Reno Gazette-Journal from Reno, Nevada • Page 15

iMM MUM Houston: 'Ponzi Schemer? 1 -J ir The next move is up to Reid CARSON CITY AP) The next move apparently will be up to Democrat Harry Reid in his effort to obtain a hand recount of ballots in his U. S. Senate race with Republican Paul Laxalt. The Nevada Supreme Court voted 3-2 Wednesday that responsibility for the recount was with local election officials. The majority ruled that there was no "genuine controversy" in the matter so the high court could not take a stand.

Reid was not available for comment on the decision Thursday. He is expected to file a formal request for a recount with the Secretary of State on Monday. Reid has challenged the results of the Nov. 5 election which showed him a 624-vote loser to Laxalt, but he has refused to agree to a machine recount of punchcard ballots. He had sought a Supreme Court decision requiring a hand count on grounds it was the only way to get an absolutely accurate tally.

Laxalt has contended a recount should be no different than the count on election night. The position has been supported in an opinion by Atty. Gen. Robert List, who agreed computers should be used in Washoe, Clark, Churchill and Douglas counties and Carson City, where votes were cast via punchcards and counted by machine. Laxalt supporters have also expressed fears that computer cards could be easily damaged or even tampered with during a recount.

Christmas tree cuttings allowed Christmas isn't Christmas without a tree. And for those who prefer the challenge of going out and bringing back their own, there are plenty. Fees range from $1 on Bureau of Land Management (BLM) and United States Forest Service lands to $5 on privately-owned property specializing in the growth of Christmas trees, open to the public. Kinds of trees available include pinion pine in Nevada forests to fir, spruce and pine in California's Plumas National Forest. FOUR OPEN According to Nel Waters, range technician for the BLM's Carson City District, four cutting areas are open this year.

They include two areas southeast of Carson City, one 15 miles southwest of Hawthorne in the Lucky Boy Pass area and one 40 miles east of Fallon near Carroll Sunjmit. Only pinion pines are available at a permit fee of $1 per tree per family. Permits can be obtained at the office or by mail at 801 N. Plaza in Carson City. Maps or cutting areas plus instructions for cutting trees will be given out with the permits.

According to Waters, around 7,000 permits were sold a year ago and he expects as many, if not more, this year. The Carson City office is open from 7:30 a.m. to 4:15 p.m. Monday through Friday, as well as Dec. 7 and 14.

INSTRUCTIONS Pinion pine are also the only trees available in the Toiyabe National Forest at $1 per tree per family. Cutting areas in California are east of Walker and Coleville and most of the U.S. Forest Service lands in Nevada in the area south of Hawthorne. Maps and cutting instructions will be issued with permits v-. 1 if 4k I 4 A 'non-hospitar look at Washoe Medical Center George Kerr of Washoe Medical Center adjusts nozzles in patients.

The system, put into use Wednesday, contains 6,000 hospital's reflecting pool, wearing home-made waders. The pool gallons of water which are recycled through a pumping system, and fountain are designed to augment the hospital's "non- The pool is 64 feet long, 14 feet wide, hospital" appearance and provide a relaxing note for visitors and LAS VEGAS, Nev. (AP) The Securities and Exchange Commission filed a complaint against James Ray Houston and his Western Pacific Gold and Silver Exchange today, accusing them of operating a "Ponzi scheme." The complaint was filed in U.S. District Court in Las Vegas only minutes after Western Pacific filed for an "arrangement" under federal bankruptcy proceedings. The SEC complaint sought an order barring Western Pacific from selling any further silver in interstate commerce.

The SEC charged Houston with operating a "Ponzi scheme1' whereby Western Pacific would take money it received from customers and convert it to its own use. The scheme, the SEC said, allows a company to operate at a loss by expanding its business to bring in more money. The complaint seeks a temporary restraining order, preliminary injunction and permanent injunction barring Western Pacific from doing any further business in interstate commerce. U.S. District Court Judge Roger D.

Foley was to hear the motion for the temporary restaining order this afternoon. The SEC said Western Pacific did not file a registration certificate, a violation of SEC regulations, nor did it file statements with the commission with respect to silver investment agreements. The SEC alleged Western Pacific defrauded its customers and obtained money through false statements of material fact. It also charged Western Pacific with having insufficient financial backing, being unprofitable and having officers without the necessary expertise in the silver market, in contradiction to public statements made by the -firm. The SEC complaint said Western Pacific has raised millions of dollars since June 1, 1973 by selling silver it did not deliver.

