Cedar Rapids Gazette (Newspaper) - March 5, 1974, Cedar Rapids, Iowa
Fair to partly cloudy tonight and Wednesday. Lows mid lo upper 30s. Highs Wednesday near 55.
VOLUME 92 - NUMBER 54
t echie Utapidd (DttjctTf
CEDAR RAPIDS, IOWA, TUESDAY, MARCI! 5, 1974
ASSOCIATED PRESS, UPI, NEW YORK TIMESEMBARGO PREDICTED
Gazette Leased Wires
Food Tax Cut Faces Junk Pile
DES MOINES (UPI) - Gov.
Robert Ray said Tuesday he would rather scrap his entire sales tax exemption package than gamble on possibly placing the state in a deficit position.
The governor, who threatened to use his item veto to hold the budget in line, said he met with legislative leaders Monday eve ning and concluded that lawmakers could easily “end up $100 million in the hole three years from now” if they attempt to approve all the money bills they are considering.
He said there were “limits to what government can do” and said it would be deceiving the people to over-legislate this year and then face a possible tax increase in several years.
Ray said he strongly opposed a tax repeal on home heating fuels and hoped that lawmakers would eliminate that provision from the priority legislation.
The original intent of the bill, a key plank in Ray's legislative program, would repeal the 3 percent sales tax on food and prescription drugs.
He said if the controversial home heating fuel exemption was not removed he would con sider vetoing the entire propos a1.
Backs Coal Mine
“There is no way we can do all of these things responsibly that they are talking about and the leadership feels that way too,” Ray said.
The governor urged legislators not to scrap his $5.5 million proposal to establish an Iowa
experimental coal mine, which- . ,e ^er an overwhelm- Arab attack last October. the right-wing Likud bloc, who James Callaghan, 62, chair
he said would be a very' short- VQje 0f confidence Tuesday lire Mpir’s walkout I
Wilson In; Hearing Wednesday I Arab Talks
On Secret Jury Report $yn(|gy |0
WASHINGTON (AR) - U. S. Judge John Sirica will listen to arguments in open court Wednesday before deciding what to do with the secret Wa-
when he made his earlier statement that St. Clair planned to meet with Sirica.
Participation of Wilson and Smokier in the meeting indicat-
WASIIINGTON (AP) - Com-
tergate report given to him by a tho P™110 con,f‘rn ™ay bavc
LONDON (AP, - Ncwly-in-.Woral grand jury. for tw0 P"^ removal of the o.l crnhar
stalled Prime Minister Harold Alter meeting with attorneys ^ men indicted Friday, they against the U.S. wi h sup
Wilson named his cabinet Tues- in bis office for morc ,tuin an i would be concerned that release Pbes at pre-October-war levels day and moved qir 1 1 Wnur Slirl/** cptw>HnlMi th<* hear- .. . __Ii« the nntimistie exnectation of
the national coal
his cabinet Tues- in ms on tee mr more nan en,. ^ concerned that release P1U!S dl pru-uuuuc.-v.ai
I quickly to fettle h(,ur> Sirica scheduled the hear- j p r( ^ could prejudice the ’3 ,*le optimistic expectation of coal strike that int! for IO a.m. Wednesday and h former white authoritative sources in ad-
• cnU 4V,o4 “nil intnrr»ctr>H nyrfiP1; 8 mmnn rJ nnvf ^iinHav’ct mpphntT
may state their views regarding 1 -1 Haldeman and
were charged with conspiracy, 1972 grand obstruction of justice and perjury stemming from an alleged
refused to — I*®*1 to b,ock the investi8ation
Vance of next Sunday’s meeting
Ehrlichman of Arab oil ministers in Libya-
Prices are likely to drop to about $7 a barrel from the current $11.65, it was learned as Secretary of State Kissinger re-
t hr en tens to paralyze the said that “all interested parties « aides
(.ountry may state their views regarding,
EW*., « “S“o; ZITS £
usais cass «!>«•*-■
announced he hoped to resume ^urj‘. __________
pay negotiations with the state- Sirica s office refused to say ^ . watergate breakin. Five turned from an eight-day trip to
run National Coal Board on wbo hid asked for the hear mg. f)ther Nixon associates also the Middle East and Europe.
