The Des Moines Register from Des Moines, Iowa • 1

Where to Find It: m0m Comics 4-S Editorials 10 Markets 13 TV, Radio 6 Weather 4-S Women 9 THE WEATHER Mostly fair today and Sunday. High today around 60, low in upper 30s. Northerly winds. High Sunday in 50s. Sunrise sunset 6:16.

The Newspaper Iowa Depends Upon Des Moines, Iowa, Saturday Morning, October 27, 1973 Two Sections Cepyrlhl, 17), Dti Molnat BMijIW ind Tribun Company Price 10 Cents Ml BUS SERVICE SAYS MIDEAST I II .1. .1 SEEN ENDING DM. Firm's Land Sales Challenged By James O'Shea and Michael Wagner The federal Securities and Exchange Commission (SEC) PLANS A NEW 'INDEPENDENT PROSECUTOR' Tells of Strain Of Last Week yrvi lis-; -7W 4'- ON OCT. 31 MTA Head Tells of Union Impasse By John Hyde L.E. Slade, chairman of the Metropolitan Transit Authority (MTA), said Friday that all city bus service may stop on Wednesday, Oct.

31. Representatives of the MTA, the Iowa Regional Transit Corp. and the transit workers' union met Friday but were unable to resolve the complicated impasse which may cause the first interruption in city bus service since 1959. Problems Cited The MTA was supposed to take over operation of the bus system from the bus company on Oct. 31, partly with funds from a federal grant.

The grant has been held up, however, because the MTA has been unable to reach a labor agreement with the Amalgamated Transit Union, which represents the bus drivers. Last week Slade asked the Iowa Regional Transit Corp. to continue bus service on a no-subsidy basis while the labor agreement is negotiated. Friday, Edward Kelly, gener al counsel for the bus company, said it is highly doubtful the firm could continue to provide service on its own. The representatives of the transit workers' local said they would not sign a labor agreement without binding arbitration as part of the settlement.

"We saw what happened to thP firemen." said John Mr-rall nrpsident of the local bus drivers' union. "If we're eoine to be city employes, we're going to have binding arbitration to settle disputes, That's all there is to it." Observing the tion point ANOTHER in Sasa in PICTURE: A United Nation's cease-fire observer points out truce positions to another officer at an ohserva- DM. Police Study: High Crime Rate by Repeaters "jper-cent interest each year in his investment CRISIS WAS REAL, SERIOUS Will Send Observers If Requested WASHINGTON, D.C. (AP) -President Nixon, describing the Middle East crisis as the most serious of the decade, said Friday night it has now led to "a great step forward toward real peace between Israel and her Arab foes. Mr.

Nixon said that during the hours of crisis that led to a U.S. military alert, he messaged Soviet Leader Leonid Brezhnev to urge that great power forces stay out of the area. Cites Influence He said the United States and the Soviet Union then agreed to use their influence "to get the negotiating track moving" not only for a truce but for a permanent Middle East settlement. "We not only avoided a confrontation but we moved a great step forward toward real peace in the Middle East," Mr. Nixon said.

Mr. Nixon said the Thursday crisis was real and serious. "It was a real crisis," he said, "the most difficult crisis we've had since the Cuban confrontation of 1962." "This was no blown-up crisis," Mr. Nixon said of this week's heightened tensions. The President said the United States expects to send observers to participate in overseeing the cease-fire.

He said that ceasefire between Israel and the Arab states is holding. Mr. Nixon said his message to Brezhnev was firm "and left little to the imagination of how we would react" if the Soviet Union intervened unilaterally to enforce the cease-fire with troops. President Nixon said his long-term foreign policy was significant in defusing the crisis, with a U.N. resolution which sent to the Middle East a peacekeeping force without big power involvement.

"Without detente, we might have had a major confrontation in the Mideast," Mr. Nixon said. Now, with the immediate crisis past, Mr. Nixon said he believes that all parties will try to reach agreement with a more sober attitude. He said all 'nations involved know they can- not afford another war.

"The tragedy must not occur again," he said. "The cease-fire is holding," MIDEAST Please turn to Page Seven ARREST 10WAN IN STILL RAID By Jack Hovelson (Register Staff Writer) WAVERLY, IA. A Waverly man was arrested Friday night in what a U. S. Treasury agent described as "the biggest raid on a still in Iowa in 25 years." Arrested was Edward Valentine Ramsey, 50, of rural Waverly.

