The Des Moines Register from Des Moines, Iowa on August 27, 1975 · Page 4
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August 27, 1975

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The Des Moines Register from Des Moines, Iowa · Page 4

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Des Moines, Iowa
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Wednesday, August 27, 1975
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P* - r- 4 1 PBUKMHti EMITTER • Wed., Aug. 27, 1978 ""* Urns Betty Button, the former actress who worked at a Roman Catholic rectory in Portsmouth, R.I. as a kitchen helper, has returned to Cal i fornia. "She still wants to make a c o m e b a ck, and I guess that (California) would be the place to do it," laid the Rev. Peter Maguire, pastor of St. Anthony's Church. Miss Hutton, 53, was converted to Catholicism last year. She starred in such movies as "Annie Get Your Gun" and "The Greatest Show on Earth." Qoddfttsas Venn and Diana, two of the naked goddesses whose statues adorn the loveliest fountain in Palermo, Sicily, were beheaded over the weekend in the latest vandal attack on the Renaissance sculpture. Police said that unknown persons stole the two marble heads from Piazza Pretoria, right in front of city hall. Venus had already lost an arm and a leg in a previous theft. Other deities represented on the fountain have suffered similar indignities in recent years. Infected An infected tooth is one reason why singer Elvis Presley has been hospitalized, the star's physician said in Memphis. Dr. George Nlchoponlos said Presley, 40, has been suffering since early August from an infected tooth that had to be extracted. After opening at a Las Vegas hotel, Presley was forced to cancel part of his two-week engagement and fly to Memphis to enter a hospital. The doctor said Presley was to undergo further tests to see if his fatigue is related to any other factors. Dead Orison S. Marden, 69, a Wall Street corporate lawyer who was a founder of the New York Legal Aid Society and of the International Legal Aid Organization, in New York City . He was president of the American Bar Association in 1966-67. Rupert Bayless Vance, 76, a nationally known sociologist and professor emeritus at the University of North Carolina, in Chapel Hill, N.C. He was the author of more than 100 articles and seven books. Rolli-Royotwoi Enxo Stnartl, the Italian crooner who for years has made a pitch to TV audiences with his spaghetti sauce commercials, has run into trouble selling a Rolls-Royce. Len Leonards filed a $28,673 damage suit In Morristown, N.J., against Stuarti, charging the singer sold him a used Rolls- Royce Phantom for |20,OM and didn't tell him it needed more than $8,500 in repairs. Fordthrttt Salvatore Thomas, who once was convicted of threatening to kill President Lyndon Johnson, now has been charged with threatening to kill President Ford. Thomas, 32, was bound over to U.S. District Court in Minneapolis. No trial date was set. Art Blake, a Secret Service agent, said Thomas allegedly had made verbal threats at a bar against Mr. Ford. Sentenced Ronald (Buster) Edwards, who helped steal more than $7 million in the Great Train Robbery in 1963, was sentenced in London to six months in jail for shoplifting. He said he would appeal and was released on bail. Edwards, 44, has been a flower vendor since being paroled last April after serving 9 years of a 14-year sentence. 'Private' Kristie Vail, 21, who has been traveling with President and Mrs. Ford as a guest of their son, Jack, says she prefers to keep her relationship with young Ford "private at this point." Kristi, who spent four days in Vail, Colo., earlier this month with the presidential family and then accompanied the Fords on their visits to Des Moines and Minneapolis, is visiting her parents, Mr. and Mrs. Virgil Vail, in Fargo, N.D., before returning to Utah State University for her senior year, Jack graduated from Utah State last spring. Birth via phone Jim Yates, jr., a fire department medic in Phoenix, shouted instructions by telephone to a nervous mother-to- be as she successfully gave birth^to_a-premature_baby. Fire department rescue workers reached the home of Crystal Jenkins, 22, soon after the baby was born, and both were taken to a hospital where they were reported in good condition. SAN FRANCISCO RAISES HELD UP SAN FRANCISCO, CALIF, (AP) - A judge ordered Monday that the raises given to police and firemen at the enc their strike be witheld until after a hearing on a suit to can eel them. The effect is to hold up a single day's pay. Presiding Superior Court Judge Robert Drewes, acting on a taxpayers' suit filed Fri day, instructed the city attor ney not to pay