Arizona Daily Star from Tucson, Arizona • Page 1

30 Mbsom FINAL Edition VOL 132 NO. 284 FINAL Edition 15 CENTS 58 PAGES TOP of the NEWS TUCSON, ARIZONA, THURSDAY. OCTOBER 11, 1973 SUNNY, CLEAR DAY. Tucson skies are expected to be clear today. The weatherman also predicts a cool night ahead.

The high and low temperatures expected today and tonight are 77 and 47 degrees. Snow fell in the Rockies yesterday and rains drenched the Midwest and an areas from Texas to the Great Lakes. Details on Page 4A. Stffif CONCEDES GUUIT 'No Contest' Plea Entered Ui wiu ill; VP'" re ftSt'fyt Global CHILE, MINES TALK. The new Chilean regime begins talks with American mining firms to determine whether compensation should be paid for mines expropriated by the Marxist regime of the late President Salvador Allende.

Page 2B. IC National WARMAKING CURB. The Senate passes a bill requiring the President to withdraw within 60 days troops involved in hostilities without a congressional declaration of war. But the compromise measure also allows an extension under "unavoidable military necessity." Page 5A. JACK ANDERSON.

F. Donald Nixon, the President's brother, worked out an arrancge-ment in October 1969 with Dominican Republic President Joaquin Balaguer for Dominican mining and building concessions in return for a higher U.S. sugar quota and political aid for Balaguer. Page 5B. LBJ SECURITY.

A defender of the million security spending on President Nixon's homes says that at least $5.2 million was spent for security at former President Lyndon B. Johnson's Texas ranch. Page 5A. BOP CONTRICUTIONS. With large investors shying away because of the Watergate scandal, thousands of small contributors are coming to the financial rescue of the Republican Party.

Chairman George Bush says donations in the under $100 category come from 85 per cent of those giving, with an average donation of $22.35. Page 5A. ELLSBERG BREAK-IN. The Washington. Star-News reports that a $5,000 donation from a dairy industry fund was used to pay for the White House plumbers' break-in at the office of Daniel Ellsberg's psychiatrist.

Page 12A. ENERGY CRISIS. An expert on energy presents a pessimistic picture of the future, saying the demand for energy will increase by from 200 to 300 per cent over its present level by the year 2000. Page 14A. ANTI-SMOG PLAN.

The Environmental Protection Agency will release an important set of guidelines on Monday. They are designed to cut down on automobile pollution throughout the state, but particularly in Phoenix and Tucson. Page IB. TAX-FREE ENTERPRISE. Bonds issued under special county bonding authorities are providing money at bargain rates for major industries in Arizona, and the Arizona Supreme Court says it's all perfectly lega.

Page IB. Local COUNCIL, SUPERVISORS MEET. The County Board of Supervisors and the may or and City Council agree to organize a citizens committee to study improvements in local government, including possible consolidation into a metro-government. Supervisor Jim Murphy also suggests possible consolidation of such city and county departments as data processing, purchasing and planning and zoning. Page IB.

CONDEMNATION TRIAL. A California consulting engineer hired by the City of Tucson to place a fair market value on Citizens Utilities Water Co. testifies in condemnation proceedings that the utility is worth $6.4 million, about half the value claimed by the company's president. Page 15A. Lifestyle 1-5D Bridge Movies 7D Comics 1213D Crossword 6D Editorial 14D Financial 10-11D Good Health 6C Horoscope 9B Pub.

Rec 7B Tucson Today 7D Sports 1-5C TV-Radio 13D Want Ads 8-16C Reds Beaten, 7-2 Mets Take Arizona II Index 16A WASHINGTON (AP) Vice President Spiro T. Agnew resigned from office Wednesday and pleaded no contest to a charge of Federal income tax evasion. A judge sentenced him to a $10,000 fine and three years' probation. President Nixon, expressing "a sense of deep personal loss" over the stunning development, met with Democratic congressional leaders at the White House to discuss "procedural questions" on the selection of a successor. Sen.

Mike Mansfield of Montana, the Senate majority leader, and House Speaker Carl Albert of Oklahoma, who is the President's immediate successor in the absence of a vice president, left the White House without meeting newsmen. Within hours after his resignation, Agnew said on leaving a Randallstown, funeral home that he would make a public statement without a few days although he did not know exactly when or what format he would use. Agnew's resignation was part of an agreement struck by his attorneys with the Justice Department that allowed him to plead nolo contendere no contest to a 1967 tax fraud charge and have all other allegations facing him dropped. Atty. Gen.

