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f Cbe Battalion
V Vol. 67 No. 4 College Station, Texas Friday
Warm
and
clearing
Saturday & Sunday — Partly
cloudy, afternoon, thundershow
ers wind southerly 10 to 15
m.p'.h. High 91-93, low 72-74.
September 3, 1971
845-2226
i
Gus Mutscher
& tf' 50
& $5.0«
$4.00'
$1.00
$3.00
$1.50
may face trial
for bribery
AUSTIN, Tex. The Trav
is County district attorney’s of
fice has drawn up bribery in
dictment papers against Gus
Mutscher, speaker of the Texas
House of Representatives, and
two other state officials, the As
sociated Press learned Thursday.
An informed source told The
Associated Press the indictment
papers have been filled out and
only await the grand jury fore
man’s signature, should the grand
jury decide to indict.
The source stressed that the
papers have not yet been pre
sented to the grand jurors for a
decision.
If the grand jury acts, the in
dictments would be the first ma
jor criminal charges growing out
of a continuing investigation by
state and federal officials of
stock frauds in Texas.
Frank Sharp, a Houston pro
moter around whom the stock
scandal centers, has drawn a
three-year suspended sentence
and a $5,000 fine for violating
federal banking charges, and a
minor figure in the case has been
charged in a federal perjury in
dictment.
The informed source, who de
clined to be identified, said Mut
scher, state Rep. Tommy Shan
non of Fort Worth, and Mut-
scher’s top aide, Rush McGinty,
are accused in the district attor
ney’s documents of accepting
bribes in the stock scandals.
A fourth document, the source
said, was being prepared for
grand jury consideration against
John Osorio, former president of
National Bankers Life Insurance
Co. The allegations being pre
pared will allege the filing of a
false report with a state agency.
The U. S. Securities and Ex
change Commission is seeking an
injunction against National Bank
ers Life, Sharp and Osorio, among
others, to prohibit fraudulent se
curities transactions. A hearing
on the injunction began Monday
in U. S. District Court in Dallas.
The source said the papers con
tend the alleged bribes consisted
of profitable stock deals for Mut
scher, Shannon and McGinty in
return for efforts to pass legisla
tion favorable to Sharp’s banking
activities.
The source said the grand jury
will not be presented the papers
until Dist. Atty. Robert O. Smith
and Dist. Atty Carol Vance of
Houston can agree on which coun
ty would have jurisdiction in the
event indictments are returned.
The source said grand jury
action is not expected one way
or the other until perhaps the
last two weeks of September.
Dist. Atty. Smith had no com
ment on the report but did say
he has been talking with Vance
on the jurisdiction question.
Osorio and McGinty have test-
tified before the grand jury here.
Sharp recently testified before
the Texas House investigating
committee that there was a “tacit
agreement” between Mutscher
and him involving passage of the
banking bills and the loan from
Sharpstown State Bank for pur
chase of the National Bankers
Life stock.
All of the politicians named in
federal depositions taken for the
Dallas federal civil suit declare
that was no connection between
Chilling big toes
called cold cure
WASHINGTON (^—Develop
ment of a cure for nose colds^—
by chilling the big toes with a
refrigerant chemical—was claim
ed Thursday by two researchers
from Israel.
The researchers even said the
technique apparently provides in
definite immunity against such
runny-nose maladies, according to
preliminary findings among 100
patients treated during the past
year.
But some American scientists
snorted at the idea.
The Israelis reported the idea
is this:
Sudden temporary chilling of
the big toes almost immediately
brings about a lowering of the
normal body temperature within
the nose because, they said, the
big toes and the nose are nervous
system “reflectors” of one an
other in their response to external
stress. And this nasal tempera
ture-lowering—along with humid
ity-lowering—“dries up the nos
trils,” thereby “curing” the cold,
they said.
They indicated the concept is
based partially on the ancient
Chinese method of acupuncture-
sticking needles in one part of
the body to attack an ailment
elsewhere.
But two American medical spe-
,cialists on the common cold, ask
ed by a newsman to evaluate the
report, said that:
While the toe-chilling technique
might conceivably abort or reduce
the severity of a nose cold due
to an allergic reaction, they se
riously doubt it could have any
effect against cold due to vi
ruses.
And the Americans generally
pooh-poohed the suggestion that
the technique could provide long
time immunity, even against al
lergic type colds.
Soviet missile lead
could lead to war,
U.S. analyst claims
WASHINGTON <**)—A civilian
defense analyst told congressmen
Thursday the Soviets have a mis
sile lead that could give an Amer
ican president only two alterna
tives in a crisis: cave in or threat
en nuclear war.
Dr. William R. Kintner, di
rector of the Foreign Policy Re
search Institute of Philadelphia,
University National Bank
“On the side of Texas A&M.”
—Adv.
- . .\.
their stock-bank loan deals and
the banking legislation. Gov.
Smith, who made $62,500 in the
deals, has pointed out he vetoed
the bill after passage by the
House and Senate.
Osorio, when he appeared for
the grand jury testimony, told
newsmen that there was no con
nection between the legislation
and the deals.
