Watergate interrogator
SEN. LOWELL WEICKER. R-Conn, questions Frederick Laßue, former special
assistant in the White House and John Mitchell's “right-hand-man" of the Com
mittee for the Re-election of the President, as part of yesterday’s Senate
Watergate Hearings.
Distributor calls shortage 're^r
Editor’s note: following is the second part of a series
examining the gasoline shortage.
By PATRICIA STEWART
Collegian Editor |
One local distributor contends the current gasoline
shortage is part of a larger, more serious fuel oil
shortage ana could become critical if ignored. !
"The energy crisis is very real. It’s not
Galen Dreibelbis, president of Nittany Gas and Oil|in
State College, told the Daily Collegian. “One of the
worst things that can happen is if we don't believe
it.” } . '
Dreibelbis, an independent distributor dealing
mainly with City Service Oil Company in Baltimore,
admits he is not a friend of the major oil companies.
He does admit, however, that those-companies have
a real problem with the public’s skeptical view of the
gasoline shortage.
Dreibelbis said he believes the fuel shortage has
resulted from several major problems:
—unrealistic government restraints in the past;
—natural gas shortage;
—extensive use of oil to run electrical generators;
—affluence of American society; and ;
—devaluation and instability of the American
dollar.
The present gasoline shortage, "Dreibelbis said,
was “precipitated by a fuel shortage last winter.”
The major oil companies knew the shortage was
coming, he said, but the crisis came more quickly
than they had expected, placing the Midwest in a
critical situation.
He explained the companies do not have the
refining capacity to produce all the heating fuel and
gasoline necessary and turned to producing fuel
because of the crisis last winter. .
Normally, Dreibelbis said, reserves for fuel are
stockpiled in the fall and reserves for gasoline are
stockpiled in the spring. “When you break that chain
of reserves, yo.u’re in trouble,” he said.
Dreibelbis said he feel£ the shortage problem goes
much deeper than last winter.
He said he believes government controls have
contributed to the problem, citing the freezing'of
natural gas well-head prices as much as 20 years
ago.
“Natural gas is a very important part of our
Prices rise despite
Gov't
to enforce
Phase 4
WASHINGTON (AP)—Phase 4
economic controls will be enforced by
government accountants —not con
sumers who will have few clues as to
whether price increases are legal.
Unlike the Phase 3 freeze, there is no
requirement for merchants to provide
customers with legal price ceilings,
except at the gas pump after Aug. 12,
and the meat counter, where ceiling on
beef prices remains until Sept. 12.
The new regulations, announced
Wednesday allow nearly all manufac
turing and service companies to pass on
dollar-for-dollar their cost increases
since Jan. 1. They cannot, however,
increase their percentage of profit.
It will be up. to the Cost of Living
Council and the Internal Revenue
Service, augmented by 1,200 more
employes, to see to it that the rules are
enforced.
Spokesmen for the IRS and the Cost of
Living Council yesterday said enforcing
Collegian
the
daily
energy smorgasboard,” Dreibelbis said. He said the
price freeze had a “double detrimental effect”—it
caused a shortage of supply while creating an ar
tifically low price for a quality product, thus in
creasing the demand.
“The affluence of . our society” is also a major
contributor to the energy crisis, Dreibelbis said.
“We don’t mind taking a drive on Sunday afternoon
and burning 20 gallons of gas.”
Because of 1 the short supply of natural gas,
Dreibelbis explained, “fuel nil, coal and electricity
had <to take up-the Slack.”
Coal was not used extensively, he said, because of
the undesirability of the burning process. Fuel oil
and electricity were used mainly. Electricity was
oversold and oil generators were needed to keep up
the capacity, he said.
“Oil has been the scapegoat for everybody,” he
added.
Dreibelbis said that because of the natural gas
shortage Con-Edison had used 400 million gallons of
number two heating oil when previously they had not
burned any. “That amount alone would have bailed
us out of last winter’s crisis,” he said.
He said he feels the use of oil to generate elec
tricity is especially harmful because the ratio of
energy produced by burning oil in the home to usable
energy produced by electrical generators is three to
one, representing a loss in energy.
“Another problem is that our refining capacities in
the continental United States don’t enough
refining of sour crude oil,” Dreibelbis jsaid.
He explained that sour crudes, are available, but
because of the high sulfur content, they cannot be
used because of environmental restraints.
The shrinking American dollar on the world
market also adds to the situation, Dreibelbis said,
adding that foreign oil markets likely will tell us,
“You get your'dollar straightened out, then we’ll sell
you some products.”
