Arizona Republic from Phoenix, Arizona on April 4, 1969 · Page 3
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Arizona Republic from Phoenix, Arizona · Page 3

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Phoenix, Arizona
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Friday, April 4, 1969
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Page 3
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Phoenix weather Sunny and warmer today. High today 83-88, low 45-50. Yesterday's high 79, low 61. Humidity: high 43, low 20. Details, Page 13. 79th Year, No. 323 THE ARIZONA REPUBLIC KE PUB LIC MAIL Today's chuckle Remember when it was only Washington's face that was on our money? Now Washington's hands are on it, too. TELEPHONE: 271-8000 Phoenix, Arizona, Friday, April 4, 1969 (Four Sections, 60 Pages) rl Ten Cents Senate leader resigns By BERN1E WYNN Senate majority leader David Kret, R-Maricopa, resigned his leadership post yesterday in an unprecedented action after three of his Republican colleagues joined with 13 Democrats to force an Easter weekend adjournment. Kret warned the 17-member majority bloc that to vote against the leadership on a procedural motion of that kind was the same as "a vote of no confidence." The roll call on a motion by Sen. Kenneth Cardella, R-Pima, continued and the result was that all three Pima County Republicans and the 13-member Democratic minority supported the move to adjourn. A stunned silence followed. Senate President Bill Porter, R- Maricopa, finally announced that the motion carried and the Senate would return at Kret 9:45 a.m. Monday to resume the battle of the budget. "I am forced to resign." Kret told newsmen. "There can't be a majority leader if we have no majority." Asked if he would be at his desk Monday, Kret answered, "I will not." Earlier in the week, Kret urged the session to adjourn by late Saturday because he must return to his consulting engineer duties Monday in Burlington, Vt., or lose a contract. However, Porter tried to pour oil on the troubled waters, terming Kret's action "too hasty" and due to "very high tension" here today." He said he hoped Kret would reconsider. The tension built up throughout the day as the majority bloc caucused almost continually on the stalemate over increasing university operating budgets above those granted in the $297 million general ap- propiations bill. At the end of the day, the majority voted to bring the bill to the floor unchanged and with no new con- struction funds included. Only 12 of the 17 Republicans supported this move. Lacking four votes for passage of the bill, Senate leaders were hopeful that the missing votes would be supplied by the Democratic minority. But the Democrats caucused and 20 minutes later reported they wanted more time to study the bill. At this point, Cardella said he agreed and made the motion to adjourn. "I oppose that motion," Kret declared and sat down. Several Republicans passed on the first roll call to see if the Democrats would remain united and if all three Pima Republican members would support them. Kret was among these passers. When his name came up on the second go-round Kret stood and bluntly warned the recalcitrant Pima members that they had elected him the majority leader and it was their responsibility to support him on his opposition to adjournment. Continued on Page 4 Fwleral bank W ' '-,*. hikes rate as -'•• .,1.TJi?V' ' inflatioastop New York Times Service WASiHINGTON-The Federal Reserve Board', in what it called a "further move against inflation," raised yesterday both its discount rate and the required "reserves" of the nation's banks. The double-barreled step was aimed at convincing the banking and business communities that the Federal Reserve continues to mean business in its tight money policy. It was not a surprise, though there had been considerable uncertainty about what the Federal Re- servWwould do. The discount rate, the interest rates charged banks when they borrow from the Federal Reserve, was raised from 5^ to 6 per cent, the highest rate in 40 years. This move essentially followed other interest rate increases and need not lead to further increases in rates charged by banks and other lenders. Reserve requirements were raised by one-half a percentage point against demand deposits with the effect of "freezing" about $650 million of lendable funds in the hands of banks. The 6,000 member banks of the Federal Reserve system are required to hold a percentage of their funds as "reserves" with their local Federal Reserve banks. The discount rate increase, which will apply immediately at all the 12 Federal Reserve banks except Boston, was approved unanimously by the seven-man board. Gov. Sherman J. Maisel dissented from the increase in reserve requirements. According to past experience, the Boston bank soon will fall into line with the higher discount rate. The Federal Reserve's third weapon—daily buying and selling of government securities in the open market—has been used since mid- December in a fashion gradually limiting available lendable funds at the banks. inside SPACE TARGETS—U.S. radar detects Soviet target shooting in outer space. Page 3. CZECHS WARNED - Czech leader warns nation to curb anti-Soviet outbursts. Page 2. . EXODUS—Sheriff Mummert concedes mass defection from his staff seriously affects service. Page 15. CITY ZONING — Appeals court rules against Phoenix in 18th Street and Maryland zoning case. Page 15. VACCINE READIED-Vaccine against German measles may be available as early as May. Page 20. FUNDS PROVIDED-U.S. government provides $800,000 to continue Navajo legal services program. Page 41. Page Page Astrology 28 Financial 3C-38 Bridge 29 Movies 4041 Campbell 36 Obituaries 26-27 Classified 48-56 Radio Log 42 Comics 28 Sports 31-35 Crossword 23 TV Log 43 DearAbby 47 Weather 13 Editorials 6 Women 45-47 Today's prayer 0 Lord,'.who