The Daily Journal from Fergus Falls, Minnesota on August 2, 1974 · Page 1
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The Daily Journal from Fergus Falls, Minnesota · Page 1

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Friday, August 2, 1974
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'DailyJournal lOlstYEAR 181 FERGUS FALLS, MINNESOTA 56537 FRIDAY, AUGUST 2, 1974 SINGLE COPY lOc S::::::::::::::^^^^ Umbrella weather envelops area Farmers breathed a collective sigh of relief this morning when they checked their rain gauges. A wide belt of rain dropped anywhere from .68 of an inch in Wheaton to slightly more than three inches in Pelican Rapids. Fergus Falls received two inches; Rothsay recorded .84; Underwood got just under two inches; Battle Lake got 1.8; Ashby 1.5 and Parkers Prairie had a bit over two inches at 8 this morning with a steady rain still coming down. There were no reports of high winds, and little hail. Barnesville reported minor hail damage. Otter Tail County Extension Agent Ken Rose said the moisture came just at the right time for row crops. Combining will be delayed a bit, he said, "butnobody's complaining." The last significant rainfall in the area occurred July 13 when Fergus Falls recorded one inch of precipation. The least amount of rainfall on record in July in Fergus Falls occurred in 1936 when a scant .05 of an inch fell. The greatest amount was recorded in 1949 when the town was deluged with 9.42 inches. The average over the years is slightly more than three inches. ?#m3&&:&#^^ Small jobless increase noted Miner strike outlook now appears dim PEBBLE LAKE ANTICS — A whole panel of Welches Invaded Pebble Lake yesterday, taking advantage of mild, sunny weather before the rains came last night. Shelle, 5, (above right) a daughter of Mr. and Mrs. David Welch, Fergus Falls Route 5, led the way on a log followed by her cousin, Tammy, 5Vi, a daughter of Mr. and Mrs. Gerald Welch, Fergus Falls. Three other Welches performed another brand of acrobatics in the water. Tom, 15, (bottom) and his brother Pat, 12, (top) sons of Mr. and Mrs. Frank Welch, Fergus Falls Route 5, balance on top of one another with Mike Welch, 13, a son of Mr. and Mrs. Gerald Welch, sandwiched in between. (Journal pholos by Bill WASHINGTON (AP) — The nation's unemployment rate showed little change from June to July, rising slightly from 5.2 to 5.3 per cent, the government reported today. Unemployment has hovered between 5 per cent and 5.2 per cent since the beginning of the year. July's increase was not considered significant by the Labor Department. The. relative stability in the employment situation was good news for the Nixon adminis- tration'which had predicted increases in the jobless situation this summer. The administration's chief economic coordinator, Kenneth Rush, told Congress Monday that President Nixon's policies of economic restraint and budget cuts were likely to cause the unemployment rate to move up to between 5.5 per cent and 6 per cent by the year's end. Some private economists, among them Walter Heller, are predicting higher rates. Heller, chairman of the Council of Economic Advisers under President's Kennedy and Johnson, predicted in testimony before Congress Thursday an unemployment rate of about seven per cent by next year. In its report today, the Labor Department said the number of Americans unable to find jobs last month rose from a seasonally adjusted 4.8 million to 4.9 million. Total employment was listed as 86.3 million in July. essentially unchanged since June but up by about 500,000 since April following a six- month period of virtually no growth. The size of the civilian labor force rose by 250,000 in July to an adjusted 95.2 million, the third consecutive monthly gain following a lull in the previous three months. The recent increases were accounted for largely by women, the government said. Since April, the number of adult women 'in' the labor, force has increased by 800,000, while the. adult male labor force rose by 140,000 and that of teenagers declined. Stability in the unemployment situation last month was reflected in the jobless rates reported for most of the major categories: married men, 2.6 per cent; household heads, 3 per cent; white workers, 4.8 per cent; adult men, 3.5 per cent; adult women, 5.2 per cent; and teen-agers, 16.2 per cent. These rates were the same or nearly the same as in June, the government said. The jobless rate for blacks, at 9.4 per cent last month, also held steady. However, the rate for black teen-agers rose from 30.3 to 35.3 per cent. Average hourly earnings of factory workers were reported up by one cent in July to ?4.19— 29 cents above a year ago. Weekly earnings averaged Continued on page 14 DUI.UTH, Minn. [AP) Northern Minnesota's giant iron ore mining and processing operations wound down Thursday in the wake of a strike launched by the United Steelworkers of America (USW) against six Iron Range companies. Industry sources said the total inventory of iron ore and taconite in U.S. and