The Courier-Journal from Louisville, Kentucky • Page 2

A 2 1 Hi: 01 K1F.R-J01 AL, WLDMmi, Al CI 29, 1973 Nixon accountants deny pardons affected audit Agnew case witness reportedly talking Sty tfovtritr-Sournar II HuMHiW mm mm WWymiMK i iSf.Wl HgWIlWIIWUI jLWLUMtMIIMiilUlMJ "I IIP III! MUM tft4 -V-i Yul f3A' i 1 Associated Press THE ONLY DEFENSE WITNESS at the Gainesville 8 trial was Steven Stellman, left, a research chemist from Denver, shown with attorney Morton Stavis of New York City. After calling only 1 ivitness Gainesville 8 defense rests friends in Baltimore, was negotiating with George Beall, the U.S. attorney for Maryland. In return for limited immunity from prosecution, sources familiar with the investigation said, Hammerman is prepared to provide the prosecutor with information. It could not be learned whether his testimony, if it ever reached the grand jury, would concern directly the allegation of bribery, extortion and federal tax fraud that Beall has told Agnew by letter were the focus of the investigation surrounding the vice president.

Hammerman also has extensive friendships and connections with others under investigation. Hammerman, a millionaire financier and land developer and a major solicitor for and contributor to various Agnew campaigns, has avoided newsmen since Aug. 8. On that date he issued a written statement through his office acknowledging his formal notification by the prosecutor that he was under investigation for possible criminal violations. Hammerman said then he was confident that allegations would "prove to be unwarranted." Lawyer declines comment Hammerman could not be reached yesterday.

At his investment company, the S. L. Hammerman Organization, he was reported to be out of town. Hammerman's lawyer, Sidney S. Sachs, also declined to comment on his reported contacts for his client with the U.S.

attorney. Beall's office has responded to bitter complaints from Agnew that news leaks on the investigation have come from the prosecutor's staff by making even more firm the refusal to discuss any aspect of the investigation. Accordingly, confirmation of Hammerman's reported decision to testify freely could not be obtained there. Several other lawyers involved in the investigation, however, said that they were now conducting their own clients' cases on the assumption that Hammerman "is talking to the federal prosecutors" and may have been granted limited immunity from prosecution in return. The prosecutor's office is known to have granted such immunity to at least one other key witness in the kickback investigation, Jerome B.

Wolff. Wolff, who is now the president of the Baltimore engineering consultant company of Grciner Environmental Services, was formerly highway-contracting deputy under Agnew during Agnew's terms as Baltimore County executive in 1963-67 and as governor of Maryland in 1967-69. fense will rest on what the prosecution calls its case." The defense witness was a bearded chemist described as an explosives expert, Steven Stellman of Denver, Colo. He testified that a mixture of potassium permanganate and glycerin in a two-ounce medicine bottle could not explode and would be unreliable for starting a fire. Stellman said he tested the mixture several times and it rarely burned.

He said it would probably melt in an auto gas tank. One of the charges is that defendant Scott Camil twice demonstrated the use of such a device to other defendants. Seven of the antiwar activists are accused of plotting violent disruptions during the 1972 Republican National Convention at Miami Beach. The plot allegedly included plans to throw fire bombs into police car gas tanks. The eighth defendant is accused of failing to report crimes by the other seven.

Wa tergate trial judge Ruling on Nixon tapes likely today From L. A. Times-Washlnston Post Service and New York Times Dispatches NEW YORK Officials of the accounting firm that audited President Nixon's real estate transactions in California and Florida said yesterday they are confident the report gives an accurate picture of the dealings. They said the presidential pardon given three former associates last December played no part in their selection to conduct the audit. Two officers of Coopers Lybrand, one of the country's largest accounting firms, said they were surprised last month when they were approached to conduct the audit but decided there was no reason to disqualify the firm.

The Western White House released Monday the auditors' report, which showed the President was able to buy a 25.5-acre property in San Clemente, chiefly because of loans from Robert H. Abplanalp. He sold the bulk of the property to an investment company owned by Abplanalp and C. G. (Bobo) Rebozo, both longtime friends and supporters of the President.

Questions were raised about the report because last December the President unconditionally pardoned three former associates of the Coopers firm. The three one general partner, one partner and one senior associate had been convicted of fraud in connection with Continental Vending Corp. The three were fined a total of $17,000 but were not sentenced to prison. Coopers Lybrand, based in New York, issued a statement yesterday in the name of Philip L. DeFliese, managing partner and recent chairman of his industry's rule-making Accounting Principles Board.

