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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (June 13, 1986)
4 f State and Local Friday, June 13, 1986/The Battalion/Page 3 = White: Clements caused overcrowding AUSTIN (AP) — Gov. Mark White and hit opponent, former Republican Gov. Bill Clements, blamed each other Thursday for the Kate's overcrowded priaons Clements said White is flirting with unconstitutional action by en dorsing a lease purchase plan for • new state prison He said White should call a special legislative set sion to appropriate monev from the state treasury White said Clements is "shame lessly” trying to pass the buck for his own failures, including vetoing a new prison several years ago “He s shameless.” White told his weeklv news conference. "We ought to send him a bill for about S3/ million, which is how much more it coats to build this prison than the one he vetoed "We would not be arguing ab out this today if he would nave done what he should have done then He plaved games with the future of Texas He plaved games with the most difficult problem any state has — the keeping of prisoners." Clements said current plans by the Texas Department of Correc tions board to build a prison with private funds, then lease and pur chase it. violate the Texas Consti tution s prohibition against deficit spending. "The lease-purchase agree ment is patently unconstitutional Mark W^hite needs to do what is right Mark White should call a special session, scrub the budget and find the money to build new prisons,” Clemenu said "Lease-purchase is deficit Financing. It would walk the state government off the plank of fiscal chaos and enormous debt," he said. The state currently is under a federal court order to add a 2,250- bed prison by Sept 1, 1987 But problems have been encountered finding the money to build one. White said he is confident that the lease-purchase arrangement will work. msiKing it is no diffe rent than the state government’s currently leasing some 7 million square fei space feet of commercial office Gramm proposal to tax plan would benefit Texans Area businesses losing money after train’s derailment SAN ANTONIO (AP) — The cleanup of a derailed freight train has meant Hundreds of thousands of dol lars in losses for nearby businesses that have been forced to close be cause of an evacuation order, officials say. “Our business has been a total loss because of this,** said Larry Jones. f rneral manager of Goldthwaite s ol an Antonio, a supplier of golf course materials. Jones' business and others in the area have been shut down since Sun day when 32 cars of a Union Pacific freight train derailed The derailment caused an explo sion which ignited a fire that burned several tankers hauling butadiene, a S as used in the manufacture of rub er and plastics, and foi maldehvde Officials, who decided to let the resulting fire burn itself out. ordered an evacuation of businesses and homes within a 2.500-foot radius. In itially. 2.000 people were forced from their homes, but by Thursday, the number had been reduced to about 750. Union Pacific officials said it likely would be sometime this weekend be fore evervbody would he allowed to return to their homes. Dennv Dav, general manager of Western fcroergency Services, ex plained the reasoning behind the ex tended evacuation, saving, “We could have a violent explosion ” Work crews Thursday were attempting to burn off the remaining chemicals inside the derailed cars. Officials said that step is the most dangerous. Jones said the derailment came at the busiest time of the year for his business. “It's a big concern and a big worry for all of us,” he said. “It's unfortun ate that we can't do anything about this" Jones said he has contacted claims adjusters with the railroad but is not sure if he w ill be reimbursed for the estimated $37,000 he is losing daily in sales. I om Rice, general manager of V aughan and Sons Lumber Co., said, “tach day this goes on, it gets worse." But he also said, “We want to be sure it is safe " Jack Stiffler, sales manager of Kobel Enterprises, said the evacua tion has com his business hundreds of thousands of dollars. Most of the 125 employees of the company, which makes auto hoods and other acces sories. have been idled this week. Meanwhile, officials said they like ly will never be able to identify the bodies of the two men found in the derailed train. WASHINGTON (AP) — Sen Phil Gramm said Thursday that he plans to offer an amendment to the tax overhaul bill that would benefit tax payers in states without income taxes by allowing the option of deducting either state income levies or sales taxes Gramm, R-Texas, told a news con ference he also expected to suggest paying for the deduction by closing a “gaping loophole” in the bill that allows unrstneted deductibility of in terest on second mortgages "That is an option we’re looking at right now,” Gramm said. "To prop ose allowing people to choose