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Cedar Rapids Gazette Newspaper Archive: September 19, 1974 - Page 1

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Publication: Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

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   Cedar Rapids Gazette (Newspaper) - September 19, 1974, Cedar Rapids, Iowa                                Weather- Climicc tut ruin lo- nlBUt Clearing liy Fri-  arties and news media." Church tried to interject, say- ng, "I will simply make the statement that the present mili- ary government in Chile was lorn in a bloodbath and itself does not allow opposition, think it is a sad thing..." Fulbright cut him off bruskly >y recognizing Sen. Percy (R- III.) to question Kissinger on dc- iente. Concerning detente, Kissinger said he expects to reach an un- derstanding with the Soviet Un- on allowing freer emigration from that nation. But, Kissinger said freedom of emigration should not be a pre- condition for stronger economic ,ies with the Soviets. Such a pol- (Continued: Page 3, Col. 3.) Rodino Suggestion WASHINGTON (UPI) Rep. Rodino (D-N.J.) has urged fed- eral authorities lo tighten im- migration control to keep drug smugglers out of the U.S. Sewell By Ford Clark CORALVILLE The pres- ident of a Coralvillc oil drill- ing company lashed out angri- ly Thursday morning al a stale order requiring the com- pany lo return money lo in- vestors in the corporation. Clarence E. Sewell, 47, said, "The politicians, state of- ficials, have harassed us; slood us up against Ihe wall. "But we arc going to make Iowa a major oil-producing slale dospilc them." Scwell's angry comments c o n c c r n e il an agreement signed by Sewell, as president of Blazer Corp., and Iowa Supl. of Socurilics Marshall Ilunzleman. The a g r c e m c n I stales Blaster Corp. shall offer re- funds to all investors in Ihe slate before selling any more slock. According lo Sewell, "Possi- bly could be returned lo investors. As of this morn- ing, not one of these investors Million Bond Sale Told by IE Iowa Electric Light and Pow- er Co. Thursday announced the sale of million aggregate principal amount of First Mort- gage Bonds, Scries N, 11 per- cent due Sept. I, 1989, through Salomon Brothers and Merrill Lynch, Pierce F c n n e r and Smith, Incorporated. Tlie sale was made to a group The sale was made lo a group of institutional investors by pri- vate placement. The proceeds will be used to reduce the com- pany's outstanding long-term notes payable to banks, which currently bear interest at a higher rate annually. WASHINGTON (AP) The special Watergate prosecutor's office asked the Federal Bureau of Investigation Thursday to serve a subpoena on formei President Nixon in the Water gale cover-up trial that begins Oct. 1. A spokesman for special pros ccutor Leon Jaworski said the subpoena is returnable on the day the trial begins. He said the FBI was asked to deliver it to Nixon at his San Clemcnte, Calif., home because of its liaison with the secret scr vice. Earlier Nixon's health was in- jected into the cover-up trial foi the first time. Attorneys for John. Ehrliclv man Wednesday asked for a 60 lo-90-day delay in'thollrial. They said it will take at least that long for Nixon lo recover sufficiently from menial depression am phlebitis in his left leg to appea: as a defense witness. Ehrlichman's subpoena for the former President's testimony was delivered lo Nixon's San Clemcnte estate by a U.S. mar- shal a few weeks after Nixon resigned as President but before there were widespread reports about his failing health. The (rial of Ehrlichman and five co-defendants is expected to last about three months, but (here has been no indication when Nixon might be called to testify. Ehrlichman's lawyers said Nixon's "personal appearance al trial is indispensable lo Mr. Ehrlichman's defense." The former President's attor- ney. Herbert J. Miller, has al- (Continued: Page 3, Col. 7.) WASHINGTON (AP) The senate Thursday rejected Pres- dent Ford's plea to delay 5.5 percent pay raises for 3.5 mil- ion federal. workers for three months. The 64-35 vote means the raises will go into effect Oct. 1 as originally scheduled, since Ford's order to delay them could be overturned by majority vote of either the house or sen- ate. It was his first major con- gressional defeat since becom- ng President on Aug. 9. Ford had proposed the delay in an effort to curb inflation but critics said the stay, which would have saved about million, would have had little or no impact. "Cosmetic Approach" Senator Stevens (R-Alaska) called the three-month deferral "a cosmetic approach" to the anti-inflation battle. "You're not going lo stop in- flation or even slow it down with this kind of said Sen. McGee However, Sen.' Griffin (R- Mich.) said the senate action would "open the floodgates and make it very difficult for the President to ask any other group to exercise restraint." "You've got to start some- Griffin said. Ford made a final appeal to the senate Wednesday, declar- ing "I see this vote as the first test in our common effort to put our economic house in order." "Set Example" The affected workers include while-collar civilian employes and military personnel. Ford asked the senate to help "set an example of fiscal re- straint for the rest of Ihe na- tion" by upholding his action. "This is one of the most sig- nificant votes that the congress is being called upon1 to take'in the fight against inflation. I am confident that the senate will act responsibly in the best inter- ests of all he said. had asked for their money back." Blazer Corp., the agreement said, lias been raising money by selling slock "certificates of interest in oil, gas or min- ing leases" without first regis- tering them with Ihe state. Sewell lold The Gazette Thursday, "The Iowa law is so vague and gray on this point that it's impossible to open new mineral resources without having a staff of 20 lawyers to fighl stale bureau- cracy and politically. "But, we're going lo beat them yet. We have a second hole drilled near Grant to a depth of feet. All signs a r e extremely good. We should know just how good in the next few days. "My first impulse, if this well comes in as expected, is to tote a few barrels up (hero and let Ihe politicians see for themselves." Sewell conceded a first well drilled near Grant in July, while showing oil traces at 2.000 feel, has "not been Ihe strike we anticipated. "But we arc not another fly- by-night promoter that's going lo take off south with our in- vestors' money. Twenty-five 1> c r c e n t of our financing comes from AMOCA, a sub- sidiary of Standard Oil of In- diana. "We have invested of our own money and we're going lo see this thing through." In connection with Ihc Blazer-stale agreement, a cease and desist order also was issued, barring Blazer from further sale of Ihc se- curities until they are regis- lercd with stale officials. Sewell reiterated his con- fidence in Ihe coming oil strike nt Grant by saying, "We've ordered bottles in Ihe shape of an oil derrick. We are going to take the first 21 of oil from (he well, put them in Ihe hollies, and sell them for each." In Damages DAVENPORT (AP) An Iowa City man who served 17 years in prison on a murder conviction before he was re- leased on a technicality has filed a million damage suit, claiming lie Was held illegally. Ernest 71, filed the suit in U. S. district court in Davenport. Tripled contends lie was ille- gally imprisoned and was ad- ministered an overdose of drugs while in jail. Me asks damages on each charge. "There are six defendants, including three Sioux City said Preston Penney, member of an Iowa City law firm rep- resenting Not Revealed Names of three defendants couldn't be revealed Thursday, Penney said, because he wasn't (Continued: Page 3, Col. 7.) Today's Index Comics .....................33 Crossword..................33 Dally Record ................3 Deaths ......................3 Editorial Features...........8 Farm ......................32 Financial..................31 Marion .....................12 Movies.....................30 Society ..................18-20 Sports ...................25-30 Television ..................22 Ads ................36-41   

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