Argus-Leader from Sioux Falls, South Dakota • Page 3

3A Argus-Leader, Sioux Falls, S.D. Sunday, October 29, 1978 investioate or charity fraud I In an apparent attempt to bail itself out of its growing fiscal crisis, CORE borrowed $88,333 in unsecured bank notes. Albert Parham, assistant treasurer at Chase Manhattan, said CORE would routinely overdraw its checking account, but usually for just a few days prior to depositing money from its fund raising campaign. When he learned of CORE'S $508,440 deficit, Parham exclaimed, "Oh my God." While U.S. Internal Revenue Service officials not confirm it, sources say the agency is looking into CORE'S tangled financial situation, trying to learn of violations of federal income tax laws.

The investigation in New York State focuses on CORE activities during the last three years of Innis' directorship, sources said. One source said the investigation will look closely at CORE's job-training, job-placement and community action programs. CORE was founded 36 years ago and has been in the forefront of the nation's struggle to end segregation and racism. York City have been subpoenaed to answer questions about the group's financial operations. They are to appear before state attorney general representatives in New York City on Monday.

Robert Stewart, a partner in the auditing firm, Friday denied that the company received a subpoena. He refused to comment on CORE's financial predicament. According to records filed with the New Jersey office of the attorney general, CORE officials raised $3.3 million in 1977. The documents are required because CORE solicits money in New Jersey. Of that sum, the group spent $220,770 for transportation and another $147,794 at conventions and conferences attended by its employees during the year.

Those expenses and others helped drive the group toward its $508,440 deficit. Moreover, CORE has acknowledged overdrawing its checking account at Chase Manhattan Bank in 1977 by $37,434. On Dec. 31, 1976, the group had bank overdrafts totaling $243,817. Gannett News Service The Congress of Racial Equality, whose 1961 Freedom Riders helped set the stage for the great civil rights movement of that decade, is being investigated by the New York State Attorney General's office for fraud and fiscal chicanery.

The national organization, supported largely by a yearly nationwide telephone campaign, also overspent its contributions in 1977 by $508,440, documents filed with New Jersey officials last week show. A spokesman for the New York attorney general's office, Bureau of Charity Fraud, confirmed Friday that the probe is "active" and has been underway for the past six months. He declined further comment. Sources close to the investigation say the probe is looking into allegations that CORE officials "skimmed" funds away from the organization's activities by padding expenses and authorizing unusually high administrative costs. Roy Innis, CORE'S national director, could not be reached for comment.

CORE'S treasurer, Wen-dall Garnett, declined immediate comment. The auditors employed by CORE Riss, Stewart and Benjamin of New Authorities suspected a natural gas explosion flying debris. Three other persons, including reduced a brick home to this rubble Friday in the property owner, sustained minor iniuries. the community of Port Vue, south of Pitts- Authorities said the property owner had been burgh. Police Chief Thomas Hanna, responding using a backhoe near a natural gas line.

(AP to an emergency call, arrived at the scene Just photo) before the blast and was seriously injured by L.A. fires are latest in string of calamites In the nation if Miner, 83, files for presidency and numerous dogs, cats, horses, cows, goats and exotic pets such as kangaroos, llamas and monkeys. While firefighters were distracted by the rampaging Mandeville Canyon fire that destroyed about 25 homes, a firebug struck just a few miles to the west. The fires raise the specter of mudslides when the rainy season begins in a few weeks. Earlier this year, mud tumbling off these same mountainsides damaged many Malibu homes and blocked several roads, including the busy Pacific Coast Highway.

And that was when the mountains had vegetation. Without this ground cover the danger of mudslides is considerably greater. The Los Angeles City Council appropriated $2 million Friday from an already-lean Proposition 13 budget for some protective action against floods and mudslides. "Fires and mudslides go together," said Bill Hardy, chief of special services for the county Flood Control District. "We always get about 10 times as much debris down a canyon after a burn.

Everywhere it burned we're going to have mudslides." LOS ANGELES (AP) The brush-fires that devastated thousands of acres of valuable beachfront and canyon property and caused more than $70 million damage in Southern California were the latest in a series of calamities to strike the area in recent months. A year ago people here were taking short showers and cutting back on flushing the toilet because they were in the worst drought of the century. Then came some of the worst rains of the century, and hundreds of homes were damaged or destroyed by mudslides. One winter storm brought raging surf that battered many homes along Malibu Beach. Just last month in Laguna Beach 25 homes were destroyed when a hillside gave way for no apparent reason.

