Daily Sitka Sentinel from Sitka, Alaska • Page 1

Member of the Associated Press A I I Haldeman's Lawyer Says His Client Innocent in Watergate Cover-Up Acts By HARRY F. ROSENTHAL Associated Press Writer WASHINGTON AP The jury in the Watergate cover-up trial was asked by H. R. Haldeman's lawyer today to understand "his reliance 'on the Integrity and guidance of Richard Nixon" in weighing the obstruction of justice charges against the former White House chief of staff. Delivering his opening state ment, Wilson outlined for the As the lawyer for former jury what he called "chapters" Atty.

Gen. John N. Mitchell did in the Watergate story: Beginning with the break-in planning, the immediate Watergate after- before him, Haldeman's attor ney, John J. Wilson, painted Haldeman an innocent man math, the defendant's need for who had "no intention to ob- money and the $350,000 in Hal- struct justices in the Watergate deman's control that eventually affair." Sitkans Protest Ferry System Plans A small but agressive group of Sitkans attended a public meeting Monday night chaired by Doug Burton, Alaska Marine Highway System a i manager, and let it be known they plan to fight for added service. Burton told the group of 10 that next summer's schedule will be about the same as last year -four stops here by the larger ferries and two by the small LeConte.

When he said the new ferry the Columbia will make only a southbound stop, instead of north and south as was promised last year, nearly every Sitkan present protested. "We're going to raise hell on this one," City Administrator Rocky Gutierrez told Burton. were assured last summer we'd have service both ways. When we were told there were problems, with the snack bar being built and so on, we said okay. But now we're going to make a stand.

We're not going to let them roll over us on this." Later, Gutierrez said the city plans to apply pressure all the way up to the governor if necessary. "I'm sure you're going to have a hornet's nest on this," Claude Chamber of Commerce manager, told Burton. Burton, who had been one of the officials who (old Sitka it could have service both ways from the Columbia, said that last week the Columbia personnel told him they would need up to 24 hours instead of the 11 or 12 originally expected to lay over in Seattle. When questioned, he said he didn't ask exactly why the add i i a i was needed, whether it was for repairs the ship is expected to need or simply for maintenance such as fueling cleaning. "I don't know," he said.

"I just look their word for it that they needed it." Stale Representative Dick Eliason suggested that the reason determined so Sitka can know went to the Watergate defendants. Mitchell's lawyer, William G. Hundley had told the jury Monday that Mitchell was a fall guy whose "loyally and belief in his president" kept him from blowing the whistle on the Nixon White House. "The evidence will show clearly the loyalty scheduling; that by by-passing was riot reciprocated," Hundley Silka on Die trip mirth the ferry would dock at downtown Juneau instead of the less convenient added. Wilson began with the meeting that John W.

Dean III had Auke Bay terminal there. But with Haldeman in January or Burton said that the Columbia February 1972, at a time when rejected two bugging plans docks at 1 a.m. in downtown Juneau, which is not an advantage for the town. Jack Parrish of Samson Tug and Barge asked if, any con- Mitchell had break-in and championed by G. Gordon Liddy.

"Both agree that there was a sideration had been given to an 8- declaration between them that day shcedule instead of a 7-day, Mr. Dean should slay out of Ihe which would perhaps allow more matter entirely," Wilson said. Sitka stops. Burton indicated none had. Both Parrish and Larry Nelson The lawyer said there was a suggestion that because Haldeman's depsty, Gordon Stra- of Alaska Federal Savings and chan, saw memorandums about Loan wanted to know why Sitka, the break-in plans that these which is not on a direct line with were automatically brought to the other ferry stops, is so often the city that lias its service cut when complications arise.

Haldeman's attention! But, said Wilson, "Mr. Haldeman recalls seeing nothing "It's a concept," Parrish said, even hinting at this that Sitka should be considered part of the main line instead of an inconvenience. Burton said one reason Sitka is He said Haldeman never saw any such memoranda "if they existed on the break-in" and "his testimony will be that he so often cut out when problems knew nothing of an illegal na- arise is that that saves 12 or 13 ture." hours, bul when other towns are Of the meetings a week after cut it saves only an hour or two. the June 17, 1972, break-in in He also said, when questioned, which suggestions were made that the dredging of Sergius and that the CIA should tell the FBI Whitestone Narrow, which was to to discontinue looking into the have saved system source of $114,000. in laundered extensive enough campaign money, said and the savings has amounted to there was a genuine concern only about an hour.

that CIA operations be As the schedule is planned now, imperiled. Sitka next year will get a nor- Wilson said that was not an Inbound from Prince Rupert unreasonable theory at the about 4 p.m. Sunday, the south- time, although it was aban- bound LeConte at mid-day on doned later. a the southbound "I don't want you to think for Columbia on Tuesday about 8 am. one moment that the defense and the Le Conte northbound Iste for Mr.

