The Galveston Daily News from Galveston, Texas • Page 6

rA (fralutaton Hallo JJetua Thursday Morning, January 23,1986 High court rules Fed lacks power to limit growth of non-bank banks WASHINGTON (AP) The upreme Court ruled Wednesday nat the Federal Reserve Board icks power to limit the growth of ver-increasing "non-bank The 8-0 ruling clears the way or continued expansion of the in- ititutions unless Congress in- ervenes. Supporters say non-bank banks, are bringing about major changes in the financial community, offer the public a wider variety of services and create more competition in the industry. Opponents say it is a dangerous practice to obliterate legal barriers, created during the Depression, between the banking industry and other forms of commerce. Non-bank banks also are called limited-service banks because, technically at least, they offer either checking accounts' or commercial loans but not both, as do full-service banks. The court said the Federal Reserve Board expanded the definition of a bank beyond what federal law intends.

"Without doubt there is much to be said for regulating financial institutions that are the functional equivalent of banks," Chief Justice Warren E. Burger said for the court. But he added, "Congress defined with specificity certain transactions that constitute banking subject to regulation. The statute may be imperfect but the (Federal Reserve) Board has no power to correct flaws that it perceives in the statute it is empowered to administer." Burger said that if the law "falls short of providing safeguards to protect the public interest that is a problem for Congress, and not the board or the courts, to House Banking Committee Chairman Fernand St Germain, said the ruling makes congressional action urgent. "This has the potential for massive change in the U.S.

banking system and its relationship to other areas of the economy," said St Germain, sponsor of a bill to bring non-bank banks under the control of the Fed. "If we don't do anything in the Congress, we will have a plethora of who-knows-what kinds of financial institutions which will be very hard to regulate," he said. The bill has been approved by the House Banking Committee, and has been before the Rules Committee, which decides procedures for House action, since last June. At the Federal Reserve, spokesman Joseph Coyne agreed that the court's decision "puts the issue squarely up to Congress." Coyne said the Fed suspended processing applications for non- bank banks and returned all uncompleted applications last March 15. He said the central bank was assessing what it will do in the wake of Wednesday's ruling.

"Since we don't now have any applications, the question is premature, "he said. Robert B. Evans, president of American Financial Services Association, a trade group that represents non-bank banks, said the decision unanimously upholds what their proponents "have said all along: Congress clearly exempted from the Bank Holding Company Act financial institutions that do not both take demand deposits and make commercial loans." He said Congress should take no action on the matter, "letting competition take its course." The Fed appealed to the Supreme Court to close what the agency considers a gaping loophole in federal banking law. The court said Wednesday that non-bank banks, because technically they are not full-service banks, are exempt from the Federal Bank Holding Company Act that bars interstate ownership of banks. The new type of banks are springing up around the nation as major brokerage firms, such as Merrill Lvnch OBITUARIES Ed Johnson Jr.

DICKINSON Ed Johnson 64, died Wednesday at his home. Arrangements are" pending with Mainland Funeral Home in La Barque. Michael Wafer GALVESTON Michael Leroy Wafer died Wednesday at John Sealy Hospital. Arrangements are pending with Lundy Mortuary in palveston. Edmond Wilcox Sr.

DICKINSON Edmond Joel Wilcox 68, died Tuesday at Mainland Center Hospital in -Texas City. Service will be at 10 a.m. today at James Crowder Home in La Marque, the Jlev. Douglas Guthrie officiating. Burial will follow at Galveston "Memorial Park in Hitchcock.

Mr. Wilcox was born Jan. 14, 1918 in Knight, La. He retired as a jvelder for Marathon Oil Co. of "Texas City.

He lived in Dickinson 15 years and was formerly of $exas City. He was a U.S. Army veteran of World War II and a member of Dickinson V.F.W. Post 6378. Survivors include four daugh- '-ters.

Gwendolyn Boggs, Virginia Carol Daner and Lorraine Doherty, all of Texas City; -Jour sons, Edmond J. Wilcox of Dickinson, William Wilcox of League City, and Joseph Wilcox and Benny Wilcox, both of Texas a sister; five brothers; 24 grandchildren; and three great- grandchildren. Visitors may call at the funeral home after 8 a.m. today. Hayden Ware TEXAS CITY Hayden 0.

Ware, 66, died Wednesday at Mainland Center Hospital in Texas City. Service will be at 10 a.m. Friday at Emken-Linton Funeral Home in Texas City, the Rev. Larry Miller officiating. Burial will follow at Forest Park East in League City.

Mr. Ware was born June 3,1919 in Angus, Texas. He retired from Marathon Oil Co. as a machinist and was a member of Oil, Chemical and Atomic Workers Union Local 4-449. He was a member of College View Baptist Church.

