The Morning Call from Allentown, Pennsylvania on March 26, 1976 · 16
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The Morning Call from Allentown, Pennsylvania · 16

Allentown, Pennsylvania
Issue Date:
Friday, March 26, 1976
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16 THE MORNING CALL, Allentown, Lehigh divorces The following divorces, were recently granted in Lehigh County Court. Shirley A. Hartman, 2524 W. Rock Road, Summitt Lawn, from Merritt D. Hartman, 803 N. 7th St., Allentown. Robert H. Holderbaum, 56 S. Cherry St., Emmaus, from Donna E. Holderbaum, 619 N. Irving St., Allentown. Joanne Marie Donovan, 400 E. Hamilton, from Lee Donovan, last known address, Coplay Creek Road, Schnecksville. -. Barbara Ann Lee, 532 Cedar Hill Drive, Allentown, from Harry F. Lee III, 2051 Baker Drive, Allentown. Clyde D. Kleckner, Chestnut Hill Road, Coopersburg, from Beverly A. Kleckner, 175 Aster Road, Macungie. John F. McGowan, Valley Park South, Bethlehem, from Jean E. McGowan, 1408 N. 21st St., Allentown. Thomas W. Morris, Coplay R.l, from Connie J. Morris, 1105-B Livingston St., Bethlehem. Recent federal court decision may topple pyramid sales schemes By JOHN F. BERRY Of Newsday MIAMI During the late 1960s and early 1970s, pyramid sales schemes flourished. Then federal and state authorities cracked down on such well-known operations as Glenn Turner's "Dare tb be Great" and William Penn Patrick's "Holiday Magic, Inc." The only survivor of this slew of litigation among tha Big Three Pyramids was Bestline Products, Inc., a manufacturer and distributor of soap products. Now a decision by a federal judge here has clouded Bestline's future. And it should give pause to any budding Glenn Turners. U.S. District Court Judge James Lawrence King ruled here on March 19 that Bestline's sales approach makes it subject to the Federal Securities Acts of 1933 and 1934. This means that the company could be required to pay back as much as $100 million to some 40,000 people who bought distributorships prior to August 1973, when Bestline changed its sales pitch. The decision grew out of a mammoth class action suit filed in 1973 by five distributors on behalf of some 9,000 members of the Bestline pyramid. The plantiffs are Peter Paimbano, Joseph F. Kucklick, Marilyn Koslen, Robert M. Ernst and Michael J. Gardner, all southern Florida residents. The class action consolidated a nationwide rash of suits against Bestline. The Judicial Panel on Multi-District Litigations determined that all the suits should be transferred to Florida's southern district. Carl H. Hoffman of Miami and James H. Joseph of Pittsburgh were named lead counsel for the plaintiffs. An exhaustive year-long discovery by the plaintiffs revealed how the high-powered pyramid promoters operated. It showed that immense fortunes were made by the men at the top. It also showed how many of those at the bottom of the pyramid have been left with garages and cellars aw-sh in unsold soap products spilled from deteriorating containers. Bestline was founded in 1966 by William E. Bailey and Jerry G. Brassfield. Both had been executives at Holiday Magic, Inc., the same scheme that later produced Glenn Turner. Like other pyramid operations, Bestline was a so-called multi-level organization. At the bottom were local distributors who were supposed to sell soap. On the next level were direct distributors who paid $3,500 to Bestline for soap products. They could qualify to move up to the next level general distributorship where the big money could be made. A direct distributor moved up to the next level by recruiting two new direct distributors. He sold the recruits his soap and they in turn were encouraged to advance by getting their relatives and friends to buy distributorships. The general distributor got money for each recruit he brought in. And while he shared in the profits from their soap sales, he could make money faster simply by selling dis Vogue Shoppe 948 Hamilton Street, Allentown, Pa. 18101 INVENTORY CLEARANCE! 