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Cedar Rapids Gazette (Newspaper) - December 23, 1974, Cedar Rapids, Iowa f Weather- Vloslly cloudy tonlglit. I'ucsduy. C li it n c of i iiiow. Lows tonight, low ills. Highs Tuesday, up- JIT 20s. VOLUME 92 NUMBER 34B CKDAR RAPIDS, IOWA, MONDAY. DECEMBER 23, 1974 CITY FINAL 15 CENTS ASSOCIATED PRESS, UPI, NEW YORK TIMES NIXON PAYS 1969 N.Y. TAXES Congressional Panel Backs Tax Cut, Controls Gazette Leased Wires WASHINGTON Tax cuts of up lo billion a year have been urged by the congressional joinl economic committee to help pump up the economy and head off what the panel called possibly the worst recession in more than 35 years.. Its proposal would give an extra in spending power to a family of four earning a year and eliminate income laxes altogether for families making under It would bring the buying power of low and middle income taxpayers back lo where il stood al the end of 1973, before double-digit inflation set in. Backed by Economists The committee's tax-cut pro- posal Sunday was joined by other tax-cut recommendations i r o m Andrew Brimmer, a former member of the Federal Reserve Board, and economist Walter Heller, chairman of the Council of Economic Advisers under Presidents Kennedy and Johnson. Brimmer, >osed a one-time 10-percent cut n 1974 federal income taxes, -teller, appearing on NBC's now dean of the Harvard Business School, pro- 'Meel Ihe called for a 2-percent reduction in income tax rates on earned income up :o about The congressional joint com- mittee, warning that unemploy- ment will hit 7.5 percent by next summer, said a minimum of billion in tax relief should! be enacted immediately, aimed at low and moderate income per- ons. Tax Credit Favored The form of tax cut the ma- jority of the congressional panel appeared to favor would offer taxpayers the option of taking a tax credit of per dependenl instead of claiming the normal tax exemption of per de- pendent. A tax credit is subtracted after the taxes due have been calculated. A tax credit has equal value for all, while a deduction's worth rises as the taxpayer's income rises. For example, a increase in the deduction is worth only Brooke, Laird Urge Stiff Tax on Gasoline WASHINGTON (UPI) Sen- ator Edward Brooke (D-Mass.) and former Secretary of De- fense Laird have urged Pres- ident Ford to increase gasoline laxes. Brooke, who favors a 20-ccnt- a-gallon tax refundable to per- sons making under a year, said that Ford must de- crease oil consumption no mat- ter liow unpopular the idea is. "I do not see immediate ac- ceptance of this gasoline tax but I think in the long run that the American people are going to recognize it is not what we want, but what we need. When they do recognize thai, I believe they will be willing to bite the bullet, to tighten their Brooke said Sunday in a 1 pic- vised interview. Weight Tax Brooke also suggested cars be taxed by their weight and pro- posed replacing the federal highway trust fund with a new general fund for mass transit and social programs. Laird, a close personal friend of Ford who served as an infor- mal adviser early in his presi- dency, called for immediate gas rationing coupled with a 10-ccnt- per-gallon tax. Congress' joint economic com- mittee recommended an oil price rollback Saturday along ,vith a 30-cent-a-gallon lax. Laird said the lax could be used "lo build mass transil sys- tems to eventually liberate workers from such heavy de- pendence on the gas-guzzling -lutomobile." Waste "Ingrained" He also said foreign oil im ports .should be cut 3 million barrels a day bul doubted i: Americans would voluntarily limit consumption without gov- ernment controls. "I am reluctantly persuadec that our wasteful habils are so ingrained that it is unrealistic to expect that we will do so (con serve Laird said. In olher developments: Syndicated Columnist Jack Anderson reported Monday that Ford will request mandatory en- ergy controls in his forthcoming Slate of the Union address be- fore Ihe new congress in mid- January. Anderson said Ford is sifting through a package of proposed mandatory measures and that he is determined to cut oil im porls by at least 1 million bar- rels a day. Two congressional commit- tees urged tiiat federal anc stale governments draft plans for conserving fuel and electric- ity and cut growth of energy use to 2 percent a year. ;10 lo a taxpayer in the 10-per- cent bracket bul rises to a value of for one in the 50-percent bracket. Wage-Price Guides A voluntary system of wage- rice guidelines also was ad- vocated by the committee's 3emocralic majority to give President Ford authority to roll Dack selected wage and price hikes if he found them clearly inflationary. Both Republicans and