Wednesday morning. Participants in the meeting were indicted. Restoration of production,
Negotiations broke off Feb. IO included .James St. Clair and Monday, Haldeman called a coupled with conservation mca-
I ' Hauser from the White news conference on the front sures taken during the recent
lenry Ruth, deputy spe- jawn )11S j^g Angeles home:squeeze, will bring about a plen-jecutor, and Philip La-predicted he would be ex-, tiful supply of oil for Ameri-Richard Ben-Vemste onerated 0f the conspiracy, ob- cans according to estimates, and Peter Kremder of the pros- -- ---
(Continued; Page 3, Col. 6 )
after former Prime Minister Ed- Richard ward Heath’s Conservative gov- House; ernment refused the minersvcial pre pay demands as too infla- covara, tionary.
_ , ., , . .. 1 ecutor’s office, and John Wilson
Corm ey, president of the Na-1 k| „
tional Union of Mineworkers,1 tl,lu met with Wilson’s new employment secretary, Michael Foot, and then told newsmen he hoped to resume pay talks. This could let the miners return to work while negotiated.
Change of Attitude
for ll. R. Haldeman and John Ehrlichman.
The surprise announcement raised the possibility
Generation May Start in April At Palo Plant
that the j
a new pay deal is Whjte j|0US€T planned to oppose I release of the report and possibly its transmission to the house By Phyllis Fleming
, ^ , .. . .. impeachment inquiry | If everything goes as planned,
naa niamcu , n eoApinl
GOLDA CHANGES MIND — Israeli Prime Minister Golda Meir, assisted by one of her bodyguards, arrives at President Ephraim Katzir's residence in Jerusalem. She told Katzir she had decided not to resign yet as she had said she would, and instead put off a final decision for 48 hours.
Tho unions naa Diamca me Doar specjai counsel to electricity will be generated on
miners strike on the alleged in- ^ house jmpeachment inquiry, a trial basis at the Duane Ar-transigence of Heaths instructed by the judiciary nold Nuclear Energy center
men!. The change of attitude committee Tuesday to ask Siri-'near Palo late next month. with Labor in power was imme- I - —
diately apparent in Gormley’s report after seeing Foot.
“We had a nice friendly chat
Yamani: End It
In Riyadh, Saudi Arabia, Sheik Ahmed Zaki Yamani, Saudi Arabian oil minister and a key spokesman for the petroleum producing states of the | Middle East, called for an end to the Arab oil embargo, the Wall Street Journal reported Tues-|day. Yamani said the Arab cutoff of oil to the U.S. no longer served any useful purpose.
The president of the Baltex Oil and Gas Corp. of Malakoff, Texas, said Monday that
that you would expect between ^ , jufy Frjday
colleagues, «»nnrtpd 8
ca for the report. I Commercial generation o f delivery of petroleum prod-
Sirica had ordered all parties electricity is expected to begin ucts sold by Saudi Arabia to not to discuss either the report in May. Arnold, chairman of the his firm could begin in about or the indictments returned by board and president of Iowa three weeks when contracts
TEL AVIV (UPI) -Minister Golda Meir’s
Another key post went to Denis Healey, 56, named chancellor of the exchequer. He will have the task of handing the country the severe fiscal medicine needed to pull it Prime party blamed him for Israel’s Katzir then received opposi- out of its deepening economic Labor lack of preparedness for the tion leader Menahem Begin of crisis.
Party Vote Backs Golda
sighted act.” He said with coal selling at $33 a ton it would be a Srily'^v^n ~en“ ••very economical project for Minjstpr
the state to undertake at this time.
