Arizona Republic from Phoenix, Arizona • Page 1

DUatJS3H 800BB8tiBUC BULLDOG nPTTl A TTh TT TV AvTT A TTDin TThTTTTTh TT TT0 chucUo. Phoenix weather Sunny and hot through the afternoon. High 105-110, low 80-85. Yesterday's high 110, low 79. Humidity: high 44, low 10.

Details Page A-33. 82nd Year, No. 119 Ml MM 11 The reason some people are over weight is because at times they go starch craving mad. 35 cents Telephone: 271-8000 Phoenix, Arizona Sunday, September 12, 1971 (Thirteen Sections, 311 Paget) Khriislicliev dead. '4 VV.

of heart attack alt 77 Soviet hero's Rcspccted for hh Mkh burial denied Leader contributed to Soviet history ii Khrushchev in the 1962 Cuban missile crisis, expressed sorrow over Khrushchev's death. In London, Kennedy told newsmen that during the threatened nuclear showdown the Russian leader "chose to put the cause of peace and the (ate of mankind above national interest. "The decision stands as his hallmark on the international scene. Hopefully, as a result of the Cuban missile crisis, we are wise enough to realize that no nation can profit from a nuclear exchange." In October 19C2. President John F.

Kennedy announced that Soviet missile sites had been discovered in Cuba and ordered a naval and air quarantine of military shipments to the island. Threats and tense discussions followed, with Khrushchev finally agreeing to have the sites dismantled and the missiles removed. Minnesota Sen. Hubert H. Hpmphrey, former vice president and the Democratic presidential nominee in 1968, said Associated Press Nikita S.

Khrushchev was mourned by statesmen and citizens yesterday as a leader of high stature. Speaking for President Nixon in Washington, press secretary Ronald Zicgler said Khrushchev was "a major world figure and his contribution to Soviet history is well known." "The President was well acquainted with Mr. Khrushchev and respected him as a vigorous and colorful advocate of his beliefs," Zicgler added. Thant, secretary general of the United Nations, said he retains "very pleasant memories" of several meetings he had with the former Soviet leader, who died yesterday. Thant, in Philadelphia to attend a luncheon, offered condolences to the Khrushchev family and said he would issue a statement upon returning to New York.

Sen. Edward M. Kennedy, whose brother, the late president, tangled with Khrushchev "broke the monolith of International Communism" and brought down "many of the barriers which previously hud isolated Russia from the political and economic institutions of the west." "Nikita Khrushchev was truly one of those select individuals that history will remember for bringing about change in the world," Humphrey said. Cyrus Eaton, the Cleveland industrialist who has maintained contact with Communist nations over the years, recalled that he met Khrushchev in 1958 and during a 2'4-hotir conversation in the Kremlin told the Soviet leader "that if he had been born in the United States, in my opinion, he would have risen to be head of one of our great corporations." Svctlana Stalin. Joseph Stalin's daughter who defected to the United States in 1967, declined to comment on Khrushchev's death.

"She would rather not talk about it." said her husband, architect William peters, from Spring Green, Wis. 1 Former Soviet Premier Nikita Polilical leaders in fray date for Phase 2 blueprint Support for KOOL groivs in license renewal fight to former chief United Press International MOSCOW (UPI) Former Premier Kikita S. Khrushchev, who rose from a peasant background to loosen the chains of Stalinism in the Soviet Union and play cold war brinkmanship in the died yesterday of a heart attack. He was 77. In death as in the last seven years of his life, Khrushchev was relegated to the status of an "unperson" by the Soviet Union's current rulers, who ousted him in 1964 from the leadership he had shared with others and then held alone for 11 years after Stalin's death in 1953.

There was no immediate announcement from the Kremlin of his death, which was confirmed by friends. The friends said Khrushchev would be buried at noon (2 a.m. Arizona time tomorrow) in Moscow's Novodevichy Cemetery, an apolitical graveyard that ranks second in prestige to the Kremlin Wall, the pantheon of Soviet heroes. In the White House said President Nixon, who once engaged in a well publicized dialogue with the ex premier, "was well acquainted with Mr. Khrushchev and respected him as a vigorous and colorful advocate of his beliefs." Khrushchev suffered a massive heart attack, his third, yesterday morning at his simple country house 25 miles west of Moscow.

He died in the Kremlin Hospital before noon, the family friends said. Nina Pctrovna, his wife of 48 years, was at his side when he died. They had three children. Khrushchev, a coarse but cunning peasant and former coal miner, was earthy and direct even at the apex of power. He loved jokes and savored the limelight.

