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Cedar Rapids Gazette (Newspaper) - June 27, 1974, Cedar Rapids, Iowa Weather-- Fair tonight with lows in the upper 5fls. Partly cloudy Friday with highs in the lower 80s. Cf dor- IWntta CttjfH'f rn CITY FINAL 15 CENTS VOLUME 92-NUM HK ll 169 CUDAK RAPIDS, IOWA, THURSDAY, .JUNK 27, 1974NIXON BEGINS ASSOCIATED PRESS, UPI, NKW YORK TIMES TALKS St. Clair Responds To Panel Evidence WASHINGTON (AP) - Attorney James St. Clair opened President Nixon’s impeachment defense before the house judiciary committee Thursday. Before entering the closed hearing, he told reporters he regarded as the most serious charge the March 21, 1973, payment of $75,000 to convicted Watergate burglar E. Howard Hunt. St. Clair insisted the money was for Hunt’s legal fees and not part of the Watergate cover-up, as has been alleged by a federal grand jury. St. Clair arrived at the committee room armed with a bulky brief and other documents, but his request that he be allowed to call six witnesses to buttress his case was rejected by the committee Wednesday. The committee agreed to call two of them, former White House counsel John Dean and Frederick LaRue, a former White House and Nixon re-election campaign aide, but said it wants the other four interviewed first by the committee staff to see if their testimony is needed. Mitchell, Haldeman be able to complete his defense i in two days. An effort to win approval of St. Clair’s full list of witnesses failed on a 19-19 tie vote that produced a sharp partisan split; in the committee and may have, influenced some Republicans to vote against impeachment. Rep. Sandman (R-N. J.), who offered the losing motion to expand the witness list, said he still was undecided about how toj vote. "But if I don’t hear from! the witnesses I want to hear, I’ll never vote for impeachment,’’! he said. Rep. Railsback (R-Ill.), also! undecided o n impeachment, said he thought the committee had made "a very bad mis-j take” in rebuffing St. Clair. “Lynch Mob” Presidential counselor Dean j Burch said Thursday the refusal to hear witnesses requested by President Nixon’s lawyer creates "the appearance of ai partisan lynch mob.” Burch said the committee de-; cision to definitely call only two of the six is patently unfair. "If the President had stolen a Seeks Accords On Trade, Arms MOSCOW (UPI) — President, After shaking hands with the Nixon flew into Moscow Thurs-i crowd, Nixon and the Soviet day for the third U. S.-Soviet leaders got into a car and sped summit in a little over two at 50 miles an hour to the years. Soon afterward, he be- Kremlin where a human wall of gan talks with Leonid Brezh- security forces opened a path nev aimed at new economic for the men to enter for their agreements between the super- j talks. powers and slowing the nuclear | The public greeting was difarms race.    ferent    than    1972 when crowds Officials originally hoped the were kept to a minimum. Work-meeting would produce a per- men lined the motorcade route manent strategic arms limita- to the Kremlin Thursday three tion agreement. But Secretary hours before Nixon’s plane ar-of State Kissinger said Tuesday rived and the government set that there would be no such up stands to sell hard-to-get cu- JHUmrnm Soviet Communist Party Leader Brezhnev greets President Nixon in Moscow loaf of bread, he could have Two of the other witnesses St. j called witnesses,” Burch said. Clair wants are former Attorney; The committee adopted a two-General Mitchell and former tier witness list, naming five White House aide H. R. Hal- who would definitely be called dcman.    and listing five others to be in to a letter requesting their ap-! terviewed by the staff to see if mer . camuaicn officials for pearance, St. Clair called Hal-! their testimony is wanted.    