any increases to police or firemen before a Sept 18 hearing on the suit. The suit, brought by insur ance broker Nick Verreos charges that Mayor Joseph Alioto's emergency order ending the strike and granting the raises was illegal and that the mayor's actions were "a pal pable and gross abuse of discretion." Effect of Order The judge's order means police and firemen will not get a 6.5 per cent retroactive increase for the single day of July 1,1975, provided for in the settlement. The order also applies to the other half of the settlement providing for a 13 per cent pay boost. But that increase does not take effect until Oct. 15. Most of the city's 1,935 policemen went on strike last Monday; most of the 1,700 firemen struck last Wednesday. The raises imposed by the mayor raise the pay of both groups from $16,044 to $18,138 for rookies, and $25,944 to $29,315 for chiefs. Alioto ended the strikes last Thursday by invoking personal emergency powers, dismissing the authority of the board and granting police and firemen a 13 per cent pay hike. Earlier Action Earlier, the Board of Supervisors overrode Alioto's veto of an ordinance to submit to a vote in November city charter amendments aimed at police and firemen pay and other benefits. The board is considering a reform package of charter amendments including provisions for automatic dismissal of any public safety official who strikes; rollback of pension benefits for policemen hired next July to 1970-71 levels; police pay rates based on rates jrevailing in cities of more ban 100,000, rather than the seg to the highest such salaries n the state, and removing from ;he mayor emergency powers to reach a contract settlement. Heroin bust MIAMI, FLA. (AP) - Officials arrested two Los Angeles residents and seized 5 million worth of heroin at Miami International Airport, a U.S. Customs spokesman said Tuesday. WIHWHOTO (AP) Fishermen net a shark This six gill shark, which weighs about 400 pounds, Is on a after It became entangled In fisherman Keith Williams' net. beach at the Talallp Indian Reservation near Everett, Wash., Examining It are Jimmy Henry, left and Tony Williams. Ford aide abandons bid to take over insurance firm BY AL DELUGACR and GAYLORD SHAW ® 1*71 Lot AflMlM TImM WASHINGTON, D.C. high-level White House official joined two of President Ford's wealthy hometown friends in a multimillion-dollar move earlier this summer to gain financial control of a Nebraska insurance company. The official, Warren Rustanfl, director of Mr. Ford's scheduling office, says he abandoned his part in the move last Friday, however, to avoid any pos sible embarrassment to the President. "Inferences could be taken incorrectly ... I don't want to compromise the White House or President Ford," said Rustand, n disclosing he quit the venture within hours after learning of inquiries about it. In Battle The venture would be under^ written by a loan from Amway Corp., a firm that currently is embroiled in a bitter battle with the Federal Trade Commission (FTC) after allegations of deceptive sales practices. Amway, a nationwide seller of cosmetics and home care products, is owned by Grand Rapids millionaires Jay^ Van- Jobless rolls due to imports grow as trade surplus shrinks WASHINGTON, D.C. (AP) The Amalgamated Clothing Workers has become the latest in a growing list of unions that are taking advantage of a recent change in the nation's basic trade law to apply for millions of dollars in additional unemployment benefits. The union ' said Tuesday it was submitting claims for "adjustment assistance" with the Labor Department for about 20,000 workers in more than 200 companies. At a news conference, clothing workers president Murray H. Finley said these workers either were laid off or had their hours of work reduced, largely because of "the flood of imports" of men's and boys' clothing. In other economic news, the government reported that increased oil imports gnawed into the nation's foreign trade surplus in July, but the account remained in surplus by nearly $1 billion for the month. U Weeks of Benefits Under provisions of the Trade Act of 1974, workers who can make a case that they have lost their jobs due to competition from imported products are eligible for up to 52 weeks of special federal benefits. These benefits, when added to state unemployment compensation, equal 70 per cent of a worker's former wage. In addition, workers taking job training can get an extra 26 weeks of benefits, up to $500 in job- search-funds, payments toward moving expenses and up to $500 as a bonus if they relocate in a new job. The "adjustment assistance" program was begun in 1962. But since last April only 54,000 workers have received benefits. It has