Lincoln Journal Star from Lincoln, Nebraska • 1

Xmcolit Journal Weather Overcast Edition City See Col. 1 Lincoln, Friday, September 16, 1977 36 Pages 15t senators usin Eagleton: tactics on Lance ft, Lance seemed to be in complete control as the hearings opened Thursday. He said his "conscience is clear" in a 10-point refutation of charges of widespread illegalities and financial irregularities. Lance said the question of whether he had withheld information from the committee, when his nomination as budget director was before the panel last January, was the most serious of the issues raised against him. Lance insisted he had told the committee staff about his financial dealings, including the overdrafts, during his banking career.

Lance's assertion prompted Sen. Jacob Javits, to say he thought members of the committee should testify about their interviews last January with Lance. Lance appeared to have won the first round in the confrontation with members of the Senate Governmental Affairs Committee, who fell into dispute among themselves on parliamentary points. The hearing took on a distinctly political tone during questioning by Sen. Charles Perry, the chief Lance critic.

Percy was frequently interrupted by Sens. Lawton Chiles, and Sam Nunn, D-Ga. 'd it 1 It's harvest time in the orchards, celebrate at its Applejack Festival Weather: Page 22 Tonight: 30 rain chance. Saturday: 40 rain chance. Saturday's High 80 (27C) Low 60 06C) Because of fragile assumptions and questionable bookkeeping, President Carter's welfare package could cost billions more than indicated.

Page 3. Journal Editorial: No matter what he says, his appearance before a Senate committee may be Bert Lance's last stand, if President Carter is to end the corrosive effects of continuing controversy! Page 4. It appears doubtful that Lincoln will qualify for disaster relief. The city suffered some flood damage recently. Page 5.

C. 1 is it lift IB The Ostbergs load luggage for Alabama fans -arriving at Lincoln's Municipal Airport Tide mini-tour washes into town Percy focused on the issue of Lance pledging the same 14,800 shares of stock as collateral for two separate loans from two New York banks. "It's not collateral if they have a piece of paper that's not worth anything," Percy said, referring to Lance's note guaranteeing to forfeit the stock in case of default. Sen. Henry Jackson, told Lance he had only one question "How could an individual have so many overdrafts over such a period of time?" "A man in the street has deep concerns" over this one issue, Jackson said.

them at the party," Irene says, "because I'm afraid Alabama, may have us outnumbered in the game. But, you never know. Maybe, just maybe She was back in Nebraska. Her enthusiasm for the Cornhuskers was starting to show through. Kg 4, wW i And on Sunday The space age is coming of age.

Read what's happened in the 20 years since Sputnik went into orbit in The Sunday Journal and Star FOCUS. Small town post offices are an endangered species. Andy Montgomery reports from Washington in The Sunday Journal and Star on the Nebraska post office in the most danger. In this weekend's Sunday Journal and Star, the Changing Lifestyles feature Linda Ulrich's reports on cohabitation, or living together. When the rains come, where in Lincoln is the flood threat the greatest? Find out in Tom Cook's report in The Sunday Journal and Star.

From News Wires Washington Democratic Sen. Thomas Eagleton said Friday Bert Lance's reputation has been tarnished irrevocably by unfounded charges. "Some people will believe forever that Bert Lance is a tax-fraud cheater All we take with us to our grave is our reputation," Eagleton said during a second day of questioning of President Carter's budget director by the Senate Governmental Affairs Committee. As Eagleton accused some other committee members of using McCarthy tactics, Lance testified he "certainly" feels it was ethical to overdraw his Georgia bank account by large sums despite a federal law forbidding banks from loaning more than $5,000 to their own executives. And Lance told the committee the turmoil surrounding his private banking affairs have not damaged the operation of the Office of Management and Budget (OMB) he heads "our work is exactly on schedule." Eagleton said thousands of Americans will believe allegations against Lance even though there is evidence "they have no merit." He cited reports denied by Lance that Lance backdated checks for tax purposes and was involved in the Billy Lee Campbell embezzlement case at Lance's Calhoun, bank.

