Tuesday, December 17, 1974

Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

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Cedar Rapids Gazette (Newspaper) - December 17, 1974, Cedar Rapids, Iowa Weather- Mostly cloudy tonight, some; light snow, law H-18. Cloudy Wednes- day, ohuiicc of snow. High Ml VOLUME 92 NUMBER 34z" CEDAR RAPIDS, IOWA, TUESDAY, DECEMBER CITY FINAL 15 CENTS ASSOCIATED PRESS, UPI, NEW YORK TIMES AGREE AID FOR JOBLESS President: "Justify Steel Hike" WASHINGTON (AP) Pres- ident Ford demoded Tuesday that U. S. Steel Corp. formally submit to the government a jus- tification for announced price increases Ford said are causing him concern and disap- pointment. Riding a four-year crest of soaring profits, U. S. Steel has announced it is raising steel prices an average of 8 percent over two-thirds of its product line. White House Press Secretary Eon Nessen said Tuesday, "The President is concerned and very disappointed by the price in- creases: by U. S. Steel. As a matter of fact, he is disappoint- ed at any price increase under present economic circum- stances." "Wanted Immediately" Nessen said Ford ordered his Council on Wage and Price Sta- bility lo seek a justification from U. S. Steel for the price increases announced on Mon- day. The council has made it cleai in a telegram to U. S. Stee "that the justification is wanted Nessen said. The council has no authority to order a delay or rollback ol price increases and can merely focus public attention on pricing situations it looks into. Asked if the administralioi might contact other steel makers in an effort lo persuade them not to follow the lead of I) S. Steel, Nessen said he did no know. However, he added tha L. William Scidman, Ford's eco nomic policy coordinator, has indicated "the book is no' closed on this." Hearings Possible Nessen said the Council or Wage and Price Stability coult hold public hearings on the U S. Steel action. He said it hat made earlier inquiries into an announced price increase by the Ford Motor Co., and price boosts for sugar and beef. Nessen said he did not know Ihc outcome of those inquiries. U. S. Steel's announcement noted that the hikes, ranging as high as 11 percent, will primari- ly affect construction, rail and oil industries. The nation's largest steel- maker said Monday that most will take effect Wednesday, but an increase of about 10 percent in the price of tin plate, used lo make tin cans, will not take place until Jan. Industry observers had thought price increases might be in the wind after the first of the year, but did not expect any in 1974. 400-Percent Increase U S Steel had profits of million in 1971, million in 1972 and million in 1973. In (Continued: Page 2, Col. 1.) Resignation of Ash Announced WASHINGTON (AP) The expected resignation of Roy Ash as director of the Office of Man- agement and Budget was an- nounced Tuesday. There was no indication of a successor. Today's Index 5.5 Billion Would Be Authorized by Bill Teleohoto SUMMIT BRIEFING President Ford meets with congressional leaders at the White House to brief them on his Martinique summit meeting with French President Giscard d'Estaing. Next to Ford is Rep. Thomas O'Neill house majority leader. Israel Charges Buildup by Syrians By United Press International Arab and Israeli officials earned Tuesday oi the growing prospecl of war in the Middle East, and former Undersecre- tary of State George Ball said there will ba new fighting by next July if there is no new breakthrough in peace negotia- tions. Israel said U. N. observers had confirmed its charge that Syria has 90 tanks along the Golan Heights cease-fire line in- stead of the 36 provided by Ihe truce agreement. It said Syria also had stationed two artillery batteries more than the 18 per- mitted by the agreement. It said the U. N. force had asked Syria to remove the weapons. Israel further charged that the Kremlin has supplied Syria with more than 300 fighter planes and tanks and mis- Comics Courthouse Crossword Dully Kcronl Deaths Kdltorlnl Features Farm Marlon Movies Society Sports Stale Television Ads 24 3 20 .1 3 6 2.1 22 12 21 II. 15 17-20 10-11 22 26-31 siles since Jlie October, 1973, war and that the number of Soviet advisers in Syria "is now greater than that prior lo the isr." Speedy Supplies In Beirut, Premier Rashid Solh said Lebanon has asked the Arab countries for speedy sup- plies of arms to repel Israeli at- tacks similar to those on Pales- tinian camps on the edge ol Beirut last Thursday. Defense Minister Shimon Peres told the Israeli parlia- ment in Jerusalem there are about Soviet military men in Syria, some operating sur- faca to air missiles and elec- tronic systems. He said the Soviets had given Ihe Syrians advanced MIG-23s, Scud surface to air missiles