The Terre Haute Star from Terre Haute, Indiana • Page 16

The Star, Terte Haute, Thursday, April 20, Bankruptcy Series Reveals Double Sale DAYTON, Ohio (AIM The Aladdin Hotel and Casino of Las Vegas, on-ce owned by four $41 million bankrupt Indiana real estate trusts, was sold to the same nian. The price was $4.8 million less the second time, after the Cook Brothers tfusts had been tol-ced into bankruptcy court. The Dayton-Journal reported this unusual situation today in the loh of an it-part copyrighted series on Indiana bankruptcy cases. There have been public charges that a bankruptcy ring has been siphoning off assets of financially troubled firms. The story began in December, 1965, with the sale of the Aladdin to the Prell Hotel Corp.

owned by Milton Prell. The price negotiated by Cook Brothers trusts, was $10.25 million. But, In Iflfifi the trusts were forced into bankruptcy reorganization. After the American Fletcher National Bank wts named trustee. Matthew E.

Welsh, former governor of Indiana, and Sigmund J. Beck of Indianapolis were appointed attorneys for the trustee. After this, Prell. purchaser of the Aladdin less than a year before, stopped payments on busy Aladdin casino. He said ftp couldn't afford the $10.25 mil lion price, the Journal Herald said.

Welsh, Beck and two bann vice presidents. Albert A. Savill and Meredith Nicholson, flew to Las Vegas. Court testimony lacer showed they were in Las Vegas only a half day. That visit was in December, 1966.

Later the same month, the bankruptcy trustee and attorneys Welsh and Beck met Prell in Indianapolis. They agreed, the Journal Herald reported, to cut the Aladdin price by $4.8 million to a new purchase price of $5.45 million. The cut was made, the newspaper said, without an appraisal and without attempts to find Weather Forecast A wide belt of rain and showers is due Thursday from Texas, Kansas and Oklahoma eastward through the lower Lakes Area, Ohio, Pennsy 1 a i New York and southern New England. More rain and snow flurries are expected over Colorado and Wyoming. It will be cool through most of the nation except in the east.

(AP Wircphoto Map) competitive offers, nor did the trustee, largest bank in Indiana, audit Prell's books to verify his contention that he was losing money. Nine months later, Prell suffered a stroke. Prell's corptV ration, the newspaper said, lai er negotiated a third agreement, again for $5.45 million. The two sales agreements were approved hy U.S. District Court, the Journal Herald noted.

Ten days after this second sale the stockholders of Prell Hotel voted to merge with the Parvin-Dohrmann Co. The Journal Herald described Parvin-Dohrmann as "a Los A 1 s-b'ased corporation which was listed on the American Stock Exchange and which has been tied to a variety of underworld figures." There was however, another offer for the Aladdin, the Journal Herald said, although no record of the offer, dated Jan. 30. 1968, exists in the Ind i a a 1 i federal court records. The newspaper it obtained a copy of the offer from private sources.

The offer came from MK Investment a four-man outfit head by Edward J. Doumani, a Las Vegas hotel owner. Another of the four. Sam Kovacevich an Illinois businessman, said he presented the offer with a $100,000 check to U.S. District Judge William Steckler in Indianapolis.

"He seemed to favor the comp i i atmosphere. He seemed to be very receptive," said Kovacevich. Later, when Prrll got his third sale agreement, Kovacevich quoted Jddge Steckler as saying he fell very badly about the whole thing "and so on and so forth and that this was what he had to do." "This thing, I mean, let's face it." said Kovacevich, "It was wired right down the line." Royal Secrets TOKYO of the best-selling books in Japan this spring was written by Minoru Hamao, a former imperial palace chamberlain who was in charge of the children of Crown Prince Akihito. The title: "Onnanoko No Shitsukekata" to Discipline Young ADMINISTRATION ORDERS SCHOOL FUND CUTOFF WASHINGTON (UPI) administration Wednesday ordered the first cutoff of federal funds to a northern school district for failure to desegregate under the 1964 Civil Rights Act. The order from Elliot L.

Richardson, secretary of Health, Education and Welfare takes effect in 30 days in the Ferndale, system in suburban Detroit. The cutoff is the first ordered by HEW since mid-1970 when federal funds were halted for the Nacogdoches, independent school district and the Hendry County, Board of Public Instruction. "In of the failure of the school district to meet its Obligations under the law, we have no allernative but to terminate funds," Richardson said in reports submitted to several Senate Committees. "Every effort has been made to obtain compliance by voluntary means and the school district has had additional time SCftintJLE ELKS SW mST, MEET mm Terre Haute Elks Lodge will serve as host to the of- ganteation'S Southwest District spring meeting Friday, Satuf- day and Sunday. It will be the first time the local lodge has sponsored a district meeting at its new facili- ties aft tht gttmftds of Fort Cfftflfttt dufe to the fti Terffe Hfltfte.

