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Cedar Rapids Gazette (Newspaper) - December 29, 1974, Cedar Rapids, Iowa NEW U.S. GOLD RUSH? Care Is Urged in Purchase (In Section A) 1974 YEAR OF CONTRAST East lowans Comment on Towns In Section B) Section A Weofher Cltudy Sunday, highs Chance rain mixed with snow Sunday night. Colder Monday VOLUME 92 NUMBER 354 CITY FINAL 35 CENTS CEDAR RAPIDS, IOWA, SUNDAY, DECEMBER 29, 1974 ASSOCIATED PRESS, UPI, NEW YORK TIME! TOUGH' ECONOMIC CURL FORD f Iowa Doctors Pay up to for Malpractice Insurance By Dale Kuetcr Some Iowa doctors, including physicians in Cedar Rap- ids, are being forced to obtain medical malpractice insurance from Lloyd's of London. Some are having to pay as much as a year for coverage. And although medical liability conditions are even more severe in other parts of the nation, the prognosis is for a worsening situation in Iowa. The feverish pace with which suits are being filed and soaring courtroom awards have made medical malpractice insurance ever more difficult to obtain and extremely expen- sive, particularly for certain specialties like orthopedics. "It is really hanging over said Dr. II. R. Hirle- man, president of the Linn County Medical society, "to the point some are practicing defensive medicine." As an example, he said, some doctors are asking for more X-rays and laboratory tests to back up medical judg- ments. It is difficult to quantify what niipht bo superfluous Dr. Hirlcman said, "but I know it is happening." Growing Cosfs Are Charted So far as Dr. Hirlcman knows, no Cedar Rapids area phy- sicians have been refused malpractice coverage. Neverthe- less, doctors are searching for a prescription to combat the high insurance costs, and muy look to the legislature for a cure. Malpractice insurance costs were dramatically charted at a recent hearing before Iowa Insurance Commissioner Wil- liam Huff, III. Last March, Huff granted a 04.4 percent rate increase to Aetna Casualty and Surety Co. of Hartford, Conn., for mal- practice insurance. The company, which insures 275 physicians in Iowa, about 10 percent of the total doctors in the stale, asked and )ast month was denied permission by Huff to increase its rates an additional 102.4 percent. Aetna is appealing the decision and Huff is expected to announce in two weeks if he has changed his mind. Robert S. Ebersold, an Aetna official, in an interview with Harrison Weber of the Iowa Daily Press Assn.. said while ,300 insurance firms are licensed to write medical mal- practice insurance in Iowa, unly a fuw do. Over the past five years Ebersold said his company has lost more than million nationwide and through the first nine months of 1974 dropped over million. Ebersold would not commit himself beyond next summer as lo whether Aetna would continue medical liability cover- age in Iowa. In a related area, Commissioner Huff revealed that Argo- naut Insurance Co. of Menlo Park, Calif., is terminating its professional liability insurance on 20 Iowa hospitals effective next April 1. Tlie company, Huff said, reports it has been losing mon- ey and has decided to withdraw from writing such insurance in about a dozen states including Iowa. Argonaut is one of the largest underwriters of hospital liability insurance in Iowa and has the endorsement of the Iowa Hospital Assn. Firm Terminates Hospital Policies Huff said the firm is within its rights in canceling the policies, but the action is posing some special problems for two hospitals Lutheran hospital in DCS Moines and Virgin- ia Gay hospital, in Vihton. Both have policies that expire Tuesday and Huff is trying to assist them in securing new coverage. Neither Cedar Rapids hospital is insured by Argonaut. Officials at both said the policies they have provide basic lim- its coverage for all liability, with an umbrella policy covering any major catastrophe (hat may occur. One of the largest awards in Iowa in recent years was the (Continued: Page 14A, Col. 1.) Guerillas Ask Ransom, Inmates for Hostages MANAGUA, Nicaragua (UPI) Leftist guerillas who shot their way into a diplomat- ic reception and captured the cream of the Nlcaraguan dip- lomatic corps Saturday de- manded Si-million ransom, re- lease of eight prisoners, and a safe conduct out of Nicaragua. Among a score of their prominent hostages were the Nicaraguan foreign minister, the Nicaraguan ambassador to the United Slates who is the dean of the foreign diplomatic corps in Washing'lon, and the Nicaraguan U.N. ambassador. The U.S. embassy said the Chilean ambassador and his wife were also captured, but the Nicaraguan government would only confirm the cap- ture of the wife. No Decision A government spokesman said "there has been no deter- mination by the government whether or not to grant the ex- aggerated demands of the ter- rorists." U.S. Ambassador Shelton Turner was guest of honor at the reception in a suburban Managua home, but he left 20 minutes before the guerillas stormed into the building and shot to death two members of the Nicaraguan national guard, diplomatic sources said. One guerilla, one guest, and one guardsman were wounded in the attack on the building. The semi-official newspaper Novedades identified the guest as a Nicaraguan