and hundreds of armored troop car- riers and anti-tank guns. of an Egyptian the 1973 war. A warning threat on the Sinai fronl came from Israeli Maj. Gen. Ariel Sharon, who resigned from the Israeli parliament to take an emergency and still undisclosed command. "In One Night" "You may as well know thai the Egyptians are capable of transferring five to six divisions across the (Suez) Canal in one night _ tanks and about he said. "This is something thai can happen any Solons React Strongly To Foreign Land Sales By Al Swegle A sampling of legislators in the Cedar Rapids area Tuesday showed support for tougher re- porting procedures for foreign investors buying land in Iowa. Legislators were split on whether the state should enact an outright ban on foreign in- vestors buying land in Iowa. The secretary of the Iowa Farm Bureau, Kenneth Thatcher of DCS Moines, en- dorsed the idea, and the Iowa Farmers Union is holding a series of meetings this week dealing with the subject. Lax Laws The reaction came in light of a Gazelle report Sunday that Italian and German investors are taking advantage of lax land laws in Iowa to hide their identity. Foreign corporations are re quired lo register with the sec- retary of state before transact- ing business in Iowa, but foreign individuals are not. "We haven't dealt with this problem in our general policy hexsiuii." Thatcher said, "but in line with our policy stances inl I Ihe past, I would expect that we jwoiilcl be for proper identifica- tion of the foreign investors in- volved in land transactions. "kind transactions are a mat- ter (if public record, and mi responsible organization can be n favor of circumventing the aw." Outright Ban Two legislators contacted by The Gazette favored an outright ban on foreign investments, while a third would require only that foreign investors register their land investments in Iowa. "Two of my neighbors talkec to me about The Gazette article yesterday, and I assured them that studies would be made (Continued: Page 2, Col. 4.) Peres said the supply of Sovi-j el combat equipment "was far above that sufficient to fill the gap that had been created" by In London, King Hussein of Jordan said in an interview pub- lished Tuesday in The Guardian :hat only the unforeseen can prevent the outbreak of a new Middle East war. He added that in certain circumstances" the Israelis could use nuclear weap- ons. The indications are that the Israelis either expect, or might be thinking of starting, a mili- tary operation in (be near fu- Hussein said. "Unless something unforeseen happens and I hope it does I believe that the prospects of war are very real." Not the First Israeli Prime Minister Yitz- hab Rabin said in an interview published in the Bonn newspa- per Die Welt that "a surprise attack will no longer catch us unprepared. We have learned our lesson in the last war, an we have digested the lesson." Rabin said that in the event a new war, Israel would not the first to use nuclear weapo and that Israel's convention forces are strong enough to win Rabin said if'Egypt or Syr would launch their Russian roc ets against Israeli cities. Isra is in a position to carry out least ten times as strong retail tion attacks" against Ara cities. Ball, a senior stale depar mcnt official under both Pre idenls Kennedy and Johnso made his pessimislic evalu tion of Secretary of Stale Ki singer's shuttle diplomacy in copyrighted article in the Ja uary issue of Atlantic Monthly. "The negotiating track Seer lary Kissinger has been follow ing in the Middle Easl has no come to a dead he sai "If the stalemate continue there will almost certainly another Arab-Israeli war with the next nine months." In Tel Aviv, governmen sources said Israel was st: hopeful for diplomatic progre: toward a second-stage troo; disengagement pact with Egy despite fears of rising Arab m itancy. The sources said a cruci factor will be Cairo's positii after the mid-January Midd East trip of Soviet Communi Party General Secretary Brez iev. "If Brezhnev's visit brin, less Egyptian readiness to neg tiale, it will bring less readine on our the Sources sai WASHINGTON (AP) e-house conferees agreed esday on a compromise bill thorizing billion to aid the lion's jobless. The legislation would earmark 5 billion for an estimated public service jobs over e coming year and another .5 billion in emergency unem- oyment compensation cover- persons presently not en- led to such benefits. There aieo would be mil- m for public works projects nd similar job creating activi es. Conferees said they hope to et the bill ready for a house ite Wednesday, followed im ediately by a senate vote. ublicans on the senate-house onference said they expec resident Ford to sign the legis tion. The legislation represents ompromise between