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Cedar Rapids Gazette (Newspaper) - December 23, 1974, Cedar Rapids, Iowa Weather-- Mostly cloudy tonight, tuesday. C h a n c e of »now. Lows tonight, low his. Highs Tuesday, ii iller 20s. VOLUME 92 - NUMBER 348 rn (War Iva pitta (JlujfHf CITY FINAL 15 CENTS CEDAR RAPIDS, IOWA. MONDAY. DECEMBER 23, 1974 NIXON PAYS 1969 ASSOCIATED PRESS, I PI, NEW YORK TIMES .TAXES Congressional Panel Backs $12-Billion Tax Cut, Controls Gazette Leased Wires    posed a one-time 10-percent cut $10 to a taxpayer in the 10-per- \V ASH I NOTON — Tax cuts of >n 1974 federal income taxes. cent bracket but rises to a value up to $12 billion a year have Heller, appearing on NBC's of $50 for one in the 50-percent been urged by the congressional “Meet the Press”, called for a bracket. joint economic committee to 2-percent reduction in income Wage-Price Guides help pump up the economy and:. 4    .    .    aj?e    1 nce uu,aes head off what the panel called <iV ra on (>‘irnt’(1 income llP \ voluntary system of wage- possibly the worst recession in t0 ab°ut $13,200.    prjee    guidelines also was ad- more than 35 years.    The congressional joint com- vocated by the committee's Its proposal would give an mittee, warning that unemploy- Democratic majority to give extra $300 in spending power to ment will hit 7.5 percent by next President Ford authority to roll a family of four earning $10,000 a year and eliminate income taxes altogether for families making under $6,773. It would bring the buying power of low and middle income taxpayers back to where it stood at the end of 1973. before double-digit inflation set in. Backed by Economists    taxpayers the option of taking a The committee's tax-cut pro- lax CTedit ot 5225 P® ^pendent posal Sunday was joined bv *ns^ea(l of claiming the normal I both recession and inflation is to other tax-cut recommendations'a* exemption of $750 per de-use fiscal and monetary stimu-j f r o rn Andrew Brimmer. jP™*"1    |lants and intervention in some former member of the Federal A tax credit is subtracted "aSe-price cases. Reserve Board, and economist after the taxes due have been “Because of the effects of Walter Heller, chairman of the calculated. A tax credit has declining productivity on pro-Council of Economic Advisers equal value for all, while a duction costs, inflation as well under Presidents Kennedy and deduction’s worth rises as the as unemployment will be made johnson.    taxpayer’s income rises.    worse if the recession is allowed Brimmer, now dean of the For example, a $100 increase deepen, it said. Harvard Business School, pro- in the deduction is worth only    Rare    Stage summer, said a minimum of $10 back selected wage and price billion in tax relief should be hikes if he found them clearly enacted immediately, aimed at inflationary. low and moderate income per- goth Republicans and Demo-sons-    jcrats    on the committee agreed Tax Credit Favored that without new policies the The form of tax cut the ma-;V.^- w’^ S^‘P >nf° what could be jority of the congressional panel |^e worst recession in over 35 appeared to favor would offer years- The committee’s report argued that the only way to fight Brooke, Laird Urge Stiff Tax on Gasoline The committee said the economy is in one of those rare I stages when a tax cut carries little prospect of being infla-! tionary. “Fortunately,” it said, “in 1975 the same policies which are nr i at xxi,-irn_n-._i    „    ,    ..    .    _    needed to overcome recession WASHINGTON (UPI) - Sen-i Laird said    the tax could be and reducc unemployment will at°r Edward Brooke <D-Mass.) i used “to build mass transit sys-i also help to restrain inflation. lense ^Laird j^ureedPr^ 'emS ‘° eventuall>’ libcrale "In <™trast to some past idem Ford to increase gasoline!workers ,rom such heav5r de Pf1?'1,5' there,ls "?,e imtmedl' taxes    pendence    on the gas-guzzling ate future no trade-off between Brooke,    who    favors    a    lucent-    automobile.”    in?ati°" and unemployment." a gallon tax refundable to per-    Waste    "Ingrained"    ^bo    offset'I/ter'by sons making    under    $15,000    a    novv cauia 00 nsei ldier Dy Latitude on Pardons to President No Fraud; Total Bill $11,544 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.    NEW YORK (UPI) — New In a 6 to 3 decision, the court , York state tax officials Monday rejected arguments that a Pres- disclosed that former President ident cannot commute a sen- Nixon owed $11,544 in back fence on conditions which aretes jor    and had macje not authorized by law.    .    . _    . . .    . ..    payment in full last week. The decision came    in    the case    „ .    .    ^    ~ ,, nn    State Tax Commissioner of an army master sergeant i convicted of murder and sen- Marion Procaccino said the tenced to death    taxes were owed on a reporta- In 1960. President Eisenhower, hie gain from the sale of Nix-commuted the sentence to life 0ns Manhattan apartment in imprisonment on condition that j9fi9 the man, Maurice Schick, never    n    ‘    .. , i• • t« ,    . ,    “We found no evidence of be eligible for parole. *    fraud on the part of the former No Authority    President,” Procaccino said. . Schick's lawyers argued that    ^    probe Eisenhower had no authority to condition the commutation on a The commissioner said the punishment not prescribed by determination on the amount military law    owed Nixon was made earli- Writing for the majority. hL h ,    h(. Chief Justice Burger noted    . “that Presidents throughout our 1X100^ *nves^gafi°n by *be *ax history as a nation have exer-department, cised the power to    pardon or    Procaccino said the amount commute sentences upon condi-jOWed ^y Nixon included “all tions that are not specifically taxes interest and penalties for authorized by statute.”    the year ,969 The court .said the President's clemency power flows rom    normally    would be the Cons .tut,on alone, not rom    department    to , any legislative enactments. :    .    .    r    ,    . i : . ■    .    . . divu ee information on tax mat- -<* ihai ,o™r Blackman. Powell and' Kehn^r‘:sident'H'l’hr0Ughh^™U ist    had waived this prohibition. Justices Marshall,    Douglas    Tile state investigation lead- and Brennan dissented.    i'n8 ^e determination that Nixon owed the money began Death Decision year, said that Ford must decrease oil consumption no ter how unpopular the idea is He also said foreign oil im- elimination of the oil depletion mat- Ports s*lou^ be cut 3 million allowance and other tax barrels a day but doubted if changes. “I do not see immediate ac- Americans would voluntarily The report’s recommen- leader of a group of Florida side of the vehicle. In addition —UPI Telephoto CHRISTMAS CASUALTY — A 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. last April 25 when Procaccino Part of Schick’s argument I wrote to the former President was based on a 1972 supreme requesting information on Nix-court decision overturning the Ion’s taxes while he was a resi-death penalty as it had been;dent of New York prior to as-applied.    suming    the presidency. He contended that if Eisen- Congressional Finding hower had not commuted his! death sentence on the no-parole i Procaccino s request came automatically after a determination by a spe- Americans Say Attack City Rejects Won t Stop Pilgrimage JERUSALEM (AP) —- The sending shrapnel through the Low Bids on 5-in-1 Bridge ceptance of this gasoline tax.]''"h°U1 ^V^'ons difler sharply from the Baptists say’s a grenade attackjto the Replogle girl, an Arab    .TlondaTto reVc’t"the:"ould have escaped executional congressional committee economic policy of Ford, who that wounded one of them won t bystander received minor inju aecide<1 Monday reject theivt.hnn fhp rniirf ftwrturnpfl fhp earlier that month Shat Nixon low bid for construction of a The Cedar Rapids city council condition, he —   ----- «■»    lUBiiviia    uuivi    ohm*    k*    j "vin    i    uautiaia data a ki iruaiR- aiiav.iv I lit uc ivcuiuttit; Kin. an rn nu .    -    -    - but I think in the long run that ernment con,rols the American people are going "> ani reluctantly persuaded has said the nation needs more stop their Christmas pilgram- ries.      ",    -    -    »    death p,.na„v He then would to recognize it is not what we'hat our wasteful habits are so fiscal restraint to fight inflation, age in the Holy Land.    The    Palestinian Liberation proposed "five-in-one bridge have rpccjved a |l((1 s(,ntenc(. want, but what we need When ingrained that it is unrealistic to j The administration also has in- .-We wi|| spend christmas in; Organization announced in and dam project.    and would have been eligible for owed more than $500,000 in back federal taxes, interest and penalties. It was also disclosed at they do recognize thaL I believe expect that we will do so (con-;dicated it does not believe a Bethlehem as we planned.” saidIBeirut that it was responsible, The bid, submitted jointly by I pa70ie*hTs "lawyerrargiiecT that time that Nixon had paid they will be willing to bite the serve fuel),” Laird smd.    large    tax    cut is needed now. the Rev E c McDaniel of for attack and warned “all Cramer Bros. Construction Co in other actions before recess- no California state taxes while bullet, to tighten their belts,”j in other developments:    0ther    mai°r    committee rec- Jacksom'ille after a visit to the tourists traveling to Palestine and Jensen Construction Co. of ing untii Jan the court; in the White House, although his Brooke said Sunday in a tele-: syndicated Columnist Jack emendations were:    hospital where doctors removed that we will not be responsible Des Moines, was for $13,911,000 Agreed to decide the constitu- legal voting residence remained vised interview.    