he Battalion
M. 72 No. 135
12 Pages
Monday, April 16, 1979
College Station, Texas
News Dept. 845-2611
Business Dept. 845-2611
Train disaster?
Conditions are ripe for disaster
here if a train carrying dangerous
chemicals derails. There’s not
much of an evacuation plan, and
13-15 trains pass through the
campus each day. See page 6 for
details.
terest rate bill
be decided
soon
k United fress International
tllSTIN — Gov. Bill Clements planned
announced today whether he would
iport oppose legislation raising the
^interest ceiling on home mortgage
oni 10 to 12 percent,
ill has been stalled in House and
late committees for more than two
inths, and its sponsors have awaited
sments’ decision before attempting to
oAie bill to a vote.
](|iventional home mortgage loans in
eanwhile, have virtually ended in
teas as lenders say they no longer
rd to pay rates higher than 10 per-
foi the money they borrow, then fl-
■ lome purchases with that money for
lower interest rates.
Asked last week when he would make his
decision on the interest rate bill, Clements
said, “I said I would do it by the middle of
the month.”
Sen. Bill Meier, D-Euless, the Senate
sponsor of the bill, asked Clements to be
more specific, and he agreed to make his
decision Sunday — April 15.
“I will have an announcement to make on
Monday,” Clements told reporters, saying
he would meet first with Meier after mak
ing his decision.
Consumer groups have opposed the bill,
contending it would increase payments on
a $50,000 home by at least $75 a month,
making home purchases impossible for
many middle income Texans.
But lenders say the home purchases al
ready are impossible because the 10 per
cent interest ceiling makes it unprofitable
for them to make such loans at all.
Lt. Gov. William P. Hobby has said he
also favors the bill but would prefer there
be no interest ceiling at all to allow demand
and economic conditions to determine
interest rates.
If Clements gives his support to the bill,
Meier probably will seek a Senate vote on it
within the next two weeks, because its sup
porters have indicated they think it must
pass the Senate by May 1 to have a chance
of clearing both houses before the session
ends May 28.
enate ‘secret data’ shows
ss oil from Saudi Arabia
I
United Press International
WASHINGTON — A Senate study
edwith hitherto secret data said Satur-
i 1 Saudi Arabia is likely to produce bil
ls (f barrels less oil over the next two
cades than energy-hungry America had
en counting on.
The Senate Foreign Relations Commit-
istudy said Saudi Arabia can be relied on
iroduce only 12 million barrels a day —
the 16 million to 23 million predicted
man) U.S. energy experts.
The far-reaching study was expected to
ise a severe flap in U.S.-Saudi relations
pleasing secret details of oil fields on
J Bahian Peninsula.
The tate Department promptly disav-
Ay association with the; findings, say-
rth is report does not represent admin-
ratidn views. ’
Butnnembers of the Senate Foreign Re
lations Committee, holding a news confer
ence before leaving on a trip to Asia, de
fended the decision to make the report
public.
“It would be imprudent of the United
States to anticipate Saudi Arabia to increase
its production above 12 to 12.5 million bar
rels a day as it formulates its energy policy,”
said Sen. Frank Church, D-Idaho, the
committee’s chairman.
Sen. Jacob Javits, R-N.Y., the ranking
minority member, said the panel believes
“the release of this report is beneficial be
cause it introduces a note of realism.”
The study found “significant technical
and other considerations” contradicting the
“optimistic and highly expansive predic
tions” of up to 23 million barrels a day of
Saudi oil production over the next 20 years.
It said the previous predictions “are
problematical at best and cannot be relied
upon as an element in the formulation of
U.S. energy policy over the next two dec
ades. ”
Saudi Arabia, the Middle East oil giant
with the world’s largest proven petroleum
reserves, produced about 8 million barrels
a day in 1978 and provided 17 percent of
America’s oil needs.