There's the ever-present threat of earthquakes, and, by this time of year, the hills are bone dry, and brushfires sometimes break out spontaneously. Three people were killed in the ire in the Agoura-Malibu fire set off last Monday. The latest destruction toll: 197 houses, 33 mobile homes, 254 other structures, 233 cars BUTTE, Mont. (AP) Merrill K. Riddick.

an 83-year-old miner, claims to be the first 1980 presidential candidate to have filed his application with federal election officials. He is running, as he did in 1976, on the Puritan Ethic-Prohibition-Magnetohydrodynamics ticket, which he created. Riddick made his announcement in a telephone call from Raleigh, N.C., to the Montana Standard in Butte. Riddick said he was en route from Washington to Florida, where he plans to seek votes while visiting a sister in Fort Lauderdale. Riddick says he will conduct his campaign by touring the country by bus.

He says his income comes from Social Security and $250 a month in veteran's benefits, and he accepts no campaign contributions of more Riddick has run unsuccesfully several times since 1960 for Montana's Democratic gubernatorial nomination. fimrmm I. Ji 01 WW WIWI I mwmim WW.) mibm iWHWW ppwamM 1 1 IP YOUNKERS mpllt S4TISM( HON Al WAYS A worker wipes the brow of actor Telly Savalas' picture on a billboard advertisement for a liquor product in Pensacola, Fla. (AP photo) Jerry Silverman's black georgette with ultra suede lace trim. FBI fugitive captured FLINT, Mich.

(AP) William D. Smith, listed on the FBI's 10 most-wanted list as a fugitive suspect in the murder of his ex-wife's husband, has been captured in Chicago. His former wife and alleged accomplice, Shirley Mae LoBrano, was arrested about the same time Friday in Salt Lake City, where the two had been' living, the FBI office in Flint reported. The two had been sought in the April 1977 murder of Mrs. LoBrano's husband, Mack, in Flint.

LoBrano, 35, was slain at his home in Flint and his body taken to rural Clare County where it was stuffed in an old refrigerator and burned, the FBI said. School board found in contempt CLEVELAND (AP) The Cleveland School Board has been found in civil contempt of court and threatened with fines and a possible criminal action for violation of terms of a judge's order to desegregate. U.S. District Judge FranRM. Battisti, who two years ago ordered the district to desegregate, convicted the schoolool board on Friday in sharp words from his bench.

The board was found guilty for firing two desegregation administrators and cutting the pay of two others without court approval. Niagrara Falls to get Amtrak WASHINGTON (AP) Niagara Falls, N.Y., will have its first direct rail passenger service in 17 years beginning Sunday with the rerouting of two Amtrak trains from Buffalo, the railway said Saturday. Amtrak has provided service to Niagara Falls through a bus connection at Buffalo. Suspect comes clean NORFOLK, Va. (AP) Norfolk police arrested a young man for allegedly breaking into a house, but they weren't sure what to do when he came clean.

Police responded to a call from Ruth Davis on Saturday and said they found the side door of her home kicked in and a man in her bathroom taking a bath. Mrs. Davis, in her 70s, told police the man broke through the door, pushed her aside and made straight for the tub. Mail carrier too friendly WILMINGTON, Del. (AP) Letter carrier Tom Smith might be in trouble with Postal Service authorities for introducing himself to 400 of his new patrons by dropping notes into their mailboxes.

Several patrons complained, and the Postal Service is investigating. Federal law prohibits putting mailable material in a mailbox without proper postage. "I don't consider myself a criminal," said Smith, 47, who could be fined up to $300 and suspended or fired after a 25-year career. He has offered to pay $60 postage for the 400 letters. Wilmington Postmaster Edward Biegel said It is unusual for a letter carrier to introduce himself with a letter and postal officials must grant permission for such notes to be delivered.

In the world Mrs. Gandhi blasts investments Sr I I TK 7 jv 1 1 'y save Up To 40 BIG 'N BOLD FELT BRIMS 12.88 1 NEW DELHI, India (AP) Former Prime Minister Indira Gandhi, campaigning for a scat in Parliament in a Nov. 5 by-election, criticized the government for investing some of its large foreign currency holdings in the United States when, she said, it could earn more elsewhere. India, which has an estimated $6 billion in foreign currency reserves, has bought $770 million worth of U.S. securities, apparently American Treasury notes, at 6.5 percent interest, Mrs.

Gandhi claimed in a speech Friday. She said the government should have invested in "stronger currencies" and easily could have gotten a 12 percent return. fjfymu '--Jar, A Adopt the dash and bravado of the ffidora, cowgirl or god father in many shapes and styles. Fashion accents you can afford. Choose one or several in a selection of demand colors.

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