Iowa a place 10 grow Carroll Daily Times Herald Vol. 107 — No. 77 Carroll, Iowa, Monday, April 19, 1976 — Twelve Pages Delivered by Carrier Each Kvening for 60c Per Week Copy GNP Jumps to Near Prerecession Peak Economy Continues to Improve May Bow Out — Will he or won't he remain as Secretary of State if the November election produces a second Ford administration? Reports persist that Henry Kissinger may bow out at the end of the present presidential term despite denials from the White House. Pleads Case of Small Dailies WASHINGTON (AP) "We do not have spacious profits with which to defend ourselves and our principles, all the way to the Supreme Court, each and every time we feel them to be under attack. . . . But I am confident that the court will listen to us because we represent the most defenseless among the petitioners." With these words. H. Brandt Ayers, editor and publisher of the Anniston. Ala., Star, "pleaded'the*'calise oT'the' nation's small daily newspapers in a free press-fair trial case which the high court hears arguments on today. Ayers' letter is quoted in a brief submitted to the court on behalf of news organizations ranging from the Anniston Star, which has a circulation of.28.000. to the major television networks. The case, which arose out of a Nebraska mass murder, involves conflicting views about the effect of news coverage on the impartiality of potential jurors in criminal cases and the rights of defendants. It is the first time the court has held a full-scale hearing on the relationship between the free press guarantee of the First Amendment to the Constitution and the fair trial guarantee of the Sixth Inside Rep. Smith believes nuclear power necessity for Iowa — Page 12. Breda's dinner-theatre draws 550 gourmet diners — Page 9. Women's news — Page 4. Editorials —PageS. Deaths, daily record, markets, late news — Page 2. Sports Homers in 9th nip Catfish, Messersmith not sharp in debut- Amendment. A decision is expected by June, District Judge Hugh Stuart of North Platte. Neb., touched off the dispute by restricting pretrial news coverage last October of the case of Erwin Charles Simants, 29. charged with killing six members of a Sutherland, Neb., family. With some modifications made by the Nebraska Supreme Court, the restrictions remained in effect until a jury "was selected Jan: 8 for Sim-ants' trial. He was convicted of first-degree murder and has been sentenced to die in the electric chair. In attacking the judge's order, the news media organizations rely heavily upon a ruling of the U'.S. Supreme Court last June that exposure of jurors to news accounts of a crime does not in itself make a fair trial impossible. The attorneys for the news organizations told the court in a brief last week that the case is vital to "the right of the press rather than government to decide what news the American people will receive." Ayers, in his letter to attorneys for news media organizations, said such restrictions would be felt most severely in small towns. "Our papers are not read in the White House, the Congress, the Supreme Court o r by network news executives," he said. "We have no in-house staff. We retain no great, national law firms. ' "Our only alternative is obedient silence. You hear us when we speak now. .Who will notice if we are silenced? The small town press will be the unknown soldier of a war between the First and Sixth amendments, a war that should never have been declared,' and can still be avoided." WASHINGTON (AP) — The volume of the nation's total economic output jumped at an annual rate of 7.5 per cent during the three months ending in March and moved to within a whisker of its prerecession peak, the government said today. The increase in the volume of the nation's Gross National Product, reported by the Commerce Department, compared to a 5 per cent annual growth rate during the previous quarter. The jump pushed the dollar value of the GNP to an annual rate of $1.616 trillion — 19.4 per cent ahead of peak output during the final quarter of 1973. But inflation cut the quarter's volume of goods and services to two-tenths of a per cent below the 1973 peak. Cutbacks in Europe by Firms LONDON (AP) — Some American corporations are cutting back operations in Europe because of rising costs, reduced profits and other factors, British business publications report. • The surveys by the weekly Economist and the daily Financial Times emphasize that there is no exodus yet. But they say a trend that began after World War II is being reversed. The Economist reported that Goodyear Tire, White Motor, Union Carbide. American Motors and Eaton "have sold off investments in Europe or are cutting down on new investment." Litton Industries recently closed its /two typewriter plants in 'Britain, and Chrysler threatened to shut down its ailing British operation until the Labor government bailed it out. • The Financial Times said that in West Germany. France and Italy, Singer. Westinghouse, W.R. Grace and General Foods "have abandoned or sold a