Canadian blast furnace yards is estimated capable of meeting industry needs for not more than three or four months. The 10,330 strikers include about 1,000 employes of iron mines and processing plants in Michigan and Missouri. Prospects for a quick settlement appear dim today since no further negotiations are scheduled. Union and management spokesman said Thursday there are no plans at this stage to seek federal mediation assistance. Industry spokesmen said a prolonged strike could pose many problems for some steel mills dependent on the Minnesota ore. They noted the inventory of iron ore and taconite in U.S. and Canadian stockpiles at the end of May was 29.2 million gross tons. They termed that the lowest level for that date in the last 15 years, comparing it with a high of 44.7 million tons on that date in 1964 and an average of 35.8 million tons for the months of 1973. They said that total inventory is estimated capable of meeting industry needs for not more than three or four months. The strike began at midnight Wednesday following a breakdown of negotiations on a new contract. It brought picketing and orderly shutdowns of Reserve Mining Co., Erie Mining Co., Eveleth Taconite Co., Cleveland Cliffs Iron Co., Hanna Mining Co., and National Iron Co. Hanna also operates the Michigan mines and the Missouri plant involved. National is based in Duluth. Reserve, which by itself produces 15 per cent of the nation's iron ore supplies, might have a head start in looking for alternate ore supplies. The firm is the subject of an environmental lawsuit which seeks to halt its dumping of some 67,000 tons of taconite waste daily into Lake Superior, a discharge U.S. District Judge Miles Lord has ruled a substantial health menace. Republic Steel Corp., one of the parent firms of Reserve, said it receives about 55 per cent of its ore from Reserve and some normally is supplied by the Cleveland Cliffs plant near Dean gets sentence of 1 to 4 years in prison WASHINGTON (AP)-Former White House counsel John W. Dean III was sentenced today to one to four years in prison for his role in the Watergate cover-up. Dean, the principal witness against President Nixon in the cover-up, pleaded guilty eight months ago to conspiracy to obstruct justice. U.S. District Judge John J. Sirica gave Dean until Sept. 3 to put his affairs in order. Sirica said he would recommend that Dean serve his sentence in the minimum security prison at Lompoc, Calif. Sirica handed down the sentence after denying a request from Dean's attorney that the sentencing be delayed. Dean's attorney said a new batch of White House tapes being handed over to Sirica under a Supreme Court order issued last month contain evidence which might suggest a light sentence for Dean. The charge to which Dean pleaded guilty last October carries a maximum penalty of five years in prison and a $10,000 fine. Sirica said he was giving Dean a month before beginning House expected to start impeachment proceedings August 19, details remain his sentence in part because of the illness of Dean's mother-in- law. Dean's wife, Maureen, was not present for the sentencing. Standing before Sirica, Dean said, "I realize the wrongs I've done...but to say I'm sorry is really not enough." Dean pleaded guilty Oct. 19, 1973, to joining a conspiracy designed to limit the original Watergate investigation and keep it away from the door of the White House. Dean has been cooperating with the special Watergate prosecutor's office since shortly before he was fired by President Nixon April 30, 1973. The 35-year-old lawyer had sought complete immunity but the prosecutors insisted that he plead guilty to one count of conspiracy to obstruct justice. Dean was an explosive witness before the Senate Watergate committee last summer. In five days of nationally broadcast testimony he described his attendance at meetings where 1972 plans to wiretap the Democrats were discussed and said he believed the President knew the original Watergate investigation was to be covered up. He also was an important witness before the impeachment inquiry of the House Judiciary Committee, where he once worked as a Republican staff member. In his testimony there he spoke on a broad sweep of Watergate issues from misuse of the Internal Revenue Service to his own order for Hunt to flee the country after the break-in at the Democratic National Committee headquarters June 17, 1972. He was the third person to plead guilty to joining the Watergate cover-up conspiracy. Dean and the others, Nixon reelection campaign aides Frederick C. I-aRue and Jeb Stuart Magruder, all are likely witnesses in the cover-up trial scheduled to begin Sept. 9. Six men, including former Atty. Gen. John N. Mitchell, have pleaded innocent in the case. Ishpening, Mich.. A Republic spokesman said, "We are affected by the shutdown of those operations and investigating alternative sources but we can't say that we will be able to replace the tonnage from those prime sources." He said Republic has a substantial inventory but "of course we