Friends said the imposition upon him of utter political silence after 1964 hurt him most. The latest assessment of his leadership by Soviet historians refers to his "shortcomings, errors, miscalculations, harebrained schemes, hasty conclusions, decisions remote from reality and bureaucracy." Born April 17, 1894, to peasant parents in the thatched roof village of Kalino-va, 500 miles from Moscow, Nikita Ser-geyevich Khrushchev tended a neighbor's cattle during the four years he went to the town's parochial school. He worked in the coal mines, joined the Bolshevik Party, fought in the civil war and, shortly after his first wife died in 1923, married Nina. Khrushchev later went to Moscow, where he rose through the political ranks, graduated from the elite Industrial Academy lit Moscow, helped Stalin consolidate his power in the Ukraine, organized guerrilla defenses in the area during World War II, returned to Moscow in 1949 and, still an obscure party official, succeeded in the power struggle for ta new leader of the Soviet Union after Stalin's death. Khrushchev Installed Soviet missiles in Cuba, then withdrew them.

He went to the United Nations and thumped his shoe on a desk in the General Assembly. Continued on Page A-30 Nixon sets a Associated Press WASHINGTON President Nixon has set a goal of mid-October for announcement of the wage-price stabilization system that will follow the freeze that expires Nov. 13. Treasury Secretary John B. Connally said yesterday that President Nixon had told the Cost of Living Council he wants to disclose the program by that date.

Nixon met at the White House for lty hours with the council, which administers the freeze. Conally, head of the council, said Nixon asked for specific recommendations by Sept. 30 for Phase II restraints to follow the freeze. Nixon then would have another week or two to consult with interested economic groups before reaching decisions, Connally said. Connally said he feels the freeze has drawn "an unbelievable amount of support among all segments." The Treasury chief declined to discuss the form Phase 2 would take but said he did not expect legislation would be needed to implement it.

Khrushchev (189H971) the renewal of your license, but the refusal to grant that renewal would have to be based upon a lack of performance that is completely void in your case." He said he has often used KOOL as an example of a television station that gives proper recognition to all local problems and needs. Goldwater continued: "I will publicly defend your record at any time, at any public hearing, or any public platform, against any charges that might be made and if you care to use this letter in any way at all, feel free to do so. "Again, Tom, I am terribly sorry that this had to happen, and I am particularly sorry that it had to involve at least two close personal friends of mine who I am sure would not have gotten into it had they realized the utter, I will say stupidity, of trying to dislodge KOOL Fannin stated: "I felt keenly shocked when I read about it (the KOOLcounterapplication). I have been proud of what KOOL has done In the way of public service. They have a good public service program.

I was amazed when it was announced that their license renewal was under attack. "I support them and feel they are deserving of a renewal of their license. If the free enterprise system is to be based on performance, then we ought to recognize the performance," Fannin said. Gov. Williams said: "In my judgment, KOOL has had an exceptional record for public service.

"It has always functioned in the highest traditions of what my own early experience indicates was to be expected from any communications facility oper- Contlnued on Page A-8 Heller: Nixon must fight Asked whether that meant the administration was ruling out restrains on profits, dividends and interest rates that have been demanded by many labor leaders ad Democrats, Connally said: "We don't rule out any possibilities." He observed that authority already exists for control of interest rates. He added that since Nixon announced the freeze Aug. 15, "interest rates have gone down in almost every category." Connally conceded that a postfreeze system would not work withou "voluntary and willing support" from business, labor, agriculture and consumers. Connally said he would carry no specific proposals when he goes to London on Tuesday for a meeting of finance ministers of the world's 10 leading non-Communist industrial nations. They will discuss the status of the dollar with respect to other currencies.

The administration plans to stick as closely as possible to the tax proposals in its economic package, according to a White House source. conduct at next year's national convention, which will be held here. Despite two lengthy closed-door sessions, the governors did not elect Gov. Marvin Mandel of Maryland, as expected, as their next chairman. Instead, Mandel's election will come tomorrow in San Juan, Puerto Rico, as part of the 63rd national Governors conference.

The governors also put off until tomorrow a statement criticizing the administration for having waited too long on the economic front. Heller called Nixon's wage-price freeze a "bold initiative" and said he felt it was "good shock therapy and it took a lot of guts to do it." ed development of Arizona's natural and economic resources. "I figure that I've got some good time left to me," the lowkeyed, soft-spoken banker said last week. "So I decided to step out a few months early to begin working on a project of my own. Slow down a little bit, but to keep my hand in on some of the things around here that I think are really important." Even as he climbed up the corporate ladder at VNB, Patrick's interpretation of what was "really important" knew, almost literally, no bounds as long as the project was a worthwhile contribution to the Valley's coming-of-age.

He spread himself as thin as a mustard plaster, and as efficiently cohesive as a skin graft. Meanwhile, back at the bank, the in-v; Continued on Page A-i It will counter congressional proposals for more relief for the wage earner and the poor with the argument that these groups already have received big breaks. The source declined to say how much of an alteration in favor of lowincome groups the administration would accept. Nixon's tax plan, proposed when he announced the wage-price freeze Aug. 15, includes an advance by one year of the 150 increase in personal tax exemptions scheduled for Jan.

1, 1973. Many congressmen have said there should be a bigger break for the lower-income taxpayer. The economic affairs committee of the Democratic Policy Council agreed with the President on advancing the tax exemption. It also urged that increases in Social Security payroll taxes, now scheduled for Jan. 1, 1972, be delayed.

