TRADEWe're losing •• out).'_in world' markets'.':;

Pittsfieid, Massachusetts, Wednesday^ Jiily 28, 1971

. . /.Forecast;--Berkshire Weather Serrle*"-'

Fair, • cool tonight; low in UVe:50s.Sunny, .increasing cloudiness,warmer, more humid tomorrow,scattered showers' in the after-noon, high in the low 80s.

40 Pages—Ten Cents

U.S. Nears Record in Red-Ink Spending

THE FIRST AMBASSADOR l° Canada from Comnuuu-t China, Huang HIM,passes a Royal Canadian mounted policeman on hi AS a) lo pre eul lus ciedeulial 111

.Ottawa. Hua officially took up .his dvities. after meeting with'DeputyGovernor General-Wilfred Judson yesterday. U.S. officials in- Washington, meauwliilc,. said arrangements

. for [President Nixoii's visit to Peking are to'Lo handled through Una's .embassy. (UPI)

From News Services

WASHINGTON — TheNixon administration rolled outfinal figures today on the na- •lion's second largest budgetdeficit since World 'War II, afiscal 1971 red-ink figure be-tween $20 billion and $25. billion.

The precise figure, set for an-nouncement by the TreasuryDepartment, is topped only bythe 525.2-billion deficit rung upduring fiscal 1968 under formerPresident Lyndon .B. Johnson.

But the 1971 deficit is not aptto attract, wide criticism from

' Democrats, who have urgedPresident Nixon to spend evenmore to give the economy moresteam. -

Surplus Predicted

It does reflect a > dramatic• change in Nixon's, economic

thinking since he, became .Presi-dent. When the. fiscal 1971 budg-et was submitted to Congress inearly 1970; Nixon said it wouldshow a $1.3-billion .surplus.

"I have pledged to the Amer-ican people-that I would submita balanced budget for .1971,"Nixon said in that budget mes-sage. "This is particularlynecessary because the cost of

' living has been rising~ rapidlyfor the past five years.

"The budget I send to you lo-. day—the first for which I bear

full responsibility as President-fulfills that pledge."

The projected $1.3-billion sur-plus for the year ended June30, 1971, quickly faded away.Unforeseen outlays, some un-controllable increases and someunwanted spending voted by .Congress sent the deficit soar-ing. •

Nixon, meantime, adoptedthe policy that the economyshould be ' expanded with in-creased federal spending anddeclared himself a believer inKeynesian economics—the ideabudget deficits are .necessaryduring periods of economicslack.

But the economy has failed topick up as snappily as Nixonwanted, adding to the budgetdeficit through a shortage inrevenues.

When Nixon submitted his fis-cal 1972 budget'to Congress, heprojected - the 1971 deficit offi-cially at $18.6 billion. The jumppast $20 billion is largely tracedto failure of the economy toprovide expected tax money.

Two in -a RowThe administration . appears

certain to set another mark,tlie largest back-to-back budgetdeficits sinca World War II.

Although the budget deficitfor the newly begun fiscal yearis officially set at $11.6 billion,the administration said new ex-penditures by Congress and arevenue shortage will add atleast another $7 billion to that.

A two-year deficit in theneighborhood nf §45 billion isseen likely. ' " . ' - .

Secretary of Commerce,Mau-rice II. Sta-ns warned Congressyesterday that the United Statesmight have a negative balanceof trade this year for the firsttime in this century. '

Stans attributed his forecast,which congressmen of both par-ties termed "frightening," togrowing deficits in raw mate-,r i a l s and "low-technology"'products that are -brought intothe country matched against .static surpluses in agriculturalproducts and .high-technologygoods sent abroad.

"The United States' over-ailbalance of trade in recent yearshas deteriorated from surplusesof $5 .billion to $7 billion in .the.early '60s. to $1 billion to $2 "bil-lion levels since 19fi7,". he said."In 1971 the trade surplus may

• disappear altogether for. ' thefirst time since 1893:"

Federal statistics showed thatduring April and May, the Unit-ed States had a trade deficit.This was the first time in 20years that imports had succeed-ed exports in two successive

'months.Stans testified: for subcom-

mittee on science, research anddevelopment of the House Com-mittee on Science and Astronau-tics, which is holding hearingsto explore what role' the federalgovernment should play in spur-ring increased research and de-

velopment by American indus-t ry."

