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faa officials staff clings to faint hope
Vol. 1
defend record
of dc io jets that Leland may be safe
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WASHINGTON (AP) — The na
tion’s top aviation official said
Thursday that DC-10s are safe, with
no evidence to justify grounding the
plane despite two incidents in a
month involving explosive engine
failure.
Federal Aviation Administrator
James B. Busey defended the DC-10
at a news briefing as a government-
industry task force began examining
possible design changes in the Mc
Donnell Douglas plane and other
wide-body jetliners to prevent explo
sive engine failures from disabling
the planes.
“It’s safe to fly. I would fly in the
aircraft today,” Busey said of the
DC-10 less than a day after a North
west Airlines DC-10 made a safe
emergency landing in Denver with
holes blasted in the housing of its
tail-mounted engine.
Busey formed the task force last
month, citing the July 19 crash of a
United Airlines DC-10 that killed
111 people in Sioux City, Iowa, and
damaging engine failures that in
volved a Japan Air Lines Boeing 747
in 1985 and an Eastern Airlines
Lockheed L-101 1 in 1981.
Investigators said the United DC-
10’s rear engine apparently disinte
grated in flight, knocking out critical
hydraulic flight controls that meet in
the plane’s tail section.
Busey, who has been FAA admin
istrator for six weeks, said it was too
early to make comparisons between
the Sioux City crash and the Denver
landing, which he said showed “the
way the system is supposed to work.”
The United plane carried General
Electric engines while the Northwest
plane had Pratt and Whitney en
gines.
WASHINGTON (AP) — The mood at Mickey Ice
land's congressional office turned somber Thursday as
aides clung to a faint hope resting on an elusive emer
gency signal transmitted from the rugged Ethiopian
mountain countryside.
As searchers trekked in darkness toward the source
of an airplane’s distress beacon, the vigil continued for
Leland, whose airplane vanished in turbulent weather
Monday morning after taking off from Addis Ababa en
route to a refugee camp 480 miles away.
As the search entered its third day, a National
Oceanic and Atmospheric Administration satellite
picked up a faint emergency signal 84 miles southeast
of Addis, far off the flight plan of the plane carrying
Leland and 13 others.
“We have some news; it’s not definitive news. Ob
viously that news is a little sobering, that the possibility
that they could have gone down in the mountains is so
bering,” said Leland’s spokesman, Alma Newsom.
Leland’s wife, Alison, who is six weeks’ pregnant,
their home in Houston.
The faint satellite signal was coming from and
lion of about 12,400 feet, which also was disheaneit
for those awaiting word of Leland, chairman of
House Select Committee on Hunger.
“The area where the signal was detected is in
mountains. That is not terrific news,” Newsom said
Searchers were sent into the mountains toward
source of the signal, but Newsom said it would
them four or five hours to reach the distress beacon
“They are in the mountains, they are on their.
They are climbing,” she said. Aerial reconnaissas:
however, would have to wait until daylight. 2 ©f Bus
Newsom said the area is not where Leland’sItcBollegi
would have been expected to be, well away from km
they were traveling.
Yet, she said, “if in fact it is the congressman'sptj
the best speculation would be . . . that they did tryloi
The
ateapf
jlhangt
turn to Addis w hen the\ could not land at therefiijjBidmin
“But until we get more definition, certainly we’re still
. . . positive,” she said after being briefed by the State
Department.
She also questioned whether Leland’s plane could
have been in that location, and whether the signal could
have come from his plane.
“It’s just an odd place for the congressman’s plane to
be considering what their destination was,” sne said.
“The location just seems so strange that we’re not draw
ing any conclusions. We are not going to let it get us
down.”
Also, the signal was not on the frequency that would
have been expected for the beacon on Leland’s Twin-
Otter turboprop plane, “which again is additional cause
for skepticism.”
camp and simply kept going farther south, hoping!’
they could get out of the turbulent weather ihaiisl
were in.
Two U.S. Air Force C-130 Hei< ules cargo planed
rived Thursday and spent three hours flying overs
path that Leland’s plane was supposed to havetakec
A U-2 aircraft also joined the search. U-2sarea; t
ble of taking high-resolution photographs overa
d f
Nevertheless, Leland’s younger brother, Gaston, was
in Washington making contingency plans to go to
Ethiopia, and his close friend, Houston City Coun
cilman Ben Reyes, had flown into the city Wednesday
night to get his papers in order for a flight to Ethiopia.
Reyes, however, had not left by Thursday afternoon.
