April 8, 1974

IRS Comr Donald C Alexander, citing principle of confidentiality between IRS and taxpayer, refuses to say whether $432,787.13 Pres Nixon owes in back taxes includes negligence penalty of 5%, int, CBS TV program Face the Nation; does not invoke principle when he says there was no fraud penalty assessed against Nixon; Nixon's accountant Arthur Blech says he is shocked that issue of negligence has been raised as he cannot see where 'negligence lies,' int; Alexander says for 1st time that IRS's original audit of Nixon's tax returns was not as thorough as it should have been; says previous Pres were treated too leniently by IRS and that practice has been changed; exch between Alexander and CBS correspondent Daniel Schorr noted; Repr W D Mills says he thinks no negligence penalty was assessed, int, ABC TV program Issues and Answers; says it could have happened and 'we would know nothing about it'; Alexander por (L)

sources rept that Sen Watergate com investigators have established that C G Rebozo, Pres Nixon confidant, flew to Catskill retreat of R H Abplanalp, Nixon friend, about 1 wk before controversial $100,000 campaign fund contributed by H Hughes was returned in '73; say investigators believe that Rebozo at time was seeking safe means of returning funds; say that Rebozo subsequently confirmed meeting but said that 'he just flew up for lunch'; William S Frates, Rebozo atty, says that $100,000 in cash contributed by Hughes was same money that Rebozo returned; William E Griffin, Abplanalp aide, denies that meeting concerned return of money; sources rept that com investigators, led by Terry F Lenzner, now theorize that Rebozo sought out H W Kalmbach, Nixon's former personal atty, last Apr to induce him to raise $100,000 needed to replace and return contribution; say that Kalmbach, in effect, rebuffed Rebozo by urging him to tell IRS about distribution of cash; say that investigators now suspect that Rebozo 'tried other routes, like Abplanalp'; Nixon's sec Rose Mary Woods and his bro F D Nixon deny receiving cash from Rebozo; Griffin confirms that he delivered the $100,000 to NY bank last June; calls com theory on Abplanalp involvement 'fantasy' (M)

The time‐honored assumption that parents have the primary responsibility for the college education of their children is being increasingly challenged, creating a situation that could shake the financial base upon which American higher education is built.

Con Ed chmn Charles F Luce says utility will begin eliminating estimated billing throughout its system within next mo and read most of its customers' meters monthly; says switch, which will cost Con Ed $6-million, will enable utility to reduce amt of money owed to co and remove 'most persistent' source of continuing friction with its customers; success of experimental billing in Bronx and Staten Is noted; Luce says Apr billing will reflect drop in fuel adjustment charge of about 10% because of cos increased use of natural gas during March; NYC Consumer Affairs Comr says her office is considering supporting Con Ed's request to Gov Wilson that NYS take over 1 or more of generating plants now under construction (M)

Nixon returns to Washington from Paris Apr 7 after attending Pompidou's memorial service and conferring with several foreign leaders; illus with leaders and in friendly crowd (M)