“It was just coincidental,” Os
orio declared.
Rep. Shannon was House spon
sor of the two banking Bills,
which were written in Osorio’s of
fice at the direction of Sharp,
principals have testified.
QUARTERBACK LEX JAMES talks with newsmen Thursday at Kyle Field during the freelance interview phase of the
Southwest Conference Press Tour’s visit to A&M. For Press Day stories, see pages 3 and 4. (Photo by Mike Rice)
Building forces it
‘Gardening between ditches’ done here
“Gardening between ditches” is
how A&M landscape architect
Robert H. Rucker described the
university’s fall landscaping pro
gram.
A&M’s $63 million building pro
gram has the sprawling campus
torn up from one end to the other,
yet Rucker said some noticeable
landscaping improvements are in
progress.
He said site development will
begin within two weeks at the
new $10 million Engineering Cen
ter. The building will be ready for
classes later this year.
Currently in progress are sight
and sound baffles — berm earth
sculptures — at the golf course
and 1,000 car parking lot east
of the Engineering Center. The
earth dam for the first lake east
of Kyle Field, near the Floral
Test Garden, is completed.
Rucker said the golf course
baffles of Hwy. 6, New Main
Drive and Bizzell Street will
shield golfers from the sights and
sounds of street traffic.
In some places the earth banks
have been constructed five feet
above the street curb, giving the
area a rolling hill effect.
Rucker noted players on the
number two tee cannot see or hear
the traffic. “There’s no discom
fort whatsoever,” he reported.
Tees four and seven also are
protected and the number 10 tee
has an added advantage.
Golfers who slice the ball won’t
have to worry about breaking car
windows on Bizzell Street. The
baffles will either stop the ball or,
if the ball clears the baffle, there
is no danger of it hitting in the
street.
Rucker said winter grass will
be planted and bluebonnet seeds
will be added next spring.
“In two years, the area should
be covered with bluebonnets in
the spring,” he observed.
Fill for the golf course and
dam projects came from the Me
morial Student Center excava
tion.
Parking lot 50 has baffles on
University Drive and additional
berms will be added facing the
Engineering Center.
Rucker said the first lake, part
of a lake system for the park
area between Throckmorton and
Houston Streets, will be a small
“aesthetic lake” with recycling
waterfall, ducks or black swans
and a small island.
The lake will not be fenced and
fish will be added to keep mosqui
toes down. The Wildlife Science
Department is cooperating on the
project.
Rucker reports as soon as the
dam stabilizes winter grass will
be planted. The lake will extend
north to the footbridge and there
will be a waterfall and small gar
den on the south end.
The lake water level will be
mechanically controlled.
Engineering Center site devel
opment includes top soil, grass
planting and live oak trees. There
will be a live oak grove on the
University Drive side of the build
ing.
Underground irrigation systems
and permanent grass planting will
start in the early spring.
A water fountain and pool were
included in the architect’s plans,
and will be working when the
building is accepted, Rucker said.
He pointed out Military Walk,
west of the Academic Building,
will be closed for construction of
utility tunnels. When construction
is completed, a mall is planned
for that area, he added.
Rucker disclosed funds for site
development of all the new build
ings have been appropriated.
Ex-Ranger A&M’s new police chief
Texas Ranger O. L. Luther of
Bryan, the new University Police
Director, officially took office
Wednesday.
Luther, 54, succeeds Chief Ed
E. Powell, who retired Aug. 31
at age 65. Powell, who joined the
university staff in 1957, has been
chief of the security office since
Jan. 1964.
under the Dean of Students’ Of
fice.
“We have worked with Ranger
Luther frequently in both on and
off campus problems and always
found him cooperative and help
ful,” Hannigan continued.
officers in Texas. He was honored
in July by Bryan-College Station
Jaycees as the Outstanding Local
Law Enforcement Officer of the
Year.
“We are extremely pleased
Ranger Luthe^ has accepted the
appointment as head of our uni
versity police,” said Dean of Stu
dents James P. Hannigan. The
police department is organized
“Ranger Luther is a proven
leader and his leadership will aid
the University Police Department.
Chief Powell has an outstanding
record with the university and
he will be missed,” the dean add
ed.
Luther is considered one of the
most dedicated law enforcement
Luther joined the Texas Depart
ment of Public Safety in 1942
and has been with the depart
ment since, except for service in
the Navy during World War II.
Luther returned to the DPS fol
lowing the war and was named
supervisor of highway patrol in
Bryan in 1957. His entire public
career has been centered in the
Brazos County area.
In 1961 Luther was named a
Texas Ranger and he currently is
one of 80 in the state. He is as
signed to Co. F out of Waco.
Throughout his career Luther
has attended law enforcement
courses and is a graduate of
special FBI schools. He holds the
Certificate in Advanced Law En
forcement Education awarded by
the state.
Luther also has served as an
instructor in the Department of
Public Safety Academy in Austin
and was responsible for DPS edu
cational activities in the five
county Brazos Valley area.
