The Montgomery Advertiser from Montgomery, Alabama • 1

Weather Montgomery: Friday through Saturday partly cloudy and hot. High Friday and Saturday mid-90s. Low Friday night near 70. (Map, Details, Page 2.) 148th Year-No. 213 NEWS FLASHES uirecr r-rom Newsroom Of Advertiser-Journal By Telephone Dial 265-8246 Price 15c Montgomery, Ala.

Friday Morning, September 5, 1975 32 Pages A 1 1 end liners EA Fights Deadlock Broken By Compromise $40 Mill ion -t -rwv I my i iL --tni 1 -3 "I -ft 1 -n i 1 1 By MARCIA KUNSTEL Advertiser Staff Writer The Alabama Senate passed the death penalty bill Thursday night, but added a provision delaying its effective date for six months, a change which still must win House of Representatives approval. The 30-2 vote came when the upper chamber momentarily broke a five-hour filibuster on a bill to raise the cost of small loans, and was possible only due to the compromise delaying amendment proposed by one of two black senators who earlier had filibustered capital punishment. Birmingham Sens. U.W. Clemon and J.

Richmond Pearson, who had protested the constitutionality of the bill and contended the death penalty is applied dis-criminatorily to blacks, agreed to end their stall tac- Fund Switch By MARCIA KUNSTEL Advertiser Staff Writer The Alabama Education Association promised a hard battle in the State Senate Thursday after the Senate Finance Committee approved major budgets spending $40 million of education money on other state departments. "This brings us back to where we were three months ago," said AEA Executive Secretary Paul Hubbert. "We will resist the diversion effort in the Senate just as we did in the House." "I believe before the session is over several alternatives will emerge," he said. "I detect a lot of (Senate) opposition to diversion." Hubbert's comments came after the Finance Committee took the unusual actions of approving both the $190.8 million general fund budget and the $758.2 million education budget virtually as they were sent to the Senate by the House of Representatives. Both members of the committee and its chairman, Sen.

L.D. "Dick" Owen of Bay Minette, emphasized the move does not indicate total Senate agreement with the House appropriations bills. "I think there are many, many revisions that should AdvtnlKT Pkxu by (Uftr WtaimU Long Day in Senate, From Early Morn into Night Considers Congress Sinai uservers a or require separate foreign aid fclNYTIMFS surprise attacks. (Related tory, page 2) HOWARD R. HUGHES, the billionaire recluse, has been ordered by a New York State Supreme Court justice to appear personally in court or face the prospect of being declared leagally dead.

YITZHAK RABIN, prime minister of Israel, said in an interview that he believes the Soviet Union will continue to fill Egypt's arsenal despite the rift between Cairo and Moscow. PRESIDENT FORD declared at at a Republican rally in Seattle that he and the party should be "prepared to govern, but not to dominate the American people." NELSON A. ROCKEFELLER, vice president, has encountered strong opposition within the Ford administration in his drive to win the President's support for a proposed quasi-public corporation that would channel up to $100 billion in financing to projects aimed at making the United States independent of foreign energy sources. RICHARD M. NIXON, president, has agreed to turn over to Senate investigators tapes and documents relating to Chile and domestic intelligence gathering, White House counsel Philip Buchen said.

VALERY GISCARD d'ESTAING, president of France, announced a massive $6.93 billion economic recovery program to a save jobs and get the country moving out of the worst recession since World War II. FRANCISCO da COSTA GOMES, president of Portugal and a key figure in the growing confrontation over Communist influence in his country, will make an official visit to the Soviet Union later this month, informed sources said. BEN PALUMBO, Sen. Lloyd Bentsen's presidential campaign director, said he is dismissing several workers in a staff reduction but claims that financial problems were not responsible for the layoffs. MICKI McGEE SCOTT, wife of sports activist Jack Scott, and Martin Miller, who were granted immunity from prosection, refused again to answer questions before a federal grand jury investigating the Patty Hearst case, and the pair said they were "excused until futher notice." MICHAEL H.

