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Cedar Rapids Gazette Newspaper Archive: October 4, 1974 - Page 1

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Publication: Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

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   Cedar Rapids Gazette (Newspaper) - October 4, 1974, Cedar Rapids, Iowa                                Weather- (.'luiiRT rain (u- ii i K ll I and Snlnrday. Lows tonight, mid 50s. Highs Saturday, 70 In 75. VOLUME NUMBER CKDAK ItAl'IDS. IOWA, FRIDAY. OCTOBER 4, 11174 ASSOCIATED PRESS. IJPI, CITY FINAL 15 CENTS YORK TIMES Saxbe: Jail LAKE PLACID, N. Y. (AP) Attorney General Saxbe asked congress Friday for legislation allowing anti-trust violators lo be jailed for as long as five years, inslead of the present one-year maximum. He urged judges to send lax evaders and anti-trust violators lo jail rather lhan impose small fines and probation. "Price fixers should go lo he declared. "The man who evades taxes should go lo prison. They are no belief than the car thief or the burglar or the robber And it is about lime that all of Ihe federal judges began realizing that." The attorney general's re- marks were in a speech pre- pared for a meeting of the As- sociated Industries of New York. Agnew Case Although condemning special treatment for tax evaders and other while collar criminals, Saxbe acknowledged that the justice department accorded just such treatment to Spiro Agnew when Elliot Richardson was attorney general. The former vice-president re- signed his office and pleaded no contest to a single count of tax evasion. He was sentenced to three years of unsupervised pro- bation and fined In exchange, the department brought no other charges against him in connection with his alleged involvement in a long-running Maryland political kickback scheme. "I cannot second-guess my predecessor's Saxbe said. "The country probably agreed he did the right thing, for it would have been an ag- onizing ordeal if a vice-president under indictment would have succeeded to Ihe presi- dency." "Tired of Exceptions" But he continued, "I am tired of exceptions in the process of justice. If the while collar criminal is given favored treat- ment, the system of justice begins lo break down." Saxbe said federal court records for the 197-1 fiscal year show that 1.128 persons were sentenced for income lax fraud but only 392 went to prison. Only 94 were sentenced to more lhan a year. In Ihe same period, 26 persons were senlenced for violating an- ti-trust laws and only five were sent lo jail. In all five cases. Ihe sentence was 30 days. By contrast, Saxbe said Ihe records show that 1.612 were sentenced for auto theft and 1.142 were sent lo jail for an average of three years. "II is apparent we have two systems of criminal justice separate and he said. "More Serious" "I do not suggest that the car thief should not be sen- tenced lo prison He should but so should the while collar criminal, who has probably com- mitted a crime infinitely more serious." Saxbe vowed that the depart-; ment "will generally seek pris-j on terms" for anti-trust viola-! tors. "I believe congress should consider raising the maximum up lo five from the; present one-year, he added. I Saxbe noted that while a rob- ber may steal from one vic- tim Ihe white collar crook "can j set into motion a conspiracy] lhat can rob thousands of citi-[ of hundreds of millions of dollars" through illegal monopo- lies and rigged prices. Will Ask Americans To "Bite the Bullet" WASHINGTON (AP) Pres- ident Ford has ruled out any gasoline tax increase and is firmly opposed lo gasoline ra- tioning but will ask Americans lo "bite the bullet" in an anti- inflation program with manda- tory features, his spokesman said Friday. Press Secretary Ron Nessen said Ford will disclose "pro- posals lo help alleviate prob- lems with credit and interest rates" in an address to a joint session of congress at 3 p.m. CDT Tuesday. Nessen would neither confirm nor 'deny speculation that Ford would seek some form of tax increase. But he quoted Ford as telling Republican congressional lead- ers Friday that there are "hard choices we and the American people have to make as we bile Ihe bullet on curbing inflation." "Reduce Waste" Nessen quoted Treasury Sec- retary Simon as telling the G.O.P. leaders that the Fore program "in its most general terms will require and encour- age Americans lo save more reduce waste and produce more.' Melvin Laird, a friend and in- formal adviser of Ford, called Thursday for adoption of stand- by authority for gasoline ration- ing, saying it will be needed sooner or later. Gasoline price cuts were an- nounced by Mobil Oil Corp. and Amoco Oil Corp., a division of Standard Oil of Indiana. Mobil reduced prices two cents a gallon and Amoco made a three-cent cut. Amoco 'also lowered its price on No. 1 and No. 2 distillate oil three cents a