Galesburg Register-Mail from Galesburg, Illinois on July 19, 1973 · Page 1
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Galesburg Register-Mail from Galesburg, Illinois · Page 1

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Thursday, July 19, 1973
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Heme Paper ot. 70 Commuhltidi Showers T onight Low 70 Thunderstorms Friday HighW 'S A Better WevD9p(tper VOLUME LXXXII — 169 GALES BURG, ILLINOIS 61401 — THURSDAY, JULY 19, 1973 PRICE TEN CENTS Price Freeze rood Costs WASHINGTON (UPI) - Ex* cept for beef, President Nixon's price freeze on food was lifted today and he and his chief advisers acknowledged there will be a quick and substantial rise in what it costs to feed American families. Related Stories Pages 2 and 10 This was the element of the new Phase IV economic plan, unveiled late Wednesday, that will be most immediately felt and Herbert L, Stein, chairman of the President's economic advisory council, admitted today, "nobody is going to be very happy about what we did." "The producers are going to be unhappy we didn't lean one way and consumers are going to be unhappy we didn't lean that way," said Stein. "But that's the nature of the problem." The program also includes a Hoiv Much Higher? Presidential Warmaking Powers Cut by House WASHINGTON (UPI) — The House passed legislation Wednesday to take away the President's power to reject congressional orders to halt any unauthorized war. The measure probably.; will. not become law this yeSr since President Nixon has said he will veto it. The provision was contained in a landmark resolution that passed the House 244 to 170 to limit presidential. warmaking powers and reassert Congress' role in decisions to commit troops overseas. Will Veto Bill Nixon said the measure was "dangerous and unconstitutional" and promised to veto it-.'! The - House, although easily rejecting all amendments to meet Nixon's objections, is at least two dozen votes short of the two-thirds majority that will be needed to override a presidential veto. The War Powers Resolution, spawned by the long and furious debate between Congress and two presidents over the war in Indochina, would require a president to seek congressional authorization any time he sends comibat troops to foreign,<• soil or "substantially enlarges"""., the . number' of American forces in a foreign land. If he does not get congressional approval within 20 days, the troops would have to be withdrawn. Key Provision But the" key provision hi the bill would permit Congress, at any time, to end U.S. involve­ ment in a war that it has not authorized by passing a concurrent - resolution ordering it halted. This type of resolution does not require a president's signature to become law. The controversial provision is the House's response to Nixon's veto last month of an appropriations bill that contained a clause — approved by overwhelming majorities in both houses—cutting off funds for the bombing of Cambodia. The veto threatened a constitutional collision, but this was resolved when Congress sanctioned continued bombing until Aug. 15 and the President agreed to termination of U.S. involvement in the Indochina War on that date. Phase IV at a Glance: Profits Will Be F rozen By United Press International Phase IV at-a-glance: The Phase IV economic plan, a sector-by-sector approach, generally freezes profits instead of prices, and returns wages to the same mandatory controls used in Phase II. The particulars: Wages—The same as under Phase II—increases limited to 5.5 per cent, plus 0.7 per cent for fringes. Food—Except for beef the food price freeze ends immediately. Beef prices will be unfrozen on Sept. 12. Industrial and service sector—Price freeze remains until Aug. 12 when all increased costs will be passed through on a dollar-for-dollar basis. Wholesale and retail non-food—Price freeze remains until Aug. 12, when increased costs will be passed through on a dollar-for-dollar basis. Petroleum—Price ceiling for crude oil continues; ceiling prices on gasoline, diesel fuel and heating oil will be established Aug. 12. Health—The price freeze ends immediately, with a new price control program to be developed no later than Oct. 1. Where to Find It 2 SECTIONS Amusement 6 Bushnell 21 Business News 14 Classified Ads ..26-27-28-29 Comics-Radio 20 Editorial _ — 4 Galva 21 Hospital Notes 15 30 PAGES Knoxville - 25 Markets 22 Monmouth 24 Obituary 15 Sports 18-19 Weather 2 Women in the News .. 