The daily collegian. (University Park, Pa.) 1940-current, October 11, 1974, Image 1

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    Sanford may be '76
presidential hopeful
K. STEVE OSTROSKV
ollegian Managing Editor
B(IALSBURG Duke University
President Terry Sanford yesterday said
that though he is not really" a
I)entocra tic presidential candidate yet,
he has not ruled out such a move.
Saniord, who was governor of North
carolina from 1961 to 1965 and Was a
(lark-horse presidential candidate in
1472, sail that if Ile didn't think "there
1k as a fair chancq that he would be a
candidate after January 1, "I'd with
draw right now."
A "Citizens Committee to Nominate
Terry Sanford" has been officially
formed, Sanford said.
lint Sanford, chairman of the
Democratic Charter Commission, said
he his decided not to become an official
candidate until the reform charter has
been approved by the Democratic Mini-
Convention which is meeting in Kansas
('ii) in December.
- Most of the Democrats I've talked
v.ith said that we have to rise above
writing the rules, that we have to look
toward the leadership we need in 1976,"
Sanford said.
Sanford said [hit one of the reasons he
still is considering running is that
Massachust,tts Sen. Edward M. Ken
has dipped out of the
.race.
the said tpat Kennedy's withdrawal
meant there was no front-runner for the
Democratic presidential nomination.
"1 don't think front-runner means
anything now. That's why I haven't
decided not to run because there is not
a Iron( -runner "
Sanford said that one thing holding
him back from becoming a 'candidate
%% a s that - I'm not sure you can run for
president from a nonpolitical job."
lie said that his appearance here was
one of two trips he will make this fall in
behalf of the Democratic PartY, and that
he doesn't make more because he
doesn't have the time.
Cernusca hapds
May 23 transcript
SHEILA McCAULEI
Collegian Staff Writer
Undergraduate Student Government
President George Cernusca yesterday
released a transcript of a controversial
tape recorded May 23, and issued a
statement criticizing the University for
its role in the insurance matter.
The tape was subpoenaed by the USG
Senate's special insurance committee for
its hearings. Cernusca did not hand over
the tape at the appointed time and was
voted in contempt by the committee.
The tape is of aconversatiob between
Clair Brown, USG' office secretary, and
Cernusca's former gxecutive assistant
Eric Richardson. Butt after reading the
transcript Brown said the tape had been
"rearranged."
Brown referred to the last page of the
transcript where Richardson talked
about having a "political base" from
which to operate in USG. Brown said that
part of the conversation happened
almost immediately after she asked
Richardson about a cold in his eye. But
the "eye" conversation was listed on
page one of the transcripts.
Cernusca stillfclaimes the tape had not
been edited or rearranged at all.
On the transcript Brown said that the
previous insurance company had been
dropped when it raised its rates by $2O in
one year. Higham, Nielson, Whitridge &
Reid (HNW&R), represented by Mervin
tineath, then had won the contract with a
low bid
Brown criticized Sneath's sales pitch
and presentation and told Richardson
Sneath's low bid was the only reason for
IINIV&R to win the insurance contract
the previous year.
What's
inside
Colloquy presents George Plirript g
From the wires
The arts on campus
Penn State Sport Parachute Club
Keystone Legal Services ip.State College page 10
Wake Forest football preview
Maj.pring in General Arts and Sciences page 16
Federal defense contracts at PSU page 20
Col - legiati7
the
daily
_ "I suspect that President Ford, as long
as he's there, is going to continue to
shine through. While I consider him a
good man, when you look at what he
stands for, you know a Democrat can
beat ihim by reordering the priorities of
the national government."
Sanford said the major problem is
"obviously the economy, and the
economy will probably et worse."
He said he was disappointed with
Ford's latest economic proposals.
"I t i hink he took the wrong approach. It
was a. patchwork approach and .may
miss Idle question greater production
or lower purchasing power." He said
that Ford went halfway both ways and
that wasn't good.
Sanford said Ford missed the high
intermit issue completely. The stock
marktt and many housing and building
businesses have been ruined by the high
iterest..r.ates, he said.
He Said the budget almost could be
balanded just by reducing interest rates,
along .vith less spending by the federal
government.
On Word's proposed five per cent
surch.lrge, Sanford said, "I think that
should! have been step 14 or 15."