The panel disclosed data about Saudi
Arabia’s petroleum extraction potential,
underground pressures and salt encroach
ment — details that the Riyadh govern
ment regard as national security secrets.
The data was obtained by cross-checking
subpoenaed documents from Exxon and
Standard Oil of California with estimates
from the CIA and other U.S. agencies.
The two firms—-as well as Mobil, Texaco
and the Riyadh government — are partners
in the powerful Arabian American Oil Co.,
which exploits the Saudi petroleum fields.
ousing for storm victims
f
United Press International
WfCHITA FALLS — The first 50 units
temporary housing arrived in the city
aster Sunday, six days after a tornado rip-
ed tlirough, leaving an estimated 20,000
eople homeless, according to a federal
isaster assistance spokeswoman,
jpeanwhile, Red Cross national director
>r Jerome Holland inspected the city,
bile Red Cross volunteers distributed
iastfer baskets among refugee children.
Holland said the Red Cross was spread
tiin, with personnel assigned to 12 disaster
real in the far West, Midwest, and South-
ast. But Holland said the heaviest concen-
ration of Red Cross professional staff was
wiring in Wichita Falls, where the tor-
adq killed 44 people and injured as many
Neila Petrick, public information officer
for the Federal Disaster Assitance Admin
istration, said the arrival of the housing
followed completion of administrative re
quirements.
“First the governor must request a disas
ter declaration from the president,” Petrick
explained. “If that’s signed by the presi
dent, it triggers several programs. Then
contracts have to be let, and the Corps of
Engineers must be given the mission to
prepare the sites.”
Petrick said another 139 trailer houses
were on order from Palo Pinto County,
Texas, and the agency has leased 400 trailer
sites in Wichita Falls. She said disaster offi
cials could move in as many as 2,000 tem
porary houses.
“Until these people come through the
(disaster assistance field) center, we won’t
have an exact figure,” she said. “We re a bit
undermanned, but these people have been
so patient.”
Holland arrived in Wichita Falls at noon
Sunday, and said he flew over the area and
toured it by car before meeting with Red
Cross volunteers. He said the organiza
tion’s efforts were aimed at aiding the
ministering to the hundreds of victims in
area hospitals and at distributing needed
food, clothing and bedding.
Holland is scheduled to meet with com
munity leaders today, and then move on to
Lawton, Okla., the scene of a second tor
nado strike last Tuesday. He said the tour
was made at President Carter’s personal
request.
Unique celebration
lembers of the A&M United Methodist Church on
Jniversity Drive kept an Easter vigil over a mock
tomb from Friday at sunset until dawn on Sunday.
Then the stone of the tomb — symbolizing the one
vhere Jesus was placed after crucifixion — was
rolled away from the mouth of the cave. About 25
Deople, mainly high school and college students.
participated in the 24-hour vigil, which was started
about six years ago. The writing on the stone is in
Greek, symbolic of the letters used by early Chris
tians to signify “Jesus Christ is risen today.”
Below, Sharon Schafer is inspired during the vigil
to write a few lines of poetry early Sunday morning,
while the rest of the group behind her discusses
other matters.
Battalion photos by Colin Crombie
Home is where I hang, my hat
At least one gentleman was unable to find a suitable
place to hang his stetson while using a telephone in
the Memorial Student Center. Though he probably
couldn’t manage it there, he should know that cow
boy hats are set down brim-up.
Battalion photo by Kayce Glasse
U.S. tax system "based on fear
Pay your
respects to
the IRS
Missing the Internal Revenue Service’s
tax deadline, or simply ignoring it, can
mean trouble not the least of which is jail,
says a Texas A&M University tax expert.
The deadline is midnight tonight, since
April 15 fell on a Sunday this year.
The IRS has several well-defined civil
and criminal sanctions for violators of the
tax laws, says Dr. Larry Crumbley, a Texas
A&M accounting professor and a certified
public accountant.
Crumbley says the difference between
the tax avoidance and tax evasion is about
five years and $10,000.