Mrs. Meir’s walkout brought a said; “Mrs. Meir of Laborites to declared that she
should have man of the Labor party and a has failed.” former Labor government chan-
night in her bid to set up a new steady stream
her home Monday, pleading that He said if Mrs. Meir does not cellor of the
Earlier Tuesday, United Press International reported that legislative leaders were scheduled to meet this week to determine whether the sales tax proposal, cornerstone of Gov. Ray’s legislative program, will be scrapped.
Defense Minister M o s ii e she reconsider. I-ooking weary present a new cabinet by home secretary Dayan refused to comply, how-j but determined, she visited Wednesday after two months of foreign secretary, ever, and the 75-year-old prime President Ephraim Katzir Mon- trying, Katzir should call for a Roy Jenkins, 53.
But Electric Light and Power, said, sources said the report con- The loading of nuclear fuel Wilson cabinet tained the grand jury's findings started last Wednesday at 5:30
” on the role of President Nixon a.m. Proceeding on a 24-hour-o-
in Watergate day basis, the loading is expect-
Dtp... p,™«———«-Secretary Gerald Warren UM said. “Our position will be made known in open court. I have nothing further to say at this time."
Warren’s statement came exchequer and only a few hours atter he told g™ wiu’be
j, was named newsmen there is no present
intention” on the part of the ™hand format.
widely re- White House to ask that the:
Early next week a radioactive device which will start the reactor safely will be moved into place and the first chain reaction will take place. An Atomic
After going “critical” for the
minister did not get the full day night and told him she had broad coalition government in- garded as a successful chan- report be withheld from the im- fir^ 3^ p^^r^eyr^tests
1 . , . . , . , , 1..J1__XL., til____I Ikn nvoknminr riming rnionhmnnl innilirV OIIUI *** »
unity she had sought. Dayan's changed her mind and expected eluding the Likud,
action meant she still might re- to present her new cabinet to
sign. him on Wednesday.
The party’s central committee!------——
climaxed a seven-hour stormy meeting by voting 238-7 with 45 abstentions in favor of es-
In addition, leaders may de-tablishing a minority govern-: cide to postpone debate on a bill ment with the possible I afer to double the state inheritance inclusion of the National Hen tax exemption and delay consid- gious party so a majority tun
Stocks Soar on Embargo Report
NEW YORK (AP) stock market rallied
Mrs. Meir, whose party is still the largest in parliament with 51 of the 120 seats, opposes such a coalition because the Likud is opposed to the return of any of the Arab territories occupied in the 1967 war.
cellor of the exchequer during peachment inquiry Wilson's last administration,! Warren said St. named home secretary, a president’s chief
ri lr th - wib be <-‘ompIeted.
a‘r’ , Iowa's first nuclear generat-Watergate
new cabinet liat|j^crfl^ Britain’
oration of a proposal by Sen. "r^n' ^Rbmdly' chief rf msH “uni'also with"her"rich
analysts describtd as a ie-|....... ^ offshore oil resources in the
the U S N°r*h sea-
“ a assassination
Warren Curtis iR-Cherokee). caretaker government.
that would triple the standard deduction on Iowa income tax Mrs returns. she was quitting and walked out
Lt. Gov. Arthur Neu said a1- of a party caucus Sunday night though no final decision had after supporters of Defense Min-been reached on which proposal ister Moshe Dayan criticized the or proposals would be eliminat- s cabinet she had put together.
re. them is Yitzhak Rabm,
Dayan Refusal sponse to a report that authori sta!! durinH tbe
. Meir angrily announced * sources expected the1 ambassador
was named nome secretary a Presidents cniei waiergdie station rcceived a full-term, job he also held earlier in Mil- lawyer, had asked for the meet- 6 __
son’s last government. |ng. He said he was unaware (Continued: Page 3, Col. 5.)