Demo- crats on the committee agreed that without new policies the U.S. will slip into what could be the worst recession in over 35 years. The committee's report ar- gued that the only way to figh both recession and inflation is lo use fiscal and monetary stimu- lants and intervention in some vage-price cases. "Because of the effects of declining productivity on pro- duction costs, inflation as well as unemployment will be made vorse if the recession is allowed ,o it said. Rare Stage The committee said the econ- omy is in one of those rare stages when a tax cut carries itlle prospect of being infla- ionary. it said, "in 1975 the same policies which are needed to overcome recession TeltfJholo and reduce unemployment will also help to restrain inflation. "In contrast to some past periods, there is for the immedi- ate future no 'trade-off between inflation and unemployment." It proposed-that any tax cuts now could be offset later by elimination of the oil depletion allowance and other lax changes. The report's recommen- dations differ sharply from the economic policy of Ford, who has said the nation needs more fiscal restraint to fight inflation. The administration also has in- dicated it does not believe a large tax cut is needed now. Other major committee rec- ommendations were: A less-stringent monetary pro- jram than the one being fol- .owed by the Federal Reserve Board. Expansion of federal public (Continued: Page 9, Col. 3.) CHRISTMAS CASUALTY doctor comforts Dejean Reploqle, 17, Jacksonville, Fla., who was wounded in the thigh when a grenade exploded near the bus in which she was traveling Sunday. She was accompanying a group of American pilgrims on a sight-seeing trip to the biblical village of Bethany near Jerusalem, Israel. Today's Chuckle A w oman finishing her Christmas shopping stepped in- to an elevator and was met with a sulky "What from the operator. she replied, "if H isn't out of your way." copyright Americans Say Attack Won't Stop Pilgrimage JERUSALEM (AP) The leader of a group of Florida Baptists says a grenade attack that wounded one of them won't stop their Christmas pilgram- age in the Holy Land. "We will spend Christmas in Bethlehem as we said the Rev. E. C. McDaniel of Jacksonville after a visit to the hospital where doctors removed thumb-sized piece of shrapnel from 17-year-old Dejean Rcplo- gle's thigh. The doctors said that Ihe girl would be fine. "In God's Hands" "This could have happened in the United Stales, said the girl's mother, Mrs. William Re- plogle. "We are in God's hands wherever we are. I'm graleful that Jeanie wasn't more serious- ly injured." The 17 pilgrims from Florida had just boarded a bus oulside the Church of St. Lazarus in East Jerusalem when a grenade exploded about 30 feet away, sending shrapnel through the side of Ihe vehicle. In addition to the Reploglc girl, an Arab bystander received minor inju- ries. The Palestinian Liberation Organization announced in Beirut that it was responsible for the attack and warned "all tourists traveling to Palestine that we will not be responsible fur what might happen to them." The Israeli military command said it was doing all it could lo protect Christmas pil- Too Far Apart In Washington, American of- ficials said Israel and Egypt arc still beyond negotiating range of each other and too far apart foi Secretary of State Kissinger to be planning a trip lo the Middle East. But Ihe gap is being narrowec through an intensive diplomatic exchange, Egyptian Pres City Rejects Low Bids on 5-in-1 Bridge The Cedar Rapids city council decided Monday to reject the low bid for construction of a proposed "five-in-one" bridge and dam project. The bid, submitted jointly by 'ramcr Bros. Construclion Co. and Jensen Construction Co. of DCS Moines, was for IL includes construction uf a dam over Ihe Cedar river and two levels of highway above the dam to carry traffic on 1-380 and K and F avenues. The bridge-dam complex is a joint project of the city and the state highway commission, which earlier accepted the bid contin- gent on city approval. City's Cost The city's portion of the con- tract was set at far above what city councilmen were expecting. Aboul Iwo Latitude on Pardons to President i WASHINGTON (AP) The (supreme court ruled Monday that a President may attach a wide range of conditions when he issues pardons or commutes prison sentences. In a 6 to 3 decision, the courl rejected arguments thai a Prcs- idenl cannot commute a scn- ence on conditions which are not authorized by law. The decision came in the case of an army master scrgca; convicted of murder and sen tenced to death. In 1960, President Eisenhower commuted the sentence to life imprisonmenl on condilion thai the man, Maurice Schick, never