MOSKOW, President for Ford's nominee to head the Council on Wage and Price Stability, told members of the Senate Banking Committee that he believes a phaseout of oil price controls would be much preferable to imme "This is a gamble for peace," parties forecast that the authorization to be put forth in WASHINGTON, President Ron Nessen, White House press president's request would be cming months. Ford and Secretary of State secretary, quoted the President approved. According to Nessen, the Henry A. Kissinger asked as having said. Nessen added Several of the 16 Democratic President said of the aid Congress Thursday to approve that the President had stated and Republican Senators and recluest that "wnen yu look at the stationing of Americans in that the use of Americans in Representatives who attended tne need for stability and ttie Sinai within weeks, stating Sinai was "a risk I'm willing to the meeting said that Kissinger Cost of anotner war.

th's is a that speedy action was take." had told them that quick good investment." necessary so an Israeli-Egyp- Some congressional leaders congressional approval had In an effort to win Pmp' tian accord could go into effect, have argued that the American 5een to Israel troop action, Kissinger went before i ne request was maaeaunng presence would only deepen withdrawals from advanced tne senate foreign Keiations a White House meeting with United States involvement in Committee wnere he was positions. congressional leaders before military operations in the area. Kissinger also disclosed some closely questioned about the the President left for the West Despite the open opposition to details of the financial aid Sinai agreement. Coast the plan by the Senate Majority package that the Ford On emerging 2-V2 hours later, The Americans would leader Mike Mansfield, D- administration would seek for Kissinger said "the American monitor the cease-fire between Mont a half-dozen or more two sides-about $3 billion people will know everything we the two sides to forestall congressional leaders of both for one year which would are committed to." be made," said Florence Sen. Ronnie Flippo "The fact that we report these bills out of committee should not be considered endorsement." One change the committee did make in the House-passed measures was deletion of an increase in the utility tax on industry, approved by the lower chamber to replenish some $20 million taken from the Special Education Trust Fund to finance general fund expensessuch as in the Highway and Mental Health departments.

Hubbert and the AEA had agreed not to protest the diversion if the $20 million were replaced by the tax change. The association also had agreed to taking another $20 million from the education fund to finance Par-tlow School for the mentally retarded, without replacing the money. Hubbert said the committee's elimination of the tax increase came as a surprise, that he had been told it also would be approved with the budgets. He suggested that some committee members were unaware that Opelika Sen. C.C.

"Bo" Torbert's amendments had the effect of removing the tax increase. Tor-bert had explained them only as technical amendments aimed at guaranteeing that any education fund money pledged to retire outstanding bonds would not be affected by diverting dollars from the education to the general fund. Failure to replace the $20 million through the tax change would not affect the education budget passed by the House, said State Budget Officer James V. "Jake" Jordan. Jordan said it means the $40 million of education money initially set aside in a reserve fund would be reduced to $20 million.

The committee's action came after Lt. Gov. Jere Beasley made an unusual appearance at the meeting to ask members to move on the budgets immediately, adding no amendments, so they may be considered by the full Senate next Thursday. "I had hoped for more time to consider these bills," Beasley said, noting the House only sent them across the rotunda in recent days. Beasley also responded to remarks made last week by Gov.

George C. Wallace, who charged a small number of senators are trying to underfund the Highway Department. The charges were interpreted as being aimed at Beasley, which aides to Wallace confirmed. "My opinion is the House of Representatives did not supply enough for the Highway Department," Beasley said. "There is no so-called conspiracy in this Senate to hurt the Highway Department or the administration budget." The committee's actions were seen as at least a short-term victory for the Wallace Administration, which initially proposed diverting education money to the general fund, because the tax revenues making up the latter have not grown as fast as state needs have increased.

While Wallace has said the education fund has more than enough to finance public school and university needs, educators have protested that bad school conditions require all available money. Contender tics if the six-month provision were added. Pearson proposed the change, which was adopted on unanimous voice vote. The compromise had been worked out earlier in the day and was informally submitted to Gov. George C.

