The San Bernardino County Sun from San Bernardino, California • Page 2

I A-2 THE SUN-TELEGRAM Monday. Sept. 3. If 73 Watergate scandal usmess BigB haking and governmental affairs, said. 'There's no question, we see a considerable movement in the business community towards campaign spending reform.

There's been a change nf opinion there's serious support for public financing. "There's a great deal of disillusionment in the system of financing elections as it operates and a new willingness to experiment with approaches that would have been turned down out-of-hand only a year ago." Public financing is one of the major ingredients of the current campaign reform proposals by Senate and House leaders. It faces longer odds than any of the other proposals, according to Fred Wcrtheimer of Common Cause, primarily because it could underwrite serious challenges against incumbents who aren't anxious for competition. Rep. John B.

Anderson, Pep. Morris K. Udall, Sen. Richard S. Br TETIER BLHR WASHINGTON The Watergate scandal wins to have hit Big Business like i slap in the face.

Some major corporate officials may face criminal prosecution for making secret and illegal contributions of company funds to the Nixon re-clcctinn campaign last year. The decision on whether to prosecute is now in the hinds of special Watergate prosecutor Archibald Cox. Other business leaders, uninvolved in the Watergate scandal, are deciding that the handsome campaign contributions they used to make, and the political ties they once sought, now appear to be very unhealthy. And a growing number of business leaders, many of whom were once opposed or aloof to attempts to control and reform political fund-raising, are now getting behind reform proposals before Congress. such as Dr.

Herbert Alexander of rrinceton, N.J.. to develop and support campaign spending reform legislation. "Business u-ci to hold Common Cause at arm's length," said Thomas Heid, Ford's executive director for civil and governmental affairs. "Now there's a whole new attitude. We'd like to join arm-and arm with tiicm" benind campaign spending reform.

Item Specifically, there is more backing now from business for proposals to use federal funds to help underwrite political campaigns for federal office. "We're about to reach a conclusion on the need for public financing," said lleid. "There aren't too many others who want to join us yet," but he's hopeful an acceptable system can be found. Item Ray Hoewing of the Public Affairs Council, a Washington, D.C. group whose directors are top corporation officials responsible for public Suspect in killing of 2 policemen One of FBI's 'most wanted' seized Newsweek says Nixon using policy of delay NEW ORLEANS (AP) Herman Bell, 25, one of the FBI's 10 most wanted fugitives, was captured yesterday on a New Orleans street.

Bell, wanted in the killing of two New York City policemen, offered no resistance. Bell, a Negro, went before a U.S. magistrate in New Orleans and was put under a $500,000 bond. The FBI said Bell had been sought in connection with the killing of the two police officers on May 21, 1971, and also with the robbery of a branch of the Bank of America in San Francisco, on Sept. 20, 1971.

Bell was arrested by FBI agents, New Orleans police and New York City police detectives. U.S. Magistrate Morey Sear set a Sept. 12 date for a removal hearing at which time Bell could be sent back to New York for trial. Sear ruled that Bell was indigent and appointed New Orleans attorney Martin E.

Feldman to represent him. At Bell's apartment police said they confiscated $3,800 in cash, two shotguns, a .308 lever-action rifle with a telescopic sight, a automatic pistol and a revolver. Folice said one of the shotguns was a sawed-off, slide action type. Folice said they also seized several blank birth certificates, a marijuana plant, ammunition, a machete, medical supplies such as bandages and hypcr-dermics, and knives. Bell said that he had not worked in the past six months, but had saved money, lie gave a New Orleans address as his most recent residence and several San Francisco addresses.

Bell said his only prior conviction was second-degree robbery in Oakland, Calif. He said he had attended a college in Oakland for a time. Four New York City detectives had the donation was made, but the merger was ultimately rejected by the Civil Aeronautics Board. Seven companies in all have reported making donations of corporate funds a federal crime. Boportrdiy there are between three and 11 other companies that did the same.