Among his duties are assisting
police and sheriff’s offices in
Brazos, Burleson, Madison, Leon
and Robertson counties. He also
is given special assignments
throughout the state, among them
the successful investigation of the
1968 Sam DeGelia murder in Mc
Allen.
Hannigan said Luther has as
sisted Texas A&M through a se
curity plan for the Cyclotron In
stitute, traffic and parking plan
ning and aided the Dean of Stu
dents’ Office and University Po
lice Department.
Judge accuses SEC lawyers of stalling
said the Soviets’ increase to 1,900
missiles from 1,100 during the
current U.S.-Soviet arms limita
tion SALT talks makes clear they
are using the talks as a tactic for
gaining military superiority over
America.
“Unless we do something very
quickly,” Kintner testified, “an
American president could be fac
ed with the quandry of having to
decide whether to give in to So
viet demands in any conflict
around the world or launch a
nuclear first strike.”
DALLAS <iP>—U. S. District
Court Judge Sarah T. Hughes
angrily scolded Securities and
Exchange Commission lawyers
Thursday and ordered them to
limit their evidence to what is
directly pertinent in the Texas
stock fraud case.
When SEC lawyer James Sims
ventured to object, the judge cut
in sharply. “Don’t argue with
me,” she said. “Do as I say. I
want you to speed up this trial
and omit irrelevant matters.”
The judge’s rebuke came at
mid-morning with Donald S. Ak
ins, one of the defendants, on
the stand for the second day.
Only six witnesses have been
heard and there are 63 to come,
plus any the defense may call.
Searching questions were put
to Akins about loans to defend
ants in the case, some of them
secured by unregistered stock in
corporations that also are de
fendants.
with the possible end result of
influencing legislation.
Akins was also at one time a
5 per cent stockholder in Nash-
wood Corp., which is owned by
former Texas Atty. Gen. Wag
goner Carr and his one-time law
partner John Osorio, who was
president of NBL. Akins was
briefly president, by Osorio’s in
vitation, of Dallas Bank & Trust
Co., which Carr and Osorio con
trolled through South Atlantic
Corp., another of their companies.
Akins was asked in detail about
Nashwood’s financing through
Frank W. Sharp’s Sharpstown
State Bank of its purchase of
West Virginia Life Insurance Cc.,
another deal in which Nashwood
turned an $82,000 profit through
its 30-day ownership of Lake
Travis Lodges Inc. in Central
Texas, and other transactions.
tax purposes.
Akins said he became president
of Dallas Bank & Trust Co. by
invitation of Osorio, so that he
could make a survey of its loan
portfolio which had been caus
ing some trouble.
He described how South Atlan
tic acquired the stock of Dallas
Bank & Trust and how loans at
DB&T financed the purchase of
control stock of City Bank &
Trust Co., of which Akins also
became an advisory director. He
said DB&T had loans of about
$2 million secured by CB&T stock.
At one point during his explan
ation of the various interlocking
relationships and outstanding
committments, Akins was asked
about a $150,000 unsecured loan
which DB&T made to Audy By
ram, another of the defendants in
the case. He was asked if he knew
what the proceeds were used for.
He replied that he understood
they were used for the benefit
of RIC International, a South At
lantic subsidiary now in bank
ruptcy. Byrum’s name was used
in the deal because RIC Interna
tional had already reached its
loan limit, he explained.
Nixon lost advantage in recognizing Red China,
William Buckley tells YAF group in Houston
Akins is the former executive
vice president of National Bank
ers Life Insurance Co., whose
stock the SEC alleges was ma
nipulated so that politicians in
Austin could make quick profits
At one point Sims zeroed in on
Nashwood’s 1968 corporate in
come tax return which showed
Akins being paid $2,400 in salary
along with payments to officers
of the company. Akins said he
never received the money, which
was only carried in the report as
accrued salary so as to make
Nashwood’s profit look less for
HOUSTON, Tex. OP) — By
recognizing Red China as he did,
President Nixon abandoned a
strategic weapon of diplomacy
without getting anything in re
turn, consevative William Buck-
ley, editor of the National Review
said here Thursday.
I think there is no quid pro quo,”
he said. “I don’t know how his
visit is going to be presented to
the Red Chinese, but I think it’s
not too difficult to guess. We
know the Oriental significance of
the trip being in that direction
rather in the other direction.
day of the Young Americans for
Freedom’s national convention
here.
Speaking at a news conference,
Buckley said he also thought Nix
on’s proposed trip to Red China
was a mistake and could possibly
be claimed by the Red Chinese as
a psychological victory.
“I think it’s mistaken because
“The Red Chinese are not going
to throw away the psychological
benefits of stressing that the trip
was in that rather in the other
direction.”
Buckley made the comments at
a news conference on the opening
In a later keynote address,
Buckley attacked Nixon’s policy
of deficit spending and said that
“the American experience” has
reinforced the concepts of clas
sical economists who have de
nounced unbalanced budgets.
He said the arguments by lib
erals that deficit spending heelps
the employment situation has not
been borne out in the last 40
yeears.