Family members “are under a great deal of stress,”
Newsom told a crowded Capitol news conference,
asking reporters to “back off’ the family.
sions.
Four U.S. Army Blackhawk helicopters were.
peeled to arrive Friday.
Four Ethiopian Air Force helicopters also
added, joining the U.S. fleet and more than a d
light planes under the direction of the Ethiopian C l
Aviation Authority. 1
Two of Leland’s congressional colleagues, Re?|
Gary Ackerman and A1 Wheat, flew to Addis Ababa:|
take part in the search.
Speaker Thomas S. Foley asked Ackerman, a me:|
her of Leland’s select committee, and Wheat, a memsf
of the Congressional Black Caucus, would reprexl but the
the House in the search. Also making the trip wasli ftrease
sergeant-at-arms of the I louse. Jack Russ. |lrograi
600 University Oaks 696-3391
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Government moves to financing woes
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WASHINGTON (AP) — The
government began raising the first
of the billions of dollars it will need
for the big savings and loan bailout
Thursday, and a new agency moved
to rescue the first of the problem
S&Ls that have been contributing to
industry losses of $20 million a day.
The Resolution Trust Corp.,
formed Wednesday when President
Bush signed landmark thrift legis
lation, planned to announce the res
cue of three small institutions, re
solving the first of 262 problem cases
on its list.
Meanwhile, printing presses
churned out brand new signs for
S&Ls across the country, reassuring
depositors that their money is
backed by the full faith and credit of
the United States government.
That promise, once implicit in the
government’s deposit insurance pro
gram, is now explicit under the new
legislation.
For years. Congress has passed
resolutions affirming the govern
ment’s full backing of savers’ ac
counts up to $100,000. But, techni
cally, that promise was only as good
as the industry-funded insurance
program guaranteeing the accounts.
The law signed by Bush autho
rizes the government to borrow $50
billion over the next 26 months, for
the first time putting taxpayers’
money where politicians’ mouths
were.
The Treasury Department in
tended to raise the first $5 billion in
stallment of the bailout, as part of its
regular quarterly sale of debt. One
third of $15 billion in 247-day cash
management bills sold Thursday will
be earmarked for the RTC.
Money from the cash-manage
ment bills won’t be available until
Tuesday. In the meantime, the
Treasury Deparment has made $215
million available to the RTC to cover
Thursday’s transactions.
The three are on a list of 262
failed institutions in 33 states taken
over by regulators in anticipation of
enactment of the bailout law. By the
time it finishes its work, the RTC will
have dealt with about 500 ailing in
stitutions.
Analysts expect the bill, the larg
est financial bailout in the nation’s
history, to begin restoring public
confidence that eroded in the
months that Congress and the ad
ministration debated how to solve
the crisis.
In the six months from November
through April, S&L customers with
drew their money at a record rate,
taking out an average of $8 billion a
month more than they deposited.
The latest deposit data, due out
Thursday from the newly renamed
Office of Thrift Supervision, were
expected to show higher withdra
wals in June as institutions antic
ipated the new rules.
Public shows mixed reactions
after $285 billion S&L bailout
ASSOCIATED PRESS
The costly federal bailout of the
beleaguered thrift industry has pro
voked everything from anger to am
bivalence from the American public,
although many depositors say their
confidence in the soundness of the
nation’s banking system remains vir
tually unshaken.
“Every individual who has money
in a savings and loan has to be aware
that (the government) insures the
money . . . and the comfort level that
the savers should have is directly re
lated to the comfort they have with
the federal government,” said Ron
ald Hyde, who keeps checking and
savings accounts with thrifts in the
Phoenix area.
Echoing the sentiments of a num
ber of Americans, Hyde said he ap
proved of the long-awaited thrift in
dustry rescue plan that President
Bush signed into law on Wednesday,
but called the cost for carrying it out
“shocking at the very least.”
The landmark legislation will re
quire the government to spend a
whopping $285 billion over the next
30 years, more than half of that
from taxpayers, to close or dispose
of money-losing thrifts.
It is the most expensive industry
rescue in history and some experts
say it will cost each American tax
payer at least $ 1,500.
A spot check by the Associated
Press of depositors in cities nation
wide suggested widespread resent
ment that taxpayers must pay for the
industry’s problems. Most of the
thrifts’ problems can be traced to the
early 1980s when the industry was
deregulated, permitting S&Ls to en
ter a broad array of new, riskier
businesses.