Soy Attern pi on Life Escaped by Kissinger
Erie Varlcy, 42. a little-known labor party member, was named secretary of state for His job will primarily
W Page Ballard said he has
received clearance for the Saudi Arabian petroleum to be shipped to the U.S.
The contract involves 30 million barrels a month for five years, the Baltex president said. Baltex imports oil and gasoline and has some domestic production in East Texas.
Included in the agreement are both crude oil and refined gasoline, Ballard said. Cost of the crude will he between $9 and $10 a barrel, he said.
The price of oil before the Arab-Israeli war was about $3.01 a barrel. U.S. experts consider $7 a barrel somewhat high, hut they also are concerned that a lower price could discourage development of alternative sources of energy. Kissinger and his aides will say nothing publicly about the Tripoli meeting.
tative sources expected Arab oil embargo to be lifted vvbo soon.
The 2 p.m. Dow Jones average was up 17.13 at 870.31 and gain- a majority government because ing issues outdistanced losers (ho National Religious party.
But Egypt, Saudi Arabia,
WASHINGTON (AP) - Henry see the Syrian leader atter a Syrja Aigeria and other Arab
Kissinger escaped an apparent few hours’ sleep. states are now understood to be
U IS named to replace Anthony Wedgwood Benn, a assassination attempt in Syria As a result, the officials said, united in wanting to have the
Dayan as defense minister ' prominent left wing Labor party! because Ins talks with President Kj i led lhc stop at:embargo removed and full pro-
Mrs Meir was unable to form 'coder and minister of techno- I latex Assad ran a e and kerf ^ shnno duet,on resumed. Until now.
logy in the last labor govern- him from sightseeing at a *> - there have been reports of a
ment, was appointed secretary famous mosque, U S. officials
phased step-up of production
cd'from the legislative agenda.! Dayan had refused to serve in! a^ut 4.j on the New York Stock Labor’s traditional coalition °f vyi‘*^nf®r there was “very little chance” the new government because a Kxchange. partner, made unacceptable dc-1 ^ 1
Trading was active and nu- mands for religious legislation. I^1 ( s
merous stocks were delayed in She secured the support of lau’r iuesaa>.
opening because of order imbal seven members of parliament
1IU.PS outside her own party’s 51, and
Found Shot Fatally
GREENSBURG, Pa (AP
Under Tax Probe,
that all three would be ap- number of members of the proved.
The sales tax repeal on food and drugs has been passed by both chambers, but the senate
rejected a house-approved District Attorney Robert amendment that would include gan was found shot to home heating fuels under the Tuesday shortly before he exemptions. Neu said there was indicted on eight counts “no way” the heating fuel issue fraud.
would be compromised and said State police said a prelimi-the issue could lead to the bill’s nary investigation indicated downfall this session. Duggan committed suicide.
Several senators, including Duggan. 48. husband of
once the embargo is lifted. Shortened Lines
Meanwhile, federal energy
His familiar nine clenched be
Setback Spotlights Brandt
Sen Roger Shaft (R-Camanehe) have been lobbying house members to defeat the sales tax proposal in an effort to prevent a wholesale raid on the general fund surplus.
Iii addition, Senate Appropriations Committee Chairman Lucas DeKoiter (R-Hulll has been advocating that thr lawmakers hold down spending and preserve “a rainy day fund.”
Neu said that the leadership was still concerned that Ray’s budget “could be overspending.
“We’re trying to take all factors into consideration and arc* trying to look ahead to the next
(Continued: Page 2, Col. 4 )
former Cordelia Scaife May, an | heiress to the Mellon fortune,1 had steadfastly denied any wrongdoing during the grand state's jury probe
WASHINGTON (UPI) Secretary of State Kissinger plans j to visit China again later this year, possibly in September, a senior American official said Monday.
broken” by Totfcil/'s Ie
A broken reputation may perhaps he repaired, but the world will watch the spot where the crack was. <o$»ynuM
BONN (AP) — A stunning setback for Chancellor Willy Brandt in a key state election has added new fuel to talk that lie is losing his grip on West Germany’s political life.