Under sharp questioning from Sen. William Roth, R-Del Lance said he was preoccupied with state and political business at the time of his bank overdrafts. But he said a federal investigation had cleared him of any wrongdoing. Roth sharply attacked Lance, who has refused to resign over allegations of poor personal business practices. "It reminds me a little bit of the person who goes through a red light when nobody was looking," Roth said.

"He says nobody was hurt, there was no accident, nobody was injured so it was all right." Lance was president of the First National Bank of Calhoun, when the overdrafts occurred. Both suggested Lance might have been trying to circumvent a federal law which prohibits banks from lending large sums to their own officials. "I am asking you the very simple question," Roth told Lance. "Do you think it reflects the high standard of ethics for a bank president to have permitted a policy of permitting overdrafts, originally at no interest, to officials of the bank when there was a law on the books that said loans in excess of $5,000 should not be made?" "Senator, certainly," said Lance. But he conceded it would "be better if those circumstances did not occur," referring to the fact that he was running for governor of Georgia and heading the state transportation department at the time.

Earlier testimony indicated Lance, members of his family and directors of the Calhoun bank overdrew their accounts by some $450,000 and that some of the money was used in his unsuccessful 1974 bid for the Georgia governorship. Eagleton, noting Lance's personal integrity and reputation are on the line, said some committee members too readily have accepted charges against President Carter's close adviser. "We are dealing with a man's reputation here," Eagleton said. "In the 1940s one official made a high art of finding guilt by association. Now it's guilt by accumulation." Eagleton, dropped as a vice presidential candidate in 1972 because of a prior history of treatment for mental disorders, said Lance's character had been Unlike the opening day, Friday's round of questions were not nationally televised.

Lance testified with little emotion but smiled often. bill includes would have "indexed" the minimum wage so that it would rise automatically with average production wages for an indefinite number of years in the future. "Adopting this index means we will be abandoning the fight against inflation," said Rep. John Erlenborn, whose amendment successfully knocked out the provision. Reps.

Paul Simon, and Robert Cornell, sponsored the sub-minimum amendment, which also drew support from Republicans. They said similar two-tiered scales have had no ill effects in Europe and should be tried here. Cornell said that, while he had "no pretenses that this will solve youth unemployment," it is "time to try another approach." However, a special wage category for Land Sky Garage Sale Waterbed savings up to 50 Sunday Sept. 18, 12-10 P.M. Land Sky Factory, Lincoln Industrial Park.

-Adv. Zorinsky hits 'polities' of move against Short and Nebraska City has reason to on Saturday. Page 13. Sen. Richard Lewis, chairman of the Legislature's Public Health and Welfare Committee, says the problems of the care provided by Nebraska nursing homes have scarcely been identified.

Page 5. With inflation nipping at their budgets, the Nebraska judges are expected to seek legislative action next year that would give them a pay raise. Page 11. Ann Landers 10 Lincoln 5,6, 1 1,12 Comics 24 Living 9,10 Crossword 24 National 2,3,8 Deaths 27 Nebraska 13-15 Dining 5,19,20,21 Record 26 Editorials 4 shopper index 10 Emergencies ....20 Sports 17-19 Entertainment 20 TV-Radio 26 Financial 22,23 Things to Do 20 Horoscope 24 want Ads 27-36 Legal 15 Subscription prices, addresses ..2 Zorinsky said. "I would rather take his word than Curtis'." Coincidentally, a new development shaped up which could force an early showdown over Curtis' efforts to block Short's appointment to the post now held by Republican Ron Romans.

Due in Washington Friday to be interviewed by Egan was Douglas County Deputy Attorney Edward Warin who is pending approval as the new U.S. attorney for Nebraska. Curtis has threatened to delay Warin's confirmation if Short is nominated. Warin's meeting with Egan is being interpreted as the final step in Justice's acceptance and clearance for the posi- SHORT continued page first six months on the job lost 211 to 210, with Speaker Thomas P. O'Neill Jr.

breaking the tie. The amendment would have tost on a tie anyway, but O'Neill's vote was symbolically important to labor. The House also turned down a proposal sought by the restaurant workers union to amend employers' right to pay workers who get tips only half the minimum wage. The House approved an amendment which would eliminate 3.8 million workers from minimum wage protection by raising the exemption for companies making $250,000 in sales a year to $500, 000. But business lobbyists were happy when the House rejected 223 to 193 a formula worked out between the AFL-CIO and the Carter administration, which Sundays Until Noon To report no paper or request a change in newspaper delivery service-Call Circ.

