Cedar Rapids Gazette (Newspaper) - September 19, 1974, Cedar Rapids, Iowa
Chance inf rain tonight clearing by Friday afternoon. Lows tonight, 45 to 50. High Friday, mid 60s. \
VOLUME 92 - NUMBER 253
CEDAR RAPIDS, IOWA, THURSDAY, SEPTEMBER 19, 1974
ASSOCIATED PRESS, UPI, NEW YORK TIMESREJECT FEDERAL RAISE STAY
Ash: To Ask $20 ■ Billion Budget Cut
WASHINGTON (AP) -Congress will get a $20-billion package of proposed reductions and postponements of spending by the end of this week and an additional $4-biIlion package within the next few days, Roy Ash, director of the Office of Management and Budget, said Thursday.
Ash told the new house budget committee “you will have plenty of work to do.”
However, he did not specify the items President Ford will propose for canceled or postponed funding, although he did say the two packages would embrace about IOO separate items.
The new' budget law, which also created the committee, specifies that the President may not on his own authority refuse to spend money appropriated by congress. He must file a report recommending cut offs and can; temporarily halt spending, but unless congress backs his rec-1 ommendation within 45 days, the funds are released.
When the President merely proposes to postpone spending,! the postponement holds unless congress vetoes it.
Hewing close to the administration line that reductions in | government spending are a major element in fighting infla-j lion. Ash told the committee there is only about $15 billion in; the $305 billion spending budget ; that is fully controllable and subject to reduction.
Accordingly, he said, no one big cut can be made and economies must be sought all along the line.
Several committee members pressed Ash for instances to back what the administration contends are threats to the budget because of high spending by congress.
He contended there have been congressional reductions in estimates of amounts that would be spent under existing programs, but at the same time new programs would be written that would require spending — and therefore supplemental appropriations later.
The pending trade bill. Ash( said, carries a provision for re- j adjustment benefits to U.S.; workers disadvantaged by im-j ports,. He said this could cost, $600 million in a year.
Several more hundreds of mil-1 lions of dollars spending over the budget might result from pending veterans education legislation, he added.
Ash said action now underway on the defense appropre i ations bill would appear to re-: duce spending $1.7 billion below the budget.
“Further cuts in defense j spending are unwarranted —”, Ash said.
Earlier, in an interview. Ash said President Ford wants “a majority view'* from congress on where the budget ax should fall.
Pentagon officials estimated Thursday that inflation plus con-! gressional budget cuts have put j the defense department about j $11 billion in the hole for this! year’s spending.
Officials indicated the impact of this shortfall probably will be felt in slower or deferred procurement of some weapons and equipment.
Stocks Surge; Dow Up 20.57
NEW YORK (Al*) - Stocks gained sharply Thursday on holies for easing of interest-rate pressures. The 2 pm. Dow Jones average was up 20 57 at 672 48. Gainers led losers 5-1 on the New York Stock Exchange. |
r * '
Believe 200 ciA-Chiie issue Raises Ford Plea
Spat in Senate Panel
Storm Dead In honduras
WASHINGTON (UPI) — Sen-;subject with President Ford and! ator Fulbright (D-Ark.) and a j congressional leaders earlier in! member of his foreign relations!the day, said that although Al-committee got into a spat lende was elected by a definite
Thursday over whether Secre- minority, he “systematically set!
I tary of State Kissinger could be j out to establish a one-party sys-;
JEGLUGAl A, ll o n a u i a s asked to justify covert CIA in- tcm and eliminate all opposition
[(UPI) - Hurricane Fifi struck tervention in Chile. parties and news media.”
Is Spurned By Senate
the northern coast of Honduras! S e n a t o r Church (D-Idaho) Thursday with 130-mile winds,!asked Kissinger, “How can such
a policy be .squared with our traditional values of the right of
[Storm tides and torrential rains,.
which left a trail of death and self-determination for other peo- born
I tho nutinn’c WArcf
destruction in the nation’s worst! storm in a century.
Church also described the pol-
Church tried to interject, saying, “I will simply make the statement that the present military government in Chile was lh in a bloodbath and itself does not allow opposition. I think it is a sad thing ..
Fulbright cut him off bruskly
WASHINGTON (AP) - The senate Thursday rejected President Ford’s plea to delay 5.5 percent pay raises for 3.5 million federal workers for three
The 64-35 vote means the raises will go into effect Oct. I as originally scheduled, since Ford’s order to delay them
that. Concerning detente, Kissinger said he expects to reach an un-
Honduran authorities said the I icy of CIA intervention that led ^ _________
death toll is expected to exceed t0 bie ousier President AI- by recognizing Sen. Percy (R-_____ _____
200. and that in the region IILL10 I-0*"0" «• ^'could be overturned by majority
I around the city of La Ceiba destabilize a government
’alone, IOO bodies have been I had been freely elected.”
counted. They estimated IOO Detente Issue demanding with the Soviet Un-
jother persons died elsewhere! Kissinger started to reply, but;ion allowing freer
I along the coast. Apparently Fulbright, a lame duck senator^1*0111 ^at nation.
