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Nixon denies contributions
influenced antitrust action
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COL. ROBERT O'BRIEN will teach a course in swimming instruction of the
handicapped Jan. 13 and 20 at the Bellefonte YMCA. See related story, Page 8.
Employe calls bookstore a loser
By TERES.% VILLA
Collegian Senior Reporter
A University Park Bookstore employe
has said the store is poorly managed and
is losing money, but store managers
disagree.
The employe, who wishes to 'remain
unidentified, said an October audit of the
bookstore showed a loss of $190,000.
Bookstore Coordinator Dayton Henson
who saw• the audit said "We're a little
more than breaking even. We're doing
quite adeqtately financially speaking."
Vice President for Business Ralph E.
"Lilly. who has the audit but will not
release it. also said there is no question
the store is breaking even. He said he
ill release an audit after the bookstore
is in operation a full year—next term.
1k said he will present a report to the
Hi\ ersit, Board of Trustees on the
financial status and progress of the
booksttire
Henson said the store is called the
"mteron bookstore" because if it is
successful and if the trustees approve, a
Selection Committee
question still open
ft. AM' LOWRY
ollegiatt Staff %%rite!
in it . .electionpf a new police chief is
till d question. an even bigger question
College is who will be chosen to
set - \u ,in the selection committee.
\ Monday's Borough CaUncil
mcct mg, newly elected Council
Prcsident Arnold Addison said selection
of tin, committee is one of the more
important issues facing Council.
Although reluctant to say who would
sit on the committee. Addison said it
%timid include at least three council
mcmbe'•s including new Mayor Jo Hays,
ough Manager Carl Fairbanks and
hiniselt as Council President and ex
officio chairman of the Public Safety
Commission.
The committee probably also would
include State College Police Civil
Serx ice Chairman James Elliot and
Charles I. Newman, chairman of
University Department Law
Enforcement 'and Corrections.
Addison 'said there may be an
additional member from the Centre
Regional Council of Governments.
Newl. -elected Councilman Dean
Phillips said he thinks a student,
himself. should be named to the
screening committee to insure that
student and minority viewpoints are
represented.
As a student. Phillips said he is closer
to problems concerning minority groups
and students, notably Lee Coffer, Black
Caucus president, Tony Silvestre,
Homophilq of Penn• State president and
Dorene Robotti, Association for Women
Students president, concerned with
women's issues.
"I could represent these people as an
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the. c o ll egian
Wednesd Ja 9
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daily Vol. 74, No.ay nua ry
80 12 pages University Park, Pennsylvania
Published by Students of The Pennsylvania State University
new store is possible. "If we can prove to
them we're doing all right, I'm hoping
someday we will have an adequate
bookstore," Henson added.
Zilly said lie does not know of a
specific time limit on the store, but the
trustees have agreed the interim store
will be the basis for a decision on a
permanent one.
The employe also said the campus
bookstore is mismanaged because it
should have a better liason with faculty
members than now exists. "There is no
excuse for not having correct books and
supplies. This one area of auxiliary
services is not good here," the source
explained.
Henson said faculty response toward
the store was excellent. Bookstore
textbook specialist, Carl A. Fornicola
with 19 years of experience at the .now
defunct Keeler's, said the store is "doing
fine overall: in fact very good."
Henson said that for one of the largest
universities in the United States. Penn
State has the poorest bookstore
facilities. He said the store has only one
third the space needed.
elected official if I were on the selection
committee," Phillips said.
Addison said he does not feel'Phillips'
non-appointment to this committee
would impare his ability to represent his
constituency.
According to Addison, the committee
will review application letters and select
those to come to State College to be
interviewed. All Councilmen will have
the opportunity to meet with the
prospective police chief and ask him
questions even if they are not on the
committee, he said.
"And we'll (the selection committee)
welcome any input from the
Councilmen," he said.