become a new source of aid for unions looking for ways to ,3 id their legions of jobless members. This is a result of major changes in the 1974 trade act which liberalized rules for awarding claims. Since April, the Labor Department said, it has received 117 claims covering 125,000 workers. Of these, 38 were approved for about 30,000 workers, while 21 claims involving another 30,000 were denied on the grounds that imports were not the real reason for their being laid off. An additional 58 cases, involving 65,000 workers, are still pending. $350 Million Budget Herbert Blackman, the department's assistant deputy undersecretary for trade and adjustment policy, said the rate of applications has been consistent with previous estimates. However, he said the 200 claims from the clothing workers will double the case load and make it "very difficult to handle." The department has budgeted $350 million for the program this year. The petitions have involved an average of about 350 workers each, but a decision last month certifying benefits for 18,000 Chrysler Corp. workers is likely to encourage more mass filings. In the clothing industry, Finley cited what he said was a 14 per cent increase in imports, from seven million units in 1974 to an estimated eight million in 1975. Eyes Tighter Regulations "The adjustment assistance program is not the answer to the problem of declining employment caused by rising imports," he told reporters. He said "the real answer" would be tighter regulations restricting imports. Lane Kirkland, secretary- treasurer of the AFL-CIO, re- ferred to the program as "at best, only a Band Aid." "The answer to the flood of imports must be the regulation of imports — not just in the clothing industry but throughout the wherever American American economy jobs are threatened," he said. Cushions Impact The unexpected foreign trade surplus so far this year has cushioned the impact of the slowdown in the domestic economy, since U.S. industry has managed to sell an increased value of goods abroad. And the latest statistics from t h e Commerce Department showed no strong signal yet of the eventual deterioration expected in the trade accounts as industry steps up production while newly employed workers again begin buying imported cars and appliances. The Commerce Department said imports advanced 13.7 per cent in July while exports rose 2.2 per cent. The result was a $977.1 million surplus in July compared to June's record monthly surplus of $1.737 billion. Export $• Billion More The United States has exported $6.4 billion more in goods than it has imported so far this year, compared to a $637.5 million deficit at the same time last year. For the entire year of 1974 there was a $2.3 billion deficit. The Commerce Department had originally expected a deficit of about the same magnitude this year, but the recession has hit harder at the raw materials and consumer goods the United States imports than at the foodstuffs and heavy machinery which form the backbone of U.S. exports. The department now expects a surplus of $4 billion to $6 billion for the year, but that projection implies a return to balance or a deficit by yearend. Commerce Secretary Rogers C.B. Morton said the July figures illustrated the importance of foreign oil in.the U.S. trade picture. "The United States must develop a comprehensive energy program as soon as possible if we are to maintain a strong trade position and avoid draining strength from the economic recovery now under way," he said. The increase in petroleum amounted to 52 per cent over June imports, but the oil category has been subject to wide swings from month to month this year in response to the oil import tariff duties imposed by President Ford in February and June. The July import volume of 179 million barrels was still only slightly ahead of this year's monthly average of 174 million barrels. The biggest export gain registered in July was a $272 million increase in the value of soybeans, wheat and other grains shipped overseas. Exports of corn and rice slipped $96 million. Andel and Richard DeVos, longtime friends of the President. Rustand, as well as William Nicholson, his assistant in the office which co-ordinates the President's daily schedule and public appearances, were listed as two of the original stockholders of Edward Sampson, Inc., a Texas corporation formed to buy control of Lincoln Life & Casualty Co. Nicholson said he actually never bought stock in the com p a n y, however, and also dropped out of the venture after learning of The Times' inquiries. That left VanAndel and DeVos, along with Edward W. Sampson, jr., of Ft. Worth, Tex., as the declared owners of the firm now seeking Nebraska Insurance Department