Milk Money in Question; Connally May Be Involved WASHINGTON (AP)--A 1971 Tax Audit of the Nation's Viewed Lilly Last Year
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U. S NAVAL BASE, GUANTANAMO BAY, CUBA Monday, May 13, 1974 Milk money in question; Connally may be involved WASHINGTON (AP)--A 1971 tax audit of the nation's viewed Lilly last year. biggest dairy cooperative failed to disclose its mas- And the co-op's general manager, George L. Mehren, is sive illegal political donations, and court papers quote quoted in similar fashion as saying Connally's partner the co-op's former lobbyist as saying John B. Connally Collie "got them off on that one, but said he could not may have helped in the case. do it again." Also, co-op lawyertJake Jacobsen once told the dairy The IRS audit began when Doyle Bond, a revenue agent group's officials that Connally, who was from the co-op's headquarters town, San then secretary of the treasury, wrote di- Antonio, began asking about some suspicious rectly to the Internal Revenue Service dis- checks. trict director about the audit, one source said. But the IRS man, R.L. "Bob" Phinney, Lilly said in a letter to Jacobsen that a long-time friend and former business Bond seemed aggressive, and that Bond want- partner r of Connally, denied that Connally ed to "raise an issue over our questionable ntacted him about the matter. expenditures." These expenditures may total several million dollars, recent Connally could not be reached for comment. disclosures indicate. in- His attorney, Edward Bennett Williams, de- The IRS disallowed a few deductions, nied comment. cluding one political outlay that it had The co-op, Associated Milk Producers, Inc. uncovered before the audit began. These employed one of Connally's senior law part- disallowed deductions were merely subtract- ners, Marvin K. Collie, to handle the tax ed from the co-op's loss carryforward, matter. which is the sum of unclaimed deductions Jacobsen testified to Watergate investi- held aside for future years. gators that Connally cleared Collie's hir- ing in advance, several sources said. What the IRS didn't find were $100,000 paid to Nixon fund raiser Herbert L. Kalm- The milk producers' former lobbyist, bach in 1969, at least $91,691 in corpor- Bob A. Lilly, is quoted in public records ate services and money to Hubert H. Hum- as saying Connally "may have resolved" the jphrey's presidential campaign thd year be- iax matter. This remark appears in the involved? fore, another $34,500 or more to Humphrey's handwritten notes of a lawyer who inter- (See MILK MONEY, Page 2) Soviet KGB fails in totally suppressing underground paper MOSCOW (AP)--A year and a half af- statement that they were taking the It was signed by Sergei Kovalyov, ter the Soviet Secret Police thought responsibility for the journal's a Moscow biologist, Tatyana Velikan- they had it suppressed for good, the circulation. ova, a mathematician, and Tatyana underground "Chronicle of Current "Despite the repeated assertions Khodorovich, a linguist. All are Events" has reappeared, reporting of KGB (secret police) and the juri- members of the Initiative Group for as fully as before on what its au- dical institutions of the U.S.S.R. the Defense of Human Rights in the thors consider human rights viola- and not considering the chronicle U.S.S.R. tions in Russia. of current events to be an illegal or A careful compilation of prison slanderous publication, we consider- Dissident sources said they believ- camp news, searches, arrests and ed it our duty to facilitate its ed that no more than several dozen trials--including a full account of widest possible dissemination," the copies were in circulation, but they the nationwide police effort to statement said. expected these to be recopied and stamp out the chronicle--fills the spread like a chain letter. 6 typewritten pages of three new "We are convinced of the necessity Picking up where the last chron- ues just made available to some for truthful information about in- icle left off in October, 1972, issue Western reporters. fringements of the basic rights of No. 28 begins with a preamble ex- Defying the secret police ban on man in the Soviet Union and for its plaining the dangers of publication its appearance, three political non- availability to those interestd" and why it was thought the risk was 2) conformists said in an accompanying the statement said. (See CHRONICLE, Page Page 2--LATE NEWS ROUNDUP Guantanamo Gazette Monday, May 13, 1974 GAZETTEER MILK MONEY- (Continued from Page 1) .a digest of late news 1970 senatorial campaign, and uncounted sums for other i_ i candidates and for office and salary expenses