les
THE BATTALION
Wednesday, March 1, 1972
College Station, Texas
Page 5
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Houston men subpoenaed by defense in Mutscher trial
HOUSTON <^*) — Five Hous- Weston Conrad, an employe of ther prosecution after entering a to explain why.’
if the
ton men, including Mayor Louie
^■Welch, were subpoenaed Tues
day by the defense in the Abilene
ibery conspiracy trial of House
Speaker Gus Mutscher and two
associates.
Others subpoenaed were golfer
Doug Sanders; Dr. W. II. Hin
ton, president of Houston Bap
tist College; Dr. Charles L. Al
len, pastor of the Houston First
Methodist Church; and George
stock fraud disclosures left him an investor in NBL stock and fraud allegations.
ielf Purclijjbri
ired by a
Warren
replied win
not ania
General Motors’ Buick Division
in Houston.
All five have figured in news
reports involving the National
Bankers Life Insurance Co. stock
scandal and the collapse of the
Sharpstown State Bank in Hous
ton.
Frank W. Sharp, Houston finn
ancier, controlled both the insur
ance company and the bank and
was granted immunity from fur-
guilty plea to federal charges in
volving the bank.
Welch has acknowledged los
ing money in NBL stock. Securi
ties and Exchange Commission
depositions have listed NBL
stock transactions by Sanders
and Hinton. Conrad has said he
was persuaded to invest in NBL
stock by Sharp.
Welch, informed he had been
subpoenaed, said, “I’m at a loss
Welch said he borrowed $235,-
000 in early 1970 to purchase
10,000 shares of NBL stock. The
note was later transferred to the
now defunct Sharpstown State
Bank. The note was still out
standing at the time of the
bank’s collapse.
Welch said at the time he had
bought the NBL stock at Sharp’s
request because he considered it
to be a good investment. The
holding worthless NBL stock
and seriously in debt, the mayor
said.
Allen, pastor of the church
Sharp attended, had borrowed
about $25,000 from the Sharps
town Bank, according to the Se
curities and Exchange Commis
sion records. The purpose of the
loan was not disclosed.
Sanders, a former golf pro at
Sharpstown Country Club, was
realized a profit from the in
vestments. He has been sued
by the Federal Deposit Insur
ance Corp., which took over the
Sharpstown Bank last year, for
an outstanding loan of $170,000
from the bank.
Hinton owned stock in the
Sharpstown Bank when it went
into receivership and NBL when
it was placed in conservatorship
following the government's stock
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Conrad said he was persuaded
by sharp to invest in NBL and
subsequently lost $20,000.
Records filed by the Securities
and Exchange Commission in
Dallas showed Hinton owned
9,900 shares of the bank’s stock
as of Nov. 1, 1969, which he
reported he bought for $231,770
and which was then valued at
$495,000.
Hinton also listed 2,214 shares
of the insurance company’s
stock, stock which he said he
bought at $24,354 or $11 a share
and which then was valued at
$66,420 or $30 a share. Dates of
these transactions were not listed.
The FDIC suit against Sand
ers alleges he borrowed the
money Aug. 24, 1970, promising
to pay 9% per cent interest un
til maturity and 10 per cent
thereafter and to pay the full
amount within 90 days. The
FDIC said the loan matured on
Nov. 22, 1970, but Sanders had
not made any repayment.
Welch, 52, is serving an un
precedented fifth consecutive
term as mayor of Houston. He
was bom in Lockney, Tex., and
is a graduate of Slaton High
School and Abilene Christian
College.
Welch is to become president
of the U. S. Conference of May
ors in May and become president
of the National League of Cities
next year.
Allen was appointed pastor of
the First Methodist Church in
1961, having served 12 years as
pastor of the First Methodist
Church in Atlanta, Ga. He has
preached in churches and spok
en to large conventions through
out the nation and is the author
of several books in the religious
field.
Hinton assumed duties as pres
ident of Houston Baptist College
in 1962. He came to the new
Houston school from Texarkana
College where he was president
for two years.
Prior to entering the college
administration field, Hinton
served as the administrator in
the Olney Public Schools. Other
professional experience includes
a position as an instructor at
Howard Payne College, a teacher
in San Angelo High School, and
principal of Lakeview High
School in San Angelo.
Report says
SS Fogg sank
within minutes
GALVESTON, Tex. <JP) — The
tanker V. A. Fogg sank within
2V2 to 3V6 minutes after it was
wrecked b yan explosion, accord
ing to a study of instruments re
covered from the sunken vessel,
it was related Tuesday.
Evidence of the rapid sinking
of the tanker was introduced at
the resumption Tuesday of a
Coast Guard hearing into the
loss of the 572-foot vessel.
Thirty-nine men died when the
Fogg exploded and sank 50 miles
off shore Feb. 1.
A letter from Texas Nautical
Repair Co. President Leslie J.
Swift Jr., read at the hearing,
said that his experts had exam
ined two chronometers and a
clock recovered from the floor of
the Gulf of Mexico. A chro
nometer is a very accurate time
piece.
The letter stated that the
clock stopped at 3:45 p.m. “due
to a violent physical shock.”
The chronometers, Swift wrote,
stopped at 3:47.5 p.m. The chro
nometers were stopped when
they were immersed in water,
Swift’s letter said.
“There was a two and a half
minutes’ difference between the
clock and the chronometers, the
clock stopped from sudden im
pact and the chronometers from
being submerged in water,” the
letter stated.
“The clock was most likely
running slightly fast which leads
one to believe the SS V. A. Fogg
could have sunk in 2^4 to 3%
minutes,” the letter stated.
An expert in the operation of
tankers, who asked not to be
named, said in an intezwiew at
a recess it is “almost impossi
ble” for anyone to get off a ves
sel that sank that fast after an
explosion.
The only witness heard dur
ing the morning session Tuesday
was Donald W. Motes, a former
chief engineer on the Fogg.
Motes described the operation
of an automatic engine firing
(oil burning) system and said
that it worked much better than
the manually operated system
which it replaced.