Vol. 67 No. 11
Battalion
Partly
cloudy,
showers
SATURDAY — Cloudy. Wind
south 10 to 20 m.p.h., becom-
coming northeasterly 10 to 20.
Scattered thundershowers near
noon. High 74, low 69.
SUNDAY — Partly coludy to
cloudy. Wind northeasterly 10
to 15 m.p.h. High 71, low 56.
College Station, Texas
Friday, September 17, 1971
845-2226
Carr, Osorio prohibited
from illegal stock deals
DALLAS (A*)—A stock fraud
suit, which for eight months sent
shock waves through Austin and
even to Washington, ended Thurs
day with a federal judge finding
the state’s former top law officer
and its former insurance commis
sioner had joined in illegal share
transactions.
U. S. District Court Judge
Sarah T. Hughes, on the 13th day
of trial, issued permanent injunc
tions against former Texas Atty.
Gen. Waggoner Carr, former
Texas Insurance Commissioner
John Osorio, six other business
men and one corporation, pro
hibiting them all from further
illegal stock dealing.
The government alleged the
stocks of certain companies were
manipulated in a scheme intended
to enrich state politicians and
influence legislation.
At the center of the scheme
was Houston promoter Frank W.
Resolution asking rent cuts
approved by Student Senate
A resolution asking the admin
istration and Board of Directors
to lower married student apart
ment rents to their past level was
passed by the Student Senate
Thursday night.
The resolution, sponsored by
Dick Sepeda, Graduate Student
Council representative, asked the
board to return the rents to the
August 1, 1971 level in the spirit
of the Nixon price-wage-rent
freeze.
The largest rent increase for
any group of apartments was
$10.
The same resolution had been
passed Thursday morning by the
Graduate Student Council along
with a resolution requesting Tex
as’ United States senators and
representatives to favor college
students in the handling of the
wage-price-rent freeze.
John Sharp, senate president,
explained the administration’s
position as had been communi
cated to him by President Jack
K. Williams.
Williams told Sharp that the
$44,482 to be taken in from the
rent increases would be to sup
ply four new maintenance per-
sonel for the apartments, be
spent on increased utility rates,
and to buy supplies to be used
in the apartment areas.
“The increase had to be made
by the university because of the
deterioration of the College View
apartments,” Sharp said.
The rent increase, which was
passed last November by the
board, and therefore legal, is
based on a “zero profit” basis,
Sharp said. “Any money taken
from rent increases will be spent
on the apartments,” he added.
m
“President Williams has of
fered to make interest free loans
to any students having trouble
paying the rent for university
owned apartments,” Sharp said.
The favorable vote was 43 for
and 18 against.
The senate also amended the
senate constitution dealing with
apportionment of senators.
The changes will affect the
number of senators apportioned
to five colleges. The proposal
asked for one more senator to be
added to the College of Agricul
ture, four more to Engineering,
two more to Science, and one
more to Preveterinary Medicine.
The only college to lose sena
tors would be Education, which
would drop from six senators to
three.
The reason for the reapportion
ment is to maintain a balanced
senator to student ratio through
out all the colleges.
The new senators, which would
be named this year, are to be ap
pointed by the senate president
and approved of the two-thirds
of the Student Senate.
Education would maintain its
six senators for the remainder of
the year.
Final approval of the ammend-
ment must come from a student
referendum.
The colleges of Science and
Preveterinary Medicine and Agri
culture will each receive at-large
senators. Engineering will re
ceive one senior, one junior, one
sophomore, and one at-large sen
ator.
Tree dedicated Thursday
to A&M's past president
Dedication ceremonies were
held Thursday on the lawn of
the A&M president’s home for a
tree planted in memory of Gen.
Earl Rudder by the executive
board of the A&M Women’s So
cial Club.
The observance included brief
remarks by Tom D. Cherry, the
university’s vice president for
business affairs, following intro
duction by Mrs. Everett Glaz-
ener.
Mrs. Glazener was Social Club
president when the organiza
tion’s board took the action to
honor the man who served as
A&M president more than a
decade prior to his death March
23, 1970.
“This tree stands on the
ground loved by Earl Rudder,”
observed Cherry, speaking in be
half of President Jack K. Wil
liams, “and so it shall live here
for generations as a reminder of
the vision, strength and courage
ous dedication of James Earl
Rudder . . . who set his institu
tion on a course of excellence
and ordained that it shall be
among the great universities of
the world.”