Haldeman in this case evening Tuesday. On Saturday, a contemplates CIA involvement northbound from Prince Rupert the break-in," Wilson said, and a southbound will arrive, both about 4 6 p.m. Tariffs are expected to go up 10 the natler of TMismg mon to 20 percent he said. ev the OTi inal ler ale Tlie ferry system didn't have a defendants, Wilson said it was "very good year" last year he represented to Haldeman by said. Traffic volume was up from Dean that the nev was for the year before but were more attorney fees, family support or vessels.

Southwest broke out bail TM" ev and lf -about even. In Southeast, Haldeman on that, he is just how long the 24-hour layover "and 'wrangelT'w7re TM 1 nspirator to in Seattle will be needed. Eliason also checked i a naccanfTAT- umiimn ton be used for to Veto Benefit Hike For Veterans up, while i a Prince Justice. Rupert and Sitka were down. Wllson said "Haldeman po- oui a silinn on the monev is that he complaint that Juneau politics Sltka assen er volume fell was behind some of the ferry rom about 13,000 lo 12,000 lasl nurnoses year, the gas shortage was improper purposes, blamed for the fall in Iraffic, He said Haldeman ordered Ford tO VetO Burlon said.

several t.mes that the $350,000 Southbound nf Haines "was he nad reserved for polling and hurt real bad," and that affected advertising be turned back to tka the re-election committee after He'said the ferry system is lhe eleclion and that its ulti- aiming for a $7.5 million subsidy mate use as hush monev was for nexl year; last year it was $5 "wholly without the consent or WASHINGTON (AP) President Ford told congressional leaders today lie has decided to veto the 22.7 per cent increase in veterans' benefits because he finds two other provisions of the veterans aid bill inflationary. Press Secretary Ron Nessen said Ford had no illusions that the Democratically-controlled would undoubtedly override him. Ford said he was prepared to accept a veterans benefits increase of roughly 20 per cent million. knowledge of Mr. Haldeman." Josephson Resigns as State Land Use Head Sitka Alaska 20c ANCHORAGE, Alaska A maining in his job if the Re-- Joe Josephson, stale co- publican challenger and apparent winner of the gubernatorial race, Jay Hammond, a chairman of the Joint Federal- State Land Use Planning Commission, has announced his res- him.

ignation. Josephson said Monday if Gov. William A. Egan wins re but lhat he could not justify election on a recount, he would two "defects" in the measure, a provision for $600 a year loans for veterans who were unable to get financing from at Josephson said, "To assure an orderly a i i I have notivied Jay Hammond both by wire and by memorandum, of my willingness to provide him with any desired Tuesday, November 26,1974 Egan Gains Few Votes As Ballots Recounted JUNEAU, Alaska (AP)-Gov. William A.

Egan chipped away at Jay Hammond's lead during the first day of a ballot recount but appeared likely to remain on the short end of tne final tally in the Alaska gubernato-- rial election. With ballots from 15 of the state's 22 election districts recounted Monday, Democrat Egan, seeking his fourth term as governor, gained 27 votes on Hammond, the Republican challenger and apparent i ner. The 15 districts accounted for about 35,000 of the approximately 90,000 ballots cast in the Nov. 5 general election. Hammond held a 365-vote lead going into the recount, which was requested by.Egan.

Election officials and observers for both Hammond and Egan worked well into the night Monday to complete the count of the state's paper ballots. The next scheduled phase of the recount is tabulation of computer ballots. Under state law is financed by the because the difference in vote totals was less than'one-half of i per cent. Egan presumably could call off the procedure and concede the election to Hammond at any time. Hammond was In Anchorage Monday planning for the Dec.

2 swearing-in and was consid- eritig possible appointees for hey posts in his administration; Bob Palmer, -Hammond's campaign manager and chief of staff, said Hammond could fill about 440 state jobs, but the' a camp presently is concerned only with filling certain key aide and commissioner slots. Ford Yields on Budget, Seeks Cut in Spending WASHINGTON CAP) tered by the. Department of Abandoning his quest for a fed: Health, Education and Welfare: eral budget under $300 billion, jOther major cutbacks includ- President Ford proposed $4.6 ed: Veterans Administration billion in spending cuts today $1.1 billion; Agriculture Depart but said further cuts would be ment $600 millib'n; Defense De- unw'ise at this time. parlment $381. and General Services Admihis- In a message to Congress, tra (i on $200 million.

