Bearding the Beast
by Ralph Nader
WASINGTON—The anony-
mous ITT whistleblower who
mailed™®o Columnist Jack
Anderson the private two-page
memorandum from Mrs. Dita
Beard, ITT’s chief lobbyist,
may yet be responsible for the
most important reforms for
handling antitrust cases in 35
years.
For a week and a half, the
Senate Judiciary Committee
has held hearings into the role
which acting Attorney General
Richard Kleindienst and other
Administration officials played
in the settlement of the gigantic
ITT antitrust suits and their
alleged connection with ITT’s
offer of gio $400,000 to the Re-
publican National Convention in
Before these
hearings are completed, the
“Beard memo” should go down
in history as the most prolific
engine of testimony to date on
the secret, high-powered world
of huddling politicians and
business lobbyists.
For years, lawyers in the
Justice Department’s Antitrust
Division have been telling close
observers about political fixes
and surrd@iers managed by the
White House or the Attorney
General's office. For years, it
was widely known that ex parte
meetings to privately discuss
settlement terms would be held
between high Administration
officials and political heavies
from big business. For years,
the settlement, or consent
decree, would be announced by
the Antitrust Division with no
explanation for why and how it
came about, except to say that
it was in the public interest. In-
terested persons would then be
given 30 days to challenge the
agreement to the Federal dis-
trict court which had to approve
the settlement. The Antitrust
Division would refuse to divulge
any information about the
case’s background. Routinely,
the court would approve the
brave attempts to challenge the
darkness. This was how many
of the big monopoly or merger
cases have been settled and how
consumers and small business
victims of monopolistic prac-
tices have been treated.
Although the smaller cases are
negotiated at lower levels of the
Antitrust Division, the process
is similar.
settlement of the auto indus-
try’s smog conspiracy case,
several state attorneys general
become so outraged that they
file suit themselves under state
antitrust laws.
The abuses of the consent
decree process are legion. Set-
tlements do nothing to develop
the law, as strong cases tried
and won in court would do.
Third parties who suffer finan-
cial damage, such as business-
men and consumers, are de-
prived of the benefits of a court
trial, which is also a key deter-
rent against future violators.
Law firms with whom Justice
Department officials were for-
merly connected prosper and
open Washington branch of-
fices. Campaign funds often
flow from companies into
politics as indirect recognition
of favorable settlement terms.
But at the top, the Antitrust
Division has been led by men of
esteem within the legal profes-
sion—judges, professors and
practitioners known for their in-
tegrity. In retrospect, they're
often seen as men who might
have been what they should
have been if they could have
been. For they played by the
code of confidentiality. They
were masters of self-censorship
and the limits of political per-
missibility.
Now the ITT settlement story
is oozing out into the open.
Secret meetings, campaign
contributions, clandestine Wall
Street advisers, White House in-
tervention, SEC investigations
of stock manipulations con-
verge to etch a seamy story of
deception. Not a whiff of this
came through in the Justice De-
partment’s announcement of
the ITT settlement last July.
Last week, Sen. John Tunney
sent Mr. Kleindienst a letter re-
commending that he issue two
simple orders that would deter
future wheeling and dealing. He
suggested that all ex parte
meetings and phone conversa-
tions between defendants in
pending antitrust cases and the
government be routinely sum-
marized and made available to
the public. Secondly, he urged
is settled, a detailed opinion of
the reasons for the settlement
be made public. Mr. Klein-
dienst, when pressed by Sen.
Tunney for a reply, was not en-
Had these orders been in
effect when the ITT cases came
up, it is highly unlikely that they
could have been kept out of the
courts.
If Mr. Kleindienst does not
resign, the Senate should condi-
tion his confirmation as Attor-
ney General on his explicit as-
surance that reforms will be
immediately undertaken to
restore the public's dwindling
respect for the government’s
policing of corporations.
To THE POST:
Congratulations on your
editorial of February 17, 1972, in
which you support the proposed
no-faultg@ill of the Shapp Ad-
ministration.
We are convinced that our bill
can deliver better benefits to
the public at lower costs. We are
also convinced that the bill will
only make it through the
Legislature with firm public
below.
Passed, Mar. 6.
Mar. 8.
to, Mar. 8.
support. That’s why editorials
such as yours are so important
in our drive to bring about re-
form of the
surance system which is now a
disaster to the public.
We are going to do everything
we can to improve our bill. For
example, we plan on adopting
your suggestion requiring in-
surance companies to offer pain
and suffering coverage on an
optional basis. This will enable
us to tell the public that our
proposal can give them
everything that they have under
the present system and at lower
costs as well.