Exxon execu- tive, whose wound was de- scribed as superficial. Martial Law President Anaslasio Somoza declared martial law, sur- rounded the occupied resid- ence with troops, imposed a curfew, and studied the ran- som demands with his cabi- net. The archbishop of Managua, Msgr. Miguel Ovando Bravo, served as go-between. The eight terrorists, six men and two women, shot their way into the diplomatic reception late Friday night at the home of former Agricul- ture Minister .lose Mara Cas- tillo. They took hostage the ..host family, approximately ID guests, seven servants, and four musicians. Sandanistas The raiders, who claim to be members of the Sandanista Liberation Front, released the servants, Mrs. Castillo and her three children, and the musicians, and told them to ask the archbishop lo serve as go-between with (he govern- ment. Sandinistas is named for Cesar Sandino, legendary guerilla of the 1930s who op- posed the U. S. occupation that brought the Somoza fami- ly A musician who asked nol to be identified said the guer- illas "came in firing like cra- zy." He said they would not let the hostages speak and kept them in a separate sec- tion of Ihe room. SIMON Secretary Simon makes a point during Saturday's meeting of President Ford and his top eco- nomic advisers in Vail, Colo. Others attending the meeting are (from left to right) Alan Greenspan, chairman of the Big Cities Losing People WASHINGTON (AP) The Census Bureau estimated Sat- urday that the nation's biggest metropolitan areas lost 2 per- cent of their population over the last three years because of migration lo suburbs and smaller cities and towns. The bureau, after classify- ing metropolitan areas by size to delect population shifts, said Ihe biggest areas were the only ones with more peo- ple moving out than moving in. There were virtually Ihe same number of people living in (he biggest areas those cities with a population of 2 million or more as in 1970, the Census Bureau said. But only a birth rate which out- paced the migration losses kept the biggest areas from losing: population overall. The bureau estimated that as of July 1, 58.85 million peo- ple lived in metropolitan areas with populations in excess of 2 million. In 1970, 58.59 million lived in such areas. The biggest in-migrations, or excess of people who move into an area over Ibose who CIA Agent Reveals New York Spying By Seymour llcrsh NEW YORK A former agent for the Central Intelli- gence Agency, in recounting the details of his undercover career, says that New York City became a prime CIA do- mestic spying target during the 1960s because it was consi- dered a "big training ground" for radical activities in the United States. The agent, who spent more than lour years in the laic 1980s and early 1970s spying on radical groups In New York, told (he New York Times (hat more ihan 25 CIA agents were assigned lo Ihe ci- tv at the height of anti-war ac- tivity at Columbia university and elsewhere. In another development, Time magazine contended In ils lalesl issue that Supreme Court Justice William 0. Douglas and former Rep. Cor- nelius Gallagher (D-N.J.) were among four political fig- ures who were pul under CIA surveillance. Domestic Operations Time said the others were the late Sen. K.dward Long (D- Mo.) and Hep. Claude Pepper, a Democrat who was said lo have been "apparently sus- pect because of his contacts with Cuban refugees living in his congressional district" in Florida The New York agents were tightly controlled by senior of- ficials in the New York office of Ihe Domestic Operations Division, a hide-known do- mestic unil sel up in 1984 by the CIA in more than a cities across the nation, the former intelligence official said. The division's ostensible function then was legal: To co- ordinate with Ihe American corporations supplying "cov- er" for CIA agenls abroad and to aid in the interrogation of American travelers after (heir return from foreign countries. The former agcnl's descrip- tion of life as ,1 domestic CIA spy was provided during a sc- of Interviews this week. The contact with Ihe Times came afler publicaliiiu las) Sunday of the first account of Ihe massive spying. The former agent said that his involvement began with Ihe advent of the Black Pan- ther movement in and the increase of anti-war dissent during the last months of Ihe Johnson administration. "And (hen it started to snowball (rum the former agent said. Brraklns, Wlrelnps The Times, working with details supplied by the former agent, was able to verify lhal he served as an undercover in- (Conlinued: Paw :i. Col move out, were in metropoli- tan areas with populations of between 1 million and 2 mil- lion, areas with populations of less than and rural areas. The gain in all three cases was just over 2 percent. The Census Bureau prefers to concenlrale on figures cov- ering several years to deled broad changes in population patterns, but Ihe latest figures did reveal changes in Ihe last year in the 15 metropolitan areas which hold more than 2 million people. One city Cleveland dropped off Ihe list Its popu- lation, which has been declin- ing steadily In recent years, fell from 2.02 million in 1972 to 1.84 million in The metropolitan area which suffered the biggest