Cedar Rapids Gazette (Newspaper) - December 12, 1974, Cedar Rapids, Iowa W.eath er- witll eliani'e of snow Friday. lunighl, in Die Frldav, mid IIDs. VOUJMK ICj NIJMUEU 107 CITY FINAL 15 CENTS CEDAR RAPIDS, IOWA, THURSDAY. DKCKMHKR 12, 1974 ASSOCIATED PRESS, DPI, NEW YOHK TIMES HOUSE UNIT KILLS TAX BILL Wholesale Price-Rise Slows Gazelle Leased Wire WASHINGTON Wholes lie prices last month rose 1.2 per- cent, less than half the October increase, the government re- ported Thursday. There were in- dications the pace of inflation was subsiding. The 1.2 percent 'rise translates into an annual rate of 14.4 per- cent. Although the November in- crease was high by normal stan- dards, the labor department said price increases over (lie month were less widespread than in preceding months. Industrial Goods And, while agricultural prices continued to increase sharply at Ihe wholesale level, prices of in dustrial commodities regard- ed by economists as a truei measure of inflation rose al Ihe slowest rate in 13 months. Wholesale prices of industrial goods rose 0.9 percent last month, slightly less than in Sep- .tember and October and the smallest rise since October 1972 when they rose 0.8 percent. Over-all wholesale prices have risen 23.5 percent in the past 12 months, the biggest year-to-year increase since 1947, but the rate of increase has slowed in recent months. The 1.2 percent-rise in whole- sale prices last month, on a seasonally adjusted basis, com- pared with October's increase of 2.5 percent and a rise of 0.1 per- cent in September. Unadjusted, prices rose 1 percent last month. Trends in wholesale prices usually show up at the con- sumer level eventually. Food Prices j The labor department said Photo by Jwi i AAclvor Assistant Police Chief Gareth Clift displays a pair of nunchakus (pro- nounced nun-chucks) similar to those used Wednesday in an assault on a 12- year-old boy, who is in fair condition Luke's hospital with a head injury. Clift said the weapon, which is swung at the victim, comes under the state's concealed weapons statutes. Anyone caught carrying them is subject to ar- rest. The weapon originated in the Far East and has recently Jbecome popu- lar in this country. prices for farm products rose 1.3 percent in November while processed foods and feeds in- creased 3.5 percent. Sugar and confectionery goods accounted for most of the 3.5 percent increase in prices of consumer foods, those goods ready for sale on supermarket1 shelves. Sugar and confec tioneiy prices jumped 33.1 per cent last month and were 191.1 percent higher than a year ago. Higher prices for proccssec poultry, milk, fresh and driet fruits and vegetables, miscella ncous processed foods and some meats also increased las month. "Culprit" "The principal culprit is the increased costs of processing and Agriculture Secretary Bulz said in .an address that was delivered as the index was made public. Butz said "our economists in the department of agriculture have analyzed the 1974 increase in food prices and they find that of the 15-percent increase in consumer food prices in 1974, 12 percent is due to higher mar- gins and only 3 percent is due to higher farm prices." Youth Hurt When Hit by 'Nun-chucks' By Bill Lavcleltc Scott Kclley, 12, of 5411 D ave- nue NW, was in fair condition at St. Luke's hospital Thursday with a head injury suffered Wednesday when he was hit by another youth armed with a pair of nunchakus (pronounced nun-chucks sticks. Kelley and a 12-year-old com panion were on their way home from Taft junior high schoo Wednesday when a 13-year-old boy attacked him near the inter section of West Post road and E avenue NW, police said. The youth hit Kelley twice with the The fight ended, authorities said, when Kelley was able to take the sticks away ?rom the youth. Kelley went wme and became ill several hours later. After telling his mother about the fight, Kelley vas taken to the hospital where le remains in the intensive care unit. Hardwood The weapon used to injure Kelley is made of two hardwood ticks, about 12 inches long, fas- (Continued: Page 3, Col. 8.) Nixon Wanted False Report: Ehrlichman er SAIGON (.A) Viet Cong forces .'hot down a troop-carry- ing Soulh Vietnamese helicopter near the Cambodian border Thursday, killing all 50 persons WASHINGTON White House aide John Ehrlich- man told the Watergale cover-up trial Thursday he now believes former President Nixon never .varated him to come up with an accurate report on Watergate. Under cross-examination by chief trial prosecutor James Veal, Ehrliehman was asked about the Watergate report hi has said Nixon requested 01 March 30, 1973. "That report was not supposcc to be a full and true report, was Neal asked. "So far as I was concerned i. was but after looking back ant listening to the tapes, it is my present view he (Nixon) was topeful it would not Ehr- lichman replied. Disputes Tape Neal referred to a number of the tape of conver- sations in March and April 1973 .vhich he contended showed that Ehrlichman, rather than being misled, was recommending is- suance of a less than truthful re- port. Ehrlichman responded by dis- mling the accuracy of prosecu- ion transcripts of the conversa- ions, particularly the transcript >f a conversation -on March 21 aboard, field reports said. Today's Index City Employe Raises May Start in January The personnel and auditor were told Wednes- day afternoon to begin setting year, raising the total to The in- crease is 13.55 percent. Comics Crossword Dally Record Dciil'lis Kdilorial Features .Farm FiniiiK Marlon Movies Soeiely Sport1" Slate Want Ads ........8C ........8C ........3A ......3A OA .....IOC ......BI> .......2C IB-SB Hill, III! 9C 7D-I3I) up a new pay schedule for all Cedar Rapids municipal em ployes. rt-L I llj "1 U The city council hasn t mofm an formally accepted new plan, additional cost of about 15 ner- recommended by a Chicago ccn( consulting firm, but councilmcn had no major complaints after .Commissioner hearing details of the plan' schnofor_said he thought jWedncsday. i Th" council ;Direclor Fred start mndifyinj: if the new plan is accepted HS- .expected, employes can be for 'mpK-'nienlation :iho plan wilh Iheir first chock of 1975. Be Done" SI.2 Million Cost 1973, Sn which Nixon, Ehrlich- man and H. R. Haldeman dis- cussed a report which they re- fer to as "a limited hangout." The government transcript has Ehrlichman referring to a "modified, limited hangout." "What is a modified, limited hangout when you talk about a report that isn't Nca asked. "I don't know what a modi- fied, limited hangout said Ehrlichman, who denied he was the one who used the term. "Mode of Disapproval" He admitted using the term 'limited hangout" which he called "a less than full dis- closure." But Ehrlichman added: "I said it in a mode of disapproval of what was being proposed." In order to give the jury a chance to decide for itself who said what, Judge John Sirica ordered that segment of the tape replayed. "Misled 4 Times" Ehrlichman testified Wednes- day he now realizes Nixon de- rived him at least four limes about Watergate. In a matter-of-fact manner, ic ticked off Ihe dates on which ic said he was misled: June 23 972; March 21, 1973; Jan 8 973; March 22, 197.1. He said he never knew about tic conversation on June 23, six lays after the Watergate break- i, in which Nixon and Hal- eman discussed asking lop CIA fficials to get the FBI to limit 's investigation of the burglary. Israelis Hit PLO Camps In Lebanon By Associated Press Israeli jets bombed a suspect- ed Palestinian commando train- ing site on the southern edge of Beirut Thursday less than 24 hours after a terrorist set off grenades in a Tel Aviv movie theater, killing himself, an Israeli woman and a British en- gineer and wounding 58 others, Lebanese Premier R a s h i d Solh' told parliament (hat one Palestinian woman was killed and 10 other Palestinians were wounded in the late afternoon air strike. Lebanon's defense ministry said one Israeli plane was shot down in the raid, which came just as Palestinian schools let out. Witnesses said Palestinian women and children scattered screaming in terror. Beirut airport was closed to a 11 incoming and outgoing flights. There was no immediate comment from the Israeli com- mand. But an informed Israeli source in Tel Aviv said: "The target area in the Beirut raid is a PLO training installation. We have every reason to believe that it was where the planning for the cinema raid was carried out. It is a center for special operations of a very delicate and sensitive nature." Dropping Bombs At Jeasl four Israeli flew over the Lebanese capital drop- ping bombs on several camps shortly after 3 p.m. a a.m CST. Smoke rose over th camps as air raid sirens wailec throughout Beirut. The jets dipped low over tin city as they made at least twi jombing passes. Witnesses saic .he major camps of Sabra am Shatilla and the smaller Ta Zaatar camp, near the Bcirul airport took hits. Smoke also rose from the Dbich camp, three miles north of Beirut. The proguerilla newspaper Al tfoharrer quoted Yasir Arafat lead of the Palestine Liberation Organization, as claiming re- sponsibility for the Tel Aviv WASHINGTON (AP) Pres- ident Ford plans to nominate Attorney General William Saxbe as ambassador to India and is looking for a new attorney gen- eral, reliable sources say. "I'll soon be Saxbe told friends in his native Ohio Wednesday night. But he told reporters any announcement must come from the While House. Administration sources and associates of Saxbe in Ohio said be has agreed to accept the am- bassadorship. Report Ford To Name Saxbe Envoy to India