Galesburg Register-Mail from Galesburg, Illinois on July 18, 1973 · Page 1
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Galesburg Register-Mail from Galesburg, Illinois · Page 1

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Wednesday, July 18, 1973
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Home Paper of 70 Communities Partly Cloudy Tonight LawW-ffr Showers Thursday High m A Better lVete»paper VOLUME LXXXII — 168 6ALISBURG, ILLINOIS 61401 — WEDNESDAY, JULY 18, 1973 PRICE TEN CENTS 4 , 'it; Watergate Agent Tells Story of Troubles llllliill ji'ftejlllllllllil WASHINGTON (UPI) - The demands of the original Watergate conspirators for money— apparently to guarantee their silence—mounted to $450,000 by late last summer, an ex-New York City policeman hired to make the payments testified today. Anthony, Ulasewicz, in an often-humorous return appearance before the Senate Watergate Committee, told of carrying around large bundles of $100 bills tied up in brown paper packages "just like I was carrying my lunch." In all, Ulasewicz said, he delivered about 1220,000 to the seven men charged with the bugging of Democratic party headquarters last year on the instructions of Herbert W. Kalmbach, President Nixon's former personal attorney. Kalmbach was the man who raised the cash. Kalmbach testified before the committee's nationally televised hearings earlier this week he had been told by high White House officials the money was for support of the men and their families and to offset their legal fees. Ulasewicz detailed a complex cloak-and-dagger story involving use of aliases, secret calls from telephone booths and money drops in airport lockers and even behind a bank of cigarette machines. He said his prime contact after several false starts was Mrs. E. Howard Hunt, the wife of one of the bugging conspirators. Mrs. Hunt was killed in a Chicago plane crash Dec. 8. Her purse containing $10,000 in cash was found in the wreckage. According to Ulasewicz, he was under orders from Kalmbach not to do any negotiating with his contacts. But he said Mrs. Hunt kept "getting her bit in" whenever he talked to her through last summer, demanding more and more money for her husband and his codefendants. "Did you ever total up how much Mrs. Hunt was seeking?" asked Terry Lenzner, an assistant committee counsel who led off the questioning. "Yeah," Ulasewicz replied. "It was in the vicinity of $400,000-$450,000." By September, he said, Mrs. Hunt told him that some of the men were "getting uneasy, | getting nervous" about their approaching trial and that more money "certainly would alleviate the situation." Her demands, he said, included $23,000 for defendant Bernard L. Barker, a Miami realtor who recruited three Cuban-Americans for the bugging team —$10,000 for bail money, $10,000 "under , the tabic" and $3,000 for "other expenses." Ulasewicz said Barker was hinting to Mrs. Hunt that "other people might be involved down South" who would need help. Kalmbach finally approved, according to Ulasewicz, bloc payments to all seven men to cover the five-month period from the June 17, 1972, bugging arrests until after the November election—$15,000 each to Hunt, G. Gordon Liddy and| James W. McCord Jr.; $6,000 to Barker; $4,000 to BYank A. Sturgis and $2,000 each to Virgilio R. Gonzalez arid Eugenio R. Martinez. In addition to the support payments for the bugging squad, Ulasewicz said, Mrs. Hunt sought hefty amounts for attorney's fees —$25 ,000 each for Hunt's, McCord's, Liddy's and Barker's lawyers and $10,000 each for the lawyers of the other three men. The "Miami Four," as they, became known, were represented by a single attorney. Ulasewicz testified that when Mrs. Hunt's demands rose to $450,000, he urged Kalmbach that they both should get out — "desist" from meeting further demands. Ulasewicz, who was recruited as Kalmbach's money-dispenser by former White House aide James J. Caulfield, said he warned Kalmbach not to get involved in the details of how the money was distributed, that it would be better if Kalmbach were kept in the dark. "Washington is a sieve," UlaseWich said he told Kalmbach. "If it leaks out, you'll feel I failed your trust." Kalmbach, President Nixon's personal lawcr until last May, testified he distributed $220,000 through Ulasewicz to the defendants, but insisted he had no knowledge the money was for anything but "a moral obligation" to pay tho defendants' legal fees and to support their families. World Traveler On the last lap of a 3 year around-the-world bicycle odyssey that has taken him to 42 countries, Wiegand Horst Lichtenfels makes a stop in Okawville before peddling on to Washington. Since the time he left his mother's home at Wiesbaden, Germany more than three years ago, he has pedaled the same bike for more than 47,000 miles without a mishap other than a flat tire. The 31-year-old Lichtenfels, a writer, wanted to see the people of the world so he could write about them. On the trip with him is his dog Snoopie. UNIFAX Where to Find It 4 SECTIONS Abingdon ... ..... 31 Amusement —~ 6 Bushnell 7 Classified Ads ..32-33-34-35 Comics-Radio ..—— 17 Editorial 4 Food Section 20-26 Galva —. 7 36 PAGES Hospital Notes 9 Knoxville 31 Markets .-. .. 