be tween full deductibility of income taxes or full deductibility of sales taxes and fund it by eliminating a loophole that allows people to get second mortgages to spend on vaca tions. buying boats, buying auto mobiles and other things that are not deductible under the tax code.” Gramm said his amendment would benefit suites that rely more on sales taxes than income taxes. Under the bill as it now stands, taxpayers would be able to deduct state income taxes, but not sales taxes. Texas has no state income tax. He said the other states most likely to benefit would be Alabama. Alaska. Arizona. Connecticut. Florida, Indi ana. Louisiana, Mississippi. Nevada. New Mexico. North Dakota. Smith Dakota. Tennessee. Washington and Wyoming, The massive tax overhaul legisla non. which is undergoing lengthy de bate on the Senate floor, would de crease the basic federal income tax rates for most taxpayers while elimi nating many deductions. Gramm, a principal sponsor of the Gramm-Ruaman balanced-budget law, said restoring the sales tax de duct ion across the board would cost $17 billion over five years, but the giving taxpayers his proposed option would cost $3.3 billion He said he was leaning toward offering an amendment that would offset the com of the option approach by allowing deduction of second mortgage interest only when the monev is used for a home, home re modeling. a second home, medical expenses or tuition and books Mexico defends policy on loss of capital to U.S. in desperate need of new loans for a stalling economy, is trying to defend itself againvi charges that government policies caused wor ried Mexicans to move billions of dollars out of the country. Foreign bankers and government officials have expressed reservations about lending Mexico more when so much monev leaves the country. * Analysts say capital flight occurs when in vest nrs and nthem lack confidence in the eco nomy and the government. Siiue 1982. the government has been blamed for soaring inflation, uneven growth and a bloated federal budget. In those conditions many Mexicans turn their peso currency into dollars, taking the monev out of their own economy and most often into the United States. Morgan Guaranty Trust Co. of New York estimates that Mexico lost $53 billion m capit al from 1976 through 1985. This gives the tountry the worst outflow in Latin America. From 1983 through 1985, Mexico Iom $17 billion, the bank said. Because of this. Mexico owed $97 billion in foreign debts at the end of last year instead of the $12 billion they would have owed, the bank said Mexico disputes Morgan Guaranty's fi gures Mexican officials complain they have got ten little help from the United States in trying to curb the flow. The Bank of Mexico, the nation's central bank, estimates that $6.8 billion left in 1983- 85. Analysts also estimate that $1 billion re turned to Mexico this year after the Bank of Mexico tightened credit controls and virtual ly cut off the flow of loans to the private sector. Businesses were forced to bring some of their money back to continue operations, analysts and government officials say. President Miguel de la Madrid said in a television interview this week that high U.S. interest rates of recent years have attracted Mexican money . Miguel Mancera, Head of the Bank of Mexico, has argued that among other things, some of the money Morgan Guaranty calcu lated as capital flight was lost to smuggling Mexicans wanting consumer goods not available here can easily buy the goods in the United Suites and sneak them in. 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Layaway available ROUND ,27cts .28cts ,42cts ,45cts ,46cts ,46cts 49ctS ,52cts .52cts .53cts 54cts 54cts 55cts 55cts 56cts 57cts 58cts. 59cts. 61cts. 62cts. 6 Sets 66cts. 72cts 76cts 93cts, 97cts 96cts. 1 OOcts 270.00 325.00 660.00 695.00 585.00 595.00 785.00 810.00 875.00 845.0 695.00 875.00 865.00 895.00 895.00 895.00 945.00 930.00 975,00 975.00 835.00 975.00 1050.00 1125.00 1560.00 1880.00 1950.00 2150.00 PEAR Compere et 535.00 650 00 1300.00 1395 00 1195.00 1200 00 1595.00 1600.00 1775.00 1750.00 1395 00 1775.00 1850.00 1800.00 1800 00 1800.00 1900.00 1850.00 1795.00 1795.00 1750.00 1795.00 2000 00 2250 00 2995.00 3795.00 3995 00 4295 00 Compere •t 2000 00 2300 00 H PEA R |H Our Compere Price at sects 795.00 1600 00 62cts 1395.00 2795.00 78cts 1750.00 3500 00 MARQUISE Our Compere Price at 27cts 325.00 650 00 30cts 365.00 700.00 33cts 395.00 675 00 3 Sets 425.00 895 00 37cts 450.00 900 00 SOcts 895.00 1795 00 70cts 1195.00 2395 00 73cts 1235.00 2450 00 OVA L ■ Our Compare Price at 25cts 195.00 400 00 27cts 200.00 400 00 38cts 285.00 595 00 44ctS. 335.00 700 00 .7lcts 1495.00 2895 00 78cts 1650.00 3000 00 83cts 1650.00 3000 00 90cts 1095.00 2050 00 • RA DIA NT Our Compere Price at 3Sets 635.00 1265 00 93cts 1945.00 3995 00 This is only a pertiai inventory, meny more ttamonds in slock. 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