The Battalion. (College Station, Tex.) 1893-current, September 17, 1971, Image 1
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.