Messenger-Inquirer from Owensboro, Kentucky • 1

HOME EDITION Jtt0SWAeflltlNQUIRER 16 PAGES TODAY MOTION a Poof The Doilr Rord Soort SCCTION 8 Page fc Soe New SooH fditooo" fonsburti Messenger, 1874 combined January 2, 1929 with THE OWENSB0R0 INQUIRER, 1884 4 No. 355 OWENSBORO, Ky. 42301, THURSDAY, DECEMBER 23TI97I Nixon Commutation Frees James Hoffa MirHw 1' WASHINGTON (AP) Presi- wave to the guards, dent Nixon commuted the sent- In granting the commutation, ence of former Teamsters Union one of sixteen signed Thursday, boss James R. "Jimmy" Hoffa Nixon said Hoffa had been a Thursday, freeing the one-time model prisoner and noted that bad boy of big labor from federal Mrs. Hoffa is suffering from a prison two days before Christ- severe heart condition, mas.

Technically, Nixon shortened Hoffa walked out of the feder- Hoffa's 13-year sentence to six al penitentiary at Lewisburg, and one-half years. Counting at 4 p.m., four years, nine time off for good behavior, months and 16 days after the Hoffa was eligible for the im-gates closed behind him for a mediate release he received. 13-year sentence for jury tarn- Hoffa was met at the prison penng and mail fraud. by son-in-law, Robert Crancer, To remain free under Nixon's and they left for a motel where commutation, Hoffa must keep Hoffa said he would call his his hands off the union. The wife.

They then left for the air-President dictated that Hoffa nort and a night to St. Louis. must refrain from "direct or indirect management of any labor organization" until March 6, 1980, and must report to a federal probation officer until March of 1973. Hoffa gave no indication of displeasure with the condition if he knew of it as he left for an expected journey to St. where he will spend the holidays with his wife and daughter.

"The leadership of the Teamsters Union is in good hands now," he told newsmen as he emerged in the chilly afternoon without a topcoat over his dark blue suit. "I have no intention at this time of returning to the Teamsters," he said after giving a Nixon acted on a petition for clemency filed a week ago by Hoffa's attorney, Morris Shen-ker, with federal pardon attorney Lawrence N. Traylor. By the time the petition reached the President, it included recommendations from Traylor and Atty. Gen.

John N. Mitchell. The commutation stipulates that Hoffa must serve out the remainder of the shortened sentence if he fails to meet the conditions imposed. Assuming he would get full credit for good behavior, his mandatory release date would be Nov. 28, 1975.

Unlike a pardon, commutation of a sentence does not re-(Continuedon Page 8) 1 i JAMES HOFFA, former Teamster's president, leaves the Lewisburg, Pa. Federal Penitentiary after having his sentence commuted by President Nixon. (AP Wirephoto) Holiday Wonderland City Board Approves OMU Rate Increase by 4-1 on First Reading SHARING THE JOY of a winter wonderland created in the yard at the William F. Birk Home, 1911 Lexington is Margaret Lischy Taylor, 3-year-old daughter of Mr. and Mrs.

C. Waitman Taylor Jr. Bundled against the chill of a crisp, sunny day, the Mayor-elect's only daughter complements the landscape that was flocked and highlighted with red cardinals as a feature of the Christmas Festival of Trees and Music tour that included the Birk residence. (Staff Photo by Dick Logsdon) Council Says It Doesn't Plan Any Interest Controls The board of city commissioners Thursday approved 4-1 an ordinance allowing Owensboro Municipal Utilities a 10 per cent increase in electric rates. Mayor Irvin Terrill and Commissioners Waitman Taylor, Jack Fisher and Alton Puckett approved the ordinance on first reading and Commissioner John D.

Miller voted no. The ordinance, which comes up for final adoption next week, sets a new rate schedule and also permits a rate adjustment based on the price of coal, environmental device expenses and taxes levied on OMU. The adjustments are regulated by formula. The "elevator clause" allows OMU to raise or lower rates as monthly when the 10 per cent increase and coal adjustment factor are applied. The cost of coal will account for 30 cents of the overall $1.38 increase on the average monthly bill.