Anderson reported Monday that: A less-stringent monetary pro-    a thumb-sized piece of shrapnel    f°r what might happen to r includes construction of a    tonality of state laws requiring    in that state. Weight    Tax    Ford will rimiest mandatory en 8ram I*1311 the one being fol-    from 17-year-old Dejean Replo-    them. The Israeli military dam over the Cedar river and    that printed political advertising    After a lengthy investigation vteigni    arpv t^nirols in his forthcomine ^°wed bv the Federal Reserve    gle’s thigh.    command said it was doing all; two levels of highway above the    identify the printer and who    headed by Procaccino, the trg.v tonirois in ms ion oming,  -j ^    gir,;it could to protect Christmas pil-!dam to carry traffic on 1-380 paid for the ad    iformer    President    was    notified Brooke also suggested cars be State of the Union address be- The doctors said that the taxed by their weight and pro-,, . ■    .. , posed replacing the federal lori' ,he new con«ress ln mldi highway trust fund with a new January* general fund for mass transit Anderson said Ford is sifting and social programs.    through a package of proposed Laird, a close personal friend mandatory measures and that of Ford who served as an infor- he is determined to cut oil im-) mal adviser early in his presi- ports bv at least I million bar-dency, called for immediate gas re*s a ^a>' rationing coupled with a 10-cent- Tho congressional commit- Board. Expansion of federal public would be1 fine. “In God’s Hands” (Continued: Page 9, Col. 3.) grims. Today's Chackle and E and F avenues. The Refused to block a lower court on Dec. 6 that he owed the state Too Far Apart    bridge-dam    complex    is    a joint requirement that drug manufac-$11,544 17, the commissioner In Washington, American of-1 project of the city and the state t u re r s individually caution said. Th KS could have happened in; jjcia|s sajd Israel and Egypt are'h i gh w a y commission, which parents during community-wide “On Dec. 17, we received an said theist-||    negotiating    range    of    earlier    accepted    the    bid    contin-    vaccination drives about any acceptance of our determination dight danger of harm from the and payment in full,” the com-I    j    vaccine.    j    missioner    said. j the United States, too, I girls mother, Mrs. William Re- eac^ oRler an(j t00 far apart for gent on city approval ^PMBB^Mjptogle. we are in Gods harxls|gecre^ary ^tate Ri;^inger t0i    r’nsi    vaccine. A woman finishing her j wherever we art*. I rn grateful ^ pIanning a trip t0 the Middle    *    Affirmed    a    lower    court    which    _ Christmas shopping stepped in- that Jeanie wasn’t more serious-iEast    j    The    city's    portion    of    the    con-    upheld a Michigan law forbid- to an elevator and was met Iv injured.    But the gap is being narrowed *rac* was set at $7,750,000, far ding discussion of birth control Cos! Production per-gallon tax.    tees urged that federal and with a sulky “What floor?” The 17 pilgrims from Florida lhrough an intensive diplomatic above what city councilmen jn pubjic schools.    in I    kl    I Congress’joint economic com- state governments draft plans from the operator. “Six.” she had just boarded a bus outside l>xc.hur^e with Egyptian Pres were expecting About two    stand a ruling that a Back to Normal mittee recommended an oil for conserving fuel and electric-j replied, “if It isn’t out of your the Church of St. Lazarus in jdt,nt Sada( emphasizing recov- ycars a8° tht‘ city's share was judge jn Mississippi acted im- PITTSBURGH (UPI) — The price rollback Saturday along ity and cut growth of energy use way.”    copyist    East Jerusalem when a grenade with a 30-cent-a galIon tax. to 2 percent a year.    I    exploded about 30 feet away, (Continued: Page 3. Col. 7 (Continued: Page 3. Col. 5.) (Continued: Page 9, Col. 7.) Great Power Inside Agency CIA Official Tied to Domestic Spying Unit By Seymour Hersh New York Time* Service WASHINGTON - Sources knowledgeable about the Central Intelligence Agency believe James Angleton was permitted to continue his alleged domestic operations because of the great power he wields inside the agency as director of counterintelligence. It is this group that is charged with investigating allegations against CIA personnel made by foreign agents who defect; in other words, it must determine whether a CIA man named by a defector is, in fact, a double agent. Fallowing the New York Times report Sunday, President Ford said he will not tolerate illegal domestic spying by the CIA and that he has been assured by CIA Director William Colby that the agency is not involved in such activities now. The report also prompted demands for an immediate investigation from former CIA of-f i c i a I s and members of congress. The CIA declined any immediate comment, but sources said Colby was holding a top-level agency meeting Monday about the disclosures. Senator Proxmire (D-Wis.) called