Ford did not spell out his reasons for feeling a i NEW MISS WORLD Helen Morgan of Wales smiles after she was picked Miss World for 1974 Friday night at Royal Albert Hall in London. The 22-year-old model won the Miss United Kingdom title earlier even though she had announced she is an unmarried mother. (AP Wirephoto) Ketch ikon Spruce Cuts Down Operation Brezhnev Rejects China Plan KETCHIKAN, Alaska A The economic squeeze in Japan and soaring inflation in this country have triggered another i cutback in southeastern Alaska. A spokesman for Ketchikan Spruce Mills said that mill will lay off 70 men and revert to a one-shift operation starting Dec. 2.

The mill has carried two shifts of workers for the past years. Last week the mill announced it was shutting down its operations for a i i week and Christmas week. Frank Roppell, KSM a ager, said the i a employes about 150 men he blamed the shift cutbacks on Japan's faltering economy, which in was touched off by last year's oil embargo. Roppell said Japan is the major market lor KSM's wood products. He also blamed the United States' own shaky economic situation and soaring inflation for the stockpiles of millions of board feet of timber stacked in lumber yards a Alaska.

The impending layoffs at Kel- chikan Spruce Mills brings to about 150 the number of per- MOimw sons whohave been left without MOSCOW AP bov et jobs because of the timber leader Leonid I Brezhnev to- economy in recent weeks in dav rejected a Chinese proposal Ketchikan and other south- a lro be withdrawn from withdraw his resignation Egan's request. He said he notified Egan of briefings and to confer with his plans Nov. )2. His resigna- him from time to time about other federal agencies and also tion is effective next Monday, matters within my knowledge." the extension from 36 to 45 months of veterans eligibility (or undergraduate college training. Ford earlier had suggested an 1B.2 per cent increase for most education benefits for four million eligible post Korea veterans and seven million Vietnam era veterans.

Nessen said the President told the congressional leaders "believe me it wasn't an easy decision." Josephson has served in his He said he also gave Ham- post since the commission was mond some specific policy rec- formed in August 1972. ommendations concerning the Josephson clains he made the commission but did not elabo- decision because he belived rate, "continued speculation about my plans and professional de- Josephson, a Democrat and sires, or about the wishes of a former state legislator, in- new state administration, are dicated he would devote him- contrary to the best interests of self to a private law practice, the land use planning commis- He added: "I would like lo do sion." things that will still allow me to Last week the co-chairman speak out on public issues, par- indicated he would consider re- ticularly land use matters." Gain For U.S. WASHINGTON 1 A A big increase in foreign purchases of U.S. machinery and transport equipment helped give the nation its first trade surplus in six months, the Commerce Department reported today. Thf- surplus amounted to S29 million.

Although the surplus was small in terms of total U.S. trade with other nations, it was a welcome development for the United Stales, which has been running heavy trade deficits in reccni months because of the high st i-f foreign eastern towns. Earlier Lance Ingle, manager of Ihe Wrangell Lumber said his firm also is operating on a one shift basis following the recent lay off of 42 men. Alaska Timber in Klawock on Prince of Wales Island, already has announced it is ceasing operation entirely and has put its 40 employes out of Jobs. Ingle said there are 50 million board feet of Alaska lumber stockpiled in Japan already.

The two companies are the largest employers in their respective towns of Klawock and Wrangell. Kelchikan Spruce Mills is a i i a of i a Pulp Co. which in turn is the biggest employer in Ketchikan. i recent weeks a other Lumber Co. spokesmen have expressed fears of future cutbacks because of Ihe drastic drop in demand for timber.

