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August 08, 1973 - Image 3

Resource type:
Michigan Daily, 1973-08-08

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Wednesday, August 8, 1973


Page Three I

Agnew under
investigation by
Justice Dept.
for kickbacks

WASHINGTON(R) - Atty, Gen. Elliot
Richardson decided yesterday to keep an
investigation of an alleged kickback
scheme involving Vice President Spiro
Agnew inside the Justice Department and
not turn the case over to Special Water-
gate Prosecutor Archibald Cox.
Richardson made the decision after dis-
cussing with U. S. Atty. for Maryland
George Beall the ways to proceed with
the probe which includes Agnew's hand-
ling of state and local building contracts
while he was Maryland governor and a
Baltimore County executive during the
THE INVESTIGATION involves charges
of bribery, extortion and tax evasion.
There were reports that the probe also
involved the award of federal contracts
in Maryland let by the General Services
Administration (GSA) since Agnew be-
came vice president in 1969. However,
Justice Department officials refused to
confirm that aspect.
AP Photo Agnew, in a statement issued by his of-
AGNEW: "I have been informed that I am under invests_ fice Monday night, confirmed that he was
tinder criminal mnvestigation but denied
gation for possible violations of the criminal statutes. any wrongdoing.
- - ---- - - -
CivS hurt in
Festival news

terday confirmed that the department is
investigating an alleged kickback scheme
that a newspap-r chain reported may in-
volve payments of up to $50,000 to Agnew.
Knight Newspapers reported yesterday
that federal investigators are probing al-
legations that Agnew received weekly
$1,000 payments from contractors while
a Baltimore County official, and $50,0
after he became vice president.
Justice department spokespersons re-
fused to comment on the Knight story, but
other department sources confirmed that
Republican fund-ruising practices and con-
tribhtors are i-ol-ed in the probe.
THE KNIGHT STORY also said inves-
tigators are checking information that
leading campaign fund-raisers for Agnew
sought contribttions from contractors in
exchtnge for stile and federal contracts.
Beall met privately with Richardson for
at least an hour in the attorney general's
office, then returned to Baltimore, where
he has been directing the investigation by
a task force drawn frou the Justice De-
partment and Internal Revenue Service.
The investigation reportedly is still in
its preliminary stages with many of those
involved not yet having appeared before
the federal grand jury which is hearing
evidence in the case.
DESPITE THIS, Beall served A'new
with a letter last week officially notifying
the vice president that he was tinder in-
vestigation. The letter was first cleared
by Richardson.
The vice president retained the New
York law firm of Paul, Weiss, Rifkind,
Wharton and Garrison to represent him.
His principal attorney, Jay Topkis, a part-
ner in the firm, arrived in Washington
Agnew has not been called to testify in
the case nor is he formally accused of any
IF THE CASE proceeded to the grand
jury stage, the prosecutors would have to
confront the constitutional doctrine of
separation of powers, the doctrine Nixon
is invoking in the Watergate case. There
is also the question about whether the vice
president could be indicted for a criminal
offense without first being impeached.
The White House has refused comment
other than to say that it was aware of
Agnew's statement before it was released.
In addition to Agnew, the investigation
reportedly involves a number of the vice
president's closest political associates in


