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January 18, 1968 - Image 3

Resource type:
The Michigan Daily, 1968-01-18

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Castroite Group

26 Federal Johnson Seeks Tax Increase;




American s

GUATEMALA ()-A clandes-
tine communique signed by Rebel
Armed Forces -FAR- a Castro-
ite group, claimed it was respon-
sible for the murder of two U.S.
0 military officers who were ma-
chine gunned Tuesday from a
speeding car.
Police made large numbers of
arrests yesterday in the hunt for:
the assassins of the Americans.
The Rebel Armed Forces claim-
ed the officers were murdered be-
cause they were associated with
Guatemalan army groups who
"dedicate themselves to sow terror
and death."
.New Arrest
FMade in N.Y.
' NEW YORK (,')-A Brooklyn
salesman was under arrest yester-
day, charged with paying a $10,000
bribe to a public official in hopes
of winning contracts from the city
scandal-tainted water department.
Dist. Atty. Frank S. Hogan's of-
fice, without mentioning any other
names, said the defendant, Gus
Spatafora, 31, gave the $10,000 in
cash as a kickback advance to "a
third party who in turn gave it to
a public official."
Arrests of the others said to be
involved were imminent, a Hogan
spokesman said. Hogan's office
said the payment was made Aug.
5, 1966, at 300 Madison Ave.-a
building.housing the law office of
attorney Herbert Itkin, a code-
fendant in a $40,000 federal kick-
back case with James L .Marcus,
ormer city water commissioner.
Also in the building was Co-
nestoga Investment, Ltd., a coun-
seling firm in which Marcus and
Itkin were associated.
Marcus, Itkin, racketeer Anto-
nio "Tony Ducks" Corallo and
three other men are under federal
indictment, accused of arranging a
$40,000 kickback from an $800,000
water department contract for the
cleaning of a Bronx reservoir.
Marcus'- share was said to have
been $16,000. All are free awaiting
further federal action.
Marcus was a nonsalaried trou-
ble shooter for Republican Mayor
John V. Lindsay in the summer
of 1966, and was named $30,000 a
year water commissioner Sept. 27,

U.S. Army Col. John D. Webber
Jr., 47, Houston, Tex., head of the
U.S. military advisory group in
Guatemala since 1966, and Lt.
Cmdr. Ernest A. Munro, 40, Rock-
land, Maine, head of the U.S.
naval section, were gunned down
near Guatemalan air force head-
Marine Sgt. Harry L. Green, 41,
Omaha, Neb., the groups com-
munications adviser, was wounded
and was reported in fair condi-
tion. Army Sgt. Maj. John R.
Forster, 42, a native of Seattle,
Wash., was struck in the arm by
shattered glass but was released
from a hospital after treatment.
The police roundup was carried
out under a decree of modified
martial law declared shortly after
the Americans were killed. They
were the first U.S. victims of the
wave of rightist and leftist terror
that has claimed more than 1,000.
lives in the last year and a half.1
Sends Regrets
The government tightened se-
curity around the U.S. Embassy
and other American installations.
President Julio Mendez Montene-
gro sent regrets over the slayings
to Washington.
The Rebel Armed Forces type-
written communique asserted the
U.S. military mission has ordered
the Guatemalan army to create
groups of assassins' against guer-
These groups, the communique
charged, had engaged in "genoci-
dal work that had resulted in the
death of nearly 4,000 Guatema-
lans." Therefore, it added, FAR
had "decided to mete out justice."
Tuesday was a bloody day in
this Central American nation and
in all five persons were killed.
Former Guatemalan congress-
man Alejandro Silvan Falla, 40,
marked for death by rightist ex-
tremists, died in a burst of ma-
chine gun fire. His body guard
exchanged fire with the gunmen
and was killed.
Military Backed
It was not clear whether leftist
or rightists were involved in the
attacks on the police director and
the two army men. The rightists
want to topple' the military back-
ed government of Mendez Monte-
negro because they fear increased
taxation and reforms threaten
their privileges.
The president, who took office
in July of 1966, has been ham-
pered in trying to bring economic
development to Guatemala be-
cause of the opposition of the ex-
tremists of both sides.

-Associated Press

Gov. George Romney rings a peace bell on the front porch of a
New Hampshire home to emphasize his calls for a quick settlement
of the Vietnam conflict. Romney is winding up a week long tour
of the state, site of the nations first presidential primary March 12.
Call For Profit Tax
To Bolster Pound