8-9 continuation of controls on wage increases to about 5.5 per cent and stipulates that a business firm can raise certain prices only so much as production costs increases. Besides most food, the price freeze imposed June 13 was lifted immediately on health care fees. It was the food segment of the program that drew the greatest attention, from the President on down. In a write-in statement, Nixon said, "There is no way, with or without controls, to prevent a substantial rise in food prices." Stein echoed this today. "My personal view is that we will have a bulge over a period of some months," he said, but like Nixon he insisted the price rise would be much less in the latter part of the year and continue to level off in 1974. Meat Supply "Nobody is going to be very happy with what we did, we're sure of that," said Stein. "It is clear that the big increase in the supply of meat is about a year off because we have this fall the big increase in the crops of corn and soybeans — the things that animals eat — and it takes a year for the animals ... to come to market. "But the whole process that we are engaged in is one of a delicate balance in our interest in restraining the prices and our interest in getting the output out." John T. Dunlop, chairman of the Cost of Living Council, and Stein both refused to predict how much food prices would rise, although a food chain spokesman forecast a 4 to 5 per cent jump in the next two months. The expectation is that by the time housewives do their weekly shopping at the supermarket, next week, they will see the effects of the removal of the freeze on food prices. The freeze on beef lasts until Sept. 12. Stein and Dunlop were interviewed on the CBS-TV Morning News program and Shultz on the ABC-TV Today show. Less But Greater Nixon said in his statement that food price increases in the latter part of 1973 "would be less than in the first half of the year but greater than anyone would like." He still vowed to "do everything in my power," to end all economic controls by the end of this year. But he said a "move to freedom now would most likely turn into a detour back into a swamp of even more lasting controls." Wages Under Controls The statement said wages will be under mandatory controls in Phase IV—just like those in Phase II. Rents, interest rates and small businesses with 60 or fewer workers would be exempt. Consumers should begin to see these effects of Nixon's new policy: —Grocery prices will probably begin to escalate in a week, as wholesalers and retailers begin adding on the costs they absorbed during the freeze. —Every gasoline pump at retail service stations will be required, by Aug. 12, to have a sign listing both ceiling prices and octane rating. —Telephone, electricity and natural gas rates will be free to climb although increases still must win approval of local regulatory commissions. In order to prevent a sudden surge in prices, Nixon ordered the freeze lifted piecemeal. Food prices—with the exception of beef—iplus doctor, dentist, hospital and other health care fees arc immediately exempt from the freeze. Doctors Report President Has Completely Recovered Soviet Grain Deal Investigated WASHINGTON (UPI) - Sen. Henry M. Jackson, D-Wash., said today he had evidence the Agriculture Department knew in advance about last year's $1 billion Soviet grain deal and that big U.S. grain firms falsified their reports to the government on the deal. On the eve ' of a series of hearings by his Senate Permanent Investigations Subcommittee, Jackson said the evidence he has thus far uncovered on the 1972 deal could prove that parties to the deal had violated federal laws. Sworn Affidavits "We have sworn affidavits at this point that Agriculture was advised of the sales" before they occurred, he told a news conference. The Agriculture Department has denied having advance knowledge of the sales, and a Ge n e r a ] Accounting Office investigation earlier this month found mat officials didn't know how much grain the Russians were buying from the American companies. Jackson further said there was "strong evidence" that the U.S. firms tried to keep the sales secret by "falsifying their reports to the Commodity Exchange Authority. "The evidence our investigation .has turned up thus far leads me to conclude that the Department of Agriculture — and especially the Commodity Exchange Authority — encouraged secrecy in their dealings with the grain companies and the commodity exchanges." Information also uncovered by his subcommittee, Jackson said, provided "substantial evidence" that the Agriculture Department kept vital information about the failure of the Russian wheat crop "secret (from American farmers) while in fact issuing misleading reports on overseas conditions and an anticipated domestic surplus." WASHINGTON (UPI) President Nixon's doctors say he has completely recovered from viral pneumonia and is looking forward to resuming his full White House schedule next week. The 60-year-old President will be released Friday morning from Bethesda Naval Hospital where he has spent the past week. A helicopter will be waiting on the hospital grounds to fly him to Camp David, his Maryland mountain retreat, where he can relax in seclusion this weekend. In a morning medical report, the President's doctor said his temperature remained normal and no further treatment will be required today. Spending Last Day Spending his last day in the lioapital, Nixon will alternate meetings w^'h members of his staff and rest intervals to continue his recuperation. Press Secretary Ronald L. Ziegler said that Nixon