Wallace, who agreed to the addition. Wallace has made a strong push for reinstitu-tion of the death penalty, as part of his recent emphasis on law and order legislation. Pearson made no further floor comment about the measure, but Clemon made a last stand of opposition, warning the bill still violates constitutional standards detailed by the U.S. Supreme Court, predicting the legislature's action will be futile. Clemon called capital punishment "an explosive political issue in the state one the public of Alabama unquestionably has demanded some action on." He admitted the lawmakers' response "probably is warranted in some respects," but reiterated his "unequivocal opposition, nevertheless." Russellville Sen.

Joe Fine, who voted for the bill despite his earlier charges that it is obviously unconstitutional, said after final passage that the two black lawmakers probably had assured no executions ever will take place under the provisions of this bill, since it likely will be declared unconstitutional before its effective date. The bill calls for the death penalty sentence for first degree murder, which is defined in the measure as offenses such as mass murder or a killing committed during the commission of another felony. It also, however, gives the trial judge the discretion to commute the death sentence, on a first degree murder conviction, and lets the district attorney and grand jury decide whether to charge the defendant under the death penalty statute. Clemon has said it is this discretion in application which raises constitutional questions. If the House fails to agree to the six-month delay in the effective date, a conference committee of House and Sen-ate members must be formed to attempt further compromise.

Also passed during the lull in the small loan filibuster was another compromise bill regarding the Alabama Commission on Higher Education. Sen. E.C. "Crum" Foshee of Red Level initially proposed totally abolishing ACHE, but a Senate committee substituted that with a measure replacing both ACHE and the Alabama Education Study Commission with a single advisory body. The compromise worked out by Foshee and Arab Sen.

Sid McDonald, an ACHE member who wishes to strengthen the body's authority, would enlarge the agency by adding four legislators as voting members and two more as advisors, to improve the present poor relations between ACHE and the lawmakers. It also would give ACHE authority to deny any expansion plans of an institution of higher but allow the institution to petition the legislature to overturn any adverse decisions. The bill still must be approved by the House. The small loan bill, which was filibustered by Anniston Sen. Donald Stewart, would raise by $1 a month the serv-ice fee which may be charged by loan companies on loans of $300 or less, according to House sponsor Rep.

obert Gafford of Birmingham. It was while Stewart and others were attempting to compromise away objections that the unrelated legislation was approved by the' Senate. No compromise was reached and Stewart continued filibustering until the Senate adjourned at 10:10 p.m. Out Drops EARL S. O'NEAL JR.

No- Tax Gambits Get Ax WASHINGTON (AP) Thv House Ways and Means Committee voted 24 to 10 Thursday to wipe out most real estate tax shelter devices some higher-income Americans use in paying little or no taxes. Congressional staff experts estimated this plan ultimately could boost the federal government's revenue by roughly $1 billion a year in the early 1980s, with an initial increase of about $250 million starting next year. Turning first to real estate investments, the committee's preliminary round of decisions involved assorted details and some alternative approaches suggested by members of the panel. Later, the committee planned to move into such other territory as farm operations, natural resources, movies and sports team player contracts. The action came after the staff experts supplied the panel, and made public, detailed information on tax-shelter operations including actual cases from Internal Revenue Service files illustrating the types of activity.

By LINDA PARHAM Advertiser Staff Writer Earl S. O'Neal candidate for a District 1 council seat who was to meet Willie D. Peak Jr. in a run-off election Sept. 16, withdrew from the race Thursday.

In removing his name, O'Neal told Montgomery County Probate Judge Walker Hobbie Jr. that he "conceded the election for the office of City Council District 1" to Peak. The announcement of O'Neal's withdrawal came in a written statement to the press. The Advertiser was unable to contact O'Neal for additional comment. The statement said O'Neal, who drew 381 votes in the Tuesday city election, dropped out "in the interest of saving the people of Montgomery the several thousands of dollars it would cost to conduct the run-off election in District 1." "I wish to congratulate Mr.