Elliot Richardson, appearing with Agnew in the federal court in Baltimore, declared that the corruption investigation involving the Vice President had "established a pattern of substantial cash payments" to him by Maryland state contractors when he was Baltimore county executive.governor and as vice president. These payments continued from the early 1960s into 1971, and one engineer doing business with the state made payoffs up to and including last December, Richardson said. Although the Justice Department agreed to drop the charges of bribery, extortion and conspiracy that Agnew also faced, these were detailed in a 40-page document released through the court. Agnew, while not contesting the tax-evasion charge, denied all the others. The thunderbolt disclosure of the resignation, the second by a vice president in U.S.

history, was almostt casually revealed by a staff secretary here as Agnew himself was making a surprise appearance in the Baltimore court. Reading from a paper held in trembling hands, the 55-year-old Vice President told U.S. District Court Judge Walter E. Hoffman that his decision to quit and plead no contest to the felony charge "rests on my firm belief that the public interest requires swift disposition of the problems which are facing me." He said his lawyers had advised him that a legal battle over the allegations against him could last for years and the attending publicity would divert public attention from other problems, "to the country's detriment." Agnew's decision came unxpectedly after he had sought for the last several weeks to and widespread press speculation that he would quit. In Los Angeles, on Sept.

29, he told a Republican women's audience that he was inno cent of all charges, which he said were part of a frame-up. He declared then that he would not resign even if indicted by the federal grand jury investigating the political corruption can-dal in Maryland. Agnew admitted Wednesday to receiving payments in 1967 which were not reported on his income tax and also that he was aware of payments made to others. But he denied that any payments had ever influenced his execution of the public trust as Baltimore county executive, governor or as vice president. The actual charge against him contained in an information filed by the Justice Department, was that he failed to account for some $13,551.47 in federal taxes for the year 1967.

In that year, the information said, he reported income of $26,099 and taxes of $6,416 when in fact his income had been $55,599 and he owed $19,967.47 in taxes. The resignation was effective at 2:05 p.m. Wednesday, and it was about 20 minutes later when it first became publicly known. A staff secretary, Mrs. Lisa Brown, respondingto an Associated Press reporter's question about the Baltimore court appearance, said simply, "The Vice President has resignd.

The Agnew staff aides have just come from a meeting at which they were informed he has resigned As Agnew appeared in cout, a letter was delivered to Secretary of State Henry A. Kissinger, who under the law receives formal resignations of nationally elected officials. It read: "Dear Mr. Secretary: I hereby resign the office of vice president of the United States, effective immediately. Sincerely, Spiro T.

Agnew." Similar letters were dispatched to President Nixon and Democratic and Republican leaders of the House and Senate. The news of the resignation reached the House floor during a roll call and created five minutes of confusion. Speaker Albert walked quickly from the floor, declining comment to reporters. Within minutes, extra Capitol policemen and Secret Service agents were stationed outside Albert's office door. In his letter to Nixon, Agnew said, "As you are aware, the accusations against me cannot be resolved without a long, divisive and debilitating struggle in the Congress and in the courts." Saying that it was "painful" for himself and his family, Agnew told Nixon that, "It is in the best interest of the nation that I relinquish the vice presidency It has been a privilege to serve with you." Nixon, on receipt of Agnew's letter via his chief aide, Alexander M.

Haig immediately drafted a reply at his desk in the Oval Office, where Agnew had informed Nixon of his decision in a secret, 40-minute meeting Tuesday night. In his reply, addressed to "Dear Ted," Nixon said he was "deeply saddened by this (Continued On Page 7A, Col. 1) Spiro T. Agnew talks with newsmen outside the federal followed an earlier courthouse in Baltimore Wednesday after entering a no-con- Wirephoto) test plea to a federal tax-evasion charge. His court appearance announcement that he was resigning.

(AP 3 GOP Councilmen Deny Wrongdoing By JOHN RAWLINSON Star Political Writer Words For The Press Udall's charges involved Castillo and a fourth Republican councilman, R. Emmett McLoughlin, who is not up for re-election. Although the letter made no mention of Borozan or Myers, they decided to enter the controversy because they had "been'touched in one way or another by the JOBS Consortium," the release said. The three, councilmen said they are demanding to see a copy of the General Accounting Office report on the Consortium upon which Udall based his letter to Brennan. They say Udall's "bombshell" couldn't have been timed better.

The councilmen said that Castillo did sell insurance policies to the Consortium principals, but said that he only made about $900 in commissions rather than the $7,000 that Udall claimed he made. Borozan flew to Japan to promote tourism, they said, and his plane fare was paid for by a private business concern. The Star learned that the concern was Tucson Tours a business started by McLoughlin, former City Clerk William DeLong and current City Clerk Don DeMent. All three men were involved with the Consortium, although Udall's letter doesn't say that McLoughlin ever received any money from it, was a board member, ever had an automobile or used a credit card, as the others were accused of doing. Borozan was accompanied on the trip by Harrison Dickey, named as attorney for the Consortium, and Boye DeMent, the city clerk's brother.

