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House staff report on Watergate caper adds new twist WASHINGTON Money from Mexico linked to the Watergate affair was part of $700,000 in secret Nixon campaign gifts stuffed into a suitcase and rushed to Washington in an oil company plane last spring, according to a confidential House staff report. The document, distributed Tuesday night to members of the House Banking Committee, also said a .Southwestern fund raiser for the President's campaign had contradicted denials of involvement with the Mexican transactions by chief Nixon fund raiser Maurice H. Stans. Committee investigators said they were unable to determine if the money— $100,000 in all— actually came from Mexicans or from U.S. citizens living in that country. Rut they said that on the surface it appeared the money was from foreign nationals and, if that is true, accepting it is a violation of U.S. banking laws. The 58-page report, compiled during the past several weeks, both adds to the bizarre developments in the Democratic headquarters bugging case and vividly describes last-minute efforts by Nixon fund raisers to beat the April 7 deadline of a new elections law requiring full d i s c 1 o s u r e of' campaign donors. Despite a stern warning by committee Chairman Wright P a t m a n , D-Tex., against releasing the report to newsmen, a copy was obtained by columnist ' Jack Anderson who made it available to The' Associated Press. A new disclosure in the re- port Is that a total of $100,000 came v from Mexico. Previously it was known that $89,000 linked to the Watergate affair was made up of four checks drawn on a Mexican bank. Patman told committee members in a covering letter: "The $89,000 of Mexican bank checks which went into the Republican campaign and then into the account of Bernard Barker, one of the suspects in the Watergate burglary, raises tremendous questions for the committee. "It appears that the Com- mittee to Re-Elect the President and its allied groups are willing to go to any lengths to conceal the identity and the origins of these checks." It has previously been learned that the four checks drawn on the Mexican bank passed through the hands of Stans and other Nixon committee officials, then wound up in Barker's Miami bank account. But the report provides the first account to challenge the original contention of Stans that he knew nothing about transfer of the funds which came from or passed through Mexico. The report gives this account: In late March and early April, a group of Nixon fund raisers in Texas, headed by William Liedfke, president of the Pennzoil Corp.. were collecting contributions in the Southwest. Liedtke told committee investigators he was approached by Robert Allen, president of Gulf Resources and Chemical Co. in Houston a n d Texas fund-raising chairman for Nixon, who told Liedtke he could "raise United States money in Mexico" for the campaign. Liedtke told investigators he talked by telephone April 3 with Stans to find out if there were any legal problems with obtaining such funds from Mexico. Liedtke said Stans told him he would check. That afternoon or the following morning, Stans told Liedtke it was "okay to bring the money to Washington," Liedtke told the investigators. On April 5, a messenger brought a large pouch to ALTON EVENING TELEGRAPH Vol. 137, No. 205 Serving Madison, Jersey , Macoupin, Greene and Calhoun Counties Alton, Illinois, Wednesday, September 13, 1972 6 SECTIONS 68 PAGES Alton Teleprnpli Printin.!? Co.. l<)72 Revenue-sharin enate Price lOc Est, Jan. 15, 1836 By JOE HALL Associated Press Writer WASHINGTON (AP) — A $33,(i-billion revenue-sharing bill, one of the landmark m ea s u i- c s of the 92nd Congress, has passed the Senate 03 to 20 despite the misgivings of many members. The bill was approved Tuesday night after a 12- hour session and sent to conference with the House to iron out major differences in the versions passed by the two branches. Sen. Russell B. Long, D-La., Senate manager of the bill, said he. hopes the conference can begin Thursday and can reach quick agreement. If that happens, the first payments to 39,000 eligible states, cities, counties and townships could be sent out. by the federal Treasury in October. Several senators said they could not conscientiously vote for the bill at a time when federal deficits have mounted to $100 billion in four years. But, in an election year, the majority took the opportunity to help put into effect the first broad program to turn back federal tax revenues to state and local governments on a no-strings basis. The major difference between the Senate and House bills involves the formula for distributing the funds. The Senate bill generally favors