Northwest Arkansas Times from Fayetteville, Arkansas • Page 1

INSIDE- Edltorial 4 Pi iv.cword Answers 5 Sports g.10 Entertainment 1L Comics 12 Classified 15 Legal Notices 15 115th YEAR--NUMBER 200 Jfrrfljtoest Public Interest li The First Concern Of This Newspaper FAYBTTEVRLE, ARKANSAS, FRIDAY, JANUARY 3, 1975 IOCAL FORECAST- Aloslly a i and colder tonight and slightly warmer on Saturday. Low last night 32. Lows tonight in the mid 20s with highs Saturday in the upper 40s. Sunset today sunrise Saturday 7:28. Weather map on page fc PACES-TEN CENTS WASHINGTON (AP).

ation's unemployment rate oared to 7.1 per cent ct the vork force in December as mericans without jobs totaled more than six million for the irst lime since the Great De- iression, the government re- lorted today. The 7.1 per cent rale itself vas the highest in 13 years. John D. Ehrlichman, convicted Thursday of conspiracy and perjury in ihe Watergate cover-up trial, said at Wants To Rest the Sealtle-Tacoma, Wash, airport, (hat he just wants to take it easy for a while. He also said he was negotiating with a television company for a job as political commentator.

(AP Wirephoto) Overturns Earlier Ruling Appeals Court Approves New Bank For City The 8lh Circuit Court of Appeals in St. Louis Thursday overturned a Federal District Court ruling that barred opening of a new bank in Fayetteville, and the chairman of the board ot directors said she expected the bank to begin business "in the near future." The suit was filed in 1973 against the Northwest National Bank of Fayettcville and the federal comptroller of the currency by nine Fayetteville a a financial institutions, seeking to have the bank's authority to open invalidated. The U.S. Court for the Wes- 'tern District of Arkansas ruled for the plaintiffs, and Northwest National filed an appeal with the St. Louis court.

Mrs. Virginia Taylor Morris, chairman of the board of Northwest National, said the favorable ruling in the appeals court will open the way for the new bank to begin operations as soon as paperwork can be completed. NO DATE SET She said the bank will open in a temporary structure at 3500 N. College Ave. G.H.

Clausen, former vice president of the Parkway State Bank of St. Louis, is president of Northwest National, and S. Denny Smith, former vice president of the First National Bank of Magnolia, is vice president and cashier. Clausen and Smith both are graduates of the University of Wisconsin School of Banking, Mrs. Morris said.

She said no specific date has been set for opening of the new bank, but added that all facilities are ready. The bank has 350 stockholders from the Fayetteville area, she said. "We're ready to go. We could open our doors for business at any time," she said. Other members of the bank's board of directors include Dr.

Donald B. Baker, Fayetteville physician; Clausen; J. W. Eoff, retailer; Thomas Pearson attorney; Dr. John Owen, dean of the business school at the University of Arkansas; Carl Hose, county agricultural agent, and Loris E.

Stanton, real estate broker. The suit was filed by First National Bank of Fayetteville; Mcllroy Bank; First Federal Savings and Loan Association; of a i First Stale Bank, First National Bank Wins Trophy PASADENA, Calif. (AP) -The Grantland Rice trophy has been presented to Rose Bowl winner Southern California. The trophy is presented each year to the team considered by the Football Writers Association of America to be the No. 1 in the nation.

The vote was taken after New Year's Day bowl games. and American Savings and Loan Association, all of Springdale; the Bank of Elkins; the Bank of Lincoln, and Farmers and Merchants Bank of Prairie rove. The suit charged that the federal comptroller of acted arbitrarily without giving well-reasoned opinion in granting the new bank's charter. The bank of Elkins applied for a charter to establish a bank in Fayetteville the same month, the suit contended, saying the comptroller turned that applicant down. $0 Million Gold Auction To Be Monday WASHINGTON (AP) The government plans to auction off some $350 million worth o'f gold Monday, but individual bidders will have to pay a minimun of a'oout $70,000 to buy any of the precious metal.