be eligible for parole. No Authority Schick's lawyers argued that Eisenhower had no authority to condilion the commutation on a punishment not prescribed by military law. Writing for the majorily, Chief Justice Burger noted 'lhat Presidenls throughout our lislory as a nation have exer- cised Ihe power to pardon or commute sentences upon condi- that are not specifically authorized by statute." The court said Ihe President's clemency power "flows from the Constitution alone, not from any legislative enactments." Joining Burger in the majori- ly were Justices Stewart, White, Black quist. Justices Marshall, Douglas and Brennan dissented. Death Decision Part of Schick's argumen1 was based on a 1972 supreme court decision overturning the death penalty as it had been applied. He contended that if Eisen- lowcr had not commuted his death sentence on the no-parole condition, he automatically would have escaped execution when the court overturned the death penalty. He then would lave received a life sentence and would have been eligible for wolc, his lawyers argued. In other actions before recess- ing until Jan. 13, the courl: Agreed to decide the constitu- tionality of stale laws requiring .hat printed political advertising identify the printer and who paid for the ad. Refused to block a lower courl requiremenl lhal drug manufac- t u r c r s individually caution parents during community-wide vaccination drives about any slight danger of harm from the accine. Affirmed a lower court which ident Sadat, emphasizing reco (Continued: Page 3. Col. 7.) IV_Iyears ago the city's share was (Continued: Page 3, Col. 5.) No Fraud; Total Bill NEW YORK (UPI) -New York state tax officials Monday disclosed that former President Nixon owed in back taxes for 1969 and had made payment in full last week. Stale Tax Commissioner Marion Procaccino said the taxes were owed on a reporta- ble gain from the sale of Nix- on's Manhattan apartment in "We found no evidence of fraud on the part of the former Procaccino said. 8-Month Probe The commissioner said the determination on the amount iwed by Nixon was made earli- :r this monlh after an eight- month investigation by the tax department. Procaccino said the amount owed by Nixon included "all .axes, inleresl and penalties for the year 1969." He said under provisions of state law, it normally would be unlawful for the department lo divulge information on tax mat- ters but said that the former President, Ihrough his counsel, nad waived Ihis prohibition. The state investigation lead- ing to the determination that Nixon owed the 'money began last April 25 when Procaccino wrote to 'the farmer President information on Nix- on's taxes while he was a resi- dent of New York prior lo as- suming the presidency. Congressional Finding Procaccino's request came after a determination by a spe- cial congressional committee earlier that month Jhat Nixon owed more than in back federal laxes, interest and pen- alties. H was also disclosed at that time that Nixon had paid no California slate taxes while in the White House, although his legal voting residence remained in that state. After a lengthy investigation headed by Procaccino, the former President was notified on Dec. 6 that he owed the slate t h e commissioner said. "On Dec. 17, we received an acceptance of our determination and payment in the com- missioner said. upheld a Michigan law forbid- ding discussion of birth control in public schools. Let stand a ruling that judge in Mississippi acted im- (Continued: "Page" 9, Col 7.) Great Power Inside Agency CIA Official Tied to Domestic Spying Unit Uy Seymour Hersh New York Times Service WASHINGTON Sources knowledgeable about the Cen- tral Intelligence Agency believe James Anglcton was permitted to continue his alleged domestic operations because of the great power he wields inside Ihe agency as director of countcrin- tclligcnce. It is Ibis group that is charged with investigating allegations against CIA personnel made by foreign agents who defect; in olhcr words, it must determine whether a CIA man named by a defector is, in fad, a double auenl. Following Iho Now York Times rcporl Sunday, President Ford said he will 'nol Inlorat" illegal domestic .spying by tin1 CIA and lhal he has hi'cn as- sured by CIA Dircclor William Colby Hint Ihe agency is no! i" volvcd in such adivilics now. The report also prompted de- mands for an immediate inves- tigation from former CIA of- ficials and members of congress. The CIA declined any immedi- ate comment, but sources said Colby was holding a top-level agency meeting Monday about the disclosures. Senator Proxmire (D-Wis.'i called for an investigation by the justice department and said he would ask Secretary of Stale Kissinger to