earlier ersions passed by the senate nd house. The senate had ac- epted a measure to ssist the unemployed while house bad approved a illion bill. Formula The money in the emergency obs program would be targeted brough a formula. Basically, aides to rice of fuel would be almost oo small to calculate but fore- cast the total cost at about billion over the next decade. The compromise bill, which cleared the house two months ago, is designed to help Ameri- can shipping interests offset the competitive advantage o foreign vessels, which operati with cheaper labor. The oil-cargo bill is backed by maritime unions and opposed b; major oil companies andi nu merous economists of all polit: :al persuasions, who contend it ivould cause additional inflation. Agreement Reached on Turkish Aid WASHINGTON (AP) A ompromise worked out by Sec- etary of Stale Kissinger and ouse members to extend U. S. military aid to Turkey until reb. 5 was approved Tuesday >y house-senate conferees. A leading critic of the aid said le and other house opponents have agreed to accept the com- (Continued: Expect Ford To Sign Oil Shipping Bill WASHINGTON (AP) Con- gress has passed an oil import bill the Ford administration con- siders Contrary to the national interest, but the President is ex- pected to sign it in exchange for congressional approval of a for- sign-trade measure. The bill, approved by the .sen- ate 44 to 40 on Monday and sent o the White House, would re- quire tbat 30 percent of import- ed oil be carried on American ships. The state, interior and de- 'ense departments and the Fed- e r a 1 Energy Administration have criticized the bill. Two months ago, Ford said he lad serious concerns about the 11' s potential impact on foreign relations, national secu- rity and inflation. Trade Bill Trade But the President is expected to let the bill become law. Sen- ate aides say it was made clear to Ford last week that he would have to accept the oil shipping measure in order to win con- gressional approval of the om- nibus trade legislation he seeks. The house-passed trade bill subsequently was approved by Senator Long chief sponsor of the oil shipping bill, noted the measure would allow ,he President to temporarily waive the 30-percent require- ment if he deemed such action lo be in the national interest. Long also said the provision could be ignored if adequate U S. vessels were not available at reasonable rates. Long accused Exxon Corp. ol being responsible for "a scurrr I o u s propaganda campaign against the bin." He said the giant oil company is "dedicatee to the principle that under no circumstances will you hire an American seaman for a month when you can hire a Chi naman for 5100." "Not Justified" Long said the bill would "We've agreed on this exten- sion and we feel optimistic about its said the con- gressman, who asked that his name be kept confidential. The compromise cuts off all U. S. military aid to Turkey until there is "substantial irogress" on negotiating Tur- ush troops out of Cyprus. But it authorizes President Ford to delay the cutoff until Feb. 5. Negotiation Aid It specifies that he can delay the cutoff only "if he deter- mines that such action will fur- ;her negotiations for a peaceful solution of the Cyprus conflict." Any such extension shall be effective only until Feb. 5, 1974, and only if during. that time Turkey shall observe the cease- fire and shall neither increase its forces on Cyprus nor transfer to Cyprus any U. S.- supplied implements of it states. Aid ior Turkey was cut ott Dec. 10 by earlier legislation, create jobs lor American sea- men and shipbuilding workers. But Sen. Cotton (R-N. H.) said the number of new jobs would not justify the bill's cost to American consumers. Senator Curtis (R-Neb.) said the 30-percent provision would violate U. S. shipping agree- ments and could prompt oil- producing nations to retaliate by insisting that their oil be carried in their ships. In another development deal- ing with foreign trade, the sen- ate refused to accept a compro- mise bill extendng the Export- Import Bank's lending authority '-or four years at a level. In a series of votes, senators sent the bill back to conference with the house and insisted that probably this week. ;he final version prohibit U. S. loans for energy development in Communist countries unless each project is approved by congress. In other business as congress prepared to adjourn: Water Hyacinth as Pollution Foe BAY ST. LOUIS, Miss. (AP) The common water hya- cinth, regarded as a beautiful nuisance in most Southern states, can suck pollutants from a eily's drinking water and provide fuel lo heat its homes, a biochemist reports. "We can recycle our own wastes with water William Wolvcrton of the na- tional Space Technology Labo- ratory