mer l°P campa,«n 0fflcials for deman’s testimony ‘‘critical to -The first list includes Dean.; establish that the President did LaRue; Herbert K aim bach. Nixon’s former personal lawyer; Alexander Butterfield, former Report Says Aides to Humphrey,    Ask Mills Took Fifth on Dairy Gifts not direct ‘hush money’ payments to E. Howard Hunt on March 21, 1973, or at any other presidential appointment secre-time.”    tarv who now heads the Federal St. Clair said Mitchell will tes-1 Aviation Administration, and tify that in approving the $75,000 Assistant Attorney General payment    he    understood    the    re    Henry Petersen. quest    to    be    for    legal    fees    and    On the waiting    list    are former heard no mention of additional White House aides Haldeman funds for any other purpose. and Charles Colson, Mit-Although the March 21 events chell, Paul O’Brien, former law-are the focal point of St. Clair’s yer for the re-election campaign presentation, he said he will committee, and William Bitt-deal with all the allegations be- man. lawyer for Hunt. In a letter to    the    committee St. Clair said all    six    of the wit- WASHINGTON (AP) - For- Hubert Humphrey and Wilbur used by Humphrey’s cam paign. Chestnut refused to testify un pot! said. Mills sent wold    countries    to    reirriDose!    Rremier Kosygin and President through an attorney that he Inf *rao countries reimpose    J*    Rrp„hnpv anilin nm mnnt aith thn rom 0,1 production cutbacks if brae Nikolai I odgorny. Brezhnev did .would not meet with the com-,    ^^ PaIestjnlan j not greet Nixon in 1972    on .positions ...     - arranged * f°r guerilla raids, the right-wmg \    j* pact this time—not even an "interim” one similar to a 1972 agreement to limit nuclear defensive arms. Underground Tests There was still hope among officials that by the time Nixon speaks on Soviet television next week, the leaders will have agreed on limiting underground nuclear tests. Nixon, who met with Brezhnev in Moscow in May, 1972, and again in Washington and San Clemente, Calif., in June, 1973, walked up to a flag-waving (crowd at the airport to shake hands with Soviet citizens — Al aid n    1M    aud «)me Americans — before New Oil Boycott dePartins f°r his taiks at the J    -Kremlin. By Associated Press    Brezhnev    headed the welcom- Lebanon has decided to ask Pafly which also included UPI Telephoto fore the committee. He presented each member with four telephone directory -sized books filled with evidence, the largest of which dealt with the Watergate cover-up. Votes Influenced St. Clair said he expected to Amendment and refused to tes-|ed informally, it said. tify to the senate Watergate committee about apparently illegal campaign donations, according to a confidential staff report. Humphrey and Mills have been asked to meet personally with the committee to give information about their unsuccessful 1972 presidential campaigns but neither has complied with the requests, the report said. r    .........-- •------ j    —    until    nftpr    pertain    lot/ic    WI    I    iii    Hies    IO    .HUH,'*    r    aiesilllliUl    I---- o.........—    "    ---- Mills have invoked the Fifthjder oath after being interview.- ™    '(Ws-    in    Lebanon    in    reprisal    'K    r    o    u    n    d    s    of    protocol.    Even lative and matters are cleared so far hasn’t The former chairman of the ~p‘    "^Beirut    newspaper    Al Jarida re- most powerfulleader as head of Mills campaign, Joe Johnson,    J    ported    Thursday.    *be    Communist    party,    he holds also invoked Fifth Amendment!report noted that some of rp^e p^p sajd Lebanese Pre- no Pubbc post. protection against self-incrimination and refused to testify, the report said. Not Yet Adopted The report has not been adopted by the committee. A cover letter from the com cumbers and pineapple — a common Soviet step to ensure a large crowd. Thousands of Police But many did not see Nixon, with crowds kept behind ropes 150 feet from the motorcade route to the Kremlin. Thousands of police, troops and volunteer civilian police called Druzhinni-ki lined the motorcade route. "The last time we didn’t know when he was coming, but this time we were told in advance,” said one Russian waiting to see the American leader. The Communist party newspaper Pravda carried a front page picture of Nixon and said the Russian people "expect the new Soviet-American summit to mark a milestone along the road for further improving and developing relations . . . and of (Continued: Page 3, Col. 8.) Cites MIRVs As Big Issue In Arms Talks the records of    the milk produc-1    mjer fakieddin    Solh will make    Before    Nixon left Brussels, he ers co-op were    destroyed in 1971 j    the request at    Jhc emergency    Iassured    Europe311 allies he and might have shed more light j meeting 0f the Arab League I *ould make n0 deals with the on the assistance given the Mills flf>fpn«sP rnnnH! railed in Cairn I Russians at their expense and campaign.    |Monday to discuss the Israelii signed a declaration reaffirming Similarly, it said that Chest-, raids into lebanon.    J    the    U. S. commitment to HIO nut destroyed virtually all of i    "Urgent Need”    North Atlantic Treaty Organiza- Humphrey’s campaign financial The council is made up of (NATO). He also said he________ mittens    chief    counsel.    Samuel    records for the    period preceding    defense and foreign ministers of    hoped in Moscow to achieve    jmujtjpje*    warhead missiles    and Dash,    said    the    report    is    the    April 7, 1972.    the date a new    the league’s 21    member states,    process    on ending the arms    jeaye    ^    §ovjets wjth    more work of both Democrats and campaign finance law took ef- A government spokesman said race Republicans on the staff. He feet. It said he did so in the j the premier w as heading the: ^ high MOSCOW (UPI) — Russia’s proposal to control strategic arms would give the U. S. an advantage in total number of IT P ... . ,    .. .    missile launchers, a senior U. S. U. S. official said he nessVsd'heSwanted coujd    SlSS!    TXTlSav's    with 21, information on the March 1973, conversation, in Nixon discussed making pay-1 press ments to Hunt to keep him miHpp on WdwWcHav a lori8inaI draft dePutV RcPub' such destructlon of records isn t impress on the conference “the wou,<? know after Ihursday newsmen aboard President Nix-whichl Ma n a h ti a JL/Th lican counsel Donald Sanders. illegal    urgent    need for collective and meeting if there can be an ,    .    Moscow, wmcn was obtained by The Associated ,ru_______ „    _u..... Personally Involved effortlvm Arab art,on to doter!agreement by the end of the New Details The report said Humphrey, Democrat of Minnesota, got (Continued: Page 3, Col. 7. effective Arab action to deter agreement by Israel.”    year on arms The report said Mills was per*] The spokesman declined to bc thought Brezhnev control. He said sa'd 'hc Pr°P°sal "is n0! •“*?- had a able because the gap isn’t big $25 OOO in eo~r>orate aid from the **«    k-    i me spokesman declined to ,,v    -    enough.” Mills could not be reached for mnk producers in 1972 and an-^'V"™ ™'1 "„a'    comment on the report that Solh “afer *,ake m ,rylng 10 reach His reference was lo the lf. S. m>.iHi>nt u,h,nh lh,, committee| wou|d scck rencwai 0f ,hc oil an agreement. Letter Says Dean To Clear President on Hush Money 1 comment. A spokeswoman , .incident which the .......... ^|Xa! i“.^®tvgl.S mTk|taVeS,lgate<1 " ci,cd ,es,'mon.v I war Humphrey said he had not seen j produccrs and tvv0 sjstcr dairy    aL^TBaArab gunners and Israeli the report and "he won’t want I cooperatives.    ■    invitation    to    appear    at    a    forces    traded    artillery    fire to comment on it until it is in its; ..    .. ..    .    „ .bipartisan Iowa farm rally across the Lebanese border on final form "    UoM^n^mel^to    thejWhi°hwaSh*ld0c‘ 2' 1971 i'he    elopes    of MI. Her- WASHINGTON (UPI! - A sc-:idenl did not direct hush money The report gives new details b icf prt,sidcntial campaign of: DcsP'te "f, bipartisan appear-)mon Thursday, tho Israeli mili-crct White House letter say!' payments to be made to Hunt. of corporate aid for the Hum-;    p Democrat Mills who ',ncc’ ‘ho rally was .minced and tary command said did President directly and, Mills _eampaipts by    Ji^Promoled by the milk producers! A —, » co-! and means committee. It said and a sister co-op. campaign, anyone to call (Attorney Gener-tbe nations largest dairy Nixon of charges he ordered aj^ \jitchell concerning the hush-operative, Associated Milk Fro- hush money paid to Watergate;money payments, bul that al Queers Inc    lclll U1 „    „„    „„r. burglar E. Howard Hunt, I PI most the matter was 'left hang- 11 a|so says. that both Hum- revenues in corporate and cWcnK riled bVlhereno'rt’ learned Thursday.    mg'and nothing was reaved,Mdlag?    ^-corporate    donatL _ from advantage in MIRVs, multi-Brezhnev Prestige    headed missiles with warheads "If detente fails, it’s bound to that can be fired at different hurt Brezhnev’s prestige.” the targets, vs. the Soviet launcher official caid. "Any leader who advantage, pursues a policy for four years The official said both Secrc-and it fails, is bound to suffer a tary of State Kissinger and loss of prestige.”    Nixon felt that the most vital Brezhnev was all smiles Soviet-American issue during A communique said several mortar shells were fired from Thursday as he greeted Nixon the summit was limiting new a IjihyinpcA tprrifnrv' at thn Mar ..    .    ~    ,____.    m    m___n:_i. _____1____1    _ St. Clair said. "Dean will testify that James St. Clair. Nixon's Watergate lawyer, sent the letter to, the bouse judiciary committee ( ab(‘d Dante ^ March 21, 1973 Wednesday asking that Dean, Nixon’s principal Watergate ac- -1 that Mills received the cquiva-j ln ,he M'"* ta™Paign- 'h>' lebanese territory at the Mar al Vnukov0.2 alrporl. me ./• uidi wiius V.V.CI»cu int CMU congressman himself was per Dov sector, hire was returned' rhis silvpr hair lent of 43 percent of his^ cam- sonajjy jnvojved jn one 0f t^e in- and no Israeli casualties were blowing in the wind, chatted with Nixon as they reviewed the nm. U t A xf    * the co-ops. their political trusts. Vn inuitatinn to J I$1 .OOO each from the Minnesota ,    .    .    /    1    an    invi‘ation    to    spec,.. _ -------    —------ Mining and Manufacturing Co. and tbeir members' emP! > farm rally in Ames, Iowa. Oct. government fears Israel may reported, the command said, ly solicit-! In Beirut the newspaper Ail honor guard aii<T at one point •ak at a Nahar said that the Lebanese I    his    head    and and related Bittman’s request for legal fees and living ex- witnesses'' toT®caHed w'the he believed "Dean will con- ney Jack Chestnut, was aware sent two letters to Mills on h.Kh monov mattpr \ conv of f,rm he made the call to Larue that corporate money was 24 and Feb 7. saying the ( ‘ ac (lht,linpj frP    in the morning, before Dean being used lo finance $25.1)00    mittee feels it is necessary critical Post's,” St. Clair, said, adding It said there is evidence that Humphrey’s campaign manager. Minneapolis attor- and officers. Letters to Mills Committee Chairman Ervin 2, 1971. The affair was billed as occupy the southern part of Le-a bipartisan gathering, but Farr banon because of the guerilla multiple warhead missile development. The official contended that the U. S. is in no real danger of being outclassed by the Soviets unless it should stop working on missile improvement as the So rtie letter was obtained from a ,n In* rJ10rlJ‘”*. Republican committee member m,,t wlth ,he President. OMS told the senate Watergate committee that payments to Hunt were discussed March 21, 1973, at an Oval office meeting with Nixon and former White House chief of staff H. R. Haldeman. Within hours, court papers say, presidential consultant Frederick Larue paid $75,000 to Hunt’s lawyer. In the White House letter, St. Clair said Dean would testify that Nixon did not order the money paid, and, in fact, the decision to give Hunt the $75,000 was made before Dean and the President met. "It is anticipated that Dean will testify that in his meeting with the President on the mom-j mg of March 21, 1973, the Pres-! worth of computer-maU lists conifer Mills to be interviewed, the re- testified that the dairy co-op attacks on Israeli towns and Jail took over its financing and pro- villages. Missiles, No Jets Government sources in Beirut motion in order to tout Mills for President. Some $45,000 in cor- (Continued: Page 3, Col. 2.) Continued: Page 12, Col 6 Movie Stars, Businessmen Bilked of $100 Million I off ti J/'* Chuckle The joy of motherhood — | what a woman experiences: when all the children are finally I in tied.    