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Vol. 67 No. 19
College Station, Texas
Thursday, September 30, 1971
SATURDAY — Partly cloudy,
afternoon thundershowers, wind
south 15 to 20 m.p.h. High 91,
low 72.
KICKOFF — Wind South 10 to
12 m.p.h. 78°, humidity 75%.
845-2226
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when tktf
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Eight men indicted
in Sharp bank case
SfflS
HOUSTON <A>) — A federal
?rand jury investigating the col
lapse of a state bank controlled
by Texas promoter Frank W.
GIVE ^ arp * n( ^ cte< f e ight men Wednes
day, including four former bank
ixaminers.
One indicted is Ted Bristol, a
former Federal Deposit Insurance
Corp. bank examiner for whom
Asst. U. S. Atty. Gen. Will R.
Wilson acknowledged he pur-
ihased stock at Sharp’s request.
Bristol, now living in Dallas
ivas indicted on a charge of ac-
lepting a $10,000 loan from Sharp
in 1969.
Federal statutes forbid bank
Ixaminers and assistant bank
ixaminers from receiving loans or
gratuities from banks that are
:overed by FDIC protection.
The Sharpstown State Bank
was the main jewel in Sharp’s
Jto/1 f' nanc i a l empire.
™t\ 1 The bank closed nine days after
s. Securities and Exchange
Commission investigation showed
irr Sharp had been making loans to
iTIj |key state government officials,
CM, \ Gov. Preston Smith and
[Texas House Speaker Gus F.
Jfutscher.
The state officials used the
money to buy stock in National
Bankers Life, also controlled by
Sharp. They made large, quick
profits from the stock. Since the
filing of an SEC civil injunction
suit Jan. 18 in Dallas, National
Bankers Life also has been placed
in state conservatorship.
The Wednesday indictments al
so charge three former bank ex
aminers with accepting illegal
loans from the Sharpstown bank,
the same sort of charge as that
against Bristol. Four other men,
three of whom are former of
ficials of the bank, were charged
with misapplication of bank funds,
making false bank entries and
making illegal loans to bank ex
aminers.
John T. Knight, a former FDIC
examiner from Houston, was in
dicted on a charge of accepting
four loans totaling more than
$27,000.
The former state bank exam
iners indicted are Welton Adler
of Laredo and John B. Hooper of
Houston. Adler is charged with
accepting four illegal loans total
ing $6,417. Hooper is charged
with accepting two loans totaling
more than $6,000 from the bank
and from Sharp.
Others named in the four in
dictments were Charles L. Henke,
a Houston real estate man, and
Douglas N. Lane, Carl Lundquist,
and Herman Nelms, all former
vice presidents of the defunct
Sharpstown bank. Lane was also
head of Doug N. Lane Enter
prises, Inc., which two of the in
dictments allege was used in mak
ing unsecured and fraudulent
loans from the bank.
Bristol, who was named indi
vidually in one indictment, al
legedly received $10,000 on Feb.
28, 1968 from Sharp through the
Oak Forest Investment Co., an
other Sharp controlled Houston
firm.
Wilson acknowledged in state
ments last month that he ar
ranged purchase of stock in the
insurance company for Bristol in
February 1968.
The federal attorney said he
was making the explanation to
counter “insinuations that I am
or have been involved in illegal
activities.”
Lundquist, Lane and Henke are
charged together in one indict
ment with manipulating loans
from the bank.
The indictment alleges they
made fradulent loans, made loans
to fictitious persons, used frau-
dently obtained signatures to get
loans for persons who were un
aware they were being so used,
and made false bank entries. Lane
and Henke also were charged with
making loans using their wives’
maiden names.
Another indictment named
Nelms, Lane and Hooper in con
nection with allegedly illegal
loans to Hooper. Nelms and Lane
are charged with loaning Hooper
$3,812.88 from the bank. Hooper
Barnes advocates liberal
stand on state drug laws
is charged with accepting that
loan, plus one for $57,000 from
Sharp through the Oak Forest
Investment Co.
The fourth indictment names
Lane, Nelms, Knight, Adler and
Henke.