the poorer, less$20 million hike sought by CIPS By BILL LIIOTKA Telegraph Staff Writer Illinois Commerce Commission hearings resumed today in Springfield into proposed rate increases for Central Illinois Public Service Co. that total $20.1 million in gas and electricity. The Springfield-based utility which serves Greene, Calhoun, Jersey and Macoupin counties in the Telegraph area is asking for an across-the-board 18 per cent hike in electric rates. At the :-:ame time, (he company is seeking a 10.6 per cent increase in gas rates. CIPS is the third Telegraph area power company to seek substantial rate- hikes. Union Electric currently has a request for a 25 per cent increase in electric rates before tin- ICC while Illinois Power Co. i.s asking for a IS per cent electric rate hike from th<; commission. In dollar amounts, CIPS is seeking a S1H.8 million annual revenue hike for electricity and $3.3 million for gas. ICC Examiner Charles Kenney said two were scheduled examine company attorneys to cross witnesses today on their need for the rate increase. R a n d a 11 Robertson of Granite City and John Meyer of Danville are representing large power consumers opposed to the rate increases, Kenney said. Among the opponents to the rate hike are both Southern Illinois and Western Illinois Universities. Industries which have announced their op- p o s i t i o n include Allied Chemical Co., Central Soya, and Missouri-Portland Cement. CIPS filed its proposed rate hikes last April and initial hearings were conducted in June. Kenney said mayors from seven central-Illinois cities testified against the rate increase June 23. The hearings which began today will continue Thursday and Friday. Additional hearings on the rate case are scheduled for September 27 through Sep- tembi'i- 29. MDs on duty at night in Wood River Hospital By BILL McFA»»lN Telegraph Staff Writer Wood River Township Hospital has become the first hospital in the Alton area to have doctors on duty in the emergency room on a regular schedule. The hospital's board of directors announced today that a contract had been signed with Physicians' Placement Group of St. Louis for emergency room service from 6 p.m. to 6 a.m. Monday through Friday and 24 hours daily on weekends. The doctors are licensed to practice in Illinois, according to the board's statement, released this morning. Board President Beaumont Parks was not available for comment this morning, but in a prepared release said he had "sincere hopes this service will provide care to individuals that need medical attention at a critical lime and will give them t h e assurance that a doctor will be in attendance. "The ultimate goal of the hospital in serving the community is to make available to its people the health services they are entitled to receive and we feel this is a step in that direction." The board approved at its last meeting Aug. 16 negotiating a contract with the doctors' group, but did not approve its signing. Fred Alsberg. former president of the board said he could not release the figure on how much the hospital would pay for the service. The new service will start this Friday. Until now, doctors were available on an "on call" basis, being called to the hospital whenever there wa.s an emergency That will still be the case from 6 a.m. to ti p.m. Monday through Friday. populous states; the House measure the urban, industrialized ones. However, the Senate version gives more than the House bill to the central cities and much less to the suburbs. WASHINGTON ( A P ) Illinois Sens. Adlai Stevenson, a Democrat, and Charles Percy, a Republican, voted Tuesday with 18 other senators who attempted but failed to block passage of a $.'i;i.(i billion federal revenue sharing bill. The measure was passed in the Senate 63-20. Under the House-passed measure, Illinois would get $301.8 million while the Senate allocation would be $2S0.9 million, for the first year revenue - sharing is in effect. Another important difference lies in a provision added by the Senate Finance Committee which chose the bill as a vehicle to try to halt the spiraling cost of social services for welfare recipients and potential recipients. This provision, as shaped in thd final bill, would limit the program to $1.6 billion. The ceiling compares with $4.6 billion which the administration estimates the states will seek this year under the present open-ended program. The provision would drastically curtail social services now provided in many large states. Some senators from these states said their constituents actually would lose under the bill because they would be cut more on social services than they would get from revenue sharing. These senators sought to change the distribution for- mula to get