Sunday Gazette-Mail from Charleston, West Virginia on June 23, 1974 · Page 1
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June 23, 1974

Sunday Gazette-Mail from Charleston, West Virginia · Page 1

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Charleston, West Virginia
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Sunday, June 23, 1974
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GAZETTE-MAIL Charleston, West Virginia. Sunday Morning;, June 23.1974 C I T Y E D I T I O N STATE OUTLOOK - Cooler, with rain likely. Highs in the 70s. Mure weather on Page fcA. 30 Cents \ afO»Li^^ W O U L D ' S i t t T C O M I C S Ss-L:!?;-. · '···'- *:v:.;. :·'· ;:s:.i:-«is :*«·::·. i^-i,,"??*·····,.·.·,·· ,·'······· .A. *.? ·'^:K^-^~x.t^-K^^i^^^.Kf-,,t X ::.--^.^. a/i / : ^/-fy-y^-^- : ;-- : ^-. / .^;.. £·'.]·.,··.. : '· · . · · · · · · . · , · . . . · · · . · · ·'·;·.····:· · , · . . ' · First Price, Now Wage: Spiral Goes By Peter Milius (C) Washington Pott WASHINGTON - First came a price explosion after wage and price controls were allowed to expire April 30. Now there is a wage explosion coming, and it eventually will force up prices even further. Since controls with their forgotten 5.5 per cent per year pay guideline disappeared eight weeks ago, wage settlements all across the. economy and country have been swiftly rising, many to the level of 10 per cent per year and more. Wages in construction have leaped ahead the most, and are the most fearsome to the government's inflation-fighters. But nonconstruction settlements are tending upward, too! IN THE WEEK that ended June 14: »-54,000 C a l i f o r n i a food workers got a pay raise of 10.7 per cent. »-110,000 low-paid textile .workers got 12.9 per cent. »18,500 American Airlines workers got 11.3 per cent. Some Pennsylvania operating engineers got 9.9 per cent, some Detroit supermarket clerks 14.3 per cent, some San Francisco.automobile mechanics 13.7 per cent. Strikes, another indicator of the mood of working people, have been breaking out all over. There were 280 of them going on at this time last year, 363 this time three years ago, before controls. There were a record 5|3 Saturday. LABOR'S bEFENDERS note correctly -that pay was No Arab far outstripped by prices in last year's inflation, and that workers now are only seeking to catch up, as is their due. An average hour's pay, as measured by the Labor Department's hourly earnings index, rose 6.7 per cent in 1973 -- but its purchasing power declined 1.9 per cent. Yet rapidly rising wages, whether justified or not, are inflationary too. Last summer it was mainly food that forced up prices. Then it was fuel and assorted other industrial raw materials. Now it is supposedly the passing-along of past and. pent-up pressures with the lifting of controls. The White House believes that most of these past pressures will abate as the year goes on, and that-the inflation rate, which was raging at 11.5 per cent in the first quarter by one'yardstick, 14.2 per cent by another -- will fall back to somewhere in the neighborhood of 7 per cent by the fourth. OTHERS, including John T. Dunlop, director of the Cost of Living Council, are skeptical the rate will fall that far. One of the reasons is the rising pressure they anticipate from wages. The nation, Dunlop said in an interview this week, is fac : ing"a serious increase in the rate of change of. wage in- ereases.'It. isi pervasive, union and : horiunibn:" ; (Turn to Page 8A, Col. 4) Secret U. S., Soviet Arms Pact Denied Caught Writing a speeding citation is 2-year-old .Matt Jackson, son of Mr. and Mrs, Joe Jack-son of Muncie, Ind. The '^cjlRri Mary Kloffensteih.^Matt^a^ incentiveifrom his father, appUcer cie. The young of^iiceIdecide^M|ryi^as going 4 miles ber tour in a 3-mile zone. (AP Wirephoto) Af, A'. K Times WASHINGTON-Allegations that Secretary of State Henry A. Kissinger made secret nuclear arrangements with Soviet leaders in 1972 are "totally without merit or any foundation whatsoever," the State Department said Saturday. "There are no secret agreements of any kind," Robert Anderson, the department spokesman, told newsmen in disputing reports suggesting the Russians were allowed to build more missile launchers than Congress had been led to believe was permissible under the U. S.