The committee report called for the Federal Reserve Board to assure lower Continued on Page A-18 for program But he said that the freeze was "in a sense a declaration of bankruptcy in Nixon's policy up to that time." The former chairman of the council of economic advisers said the freeze "created opportunities, not solutions" and added "the followup is the important thing." Heller said he felt Congress was moving in the direction of a wage-price review board, some kind of guideposts accompanied by "some big sticks which in really flagrant cases could be used to punish violators." He suggested that the review board use the force of public opinion and publicity to gain the cooperation of business and labor, but he added that none of this would work unless Nixon takes an active part. Heller said that in addition to wages and prices, profit standards must also be established. But he said that an excess profits tax should be imposed only as a last resort. Heller said that if a suitable framework is devised for the period following the freeze and if Congress modifies Nixon's tax cut, the economy should be in better shape by next year with inflation down to about 3 per cent. Similarly, he said, the interest rates should drop, possibly down to around 7 per cent for long-term' money in the private sector.

But he said he would be very surprised if unemployment drops below 5 per cent by election day. Today's prayer Have mercy on me, 0 Lord; in the greatness of your compassion. Lord, wipe my offense. Amen. Arizona's two U.S.

senators and its governor endorsed KOOL Radio-TV Inc. yesterday in its application tor renewal of Its Federal Communications Commission license. KOOL has been challenged for reli-censing by a citizens group that identifies itself as the Valley of the Sun Broadcasting Co. The group includes well known lawyers, Republican and Democratic businessmen and corporation owners and Democrats who are educators and anti-poverty officials. Supporting KOOL's bid for a new three-year license are Sen.

Barry Gold-water and Sen. Paul Fannin and Gov. Williams. They are Republicans. In a letter to Tom W.

Chauncey, KOOL president, Goldwater stated: "Believe me, nothing that has happened in years has caused me as much concern as the Information I received by. telephone from Phoenix that a group of people, including my closest friends, have organized a company to compete with you for the renewal of the TV license for KOOL" A copy of Goldwater's letter was sent to Harry Rosenzwejg, state Republican Party chairman who is Phoenix jeweler and high among the 10 members of the group challenging KOOL. Rosenzweig and Del E. Webb, chairman of the board and owner of Del E. Webb Construction Co.

and a member of the challenging group, are believed to be two of the close friends Goldwater mentioned. Rosensweig declined to comment on the letter. Webb could not be reached. Goldwater's letter stated: is no question that legally anyone can go into competition with you for Inside SUMMER'S END Several hundred Arizonans spent part of the summer in La Jolla, forming a summer colony. Sun Living-Section.

Page K-l. GUILD PREVIEW The Phoenix Sym-phony Guild tunes up for the orches-tra's 25th anniversary celebration. Women's Forum. Page M-l. Page -10 -12 -13 Nll-12 -15 -16 1-32 -15 -1 A -6 D14-15 D16-22 2- 3 Page -34 A -7 1-12 -15 -12 1-24 B19-21 N5-9 A-33 1-14 A -9 Art Astrology Autos Books Boys and Girls Campbell Classified Crossword Dean Editorials Farm Financial Movto Obituaries Opinion Sports Square Dance Stamps Sun Living Travel TV-Radio Weather Women's Forum Wynn 'A Valley Bank's James Patrick to retire If "XWdf United Press International MIAMI BEACH Walter Heller, former chairman of the Council of Economic Advisers, told Democratic governors and state chairmen yesterday that the administration's postfreeze program will fail unless President Nixon personally fights wage and price increases.

Heller said that if Nixon again adopts a "hands-off policy," Phase 2 of the economic recovery program will not work, lie said the President has to be "pitching at every stage" in contract negotiations and price adjustments. Heller spoke at a one-day meeting of the governors and the state chairmen, who were also briefed on new methods for picking delegates and the rules for prompted Gov. Williams yesterday to say: "Jim Patrick is one of the great builders of modern-day Phoenix. Organizations and causes too numerous to mention benefit from his counsel and leadership, his dedication and his plain hard work." A career ex-Hoosicr (Hope, Patrick moved West in 1942 as director of industrial relations for AiResearch Manufacturing Co. but, in short order, became affiliated with Valley National Bank as manager of its employe training program, a field that remains his specialty.

He had worked his way into management-decision positions well before the state took off like a rocket after World War II. Quickly too, the sleepy desert bank began gaining a national reputa tion forvits aggressiveness and far-sight- i mm-mj By DON G. CAMPBELL Business and Financial Editor All became a bit poorer yesterday with the announcement of James E.Patrick's retirement as chairman of the board of directors of the Valley National Bank of Arizona. The bank's board of directors will formalize the retirement eight months short of the institution's normal retirement age at its meeting Oct. 15.

And, at an officers' meeting immediately following the board's acceptance, Patrick's successor as yet unnamed will pick up the gavel, although the physical changing of the guard will not take place until the end of the year. It cools, but, by no means, ends a distinguished corporate career spanning Arizona's most explosive 30-year period of growth. It was a decision that James E. Patrick.