Resigned from firm DeFliese noted his firm had more than 500 partners in the United States alone, "two-thirds of whom were not even members of the firm in 1962." He stressed the belief that the selection of the firm for the Nixon audit "was solely on the basis of its professional reputation and unquestioned integrity." DeFliese said anyone who read the reports on the two properties would realize they represented a "highly professional job" and "the pertinent information has been brought to light." The three men involved in the trial resigned from the firm more than five years ago, DeFliese pointed out and have since embarked on successful careers of their own. He said their trial had turned on "a technical issue." Harris Amowitz, general counsel of the Bacons Bashford Manor, St. One of the best ways to keep your thoughts locked into the thang- ing of seasons! A chain-link pattern covers Arnel triace- tate jersey with side braid and button trim. By Tribute for sizes Wi to 2412 jn navy red or brown I Dress Dept. I By BEN A.

FRANKLIN New York Timet News Service BALTIMORE Another key witness in the federal investigation of the alleged role of a number of officials, including Vice President Agnew, in kickbacks from Maryland contractors was reported yesterday to be cooperating with the U.S. attorney's office in return for preferential treatment. Informed sources said I. H. Hammerman II, one of Agnew's closest Nixon campaign probed on money given reporters From Wtshlnslon Star-News end AP Dispatches WASHINGTON Federal auditors are investigating the failure of President Nixon's re-election campaign organization to report $1,000 weekly salaries paid to two reporters who traveled with democratic presidential contenders.

The reporters fed daily secret reports on the candidates' activities to Murray M. Chotiner, a longtime political strategist for Mr. Nixon. Meanwhile, the name of the first reporter employed by Chotiner became public yesterday. He was identified as Seymour Freidin, now London bureau chief for Hearst newspapers.

The other had previously been identified as Mrs. Lucy Goldberg, a New York writer. Received $1,000 a week Both received $1,000 a week, plus expenses, Chotiner said. However, neither showed up on campaign spending reports filed with the General Accounting Office under a federal law requiring disclosure of salaries and other payments. The GAO's Phillip S.

Hughes said his Office of Federal Elections is looking inlo the $1,000 weekly payments. He said the Finance Committee to Reelect the President had the responsibility to report the payments under the campaign finance disclosure law that took effect April 7, 1972. A spokesman for the Nixon finance unit said the payments showed up on Choliner's expense accounts as "surveys." Freidin began his work sometime in 1971, Chotiner said, and continued through last September, when he quit and Mrs. Goldberg was hired. Both Freidin and Mrs.

Goldberg claimed at the time to be working on books about the campaign. Neither has published such a book. Said he never spied Columnist Jack Anderson reported yesterday he had contacted Freidin "in the Mediterranean." Anderson quoted Freidin as saying: "I never spied. I gave my unvarnished views which (former Atty. Gen.

John w-N.) 'Mitchell told Chotiner were junk." i r-w-Chotiner said Freidin and Gold-' berg were the only two reporters who worked for him. Their activities did not overlap, he said, because Freidin quit before Mrs. Goldberg was hired. Nemman to speak 'bt reformatory dinner Ken Rowland, WHAS newsman, will give a keynote address Saturday at a din-' ner meeting at the Kentucky State Refor-'. matory, near La Grange.

-The dinner is sponsored by the Louis-'ville Chapter Jaycees, in conjunction with the Kentucky State Reformatory KRS) Chapter Jaycees. Proceeds of the dinner, scheduled for 7 to 10 p.m., will go to the KRS chapter for membership dues and projects. Courier-Journal Advertising Standards Advertising published in Ths Courier-Journal is accepted on the premise that the merchandise and services offered are accurately described and willingly sold to customers at the adver-- tised price. Advertisers are aware of these eon-. ditions.

Advertising that does not conform to these standards, or that is deceptive or is never knowingly accepted. If any reader encounters pliance with these standards, we ask that you inform Courier-Journal Advertising Department 582- 4384 525 West Broadway or your Better Business Bureau 583- 6546 312 W. Chestnut St. SUBSCRIBER'S SERVICE If your paper is not delivered, or if you have a question regarding service, call 582-4752 or write Subscriber's Service Desk, The Courier-Journal, Louisville, Ky. 40202 Published by The Courier-Journal and Louisville Times daily (morning) at 525 W.

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1 Consolidation of the Focus, 1826; The Louisville Daily Journal. 1830; The Morning Courier, 1837; The Daily Democrat, 1843. First issued as The Courier-Journal Nov. 8, 1868. Editor and Publisher, Barry Bingham.

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All mail subscriptions and orders for back copies are payable in advance. Carrier-delivery rates: Daily Couiier-Journa) 55c a ureck daily and Sundsy, 80c; Sunday only, 25c. tanber Audit Bureau of Circulations. In the Nation firm, said in an interview yesterday the three former associates are no longer with the firm. He said despite their convictions they were never deprived of certifications as independent accountants.

In addition, he said, the pardon has not resulted in the return of the fines they paid. White House deputy press secretary Gerald L. Warren said "there is no connection whatever" between the accounting firm as now constituted and the three men who were convicted. He said the President was unaware of these convictions when the firm was retained. Amowitz said he initally was approached to take the assignment by Kenneth Gammell, a partner in the Philadelphia law firm of Dechcrt, Price and Rhodes, a Coopers Lybrand client.