Copvrloht NEW YORK (AP) - Top show business personalities, business magnates and big name lawyers were among victims of a $100 million oil drilling swindle, the Wall Street Journal said Wednesday. The newspaper said it may be the biggest swindle of its kind in history. Investors sank about $130 million in it and all but $30 million went astray, the newspaper said The Securities and Exchange Commission called it a "Ponzi scheme,” in which the swindlers pay off early investors with money from more recent investors. The newspaper said the case centers on Home-Stake Production Co., a Tulsa, Okla., tax-shelter oil drilling company, which the SEC declared insol vent last September and is investigating. Martin Bregman, producer of the police movie "Serpico”, explained why he invested. "We believed the people, we saw the facilities and, when you look at the list, we were in good company,” he said. Comedian Buddy Hackett says he hasn't “the vaguest idea” why he put $208,000 in Home-Stake "I just tell jokes,” he says. "My lawyers and accountants look into these things and explain them to me in baby-talk. If it sounds OK, we go ahead.” Show business Investors identified by the newspaper and the amounts they invested included Andy Williams $538,000, Jack Benny $300,OOO, Rock singer David Cassidy $999,991 Waite! Matthau $2(H).(KX) and Liza Minnelli $231.(HK). Businessmen w h o had a major stake included Fred Borch, former chairman of Gen-e r a I Electric Co., $440,920; Walter WTieton, chairman of the First National City bank, $211.(HK): Russell McFall, chairman and president of Western Union, $394.(HH). John G. Martin, executive committee chairman of Hueblein Po., $361.IHM), and Ralph Hart, director and former chairman of Hueblein, $322,(HH). Lawyers included Henry Fox of Washington, $108,500; Earl Kintner of Washington, $127,000; and Richard Storrs. $115,000, The trustee in Home-Stake’s bankruptcy and tour groups of investors have filed suits in federal and state courts in Tulsa accusing the principals of wrong-doing, the Journal said. At least one federal grand jury is expected to convene soon, in Los Angeles or in New York, according to the newspaper. Oklahoma oil lawyer Robert Trippet, who founded Home-Stake in 1S65 and ran it until he resigned last summer, has consented to a court injunction against securities law violations without admitting or denying any charges by the SEC, the Journal said. The newspaper said he claims he acted in good faith in raising money for oil drilling and warned investors that it was risky. Prestigious Firm The investors charged in their suits that Harry Heller, partner in Simpson Thacher & Bartlett, a prestigious Wall Street law firm, either knew or failed to exercise enough care to know that Home-Stake was engaged in illegal activities. Heller be th re w back laughed One large red sign in English viets continue, but said it was read, "Welcome President vital to get an agreement as Nixon". One in Russian, said, soon as possible. "Welcome, Mr. President, to "If we stood still and the Sovi-Moscow”. Nixon’s wife, Pat. !et MlRVed all their missiles, by given a bouquet of red 1981 they would have a slight advantage,” he said. "But if we -J    keep    on building, there’s no way for them to catch up in numbers in the next decade." The importance of getting an agreement lies in the fact that if the current Strategic Arms Limitation Talks (SALT) agreement allowed to expire in 1977 was roses nicd any impropriety. His firm was named a defendant, too, although there was no evidence its other partners had anything to do with the deal. The Journal said many investors relied on the fact that big names had put money in the scheme and did not check on its operations. The newspaper said Harvey Garland, operations manager for Home-Stake in the late 1960s, said it drilled five wells on a vegetable farm near Santa Marta, Calif., and to make things look more impressive got permission from the farmer to paint some of his irrigation pipes orange and code them with oil field markings. Garland said there was one legitimate 3,500-foot well and at least three dry 500-foot holes. (Continued: Page 12, Col. I.) is without an interim extension involving MIRV control, the arms race would be "out of control,” the official said. Today's Index Comics .............. 31 Crossword ......... 31 Daily Record .. 3 Deaths ............. ....... 3 Editorial Features ....... 6 Farm .............. ...... 27 Financial ........ ...... 32 Marion ....... .. . ....... 8 Movies .......... 28,29 Society .............. 16-19 Sports ............... ... 21-26 State ................ 4,3 Television ...... ... ..... 30 Want Ads . 34-39 ;

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