We agree that the debate over
no-fault has often seemed like a
bitter feud. We are convinced,
however, that when the final
story is written, our position
will be supported. We are also
convinced that our criticism of
the attorneys’ approach to this
issue is valid. It is interesting to
note that Virginia Knauer,
President Nixon’s Special
Assistant for Consumer Affairs,
has stated ‘‘the techniques
being used by that organization
(The American Trial Lawyers
Association) would appear to be
so devious, misleading and
blatantly self-serving, as to cast
along shadow over the integrity
over the entire legal
profession.”
Putting aside that argument,
we're convinced that our
proposals for no-fault are
supported by the facts. The
recent objective and compre-
hensive studies have concluded
that we need a sound no-fault
law such as the type we have
proposed. For example, the
$2,000,000 two year study of the
U.S. Department of Tran-
sportation, begun under the
Johnson Administration and
completed under the Nixon
Administration, point in the
same direction as the Shapp
Administration’s no-fault bill.
With best regards, I am
Sincerely,
Herbert S. Denenberg
Commissioner
Pennsylvania Insurance
Department
Harrisburg
Gwen Arnaud
Pledges Phi Mu
Gwen Arnaud, 305 Huntsville
Road, Dallas, has pledged Phi
Mu Social Sorority at Bethany
College.
Miss Arnaud, a Dallas High
School graduate, is a freshman
at the Bethany, W.Va., liberal
arts school which is located in
the state’s northern panhandle,
some 40 miles southwest of
Pittsburgh. Current enrollment
by Shawn Murphy
For jurors in Luzerne County,
time is a queer commodity. It
usually means ‘‘sometime’ or
‘““meantime’’ and is almost
always spelled w-a-i-t.
This is the conclusion 1
reached last week after a stint
as a juror at the courthouse, and
is a conclusion which was
shared by every other juror
with whom I spoke. Judge Peter
Paul Olszewski is fond of in-
sisting that ‘‘they also serve
who only wait,” and if this is
true, Luzerne. County is cer-
tainly well served by its jurors.
The week began Monday
morning at 9:30 with the calling
of the roll. Several of the 80
persons whose names were
called had been excused from
jury duty and this was duly
noted by Andrew Mihalko, clerk
to the judges. The rest of us
answered to our names, were
given numbers and waited for
our first assignment.
It was quick in coming.
Twenty-eight names were
drawn at random and those
selected were directed to report
to courtroom one. (Although we
didn’t know it then, there would
be much traipsing back and
forth among the four cour-
trooms during the coming week,
Or wait for the Post next
statewide interest.
From : Franklin News - Herald
A campaign of dairymen
against state Agriculture Secre-
tary James McHale is nothing
more than an attempt to divert
a policy issue into a personality
issue—a scapegoat, if you will.
In pushing for reform—rather
elimination—of the milk control
system in the state, McHale is
following the dictates of the
Shapp administration which
was elected on a promise of
achieving that result. It seems
silly to threaten to petition the
governor to fire his agriculture
the governor’s policy.
The dairymen claim McHale
isn’t really behind the interests
of farmers when he says he is in
favor of cheap food for the poor
of Pennsylvania. In the case of
milk it has long been recognized
that a cheaper product would be
possible if artifical prices were
not imposed by the control
board.
The milk control issue has
nothing to do with McHale. And
his views about helping the poor
are not necessarily in conflict
with his pesition as agriculture
secretary.
McHale is also under attack
for firing the director of the
state Farm Show. While his
action was a heavy handed one,
going against the majority on
the Farm Show Commission, it
was apparently within his pre-
rogative.
“The job is a political one. The
director had been hired by a Re-
publican and fired by a Demo-
crat. Besides political differ-
ences, the ‘secretary and
director were at odds on
operation of the Farm Show.
The Farm Show is an extra-
vaganza which every year
seems to exceed itself in atten-
dance and interest. It also
manages to be a greater finan-
cial drain each year.
Almost lost in the personality
clash is the fact that the deficit
for the show has been escalating
until the loss—made up by the
state—exceeds $500,000 a year.
There can be no argument
benefits from the show. There is
a question of whether or not it
could be more self-supporting.
Maybe a new director can find a
way to bring receipts and ex-
penses into better balance
without affecting participation
in exhibitions, contests and por-
trayals of rural culture.
It is just as possible that it will
Hunter Safety
Course Planned
A hunter safety class will be
held at the Pennsylvania Game
Commission Office: in Dallas
March 18 starting at 12 noon
until 5:30 p.m.
The class will be conducted by
Game Protector Edward R.
Gdosky. Any boy or girl be-
tween the ages of 11 and 16 or
parents may attend this class;
no fees are charged.
often for no apparent purpose.
One wag suggested that the
court officials, ever solicitous of
our health, wanted to make
certain our blood didn’t congeal
during the long periods we
. spend sitting).
