KANSAN
Forecast: Fair and warmer. High mid 40s, low in the 30s.
The University of Kansas—Lawrence, Kansas
Where Have All the Streakers Gone?
84th Year, No.111
Monday, March 25, 1974
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Joint Committee Urges Tax and Defense Cuts
WASHINGTON (AP) - A $10 billion tax cut to ease the bite of inflation was urged yesterday by the Democratic majority of Congressional Joint Economic Committees.
The committee also recommended that Congress hold the line on defense spending.
The report said that the $86.8 billion defense budget for the year beginning July 1
or other direct spending. Defense spending shouldn't be planned, shouldn't be used to bolster a sagging economy, the House-Senate committee concluded in its annual report for the guidance of other congressional committees.
Mitchell, Stans To Face Dean In Trial Today
NEW YORK (AP)—Ousted White House counsel John W. Dean III is scheduled to testify today at the criminal conspiracy trial of former Atty. Gin. John N. Mitchell and one-time Commerce Secretary Maurice H. Stans.
Dean is expected to fill much the same role in the Mitchell-Stans case that he did last year in the unrelated State Watergate controversy, where the government calls him "a critical witness."
Dean was to have begun his testimony last Thursday. But the sudden illness of juror Violet Humbert led federal Judge Lee Clement to receive the trial for the weekend.
Dean was ousted as President Nikon's counsel last April after he admitted having a role in the coverup of the Watergate breakin at Democratic national headquarters in Washington in 1972. He had been guilty of obstruction the investigation and is awaiting sentence.
Meanwhile, Dean was named a co-conspirator but not a defendant in the indictment which charges Mitchell and Stana Cipollone of assaulting a judge justice and perjury before a grand jury.
The two former Cabinet officers are accused of corruptly seeking to obstruct a Securities Act investigation and the investigation of financier Robert L. Vesco, in return for the latter's secret $200,000 cash contribution to President Nixon's 1972 re-election campaign.
As part of the conspiracy, it is charged that Mitchell caused Dean to try to get a postemployment of SEC subpoenas against Vesco associates.
One periyar count against Mitchell alleges that he lied when he said he never talked to Dean about postponing the subway ride. The lawyer also never talked to Dean about Vesco's SEC case.
As for Stans, the indictment charges that he led to the same grand jury in denying he ever discussed Vesco's fraud investigation with Dean prior to the Nov. 27, 1972, filing of a massive $224 million SEC civil complaint against the multimillionaire financier.
Vesco currently is in voluntary exile to avoid prosecution on the SEC's civil complaint. As a result, he never has answered questions from reporters and is a co-defendant with Mitchell and Stans.
includes an estimated $1 billion to $4 billion addition to stimulate the economy.
"The defense budget shouldn't be viewed as a public employment program or as a way to bail out certain industries," the report said.
The committee said defense spending tended to be inflationary, injecting expenditures into the economy that don't produce goods and services to satisfy
Sen. J, W Fulbright, D-Airk, a member of the Joint Economic Committee and chairman of the Senate Foreign Relations Committee, said in a separate supplements report that cuts in defense spending should be addressed in reductions in foreign aid and space programs.
The committee said it thought the administration had grossly underestimated the pace of inflation and the growth of unemployment.
The committee described Nixon administration efforts to control prices as a "debacle" and said its efforts to offset rising unemployment were "pitifully
Splitting sharply with most committee Republicans, the panel predicted an inflation rate this year of 8 per cent or more employment would rise to 9 per cent or higher.
It recommended a permanent public service employment program to combat joblessness whenever unemployment exceeded 4.5 per cent, a long-range effort to plug tax loopholes and efforts to relieve the burden of poverty, low and lower middle income families.
The report called for phasing out wage and price controls and replacing them with a largely voluntary system of restraints, such as the use of compulsory authority to remose controls.
"The nation must anticipate a year in which real output growth will be essentially zero, unemployment will rise sharply and the rate of economic rate or even more rapidly," the report said.
Kansas Stiff Photo by CARL DAYAZ
Soon to Be Disappointed
The cheers of KU rooters turned to groans Saturday in Greenboro, N.C., when the Jayhawks lost to the Marquette Warriors, 64-51, in semi-final action of the NCAA
tournament. Here, Tom Shrimplin (foreground), Valley Falls seniors, and Cem Tokley lend vocal support to the Jayhawk cause.