He said the,surcharge should not have
been tried until after there had been
attempts to balance the budget, which he
said he thinks Ford isn't going to do.
Sanford said he would favor a subtax
"that for a period of time would lower
taxes or people, in a certain income
bracket," probably the lower income
brackets.
"There are so many inequities in the
higher tax' brackets already, that the
surCha ge will only increase the
inequities," Sanford said.
Sanfqrd, speaking at the Centre'
County IDemocrats Dinner at the Elks
Cohntryi Club, lashed out against much
of FOrdis leadership.
'Nothing seems to be working right
Btown also said on the transcript the
letter of installment Cernusca signed
May I "sounds legally binding." She fur
ther suggested Richardson talk to lawyer
Yates Mast about the letter.
Brown had said at the special in
surance committee hearings she did not
see he letter of installment until the
nigh she testified for the committee. But
yesterday Brown said she heard about
the letter from Frank B. Hall and Co.'s
insurance representative Bryan Hondru,
and from Arthur Williams, head of the
Department of Insurance and Real
Estal l e. - -
In statement about the University's
role in the insurance matter, Cernusca
charged that the University "promoted
the insurance case." He said it did so "by
refusing to issue the mailing list and by
directly communicating its displeasure
with Cernusca and ht,s administration to
the eventual plaintiff (Frank B. Hall and
Co. ).7
Cernusca said the University would not
releae its l flailing list to HNW&R on
May 24, the day he requested it. Cer
nusca als said that action raised
questiOns bout the University's role
because Hall and Co. did not think of
taking legal action until the second week
of June.
The University's policy throughout the
insurance case was that no mailing list
be released to any company while the
case was in court or in danger of being
appealed by HNW&R, who lost the case.
Cernusca said the University would not
openly act against him, but he said it Airas
"convenient for the University to have
this controversy in light of what USG was
involved in at that time (Spring requests
for a University.audit.)."
page 3
page 5 ,
pages 6-7 <
page 8
the government, the economy,
education. We do not have a president
who is inspirational. We. need in the
White House moral leadership. We need,
I think, the spirit of John Kennedy. Not
since Herbert Hoover, have the people
feared so much.
"The only thing we have to fear today,
as I look toward Washington, is in
decision. We need action."
Sanford said the major social reform
needed is to "strengthen the devices of
federalism and move out of the cen
tralized system."
Sanford said he would stress the
development of human resources,
"which means a great deal of things,
specifically increased funding of
education.",
"Federal government has never
supported education strongly," he said.
"The federal government should supply
about one-third of the education fund
ing." The federal government now
contributes about eight per cent of
education funding. •
Another area-which needs change,
Sanford said, is the federal housing
program, which he said hasn't done
what it was supposed to do. lie also said
there should be a new philosophy for
foreign aid. "Often we are just sup
porting dictatorships and the money
does not help uplift the -country or its
people. We have to help developing
countries develop."
Kline: Shapp's integrity proven
By STEVE OSTROSKY
Collegian Managing Editor
BOALSBURG Lt. Gov. Ernest Kline
last night said that the questions on the
integrity of Gov. Shapp's administration
have been laid to rest as a result of the
governor's testimony before the Gleason
committee,
over
Shapp testified last week and earlier
this week in front of the House com
mittee which is investigating alleged
irregularities in state contract . prac
tices.
Kline said he thought the governor had
responded "promptly" to tlte com
mittee, especially when compared to
former President Nixon's s. actions when
subpoenaed by the tSenate Watergate
committee.
He added that he thought there was no
basis for the charges against the
governor.
Insurance case dominates USG
The past fbur weeks have been lively
ones for the Undergraduate Student
Governmenti
The first tiv o weeks were dotted with
USG Senatd l committee hearings in
vestigating possible wrongdoing by USG
President George Cernusea in his
handling of the student health insurance
plan.
The conclusions the committee drew
from those hearings were not favorable
for Cernuscal,
The committee presented 'the Senate
with five articles of impeachment
against Cernlisca for actions they felt
necessitated is removal from office.
11
Only one of hose articles failed to pass
within the committee's closed doors.
Since then !the Senate has voted in
favor of thrEle of the four remaining
a - ticies it considered. The fourth article
was amended to a resolution of censure.
Cernusca can now go to trial by a joint
session of the Senate and the Academic
Assemble for the following charges:
Failure to comply with a committee
subpoena presented on Sept. 24 for a tape
recording. Cernusca was ruled in con
tempt of the committee.