Their names are said to be on a list of secret contributors that the White House turned over under pressure to Common Cause and the Watergate prosecutors. Disclosing the contribution, American Airlines' Spater said he "fully supported" Common Cause's campaign spending reform proposals. "I urge others in our position to come forward. I urge the business community to get behind campaign financing legislation that will really work and that will put a stop to pressures to which offices of companies are subject when solicited for campaign contributions," he said. murder indictment are Albert Washington, Anthony Bottom, Francisco Torres and his brother, Gabriel.

The slaying of the two police officers had been described by former Police Commissioner Patrick Murphy as "a vicious crime, the most vicious in the history of the police department." Jones and Piagcntini were answering a routine call to assist a sick person in the housing project. As they were leaving the area, two men seated on the hood of another car watched the officers pass them, then shot them from behind. The killers moved forward and emptied their guns into the bodies of the fallen policemen. In earlier indictments, Bottom, 19, and Washington, 21, were arrested in San Francisco Aug. 28, 1972, and convicted of the attempted murder of a policeman there.

Piagentini's police revolver was said to have been in their possession. Bell also had been named in February 1972 in a 50-state alarm in connection with the ambush murders of two more New York City policemen, Rocco Laurie, 23, and his partner, Gregory Foster, 22, in the East Village section of Manhattan on Jan. 27 of that year. Also named in that 50-state alarm were several members of the Black Liberation Army, a group reportedly dedicated to killing policemen. Joanne Chcsimard, 25, described as the soul of the BLA, was among those named and is in custody in New Jersey where she was wounded in a shootout with New Jersey state troopers last May.

She faces a murder trial in that Torres was being held in San Francisco on federal bank robbery charges, while Gabriel was in custody in New York City on a weapons charge when indicted in January 1972 for the Jones-Piagentini slayings. started a "rampage" at 10:40 a.m. yesterday, seizing three of the prison's five cellblocks and the three unarmed guards who were manning the areas. The three cellblocks house 900 of the prison's estimated 1,500 inmates. Warden J.

Russell Lash arrived at the prison later and began negotiating with the inmates, whose demands were said to include changes in mail, food, visiting privileges and disciplinary procedures. Lash, surrounded by armed policemen, was -reported in the prison yard last night sorting out prisoners' demands. Earlier he had identified the hostages as Arthur W. Jacques and Donald W. Schultz, both of Michigan City, and Sgt.

Joseph S. Kujawski of South Bend. There were no reports of injuries or damage to the prison, and the hostages were reported to be unharmed. Prison officials said they did not know how many inmates were actually involved in the cellblock takeover. They said the trouble might have been sparked by a severe stabbing of an Inmate Saturday night.

Oldest man dies at 168 MOSCOW (AP) The official Soviet news agency Tass reported that Shairali Mislimov died at the age of 1G8. Tass said he was the oldest man in the world. A farmer, he lived in the Caucasus mountain village of Barzavu all his life. Ben Wicks NEW YORK (AP) President Nixon hopes to delay a Supreme Court ruling on the Watergate tapes until he has rebuilt enough public support to be able to defy anything but a unanimous or near-unanimous decision on the case, Newsweek magazine said yesterday. Nixon announced last week he would appeal a decision by U.S.

District Court Judge John J. Sirica ordering him to produce certain of the Watergate tapes for inspection by the judge. Newsweek said it had learned that the appeal "may be little more than the opening feint in a protracted strategy of delay designed to prevent a final decision in the Supreme Court until the President feels he has got his shattered majority back together again." At that point, the magazine said, Nixon would defy "anything short of a unanimous or near-unanimous ruling" and even would be ready "to purge both At-ty. Gen. Elliot Richardson and special prosecutor Archibald Cox in the process." Newsweek said Nixon would spend the time until the Supreme Court ruling "rebuilding his public support.

"By then, the thinking goes, he would argue that any Supreme Court ruling closer than 8-1 or 7-2 in favor of Cox (who brought the suit seeking the tapes) was not the 'definitive decision' he had promised to obey; given enough public Exhaustion with Watergate, he might even get away with it." 'Soft landing (Continued From A 1) new reduced rate of growth next year at 2.5 per cent. The official government line predicting a "soft landing" has been frequently stated by Secretary of Treasury George P. Schultz, though without much detailed backup. Herman I. Leibling, a senior Treasury economist, recently spelled out some of the "strengths" in the economy that were "absent in earlier episodes" when government fiscal and monetary restraints helped turn booms into recessions: "Ongoing capital goods boom" meaning business investments in plants and equipment.