Addison said the committee only could
recommend their choice of candidates
interviewed, but a final decision would
come from the police civil service
commission and Council.
He said Phillips should not feel
slighted that he was not named to the
Public Safety Committee. Each
councilman, he said, is named to only
two committees and has no time for
anything more.
As a member of Public Works, and the
Authorities, Boards and Commissions
committees, Addison said Phillips is in a
position to provide Council with input
from campus leaders on other important
issues.
In its report of the State College
Borough Council meeting Monday night,
The Daily Collegian did not mention that
Dean Phillips' motion on tax exoneration
policies was passed. Council decided to
use exoneration policies similar to those
used by State College School District,
including non-residencey and financial
inability to pay with an annual $l,BOO in
come as the limit.
SAN CLEMENTE, Calif. (AP)
President Nixon yesterday
acknowledged he took "traditional
political considerations" into account
when he ordered a controversial 1971
hike in federal mile price supports.
Buyt in a pair of "white papers"
issued by the White House, Nixon denied
that pledges of campaign contributions
influenced his action in the milk case or
in settlement of an ITT antitrust case.
Releasing the statements as part of
Nixon's so-called Operation Candor, the
White House said no presidential
documents, files or tape recordings were
being released "in view of the fact they
are on file with the special prosecutor."
The major points in the statements
prepared by Nixon's attorneys were:
The President faced "first and
foremost...intensive congressional
pressure" to increase milk price
supports, and that he also took into
account "economic merits of the case"
and "traditional political considerations
relating to the needs of the farm states."
Nixon "had been informed of the
dairy industry's intentions to raise funds'
for the 1972 campaign," although the
White House asserted that the pledges
were not discussed in presidential
meetings on the milk price support
increase.
Nixon "did not direct the settlement
or participate in the settlement
negotiations directly or indirectly" in
the antitrust case against the
International Telephone & Telegraph
Co., although he did order that an appeal
in one ITT case be dropped an
instruction he rescinded two days later.
At the time, the President "was
unaware of any commitment by ITT" to
contribute up to $450,000 toward
expenses of the Republican National
Convention.
The employe said textbooks are not
big money makers. The markup on new
books is 20 per cent and on used texts is
20 to 30 per cent. Many stores sell other
goods such as supplies, t-shirts and
souvenirs to make a higher profit.
According to this source, the
University is "backing into" the
bookstore, an enterprise students,
faculty and administrators had talked
about f0r.40 years with no action.
Instead of making a large capital
investment in building a new campus
bookstore, the University decided to
open the McAllister store as an
experiment.
University told
local officials
of tax decision
B STEVE OSTROSKY
Collegian Senior Reporter
The University did not keep secret its
decision to remove the names of out-of
state students from the list of students it
sent to the county tax assessor, a
University official said yesterday.
Raymond 0. Murphy, vice president
for student affairs, said he told student
leaders and county officials of the
University's decision.
Undergraduate Student Government
President Mark Jinks and Graduate
Student Association President Roger
Richards were informed last term of the
University's action, Murphy said.
Murphy said Jinks and Richards did
not comment on the University's
decision. Jinks and Richards could not
be reached for comment yesterday.
USG Vice President Frank Muraca
said Jinks did_not tell him about the
University's decision until last week,
when the removal of the names was
noticed.
Murphy and University President
John W. Oswald discussed the tax
situation in November with the Student
Advisory Board, Muraca said.
"We (the SAB) told Oswald he should
give the names of all the students to the
tax assessor this year," Muraca said. He
said there was no mention of removing
the out-of-state students from the
University's list.
Muraca said he and Jinks have "been
working independently of each other"
and that may be why Jinks did not tell
him of the meeting with Murphy.
Weather
Cloudy and cold today with snow mixing
with or changing to sleet and freezing
rain ending by early afternoon,'high 28.
Tonight mostly cloudy and cold, low 23.
Thursday becoming cloudy with a
chance of rain or snow developing by
afternoon, high 32. Sunrise 8:30, sunset
5:58.