Failure td act in the interest of the
University's student body and corn
mitting what a Centre County Court has
determined tq be an illegal action.
Cernusca was ruled guilty of
misfeasance o office unbecoming an
official of USG. ,
; Guilty of wrongdoing in handling
public affairs jand therefore guilty of
malfeasance in office for signing a letter
of endorsement after supposedly having
been offered a bribe.
The impeachment articles were voted
on amid much controversy over
procedural matters.
The two main problems dealt with the
definition of a "Senate majority" and
with the voting qualifications of a newly
appointed senator.
The • USG Constitution states that a
USG official' may be impeached (in
dicted) by a majority vote ofthe Senate.
' page 11
But the Constitution fails to establish
the exact definition of "Senate
majority," wheth6r it involves a
majority of the entire Senate or a
majority of members present at the
meeting. 1
By JIM KUHNHENN
Collegian Staff Writer
News analysis
Next president and lieutenant governor?
Kline, speaking at the Centre County
Democrats dinner at the Elk's Club,
said, "I hope we can ignore this and get
down to issues "
However, he said that the Republicans
should be careful in their- charges
because of practices used in the GOP
organizations.
Kline, who is seeking re-election with
Shapp, said he feels the governor has
done what he set out. to do.
"In January 1971," Kline said, "we
found a demoralized bankrupt govern
ment, floundering in its own inef
ficiency."
Through the recommendations of a
committee of businessmen, Kline said,
there has been a savings of $122 million
in government operations.
Kline was also proud of the ad-
Fred Stoner, president pro tempore of the impeachment trial, his property,
the Senate 'and acting chairman of the that is, his tuition and room discount,
senate impeachment meetings, twice will be taken away.
ruled that a majority constitutes that of After the impeachment articles are
the members present. His ruling was adopted, Cernusca must be tried by a
challenged both times by some senators joint session of the USG Senate- and the
but to no avail. Academic Assembly.
•
The entire Senate has 34 seats...l, Cernusca claims ' this violates due
Therefore, 18 members comprise a
( process because the Senate is acting
quorum. Stoner's ruling would allow a both as accuser andi juror in his case.
simple majority of that quorum (10 In a federal impeachment case, the
senators) to pass an article of im- House of Representatives is the,accuser
peachment. but the Senate decides guilt.
Controversy has also risen over newly The voting on the! articles showed a
appointed Senator Anita Budinetz. strong pro-impeachment faction in the
Budinetz previously was student in- Senate, although Cernusca does have
surance representative during the some senators who consistently voted in
height of the insurance issue last Spring his favor.
Term. It is possible that some senators voted
Many Senators have feared a conflict
of interests between her former duties
and her. present ones. But in spite of
opposition, the Senate allowed Budinetz
to remain a senator and vote in the
impeachment proceedings.
In the three articles the Senate con
sidered, Budinetz voted in favor of
impeachment.
In view of these two actions, Cernusca
has claimed the Senate is trying to
"railroad" him out of office with no
consideration as to his guilt' or in
nocence.
The Constitution states that an im
peachment trial must be held within
three weeks of the start of impeachment
proceedings.
There have been questions raised as to
when the actual - proceedings began.
Cernusca aides claim the proceedings
began Sept. 9 when the investigation
committee was set up, others claim the
proceedings began when the im
peachment articles were introduced to
the Senate on Sept. 30.
The question has been put to the
Supreme Court which at this time is
deliberating whether it has jurisdiction
over impeachment proceedings.
Other grievances have been filed with
the Court • concerning irregularities in
the impeachment proceedings.
Among them is a suit filed by Cer
nusca charging that impeachment
proceedings have violated his rights
under the United States Constitution. .
Cernusca referred to the 14th
Amendment to the Constitutign which
states that no person may be deirived of
life, liberty, or property without due
process of law.
Cernusca has said that if convicted at
Pitntrk
Ten cents pe , copy
~.,
Friday, October 11., 1974 4 •
Vol. 75, No. 19 20 pages University Park, Pennsylvania
Published by Students of Tpke Pennsylvania State University
DUKE UNIVERSITY PRESIDENT TERRY SANFORD (left) may be a
Democratic presidential candidate in 1976. Lt. Gov. Ernest Kline (right) is run
ning for re-election this year with Gov. Shapp. Both men spoke at the Centre
County Democrats Dinner last night at the Elks Country Club in Boalsburg.
ministration's funding-of education. He
said state subsidies Co public schools
have been increased by more than $4OO
"million, helping local districts cut back
on property and real estate taxes.