Dreibelbis said that even if the dollar were stable,
oil imports are not the entire answer.. He explained
that European fields have faced an eriergy problem
for 15 years
Dreibelbis is"optimistic about the energy c crisis. “I
Phase 4 will be more difficult than
previous anti-inflation programs
because the regulations are more
complicated. !
“The details of what to do and how to
do it will be worked out as we* get into it
and see where we’re going]” an IRS
official said. •
Phase 4 unfreezes all prices-by stages,
starting yesterday with food, except
beef, and the health industry. Most other
sectors of the economy will be unfrozen
Aug. 12 with the thaw to be completed by
Sept. 12. ,
By that time most of the economy will
be under strict but flexible controls.
Under the regulations, firms with
sales over $lOO million will haye to notify
the government of price increases 30
days in advance. Companies with sales
between $5O million and $lOO million are
required to file quarterly reports arid
those with under $5O million, but with
more than 60 employes must file an
nually. Firms with fewer than 60 em
ployes are exempt.
These reports will serve as the
primary way of determining whether
price increases are within the legal
limits.
'Suspected violators will face intense
audits from more than 3,000 IRS agents
operating from 68 field offices around
the country, an IRS spokesman said.
Cites 'budget for
Mardian
WASHINGTON (AP)—A former Asked why the committee should
assistant attorney general and Nixon believe him rather than others, Mardian
campaign official contradicted declared : “The only answer I can give
yestiday the Senate hearings testimony is that I have tried to testify to the best of
of atleast four other Watergate figures my ability and belief.”
and insisted he tried to get out of the Mardian said he had no recollection
cover-up as quickly as he could. that campaign director Mitchell
Robert C. Mardian testified he was suggested the burning 'of critiqal papers
told within hours :after the Watergate . at a strategy meeting held in Mitchell’s
break-in that John N. Mitchell had ap- apartment the evening of June 19, 1972,
proved a budget for dirty tricks and that -two days after the break-in.
Mitchell didn’t deny it. . Deputy campaign director Jeb Stuart
Mardian said that, beginning the day Magruder and campaign aide Frederick
of the break-in, “information was im- I C. Laßue have testified that Mitcfiell
parted to me bit by bit, much of it con- suggested the burning. Mardian, Mit
tradictory, which drew me inexorably chell and John W. Dean "111, former
into an intolerable, and, at times, un- White House counsel, | said hie did not,
bearable situation of personal con- with all five persons at; the meeting now
science—a situation in which I was heard’from. i
precluded from acting according to the Mardian is scheduled to continue his
dictates of my personal desires or in- testimony today. | ''i
terests.” Mardian is a builder!in Phoenix, Ariz.
Mardian’s testimony to the Senate .* bad been in charge of the Justice
Watergate committee was interrupted Department’s InternaljSecurity Division
by reports relating to what turned out to until May 1972> wh |g n he joined the
be a hoax telephone call which at first Nixon campaign as a. political coor
fooled committee chairman Sam J. dinator. ! -
Ervin Jr., D-N.C., into thinking In a prepared statement at the start of
President Nixon had agreed to provide ,bis testimony, Mardian said he was told
White House tape recordings. the morning of the' June 17, 1972
The areas of contradiction between Watergate break-in about the event.
Mardian and others included whether i * pnn'imittpp-
burning of papers was suggested Hamilton, asked; “Was there’discussion
whether he asked for FBI reports and that afternoon about a budget that had
whether he advised that Nixon com- been approved for dirty tricks and'black
mittee cash be whisked out of the advance?’.’ !
campaign. “Yes, I believe that was told>to me by
AP wirephoto
But gas
prices see
rollback
WASHINGTON (AP)—President
Nixon’s new Phase 4 price rules will
force rollbacks of gasoline prices in
some parts of the nation, the Cost of
Living Council said yesterday.
But administration officials said
Americans shoulcLexpecTprices on just
about everything else to rise again soon,
although not as much as they might
without the tough ancT'complex price
control system set to go into effect Aug.
12.
A day after the administration
outlined Phase 4 and exempted the food
and health industries from the 60-day
price freeze, Treasury Secretary George
P. Shultz sounded an optimistic note
about the future of the U.S. economy.
“We are going to do better on in
flation,” Shultz promised. He told a
group of foreign newsmen the new
economic measures will significantly
strengthen the dollar abroad and im
prove the U.S. economic picture.
think we can get out of it,” he said, adding that the
United States must watch its reserves and plan
ahead for shortages.