more for industrialized states, but failed because the bill, as it came from the Senate Finance Committee. bene'-'Mjd 33 states, compared with the House version, while only 17 were losers. Long, however, conceded that the $1.6-billion aocial- services ceiling might be raised in the conference with the House. Opponents of the legislation argued not only that the federal government hasn't the money to pay for it but also that local officials might fritter much of the money away. They emphasized that the legislation would provide no great relief because it would amount to an average 4 per cent of local budgets. The program would be retroactive to last Jan. 1 and would end Dec. 31, 1976. In each version, the states get one-third of the money, the cities and other units two- thirds. The House bill would bar use of the funds for education, school busing and welfare, and specify use in such broad fields as police and fire protection, sanitation and public transportation. Thee restrictions were eliminated in the Senate version. WASHINGTON (AP) — Illinois Sens. Adlai Stevenson and Charles Percy voted with the minority Tuesday as the Senate adopted an amendment to the revenue sharing bill which puts a $600 million annual ceiling on the social services, day care and family planning programs. The vote was 60-28. SteVenson, a Democrat, and Percy, a Republican, voted against the amendment offered by Sen. Russell B. Long, D-La. Ranger opens fire South Vietnamese Ranger fires his M-16 at a suspected North Vietnamese position today during fighting in a village near the district town of Que Son, southwest of Da Nang. North Vietnamese started an offensive in the area about a month ago and government troops are slowly regaining lost ground. (AP Wirephoto) Liedtke's Pennzoil office in Houston and opened it in the presence of Liedtke and Roy Winchester, a Pennzoil vice president The agent deposited four checks totaling $89,000 from Banco International of Mexico City and 110 one- hundred dollar bills on Liedlke's desk. The agent asked for a receipt but didn't get one. Winchester and Liedtke told investigators that "in the fund-raising business you don't deal in receipts." Soon after the agent left, the cash and checks were packed in r. suitcase with other funds collected by the fund raisers. Late that afternoon, less than 36 hours before the new federal law would go into effect, the Pennzoil officials, said the report, took the money to the Houston Airport to a waiting Pennzoil Company plant. Arriving in Washington late that night., Winchester and another Pennzoil employe who was "riding shotgun" on the funds turned the money over to Hugh W. Sloan Jr., then committee treasurer. Patman's investigators said they questioned Stans Aug. 30 and that he denied knowledge of the transfer of any campaign funds to Mexico. If funds were transferred, Stans said, these were decisions of Island police capture 3 in murder case FREDERIKSTED, St. Croix V.I. (AP) - Police surrounded a house in this small town and without a shot captured three men wanted for the murders of eight persons at the Fountain Valley Golf Course. "Please don't kill us," begged one of the three tearful fugitives who surrendered Tuesday to FBI sharpshooters and police who had gon« to the house on an anonymous tip. Taken into custody without, incident were Ismael Labeet, 23, Warren Salientine, 23, and Ralphael Joseph, 21, who face murder charges in connection with the slayings a week ago today. Greene's new jail will look like modern home Inside Editorial .... A-4 Integration solutions confused. Sewers . Rosewood capacity. to check . A-3 Alton's Personal Finance . . B-5 Don't hold your breath on inflation. Police A-2 10-year department veteran suspended. Spoils A-6 East race in American League is sizzler. Family A-ll Avenues of Fashions. Amusements Dl Weather Cloudy Thursday, high 85. Television . . 'Comics Obituaries . . Stocks . . . Classified . . Mind Your Money Fluoridated foam. Low C-10 70; C-9 D-8 D-3 D-3 D-3 B7 CARROLLTON - Greene C o u n t v , with a total population of 15,000, will have the most modern jail in the entire Telegraph area and it will look like another new house going up in the middle of a residential area. "I could look at that all day," declared Gene Batty, county clerk, who lives near the site on which the jail is to be built. Batty, who was concerned about the new jail design, made the statement when he saw the first architectural drawing of the structure during a county board meeting Tuesday iii Carrollton. Construction of the riew jail was virtually assured by the board which adopted the architect's preliminary plans. Following approval of the final plans, !he jail i.s to be built. Instead of the