A spokesman for the General Services Administration, whose office of stockpile disposal is handling the sale, said Thursday that about 30 sealed bids already have been received. But market specialists consider It far too early to get any sound gauge of how many bids the auction will attract. The price of gold has plummeted since Tuesday when it became legal for U.S. citizens to buy and sell the precious metal. Gold futures contracts traded Thursday at prices that averaged $7.50 an ounce lower.

Most serious bidders are expected to wait until the last possible moment to get their bids in at around the prevailing market prices. LAST MOMENT The last possible moment is 11 a.m. EST on Monday, when sealed bids" on the 2 million ounces of gold will be opened publicly. The smallest possible bid is for 400 troy ounces of gold, since the metal will 'be in bars that size. The bars are 99.9 per cent pure, and all bids must be for quantities in 400-ounce multiples.

At a price of $175 an ounce, about what the metal was trading at Thursday, that means bidders would have to pay $70,000 for one bar. The entire sale would net the government $350 million at those prices, although it has're- served the option of throwing out any or all bids it it doesn't consider them high enough. Officials have declined to say so far what bid they will consider as the lowest possible. BOB RSLEY SWORN IN LITTLE ROCK (AP) Bob Riley, 50, was sworn In at 11:16 a.m. today as governor of Arkansas.

Riley's term will end al nooii Jan. 14 when David H. Pryor is sworn in. Riley, the state's lieutenant governor the past years, was sworn in as governor by Carleton Harris, chief justice of the state Supreme Court. Dale Bumpers, was elected Nov.

5 to U.S. Senate post held by J. W. Fulbright. resigned today to go to Washington to be sworn in with other senators.

Dennis Cordes Is Sentenced In a surprise move Thursday Circuit Judge Maupin Cummings 1 pronounced sentence on Dennis Eugene Cordes, 26, Springdale, convicted Tuesday by a Washington County Court jury of illegal sale of a controlled substance. Cordes had been schedulec for sentencing this morning, but Cummings ordered the early sentencing and Cordes was re turned to Cummins Prison Farm immediately. A spokesman for Sheriff Marshall said Cordes a taken back to Cummins Thursday afternoon. jury recommendec Cordes be sentenced to 15 years in the state prison and pay a 1 0 0 0 0 fine. Gumming! pronounced the recommended sentence to run consecutively with a 10-year sentence handet down by a jury in September on another charge of illega delivery.

Cordes faces yet another tria on a third illegal delivery charge. Prosecutor Mahlon Gibson said trial on the thin charge will be held in Passes Six Million Mark Jobless Rate Soars Not since 1940 when the nation was shaking oft the effects of the Depression have more than six million been unemployed. Some 8:1 million were jobless then, about 14.G per cent of that era's smaller labor force. The Labor Department said the December increase in the jobless rate, from 6.5 per cent in November, was the biggest monthly increase since October 1960 when the unemployment rate also rose six-tenths of a per cent. The unemployment rate is now at its highest level since May 1961 when it also stood at 7.1 per cent.

The last time it exceeded that level was during the 1958 recession when it 1 hit Auto Industry Plans To Cut Production DETROIT (AP) The na- ion's auto makers have closed he books on their most tumultuous year since World War I and opened 1975 with announcements of new production cutbacks and hints ot more to come. They also confirmed independent industry estimates that new car output in 1974 sank to its owest level in four years. A 67- day General Motors strike cut production in 1970. while thi 974 output was trimmed by a hree-week strike of American Motors, workers last September. Additional bad news is expected to come Monday when industry reports its year- md sales totals.

Deliveries ince September have trailed year-before levels by 30 per cent. Another sales drop in December, as anticipated, would trigger a new round of production cutbacks and layoffs. U.S; passenger car production in 1974 stood at 7.340,373 units, a 24 per cent drop from a record in 1973. It was the lowest output since 1962. with the exception of 1970 when General Motors was hi by- a 67-day OFF 31 PER CENT December production was 357,429 units, off 31 per cent from 517,955 in December 1973 when production and sales had just begun to tumble in response to effects of the energy crisis.