variety of manufacturing and selling operations." ''The change can be exaggerated," said The Economist. "American corporations are not disenchanted with Western Europe, just less enchanted than they were in the 1950s and 1960s." The Financial Times predicted "not a wholesale withdrawal from Europe but a changing relationship between Americans and European busin ess which is probably healthy." But "the fact that some American companies are putting more emphasis on exports from the United States may make them more formidable competitors. Cutbacks, See Page Z Area Forecast Occasional rain likely Monday night and Tuesday. Low Monday night from the upper 40s to low 50s, cooler Tuesday-with a high in the upper 50s. Rain chances are 70 per cent Monday night and Tuesday. The Gross National Product represents the total output of goods and services in the nation's economy and is the broadest gauge of the nation's economic performance. The quarter's increase is within the range expected by Commerce Secretary Elliot L. Richardson and others, but at the high end of the range. The figures for the quarter are preliminary and subject to revision. Richardson had said he expected the rate of growth for the first three months of the year to be higher than for the previous three months. The quarter's increase virtually assured that the nation's economy will surpass its pre-recession peak sometime in the next three months. Although output will be higher than earlier peaks, this gain is taking place in a different environment than the one in late 1973. , For one thing, the nation's population and the size of its work force are larger by 3.8 million. For another, unemployment was at 4.8 per cent in November of 1973. at the onset of the recession, and is no w at 7.5 per cent. However, the first quarter progress indicates that original administration estimates of economic performance for all of 1976 might have been too pessimistic and now are likely to be revised. The latest increase in the Gross National Product is the fourth consecutive quarterly rise, leaving the indicator 6.9 per cent above the recession's trough in the first quarter of 1975. It is the strongest gain since the increase at a 12 per cent annual rate in the third quarter of 1975. The GNP also showed a sharp improvement in the inflation rate as measured in Gross National Product accounts. Prices show an increase of 3.7 per cent at an annual rate during the quarter ending in March, compared to a 6.8 per cent increase at an annual rate during the previous quarter. This marked the second straight quarter of improvement in inflation and the lowest rate since 3.4 per cent in the third quarter of 1972. The GNP inflation measure includes a broader selection of goods and services than that used in the more familiar Consumer Price Index. A key factor in the latest increase in economic output was the start of a replenishment of the inventories of goods kept in reserve by business. Total business inventories climbed at an annual rate of $9.5 billion after adjustment for inflation. This was the first quarterly increase in inventories in six quarters. The drop in demand during the recession had prompted businesses to cut back their inventories. And that, in turn, forced cutbacks in employment. The start of inventory rebuilding signals further gains for employment in the months ahead. See Saving of Billions by Military Overhaul Honorary Queen — Betty "B. J." Johnston, mounted on the horse, was chosen honorary queen of the Carroll County Pony Express Riders Saturday. The others from left are Vickie Worley, Darlene Steffes and Darlene Lenz. Darlene's Cocktail Lounge was the business which donated the most money $516, during the ride for Easter Seals. Its candidate, Miss Johnston, won. The Carroll Royal Blue Saddle Club and the Manning Easy Riders collected $2,248 Friday and Saturday. Poison in River; Shut Off Water to 4 Cities JASPER, Tenn. (AP) — Officials have shut the intake water valves for four cities in southeast Tennessee and northern Alabama after a train derailment that tumbled barrels containing a deadly liquid into the Tennessee River. The chemical, Osmos K33, a wood-preserving paste, was in 144 barrels in two containers strapped to a flatcar of a Louisville & Nashville Railroad freight train. Forty of the train's 90 cars, including the flatcar, derailed Sunday while the train was moving down a mountain grade along the Tennessee Valley Authority's Nickajack Lake near here."It appears three drums went into the river and we can see them," L&N Vice President Phil Hooper said. "They are intact and they have not ruptured. "There are some drums that did rupture on the bank 50 to 75 yards away from the river. Some of these drums have small leaks and we've made arrangements to construct an earth dam to protect them so it will not get into the water," he said. Each of the barrels contained 15 gallons of the chemical, Hooper said. Civil Defense officials said the chemical could cause death if it is breathed or comes in contact