27 Monmouth 16 Obituary _ 9 Sports —- 29-30 Weather 2 Women in the News 11-12-13 Phase TV To Be Revealed L^i ^^^ : '0t »lson Wanted Bug WASHINGTON (UPI)Frederick C. LaRue is prepared to testify that pressure for approval of plans to wiretap Democratic headquarters at the Watergate came firom Charles W. Colson, then a special White House counsel, informed sources said today. LaRue, who.was a special assistant to John N. Mitchell at the Committee to Re-Elect the President (CRP), agreed to plead guilty to a. charge Of conspiracy to obstruct justice on June 27 and is expected to give evidence for the prosecu­ tion at a future trial of those involved in the Watergate cover-up. A summary of what LaRue has told Senate investigators in private interviews —and is prepared to say, in public —was made available to UPL A summary of LaRue's story showed he was ready to testify tihat he was present in the spring of 1972 when Colson telephoned Jeb Stuart Magruder, deputy Nixon campaign director, "and raised hell" because Magruder had not yet given the go-ahead for the bugging budget presented by G. Gordon Liddy. Magruder testified alt the Senate hearings in June that Colson had urged approval of the bugging plan by Liddy, then counsel for CRP. Before! the Watergate plot was okayed, "Colson called me one evening, and said, would we get off the Stick and get Liddy's ' plan approved," Magruder testified. In an interview with CBS News in June, Colson'said that telephone'call "had nothing to do with Watergate." Colson said that the allegation that it did "caused me to take a lie detector test to try to prove the negative." Liddy, alleged mastermind of the break-in, was convicted last January after the trial of the original Watergate defendants. Colson has denied any role in planning the wiretap operation. John W. Dean, former presidential legal counsel,, testified last month before the committee that Colson draw up a White House list of political "enemies." WASHINGTON (UPI)President Nixon today replaces his controversial, price freeze with Phase. IV economic controls—a new set of wage-price restrictions designed to curb the explosive rate of inflation and return the nation to a freer market economy. Treasury Secretary George P. Shultz will reveal the contents of the Phase IV program late today following the close of the stock market. Cabinet members and congressional leaders get a preview earlier in the day. Nixon approved the controls package Tuesday from his hospital bed at Bethesda Naval Medical Center,, but will not participate in the actual announcement. The administration apparently has ruled out a tax increase as part of Phase IV and is banking on continued strict control of federal spending to keep the budget in line. Program Will Be Tough Administration officials who designed Phase IV promised the program will be tough. At the sarnie time, they conceded that prices, stalled for the past month by the freeze, will take off again. v However, the Republicans are counting on the revamped controls and a slowdown in the overall economy, plus increasing supplies of food, petroleum and other crucial commodities, to keep prices from soaring as fast as in recent months. The freeze may be continued on some parts of the economy in "the initial weeks of Phase IV, while other sectors will be allowed to raise prices within certain guidelines and a few industries will be freed from controls altogether. Wages will be controlled and will probably be held at the 5.5 per cent annual increase guideline that has prevailed since November, 1971. Many elements of Phase IV should remind Americans o Phase II, the stabilization program that governed the economy throughout 1972 ana ho!|pcd give the United States the lowest inflation rate of any of the world's major industrial nations. For example, large companies will again face a formidable set of restrictions including advance notice to the government before raising prices and restrictions on profit margins and cost pass-throughs. A key question is whether companies will be allowed a quick catclvup from the inequities of the freeze, which would result in a sharp price "bulge," or whether increases will be allowed only in modest increments in order to spread out Ihe inflationary impact. Nixon Resumes Full Work Schedule WASHINGTON (UPI) Bouncing back fast from his bout with pneumonia, President Nixon was reported so anxious today to get back to fulltime work that he is trying to get an okay from his doctors to leave the hospital by Thursday. In a noon J hour report, however, Dr. Walter Tkach said Nixon had agreed to remain in the hospital until Friday. Tkach, the President's personal physician, said Nixon "is a well man" but may still feel some faitigue in his recuperation. Tkach said all the chief executive's physical signs are normal, his chest is completely clear of congestion and his temperature has been normal for two days. The President's doctors reported he had shown "no untoward effects" from resuming a heavy work load Tuesday but they want him to stay at Bethesda Naval Hospital until Friday before taking a weekend rest at Camp David. Pressing for Release Senate Republican Leader Hugh Scott, who visited Nixon Tuesday night with Democratic Leader Mike Mansfield, said Nixon told them, "I feel well enough to get out right now" and was pressing his doctors for release Thursday. Nixon's doctors have cautioned him to go slow on his return to work lest he relapse, and Scott said "I urged him to take it easy." But Scott said Nixon replied, "Nothing doing —I'm not going to slow down ... I feel fine. I have a lot of work to do and I want to get back doing it." Scott said Nixon "looked great" and Mansfield agreed. "He's