told us in reference to your death on the cross, "And I, if I be lifted up, will draw all things to myself," draw our hearts and rebellious wills to you. Teach us to see your outstretched arms on the cross as an invitation of love, and to throw ourselves into that love we so sorely need. Amen. WHO HAS SEEN THE WIND? — Puffy clouds and a spanking breeze made such ideal kite weather that Principal Roy Beach of the Mesa Lincoln School couldn't resist joining the fun at Republic PhOI» by Earl McCartntv the school's kite flying contest yesterday. His .flawless.technique was demonstrated with'a winning kite borrowed from Debbie Turley, 9, who won first place for fourth graders. Laird sees Paris talks gain New York Times Service WASHINGTON - Defense Secretary Melvin Laird said yesterday that secret talks aimed at settling the Vietnam war are under way and have shown "some sign of progress." In an interview Laird said "outside talks are going forward." He conceded that there has "not been great progress" in the "public discussions" in Paris but, he added: "Now there' has been some sign of progress in some of the private talks." Knowledgeable officials, while refusing to give details, suggested that this progress was in terms of procedural questions about what to consider specifically in private negotiations rather than even tentative agreement on substantive issues that might lead to a formal settlement of the war. Interviewed on the Columbia Broadcasting System's television news, Laird gave only one example of the kind of progress he had in mind. South Vietnamese officials, he said, have agreed to talks "along political lines with their adversaries, the National Liberation Front. So, I think there (have) been some signs of progress along that line, but I am not one to raise false hopes." It was unclear whether Laird was merely referring to the recent declaration by South Vietnamese President Nguyen Van Thieu of his government's willingness to enter private discussions with preconditions, with representatives Continued on Page 3 Canada to reduce its forces in NATO Associated Press OTTAWA - Canada will start next year a phased reduction of her armed forces in the North Atlantic Treaty Organization, Prime Minister Pierre Elliott Trudeau said yesterday. Canadian forces are committed to the European defense body until the end of this year, Trudeau told a news conference. Commitment of Canadian armed forces to NATO beyond this period "will be discussed with our allies" at a meeting in May, he added. "The Canadian government intends, in consultation with Canada's allies, to take early steps to bring about a planned and phased reduction of the size of the Canadian forces in Europe," he said. Trudeau had announced last year that Canada would reduce its air force commitment to NATO, but shelved the idea after the Soviet-bloc invasion of Czechoslovakia. His announcement of a phased reduction came on the eve of the 20th anniversary of the signing of the NATO treaty and after months of cabinet debate and speculation about Canada's future course in the alliance. Much of the speculation was nurtured by the fact that the treaty provides that after 20 years any member may withdraw by giving one year's notice. Canada has not done this. Although still a member of the alliance, France pulled out of the integrated NATO command in 1966 and made the organization move its military headquarters from French soil. In announcing his government's decision, Trudeau listed four major roles for Canada's armed forces, in this order: Protection of our own sovereignty; defense of North America in cooperation with the United States; carrying out such NATO commitments as may be agreed upon; and international peacekeeping. Canada now has about 10,000 troops assigned to NATO in Western Europe. Most of them are stationed in West Germany and comprise a six-squadron air division and a mechanized brigade. Big 4 begin Mideast talks; Israel skeptical Associated Press UNITED NATIONS - The top U.N. delegates of the Big Four powers opened talks on a Middle East peace formula yesterday and declared the Arab-Israeli dispute must not jeopardize international peace and security. They expressed agreement on that score in a communique after morning and afternoon sessions at the Park Avenue residence of French Ambassador Armand Berard. But while the U.S.-British-French-Russian statement had an encouraging tone, Israeli Ambassador Yosef Tekoah asserted: "Israel does not believe that any good can come of the talks, but that a good deal of bad has come already." Expectation of the talks "has brought about a marked hardening of Arab intransigeance," and hampered U.N. peace envoy Gunnar V. Jarring, Tekoah claimed. The tone of his remarks underlined the obstacles facing the Big Four in their efforts to cool off the Middle East. The Arabs have expressed approval of the four-power talks, but Israel has said repeatedly that the only way to lasting peace is two- way agreements between Israel and the Arab states. The communique, read to newsmen by Berard, said the four powers would meet again Tuesday and that the substance of the talks would remain private and confidential. 