Cherry told the Social Club
representatives it was “most ap
propriate that you have selected
a Live Oak Tree, for it is sym
bolic of the strength and courage
of James Earl Rudder.”
Sharp, who did not contest the
suit but testified against the
others in return for a grant of
immunity from further prosecu
tion. He was also fined $5,000
and given a three-year probated
sentence on two lesser charges.
Judge Hughes, in delivering
her 11-page judgment, confined
her remarks to technical aspects
of the case. She did not mention
big-name politciians such as Gov.
Preston Smith and House Speaker
Gus Mutscher Jr., who were
alleged to have dealt in the
manipulated stock but who are
not defendants in the present
suit. Nor did she mention assist
ant U.S. Atty. Gen. Will Wilson,
whose name came up a number
of times at the trial because he
was formerly legal counsel to
Sharp. Victims or near-victims
of the stock manipulation such
as the five Apollo astronauts and
the Jesuit Fathers of Houston
did not figure in her remarks
either.
Outside the courtroom, Carr,
who when the case first came
up said his critics could “go to
hell,” still protested his inno
cence. He said he was “deeply
shocked and disappointed” that
the judge had found against him
on what he called “some of the
technicalities.”
“I know that I am not guilty
of what the SEC said I was. I
will confer with my counsel and
make a very early decision on
appealing,” he said, adding:
“We‘11 continue to fight this to
the very end.”
John Osorio, who used to be
Carr’s law partner in Austin and
who later headed National Bank
ers Life Insurance Co., whose
stock was manipulated, returned
to earlier charges that the case
had been politically motivated.
Some Texas politicians, includ
ing the governor, have suggested
the case was brought by Wash
ington wtih the aim of smearing
the state Democratic party, and
this view was echoed by defend
ing lawyers at the trial.
The other individual defend
ants were Tom Max Thomas, who
also worked with the Carr-Osorio
law firm at one time; oil investor
David Hoover of Dallas; J.
Quincy Adams, vice president of
Ling & Co., formerly in business
as Dallas brokers; Audy Byram,
former president of RIC Inter
national Industries Inc., which is
now in bankruptcy; Jim Farha,
a vice president of Ling & Co.;
and Phillip M. Proctor, a securi
ties trader for Ling.
Judge Hughes found that
Hoover “crossed state boundaries
from Kentucky to Texas trans
porting unregistered shares” be
sides engaging in “a scheme or
artifice to defraud various lend
ing institutions” by pledging un
registered stock.
Asked outside the court if the
SEC might file criminal charges
now that the civil suit is ended,
Robert F. Watson, who headed
the SEC legal team at the trial,
said: “We can’t comment on
that.”
U.S. Atty. Eldon Mahon said,
however, his office will take up
results of the case immediately,
although any possible indict
ments stemming from the trial
could be weeks away.
Several defendants at once in
dicated they are planning ap
peals.
Osorio, who said Sharp “owned
me lock, stock and barrel,” said
he did not agree with the judge’s
findings and intended to appeal.
Carr said he was considering an
appeal.
Tim Timmins lawyer for
Adams, said “the evidence was
totally insufficient for this de
cision” and an appeal would be
lodged immediately.
Byram, who headed RIC until
June last year, called the decision
“terrible.” “I plan to obtain a
new attorney and file an appeal,”
he said.
THREE THINGS ARE BEING SEEN MORE OFTEN on
campus his year and those are women, bicycles, and knap
sacks, not necessarily in that order. Aggies never would
have believed a year ago that one of the pedestrian pro
blems on campus would be dodging girls whizzing by on
bicycles. (Photo by Joe Matthews)
No serious injuries
Edith brings heavy destruction
THE BLACK AWARENESS COMMITTEE is sponsoring a photography show in the Me
morial Student Center depicting black society in the United States. The photographs,
done by Fisk University, are on display in the exhibition case near the Post Oiffice.
(Photo by Hayden Whitsett)
NEW ORLEANS <A>) _ Hur
ricane Edith ripped across Lou
isiana Thursday, scattering tor
nadoes in her path and causing
widespread damage but appar
ently no serious injuries.
The Red Cross reported 15,000
persons rode out the storm in 80
public shelters set up in inland
cities and towns between Lake
Charles and Morgan City, about
100 miles away.
Her overland passage toward
Mississippi slowly drained the
violence from her winds, which
were up to 100 miles per hour
when she raged ashore from the
Gulf of Mexico about 20 miles
east of Cameron, La.