-Soviet accord. ' » SEN. HENRY M. Jackson, D-Wash., a critic of the administration's negotiating strategy, had supported the allegations as being "reliable and creditable." According to one account, the 950 sea-based missiles allowed the Soviet Union were raised to 1,020, while the U. S. total was lowered from 710 to 656. . With President Nixon and Kissinger set to leave this week for a third round of summit talks in Moscow, the department appeared particularly irritated that the charges, would be raised now. : . "It is regrettable," said Anderson, "that this false suspicion has been raised just before the President's trip to the Soviet Union." He said Kissinger is prepared, to address the issue at a news conference Monday morning and in testimony to the Senate arms control subcommittee headed by Jackson on Monday afternoon. "I want to emphasize that no secret deal has been made which permitted any change in the totals outlined in the 1972 agreement," the spokesman said. The principal topic on the agenda for Nixon's summit meeting with Leonid I. Brezh- nev, the Communist party leader, is further restraints on nuclear weapons. In 1972, the two powers agreed to a five- year limitation on the number of offensive missiles that each side could deploy. »· A SENATE source claimed the United States privately agreed that the Soviets could .modernize older, G-Class diesel submarines, thereby gaining 70 additional undersea missiles. Kissinger told a news conference in Moscow May 27,1972, that the Soviets were not required to retire the G-class submarines "but if they modernize them they are counted against the 950." . In another matter regarding Kissinger both the secretary of state and Defense Secretary James Schlesinger denied they fought a week-long battle over giving Israel military supplies during the 1973 Middle East War. It had been reported that Kissinger met resistance, in conveying aid to Israel from the Pentagon. The allegation is part of a forthcoming book, entitled '-'Kissinger," written by two CBS reporters, Marvin and Bernard Kalb. Asked about Jackson's statement as he emerged from a briefing for the Senate Armed Services Committee on Friday, Kissinger replied: "Such views must be based on some misapprehension of the negotiations." Jackson, who has been critical of President Nixon's detente policy with the Soviets, told newsmen he has received "reliable and creditable information" that the true missile ceilings "are higher for the Soviets and lower for the (Turn to Page 8A, Col. 7) Refusal Hit ns Pm . WASHINGTON ( A P ) ^~ Secretary of State Henry A. Kissinger has assured Israel that, the United States does not contemplate selling .arms to Egypt or Syria, U; S..and.Is-. raeli officials said Saturday. The assurances were given to Israeli ambassador Simcha Dinitz in a one-hour meeting Friday at the State Department with Kissinger. Meanwhile, Israeli- defense minister .Shimon Peres planned/an arrival here Monday to .work out a multibillion- dollar, long-term program for U. S. military and economic assistance to Israel. He will see Kissinger before the secretary leaves with' President Nixon on his Moscow summit trip Tuesday. Peres also will confer with Defense Secretary James R. Schlesinger, according to an announcement Saturday from the Israeli Embassy. Kissinger and Dinitz agreed last week in Jerusalem that they would meet here on the arms question before the sec" retary went off for the summit talks. ISRAEL HAS been concerned about U. S. intentions in light of the accelerated friendship between Washington and the two Arab states that invaded Israel last October. Relations with the United States, broken off by Cairo and Damascus in 1967, have been restored. Nixon is asking Congress for $200 million in economic aid for Egypt in the '· fiscal year beginning July 1 and is'seeking an additional $100 million contingengency ; (Turn to Page 8A, Col. 5) AL;EXANbRiA, Va.; (AP)v -- Sources close.to ah investigation into an allegedly fraudulent wine importing scheme say bank losses may have topped $6 million, the'Wash- ington Star-News said Saturday- United Virginia Bankshares Inc. said Friday its losses were $3.8 million in the scheme, and the McLean Bank acknowledged it anticipated "some losses" through loans made to investors in the scheme. But a knowledgeable source close to the investigation said United Virginia's loss was close to $5 million and McLean probably lost around $1.6 million, the newspaper said. . . . »· THE SOURCE also reportedly said two high officials from each bank had invested personally in the wine scheme, which the Securities ahd'Exchangfei; Commission says owes $26 million to 400 people. William Howtett, a director of the McLean bank, said late Friday night the figure of $1.6 million in losses was "exceedingly high," and "nowhere near that." He said a survey of the losses was in process. Hewlett" refused to comment on whether he knew of any McLean Bank officials investing in the wine