Tuesday, September 11, 1984/The Battalion/Page 5
QlOilman testifies to misuse
3s of loan to Oklahoma bank
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United Press International
OKLAHOMA CITY — An oil
man testified Monday he never in
tended for the $30.3 million Penn
Square Bank “dummy loan” he
signed to be used for buying drilling
rigs or for paying off another oil
company’s delinquent loans.
“I’ve made it a policy and a prin
ciple never to be in the drilling busi
ness,” testified Robert Hefner III of
Oklahoma City in the opening day
of the criminal misconduct trial of
former Penn Square energy officer
William G. Patterson.
Patterson, 35, a former senior vice
president at Penn Square who was
replaced a week prior to the bank’s
July 5, 1982, failure, is charged with
six counts of wire fraud, two of mak
ing false entries on bank documents
and 17 counts of misapplication of
bank funds.
Hefner said he agreed to sign the
dummy loan with the understanding
it would only be used to help find
buyers for Mahan-Rowsey rigs and
would not be processed.
Prosecutors ( contend Patterson
hiked the $30.3 million note Hefner
signed in April 1982 to $31.3 million
Federal banking officials
say many of Penn Square
Bank's loans were poorly
collateralized.
to help the financially troubled Ma
han-Rowsey Oil Co.
Hefner said Patterson had asked
for help in securing some Mahan-
Rowsey drilling rigs to improve the
company’s cash flow.
Prosecutors said they had docu
ments showing $31.3 million was
credited to the account of one of
Hefner’s companies at Penn Square,
then withdrawn the day after
Hefner and Patterson talked.
A document for the loan bearing
Patterson’s initials was introduced
into evidence and Hefner said nei
ther he nor any of his company offi
cers authorized the change.
In opening arguments, Patterson
was characterized by his attorney,
Burck Bailey, as hard-working sca
pegoat selected for prosecution.
“If there was a conspiracy in Penn
Square Bank,” Bailey said, “Patter
son was the victim, not the perpetra
tor.”
U.S. Attorney Bill Price accused
Patterson of spinning a “web of de
ception” to cover criminal miscon
duct.
“He would tell any lie to anybody
as long as it served his purpose,”
Price said.
Price said Patterson sold more
than $2 billion in energy-related
loans to more than 60 small banks
and that the loans kept Penn Square
expanding.
“He spun a web of deception that
continued until the bank collapsed,”
the prosecutor said.“He laid down
an incredible pattern of lies. That’s
the essence of fraud.”
The bank’s failure affected insti
tutions such as Chase Manhattan
Bank of New York, Michigan Na
tional Bank, First Continential Bank
of Illinois and Seattle-First National
Bank.
Federal banking officials say
many of Penn Square’s loans were
poorly collateralized and that pro
ceeds from some loans were used to
pay off interest on other loans.
Testimony is to resume today.
MEMORIAL
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your money when
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And don’t forget our Noon Buffet
Every Monday-Friday
We Now Deliver FREE!!
Call Us at 846-6164 or 846-8749
PANNING
FOR
GOLD?
College of Agriculture to sponsor
career day Wednesday in MSC
Technology’s Leading Edge
Be a science or engineering of
ficer in the Air Force. If you
have a science or engineering
degree, maybe you can qualify
to join our dynamic team. See
an Air Force recruiter today.
Contact: SSgt Broadus at (409) 696-2612
h’fkhh!
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until fo
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OtUtKWi
By VIVIAN SMITH
Reporter
rofessional Career Planning in
Agriculture Day, the largest student
activity in the College of Agricul
ture, starts Wednesday in the Memo
rial Student Center.
More than 40 agricultural compa
nies will be on hand to discuss career
goals, opportunities and job require
ments with Texas A&M students,
said Dr. Howard Hesby, National
Agri-Marketing Association
(NAMA) advisor.
PC PA Day, sponsored by the Col
lege of Agriculture, NAMA and the
Career Planning and Placement
Center, tries to create a “trade show”
atmosphere in which students can
visit informally with company rep
resentatives, Hesby said.