The Nobel Peace laureate who gave hi> country a new standing in world affairs by promoting East-West understanding admitted a “severe setback” after his Social Democratic party lost its majority in the Hamburg city-state legislature last weekend
Only two weeks after Brandt was forced to deny publicly that domestic policy worrit® have caused hun to consider resigning, his declin mg popularity was demon straled by his party’s massive
20 percent slide in the Hamburg election.
The Social Democrats managed to cling to power there only with the help of the Free Democrats, the small liberal party which has shared a ruling coalition with Brandts men in the federal government xst nee 1969
Tlu> Social Democrats lost 14 of their 70 seats in the 120-eeat legislature The Free Democrats gained four for a total of 13, and the big winners were the conservative Christian Democrats, who gained IO and now have 51. or 18 less than the ruling coalition.
The Hamburg voting was the tirst state election since the socialist - liberal coalition
won a sweeping victory in tin? 1972 federal elections, mainly oil the strength of BrandtT foreign policy triumphs. But since then the gloss has worn off his East-West peace drive The decline in Brandt’s leadership and prestige was made apparent two weeks ago when he .suffered a defeat in a confrontation with labor unions that normally support him. Striking public service workers forced him to break a pledge not to fan inflation by permitting wage increases above IO percent The ll percent hike he reluctantly sanctioned led to reports he was considering quitting He angrily asserted that he would not be “edged into resigning.”
(Photo on Picture Page)
other ap- (In Damascus, a Syrian gov d d ke(
announced ernm,.nt source denied the plot ™ ;i ho drove (0 ,hc
'Tkiinocr hid a visit to the airPort and flew to keep an ap- ch,(.f William Simon said emer-
Omayad mosque on his schedule P0*jltmenj lsr8el‘ l«ders genCy allocations to fuel short
ast Wednesday in Damascus. ;ln J'™*'1*'"- states have shortened lines at
planned to visit the service stations.
morning when “We have succeeded without to Syria with emergency allocation,'' Simon
lls. told reporters. “We’ve seen the
Kissinger was flying back to alleviation of the lines at all the
Damascus Friday night when hard hit areas.
word first carne to him about Simon Tuesday appeared the plot, the officials said He optimistic that the gas situa-decided to play it safe and avoid the shrine.
Palestinian terrorists were apparently behind the reported attempt.
All this comes amid mounting domestic and foreign troubles that include:
Energy crisis repercussions threatening prosperous West Germany with zero economic growth, record 9 percent infla tion, increased unemployment and labor trouble Stagnation in Brandt’s efforts to normalize relations with East Germany and increase personal contacts between the West Germans and the people of the Soviet Bloc.
Lagging progress toward West European unification and a continuing gap between a badly fplit Common Market and the U, S., increasing German fears that the American guarantee of security and defense is threatened.
tion would not become critical as warmer weather arrives.
Today s Index
Comics ............ 21
Crossword ......... . 21
Daily Record .....*....... 2
Deaths ....... 3
Editorial Features 6
Farm ..... IS
Financial — ..........22
Marion ........... 7
Movies ....... 20
Society .... 12, IS
State ............ 4, *
Television ............ II
\\ ant Ads 24-27
“We have many experts today, instant experts if you will,” Simon said on CBS-TV’s Morning News, . and we’re seeing them again today predicting all the doom that’s going to come this spring and summer,’1
Simon said the same kinds of forecasts of people “freezing in their homes,” of utility brownouts and blackouts by Febru* ary and of unemployment reaching IO percent, were made lust fall.
“Well, did it happen?” he asked, and answered himself, “No, it didn’t” because, he said, the government devised a conscious policy of accelerating
I ( Continued: Page 3, Col. 3.)