This positive factor was reinforced last week by the latest con- ference board report on capital investment appropriations by large manufacturing companies, which reached a record level in the second quarter. The appropriations precede actual invest-; ment spending. The fact that inventories have not been "overbuilt" and are not high In relation to sales. The continued strength in consumer spending, despite inflation, as indicated by the 3 per cent increase in retail sales in July. The fact that Federal Reserve monetary restraint, while "Increasingly vigorous," has not completely dried up it the an Schweitker.

and Sen. Walter F. Mondale, have sponsored a campaign spending reform bill which would provide a limited amount of matching federal funds for major federal candidates who arc able to raise a significant number of small contributions under perhaps from "I'm more convinced every day that this. is a very important element of campaign reform, in light of the sorry episodes of the past," said Anderson. Among the "sorry episodes" are the disclosures by some major corporations of their illegal contributions to the Nixon re-election committee.

American Airlines President George Spater has disclosed that $55,000 in company funds were donated to the Nixon campaign after Nixon's personal lawyer, Herbert W. Kalmbach, asked for $100,000. American was attempting to mergo with Western Airlines at the time A AP wirephoto Herman Bell glares at cameras been in New Orleans since Thursday after receiving information a week ago that Bell was in the city. Bell's wife was also booked by the New Orleans police on charges of harboring a fugitive and possession of stolen property. Their children, Jonas Bell, 21, and Richard Keith Hanna, a stepson, 5, were in the care of juvenile authorities.

Bell was the fifth man to be arrested in connection with the fatal 1971 shootings of patrolmen Waverly Jones and Joseph Piagentinl on Manhattan's upper West Side. Four others now awaiting trial on a State and local police, armed with shotguns, were rushed to the maximum security prison. Late last night the lawmen cordoned off the prison, blocking newsmen and others from determining exactly what was occurring inside. State police said dissident prisoners actors suspicion of child molestation following a five-week investigation. They were held in lieu of $100,000 bond.

In addition, three boys, aged 13, 14 and 15, were found at the scene and taken into protective custody. Police said the film-making operation used boys between the ages of 9 and 15 from across the nation. The films and photographs allegedly were sold through advertisements in underground or sex-oriented newspapers and magazines. Police said they were checking with Texas authorities in Dallas and Houston to find out whether there is any connection with an alleged ring in Texas which supplied hundreds of teenage boys as prostitutes for older men across the country. None of the boys found at the scene of the arrests was 'from Texas, but police said some of the other children used in the pornographic films apparently were.

EhcSunxclcgram A Gannett Newspaper MonddV, SBtembf 1971 JW Sn Btrnirdlno, CMforni tJ40l Advtrtuing 688U1 Other Depitmnti imliM Covering all population of 104 I6. of Sen Bernardino County with lt San Bernardino population. Pubiiehed Saluidaye, Sunday, and New Year'i Dy. Memorial Day. Fourtn of July, Latxr Day, Thanksgiving Day and ChrHtmai Day i the com-bined publication on Ihme of The Sun and Evening feieQram and The Evening Index, newv OKrerj oiiW'h'd every dav ot the year.

At newuianfls ngia copiei, centi on Sundays, id cent! on Saturday! and hoimaya. Bv carrier to tubsciiben of The Sun, 13 00 per month, per year. By cairier to fubvribera of Evening Telegram and The Evening Index, 13 uv per month, 36 00 per year. "Delivery complaint doting time a.m. By mail within San Bernardino County, 13 00 per month.