“I think it stinks,” said Ramiro Sa
lazar, a 55-year-old mail carrier
from the Los Angeles area.
State taxes
rose in 1988
report says
WASHINGTON (AP)-Tax
payers paid seven percent moie
seven
in state taxes in fiscal 1988 than
they did in the previous year,tilt
government reported Thursdav
The Commerce Departmem
reported that state tax revenue
totaled $264 billion in the yen
ending June 30, 1988, comparfi
to $246 billion in the previousfis
cal year.
Tax collections in Hawaii
Montana and Oklahoma posied
20 percent gains each, the depan
merit said. Other states regisier
ing big gains included Texas, 1?
percent; Alaska, 18 percent;
sas and Maine, 17 percent each
Florida, 16 percent, and
Dakota, 15 percent.
Alaskans also paid more state
taxes on a per capita basis
$2,439 each — than residentsol
the other 49 states, the depart
merit said. New Hampshire had
the lowest per capita state tax
$532. The national per capitata.t
average was $ 1,077.
Three states had decreases
1988 overall tax collections-
Wyoming, down by nine percent
and Oregon and West Virginia
falling six percent each, thedc
partment said.
California had the largesttoial
state tax revenue, $36 billion,fol -
lowed by New York, $26 billion!
Texas, $13 billion; Pennsylvania
$12 billion; Illinois, Michiganatid
Florida, $11 billion each; and
Ohio, $10 billion. Tax collection!
in these eight states totalednearh
half of the taxes collected nation
ally.
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JNIVERSI
Glasnost affects more than politics:
Soviet press flocks to sensationalist
Constr
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MOSCOW (AP) — Headless aliens from space
invade Russia!
“Huge hairy creature” terrifies villagers in the
Volga valley!
Possible UFO lands in Moscow!
Although President Mikhail S. Gorbachev’s re
forms haven’t spawned U.S.-style supermarket
tabloids, glasnost has changed the Soviet media,
as evidenced by these recent stories.
The change is evident on state-run television,
once a showcase for morally uplifting and dull
“Boy-Loves-Tractor” movies about building com
munism. Now, six days a week as part of the
breakfast TV program “120 Minutes,” gray
haired mystic Alan Chumak waves his hands on
camera to cure viewers from Minsk to Vladivos
tok of what ails them.
Soviets with heart disease are requested to
watch the self-described journalist on Tuesdays.
On Fridays, Chumak will help viewers get rid of
allergies. People with stomach bugs or bone and
muscle aches should tune in on other days.
The inability to watch the program is not a
problem. Leave the set on, and a jar of water,
juice or massage cream placed by the TV screen
supposedly will be “charged” by Chumak’s ges
tures and can be used later for treatment.
Since the days of the wild-eyed monk Raspu
tin, hypnotist and confidant at the court of the
last czar, Russians have been intrigued by the oc
cult and fantastic, and stories about UFOs, van
ished planets and ESP have always had an eager
audience.
With glasnost, or greater openness, such topics
are getting more exposure than ever in the once
stuffy official Soviet media, despite the firmly
materialistic and rationalist ideology of the ruling
Communist Party.
In fact, the unlikely organ in the forefront of
the weirdness campaign belongs to the party it
self. The one million-circulation daily newspaper
Socialist Industry, an organ of the party’s Central
Committee, has a mandate to report on the So
viet economy, but often makes space for news
items that have nothing to do with either social
ism or industry.
On Tuesday, there was an intriguing account
of invaders from space landing in Central Rus
sia’s Perm region: milkmaid Lyubov Medvedev
told the newspaper, “At about 4:30 in theniort
ing, I was going to the farm when I saw a
figure seemingly riding a motorcycle. . .
when I looked closely at the figure, I notitf 1
there was no motorcycle, but just something^ WASH
sembling a man, but taller than average h a
short legs.”
The creature had “only a small knob instead
a head,” Medvedev said. “I was frightened
death, . . . then it became fluorescent and disi
peared.”
Beekeeper G. Sharoglazov saw two egg-shap*
“fluorescent objects” as big as aircraft hovering
a height of 600-1,000 feet. Others in mid)
also saw aliens with no heads, the paper said.
It quoted V. Kopylov, Communist Party
in the Chernushinsky region, as acknowledgi 1
that “something unusual is going on the terriw-
of our two collective farms.”
It was Socialist Industry as well that inform?
Soviets on Thursday of the huge, fleet-footed It- ^ er 1 f:
iry creature that terrified residents of the Kirn , ut J
settlement in the Volga basin.
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