scheme. K. A. Kendall, president of the Richmond-based United Virginia, said Friday his bank group "may have experienced loan losses of $3.78 million 1 ' and that "no accurate estimate can be made at this time concerning the recoverability of the loans because they appear to be secured largely by the fictitious wine contracts:" Kendall said the $3.8 million loss would cost shareholders -14 cents a share oh 1974 earnings. And he said the majority of the loans made in the scheme was approved by a single loan officer, who has been relieved of most of his authority. The Star-News said its source identified the loan officer as one of those officials who had invested in the scheme. The newspaper said Robert D. Johnson, 39, of McLean, identified by the SEC as head of the alleged wine fraud, had large sums invested in the United Virginia-First Citizens National Bank in Alexandria and in the McLean Bank, among others. ' Micheal Burry, chairman of the board of the McLean Bank, said earlier Friday that the bank had made loans to customers investing in the wine scheme. He declined to give a total but indicated the bank may have to borrow money.."We anticipate some losses, but the bank is solvent and operating normally, said. he Tie Seen in Rebozo Gift, Hotel Decision By John M. Crewdson (C) New York Times Service WASHINGTON - John N. Mitchell, as attorney general, bypassed the Justice Department's antitrust division four years ago in giving the Howard R. Hughes organization approval to purchase a casino- hotel in Las Vegas, Nev., according to evidence, gathered for the Senate Watergate committee. B. Preiser Dies Of Heart Attack Nuclear Test Hit A report by the committee's staff says that a secret, ad hoc decision was made by Mitchell without analysis by or knowledge of the department's antitrust lawyers. The report terms it "a classic case of governmental decision- making for friends" of the Nixon administration. Charleston 3 Rochester 5 Benjamin Preiser, 76, of 4307 Kanawha Ave., SE., was dead on arrival Saturday at General Division, Charleston Area Medical Center. He was playing golf at Coonskin Park when he suffered an apparent heart attack and was taken to the hospital. He was chairman of the board of Preiser Scientific Laboratories of which he was cofounder with his father, Victor Preiser. in 1924, a native of Austria, a graduate of WVU, a member and past president of B'nai Jacob Synagogue, officer of B'nai B'rith and Charleston Lions Club, past president of Zionist, officer of the American Chemical Society, a member of the Charleston Chamber of Commerce, American Legion, director and president of Faith Workshop, a veteran of World War I. Surviving: wife, Kate J.; son. Alvin E. of Charleston; daughter, Mrs. David Osen of Teaneck, N.J.: sisters. Mrs. Rose Davidson of Charleston, Mrs. Sarah Sanders of Miami, Fla.. and Mrs. Adeline Line of Wheaton, Md.; brother, Afex S. of Charleston. In lieu of flowers$e family requests thatdonftions be BENJAMIN PREISER made to Faith Workshop and B'nai Jacob Synagogue. Funeral services will be held at 4'p. m. today in Barlow-Bonsall Funeral Home with Rabbi Samuel Cooper and the Rev. Benjamin Samuels officiating. Burial will follow in B'Nai Jacob Cemetery in South Hills. In Britain LONDON - W. -- Prime Minister Harold Wilson faced a revolt Saturday from within his Labor party over a news report that Britain plans a nuclear test in the American underground test range in Nevada. Several members of the Tribune group, a leftist wing of the party, said they will challenge Defense Secretary Roy Mason to deny the report, in Saturday's Daily Express. Asked about the report, by the Express' military and political commentator. Chapman Pincher. a Defense Ministry spokesman said it was "purely speculative" but added "I can neither confirm nor deny the story." In Washington, a spokesman for the Atomic Energy Commission said British scientists were at work in Nevada but refused further comment. "All hell will break toose" if- the report is true, said Sidney Bidwd, chairman of the Tribune group, to which about 70 of the 200 nonministerial La- boriies belong. THE 47-PAGE REPORT, c i r c u l a t e d to committee members Friday and obtained by The New York Times Saturday discusses negotiations with Mitchell aimed to obtain permission for Hughes, the billionaire industrialist, to buy the'Dunes Hotel. The.ne- gotiations were conducted by Richard G^. Danner, "the courier" ^who delivered $100,000 in Hughes funds to Charles G. "Bebe'; Rebozo, President Nixon's close friend, the report says. The committee staff said that it had been nnable to corroborate testimony by-Robert A. Maheu, the