Tax Agents
To Continue Probe
Of $10,000 Bribes
In New York Office
NEW YORK (') - Twenty six
present and former Internal Rev-
enue Service agents and an ac-
countant were arrested on bribery
charges yesterday as the federal
government stepped up a four
year probe of corruption in its
New York tax offices.
U.S. Attorney Robert M. Mor-
genthau said the 27 men had paid
a total of $10,000 in bribes to an
unnamed inspector, who was an
undercover agent.
Morgenthau said the bribers
tried to get the inspector to reveal
confidential information about
themselves, or to squash inquiries
into reported bribe attempts in-
volving them.
There will be a very intensive
investigation of the tax returns
these people were involved in au-
diting, and of the accountants and
taxpayers. they dealt with," Mor-
genthau said.
The arrests were the latest in a
four year investigation that pre-
viously had resulted in the arrest
of 65 IRS employes and 81
other persons, including lawyers,
accountants, tax advisers, and tax-
Morgenthau said a new special
grand jury was impanelled this
week to probe deeper into the bri-
baery charges.
The prosecutor said most of
those arested were veteran tax
men. They were earning from
about $13,000 to about $15,000 a
year, and one had 31 years service,
Morgenthau said.
"We consider this a very im-
portant and difficult case," Mor-
genthau said in a rare personal
appearance at the arraignment of
the 27 defendants before U.S.
Commissioner Clayton D. Hollin-
The accused tax agents were
employed in Manhattan, Queens,
Brooklyn or in Mineola on Long
Island. Four had resigned in the
last year, Morgenthau said.
The accountant, Edward Schna-
bel, 64, of Manhattan, was released
in $1,000 bail on a charge of pay-
ing $500 to the inspector last
U. S. Industrial
Output Climbs
WASHINGTON - The govern-
ment reported yesterday a sharp
climb during December in the na-
tion's industrial output to a rec-
ord high but tempered the news by
disclosing a sharp drop in home
building activity .
A combined November, Decem-
ber increase of 5 points was the
largest in three years.
However the Commerce Depart-
ment said new housing units start-
ed in December dropped by 20.9
per cent to the lowest level since
last June.

(Continued from Page 1) j
son said there are marks of pro-
Declaring that aggression never
will prevail and that American
patience and perseverence will
match U.S. power, the President!
said that:
"But our goal is peace - and
peace at the earliest possible mo-
Stop Bombings
As the core of U.S. policy at
this point. Johnson listed the SanI
Antonio foundation. This was a
reference to a speech he made,
Sept. 29 in -San Antonio, Tex., in
which he said bombings wouldI
stop if talks would "take placeI
promptly and with reasonable
hopes they would be productive."
To that he then added that this
would carry an assumption that
the enemy would not take ad-
vantage of the halt.
As he put it in his State of
the Union message, Johnson omit-
ted the word "assume" and said
that "the other side must not!
take advantage of our restraint
as they have in the past."
Right now, Johnson said, the
administration still is exploring
the meaning of a recent state-
rnent by Hanoi's foreign minister
that once the bombing stops it
will be possiblef or talks to begin.
Seek Cease Fire
"If a basis for peace talks can
be established on the San Anto-
nio foundations - and it is my
hope and my prayer that they can
- we would consult with our al-
lies and with the other side,"
Johnson said, "to see if a com-

{ 1
{f '

and dignity."
For the first time in history,
the President noted, the "hot
line" between Washington and
Moscow was used during the Arab
Israeli war last June.
And a cease fire was achieved,
he said, without a major power
While the United States and the
Soviet Union have taken a num-
ber of important steps toward
international cooperation, John-
son said, serious differences re-
main between the two powers.
The President held out a not-
unfriendly hand to Communist
China, where he said turmoil con-
tinues after a year of violent dis-
ruption and where extremism of
the government has isolated the
people from the rest of the world.
The United States, he said, re-

what he called "a certain restless-
ness - a questioning."
Likening this restlessness to the
stirring and troubling of waters
when a great ship cuts through
sea, the President eaid that "our
ship is moving-moving through
new waters, toward new shores.
He said violence has erupted in
some cities, crime on the streets
increases, farm income is far be-
hind that of city people, hospit-
al and medical costs are high and
rising, and he. declared that all of
this cannot be changed in a day.
But he said he knows that a
change can be brought about and
believes it will be.
The first essential, he said, is
more jobs - particularly for
500,000 persons now unemployed
in the major cities.

pAete cessation of hostilities - mains willing to permit travel of
a really true cease fire - could journalists between the two coun-
be made the first order of bus- tries, to permit cultural and edu-
iness. :ational exchanges and to dis-
"I will report at the earliest cuss the exchange of basic foods.
possible moment the results of Nevertheless, Johnson insisted,
our explorations." the United States must and does
Johnson went to the Capitol to have a military force capably of.
deliver his message after a round deterring any threat by any
of White House conferences with means of aggression.
Congressional leaders and his "We shall maintain it," he said.
cabinet about its consent. For the 1969 fiscal year John-
Looking back over the past son said he is calling for a de-
year, Johnson saw what he term- [ense budget of $77.2 billion, up
ed several welcome developments $2.9 billion over the current year.
in the international arena but also Great Prosperity
noted a number of crises. Here in America, Johnson point-
Mid East ed to what he described as more
He said this country will do all accomplishments for the people
in its power to help Middle East- than ever before, the greatest
ern nations to "find the terms of prosperity mankind has ever re-
living together in stable peace corded, but still accompanied by