But there was a reason for
this first trip to courtroom one,
cost the state more if McHale and it was for the selection of a
succeeds in changing the
schedule to overlap a weekend
and thereby attract more
participants ‘and even greater
attendance.
jury in a civil case involving
automobile accident claims. In
the absence of President Judge
Bernard Brominski, Attorneys
Thomas Mack and Anthony
Panaway began jury selection,
outlining the details of the case,
introducing their clients, and
scrutinizing the prospective
jurors. Implicit in the questions
each attorney asked—Did any
of us know the plaintiff or
defendant? Did any of us know
the other attorney? Were we
familiar with the facts of the
case?—was the hope that the 12
persons finally chosen to decide
the merits of the case would
render a verdict based on the
facts as presented rather than
on personal bias. (The at-
torneys’ caution is probably
warranted—one juror confided
to me that one time, many years
back, a defendant’s attorney
had so thoroughly antagonized
the jury of which she was a
member that “it
everything we could do to keep
the lawyer’s miserable per-
sonality from affecting
verdict.” They found the
defendant guilty anyway).
After the initial questioning
period, each lawyer retired to
his desk to scratch the names of
persons who had not sat-
sifactorily. answered his
questions. Possibly my oc-
cupation bothered one or the
other of the attorneys—
newspaper reporters are
considered suspect in cour-
thouse circles—and I was
bumped.
Feeling not unlike a’ sixth
grader who hasn't made the
baseball team, I settled back to
wait for our next call.
And wait and wait and wait.
We were advised Monday
afternoon that our services
ahhh! but that
we were to report to courtroom
four at 10 Wednesday morning.
After that, it was downhill all
the way.
Page 5
Two more juries were
chosen—both for criminal
cases—but the predominant
memory I have of the last three
numbing monotony. On
Thursday and Friday
especially, when cases which
were to have gone to trial were
stalemated in judges’ cham-
bers, the tedium was so com-
plete that few of us noticed that
the courtroom clock was still
ticking away the minutes on
daylight saving time and was an
hour fast. Had we been sitting
there for two or three hours?
Who coud remember?
By Friday, even those few
jurors who had hoped to serve
past 4 p.m. and thus collect an
extra day’s pay were not
disappointed when Judge
Richard Bigelow told us that
we could go home. We picked up
day plus mileage) and hustled
week was over.
Serving on a jury, with the
possible exception of voting,
may be the only opportunity an
average citizen has to par-
ticipate in his government. He
will not mind the waiting and
the tedium and the sheer
boredom of jury duty if he
believes this service is ap-
preciated and valuable, and
naturally the question
remained: Had the hours and
hours my fellow jurors and I
spent waiting served a purpose?
Judge Bigelow, always a kind
man, assured us that they had.
“The mere fact that you were
here contributed to our being
able to make progress,’ he told
us before dismissing us, ‘and
we thank you.”
Thank you, your Honor.
Publick Occurrences
March 17
Film, ‘Long Day’s Journey into Night”, at Wilkes College,
7 .and 9 p.m. 3
March 17-20 ae
A senior art exhibit will be held at College Misericordia.
MARCH 18
The Huntsville Christian Church will serve its annual ham
and egg supper. Serving will begin at 4:30 p.m. and continue
until all are served. Tickets may be obtained from any member
or at the door.
MARCH 18
A traditional ham and cabbage dinner in celebration of St.
Patrick’s Day will be held at Daddow-Isaacs Post Home, Dallas.
The Legion Auxiliary is sponsoring the event.
APRIL 10-13 !
The Westmoor Church of Christ will conduct a three-day
course for Sunday school teachers of Luzerne County entitled
“How to Teach.”’ Registration must be made by March 15.
March 19
An all-student horse show will be open to the public at 9:30 a.m.
at Highland Acres Equistrian Center, Machell Avenue, Dallas.
MARCH 21 ;
A hoagie sale is being sponsored by Lake-Lehman Band
Sponsors. Orders may be called in to Mrs. William Teske,
chairman, and must be in by March 19.
April 10
Back Mountain Senior Citizens will
Misericordia.
April 11
Back Mountain Senior Citizens will have lunch and tour the
facilities at West Side Tech School. Reservations can be made with
Jack Roehn.
SCHOOL MENU
LAKE-LEHMAN
meet at College
MONDAY—Chili con carne, Italian bread with butter, pineapple
upside down cake, milk.
TUESDAY—Hamburg on bun, vegetable soup, pudding, milk.
WEDNESDAY—Hot dog on bun, potato chips, baked beans, fruit,
milk.
THURSDAY—Oven baked chicken, mashed potatoes, buttered
corn, cranberry sauce, roll with butter, cookie, milk.
FRIDAY—Mini-fish, stewed tomatoes, macaroni and cheese, roll
with butter, fruit, milk.
Ambulance Log
NOXEN
March 7— Willard Crane to the Lyn-Mar Nursing Home. Crew:
Albert Goble, Dave Fritz, James Strohl.