Postal Zonet 7 end per month. Member of The Aitsciated Preea. The Aitoclatea Prtii It gicluilvely entitled fo vx tor republication of all newt dupetehel credited to It or not other-wit credited in this paper and tlM tt exal newt tvolithae heron. -i i I I 1 ''11 A survey of business attitudes brought responses: Item Two prominent Washington lobbyists, speaking off the record, say that many of their colleagues would welcome relief from the kind of "arm-twisting" and pressure for contributions applied during last year's political campaign, particularly by the Committee to Jic-Klcct the President. "If I could bet out of this money-changing business it would be the best thing that could happen to me," one lobbyist said.

Item One of the nation's major accounting firms, Ernst Ernst, untouched in any way by the Watergate scandal, has nevertheless asked its partners to stay clear of political fund-raising activities and even to consider not making any sizable political contributions. Item Ford Motor Co. Is working closely with Common Cause, the citizens lobby, and experts on campaign reform Cox and Richardson are considered expendable, Newsweek said. "The White House is no longer quite so tremulous as once was at the reaction that would surely flow if the two men whom the President himself brought In to clear up Watergate mess should suddenly depart with their mission unaccomplished," the magazine said. Newsweek quoted one source as saying: "Cox couldn't have been dumped a month ago and if he quit now or was fired and if Richardson quit in protest, it would be tough to handle.

But it will be less tough further down the line." Newsweek also said that some of Vice President Spiro T. Agnew's aides report that the federal grand jury in Baltimore will begin hearing evidence this week in alleged kickback investigation involving Agnew. The magazine added, however, that "several top Justice Department sources insisted that Atty. Gen. Richardson had not yet decided whether to send the case to the grand jury." Richardson went to Massachusetts for the Labor Day holiday, Newsweek said, "seemingly without giving a decision on the Agnew affair to his staffers.

"But some insiders suspected that the starchy Richardson had made up his mind, and had passed the word to Mr. Nixon and to Agnew." The investigation involves the awarding of contracts in Maryland while Agnew was governor of that state. seen for hoom credit, as in past periods of "credit crunch." The views of government economists are not, of course, monolithic. Among the relative pessimists is understood to be Jack W. Carlson of the Office of Management and Budget, though even Carlson is not as pessimistic as the Wharton School forecast, which foresees "negligible" growth in the economy throughout 1974.

On the opposite side is William F-. Simon, deputy secretary of the Treasury and a former bond trader in Wall Street. Simon says his "instinct" is' that the main danger is not on the side of recession but rather that the boom will not cool nearly enough, which would mean continuation of serious inflation. "Demand looks awfully high to me," Simon said recently. Herbert Stein, chairman of the Council of Economic Advisers, concedes uncertainties but sees no good reason to forecast an actual recession.

He has said on several occasions however, that there could be one or two quarters ahead with growth somewhat less than 4 per cent. He is more confident than Simon that a slowdown will come. In any case there is no evidence of pressure within the government for a shift in fiscal (budget) policy towards either more restraint or towards stimulus. Canada rails rolling again OTTAWA' (AP) Canada's strike-troubled railroads began to roll for the first time in 11 days yesterday, but pickets were still up in western provinces and transcontinental service remained suspended. The largest of the striking unions, the Canadian Brotherhood of Railway Transport and Generals Workers, balked at a government back-to-work order and told its members to remain on strike.

Although many workers remained off their jobs, the railroads said its service had resumed in eastern Ontario, Quebec and the Atlantic provinces. Ferrv service between the mainland and Prince Edward Island, Newfoundland and Nova Scotia also started up again, allowing thousands of tourists to return to the mainland. Many had already taken air carriers, leaving their autos behind to be shipped. But the balking union, which speaks for 18,000 of the 56,000 nonopcrating workers who struck Canada's 11 railroads, urged its members to further study the back-to-work agreement hand-- cd down by Parliament on Saturday, prison officers held hostage i j-i- AP wirepnoio Ralph Nader 'Face the Nation' Nader wants ixon, Agnew resign NEW YORK (AP) Ralph Nader said yesterday "the country would be well served" if President Nixon and Vice President Agnew resigned. The consumer advocate said that if they don't "the country will suffer." Discussing Watergate on the CBS program "Face the Nation," Nader said "Nixon knew enough not to want to know what was going on." He said that no matter the degree of Nixon's involvement, he was not now giving leadership and "it's leadership from the White House that catalyzes the government.