Dept. Ph. By Andy Montgomery Special to The Journal Washington Sen. Ed Zorinsky Friday maneuvered to force his senior colleague to put up or shut up on the prospective nomination of Democrat dive Short of Omaha as U.S. marshal for Nebraska.

He scheduled a late afternoon conference with Asst. Atty. Gen. Mike Egan to determine whether any adverse findings have turned up in a FBI background check which could reflect on Short's appointment as claimed by Republican Sen. Carl Curtis.

"I asked Mike Egan to look at the report to see if something is in it to confirm what Curtis has been saying," smorgasbord before heading back to Lincoln Friday night. "Our pre-game party will have about 80 in attendance," Ward reports. "There will be about 50 Nebraska friends join the 30 from Alabama." "We figure we'd better outnumber Bear Bryant the legend The Crimson Tide's coach is a legendary figure in American sports. Episodes in his colorful past appear in today's editions. Page 17 li HOT Bttlf AND KAW TO THE BEAR BETTER mm ALABAMA By Virgil Parker Sports Editor One group of Alabamans has come to Nebraska to see more than a football game.

They're friends of Ward and Irene Ostberg, natives of the Cornhusker State who left 26 years ago for the land of the Crimson Tide. "We're still loyal boosters of the Big Red," the Ostbergs say, leaving no doubt they mean Nebraska, even though 'Bama goes by the same nickname. The Ostbergs grew up in Custer County he in Broken Bow, she in Ansley. Ward, better known as "Swede" when he spent his young adult life working in Lincoln, wanted their southern friends to see and enjoy their native state. "We organized a mini-tour for them," Ward reports.

"We've been working on it for the past two years." Twenty Crimson Tide boosters arrived in Lincoln Thursday afternoon. They immediately were loaded aboard a large motor home and headed for the Hastings-Grand'Island area. "We're making our trip on the lesser-traveled state roads rather than the Interstate," Irene explained. "Alabama is basically a forest a land covered with pine trees. These people have never seen a large expanse of fields with no trees." Irrigated crops, a large cattle-feeding operation and huge grain storage bins are other sights the Alabamans will see for the first time.

The group will have "a fine Nebraska steak dinner at Dreisbach's (in Grand Island) Thursday night," Irene said before the group left the Lincoln airport, "then stay overnight in Grand Island." Friday they head for Stromsburg where Ward was born and thus picked up the nickname "Swede" for a typical teen-agers teen-agers would make no more sense than a category for blacks or women whose jobless rates are also high, said Rep. Ronald Dcllums, D-Calif. The House also voted to: Exempt full-time babysitters from the minimum wage. Retain the exemption from the minimum wage and overtime payment for amusement parks. Waive age restrictions to permit children under age 12 to pick strawberries between June 1 and Sept.

15. -Retain a minimum wage exemption for concessionaires in national parks and forests. TOLL FREE You can call the Journal-Star and place your Classified Advertising from anywhere in the State of Nebraska: House minimum wage From News Wires Washington By a margin of only one vote, the House has decided that teenagers, despite their high unemployment rate, should receive the same minimum wage as adults. That was the stormiest issue as the House, in eight hours of debate Thursday, brawled its way through and finally passed a bill raising the national minimum wage. The House is sending the Senate a bill to raise the minimum wage paid millions of American workers by an hour over, the next three years.

About 3.1 million persons work for the current $2.30 hourly minimum wage, which will go to $2.65 in January if the Senate agrees with the House's action. This would mean a $14 weekly raise for people working a 40-hour week. The raise to $3.05 by 1980 would be the most sizable since Congress passed the first minimum wage legislation decades ago. A similar bill already has been approved by a Senate committee. An amendment to guarantee youths only 85 of the minimum wage for their -I (1.