The subcommittee' holds thatthe United States has been ableto maintain a favorable balanceof trade in recent years largelybecause of tremendous sumsspent on research arid develop-ment. These have brought aboutthe technological breakthroughsthat have made American indus-try pre-eminent in such high-technology goods as computers.

The United States now has atrade surplus of about $10 bil-lion a year in such high-technolo-gy goods, which is offset toy sub-:stantial deficits in raw mate-rials- and such low technologygoods as cheap textiles and"

• electrical products. - • • ••'Leadership Challenged •

Sharp cutbacks in ' recent-'i-ears in both public and private

. support- for basic and appliedresearch have led .some, if notmost, American scientific : andbusiness leaders: to forecast thatforeign competition in high-tech-nology products would stiffen

' and -that the nation's foreign,trade problems would worsen infuture years..

These predictions were echoedin the testimony of the subcom-mittee's other -witness yester-day, Dr. John R. Pierce; an ex:

ecutive of Bell Telephone - Labo-ratories and a former member

Deficit Tops ?20 BillionContinued, on Page 2

Boston Racketeer" Tells Senators, Bosses Have Set $500,000 BountyFrom News Services hind the George Raft.-gambling

casino..in London, .and'.Ray-mond Patriarca,,who.he said is

.his former, underworld sponsorWASHINGTON — -A 300-pound

self - described grandson of aMafia don told; senators Tuesday ana leader of. organized crimehe has. -mfprmatipa;f.mob-.•>.bosses. _;.fa 'Ne w

f Englan'ff^"'^^3^ ••'"•''?;;-' <•£have :issued contracts''totaling a ' -- • - • - • - - . • • • - • . - - " :'half million dollars on'his life.'-

care of me.'.'They ncA'er -even sent my

wife a .Christinas. card when IIwent.to' jail.-!.1 / . . ' ' . '

Vincent "Big Vmnie" Teresa,42, who 'said.,his;.'friends callhim "The Bear," 'gave a .recitalof the dominance^ 6f: organizedcrime .in the':natio'n;s rackets;.:,

. Teresa; who is -exchanging,the criminal code of-silence fora'' .promise o f ; immunity fromprosecution, claimed to 'haveonce given a Cadillac-to ,the;late -Francois "Papa Doc" Du-valier, president of Haiti.:.Patriarca Named - .'

. The names'Teresa .recited-to.the Senate rackets committeeincluded Meyer'Lansfcy, who hesaid was a silent-partner be-

Teresa, who said he was bornin Revere, Mass., -is 'currentlyserving a five-year federal pris-on term .-for .interstate.:trans-portation . of stolen .securities.He :has been granted-immunityfrptn- further prosecution _by -a'federal' court ' and 1 , is underarmed guard- while- testifying:- :,

• Teresa said he was .testifyingbecause he was convinced' by.FBI agents his • syndicatefriends had sold him out. ,-.- '

He said the price on his head.probably means . nothing " be-cause some underworld'trigger-man' might kill him "Just forthe'reputation.'.'•

"I was dumb,", he said. ; "Ifelt the outfit was going'to take

-fitter atHe said lie' was'bittefrbecause

his former friends look' advan-tage of his imprisonment tofreeze him out of two business-es-. and. pick^iin ^$80,000; -he. ;h£id

"out in loan .'shark activity. :',^ ;-- In. 28 'years-. of.: criminal 'activi-ty lie- said 'he- made.. between -?6-millibn". and 7$7 -million,- $3 'mil-'lion • of it in stolen securities.alone., . ; . . •-..••• • '

r-But, he ' added, ; lie nevershowed more ' than $50,000 inearnings -on his "federal - income'tax. ' "• • • - ' . - .

Under • questioning by sena-tors, he said organized ' crimefamilies have 'more than 6,000"solid members," all of whomare -"well, well paid."

Teresa said he committed his.first burglary while in', the sev-enth ;grade, went on; to'rob aBoston -tomato packing plantand graduated to. phony checks,big-league gambling,'loan•'shark-ing, .auto thelt,. stolen and forgedcredit caixts and finally a. lucr- -ativc business, in counterfeitand: stolen securities. •'-. • . .

Teresa said his loan sharkingcentered for a while around afirm called the Piranha Co., atitle: "taken from, the fish ofthat, name, a maneater."