The indictment alleges the bank
officers were warned when an
examination of bank records was
planned, and then moved records
of the loans or marked them as
paid. After the examination, the
true bill alleges, the loans were
moved back into the bank, and
those which had been stamped
“paid” were stamped “cancelled
in error.”
The fourth indictment also al
leges bank loans were made to
Knight and Adler, who were then
bank examiners, and that loans
were made to Doug N. Lane En
terprises, Inc., without collateral.
The bill also alleges “stand-in”
borrowers were used to obtain
loan money from the bank, and
that some loans were made with
out showing the true borrowers
or the true purposes of the loan.
U. S. District Court Judge
Woodrow Seals set $5,000 person
al recognizance bonds for each
defendant.
Bristol, according to his wife,
had no comment on the grand
jury’s action.
Reality soon
Senate
(
.
ANOTHER PARKING LOT takes shape between the YMCA and the Coke building, re
moving the north end of Main Drive. This action, plus the removal of several trees be
tween the Coke building and the Meteorology building, has drawn criticism from stu
dents concerned about the environment and who gets to park in those spaces. (Photo by
Hayden Whitsett)
starting credit union
S
OREENf
STAMPS/
m
H
By DEBI BLACKMON
Staff Writer
“I don’t believe a young person
should be sent to the penitentiary
'the first time he is caught with
a marijuana cigarette,” Lt. Gov.
Ben Barnes, said at a Political
Forum’s Noon Series presentation
Wednesday.
“I still stand on that statement
which I made in 1969,” Barnes
said, “although it has gotten me
the most adverse comments and a
considerable amount of mail.”
Barnes spent almost an hour
explaining the development of the
drug problem in Texas and what
the state legislative and execu
tive branches are trying to do to
retard it now.
“Federal government actions
have tossed the drug abuse prob
lem to the state and local level,
and this is one battle we will
Student Senate
now compiling
club directory
A new concept of a Club Direc
tory, which will include informa
tion pertinent to perspective club
members, is now being compiled
by the Student Senate for next
semester.
“Due to the turnover in the or
ganizational personnel and par
ticularly sponsors and club presi
dents,” says Barb Sears, record
ing secretary for the Student Sen
ate, “I am having a pretty hard
time right now trying gathering
the information I need. I am hav
ing a time with the hometown
clubs especially.”
The directory will include club
requirements and fees, presidents
and sponsors and their phone and
addresses, and other facts con
cerning every organized club on
campus. It will be a form of guide
to the students interested in join
ing a particular club.
The Club Directory will be
made available to the student
body free of charge by the Stu
dent Senate.
Clubs who have not filled out
a questionnaire form are asked to
contact the Student Senate office
in the MSC.
Banking is a pleasure at First
Bank & Trust.
have to fight a great deal by our
selves,” Barnes said.
Barnes explained that Texas’
drug laws were slightly behind
because, before 1967, the state
legislature “wouldn’t even admit
that anyone in the state of Texas
used drugs.” It wasn’t until 1969
that laws for drug control were
brought before the house.
Part of the difficulty, he be
lieves, is that of the $234 per
person spent for state services in
Texas, only seven cents currently
goes for enforcement, treatment,
and drug education.
Barnes took a strong stand on
his views of Texas’ policy toward
the current drug problem.
“We are trying not to criminal
ize a whole generation of young
people,” Barnes said, “we are,
promoting legislation to cripple
the pushers—they belong under
the jailhouse.”
Barnes advocates a new liber
alized drug law that would allow
the first offense of possession of
marijuana to be lowered to an
misdemeanor status, while the
second offense would stay a fel
ony offense. Barnes continued
that it wouldn’t lessen the serious
ness of the crime, but give the
defendants with no other crim
inal records a second chance.
“A misdemeanor is grave
Memorial
arranged
A Nelle White and Charles
Henderson S e a w e 11 Memorial
Scholarship Fund has been set up
at A&M through a gift of 1,000
shares of McCormick and Co.
stock.
Mrs. Belle Patterson Elam and
Mrs. Elizabeth Elam Roth of
Houston presented the stock, val
ued at $70,000 at the time of the
gift, to A&M.
President Jack Williams said
permanently endowed fellowships
for graduate students in busi
ness are being established in hon
or of the late parents and grand
parents, respectively, of the don
ors in line with their wishes.