According to general manager Pace, the average monthly bill paid by Owensboroans after the increase will slightly higher than that which Green River RECC customers now pay and lower than that paid by Kentucky Utility customers. According to Pace, the average monthly rate for electricity supplied by the. local rural electric cooperative is about $10 80 or almost identical to the rate charged by OMU. Kentucky Utilities charges $14 per 500 kwh, he crease in the newspaper and felt it was reasonable." He added, "We come to this point now (at Christmas) because our projection of cash shows that at the end of January we would not be able to make a full dividend payment to the city." But he noted there was sufficient income to maintain OMU operations. "We have known for a long time we were facing this," Beard said.

"We are proud that we can ask for such a small raise. We are affected by cost increases the way this commission is affected." Miller asked, "Could it be that there are things afoot that do not appear on the pages of this Beard replied, "To my knowledge, there is not." Miller also complained about the cost to taxpayers of the city's street lighting program and about a recent utility meeting held in Pureto Rico and attended by Pace. "Can't these meetings be held within the continental limits?" asked Miller. Beard reminded Miller of a recent American Bar Association convention held in London. Miller, also an attorney, said he did not attend.

City Commissioner Jack Fisher, addressing Pace, said, "I would like to make it clear that the board be notified in writing if the cost per kilowatt hour March 1970 to 6 per cent by mid-August of 1971. "In view of the above the Cost of Living Council hereby determines that the issuance of mandatory regulations and orders providing for the stabilization of interest rates and finance charges is not necessary ing credit rates of 18 and 24 per cent; home mortgages of 8 per cent and higher, with additional charges in the form of prints and onerous closing fees; and small business loans of 10 to 15 per cent and higher," the Texas Democrat said. "This is a sorry holiday at this time to maintain such greeting to millions ot con rates and charges at levels con- sumers who had hoped that the coal costs chanSe wltho city added. commission action. This fuel cost in considering the increase administration would use the Economic Stabilization Act to roll back and limit interest rates," he said.

"Once again the banks and other lenders are provision has been in effect on industrial and commercial rates and is being extended to residential rates for the first time. sonant with orderly economic growth," the counsil said. The Economic Stabilization Act requires that the President either take action to stabilize interest rates or make a finding that such action is not neces- Santa Comes Today For Hundreds of Goodfellows Guests Before lenghty questioning of given special treatment while rt.i.v tl Ami WASHINGTON (AP) The Cost of Living Council announced Thursday it does not plan to impose any controls over interest rates "at this time." The council's statement, signed by vice chairman Paul W. McCracken, said the Committee on Interest and Dividends "is formulating and preparing to implement a program for obtaining voluntary restraints on interest rates." House Banking and Currency Committee Chairman Rep. Wight Patman, immediately criticized the announcement, saying President Nixon had violated the Economic Stabilization Act by taking no action on interest rates.

He called the announcement a "sorry holiday Malco Theaters Purchase Plaza Theater The Plaza Theater in the Wes-leyan Park Plaza Shopping Center was purchased Wednesday by greeting to millions of consumers." The council said: "Although as economic expansion accelerates in the months ahead, interest rates generally may rise somewhat, rates on mortgage and consumer loans should nevertheless be at a level that permits the American family to obtain on equitable terms the credit necessary for a rising standard of living." McCracken said recent interest rate experience "has reflected the abatement of inflationary expectations and an ample flow of savings." He said rates on high quality corporate bonds are only slightly above 7 per cent in contrast to more than 9 per cent in mid-1970 and 8 per cent in mid-August of 1971. Municipal bond rates have declined from 7 per cent in mid-1970 to 5'4 per cent since August of 1971, the statement said. Home mortgage interest rates and the prime interest rate for bank loans also has dropped, the council said, with the prime interst rate falling from xh per cent in early the rest of the nation is sub- 7u er, ana jonn Beara, umu legal counsel, by the commissioners, a Miller asked Beard if the hike had been cleared with the President's Wage and Price Commission, saying he could not vote for the measure if it did not have this clearance. Beard replied that in his opinion OMU was not included under the provisions of the federal panel, but he noted that the panel has approved greater utility increases than OMU was asking. Miller rapped OMU for bringing up the proposed hike at Christmas time.