"Bringing in people who don't have Watergate hanging over their heads will galvanize the nation." One good result of Watergate, Nader said, might be congressional approval of proposals for public financing of election campaigns. "In the Senate, there's an excellent chance for public financing," he said, adding that he understood Sen. Russell Long, and Sen. John Stennis, favored some form of it. "This could have a persuasive effect on conservatives." he said.

Labor Day (Continued From A 1) acknowledged "there are problems we must work together to solve," but added "we can look back over a year of real gains for all Americans." Among these, he said was a rise in employment of nearly 3 million persons. Jerry Wurf, president of the American Federation of State, County and Municipal Employes, AFL-CIO, called Labor Day "a festival of unhappiness for American workers plagued by high prices and economic chaos." Despite Wurf's claim, it didn't look like a "festival of unhappiness" as the Chamber of Commerce passed out 100,000 free cigars at Coney Island nor as stern-wheel river steamers raced on the Kanawha River in Charleston, W. Va. In another Labor Day speech, I. W.

Abel, president of the Industrial Union Department of the AFL-CIO, said American workers are "deeply concerned that their living standards, which they have labored so hard to improve through the past decade, are being threatened." He said interest rates have nearly doubled, food prices are way up and "even worse, there is no end In sight." Leonard Woodcock, president of the United Auto Workers, indicated his union would strike Chrysler Corp. later this month unless "they abandon their very intransigent" opposition to allowing voluntary overtime. But, he said on NBC's "Meet the Tress," he was still hopeful that a settlement for a new contract could be reached peacefully in the automobile industry. With most business and industry shut down over the holiday, New York State had its second day without a power cut although it was still scorching hot. Thundershowers brought some relief but a spokesman for the National Weather Service said "sometimes it feels even worse after the rain because it gets sticky." 'i J- 1 ti i 9 4.

JVll 1 MICHIGAN CITY, Ind. (AP) Inmates seized control of three cellblocks at the Indiana State Trison yesterday, taking three officers hostage to press a set of 10 demands. Negotiations continued late into the night, 12 hours after the partial prison takeover. 9. ni'PPcl rrl fm boys as 4sex' HOLLYWOOD (UPI) -Police said yesterday they were talking to authorities in Texas about a possible link to a case here in which two men were arrested for using dozens of boys as "actors" in underground sex films.

Vice officers said they were investigating a possible nationwide ring which supplied runaway boys for purposes of prostitution and film-making activities. Two men, Guy Straight, 53, Hollywood, and Melvin Cecil Reynolds, 38, Cudahy, were arrested Saturday night on f) tUM7. I MOin P'ANO KtNMORC antnm 'M (144. CO (nei ll S'n-e iii Klverjirie.JalM pAMI JSUfU TdbaWEK Porlib.t typewriter 4- I COO 4147. Jf GARAt 74M Lillian Lni1inj; rserlbtni OLIVETTI Undervaafr tiert.

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HM7W MUM. OAVEN 357 Miscellaneous OAftAGf. 5 ll" f'i't''J' Highland. e. 'm V' EF, aaaBairim1n WcKil irniHi.ii;, Xi? Mil I walnut tvilll FROT-FPFF i ll Iwiwiii WT HI Gunfire ends rock festival HOLLAND, Vt.

(AP) A rock music festival that was disrupted by a violent gate-crashing incident and gunfire closed abruptly yesterday, and most of the 35,000 young people who attended It headed home a day early. At least nine persons were injured in the Saturday night melee, four of them with birdshot fired from a shotgun, police said. Another 100 persons were arrested during the weekend, most of them on minor drag possession charges. Promoters said the weekend festival had lost $00,000. million gem robbery AMSTERDAM (AP) Four men armed with pistols and a hand grenade stole about $1.2 million in precious stones from a diamond firm here yesterday.

Officials said it was the country's biggest Jewel robbery ever. JSECny OUTATT Uft y. tr.