St. Louis Post-Dispatch from St. Louis, Missouri • Page 1

POST-DISPM in VOL. 112, NO. 283 Copyright 1990 WEDNESDAY, OCTOBER 10, 1990 (3) 5-STAR 25 ST 10 ixed On Tax Boost Signals Money Milford Pegs His Wealth At $1 MiUion I CLOSE DOWN I 2445.54 78.22 2C 1 4- i A CAPITAL-GAINS cut and higher tax rates on the wealthy are in Senate panel's plan Page 10A i TOURISTS ARE HAPPY when Gateway Arch reopens after budget shutdown Page 11 A Robert LaRouchePost-Dispatch Betty and Drag Dutina of Fremont, leaving the Gateway Arch Tuesday. They skipped the Truman Library in Independence because of the government shutdown. Story on Page 11 A.

that summit agreement," said Sen. Ted Stevens, R-Alaska, at a remark directed at Democrats. A senior administration official, who spoke on the condition of anonymity, said that Bush had told the GOP leaders that he did not want to I -r 4 -7 Cutting Edge: Blues de-fenseman Paul Cavallini winces after being cut by a high stick in Tuesday night's game. Courtnall, Hull Spark Blues' Win Wingers Brettrjull and Geoff Courtnall score two goals apiece in the Blues' 4-3 victory over the Pittsburgh Penguins at The Arena. ID A's, Reds Close To World Series The Oakland Athletics take a 3-0 lead over Boston and the 1 Cincinnati Reds move in front of the Pittsburgh Pirates 3-1 in the best-of-seven league championship series.

ID NL Playoffs NHL Cincinnati ....5 Blues .4 Pittsburgh .3 Pittsburgh 3 AL Playoffs New Jersey 5 4 Minnesota 2 Boston 1 Details in Sports, Section The United Way Faces Challenges Four pages of material on the United Way's goals and needs for its currentjampaign appear in the section. Included is a directory of all the organizations supported by the United Way. 5-8B It's Up To The President NOW (EDITORIAL) Investigate Jerusalem Killings (editorial) By Lawrence M. O'Rourke Post-Dispatch Washington Bureau WASHINGTON President George Bush expressed approval Tuesday for the first time of higher taxes for wealthy people as part of a $500 billion deficit-reduction compromise. But he later backed away from that strategy under pressure from Republican senators.

Early in the day, Bush had indicated he was willing to bargain with congressional Democrats as a means of ending the ongoing budget Impasse. He suggested he was open to a tradeoff on the politically sensitive Issue of new taxes in exchange for a lower tax rate on capital gains. But after a late-afternoon meeting between Bush and GOP lawmakers, Sen. Bob Packwood, said, "We all put up our hands and said, 'No deal on tax rates at He Bush just acquiesced in it." Republican leaders said they cautioned Bush against pursuing such a trade-off, suggesting Democrats would never agree to drop capital-gains tax rates low enough to make the bargain worthwhile. "The president agreed.

Our uniform position was that we will not go up on the income tax rates, no matter what," said Packwood, the se'nior Republican on the Senate Finance Committee. He said Bush asked the Senate GOP leaders at the meeting if they would hold fast to such a position "And to the man, in the room, every single person said we will support that," Packwood said. "Stop trying to buy us off with capital gains. We're not going to change Compiled From Nevts Services WASHINGTON After daylong negotiations at the United Nations, President George Bush's administration decided to cast its vote against Israel in criticism of the slaying of at least 19 Palestinians and the wounding of 140 in a melee Monday in Jerusalem, U.S. officials said Tuesday.

The U.S. officials said it was the first time that the United States had supported a U.N. resolution criticizing Israel since the Israeli invasion of Lebanon in 1982. It was unclear when an actual vote on the resolution would occur. Officials in Washington said the resolution, drafted by U.S.

diplomats, condemns Monday's violence "and particularly the excessive Israeli response." It welcomes the decision by U.N. Secretary-General Javier Perez de Cuellar to send a delegation to Jerusalem to investigate the incident. But Prime Minister Yitzhak Shamir of Israel rebuffed suggestions of a U.N. investigation of the "We won't accept it," Shamir said Tuesday in Jerusalem. The resolution proposed has been approved by the four other permanent members of the U.N.

Security Council and is thus veto-proof. But a snag developed when the Palestine Liberation Organization rejected the U.S. draft as too weak. The PLO wanted stronger action and opposed the provision for an investigative mission to be sent by the U.N. secretary-general, instead of a more powerful Security Council mission.

PLO officials said they would be embarrassed to show the U.S. draft to their leadership and indicated they would press ahead and call for a vote on a stronger resolution, calling for a Security Council inquiry. The U.S. officials said the resolution called on all parties to refrain from violence. In a gesture to Israel, it expresses regret that Jewish worshipers were attacked.

The United States rarely votes against Israel in the Security Council. Far more frequently, it uses its veto power to shield Israel against what is judged to be unfair criticism. But in this instance, the officials said, Bush's administration had con- Slide Oil Hits New High, Sending Dow Jones To 78-Point Drop Oil prices soared to a record high, stocks plunged and interest rates inched upward Tuesday as new threats from Iraq and worries over the deficit roiled the nation's markets. There were these developments: Crude oil futures hit an all-time high of $40.40 per barrel, prompting worries of even higher gasoline and heating fuel prices in days to come. The stock market suffered its llth-largest drop on record.