This event, traditionally held the
third Wednesday of fall semester,
was created by NAMA in 1979 as a
service project for the College of Ag
riculture.
Hesby said the main purpose in
creating PCPA day was to expose
freshmen, sophomores and juniors
to agricultural companies so they
can plan their careers appropriately.
In addition, several companies
stay one to two days longer to grant
interviews for summer internships
and post-graduate jobs.
Approximately 800—1,000 stu
dents participated in the 1983 PCPA
Day, Rodnev Kleman, student coor
dinator, said.
“PCPA Day is very important,”
Kleman said. “This is the time to
make important contacts and find
out what you need to do in college to
qualify for a job when you get out.”
Several changes have been made
this year to ensure a relaxed atmo
sphere, Kleman said.
Instead of the traditional barbe
cue dinner, the day will end with a
casual reception for students, rep
resentatives and faculty at the Texas
Hall of Fame from 5:30 p.m. until
7:30 p.m. Admission to the recep
tion is $ 1.
Upperclassmen are asked to visit
the booths on the second floor of the
MSC from 8:30 a.m. to noon and
underclassmen are welcome from
1:30 p.m. to 4 p.m.
Try our
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SPREADING
THE NEWS
Since 1878
0 Shuttle returns to Kennedy Space Center
{ lighkn
slill Iti
United Press International
I CAPE CANAVERAL, Fla. — The
shuttle Discovery, its great engines
silent and its flight deck unmanned,
returned to the Kennedy Space Cen
ter Monday bolted to the back of a
lumbering 747 jumbo jet.
3 lie billion-dollar space freighter
was towed to its hangar early this
morning to ready the snip for its sec
ond mission in November.
Discovery’s trip home from Ed
wards Air Force Base, Calif., where
its six-day maiden voyage ended last
week, was delayed a day because of
bad weather in the midwest and the
lingering effects of then-tropical
storm Diana in central Florida.
NASA’s big ferry plane touched
down at the shuttleport’s 3-mile-long
runway at 11:38 a.m. after a 3 '/s-
hour flight from Altus Air Force
Base, Okla., where it spent the night
awaiting better weather.
Ball said the slow trip back to the
hangar will begin after a giant crane
like device plucks Discovery from
the back of the 747 and gently low
ers it to the ground.
Workers at the Kennedy Space
Center have geared up to support a
blistering launch-a-month pace for
the foreseeable future. Discovery’s
sister ship, Challenger, is scheduled
to blast off next month on an eight-
day mission with a record crew of
seven, including two women.
Challenger officially is scheduled
for launch Oct. 1, but that date prob
ably will slip a few days because of
delays in completing a major over
haul and extensive modifications.
Challenger is expected to be ready
for the trip to its windswept launch
pad Sept. 12 and final preparations
for its sixth flight.
Discovery is scheduled to blast off
again Nov. 2 on an unprecedented
rescue mission to retrieve at least
one — and probably two — commu
nications satellites left stranded in
useless orbits in February.
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Mon - Fri
Full Breakfast
7:30 AM -10:30 AM
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10:30 AM-1:45 PM
UNDERGROUND
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Mon - Fri
Games
7:30 AM-4:00PM
Snacks
11:00 AM-4:00 PM
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Quality First!
HELP!!!
We Need a Name
We are a Full Service
Washateria with
• 49 Commercial Size
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• 26 Extra Large Dryers
• Wash, Dry & Fold Service
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The Winning Entry Will
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per week for 1 yr. or until
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Bring Entry to 1806 Welsh
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The MSC Outdoor Recreation Committee is
having its first fall General Meeting
Tuesday, September 11th at 7 p.m. in
Room 701 Rudder Tower. Committee plans
will be discussed followed by a slide show
& refreshments. Admission is free and all
TAMU students are welcome.
* :
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Winner will
be announced
9/28/84 in the
Battalion
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