He noted that when the city proposed to establish a garbage fee, the city hall sary. If the President decides jected to restrictive wage-price the action is not required, he is controls." obliged to give his reasons. Patman called it "economic Patman said Nixon had vio- folly" that the Council should lated both the spirit and letter justify taking no action on in- of the act in announcing no ac- terest rates by saying some move by Miller to table the ordinance failed for lack of a second. The motion to adopt the ordinance was made by Terrill and the second was offered by Taylor. The rate increase is an across- money market and prime-interest rates have been dropping.

1971 GOODFELLOWS FUND Previously reported $4,399.72 General Electric Employees United Contribution Fund 200.00 From the Staff of Owensboro-Daviess Countv Public Librarv 34.00 "Congress wanted the Presi- tion on interest rates. "Even more important is the fact that the Presidential statement is an endorsement of the current high level of interest rates which exist on every class of loan in the nation." Patman said "This means Presidential backing for small loan rates of 36 per cent and higher revolv- conference room had been filled. dent to take action to protect the-board hike, applying equally the consumer, the small busi- to industrial, commercial and nessman, the farmers and oth- residential customers, ers who have been victimized The present average monthly by high interest rates and not electric rate for Owensboro resi- just the prime business bono- dential customers is $10.80 per wers," Patman said. "Interest 500 kilowatt hours of power 25.00 25.00 but that hardly anyone was pre- Walters Shoe Mart sent at the discussion for the Sears, Roebuck and Co. electric rate hike.

Beard replied. "I assume the (Continued on Page 8) used. It will be raissd to $12.18 people read our proposed in Rogers Says Vietnam Air War To Continue By GOODFELLOWS EDITOR of the Messenger and Inquirer The excitement that has been building for weeks now. since the 1971 Goodfellows roll rail began, conies to a climax today at the Sportscenter. Santa Claus' busy schedu'e this Christmas Eve will include, as it has since 1916, a visit with the little ones whose homes he might otherwise be unable to find With the help of the Good-fellows Club.

Santa will see that none of his little friends in Owensboro and Daviess County will be overlooked on his Christmas rounds. Already, stacks of toys, candy, apples and oranges await hundreds of youngsters who will assemble at 1 p.m. today at the Sportscenter to receive the gifts that have arrived in advance of Santa's coming All is in readiness there, reports Jerome Con-rey circulation manager of the Messenger and Inquirer Conrey has been a Santa Claus aide beginning with the origin of the Goodfellows Club when he was an Inquirer carrier boy I 'oi many years he has supervised purchases and distribution of Goodfellow gifts Thanks to the Trucking Company, Goodfellow gifts will be transported to the Sportscenter, where they will be distributed following the program that has been planned This service is a substantial contribution. Finishing touches were put to the Goodfellows' tree Wednesday The symbol of Christmas, a giant white pine, will glisten with many varicolored ornaments At the party, each child will be (Continued on Page 8) Malco Theaters Inc. Announcement of the theater p.

uchase from Midsouth Paramount New Orleans, was made by M. A. Lightman Jr. of Memphis, president of the purchasing company. The Plaza Theater will be managed by Adlpph H.

Baker, manager of Malco Theaters Inc. in Owensboro. The Memphis-based theater corporation owns four other theaters in Owensboro. They are the Malco Theater, 418 Frederica St. Mall Twin Cinemas, Lincoln Mall Shopping Center; Starlight Drive-In, Calhoun Road; and Owensboro Drive-In, U.

S. 431. It also owns theaters in Tennessee, Arkansas, Mississippi, Missouri and Kentucky. Midsouth Paramount Corp. is a subsidiary of the American Broadcasting Co.

In memory of Donald Ray Gaddis, by Father, Mother. Brothers, Sisters, and Friends 25.00 Danny. Lori, Ellen. and Shane 10.00 In memory of James and Pauline Gaddis. by Dell and Connie 10.00 Mr.

and Mrs. Justus D. Miller 5.00 Lyle and Florence Grav 5.00 Francill McGill 5.00 Mr. and Mrs. Vivan Greenwell 5.00 In memorv of Mr.

