Arizona Daily Star from Tucson, Arizona • Page 1

if MSSStttOl FINAL Edition 15 CENTS 64 PAGES FINAL Edition VOL 133 NO. 291 TUCSON, ARIZONA, FRIDAY, OCTOBER 18, 1974 top of the news i I FAIR, MILD. The National Weather Service is looking for little change in the weather over Tucson today. Today's high should be about 90 and the morning low near 60. Yesterday's extremes were 89 and 55 and those of a year ago were 91 and 42.

Records are 95 and 42. Snow flurries and a cold snap gripped upper Michigan yesterday as winter crossed the northern border. Details on Page 4A. Metoed Bom w. Financial Cri Reported President Before Judiciary Panel dent Richard M.

Nixon. Ford, said there was "no deal, period, under no circumstances." (AP Wirephoto) Members of a House judiciary subcommittee question President Ford, back to camera, on his pardon of former Presi Ford Testimony On Pardon: There Was No Deal, Period' global OIL SQUEEZE ANNIVERSARY. On Oct. 17, 1973, members of the Organization of Petroleum Exporting Countries took their first steps toward quadrupling the price of oil in less than 10 weeks. Industrialized countries are reeling from the effects.

The oil countries argue that between 1955 and 1970, when prices of industrial products were rising, the price of oil fell. Page 14B. national NIXON'S TESTIMONY. The former president's lawyer says he will probably be healthy enough to testify at the Watergate cover-up trial in three weeks or a month. Meanwhile, jurors and spectators in the courtroom listen with earphones to the first two of more than 30 White House tapes introduced in evidence.

Page t. FORD VETOES SECRECY BILL. President Ford yesterday vetoed a bill that would have amended the Freedom of Information Act to give judges the power to determine if requests to keep documents from the public are valid. Ford says the bill would have harmed the ability of the intelligence services to function and interfered with diplomatic relations. Page 14A.

WARY DESERTERS. A deserter who returned recently to the United States from Sweden says a sizable minority of deserters in Sweden want to come home but won't unless they see that he is treated fairly. Page UB. AUTO EMISSIONS CONTROL. A study released by three leading universities proposes that the federal deadline for a 90 per cent reduction in air pollutants emitted by new cars be relaxed until 1980.

Page 3A. CALF SLAUGHTER. The Humane Society of the United States urges Wisconsin authorities to prosecute those responsible for the slaughter of 658 calves Tuesday, asserting that anti-cruelty laws were violated and that politics and economics should not be allowed to interfere with enforcement of the law. Page B. RETURN FROM CUBA.

Four U.S. citizens released from Cuban jails as a gesture of good will to Sens. Jacob K. Javits, and Clairborne Pell R. are flown from dos to Miami.

The FBI immediately arrests of them, Philip Fred Burriis, Oakland, and Richard Peter Johnson, whose parents live in Walnut Creek, Calif. Page SB. GAME BLACKOUT Plans to televise the University of Arizona-Arizona State University football game are canceled by the schools' athletic directors, who say the reason for the cancellation was an unauthorized cable television broadcast of last year's game. Page ID. MOUNTAIN BELL REFUNDS.

About Mountain Bell customers may receive more than $100,000 in refunds or credits, the attorney general announces after an investigation by the state's Consumer Protection Division. Page 8B. VETERINARY EDUCATION. The Arizona regents' Long-Range Planning Committee hears recommendations that an advisory committee on veterinary education should be formed or a conference held on the subject. There are only three Veterinary schools in the Western United States.

Page 10A. local UDALL AND TUCSON HOUSE. U.S. Rep. Morris K.

Udall says he had a special rental arrangement at Tucson House from October 1972 to last February whereby he paid $26 a day for those days when he was living there. The financially troubled apartment house is currently the subject of a federal investigation into possible civil and criminal violations. Page IB. ANTI-UNION LETTERS. John Fitzpatrick, president and business representative of the Retail Clerks Union Local 727, charges that letters written to employes of the Tucson Medical Center by its administrator, Donald Shropshire, were attempts to instill fear of unions into workers.

Page 7A. A BLAST AT TOWN HALL, County Supervisor Ron Asta sharply criticizes Arizona Town Hall delegates for promoting the use of the automobile and encouraging urban sprawl and freeways. "Somebody should tell those people it isn't 1954, it's 1974, and you can't buy their kind of thinking any more," he asserts. Page 11 A. FIRED POLICEMEN.