Air Jayhawk Promoter Vanishes; Ticket-Holders Left Holding Bags
Bv WES BARFOOT
Kansan Staff Reporter
For 85 University of Kansas students who were scheduled to fly to Jamaica, the university has been a long spring break helium and has been an expensive airfare.
The students each paid $120 for air transportation to and from Jamaica. However, on March 1 the flight was canceled by an injunction issued by a federal judge. The chartering organization, Air Jayhawk Tours, was charged by the Federal Aviation Administration with violation of economic and safety provisions of the Federal Aviation Act of 1538.
Since the flight was canceled, the students have been unable to get refunds, according to Karolyn Rapp. Olate the sophomore, one of the teachers at Northwestern University.
Happ said the flight ticket for the flight was the receipt and that Ray Robinson, promoter, general manager and president of Air America, would be present.
Since March 5, however, when Robinson was arraigned on two charges of battery in connection with ticket refunds, little has been seen of Robinson. He failed to appear at a March 15 court hearing and Rapp said: "He's split. He's gone."
According to Lance Burr, assistant to the Kansas attorney general for consumer affairs, Robinson paid about $5,000 down on an aircraft. That is half the money collected from student tickets. Burr said he had received $3,750 refunded to these students who had signed up for the Jamaica flight.
Asked why Robinson had been allowed to proceed as far as he had, Burr said, "I didn't know about it."
Linda Tripte, director of the Consumer Protection Association (CPA), said she was trying to obtain a list of the students who had paid Robinson money. So far, she has not been able to get a complete list.
Triplett said she didn't think there was any question whether Robinson legally should refund the money for tickets, but, "He may
Robinson couldn't be reached for comment. A spokesman for the Douglas County Attorney's office said Robinson was not thought to
Mason Landau, North Woodmere, N.Y., special student, also with the CPA said he won't sure if the ds students would get a refurb. "It'll be a good deal," Landau said.
Lawyers Accept Decision; Report To Go to House
WASHINGTON (AP) — lawyers for two former White House staffers said Sunday they have decided not to appeal a decision that the House Judiciary Committee get a copy of a petition from their client.
"We've just decided that we've stated our objections and our warnings as forcefully as we can." remained John Brav. lawyer for Gordon C. Strachan.
A federal appeals court Friday refused to reverse U.S. District Judge John J. Sirica's order sending the report to the House, but gave them until p. 15.m. Monday to appeal to the Supreme Court.
Haldeman and Strachan were among seven former administration or campaign aides indicated March 1 for allegedly to block the Watergate investigation. The grand jury gave Sirica its sealed report and other evidence at the same time it returned the inquiries.
John J. Wilson, who represents former White House staff chief H. R. Halderman, declined to comment on the decision.
Meanwhile, Sunday, Sen. Howard H. Baker Jr., R-Tenn., leading Republican member of the Senate Watergate committee, and committee members of alleged CIA involvement in the investigation, said it would "be imperative" for the senate to
Baker said he had submitted an extensive report on the matter to the Watergate Committee but he refused to reveal what he found.
A presidential spokesman Saturday denied a published report that the White House would turn over the 42 tapes requested by the committee. Press Secretary Ronald L. Ziegler said that the White House would not consider surrendering the tapes until the committee specifies "what materials are wanted and why."
Ziegler also attacked a report in the Los Angeles Times that Nixon's tapered conversation with former White House counsel John W. Deam III clearly showed that the administration was still a military power.
Ziegler also said, "We have already provided the committee with 19 tape recordings of conversations and over 700 documents which had been provided to the grand jury, and we are hopeful that they will provide some insight."
Ziegler said, "The malicious intentions of the individuals who planted this story are clean" and added that the report would influence the White House attitude on providing information.
Existence of Deed Doubted In Nixon Tax Evasion Case
WASHINGTON (AP)—Congressional investigators doubt that a supposed key document that could solve President Nixon's single biggest tax problem "ever existed," according to a source close to the investigation.
The document is the original deed giving the National Archives a collection of Nixon's pre-presidential papers valued at $767,000. He has claimed income tax deductions for most of this amount, greatly reducing his tax bills.
According to the source, the White House has been unable to find the deed for the Joint Committee on Internal Revenue Taxation.
Nixon tax attorney Frank DeMarco has said the deed was signed April 21, 1969, by former White House aide Edward L. Morgan but that it was subsequently destroyed when a new deed, now on file with the archives, was executed on April 10, 1970.
