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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 Iowans Comment on Towns (In Section B) Section A Weather (Undy Sunday, highs 4#v Chance of rain mixed with Know Sunday night. Colder Monday. CITY FINAL 35 CENTS VOLUME 92 - NUMBER 354 CEDAR RAPIDS, IOWA, SUNDAY, DECEMBER 28, 1874 ASSOCIATED PRESS, UPI, NEW YORK TIMES i TOUGH ECONOMIC CURE: FORD ■rn rn Iowa Doctors Pay up to $15,000 for Malpractice Insurance By Dale kueter Some Iowa doctors, including physicians in Cedar Rapids, are being forced to obtain medical malpractice insurance from Lloyd’s of London. Some are having to pay as much as $15,(NNI 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 expensive, particularly for certain specialties like orthopedics. “It is really hanging over doctors,” said Dr. II. R Birle-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 judgments. It is difficult to quantify what might In* superfluous “tests”, Dr Hirleman said, “but I know it is happening ” Growing Costs Are Charted So far as Dr Hirleman knows, no Cedar Rapids area physicians have been refused malpractice coverage. Neverthe less, doctors are searching for a prescription to combat the high insurance costs, and may look to the legislature for a cure. Malpractice insurance costs were dramatically charted at a recent hearing before Iowa Insurance Commissioner William Huff, III. Last March, Huff granted a M 4 percent rate inc rease to Aetna Casualty and Surety Co. of Hartford, Conn., for malpractice insurance. The company, which insures 275 physicians in Iowa, about IO percent of the total doctors in the state, asked and last month was denied permission by Huff to increase its rate's 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 malpractice insurance in Iowa, only a few do. Over the past five years Ebersold said his company has lost more than $18 million nationwide and through the first nine months of 1974 dropped over $13 million Ebersold would not commit himself lieyond next summer as to whether Aetna would continue medical liability coverage 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 211 Iowa hospitals effective next April I The company, Huff said, reports it has been losing money and has decided to withdraw from writing such insurance in about a dozen state's inc luding Iowa Argonaut is one of the largest underwriters of hospital liability insurance in Iowa and has the- endorsement of the Iowa Hospital Assn rn 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 Ik's Moines and Virginia (lay hospital in Vinton 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 limits coverage for all liability, with an umbrella policy covering any major catastrophe that may occur One of the largest awards in Iowa in recent years was the (Continued: Page 14A, Col. I.) Guerillas Ask Ransom, Inmates for Hostages MANAGUA, Nicaragua (UPI) — Leftist guerillas who shot their way into a diplomatic reception and captured the cream of the Nicaraguan diplomatic corps Saturday demanded $l-million ransom, release 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 States who is the dean of the foreign diplomatic corps in Washington, 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 capture of the wife. No Decision A government spokesman said “there has been no determination by the government whether or not to grant the exaggerated demands of the terrorists ” US, Ambassador Shelton Turner was guest of honor at the reception in a suburban Managua home, but he left 2(1 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 wound**! in the attack on the building. The semi-official newspaper Novedades identified the guest as a Nicaraguan Exxon execu tive. whose wound was described as superficial. Martial law President Anastasio Somoza declared martial law, surrounded the occupu*d resid ence with troops, imposed a curfew, and studied the ransom demands with his cabinet. 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 Agriculture Minister Jose Mara Castillo. They took hostage the host family, approximately 19 guests, seven servants, and four musicians. Sandanistas The raiders, who claim to bt* members of the Sandantsta Liberation Front, released the servants, Mrs. Castillo and her three children, and the musicians, and told them to ask the archbishop to serve as go-between with the government. Sandinistas is named for Cesar Sandino, legendary guerilla of the 1930s who opposed the U. S. occupation that brought the Somoza family to power A musician who asked not to bi' identified said the guer dias “came in firing like crazy " He said they would not let the hostages speak and kept them in a separate section of th** room UPI Telephoto SIMON SAYS—Treasury Secretary Simon makes a point during Saturday s meeting of President Ford and his top economic 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 Saturday that the nation’s biggest metropolitan areas lost 2 percent of their population over the last three years because of migration to suburbs and smaller cities and towns. The bureau, after classifying metropolitan areas by size to detect population shifts, said th** biggest areas were the only ones with more people moving out than moving in. There were virtually the same numt>er of p**>ple living in the biggest areas — those cities with a population of 2 million or more — as in 197(1, the Census Bureau said But only a birth rate which outpaced the migration losses kept the biggest areas from losing insulation overall. The bureau estimated that as of July I. 58 65 million peo-ple lived in metropolitan areas with imputations in excess of 2 million. In 197(1. 58 59 million lived in such areas The biggest in-migrations, or excess of people who move into an area over those who CIA Agent Reveals New York Spying By Seymour lier sh New York Tim#* Service NEW YORK — A former agent for the Central Intelligence Agency, in recounting the details of his undercover career, says that New York City became a prime CIA domestic spying target during the 1980s because it was considered a “big training ground” for radical activities in the United States The agent, who spent more than lour years in th* 1 lat** 1980s and early I97IK spying un radical groups in New York, told the New York Times that more than 25 CIA agents were assign**! to the city at the height of anti war ac tivity at Columbia university and elsewhere. In another development, Time magazine contended in its latest issue that Supreme Court Justice William 0. Douglas and former Rep Cornelius Gallagher (D-N J.) were among four political figures who were put under CIA surveillance Domestic Operations Time said the others were the late Sen Edward Long (D-Mo ) and Rep Claude Pepper, a Democrat who was said to have been “apparently suspect liecause of his contacts with Cuban refugees living in his congressional district” in Florida The New York agents were tightly controlled by senior officials in the New York office of the Domestic Operations Division, a little-known domestic unit sot up in 1984 by the CIA in more than a dozen cities across the nation, the former intelligence official said. The division’s ostensible function then was legal: To coordinate with the American corporations supplying “cliver” for CIA agents abroad and to aid in the interrogation of American travelers after their return from foreign countries. The former agent's description of life as a domestic CIA spy was provided during a sera's (if interviews this week. move out. wen* in metropolitan areas with populations of between I million and 2 million, areas with populations of less than 25(1.