One of two police lieutenants, fired after they were found in the downtown City Annex Sunday, is charged with having an unauthorized key to the building, but a city official says that all keys are accounted for. Page IB. arizona $11 Million Debt Due By Nov. 1 By RICHARD HALL Star Staff Writer Tucson Gas Electric Co. hit a sudden financial emergency yesterday, when a $24 million bond issue fell through and left TGE with $11 million in bills due Nov.

1 and no money to pay them. Tense and shaken, TGE chief financial officer Theodore M. Welp told the Arizona Corporation Commission that TGE had approached the end of its financial tether and then quickly left to work on the sudden crisis. TGE's disclosure relayed to the commission minutes after Welp received word by telephone of the bond issue's death came on the third day of the commission's increasingly confusing hearings on TGE's 13.6 per cent rate increase request. "Now that we have used up all our available credit and have large bills coming due Nov.

1, we must find an alternative source of credit on the order of $10 to $12 million to pay those debts," Welp told the commission. The failed bond issue, a one-year security earmarked to pay pollution control expenses at two power plants, was killed after underwriters and legal counsel examined the commission's Wednesday decision on the controversial San Juan transmission line. The commission denied TGE permission to include a $76 million investment in the power line among its "used and useful" properties on which it may earn a profit because the line started operation only 17 days before. Welp said financial authorities handling the $24 million bond issue felt that removal of the line from cost considerations in TGE's current rate hearing would damage the bonds' salabili-ty. 4 For that reason, he said, the bond experts required that a sticker be attached to the front page of the bond prospectus announcing that the commission's San Juan line decision had made the bonds a risky financial proposition.

TGE officials, calling the sticker a "red flag" scaring off investors, removed the bond issue from the market and started searching for ways to pay two crucial Nov. 1 bills that the bond revenues would have handled. Welp said TGE could pay the bills a $7 million property tax payment and $4 million in stock and bond payments by pawning its oil inventory or unpaid customer accounts to a willing bank. "We're going to pay the bills," affirmed TGE Treasurer J. Robert Johnston in an informal late-afternoon interview at TGE headquarters, a few hours after the initial shock of the bond issue's death had faded.

Commission Chairman Ernest Y. Garfield, (Continued on Page 15A Col. 1) Turkish Aid Compromise Ends Impasse WASHINGTON (AP) The head-to-head impasse between President Ford and Congress over cutting off U.S. military aid to Turkey was broken yesterday with approval of a new compromise reportedly acceptable to Ford. It was passed overwhelmingly by the House and then by the Senate within hours after the House failed by only two votes to override Ford's second veto of a congressional Turkish aid cutoff.

The House approved the new compromise 191 to 33, and the Senate sent it to Ford by voice vote. (In Arizona's delegation, Rep. John Rhodes voted against overriding the veto. Reps. Morris K.

Udall, Sam Steiger and John B. Conlan were listed as not voting.) The new compromise delays cutoff of the Turkish aid until Dec. 10, providing Turkey sends no more "implements of war" to its occupation forces on Cyprus, does not enlarge those forces and continue to observe, the present cease-fire. The measure Ford vetoed earlier would have cut off aid if Turkey sent any kind of equipment to the Cyprus forces. The compromise passed the House with little debate after leaders announced it would not be vetoed by Ford.

The controversy had held up adjournment of Congress for the fall election campaign by nearly a week. Both houses recessed in late afternoon until Nov. 18. Sen. Thomas F.

Eagleton, told the Senate that Ford accepted the ban on transshipment of "implements of war" by Turkey "with great reluctance and begrudgingly." Eagleton, a chief sponsor of the Turkish aid cutoff, said the final result of the cutoff "is that from now on U.S. policy in the Cyprus matter will no longer be tilted toward Turkey." i WASHINGTON (AP) President Ford, in an unprecedented personal appearance before a congressional panel, said yesterday that "there was no deal, period, under no circumstances," in his pardon of former President Richard M. Nixon. Ford said he granted the pardon for the benefit of the nation, not Nixon, and is convinced he did the right thing at the right time. "I wanted to do all I could to shift our attentions from the pursuit of a fallen president to the pursuit of the urgent heeds of a rising nation," he said.

