The San Francisco Examiner from San Francisco, California • 2

Pagt 2- JMcxamtttrr May 4, 1 972 UMW Housing Probe PI (Committee Calls i Kleindienst Clean NYC Firm Hit A On Mortgages mm WASHINGTON (AIM -A majority of the Senate u-jliciary Committee, in a report urging confirmation of Richard Kleindienst's nomination as attorney general, today rejected accusations fyi a political deal in the settlement of antitrust cases Against International Telephone and Telegraph Corp. "Based on the evidence, it vs the conclusion of the committee that the settlement was reached on the merits Corp. which has been subpoenaed by the committee, Subcommittee Investigators assert that the type ot financial links tmt'aveled in New York are common in other cities hit by housing scandals, including Detroit, Chicago, Philadelphia and St, Louis. The information about United's inner workings was disclosed in affidavits, company records, and the testimony of officials of the Empire National Bank of New York Slate. Empire, which recently purchased United and subsidiary corporations, will end all improprieties in the mortgage company, saiil John 11.

Payne president of the bank. rfft Slicky Music Critics i New STOCKPORT (England) (AP) A nightclub singer was doused with molasses and sprinkled with feathers last night after she turned down a customer's request to sing the Irish ballad "Danny Boy." Kathy Varden, 24, told police a band of men dragged her into a park, gagged her and tied her to a fence before the molasses and -feathers treatment, With blackboard and chalk, Henry Cabot Lodge delivers his first lecture at North Shore Community College in Beverly, where he is scheduled to give three 2 '2 -hour classes this spring. The role of teacher is a new one for Lodge, who has served as ambassador to South Vietnam, U.S. representative to the UN, President Nixon's envoy to the Vatican, and in Cabinet of President Eisenhower. AP Photo after columnist Jack Anderson published a memo purportedly written by ITT lobbyist Dita Beard.

It linked the out-of-court settlement to a pledge by the conglomerate's Sheraton Hotel subsidiary to help underwrite the expenses of the U72 Republican National Convention. Previously the committee had unanimously approved Kleindienst's nomination, but it reopened its hearings at his request. In a report to be filed tomorrow in the Senate, the committee concludes that Kleindienst, who was deputy attorney general at the time, "acted properly in the conduct of his office in the matter of the settlement of these cases." Reaffirmation The committee voted 11 to 4 on April 27, after its second round of hearings, to reaffirm its original recommendation that the Senate confirm Keeindienst's nomination to succeed John Mitchell. A minority report is to be filed by Senators who dissented from the committee's recommendation. The majority, besides finding no evidence to support the charge of a political deal in the settlement of the antiturst cases against ITT, also concludes: That Kleindienst did not mislead the committee about his contacts with White House aide Peter M.

Flanigan on the ITT case. That there was nothing improper or irregular about the way in which a financial analysis was obtained from a Wall Street investment banker. Richard J. Rams-den, on the effects of a forced divestiture of Hartford Fire Insurance Co. bv ITT.

That Kleindienst's handling of an investigation of U.S. Attorney Harry Steward in San Diego was in line with findings of the Justice Department's Criminal Division. Kleindienst's nomination alter arm's length negotiations between representatives of ITT and the Justice Department's antitrust division," the majority report says. "Those negotiations and the settlement of the ITT cases were not the product of political influence or promise of political favor from ITT." it adds. Investigation The committee conducted an extensive investigation Two men field down Miss Varden's 35 year old husband Harry while the others poured half a bucket of molasses over her, she said.

They ran away, leaving a placard pinned to her dress. "Danny Hoy forever." it said. The couple were treated in a hospital for shock and bruises, authorities reported. The public-disclosure proposal, covering 58 typewritten pages, allows interested persons 60 days to comment after publication in the Federal Register. Patterned in the spirit of the Freedom of Information Act, the FDA's open-files plan is believed to go further than any other federal regulatory agency's.

Basically, the FDA proposes to make public safety and effectiveness data for food additives, color additives and antibiotic drugs unless companies can demonstrate the information should remain secret. i it fir i fi. Wr IK FDA to Open Most Of Its Secret Files is expected to be taken up in the Senate late next week or the first of the following week. Opponents say they plan extended debate but not a filibuster. The committee's majority Russ OK Iceland Chess WASHINGTON -I AP) Intricate and lucrative ties bound New York City's second-largest mortgage company to speculators precipitating major scandals in the government's inner -city home ownership program according to testimony given a Senate subcommittee.

Records indicated that between 1909 and 1972 officers of United Institutional Serv-icing Corp. extended through a subsidiary of their mortgage firm $6.5 million in loans to New York speculators at interest rates between 18 and 21 percent. The loans enabled speculators to buy often-decrepit houses destined for resale to poor families at large profits. Speculators in steered mortgage business to United and paid the firm's employes kickbacks averaging several thousand dollars a year per man. according to testimony before the Senate antitrust and monopoly subcommittee.