Twisters struck at numerous
points along Louisiana’s broad
storm lane, including one that
did extensive damage to two
Baton Rouge parochial schools
where classes were in session.
A teacher at St. Thomas
More Catholic School in Baton
Rouge said seven pupils were hit
by flying glass.
Civil Defense spokesmen said
Edith’s damage, though wide
spread, apparently was relative
ly minor. There were no reports
of serious injuries.
Rains ranging up to five inches
caused temporary street floods
in several Louisiana cities, in
cluding New Orleans, and posed
the prospect of more serious
flood problems later.
The National Weather Service
said that at 6:00 p.m. EDT the
storm’s center was located in
central Mississippi, about 85
miles southwest of Meridian.
Maximum sustained winds were
estimated at 55 m.p.h. in squalls
near the center.
The service predicted heavy
rains in the path of Edith as she
University National Bank
“On the side of Texas A&M.”
—Adv.
moved across central Mississippi
into central anr north Alabama
and north Georgia.
The weather service cautioned
that Edith would pose a serious
threat of flooding during a 24-
hour period over the Appalachian
region from western Pennsyl
vania southward, including east
ern Ohio.
Besides those weathering the
storm in the public shelters in 10
parishes (counties), thousands
more who fled inland stayed at
hotels and motels or with friends
and relatives.
I n southwestern Louisiana,
families who had spent the night
in shelters in cities 20 to 30 miles
inland were headed back to their
coastal-area homes to inspect the
damage.
In most cases, it was less than
had been feared.
Civil Defense officials at Cam
eron, where Hurrican Audrey’s
high tides drowned 390 people
in 1957, said about the only prob
lem was disruption in electric
power and telephone service.
A&M formally designated
Sea Grant College today
A new commitment is added to
the scope of A&M with its for
mal designation today as one of
the first four Sea Grant Colleges
in the nation.
“Designation of Texas A&M as
one of four national Sea Grant
Colleges is a challenge and an
honor—for both the state and the
university,” declared Gov. Preston
Smith. “Wise development of
Texas’ vast marine resources will
serve the interest of all Texans,
and the Sea Grant College rep
resents a major step toward that
goal.”
A&M President Jack K. Wil
liams and Sea Grant Program
Director John C. Calhoun Jr. are
in Washington, D. C., today for
formal acceptance of the honor.
Secretary of Commerce Maurice
Stans presided at the ceremonies.
“Directions for leadership in
the Gulf of Mexico and Southeast
ern United States marine re
sources research have been open
ed today,” President Williams
noted.
A&M shares the Sea Grant Col
lege status with three other ma
rine-oriented universities — Ore
gon State, Washington and
Rhode Island.
A luncheon following the cere
monies was hosted by Robert
White, head of the National
Oceanic and Atmospheric Admin
istration (NOAA). Sea Grant op
erations are under the auspices
of NOAA within the U. S. Depart
ment of Commerce.
“Strong programs have been
initiated by Texas A&M in the
areas of applied research, educa
tion and training, and advisory
and information services in ma-
|rine affairs,” Secretary Stans
said.
Recognition of the university as
the state’s leading institution in
marine affairs comes little more
than three years since A&M was
named one of the first six uni
versities in the nation to receive
institutional support under the
Sea Grant Program and College
Act, the first marine resource
program ever devised by Con
gress.
The act, designed by Sen. Clai
borne Pell, Rhode Island, and
Rep. Paul Rogers, Florida, came
about when Dr. Athelstan Spil-
haus, world known oceanograph
er, noted similarities between
marine science and the land grant
program.
General reasoning was that if
an educational program of re
search, extension and training was
the stimulus to make this the
most advanced agricultural na
tion in the world, a similar pro
gram might work in stimulating
the economic advance of marine
resources.
Press seminar here Tuesday
“The Selling of the Pentagon,’
CBS-TV’s controversial documen
tary about the inner workings of
the U. S. military establishment,
will be anatomized Sept. 21 at
A&M in the first of a two-part
Freedom of the Press Seminar.
CBS’ news programming di
rector William A. Leonard II will
appear for the Great Issues pre
sentation.
Preparation for the 8 p.m. Me
morial Student Center Ballroom
talk includes three-times-daily
showing of the 75-minute CBS
Reports film.
Banking is a pleasure at First
Bank & Trust.