former head of Hughes' Nevada operations, linking part of the 1100,000 payment to the;Mitchell decision. But it said that The Dunes Hotel case "strongly suggests a connection between the contribution and federal action a f f e c t i n g Hughes." - ! The Watergate committee has been looking into the circumstances surrounding the mysterious $100,000 payment to Rebozo in 1970 in connection with its broader and nearly completed inquiry into presidential campaign practices in the 1972 election. Part of that investigation has involved a search for something that may have been given in return for the money, including the Dunes decision cited by Maheu. Refcozo, Danner, and Mitchell a| denied "any connection * \ between the contribution and the Dunes case," the staff reported. According to the staff report, written by James Moorer, an assistant majority counsel to the committee, Richard W. McLaren, who headed the antitrust division at the time, testified in a private interview that Mitchell never told him of giving his approval in March, 1970, for Hughes to add to the five casino-hotels he then owned in Las Vegas. (Turn to Page 8A, Col. 1) By Andrew Gallagher The president-elect of the West Virginia Coal Assn. said Saturday; "The. UMW obviously is taking a rather narrow and unprecedented interpretation of the contract," in its refusal to load stockpiled coal during the two-week miners' vacation period. Edwin K. Wiles, who will assume the presidency of the coal association July 1, reacting to an announcement' from the union to its districts that no stockpiled coal would be loaded during the next two weeks. Many on the industry side of the coal business look on the UMW's action as an effort to gain advantage an the upcoming contract talks scheduled for Nov. 12. "It is my understanding," said Wiles, "that this coal has always been loaded in the past. It's coal that has been mined.and run through the preparation plant. It's clean, stockpiled coal waiting to be loaded." Wiles said two or three days are then used by certain miners 'to load the stockpiled coal onto trains. Those miners take their vacations later. "FOR THE UMW to take such action two days before the vacation period starts," he said, "I don't know how it can be interpreted other than a move to further delay ship^GAZETTE-MAIL 2 Children's Case: 'Love' Not Mentioned -Page IE Anderson Looks At 'Believers' -Page IE Building News 13C Business News 10B Classified Ads 4-I1E Columnist 2E-3E Current Affairs IE Editorials..,* 2E Home,Family....HlC, 14C Magazine 1M-28M Obituaries 13D Page Opposite ...3E ments of coal and to delay accumulation of supplies for the consumer and as a move to bring pressure during the negotiations." · ' ' . . . . . ,'..'· There are about 4 million tons of stockpiled coal waiting to be loaded, Wiles said he understood from industry ti- gures. "Most mines which had the intention of loading this coal was - as normal procedure already had arrangements made for scheduling men; had arrangements made with the railroads who had coal cars ready and their schedules' out .to.' route the trains and now two days before the operation is.to, begin the UMW comes up with this," he. said. : " (Turn to Page 8A, Col. 4) Poor Get More Food On July 1 New maximum allowable; income levels and monthly coupon allotments for the Federal Food Stamp Program will go into effect July 1 to reflect rising food costs. " State Welfare Commission: er Edwin Flowers said the new standards will affect the approximately 250,000 West . Virginians who currently par : ticipate in the program. In addition to increasing the allowable income level for all households approximately 6 per cent, he said the standards will enable eligible participants to purchase more stamps each month. · APPROPRIATE adjustments in the state's current food stamp cases automatically will be reflected in July food stamp authorizations. Flowers said federal law now requires the United States Department of Agriculture to re-evaluate food stamp standards every six months to keep pace with rising food prices. New standards will increase the maximum allowable income for participants, raise monthly food stamp allotments, and adjust purchase price requirements from S2 to S14 for households with incomes in excess of approximately 80 per cent of the maximum. Improved food stamp benefits won't require any additional outlay of state funds since the full bonus value of the stamps, or the difference between their market value Sports I-12D J^l-S ·r 25M " 2 ;?i · and the cost to participants, is Your Bridgework 13|| federal ty fund 4 *j|

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