Daily News from New York, New York • 79

DAILY NEWS. SATURDAY-SBPTEMRER 1. 1979 ix fefcaJ oul ws' pay hike Cato naps Washington (News Bureau) Bowing to the pressure of double-digit inflation, President Carter announced yesterday that he will give 3.5 million federal workers and military personnel a 7 pay raise, instead of the 5.5 wage hike he promised earlier. i Unless it is turned down by Congress which is considered unlikely with an election year coming up the pay raise win lane ecieci on utu pusniog uie average federal employe's annual salary to $18,190 Carter's decision to boost the raise to -ii a -v monthlong recess next week, now has 30 days in which to override Carter's action. If Congress votes to do so, its only option is to then grant the federal employes the full 10.4 increase recommended by a commission on federal pay.

Officials said that about 20,000 federal workers at the lower end of the pay scale will receive raises of up to 9.9 under Carter's recommendation, while several thousand federal officials at the top will get no increase because they are already at the Congressional pay ceiling of $47,500 per year. Carter is vacationing in his home town of Plains, his pay increase announcement was released by the White House. In a message sent to Capitol Hill, Carter justified the hike by saying, "Last January, when my budget was submitted, we expected significantly lower rates of inflation than we have actually experienced. I believe that the loyal and outstanding service given to the country by the government's civilian and military personnel warrants recognition of that changed circumstance and of the new pay standards for 1980." Congress, which returns from a SO i I -V; syzT uz sh 1 4 ill Uj Cir-2f' 7 will add an additional $940 million to 7 the $3.2 billion he requested for federal pay raises in his proposed budget In his fiscal 1980 budget. Carter called for a 5.5 pay increase for the 1.4 million federal civilian workers and the 2.1 million members of the armed services.

"Service warrants recognition" At that time, the administration an-, ticipated a 7.4 inflation rate, for 1979. But the consumer price index has risen at an annual rate of more than 13 for the first seven months of this year and the administration now estimates prices will rise by 10.6 for the entire year. And himself surrounded by kids working In DEAN APPLE POLISHER to the U.S. Department of Labor as is customary, his agency selected the youngsters with the best attendance and punctuality records and awarded them an extra week's work. "He may even have a little left over to give each kid a bonus," Gault said.

The Department of Labor didn't seem to mind. It's regional administrator; James Ware, who called New York's program the finest in the country," joined Koch on the tour; as did Sanitation Commissioner Norman Steisel, whose south of Sunrise Highway. The area is a busy commercial strip and traffic on Route 112 was stopped just as the holiday weekend traffic was beginning. Police said that one tank, about six feet high, exploded in a storage shed as' an employe, Scott Russmeyer, 18, was loading a small bottle. Other tanks exploded.

Russmeyer was injured slightly." Six firemen were treated for smoke inhalation, four of them at Brookhaven Memorial Hospital, East Patchogue. Two women dining in a restaurant -next door were knocked from their chain- by th farce of the blast. Parts of a tank were hurled through a furniture store window 300 feet away. Mayor Koch, on walking tour of Eighth Judge he Its juror resignation By JOSEPH VOLZ Washington, (News Bureau) A federal judge yesterday refused temporarily at least to let the foreman of a grand jury investigation fugitive financier Robert Vesco resign because he felt the Justice Department was whitewashing possible wrongdoing by White House officials. Federal Judge William Bryant told the foreman Ralph E.

Ulmer that he wanted to have more time to study his unprecedented request. Ulmer, 61, a retired budget officer for the National Aeronautics and Space Administration, submitted his letter of resignation from the Vesco grand jury, claiming that the Justice Department was "orchestrating a coverup." Bryant said he wanted to find out if there was any legal precedent for letting a grand' jury foreman resign on the ground that he disagreed with the way the prosecutors were conducting an investigation. But the judge noted that the 23-person grand jury, which decides whether or not a person will be indicted, is supposed to be an independent group under the law. Prove possible Influence use The allegations under study by the grand jury center on whether Vesco, now in the Bahamas, or anyone else, sought to influence White House officials to drop extradition proceedings against him. Two points seem agreed on by most observers Spencer Lee 4th, an Albany, lawyer and friend of White House, 6f Staff Hamilton Jordan accepted' a $10,000 fee and.

came to Washington to discuss the Vesco matter at the White House, on Feb. 8, 1977. A week later, President Carter wrote a note to attorney General Griffin Bell saying: "Please see Spencer Lee of Albany (G when he requests, an appointment." But the information on what Bell was supposed to do for Lee is cloudy. A key witness is Richard Harden, White House aide, who met with Lee on Feb. 8, and has since testified before the grand jury.

The jury and the Justice Department have raised questions as to whether Harden, who. says he told Lee not to pursue his request any' further, is now telling the truth. New Jersey Lottery Pick Itt 949 Straight Payoff: $359.50 Pielt-4 2t1 Straight Payoff: $2,364.50 Connecticut Lottery Dailyt B74 Teen sweepers clean up on By DAVID MEDINA Thanks to one of those happy, -unexpected accidents in the city was able to obtain a little extra apple polishing from 250 teenagers V-working in the Summer Youth Employment Program. Mayor Koch was so elated he took a walking tour up Eighth Ave. between and 42d St, where 50 of the teens were busy yesterday sweeping sidewalks and gutters, 49 According to" Department of Employ--ment Commissioner Ronald Gault, the city found it had a few extra thousand dollars left over from the $33 million program.

Bather than return the money Mary DIBIascDaily Nwi Summer Youth Employment Program. ii office provided tools, equipment and. supervisory staff. Happiest of all were the teens, who told the mayor over and over again how appreciative they were of the opportunity to work and earn a salary. "We love a clean New York," said Valerie Williams, 17, "The, problem is the minute, we clean, the people in the street start dirtying it up again." Koch made note of the fact that this was the first year in the history of the program that the.

youths got paid on time and, in some cases, their paychecks were delivered right to their work sites. Steisel said the other 200 youths were assigned to clean up vacant lots throughout the other four boroughs. "The area within a halt-mile radius of the explosions and fire was evacuated as a precaution in case other explosions occurred," said Suffolk Police Sgt John Lunagh. "Very fortunate" But after an hour, the fire department declared the fires under control and people were readmitted to the area. "It was a very fortunate outcome to -what could have been a far more serious accident," the sergeant said.

At a late hour 'yesterday, firemen still raPRing up and trying to -s determine the cause of the blasts. Route 112 was still closed to traffic. found money By JACK LEAHY Several small propane gas tanks exploded and spread fire at a gas supply firm in North Patchogue, yesterday, forcing Suffolk i County Police to evacuate the.sur--' rounding area while eight volunteer fire departments battled the blaze. one minor injury was reported as firemen struggled to keep the flames, which soared 100 feet high, from a bottled gas tank, largest on the'grounds. The blast occurred 'bout 2 p.mt 'atJ- the Glover Bottle Gas 875 Med-; ford Road (Route 112), about one mile.