THURSDAY, JANUARY 19, 1969 THE MICHIGAN DAILY PAGE THREE THURSDAY, JANUARY 18, 1968 THE MICHIGAN DAILY PAGE THREE Castroite Group FBI Holds PROGRESS AHEAD: 26 Federal Johnson Seeks Tax Increase; Admits Killing Two 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, 1966. 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- quarters. 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- rillas. 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 A FAMILIAR RINGI 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. R UNA WA Y WAGES: 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- payers. 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- ger. 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 August. 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- gress. 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- ment." 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- , E I (1 { 1 {f ' } t 1 I 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 confrontation. 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 danger. 4t ~ - COLLA GUS EGE LIFE featuring YEA GER i I ' I'i SII .1;, t __________ ___ .._ __. _ __ . Businessman-Toledo, Ohio FRIDAY-7-30 P.M. DELTA SIGMA DELTA 1502 Hill Street SPONSORED BY CAMPUS CRUSADE FOR CHRIST I 0 1- 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. UNITED NATIONS, N.Y. - 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 regime. 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. UNITED NATIONS, N.Y.-Sec- 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 drawn." 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. PHANTAZMAGORIK ! The Times Square Two "Worth checking out .. ."-A.A.P. LIBRARY Saturday 8:00 $2.00 Sunday P.M. per person 9 TEB1U1(Y iUSB 330 Maynard THURSDAY & FRIDAY BROTHER ORCHID 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. presents THE NATIONAL BALLET RESIDENT BALLET OF WASHINGTON, D.C. Company of 65, including Symphony Orchestra PERFORMING' "Coppelis"-Music by Leo Delibes (in Three Acts) , ~WED, JAN- 24 . 30 l MON.-TUES., MAR c4-5 ON8C AR /so taring JEAN PIERRE AUMOIT 011 cAN SIS FsO e VICARLA AB~EEN The.Ht Musical