: most of the deaths were caused I wh(> recently has been men- But, Kissinger said freedom of
tioned for the job of ambassador [emigration should not be a pre-j to Britain, interrupted. Ile ad-iconc^|on ^or slron8cr economic [monished Church that the hear-r*es Soviets. Such a pol-
i by drowning.
I After smashing through Hon- j ‘n8 was intended only to explore [duras Fifi turned its full force I *ssue of U.S.-Soviet detente I toward the tiny Caribbean anr* that the committee had decountry of Belize and was ex- c*ded to deal with Chile as a Ipected to hit there around 3; seParatc matter.
[p.m. CDT. “I object to this,” Church
Most of the damage in Hon-!sa^« looking directly at Ful-jduras was from flooding with 'property and crop damage going into the hundreds of thousands of dollars.
, Fifi devastated banana plan-
(Continued: Page 3, Col. 3.)
Prosecutors Ask FBI To Deliver Nixon Subpoena
WASHINGTON (AP) - The
TABLE TALK — President Ford has a luncheon talk with the U.N. General Assembly president, Abdelaziz Bouteflika of Algeria, following Ford s Wednesday speech to the Assembly. In the foreground is Vice-president-designate Rockefeller.
tations, rice fields, bridges and highways, mowed down houses, and buildings of poor construction which could not withstand the flooding and the hurricane winds.
vote of either the house or senate. It was his first major congressional defeat since becom-emigration I ing President on Aug. 9.
Ford had proposed the delay in an effort to curb inflation but critics said the stay, which would have saved about $700 million, would have had little or no impact.
Senator Stevens (R-Alaska) called the three-month deferral I “a cosmetic approach” to the anti-inflation battle.
“You’re not going to stop inflation or even slow it down with this kind of gimmick,” said Sen. McGee (D-Wyo.).
However, Sen. Griffin (R-Mich.) said the senate action would “open the floodgates and make it very difficult for the President to ask any other group to exercise restraint.” “You’ve got to start some-
C.R. Man Dies Help Utilities,
In Cycle Mishap | £ j Saw hi 11 Urges
Samuel A. Randall, 44. of 1711 * w » f v* f ww t y w v#
Keith drive NE, died Wednesday from injuries suffered when his
WASHINGTON (AP) - Fu-
motorcycle crashed into a train!,ure suPP|ies of olectnci,>' wi" communitv engine north of Cedar Rapids ** in jeopardy unless the grow- nun“>
... . . .. r is______J t__________ • I___I “tt’i
groups, un; storm utility industry and the financial crcfj
bright. “I want to know howl that kind of intervention can be! justified by any moral or inter-!
national law.” i . , ... . . . ,
; special Watergate prosecutor s
Fulbright leaned forward to, office asked the Federal Bureau
reply. That has nothing to do 0f investigation Thursday to
with detente, which is the sub-|serve a subpoena on former ject of this committee hearing,” J President Nixon in the Water-
sa^ jgate cover-up trial that begins
But Church retorted, “it is the j Oct. I. practice of this committee to let A spokesman for special pros-Among cities reporting dam-!scnators ask Questions. I want ecutor Leon Jaworski said the! where,” Griffin said.
hop were San Pedro Sula La to know how we can Justify our subpoena is returnable on the! Ford made a final appeal to
Ceiba, Tela. Puerto Cortes, Tru- actj°n in Chile with any moral day the trial begins, ijillo, Puerto Castilla, Guajaca j OT.NiteniitioMl low. | He said the FBI was asked to
and the bay island (Islas Bahia) Kissinger was allowed to con- j deliver it to Nixon at his San
off the coast. Hnue his testimony, recalling Clemente, Calif., home because
the conditions under which Al- of ‘Is liaison with the secret ser-
Ricbest Zone lende was elected.
Honduran government authori-j Covert Operations
j ties calculated that one-third; ..The United States has been
I of the country comprising various kinds of coin at ion s richest agricultural veft operations in the
mu*5 era,” he said. “Tho difficulty is
, although Fifi s rains cov-tbat b tbe y definition of virtually the entire „AV>or, ‘ rQt:nnB 5* ic nnt OQC„
Earlier Nixon's health was in , ... „ . ...
jected into the cover-up trial for w^1, CI'^iiarl
the first time.