“Texas A&M welcomes this
splendid fellowship fund and
agrees to administer it as the
donors desire,” the president said.
enough, with the publicity it
gets,” Barnes reasoned. “If we
arrest every student that has
come in contact with marijuana,
there would not be enough room
in Huntsville or Gainesville to put
them.”
“I advocate making the first
offense a misdemeanor, leaving
the consequences of individual
cases to the judge’s discretion,”
Barnes said. “What I will work
for is legislation that will prove
tougher and tougher and tougher
on the pushers.”
Although Barnes admitted that
laws concerned with marijuana
should become more liberalized,
he stressed that the laws on hard
drugs should be tightened.
“I am not for legalizing mari
juana.”
“It is politically impossible to
legalize marijuana on a federal
level in any state right now be
cause no one is even close to find
ing out what the real facts con
cerning the drug’s effects on the
body are,” Barnes said.
When asked whether he be
lieved if smoking marijuana was
any worse than drinking alcohol,
Barnes replied, “I don’t know if
two martinis are any more dam
aging than marijuana, but just
because one harmful drug is legal
is no reason for legalizing an
other one.”
By JOHN CURYLO
A student credit union at A&M
will be a reality in a short while,
John Sharp, Student Senate Pres
ident, said after contacting the
Federal Credit Union.
The student organization would
be the second in Texas and only
the third in the entire country.
Other credit unions are in opera
tion at St. Mary’s University in
San Antonio and Michigan State
University in Lansing.
Sharp explained that there
were two purposes for establish
ing a credit union. The first is
to provide low-interest loans to
students. The other motive is to
create jobs for students, since the
staff of the credit union would
be composed of students, once it
is set up.
Sam Shippen, a graduate stu
dent here, was recommended to
Sharp early in the summer as a
possible source of help in getting
the student credit union started.
Shippen was responsible for set
ting up the credit union at St.
Mary’s.
“We worked on the idea of our
credit union,” Sharp explained.
“With his help we made arrange
ments and contacted Buff Parrot,
who is affiliated with the Federal
Credit Union in Dallas. Parrot
recommended that we join a tri
county credit union, but we told
him that our goal was to have a
student credit union. Once it is
established, we will expand to
faculty and staff.”
Group of three cadets chosen
to lead A&M Fish Drill Team
Mark Roberts of Fort Hood,
Robert Ripley of San Antonio
and David Skinner of Houston
have been chosen to guide A&M’s
1971-72 Fish Drill Team toward
a fifth straight national cham
pionship.
Roberts was selected comman
der from 64 cadets comprising
this year’s team. Ripley is exec
utive officer and guidon bearer.
Skinner is right guide.
scholarship fund
for A&M students
The university’s board of direc
tors acknowledged the gift with
a resolution.
Fellowship awards to graduate
students working toward the mas
ter's in business administration
will be derived through income
from capital investment of the
memorial fund, explained Dor
sey E. McCrory, development di
rector.
Awards will be designated
Nelle White and Charles Hender
son Seawell Memorial Fellow
ships in Business. Recipients will
be selected by the Faculty Schol
arship Committee upon recom
mendation by Business Admin
istration Dean John E. Pearson.
McCrory noted that Mrs. Elam’s
and Mrs. Roth’s gift comes at a
fortuitious time, when the Col
lege of Business Administration
is strengthening its graduate
program.
“It will be highly beneficial to
the students and equally encour
aging to the business faculty,
having this magnitude of inter
est taken in the college,” Mc
Crory added.
Correction
The Battalion erroneously re
ported the names of the Welfare
Committee chairman of the Stu
dent Senate and the president of
Alpha Phi Omega. Chairman of
the welfare committee is Randy
Ross. President of Alpha Phi
Omega is Dale Foster.
University National Bank
“On the side of Texas A&M.”
—Adv.
“You have a big job to do,”
commented Col. Thomas R. Par
sons, commandant. “We expect
you to give it your best and bring
back national championship No.
5.”
The Fish Drill Team, reformed
each school year with all-new
marching members, will make its
first public appearance Nov. 6 at
the Cadet Corps march-in to the
Texas A&M-SMU football game,
announced J. Malon Southerland,
chief sponsor.