Ford said he hoped that by coming before the House judiciary subcommittee and giving his account of the pardon personally he had "at least cleared the air" of the rumors and suspicions that have circulated about the pardon since he announced it Sept. 8. But most subcommittee members said they still regarded many questions as unanswered, and Chairman William Hungate, said further hearings, with other witnesses, might be held after the November election. "I'm confident all the facts are not out," said Rep. John Conyers, the author of one of the two resolutions of inquiry that led to Ford's appearance.

Happy Hospitalized Vice President-designate Nelson A. Rockefeller announced yesterday that his wife, Happy, was undergoing an operation for cancer in her left breast. (Story on Page 12A.) 100 Hike In Arena's Rent Asked Public Meeting Planned On Community Center By ROBERT SVEJCARA Star Staff Writer A 100 per cent increase in rental fees for performances in the Tucson Community Center arena and a 50 per cent increase in fees for banquets, dances and conventions were recommended yesterday by center officials. The Tucson Community Center Commission, which heard the recommendations yesterday, has scheduled a public meeting for 8 a.m. Oct.

30 to get citizen reaction. The fee increases were two of many recommendations designed to reduce the center's $650,000 yearly operating deficit. After the public hearing, the center commission will make its final recommendations on policy td the City Council. In the recommendations made by Robert W. Thompson, center director, the cost of renting the center arena to commercial shows would be increased from $750 per day to $1,500 per day, or 10 per cent of the daily gross receipts.

For non-commercial shows, the fee would be increased from $600 to $1,200. For banquets, dances and conventions, the fee would be raised from $400 to $600 a day. Thompson said that in 90 per cent of the commercial rentals of the arena the $1,500 figure would not be applicable as a minimum charge because the percentage of the gross receipts is higher. Increases is fees are also proposed for the music hall, and small auditorium. Renting the music hall for commercial shows would cost a minimum of $600, up from $400; non-commercial show rentals would be $300 a day, up from $200.

Small auditorium rental for all uses would cost $200 a day, up from $120 a day now. None of the increases would go into effect before January. Thompson also recommended that center officials begin collecting already instituted fees for special services, including a $200 charge for setting up boxing rings or the basketball floor, and additional charges for other equipment. "We've had these charges in the past but haven't been applying them, mainly at my discretion," Thompson said. He also recommended that the center initiate a freeze on hiring employees and that those employes who leave not be replaced.

Commission members agreed to begin an immediate review of the center's operating expenses and an analysis of the way individual buildings are used to determine true receipts and expenses. A suggestion that the commission ask the city for authority to hire a consultant to examine the center's existing operation, and future potential was approved. In addition, the commission agreed to include Thompson's recommended increases as pari of a short-range plan to "re-evaluate fee and performance schedules and forestall any further deficiencies." They also intend to work out a long-range comprehensive plan, including a statement of philosophy to be presented at the public hearing- The questions concerning the operation of the center includes: Should the center provide full services, rather than charge extra for labor and materials. Should the center be operated on profit-and-loss basis? Thompson said that if the commission determines it is necessary to put the center on a break-even or money-making basis, officials would have to charge for labor and materials as extras and cut their present staff of 50 full-time employees in half. Also, the center should (Continued on Page ISA Col.

1) GNP Drop Continued During Third Quarter Rep. Bella Abzug, the author of the other one, said more witnesses had to be called, particularly former White House chief of staff Alexander M. Haig, before Congress and the nation could be certain there was no deal involved in the pardon. "This is only the beginning," she said. Before submitting to brief questioning by the subcommittee members, Ford read for' 45 minutes from a prepared statement in which he recounted to a nationwide radio-TV audience the steps leading up to the pardon.

He said a pardon was first mentioned to him by Haig at a meeting Aug. 1, a week before Nixon resigned, as one of six courses of action being considered in the White House. The meeting was prompted by the discovery that a tape Nixon had been withholding from the courts contained damaging evidence of his knowledge of the Watergate cover-up, Ford said. "The substance of his (Haig's) conversation was that the new disclosure would be devastating, even catastrophic, insofar as President Nixon was concerned," Ford said. The tape was made public Aug.

5, producing overwhelming sentiment in Congress for Nixon's impeachment. Ford said that other steps being considered Star-News Construction started in September on 1,120,000 units of privately owned housing, at a seasonally adjusted annual rate. This was an increase of 5,000 from August, but still 39.3 per cent below the level of September 1973. Housing is in a severe depression because of tight mortgage credit. The September figure indicates that further declines in housing starts lie ahead.