The 17-page statement on the milk
case said the economic consequences of
the President's decision "have been
beneficial to the entire country."
The statement said "the political
power of the dairy industry lobby" was
brought to Nixon's attention at the
meeting by then-Secretary of the
Treasury John Connally who was quoted
as having said, "their votes would be
important in several midwestern states"
and that the industry would be making
1972 campaign contributions in
congressional races.
It said that neither Connally "nor
anyone else discussed possible
contributions to the President's
campaign."
Nixon himself concluded, the White
House said, "that the final decision
came down to the fact that the Congress
was going to pass the higher support
legislation, and he could not veto it
without alienating the farmers an
essential part of his political
constituency."
After saying it was also believed that a
1971 hike in support levels would
preclude similar action in the 1972
election year and thus hold the price line
for two years, the statement said:
"The fundamental theme running
through this March 23 meeting were
two: the unique and very heavy
pressures being placed upon the
President by the Democratic majority
leadership in the Congress, and, the
political advantages and disadvantages
of making a decision regarding a vital
political constituency."
The White House statement quoted
Sen. George McGovern of South Dakota,
who was to become Nixon's 1972
Democratic opponent, as having
applauded Nixon's decision to approve
higher supports. It quoted McGovern as
saying on April 1, 1971: "This reversal
can be considered a victory for those in
Congress who spoke out vigorously on
behalf of the dairy farmers."
The White House said the dairy
industry contributed $437,000 to Nixon's
1972 campaign but added:
"It is also worth noting thit the
ultimate contributions by the dairy
industry to the President's re-election
effort were far less than the industry
leaders had hoped to raise; were far less
than the dairy industry gave to other
candidates for the House and Senate,
including many Democrats. and
represented less than one per cent of the
total contributions to President Nixon's
re-election campaign."
The White House statement dealt at
length with Democratic support in
Centre , Inty commissioners and
County Tax Assessor David Barr were
informed of the University's decision,
Murphy said.
"Mr. Barr knew very well out-of-state
students were not on the list." Murphy
said.
Last week Barr told: The Daily
Collegian, "I don't know if the names of
out-of-state students were'deleted "
Murphy said he did not 'inform the
State College Area School District of the
University's decision since it works from
the tax assessor.
But State College School District
Business Administrator Ralph Moyer
last week said he did not know the names
had been deleted, so apparently Barr
had not told the school district.
Barr could not be 'reached for
comment.
University lawyers advised the
University to omit the names of the out
of-state students to protect the
University's interest in a court suit
concerning out-of-state tuition rules,
Murphy said.
In December 1971, two married
women graduate students at the
University of Pittsburgh brought a suit
to change one of Pennsylvania's rules
governing out-of-state tuition.
The rule states that a married woman
will be classified by her husband's legal
residence. The students, Dena Meyers
and Cynthia Jo Samuels, worked in
Pennsylvania for a year, voted in the
state and had state driver's licenses.
But since their husbands lived out of
state, the women had to pay out-of-state
tuition.
Named as defendants in the
classaction suit, which means the
women can represent all married
wotnen classified as out-of-state
students who want to enter into the suit,
are Temple University, Pitt and / Penn
State.
Murphy said the state auditor general,
who establishes tuition guidelines, is
revising out-of-state tuition rules.
Murphy said the suit is still in the
discussion stage.
Congress for higher milk supports and
said White House discussions took note
of the fact that legislation to force higher
supports "had the support of two of the
powerful legislators in the country
Speaker of the House of Representatives
Carl'Albert and Chairman of the House
Ways and Means Committee Wilbur
Mills." Both are Democrats.
The eight-page statement on the ITT
case said there was no relation between
the out-of-court antitrust settlement and
ITT's payment of $lOO,OOO as part of its
pledge to help underwrite the
Republican National Convention
The statement asserted that
settlement of the ITT case avoided a
Supreme Court ruling "and caused the
corporation to undertake the - largest
single divestiture in corporate
history."