of the group's political trust. Corporate contributions to political candidates are forbidden by federal law, and cannot be claimed as a N'DJAMENA, Chad (AP)--Rebel tribesmen have demanded business deduction on taxes. The milk producers have the release of 30 political prisoners in exchange for asserted themselves that the $100,000 paid to Kalmbach three European hostages, including a woman, held in the was unlawful and have asked for a refund. Two official:s waterless Tibesti Mountains for the past three weeks, of the cooperative have pleaded guilty for their role official sources reported yesterday. The hostages, in paying a portion of the 1968 Humphrey money, and a German Dr. Christoph Staewen, a French woman archeolo- third is under indictment. In the Humphrey case, gist and a French technical assistance expert, were $22,000 of the illegal money was uncovered by an IRS abducted when Toubou Tribesmen overran the outpost of audit in Little Rock after Connally left the treasury Bardai, 1,000 miles north of N'Djamena, on April 21. department. Dr. Staewen is a nephew of the wife of West German Pres- ident Gustav Heinemann. A recent independent audit of the co-op's finances show that by mid-1971 more than $3 million had been PITTSFIELD, Mass. (AP)--Two experts are making the paid from corporate funds to persons apparently invol- rounds at Massachusetts banks, teaching tellers how ved fully or part-time in political activities. to spot a bad check. Ronald D. Strelnick and Edward F. Welch know what they're talking about--they're both convicted check forgers. "We've perpetrated these CHRONICLE - frauds," said Welch, 51, who is still serving time at (Continued from Page 1) the Berkshire House of Correction for Interstate Trans- portation of bad checks. "It gives us the credibility worthwhile. the bank officer lacks." Welch is scheduled for release It said the chronicle had stopped appearing with in March 1975 and is eligible for parole in July. He issue No. 27 because of the "repeated and unambiguous hqs been in prison for 12 of his 51 years and is ace threats by the KGB to reply to each new issue of the panied by a deputy on his bank visits, returning to chronicle with new arrests, arrests of people suspected prison in between. by the KGB of publishing or distributing new or past issues." NAPLES, Pla. (AP)--Most men only dream of deserted "The nature of the moral situation in which people islands, but Lester Norris owns one and he says it isn't found themselves presented with the difficult necessity easy taking care of a paradise. "I wanted a place that of taking decisions not just for themselves does not was close to nature, but nothing fancy," says multimil- need explanation," the preamble read. lionaire Norris, 74, who owns Key Island, a barren but beautiful stretch of beach in the Gulf a few miles south "But continued silence would have indicated support-- of Naples. Norris said it's difficult to maintain his albeit indirect and passive--for these "hostage tac- haven. "You're at the mercy of nature," he said, add- tics" which are incompatible with the rights, ethics ing he has to fight hurricanes, fire, drought, and and dignity of man," the foreward stated. beach erosion. He said he bought his first island 30 On the last page of the latest issue is a one-line no- years ago on a lake in Minnesota, but his wife got tice that "the chronicle will be published in 1974, and poison ivy on her first stay so he gave it away to the dissenters said that a new issue was in preparation to Boy Scouts. cover events from the start of this year. Local Forecast Water status Guantanamo E Gazette Water figures for yesterday: Partly cloudy today and tonight. Visibility WATER PRODUCED: 1,300,000 unrestricted. Winds NE 4-6 Lt. e i . Ma i A knots, becoming SE 8-12 knots JO l IiJ cb . itor- WATER CONSUMED: 1,186,000 this afternoon with gusts to :21knots. High today 87. -l. 50 - 1c . .b.A. .n . WATER GAIN: 114,0001 Low tonight 74. Bay conditions c -n fpf .A S. !.S . S. CS SC 2-3 feet. High AC.S i- y -C.i.c. pIl .. I .c1r tide 0244. A.i A.C.. .A qiS.05,C. WATER IN STORAGE: 18,754,000 Low tide 0926. c, .-5C. S C -. 00 :.rdi. ASC CS Ad CCC-& f., hi c -- 1.iAISSdc.Stl Adpnn ACC-35 C .W,' 41. -1 f- ft", b L--.A .onday,May 13, 1974 Guantanamo Gazette LOCAL--Page 3 as those aspects of life in which * LOCAL service men and women voluntarily *Karate BRIEFS involve themselves in contributing to the improvement of the surrounding Karate classes will be held at community, while maintaining full ef- Camp Bulkeley gym from 6 to 8 p.m. Armed Forces Day fectiveness in the performance of the Monday through Friday and from 10 primary mission.