gallon. The cuts were effective immediately, and were in line with federal regulations linking wholesale gas prices to firms crude oil costs. Laird Call Both companies confirmee that cost cuts for motorists arc certain only at company-owned stations. Independent dealers will pay lower wholesale prices but they determine their own pump prices. Laird issued his call foi standby rationing authoritj while moderating a conference on world oil problems. "Sooner or later a rationing system is going to be he said. He said some ?100 billion per year is flowing to oil exporters and in six years the transfer nay amount to billion, more lhan the value of all stocks list- ed on the New York Stock Ex- change. So Laird predicted lhat even- tually rationing will be neces- sary, coupled with taxes lo dis- courage energy use. lowan Sees Price Cut Short-Lived DES MOINES (UPP Thc itwo-lo-three-cenl reduction in retail gasoline prices across Iowa will bo short-lived, with icosls likely lo soar to the 70- that they aren't selling gasoline like they did Everett said. "Hence we have a reduc- tion in prices. But the prices will go up to around 70 cents per gallon next spring because of several factors." Among the reasons he cited were inability of major oil refin- eries to produce enough gaso- line to meet the demands of the nation's molorisls this winter, and the need to produce more healing fuel. "I hope I'm wrong but I still believe there will be another gasoline shortage this Everett said. "I know some peo- ple think we're crazy for believ- ing this, but just you wait and see." Everett, who operates his own station in Otlumwa, was again sharply critical of the adminis- tration for allowing gasoline prices to rise so rapidly. "Bunch of Idiots" "They are a bunch of he said. "They really gel me boiling. They give things away lo foreign countries and then turn around and lell Americans they must tighten their bells and sweat. They have allocated millions of dollars for research- ing the sex life of southern Afri- can frogs." Everett said there appears lo be little lowans can do lo ward off a possible increase in gaso- line prices, which he says does not include the possibility of en- actment of a tax increase. "There are a lot of things we can recommend and that would take hours and hours lo he said. "But I don't know what good it would do." He said at present he is deal- ing mostly in services sucii as car maintenance and repair, and predicted that, unless the situation improves, more sta- tions will rely on that trade for a majority of their business. Some Local Prices Drop, Others Same Some major oil companies planned gasoline price reduc- tions Friday in Ihe wake of a three-cent cut announced Thurs- day by Amoco, but some parently aren't planning any de- creases and others say they lave already cut prices. A poll of East Iowa distribu- tors revealed that Shell will put a two-cent reduclion into effect at midnight Friday, while dis- tributors of Phillips products ex- pected a reduction announce- ment Friday afternoon. "They are looking at said Ray Slruve, assistant manager if Nordstrom Oil Co., Phillips distributor. "I'm hoping we'll 'icar something today." Already Dropped Spokesmen for Sinclair and 5kelly said those companies al- dropped prices, Skclly by 2.7 cents the first oF this week and Sinclair by two cents two or three weeks ago. Conoco and Texaco spokes- men or dealers said they knew of no imminent reductions, al- QUAKE SCENE The earthquake which rocked Lima, Peru, buried this car beneath concrete blocks and debris. (More photos on picture page.) No Yielding to Terrorists Seen SANTO DOMINGO (AP) Terrorists holding seven host- ages in the Venezuelan consu- late for a week have scaled down their demands, but flic Dominican government is ex- peclcd to hold out for surren- der. Dominican officials and for- eign diplomats said they bc- livcd Ihe guerilla retreat strengthened the government's determination not lo compro- mise. These sources said they thought the terrorists would eventually agree lo free Ameri- can diplomat Barbara Hutchi- son and the other hostages in exchange for conduct abroad for themselves alone. Quake Toll Put of 44 Killed, 806 Injured LIMA, Peru -Officials Friday put the official death toll in Thursday's earthquake at 44, with 806 injured and damage in the millions of dollars. Tens of thousands were homeless'. The death toll was considered surprisingly light in view of Ihe intensity of the quake which jolted Peru's central pushed back Pacific waters and demolished hundreds of adobe huts and brick buildings. Thc military government of President Juan Vclasco Al- varado, marking its sixth anni- versary in office Friday, met in emergency session late Thurs- ocean day to coordinate rescue opera- tions. Two Minutes The National Geophysical In- stitute said the epicenter of the earthquake was in the Pacific 30 o 50 southwest of Lima. The tremor registered 