approval of the proposed Lincoln Life take-over. '. Conferred With Ford The Michigan millionaire conferred with the President for 43 minutes the evening of June 6 in a meeting which a White House spokesman said "was arranged by Rustand." The following month, Van- Andel was quoted in a Michigan newspaper as saying the President was aware of Amway's troubles with the FTC, which in April issued a complaint charging the firm and its owners with false, misleading and deceptive practices. Amway's owners did not respond to efforts by The Times to contact them, but a White House spokesman said the June 6 meeting was set up so the President could be the first to sign a replica of the Declaration of Independence which Amway is circulating as a bicentennial project. Rustand and Nicholson, who were roommates at the University of Arizona in the 1960s, said their participation in the insurance venture had been cleared in late June or early July by the White House counsel's office. Reviewed by Staff William Casselman, who until recently was a member of the White House legal staff, confirmed that "several of us here reviewed" the participation and found it was not in .violation of the code of ethics Mr. Ford issued last October. The White House aides' involvement in the venture first surfaced in July in documents filed in a North Dakota court where another insurance company was trying to block the acquisition of Lincoln Life by Edward Sampson, Inc. According to an affidavit filed by Sampson, the only persons owning stock in Edward Sampson, Inc. were himself, ADVERTIMMENT What Do Many Doctors Use WhenThey Suffer ftiin And Itch Of Hemorrhoidal Tissues? Exclusive formula gives prompt, temporary relief from such pain and itch in many cases. Helps shrink swelling of hemorrhoidal tissues due to inflammation. In a survey, doctors were asked what they use to relieve such painful symptoms. Many of the doctors reporting said they either use Preparation H themselves of in their office practice. Preparation H gives prompt, ttmpor*ry relief for houn in many cases from pain, itching in hemorrhoidal tissues. And it actually helps shrink painful swelling of such tissues when infected and inflamed. Try doctor- tested Preparation H." There's no other formula like it. At drug counters everywhere. Ointment or tuppotitoriw. and the two Amway principals, Rustand and Nicholson. The affidavit identified Rustand and Nicholson as assistants to the President and listed their addresses as 1600 Penns y 1 v a n i a Ave., Washington, D.C. — the address of the White House. The affidavit did not say how much stock each owned, and neither Rustand nor Sampson would divulge that information on grounds that it is a privately held corporation. "It_is—a vfiry smalt vestment on my part," Rustand said in early August when a Times reporter first asked him about his involvement in the venture. On Monday, when a reporter telephoned Rustand to ask additional questions, the White House aide said: "I know very little about Jt, other than^the fact that I've invested irTEd- ward Sampson, Inc., in a very small way and have no interest in their continuing acquisitions or anything other than at some point in time it may be successful and if so, fine; if not, no problems." He then consented to a face- to-face interview, and it was held three hours later. When a reporter asked him how much he had invested, Rustand said, "I've divested of any interest in Sampson." He_.said he had agreed to sell- his "interest back to Mr. Sampson" when he talked by telephone with the Texas -.lawyer last Friday, a day after a Times reporter had questioned Sampson. Nicholson, who joined in the interview in Rustand's Executive Office Building office overlooking the White House, said he initially stock from planned Rustand to if buy "he bought a block." But because of "the great amount of interest from the press," he said he had decided not to because "it wasn't worth it." Some of the financial details emerged in documents filed this month. They show, for example, that the $1.6 million cash price for controlling interest in Lincoln Life was part of a $2.2 million loan from Amway to Sampson, Inc. Sampson said in the interview last week that the $600,000 balance of the $2,2 million loan was for "other corporate purposes," including a deal he described as being "in oil." He said he was in the midst of negotiations and could not elaborate. When Sampson tardily divulged details of his company's financing arrangements with the Nebraska Insurance De- partntnt, he requested that they be kept secret. No Public Interest Nebraska's new insurance director, C. B. Nelson, honored the request. He rejected a plea by another insurance company opposing the