Arizona Republic from Phoenix, Arizona on July 8, 1976 · Page 3
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July 8, 1976

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Arizona Republic from Phoenix, Arizona · Page 3

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Phoenix, Arizona
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Thursday, July 8, 1976
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Page 3
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Phoenix weather Mostly sunnv but possible late afternoon ' and nighttime thunderstorms. High near 109. low 8:i-R7. Wednesday's high 111. low SKI. Humidity: High 23. low 10. Details, Page C-fl. 87th Year. Mo. 53 THE ARIZONA REPUBLIC circulation 271-8381 classified 27i-9.li other 271-8000 Phoenix, Arizona, Thursday, July 8, 1976 < F o" r Scctions ' 76 Pages) ° CI U.S. estimate on 76 deficit falls $9 billion Assoei.ited Press WASHlNGTON-The federal budget deficit for fiscal 1976 could be $9 billion less than estimated three months ago, largely because the administration overestimated expenditures, government officials said Wednesday. 'one benefit of the reduced deficit in the year that ended June 30 may have been "a modest contribution" to lower interest rates, a Treasury Department off.cial said. Preliminary budget figures for fiscal 1970 won't be ready for another week but 1 re " • b one official said the deficit could be as 1 ~ ~~ ~~ low as $68 billion, compared with the $70.9 billion estimated by the Office of Management and Budget in March. "We're very much surprised at how low the figures arc coming in." said Dale R. McOmber, assistant OMB director for budget review. McOmber said the discrepancies between the deficit and the administration's estimates may have resulted in part from the considerable attention to government spending in the past year. "We can only speculate that the sheer emphasis on the budget totals and the amounts in the budget tended to cause people to overestimate spending, or the timing of spending," McOmber said. "All of us have clearly overestimated cash outlays in a rather widespread fashion." He said the differences were by no means concentrated in a few agencies or departments. During debate on the 1976 budget, OMB Director James Lynn and Treasury Secretary William Simon warned that the deficit could approach $100 billion if Congress weren't careful. Some congressional critics accused them al the time of using scare tactics to keep spending down. Simon's prediction that deficit- prompted government borrowing would increase interest rates and "crowd out" private borrowers from financial markets also failed to materialize. Edward P. Snyder, Treasury adviser for debt research, said the lower deficit "probably contributed to a very modest degree" to lower interest rates, since the governments had to borrow less. The OMB first revealed several weeks ago that it was revising its deficit projections downward, when Deputy Director Paul O'Neill told a congressional committee the 1976 deficit could be around $72 billion. McOmber now says the deficit could be Continued on Page A-12 rian shells ivreck leftists'* fuel refinery Associated Press BEIRUT — Syrian artillery pounded Palestinian guerrillas and Lebanese leftist Moslems on two fronts Wednesday, supporting a Christian advance in the north and cutting fuel supplies in the south. The Palestinian guerrilla command said Syrian artillery blasted leftist forces "on the northern edge of the Christian enclave 4(1 miles north of Beirut, where Christians claimed advances across a broad front. A Swedish journalist said Syrians shelled a refinery near Sidon in southern Lebanon, starting a fire. He said the artillery barrage began Tuesday night, apparently to drive away tankers approaching to unload fuel. The refinery is not operating, but has 20.000 tons of gasoline in reserve. The tanks are one of the last sources of fuel for the leftists. -The reporter said the refinery appeared damaged Wednesday morning after the shelling stopped, but it was not 'known whether fuel stocks had been destroyed. The refinery shelling sent gasoline prices in Beirut soaring to $5 a gallon, when it could be found at all. Raymond Edde. a Christian politician allied with the leftists, urged that an American tanker be hired to transport fuel to Beirut. He said Syrians would not have the courage to fire on a ship flying an American flag. The Palestine Liberation Organization charged that Syrian forces attacked Palestinian refugee camps in northern Lebanon at dawn, "causing heavy