He had served in the military. Survivors include his wife, Oma iVare of Texas City; a sister, Billie Smith of Dallas; and a Jiiece. -Pallbearers will be James Jerry Powell. Thomas Moore, Steve Farrow, Dennis Morris and Stanley Morris. 1 Visitors may call at the funeral home after 5 p.m.

today. 132 YEARS of Service of our business comes through we ve thoughfully served. The Reason understanding, sincere 'guidance and dependability in helping select a fine "monument of Rock Ages Granite. C.P. Punch GALVESTON C.P.

Punch, 72, died last Saturday at John Sealy Hospital in Galveston after a brief illness. Service will be at 11 a.m. Saturday at Lundy Mortuary of Galveston, the Rev. Lemuel Stinson Sr. officiating.

Burial will be in Veterans' Cemetery in Houston. Mr. Punch was born June 25, 1913 in Rusk County, and had been a longtime Galveston resident. He was a veteran of World Warll. Survivors include a daughter, Georgia Carter of Garland; five grandchildren; 10 great-grandchildren; three sisters, Ophelia Harper of Oakland, Alice Stanfield and Mazie B.

Sheppard of Reklaw; three brothers, Joe Punch of Dallas, J.D. Punch and Jack Punch, both of Reklaw. Friends may call at the funeral home after 4 p.m. Friday. Arlon Hill INGLESIDE Arlon Gail Hill, 50, has died at Corpus Christi Hospital.

Services will be at 2 p.m. Friday at First Baptist Church of Ingleside, the Rev. Clif Abshier officiating. Burial will follow in San Patricio Memorial Park in Portland, Texas. Arrangements are under the direction of Marshall-Ramey Funeral Home of Aransas Pass.

Mr. Hill was born April 3, 1935 in Nacogdoches. He was president of A.G. Hill Power. vice president of Patton Seafood, and a member of the Ingleside City Council.

Survivors include his wife, Opel Hill of Ingleside; three sons, Keith Hill of Portland, Arlon Hill Jr. of Van Alstyne, Texas, and Byron Hill of Houston; two daughters, Vickie Jantz of Texas City and Jo Lynn Hill of Albuquerque, N.M.; his mother, Marie Butler of Texas City; and eight grandchildren. Visitors may call at the funeral home from 8 a.m. today until 12 noon Friday. Leo Williams TEXAS CITY Leo Williams, 81, died Tuesday at Mainland Center Hospital in Texas City after a lengthy illness.

Graveside services will be at 2 p.m. today at Mainland Memorial Cemetery in Hitchcock, the Rev. N. Humphrey officiating. Arrangements are under the direction of Mainland Funeral Home of La Marque.

Mr. Williams was born Feb. 2, 1904 in Lake Charles, La. He was retired from the railroad. Survivors include a brother, Neil Williams of Lake Charles.

Visitors may call at the funeral home until the time of the service. Hannah Palmore OAKLAND, Calif. Hannah Palmore, 97, died Saturday at her home. Services will be 1 p.m. Saturday at Rising Star Baptist Church in Texas City, the Rev.

Dr. D.N. Benford Sr. officiating. Burial will follow in Rising Star Cemetery, La Marque, under direction of Mainland Funeral Home of La Marque.

Born Nov. 24, 1889 in Mumford, Texas, Mrs. Palmore was a homemaker. She was a member of the Greater St. Paul Missionary Baptist Church of Oakland, Calif.

Survivors include a son, Johnnie Parmore of Oakland: a sister, Carrie Taylor of Wharton: and numerous other relatives and friends. Friends of the family will serve as pallbearers. Visitors may call at the funeral home after 1 p.m. Friday. Memorials may be sent to Mainland Funeral Home, 2711 Texas La Marque, 77568.

Maria Sanchez DICKINSON Maria M. Sanchez, 75, died Wednesday at Humana Hospital-Clear Lake in Webster. Service will be at 10 a.m. Friday at the Shrine of the True Cross Catholic Church in Dickinson, the Rev. Luis Villareal officiating.

Burial will follow at Mount Olivet Cemetery in Dickinson under the direction of Jack Rowe Funeral Home, League City. A rosary will be said tonight at 7 at the funeral home. Mrs. Sanchez was born on April 20, 1910 in Mexico. She was a homemaker, a lifelong resident of Dickinson and a member of the Shrine of the True Cross Catholic Church.

Survivors include a daughter, Margarita Stevens of Dickinson; two sisters, Margaret Rimner and Rosie Navarro, both of Dickinson; three grandchildren and one great grandchild. Pallbearers will be William J. Stevens Frank Lopez, Abel Garcia, Manuel Martinez Silberio Gonzaies Leonardo Barajazand Charles Flores. Friends may call after 1 p.m. today.