population drop last year was New York. Its population dwindled by 1.1 percent to 9.81 million. Others losing popula- tion in all cases less than I percent were Boston, Chica- go, Detroit, Los Angeles, New- ark, Pltlsburgh and SI. Louis. Major areas gaining popula- tion from 1972 lo 1973 were Baltimore, Dallas, Houston, Nassau-Suffolk, N. Y., Phila- delphia, San Francisco-Oak- land and Washington. Council of Economic Advisers; Arthur Burns, chairman of the Federal Reserve Board, and Roy Ash, director of the Office of Management and the Budget. Press Secretary Ron Nessen said later that the experts all expect a late-1975 upturn. Veto of Price-Hiking Milk Supports Urged Today's Chuckle (1NBUF.AKABI.K: Some- thing that's a little harder for your kids lo pull apart. WASHINGTON (AP) President Ford is being urged to veto a bill thai his advisers say will add six cents to the price of a half-gallon of milk and 12 cents lo the price of a pound of cheese, according lo informed sources. The bill, sponsored by Sen. Humphrey (D-Minn.) was passed quickly as congress rushed lo adjourn before Christmas. Unless Ford signs it by next Saturday it will die automatically. The bill would require that the federal government imme- diately raise by about 18 per- cent the level at which il sup- ports Ihe price of manufactur- ing-grade milk. Billion Cost The agriculture department estimates thai Ihe bill would cost taxpayers million next year for government pur- chases of surplus dairy prod- ucls. The total cost in consum- ers, through higher retail prices and higher government spending, is estimated at up lo billion next year. Sources bolh inside and out- side the government say Kurd is being urged by Ihe agrirul- luri1 department and by bis Council of KcoiHimic Advisers lo kill the bill. A While lloiiM1 source said that Ford's domcslic staff is very concerned about what lit- called Ihe bill's "great infla- tionary impart !o the consum- er." The source said a full analysis of Ihe bill still is in preparation and the Presidcnl has made no decision. Ford reportedly has com- mitted himself to sign another bill thai is likely lo raise gaso- line and heating-oil prices by requiring lhal more of the na- tion's imported oil be shipped in expensive American flag tankers. Signing the milk bill would put him in the political- ly difficult posilion of also raising milk prices while urg- ing Americans lo whip infla- tion. Little Attention On the other hand, Furd would risk the anger of dairy farmers if he vetoed the bill. The bill drew little attention or debate as il sailed through congress in the last two days before adjournmonl. Current law requires the ad- ministration to support Ihe price of manufacluring-grade milk at a level equivalent to 80 perccnl of (arm parily which is a formula based on the prices farmers pay. The milk support level is set March I each year and generally re- mains at the same dollar level until the following year. Up to Si Percent Presently the government supports milk at !ii per (Conliniicil: Pain- 3. Col I' To Change Management Of Economy Gazette Leased Wires VAIL, Colo. President Ford will propose "hard and tough" cures [or the nation's economic ills in his State of the Union message next month, but "it won't mean a big reduction in the standard of living of the average Amer- his chief spokesman said Saturday. Ford was des-cribed as aim- ing at "fundamental changes in thu way the economy is managed" as a means of avoiding an ever-deepening recession. Press Secretary Ron Nessen said Ford's proposals "will deal with the fundamental ail- ments with the economy and getting back stability in a long term sense, not to just patch things together." Unanimous on Upturn Reporting on a con- ference between Ford and his top economic advisers, Nesson also saW the President had found "across the board unan- imity" that there would be an upturn in the economy during Ihe last half of 1975. He said everyone at the meeting agreed that the econ- omy, whipsawed between si- multaneous recession and in- flation, "faces serious prob- lems." The President also was quoted by Nessen as telling his economic experts that he wanted "no which the press secretary described as "quick cures" which would not have a lasting effect. "He said he wanted a hard and tough State of the Union Nessen said. "What this whole program is aimed at is to get the economy back to stability." "Watershed Period" "It was a consensus that this was a watershed period as far as the economy goes. It needs more than a gimmick to get out." In an apparent reference to the forces of recession, Nessen also said: "Tills is the mo- ment when fundamental changes arc needed to avoid consequences down the road." Nessen indicated Ford will basically scrap the 31-point economic program he present- ed to congress last October on grounds that the picture has changed. But, he said, "That is not to (Conlinuod: Page 3. Col. 2) Today's Index UilC News Deuins Accent On Youth Editorials tteuort Curd City Moll Notes Record Reviews........ HuHclino............... Karm.............. SECTION C Social New Rooks..... Hovel...... srcrioN i) Outdoor lown I Inane inl New YOf K Stock-, Wlrtt
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