losses among civilians." PLO leader Yasser Arafat ordered the headquarters of his Palestine Liberation Army shifted from Damascus to Beirut. Observers saw the move as an attempt to free his army from Syrian influence. The PLO asked the International Red Cross in Geneva to pressure Syria to halt the fighting and protect the lives of Palestinian captives it holds. One report said that hundreds of Palestinians captured in Lebanon were Imprisoned in Syria. In the north, a western reporter said Christians retook Chekka, a strategic town on a bay at the edge of the Christian enclave. He said he saw Christian fighters moving north in new armored cars and jeeps returning from the front lines. They were dragging the bodies of Palestinian guerrillas through the villages. President Ford and Queen Elizabeth II enjoy a toast after a state dinner at the White House. 'One of our truest allies' Ford greets queen at White House Associated Press WASHINGTON — Queen Elizabeth II of Great Britain made a pilgrimage of friendship to the White House Wednesday and spoke to thousands who, but for the American Revolution, might have been her subjects. She said that the Declaration of Independence severed British control over the United States but "did not for long break our friendship." The queen spoke at welcoming cera- monies at the White House, where thousands of invited guests had gathered on the south lawn. In turn, President Ford said that Britain "is one of our truests allies and best friends." Later, the White House issued a statement saying that Americans were grateful for Britain's many generous gifts and contributions for the Bicentennial, "in particular Her Majesty's gesture in coming to the United States." After lunch at the White House, the queen and Prince Philip went to Arlington National Cemetery where they laid a wreath of red roses at the Tomb of the Unknown Soldier. The cemetery is the burial place for thousands of Americans who fought alongside British soldiers in past wars. The queen and her party flew here from Philadelphia, arriving at Andrews Air Force Base in nearby Maryland. As the limousines left the base, a police car chasing a suspected bank robber sped through the gates in the opposite direction, according to Thomas Rogers, a cab driver who said he witnessed the incident. Spokesman Doug Hill of the Prince George's County, Md., police department, said the sirens and squealing wheels were a surprise to the security around the motorcade, but "the queen was never interrupted and went on her way unharmed." A suspect was arrested hours later. The queen and Prince Philip toured the Lincoln Memorial during the afternoon, greeting visitors and accepting several small gifts from them. In the evening, they were guests of honor at an elegant dinner held in the White House Rose Garden beneath a white canopy. Rain delayed its start by nearly an hour. In her toast, the queen again emphasized the close ties between Britain and the United States. "Both our peoples believe in the world Continued on Page A-21 Today's chuckle A lot of good arguments arc spoiled by some fool who knows what he's talking aboul. g 15 cents 56 arrested in drug sales; probe still on By APRIL DAIEN Fifty-six persons — most of them described by police as drug dealers — were arrested Wednesday in what law enforcement officials claim was the biggest "roundup" in the history of Maricopa County. The arrests, which began about 1 p.m. Wednesday, were the result of a cooperative effort among police agencies throughout the Valley. Nearly all Ihose arrested were charged with the sale of narcotic drugs — primarily heroin — according to Phoenix Police Capt. Ben Click. Department of Public Safety Capt. Don Procunier said most of the 56 were arrested for trying to sell heroin to undercover agents of the Department of Public Safety and Phoenix Police Department. At a joint press conference Wednesday night, Click and Procunier said the investigation is continuing but would not say how many others will be arrested. The Arizona Republic has learned, however, that 99 arrest warrants were issued. Most of the arrests were made as a result of indictments handed down by the Maricopa County grand jury, the officers said. The arrests stemmed from drug sales or attempted drug sales made over the past several months to between 15 and 20 undercover agents, Click said at the press conference. The majority of those arrested allegedly deal in ounces of heroine which they sold to users. But he added that a few possibly were one step higher in the drug business, selling to