The Ann Arbor Blues and Jazz Festi-
val, a regional success last year, will now
go national. Through a special arrange-
ment with the National Public Radio Net-
work, the three-day event will be broad-
cast "live' in its entirely this year on a
nationwide honkup intilving 96 AM and
FM radio stations in 33 states. All the
music from all five shows of the festi-
val (held September 7, 8, and 9) will be
produced into a radio program over 30
hours in length that will be made avail-
able at no charge to the non-profit non-
commercial stations which are members
of the National Public Radio organization.
What meat shortage?
For those shoppers who have gone hip-
pity-hop to the grocery shop and found
little beef, Wrigley supermarkets in the
state may have the answer - raobit. "In
fact," said Howard Ferguson, general
manager of the chain, "Wrigley has just
received two truckloads of fresh rabbits
which are a good value for the consumer."
Happenings. . .
b . today are many and varied he:ed
hr the U Players' production of Roar of
the Greasepaint, the Smell of the Crowd,
Power, 8 p.m. . . . free pool lessons in
the Union from 5-7 p.m. ... the Stanley
Quartet, Rakham Aud., 8 p.m. . . .
number of films including Montaldo's
Sacco and Vanzetti, Aud. A, Angell, 7:30,
9:30 . . . Clair's A Nous La Liberte, Arch
Aud., 8, 10 . . . Dali's Un Chien Andalu,
and Cocteau's The Blood of a Poet, Nat.
Sci. And. 7, 8:30 . . . and last and cer-
tainly not least, the Grad Coffee Hour, E.
Conf. Room, Rackham, 1 p.m.
A2 weather
Today's weather will be hot and humid
again and a chance of thundershowers.
The high will be "around 90.

Editor's note: Peter Arnett has won a
Pulitzer Prize for his coverage of the
Vietnam war for the Associated Press.
AP special Correspondent
PHNOM PENH, Cambodia - The bombs
fell without warning from the night sky.
The sleeping people of Neak Luong, a
government enclave in a sea of Commu-
nist-controlled territory, awakened to a
hell on earth as their town was ripped
apart by American bombs.
SOME OF the survivors - children with
splintered legs, men with punctured bel-
lies, women with torn limbs - were in
Phnom Penh hospitals yesterday. They
all wore the glazed, hysterical look of
victims of high-intensity bombing.
The Indochina war has produced many
such victims, caught in a crossfire of war
in Cambodia, Vietnam and Laos.
Rocket, mortar and terrorist attacks

aimed at government targets often fall
on civilian populated areas. Phnom Penh
and its suburbs on a number of occasions
have been hit by rocket and terrorist
See CAMBODIAN, Page 10
PHNOM PENH, Cambodia () - A U.S.
F111 struck a friendly village yesterday in
another bombing error near the Cambod-
ian naval base where a misdirected
American air strike left more than 400
The second bombing mistake in 24
hours killed eight persons and wounded
16 in a village on a Mekong River island,
Cambodian military sources said. The is-
land was six miles from Neak Luong,
the town where the U.S. Embassy said a
B52's bombs killed 137 persons and wound-
ed 118 Monday.

gate ci
and fo
Whike 1
the cot
when h
had bee

Nixons lawyers file briefs
By AP and UPI John Dean and Jeb Stuart Magruder im- Cox for the tapes.
HINGTON-While the Senate Water- plicating themselves and other White ON GROUNDS of maintaining
ommittee quizzed its last two wit- House aides in the Watergate scandel. tion of powers, Nixon refused to
Asst. Atty. Gen. Henry Peterson Kleindienst said Nixon appeared dumb- with subpoenas by both Cox andt
rmer superior Richard Kleindienst, founded and very upset at the revelation, ate committee to hear the tapes.
House attorneys filed opening briefs whereas Peterson testified that the Presi- gators for both contend the ta
a federal judge yesterday. The at- dent seemed to be concerned but calm. vital to resolve questions about
contended that the court has no U.S. District Judge John Sirica heard knowledge of Watergate events.
ty to force release of the Presi- arguments by the President's lawyers and The Senate committee held a
tape recorded conversations. by the office of Watergate Special Prose- meeting prior to yesterday's 37th
e recessing until after Sept. 5, secutor Archibald Cox on Cox's suit to public hearings and once again pi
mmittee heard somewhat differing gain access to Nixon's taped conversa- filing a suit similar to Cox's to
s of President Nixon's reaction tions. force release of the tapes.
e was told that some of his aides The hearing was on a show-cause order Chairman Sam Ervin (D-N.C.)
en accused in the wiretapping case. obtained by Cox under which the White members decided at the meeting"
NDIENST and Peterson together House was. obliged to explain why Nixon pone filing suit until c o u n s e I,
td Nixon of accusations leveled by should not comply with a subpoena by See NIXON, Page 10

the Sen-
pes are
day of
try to
said the
"to post-
s to the

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