Plans Biggest Budget in History

LONDON (P)-Chancellor of the
Exchequer Roy Jenkins told Brit-
ons yesterday runaway wages and
profits would be taxed away by the
government lest they imperil the
benefits of Britain's devaluation
of the pound.
"The faster money incomes in-
crease, the harsher must be the tax
increases," Jenkins told the House
of Commons at the start of a two
day debate on the government's
economy package ushering a shift
in Britain's world role and its wel-
fare state.
Economy Ax
The threat of tax increases fol-
lowed the swing of the economy
ax by Prime Minister Harold Wil-
son. Jenkins said the two must go
together to keep the economy in
balance so it can concentrate on
exports. He predicted harsh taxes
in any event, no matter how "un-
popular and unpleasant."
His sobering speech restored
calm to London's financial district.
The financial community, now

deeply suspicious of the Labor gov-
ernment, had thought the spend-
ing cuts announced by Wilson
would be all-and that they would
not be enough.
Jenkins indicated he was willing
to give the .unions a chance to
limit their wage demands volun-
tarily before stamping on them
with any punitive taxation. Just
before he spoke, the General Coun-
cil of the Trades Union Congress
announced it would hew to the
government's guideline of a maxi-
mum 3.5 per cent for wage in-
creases this year.
He said the government would
hold expansion to 4 per cent this
year and next.
Military Commitments
The economic debate winds up
today with a vote on a Conserva-
tive no confidence motion crit-
icizing the government for ren-
eging on its military commitments
east of Suez. Iain Macleod, Con-
servative party financial spokes-
man, called the package "a shab-
by political compromise."
Thirty four members of the
Labor party's left wing introduced
a motion accusing the government
of a "wide ranging assault on the
social services." Labor party man-
agers worked to keep them from
abstaining in tonight's vote. Even
if they do, the government's Par-
liament majority seems in no

4t ~ -



i I '

t __________ ___ .._ __. _ __ .

Businessman-Toledo, Ohio
FRIDAY-7-30 P.M.
1502 Hill Street





World News Roundup

By The Associated Press
STANFORD, Calif. - America's
only living heart transplant pati-
ent was so improved yesterday on
his 12th day with a dead woman's
heart that he was allowed up for
an hour in a chair.
This was Mike Kasperak's first
time out of bed since the 54-year-
old retired steel worker under-
went an emergency operation last
Sunday for the removal of his gall
bladder to ease the work of an ill
functioning liver.
"His liver function is much im-
proved," the latest medical bulle-
tin said.
CAPE TOWN, South Africa -
Dr. Philip Blaiberg walked around
his sterilized room at Groote
Schuur Hospital yesterday to show
his wife and daughter how well
he is recovering from the world's
third human heart transplant 15
days ago.
Supported by a nurse, the Cape
Town dentist moved slowly but
surely as they watched proudly
through a glass partition.

South Vietnamese Ambassador
Nguyen Huu Chi expressed belief
yesterday that any meaningful
peace proposals from North Viet-
nam would come through diplo-
matic or secret channels.
Chi, who heads Saigon's ob-
server mission to the United Na-
tions, thus took a view opposite to
that expressed by Secretary Gen-
eral U Thant about recent public
statements made by represent-
atives of the Hanoi Communist
The latest Hanoi policy state-
ment, given out in Paris on Tues-
day by Mai Van Bo, head of the
North Vietnamese mission in the
French capital, reiterated the posi-
tion that peace talks will start if
the United States unconditionally
stops bombing the North and ends
other acts of war.
MINOT, N.D. - An Air Force
tanker plane crashed shortly after
takeoff yesterday, killing 12 of the
13 airmen aboard, including Maj.
Gen. Charles M. Eisenhart.

L I,
The 53-year-old Eisenhart was
vice-commander of the 15th Air
Force and a much decorated com-
mander in the Pacific theater
during World War II.
The crashralso claimed a heavy
toll of other high officers from
March Air Force Base in Califor-
nia. Among them were three colo-
nels, three lieutenant colonels, a
major and a captain. Three en-
listed men also perished.
retary General U Thant reported
Wednesday that Israel and the
Arab nations want the talks now
under way with Middle East,
peacemaker Gunnar Jarring to
continue. But he added that the
talks "have not reached the stage
at which any conclusions can be
Thant, reporting to the Security
Council, said Jarring's talks with
Israeli, Jordanian and Egyptian
officials in their respective capitals
had covered the "large and funda-
mental questions" that have con-
tributed to 20 years of tension and
bloodshed in the Middle East.

Times Square Two
"Worth checking out .. ."-A.A.P. LIBRARY
Saturday 8:00 $2.00
Sunday P.M. per person
330 Maynard
director, Lloyd Bacon, 1940
Exciting drama of gangsters and clergymen. Mob-
ster Robinson masquerades as a monk in a monas-
tery while plotting revenge on the underworld.

Company of 65, including Symphony Orchestra
"Coppelis"-Music by Leo Delibes
(in Three Acts)
, ~WED, JAN- 24 . 30 l

MON.-TUES., MAR c4-5
011 cAN SIS FsO e VICARLA AB~EEN The.Ht Musical

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