Attorneys for John Ehrlich-
the senate Wednesday, declaring “I see this vote as the first test in our common effort to put our economic house in order.”
The affected workers include employes
and military personnel.
Ford asked the senate to help
covert operations it is not easy country. t0 discuss them publicly.”
Wednesday afternoon. j ing demand for power is curbed “Within Decade Emergency relief committees Kissinger, who discussed the
Linn deputies reported his;and utilities are put back on a “If we don’t act resolutely, wejwere rushing aid to affected
westbound cycle crashed into sound financial footing, Federal could reach, within the decade, |areas.
Administrator John I P°‘nt where consumers At Puerto Cortes, Honduras’ won’t be able to buy electricity;only oil refinery was reported at any price,” Sawhill said. [isolated by flood waters.
“Almost a quarter of planned J Weather men said that on its! iowa Electric Light and Pow nuclear generating capacity has present course Fifi’s winds winier Co. Thursday announced the jsnal a 1 already been shelved, in effect|sweep inland over the southern-;sale of $30 million aggregate !r£slgnea
raising the electric bills of thc|most tip of Belize, just south of principal amount of First Mort- l"ere. .'Verfe.1WiaolSpr,?uC
next eeneration.” It7 non wine m 11 ™>Jabout his failing health.
the southbound engine about
Illinois Central IE
—0..._ _____ a mile east of , . _.
highway 150 on the county home ^avvhill warned rhursday. road. Nearly $9 billion worth of new
He was taken to a Cedar,power generating projects have Rapids hospital, where he died. !been canceled as of last month
* * * by utilities suffering low carn-
Sam A. Randall was born Oct.
12, 1929, at Atchison. Kan., and was married to Virginia B. De-Key se r Sept. 2, 1950,
He served with the U.S. army | air force during World war ll,
and the Linn county sheriff's department prior to retiring. Surviving in addition to his
(Continued: Page 3, Col. 5.)
ings and a financial crisis. Sawhill said.
“Even more alarming, two-
$30 Million Bond Sale Told by IE
at Cedar thirds of the new generating capacity being canceled is nuclear power. Such drastic steps cut deeply into future capacity and w as employed by Cryovac b a r b i n g e r higher consumer I review procedures and provi-
costs,” he told an FEA electric sions allowing rates charged by utilities conference attended by utilities to reflect construction state utility commissioners and projects in progress, representatives of consumer
few weeks after Nixon as President but before were widespread reports
__ — j|i|WV up VI J MOV ovum V* ; pi IllVipai CUA IVW iv V* A UJI l«,____I Ll- f-:i
next generation. ’ Punta Gorda, a city of 7,000 per- gage Bonds, Series N, ll per-
Sawhill called on state utility sons The Belize government or-Tent due Sept. I. 1989, through .. ine l,rlf °J penman
commissioners to adopt regula- d€red hurricane precautions Salomon Brothers and Merrill Jlv^ co^fendants *ex^ctedt°
tions allowing an automatic throughout the country, espe- Lynch, Pierce Fenner and as
pass-through of higher costs to;cially in the southern coastal Smith, Incorporated consumers from utilities. He Lector, also urged a speed-up in rate (
man Wednesday asked for a 60- “set an example of fiscal re-to-90-day delay in the Trial. They!straint for the rest of the na-said it will take at least that long ‘iou” by upholding his action, for Nixon to recover sufficiently “This is one of the most sig-from mental depression and nificant votes that the congress phlebitis in his left leg to appear is being called upon to take in as a defense witness. the fight against inflation. I am
Ehrlichman’s subpoena for the confident that the senate will former President’s testimony act responsibly in the best inter-was delivered to Nixon’s San ests of all Americans,” he said. Clemente estate by a U.S.
Iowa City Man Asks SI Million In Damages
Rodino (D-N.J.) has urged fcd-
about three months, but there has been no indication
The sale was made to a group Nixon might bt‘ c>‘l!Ie(1 10 Iowa City man who served 17
The sale was made to a group of institutional investors by pri-Rep vate placement. The proceeds
years in prison on a murder
.conviction before he was re-Nixons -personal appearance|,eascd on a technicality has
will be used to reduce the com-|fiLir.ia! J* t0 Mr,| filed a $1 million damage suit,
Rockefeller Pegs Total Assets at $182 Million
The former President’s attor-Herbert J. Miller, has a1-
, v. . lPany “ outstanding long-term11Ehrlichmans defense.