with a person's skin. As a precaution, water quality officials from Tennessee and Alabama ordered valves shut off to •reservoirs supplying water to South Pittsburg, Tenn., and Brookport, Stevenson and Southport, Ala. WASHINGTON (AP) - A government commission says the United States could cut $3 billion to $4 billion annually from its defense budget by overhauling procedures for military pay, promotion, retirement and other personnel costs. The Defense Manpower Commission proposed scrapping the current retirement system, which allows all members of the armed services to retire at half-pay after 20 years. It suggested a 30-year minimum, except for men serving in combat units, who would still be eligible to retire after 20 years. The seven-member citizens' commission, which was appointed by Congress, spent two years and $2.4 million assaying America's military manpower needs. In a 518-page report issued Sunday, the panel also said the United States will have to keep its forces at the current level of 2.1 million, regulars and 890.000 reservists for the next decade. But the commission charged that the reserves and the National Guard are a weak link behind the nation's all-volunteer force. In case of war. many reservists and the Guard would be needed overseas in 60 to 90 days, but would not be ready for 120 to 160 days, the panel found. Defense strategists believe American reserve forces would be needed promptly in Europe if the Soviet Union attacked the NATO countries. The National Guard should be considered a replacement pool for the Army in the early stages of a war. rather than filling the traditional Guard role of going to battle in division strength, the panel said. The commission, headed by former Selective Service Director Curtis W. Tarr, recommended reviving a standby draft that would require all young men to register upon their 18th birthday.-A standby system would allow the government to induct men within 30 days of a mobilization order, the panel said. Without a standby draft, it would take four months to induct men in an emergency. Tarr estimated. The commission noted "with grave concern that recent administrative actions have already emasculated any semblance of a viable standby selective service system." The United States abolished the draft in 1973. It decided three months ago that 18-year- old men would no longer be required to register, and most of the Selective Service machinery has been dismantled and its 1.700 workers shifted. Udall Loses Try to Get on in Indiana WASHINGTON (AP) -The Supreme Court today declined to decide by May 1 whether Rep. Morris K. Udall is entitled to a place on the ballot in the May 4 Indiana presidential primary. The court rejected without dissent and without comment a request by the Arizona Democrat for expedited consideration of his appeal from an April 1 decision by a three-judge federal court in Indianapolis. The lower court upheld Indiana's requirement that a statewide candidate submit 500 supporting signatures from each of the state's 11 congressional districts. Udall fell 15 signatures short in the 6th District. R. Davy Eaglesfield III of the Indiana Civil Liberties Union, representing Udall and 6th District voter Nancy Salmon, said it would be no hardship for parties to file their briefs on a speeded-up schedule. He noted that in 1968. the court held a hearing within 30 days after receiving an appeal challenging an Ohio requirement for new political parties seeking a ballot position. In that case, the court struck down a law requiring the parties to file signatures equal to 15 per cent of the vote in the last election for governor. Under the court's normal schedule, the Udall appeal would not be considered for several weeks and by then the Indiana primary would be over. Udall. a candidate for the Democratic nomination for president, first asked Justice John Paul Stevens for an injunction to permit his name to go on the ballot while his appeal was pending. This request was turned down April 6. The candidate argues that t,he Indiana requirement "gives the voters in only one congressional district an absolute veto power over the nomination of a presidential candidate." Gunman Killed on Jet by FBI Agents; Two Hostages Unhurt Senate May Take Up Money Bills First Demos' Legislative Game Plan May Change By Harrison Weber (Iowa Dally ftess Association) DES MOINES — If the House doesn't complete action soon on the criminal code bill, the Democrats' game plan may change. ( The Senate, instead of the House, may be taking up appropriations bills first for the state department of social services. Rewriting the st.ate's criminal code is a massive project; it literally has taken weeks to debate the bill in the House. Senate Democratic floor leader George Kinley said he has been informed by House members that there is a chance the Senate might get the bill back by Tuesday night. "In view of the way the Senate handled the bill last year, it certainly would be my hope that they (the House) . would pass the bill by Tuesday