Peak on his successful campaign and to especially thank and express my deep appreciation for the many wonderful friends and supporters who worked on behalf of my election," O'Neal said. O'Neal added that he thinks District 1 "will be properly represented" by Peak and urged district residents to support Peak "in helping move the City of Montgomery -forward." In the District 1 race where 5,235 voters cast ballots, O'Neal received 381 votes and Peak gathered 1,583. N.J. Bell, acting city clerk, said it is his best judgment that O'Neal's action will give the seat to Peak. "I'm practically sure it's over in that race," said Bell.

With ballots not yet printed for the Sept. 16 Bell said he did not know if O'Neal's name would be removed or whether a District 1 run-off ballot would be printed. 77m 4f 1 4 I Inside Today Page ....22 2 Page Amusements 22,23 TV Log Bridge 23 Weather Classified 26-31 diate decontrol. QUEEN ELIZABETH II opened the 62nd conference of the Interparliamentary Union in London's Westminster Hall after driving past anti-Palestine demonstrators to reach the centuries-old building. EARL J.

SILBERT, assistant U.S. attorney, has been submitted for the third time as President Ford's nominee as the United States Attorney for the District of Map Comics 25 Emergency Hospital Crossword 23 ST. MARGARET'S Editorial 4 From 7 a.m. Friday Markets 12 To 7 a.m. Saturday Second Front 9 Sports 17-20, 25 HELP-A-CRISIS Today's Living 10-11 265-9576 WILUE D.

PEAK JR. Growi Southern Move Wi(t fpl Alabama, Kentucky, North. Alabama Gov. George Wal- his press secretary, Billy Joe I At least eight Southern states Camp. But Camp said it may be I have scheduled primaries be- Carolina, and Mississippi said lace supports a regional pn- they either support the concept mary as a method of trimming impossible for Alabama to join tween May 1 and June 1, many or are receptive to turiner ais- tne cost ot sucn elections, says a regional primary in 1976 of them set by legislatures.

because the Alabama election Tennessee's May 6 election will date-May 4-would have to be fall in the same week with Ala- changed by the legislature. bama's. Georgia's election date will Alabama Lt. Gov. Jere Beas- ATLANTA, Ga.

(AP)-Some. of the South's top legislative leaders say they are interested in a regional primary for states of the Old Confederacy to bring Dixie's political weight to bear in nominating a president. An Associated Press survey in 10 Southern states found interest in most, strong support in some and a lack of interest only in Virginia. Leaders from 14 Southern states have been invited to meet in Atlanta Sept. 10-11 to! consider a common day for their primaries.

Georgia Gov. George Busbee says he has "high expectations" that a regional primary will result. The organizer of the meeting, Georgia House Speaker Tom Murphy, says there may not be time to organize more than a three or four state regional primary for 1976, and the survey confirmed that analysis. But for 1930, Murphy says, "nothing would make me happier than to have an 8-, 9-or 10-state primary." Legislators in Tennessee, cussion. Florida officials, whose March 9 primary is one of the earliest and most important elections in the nation, said they have no strong feelings about the idea.

Florida Gov. Reubin Askew sees no problem for a regional primary, his press secretary said, "if all the other states, want to change to March 9." ifaus? to Prag Thank You, dear Lord, for awakening me this morning, and filling my soul with eagerness to meet my day creatively and enthusiastically. Amen. "This morning's paper had some pretty bright news in it. No, it wasn't anybody's' prediction, it was that over 100 thousand men had just been put to work.

"That's not 5. million, but it's a start." January 8, ley, who won approval of a res- officials during a meeting on olution supporting regional pn- Sept 18 Busbee elec. rnaries during the National tion can arranged to coin-Lieutenant Governors Confer- cide with either Aiabarna.s ence recently said he would election or Tennessee-S prefer to see Congress take the Or, he said, a common date lead in setting regional pri- could be picked by those three maries. or even more states for 1976. 1 'i.