coming along fine and anxious to get out," said Mansfield. A 7:45 a. m. EDT report on Nixon's progress in recuperating from the pneumonia attack that sent him to the hospital last Thursday night said he was relaxed Tuesday during meetings with economic advisers, congressional leaders and Vice President Spiro T. Agnew. Agnew reported him in particularly good spirits. Despite doctors' warnings that he should take it easy, Nixon was plunging back into an almost normal working schedule from his hospital bed. He made the crucial policy decisions on the Phase IV economic controls program when he met Tuesday with Treasury Secretary George P. Shultz and" other ranking domestic advisers. The program will be announced today. Nixon's Watergate attorneys, Leonard Garment and J. Fred Buzhardt, also conferred with the President on the Senate Watergate Committee's request that he turn over relevant tape recordings of conversations in his office with former White House aides implicated in the scandal. GOP National Committee Is in Financial Distress WASHINGTON (UPI) - Nine months after its presidential ticket won landslide re-election, the Republican party's national committee is in such financial distress that it is firing 25 per cent of its staff and its chairman is taking a 10 per cent pay cut. Without blaming its problems on the party faithful's reaction to the Watergate disclosures, the GOP national committee said it was making the cuts now because a drop in expected contributions so far in 1973 indicated a $1 million deficit by the end of the year. The effect of the staff reductions will be to eliminate 30 to 35 jobs, spokesman Robert Rousck said Tuesday. National committee chairman George Bush is voluntarily making a 10 per cent cut in his $42,500 yearly salary, Rousek said, and some other committee officials also were taking pay cuts. Rousek said small donations —under $100—actually were up compared to last year, but there had been a decline in larger contributions. As a result, the committee's financial officials projected a shortage of more than 20 per cent to meet the original $5.5 million 1973 budget. The reductions come at a crucial time for the national committee. Bush has just completed an organization for the 1974 congressional elections, in which the GOP had hoped to make a strong bid for control of both the House and Senate. Even before the retrenchment was announced, it had quietly dropped a plan to mount a vigorous candidate recruiting program in advance of the 1974 campaigns. There have been some suggestions from Republican leaders in the states that the Committee for the Re-Election of the President turn over its 1972 campaign surplus—estimated in some quarters as more than $4 million—to the national committee. But Bush is understood to feel that this would not be advisable at a time when the re-election committee is involved in damage suits claiming millions of dollars arising from the Watergate affair. The first sign of GOP fund-raising problems came earlier this year* when a party fund-raising dinner, planning to bring in $2 million, was scaled down to a $1 million goal and actually realized about $750,000. Divers Find 'Lost Continent' CADIZ, Spain (UPI) - A group of American explorers, teachers and students who said tihey may have found the missing, possibly legendary, continent of Atlantis said today they will detail their evidence Friday. "It's probably the greatest discovery in the history of the world," said Mrs. Maxine Asher, an American audiovisual specialist, "and will begin a new era of research in anthropology, archaeology and underwater sciences." Atlantis was, according to legend, the cradle of a supercivilization that sank beneath the waters of the Atlantic Ocean thousands of years before the birth of Jesus. For centuries, explorers have sought proof Atlantis really existed. Two days ago, six scuba divers, part of a 70-member American team, began their quest for Atlantis off Spain. The first result of their success was announced Tuesday by Mrs. Asher, the co-director of the search. "It sounds ridiculous," she said, "but I think we've found the lost continent of Atlantis." The group is sponsored by Pepperdine University of California and arrived 10 days ago to make a six-week survey off the coast of southwest Spain, seeking Atlantis. So far, members of the expedition have been careful to avoid saying too much about their find or its location. Mrs. Asher said more detailed information about the discovery would become public Friday, possibly illustrated by underwater photographs, after team specialists study the findings from geological, archaeological and psychological views. "I firmly believe .that what we have found is pre-Roman or Phoenician in origin and that's the basis we tre now working on," said Efferton Sykes of Britain, an authority on Atlantis. , Mrs. Asher, who with some other members of the expedition is a spiritualist, partly attributes their success to - "good vibrations." "The people of Atlantis," she said, "were very psychic and so are many of us. The vibrations between us were very strong, there were strong psychic feelings of where to dive. It was as if we were being pulled by some psychic force." Cat Nap The "King" of an Atlanta tourist safari doesn't try to hide his boredom with watching the people go by. He just yawns and waits for his dinner and takes a snooze in the balmy afternoon sun. UNIFAX

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