GM production in December 1974 was 215,423. 17 per cent from 259,273 in December 1973. Production for 1974 stood at 3,585,509, a 32 per cent decline from the 1973 total of 5,252,734. Ford's production for December 1974 was 108,024, off 18 per cent from December 1973's 131.984. Total production last year was 2,205,245, down 12 per.cent from the.

1973 total of 2,495,853. Chrysler built only 15,222 cars in December, an 85 per cent decline from the 103,217 built in December 1973. For the year Chrysler's output was 1,198,241 off 23 per cent from 1973's 1,556.377. American Motors reported output in December at 18,760 off 20 per cent from 1973's 23,481. Production declined one per cent for the year, 351,378 to 355.855 in 1973.

The most hard-pressed of the companies, Chrysler an nounced Thursday it was shutting three plants for at least i week, beginning Monday, anc eliminating second shifts at two of those facilities when they re open. One of the shift elimina tipns was announced pre viously. The new shutdowns will force the layoff of 10,800 hourly work ers, 2,000 of them for indefinite periods. About 50,000 of Chrys ler's 117,000 hourly workers have now been given open-end ed furloughs. 5y President Ford WASHINGTON (AP) Fres- dent Ford surnmmoned CIA Di- ector William Colby, Defense iecretary James R.

Schlesinger and Secretary of State Henry A. Kissinger to the White House oday for separate meetings on charges that the CIA engaged illegal domestic intelligence activities. The meetings were disclosed jy administration sources as Ford returned to his office after a 12-day Rocky Mountain raised the possibility that Ford soon would be making a statement on a 50-page report sub- Revenues Up LITTLE ROCK (AP) Gen eral revenue collections in Ar kansa.i during December total ed $28,487,449 an increase 22.3 per cent from Decembe 1973, according to the Bureau of Legislative Research. The percentage increase was the largest since July. North Of Saigon Battle Of Phuoc Binh Rages SAIGON, South Vietnam The battle for Phuoc Binh, the isolated capital of Phuoc Long province, raged back and forth today with government forces claiming early successes and the North Vietnamese launching a new on- ilaught.

Military officials said Ihe North Vietnamese and Viet Cong hit the besieged city 75 miles north of Saigon with In- fantry, lank and artillery assaults. The officials said a lank column led ground forces against governnent positions in the southern part of Phuoc Binh, and street fighting was reported Friday night. Western diplomatic sources said the Communists had fired more than 3,000 shells into the city of 50,000 people since the attack began before dawn Thursday. Earlier today, the South Vietnamese military command announced that its ground and air forces had driven back the North Vietnamese forces that fought their way into Phuoc Binh Thursday. The South Vietnamese they knocked out another tank, the second in two days.

The communique said the South Vietnamese air force flew nearly 150. strikes, and pi- lots estimated they had killei more than 150 soldiers. The Saigon command sail South Vietnamese forces alsi repulsed Communist forces at tacking Hoai Due, a besiege district tovyn in Binh Tuy prov ince 75 miles northeast of Sal gon. Both Phuoc Binh and Hoa Due are mili tary analysts predicted mori ICONTINVED ON PACE TWO) skiing -vacation. The Oval Office meetings milled by Colby after published, allegations that the CIA maintained files on 10,000 U.S.

citizens. Colby succeeded Schlesinger as CIA director. Flying back to, Washington from Colorado Thursday night. White House Press Secretary Ron" Nessen said he expects Ford's statement on the CIA to come by the middle of next week. Ford also is planning to sign the trade bill today, a measure he says is needed to help avert an international economic disaster.

The bill empowers the Presi- Vtication Ends Kissinger and Vice President Nelson Rockefeller chat prior to boarding Air Force Two at Puerto Kico at the.end of in eight-day vacation HEWS BRIIFS Border Hostilities Israel said bazooka shells and small-arms fire from inside Lebanon today killed an Israeli staff sergeant and wounded four soldiers in the third straight day of border hostilities. The Israeli command said three other Israeli soldiers were wounded when the car they were driving was blown up by a mine. All casualties occurred in Israeli territory, the command said. Seeks New Rates NEW YORK (AP) American Telephone Telegraph Co. sought today a new rate structure that would increase charges on about 70 per cent of interstate calls while reducing the rate for the remainder, the company said.