lawyer and friend of White House staff chief Donald Rums- feld. Robson said Wednesday that White House officials have not contacted him about the job but he indicated he would be inter- ested. Department officials were greeting the prospects of still another attorney general with mixed feelings. Won Over Some middle level officials continue to be disappointed with Saxbe because they feel he The White House was Preslige in the legal corn- ed to announce the choice of mun''v- But others movie attack Wednesday night. "This is a retaliation in kind for the Beirut he was quoted as saying, referring to rocket attacks Tuesday on three PLO offices in Beirut that caused heavy damage and slightly injured five persons. "We have struck back. Next lime it would be within six hours f Israel dares to stage another operation against us." Not Tough But the Marxist Front for the liberation of Palestine, which opposes Arafat's leadership on ;rounds it is not tough enough, Saxbe to replace Daniel Moyni- lan as soon as Ihe Indian gov- mayed at ernment expresses approval, probably by the end of the week. Saxbe was said to be well- icquainled with Indian officials jecause of several trips there since 1971. Under Pressure The move would put the jus- .ice department in the hands of he fifth attorney general in as many years. Ford has been under pressure from some members of congress and other groups to rid the cabinet of all the holdovers from the Nixon administration. No cabinet members have left since Ford look office.. Saxbe was Nixon's fourth and last nominee for attorney gener- al and was sworn into office last Jan. 4. Tile former Ohio senator has figured prominently in weeks- long speculation about an im lending cabinet shakeup, even though he was never considerec a Nixon loyalist and mainlaine een charged wilh a crime. Rnbson Mentioned Since that remark April 17, :axbe generally has kept his day. Alongside makeshift pens in front of the agriculture depart- ment they posted a sign: "Here's Our Beef, Mr. Bub.." They wanted Butz to 'accept some of the cattle for use in a feeding-cost experiment, but, after meeting with him, report- ed that he said it would be legally impossible and impracti cal for him to do so. "First Responsibility Butz later said "our first re- sponsibility is to slow down (his inflationary spiral" of farm costs. He said he urged the Would Have Ended Oil Allowance WASHINGTON (AP) A multi-billion-dollar tax bill, end- ng the petroleum depletion al- owance and hiking oil industry axes while cutting taxes for millions of average Americans, was killed Thursday by the house rules committee. The committee voted 9 to 4 to refuse even to consider the mas- sive measure which the house ways and means committee had ecommended after many months of work. The bill's chief features would lave raised petroleum industry axes on production at home and abroad, cut taxes for mil- ions of average Americans in ow-income and middle-income >rackets, boosted the invest- ment tax credit for public utili- ies, and closed assorted major oopholcs while hiking taxes on oreign-source income of mul- tinational firms. New Benefits Furthermore, it would have made a series of other changes in tax laws ranging from new benefits for investors with capi- tal losses to revisions in the tax treatment of political organiza- personal opinions to himself. He announced his retirement 'rom the senate after one term vhen Nixon picket! him as atlor- icy general following the "Sa- urday night Inassacre" when Slliot Richardson and William Ruckelshaus resigned as the two op justice department officials n protest of Nixon's move to re the special Watergate pros- cutor. The Wall Street Journal re- orted recently that Ford is onsidcring as Saxbe's replace- nent John Robson, a Chicago group to join a common effort wilh him in that direction. Lcroy Schecher of Bison, S. 3., said before the meeting that he group wanted the depart- ment (o sponsor 10 of (he ani- mals in a feeding demonslralion t its Belleville, .Md., research facilities, to show how much costs to produce beef. Those 10 steers now will join 10 other feeders in such a dem onstlation at a Gcrmantown Md., farm and be sold to com plete the group's records, dc signed to show the heavy losses ranchers suffer because of low market prices and high retai prices that turn consumers off beef. Another 20 cattle, already fat- tened on grain to slaughter weight, are to be cut and The panel simply decided it was time to virtually close up shop for the remaining days of this congressional session on all matters except those involving a strip mining control bill, the vice-presidential nomination of Nelson A. Rockefeller and emergency measures. The series of tax increases and reductions various cor- porations and individuals would have resulted in a