should be building for the winter months." The spokesman would not say where alternate ore supplies might be found. Armco Steel, the other Reserve parent, said it normally gets about 75 per cent of its total ore requirements from Reserve. Armco indicated it will continue to operate using stockpiled pellets. The shutdown already is affecting ore and taconite shipping operations from some ports in Lake Superior's western arm. Officials say the movement of iron ore will be substantially curtailed and a big cutback in taconite pellets shipped will be reflected in the event of a prolonged strike. Taconite shipment stopped abruptly in Silver Bay and at Taconite Harbor, where USW strikers were directly involved in loading operations. The strike is not affecting the Duluth-Missabe & Iron Range Co. (DN ti IR) ore docks in Two Harbors, which handles iron ore and taconite for U.S. Steel Corp. U.S Steel and Jones- Laughlin Steel Co. are not involved in the strike, since they have separate contracts with the union. Nor will it have any major effect on DN & IR ore and taconite shipments from Duluth. The bulk of those shipments also are for U.S. Steel and Jones-Laughlin. The Duluth ore docks, officials report, currently have more than two million tons of taconite pellets stockpiled. The situation at the Burlington Northern, Inc., ore docks in Superior, Wis. It moves Hanna ore and pellets primarily and the current stockpile is adequate only for 8 to 10 vessel loads, officials said. USW District 33 Director Peter J. Benzoni, Duluth, said the union did not consider extending the contract and continuing bargaining because "management demonstrated lack of good faith." He said negotiations started in January and there were as Continued on page 14 For Monday Telephone strike is still planned WASHINGTON (AP) House leaders shaping plans for the first presidential impeachment debate in 106 years have agreed to start it Aug. 19, with the first votes coming about eight days later. Although final details are still to be worked out, it appears certain live television and radio coverage of the historic event will be permitted. Under arrangements tentatively approved by the leadership of both parties Thursday, about seven days will be devoted to general debate and three or four days to voting on the articles of impeachment. The procedures contemplated now would not permit any new articles to be proposed and would limit WEATHER FERGUS FAILS AREA Clearing and cooler tonight. Fair to partly cloudy and cool Saturday. Lows tonight mid and upper 40s. Highs Saturday low 70s. High Thursday 85 Overnight Low 57 At 8 a.m. 59. At noon 63. Precipitation 24 hours ending 8 a.m. today 2.00. Temperatures One Year Ago Maximum 85. Minimum 54, amendments to motions to strike the three separate articles or sections of them. Debate and voting procedures will be drawn up formally by the House Rules Committee at a meeting now set for Aug. 13. In preparation for the meeting, party leaders informally discussed the arrangements with the committee. Meanwhile, in the Senate Rules and Administration Committee, strong sentiment developed to leave virtually unchanged the 106-year-old rules for impeachment trials. Majority Leader Mike Mansfield has proposed sweeping rules changes but members indicated little support for the changes. The proposed changes would set new standards for what evidence would be allowed and would limit Chief Justice Warren E. Burger's role. If the House majority votes to impeach Nixon, a Senate trial would be held with a two-thirds vote needed to convict the President and remove him from office. At the White House, a presidential spokesman declined to discuss Nixon's strategy for combating impeachment. "Our strategy will become known to you as events unfold," Gerald L. Warren told reporters. The Aug. 19 date set for starting House debate repre- sents a delay ot nearly a weeK in the schedule Chairman Peter W. Rodino Jr. had announced during the Judiciary Committee's impeachment inquiry. There was no immediate explanation for the delay but it is believed Rodino wants more time to prepare the committee's report on the three articles it approved last week. During the committee's consideration of the aricles, supporters of President Nixon said they were too vague to permit him to make a proper defense. Their efforts to amend the articles to make them more specific failed, but Rodino said the report would include factual information that would make it clear what charges were being brought against Nixon. The New Jersey Democrat said last week the report would be ready next Tuesday, but it is understood Special Counsel John Doar has requested a few more days to prepare it. The 10 Republicans who voted against impeachment also are preparing a detailed statement attacking the articles, and want more time to work on it. In the meeting between the leadership and the Rules Committee, the possibility of per- mitting the House to vote on a resolution of censure as an alternative to impeachment was discussed. The proposal