Friday, June 12, 1987/The Battalion/Paqe 5
l/arped
by Scott McCuiiar UT regents
elect oilman
as chairman
Photo by Robert W. Rizzo
l(),()()()-mile round trip to Alaska from Bryan. The
group will be driving 10 model-T Fords and will
take about two months to complete the voyage.
'wo more Texas banks fail;
stagnant economy blamed
0 (AP)'■ Ranking regulators shut down two more banks and a
r HennM savings and loan association Thursday, the latest victims
.lary Alutj of soured loans, poor management and the stagnant
Texas economy.
■ The failures bring to 31 the number of banks that
have collapsed in Texas this year, eclipsing the national
record the state set last year with 26. Tout savings and
loans have now been shut down in the state.
I First State Bank of Milford and Northwest Commer-
dal N.A. in Houston were closed and the Federal De
posit Insurance Corp. named as receiver, FDIC spokes
man Bill Olcheski said.
H In Texarkana, meanwhile, regulators declared Secu
rity Savings Association insolvent, citing bad lending
practices and speculative land purchases, Federal
Home Loan Bank Board spokesman Paul Olkhovsky.
I The S&L — which had $424 million in assets — was a
state-chartered stock association with 10 offices in East
,, lexas. It will reopen Friday as a federally chartered
s woiil |l | mutual association with the same name, and no one lost
money in the transfer, Olkhovsky said.
■ “I will not rule out a criminal investigation” against
tie S&L’s former directors, Clifton Brannon Jr. and
Don G. Jones, he said.
I “After those two acquired the S&L in August 1983, it
grew rapidly by 557 percent in 27 months, from $110
Haillion in July 1983 and $431 million in September
^^^4§j)85,” Olkhovsky said.
f l The S&L collapsed because of speculative land acqui
sitions, development and construction loans, as well as
» - reckless and imprudent lending practices, he said.
I Meanwhile in Milford, 50 miles south of Dallas, Ellis
Bounty State Bank will assume about $6.4 million in
day as»
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1,400 deposit accounts at First State Bank and will pur
chase all of the failed bank’s assets at a discount of $ 1.45
million, Olcheski said.
First State Bank, with total assets of $6.6 million, was
closed by State Banking Commissioner Kenneth W. Lit
tlefield.
Littlefield said a high concentration of poor-quality
loans extended by a former bank executive to a number
of out-of-area borrowers resulted in losses far exceed
ing the bank’s capital accounts.
The bank’s directors and shareholders were unable
to replenish the capital funds, and no new investors
were found to purchase and recapitalize the bank, Lit
tlefield said.
The FDIC also approved the assumption of the de
posit liabilities of Northwest Commercial, with assets of
$12.1 million, by Jersey Village Bank of Houston.
The failed bank’s two offices will not reopen, but its
customers can do business at Jersey Village Bank begin
ning Friday, he said. Northwest Commercial Bank was
closed by Kevin Blakley, director for special supervision
for the Office of the Comptroller of the Currency.
Northwest had a substantial increase in problem
loans that resulted from imprudent lending practices of
former management and poor supervision of lending
practices, officials said. The declining local economy
also contributed to its problems.
The Texarkana S&L was the sixth S&L to close this
year in the Dallas federal home loan district, which in
cludes Arkansas, Louisiana, Mississippi, New Mexico
and Texas. Eighty-eight banks have closed nationally
this year.
TYLER (AP) — Houston oilman
Jack . S. Blanton was unanimously
elected Thursday as chairman of the
University of Texas System Board of
Regents, succeeding a man who
stepped aside after feuding with
Gov. Bill Clements.
Austin banker Shannon H. Ratliff
and Bill Roden, a Midland oilman,
were elected vice chairmen.
Jess Hay of Dallas, who an
nounced Monday he would not seek
re-election as chairman but remains
on the board, and the three new offi
cials had been appointed to the nine-
member group by former Gov.
Mark White.
Hay, a prominent Democratic
fundraiser, had been under fire
from Clements, a Republican, be
cause he had repeatedly called for
increased higher education funding
while Clements worked to hold
spending at current levels.
Even though Hay chose not to run
again for chairman, Clements has
only three appointees on the UT
board and won’t have control unless
three White appointees leave the
board during his administration.
Blanton, a UT-Austin graduate,
was appointed to the board in 1985.
“Our goal is to have a University
of Texas System that will be the fin
est of anywhere, anyplace,” Blanton
said after the meeting.
He is chairman of the board and
chief executive officer of Scurlock
Oil Co. He is a former president of
the Mid-Continent Oil & Gas Asso
ciation and was president of the
Houston Chamber of Commerce in
1985-86.
He said Thursday that a major
emphasis will be on keeping profes
sors and attacting new faculty to
Texas universities.
“I expect to be in feet-first, partic
ularly trying to satisfy what we need
to do for our faculty,” he said.
Commissioner:
Bill will moke
highways safer
AUSTIN (AP) — A bill awaiting
the signature of Gov. Bill Clements
would help make Texas highways
the safest in the nation with regard
to trucks, Railroad Commissioner
John Sharp said Thursday.
“I think this legislation lays the
foundation for us having the safest
highways in the nation with regard
to the trucking industry,” he said.
A trucking deregulation bill
pushed by Sharp in the recent Legis
lature was amended, at his request,
to include safety provisions.
Sharp said the bill would autho
rize the Railroad Commission to reg
ister many commercial vehicles that
now do not have commission per
mits, and when the Department of
Public Safety issues a ticket to a
driver it would note the name of the
trucking company as well.
The measure would authorize the
commission to levy stiff penalties for
safety violations.
The deregulation portion of the
bill would allow trucking companies
to vary their rates 15 percent below
or above a base set by the commis
sion on shipments of 10,000 pounds
or more. Between 500 and 10,000
pounds, rates could vary 5 percent.
T he bill bans predatory pricing.
“There are shippers that do not
mind shipping overweight because
they’re not going to get the ticket,”
Sharp said in a Capitol news confer
ence. “There are trucking compa
nies that don’t mind ordering their
drivers to speed — to go recklessly
through Houston and Dallas and
Victoria and every other place in the
state, because it is that driver that’s
going to get the ticket.
“That has changed, and what
we’re here to tell those trucking
company owners, those shippers and
those drivers is that the day of the
Texas ‘road warrior’ is history, and
that what they face now is not just
administrative penalties of up to
$10,000 but they also face the ability
of the Railroad Commission, work
ing with the Department of Public
Safety, to put them out of business.”
He also said that in six months or
a year he might compile a list of the
10 or 20 best and worst trucking
companies and “let the public judge
whether they’re serving the public
interest.”
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