said Monday. Wolvcrton began looking into the water hyacinth's use- ful properties as most slates searched for ways to kill the vegetation which spreads like wildfire, clogging waterways and irritating fishermen. "Water hyacinths are bio- logically said Wnl- verton. "They're ideal for sucking pollutants out of the water because they ferow so fast and have a nice, big root system." He said research showed that 2.5 acres of hyacinths is capable of removing the fol- lowing: Every day, about ,100 grams of cadmium or nickel, both of which cause cancer; Every three days, more than 500 pounds of phenol, also called carbolic acid, a toxic chemical derived from coal tar; And every ycnr, the ni- trogen and phosphate from the human waste of 800 lo people. "Nitrogen and phosphates have been the big problem for city sewage treatment Wolverton said. "But the hyacinths just, eat them right up land Igrow faster." There is a limit to the amount of metal each plant can absorb. After they've eaten their fill, they are har- vested and new hyacinths quickly grow up to take their place. The big stumbling block was what to do with the harvested hyacinths. The researchers found they could seal the hya- cinths in fermentation cham- bers and let them produce w h i c h can be burned like natural gas. "Bio-gas is really marsh said Wolverton. "But it's quite similar to natural gas. Natural gas is about 80 percent methane while bio-gas is only 65 percent methane, so it doesn't produce quite as much heat." Two and one-half acres of hyacinths is capable of pro- ducing 2.5 million cubic feet of bio-gas a year with fre- quent harvesting, Wolvcrton said. The laboratory now has a water-purification contract with the city of Bay St. Louis, which Wolverton hopes will demonstrate that the system can operate efficiently. He plans to take one portion of a fiO-acre lagoon lo grow hyacinths, then try to convert them into gas. "We're working on a system to pipe the gas right back into the city and use it like natural but the senate has passed a bill jto resume aid vmtil Feb. 13. A house-passed bill, however, would prolong the cutoff until Turkey agrees on a plan to with- draw its forces from Cyprus or until June 30. Ford has strongly opposed the cutoff on grounds that angering the longtime ally could jeopard- ize the U. S. strategic position in the Eastern Mediterranean. -Very Much in Air" "Compromise is very much in :he Rep. Anderson (R-H1.) :old reporters. "The President is working very hard on this said Sen. Thurmond felt the matter will be worked out. It's very delicate." House Democratic Leader O'Neill (Mass.) told Ford that congress "was definitely target- ed for getting through work" Says Coal Price Rise Unnecessary CHARLESTON, W. Va. (AP) The new coal contract does The house backed off from not necessitate an increase in coal prices, United Mine an amendment which would liavc banned the department of Health, Education and Welfare from requiring schools getting federal aid to classify students and teachers by sex, race or na- tional origin and supply that data to HEW- The senate passed 84-0 a billion emergency unemploy- ment compensation bill de- signed to guarantee most job- less workers a full 52 weeks of benefits in 1975 and 1976. The bill was sent to the house for consideration of a minor amend- ment. The house has passed the bill. Legislation clearing the way for construction of deep water oil supertankers ports off the U. S. coast was approved by a con- ference committee. The mea- sure now goes back to both chambers, with supporters pre- dicting passage. The Geneva Protocol of 1925 banning the use of poisonous gases and chemical and bacteri- ological weapons in war was ra- tified by the senate by a 90-0 vote. A bill authorizing million for highway aid with particular help for rural areas was ap- he said. "The techno- j proved by the house. The mea- logy is already there it's I sure, which also maintains the just a question <rf bringing it J55 milc-an-hour speed limit, all together." n conference committee. Workers President Arnold Mill- er says. "There may bo a price in- crease, but this agreement does not require Miller said in a special edition of the UMW Journal. "The price of coal is already so high that there is plenty of fat to absorb these new costs." Simon Revives Talk of Surtax WASHINGTON (AP) Trea- sury Secretary Simon said Tues- :lay that the 5 percent surtax proposal will be in n package of policy options he will present next week to President Ford. Other administration spokes- men have said the proposal has been dropped on grounds congress will not accept it. Chuchlf! Convalescence is that dif- ficult time when you are bet- ter than you were but still not a.n well as you were before you were as sick as you are now ConvrluN