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World & Nation
dnesday, February 12,1992
The Battalion
Page 7
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Small businesses prevail in court over size dispute
I WASHINGTON (AP) - Small compa
nies such as advertising agencies won a
victory over the Small Business Adminis
tration in federal court Tuesday, as a
judge threw out the SBA's way of deter-
ining the size of such a firm.
U.S. District Judge Thomas Flannery,
ding in a case brought by Stellacom Inc.
of Houston, said part of the SBA's regula
tion defining annual receipts — the way it
Determines if a company is small enough
to be considered for federal contracts lim
ited to small businesses — is "arbitrary,
capricious and contrary to law."
The issue is crucial for firms like Stella-
jom, which contended that its survival is
dependent on qualifying for contracts set
aside for small businesses.
Stellacom is an affiliate of an
advertising agency, Walter
Bennett Communications,
which owns 72 percent of
Stellacom's stock.
Company officials were jubilant over
the decision, with chief financial officer
Curtis Logan exclaiming "Praise the Lord,
that's wonderful news."
In the decision, Flannery wrote that
"Before 1989, the SBA did not count the
client billings of an advertising agency —
the monies the agency receives from its
advertising clients and pays immediately
to media vendors ... — in its calculation of
the agency's annual receipts."
Gross income fails as guage
for granting federal contracts
Instead, the SBA counted only the
agency's gross income and did so because
that figure "does not include the full
amount of these client billings; instead, it
only includes the commission made on
the client billing," he wrote. "The SBA
followed this policy for nearly 30 years."
When the SBA proposed amending its
regulations in 1987, it said the change
simply "would have codified its existing
policy."
However, Flannery said
the final rule, as adopted,
"limited the exclusion for
amounts collected for anoth
er to the client billings of
travel agents and real estate
agents."
The change excluded "not just the ad
vertising agency industry, but all agencies
who collect client billings," Flannery
wrote.
SBA spokesman Dan Eramian said offi
cials there had not seen a copy of the deci
sion and could not comment until it was
reviewed.
The situation that brought the matter
to court was Stellacom's bid in Jan. 1991
to provide television support services to
the Johnson Space Center, part of the Na
tional Aeronautics and Space Administra
tion.
The contract was limited to small busi
nesses.
» To be considered "small," a bidding
firm's average annual receipts could not
exceed $14.5 million. Stellacom's exceed
ed that amount, but Logan said the com
pany's $30 million in gross receipts re
flected only $3 million in income.
"We feel like we cannot compete with
large businesses which is the category we
would have been thrown into,' v Logan
said.
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DALLAS (AP) — Car dealers, it
;eems, are less interested in a Buy
American movement than one
urging -- Buy Anything.
As the 75th convention of the
ational Automobile Dealers As
sociation ended Tuesday, some
expressed strong support for Buy
American fever.
But more said they were con
fused by it and were being ren
dered helpless by the U.S.-
'apanese trade dispute.
"It's disappointing," said Stu
art Rappaport, a Honda dealer
from Albuquerque, N.M. "It's a
simple solution to a complex
problem and it's so clouded as to
what's American that it's not sim
ple anymore."
On the other hand, Bobby
Lang, a Decatur, Ala., Ford dealer
said of Buy American is "the only
way to go ... I think people will be
come embarrassed to buy
Japanese cars."
The four-day convention was a
jumble of conflicting messages for
the 16,000 dealers and suppliers.
Behind closed-doors "make
meetings" with automakers, deal
ers said they heard top executives
of U.S. companies bash Japanese
competitors.
But the NADA's leaders ex
pressed support for free trade.
Iran exalts Islamic revolution, anti-U.S. furor
NICOSIA, Cyprus (AP) -
Proclaiming "death to America,"
hundreds of thousands of Irani
ans demonstrated in their capital
Tuesday on the 13th anniversary
of the Islamic revolution's tri
umph over Iran's pro-Western
monarchy.
President Hashemi Rafsan-
jani told demonstrators the sight
of such large crowds, some of
whom walked for hours to get to
the rally, brought tears to his
eyes, Tehran radio said.
Tehran television showed
Freedom Square and the sur
rounding streets packed with
crowds that looked to be in the
hundreds of thousands. It also
showed rows
of buses, sug
gesting many
people were
brought from
outlying areas.
