Arizona Daily Star from Tucson, Arizona • Page 1

FINAL Edition top of the news (food 'THwuthty FINAL Edition 1 sttar VOL. 135 NO. 254 15 CENTS 60 PAGES TUCSON, ARIZONA, FRIDAY, SEPTEMBER 10, 1976 RAIN LIKELY. Cloudy skies, brisk winds and a 30 per cent chance of rain are forecast for Tucson today by the National Weather Service. A high in the upper 80s and a low in the mid-60s are projected.

Yesterday's high was 85 and the low 74. Rain fell yesterday in lower Michigan, western Ohio Valley and Tennessee and into southwest Arkansas and Louisiana. Fair weather prevailed in most of the remainder of the nation. The high was 104 at Red Bluff, Calif. The low was 26 at Butte, and Evanston, Wyo.

Details on Page 4 A. Ma Death AVf local A Jl V'T i 1 ft 4- fx I i 4. If 1 I 1 i MaO Through The Years The late Chinese tung as a young revolutionary in the 1920s, as the successful leader is seen above with President Ford during a meeting in leader of the Red Chinese army in 1945 and as chairman of Peking in December 1975. Below, from left to right, Mao Tse- the Chinese Communist Party in 1968. (AP Wirephotos) rji.

-p i Leadership Struggle Possible TOKYO (AP) Chairman Mao Tse-tung died yesterday, plunging China into an uncertain political future and leaving a gaping hole in the leadership of the world's most populous nation. As if anticipating a power struggle for Mao's mantle, the Central Committee of the Communist Party issued an appeal for unity. In a statement, the committee pledged to "carry on the cause left behind by Chairman Mao," founder of the People's Republic of China in 1949 and its leader since. The No. 2 man in the party has been Hua Kuo-feng, 57, regarded as a compromise candidate between the quarreling radicals led by Mao's widow, Chiang Ching, and the moderates led by followers of the late premier Chou En-lai and his protege, ousted vice premier Teng Hsiao-ping.

But the succession to the chairmanship was uncertain, and severe jockeying for power had been going on for some time. The official Peking People's Daily recently hinted at "armed struggle" between the two factions, although no mention of bloodshed has been reported. The 82-year-old Mao died at 12:10 a.m. (10:10 p.m. Wednesday, Tucson time), said the Hsinhua news agency, which made its Related Stories on Page HAand 18A.

first announcement of the death 16 hours later. Mao had been ill for some time and had acted more as a mediator in China's affairs than a day-by-day boss of the country. Hsinhua said no foreign governments or groups would be invited to send representatives to a mass memorial on Sept. 18. The news agency did not give the cause of death or say where Mao died.

American and other recent visitors to China reported he was frail and had trouble speaking. Medical experts who studied films of his recent appearances said he showed symptoms of Parkinson's disease. President Ford, who conferred with Mao for almost two hours last December, said in Washington that his death was "tragic," and called him a "remarkable and very great man." The Soviet Union sent brief condolences but had no praise for the man who regarded the Kremlin as his chief ideological enemy. Former President Richard Nixon, in a statement at San Clemente, recalled his meeting with Mao during a private trip to Peking last February. Nixon said the reopening of U.S.-China relations was a tribute to Mao's "farsighted vision," and "he reaffirmed that vision in my last meeting with him." The central committee ordered a mourning period to last until the memorial meeting Sept.

18 in Peking. The ceremony is to begin with all Chinese, "wherever they are," standing at attention in silent tribute for three minutes. Japanese and Yugoslav correspondents said that after the announcement of his death crowds gathered before a large floodlit portrait of Mao in Peking's huge Tien An Men square near Mao's residence. They reported seeing elementary school pupils led by teachers, with tears in their eyes and heads lowered, in Peking's major streets. Tens of thousands of Chinese each holding a white flower, the symbol of mourning arrived at the portrait by bicycle.

On Chang An Boulevard, police with black arm bands were standing every 50 to 100 yards. The road to a major Peking hospital was closed to all but official cars, the Japanese correspondents said, indicating Mao's body might have been taken there. The Peking correspondent of Tanjug, the Yugoslav news agency, reported "All Chinese who come contact with foreigners are openly showing their emotions. Many of them are so upset that they cannot perform their usual work." Hsinhau said all recreational activities would be halted until after the mass memorial, and Mao's body will lie in state in Peking's Great Wall of the People from Sept. 11-17.

The (Continued on Page 11 Col. 1) Successor? Chinese Premier Hua Kuo-feng is mentioned as a possible successor to Mao. (AP Wirephoto) 13 1 1 A $1 Million Missing In Kino Fees Improvement Money Was Paid By Buyers By ERNIE HELTSLEY The Arizona Daily Star An estimated $1 million that buyers of lots the now-bankrupt Kino Springs paid for installation of utilities and other improvements is missing, a federal bankruptcy official says. Bankruptcy Trustee Steven M. Brody of Boston, where the developer, Kincoa filed for bankruptcy nearly two years ago, he has found no trace of the so-called "betterment funds." "And, as far as I know, no one is going after the key officials of the corporation for money," Brody said in a recent telephone interview.