He • said he was associated-with Patriarca, Henry Tameleo

•and George Kattar in runningPiranha.

"We had a live one (piranha)in a fishbowl in the place," hesaid. "We wanted to be knownas a tough outfit.

"If anyone was slow, in pay-ing, we told him we'd stick hishand in the fishbowl."

Teresa did not accuse any in-dividuals who were not alreadybelieved to be involved in or-ganized crime. • '-Senator-! AmusedBut he amused the-senators

time .and .again with anecdotes'told in "the vernacular and withhis saucy responses to ques.-tions.

• Asked . at one point whether"the mob" had takeri care ofhis-family while lie was in pris-on, Teresa replied, "You can'ttrust them. They're a shady.bunch of characters."

The best solution to the crimeproblem, he told the senators, isto leave the bosses alone and goafter "the agents on the street."

"What can you do to the bigguy?" he asked. "He's got so

Teresa Fears Mob PlotContinued on Page 2 TELLING HIS STORY to Senate panel is Boston racketeer Vincent Teresa. (UPI) '

By GERALD B. O'CONNORThe downfall of Vincent C.

Teresa, erstwhile' Boston-areamobster who testified'before aSenate committee- yesterday,began in Pittsfieid jn 1907. • • ' . . '

This is the-recollection of an:Investigator ffdm-th'e district at-torney's "office-!who helped 'cracka stolen-car racket engineered-by Teresa" and a • formerLanesboro candie shop proprie-'tor, Edmund T. Crown. . ;-

Detective Lt. MUo F. Bn»vn1 Jr. said that "to the best of my •

k n o w 1 e'd g e, the indictmentsagainst Teresa here 'were'-the

Beginning of the End for Teresafirst before Vihnie was indictedin Baltimore and Lynn and"anumber of other places." ' ^

Although, Rhode" Island state•Atty. ..Gen. Richard J: Israelsaid today that.Teresa's testimo-.hy -"is telling: us 'nothing new,"the - records • indicate that .thefirst serious charges that stuck

,.-against -Teresa were, thoselodged in Pittsfieid. . • - ; : ;

Teresa.was"arraigned'in Berk-• shire County Superior Court-on-Oct. 14, 1968, on;58. indictmentsreturned secretly by the county,grand, jury - the' .week • before!However, evidence that he was

iX^*-involved in the stolen-car racket0§ — and in international gamblingJjfl" and loan-sharking operations —£•{."'" had been gleaned by state po-: ' - ' , lice and .Registry. of Motor Ve-

,-cies personnel a year earlier,:Brown said.

: ! ' . . "But the thing was we didn't' -have enough to naiMnm on until

- Crown began to talk." Crown: - " • eventually turned state's evi-

dence against Teresa.'Began in'67

; Brown and -Sgt. Richard J.Clemens, ..state policemen as-

. •• signed to the Berkshire County

office of the district attorney,began investigating the {heftand sale of Boston-area cars inthe fall of 19S7 after suspicionturned,on Crown.

"As I recall," said Brown thismorning, "we were in the processof presenting evidence on the in-dictments here when Teresawas arrested in Baltimore." Ac-tually, a bench warrant was is-sued in federal court in Balti-more within a week after Tere-sa'-s indictment in Pittsfieid andthe then North Reading residentwas formally accused of theBaltimore charges in a U. S.

Commissioner's hearing here.Those charges were that Tere-

sa had illegally transported sto-len securities valued at $803,000.

But lie was a suspect in thesecurities and the car-theftcases from the time Crowncame u n d e r investigation,Brown said.Rumor Cheeked

"It became known (in 19G7)that Crown was trying to-sell alot of cars and sell 'them realcheap," said Brown. "We heardthat (former Pittsfieid police-man Anthony) Crea had bought

one, and we checked it out. Wefound il was stolen in Boston,and then we found that Crownhad been sending money ordersto Teresa. At least $35,000 inmoney orders was sent fromhere and Albany."