Iran's offi
cial media,
monitored in
Nicosia, said 2
million people,
or the equiva
lent of one-fifth
Rafsanjani
of Tehran's population, gathered
to renew allegiance to their revo
lutionary patriarch. Ayatollah
Ruhollah Khomeini.
Although the chants and
demonstrations were familiar.
Iran has changed considerably
since Khomeini died of cancer on
June 3,1989.
Rafsanjani has sought to end
the Islamic republic's isolation
and shed its pariah image by
building bridges with the West
and Iran's Arab neighbors. He
has also called for an end to
"empty slogans."
However, he has not gone so
far as to oppose anti-Western ral
lies or threats against the United
States and Israel.
Doing so would play into the
hands of his radical opponents,
who already accuse Rafsanjani of
betraying Khomeini's legacy.
An Iranian resistance leader
Tuesday condemned Iran's lead
ership in a statement sent by fac
simile from Paris to The Associ
ated Press in Nicosia.
Massoud Rajavi of the Peo
ple's Mojahedin of Iran said
Khomeini and his followers
"have brought nothing to the Ira
nian people but pain, suffering,
misery, misfortune, destruction
and homelessness."
Tuesday's rally was the cul
mination of daily celebrations
that began Feb. 1, the anniver
sary of Khomeini's return from
exile in 1979. He seized power 10
days later.
NEWS SUMMARY
Lawyers analyze case,
study Tyson's defense
INDIANAPOLIS (AP) - In the end,
the Mike Tyson jurors believed the vic
tim's story that she was raped and the de
fense's story that the
boxer was a foul-
mouthed womanizer
who could not keep his
hands to himself.
Perhaps the defense
strategy backfired, or
perhaps his attorneys
simply made too con
vincing a case, lawyers
who followed the trial
said Tuesday.
Or perhaps, as the
Tyson
jury said after the verdict, the state just
had a better case.
"The 'creep defense' usually only
makes sense if you're pleading insanity,"
said Dan Caplis, a trial attorney and legal
analyst for KCNC and KOA radio in Den
ver.
The portrait of the former heavyweight
boxing champion merely added weight to
her charges and made it that much easier
for the jury to convict him, Caplis said.
"The jury heard over and over through
the defense that he was such a vulgar, ob
scene individual that any woman with
him should have been placed on notice to
what he wanted and who he was," said
Linda Pence, a local defense attorney who
attended the two-week trial.
Tyson could be sentenced to 60 years
in prison. Sentencing is scheduled for
March 6.
Bad economy stunts
airline growth plans
NEW YORK (AP) - First, the reces
sion devastated earnings at the nation's
airlines. Now, it is forcing a sobering re
duction in growth plans at the two
biggest carriers.
At first blush, one might think slower
expansion could make the aviation super
powers, American Airlines and United
Airlines, a little less of a threat to their
weaker rivals.
But experts said Tuesday that less
spending on airplanes and other equip
ment at two of the so-called "mega-carri
ers" won't make life easier for smaller
carriers. It does, however, raise questions
about whether the third-largest U.S. carri
er, Delta Air Lines, could soon announce
reductions in its own expansion plans.
The airlines have been put into a finan
cial tailspin, first by the Persian Gulf cri
sis, which raised fuel prices and spooked
passengers, and second by the recession,
which cut into demand for air travel and
prompted struggling carriers to initiate
harmful fare sales.
"If it's tough on the big guys, the
strong guys, it's 10 times as tough on the
people that are already in financial diffi
culty," said Lee Howard, president and
chief executive of Airline Economics Inc.,
a Washington-based aviation consulting
firm.
"The competition that the big guys are
offering is still very, very keen," Howard
said.
But the biggest airlines acknowledge
they need to slow the pace of their dizzy
ing growth.
Chicago-based United announced on
Monday that it was cutting its capital
spending plans through 1995 by about
$6.7 billion, to $12.2 billion. United will
achieve this cut by taking delivery of 156
aircraft during that period instead of its
initial goal of getting 278 new planes.
Tsongas gets respect,
rides high in NH polls
PORTSMOUTH, N.H. (AP) - Rose
mary Colliton waited more than an hour
to deliver her pledge to Paul Tsongas:
"I'm going to vote for character and not
charisma," she promised.