The case probably will be closed in weeks, he said. The estimate of $1 million as the amount missing came from an attorney close to the case. Another $1 million was used to install some improvements such as street paving and water and sewer lines in the development near Nogales, he said. Some of the street work has not been paid for, he added. Brody said he found only $6,000 worth of assets that were not exemped from the bankrupt estate by priority claims by the major mortgage-holders.

Arizona Atty. Gen. Bruce Babbitt 'and Santa Cruz County Atty. E. Leigh Larson yesterday said they may investigate.

Larson said he had been unaware of missing funds, but Babbitt said he had "preliminary" knowledge of the problem. Spokesmen for the major lenders, James Talcott, and the CIT both of New York City, said they also have been unable to find any improvement funds in searches to protect their own investments, totaling $17 million. The CIT Corp. now owns the golf course, club house and restaurant, which are separate from the "betterment fund" improvements. Brody said that when Kincoa went bankrupt in January 1975, it owed a total of $21 million.

Its debts included nearly $1 million owed a group of creditors in Arizona for some of the architectural, street and engineering work, and for day-to-day goods and services provided. All of this money is lost, he said. Four residents from among 50 families living at Kino Springs told a reporter that they paid $800 to $1,248 in lump sums for improvements such as street paving and water and sewer lines to their lots. They said they have canceled checks to prove it. Sydney Sterner, 67, a retired Navy warrant officer from New Jersey, said the improvement fees had to be paid before homes could be built on the lots, so most were paid in lump sums.

But, he said, some were mailed in along with installment payments on their lots. "When they started going busted," Kincoa officials "went around to each lot buyer and discounted the funds if they would pay up in cash. Some people got as much as 50 per cent off," said Sterner, a student of problems at Kino Springs. A Nogales man who bought two lots and later traded them for a golf course lot for his son said he was one of those solicited to pay just before Kincoa collapsed. The man, who asked not to be named, said he paid about $800 but could not remember whether it was a discounted fee.

He said he also has failed to get credit for the payment. The fees started in 1971 at $650, and graduated to $1,500 by the time of the collapse. Asked to estimate how much Kincoa had collected in improvement fees, Brody said: "We're talking about some big bucks." Some 3,500 lots were sold, and 2,000 of those are in default. The buyers of the other 1,500 have continued to make payments. Figuring that 2,000 of the buyers paid a $1,000 betterment fee, the amount paid would be $2 million.

If all 3,500 buyers had paid, (Continued on Page 16A, Col. 1) Creditor Financed $4.7 million leaves standing as a "deficiency" judgment the difference of $3.2 million. Attempts to telephone Talcott spokesmen for comment were unsuccessful. County Atty. E.

Leigh Larson explained that Kincoa could redeem its property by paying the $4.7 million in six months. Kincoa collapsed in bankruptcy in January 1975. Talcott and Cambridge Group, of Newport Beach, last month announced plans for Talcott to sell the property to Cambridge for redevelopment. Officials of both firms are in Nogales, reportedly to close the deal. A party to which area dignitaries have been invited will be held at the Americana Hotel at 4 p.m.

today. Kino Springs, eight miles northeast of Nogales, is the former ranch home of actor Stewart Granger. PIGSKIN PARTIES. For some, the foot-ball season is just an excuse to have a party. For others, football and festivities go hand-in-hand.

Edie Armstrong in Lifestyle describes some of these social events, plus the local emphasis on traveling to University of Arizona games by bus. Page 1C. GI BILL SLACKERS. Veterans who enroll in colleges or universities to collect the monthly payments while failing to maintain good grades will find a more difficult time of it now because of a new crackdown. Page IB.

A BURNING ISSUE. Puffing up the city's no-smoking law to include food, drug and department stores seemed simple enough four months ago. But City Atty. James Webb now says the little-enforced law is full of holes, and he isn't sure how to make it airtight. Page IB.

RAINFALL DISTRIBUTION. Wind direction, the amount of moisture in the air at a given spot and elevation have caused quite a difference this year in the rainfall distribution in Pima County, the National Weather Service says. Page IB. anzona SUN DEVILS FALL. UCLA quarterback Jeff Dankworth and halfback Theotis Brown lead the Bruins to a 28-10 upset over the third-ranked Arizona State Sun Devils in the nationally-televised college football opener for both teams in Tempe.

Page ID. national MINOSO COMEBACK. Chicago White Sox owner Bill Veeck, who says he believes in giving oldsters a break, places Minnie Mino-so, a White Sox hero in his playing days in the 1950s, on the active list, saying the 53-year-old Minoso will probably be used as a designated hitter. Page ID. TAX BILL.