Treasury Agent Jack Owens of Cedar Rapids said that Ram- me sev was arrested at nis iarmi 1 three miles north of Waverly by officers from the Waterloo police department, the Bremer County sheriff's office and Ramsey. Owens said that more than 300 gallons of mash and a considerable quantity of corn whiskey was seized along with two 30-gallon capacity stills. He said that liquor produced at the farms was sold for $10 to $15 a eallon to private in dividuals and possibly some business firms. Ramsey was charged with possession of an unregistered still and manufacture of distilled spirits. He was released on his own recognizance pending an appearance today before a U.S.

commissioner in By Dcnise Caringer Seventeen of 39 adults arrested in Des Moines on felony charges during August should have been in prison for previous felony convictions at the time of their arrests, according to a Police Department study. The study of persons with a record of felonies was ordered by Police Chief Wendell Nichols in August after department statistics showed the Des Moines crime rate to be up 9 per cent. Recidivism Factor "We know that recidivism (repetition of crimes by an individual) is a definite factor in the crime rate," Nichols said. "The national average of recidivism shows us that 70 per cent of the people we arrest on felonies here will be back in our jail within two According to the study, 39 of 137 persons booked into City WIREPHOTO (AP) Cease fire southwest Syria, Friday. Pace 7.

people, because the majority of people on parole or probation do make it," Eadcs said. Eight Felonies The police study included sev eral case histories. According to one of them, a person was charged with eight felonies since 1963. Of these, three were dismissed, one has not yet come to trial, and three convictions have resulted in sentences totaling 27 years. This person served nine years and seven months in prison and was paroled.

While on parole, he committed a ielony, was found guilty of parole violation and returned to prison, where he served 18 months for both the parole violation and the last felony. "It makes us wonder about the practice of letting these people out of prison," Nichols said. Eadcs disagreed. "The police out on parole and don make it. rou cant isolate people in ichange.

There's no magic in orison time "There are about 10 per cent of the convicted persons who are the criminal type and have need to be locked away because they're the dangerous, violent type. In other cases, a person can come out and make a good adjustment if he has a job that's meaningful and important to him, if he develops social relationships, and if he has a decent place to live." has ordered public hearings to air charges that the Des Moines brokerage firm of Kirsch, Chandler, Feeney Co. Inc. violated federal securities laws while selling unregistered land contracts to Iowans. Named in staff charges filed by the SEC were the firm, located at 8450 Hickman Road; Arthur J.

Kirsch, president; Roderick W. Chandler, executive vice-president and 14 other officers and salesmen. Allege Illegal Sales The SEC alleges the firm and its salesmen sold land con tracts issued by an Arizona land developer, New Life Trust of Phoenix, Ariz without; registering the contracts with; the SEC, as is required by ted eral law. The SEC also alleges that the firm made false statements about the financial condition of New Life Trust and the value of unimproved desert lots allegedly securing the contracts, the staff complaint stated. Company President Kirsch was not available for comment, and a spokesman said he could i not be reached until early next week.

The decision to hold a hearing is the second SEC action taken against Kirsch, Chandler, Feeney and Co. Inc. this year. Earlier, a civil lawsuit accused the firm of fraud in connection with the same sales. The suit, which was filed in U.S.

District Court here, is still pending. The charges to be aired at the public hearing stem from the same SEC investigation that resulted in the lawsuit. The SEC probe centered on the sale of land contracts which promised to pay an investor 12 return for The contracts, which carried face values of $1,000 and more, allegedly were secured by unimproved desert lots, the SEC complaint says. Possible penalties against the firm and the individuals named in the complaint range from SEC censure to expulsion from the securities sales business, which is regulated by the SEC. $2.8 Million in Sales An estimated $2.8 million worth of the land contracts were sold to Iowans.

Other members of the firm named in the staff complaint were: Robert E. Feeney and Hugh Nocton, both of Dubuque; Michael J. Kroneberger, Fort Dodge; Francis P. and Earl Takes, both of Cedar Rapids; Jack R. Wilier and James M.

McBroom, both of Des Moines; Harvey L. Velgersdyk and George H. Halma, both of In-wood; Michael Phalen of Cedar Falls; Charles G. Sikmon of Monmouth, 111; John R. Patterson of Davenport; James L.

Blood of Davenport and Maurice L. Oehler of Prairie du Chien, Wis. No hearing date has been set. Clear to Partly Cloudy in DM. Skies were clear to partly cloudy in Des Moines Friday as a weak cold front pushed across; towa.