Gammell and H. Chapman Rose, a Cleveland attorney, conferred with President Nixon at Key Biscayne, last month and suggested he employ an independent accounting firm to audit the records of the real estate dealings. After specialists at Coopers decided the transactions could be audited, Amowitz said, "I sat down with Mr. Gammell and I indicated to him how we would have to conduct the engagement." Amowit, said he also told Gammell about government matters in which the firm had been involved, including the Continental Vending case. He said Gammell answered, "What the hell relevance does that have?" Rose said yesterday the selection of Coopers Lybrand was made by both Gammell and himself.

He said he knew the Coopers firm because it had done auditing for Clavite of which ha was a director. Clavite is now a division of Gould, formerly known as Gould National Battery, Inc. Amowitz noted the auditors' report contained no "exceptions," indicating the examiners felt they had been provided with everything they needed to do a thorough search. Matthews, Shively, Jeffersonvillt against producing materials of a confidential nature that is both lawful and necessary. Cox has argued during the several weeks' exchange of written and oral positions that no man is above the law in the investigation of a criminal matter.

ISixon to leave California for holiday at Camp David Washington Star-News SAN CLEMENTE, Calif. President Nixon plans to cut short his California stay and fly back to Washington toward the end of this week to spend the Labor Day weekend at Camp David, Md. When the President left Washington a week ago Monday, aides said he expected to work and relax at his Western office and home here until after Labor Day. In announcing the change in plans Monday, deputy White House press secretary Gerald L. Warren said Mr.

Nixon wanted to spend the upcoming holiday weekend with his family at Camp David, in the mountains north of Washington. Hijacking curb proposals weighed New York Times News Service ROME The 128-country International- Civil Aviation Organization opened a conference here yesterday to consider government proposals for new agreements to curb hijackings. Assoclited Press GAINESVILLE, Fla. The defense in the Gainesville Eight conspiracy trial rested its case yesterday after calling only one witness an explosives expert. The jurors, who have been sequestered for most of the month-long trial, smiled when attorneys for eight members of the Vietnam Veterans Against the War announced the conclusion of their case.

U.S. District Court Judge Winston E. Arnow commented, "This trial has come to a conclusion a lot more rapidly than I had anticipated." The prosecution rested its case yesterday and closing arguments are scheduled tomorrow. Today was set aside for arguments by lawyers from both camps on what additional information the government must furnish the defense about an early prosecution witness, FBI informer William J. Lemmer.

Defense attorney Doris Peterson said in her opening statement that after the testimony of the one witness, "the de The circuit court could do the same with Sirica's decision as well as its own. If the lower courts refused to stay a decision adverse to the President, White House lawyers could ask Chief Justice Warren E. Burger, supervising justice for the circuit of the District of Columbia, to block its effect. The power of a Supreme Court justice to put an issue on ice until the court acts was vividly demonstrated earlier this month in another controversy involving presidential power. That time the question was the power to bomb Cambodia.

Justice Thurgood Marshall blocked a district court order that halted the bombing pending action by the high court. Thus, even though a hearing was scheduled before a circuit court, the circuit judges could not have enforced their own decision had they agreed with the district court. 'Privilege' is issue The appeals court did not agree, the bombing stopped for other reasons and a plea for a special session of the high court to consider the issue was rejected. Special prosecutor Cox has subpoenaed records of specific Nixon conversations for presentation to the grand jury investigating the Watergate scandal. The White House has refused, maintaining that the President and those who confer with him must be guaranteed confidentiality.

Unlike other citizens in similar circumstances, the White House argues, the President has a "privilege" ST. MATTHEWS-3738 LEXINGTON RD. 9:30 PM (Thurs. till 9 PMJ-897-1577 New and in 7.00; 34-40 Associated Press WASHINGTON The Watergate trial judge plans to rule this afternoon whether President Nixon must turn over controversial tape recordings, court officials said yesterday. The ruling by chief District Court Judge John J.

Sirica would be the first step toward the possible "definitive" Supreme Court decision the President has pledged to obey on the tapes dispute. The decision in the landmark case will simply be filed with the clerk of the court, unaccompanied by ceremony, court officials said. Sirica heard oral arguments last week on whether the White House must give Watergate special prosecutor Archibald Cox recordings of certain conversations that took place between Mr. Nixon and his aides in the President's office. Whichever way Sirica decides, the U.S.

Circuit Court of Appeals for the District of Columbia will be asked by the losing side to overturn the decision. The circuit court decision will, in turn, be taken to the Supreme Court. The case could reach the justices in early October. Order could be blocked An order to produce the tape recordings could be blocked pending a final decision by the high court. Sirica, if he rules in favor of the Watergate special prosecutor whose subpoena prompted the legal battle, could block the effect of his own decision pending circuit court action.

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