Senate-House conferees approve a sweeping tax bill that assures relief to individuals and businesses through next year. But it sharply raises the tax on wealthy investors. Page 3A. MEAT DEBONING. A federal judge is asked by consumer groups to extend his temporary ban on regulations allowing mechanical deboning of red meat.

The process results in bone particles being added to processed meats including bologna and hot dogs. Page 9D. 1 MOST ARE STUCK. Ingmar Berman fled Sweden over that country's tough tax system, but most Swedes don't have that option. Even a tax official says he can't argue with a description of Sweden's tax system as the toughest in the world.

Page 10D. S. AFRICA VIOLENCE. Police gunfire kills 16 persons, including an 8-year-old boy, during a wave of violence, arson and looting by mixed-race and black Africans in Cape Town and its suburbs. Page 5A.

comment EDITORIALS. A state law that forbids aliens to own land should be repealed Congress should act on auto-emission standards as soon as possible Increasing inspections of child-care centers are important. Page 18A. ELITIST PHILOSOPHY. A college president makes the case for elitism in education, politics and other fields.

The best should have the most authority, he says. Page 19A. Bridge 9D Movies 7B Comics 8-9B People 6A Comment 18-19A Public Records 20C Crossword 8B Sports 1-6D Financial 7-8D Tucson Today 2B Horoscope 4B TV-Radio 9B Lifestyle 1-5C Want Ads 8-19C Kino Springs Buys Part It James Talcott, one of the major lenders of money to the now-bankrupt Kino Springs development near Nogales, yesterday bought the portion of the subdivision that it financed. Capt. D.

R. Kerson of the Santa Cruz Sheriff's reported that Talcott successfully bid $4.7 million as the only bidder in a sheriff's sale. The foreclosure action was taken against bankrupt developer Kincoa, of Boston, for failure to repay a $7 million loan by Talcott. Talcott held a mortgage on the subdivided portion of Kino Springs where most of its 50 families live. Santa Cruz Superior Court Judge Gordon Farley had approved a $7.9 million judgment for Talcott against Kincoa.

The Talcott bid of global index at said the two to is -'( .,41 i Tucson High Fistfight Develops Into Brawl Customer Up In Air Over Pizza Skip Cregier may not eat and run, but he does eat and fly. Yesterday, Cregier set his helicopter down next to the Tally Ho, at 4525 S. Park strode inside to enjoy a pizza, and then buzzed off. Not exactly an everyday "Oh, yes it is," said Cregier. "I do it all the time.

There's a good Italian place over on Country Club. The truck stops are good." The Federal Aviation Administration doesn't mind, Cregier said, as long as he has permission of the property owner to land and can assure that his landing won't endanger anyone. About a week ago, Cregier, who operates AFA Helicopters, a specialized charter service, stopped by the Tally Ho by more conventional means. As he left, he promised to return by air. "They all laughed and said, 'Yeah, sure, said Cregier.

Cregier said he was working yesterday, and the people he was with had been so nice that he decided to drop in for lunch. Tensions at Tucson High School flared yesterday when a fistfight between two students erupted into a fracas in the mall area of the school. About 20 persons were actually fighting, police said, and there were more than 200 onlookers. Police said there were no serious injuries reported and no arrests. The fight began shortly before 2 p.m.

and lasted about an hour. Thomas L. Lee, superintendent of Tucson School District One, said friction had been growing since Wednesday morning when a Mexican-American student and a black student began fighting at a grocery store near the school. Police said they were told by witnesses that the fight involved two boys who had been arguing over a bag of marijuana. No arrests were made because the two had returned to the campus before the police arrived.

Kenneth J. Miles, principal of Tucson High School, said yesterday's fighting began when a Mexican-American student and a black student began fighting in the mall area of the campus, attracting other persons and prompting scattered fistfights. He said it could not be immediately determined if the two who began fighting yesterday were the same two involved in the grocery store incident. Lee said there "may very well have been some hangers-on involved. It's very hard to keep outsiders off the campus there." Secondary streets around the school were blocked off by police but E.

6th a major thoroughfare on the north side of the campus, was kept open. Police said they were initially called to the campus when it was reported that one student had a gun, but none was found. A few officers reported being kicked and one said he was struck by a rock. Lee said administrators knew of the earlier grocery store incident and had alerted security officers and deans to the potential problems. They were instructed to avoid a show of force, he said.

When yesterday's incident broke out, it mushroomed rapidly and the security officers "were kind of outnumbered," he said. He said the situation was made worse by a class schedule that called for more than the usual -number of students to be outside of classrooms at the same time. Raul Grijalva, the only Mexican-American school board member, went to the campus yesterday, and said he planned to return this morning to help ease tensions. He said, "It just pains me to see minorities at each other's throats like this." School administrators said they would attempt to identify students involved in the fracas and begin disciplinary procedures, possibly resulting in some suspensions. Tucson High School has an enrollment of about 2,500 students.

About 55 per cent of them are Mexican-Americans and 9 per cent are blacks. 4.