February 21, 1975

White House press sec Ron Nessen says there can be no compromise on goals of Pres Ford's econ‐energy programs despite wide margin of Sen vote on bill delaying for 90 days Ford's increased fees on imported crude oil (S)

Fed Dist Judge Morris E Lasker rules that Rikers Island inmates are unconstitutionally denied rights, including adequate recreation periods and right to be held under non‐maximum security conditions; orders NYC to extend recreation time and to institute classification system to identify detainees who need maximum security; judge's decision last yr led to closing of Tombs; decision technically applies only to 350 inmates transferred to Rikers Island from Tombs, but standards are expected to be applied to other inmates at Rikers Island and in other city prisons (M)

CIA Dir William E Colby says ‘exaggerated’ charges of improper conduct by CIA puts Amer intelligence ‘in danger,’ testimony before HR Appropriations Subcom on Defense; says ‘misrepresentations’ by critics of CIA in news media and elsewhere have jeopardized relations with intelligence agencies in other nations, raised spector of peril to Amer spies abroad and lowered morale in CIA; confirms that names of 4 members of former members of Cong, including ‘at least a couple’ of unnamed opponents of Vietnam war, were entered in CIA files; says that with exception of 1 file on deceased Congressman, which is ‘still extant,’ files are either inactive or were destroyed in ‘74; Colby says he welcomes examination of purposes and conduct of US intelligence community by select coms established in both HR and Sen and by White House comm; Colby challenges as either ‘false’ or as ‘misrepresentations’ several allegations about CIA activities; says he can find no evidence to support account published last mo by NY Times, quoting unnamed former CIA undercover agent's description of clandestine surveillance of dissident Amer citizens in NY area; most members of subcom are sympathetic of Colby's efforts to improve CIA and to end what dir insists were ‘mistakes’ that were ‘few and far between’; Colby submits to panel a copy of testimony he gave Jan 15 to Sen com, along with 5 pages of additional information about CIA activities in US; only sharp questioning from panel is from Repr R N Giaimo; subcom chmn Repr G H Mahon praises, by name, each of men who has served as CIA Dir since CIA's inception in ′47; rarity of public testimony noted (L)

NYC Civil Ct Judge Louis I Kaplan says he presented to Mayor Robert F Wagner in ‘60 evidence of criminal fraud by same group that is now involved in nursing‐home investigations, testimony before Temporary State Comm on Living Costs and Econ; says he cannot explain why his rept never reached Dist Atty's office nor why City Hall, instead of prosecuting offenders, awarded them increase in rates for welfare patients; lr introduced into record from present Dist Atty Robert M Morgenthau to Assemblyman Andrew Stein says thorough search has found no indication that rept was ever received by Manhattan Dist Atty's office; Stein says ‘all roads lead to Mayor Wagner’; announce he will call Wagner to Mar 6 hearing for explanation; hitherto‐unpublished extracts of testimony in ‘59 by nursing‐home operators Bernard Bergman, Eugene Hollander and Aron Maged disclose they acknowledged they had knowingly filed false affidavits in order to increase their welfare payments; rept, summarized in ‘59 by Jay B Abberman, who was Kaplan's chief investigator, says Bergman aide Max Lewke admitted under oath that he knowingly filed false staff repts, certified by Bergman accountant Samuel A Dachowitz; Abberman testifies on Feb 20 that in ‘60 Bergman was leading operator of nursing homes in NYC and central figure in welfare investigation along with relative Ben Zion Frankel and Hollander; at time, Asst Dist Atty Harold Blank was conducting ind investigation of practice; investigation ended with grand jury presentment noting abuses in care and in regulation, although no evidence of indictable crime was disclosed; Kaplan and Abberman identify Bergman as promoter described in rept as having organized 25 nursing homes; Kaplan says Bergman was not listed as operator of any of them and could not be directly accused of fraud; Kaplan's rept computes that nursing homes cheated Welfare Dept of $3.7‐million in 2 yrs by billing for services of nonexistent nurses and aides; denies any pol pressures on him but says there was disagreement between him and City Admr Lyle Fitch, who follows Kaplan to stand, accomapnied by former deputy admr Henry Cohen; illus (L)

efforts by Sen J B Allen to foil Sen reformers attempts to modify Sen's filibuster rule are successful; Sen W F Mondale, chief sponsor of reform proposal that would have required 3/5 vote to cut off debate instead of 2/3 vote, says he does not know whether it will be possible to raise matter again this yr; reformers had won favorable ruing from Vice Pres Rockefeller but Rockefeller was later forced by parliamentary situation to rule in favor of Sen Allen, who promptly began filibuster (L)

NYS Regents Bd on Feb 20 softens its earlier opposition to use of ethnic balance as measure of integration by implicitly returning to Educ Comr power to move against dists with racially imbalanced schools; returns to concept of requiring schools to reflect approximately racial composition of dist as whole; Educ Comr Ewald B Nyquist agrees after Regents' action that new policy backs away from earlier disavowal of ethnic ratios; will examine new policy as it affects schools in Utica, Mount Vernon, Lackawanna, Newburgh and Buffalo, which he had suspended following adoption of Jan statement; prefatory remarks in newest statement are basically against busing and against balance, noting ‘massive’ busing is not productive educ and ‘quantitative measures’ of racial enrollment offer no protection for child's educ opportunity; sec followed by 5 principles that are more favorable to busing and to approximate racial balance among a dist's schools; Regents Dr Kenneth B Clark and Genevieve Klein vote against statement and Willard Genrich abstains; Joseph C Indelicato and Joseph T King absent from voting because of illness; text of Regents statement; illus of bd member William Jovanovich addressing fellow members of NYS Regents Bd (L)