He says civil penalties include a 5 per-
United Press International
WASHINGTON — Recent research
into tornadoes has caused officials to revise
long-standing advice on how to cope with
twisters, the National Weather Service
says.
People in buildings in a tornado’s path
have in the past been told to open a window
on the side away from the expected funnel
cloud. This was recommended on the
theory it would equalize the atmospheric
pressure within and outside the building. It
was also thought a good idea because it
would make residents aware sooner of the
cent per month delinquency penalty for
intentional disregard of tax regulations
without the intent to defraud.
The highest civil penalty is a 50 percent
fraud penalty on any underpayment that is
due to fraud.
The criminal penalties are much stiffer,
says the professor. They provide punish
ment for severe offenses and generally in
volve imprisonment or fines, possibly both.
A maximum penalty is not less than a
$10,000 fine or imprisonment for not more
than five years, again possibly both.
What most people do not realize is that
both civil and criminal penalties may be
approaching storm.
But researchers at Texas Tech Univer
sity, commissioned by the National
Weather Service, found that opening a
window while a tornado is coming is in itself
dangerous because of the threat of flying
glass.
In addition, although the open window
might relieve some pressure on the roof, it
tends to put additional pressure on the
walls facing the storm. They found that
most buildings have enough natural vent
ing to handle the problem.
imposed for the same offense, says
Crumbley. The difference is often a matter
of whether the IRS wants to make a public
example out of a particular tax evader or
whether it just wants to collect the money.
He says generally the IRS prefers to just
collect the taxes plus any nomcriminal
penalties the law permits, even though the
taxpayer could be prosecuted for a criminal
offense.
“Without strong penalties to encourage
taxpayers to pay the taxes the law requires,
many citizens would just not pay,” explains
Crumbley. “Despite the annual ritualistic
statements by each successive IRS com
missioner about our marvelous self-
assessment method of taxation, the system
is really based on fear.
“The public is simply afraid that if they
don’t pay what the IRS says they owe, then
the IRS will attack their salaries, impound
their property and put them in jail, and that
is precisely what the tax law writers in Con
gress wanted to achieve.”
Crumbley stresses that avoidance of
taxes is not a criminal offense. Any attempt
by a taxpayer to avoid or minimize taxes by
legitimate means is permissible.
The distinction between avoidance and
evasion is a fine line, but a definite line, he
adds.
Simply put, a taxpayer who avoids taxes
does not conceal or misrepresent. He
shapes events to reduce or eliminate his tax
liability and, depending on the event,
makes a complete disclosure.
On the other hand, evasion involves such
descriptive legal terminology as deceit,
subterfuge, camouflage, concealment or
any attempt to color or obscure events.
It is the willful attempt to evade the tax
payment that really raises the ire of the
IRS, Crumbley says. Three elements are
necessary for a criminal offense:
—An additional tax must be due.
—There is an attempt to evade payment.
—The attempt is willful.
The willful part covers a large area of
human behavior. Even the most laudable
motive is no defense, says Crumbley. A
taxpayer may intentionally understate his
income in order to have sufficient funds to
support invalid parents, for instance.
Although such a motive may be admira
ble, one still specifically intended to evade
payment of income taxes, so there is no
defense, he says.
Run-offs for
student senate
positions today
Student Government run-off elections,
including contests for two crucial student
senate positions, are today only. Polls close
at 6 p.m.
The student body president for 1979-80
will be decided in the elections, being con
tested between Ronnie Kapavik and J.
Wayne Morrison. John T. Groce and Brad
Smith are in a run-off for vice president for
student services.
Students must show their activity cards
and ID cards to vote.
Voting is in the Memorial Student Cen
ter, the Commons, the Corps Guard
Room, Kleberg Center, Sbisa dining hall,
and bus stops located by the Reed
McDonald Building, south of the Oceanog-
raphv and Meteorology Building and east
of the MSC.
In a twister, don’t open window