He said state support for Pennsylvania
colleges has increased by $64 million
since 1970, so now state support of the
college system is more than 56 per cent.
Among the other major ac
complishments of the Shapp-Kline ad
ministration that the lieutenant
governor listed were:
—No fault auto insurance.
—Reducing the state income tax from
2.3 per cent to 2 per cent.
—Eliminating the six per cent sales
state tax on utilities and household
necessities such as soap and detergent.
Holding theltrowth of state em
ployes to less tWfine per cent after the
for impeachment with the assumption
that a trial will bring forth more
evidence and therefore a decision as to
Cernusca's guilt or innocence will be
easier to make.
But an impeachment trial will not
have any more strength to get to the
truth than the investigating committee
did.
USG only has• a hold over its own of
ficials, it cannot subpoena officials
outside of USG because it lacks judicial
power. As a result, hopes of obtaining
more evidence through the trial are
minimal.
Cernusca is now left withiour options:
He can resign, but. - stillinight not
escape impeachment and conviction.
The question has not yet been answered
Jury selection today
WASHINGTON (UPI) After eight
ruling days, U.S. District Judge John J.
Sirica yesterday completed preliminary
screening of prospective jurors for the
Watergate cover-up trial and pro ared
fof final selection of 12 jurors end six
alternates on Friday.
A spokesman for Sirica said the judge
and counsel for both sides had approved
at a jury pool of 45 District of Columbia
citizens from which the ;final panel will
be selected. Opening arguments were
scheduled for Monday.;
The only possible barrier remaining to
the start of the trial waslan appeal filed
by the five defendants protesting
Sirica's decision ea lier yesterday
revamping procedure : for the final
stage of jury selection. k
In keeping with the strict secrecy that
3 COPIIIS
number had increased by 32.5 per cent
during the Shaffer administration.
—Reducing the corporate net income
tax from 12 per cent to 9.5 per cent, thus
improving 'the climate for industrial
expansion in the state.
Increased benefits and services to
senior citizens through the state lottery.
"The list goes on and on," Kline said.
He added thai Drew Lewis, the
Republican gubernatorial candidate,
has given the impression that Shapp has
not initiated any new programs while in
office. Kline said it was not true.
Kline said among the future goals of
the Shapp administration are ac
celerated economic growth, a
revitalization of the state'scoal industry
and "a Public Utilities Commission that
is as concerned about the public as it is
about the prciblems of the utility in
dustry."
as to whether a government official can
be impeached after he has removed
himself from office.
He can remain in office and go
through an impeachment trial.
He can appeal the entire im
peachment proceedings to the USG
Supreme Court.
He may take the matter to civil
court. He has threatened to do so in the
past.
The last option would . have the
greatest possibilities of establishing
Cernusca's guilt or innocence.
But this would only come about 4,a
repeat of last summer's court hearings
took place. All the people involved in the
issue would have to be recalled.
Questions concerning bribes and kick
back money would have to be recon
sidered.
Because last summer's hearings dealt
solely with the breach of an insurance
contract, these questions remained
unanswered.
The Senate's committee also failed to
come up with adequate answers to these
questions. But it is these items that are
now being debated because of the im
peachment articles.
The only article which did not question
illegalities in Cernusca's handling of the
insurance affair was the article dealing
with abuse of power. However, the
Senate voted to change that article to a
resolution of censure, and it is no longer
being considered.
has been clamped on the trial that began
nearly two weeks ago, their appeal was
filed under seal. The U.S. Circuit Court
of appeals for the District of Columbia
took no action immediately .
The 45 prospective jurors still in the
running were all that remained from 315
originally summoned for possible ser
vice. More than half were excused
immediately when they pleaded that
being sequestered throughout the three
to four-month trial would cause them
personal hardship.
Weather
Fair and mild through tomorrow. Partly
cloudy and cooler Sunday. High today
and tomorrow, 72-77. Low tonight, 50.
High Sunday, 66.
PA. 16801
PERVTT 110.1 r
Photos by Ed Golomb