Betty Cox GALVESTON Bettye J. Cox. 55, of Galveston, died Tuesday at the University of Texas Medical Branch in Galveston. A funeral service will be held today at 2:30 p.m. in the Memorial Room at Broadway Funeral Home, with Rev.

Robert Dowdy officiating. Burial will follow the service at Lakeview Cemetery in Galveston under the direction of Broadway Funeral Home. Republican candidates may file at Tuesday meeting OTT MONUMENT WORKS, INC. GALVESTON MM MTOA9WAY MON-ntl- LAMARQUI J27 TEXAS A VS. GALVESTON Candidates for election in the May 3 Republican Party primary may file for office at the Tuesday, Jan.

28, meeting of the Galveston County Republican Party executive committee meeting. SF art exhibit to open Friday SANTA FE Western art by Santa Fe students in grades one through twelve will be on display Friday at Santa Fe High School. The exhibit will be open from 7 to 9 p.m. in Art Room 140. The public is invited to attend.

The meeting will be at the Nessler Civic Center in Texas City starting at 7:30 p.m., Dr. Ben Raimer announced. He said those needing forms or information on filing should contact him at either 763-0311 or at 938-8466. The filing deadline for both political parties is Feb. 3, at 6p.m.

Raimer said he will be glad to answer any questions citizens or prospective candidates have regarding filing. He said the Republican Party's candidate recruitment chairman, Henry Haney, will be available to help candidates complete forms and answer questions. Mrs. Cox was born July 1, 1930 in Zulch. Texas, and" was a housewife.

Survivors include her husband, Bernard Cox; four daughters, Cheryl Charbula of Galveston, Susan Mahevron of Florida, Daryle Johnson of Houston and Bobbie Le Gros of Rye, Texas; two sons, John Hubbard of Conroe and Harry Mahevron of Galveston; and six grandchildren. Pallbearers will be Russ Wristen, Mark Garcia, Tommy Hooper, Jesse Peek and Jude Peek. FUNERALS TODAY Ronnie Walker, 33, of Blythe, died in California; graveside service 10 a.m. today at Forest Park East Cemetery; burial under direction of Jack Rowe Funeral Home, League City. FRIDAY Tollie Gamble, 75, of Texas City, died Tuesday; services 2 p.m.

Friday at Mainland Funeral Home of La Marque; burial in Mainland Memorial Cemetery in Hitchcock; visitors may call at the funeral home after 1 p.m. today wake at 7 tonight. Mary E. Sanders, 84, of Galveston, died Saturday; services 2 p.m. Friday at West Point Baptist Church of Galveston; burial in Lakeview Cemetery of Gaiveston, under direction of Fields Funeral Home; visitors may call at the funeral home after 4 p.m.

today; wake at 7 tonight. Eunice Wright, 65, of Galveston, died Monday; service 11 a.m. Friday at Mt. Pilgrim Baptist Church; burial at Lakeview Cemetery in Galveston, under direction of Fields Funeral Home of Galveston; visitors may call at the funeral home after 4 p.m. today; wake at 7 tonight.

Mary Bohuslav MOULTON Mary Bohuslav, 93, died Wednesday at Moulton Nursing Home in Moulton after a lengthy illness. Service will be at 3 p.m. Friday at St. Joseph Catholic Church in Moulton, Monsignor Robert Schmidt officiating. Burial will be at St.

Mary's Catholic Cemetery in Praha Texas. Mrs. Bohuslav was born Nov. 8, 1892 in Praha in Fayette County. She was a longtime resident of Moulton.

She was preceded in death by her father, Joseph Migl; her mother, Alosia Mikulik; and a son, Robert, who was killed in action during World War II. Survivors include two other sons, Ernest Bohuslav of Hallettsville and Herman Bohuslav of Corpus Christi; three daughters, Helen Farmer of Moulton. Elsie Darilek of Texas City and Mildred Patek of Victoria; 15 grandchildren; four step-grandchildren; 26 great-grandchildren; four step- great-grandchildren; two step- great-great-grandchildren; four brothers. Joe Migl of San Antonio, Edward Migl of Moulton, Willie V. Migl of Yoakum, John Migl of Wichita Falls; three sisters, Agnes Jemelka, Annie Jasek and Maehalec, all of Moulton.

Pallbearers will be Mrs. Bonus lav's grandchildren. Memorials may be sent to a favorite charity. WORLD BRIEFS Time apologizes to Sharon TEL AVIV, Israel (AP) Time magazine apologized Wednesday to former defense minister Ariel Sharon and agreed to pay some of his court costs, ending a protracted libel action that first was heard in New York, a lawyer for the magazine said. Shmuel Barzel, a lawyer for the European subsidiary of the publication, said a Tel Aviv District Court approved the compromise and dismissed the case.