was made by Rep. Delbert L. Latta, R-Ohio, a member of both the Judiciary Committee and the Rules Committee, and reportedly ran into strong opposition from the Democratic leaders and Kules Committee members. Such a resolution would not be in order unless the Rules Committee permitted it, and with the Democrats holding a 10-5 edge on the committee there is little chance it will be Continued on page 14 WASHINGTON (AP) - Company and union bargainers plan to intensify negotiations in hopes of averting a nationwide strike against the Bell Telephone System set for 12:01 a.m. EOT Monday. A Bell spokesman said the company was hopeful of a peaceful settlement but President Glenn E. Watts of the Communications Workers of America said a strike appears inevitable. "The hard fact at this time is that the union and the companies remain very far apart on the total package," Watts told a news conference Thursday. He said his union's 500,000 members voted in favor of a walkout JOHN DEAN Off Page One On (he local scene. Page a What do you think about pro football strike? Page 10 Largest donation to is disclosed WASHINGTON (AP) - Two top executives of a Dallas computer firm secretly gave $100,000 to the presidential campaign of Wilbur D. Mills in 1972, the largest donation yet to surface in the Arkansas Democrat's brief run for the White House. The computer firm, Electronic Data Systems Corp., processes 75 million health insurance claims annually. Mills is chairman of the House Ways and Means Committee, which is shaping national health insurance legislation. The money was given by Mil- ledge A. Hart III. president of the corporation, and Mervin I.. Stauffer. a regional vice president. Hart was reported to be on vacation and unavailable for comment. Stauffer said he gave because "I believe in Mills." Mills told the Mutual Broadcasting System that he had not heard about the contribution until news reports of it. He said, "No one's found anything wrong with it" and added that he appreciated the donation. He said he saw nothing the executives had to gain because any health insurance program would use bidding for contracts. The money was tunneled through 17 dummy committees with names such as"Students for Better Government" and "Fiscal Sanity Committee" on March 30, 1972, just eight days before such secret donations were outlawed. The gift, revealed in the open files of the Senate Watergate committee, moved into the Mills campaign about the same time that numerous other $100,000 donations were being given to President Nixon's campaign by other corporation execu- tives. Several of the Nixon gifts later were revealed to be illegal corporate donations. The finance vice president of EDS, Tom Marquez, denied that the Hart-Stauffer gift came from corporate funds. Stauffer also said his share came from his own pocket. J. D. Williams, a lawyer representing Mills and some of his former campaign workers in connection with Watergate investigations, said that so far as he knows the money was legal. Mills refused to m;ikr voluntary disclosure of ihf soniws of his early campaign donations during the presidential primaries, when sonu 1 other Democratic candidates were making an issue of suoh secrecy. "The $100.000 gift from Hart and Stauffer was kept under wraps until the Watergate committee made public some bank records of the Mills campaign. The records show that all 17 committees wore sol up. starting in December 1971 and continuing into e;irly March. 1972. by a Mills campaign \\orkor. Terry Sheu. who ;illet;cdh w;is Continued on page 14 by a ratio of 7-1. The International Brotherhood of Electrical Workers and the Alliance of Independent Telephone Unions with 250,000 workers also announced they would walk out Monday "in the absence of a satisfactory agreement." It marks the first time all the telephone unions have agreed to strike the giant Bell System at the same time. A strike would affect the Bell operating companies across the country, the Western Electric Co. and the Bell Telephone laboratories. Since most telephone service is automated, the public would continue to have service, at least until lack of maintenance causes breakdowns. Installation of new phones and repairs on existing equipment would stop. The unions rejected on July 18 a three-year contract package that they said amounts to a 30 per cent increase when wages, cost-of-living increases and fringe benefits are counted. Watts said pay hikes of 14 per cent are needed if telephone workers are to keep pace with inflation and productivity. "Our members' expectations are high ... what the companies are offering at this time would not reflect their hopes and aspirations," he said. Other issues in dispute, he told newsmen, are pensions, health and adjustment of the company's absentee control program. Also, he said, the company has not offered enough "local money" to eliminate inequities in geographic differentials and job dassi- ficatons. He said the compam ;I!M> li;ul Cnntimml nil pagr H

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