28, the flamboyant Independent American Party candidate for governor of Nevada in the last election, said at a news conference Wednesday that while the firm was having financial problems it would remain in business. He said today in filing the petition for relief under the bankruptcy act the action was prompted by "the proliferation of litigation and other actions against Western "We should now be able to marshal all aspects of our efforts to protect our customers and employes under the umbrella of one court proceeding." The Chapter 11 filing allows a privately held corporation to obtain the assistance of the federal court to make an arrangement to satisfy unsecured creditors and to continue in business when debts cannot be met when they come due, said Pat Clary, Houston's attorney. The petition listed some 2,000 creditors to which Western Pacific owes more than $3.2 million Reno Evening Gazette Nevada Road Toll This year to date: 194 Last year to date: 239 PHONE (702) 786-8989 RENO, NEVADA, FRIDAY, NOVEMBER 29, 1974 FIFTEEN Things could get worse Lash LaRue charged for pot possession whip, said then, "Hollywood slammed the door in my face several years ago." more, money spent on other things will likely decrease," Barmettler said in a news release. The standard of living will drop and there will be less money spent on health, private transportation, recreation and luxuries, he predicted. Barmettler foresaw more use of public transportation, more walking and more vacations at home in the face of large drains on savings and current income.

Higher prices for food will force American families to adjust their lifestyles and spending priorities, a University of Nevada agricultural economist says. Edmund Barmettler said that while Americans spent about 15 per cent of their income for food in 1972, the figure today is well over 20 per cent. "With Americans spending more for food and the future indicating they may pay even obtained through the Bridgeport Kanger btation. The Susanville District of the BLM has no Christmas tree cuttings, but $1 permits in the Plumas National Forest are available through the Hat Creek, Eagle Lake and Amanor Ranger Stations. Again, maps and instructions will be issued with permits.

In Susanville, two private operations have trees available for fees up to $5. They are Diamond Mountain Christmas Trees on Johnson Road and Charles Beckett. Reno does love the opera! Jobless fund lacks funds Former Reno resident Alfred (Lash) LaRue, once the movies' "King of the Bullwhip," has been indicted on charges of possession of marijuana in Georgia. LaRue, who operated a motel on West Fourth Street in Reno several years ago, and was president of the Sparks Toastmasters in 1964, was indicted by a Clayton County grand jury on charges of possession of marijuana and two types of illegal pills. Married nine times, LaRue appeared in 39 movies, the last a 1961 production called "Please Don't Touch Me." He was arrested in 1966 on a charge of vagrancy in Miami.

The former cowboy, whose trademark was a jj il'i i frti- The Nevada Opera Company had sellout crowds for its presentation of "Die Fledermaus" Friday and Saturday and almost 6,000 persons attended the production during the week. The opera company also reports more than $20,000 was raised in its "Op Auction" earlier this month. The money helps defray production costs. About 3,000 area school children also attended last week's production of Strauss's comic opera. The company's next production will be Puccini's "Madame Butterfly" Jan.

31 and Feb. 1 at tie Pioneer Theater Auditorium. LASH LARUE requires 70 per cent more, California 50 per cent, and Oregon and Washington 40 per cent." McCracken explained that employers are the sole source of unemployment insurance benefits paid to qualified jobless workers. He said employers "in Nevada pay a percentage on $4,200 for each employe to the trust fund. "When the fund fails to meet the solvency test level, that percentage by state law remains at the maximum amount.

"If the fund passes the annual solvency test, however, experience ratings can go into effect, which means employers with good experience ratings will pay a lesser tax than employers with poor experience ratings." Experience ratings involve a combination of items, including turnover of employes, McCracken added. This year, agency analysts stated the fund failed by about $8 million, he said. He emphasized that unemployment insurance payments are not jeopardized in any way because if the fund gets too low, the federal government, by law, must lend the state money to make up the difference. CARSON CITY The Advisory Council to the State Employment Security Department today recommended Nevada employers continue paying the same amount in unemployment insurance taxes they have paid in the past two years. The council's recommendation to remain at the 2.7 per cent tax rate was based on estimates that the Unemployment Insurance Trust Fund did not contain enough money to meet the annual solvency test, which is set by state law.