High temperatures ranged from 58 degrees at Mapleton to 72 at Des Moines, Iowa City and Burlington. INSIDE THE REGISTER Butz Denies 'Influence' BUTZ denies improper attempt to influence FTC for political purposes in California case Page 20 BLACK Congressman Louis Stokes discusses a shift in black militancv Page 2 By Clark Mollenhoff and George Anthan (Of The Register'! Washinotort Bureau) WASHINGTON, D.C. President Nixon, in a press conference marked by bitter criticism of the nation's communications media, Friday night a n- nounced that" i adminis- a i will name a new special Water- 1 gate prosecutor jT chibald Cox, Robert the man he B0RK fired last Saturday. Mr. Nixon pledged that the new prosecutor would have "independence and total co-oper-a i from the executive branch." But Mr.

Nixon said a new prosecutor would not receive any private presidential papers or tapes over and above those that are being turned over next week to Chief U.S. District Judge John Sirica. Question on Criticism Mr. Nixon answered several questions from reporters about how he has personally reacted to the virtually un- Text: Page 4 preccdented criticism to which he has been subjected since last weekend and to the calls for resignation and impeachment. He responded firmly that while some may have considered him "shell shocked the shocks will not affect me and I will do my job.

I have a quality," he continued, "the tougher it gets, the cooler I get." But he admitted, "It isn't pleasant to have your honesty questioned. The President moved to re establish the office of the special Watergate prosecutor following the urgent recommendations of House and Senate Republicans. Mr. Nixon announced this additional reversal of his position in the nationally televised press conference only a few hours after Judge Sirica had signed an order taking over the investigative files and records of Cox and his staff. House and Senate Republicans have been virtually unanimous in their demands that a new ipecial prosecutor, but Demo- aia uic vauh-u iv uumiu Pusnin in bo, hkouses foka SPeclal "cl be named by Sirica.

A bill in the Senate call ing for Sirica to take the step is sponsored by 53 members, two more than a majority. Mr. Nixon said, "I can assure you ladies and gentlemen, and all of our listeners tonight, that I have no greater interest than NIXON Please turn to Page Five leans said tne residents action 1 mW of congressional Democrats also accused the 1 01 "ciung u.e press during his news conference to divert attention from Water-I gate-related allegations against him. Senator Birch Bayh Ind.) chief sponsor of a resolution co-sponsored by 52 senators to establish an independent special prosecutor a i by the courts, called Mr.Nixon's plan "unbelievable." "This new prosecutor has no I charter of independence at all," REACTION Please turn to Page Sia; 1 Jail on felony charges in a different perspective, gust were adults who pre-( he said. "But it's a small per-viously had been charged withicentage of persons who come JAY TONE DIES AT 100 Jay E.

Tone, former president of Tone Brothers, a Des Moines firm widely known for production of soices and extracts, i df 5 Friday at IowaLvHvf Mpthndist pital after a long illness. HejT celebrated 100th birthday on Aug. 7. Mr. Tone lit erally grew up with the firm that bore his name.

He worked for the company 73 years and was its president more than 30 of those years. He retired in February, 1970, at the age of 96 and to that time was in his of fice most working days. The Tone firm was founded in Des Moines in 1873 by his father, I. E. Tone, and an uncle, Jehiel Tone.

Tone Brothers recently has merged with Mid-Continent Industries, of Des Moines. Mr. Tone's son, Jay Tone, jr. is president of Tone Brothers, a division of Mid-Continent, and a grandson, Jay Tone III, is executive vice-president. Mr.

Tone was a business and civic leader in Des Moines and was a genial, entertaining man both in private life and in business. He dropped out of old West High School here before his graduation, later explaining that he loved math and science courses but disliked reading and English. Despite that apparent handi- cap in nis educational uacK- i 11 1. ground he successfully enrolled in the prestigious Massachusetts Institute of Technology (MIT) by passing entrance examinations. He graduated from the school in 1897, with a degree in chem ical engineering and returned to Des Moines to enter the family business.

The firm then was dealing in coffee, tea and spices and Mr. Tone introduced extracts. Some Inventions Under his direction the company pioneered and developed the first circulating extract percolator, which was patented and was used widely in extract and pharmaceutical industries. Mr. Tone also was credited with developing the first meth od for packing coffee under pressure in tins.

Tone Brothers was the first to sell pure ground black pepper, instead of TONE- Please turn to Page Six 1 JAY TONE, SR. Consider the Suspension Of Rehozo WASHINGTON, D.C. (AP) -The government banking agency said Friday it will consider next week sus-pending Charles G. (Bebe) Rebozo a chairman and president of the Key Bis-c a Bank and Trust Co. in Florida.