1 At the outset of the four-way talks, reached after more than two months of bilateral discussions, the delegates "began consideration on how they can best contribute to a peaceful settlement in the Middle East," the communique said. Continued oo Page 3 National Guard called to quell Chicago rioting Associated Press CHICAGO — Six thousand Illinois National Guard troops were ordered into Chicago last night and' a 7 p.m. curfew on persons under 21 years was imposed as authorities acted to stem an outbreak of looting, window smashing and rock throwing by Negroes in two areas of the city. Mayor Richard J. Daley halted sales of firearms, ammunition and gasoline in portable containers. Sales of alcoholic beverages were banned in areas hit by disturbances. Twenty two persons were reported injured. One Negro youth was taken to a hospital and listed in critical condition with a gunshot wound in the chest. Daley took action as disorders seemed to subside in the West Side's Fillmore police district, where serious rioting broke out two years ago and again a year ago after the assassination of Dr. Martin Luther King Jr. i However, looting and rock throwing were still taking place in the Negro area of the city's Near North Side, just west of the Old Town nightclub neighborhood. "As a precautionary measure and after recommendation of the superintendent of police I asked the governor to make the National Guard available to Chicago," Daley said in a one-page statement read to reporters in his office. The mayor emphasized the term "precautionary measure," steering clear of the line he took after disturbances devastated the same West Side area April 5, 1968 following the assassination of Dr. King. At a news conference several days later Daley publicly instructed police to shoot to kill arsonists and shoot to maim adult looters. Later he tern- Continued on Page 10 Hippie invasion in Palm Springs routed by police United Press International PALM SPRINGS, Calif. - Police armed with riot guns, tear gas, rifles, and gas masks swept through a rocky desert canyon on foot and horseback yesterday, routing hundreds of dirty, barefoot young hippies and students. The canyon dwellers were part of 20,000 young invaders who swarmed over this exclusive spa for the Easter week vacation and brought chaos with them. Many of them streamed out of town yesterday in the wake of the police crackdown. About 100 officers made the sweep through the lower portion of Tahquitz Canyon after helicopters had circled overhead warning the campers to get out or face arrest for unlawful assembly and failure to disperse. The sweep was peaceful and quiet. Police said there was virtually no resistance, although the youths heckled officers. One youth was arrested after he encouraged others to disobey the order. Many of the young intruders straggled obediently from the canyon as officers Continued on Page 10 Referral scheme State files action to chop off 'Money Tree' insurance plan By HOWARD E. BOICE JR. The state insurance department moved yesterday to block a local insurance referral operation known as the "Money Tree Program." A complaint filed in Maricopa County Superior Court alleges that the "Money Tree Program" violates state insurance laws. Presiding Judge Charles L. Hardy scheduled a preliminary hearing on the state's complaint for 9 a.m. April 17. The complaint, which attempts to prohibit use of the Money Tree as a sales incentive, was filed against International Life Insurance Co. of Louisville, Ky.; First Western Funding Corp, 2124 E. Thomas; Southwestern Advertising, Inc., and Fail-child and Associates, both of 3001 N. Central; officers of the local companies involved, and 20 agents* . All of the firms work together on the illegal insurance referral program, the complaint contends. The officers named were Anthony W. Fairchild, Charles L. Beaumont and John D. Tveidt, all of Phoenix. The complaint alleges that the defendants sold insurance under a "referral scheme" that supposedly would eventually yield the policy buyer more than the cost of purchasing the insurance policy. The Money Tree Program works like this according to the complaint: An individual purchases a 20-year endowment life insurance policy and fills out an application for employment. The policy calls for either a $500 or $1,000 a year premium. A person getting a $500 policy would be designated an "associated principal" and a $1,000 policy holder would be a "managing policy holder." They would then be paid varying amounts for each person they brought into the program by buying a policy. The commission schedule was set up on three levels in a pyramid fashion. Thus, for example, an "associate principal" who brought in a customer would be paid $100. If that customer brought in another buyer, the first "associate principal" would receive $50. If that customer brought in a fourth, the "associate principal" would make $10 on that sale. That operation violates state insurance law, the complaint alleges, because the policy used is not approved, the purchasing "salesmen" are not licensed by the state insurance department, and Money Tree Program is not approved by the state. Prosecutor fired from job for altercation with girl By JACK WEST An assistant city prosecutor has been fired from his job after being accused of kicking his way into a girl friend's apartment, city officials said yesterday. The prosecutor, Sam Costanzo, 32, of 3718 E. Glenrosa, was taken from the city payroll after being charged in the court of Justice of the Peace John Murphy with malicious mischief and forcible trespass, and after the filing of a peace bond against him. Police said the girl friend, who lives in east Phoenix, told them that she had dated Costanzo in the past but had stopped doing so, and wanted no more to do with him. Officers said she added that he came to her apartment Monday and asked to A talk to her. When she refused to admit him, detectives said she told them, he kicked open the door and then left. Police said they found the doorjamb and casing shattered, with bits of the door scattered across the room. Investigators said the woman told them that Costanzo had threatened and harassed her for weeks, and had forced his way into her apartment on previous occasions. Police refused to release the name of the woman, saying that she appeared severly shaken by her experiences and was suffering extreme emotional stress. According to the office of Justice Murphy, a summons has been served on Costanzo, ordering him to appear in court today for arraignment.

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