Nittany Gas and Oil now supplies 11 stations in
Centre and Clearfield counties, Dreibelbis said.
The is supplied on a percentage of the
amount purchased in the same month in 1972—80 per
cent for March, ApriTand May; 90 per cent for June;
and 100 per cent for July. s.
“One hundred per cent sounds like We have; all we
want, which iS'not true,” Dreibelbis said. He! added {
that the company has been able “to find enough
products on the open market to keep'from putting
restraints.”
He said the company has been able to give its
stations all the gasoline they needed and the
managers could hold the prices down, i .
“We’re in business to make an honest dollar,” he
said. “We don’t want to do it at the expense of the
consumer.” <
A spokesman at the State Gas and Oil Company of
State College also said the company has received all
the gasoline it’s needed.
He said the company has dealt with Exxon out of
Pittsburgh since 1938 and received more than
enough gasoline to supply the 22 Centre County
stations it services.
He said that Exxon had not enforced any sort of
quota or percentage system and had not given any
indication that the “shortage” would get worse in the
future. 1
A spokesman at the third local distributor—Centre
Oil and Gas Company in Bellefonte—said he does not
like to make statements to the press because they
always get “misconstrued, misconcepted and a few
other mis-es.”
He did say that he deals with the Texaco office in
Pittsburgh. j *
Thomas Yeale, of the main office of Atlantic-
Richfield in Philadelphia, said he feels the shortages
this summer were “spot shortages resulting from
the driving patterns in a particular area.”
He said his company is distributing gasoline on the
basis of 104 per cent'of the total volume last year.
economic controls
George Meany, president of the
AFL-CIO, issued a statement saying
Phase 4.“ spells more had news for the
- housewife and consumer.” Meany said
wages remain under control, the cost of
living is continuing up, interest rates
have soared and profits “are out of
sight.” •
Shortly after Shultz spoke, the Cost of
Living Council released a mass of
proposed regulations [that will govern
price increases in Phase 4.
The oil industry was put under a
complicated and detailed set of new
price ceilings that eould mean lower
gasoline prices at the pump in some
areas.
Gasoline, home heating oil and diesel
fuel were put under a ceiling that limits
prices to the Aug. 12 price plus the Jan.
10 price markup used by the seller. The
markup is the difference between what
He paid for the gasoline ?nd what he
charges. Forcing use [of a markup six
ijionths ago instead of la current higher
one is expected to force some price
rollbacks, said Walker.
In addition, crude domestic oil was put
under a price ceiling of May 15 levels. In
an extremely complex pove, the council
set up a system under which oil
producers can escape tne ceiling in some
cases by expanding thjeir production.
The idea [of the systep is to encourage
more domestic production of oil and help
relieve the current fuel shortage.
dirty
tricks'
cou nte
C BIHDING DEPT.
PATTEB LIBRARY
CAMPUS j
lift COPIES
i
' |
Friday, July 20, 1973 ;
University Park Pennsylvania Vol. 74, No. 13 6 pages
Published by Students of The Pennsylvania State University
s Mitchell
Mr. Magruder at the Airporter Hotel,”
said Mardian. i
Q. Did Magruder tell you who had
approved the budget for dirty tricks and
black advance?
A. He told me the budget had been
approved by Mr. Mitchell.
Mitchell has' steadfastly denied he
approved any bugging! operation.
Frederick C! Laßue, another cam
paign aide, wound up his second day of
Palestinian attacks
Israeli airline office
By PHILIP POPOULOS
Associated! Press Writer
ATHENS, GREECE (AP) A. sub
machinegun-waving Palestinian seized
17 persons in ’: a hotel lobby here
yesterday after failing in an attempt to
shoot up an Israeli airline office. He
threatened to kill the hostages including
four Americans; but let them go 'after
being promised safe conduct to the
Middle East, j
The gunman was escorted to Athens
Airport by the ambassadors, of Egypt,
Iraq and Libya and left aboard a flight to
Kuwait. I i
The hostages; held more than five
hours, were two young sisters from
Texas, a couple from Davenport, lowa,
a priest, two -Greek policemen and
employes of the! hotel.
“I am not afraid to die,” the gunman
told this correspondent in the hotel
lobby. He kept Waving his submachine
gun with one hand and held a grenade in
another.- j
“I have no desire to live,” he said.