Over-all, ATT said the new long-distance telephone rates would increase its revenues by 7.2 per cent. $60 Million Needed PHILADELPHIA (AP) -Penn Central trustees say that unless they receive substantial federal funds in February and March, the railroad will have to "undertake extensive furloughs and drastic reduction of maintenance programs." Blaming a faltering economy, the recent coal strike and Shrinking steel and" auto shipments, trustees said Thursday that Penn Central will need an additional $60 million to get through the winter. Driver Killed OZARK, (AP) J. D. Casey, 39.

of Mulberry was killed Thursday when he lost control of the pickup truck ho was driving and it struck a bridge abutment about five miles north of here on Old Wire Road, State Police said. Strollers Recalled WASHINGTON (AP) About 500.000 baby strollers already in use have a defect in a plastic handle connector could result in separation of the handle, the manufacturer cautions. The connectors were used in strollers manufactured between November 1971 and February 1974 Peterson Baby Products Co. of North Hollywood, company president Peer Ghent said in a statement issued here Thursday. Bank Call WASHINGTON (AP) A call for reports of bank conditions as of the close of business on Dec.

31 was issued today by governing agencies. The call date was selected by Comptroller of Currency James E. Smith; Frack Wille, chairman of the Federal Deposit Insurance and George W. Mitchell, vice chairman of the Federal Reserve System. Such calls are issued periodically on a routine basis.

Fresh Warnings WASHINGTON (AP) The FBI is raising fresh warnings about the possibility that nuclear weapons may fall into the hands of terrorists and about the continued activities ot Communists in the United States. In an annual report released this week, the FBI also reported that bank robberies reached a record high in the 1974 fiscal year. Convictions for white collar crimes were double the number for the previous fiscal year, the report continued. Cut Unnecessary WASHINGTON (AP) An independent study said today the United States need not eliminate its oil imports but should cut them to about 20 or 25 per cent of total requirer menu in order to cope with any future Arab oil embargo. .4 per cent in August ot that ear.

Heavy layoffs in the auto in- iustry helped boost the number unemployed last month by 60.000 to a total of 6.5 million. were 5,975.000 workers mable to find employment in November, the government aid. President Ford, who returned Called lent to negotiate mutual trade oncessions with other nations ind provides special assistance U.S. industries and cornmu- lities threatened 'by imports, 'he measure also permits rade concessions to Commu- list countries that allow free emigration of Jews and other minorities. The President also was meet- ng Interior Secretary Rogers C.

B. Morton and B'ederal Cnefgy Administrator Frank G. 2arb. Ford has. called Saturday of key economic advisers and Vice President Nel- (CONTINTJED ON PAGE TWO) Use Of Force Not Ruled Out By Kissinger WASHINGTON (AP) Sec retary of State Henry A.

Kissin ger has declined to rule out the possibility that the United States would use military force against Mideast oil producer "to prevent strangulation of th industrialized world." "I have said repeatedly that did not think it would come that point. I'm confident th problem will be solved withou the use of force," Kissinge told reporters Thursday night. But, he added, "I'm not say ing there is no circumstance whera we would not use After Kissinger returned from a vacation in Puerto Rico reporters questioned him at An drews Air Force Base near the capital about an interview he gave Business Week magazine. ABOUT FORCE In the magazine interview Kissinger said of the possible use of force in Mideast "We should have learned from Vietnam that it is easier to ge into a war than to get out of it I am not saying that there's no circumstance where we woult not use force. But it is one thing to use it in the case of a dispute over price, it's anothe where there's some actua strangulation of the industrial ized world." At Andrews, Kissinger a i "I warned against military ae tion.

For oil prices it is loo dan gerous." Previously. Kissinger had re fused to discuss the possibility of U.S. military action agains the oil producers. In the Business Week inter view conducted Dec. 23, Kissin ger said he doesn't anticipate another Arab oil embargo un less there is another Mideas war.

