Cedar Rapids Gazette, December 6, 1974

Cedar Rapids Gazette

December 06, 1974

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Issue date: Friday, December 6, 1974

Pages available: 58

Previous edition: Thursday, December 5, 1974

Next edition: Saturday, December 7, 1974

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Publication name: Cedar Rapids Gazette

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Cedar Rapids Gazette (Newspaper) - December 6, 1974, Cedar Rapids, Iowa OcciuKmal ruin uitele tonight, ending (Saturday. Lows tonight, mid m. Highs Salur- upper Ms. VOLUME 92 NUMBER 331 CITY FINAL 15 CENTS CEDAR RAPIDS, IOWA, FRIDAY, DECEMBER 6, 1974 ASSOCIATED PRESS, DPI, NEW YORK TIMES COUNTERFEIT RING Jobless at Top Since 1961 WASHINGTON (AP) The nation's unemployment rate leaped'to 6.5 percent in No- vember, highest in 13 years, the government reported Friday. The labor department said the number of, unemployed Ameri- icans rose to a total Of Total employment dropped nearly last month to 85.7 million, virtually wiping out the entire increase in jobs over the last year. Massive automobile industry layoffs and job losses in elec- trical equipment and textile in- dustries and retail trade ac- counted for most of the employ- ment drop. I Biggest Jump i The November increase in the unemployment rate from' 6 percent in October was the biggest monthly jump: since No- vember-December, 1960, when joblessness rose from 6.1 to 6.6 percent. The last time unemployment hit G.5 percent was in October, 1961, a recessionary year. A measure approved Thurs- day, by the house ,ways and means provide an additional billion in emer- gency jobless benefits over the next year. Over the last year, unemploy- ment has risen almost 1.9 mil- 'lioni with the portion of jot losses among the unemployed increasing from 37 to 47 per- cent. Declining industrial produc- tion was reflected in a shor- tened work week last month 36.2 hours. This resulted in a decline in weekly earnings, which averaged in No- vember, down from Oc- tober. However, average weekly earnings were still 5.9 percent higher than a year ago. Figures Stir Activity at White House WASHINGTON (AP) Press Secretary Ron Nessen hintec Friday that President Ford wii seek new anti-recession legisla- tion in the near future and wil move toward a mandatory en- ergy conservation program early next year. 'Nessen said Iho 6.5 percent unemployment rate was source of great concern" to Ford and the economic situation was under review. "As we decide to take new steps, they will be the secretary said. He acknowledged that the job- less rate had increased faster than expected since Ford un- (Continucd: Page 3, Col. 4.) Stocks Keep On Sliding NEW YORK (AP) Stock, retreated broadly again Friday in slightly accelerated trading. The 2 p.m. Dow Jones average was down 7.98 at 579.08, more than 5 below the 12-year closing low Oct. 4. Today's Index Comics .....................22 Crossword.................22 Dally Record................3 Deaths ......................3 Editorial Farm ......................2I Financial ..................23 Mnrlon .....................7 Movies Society .................H, 15 Sports' ...................I'-19 Tclevlnlon Delegates: Charter to End Control By Frank Nyc KANSAS CITY Two dele- 5ates> from Iowa's Second: dis- Irict may have a more under- standable 'explanation of what this Democratic charter conven- tion is all about than most of the gathered here from all parts of the nation, Janet .Fraser of Mohticello and Suki Cell of ML VernoiVsaid their interest is adopting a party charter that will make it impossible for any individual or group or coalition to gain con trol of the Democratic party in the future. "That means party bosses, McGovernites, the left wing, the right wing or any other fac- explained Mrs. Fraser, a member of the Iowa Democrat ic state central committee. "Or the Daleys or added Mrs. Cell, referring' to Chicago Mayor Richard Daley and AFL-CIO Chief George Meany. Affirmative Action They were joined by another Second district delegate, Kurl Meyer, 20, a Luther college jun ior, in expressing strong ap- proval of the "affirmative ac- tion" language adopted by the convention r u 1 e s committee Thursday, as the means for opening the party to anyone who wants to be a Democrat. It would-replace the so-callec "quota -system" used by Iowa and some other states to guar- antee representation of minority groups in'the selection of dele- gates to the' party's; 1972 na- tional convention in Miami First, however, it must be adopted as a part of the charter delegates