Plundering Affidavits and testimony showed one of United's salesmen collected commissions on mortgage business he placed with his firm in his off-hours business as a speculator. In turn, the salesman, Kiva Berwald paid other United employes and title-in a nc companies kickbacks of up to $68 at each closing on his prop-erties, Berwald's records showed. The subcommittee is examining allegations that financial institutions, such as mortgage companies and banks have aided speculators in plundering the Federal Housing Administration through sale of disintegrating houses to families who can't afford the repairs and upkeep. The panel is concentrating on the New York City cases that already have brought indictments of 40 individuals and corporations, including the area's largest mortgage firm, Eastern. United is the second largest, followed by Inter Island Mortgage fl i) 9 I 9 MOSCOW I AP) The Soviet Chess Federation agreed today that Reykjavik, Iceland, should be the site of the world championship chess match between title holder Boris Spassky of Russia and Bobby Fischer of the United States.

The Soviet Federation approved the Reykjavik site in a telegram to the International Chess Federation, according to the official news agency, Tass. 'Mafia' Charged WASHINGTON (API The son of slain United Mine Workers official Joseph A. "Jock" Yablonskl said today that authorities are dose to tracing the slaying to the union's national headquar- ters. "The events in show that murder ton, Pa is as institutionalized wunin the UMW as it is in the Mafia," said Joseph A. "Chip" Yablonski, attorney for the Miners for Democracy group seeking to oust union President W.

A. "Tony" Boyle. Silous Huddleston, retired miner and former local Mine Workers leader from LaFolette, pleaded guilty in Washington, Wednesday to the slaying of the elder Yablonski, his wile and daughter several weeks after he unsuccessfully sought to unseat Boyle in a union election. Huddleston said in a confession read in court that Albert E. Pass, of Middleboro, a member of the Mine Workers International executive board, anl William J.

Prater, a union field representative in Tennessee, arranged and paid for the killings. The two have been charged in the case. Huddleston asserted that two UMW officials helped obtain at least $15,000 from union coffers to finance the killings. Special Prosecutor Richard Sprague says subsequent testimony will reveal how the money used to finance the Yablonski family slayings was funneled from the Mine Workers national treasury. Sprague said the money apparently was piped into a special research and information fund in the UAW's District 19.

"We have certain information that the fund was set up at a conference between Tony Boyle and Albert Pass," Sprague said. He declined to comment on whether he believed Boyle, the embattled president of the UMW, knew the purpose for which the money was allegedly intended. When pressed, he said only: "I did not say that there is any evidence at this time for an arrest of Mr. Boyle." i rv hi "f'iT nTTriTTTrrrTrr(i---n garortumfii Role said that in its eight weeks of hearings "sensational charges frequently blurrel the only issue before the committee" Kleindienst's fitness to serve as attorney general. It also agreed that the match should begin July 2, as proposed by International Federation President Max Euwe of Amsterdam.

Euwe gave Spassky and Fischer until 9 a.m. Saturday to agree to the time and place. Fischer has not replied. Euwe has said Fischer would lose the right to play for the title if he failed to accept. WASHINGTON AP)-Conceding its long tradition of secrecy has become a legal and political pain in the neck, the Food and Drug Ad-ministration today announced plans to open its files to as much public inspection as the law allows.

Peter Hutt, the agency's general counsel, predicted the new policy would unlock about 90 percent of information in FDA files, compared with the 10 percent now available to the public. But he cautioned, "This is not going to mean every piece of paper in the FDA is immediately going to be i ''A MfflJl Vv IMpiMit iiMlllk 1 lielli's Case Tossed Out Of DC Court WASHINGTON (UPii Melvin Belli, the San Francisco criminal and negligence lawyer, had a case thrown out of court yesterday for only the second time in years of practice by his own reckoning. "I have nothing but respect lor the judge," said Belli. "He's new, of U.S. District Court Judge Thomas A.

Flannery, who was appointed last December, threw out the $1 million damages suit on behalf of Roy C. Havens 10, who a paralyzed from the waist down. The suit charged malpractice by Drs. Judson Randolph and Allan B. Coleman and the District of Columbia Children's Hospital.

Belli said he won the first case thrown out on an appeal, and planned to appeal Flannery's decision. "It will be the easiest appeal 1 ever had," he said as he picked up his velvet briefcase and left the court. il IK 19.90 2195 HERRINGBONE KNITS (lp1V i 27.95 MINI-CHECK KNITS 29.95 SOLID TWILL KNITS 19.90 A $i'rU i if.tiV ltl.UU S3 1 Htl li 1 1 St, t'Wifi St. It 1 ieJC S. -9 A'-3i v.

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