Charles J. Simpson 5.00 Amos Whittaker 5.00 In memory of Myrl Ward Ashby, by Grandchildren 3 00 Nick, Mark, and Lee Ellen Berry 3.00 In memory of Mrs. Mayme Jarnagine 2.00 In loving memory of Dotie Logsdon 1.00 In memory of Allison Krause 1.00 In memory of Jeff Miller 1.00 In memory of Sandy Scheuer 1.00 In memory of Bill Schroeder 1.00 In memorv of Bobbv Button 1.00 Mr. Mrs. Raymond Gordon 5.00 Total to 12-23-71 $4,777.72 WASHINGTON (AP) -There will be no let up in the American air war as long as North Vietnam continues its attacks in Southeast Asia, but the U.S.

wind-down of its involvement in the area will continue unaffected, Secretary of State William P. Rogers said Thursday. "Our response will be to continue to support South Vietnam in Cambodia and we will continue to give our support in Laos." Rogers said when asked at a year-end news conference about a reported step up of U.S. air activity. The Secretary said North Vietnam's new attacks in Cambodia and Laos does not mean the United States or its allies are losing to Hanoi.

Instead, Rogers said, it is an indication "that the Victimization of the war has worked well and a clear indication of North Vietnam's failure In South Vietnam. It shows how far removed it is from its primary objective-to conquer South Vietnam." Rogers appeared at the State Department's regular noon briefing and covered a wide range of subjects. He said there was nothing to add to previous administration statements saying India carries a major part of the blame for the fighting in East Pakistan. There are "no apologies that continues to be the view we hold," he said. It is pleasing that peace now exists on the subcontinent, Rogers said, but he singled out "the major tragic events" there as one of the disappointments of 1971.

He said the future will determine U.S. relations with India and "we will consider our policy in the light of events and we will be watching the events with considerable interst." Rogers said the administration "hasn't faced up" to the question of U.S. recognition of Bangla Desh, the former East Pakistani province conquered by India and he indicated doubt "it will arise for some time." But he added that American policy concerning reunification He can't answer any hypothetical questions about the release of American prisoners in North Vietnam, but he added "we will do everything we can reasonably and consistent with out national goals to achieve that end." The administration would have lifted the 10 per cent import surtax "on a product-byproduct basis with special attention io those items important to Latin American countries specifically" if the surtax had not been eliminated. This was part of a statement read by Rogers to open his news conference in which he emphasized that "the well-being of the peoples and nations of Latin America continues to be of major interest and concern to President Nixon. "To that end this administration will press for the full replenishment of funds" used international banking agencies for development loans in Latin America.

In the Mideast, Rogers said Israel has responded favorably to U.S. efforts to renew negotiations for an interim settlement. However, the secretary added, signals from Egypt are unclear. Rogers said he did not want to debate with Rep. Charles Diggs, over the congressman's assertion that the recent renewal of an agreement with Portugal for American use of military bases in the Azores indicated support for racism in Africa.

The matter of the bases are not connected with Portugal's colonial policies, Rogers said, adding that U.S. policy was and continues to be against racism in Africa and for independence on the continent. Chief among these, Rogers indicated, were the continued troop withdrawal from Vietnam, the success of Vietnam-ization, the continued cease-fire in the Mideast, new progress toward a -Soviet arms limitation agreement and the decision to ease tensions with China marked by President Nixon's visit to Peking next year. of Pakistan is to "let the people in that area determine their own future. We do favor unity as a principle and we do not favor secession as a principle." At another point the secretary said the United States should not be involved in the fate of Sheik Mujibar Rahman, the Bangla Desh leader now under house arrest in West Pakistan.

This is "a matter for the people concerned" to settle, Rogers stated. The U.S. position on the Indo-Pakistani war also played a part in newsmen's questions about American relations with the Soviet Union. Rogers repeated past expressions of administration disappointment with Soviet vetos of three U.N. resolutions calling for an end to the war, but said, "no, I don't think so," when asked if the conflict had damaged -Soviet relations.

And he said the upcoming Nixon trip to Russia symbolized the over-all situation between the two super powers. Inquirer Offices will be closed all day Saturday. Classified ads will be taken until noon today (or Saturday, Sunday and Monday insertion. If you fail to receive your Messenger Inquirer at the regular delivery time, a copy will be sent when you dial 683-1515 prior to 10 a.m..