The date of the original signing is important because the tax code provision permitting deductions for this kind of gift was recalled July 25, 1969.
California Secretary of State Edmund G. Brown Jr., has said the new deed was fraudulently backdated in an apparent effort to qualify the President for a full tax deduction for the papers. Brown also has doused the original deed ever existed.
DeMarco said his secretary followed normal legal practice in destroying an old document when a new one is executed and signed to take its place.
Strikers to Talk To Legislators
Striking service employees at the University of Kansas Medical Center are being urged to return to their jobs today while leaders of Public Service Employees Local 1132 discuss their wage demands with legislative leaders.
In a meeting Friday with Lloyd Rose, union business agent, Gov Robert B. Docking said that nothing could be done to meet the workers' demands for a 25 per cent increase in pay. The state expected to vote on a bill to increase all state employees' wages by 5.5 per cent.
Charles Brennan, assistant vice chancellor at the Medical Center, said last night that although exact numbers of workers on the job yesterday were unavailable, it appeared that more workers were returning.
Rose said he hoped to meet with legislators today.
Dillon's Employe Prepares Loaves for the Grocery Shelf
Kannan Staff Photo by ALAN N
Dealers Say International Demands For Wheat Cause Spiraling Prices
Editor's note: This is the first of two articles on wheat and bread price increases.
By BOB MARCOTTE Kansas Steff Reporter
Wheat prices have been on a roller coaster since the Russian wheat deal a year and a half ago, and the ride has been mostly upward.
Anyone watching the price of bread during the same period—and that includes just about everyone—has seen it work its way upward as well.
On Aug. 1, 1972, shortly after President Nixon announced the sale of wheat to Russia, the price of hard red winter wheat on the Kansas City Board of Trade was $1.62 a bushel. One year later, when the impact of the 400 million bushel deal began to be felt on the U.S. wheat supply, the price was $1.35 more, more than double the earlier price.
Two months later the price was $4.67 and,
by the end of the year, still climbing at $5.22.
The peak came on Feb. 20 of this year
when delivery closed doors on a record $1.91 a bushel.
since that time, the price has dropped off almost as dramatically. Last week it stood at about $4.85 a bushel as trading on March deliveries entered its final days.
But that price is more than triple the trading price that existed only two years.
Bread prices, in the meantime, have
From December 1972 to December 1973, according to figures released by the U.S. Department of Agriculture, the average price of a pound loaf of white bread jumped from 25 cents to 31.9 cents. Overall bread prices for 1973 were reported up 28 per cent.
made their own ascent — less spectacular, to be sure, but more direct impact on his pouch's muscles.
A recent survey of food prices in 10 Lawrence grocery stores by the Lawrence Consumer Protection Association showed the average price of a round-foot poultry dish to be 32 cents.
The reason for their hesitation is that there are just too many variables that go into determining what the price of wheat will be on any given day of trading.
"It's a matter of world-wide demand," said recently, "The income of foreign countries is up, and they're demanding better food."
Tom Raiph, a merchantiser with Bartlett and Co. in Kansas City, said that the company was planning to build a new plant.
Many who deal on the grain market are confident that wheat prices will recover in the months ahead. But they hesitate to say just how far that recovery may take wheat prices, and few are willing to guess whether there will again come near the record level.
"Anybody who tries to guess the market for you is a fool," one Kansas City grain dealer said recently. "We're operating in a world of short supplies. We no longer have a domestic but a world market, and the business is just going to have to realize that."
have precipitated the climb in wheat prices, the big factor has been demand for higher yields.
Two weeks ago the wheat prices closed about 40 cents lower on the Kansas City Board of Trade than at the beginning of the same week.
The reasons listed by Norman Teetor, a Kansas City grain merchandiser, as causes of the price drop seem to bear out the fact that world market conditions heavily influence the wheat price on our own domestic markets.
Tector's reasons for the price drop were: -Gold and silver prices dropped on the world's money markets, so foreign countries that have heavily invested their currencies in gold and silver may not be able to buy as much wheat this year.
- Shipments of exported wheat were down from 32.5% of market bushels a week to 10%
— Reain rickets in Oklahoma and Kansas,
important hard winter wheat areas, made
prospects good for another bumper crop
this year.
-Elevator operators in some of the big port cities, especially on the Gulf Coast, have put embargoes on shipments of wheat for export because their elevators are
See BREAD Page 9