to. this: off-year, mini- convention are expected to ap- prove before they leave for home Sunday. "If they don't lake it (the af- firmative action Meyer said, "we're nol going to be progressing as a party. Actively Solicit "Affirmative action doesn't just assure representation of all sections it means we have to actively solicit different points of view." Mrs. Cell is a member of the Second district's affirmative ac- tion committee, she explained, "and we already have it in Iowa. "Although it is not perfect it is a-very good way to ferret oul interested people and lo encour- age them to participate in party affairs. "It is a more active way lo bring people into the party." Mrs. Fraser added that "affir- mative action" opens the party to everyone and makes it possi- ble for those interested to be- come involved on a "do it your- self" basis. She said it woulc help the two-party system sur- vive. The "affirmative action" lan- guage is that of Barbara Mi- kulski of Baltimore, who belongs to the reform group thai is battling.party conservatives for a liberal charter. Compromise It was offered as a compro- mise between liberals, who prefer the quota system, and conservatives, who'd like to go back to the days when party bosses .selected national conven [ion delegates in many stales. The language got support (Continued: Page 2, Col. 4.) 2 Lines Propose Air Fare Cuts NEW YORK (AP) United Air Lines and Trans World Air- lines have proposed bargain do- mestic fares beginning c'arly next year (o stem a sharp de- cline in air travel by spurring family vacation trips. If approved by the govern ment, the new excursion fares would reduce the present econ- omy rales by up lo 25 percent. Passengers would have to buy tickets a week in advance and slay at least seven but no more than 30 days. Photo Dunne Crock Secret service >agent Robert Knepp, right, and assistant U. S. Atty. Robert Sikma examine the nearly in counterfeit currency seized early Friday at a near northeast side apartment. 11 was part of more than million in bogus bills believed to have been printed in Cedar Rapids. The other fake money was found in Kansas City and Minneapolis. Six persons, including a youth, were arrested in the three cities. Knepp is the agent in charge for the Iowa-Nebraska division of the secret service. UTS. Support of U.N: Fading, Warns UNITED.NATIONS (UP1) S. Ambassador John Scali warned the General Assembly Friday that Americans are "deeply disturbed" by actions of the world -body and support for the U. N. is eroding. In a hard-hitting speech-, Scali said the accelerated trend of one-sided, unrealistic resolu- tions passed by the U. N. had Become "a clear and present danger" to the usefulness of the organization. The U. S. stand in the debate on -the role of the U. N. an annual "gripe session" was backed by the British, who spoke against "illusory consen- a reference ltd bloc vot- ing by Communist and Third World nations. Scaii pledged to do what he could to persuade Americans that the U. N. can return to serving ttje interests of all its members and thus still deserves U. S. support. "If the U. N. ceases to work for the benefit of all 'of its members, it will Ibecome in- creasingly he said. 'It will fade into the shadow world of rhetoric, abandoning its important role in. the real world of negotiation and com- promise." Scali cited the decisions oif the 138-member body on suspending South Africa's membership, the issue of the Palestine Liberation Organization and other issues which were enforced by "the tyranny of the majority." Referring to past American support, he said: "As the 29lh General Assembly draws to a close, however, many Americans are questioning Iheir belief in 'the U. N." The successes of the world body in the Middle East, Cyprus, 'and the Iran-Iraq border dispute were threat- ened with being overshadowed by failure and controversy, Scali said. "The American people are deeply disturbed by decisions lo exclude member states and to restrict their participation in discussions of matters of vital concern .to he added. New Postage Boost Seen WASHINGTON (UPI) Post- master General Elmer Klasscn says the cost of mailing a first- class letter could jump another two to three cents next year to cover an expected deficit. "Somebody lias to pay for delivering, the mail" if congress won't increase federal subsidies, he told reporters Thursday. He said it was too early to predict a definite increase but he thought the cost of a first- class stamp might be 12 or 13 cents. 