Sharon sued Time Inc. seeking damages of $250,000 for an article that alleged he discussed avenging the 1982 murder of Lebanese President-elect Bashir Gemayel with Gemayel's family two days before Israel-allied Christian militiamen killed hundreds of Palestinian refugees in Beirut. Sharon, who now serves as trade and industry minister in Israel's coalition government, first sued Time in the United States in January 1984. A New York District Court ruled that the magazine's story was false and defamatory but cleared Time of actual malice and did not award Sharon damages. The Tel Aviv court later accepted that ruling in connection with Sharon's second libel suit, which began after the New York case ended.

Swiss won't boycott Libya BERN, Switzerland (AP) The Swiss government announced Wednesday it will not join a U.S. call for international economic sanctions against Libya. The Federal Council, neutral Switzerland's collective executive, has sent a letter to President Reagan informing him of its position, government spokesman Achille Casanova told reporters. The United States imposed a trade boycott and other measures against Libya after last month's terrorist attacks at Rome and Vienna airports, where 19 persons, including five Americans, were killed. The United States accused Libyan leader Moammar Khadafy of supporting the Palestinians who carried out the attacks.

Western nations were asked to join in or not undercut the sanctions. Casanova said the letter to Reagan stressed that Switzerland was ready to participate in international antiterrorist measures but pointed out that the neutral nation traditionally has not joined sanctions imposed against only one country or a limited group of countries. N. Ireland election today BELFAST, Northern Ireland (AP) The political unrest triggered in Northern Ireland by last November's Anglo-Irish agreement reaches a critical stage today when the province votes in 15 parliamentary elections. The Protestant majority, bitterly opposed to a treaty which gives the Irish Republic a say their affairs, is portraying the special elections to the British Parliament as a referendum on the pact.

Protestant leaders predict they will muster such massive majorities that the British government will havo no choice but to back out of the agreement or at least water it down. To a lesser degree, the elections will be seen as a barometer of the Roman Catholic minority's feelings about an agreement which is designed to ease their sense of alienation under Protestant domination, but which falls far short of the Irish national dream of uniting the island. The election is being played out against a backdrop of stepped-up violence by the Irish Republican Army in its campaign to drive Britain out of Northern Ireland and unite the province with the Irish Republic. Lesotho restores king MASERU, Lesotho (AP) The mountain kingdom of Lesotho may be about to come full circle, restoring real power to a revered king who has been submerged by a generation of British-style Parliamentary rule. The leaders of Monday's military coup in Lesotho proclaimed King Moshoeshoe II as head of state, saying their military council is serving under him.

On Wednesday the soldiers asked the king to appoint a new cabinet. Those steps have underscored speculation that Moshoeshoe will be called on once again to play the African king's traditional role of mediator and unifying force among the nation's varied power groups. Such a change would revive the system that prevailed before British colonialism and its legacy a constitution that gave the prime minister final say over the king. As in many African countries, the European system and its democratic principles collapsed years ago in Lesotho replaced by the increasingly autocratic reign of a man who concentrated power in his own hands. Prime Minister Leabua Jonathan, who won the 1966 post- independence election, canceled the next vote in 1970 when it became clear he would lose to a rival party.

Austerity plan imposed SAN SALVADOR, El Salvador (AP) President Jose Napoleon Duarte raised bus fares and gasoline prices, banned luxury imports and sharply devalued the currency in an effort to revive El Salvador's ravaged economy. Although Duarte raised minimum wages and froze prices for basic commodities such as food, his economic austerity package was greeted Wednesday by widespread grumbling Duarte outlined the new plan in a nationwide television address Tuesday night. On Wednesday, he told a news conference that details of the plan will be made public later A government decree, part of the plan, temporarily bans importing automobiles, wines and liquors, jewelry, fufs and other luxury items. Refrigerators, television sets and other appliances made outside Central America will be taxed to discourage their importations. Central American products within the region have preferen- Markef 3 US6 the Central American Common Pollution threat disputed The government, pricked by reports that thermal inversions here were raising air pollu- KSLSr'E 31 bl f.

6Veis says dai 'y air re rt wUl be issued for the first time to sooth residents' nerves Mexico City, the world's largest metropolitan area with 18 1S generally considered also the world's most JSL i erSeCre tary for fcology Alicia Barcena Ibarra, speaking to reporters on a four-hour tour of air monitoring stations Tuesday, said there was little possibility of a thermal inversion causing fatal pollution levels "There is no reason for alarm. It is extremely difficult for an episode hke that to occur in the capital of the country she said. Her comments were carried Wednesday by the government newspaper "We do not want to minimize the problems, but there is no reason for alarm," Ms. Barcena Ibarra said, adding that the tropical sun over Mexico makes situations like those that occurred in London previously impossible here..