“After I shoot these people I will pull the
plug on a hand grenade and kill myself
and everyone else around.
“You pass this on to the Greeks: If the
deputy premier does not come to the
hotel I will shoot the Americans first and
then the priest.;’
The Palestinian spoke through an
Arab-Eriglish interpreter' who came
after the gunman asked to talk to a
foreign news! correspondent. He
demanded that Deputy- Premier 1
Stylianos Patakos escort him to the
airport for safe conduct out of ■ the
country.
But Patakos refused.
“I won’t negotiate with every bum
around,” he said. It was after this that
the three Arab ambassadors entered the
picture. : :
The gunman,; a slender, bony-faced
man in his late !20s, declined to identify
himself but said he came from “oc
cupied Palestine,” meaning former
Arab land that is now part of Israel.
In addition to! his submachine gun, a. <
grenade in his hand and another in his
pocket, the gunman had two revolvers,
apparently taken from the Greek
policemen. j
As he left the hotel with the am
bassadors, the j gunman looked slowly
around him, stared hard at the crowd
gathered outside and then got into the
car of the Iraqi’} ambassador.
The hostages, inside the hotel im
mediately scattered.
Sharon and Diane Lewis, 20 and 18
years of age, j from Sherman, Tex.,
emerged from the hotel.
“He demanded in halting English that
we keep our hands up high,” Sharon
said. “My sister and I who are guests at
the hotel, were simply terrified. I’ve'
read about many persons being held
hostage, and my first impression was
Butz on farm bill
' I !
SECRETARY OF AGRICULTURE Earl L. Butz ta Washington yesterday spoke
out against House action to ban food stamps for strikers, an amendment to the
farm bill. The Jbill also wopl<}- eliminate billions of dollars currently going for
subsidy|aynjepts to farmers'. "
U.S. POSTAGE
STATE COLLEGE
PA. 16801
PBRJfTT NO. 10
testimony before Mardian took the stand
and again recounted how at a meeting in
Florida March 30, Mitchell deferred
action on the bugging plan. Mitchell has
testified he rejected the plan at that
meeting and Magruder has said Mitchell
approved it. , '
Laßue has pleaded guilty to a single
count of conspiring to obstruct justice in
the cover-up plot and is awaiting sen
tencing.
not always to give in to their demands.
“I didn’t think he would really want to
shoot anyone, despite his threats. He
was a pure coward.”
But during the conversation between
this correspondent and the Palestinian
under a marble stairway inside the
hotel, the gunman seemed to be most
menacing toward the couple from
Davenport, lowa, Christian and Anne
Sweetman. Sweetman, 50, pointed out to
the gunman that he was a pilot for an
American oil company in Saudi Arabia.
But this apparently did not prompt the
gunman to ease up.
The drama began a few minutes
before noon at the El A 1 office in central
Constitution Square. An EI.AI security
guard noticed a man with a "submachine
gun enter the outer door of-the office.
The guard triggered an automatic lock
on an inner glass door.
The man then tried to batter in the
door, but it held and he raced away down
a side street into the Amalia Hotel.
There he rounded up 40 hostages, but
soon let all but 17 go.
Police surrounded the hotel, placed
sharpshooters in strategic locations and
then tried to negotiate with him, but
failed because of language problems.
The gunman then asked to speak to a
foreign newsman, and this correspond
ent was invited in. We talked through a
hotel employe who spoke both English
and Arabic. But first the employe
searched me for weapons at the
Palestinian’s request.-
Flashing a nervous smile the gunman
began to berate Israel and American
support of Israel, and displayed fury
that he had been barred from entering
the El A 1 office;
While he talked the gunman kept
waving his submachine gun around,
generally pointed toward the hostages,
but once or twice held it steady at me.
After our conversation, I took a
cautious step away and said I would
inform police of the gunman’s demands.
He didn’t react so I walked out.
I looked back from the door and the
Palestinian was still waving his gun.
A short while later the three Arab
ambassadors arrived at the hotel and
after a long conversation left for the
airport with the Palestinian.
A previous attack on the El A 1 office
took place Nov. 27, 1969. Two gunmen
blew up the office, killing a 2-year-old
boy. Several other persons were
wounded.
Weather
Increasing cloudiness and warm today
with showers developing this afternoon;
high of 83. Cloudy with showers tonight
and tomorrow. Low tonight of 65; high
tomorrow of 76. Mostly cloudy and cool
Sunday with a chance of showers; high
of 76.
Ap wireohoto