"I am not even sure of an oi embargo in the event of a war," he added. And he said the danger of an other Arab-Israeli war "i talked about much too loosely. "Both sides lost greviously in the last war. Neither side rea! ly won. I think the readiness either side to go to war is ofte exaggerated," Kissinger said.

Thursday night from a skiing acation in the Rockies, will meet Saturday with his key conomic policy advisers. Today's job report is almost ertain to receive much atten- on at the meeting. With unem- iloyment rising more sharply lan anticipated as the reces- ion worsens, the President will under increased pressure to onsider major tax cuts in or- er to help stimulate the ecorio- ny. Over the past 12 months. nemployment has increased more than two million.

The nation's unemployment rate av- raged 5.6 per cent in 1974. The obless rate in 1973 averaged .9 per cent. The Labor Department said ob losses last month affected white-and blue-collar vorkers and virtually every major worker category. Two other indications of the economic sag came Thursday- vhen the Commerce Depart- nent reported that new orders or factories declined 2 per cent November and new construc- ion slumped 2.7 per cent that nonth. The December unemployment igures, which reflect massive ayoffs in automobile-related industries as well as those resulting from the nationwide coal strike, were based on data fathered before the middle of month.

Layoffs have continued to spread since then and will push the jobless rate for January still higher. This trend was indicated Thursday in the Labor Department's weekly report on unemployment insurance claims. Tha reoort said 677,800 persons applied for Jobless benefits during the week ended Dec. 21, an increase of 40,100 over the previous week. 7.5 PER CENT SEEN Administration economists predict unemployment will continue rising until it reaches about 7.5 per cent by midyear, but some private economists forecast a rate of 8 per cent by summer, a level that has not been approached in the last 25 years.

In other economic developments: -AFL-CIO President George Meany is convening a rara meeting of the presidents of all 110 unions in the labor federation to develop a program "designed to stabilize the economy and put American back to work." The nation's auto makers reported that car production in 1974 was the lowest for a non- strike year since 1962. The four major manufacturers said production in 1974 totalled 7.340.373 units, down 24 per cent from the 1973 record of 9,060,819. Chrysler Corp. said it is cutting back production in the Detroit and St. Louis areas beginning Monday, The company's St.

Louis car assembly plant will be shut down, putting 2,000 employes out of work indefinitely. Another 3,600 St. Louis-area Chrysler workers will be laid off with the shutdown of the Missouri truck plant. Chrysler said 5,200 workers at its truck plant in Warren, will be out of work' with an extension of a shutdown there. --Ford Motor Co.

is laying off 1,100 workers indefinitely at two trim plants. The nation's largest retailers reported December- sales gains were better than anticipated but not strong enough to erase the cloud still hanging over Christmas profits. --The labor contract between the 5,300 member Sheet Metal Workers Union and U.S. railroads expired, raising the possibility of a strike. --The stock market started the New Year with a 15.80 jump in the Dow Jones industrial average.

The London stock market slumped to a 20-year low. Gold prices slumped on the U.S. and European markets for the second consecutive day. Brokers say gold prices soared recently in anticipation of American buying that became legal earlier this week. Watergate Prosecuto Ahead To Closing His Office WASHINGTON (AP) With.

In San Clemente, an the Watergate cover-up trial ended, Special Prosecutor Henry S. Ruth is looking ahead to the day he can close down the prosecutor's office that was spawned by the scandal. Unfinished business remains, but Ruth said in an interview Thursday that he has no intention of trying to extend the terms of the two special grand juries still considering Watergate matters. The 18-month, term ot one of those panels in mid- February. The other runs out in June.

"I don't think It would be appropriate to ask (or it (an extension)," said Ruth. aide to Richard M. Nixon said the former president, whila "deeply anguished by Watergate" would not comment on the conviction of his former aides John Mitchell, H. R. Haldeman, John D.

Ehrlichman and Robert C. Mardian. The four men will remain free over the next 30 days whils the probation office of the U.S. District Court in Washington prepares a report to Judge John J. Sirica on how severely the men should be punished.

Ehrllehman on Thursday became the first of the four to submit to a presentence interview at the probation office,.