“Whatever solutions you dc- eral authorities to tighten im- nQtcs payabie to banks, which velop must include rates of re- migration control to keep drug currently bear interest at a ney* turn sufficient to endure a finan- smugglers oUt 0f the U.S. higher rate annually. I (Continued: Page 3, Col. 7.)
cially healthy industry." he said. State commissioners expressed resistance to granting higher utility rates in a meeting with him last week.
Sewell Hits State Order
WASHINGTON (AP) - Vicepresident-designate Nelson Rockefeller said Thursday that his personal fortune is $62.5 million, and that he receives in addition income from trusts with total assets of $120 million
Rockefeller issued those figures in advance of congressional hearings on his confirmation. saying he wanted to set the record straight because of misleading reports of his wealth.
“ . . . Total assets owned outright and in the two trusts amount to approximately $182.5 million.” Rockefeller said in a statement distributed to newsmen
The former New York governor, an heir to one of America’s great fortunes, said he issued the statement because of earlier reports that he had filed a statement with congressional committees reporting his net worth to be $33 million.
At that time, Rockefeller was
said to be preparing a revised account of his holdings.
Rockefeller’s confirmation hearings are to begin Monday before the senate rules committee.
“I shall give a frank and open statement of my background, my career, my associations, my purposes, my finances, and anything else the committee and the congress quite properly want to know." Rockefeller said “To keep the record straight in the meantime, I announce now- that the final and complete data I am submitting show the net worth of my wife any myself to bo $62.5 million . . .
“In addition to my personal ae,sets, I receive the income during my lifetime of two trusts with total net assets of $120 million," Rockefeller said.
He said the leaked reports “gave a doubly erroneous impression” because they did not include that information.
Sawhill said utilities share re-! sponsibilities with consumers to conserve power. He called on the industry to support programs such as a Michigan Consolidated Gas plan in which the company finance* insulation improvements for consumers and the customer repays the cost in installments on his monthly bill.
Sawhill urged an intense advertising and education program by the industry to promote conservation.
Two consumer group proposals he endorsed were for utilities to raise rates for electricity used in peak demand periods and to offer lower-rate bills for customers who use less than 400 kilowatt hours of power a month.
To if a i;\ Chuckle
Politicians admit that the two-party system consists of the appointed and the disappointed!
By Ford Clark
CORALVILLE - The president of a Coralville oil drilling company lashed out angrily Thursday morning at a state order requiring the company to return money to investors in the corporation.
Clarence E. Sewell. 47. said, “The politicians, state officials, have harassed us; stood us up against the wall.
“But we arc going to make Iowa a major oil-producing state despite them.”
Sewell’s angry comments concernccl an agreement signed by Sewell, as president of Blazer Corp., and Iowa Supt, of Securities Marshall Hunzleman.
The agree m c n t states Blazer Corp. shall offer refunds to all investors iii the state before selling any more stock.
According to Sewell, “Possibly $150,000 could be returned to investors. As of this morning, not one of these investors
had asked for their money back.”
Blazer Corp., the agreement said, has been raising money bv selling stock “certificates of interest in oil, gas or mining leases” without first registering them with the state.
Sewell told The Gazette Thursday, “The Iowa law is so vague and gray on this point that ifs impossible to open new mineral resources without having a staff of 20 lawyers to fight state bureaucracy and polit jeans.
“But, we’re going to beat them yet. We have a second hole drilled near Grant to a depth of 2.815 feet. All signs are extremely good. We should know just how good in the next few days.
“My first impulse, if this well comes in as expected, is to tote a few barrels up there and let the politicians see for themselves.”
Sewell conceded a first well drilled near Grant in July,
while showing oil traces at 2.000 feet, has “not been the strike we anticipated.
“But we are not another fly-by-night promoter that s going to take off south with our investors’ money. Twenty-five percent of our financing comes from AMOCA. a subsidiary of Standard Oil of Indiana.
“We have invested $100,000 of our own money and we’re going to see this thing through.”
In connection with the Blazer-state agreement, a cease and desist order also was issued, barring Blazer from further sale of the securities until they are registered with state officials.
Sewell reiterated his confidence in the coming oil strike at Grant by saying, “We’ve ordered 20,000 bottles in the shape of an oil derrick We arc going to take the first 24 barrels of oil from the well, put them in the bottles, and sell them for $50 each.”
claiming he was held illegally.
Ernest Triplett, 71, filed the suit in U. S. district court in
Triplett contends he was illegally imprisoned and was administered an overdose of drugs while in jail. He asks $500,000 damages on each charge.
“There are six defendants, including three Sioux Qty men,” said Preston Penney, member I of an Iowa City law firm representing Triplett.
Names of three defendants couldn’t be revealed Thursday, Penney said, because he wasn’t
(Continued: Page 3, Col. 7.)
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