7.8 on the 10-point Hichter scale. It shook the capital of 3.5 nillion people violently for two ninutcs and 15 seconds and was 'ell there more slrongly lhan a 1970 quake that devastated the lorthern half of Ihe country and eft dead. Peru, situated on one of the argest geological faults in Ihe world, experiences some 200 earth tremors a year, most of them loo small to be felt by any slrumcnts. Filly percent of the houses in large suburbs oF Lima, like Chorrillos and Molinas were re- ported destroyed or heavily damaged Thursday. Sirica Opts For 27 Jury Challenges WASHINGTON (AP) U. S, District Judge John Sirica Fri- day issued an order giving pros- ecution and defense attorneys ir (he Watergate cover-up trial a combined total of 27 prccmplory challenges of jurors. The judge allowed attorneys for Ihe five defendants a tolal of 15 challenges for Ihe regular jurors and three additional for the panel of six alternates. The prosecution will be al- lowed six challenges for the reg- ular panel and three for the al- ternates. Lawyers need not cite any reason when dismissing a poten- tial juror through u s e of prcemptory challenge. Defense Resistance In his order Sirica disclosed that defense attorneys had re- WASHINGTON (AP) The [Senate Friday passed and scut to the house a bill lhat would give the government custody of former President Nixon's of- ficial tapes and papers. Before passing the bill, 56 to 7, Ihe senate rejected three at- tempts by the Republican lead- ership to delay or modify the measure, which is designed to nullify an agreement giving Nixon custody of the documents. A 51-15 vole defeated a motion by Sen. Hruska (H-Neb.) lo send (he bill lo Ihe judiciary commillee for hearings. On a 52-14 roll call the senate defeated a substitute bill by Iru.ska lluil would have de- clared the papers of all recent and future Presidents :and of vice-presidents and members of congress lo be public property. Krvin Haps Hruska Then, a Hruska amendment ;imply preventing destruction of Nixon's papers and tapes failed, 49 lo 15. Senator Ervin (D-N. C.) said Hruska was attempting lo kill the bill. "If I wauled to prolong the Watergate cover-up, I'd vote to refer this bill to the judiciary Ervin said. "And if I wanted lo assist in hiding the truth from the Ameri- can people, I'd vote for the sub- slilulc." he added. Hruska and Republican Lead- er Hugh Scolt said (he bill backed by Ervin is an unconsti- tutional response lo the emo- tions aroused by Watergate. The bill is aimed at blocking destruction of any of Nixon's pa- pers and tapes, which are deemed to contain I evidence necessary for Watergate trials and for providing the public the full story of the scandal. Destruction Provision Under terms of the Nixon- Ford agreement, which was dis- closed when Nixon was par- doned, the former President would control access to the doc- umenls. lie could d-cstroy any of his papers after three years and Jobless Rate 5.8% 'iPor Two-Year High WASHINGTON (AP) Wide-i President Ford, who will send spread layoffs pushed Ihe na-ihis economic program lo "The court was willing, and isjNixon's death, and under no cir- tion s unemployment rale up to jcongrcss wcck h.is in. is like a (Its. stated dial- cumstances any later lhan Scpl. 5.8 percent of Ihe work a phologiapher said. )n dofcml.-mls m-ovid- 1011.1 fused lo agree to allow Ihe .lftci. fivc ye.M.s_ ccution more than six chal- lenges. But Ihe tapes would have lo be destroyed immediately upon and isjNixon's death, and under no cir- 5.8 percent of tin last month highest in two and a-half years, the government re-'FJUKtod public service job pro- Idicalct! he will propose an ex- i photographer said. 350 Miles Away ported Friday. Another joined uncm- able stale and local govcrn- gram using federal funds lo en-j. 'Hie earthquake struck at ploymcnt 7'0lls in September, bringing (he total to a seasonal- ly-adjusted 5.3 million. Ihe labor department said. niciils to hire the unemployed. Mosl of Ihe new unemploy- ment last month was among [women 25 and older and among The rate increase, from 5.4 [teenagers, particularly males 18 jercent in August, was the larg-jand 19. Declining male college a.m. and was felt in the heart of Ihe Andes at Cux.co, 350 miles cst monthly rise since .lanuarv.lcndance contributed lo the when it was also 0.4 percent. higher voulh joblessness, lheifloor of, tll In small cities to the south, like Canctc, lea and Chinca, hundreds of old adobe homes were reduced to rubble. The quake knocked off the lop Unemployment higher youth joble b e e nigovernment said. icngcs lo the defendants provid- i, 19114. cd there were no objections to a! Such destruction would de- proportionate increase in the courts of evidence and lengcs for the Sirica wrote. "But to grant the defendants five challenges each while re- stricting Ihe government lo six challenges, would effectively "conceal forever the full trulh about the Watergate