AMA files suit in effort to block implementation of HEW regulations that would set up system of med peer rev to evaluate physicians' decisions to hospitalize Medicare and Medicaid patients within day of admission; assn strongly objects to inclusion of nonphysicians on proposed rev coms; suit contends regulations would establish ‘complex, confusing and cumbersome scheme’; AMA pres Dr Malcolm C Todd claims sole objective of regulation is cost cutting; holds regulation would, in fact, increase cost of care while reducing quality; other objections noted (M)

NYS Ins Dept rept finds that high risk drivers rather than low‐risk drivers have recd largest reductions in amount they pay for personal injury liability ins since inception of no‐fault system in ‘74; indicates that rates of 15 leading insurers for personal liability injury premiums have been reduced by 19%—4% more than minimum ordered by State Legis; shows that motorists under no‐fault have saved $148‐million; says $103‐million of saving accrued from permanent rate reductions averaging about $15 per car annually while $45‐million represented 1‐time cash refunds or credits that will not recur; indicates that cos have further reduced premiums for some or all of their policy holders in amounts between .5 and 4.5%, except for NY Central Mutual, which cut rates 15%; says reductions have added $3‐million to $100‐million realized at inception of no‐fault; makes 1,536 comparisons of rates charged by cos for personal‐injury ins and by insurers pool, which provides ins to high‐risk drivers under assigned risk plan; comparisons show great variation in level of rates charged among different secs of state from Jan ‘73 to Jan ‘75; chart (L)

Chicago (Ill) Mayor Richard J Daley is facing vigorous opposition in Dem mayoral primary for 1st time since he took office in ‘55; is seeking unprecedented 6th 4‐yr term; 3 other Dems are competing against Daley; they are William S Singer, 34‐yr‐old City Alderman who has been campaigning for nearly yr and half, Edward V Hanrahan, 52‐yr‐old former prosecutor and one‐time Daley protege discarded by Daley, and State Sen Richard H Newhouse, 50‐yr‐old black lawyer; some observers feel that possibility of toppling Daley is real; number of his closest associates have been indicted, and some have been convicted, on charges related to their enriching themselves at expense of public; in addition, Daley suffered mild stroke that incapacitated him for 3 mos; is not being backed this yr for re‐election by city's 3 major daily newspapers; repeatedly, Daley, who has is now feuding bitterly with press, has been asked about propriety of awarding $5‐million in city ins contracts to law firm that employed 1 of his sons, John; Singer generally is regarded as Daley's most serious challenger; has retained services of media consultant David Garth, who is credited with giving campaign of NYS Gov Carey enormous boost; contest and issues revd (L)

NYS Soc Services Dept reptdly has frozen $23.8‐million in Fed and state payments to NYC day‐care program in move meant to force city to comply with measures agreed to in Oct ‘74 by NYC HRA Admr James R Dumpson to recertify eligibility of 42,000 children in city's facilities and correct health and safety shortcomings at centers; Dumpson, noting that freeze was imposed in late ‘74 but was 1st disclosed on Feb 20, says measure is ‘counterproductive’ and will have effect of exacerbating city's current financial crisis; says most of state's sanctions ‘relate to technical and clerical’ problems which he is correcting; HRA Asst Admr Henry J Rosner comments; Soc Services Comr Abe Lavine says freeze on money will not be lifted until city complies with measures agreed to by Dumpson; says Child Development Agency has been too slow in completing recertification and that there have been inordinate delays in steps to close down or repair as many as 37 day‐care centers deemed potentially hazardous to safety and health of children using them; NYS Deputy Soc Services Comr Greg Coler says that in 1st 2 mos of ‘75 only 10,000 recertifications were sent to state, and 75% of 1st month's submissions were ‘not satisfactory’; assoc soc services comr Sheldon Jaffe says $3.3‐million payment to city which is due in next few wks may be denied for same reasons (M)

Ford Motor Co ‘74 financial rept indicating that its net income dropped 61% in 4th qr and 60% for whole yr is last chapter in auto indus’ accounting for 1 of worst recession yrs and worst qrs in its history; chart compares sales and earnings of Big 4 auto cos in ‘74 and ‘73 (L)

Vatican says views of number of essential RC doctrines professed by Rev Dr Hans Kueng, Swiss theologian who teaches in W Ger, are in conflict with ch; declaration, issued by Sacred Congregation for Doctrine of the Faith, cites Kueng's questioning of dogma of papal infallibility and his opinions on power of ch to teach authentic doctrine to the faithful and on the Eucharist, or holy communion; W Ger hierarchy is understood to have urged Pope not to discipline Kueng; debate over dogma of papal infallibility revd; Kueng illus (M)