will be was working on his appointments j committee's request for schedule at his hideaway and will return ito Washington Monday. Will Receive Shah On Tuesday he will receive the Shah of Iran with a full ceremonial welcome and a state dinner in tihe evening. Now that he has bounced back to his good health, it appeared likely for him to set a date for the meeting with Sen. Sam J. Ervin Jr., D-N.C, chairman of the Senate Water- ( gate Committee, Which had been arranged before his illness. Seeking to avoid a constitutional confrontation, Ervin has said he will seek Nixon's cooperation in turning over documents and tape-recordings involving the President and former White House aides implicated in tihe Watergate scandal. For two days running, Ziegler has steadfastly declined to say whether Nixon will yield to the| the- still tapes, saying tlhis under discussion. The press secretary also has declined to comment on.wheth­ er the President will continue the practice of taping his own conversations for a historical record and, if so, whether lie will abide by titoo Federal Communications Commission's tariff regulation requiring that an audible "beep" be sounded at 15-seeorud intervals during any taped telephone call. The President had his latest X-ray Wednesday afternoon, and it showed has lungs were clear of congestion. He will have more tests today, but his doctors say that all physical signs arc normal now. Nixon kept a restful schedule Wednesday, conferring only with members of his staff. His daughter and son-in-law, Julie and David Eisenhower, also spent two hours with him in the early evening. Later Julie said, "He's feeling better." LaRue Says Magruder Knew About Break-In WASHINGTON (UPI)Frederick C. LaRue testified today he . believed that Jeb Stuart Magruder, deputy director of President Nixon's reelection campaign, knew in advance that tihe Watergate break-in would occur in the early morning hours of June 17, 1972. "That would be my assumption, yes sir," LaRue replied under questioning during his second day of testimony before the Senate Watergate Committee. Taken by Surprise During an appearance before the committee in June, Magruder left the impression that he was taken by surprise when word reached him on June 17 of the break-in and the arrest of five persons in the Democratic National Committee headquarters at the Watergate building. LaRue, who agreed to plead gyilty to a charge of conspiring to obstruct justice and is expected to testify for the prosecution at any future Watergate trials put Magruder's account in a new light. He said Magruder received a telephone call about the break- in during breakfast in Los Angeles, he returned to the table and told LaRue that "last night was the night" for the wiretap and bugging. Sen. Howard H. Baker, R- Tenn., asked LaRue if he was under the impression Magruder had advance knowledge that the entry would take place. LaRue said he was." LaRue said Magruder "made that statement (about "last night") to me as an aside," without making it to other high campaign officials who were there at the same breakfast table. In his sworn testimony before the committee, Magruder did not specifically acknowledge or de^ny advance knowledge of the bugging. Magruder related being with LaRue and others ait breakfast in Los Angeles when he got a telephone report on the arrests, including that of James W. McCord Jr., then security chief for the Nixon campaign organization. "I blanched, (to say the least," Magruder testified June 14. LaRue disputed a suggestion by another committee member, Sen. Daniel K. Inouye, D- Hawaii, that Watergate burglary planning sessions always seemed to have occurred at sites near where President Nixon was staying. Final Approval Inouye called particular attention to a March 30, 1972, meeting attended by LaRue, Magruder and John N. Mitchell at which Magruder testified final aipproval was given to the plan. The meeting was said to have taken place at Key Biscayne, Fla. LaRue said the site had no significance and President Nixon was not at his Key Biscayne compound at the time. Inouye had asked whether it was "coincidence that the President was nearby" when the bugging plan allegedly was approved. Cox on Capitol Hill During a recess in this morning's hearing, Samuel Dash, chief committee counsel, noted that the special Watergate prosecutor, Archibald Cox was visiting Capitol Hill today but Dash said he did not know why. The Cox visit could be in connection with the committee's efforts to obtain tape recordings of President Nixon's White House conversations in two of his offices. Cox is said to have submitted his own request •to the White House for the tapes. Watergate Tableau Senate Watergate Committee Chairman Sam Ervin, right, confers with some of his committee and staff members during the hearings Wednesday, Left to right are: Sens. Howard Baker, R-Tenn., and Lowell Weicker, R-Conn., assistant counsel Terry Lenzer, and assistant counsel Rufus Edmisten. UNIFAX

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