Sen. Nelson (D-Wis.) told his colleagues. But Hruska said the public's right tu know must be weighed give one side, Ihe defense, thejagainst Nixon's rights of pri- powcr lo select the he Vacy. free speech and property. creeping up gradually for the Total employment was report- last several months and is ex-.ed up from August lo peeled to rise above 6 pcrccnt'Seplcmber. Over the last year. this year or in early 1975.111 has climbed 1.4 million, half Last October the rate gain recorded in Ihe pre- ccnls-a-gallon range by spring, according lo the president of Iowa Gasoline Dealers Assn. Jack Everett of Otlumwa said the reductions announced byj major oil companies (his week (Continued: Page .'I. Col. IU year low of -l.li percent. .Since negated in the unemployment then Ihe number of unemployed pic I u re by has risen 1.2 million. 'seekers. n a v a 1 academy in Callao, Lima's port suburb, killing a added. Meanwhile. Sirica and atlor-j ncys continued interviewing Thc waters receded 150 yards from the coast in the southern port of Pisco and in Calloa. overturning or beaching fishing boal.s and a Freighter. A grain silo toppled in Calloa. tcnlial jurors in form a large enough complete final jury selection. "Lynch Law" By tradition, "Ihose papers an effort toiare I he former President's pru- ugh panel Hruska said, accusing sponsors of Ihe bill of seeking Nixon Notions lo 'yncn Ulw- Not only would the bill violate The judge has indicated concept executive privi- will nol release motions filed ]t amounts lo an (in- former President Nixon lo punisi, (Continued: Page 3, Col. 3.) lto subpoenas demanding an individual without trial [his testimony at Ihe trial until Hr any alter.selection ol the jury. (dealing with custody of Ihe Asked Thursday when should .thought selection of the limited to Nixon. IJurors and .six alternates would! but Today's Index 'l f r l thi l-1'1" S.MO ait' measure (lot were (lone primarily 10 IK just simplv laid the idea a] cost will be for super-1 to niish religion on Sirica said. "I iirms bacK into he business of .1 'think we Icive i'ood clnm-i' for selling" gasoline, adding thai i In this year of groans at ihc.cm our 1, earls. -visory pe. sound alone, 'but we and we're not slriving for nr n x ''.''I'" Col 0 Ihe reduced prices are not part Icheckoul coumer. Ihe Christian: All three atlcnd Hie same see as mvoslmonl J i- r i I i church out llicv did nut wiint lo.put back in ijiKsincss. i -1LK'' MIMII 10 IH...MIHO of a trend. Grocery has opened Its doors iLs The softly-lit prayer "We simply wanlln put wliarafl-r lie and prosecution in addition, r.u'ieii sain housewives "the practical. Thl, two unique'room is available to Ihe 25 "ihli: says inlo operation, defense lawyers had f.'.pcnl a stales independent oil compa- d-iv in locked com-ii-oom mvi- i r ii I everyday living experience of services. One is a prayer room ployes lo meditate during want to take our practical! HOOOI um i n'rUTs' ho of n ex Jesus Ihrough cheaper for employes. The other is -The: ing hours. Burgess says living experience nf[ viewing potential jurors. pines i 1C OLD i lull oi il" 11 v ii ni i i i i i 11 i i After iic'irv hours it'V month because thev will be re- food price.." j Nappy wlulo-slur.cd, bow-lied s .icsu.s and olfer U to! Af.u iHaih u n houi.s, quired to purchase Ihe hif'her- Crocers tern HUI-L'CSS -nul' 'S "'K''' smock-clad checkout, the community in the lorm ol (Continued: CoMl. i Hef g wilh I'lackboanls. clerks "all to he Chris-'friendly service, competitive result he predicted I he I havn books and crayons jtians." prices and dcparlmenl of agri- K consum T w'll nol lie able coi'slruclion company where inolheis can leave their. The store, with square.ciiliurc niials." "shop -irnund" For gasoline lioy (''1SSC'- children lo play wiii) super- feel of space, does not sell wine Because of prand-npcning iiij's because Ihe difference' they say is "fnund-'visi.m beer, and it i.-. s.-lix'iivc in ils i; difficult lo dcii'i' lw" k NlXOfl iS vU H O O I "T "5 5JJ I I Cl Comics Crosswiird Daily Record Drains Kililnriiil FratiiiTS i Farm rinancial I Miiriiin .Movies Hii-h-i Sociclv Internal Hevcmio Service flic world's most snecessf mail-order hon.'T. am-rig nrcK'nl seven1 "Wayne and I had Ihe idea seeing so many ladies "some Christian paper- with those in oilier load ard Nixon lell Long I'.cach Me-' Spurts I about two years ago that there ing at their children, and then.back Burgess said. However, I h e inorial hospilal l-'riday alter an- Stale 'should be good solid businesses, walking oul of the slore al "I (lon'l think our busiiU'Ss is specials appear to average a1 11-day stay (or tn-atincnl of Ti-levisinn Several I-arlors' 'which operate on Christian their kids." much different from most busi-! few cents cheaper than in phlebitis and v.hirli n- Want Ads in I .VI7 IX 2I1-27 "'ilic In- said "Uc dun unfit   

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