Permits were issued in September for construction of 825,000 housing units, at a seasonally adjusted annual rate, down 8.3 per cent from August and 50.2 per cent from September 1973. The statistics on output were estimates of "real" gross national product, the adjusted quantity of goods and services produced, as distinct from the inflated dollar value of those goods and services. The real GNP is considered the most comprehensive measure of the economy's performance. Although there is no precise formula, a recession is defined conventionally as a decline of real GNP in two or more consecutive quarters. The drop in the July-September quarter, or at least its size, surprised administration officials.

They had predicted until recently that real GNP would level off or rise slightly and have maintained that the economy is not in a recession. on Aug. 1 were fighting impeachment to the end, resignation at once, resignation at a later a temporary stepdown by Nixon, trying" to get a censure vote as an alternative to impeachment, and a Nixon pardon of himself. He said Haig did not advocate any of the options and that he withheld any recommendation of his own until he had time for further thought. Ford said the subject of a pardon for Nixon was not brought up again until his first news conference as President on Aug.

28, when he was advised to prepare for questions about it. The questions came and Ford said he would not make any decision until he saw what the special prosecutor and the courts would do. "Shortly afterwards," Ford told Congressmen, "I became greatly concerned that if Mr. Nixon's prosecution and trial were prolonged, the passions generated over a long period of time would seriously disrupt the healing of our country from the wounds of the past." Ford said he sought legal advice from White House counsel Philip Buchen and other lawyers on his staff about the pardon powers of a president, but otherwise consulted no one about it. He also said no one recommended he grant the pardon.

Other than seeking assurances that Nixon would accept a pardon, he set no conditions on it, he said, specifically not requesting a confession. In answer to a question later, he said he felt the acceptance of the pardon was an admission of guilt by Nixon. Ford said there was no connection between the pardon and the arrangement for disposition of White House tapes and other documents reached with the former president at about the time the pardon was being considered. Be said the White House was "besieged" wun requests for access to the tapes by the special prosecutor and others, and that he set out to settle that question before the pardon issue arose. The issue of the tapes produced the sharp- (Continued on Page 10A Col.

5) A's Take Series With Fifth Game OAKLAND, Calif. (AP) The Oakland A's won their third consecutive World Series championship last night, beating the Los Angeles Dodgers 3-2 in the fifth game of the baseball series. The A's won the series four games to one, and, ironically, in four of the five games the final score was 3-2. The winning run came in the seventh inning. Joe Rudi, leading off the inning, slammed the first pitch from Los Angeles relief ace Mike Marshall into the left-field seats for a home run, breaking a 2-2 tie.

Oakland's own relief ace, Rollie Fingers, who pitched shutout ball over the final two innings to preserve the victory, was named the most valuable player in the series. When Fingers threw out pinch-hitter Von Joshua for the final out of the game, a huge celebration started on the field, with fans and players swarming over each other while fireworks exploed behind the eld wall. UM Washington WASHINGTON Government sta tistics issued yesterday showed the third consecutive quarterly decline in the nation's total output, or gross national product, practically assuring that the current economic slump will go into the record books as a recession. Production of goods and services dropped at a seasonally adjusted annual rate of 2.9 per cent in the July-September quarter, following declines of 7 per cent in the first quarter of this year and 1.6 per cent in the second quarter, the Commerce Dept. reported.

The decline is longer and deeper than in the recession of 1969-70. Not since the 1960-61 recession has output slid for more than two quarters in a row. Many economists expect the decline to continue well into 1975 or even longer, which might make this the worst of the six recessions since World War II. The department also reported that inflation accelerated in the July-September quarter. The inflation rate, by the broadest measure, was 11.5 per cent, up from 9.4 per cent in the second quarter and almost back to the 12.3 per cent rate in the first quarter, which was the biggest price jump in 23 years.

In another report, the department said housing construction leveled off at least temporarily last month. index Bridge Lifestyle 1-5C Comics 14-15D Movies 13D Crossword 14D Public Records Editorial 16D Sports 1-D Financial 8-JD Tucson Today ....11 Good Health 9A TV-Radio 15D Horoscope It j5 Want Ads 6-16C.