0 to 50o ALL 0HAS AND GIRDLES Many Famous Names To Choose From. Hurry . . . Not Every Style In Every Size. STARTS TODAY! VOGUE SH0PPZ 948 Hamilton Moil, Allentown STORE HOURS: Closed Mon., Open Tues. thru Sat. 10-5, Thurs. 12-8 Pa., Friday, March 26, 1976 In the courts Joseph W. Mendeola Jr., 117 N. 13th St., Allentown, from Elinore M. Mendeola, 1402 Linden St., Allentown. Sally L. Albeck Schantz, 2148 Baker Drive, Allentown, last known address, 1509 Olympic Circle, Whitehall Township. Richard H. Roberts HI, 3310 Main St., Neffs, from Diane L. Roberts, ' Kempton R.2. Lester Miller, Coopersburg R.3, from Carol Miller, 151 Main St., Emmaus. Dennis F. McDonald, Coopersburg R.3, from Robin L. McDonald, 2510 S. 5th St., Allentown. Merrit M. Sell Jr., 3359 Barclay Road, Whitehall Township, from Beverly A. Sell, Jim Thorpe. Pamela M. Gingrich, 2449 Tilghman St., Allentown, from Ronald C. Gingrich, Emmaus R.l. Sterling G. Hein, 221 S. 2nd St., Emmaus, from Jane A. Hein, 950 Jackson St., Allentown. Harry W. Knerr, 235 S. Madison St., tributorships. Candidates for direct distributors were introduced at so-called opportunity meetings. Because these meetings and the distributors' future operations were conrolled so tightly by Bestline, Judge King determined that direct distributorships legally were securities. Said Judge King: "Lacking the business acumen possessed by Bestline and its corporate team, the class plaintiffs inexorably rely upon Bestline's guidance for the success of their investment." The decision last weeek by Judge King on the class action paved the way for the 9,000 direct distributors who purchased their interests after May 1972 to get their money back. In addition, others who purchased direct distributorships before May 1972 may attempt to prove securities fraud APRIL IS... DiAtf o::d month SALE J JEWELER 1 1 N. 6th St., Allentown S3 Phone 432-6437 Shop Thuraday til 9 P.M. 31 s, yr- I r,' s & L.wi.ij extraTpecial- I SAVINGS I 1 OF UP TO 50 I J OnAlllodlM' ( DIAMOND WATCHES I 1 Whil. Thy Lait. J Allentown. from Esther L.J. Knerr, 514'z N. Howard St., Allentown. Wins lawsuit A Bethlehem man was awarded $4,120 damages at a trial without jury yesterday before Northampton County Judge Michael Franciosa. The judge made the ruling in a suit brought by David Belzner, 704 Eighth Ave., against John Stasak, 2037 Johnston Drive, Bethlehem. Belzner said he was injured while riding in a car driven by Stasak that hit a utility pole on Freemansburg Avenue. The accident happened Nov. 22, 1974, according to the suit filed by Atty. Robertson Taylor. A jury which deliberated 45 minutes returned a verdict in favor of the Bethlehem Area School District in a suit started by Simon Washington, 115 S. 5th St., Allentown. Washington sought damages as the result of a fall in a passageway leading from a parking area to Liberty High against Bestline as a result of the judge's decisions Total damages for this group, if fraud is proven, could come to about $70 million. Reached for comment on the judge's decision, Russell Pitto, attorney for Bestline Corp, said, "We believe it is an appealable order and will take the necessary action." (C) Nmnday All complete walnut or pecan SJW IS : ivmusm SEE 3 IMX33 mmm P Pattsllnf? Cl2as?sst 2Th,ck!?ac? of panelinK9 arri!?ng nemonth- w J a"-- -rhGSe reductions must be made now!!! 4'x8' Sierra Oak Monitor Pecan Reg. Val. .69 Woodgrain finish on parttcleboard. Bathmt s.m w.tZmt A at Low, Low Sale Prices baVet) and more