"You can do both," said Tsongas who
suddenly sits atop the shifting presiden
tial polls in New Hampshire replied with
a smile.
The former Massachusetts senator for
months was seen as the Rodney Danger-
field of the Democratic field.
Tsongas' painstaking organization and
steady campaign style, and message seem
to be paying off. With New Hampshire's
lead-off primary a week away, he is lead
ing the polls or at least tied with Arkansas
Gov. Bill Clinton.
Even if he won New Hampshire, cash-
poor Tsongas would be given little chance
of getting the Democratic nomination.
And even if he did somehow become the
nominee, few believe he could beat Presi
dent Bush.
The perception is based partly on the
sour memory of 1988 nominee Michael
Dukakis. Democrats worry about the im
pact a Tsongas-led ticket would have on
prospects for the party's Senate and con
gressional candidates.
"Some of the candidates and their sup
porters are very nervous about the
prospect of another Massachusetts nomi
nee," said Democratic strategist Ann
Lewis. "This is supposed to be a national
party."
Tsongas offers a no-frills economic
message anchored on restoring America's
manufacturing base.
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Qualified artist to teach basic drawing
techniques to A8M students. References are
required. Salary is negotiable. For more info,
contact Melissa 822-9154 or Erik 846-3624
Sfiend te&a tCtfce €tnd
SfisU&t^ '#2
Subside Beach Annual Spring Break Festival
For more information please call or write:
P.O. Box 1361 • Clute, Texas 77531
(409)265-2508
M
Presents:
The United States:
;y Facing the Challenges of - a
New World
AGGIE BASKETBALL
USE YOUR AI.L SPORTS PASS
AT ALL HOME GAMES
Women
Feb 12
Next Games
vs. SMU
7:30
Women
Feb 15
vs.
Texas
7:30
Men
Feb 19
vs.
Baylor
7:30
Women
Feb 26
vs.
Rice
7:30
KTAM for the Men... 1240 AM
WTAW for the Women..
.1150 AM
Mr. Henry Cisneros
President & Chief Executive Office
Cisneros Asset Management Co.
Wednesday: February 12,1992
Rudder Theater
8 PM
Euro
Transi
Chang:
NAT
Jean-Claude Renaud
Former Special Adviser to NATO, Director of European
Commission, and member of French U.N. delegation
This program will examine the changing roles of NATO and
the European Community in European issues.
ROSENTHAL MEAT SCIENCE AND
TECHNOLOGY CENTER
DEPARTMENT OF ANIMAL SCIENCE
PORK SPECIAL
Friday, February 14th
^ 3:00 P.M.
JlSjgBOl Rudder Tower
3W|fe==--- r : .. Free Admission
If - Presented by the MSC Wiley Lecture Senes
ASSORTED PORK
LOIN CHOPS
$1.29 per lb. 30-40 lb. box
$1.49 per lb. (1 inch thick, 4/pkg.)
Regular $2.29 per lb.
PORK SPAERIBS
$1.19 per lb. 30-40-lb. box
$1 .39 per lb.
Regular $1.99 per lb.
FRESH PORK
SAUSAGE
$1.09 per lb. 30-40-lb. box
$1.29 per lb. (1 lb. chubs)
Regular $1.69 per lb.
PORK BOSTON
BUTT ROASTS
$.99 per lb. 30-40-lb. box
$1.19 per lb. (boneless)
Regular $1.69 per lb.
FRESH BRATWURST
$1.49 per lb. 3‘0-40-lb. box
$1.69 per lb. (5 links/pkg)
Regular $2.49 per lb.
HICKORY SMOKED
BACON
$1.69 per lb. 10-lb. box
$1.89 per lb. (thick sliced)
Regular $2.49 per lb.
•EXTRA TRIM BEEF, LAMB, AND PORK -HICKORY SMOKED SAUSAGES, HAMS,
•SLICED AND CHOPPED BEEF BBQ -AND BEEF JERKY
•FARM FRESH EGGS -MILK, CHEESE, ICE CREAM, AND MALTS
•PRICES EFFECTIVE WHILE SUPPLIES LAST OR
THROUGH FEBRUARY 29, 1992
409/845-5651
MON-FRI • 9AM-6 PM