gain of million for the treasury this year. The ways and means commit- tee argued that the legislation is necessary to redistribute tax burdens while providing a more rational taxing of the oil in- duslry, tax relief for lower and middle income persons and en- couraging inveslments in public dressed by union butchers and the pounds or so of dressed (Continued: Page 3, Col. 6.) (Continued: Page 3, Col. 2.) Arrest Fanne Foxe; Charge Of Indecency SANFORD, Fla. (AP) Fan- Carter Sets Platform For Presidential Bid "All Supported" Meanwhile, UAW President Leonard Woodcock said auto in- dustry and union leaders "all supported a proposal for a lax cut" to case the nation's eco- nomic crisis. Woodcock made the statement after the group met with Pres- ident Ford for two hours. Woodcock said there were no specific commitments from the President, but that Ford was lighly attentive to the prob- ems of the auto industry as WASHINGTON (AP) Gov-j Carter said "political leaders j crnor Jimmy Carter of have been isolated from the set forth a platform for and "have made deci- ircscnted at the White House meeting. Woodcock said he cited the risis situation affecting the au- omobile industry and construc- ion industry and dragging down ie economy. Woodcock also said he expressed a belief that a five-year pause is needed in au- tomobile emission and safety controls to help get costs down. _______ ....._ Foxe, slrippcr-prolege of presidential candidacy Thurs- 1 sions from an ivory tower." Rep. Wilbur Mills, was arrested i day and railed for "new leader- "Now is the time for "This country badly needs an income tax Woodcock told nflcr tnc session that icarly Thursday and and new ideas" lo bridge chasm between people and 'wilh indecent exposure, officials: (he gulf between Ihe American 'eminent to be bridged, and told Mayor Don Canncy said thej On March 21, Ehrlichman said enviactual increase, when ovcrlimeJNixon never told him about all longevity pay are consid-the things John Dean had dis- closed about Watergate. On Jan. 8, Nixon discussed clemency for Ihe Watergale burglars with Charles Colson, then special White House coun- addilionit! pay could "bejscl. in a taped conversation that found, particularly if depart- said was "exactly, I opposite lo what purchases. (Nixon) lold me about clem- Aiul on March 22, "I thought "We'd bo burning a lot The new plan will rrtsl Iho midnight oil in the auditor's of- we had agreed in principle for full disclosure when, in fa-.-t, it was the opposite." The witness concluded: I for (Continued Pafjo 3. Col. 7) "The fact is. as I look bark (Continued: Page .1, Col. said. Assistant Slate's A 11 o r ney Jack Fulenwidcr said she was arrested "for being completely naked" during a performance. [people and their government. 'American citizens lo labor, commerce Carter outlined a broad our nation's .lsllry da of governmental reforms in CCOnomic and speech at Ihe National Press e urged these specific steps: executives each from Open all meetings of rcgulato-.., Chili here, lie planned to an- "P0" meetings of rcgulat bit; four aulo manufacturers If i i UK mi; jijui iiimj iiKii He the Argentine-born strip- jnounce his candidacy for the rY ''fe'cncies, cxcculivi; depart-, _ per was "charged with a viola-; nomination fonmil-imcnts and congressional n 'M lion of Ihe slate statute as Thursday at a rally the public "except in WX'S( v lUL'lit Kl s-iid pertains to indecent Atlanta a few rare h fl y Sgt. sheriff's office said nightclub owner Mike Pinter was also ar- rested, "for promotion of an in- "To fidence of people the con in our own Prohibit all gifts to public of- ficials. government must be Disclosure of all business in- he. said. "But too many officials :vnlvi'monls major govern- decent show before an not deserve that officials, ence." j -i i Personnel of regulatory ngcn- Miss Foxe and Pinter werej Minsmnc uiw for foujj released on bond each He called for "an from joining tin: industry! 'liminary hearing sunshine law in Washington" regulate. Dec. 20, Thomas said. lopen to public .scrutiny most' Public financing of rongrcs-' Miss Foxe was receiving governmental meetings, campaigns a week for a Iwo-wcekifull financial disclosure by all Tighter controls on lobbyists. engagement at a nightclub near [federal officials and called fur Appearance by cabinet his central Florida city. Thej "a drastic and thorough revi- members before the full house j engagement began M cm d a yjsioii of the federal and seuaie. In answer nifinl- about their departments. the nation is not in an economic crisis and that he has no inlen- ilion of changing his anti-infla- tion strategy. "11 there are any who (Continued: Page .1, Oil. ,1.) Today's Chuckle is it that we look till1 family album and split our sides laughing--then look inlo Ihe mirrnr and never even c-iack a Minle''