stereotyped, institutional design, the jail will look '.ike a modern, brick, one-story home wilh a gable roof. It will be constructed on the site of the present antiquated jail which is falling apart in the middle of a residential urea. The cross-shaped structure will have four wings to house its II cells'. Its up-to-date equipment will include a control room in which authorities can view and control all security doors and operations with the protection of bullet proof glass, From the control room, the sheriff and his deputies can see everything that is going on inside the jail without leaving the safety of t he room, architect Gordon Flem, told the board. The control room operator, he said, can also see who is entering the jail. ''He can actually see if the sheriff is really the sheriff or if somebody has a gun in the sheriff's back," the architect said. Flem represents the firm of Simon, Rettberg, Garrison, Flem, Inc., of Carbondale and Champaign. The new facility will have separate detention areas for juveniles and women. Corridors in each of the wings will allow the jailer to view each prisoner without having to enter the cell area. A safety vestibule will also be provided for authorities to view prisoners who are violent and a separate, area will be built for persons confined because they are mentally ill. The self-sufficient control room will also include the communications center, allowing one man to control jail activities while maintaining communications with authorities outside the facility. At a total cost of $220,229, which includes the parking lot and costs of demolishing the present jail, the new jail will be the first of its type, Flem said. He said the jail was a new a n d unique design he developed for Greene County's needs. Library hikes non-resident fees Non-resident fees for the Hay nor Public Library in Alton were changed Tuesday night from $5 per person to $20 per family for a year's use of the library. The llayner board voted 7-1 to extend non-resident use of the library after the Sept. 30 expiration of a §94.000 grant that provided free service to some non-residents. But a new non-resident card will cost every participating family $20 per year. Any member of a household can use the card but the fee will be the same regardless of the size of the family, even if it i.s only one person. \o free non-resident service will be offered. "We tried to match the cost to the nonresident to the cost to the Alton Taxpayer, 1 ' Andrew Stimson, head librarian, told the Telegraph. "We figured that cost is $5 per individual and, .since the average family is four persons, the board decided on the $20 fee." All new library cards will be issued at the new rate, Stimson said. Free library service (o some iion-ivMdeni.-. might have been extended it the p r o p o s e d library district referendum, which would have included Godfrey and Foster Townships, had passed Aug. 22. Because of the vote defeat, the library lo^t a second $94,000 "rant to extend the free service. contributors seeking anonymity. Prodded by a Patman letter, Stans wrote the committee Sept. 5 that he recalled being "informed by our Texas chairman of a possible contribution of $100,000 in U.S. funds in Mexico." The report said he also changed his figure on Mexican money from $89,000 to $100,000 between Aug. 30 and Sept. 5. The report says Liedtke's statements "would appear to indicate participation by Stans in events involving the Mexican transactions, and it would appear difficult for Stans to have obtained legal opinions without knowledge of some details of (he planned transactions." The committee had asked Stans to testify at a hearing this Thursday, but he refused. In another bugging case development Tuesday, a federal judge delayed until Sept. 20 a ruling on technical questions involved in a civil suit brought by Democrats against the bugging suspects and others. Meanwhile he suspended the taking of depositions by both sides. Key ruling is delayed •/ in arriving By BARRY SCHWEID WASHINGTON (AP) — Some 30,000 Las Vegas children were shut out of their schools for a week while a desegregation ruling by Justice William 0. Douglas made its slow way by mail from his summer retreat in Goose Prairie, Wash., to the Supreme Court. Classes in the 52 elementary schools may have begun that much earlier had Douglas's decision .surfaced at the time he reached it instead of seven vital days later, a school official said Tuesday night. "It's incredible," said Clark County schools superintendent Kenny C. Guinn in an interview. "It looks like to me we could have had only a couple of days' delay instead of a week." The Clark County school board and a group of white parents have been fighting the plan ordered by U.S. Judge