The Dow Jones Industrial Average tumbled 78 points 3.1 percent to close at 2,445. The Dow Jones average has dropped 16 percent in volatile trading since Iraq invaded Kuwait on Aug. 2. The interest yield on bench- By Virgil Tipton Of the Post-Dispatch Stafl 1990, St. Louis Post-Dispatch St.

County Executive H.C. Milford said Tuesday that he. was worth about $1 million. In other financial disclosures Tuesday, Milford, the Republi-' can candidate for county executive, said he: Owned a third of a building that houses his brother's plumb-. ing supply company.

The com- pany has done more than $500,000 worth of business with -the county in the past 12 years, county accounting records show. Invested in six other partnerships, which own farm land, condominiums and a golf 1 course. Shared ownership of some land with developers Donald J. Kozeny and Richard V. Wagner and with Dennis P.

Long, for-' mer president of Anheuser--Buschlnc. Made about $150,000 a year before he took over as county See MILFORD, Page 6 BOTH CANDIDATES on the offensive PagelB bottles from the mount onto thousands of Jews observing the festival of Suk- kot at the Western Wall, Judaism's holiest site. The Palestinians said they had been angered by rumors that Jew- ish extremists planned to march onto See ISRAEL, Page 9 New Evidence-Links Libya To 747 Bombing 1990, New York Times Newt Service WASHINGTON Newly uncovered evidence in the bombing of a Pan American jumbo jet in December 1988 indicates that Libyan intelligence agents may have assembled and planted the bomb that destroyed the plane, American government investigators said this week. Until now the inquiry into the bormV ing over Lockerbie, Scotland, has focused on evidence that Iran hired a Syrian-sponsored terrorist group, the Popular Front for the Liberation of Palestine-General Command, to bomb an American airliner in late 1988. The theory had been that a cell of the Popular Front based in West Germany assembled the bomb and smuggled it onto the aircraft.

American officials, who spoke on condition of anonymity, stressed that the new evidence did not clear Iran, Syria or the Popular Front group of complicity in the Pan Am disaster. They said they still believed Iran commissioned the attack in revenge See BOMBING, Page 12 AP raise the tax rate for the wealthiest Americans if he could not get a cut in the capital-gains rate at "an acceptable level." The current rate is 28 percent. Senate Majority Leader George J. See BUDGET, Page 10 ians at the Temple Mount in Jerusa- lem, and he accused Israeli police of failing to show greater restraint when they opened fire. But Bush said Iraqi President Saddam Hussein would not succeed in any attempt to exploit the shootings in Jersusalem to gain sup- Jerry Little Gets Life In Prison By Tim Poor Of the Post-Dispatch Staff A jury rejected the death penalty for Jerry Lee Little Jr.

on Tuesday night, deciding that the killer who prosecutors called "every woman's worst nightmare" should get a life prison sentence instead. Little had been convicted Monday of strangling Sister Patricia Kelley, Imogene Jackson, Doris Hayes and Rose Jackson. He also was found guilty of raping Kelley and Imogene Jackson. The panel deliberated for about two hours Tuesday in the penalty phase of the trial before returning its verdict, read by Circuit Judge Brendan Ryan at 9:11 p.m. Jurors, lawyers and members of the victims' families shook hands and embraced in the courtroom when it was over.

Many of the jurors who had been sequestered in a hotel for three weeks wiped away tears as their ordeal concluded. "1 1 UJ iV- 1, site, which is holy to Moslems and Jews. On Monday, 19 Palestinians were killed there in a melee with police. Moslems kneeling in prayer Tuesday outside the Temple Mount in Jerusalem after Israeli police kept them from the 2B Automotive If Business 1-6C Classified 1-26F Commentary 3B Editorials 2B Everyday 1-10E Movie Timetable 8E NationWorld 8A News Analysis 1B Obituaries 4B People 4A St Louis 3A Sports MOD Television 7E eluded that Israeli policemen had used excessive force against the Pal- estinians who threw stones and bottles at Jews. Earlier Tuesday, Bush said in a news conference that he was sad- dened by the deaths of the Palestin- Dow Jones Industrial Average 2,700 1 3 10 17 24 1 8 September October mark 30-year government bonds rose to 8.96 percent from 8.79 percent Analysts blamed fear of inflation resulting from higher oil prices.

Details on Page 1C i 2,600 I VI 2.400' 1 I Vf Kn 1 2,445.54 1 i 1 1 i i i I port among Arabs for his invasion of Kuwait on Aug. 2. Most of the reaction around the world to the killings was negative. Israeli police said they opened fire Monday after thousands of Palestin- ians threw a barrage of stones and Jerry Lee Little Jr. Convicted'in 4 deaths Some of the jurors said they voted for the life sentence because they thought it would be harder on Little, 33.

"Make him suffer the rest of his said one juror. Earl Ruhmann. He said that jurors didn't have much doubt about Little's guilt and that his confessions to all four murders were the key evidence. See SENTENCE, Page 11 I Showers, cool FORECAST: Today: Cloudy and cool with light rain today. The high will be 48.

Rain ending tonight. The low will be 44. Thursday: Partly cloudy and warmer with a high near 64. Other Weather, 2A POST-DISPATCH WEATHERBIRD ate at. arr.

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