nixon on the grounds lhal the fnrmcr PrrsKlrnt's plivsiral and emotion well being was al slake Today's index SECTION A Laic News ..................1, 3, n City Hall Holes 1 Deaths 3 Editorials B 9 Report Card............. Accent On Youth 3J SECTION B low.1 News 1-13 Polilicdl Cdli'iidrtr 3 Frank Nvc'i Political Notes Television Tablo Marion U Food........... 11 mulcting 14-17 MovICi 18-19 Record 18 Social Around Iho TO' [toll.-. Travel s Sporh O.tltloor Iowa Financial
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