acquisition, ruling in a public hearing last Thursday that no public interest would be served by divulging the information. At the same hearing, an attorney for, Sampson, Inc., Concerted that thP rnmpany been in "technical" violation of the Nebraska Inst pany Holding Act by failing to give notice of its intent to acquire controlling stock of Lincoln Life. The Nebraska official said he expected to rule soon on the Sampson firm's application for approval to_controL the insurance company. "Old Friends" In the separate interviews, both Rustand and Sampson Said they had known each other since Rustand was in business as an investment adviser in Tucson, Ariz., in the late 1960s and early 1970s. . Sampson said he and Rustand were "just old friends" and had been "looking at situations" in which to invest since before Rustand came to Washington in 1973 as a White House fellow. Rustand said he met Amway's owners, VanAndel and DeVos, soon after Mr. Ford became Vice-President. Asked how they got interested in the insurance venture, Samp? son said: "I just laid it out — that it was a good investment and a good company." Conservative Firm Sampson said Lincoln Life's balance sheet is heavy in cash and bonds servative an "about as con- insurance company as I know." At last Thursday's hearing in Nebraska, a lawyer for North American Insurance Company of America, which now owns Lincoln Life, said his firm's president had been told that Amway was interested in Lincoln Life in order to sell insurance to its distributors "or through them." Starting from a basement operation 15 years ago, VanAndel and DeVos have built a private business empire which now includes a mutual fund, a travel agency, a ,food supplement manufacture, an auto agency and distributing subsidiaries in Canada and Australia. Governors to see Ford on gas lack WASHINGTON, D.C. (AP) President Ford has called a White House meeting Thursday of governors of some 17 states who are Involved in the problems arising over natural gas shortages. Press Secretary Ron Nessen, announcing the session, laid Tuesday that Mr. Ford is considering decisions in the next few weeks on ways to alleviate an expected natural gas shortage and wanted to get the governors' views. Propane Controls? Announcement of the meeting came amid published reports that Mr. Ford may ask Congress soon for temporary authority to continue federal con* trots on propane gas through next winter. This bottled gas is widely used for heating and farm purposes. When asked specifically about the propane proposal, Nessen said Mr. Ford is considering a number of steps to cushion possible economic impact of his plans to veto extension of oil price controls. Invited to Thursday's meeting were the governors of 14 states most affected by the expected natural gas shortage, Nessen said. They are New York, New Jersey, Pennsylvania, Ohio, Missouri, North Carolina', South Carolina, Maryland, Virginia, Iowa, Kentucky, West Virginia, Delaware and California. Also invited were the governors of two states that are major producers of natural gas, Texas and Louisiana. Gov. Thomas Salmon of Vermont was asked to attend in his capacity as head of the energy committee of the National Governors Conference. Federal Energy Administrator Frank Zarb will join in the session and provide a state- by-state breakdown of the anticipated extent of the shortages, Nessen said. Today or Thursday, Mr. Ford expects ttrteceive the bill hum Congress calling for a six- month extension of price controls on domestic oil. There is no date set yet on when the President wilt veto the bill as promised, Nessen said. '•••' Controls automatically would end Aug. 31 unless the new bill is signed by Mr. Ford or his veto sustained by the Congress. Nessen said that the President would not necessarily have to act on the bill before Aug. 31. One of the nation's largest oil companies, Mobil Oil Corp. has said in a letter to members of Congress that it prefers gradual decontrol because it felt immediate removal of the controls would be a "shock to America's fragile economic recovery;" Asked about reaction to Mobil's view, Nessen told reporters that whether oil companies agree with the President is not a factor in Mr. Ford's decision. "It's irrelevant what the oil companies think," Nessen said. ClieHes JBoUtt* iltgtoter Vol. 127, No. «4 Aug. 27, 197S NtwsOfftoti AM uniollclUd minuicrl •rs and Dictum si ' ' ' IWj ntwi»«p«r «rt tlio r*Mrv*d. Ay kilo. TO SOMEONE who WANTS TO buy youR RAdio We'll introduce you to some very nice people to meet, because' they're hundreds for two days i B 284-8141 Oes Momes Calling Area 800-162-18% Toll Free cqisrcR ANd TnibuNc cUssifiecLJ

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