The trip was financed by a $3,000 loan from a local bank. McLoughlin yesterday said that he had "invested about $500 in Tucson Tours and I lost every penny of it." The business no longer exists, he said. The GOP press release yesterday said that the trip cost Borozan $800 of his own money and said that "absolutely no funds for this trip were provided by the Consortium." The release said Borozan became involved because he was a potential stockholder of the private business group. The release said that Myers once represented a Consortium official on a legal matter and that the official wasn't a city employe at the time. It said that Myers also boards his two horses with the same official.

Mayor Lew Murphy at a press conference Friday said that Udall sent a copy of his letter (Continued on Page 10A, Col. 7) Israelis Cross Suez Canal In Hit-Run Raid Bv THE ASSOCIATED PRESS Israeli commandos crossed the Suez Canal early Thursday for the first time in the new Middle East war and made a hit-and-run attack on Egyptian convoys, the Israeli command said at dawn. The Israelis said the commandos returned safely across the 200-foot-wide canal after attacking "convoys and rear echelons of the enemy" in the canal's southern sector. Earlier in the night, Israel had reported "very little activity on both the Suez front and the Golan Heights." Premier Golda Meir said Wednesday that Israeli forces recaptured the Golan Heights and were pushing the Egyptian army back along the Suez Canal. She said the Soviet Union was pouring in arms to help the Arabs.

"Today I can say the heights are in our hands Mrs. Meir said. "The settlers, driven away by earlier bombardments, are returning to their settlements Our forces are standing very close to the canal and here, too, we are pushing back the enemy." In other developments: Israeli jets carried the air war into Syria for the second consecutive day. Iraq threw its troops and air force into the war Wednesday, and Jordan mobilized its reserves. Iraq reportedly has more than 200 warplanes, including Soviet-built MIG21s and long-range Soviet bombers.

The Beirut newspaper An Nahar reported that Iraq has committed 18,000 troops and 100 tanks along with an undisclosed amount of air power to back Syria on the Golan front and Egypt in the Sinai battle. Informed sources in Rabat said Morocco had sent 1,600 more soldiers to join Egyptian forces in the Sinai Desert, bringing to about the number of Moroccan troops sent into the battle. The Israeli military command claimed its jets inflicted "considerable damage" on the French-built Damascus airport and also blasted Syrian naval headquarters on the Mediterranean and other strategic targets in Syria and Egypt. The attack was the second reported on Syria's capital since the new round of hostilities erupted Saturday. CBS News, which Tuesday said that Israeli planes bombed the Sovieh Union's embassy in (Continued On Page 13A, Col.

7) Three Republican city councilmen denied yesterday that there is evidence of illegality in alleged local mishandling of federal manpower program funds. The councilmen, all up for re-election on Nov. 6, issued a press statement about the case yesterday that included an admission that one of the three, Michael Borozan, took a trip to Japan paid for by a private company in which he was going to invest. The trip was to promote tourism. The three Republicans decided to bare all in an attempt to end talk about charges leveled against them last week.

Besides Borozan, Ward 3, the other council-men who issued the statement were Ray Castillo, Ward 5, and Jerry Myers, Ward 6. They are running against Democrats Bob Cauthorn, Rudy Castro and Barbara Weymann. U.S. Rep. Morris K.

Udall, a Democrat, pointed out last week in a letter to Secretary of Labor Peter J. Brennan what he called misuse of federal funds in the Arizona JOBS Consortium manpower training program. Pennant top of the fifth on a run-scoring single by Tony Perez before the Mets began their spree. Cleon Jones clouted a run-scoring double off Don Gullett, then reliever Jack Billingham walked John Milner, loading the bases, before Clay Carroll went to the mound against Willie Mays, the Mets' sentimental favorite in his last season. Mays singled in Felix Millan with a high chopper, then Don Hahn's blooper and Bud Harrelson's single scored Milner and Mays and made It 6-2.

The Mets ended the scoring in the sixth when Wayne Garrett drove in Seaver with a sacrifice fly. (Story, Pictures on Page 1C.) By THE ASSOCIATED PRESS The New York Mets, who made the playoffs with a late-season charge from last place to first, staged a four-run fifth inning and won the National League pennant with a 7-2 victory over the Cincinnati Reds Wednesday. The Mets, who last went to the World Series in 1969, will face the winner of the American League playoffs between the world champion Oakland A's and Baltimore Orioles in the best-of-seven baseball series beginning Saturday. Tom Seaver, with last-Inning help from Tug McGraw, pitched seven-hit ball through 8'5 innings to the delight of a partisan Shea Stadium crowd In the decisive game of the best-of-five series. The Reds tied the score at 2-2 in the Ziegler Gives Report Ron Ziegler, the White House press secretary, briefs newsmen Wednesday on Vice President Agnew's decision to resign.

(AP Wirephoto).