small dealers. Click said law enforcement officials believe the arrests will have a major impact on heroine traffic in the Phoenix metropolitan area "for a short time." But, he noted, heroine is as available today as marijuana was 10 years-ago. He estimated that there are at least 8,000 heroine users in the Phoenix metropolitan area. The arrests were in Phoenix and Glendale, the officers said. Although the sales were made to DPS agents and the Phoenix Police Department, other agencies provided information or helped in the arrests, including the Glendale Police Department, the Maricopa County Sheriff's Department, and the Federal Drug Enforcement Administration. Click said nearly all the suspects have been arrested before on felony charges ranging from rape to property crimes Continued on Page A-4 Contractor says he delivered $5,000 to Adamson after bombin , , J.L. i_i.u.. rv,-i n « „„,! AHoivicnn tnnk thp Police said Ihev found that I By JOHN A. WINTERS and JACK WEST Phoenix contractor Max Dunlap delivered between $5,000 and $6,000 to John Harvey Adamson, who is accused of murdering Arizona Republic reporter Don Bolles, eight days after the fatal bombing, police said Dunlap told them. Dunlap told police the money was brought in a sack to his home at 915 E. Bethany Home Road June 10 by a man he didn't know, said homicide detective Jon Sellers. He said Dunlap told police he delivered the money to Adamson al the law office of Tom C. Foster in the First Federal Building at 3003 N. Central. Dunlap said the man told him attorney Neal Roberts had instructed that the money be taken to Adamson at Foster's office, police said. Sellers said Dunlap, who has been questioned by police several times in connection with Bolles' slaying, last Thursday gave police the following account of the events of June 10: As Dunlap was leaving his home he was met in the driveway by a white man who handed him a sack containing cash and a business card bearing the name of Tom C. Foster. The man told him that Roberts had instructed that the money be delivered to Adamson at Foster's law office. The man said Roberts had told him Roberts couldn't get near Foster's office and Report by special auditor 'Chaos' iound in Navajo agency books By BILL DONOVAN WINDOW ROCK — Despite large fees to consultants and outside auditors, financial procedures at the Office of Navajo Economic Opportunity (ONEO) are "chaotic" and "getting worse," according to a special auditor for the Navajo Tribe. Ira Osmari, a former state auditor general hired by the tribe several weeks ago to examine its enterprises and departments, said one of the major reasons for ONEO's problems is that its board of directors includes no one with a strong financial background. "This is a critidal weakness for an organization which is res|X>nsible for, ;and must account for, more than $10 million a year in funds received and .disbursed," he said. ONEO should have an executive offi- c e r with extensive financial a n d administrative experience, Osman said. The executive officer should have the power to hire other proven executives, he added. "ONEO's history for the past several years demonstrates that the principal officers have not had such ability, experience and leadership," he said. Osman singled out the ONEO controller's office as one of the main sources of financial chaos. ONEO has had four controllers in the past two years, three of them in the past year. Osman said the controller's department is in shambles. He said that despite two management studies pointing out problems in the department, "little or nothing has been done to remedy the flaws and defects." He recommended that ONEO hire a competent, stable, dedicated controller as soon as possible. Because of its controller problems, ONEO has paid excessively for accounting and auditing, Osman said. Since September 1973, ONEO has paid outside auditors $227,067 to go over its financial records. "Although the audit fees have been very substantial, the records of ONEO have been so inadequate that the auditors could not issue an unqualified opinion on the financial records," Osman said. He also said that in talking to personnel at ONEO headquarters, he has gotten the impression that morale among employes is low. "Employes feel that there is little positive direction for management and that management is unresponsive to problems in the organization," he said. "While these employe expressions are not necessarily objective, they do indicate problems which can become much more serious." In his audit review, Osman said, he discovered