December 21, 1972

L S Lawrence, deposed head of Shubert Theater Interests, on Dec 20 files complaint with Atty Gen Lefkowitz challenging right of his successors, I Goldman, B Jacobs and G Schoenfeld, to retain power over orgn; accuses successors of 'acting invalidly,' of conflicts of interest and of excessive largesse in distributing foundation funds to favorite charities; Lefkowitz repts he is investigating orgn and accounting of estate of late J J Shubert; Goldberg, Jacobs and Schoenfeld say complaint is groundless; L S Lawrence por

Areas in which NYS newly apptd special anti-corruption prosecutor Nadjari's staff are expected to probe listed

official S Vietnamese sources say, Dec 21, Pres Nixon has urged both Hanoi and Saigon to make concessions toward a peace settlement; one Saigon official denies that request included ultimatum to S Vietnam threatening to cut off mil and econ aid; officials give first repts on visit to Saigon by Gen A M Haig, who reptdly brought a confidential lr from Nixon; details of lr not made pub; US is believed to have asked Saigon to drop its separate peace plan and back instead the private Paris peace talks; Saigon Min Tran Van Lam says there are still some differences between the US and Saigon on current peace proposals but he feels they are 'together'

labor members of Natl Productivity Comm, led by G Meany, meet with Sec Shultz at White House on Dec 20 and pledge conditional offer of cooperation in an extended program of wage and price controls; condition, according to Meany, is 'equity' in administering controls; press sec Ziegler says Nixon 'dropped in' on meeting and told labor leaders he was determined to fight inflation; says Nixon stressed 'value' he places on labor's views; leaders apparently were not asked directly to resume their participation on Pay Bd; walkout from bd last Mar by Meany, Woodcock, Abel and F E Smith recalled; F E Fitzsimmons was only labor member of bd to remain; Rumsfeld recent praise of Meany and labor movement role in early phase of controls program noted; other labor leaders at White House conf are Fitzsimmons, Abel, J H Lyons, C L Dennis, P Hall and P Greathouse

Dec 21: US Defense Dept, Dec 20, says intensive US bombing of N Vietnam in last 2 days caused serious damage to broad range of mil targets; says civilian targets are not being hit, as asserted by Hanoi; dismisses suggestions US engages in 'terror bombing'; other Nixon Adm officials insist US resumed heavy bombing because of Hanoi's lack of seriousness at Paris talks; say Hanoi is entirely to blame for talks breakdown; heavy bombing goes into its 4th day; US mil command announces loss of 2 more US planes, including a 3d B-52; Hanoi radio, Dec 20, says 2 other B-52s and 4 more fighter-bombers had also been downed; enemy shore batteries in Thanh Hoa area hit USS Goldsborough, kill 2 men, wound 3; Defense Dept, for 1st time since intensive bombing was resumed, gives general categories of the targets; dept spokesman J W Friedheim indicates there will be no bombing lull during the Christmas season, as there frequently was before '68; asked if it was not inevitable that some civilian centers will be struck because of the B-52 bombing pattern, says 'We do not target civilian targets'; dept officials say 3 B-52s were lost because they are now operating over a heavily defended area; comments on defense tactics used; current bombing appears to be among the most intensive of the war; Hanoi press agency says raids made Hanoi a 'huge battle site'; says over 30 places in downtown and suburban areas in Haiphong area were attacked; US silent on Polish Govt rept that Polish freighter Jozef Conrad had been hit and sunk by US bombs in Haiphong harbor; Poland reptdly protests to US against 'act of air piracy'

Newark City Council on Dec 21 rejects Police Lt E L Kerr as city's 1st black police dir; vote is 5 to 3 along racial lines; Kerr will serve as acting police dir for 90 days while Mayor Gibson considers new apptmt or resubmits Kerr's name; 5 1/2 hr Council meeting, attended by 400 people, majority of them black, is punctuated by shouting, jeering and foot-stomping; 48 speakers endorse Kerr and urge his apptmt; each of 5 white councilmen, before voting, say their opposition to Kerr was not based on race; 3 black councilmen accuse them of bigotry

FMCS on Dec 20 announces that negotiators for CBS and IBEW Local 1212 have reached tentative agreement on new contract; agreement, subject to ratification by 1,200 members of union, would end strike that has lasted almost 7 wks; spokesmen for CBS and striking union decline to comment on terms of proposed settlement; major issue had been jurisdiction over new and evolving tech; strike has affected CBS employes in NYC, Washington, DC, Los Angeles, Boston, Chicago, St Louis and San Francisco; network has been able to keep its programs on air with little difficulty by using mgt and supervisory personnel to man positions vacated by technicians; union spokesman discloses that Local 1212 members are losing about $336,000 a wk in wages

Fed charges of massive stock fraud that allegedly cost investors $200-million are filed on Dec 20 against top officials of Four Seasons Nursing Centers of Amer Inc, officers of Walston B Co and partners in Arthur Andersen Co; are result of 10-mos investigation into collapse of 4 Seasons, whose stock rose from $11 to more than $100 per share in late '60s before it plunged into bankrupty; 8 defendants are: Four Seasons officials J L Clark, T J Gray and J P Linn, Arthur Andersen & Co partners K J Wahrman and E J Bolka, Walston & Co former vps G R Miller and G H McCollum and Anderson co accountant J E Madole; US Atty Seymour says 'this white-collar crime indictment' represents largest US stock fraud in his memory; says indictment is 1st ever filed against high officers of major Wall St investment banking concern and only 2d ever filed against partners of natl acctg firm; says bankruptcy trustee estimates that investors lost $200-million in collapse of stock on Amer Stock Exch; indictment charges defendants with conspiracy to defraud purchasers of 4 Seasons stock by fraudulently raising earnings of corp to mislead investors into paying higher prices; devices allegedly used to inflate earnings included sham sales of nursing homes, phony construction costs, fictitious franchises, and false financial statements; Fed prosecutor G P Naftalis says that when corp's financial position became precarious, defendants who had purchased large amts of stock began secretly selling it to public through confidential numbered brokerage accts at Walston & Co for profits exceeding $21-million; lawyers for Anderson co issue statement stressing that no charges were made against firm, which was named as co-conspirator; 8 defendants are scheduled to plead to charges in Fed Ct on Jan 2; if convicted, defendants face up to 5 yrs in prison on each count of conspiracy, securities fraud and mail fraud, as well as 2 yrs for counts of filing false financial statements and fines ranging from $1,000 to $10,000; several other officers of corp are named in indictment as co-conspirators, but not as defendants

A Vietnam veteran who had been confined for mental illness shot and wounded two Federal security officers yes terday at Kennedy Interna tional Airport before being captured, the police said. De tails on Page 70.

White House press sec Ziegler announces on Dec 20 that W D Ruckelshaus will continue as Environmental Protection Agency admr; Ruckelshaus says that before agreeing to remain he sought and received assurance from Pres Nixon that he will continue to have 'authority to exercise decision-making power given to admr of this agency by law,' news conf; previous disagreements between Ruckelshaus and Pres Nixon noted

MOSCOW, Dec. 20—Tass, the Soviet press agency, reported from Hanoi today that the latest American air raids there had caused “heavy civilian casual ties” and destroyed “thousands of homes.”

Delta Air Lines: North Central Airlines DC-9 collides with Delta Air Lines Convair-880 jetliner on Dec 20 during takeoff in heavy fog from O'Hare International Airport killing 9 passengers; survivors describe crash; wreckage of DC-9; map of crash site