During the 1968 - presidential
campaign, the statement asserted, Nixon
made clear that he sought an antitrust
policy free of "unnecessary government
interference with free enterprise."
The statement gave this chronology
In 1969, the Justice Department
brought an antitrust suit against ITT for
its acquisitions of the Grinnel Corp., the
Hartford Fire Insurance Co. and
Canteen Corp.
ITT executives, concerned about the
Justice Department suits. "talked with
various administration officals to learn
their views,"the statement said.
It reported that ITT head Harold
Geneen sought to talk with Nixon
personally in the summer or 1969 but
"the President's advisers thought that
such a meeting was not appropriate, and
the meeting has not held."
Other White House officials. who were
not further identified, talked to ITT
representatives, the statement said, but
those discussions "invariably focused on
the legal and economic issues" of
antitrust policy.
By the spring of 1971, the statement
said Nixon "concluded that the ITT
litigation was inconsistent with his own
views on antitrust policy."
Nixon met April 19, 1971 with White
House aide John Ehrlichman and
George Shultz, then director of the Office
of " Management and Budget.
Ehrlichman contended that an appeal of
Ashear chosen to fill
managerial position
Cindy Ashear (9th-advertising)
was selected as interim business
manager of The Daily Collegian by
the Collegian, Inc. Board of
Directors.
Ashear, who took office Dec. 19,
replaces former Business Manager
John Todd, who is on an accounting
internship in Washington, D.C.
"I hope to carry on the policies
that John initiated, and I also hope
to make some innovations," Ashear
said, adding she plans to make the
buginess operations more efficient.
a lower court ruling was inconsistent
with Nixon's policies
Ehrlichman said, according to the
statement, that "he had tried to
persuade the Justice Department.. to
terminate the appeal" but was
unsuccessful.
The White House account added:
"The President expressed irritation
with the failure of the head of the
antitrust division. Mr.McClaren. to
follow his policy. He then placed a
telephone call to Deputy Atty. Gen
Kleindienst and ordered that the appeal
not be filed "
The next day. then-Atty. Gen. John N.
Mitchell advised Nixon that "it was
inadvisable" for Nixon to stick with his
order to Kleindienst, warning that it
could bring the resignation of then-
Solicitor General Erwin N Griswold as
well as "legislative repercussions."
Nikon then rescinded his order to
Kleindienst and told the Justice
Department to proceed "in accordance
with its own determinations."
Two months later, McClaren prepared
a memorandum outlining a proposed
settlement of the suit, and an out-of
court agreement was reached on July 31,
1971
The White House statement quoted
two former solicitors general, Griswold
and Archibald Cox, as agreeing with the
out-of-court settlement as fair and to the
government's benefit.
The statement gave a separate
chronology on what it called "the
separate and unrelated process" of
selecting San Diego, Calif., as the site of
the 1971 Republican convention The
convention was switched to Miami after
the ITT controversy arose.
An ITT subsidiary, Sheraton Hotel
Corp , offered financial aid` in helping
San Diego hold the convention, but the
statement said ITT was not mentioned
on a "White House staff report" on
possible convention sites to then
presidential assistant H.R. Haldeman
The report, it said, recommended the
San Diego site for a range of other
reasons.
The President himself told Republican
site selectors that whatever they decided
was agreeable to him, although he
subsequently approved the committee's
selection of San Diego.
tQI
~r - ` f
Cindy Ashear
Ashear has worked as assistant
advertising manager, during which
time her responsibilities included
advertising layout and coordinating
salesmen activities.
As business manager, she" will
coordinate the business staff's
activities, handle financial matters
for the paper and work with
Collegian editors to unify
operations.
"It is my hope that we can learn
to work together efficiently,"
Ashear said.
-.klAi
Photo by Ed Palsa