Daily News from New York, New York • 28

DAILY NEWS Wednesday. January 22. 1986 28 oftdM) arrow ddo'S toft Panel told feds don't find it sexy By ROBERT CARROLL involve organized crime or child pornography," he said. "A lot of United States attorneys nave told me, 'What are you getting so stirred up about?" said Kelly, who during most of his career was assigned to obscenity investigations. "That makes me weird, I guess.

I admit it I'm weird." Opening witnesses Young and Kelly were among the opening-day witnesses before the commission, which has been holding hearings around the country since last May. Testimony here concludes today. Another witness, former porn movie star Linda Lovelace, 37, said she was a victim forced to perform on screen. "I was not a willing victim," she said. "There were guns, there were knives, there were beatings." Now known as Linda Marchiano, she said she lives on Long Island with her husband, Larry, and two children.

"I'd like to see the victims rights honored," she told the commission. "The only right I have is to tell my story. It's not fair. And what happened to me could happen to any woman on the street today." Following her testimony, the "Deep Throat" star told interviewers that she and her husband were recently offered a lucrative acting offer. "My husband and I were offered $11 million to make love together on film," she said.

"We said no." State Sen. Christopher Mega (It-Brooklyn), another witness, said local district attorneys in New York State are doing "very little" to combat pornography. "They don't give it a very high number," he said. "They tolerate it I don't really think they've attacked the problem." tified that federal prosecutors in New York and Los Angeles are refusing to prosecute obscenity cases because they are "concerned with community standards." "It is the jury that decides on community standards, not the prosecutor," retired agent Homer Young told the Attorney General's Commission on Pornography. Young urged that prosecutors who are "negligent" or "refuse to abide by their oath of office" be removed and replaced by a "strike force." But U.S.

Attorney Rudolph Giuliani said neither witness "knows what he is talking about. We investigate and prosecute anything we think is a serious violation of federal law. We give special attention to cases that Daily Nes Staff Wriier Federal prosecution of the billion-dollar pornography industry has been assigned a priority "on a par with the interstate commerce of unsafe refrigerators," a retired FBI agent complained to a federal commission yesterday. "Federal prosecutors are scared to death to prosecute because they are of getting beaten," said William who retired from the FBI in 0 and now serves as an obscenity consultant to the sheriff's office in Eroward County, Fla. And another retired FBI agent tes hit gwfs jar (j 1 lit-- A it rt' ivi i i iiii.rmw?ali fe jhJ IfMnrtfiilfrin uTi ii ii THE BIG SIX: Mayors of state's biggest cities were in Albany making financial pitch to Joint Fiscal Committee at hearing on state budget.

From left are: Angelo Martinelli of Yonkers, James Griffin of Buffalo, Thomas Young of Syracuse. Thomas Ryan of Rochester, Mayor Koch of New York City and Thomas Whalen of Albany. um By ADAM NAGOURNEY News Albany Bureau ALBANY Mayor Koch, siding with Republicans in New York's annual budget battle, charged yesterday that Gov. Cuomo is sitting on a $600 million surplus that New York City and other local governments need to preserve "essential services." He said Cuomo wants to use the money to cut taxes during the gubernatorial campaign. Koch said Cuomo's 1986-87 budget underestimates revenues by at last $600 million.

The Democratic mayor echoed the state Senate's the federal government goes through with threatened budget cuts. Cuomo included no funds to make up for lost federal aid in his $41.4 billion 1986-87 budget, saying he believed such a step would only encourage the federal government to make the cuts. year for a tax cut," Koch said. He said he based his charge on the history of previous Cuomo revenue estimates. The mayor, here to make his annual plea to lawmakers for more state aid, said "the surplus" should be set aside to help local governments if GOP leader.

Warren Anderson, who said Cuomo's new budget underestimates revenues by $500 million. Cuomo aides denied that the Democratic governor had hidden any money in his budget, saying Koch failed to account for higher state expenses that will eat up any unexpected revenues. "The mayor's confused," said spokesman Gary Fryer. "He's the one with a surplus. He campaigned on it" Koch said the surplus revenues in the Cuomo budget would show up later this year.

"They will be used I assure you in an election 5 Hi giiiity in Uegas plot arms sM President's plans to help the contras. "He's going to ask for military aid, no doubt about it," Lugar said. Asked how big a package Reagan had in mind, Lugar replied: "It will be a substantial one and he anticipates a substantial battle over it." White House spokesman Larry Speakes quoted Reagan as saying, "We can't walk away from this one." for the rebels, an administration official said. Congressional sources predicted he now has enough votes to win aid for them a dramatic turnaround from the 1984 congressional vote to cut off all aid to the contras. After the White House meeting, Sen.

Richard Lugar chairman of the Senate Foreign Relations Committee, was asked about the By RONALD KOZIOL Chicago Tribune KANSAS CITY, Mo. Reputed Chicago crime syndicate boss Joseph Aiuppa, his top aide and three other alleged mob chiefs were found guilty yesterday in a scheme to hide their ownership of Las Vegas Stardust hotel-casino and to skim $2 million in profits. Each faces a maximum of 40 years in prison and $80,000 in fines. Aiuppa, 79, and reputed Chicago under boss John Cerone, 71, showed no emotion as U.S. District Judge Joseph Stevens read the verdicts, which found the defendants guilty of all charges in the eight-count conspiracy indictment It was the first time Aiuppa has been convicted of a major crime.

Others found guilty are Angelo LaPietra, 65, a reputed rackets boss in Chicago; Joseph Lombardo, 57, former Chicago West Side crime chief, now in prison on another conviction, and Milton Rockman, 73, identified during the trial as the Cleveland mob's financial kingpin. A breakthrough David Helfrey, chief of the Justice Department's Organized Crime Strike Force in Kansas City, who prosecuted the case, called the convictions a "significant step against organized crime." Noting that Chicago Mafia chiefs have been successful in avoiding prosecution in the past, Helfrey said the jury's action showed that the "aura of invincibility has been punctured." By BRUCE DRAKE and BARBARA REHM News Washington Bureau WASHINGTON President Reagan, sensing a new mood in Congress, yesterday told Republican leaders he will ask Capitol Hill for a multimillion-dollar military aid package for CIA-trained rebels fighting to overthrow the Sandinista regime in Nicaragua. "The Sandinistas have gone from bad to worse," Reagan said during a White House meeting with the lawmakers. "Their internal repression has increased, they have become more blatant in intimidating their neighbors and helping subversive groups and their (military) buildup continues." The President is propos-' ing a package of up to $100 million in military aid ion backs down on butt fax there is no congressional action on the ground that it is a tax hike. But aides said he changed his.

mind after it became clear that Congress overwhelmingly supports the higher tax. Harrison Rainie WASHINGTON President Reagan has reversed his position and agreed to allow the federal cigaret tax to remain at 16 cents a pack, White House officials have disclosed. Reagan had fought the retention of the 16-cent levy which would drop back to 8 cents a pack on March IS if Vi't VV. rVrV.Vi'VtV.V.