'Brown Aided Us Most in War' Israeli Premier TEL AVIV, (AP) Gen. George Brown, the American chief of staff who complained about Jewish influence in the U.S., helped Israel during the last war more than anyone else says Premier Yitzhak Rabin. Rabin, speaking to high school students ThuursdsJy, said Brown's remarks might be the result of "too much talk here about the Jewish lobby." He cautioned against exagger- ating the power of the lobby in Washington, saying gloating over the effectiveness of Jewish pressure could boomerang against Israel. He added that the U.S. sup- ported Israel because their in- ,erests coincided, not because of Jewish influence. He did not elaborate on the iclp firown gave Israel. 18 Die in Ambush MANILA (AP) Welfare agency sources said Friday 18 persons were killed and 10 wounded in an ambush in Min- danao about 500 miles .south of Manila. Todnu's Chuckle It's no trick lo meet expens- es the toughest job is (o avoid them. Copyright Tells Halcleman Talk of Hushing Hunt WASHINGTON (AP) Charles Colson testified Friday that two days after convicted Watergate burglar E. Howard Hunt demanded from Ihe White House, H. R. Hal- deman told him that Hunt could not be allowed to say things that were damaging to the White House. Testifying at the Watergate trial, Colson read from a memo he said he prepared for bis files immediately after talk- ing with Haldeman, then the White House chief of staff under Richard Nixon, ,on March 23, 1973, over the telephone. Colson said in the memoran- dum that Haldeman asked representations I made to Howard Hunt had with respect to the commutation of his sentence.1' Talked to Bittman The memo continued that Col- son said he 'had not seen Hunt since the Watergate breakin the previous June but that he had talked with Hunt's i lawyer two or three times. Colson insisted he had not told Hunt that his sentence would be commuted before Christmas and that he had never used any- one else's name in the conversa- tions. "He (Haldeman) asked whether Hunt might have the impression from my communi- cation with (Hunt lawyer Wil- Tough Curbs on Gasoline Use Hinted WASHINGTON (AP) i- The] administration has set a meet-: ing of top energy advisers for Dec. 14 at Camp David, Md., amid indications it may be get- ting ready to impose tough limits on gasoline consumption. Interior Secretary Morton ex- pressed fears Thursday that vol- untary measures to cut fuel con- sumption may not be enough and the government may have to take strong.measurcs. In an interview, he said man- datory conservation measures that might be considered includ- ed gasoline rationing, a stiff new lax on gasoline and a quota limiting oil imports. Meanwhile, Sen. Jackson (D- Wash.) said he will press for congressional passage this month of legislation giving the President standby authority (o ration fuel and order increased domestic energy production. Fuel Reserves The legislation would also es- tablish a national system of fuel reserves for use in emergen- cies. The Dec. 14 meeting of the cabinet-level Energy Resources Council will draw up specific energy policies to recommend to Ford, an informed source said Thursday. The council is made up of some 20 heads of federal depart- ments and agencies and headed by Morton. Ford has said he hoped volun- tary cooperation by the public and industry would cut oil con- sumption one million barrels a day by the end of 1975. But Mor- ion and other energy officials have begun warning that volun- tary efforts may not be enough. Press Secretary Ron Nessen said Wednesday that Ford is nol satisfied with the progress of the voluntary program. No One System "I think it might be possible to limit imports at a certain level, tax fuel to a certain level and also allocate fuel where it is needed and probably have some form of consumer rationing without having to go all out for one system or Morion lold Ihe congressional joint eco- nomic committee Thursday. Although Ford has rejected proposals for a stiff new tax on gasoline, Morion and other lop officials slill consider it a poten- tial option. Morton also mentioned the possibility of taxing crude oil or energy in general. The Federal Energy Adminis- tration announced that Union Oil Co. has agreed to pay to settle allegations il failed lo make government-or- dered gasoline deliveries lo stales with shortages. FFA Administrator Sawhiil liam 0.) Bitlman thai he (Hunt) would nol serve beyond the end of this year in prison and I said :hat he might well have drawn whatever conclusions he wanted ;o from my having said that I would do anything! I couldi lo iclp him." In the memorandum, Colson also noted: "Bob Ihen asked me .what would happen if Hunt 'blew'. I