a $50,000 discrepancy in the books of the Shiprock Day Care Center, which is operated by ONEO. According to Osman, $50,000 was withdrawn from the day care center's bank account in April 1974, and deposited in a Continued on Page A-4 therefore had to arrange to get the money to Adamson some other way. The man told him to change the large bills into smaller denominations and deliver the money to Adamson before 3 p.m., Dunlap said. The contractor said he looked in the bag to find approximately $3,500 in hundred dollar bills and an additional $1,500 to $2,500 in bills of other denominations. Dunlap went to a drugstore and bought an envelope, then went to a First National Bank branch and changed most of the hundred dollar bills into tens and twenties. He proceeded to the First Federal Building, where he met Adamson in the inside ISRAELI RAID - Rescue of air-hijacking hostages is reconstructed from diplomatic and other sources' accounts. Page A-2. RADIATION CUT - The Soviets have reduced the intensity of microwave radiation beamed at the U.S. Embassy in Moscow. Page A-16. CARTER CAMPAIGN - Aides move Jimmy Carter's command post to a plush New York hotel to prepare for the Democratic convention. Page A-20. lobby. Dunlap and Adamson took the elevator to the 14th floor, where Foster had his office. They went into a room in the office and closed the door, after which Dunlap delivered the cash ( to Adamson. Dunlap said he and Adamson stayed in the room about 10 minutes, then left. Further details of the story Dunlap told police could not be learned Wednesday. Police said Dunlap also told them that Kemper Marley Sr., another person questioned in the Bolles' case and a financial backer of one of Dunlap's Colorado River resort developments, gave Dunlap $5,000 last month to repair broken machinery. Police said they found that Dunlap deposited $5,000 in an account June 9. Marley confirmed Tuesday that he gave the $5,000 to Dunlap, Sellers said. Dunlap declined to talk with reporters who visited his home Wednesday night. Police said they were aware that Dunlap was at home and would try to contact him today. Roberts declined to comment when questioned by a Republic reporter about his role in the alleged payoff to Adamson. Marley and Dunlap failed to respond to reporters' phone calls. Foster told The Republic he knew Continued on Page A-18 Adamson with him as bomb exploded, Roberts indicates Page Astrology D-15 Bridge B-14 Classified C-10-21 Comics D-1.5 Crossword C-9 Dear Abby C-8 Editorials A-6 Financial D-9-11 Page Lighter Side B-13 Movies D-13 Obituaries C-10 Radio Log D-14 Sports D-l-8 TV Log D-14 Weather C-9 Women C-l-8 Today's prayer Lord, You come to us and give us strength. You listen to our prayers of thanksgiving. You restore our faith and hope. We thank You for your constant caring. Amen. By CHARLES KELLY Attorney Neal Roberts has told police that John Harvey Adamson, charged with murder in the bomb killing ot Arizona Republic reporter Don Bolles, "probably" didn't leave Roberts' office until six minutes after the blast that shattered Bolles' car at 11:34 a.m. June 2. Testimony that Roberts made that statement was given Wednesday at a Maricopa County Superior Court bond hearing for Adamson, 32. The timing alluded to Wednesday conflicts with Roberts' earlier statement to a reporter that the accused killer lelt his office 16 to 18 minutes before the blast, which in turn conflicts with statements by others questioned in the murder investigation. Judge Roger Strand denied bail for Adamson after Wednesday's hearing. Adamson is scheduled to go on trial Sept. 2. Sources close to Adamson's defense counsel had indicated that the defense and JACK SWANSON sought to question Roberts and Robert Lettiere, a greyhound-raising partner of Adamson, to clear up the issue of where Adamson was around the time of the bombing. Lettiere was not called as a witness at the bond hearing, however, and Roberts took the Fifth Amendment 13 times in. response to questions from defense attorney Greg Martin. Attorney Michael Kimerer, appearing for Roberts, told the court that he had advised his client to invoke his right against self-incrimination because Strand had not extended a grant of immunity for Roberts to the bond hearing testimony. Roberts has been allowed immunity from prosecution in the Bolles death case for actions he took after the bombing unless it is shown he has lied to investigators or took part in the planning or carrying out of the murder. Continued on Page A-18 \

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