Rebozo is a close friend of President Nix C. G. (BEBE) REBOZO on and a neighbor in Key Bis- cayne. The Federal Deposit Insurance Corp. (FDIC), a bank regulatory agency, indicated the suspension will be consid ered in connection with reports that the bank made a loan of $195,000 for which it accepted as security 900 shares of stock that later proved to be stolen.

"The corporation staff has been directed to make a thorough investigation of the facts relating to that particular loan and its repayment," the FDIC said in a statement. The FDIC also said it has been investigating since Oct. 17 the circumstances surrounding the naming of Franklin S. DeBoner as vice-president in charge of the bank's trust de partment. The Washington Post report ed Thursday that DeBoer was hired by Rebozo less than a year after he was charged by the Securities and Exchange Commission with appropriating money of a company for his own use and falsifying records.

Withdraw Ford KANSAS CITY, MO. (AP) -Senator Thomas F. Eagleton Mo.) called Friday for President Nixon to withdraw the nomination of Representa tive Gerald Ford Mich.) for vice-president. "In this day and age, the top two offices in our country cannot be occupied by anyone but the very best this country has to offer," Eagleton said. He cited Gov.

Nelson Rockefeller of New York as a good nominee with experience in foreign affairs and a knowledge of national problems. i Slade maintained nnt aeree to the arbitration bianco nnH would not ask tne five member cities of the MTA to renew the guaranteed-profit subsidy on which the bus company has operated since June 11. Sees Suicide "I feel it would be suicide for the MTA to go back and ask the communities to commit themselves to anything outside of what they are already committed to," Slade said. Slade said he is prepared to negotiate in good faith with the local and the international union, which has set the terms of the labor agreement, but said, "Negotiation doesn't mean capitulation." Kelly said the bus company might consider continuing operation after Oct. 31, if it is paid the $163,813.22 the company says the MTA owes it for bus service provided during June, July and August.

"We need the money," said Kelly. "There isn't any way of our borrowing any more money." Slade said the money could not be paid to the company because audits of company expense reports have not been completed, because the company and the City of Des TRANSIT Please turn to Page Six Clocks Go Back AnHourTonight Six months ago Iowans lost an hour of their lives by changing their clocks to daylight saving time. Sunday they will get that hour back. Daylight time makes an extra hour of daylight available in the evening by taking a daylight hour away from the morning. This will become apparent Sunday when it gets dark by 5:30 p.m.

instead of 6:30 as it does today. To cet vour clocks and-or watches back on standard time, move the hands BACK one hour before you go to bed tonight. Or, in the case of a striking Meanwnne, awue his dual Dositions that he would a total of 103 felonies. Of the 103 felony charges, 12 charges had been dismissed, seven had been re duced to lesser charges to ob- I tain a guilty plea from the persons charged, five cases had been continued and were pending when the August arrests occurred. In 14 cases the persons were on parole and in six cases the persons were on probation at the time of the arrests.

"I'm not ready yet to say that the leniency of the courts is the cause of the recidivism," Nichols said, "but there's in dication that some of the persons arrested should have been in jail in August and weren't. It's hard to say what differ- ah.ia iimitM maHp in thp ratg had those individuas Wn in nrUnn rather than run- been in prison ramer man run ning loose. Demos: Nixon Prosecutor Not Independent Enough Disputes Study was broadiy denounced' Don Eades, a parole agent! Friday night by Democratic for the Iowa State Bureau of Adult Corrections, disputed part of the study. "According to our statistics, 15 per cent of the convicts in Iowa return to prison either be- not use hjs powers t0 b)ock tne cause of violating parole id nr EdmUnd S. wAcnivnmM ap i presi(jent Nixon plan to name a new special Watergate prose congressmen, who charged there is no assurance the prose cutor will have a free hand.

"The people need to be assured that he (Mr. Nixon) will i Muskie Maine) "He did not give us that assurance tonight." Fared Better But Mr. Nixon fared better on his handling of the Middle East crisis this week, with no congressmen criticizing it in early comment. A number of Democrats as well as Republi- commission of a new crime, he said. "Nationally, that figure probably would be higher, but 70 per cent sounds way off to me." Eades said the repeaters of felonies "are a small per-centage of the total number on parole to us.

"Nichols is talking about a small group of hard-core clock, stop it for an hour. i.