have former CIA director Richard Helms resign his post as ambassador lo Iran. Secretary of Stale Kissinger said the Ford adminisl ration will "cooperate to the fullest with any appropriate investigation." the jusliro department said earlier Monday il is examining the charges. Senator Hrvin lO-N. C.) said Sunday lhal he received infor- inalion while chairman of the senate Watergate committee lli.ii Hie CIA was involved in clomoslio intelligence. "We got some information in Ihe Watergate committee in- dicating Ihe CIA had gotten off its reservation, but I didn't pur- sue Ervin said. He said Ihe activities of the CIA were nol. within Ihe scope of his commit- tee's investigation. Discussing 1 h e counlcrin- lelligcncc arm of the CIA Victor Marehetti, a former CIA official, noted in a book published this y e a r that the "counlcrin- telligciicc staff operates on Ihe assumption that the agency as well as olher elements of Ihe United Stales government is penetrated by I lie KGB. "The chief of Ihe CIA staff (Marchelti did not. identify An- gleton) is said to keep a list of the 50 or so key positions in (he CIA which are most likely to have neon infillraled by Ihe op- position, and he reportedly keeps the persons in Ihose posi- tions under constant surveil- lance of oilier former (MA men talked in rccnil interviows with similar expressions of fear and awe about Anglcton. He was repeatedly described by former CIA officials as an unrelenting Cold Warrior wflo was convinced that the Soviel Union was playing a major role in the anti-war activities. Despite intensive interviews, liltlc could be learned about Ihe procedures involved in the do- mestic spying, except for the fact that the operation was kept carefully shielded from other unils inside the CIA. Anglelon, reached by tele- phone this week at his .suburban Washington home, denied that: his eouiiloriiitclligencc depart- ment operated domestically. "We know our ho said. Anglcton told of a ropor! from a li. S. agent in Moscow who was relaying information to the CIA on Iho underground and radical bombings in the U S. during Iho height of Ihe anti-war activity. "The intelligence was not ac- quired in Ihe United Anglcton declared, "it came from Moscow. Our source there is still active and still produc- live; the opposition still doesn't know." Anglelon then described how the CIA had obtained informa- tion from Communist sources about the alleged demolition training of black militants by the North Koreans, lie also told of recent intelligence clfoils in- volving Ihe KGB and Yasir Ara- fat, chairman of the Palestine Liberation Organization. A number of former impor- tant FBI domestic inlelligonco .sources took issue with Anglo- ton's apparent suggestion lhal Ihe domestic anti-war activity was linked to the .Soviet Union. "There was a Int. of .stuff ion radicals in the S.I that came in from the CIA one former official recalled, bul a lot of i! was worthless. A number of former FBI of- ficials said in interviews that Iho CIA's decision to mount do- mestic breakins, wiretaps and s i m i 1 a r 1 y illegal counterin- telligence operations undoubted- ly reflected, in part, the long- standing mistrust between the Iwo agencies. In 1970, FBI Dircclor J. Edgar Hoover ordered his bureau lo break off all bul formal liaison contact with the CIA, forcing lower level CIA and FBI of- ficials In make clandestine ar- rangements lo exchange infor- mation. By the lalo Sixties, one former FBI official said, all but token cooperation between the Iwo agencies on eonnlerinlolligenco n d ooiinlorcspionaiio had ended. "The CIA was never satisfied wilh Hie KHI and I can't blame Ihom." Iho former official said. "We did hil-or-miss jobs. "Wo wore constantly cutting the throats of Iho (MA in our dealing wilh them. If the White House kno.v annul it, they wore too afraid of Hoover lo do any- thing alxiut il." Coal Production a Back to Normal PITTSBURGH (UPI) The country's soft coal production returned to normal for the first time in six weeks Monday fol- lowing ratification by mine construction workers of a new three-year wage contract. T h e construction workers, whose picketing activities had closed coal mines in several slates the past two weeks, ac- cepted (be contract by a 2-1 margin in secret ballot voting during the weekend, the United Mine Workers said in Washing- 1 Ion Sunday. i The construction workers had picketed mines since Dec. j when the UMW's miners began returning to work under a I new three-year contract which ended their 24-day strike. Today's Index Comics 15 Crossword n Daily Record 3 Deaths Editorial ii Farm ..in Financial u; i Movies n Society 8 Sports Stale 5 Television Want Ads IS-21
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