Teresa yesterday estimated hecleared $100,000 from the stolenears, and he also said he had

• had a number of hot cars paint-ed in "Western Massachusetts"and shipped to Nevada. Brownsaid the only stolen cars policecould connect to Crown or Teresawere those sold in the Berkshiresand in adjacent Eastern New York

State. "We suspected there wereothers sold further west," he said,"but we couldn't trace them.-'Dealer -Disappears

As the investigation continued,state police were led to a fran-chised Ford dealer in Lynnnamed Alvin Grille, who had re-cently bought .the dealershipfrom a'company called.Nel-NickMotors, Inc. Grillo subsequentlydisappeai-ed,. and his wherea-bouts is one of the mysteries

Local Case Tied to Teresa's FallContinued on Page 19

oblenis Called MinorAstronauts Overcome Mechanical Bugs en Route to Moon

GREAT BARRINGTpN HOlVIE of .)Ir. and it™.. .Joseph Savoy was,threatened i>y,fire which, destroyed; 'two harhs at rear^atMerrilea.Fanu.yesterday afternoon.

. Nick KinoVolunteers aemoved furnishings from-house. However,'volunteer firemen from, four departments managed' losaveJllieOipme..St6ry'is'on I*g. 1, Sect. 2. . - . - '

SPACE CENTER, Houston(AP) — The Apollo 15 explorershurtled "right by the book" oncourse to the moon today, both-ered only by such pesky space-ship gremlins as a broken, pieceof glass and a brief voltagedrop. .

Flight director Glynn Lunneysaid the problems all were mi-nor and posed no threat to theastronauts or the planned land-ing on the moon Friday.

Extra Hour's SleepDavid R. Scott, James B. Ir-

win and Alfred M. Worden re-tired an hour late Tuesdaynight after spending extra timehelping the ground troubleshoota rash of nagging electrical anda rash of nagging wielectricalcommunications difficulties. So

. Mission Control Center let themsleep an hour later today.

No major activity was sched-uled and officials want the as-tronauts well rested for sixbusy days ahead in the vicinityof the moon. • ' . -.-""

Two were solved .quickly.Ground . experts were trouble-shooting the others today.

The new troubles cropped upwhen Scott and Irwin trans-ferred Tuesday night into thelunar module, called Falcon, tomake certain all its systemswere in order for_ their descentto the base of the moon's high-est mountains at. 6: 15 p.m. EDTFriday. Apollo 15 is to fire intolunar orbit at 4:05 p.m. Thurs-day.

Simultaneously, c o m m u-nicalions from a (racking sta-tion at Goldstone, Calif., waslost for 19 seconds and voltagedropped in an electrical system

News Index'County 2G-2DEditorial Pages 22, 23

.Entertainment . .17

.Foreign '" • -2Hospital List •(.Local . . 18, 1!), 21'National ' 3Obituaries .18Social . . . If!Sports . . . 31-35Slate : 2

in the command ship Endea-vour. Both problems werebrief.

The first was traced quicklyto a power amplifier at Gold-stone. A series of tests showedthe two incidents were not con-nected, and further tests tracedthe power drop to a tripped cir-cuit breaker.

Panel Lights Affected

Mission Control said the af-fected circuit controlled a fewdisplay panel lights and thatengineers were developing al-ternate ways of lighting.

Scott and Irwin had difficultyfor several minutes making radio

• contact from the lunar module toMission Control, but finally suc-ceeded after pointing antennasproperly. This has happened onmost Apollo flights.

While checking the cabin,they discovered a one-by-four-inch piece of glass covering ameter, had shattered.

• The space between the twoglass panes normally .containshelium under pressure to • helpkeep' out contaminants.' Withoutthe-pressure, tho meter.must

function in a lesser oxygenpressure or in a vacuum on themoon. It is used to determinedistance and' closing rate dur?ing both descent to the moonand the later rendezvous withthe command ship.

Tests were under way todayto determine how effectivelythe meter would operate in adifferent environment. Even ifit didn't however, the astro-nauts have another device to dothe job.

The astronauts completed abusy day, during which theyand ground controllers workedout a solution to the short cir-cuit which popped up in thecommand ship after Monday'slaunch from Cape Kennedy,Fla, - . • ' . ' . , '

The short flashed a warninglight indicating that one-of twocircuits which control the firingof the main engine.might.havemalfunctioned. .-'.

The ground instructed ,tha ;spacemen . on a manually '-in-'.-..jtiated firing -signal, which ;Scott performed by . pulling":.' a •circuit breaker and,thet\:closing;

-it . almost . i ' ' ' '

' /