(NNI and rural areas. The gain in all three cast's was just over 2 percent The Census Bureau prefers to concentrate on figures covering several years to detect broad changes in population patterns, but the latest figures did reveal changes in the last year rn the 15 metropolitan areas which hold more than 2 million people One city — Cleveland — dropped off the list Its population. which has tiecn declining steadily in recent years, fell from 2.02 million in 1972 to I 04 million in 1973 The metropolitan area which suffered the biggest population drop last year was New York. Its population dwindled by I I percent to 9 81 million. Others losing population — in all cases less than I percent — were Boston, Chicago, Detroit, I/Os Angeles, Newark, Pittsburgh and St. Louis. Major areas gaining population from 1972 to 1973 were Baltimore, Dallas, Houston, Nassau-Suffolk, N. Y . Philadelphia. San Francisco-Oak land and Washington Today's Chuckle UNBREAKABLE Something that’s a little harder for your kids to pull apart (Continued Page 3, Col 5) 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 ! 975 upturn. Veto of Price-Hiking Milk Supports Urged The contact with the Times came after publication last Sunday of the first account of the massive spying The former agent said that his involvement l>egan with the advent of the Black Panther movement in 19H7 and the Increase of anti-war dissent during the last months of the Johnson administration “And then it start**! to snowball fr*im there." the former agent said Krt'akins. W iretaps The Times, working with details supplied by th** former agent, was able to verify that he served as an undercover in- W ASI 11 NGT! )N (AP) - President Ford is tieing urged to veto a bill that his advisers say will add six cents to the price of a half-gallon of milk and 12 cents to the price of a inurn*! of cheese*, according to inform**! sources Th** bill, sponsored by Sen Humphrey (IVMinn ) was pass**! quickly as congress rushed to adjourn before Christmas. Unless Ford signs it by next Saturday it will die automatically The bill would require that the federal government immediately raise by utxiut 18 per cent the level at which it supports the price of manufactur-mg-grade milk $1 Killian Cwt The agriculture department estimates that the lull would cost taxpayers $4(Hi million next year for government purchases of surplus dairy prod ucts The total cost to consumers, through higher retail prices and higher government spending, is estimated at up to $1 billion next year Sources Ixith inside and outside the government say Ford is tieing urg**l by the agriculture department and by his Council of Economic Advisers to kill the hill A W hite House source said that Ford’s domestic staff is very concern**! alxiut what he call**! the bill's “great inflationary impact to the consum er.” The source said a full analysis of the bill still is in preparation and the President has made no decision Ford reportedly has committed himself to sign another hill that is likely to raise gasoline and heating-oil prices by requiring that more of the nation’s imported oil be shipped in expensive American flag tankers Signing the milk hill would put him in the politically difficult position of also raising milk prices while urg mg Americans to whip infla lion Muir VUenUou On the other hand. Ford would risk the anger of dairy farmers if he vetoed the bill The bill drew little attention or debate as it sal It'd through congress in the last two days before adjournment Current law requires the administration to support the price of manufacturing-grade milk at a level equivalent to 80 percent of farm parity which is a formula based on the prices farmers pay. The milk support level is set March I each year and generally romulus at the same dollar level until tho following year Up is 85 Percent Presently the government supports milk at $0 57 per ((out mut'd: Page 3, Col. 1) To Change Management Of Economy Gazette Leased Wires VAIL, Colo. — President Ford will propose “hard and tough” cures for 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 American,” his chief spokesman said Saturday. Ford was det cribed as aiming at “fundamental changes in the 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 ailments with the economy and : getting hack stability in a long : term sens*', not to just patch : things together." Unanimous on Upturn Reporting on a 4 l /s-hour conference between Ford and his lop ecuuuuuc advisers. Nessen also said the President bad found “across the board unanimity” that there would be an upturn in the economy during the last half of 1975. He said everyone at the meeting agreed that the economy, whipsawed betw«*en simultaneous recession and inflation, “faces serious problems. ’’ The President also was quoted by Nessen as telling his economic experts that he wanted “no gimmicks,’’ 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 (address),’’ Nessen said What this whole program is aimed at is to get the economy hack to stability.” “Watershed Period’ “It was a consensus that this was a watershed fK'ritx! as far as the economy goes It needs more than a gimmick to get out ” In an apparent reference to the forees of recession, Nt*ssen also said “This is th** moment when fundamental changes are n*s*ded to avoid consequent*** down the road. ’’ Nessen indicate*! Ford will basically scrap the 31-point economic program he presented to congress last October on grounds that the picture has changed But. he said, That is not to (Continued Page 3, Col. 2) Today s Index SECTION A Lot* New* Deaf* s Accent On You** I (.Ittot mis (report Cord City Moll Notes SECTION a iowa News Television Toole Frank Ny# % Political Notes Marlon Movies Her Ord Reviews Bonding Form SECTION C Social Around the Town New Books Travel ........ ............. SECTION I) Sports Outdoor iowa Ft none tai New York Stocks Wont Ads Crossword Par ode Muon/me Comics l.M A > IO t • A I 9 IO 9 ia-»* IA 11 I IA X. i Vt A I IO ii/ ad IA I ia * •
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