The weekend schedule will in dude and dancing Friday evening, a ritual contest for members all day Saturday and cocktails, dinnet and dancing beginning at 6:30 p.m. A business meeting has been scheduled for 10 a.m. Sunday, followed by an awards banquet at noon. Activities filtrt planfred alstj lot Ifte Itfltes. liislatlttttott NEW ORLEANS (UPl) Mts.

Vivian Mayes Sffcitih, woman's editor of the Jenftings Daily Ne'ws, has beef) instated as the new president of the Louisiana Press Women (LPW). Mrs. Smith has won 31 LPW writing awards in her 11 years with the News. since the ease Was initiated in April, 1969." Under the law, Richardson must notify Congress of his intent to terminate federal! financial aid to a school district. An HEW spokesman said he did not know how much money the Ferndale system would lose.

A hearing examiner ruled on Sept. 28, 1970, that the school district built an all Negro elementary school 43 earlier and had restricted it Negro children since. That ruling was upheld a year later by the HEW civil rights- reviewing authority. Peruvian Oil Strike TULSA, Okfa. (UPI) Peru oil discovery in ils portion of the Amazon basin, according to oil industry sources.

Reports are that the Capirona X-2 wildcat has found a thick, sandstone oil pay in the Cretaceous section. A well 40 miles south of the latest discovery tested at a rale of 3,000 barrels per day through a one-half inch choke. I When you purchase the Jacobsen 31900 at $87.95 CLINTON CLINTON SHARPENING SERVICE 149 S. Main Street SULLIVAN ACE HARDWARE 30 W. Washington Street TERRE HAUTE DECKER SMALL ENGINES 20 N.

11th Street Distributed by-POWER EQUIPMENT COMPANY-ELMHURST, ILLINOIS CELEBRATING WOOLCO ANNIVERSARY See Our Dainty Dusters and You Know It's POLKA DOTS OR PLAIN COLORS--STRIPES OR PATTERNS-YOU'LL FIND IT IN OUR SPRING SELECTION OF WONDERFUL, COMFORTABLE, MADE-FOR-LEISURE DUSTERS. WHETHER IT'S COTTON, POLYESTER OR BLENDED FABRIC, YOU'LL FIND THAT, TOO. AND ALL AT ONE UNUSUAL PRICE THAT IS CERTAIN TO DELIGHT I TWO LOCATIONS WITH SCOTT'S PRODUCTS FROM ACE HARDWARE CENTER NORTH You can expect more from your lawn this spring! ALL IT TAKES JS T1IK HELP OF THE RIGHT PRODUCTS AND FRIENDLY ADVICE FROM TURF EXPERTS ON THEIR PROPER USE! You can add the vigor of new life to your lawn I tnra, l.lfrKiMM lV You need food to live so clot's our lawn Nature 5.1 'iiu- nutrienls, I' tn kffp ti.iti; Hut not nuit'li "lid th.ii. if lawn In do iiuue th. tccJ it.

And he heller ilx- l.iun toad, (he hcttcrr (he lawn. "Hull's H'RI Hi II Dif.rt, Sooiis. is America's favorite lawn food, Ti'RF is 7 to release its riiiiiicnls izraduaiiy. as the grass needs llifin. Makes grass yrow thicker and groener, inslc.ul just loiijier.

Sproatl i id- in II. DI and for voui.irlf. Family Choice ft. hay lil'v IllS sq. ft.

bag Ihs.i 15.000 sq.ft. bag (58Va Ibs.i 9 1 5 13 95 If you're planning on planting grass sporl this spring you'll he pleased with FAMILY' brand. Who)her you're seeding a now lawn or seeding into a thin lawn to make it thicker, you'll find thai, this best selling blend is a wise choice for front, back or side yards. Blended from fine perennial grasses, FAMILY brand adapts to a broad range of conditions, and can be used in full sun or partial shade. FAMILY is the idtal choice for an attractive, all-purpose lawn.

box (1 box 12 95 Tlie time to stop craljg'rass is before it starts It's easy with Stotts combination prod- IIAUs PLUS f-'orEmahlij'nedLawns. vSpread it on your lawn before crabgrass sprouts, and you set up a barrier that will prevent the ugly stuff from showing itself this year. HALTS PLUS fer- your lawn at the same time makes it grow thicker, greener, sturdier. Both benefits from the same application. If you're planning on seeding this spring, use HALTS PLUS For New Seed- instead.

It's priced the same, 2,500 sq. ft. bag 5,000 sq. ft. bag (23 14 95 O'REAR ACE HOWE, PLAZA NORTH LAFAYETTE AVE.

AT FT. HARRISON RD, 466-1218 PENTECOST CRAFT HOWE. MEADOWS CENTER OHIO AND POPUR AT 25TH ST. 235-8186.