The council and Larry McCracken, director of the Nevada Employment Security Department, said the fund was experiencing problems and called on the state'-S legislators to change the laws "so we can return to a more equitable taxing system." McCracken said Nevada employers were paying the smallest amount into the fund required by the federal government. He noted that 41 states have laws requiring higher payments than Nevada. "Nine Western states require more, including Alaska which charges three times that of Nevada," he said. "Also, Hawaii They're curious, but skeptical Two of the complaints were about late delivery of the book and several other readers were unhappy with the book and wanted a refund. The publishing company offers the book for $25 with no refunds.

However, the Better Business Bureau said the company has given refunds to the few unhappy readers. Sales on the book, which tells how to stop paying property taxes on one's home forever, have been very good, a company spokesman said. In these inflationary times, a book that provides data on how to get a $10,000 car free and a $100,000 home without money has aroused the interest of a lot of Reno consumers. The Reno Better Business Bureau says it has received nearly 200 inquiries from residents about the book sold by mail by a Reno-based publishing company. The book, which promises to make readers appear to be millionaires in just six weeks and gives information on how to start a university for $50, has received few complaints, the bureau says.

death Rmds: Some worry about Utter, others of Police eye freeway To police, a new freeway means another place for someone to die in a car accident. And that's what Reno police expect to happen, sooner or later, on Interstate 80. They don't want itdtd happen, but they're already preparing to handle such problems. It may be that some Nevadans are not as experienced at getting on and off freeways as, say, Californians. Sgt.

Robert Buley of the Reno police traffic division has been working in cooperation with Nevada Highway Patrol officers on the problem. The Highway Patrol is charged with investigating accidents and enforcing laws on the freeway, but problems that occur on the freeway have a habit of backing up on to city streets, and this causes concern and headaches to Reno police. Buley said he has studied the accident statistics with the Highway Patrol and the worst problems occur in just several categories: Slow drivers in the outside lane (nearest and road shoulder) forcing cars coming onto the freeway from access ramps to backup at times, and often enter at speeds well under the freeway speed of 55 mph cessive speeds, particularly onto the sharp-curved "spaghetti bowl" at U.S. 395; and, -rThe very hazardous habit of some drivers who, finding off-ramps backed up with traffic, continue on to a point where they cross the dirt meridian and come back in the opposite direction to a less crowded off-ramp. Buley said most California drivers stay in the center lane or the one at far left (nearest the meridian) when traveling at top speeds, thus leaving the outside lane clear for entry of cars from the on-ramps.

"For some reason or other, it appears that mostly local drivers plug along at slower speeds in the outside lane, causing traffic back-ups and slowing the entry of cars to the freeway. "And the business of crossing the meridian js just downright scary. While there has not yet been a fatal accident on this account, it's only a matter of time," the sergeant said. The rule of the road, police say. Is that motorists should enter the flow of freeway traffic at maximum speed.

Traffic on the freeway has the right-of-way, and cars coming on must yield. So, the answer is for cars on the freeway to keep in the center of far left lane (of the three-lane freeway) and leave the outside lanes clear for entry and exits. 'Corridors of glass'? Nevat'i highways could become shiney corridors of aluminum and glass unless steps are taken to eliminate roadside litter, a University of Nevada Cooperative Extension specialist says. Dr. HanlRadtke of the College of Agriculture says that unless workable solutions are found "we can look forward in this state, as in the country, to driving along corridors of shiny aluminum and glass." Three possible solutions, Radtke said, are roadside clean-up programs, education of people to stop them from discarding containers or a state-initiated program encouraging people to return beer and soft drink containers.

Some 200 million soft drink and beer bottles and cans are sold in Nevada annually, Radtke said, and about U0 million of them are thrown away each year. Radtke noted the 1973 legislature considered a bill similar to one passed in Oregon in 1972 which outlawed snap tops and no-deposit bottles and cans. Assemblyman Virgil Getto, R-Fallon, has said he will introduce similar legislation in 1975 if public support is indicated. Radtke said an Oregon State University study done after the law's enactment showed an 88 per cent reduction in solid waste and litter, with an estimated annual savings of $700,000 in the state. The economic impact on Oregon industry was mixed, Radtke said, with reductions in the operating income of retailers and glass and can manufacturers offset by increases enjoyed by brewers and soft drink bottlers.

"Applying information derived from the Oregon study to passage of a similar law in this tate could mean a net increase of around 250 jobs," Radtke said. Following too closely, and exiting the freeway at ex vsmn 1 mat you pap II DIDN'T TELL 711 TLt. Li.