night and we would get the bill back in the Senate. They tell me that is a possibility ... "If it extends longer than that, I would hope.that it would go to a conference committee." At this moment, Kinley remarked, the House has all of the important bills — criminal code, anti-trust, workmen's compensation, reorganization of the state's employment ' security commission and a bill Kinley has special interst in — requiring colored photos on .driver's licenses. In addition, a bill on adoptions has just gone to a conference committee. "We have to break that logjam. We certainly have acted on many more appropriation bills than they have in the House. If they can't break it loose, then we're going to have to start bringing these appropriation bills out in the Senate. • "Those bills were set to start in the House; but we have the prerogative of starting those bills in the Senate and we may well do so." (When asked if the House might complete action on the criminal code by Tuesday evening, both Democratic floor leader Jerome Fitzgerald and Speaker of the House Dale Cochran said it was news to them.) During the past week, there has been a series of meetings with Democratic leaders from the two houses on the appropriation picture. Cochran apparently triggered the meetings when he questioned the amount appropriated by the Senate for city and county assistance, some $20 million. "There are a number of bills and ideas floating around calling for appropriations; some of the figures sound rather high." Cochran said. So he decided it was time for the Democratic leadership to sit down and decide where these bills fit into the total budget picture. On the Senate side. Kinley reports that "we feel our proposed level of spending is about the same level as recommended by the governor. In other words, on the operation part of the budget proposed by the governor, the Senate is approximately at the same level. There is a difference, though, in the capitals, such as transportation and aid to cities and counties. That's where the real difference exists in the budget between the governor and the Senate Weber, See Page 2 DENVER (AP) — A gunman who held two hostages on a private airplane for seven hours was shot and killed by FBI agents early today as he boarded a jet he thought was to fly him to Mexico, an FBI spokesman said. Ted Rosack. special agent in charge of the Denver FBI office, said Roger Lyle Lcntz. 31. was killed shortly after midnight, ending an episode that began in Grand Island. Neb., and included two separate flights over Colorado aboard the commandeered private plane. Neither hostage — pilot Robert Blair and mechanic Harlan Hiller. both of Grand Island — was hurt during the seven hours they spent in the Piper Navaho with the gunman or in the gunfire aboard the commercial jet. Rosack said. "The subject came up the ramp with his hostages, ducked into the galley, and when agents aboard the plane properly identified him. was shot." Rosack said. "One of the agents said he believed the subject fired one shot, but we're still investigating thai." The shooting was aboard a Convair 990. a four-engine jet owned by Ports of Call Travel Club, a local airline. It was the second jet prepared for Lentz. who earlier rejected a DC8 trainer owned by United Air- line.s for the flight he demanded to Mexico. Rosack said Lentz. who faced charges at home including vehicular homicide and larceny, was involved in a gunl'ight earlier Sunday with authorities in Grand Island. He went to the Grand Island airport, carried a .22-caliber revolver and a .410 shotgun aboard the Navaho and ordered Blair to take off. Rosack said. He said Hiller was in the airplane because he had just finished servicing it for flight. After arriving at Denver's Stapleton International Airport, the plane sat on a runway while FBI agents tried to talk Lentz into surrendering. Rosack said. He demanded a Boeing 747. then a Boeing 737, then any type of commercial aircraft to fly him to Mexico. Rosack said. The FBI agent said the plane took on fuel after 3':> hours on the ground, then inexplicably took off. circled the airport for about a half-hour and landed. It was refueled and took off again. During the second flight. Blair got clearance to land at Casper. Wyo.. about 250 miles north of Denver, but just north of Greeley. Colo.. 50 miles north of Denver, the plane turned back and returned to Stapleton. Rosack said it was uncertain why Lentz took over the plane in Nebraska, but the FBI agent said he assumed the gunman wanted to leave the country to escape prosecution on the Nebraska charges. Reporters were not allowed to talk with the pilot and mechanic. They were interviewed into the morning by FBI agents. Rosack said both hostages were "in close proximity" to Lentz when he was shot. The agent said he couldn't say whether Lentz was challenged by the agents aboard the plane before the shooting began. The gunman fired five con- lirmed shots during the episode. Rosack said.
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