for an investigation by the justice department and said he would ask Secretary of State Kissinger to have former CIA director Richard Helms resign his post as ambassador to Iran Secretary of State Kissinger said the F’ord administration will “cooperate to the fullest with any appropriate investigation.” The justice department said earlier Monday it is examining the charges. Senator Ervin (D-N. C.) said Sunday that he received information while chairman of the senate Watergate committee that the CIA was involved in domestic intelligence. “We got some information in the Watergate committee indicating the CIA had gotten off its reservation, but I didn t pursue it,” F>vin said. He said the activities of the CIA were not within the scope of his committee’s investigation Discussing t h e counterintelligence arm of the CIA Victor Marchetti, a former CIA official, noted in a book published this year that the “counterintelligence staff operates on the assumption (hat the agency — as well as other elements of the United States government — is penetrated by the KGB “The chief of the CIA staff (Marchetti did not identify Angleton) is said to keep a list of the 50 or so key positions in the CIA which are most likely to have been infiltrated by the opposition, and he reportedly keeps tin* persons in those positions under constant surveillance ’’ Dozens of other farmer CIA men talked in recent interviews with similar expressions of fear and awe about Angleton He was repeatedly described by former CIA officials as an unrelenting Cold Warrior vs no was convinced that the Soviet Union was playing a major role in the anti-war activities. Despite intensive interviews, little could be learned about the procedures involved in the domestic spying, except for the fact that the operation was kept carefully shielded from other units inside the CIA. Angleton, reached by telephone this week at his suburban Washington home, denied that his counterintelligence department operated domestically. “We know our jurisdiction,” he said. Angleton told of a report from a U. S. agent in Moscow who was relaying information to the (’IA on the underground and radical bombings in the U. S. during the height of the anti-war activity. "The intelligence was not ac quired in the United States.” Angleton declared, “it came from Moscow. Our source there is still active and still productive; the opposition still doesn’t know.” Angleton then described how the CIA had obtained information from Communist sources about the alleged demolition training of black militants by the .North Koreans. Ile also told of recent intelligence efforts involving the KGB and Yasir Arafat. chairman of the Palestine Liberation Organization A number of former important FBI domestic intelligence sources took issue with Angleton’s apparent suggestion that the domestic anti-war activity was linked to the .Soviet Union. “There was a lot of stuff ion radicals in the U. S.) that came in from the CIA overseas,’’ one former official recalled, but a lot of it was worthless. A number of former F Bl officials said in interviews that the CT A’s decision to mount do mestic breakins, wiretaps and similarly illegal counterintelligence operations undoubtedly reflected, in part, the longstanding mistrust between the two agencies. In 1970. FBI Director J. Edgar Hoover ordered his bureau to break off all but formal liaison contact with the CIA, forcing lower level CIA and F’BI officials to make clandestine arrangements to exchange information. By the late Sixties, one former FBI official said, all but token cooperation between the two agencies on counterintelligence and counterespionage had ended. “The CIA was never satisfied with the FBI and I can’t blame them.” the former official said. “We did hit-or-miss jobs. “We were constantly cutting the throats of tin* CIA in our dealing with them, lf the White House knew about it, they were too afraid of Hoover to do anything about it.” country's soft coal production returned to normal for the first time in six weeks Monday following ratification by 4.500 mine construction workers of a new three-year wage contract. The construction workers, whose picketing activities had closed coal mines in several states the past two weeks, accept cd the contract by a 2-1 margin in secret ballot voting during the weekend, the United Mine Workers said in Washington Sunday. The construction workers had picketed mines since Dec 9. when the UMW’s 120.000 miners oegan returning to work under a new three-year contract which ended their 24-dav strike. Today's Index Comics — ..... IS Crossword IN Daily Record____ ..... 3 Deaths .... .r FJditorial Features ____ ____.6 F’arm ................. .....IO Financial ....... 16 Marion .............. ......4 Movies .......... ... II Society _____ 8 Sports iii: State ..... S Television ,. ...... .... 9 Want Ads............ IMI mmmm I I ;

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