said I thought it would be very >ad, that from what I knew he would say things that would be very damaging Bob said, then we can't let that hap- ien.' Court Witness Nobody wanted to vouch for Poison's credibility as he tcs- .ified in the trial. Not his old rival, John Mitchell, not Hal- deman or John Ehrlichman, his 'ormer White House associates. They had good reason. For on lis first day on the witness stand Thursday, Colson told of: His early suspicions about Mitchell's role in Watergate and of carrying them to Nixon. Haldeman's unconcern about John Dean's role in the planning meetings that triggered the Wa- tergate breakin and Haldeman's rationalization about the money later to those charged with Ihe burglary. Ehrlichman's sending him to reassure Hunt that he had a ricnd in the White House at a time when the edgy and de- pressed Hunt was pushing for money and bargaining to stay out of jail. After hearing what Colson had lo say, chief government prose- ctor James Neal quipped lo Ehrlichman's lawyer, William Fraics: "If you're gonna call more witnesses like that, we'll take them all." Fraics had summoned Colson from a federal prison in Ala- bama, where he is serving a 1-3- year term for obstruction of jus- lice in the Ellsbcrg case. But Frates refused lo vouch for Col- son, as lawyers usually do for (heir own witnesses. He was adopted as a court witness, making him fair game for cross-examination by all sides. Meanwhile, the jury sent a S3 Million In Bogus Bills Found By Tom FrucSiling Secret service agents and local law enforcement officers., in Cedar.Rapids and Midwest cities early Friday morning cracked what is- be- lieved to be a Cedar Rapids- based counterfeiting operation, and the biggest in the history of. the state. Agents .seized. in' bogus anil 'bills at a Ce- dar Rapids and: 'al- most simultaneous I arrests- in Photos Page 3 and Picture Page Kansas City and Minneapolis netted million and respectively. All of the bills are believed to have been printed at the Sev- enth Printing Co., 1035 Second avenue SE. Make Arrests Two men and a 15-year-old youth were taken into custody in Cedar Rapids while tone was arrested in Kansas City and two in Minneapolis. One of the men arrested was the alleged organizer of the operation, Harold Wellington Rapp, 46, of'800'First avenue NE. j It was at' his residence that secret service 'agents seized the freshly-printed' 'currency, re.cords and "plates. 'Rapp was arrested Jat''his home... Also ..charged .was Mi- chael Juenger, 22, .of 715 Sixth street who' was 'picked up at a Cedar Rapids business where authorities.claim he was attempting to pass one of the bills: Robert Knepp, agent in called the settlement "the larg- lctlcr Jud' John sirica who est civil penalty in the history of________. the 'agency so far." (Continued: Page 3, Col. 8.) charge of.. the Iowa-Nebraska division of secret'1 service, said three bills were passed in Omaha. However, it's believed few of the notes were passed and most recovered. Court Appearance____-i Both Rapp and Juenger were taken before U.S. Magistrate James Hodges Friday afternoon [or initial appearances. Rapp was charged with pos- session ol counterfeit money to defraud. Federal authorities pointed out that Rapp has had a number of previous arrests, including es- cape, and already is on federal probation and asked that bond be set at However, Hodges ordered a cash bond. Juenger was charged with passing a counterfeit bill with intent lo defraud. After being told; Juenger is under stale probation, Hodges set a unsecured bond on him. Preliminary hearing on both was set for 10 a.m. Dec. 12, before Hodges. Both charges carry a maximum fine of a prison term of not more than 15 years, or both. Federal authorities said charges of interstate conspiracy againsl bolh urc, being consid- ered. Burned Bills Printing equipment was con- fiscated from Ihe Second avenue establishment. Agents said they also found remnants of burned bills at the shop. The Ceciar Rapids raids, con- ducted by DCS Moines and Omaha secret service agents with the aid of Linn county dep- uties and Cedar Rapids police, took place at a.m. In addi- tion to the printing firm and Rapp's apartment, a search warrant was also Issued for Rapp's automobile. fast. U.S. Atty. Robert Sikma said the investigation has been under way for about a month. Federal agents, he commented, were tipped off about the opera- tion by "confidential inform- ants." Inforimmts Sikma noted that the printing company has been in existence for a little more than a month, and that informants notified of- (Continued: Page3, Col. B.) ;