House Kills Fund Bills? WASHINGTON A The House Rules Committee dealt probably fatal blows today lo major bills calling for $2 billion in federally-bai-ked loans for railroads and making com- prehen ive changes in secu- law. By votes of 9 to 6 on the rail hill and 8 to 6 on the securities i i which serves as traffic cop for momc- ment of legislation lo the floor, rejected attempts by the measures' backers lo clrar the proposed Surface Transportation Act of 1974 and proposed Securities Act Amerdmerls nf 1974 for by the full I the disputed Soviet-Chinese border as a basis for normalizing relations between the two countries. In a speech in wmongolia, Brezhnev said the Chinese precondition was "absolutely unacceptable, and we reject it." Brezhnev reported that his summit meeting with President Ford last, weekend had made "a considerable step forward" on the limitation of nuclear arms, and the Vladivostok talks were conducted in a "good, constructive spirit." A Tass report on the Brezh- nev speech in Ulan Bator at Mongolian Republic anniversary celebrations said he again called for a Middle East settlement based on Israeli withdrawal from Arab lands and creation of a Palestinian stale. All other reductions would amount to about $100 million or cuts wnuld be unwise, but he ess seemed to acknowledge lhat variety of factors, in- that deeper spending slashes ding whether Congress could have an adverse effect- agre es to the changes, could uon the already weakening cnan ge Ford's revised budget. economy.

For examp ie, he acknowledg- Altogether, Ford proposed 146 ed in his message that if proj- separate actions affecting fed- oU lease sales on tne out eral spending plans for the 1975 cr contm ental shelf are not ac- year that began. July.l.. 6mplished on schedule, "for Of these, all but 11 would re- environmental or other rea- quire congressional approval. sons the spending fig- Under Ford's revised budget we could i ncrea se by $3 billion blueprint federal outlays in fis- or more In addition, Director Roy Ash of the Office of Management and Budget said the figures were based on an estimate that Ihe unemployment rate for the fiscal year will average about 6.15 per cent, which is below 'the projections of many private economists. Ford made a point of emphasizing that his new budget would have totalled $299.5 billion were it not for $2.7 billion of increased spending for aid to the unemployed.

He added, "it would be unwise, in my view, 'to add addi- for to cal 1975 wuuld total $302.2 billion, compared to his original goal of jusl under $300 billion. Of the $4.6 billion in reductions urged by Ford, the biggest chunk, $1.7 billion, would come from programs adminis- Items for Nome Gathered ANCHORAGE, Alaska (AP) A two-day drive to collect food, clothing, appliances and Uonal do ar reductjons furniture for victims of. the each do of increased Nome Hood has nettedI 45 tons he unemployed of materials to be flown to western Alaska later this week, according to a spokesman for KENI Radio Station. The radio station coordinated the emergency relief drive. The spokesman said Monday that $2,325 in cash also was donated for one purchase of special foods which conform fo the Alaskan native diet.

The Salvation Army Ihrift Connolly To be Tried WASHINGTON (AP) Former Treasury Secretary John B. Connally has been ordered to stand Irial here March 19 on charges of accepting a $10,000 a parking lot last Saturday and Sunday. Ford Briefs Congress On Pact with Russia WASHINGTON (AP) President Ford told congressional leaders today that Soviet chief Leonid I. Brezhnev "is concerned about a wild arms race" and for that reason agreed a i to join in i i i offensive nuclear weapons. "This provides adequate security for both of us," Ford told an 85-minute meeting that attracted top congressional Democrats and Republicans.

The President's remarks to the group were relayed lo reporters by White House Press Secretary Ron Nessen, who took notes in the meeting. store in Anchorage was closed bribe in a milk fund case. Monday so volunteers could U.S. District Court Judge sort through the donations and George L. Hart Jr.

refused prepare them for shipment. Connally's request 'Monday to The drive was conducted in a have the case shifted to a court in Texas. But Hart agreed lo sever Ihe bribery charge from other accusations in a five- count federal indictment against the former Texas governor. The second trial would deal with accusations that Connally conspired fo obstruct justice would require the Soviets to and committed perjury before scale down their planned nude- a federal grand jury that in- ar weapons program. vestigaled the case.

Ford was quoted as saying Prosecutors estimated that the United States would prob- each of the two trials may last ably be able to increase its ar- from two to three weeks, with ray of nuclear arms slightly un der the ceilings he and Brezh nev agreed to Sunday in basically the same evidence. Edward Bennett Williams, Connally's attorney, suggested that if the former governor is ac- The President sought a secre- quilted on the bribery charge, cy pledge from the members of the prosecutors may decide the the Congress in disclosing the over- drop all ceiling on nuclear delivery tions. systems and a separate limit on the number of missiles each country could equip with multiple nuclear warheads. However, Sen. Strom Thur remaining accusa- Sitka Forecast tonight and Wednesday Nessen said Ford reported, mond, told reporters the intermittent rain with winds over-all ceiling on delivery sys- decreasing to 30 mph.

Tern- terns would be somewhat below peratures near 40. Outlook for Ihe accord, which would be put in final form early next year unless sumo hilch develops, 2,500 for each country. Thursday: rain..