o4 omnkfi oak nr SVe$B and more on complete Vanities 1 ...... f - t mi I BANKtMEIIICMO mm FIRST SECOND School's Memorial Gymnasium on Jan. 12, 1974. Washington said he was attending a roller derby game at the school with his family. Judge Franciosa, who presided at the trial, found that National Skating Derby, Inc., Hollywood, Calif., also named as' a defendant in the action, could not be held negligent. $1,000 bail set A Lehigh County man was held for the June term of Carbon County Court after a hearing this week on two drug charges. James T. Yezic, 22, of Slatington R.2, was charged with delivery of a controlled substance (marijuana) and the sale of a nonproprietary drug at a preliminary hearing before Justice of the Peace Joseph M. Sverchek of Lansford. He is free under $1,000 bail. He was arrested earlier this month by state police at Lehighton through the cooperation of the state police Region 1 Strike Force from Bethlehem. The arrest took place in Towamensing Township. Land value A Northampton County jury has directed Easton Redevelopment Authority to pay a Reading woman $8,100 for a tract of land in South Easton. A board of view earlier set $6,250 as the fair price for the 624-square-foot section of land at 605 Philadelphia Road, condemned by the redevelopment authority as part of its neighborhood development project. The owner, Carolyne Finn Miller, appealed. The jury, after visiting the site and hearing testimony by area kitchen cabinets Foot Kitchens In choice of exotic walnut or pecan. mmwm -mr mr 279 00 Includes top wall cabinets and five foot sink base. 4'x8' Monarch Oak Saddle Walnut I mm, mm,,., n i .i. i mm, . .iwi r. ., 5 4'x8' Winter Wheat Golden Wheat Reg. Val. 5.99 3 ply lauan plywood with lacquer finish. Hardwood Plywood. Clean Up Huge selection of Decorator Vanities 24" White Walnut Base Luxurious wood grain with durable finish. m-r.uu $2999 25" Acrylic Top Choice of Colors EESP24.99 .-1 J f9. eisr,(o1'! THIRD realtors, fixed the higher price. Judge Alfred Williams presided' at the trial. In another trial before Senior Judge Carleton T. Woodring, a jury awarded Anthony Zingone of Stockertown $939 for injuries he received when, he said, his car was rammed from behind by the auto of John W. Souders, Gilbert, Monroe County. The accident happened July 15, 1972, on Route 191. Look at the latest U.S. other brands that call rmri ti fail to tar. mgeig nicotine, mge;g Brand D (Filler) 14 10 Brand D (Menthol) 13 1.0 Brand V (Filter) 11 0.7 Brand T (Menthol) 11 06 Brand V (Menthol) 11 07 Brand T (Filter) 11 06 Carlton 70lowest of all brandi)-1 mn. lar. 0.1 ma. nicotine A per cisa'etie Cy F i Z merged Warning: The That Cigarette 6 Base Cabinets With durable furniture finish. List Sale B12 $82.00 $4100 B21 $97.00 $4850 DB15 $104.00' $5200 v 4'x8' Bonanza Barnboard Dawn Val 99 grain on Textured woodgrain finish on 3.6 plywood. $99 Rvt? tJ-J 999 Mr. Panel Rolls Down Carpeting Prices Fantastic Buys! Over 350 Different Styles to See Professional Installation and Padding VaHK Reg. Value 39 99 03U f V so. vd. mmm Minimum purchase SERVICE end PARTS OPEN SATURDAY Call for Appointment 439-1414 We will honor your VW Warranty regardless of where you bought your car. . A1ARTIN VOLKSWAGEN 3001 MrnwrRd.,Whitholl st tor Government figures for themselves "low" in tar. Only 1 mg.tar Surgeon General Has Determined Smoking Is Dangerous to Your Health. t mg."tar", 0.1 mg. nicotine av, pet cigarette by FIC method - 1 4'x8'xT4" Nantucket Maple Homestead Walnut ,99 Reg Val 1099 Durable wood gram reproduction on 1 4" Hardboard mm sq. yard Wall Cabinets Pre. assembly with easy installation List Sale W930 $53.00 $2650 W36 12 $69.00 $3450 W2430 $73.00 $3650 41

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