First competition will be the
Dec. 4 University of Houston
meet.
Senior advisor Louis Ullrich of
San Antonio said the 64-cadet
team has been divided into three
units for practice. “These are
smaller than what the upperclass
advisors usually work with, but
easier to handle,” he said.
Roberts, an electrical engineer
ing major and Company C-2 ca
det, marched with the Killeen
High School drill team in junior
invitational drill meets hosted in
1970 and 1971 by A&M. He was
executive officer of the Killeen
team. Roberts is attending A&M
on Army ROTC scholarship.
Ripley, also an Army ROTC
cadet, majors in building construc
tion and is in Company G-l in
the corps. He was a four-year
member of the Central Catholic
High School drill team, of which
he was squad leader.
Skinner attended Clear Creek
High School. A business admini
stration major, he is an Air Force
ROTC cadet and Squadron 8 mem
ber.
Present plans are for Parrot to
come to A&M to explain the en
tire concept of credit unions to the
Student Senate and to finalize
plans for the A&M credit union.
After that, the Senate will apply
to Washington, D.C., for a char
ter. This whole process should
take about two weeks.
“President (Jack) Williams has
been receptive to the idea,” Sharp
said. “I’ve talked with him about
it, and he’s definitely in favor
of it.”
There is a legal question in
volved, in that it may be against
state law to run the credit union
on campus. This is not a problem
at St. Mary’s, because the school
is not on state property.
“We’re not at all worried about
this,” Sharp explained. “If we
can’t have it on campus, we’ve
arranged to operate it from one
of the local banks.”
To join the credit union, a stu
dent would have to pay an initial
fee of about $5 for membership.
With this, the student would be
eligible to borrow money.
“To regulate the size of loans,
we intend to have a committee of
members to decide on each loan,”
Sharp said. “Then when we ex
pand to include faculty and staff
membership, they will have mem
bers on this committee.”
Sharp pointed out that the Mi
chigan State credit union, now in
its second year, had $100,000
more than it was entitled to loan
out only six months after it was
set up. The credit union at St.
Mary’s took two months to es
tablish. It has been in operation
for 15 months.
He added that the credit union
went hand-in-hand with the pol
icy of looking out for the students’
financial welfare. This included
having the rent on married stu
dents’ housing lowered after the
wage-price freeze.
“Repealing the increase was
done on the state level through
the Office of Economic Opportu
nity,” Sharp explained, “but I
firmly believe that is was the re
sult of pressure exerted by stu
dent governments in actions sim
ilar to our Senate resolution rec
ommending the lower rent on the
university-owned apartments.”
Psychologist
starts lecture
series tonight
Clark Moustakas, noted author-
psychologist of the Merrill-Palm-
er Institute in Detroit, will speak
at the Contemporary Arts Com
mittee’s first fall lecture tonight
at 8 in the Memorial Student
Center ballroom.
Moustakas is author of “Crea
tivity and Conformity”, “Loneli
ness,” and “Individuality and En
counter”. His books are con
cerned with principles involved in
humanizing learning, encourag
ing individuality and self aware
ness, and the prospect of enrich
ing curriculums with art and the
creative process.
“I am happy being alone; be
ing with others — person to per
son or in real groups; I enjoy
walking, playing, singing, danc
ing, meditating, running in for
ests and along sea shores; rock
setting, gazing at the moon; and
reading what I want to read in
my own time and place,” Mous
takas said.
The format of Moustakas’ pro
gram, “Loneliness versus Being
Alone,” is to be informal.
Crosby group here
in Basement show
Chris Crosby and his five-man
band will perform tonight and
Friday night in the Memorial
Student Center Basement.
Crosby and his band have their
own style country folk-blues mu
sic and perform a lot of their own
material.
Crosby and the group have per
formed on the Merv Griffin and
Johnny Carson shows. Currently
they are on a concert and coffee
house tour of the country.
Prices for the 8 p.m. to mid
night perforamnces will be 50
cents tonight and 75 cents on
Friday.
Appearing Saturday night after
the football game will be Mike
and Barbara, a folk music duo.
The price for this performance
will be 50 cents.