DALLAS
March 7—V/alter Truett, 38% Harris Hill Road, Trucksville to
Nesbitt Memorial Hospital. Crew: Bob Besecker, Dave Carey. Call
taken for Kingston Township Ambulance Association.
March 8—Fr-ances Tracy, RD 4, Dallas to Nesbitt Memorial
Hospital. Crew: Jim Buckley, Dave Carey.
March 8—Fi}-e support, White Birch Trailer Court. Took Phylis
Burket to Nesbitt Memorial Hospital. Crew: Bob Besecker, Jim
Davies, Lynn Shyehan. .
March 9—Chkeryl Havir, Marabee Avenue, from Nesbitt
Memorial Hospital to the Geisinger Medical Center, Danville.
Crew: Leonard F.oginski, Dave Carey, Lois Stredney, R.N.
March 10—Robert O’Brien, RD 3, Dallas to Nesbitt Memorial
Hospital. Crew; Jim Buckley, Bob Besecker.
March Hn accident, Lake Catalpa Road, Roger Mitchell,
RD 1, Dallas t/) Nesbitt Memorial Hospital. Crew: Bob Besecker,
Harold Smith} Dick Disque. i
March 12—Mrs. Stanley Davies, Parsonage St., Dallas to
Nesbitt Memgrial Hospital. Crew: Harold Smith, Jim Davies, Bob
Besecker. | :
EARTH NEWS
The U.S. Air Force admitted this week that it is having dif-
ficulties in: disposing of a powerful herbicide called ‘‘agent
orange.” ;
Agent orange is a chemical spray which was used in Vietnam
through late 1970 to defoliate suspected enemy positions. The use
of agent orange was banned, however, when it was learned that the
ingredients in the herbicide caused birth defects in mice and other
laboratory animals.
A spokesman for the Air Force told Earth News that the
orange in Mississippi, and that another 1.5 million gallons of orange
is currently stored in South Vietnam.
For the past year, the Air Force has been working with the
Environmental Protection Agency in an attempt to find a method of
safely disposing of the orange. Proposals to burn the chemical at
locations in Texas and Illinois have been met with strong objections
by residents in neighboring communities. When agent orange is
burned, it emits massive quantities of carbon dioxide which
pollutes the local atmosphere. ;
The Air Force said it is trying to work out arrangements with
several private companies to burn the unneeded chemical. Once a
site is selected, said the Air Force, the private company will burn
5000 gallons of agent orange each day for 468 days until all of the
chemical has been disposed of.
Howard Schuman, an aide to Sen. William Proxmire of
Wisconsin, told Earth News that an extra $1 billion in aid was given
to South Vietnam, Cambodia and Laos during 1970 and 71 without
anyone, anywhere giving permission for the grant.
The information came out of hearings last week before the
Senate Appropriations Committee. Mr. Schuman told Earth News
that the aid was in the form of left over military equipment and
supplies which were turned over to Southeast Asian governments
by American troops. The Senate investigation revealed that the
billion dollar turn-over could not be accounted for under any
American aid program.
When asked where the authorization came from, Mr. Schuman
ess 00svevecssoone
A 62-year old British inventor claims to have invented a
“chicken powered car.”
Harold Bate of Devonshire told Mother Earth News that he has
been able to convert chicken droppings and other animal manure to
methane gas—producing a virtual non-polluting car. Mr. Bate said
he converted one of his own cars—at a cost of $100 and ** a lot of
elbow grease — to run smoothly and cleanly on droppings
provided by his own chickens.
The Justice Department has gotten an agreement out of the
country’s largest loan company by which Household Finance Corp.
agrees to stop doing a number of things.
Among them are HFC’s promise to stop hiring and loan
discrimination against women, American Indians, blacks,
Mexican-Americans and other minorities; HFC also agreed to pay
more than 700 female employees about $700 each in back pay the
court said the women had lost because they were passed over for
promotions solely because they were women. NI
The court settlement was technically called an ‘agreement’ —
HFC did not have to admit to any of the Justice Department’s
charges. The Justice Department also said HFC denied loans to
people who reside in neighborhoods which are primarily minority
group neighborhoods, and denied loans to people who live in high
crime rate areas.
The agreement also requires HFC to begin hiring blacks and
other minorities—specifying that HFC must hire or promote one
woman for every four branch representatives.
HEC does business in every state except Arkansas and Ten-
nessee and operates 1,280 branch offices.
The U. S. Forest Service this week issued an appeal for help
from the general public in an attempt to locate and perserve
“wilderness areas’’ in the eastern part of the United States.
There are currently 61 officially-designated ‘wilderness
areas’ in the United States—but only four of these 61 are located in
the east.
The Forest Service called on persons with ideas about possible
wilderness areas to contact regional Forest Service offices in
Milwaukee, Atlanta or Washington, D.C.
iis ) oa