Bruce R. Thompson of Reno. The board appealed to Douglas Sept. 2 for a stay. Meanwhile, classes did not open as scheduled Sept. 7 and haven't begun yet. In the decision announced Tuesday, Douglas rejected the plea for a stay on grounds that the Las Vegas situation did not demonstrably meet criteria of the Bloomfield amendment, the law recently passed by Congress in an effort to curtail school busing. The law states that desegregation orders for the purpose of achieving racial balance among students shall not be carried out while appeals are pending. Justices Lewis F. Powell and William Rehnquist have rejected similar appeals u n d e r the Bloomfield amendment. In Reno Monday night, Judge Thompson ordered a state court to overturn an order blocking the Clark County busing plan. With the .Supreme Court in recess, Douglas is at his rusnc homo in Goose Prairie, with no telephone nor other reminders of busy city life. He u.Mially depends on the I'.S mails to communicate with his office in Washington Mmie 3,000 miles away. On Tuesday the court announced Douglas's ruling that the Broomfield amendment doe* not exempt the Las Vegas schools from desegregating. The ruling carried the date Sepi. 5, a week earlier. Area labor donates $1,500 to antidrug clinic By JIM LANDERS Telegraph Staff Writer The Alton - Wood River Federation of Labor, AFL- CIO, has contributed $1,500 as seed money to Services For Youth to help start a 24-hour drug treatment clinic in Alton — the first such drug treatment program in Metro- East. Last of series Although that grant is a start, the director of the present limited walk-in center estimates $25,000 will be needed lo operate the clinic for one year at Hillcrest House. It every resident of Alton, Wood River, East Alton and Godfrey contributed 50 cents, the comprehensive program could lie started now, says Mrs. Barbara Shaw, director of the Services for Youth walk-in center at Hillcrest House. Other funds will come to the center through the recent memorial established in the name of Timothy Guinee, formerly of Alton, who recently died from an overdose of drugs. Presently, the Alton Youths Clinic Program treats about 30 drug abuse cases each month. Mrs. Shaw said that figure may be just the surface of a growing undercurrent of drug use "I think this community would be amazed at the amount i>l people UMIIH drugs," Mrs. Shaw said. There h,;s been a "very serious" increase in the use of barbituates within the past few years, she pointed out. The age of the drug users i s continually creeping downward to the junior high school level. Mrs. Shaw estimated that at 'east one-third and possibly as many as 45 per cent of the drug ubuse cases are for barbituates such us seconal, membutal and tuenal. The "barbs" or "downers" provide u relaxed, euphoric mood to the user "It is very MMii'ar tu being drunk," Mrs Shaw said She sves (he increase in drug use related to the normal stresses incurred by adolescent^ However, the contemporary drug scene now allows youths to escape the pressures through the drug crutch. Mrs. Shaw said there is a desperate need for housing facilities to allow coun.ielors, therapist, and .-.ucial workers access to the youthful drug abuser. A new environment must be created to allow counseling and therapy to succeed, Mrs. Shaw said. However, the present level of county and state funding to the Alton Clinic doe> not allow the creation of a comprehensive treatment program. Mental health officials say they do not ex|>ect an increase in funding this year. The Quad-Cities Clinic, also hampered by insufficient funding, will implement a 24- hour "hut-line" program .similar to the exiting service in Alton The phone service will be manned In volunteers from Southern Illinois I'uirerMty at F.dwardsville. Granite i ity has formed an • ' A c i ion f'unimitur" to determine 'the need for a comprehend e drug treat- iiiviu pro'.'.rmi. A report is expected by mid-Sep'.emt>er. Bill Kemp. community service* chairman of t h e union group, says the •j.rain could be just the beginning of support from the group if the treatment ce:iter is effect he "\\e .uv aimiii.4 primarily at youn.' people " he said. "We ivuuiii/v ih.il dru-i» are becoin.iu a problem HI our cummumt) Another ^roup iiiieivsted in easing the drug problem is the Ki\saius Club. Kiwam.s pays for the hotline telephone service at the Alton dune which gives worried youths a chance to talk out their problems. Mrs. Shaw said many youths probably would use an expanded drug treatment program. More young people are- becoming aware of the dangers, or have seen a friend • OD" (overdose) or ha\e hud a personally terrifying existence. With just 50 cents from area residents, Mrs. Shuvv said, "v\e could do it."